Engineering

3.6 Consolidated financial statements Notes to the consolidated financial statements
payout amount is calculated by multiplying the number of stock rights
by the average ThyssenKrupp share price in the 4th quarter of the 3rd
fiscal year. In addition, for each stock right the dividend amount which
would have been paid for these three fiscal years is also paid out.
Insofar as the Executive Board members of ThyssenKrupp AG are
granted an additional bonus alongside the performance bonus, as in
2009/2010 and 2010/2011, respectively, 55% of this additional bonus
will also be converted into stock rights and treated in accordance with
the performance bonus model. In the 3rd quarter ended June 30,
2011, the structure of the variable compensation for additional
executive employees was modified. 20% of the performance bonus
granted for the respective fiscal year will be obligatorily converted into
ThyssenKrupp AG stock rights to be paid out after the expiration of
three fiscal years based on the average ThyssenKrupp share price in
the 4th quarter of the 3rd fiscal year. The Group recorded expenses of
€3 million (2009/2010: €3 million) associated with this compensation
component; the resultant obligation as of September 30, 2011
amounts to €6 million (2010: 3).
Employee share purchase program
In the 3rd quarter of 2010/2011, the Group primarily offered eligible
members of its domestic workforce the right to purchase up to €270 in
ThyssenKrupp shares at a 50% discount as part of an employee share
purchase program. The program resulted in the Group recording
compensation expense of €6.1 million (2009/2010: €6.1 million);
thereof €0.5 million (2009/2010: €0.5 million are presented in
income/(loss) of discontinued operations.
Consolidated financial statements
15 Accrued pension and similar obligations
million €
Sept. 30,
2010
164 | 165
Sept. 30,
2011
Accrued pension liability 6,669 6,007
Accrued postretirement obligations other than pensions 1,257 1,080
Other accrued pension-related obligations
Reclassification due to the presentation as liabilities
285 210
associated with assets held for sale/disposal (125) (357)
Total 8,086 6,940
Accrued pension and similar obligations in the amount of €6,455
million (2010: €7,455 million) have a remaining term of more than
1 year.
Accrued pension liability
The Group maintains defined benefit pension plans and defined
contribution plans that cover the majority of the employees in
Germany, the USA and Great Britain. In some other countries, eligible
employees receive benefits in accordance with the respective local
requirements. The obligations resulting from defined benefit pensions
plans in Canada as of September 30, 2010 were transferred to
insurance companies in 2010/2011.
In Germany, benefits generally take the form of pension payments that
are indexed to inflation. Benefits for some senior staff are based on
years of service and salary during a reference period, which is
generally three years prior to retirement. Other employees receive
benefits based on years of service. In addition, ThyssenKrupp offers
certain German employees the opportunity to participate in a defined
benefit program which allows for the deferral of compensation which
earns interest at a rate of 6.00% per year.
In the USA, hourly paid employees receive benefits based on years of
service. Salaried employee benefits are typically based on years of
service and salary history. In Great Britain, employee benefits are
based on years of service and an employee’s final salary before
retirement.