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Consolidated Financial Statements as of December 31, 2015
Notes to the Consolidated Financial Statements
Actuarial assumptions and sensitivity analysis
10.1.6
The assumptions used to measure defined benefit obligations for length-of-service awards are as follows:
2015
2014
Retirement age
60-67
60-65
Rate of future salary increases
1.8% to 2.7% 2.1% to 3.0%
Inflation rate
1.9%
1.9%
Discount rate
1.9% 1.5% to 1.9%
Projected benefit obligations were calculated using a discount rate of
Sensitivity tests show that:
1.90% for the French, Belgian and Italian plans (2014: 1.90% for the
a 25-bps increase in the discount rate would have a negative impact
●
French and Belgian plans, 1.50% for the Italian plan). These rates are
of around 38 million euros on the defined benefit obligation under
based on an index of AA-rated corporate bonds with maturities similar
the French, Belgian and Italian plans;
to the estimated duration of the defined benefit obligation.
a 25-bps increase in the inflation rate would have a positive impact
●
In 2015, the average duration of the defined benefit obligation under
of around 6 million euros on the defined benefit obligation under
French, Belgian and Italian plans was 10.3 years, 10.2 years and 10.6
the French, Belgian and Italian plans.
years respectively (2014: 11.5 years, 10.4 years and 11 years
respectively).
Share-based payments
10.2
Accounting policies
The amount recorded in employee benefits expense corresponds to the
recognition over the vesting period of the benefit’s fair value. Fair value
Two types of share-based payment plans have been set up for
is the value determined using the Black & Scholes option pricing
management and selected employees – stock option plans and stock
model at the grant date in the case of options or the share price at the
grant plans.
grant date in the case of stock grants. Performance conditions that are
As the plans are equity-settled, the benefit represented by the not market conditions are not taken into account to estimate the fair
share-based payment is recorded in employee benefits expense with a value of stock options and stock grants at the measurement date.
corresponding increase in shareholders’ equity in accordance with
IFRS 2 –
Share-based Payment
.
The cost of share-based payment plans is recorded under "Payroll costs" in recurring operating income, with a corresponding increase in equity. The
plan cost in 2015 was equal to zero (2014: 0.2 million euros).
Details of the stock option and stock grant plans set up for senior management are presented below.
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2015 REGISTRATION DOCUMENT