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9
FINANCIAL AND ACCOUNTING INFORMATION
1. 2016 Consolidated Financial Statements
224
SAINT-GOBAIN
- REGISTRATION DOCUMENT 2016
The rate assumptions used in 2015 for the Group’s main plans
were as follows:
(in %)
France
Eurozone Kingdom
United
States
United
Discount rate
2.40%
2.40% 3.80% 4.25%
Salary increases
2.50% 1.50% to 2.60% 2.00%*
3.00%
Inflation rate
1.70% 1.50% to 1.90%
2.05% 2.50%
A cap applies to the reference salaries used to calculate benefit entitlements.
*
Sensitivity of assumptions
4.3.2.2
to an overall increase in defined benefit obligations of around
€670 million.
€240 million for the Eurozone plans and €510 million for the
UK plans. A 0.5-point increase in the inflation rate would lead
lead to an increase (decrease) in defined benefit obligations
of around €250 million for the United States plans,
A 0.5-point decrease (increase) in the discount rate would
benefits. In the United States, retirees’ healthcare costs are
projected to rise by 7.36% or 7.85% per year, depending on
turnover and interest rates are used to determine the Group’s
defined benefit obligations for other long-term employee
The same assumptions concerning mortality, employee
projected benefit obligation).
the age of the beneficiary (a 1-point increase in this rate
would lead to an increase of around €55 million in the related
Change in pension and other
4.3.3
post-employment benefit obligations
Net book value of provisions
4.3.3.1
Provisions for pensions and other employee benefit
obligations consist of the following:
(in € millions)
Dec. 31, 2016
Dec. 31, 2015
Pension commitments
2,673
2,919
Length-of-service awards
355
333
Post-employment healthcare benefits
435
451
AND OTHER POST-EMPLOYMENT
BENEFIT OBLIGATIONS
TOTAL PROVISIONS FOR PENSIONS
3,463
3,703
Healthcare benefits
27
28
Long-term disability benefits
20
19
Other long-term benefits
105
99
OTHER EMPLOYEE BENEFITS
PROVISIONS FOR PENSIONS AND
3,615
3,849
at December 31, 2016 (€146 million at December 31, 2015).
Provisions for all other long-term benefits totaled €152 million
assets:
The following table shows obligations under pension and
other post-employment benefit plans and the related plan
(in € millions)
Dec. 31, 2016
Dec. 31, 2015
post-employment benefit obligations -
liabilities
Provisions for pensions and other
3,463
3,703
Pension plan surpluses - assets
(41)
(63)
OBLIGATIONS
NET PENSION AND OTHER
POST-EMPLOYMENT BENEFIT
3,422
3,640
Analysis of obligations
4.3.3.2
At December 31, 2016, pension obligations and provisions for other post-employment benefit obligations break down by major
geographic region as follows:
Dec. 31, 2016
(in € millions)
France
Eurozone United Kingdom United States Rest of the World Net total
Average duration (in years)
16
16
19
13
15
16
Defined benefit obligations - funded plans
563
1,781
5,278
2,975
937
11,534
Defined benefit obligations - unfunded plans
402
126
402
200
1,130
Fair value of plan assets
(256)
(829)
(4,814)
(2,519)
(828)
(9,246)
DEFICIT/(SURPLUS)
709
1,078
464
858
309
3,418
Asset ceiling
4
4
POST-EMPLOYMENT BENEFIT OBLIGATIONS
NET PENSION AND OTHER
709
1,078
464
858
313
3,422