AIRBUS - 2019 Financial Statements

2.6 Employees Costs and Benefits Notes to the IFRS Consolidated Financial Statements / Rate of pension increase — Rates for pension payment increases are derived from the respective inflation rate for the plan. Inflation rates — Inflation rate for German plans corresponds to the expected increase in cost of living. In the UK, the inflation assumptions are derived by reference to the difference between the yields on index-linked and fixed-interest long-term government bonds. Mortality tables — For the calculation of the German pension obligation, the “2018 G” mortality tables (generation tables) as developed by Professor Dr. Klaus Heubeck are applied, while the disability rates of the Heubeck Tables have been reduced to 30%, to align with actual observation. For the UK schemes, the Self-Administered Pensions S1 mortality tables based on year of birth (as published by the Institute of Actuaries) is used in conjunction with the results of an investigation into the actual mortality experience of scheme members. In France, Institute for French Statistics (“INSEE”) tables are applied. The development of the provision is set out below: (In € million) DBO Plan assets Total provisions Pension plans of the Company Participation in BAE Systems Pension Scheme in the UK Total Pension plans of the Company Participation in BAE Systems Pension Scheme in the UK Total Balance at 1 January 2018 11,299 3,571 14,870 (4,911) (2,832) (7,743) 7,127 Service cost (including past service cost) 381 84 464 0 0 0 464 Interest cost and income 202 85 287 (97) (68) (165) 123 Remeasurements: actuarial (gains) and losses arising from changes in demographic assumptions 112 (24) 88 0 0 0 88 changes in financial assumptions (35) (152) (187) 0 0 0 (187) changes in experience adjustments 117 48 165 0 0 0 165 plan assets 0 0 0 398 105 502 502 Changes in consolidation, transfers and others 247 0 247 (209) 0 (209) 38 Benefits paid (380) (115) (495) 148 115 262 (233) Contributions by employer and other plan participants 3 5 8 (1,281) (335) (1,616) (1,608) Foreign currency translation adjustments (14) (27) (40) 11 25 36 (5) Balance at 31 December 2018 11,932 3,475 15,407 (5,941) (2,990) (8,933) 6,474 Service cost (including past service cost) 443 63 506 0 0 0 506 Interest cost and income 206 94 300 (105) (79) (183) 117 Remeasurements: actuarial (gains) and losses arising from changes in demographic assumptions 1,011 (32) 979 0 0 0 979 changes in financial assumptions 1,446 310 1,756 0 0 0 1,756 changes in experience adjustments 105 (4) 102 0 0 0 102 plan assets (538) (128) (667) (667) Changes in consolidation, transfers and others (88) 0 (88) (13) 0 (13) (101) Benefits paid (403) (106) (509) 151 106 257 (252) Contributions by employer and other plan participants 5 2 7 (1,590) (91) (1,681) (1,674) Foreign currency translation adjustments 92 189 280 (77) (161) (235) 46 Balance at 31 December 2019 14,749 3,991 18,740 (8,113) (3,343) (11,455) 7,286 50 Airbus / Financial Statements 2019