Corporate Magazine 2012 - Boehringer Ingelheim

In addition to local biometric data (e.g. Prof Heubeck’s 2005 G mortality tables in Germany), pension obligationsin the significant countries were calculated on the basis of the following actuarial parameters:(in % as of 31 December 2012) Germany USA JapanDiscount rate 5.07 5.34 2.03Salary increase 4.0 5.0 5.0Pension increase 2.0 3.0 3.1Provisions for pensions and similar obligations were discounted using the average market interest rate on aremaining term of 15 years in accordance with the German Regulation on the Discounting of Provisions of18 November 2009. The interest rates used to discount significant foreign pension obligations (US, Japan)were determined with comparable parameters, in line with the German Regulation on the Discounting ofProvisions of 18 November 2009.The plan assets intended solely to cover pension and similar obligations that are unavailable to all othercreditors (cover assets within the meaning of section 246 paragraph 2 sentence 2 HGB) were measured atfair market value, which is essentially derived from stock market prices and offset against the underlyingpension and similar obligations. The fair market value of the plan assets on the balance sheet date wasEUR 989 million. The corresponding present value of the pension and similar obligations was EUR 4,369 million.Gains and losses from plan assets and interest expense relating to pension and similar obligationswere offset in accordance with section 246 paragraph 2 sentence 2 HGB. In total, EUR 108 million lossesfrom plan assets and EUR 255 million interest expense relating to pension and similar obligations are includedin the financial income.56Boehringer Ingelheim annual report 2012