Registration Document - Pernod Ricard

ANNUAL CONSOLIDATED FINANCIAL STATEMENTS 4
Notes to the annual consolidated fi nancial statements
At 30 June 2008 and 2009, the main assumptions used for the measurement of pension obligations and other long-term employee benefits were
as follows:
30.06.2008 30.06.2009
Medical expenses
Medical expenses
Actuarial assumptions in respect
and other
and other
of commitments
Pension benefits employee benefits Pension benefits employee benefits
Discount rate 5.96% 5.88% 6.28% 6.93%
Average rate of increase in annuities 3.66% 2.08% 3.45% 1.77%
Average salary increase 4.06% 3.56% 3.77% 3.24%
Expected return on plan assets
Expected increase in medical expenses
6.21% 4.50% 5.51% 4.25%
• Initial rate
Not applicable 8.68% Not applicable 9.23%
• Final rate
Not applicable 5.25% Not applicable 5.11%
30.06.2008 30.06.2009
Medical expenses
Medical expenses
Actuarial assumptions in respect
and other
and other
of benefit obligations
Pension benefits employee benefits Pension benefits employee benefits
Discount rate 5.72% 5.74% 5.95% 5.89%
Average rate of increase in annuities 3.37% 1.91% 3.66% 2.08%
Average salary increase 3.76% 3.58% 4.05% 3.58%
Expected return on plan assets
Expected increase in medical expenses
6.52% 0.00% 6.21% 4.50%
• Initial rate
Not applicable 8.52% Not applicable 8.68%
• Final rate
Not applicable 5.06% Not applicable 5.25%
Actuarial assumptions at 30 June 2009
(in respect of benefit obligations )
By region United Kingdom USA Canada
Eurozone
countries
Other noneurozone
countries
Discount rate 6.26% 7.00% 7.27% 5.82% 4.35%
Average rate of increase in annuities 3.57% 0.00% 1.50% 2.72% 1.55%
Average salary increase 4.00% 3.75% 3.50% 3.68% 3.65%
Expected return on plan assets
Expected increase in medical expenses
5.31% 8.00% 6.49% 5.67% 5.58%
• Initial rate
6.00% 10.00% 9.65% 4.54% 0.00%
• Final rate
5.00% 5.25% 5.00% 4.54% 0.00%
The obligation period-related discount rates used within the euro
zone are as follows:
◆ Short-term rate (3-5 years): 5.00%;
◆
◆
Medium-term rate (5-10 years): 5.75%;
Long-term rate (more than 10 years): 5.75% to 6.25%.
The expected rate of return on plan assets of funded or partially
funded benefit plans has been determined on the basis of the expected
rate of return of each asset class in each country and in accordance
with their respective weighting in each fund at 30 June 2009. These
rates were determined on the basis of historical rates of return but
also taking account of market expectations.
Discount rates are determined by reference to the yield at the balance
sheet date on premium category corporate bonds (if available), or on
government bonds, with maturities similar to the estimated duration
of the benefit obligations.
A change of one point in the rate of increase of medical and healthcare
expenses would have an impact of approximately €9 million on the
amount of the benefit obligation in respect of post-employment
medical and healthcare coverage.
I REFERENCE DOCUMENT 2008/2009 I PERNOD RICARD 103