Table of Contents Table of Contents
Previous Page  106 / 364 Next Page
Information
Show Menu
Previous Page 106 / 364 Next Page
Page Background

4.1 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 7. Number of employees, personnel costs and employee benefits

DANONE

REGISTRATION DOCUMENT 2015

106

Note 7.3. Retirement obligations and other long-term benefits

General principles

The Group contributes to employee retirement benefit plans in

accordance with the laws and usual practices of countries where its

subsidiaries operate. As a result of contributions paid under such

plans to private or state sponsored pension funds, the Group has

no actuarial liability in that respect.

The Group also has contractual obligations for supplementary

retirement plans, severance pay, retirement indemnities and per-

sonal protection plans. The related actuarial commitments are

taken into account either through the payment of contributions to

independently-managed funds responsible for their service and the

fund administration, or through provisions.

Accounting principles

Defined contribution retirement plans

Contributions due under defined contribution plans are expensed

as incurred. These expenses are allocated to different headings in

the consolidated income statement.

Defined benefit retirement plans

The Group's obligations relating to defined benefit retirement plans

are calculated using the projected unit credit method and by taking

into account several actuarial assumptions, including employee

turnover, salary increases and employees' expected active lives.

The carrying amounts of these plans on the consolidated balance

sheet correspond to the actuarial value of the obligations, as defined

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 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 services

(where relevant) recognized within Trading operating income;

•

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 post-employment defined

benefit 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 retire-

ment and other long-term benefits.

The actuarial gains and losses resulting from experience adjust-

ments and changes in the actuarial assumptions used to calculate

obligations are recognized in full within Trading operating income

of the fiscal year in which they are incurred.

Defined benefit plans

Provisions for retirement and other long-term benefits

As of December 31

(in € millions)

2014

2015

Defined benefit retirement plans

796

769

Other long-term benefits

21

25

Total

818

794