Today, Wavin - Jaarverslag.com

Wavin Annual Report 2010 | page 122Expense recognised in the income statement(€ x 1,000) 2010 2009Current service costs 8,921 6,463Interest on obligation 21,451 19,863Expected return on plan assets (21,019) (17,392)Actuarial (gains) losses to the extent recognised 302 504Curtailment (gains) losses – (1,378)Effect of asset ceiling 2,977 1,165Expense recognised in the income statement 12,632 9,225In the Netherlands (EuroCeramic) and the UK the unrecognised actuarial losses per 31 December 2010 have exceeded thecorridor. This will result in an increase of the expense for employee benefi ts recognised in the 2011 income statement.The expense is recognised in the following line items in the income statement:(€ x 1,000) 2010 2009Cost of sales 5,211 4,062Selling and distribution expenses 5,272 3,840Administrative expenses 2,149 1,323Total 12,632 9,225Actual return on plan assets 18,720 20,228Actuarial gains and losses not recognised(€ x 1,000) 2010 2009Actuarial gains and (losses) not recognised at 1 January (19,409) (19,204)Effect of movements in foreign exchange (961) (475)Curtailment gains (losses) – 99Recognised during the period 302 479Not recognised during the period on the liabilities 4,155 (36,009)Not recognised during the period on the assets 31,746 35,701Actuarial gains and (losses) not recognised at 31 December 15,833 (19,409)Principal actuarial assumptions at the balance sheet date(% – expressed as weighted average) 2010 2009Discount rate at 31 December 5.3 5.6Expected return on plan assets at 31 December 5.5 5.9Future salary increases 2.9 3.4Future pension increases 1.9 2.2The overall expected long term rate of return on assets is 5.5%. The expected long term rate of return is based onthe target portfolio as a whole and based on the sum of the returns on individual asset categories.The Group expects to contribute € 10.0 million to its defi ned benefi t pension plans in 2011. For other benefi t plansthe contribution for 2011 by the Group is expected to be € 0.1 million.