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FINANCIAL INFORMATION
4.2 Consolidated financial statements
4
218
Registration Document 2016 — Capgemini
Provisions for pensions and other post-employment benefits
Note 24
Defined contribution plans
Defined contribution plans are funded by contributions paid by
plans is recorded in “Accounts and notes payable”. Defined
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
Central Europe, Nordic countries, Italy and Spain), in the United
States and in the Asia-Pacific area.
contribution plans are operated in most European countries
(France, the United Kingdom, the Netherlands, Germany and
Defined benefit pension plans
Defined benefit pension plans consist of either:
unfunded plans, where benefits are paid directly by the 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
◗
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.
yields on high quality corporate bonds, of a currency and term
consistent with the currency and term of the post-employment
benefit obligation.
The resulting obligation is discounted by reference to market
by a provision.
For funded plans, only the estimated funding deficit is covered
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 expenses.”
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”.
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 directly in equity” in the year in which they arise (with
the related tax effect).
Actuarial gains and losses correspond to the effect of changes
in actuarial assumptions and experience adjustments (
i.e.
Breakdown of provisions for pensions and other post-employment benefits
Sweden and India).
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,
Provision for pensions and other post-employment benefits by main countries
in millions of euros
Obligation
Plan assets
Net provision in the
Consolidated Statement
of Financial Position
2015
2016
2015
2016
2015
2016
United Kingdom
3,330
3,633
(2,633)
(2,787)
697
846
Canada
624
674
(448)
(484)
176
190
France
237
237
(16)
(22)
221
215
Germany
88
101
(47)
(57)
41
44
Sweden
34
34
(9)
(9)
25
25
India
39
45
(21)
(27)
18
18
Other
146
145
(10)
(109)
38
36
PROVISIONS FOR PENSIONS AND OTHER
POST-EMPLOYMENT BENEFITS
4,498
4,869
(3,282)
(3,495)
1,216
1,374