SCH2017_DRF_EN_Livre.indb

5

Consolidated financial statements at December 31, 2017 Notes to the consolidated financial statements

Full year 2017

Full year 2016

Of which SE USA

Of which SE USA

3. Change in projected benefit obligation Projected benefit obligation at beginning of year

11,085

1,508

10,785

1,492

Service cost

47

- -

39

-

Past service cost/Curtailments and Settlements

(341)

(101)

(87)

Interest cost (effect of discounting) Plan participants’ contributions

277

55

365

61

5

-

5

-

Benefits paid

(584)

(74)

(562)

(70)

Changes in the scope of consolidation Actuarial (gains)/losses recognized in equity

(7) 49

-

(4)

-

63

1,447 (889)

64 48

Translation adjustments

(619)

(186)

Other

-

-

-

-

PROJECTED BENEFIT OBLIGATION AT END OF YEAR

9,912

1,366

11,085

1,508

Plans changes occurred in United States. Actuarial gains and losses have been fully recognized in other reserves. They stem mainly from changes in financial actuarial assumptions (primarily discount rates) used to measure obligations in the United States, the United Kingdom and the euro zone. At December 31, 2017, actuarial losses resulting from changes in financial assumptions on pension and termination benefit obligations total EUR92 million for the Group compared to EUR1,501 million of

losses at December 31, 2016. At December 31, 2017, the losses resulting from changes in demographic assumptions on pension and termination benefit obligations total EUR14 million for the Group compared to EUR23 million of losses at December 31, 2016. At December 31, 2017, actuarial gains relative to the effects of experience on pension and termination benefit obligations total EUR57 million for the Group compared to EUR77 million of gains at December 31, 2016.

Full year 2017

Full year 2016

Of which SE USA

Of which SE USA

4. Change in fair value of plan assets Fair value of plan assets at beginning of year

9,688

1,084

9,941

1,115

Interest income

222

32

314

35

Plan participants’ contribution

5

-

5

-

Employer contributions

161

56

104

40

Benefits paid

(556)

(74)

(533)

(70)

Actuarial gains/(losses) recognized in equity Changes in the scope of consolidation

19

90

919

17

-

-

-

-

Translation adjustments

(535) (318)

(138)

(975)

34

Curtailments and settlements

- -

(87)

(87)

Other

-

-

-

FAIR VALUE OF PLAN ASSETS AT END OF YEAR

8,686

1,050

9,688

1,084

At December 31, 2017, the actual return on plan assets is EUR241 million compared with EUR1,233 million at December 31, 2016. Actuarial gains and losses have been fully recognized in other reserves.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

266