Annual Report 2001 - KSPG AG

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Consolidated financial statements 2001 of Kolbenschmidt Pierburg AG
Notes
Comments on the consolidated balance sheet
obligation (DBO) is determined
through actuarial techniques on the
basis of assumptions about mortality,
pay and pension rises, employee
turnover, interest rate trends, as well
as additional parameters. The fair
The following actuarial parameters
has been assumed to determine
the present value of the DBO of all
German pension obligations:
Analysis of pension accruals
as of December 31:
Breakdown and reconciliation of pension accruals:
value of current plan assets is offset
against the accrual. Service cost is
disclosed within personnel expenses,
interest cost and expected return on
plan assets being shown under the
net interest result.
in % 12-31- 12-31-
2000 2001
Discount rate 6.25 5.75
Pay rise 3.00 3.00
Pension rise 1.25 1.25
Expected return on plan assets 8.84 8.87
Locally adjusted assumptions
underlie the obligations to employees
abroad.
€million 2000 2001
Carryover 272.4 291.3
Translation difference 11.2 3.8
Change in consolidation group 7.6 (2.2)
Pensions paid (25.0) (24.9)
Annual provision 25.1 19.7
Balance at December 31 291.3 287.7
€million 12-31- 12-31-
2000 2001
Present value of non-funded DBO 252.9 273.9
Present value of plan-funded DBO 118.6 133.7
Total present value of DBO 371.5 407.6
Plan assets at fair value (77.7) (80.7)
Adjustment for unrecognized actuarial losses (2.5) (39.2)
Accruals for pensions and similar obligations 291.3 287.7
Breakdown of plan assets:
Breakdown of pension expense:
The €36.7 million hike of the unrecognized
adjustment of actuarial losses
to €39.2 million was caused at €9.9
million by the reduced German DBO
discount rate (down from 6.25 to 5.75
percent). Another €13.9 million of the
increase was attributable to the negative
variance of the expected return
on the US plan assets from the actual
income realized in the fiscal year.
The rising retiree rate in 2001 and the
€million 12-31- 12-31-
2000 2001
Guaranteed deposits 6.6 8.1
Equities 45.5 38.8
Government and corporate bonds 25.3 18.3
Cash & cash equivalents 0.3 15.5
Plan assets 77.7 80.7
In 2001, plan assets returned a loss of
€4.6 million, comparing with a profit
of €1.5 million the year before.
higher health care costs stepped up
actuarial losses by €6.9 million and
€4.6 million, respectively. The remaining
surge in actuarial loss was
accounted for by the lower discount
rate for US DBO, down from 7.0 to
6.5 percent. Under the terms of IAS 19,
actuarial gains and losses are expensed
over the average residual
service years if outside a corridor
of 10 percent of total DBO.
€million 2000 2001
Current service cost 8.4 4.5
Amortized actuarial gains and losses (0.1) 0.1
Past service cost 0.1 0.1
Effects of plan curtailments/settlements 0.0 0.1
Expected return on plan assets (7.0) (6.9)
Compounding of expected pension obligations 23.0 23.9
24.4 21.8
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