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Friday, February 19, 2016
Note 17
Employee benefits
17.1 Analysis of expenses related to employee benefit plans
The table below provides information about the cost of employee benefit plans excluding its financial component. The total cost of defined
benefit plans is set forth in Note 17.2.2 below.
Year ended December 31,
(in millions of euros) Note 2015 2014
Employee defined contribution plans 22 20
Employee defined benefit plans 17.2.2 18 (10)
Employee benefit plans 40 10
17.2 Employee defined benefit plans
17.2.1 Assumptions used in the evaluation and sensitivity analysis
Discount rate, expected return on plan assets, and rate of compensation increase
The assumptions underlying the valuation of defined benefit plans were made in compliance with the accounting policies presented in
Note 1.3.8 and have been applied consistently for several years. Demographic assumptions (including notably the rate of compensation
increase) are company specific. Financial assumptions (notably the discount rate) are determined by independent actuaries and other
independent advisors and reviewed by Vivendi’s Finance department. The discount rate is therefore determined for each country by reference
to yields on notes issued by investment grade companies having a credit rating of AA and maturities identical to that of the valued plans,
generally based on relevant rate indices. The discount rates selected are therefore used, at year-end, to determine a best estimate by
Vivendi’s Finance department of expected trends in future payments from the first benefit payments.
In accordance with amended IAS 19, the expected return on plan assets is estimated using the discount rate used to value the obligations of
the previous year.
In weighted average
Pension benefits
Post-retirement benefits
2015 2014 2015 2014
Discount rate (a) 2.8% 2.9% 3.9% 3.8%
Rate of compensation increase 1.8% 2.0% 3.1% 3.0%
Duration of the benefit obligation (in years) 14.1 14.7 10.1 10.8
a. A 50 basis point increase (or a 50 basis point decrease, respectively) to the 2015 discount rate would have led to a decrease of
€1 million in pre-tax expense (or an increase of €1 million, respectively) and would have led to a decrease in the obligations of pension
and post-retirement benefits of €70 million (or an increase of €75 million, respectively).
Assumptions used in accounting for pension benefits, by country
United States United Kingdom Germany France
2015 2014 2015 2014 2015 2014 2015 2014
Discount rate 4.00% 3.75% 3.75% 3.75% 1.75% 2.00% 1.75% 2.00%
Rate of compensation increase (weighted average) na na 3.75% 5.00% 1.75% 2.00% 3.50% 3.43%
na: not applicable.
Assumptions used in accounting for post-retirement benefits, by country
United States
Canada
2015 2014 2015 2014
Discount rate 4.00% 3.75% 3.50% 3.75%
Rate of compensation increase na na na na
na: not applicable.
Financial Report and Audited Consolidated Financial Statements for the year ended December 31, 2015 Vivendi /74