SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017
Financial and accounting information 2017 Consolidated financial statements
would lead to an increase of around €35 million in the related projected benefit obligation). Breakdown of and changes in pension 4.3.3. and other 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: (inɸ€ millions) Dec.b31, 2017 Dec.b31, 2016 Pension commitments 2,076 2,673 Length-of-service awards 361 355 Post-employment healthcare benefits 350 435
The rates used in 2017 for the Group's main plans are the following:
United Kingdom
United States
France Eurozone
(in %)
Discount rate
1.70% 1.70% 2.45% 3.60%
1.50% to
Salary increases
2.50%
2.40% 2.00%*
3.00%
1.40% to 1.80% 2.30% 2.50%
Inflation rate
1.50%
A cap applies to the reference salaries used to calculate benefit entitlements. *
The rates used in 2016 for the Group's main plans are the following:
TOTAL PROVISIONS FOR PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS
United Kingdom
United States
France Eurozone
(in %)
2,787
3,463
Discount rate
1.80% 1.80% 2.60% 4.10%
Healthcare benefits
25 15
27 20
1.40% to
Long-term disability benefits Other long-term benefits
Salary increases
2.50%
2.40% 2.00%*
3.00%
100
105
1.40% to 1.55% 2.35% 2.50%
PROVISIONS FOR PENSIONS AND OTHER EMPLOYEE BENEFITS
Inflation rate
1.50%
2,927
3,615
A cap applies to the reference salaries used to calculate benefit entitlements. *
Provisions for all other long-term benefits totaled €140 million at December 31, 2017 (€152 million at December 31, 2016). The following table shows net obligations under pension and other post-employment benefit plans and the related plan assets: (inɸ€ millions) Dec.b31, 2017 Dec.b31, 2016 Provisions for pensions and other post-employment benefit obligations - liabilities 2,787 3,463 Pension plan surpluses - assets (161) (41) NET PENSION AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS 2,626 3,422
Sensitivity of assumptions 4.3.2.2. A 0.5-point decrease (increase) in the discount rate would lead to an increase (decrease) in defined benefit obligations of around €190 million for the US plans, €215 million for the Eurozone plans and €475 million for the UK plans. A 0.5-point increase in the inflation rate would lead to an overall increase in defined benefit obligations of around €610 million. The same assumptions concerning mortality, employee turnover and interest rates are used to determine the Group’s defined benefit obligations for other long-term employee benefits. In the United States, retirees’ healthcare costs are projected to rise by 7.02% or 7.44% per year, depending on the age of the beneficiary (a 1-point increase in this rate
Analysis of obligations 4.3.3.2. At December 31, 2017, pension obligations and provisions for other post-employment benefit obligations break down by major geographic region as follows: Dec.b31, 2017 (inɸ€ millions ) France Eurozone United Kingdom United States Rest of the World Net total AVERAGE DURATION (IN YEARS) 16 17 18 13 15 16 Defined benefit obligations - funded plans 685 1,750 5,018 2,662 866 10,981 Defined benefit obligations - unfunded plans 297 116 0 315 188 916 Fair value of plan assets (261) (741) (4,899) (2,535) (838) (9,274) DEFICIT/(SURPLUS) 721 1,125 119 442 216 2,623 Asset ceiling 3 3 NET PENSION AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS 721 1,125 119 442 219 2,626
9
237 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017
Made with FlippingBook flipbook maker