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assumptions employed in their assessment are as follows:
(in €’000)
France
Germany
USA
England
Other
Actuarial debt
28,983
7,882
324
24,121
2,191
Discount rate
1.49%
1.83%
3.25%
2.68% 3.70%
Reference used
I Boxx euro zone
12 years
Extrapolation cased
on the ECB 15-year
AAA rate curve
Citigroup Pension
Discount Curve rate
I Boxx AA-rated
15-year +0.3%
Inflation - Wage increase
1.30%
1.50%
N/A
3.41% NA
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 3.25% for American insurance plans
and 2.68% for English ones.
At December 31, 2017, the allocation of the plan assets was
approximately 52% in equities and 48% 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.
The following table sets out the changes, during financial year 2017,
in the actuarial debt and the market value of the hedging assets (in
millions of euros):
CHANGE IN ACTUARIAL DEBT
2017
2016
ACTUARIAL DEBT AT YEAR START
63,117
66,303
Cost of services
2,075
1,782
Cost of accretion
1,414
1,656
Benefits paid
(2,527)
(2,652)
Discounts
0
0
Wind-ups
0
(8,046)
Change in consolidation scope
(130)
76
Translation differences
(1,383)
(3,828)
Actuarial losses (gains)
934
7,826
ACTUARIAL DEBT AT YEAR END
63,500
63,117
CHANGE IN MARKET VALUE OF HEDGING ASSETS
2017
2016
OPENING VALUE
23,645
29,884
Contributions paid by the Group
285
304
Benefits withheld from fund
(578)
(428)
Wind-ups
0
(6,453)
Expected yield from assets
670
824
Translation differences
(853)
(3,566)
Actuarial gains (losses)
1,585
3,080
VALUE AT YEAR-END
24,755
23,645
The amounts given in wind-ups for financial year 2016 concern the part of the Hi Shear Corporation pension plan at the start of the financial
year.
The amounts shown as changes in scope in 2017 relate to Precimetal Fonderie de Précision, which was sold in 2017.
The following table shows the reconciliation of amounts recognized in the Group’s consolidated financial statements and the above sums:
59
LISI 2017 FINANCIAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS
3