CAPGEMINI_REGISTRATION_DOCUMENT_2017

4

FINANCIAL INFORMATION

4.2 Consolidated Financial Statements

Provisions for pensions and other post-employment benefits Note{24

The resulting obligation is discounted by reference to market yields on high quality corporate bonds, of a currency and term consistent with the forecast outflows of the post-employment benefit obligation. For funded plans, only the estimated funding deficit is covered by a provision. Current and past service costs - corresponding to an increase in the obligation - are recorded within “Operating expenses” of the period. Gains or losses on the curtailment, settlement or transfer of defined benefit pension plans are recognized in “Other operating income” or “Other operating expense.” The impact of discounting defined benefit obligations as well as the expected return on plan assets is recorded net in “Other financial expense” or “Other financial income.” Actuarial gains and losses correspond to the effect of changes in actuarial assumptions and experience adjustments ( i.e. differences between projected actuarial assumptions and actual data) on the amount of the benefit obligation or the value of plan assets. They are recognized in full in “Income and expense recognized in equity” in the year in which they arise (with the related tax effect).

Defined contribution plans Defined contribution plans are funded by contributions paid by employees and Group companies to the organizations responsible for managing the plans. The Group’s obligations are limited to the payment of such contributions which are expensed as incurred. The Group’s obligation under these plans is recorded in “Accounts and notes payable”. Defined contribution plans are operated in most European countries (France, the United Kingdom, the Netherlands, Germany and Central Europe, Nordic countries, Italy and Spain), in the United States and in the Asia-Pacific area. Defined benefit pension plans Defined benefit pension plans consist of either: unfunded plans, where benefits are paid directly by the X Group and the related obligation is covered by a provision corresponding to the present value of future benefit payments. Estimates are based on regularly reviewed internal and external assumptions. These unfunded plans correspond mainly to retirement termination payments and healthcare assistance plans; funded plans, where the benefit obligation is covered by X external funds. Group contributions to these external funds are made in accordance with the specific regulations in force in each country. Obligations under these plans are determined by independent actuaries using the projected unit credit method. Under this method, each period of service gives rise to an additional unit of benefit entitlement and each of these units is valued separately in order to obtain the amount of the Group’s final obligation.

Breakdown of provisions for pensions and other post-employment benefits Provisions for pensions and other post-employment benefits comprise obligations under funded defined benefit plans (particularly in the United Kingdom and Canada) and obligations primarily relating to retirement termination payments (particularly in France, Germany, Sweden and India).

Provision for pensions and other post-employment benefits by main countries

Net provision in the Consolidated Statement of{Financial Position

Obligation

Plan assets

2016

2017

2016

2017

2016

2017

(in{millions of euros)

United Kingdom

3,633

3,490

(2,787)

(2,886)

846 190 215

604 237 243

Canada

674 237 101

716 263

(484)

(479)

France

(22) (57)

(20) (56) (10) (48)

Germany

99 31 59

44 25 18 36

43 21 11 37

Sweden

34 45

(9)

India

(27)

Other

145

154

(109)

(117)

PRESENT VALUE OF THE BENEFIT OBLIGATION AT DECEMBER{31

4,869

4,812

(3,495)

(3,616)

1,374

1,196

230

REGISTRATION DOCUMENT 2017 — CAPGEMINI