Annual Report 2006 ISS Global A/S

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 January – 31 December. Amounts in DKK millions
26. Pensions and similar obligations (continued)
Actuarial calculations and valuations are performed annually for all major defined benefit plans. The actuarial assumptions vary from
country to country due to local conditions. The range of actuarial assumptions used is as follows:
2006 2005
Discount rates at 31 December 1)
2.9-6.5% 2.7-5.0%
Expected return on plan assets at 31 December 2.5-6.6% 3.0-6.5%
Future salary increases 1.6-4.1% 2.0-4.0%
Future pension increases 0.3-2.9% 0.3-2.8%
The amounts recognised in the income statement are as follows:
Current service costs 134
Interest on obligation 99
Expected return on plan assets (83)
Recognised past service costs, net (0)
Gains on curtailments and settlements, net (99)
Recognised in the income statement as staff costs 51
Actual return on plan assets 70
The amounts recognised in the balance sheet are as follows:
Present value of funded obligations 2,879
Fair value of plan assets (2,606)
Funded obligations, net 273
Present value of unfunded obligations 567
Unrecognised past service costs 1
Accumulated effect of asset ceiling 3
Net liability 844
Changes in the net liability recognised in the balance sheet are as follows:
Net liability at 1 January before reclassifications 801
Reclassifications 26
Net liabilities at 1 January after reclassifications 827
Foreign exchange adjustments 2
Additions from acquired companies, net 163
Net expenses recognised in the income statement 51
Contributions (156)
Actuarial (gains)/losses recognised through equity, net (46)
Asset ceiling 3
Net liability for defined benefit plans at 31 December 844
Other long-term employee benefits 41
Pensions and similar obligations at 31 December 885
1) Based on high quality corporate bonds or government bonds.
96
99
(78)
0
(57)
60
107
1,827
(1,441)
Continues
_____________________________________________________________________________________________________________
ANNUAL REPORT 2006 / Consolidated Financial Statements
84
386
413
2
-
801
680
-
680
2
48
60
(213)
224
-
801
32
833