Danone // 2020 Universal Registration Document

DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 86 4.1 Consolidated financial statements and notes to the consolidated financial statements Note 8. Number of employees, personnel costs and employee benefits The carrying amounts of these plans on the consolidated balance sheet correspond to the actuarial value of the obligations, as de- fined above, less the fair value of the plan assets (retirement funds to which the Group contributes, for example). They are presented under the heading Provisions for retirement obligations and other long-term benefits. In addition, the expected return on plan assets is measured on the basis of the discount rate used to estimate the actuarial value of retirement commitments. Actuarial gains and losses resulting from experience adjustments and changes in the actuarial assumptions that are used to calculate the obligations net of the assets (including the difference between the expected return and the actual return on plan assets) are fully recognized within Other comprehensive income. The recognized costs and income of defined benefit plans corres- pond mainly to: • the cost of services provided during the year and of prior ser- vices (where relevant) allocated according to their function to the various headings in the consolidated income statement; • the accretion of the present value of the obligations, net of the expected return on plan assets, recognized within Other financial income (expense). Other long-term benefits Other long-term benefits may be granted by certain Group compa- nies to their employees, such as personal protection coverage and long-service awards. The Group’s obligations in respect of these benefits are determined by applying a similar method to that used to determine the obligations relating to defined benefit retirement plans. The amounts recognized in the balance sheet in respect of these plans correspond to the present value of the obligations, as detailed above. They are presented under the heading Provisions for retirement obligations and other long-term benefits. The actuarial gains and losses resulting from experience adjustments and changes in the actuarial assumptions used to calculate obligations are recognized in full within Recurring operating income of the fiscal year in which they are incurred. Defined benefit retirement plans Provisions for retirement obligations and other long-term benefits As of December 31 (in € millions) 2019 2020 Defined benefit retirement plans 1,063 1,189 Other long-term benefits 28 31 Total 1,091 1,220 Defined benefit retirement plans and other post-employment benefits Carrying amount of gross obligations As of December 31 (in percentage) 2019 2020 Retirement plan for senior managers 32% 34% Other 18% 17% France 50% 51% Germany 11% 10% Indonesia 9% 9% Belgium 7% 8% United States 7% 7% Ireland 6% 7% Other (a) 9% 9% Total 100% 100% (a) Several countries, none of which represents more than 5% of the Group’s gross obligations. Group’s principal obligation The Group’s principal defined benefit retirement plan obligations involve the Retirement plan for senior managers in France. This retirement plan, which was set up in 1976 to retain key managers, may also include cer tain senior executives who were “Group Directors” on December 31, 2003, at which date the plan was closed to new beneficiaries. On December 31, 2020, 81 Group Directors were members of this plan (excluding plan beneficiaries who had already claimed their pension benefits), compared to 170 potential beneficiaries in 2003. General principles This plan provides for a pension based on years of service and the amount of final salary, under the condition that the beneficiary is still in Danone’s employment at the time of retirement. The pension is paid after deducting certain pensions corresponding: (i) with respect to a first category of senior executives, to the full amount of retirement benefits they acquired over the course of their professional career; and (ii) with respect to a second category of senior executives, to the full amount of retirement benefits that they acquired due to the implementation of a Company non-contributory supplementary retirement plan. It may reach a maximum of 65% of final salaries.