52
I LISI FINANCIALREPORT2013
CONSOLIDATEDFINANCIALSTATEMENTS
3
This section covers the risks and expenses clearly specified as to their
purposewhosematurity remains likelyandwhichwill causeanoutflow
ofresourceswithoutconsideration.Themostsignificantamountsreflect
the unfavorable application for the Group of contractual terms, the
impact of the streamliningof production structures and litigationswith
thirdpartypartners.
2.5.4.2Commitments to thepersonnel
ApplicationofrevisedIAS19asatJanuary1,2012
As indicated inNote 2.2Accounting rules andmethods, the LISI Group
hasopted forearlyadoptionoftherevised IAS19 from1 January2012.
Characteristics
Inaccordancewith the laws andpractices of each country inwhich the
Groupoperates, itoffers itsemployeesand formeremployees,subjectto
certain conditionsof service, thepayment of pensionsor compensation
on retirement. Suchbenefitscanbepaidaspartofdefinedcontribution
plansordefinedbenefitplans.
Definedbenefit plans
Generaldescriptionoftheplans
Retirementallowance(France):
Entitlements to retirement benefits are defined by applicable laws or
sectorialagreementswhentheyaremore favorable.
UK
BAIUKoperates adefinedbenefit pensionplan towhichall employees
who joined the company before April 2007 are entitled. Plan assets
are separate from the assets of the company andmanaged by a trust
administeredbyaboardoftrustees.
Theriskstowhichtheplanexposesthecompany include: investmentrisk,
inflation, longevityofpensioners,options,and legislative.
USA
Hi Shear Corporationoperates adefinedbenefit pensionplan towhich
allemployeeswho joinedthecompanybeforeFebruary1991areentitled.
Theplanhasbeen closed since that date. Planassets are separate from
the assets of the company andmanaged by a trust administered by a
boardoftrustees.
The geographic breakdown of the Group’s commitments to staff as at
December 31, 2013 fordefinedbenefitplansand themainassumptions
employed intheirassessmentareas follows:
(In€ '000)
France
Germany
USA
UK
Other
Actuarialdebt
18,709
6,366
7,938
18,344
1,147
Discount rate
3.17%
3.42%
4.25%
4.62%
3.30%
Inflation -Wage increase
2.50%
2.50%
NA
4.00%
NA
AspertherevisedIAS19standard,therateofreturnonlong-termfundsis
identicaltothediscountrateforactuarialliability.Theratesofreturnthus
employedareequalto4.25%forAmerican insuranceplansand4.62%for
Britishones.
AsatDecember31,2013, theallocationofplanassetswasapproximately
61% in equities and 39% inbonds for theUK and 17% in equities, 39%
bondsand44% inother instruments fortheUSA.
Thetablebelowdetailsthechanges,duringfinancial2013,oftheactuarial
debt,andthemarketvalueofthehedgingassets (in€m):
Changes in actuarial debt
2013
2012
Actuarialdebtatyearstart
54,647
47,894
Costof services
1,232
1,030
Costofaccretion
1,766
2,038
Benefitspaid
(2,893)
(3,356)
Discounts
Wind-ups
(187)
Change inconsolidationscope
Translationdifferential
(731)
151
Actuarial losses (gains)
(1,518)
7,079
Actuarialdebtatyearend
52,504
54,647
