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LISI 2016 FINANCIAL REPORT
The following table sets out the changes, during financial year 2016, in the actuarial debt and the market value of the hedging assets (in millions
of euros):
CHANGE IN ACTUARIAL DEBT
2016
2015
Actuarial debt at year start
66,303
70,210
Cost of services
1,782
2,191
Cost of accretion
1,656
1,686
Benefits paid
(2,652)
(3,528)
Discounts
0
0
Wind-ups
(8,046)
(86)
Change in consolidation scope
76
0
Translation differences
(3,828)
2,224
Actuarial losses (gains)
7,826
(6,395)
Actuarial debt at year end
63,117
66,303
CHANGE IN MARKET VALUE OF HEDGING ASSETS
2016
2015
Opening value
29,884
27,771
Contributions paid by the Group
304
1,047
Benefits withheld from fund
(428)
(1,594)
Wind-ups
(6,453)
(22)
Expected yield from assets
824
863
Translation differences
(3,566)
2,022
Actuarial gains (losses)
3,080
(203)
Value at year-end
23,645
29,884
(in €’000)
12/31/2016
12/31/2015
Liabilities recognized at year-end
(39,472)
(36,419)
The expense recognized as operating profit by the Group during the financial year 2016 as defined benefit plans amounted to €2.6 million
and is broken down as follows:
(in €’000)
2016
2015
Cost of services
1,782
2,191
Cost of accretion
1,656
1,686
Expected yield from plan assets
(824)
(863)
Discounts/Wind-ups
(86)
Expense (Revenue) recognized
2,615
2,928
The amounts given in wind-ups concern the part of the Hi Shear
Corporation pension plan at the start of the financial year.
The following table shows the reconciliation of amounts recognized
in the Group’s consolidated financial statements and the above sums:
As per the revised IAS 19 standard, the rate of return on non-current
funds is identical to the discount rate for actuarial liability. The rates
of return thus employed are equal to 3.50% for American insurance
plans and 2.92% for English ones.
At December 31, 2016, the allocation of the plan assets was
approximately 51% in equities and 49% in bonds for England. As the
US fund concerning the majority of the employees had been wound
up in 2016, there were no longer any hedging assets in the USA.
CONSOLIDATED FINANCIAL STATEMENTS
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