Annual Report 2011 - Kongsberg Maritime - Kongsberg Gruppen

2 INTRODUCTION
7 DIRECTORS’ REPORT AND
18 FINANCIAL STATEMENTS
64 CORPORATE GOVERNANCE
76 FINANCIAL CALENDAR AND ADDRESSES
10
34 KONGSBERG Annual Report 2011
The old pension scheme was closed in 2010, and provided a net gain.
The old contractual early retirement scheme has been replaced by a
new contractual early retirement scheme. The new contractual early
retirement scheme is, as opposed to the old one, not an early retirement
scheme, but rather a regime that gives a life-long supplement to the
ordinary pension. Employees can elect to draw on the new scheme as
from age 62, even if they continue to work. The new scheme is a
defined benefit multi-employer pension scheme, and it is funded
through premiums established as a percentage of wages. For the
moment, there is no reliable measurement or allocation of liabilities and
funding as regards the scheme. For accounting purposes, the scheme is
considered a deposit-based pension plan in which premium payments
are expensed against income on an ongoing basis, and no provisions are
made in the financial statements. A premium is paid to he new scheme
of the total payments made between 1 G and 7.1 G to the company’s
employees. In 2011 the premium was 1.4 per cent, while it for 2012 is set
at 1.75 per cent (estimated as MNOK 40). No fund will be built up in
connection with the scheme, and the premium level is expected to
increase in the coming years.
PROPERTY, PLANT AND EQUIPMENT
Amounts in MNOK
Machinery and
plants
Equipment and
vehicles
Land 1) , buildings
and other
real property Total
Cost of acquisition
1 Jan 2010 766 1 411 1 539 3 716
Additions 60 211 153 424
Disposals (1) (120) (13) (134)
Translation differences (1) 5 6 10
Total acquisition cost 31 Dec 2010 824 1 507 1 685 4 016
Additions 189 159 90 438
Additions through business combinations 19 23 21 63
Disposals (6) (149) (4) (159)
Translation differences 4 7 6 17
Total acquisition cost 31 Dec 2011 1 030 1 547 1 798 4 375
Accumulated depreciation
1 Jan 2010 306 987 394 1 687
Depreciation for the year 45 161 63 269
Disposals (1) (116) (8) (125)
Translation differences (2) 4 1 3
Total accumulated depreciation, 31 Dec 2010 348 1 036 450 1 834
Depreciation for the year 56 145 61 262
Disposals (6) (148) (1) (155)
Translation differences 1 1 2 4
Total accumulated depreciation, 31 Dec 2011 399 1 034 512 1 945
Carrying amount 31 Dec 2010 476 471 1 235 2 182
Carrying amount 31 Dec 2011 631 513 1 286 2 430
Useful life 3–10 years 3–10 years 10–33 years 1)
Annual rent paid for off-balance sheet property, plant and equipment 7 - 42 49
1) Land owned by the Group has an unlimited useful life, and are not depreciated.
The pension expenses for the year are calculated on the basis of
actuarial assumptions at the beginning of the year. Gross pension
liabilities are calculated on the basis of the financial and actuarial assump
tions at year end. The gross value of pension fund assets is
calculated on the assumption that there will be an annual return of 5 per
cent, which was the expectation on 31 December 2011. The actual
return on investments came to 2.1 per cent, but it will not be included in
the capitalised assets until 2012.
The total pension premium payments for the defined benefit scheme
for 2012 are expected to be MNOK 145.
The pension benefits are based on the individual employee’s number
of years of service and salary level upon reaching retirement age. Net
pension liabilities are stipulated on the basis of actuarial estimates
predicated on assumptions related to the discount rate, future wage
growth, pension adjustments, projected return on pension fund assets,
and employee turnover. These assumptions are updated annually. The
discounting rate is stipulated on the basis of the long-term government
bond interest rate, which reflects the time frame for paying out on the
pension liabilities for the benefit scheme.
The balance sheet shows net pension liabilities including social
security.
Sensitivity analysis of pension calculations
The following estimates are based on facts and circumstances that applied at 31 December 2011, provided all other parameters are constant. Actual
results may deviate significantly from these estimates.
Changes in pension
Annual adjustment/ Annual adjustment
Discount rate Basic amount
of pensions Retirement rate
Changes in % are percentage points 1% -1% 1% -1% 1% -1% 1% -1%
Defined benefit obligation (PBO) 20–22% 20–22% 10–12% 10–12% 15–17% 15–17% 2–3% 2–3%
Net pension cost for the period 22–24% 22–24% 18–20% 18–20% 10–12% 10–12% 2–3% 2–3%