LEGRAND_REGISTRATION_DOCUMENT_2017
08 CONSOLIDATED FINANCIAL INFORMATION CONCERNING
THE GROUP’S ASSETS, LIABILITIES, FINANCIAL POSITION AND RESULTS Consolidated financial statements in accordance with IFRS for the years ended December 31, 2017 and December 31, 2016
Discounted future payments for the Group’s pension and other post-employment benefit plans are as follows:
(in € millions)
2018
16.7
2019
12.1
2020
13.9
2021
14.2
2022 and beyond
286.8
TOTAL
343.7
The impact of service costs and interest costs on profit before tax for the period is as follows:
12 months ended
December 31, 2017
December 31, 2016
(in € millions)
Service cost
(9.3)
(9.1)
Net interest cost*
(3.7)
(4.2)
TOTAL
(13.0)
(13.3)
* The expected return on assets and interest costs are presented as a net amount in financial expenses.
The weighted average allocation of pension plan assets is as follows as of December 31, 2017:
France
United Kingdom United States
Weighted total
(as a percentage)
Equity instruments
44.6
66.1
54.8
Debt instruments
49.9
32.9
41.8
Insurance funds
100.0
5.5
1.0
3.4
TOTAL
100.0
100.0
100.0
100.0
These assets are marked to market.
4.5.1.2 Provisions for retirement benefits and supplementary pension benefits in France The provisions recorded in the consolidated balance sheet concern the unvested entitlements of active employees. The Group has no obligation with respect to the vested entitlements of former employees, as the benefits were settled at the time of their retirement, either directly or through payments to insurance companies in full discharge of the liability. The main defined benefit plan applicable in France concerns statutory length-of-service awards, under which all retiring employees are eligible for a lump-sum payment calculated according to their length of service. This payment is defined either in the collective bargaining agreement to which their company is a party or in a separate company-level agreement, whichever is more advantageous to
the employee. The amount generally varies depending on the employee category (manager/non-manager). In France, provisions recorded in the consolidated balance sheet amount to €90.4 million as of December 31, 2017 (€87.9 million as of December 31, 2016) corresponding to the difference between the projected benefit obligation of €90.5 million as of December 31, 2017 (€88.1 million as of December 31, 2016) and the fair value of the related plan assets of €0.1 million as of December 31, 2017 (€0.2 million as of December 31, 2016). The projected benefit obligation is calculated based on staff turnover and mortality assumptions, estimated rates of salary increases and an estimated discount rate. In France, the calculation in 2017 was based on a salary increase rate of 2.8%, a discount rate and an expected return on plan assets of 1.5% (respectively 2.8% and 1.6% in 2016).
260
REGISTRATION DOCUMENT 2017 - LEGRAND
Made with FlippingBook - professional solution for displaying marketing and sales documents online