220 / 330
FINANCIAL INFORMATION
4.2 Consolidated financial statements
4
220
Registration Document 2016 — Capgemini
in millions of euros
Obligation
Plan assets
Net provision in the
Financial Position
Consolidated Statement of
2015
2016
2015
2016
2015
2016
PRESENT VALUE OF THE BENEFIT
OBLIGATION AT JANUARY 1
3,252
3,330
(2,480)
(2,633)
772
697
Expense for the period recognized in the
Income Statement
105
121
(95)
(88)
10
33
Service cost
15
10
-
15
10
Curtailments, settlements and plan transfers
(35)
-
-
(35)
-
Interest cost
125
111
(95)
(88)
30
23
Impact on income and expense recognized in
equity
(156)
765
84
(481)
(72)
284
Change in actuarial gains and losses
(156)
765
-
-
(156)
765
Impact of changes in financial assumptions
(89)
830
-
(89)
830
Experience adjustments
(67)
(65)
-
(67)
(65)
Return on plan assets
(1)
-
84
(481)
84
(481)
Other
129
(583)
(142)
415
(13)
(168)
Contributions paid by employees
1
1
(1)
(1)
-
-
Benefits paid to employees
(73)
(72)
73
72
-
-
Contributions paid
-
-
(62)
(58)
(62)
(58)
Translation adjustments
201
(512)
(152)
402
49
(110)
OBLIGATION AT DECEMBER 31
PRESENT VALUE OF THE BENEFIT
3,330
(2)
3,633
(2,633)
(2,787)
697
846
After deduction of financial income on plan assets recognized in the Income Statement and calculated using the discount rate,
(1)
The year-on-year increase in the present value of the obligation is mainly due to the impact of a decrease in the benchmark discount rate (3.8% to 2.6%-2.8%).
(2)
In 2015, the curtailment following a plan change represents income of €35 million due to the decrease in the present value of the benefit
their defined benefits.
obligation for the main Capgemini UK Plc. pension plan after an agreement was reached with certain members regarding a reduction in
Main actuarial assumptions
a)
Discount rate, salary inflation rate and inflation rate
in %
At December 31, 2015
At December 31, 2016
Discount rate
3.8
2.6-2.8
Salary inflation rate
2.4-3.2
2.3-3.1
Inflation rate
3.2
3.1
method, compared to a single discount rate method used at the 2015 year end. This change in method led to a decrease in the present
At the 2016 year end, the Group moved to a calculation method for the discount rate and inflation, based on a full yield curve valuation
value of the pension obligation of approximately €200 million at December 31, 2016.
Mortality tables used are those commonly used in the United Kingdom.
Plan assets
b)
in millions of euros
2015
2016
Shares
1,421
54%
1,377
49%
Bonds and hedging assets
1,168
44%
1,336
48%
Other
44
2%
74
3%
TOTAL
2,633
100%
2,787
100%
Shares correspond to investments in equities or diversified growth investments, the majority of which in developed markets.
the plan liabilities; this matching portfolio consists of UK government bonds (GILT), owned directly or borrowed
via
sale and repurchase
Bonds and hedging assets consist of bonds invested in liquid markets. A portion of these investments seeks to hedge interest rate risk on
agreements.