Danone // 2020 Universal Registration Document

DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 88 4.1 Consolidated financial statements and notes to the consolidated financial statements Note 8. Number of employees, personnel costs and employee benefits Changes in carrying amount of provisions 2019 2020 (in € millions) Vested rights Plan assets Impact of ceiling on assets Obligations provisioned Vested rights Plan assets Impact of ceiling on assets Obligations provisioned As of January 1 1,391 (548) − 843 1,597 (534) − 1,063 Service cost 37 − 37 43 − 43 Effect of discounting 39 − 39 30 − 30 Expected return on plan assets − (12) (12) − (7) (7) Other (56) 30 (26) (17) 14 (2) Expense for the year 20 17 38 56 7 64 Payments made to retirees (53) 32 (22) (56) 31 (26) Contributions to plan assets − (12) (12) − (18) (18) Changes in demographic assumptions 9 − 9 (10) − (10) Changes in economic assumptions 219 219 138 − 138 Experience effects (5) (19) (23) 16 (23) (8) Actuarial gains and losses 224 (19) − 205 144 (23) − 121 Translation adjustments 13 (5) 8 (34) 11 (22) Other 2 − 2 7 − 7 As of December 31 1,597 (534) − 1,063 1,714 (525) − 1,189 The increase in the provision between December 31, 2019 and December 31, 2020 was due mainly to the decrease in the discount rates used for the Senior Managers’ Plan and the other plans in most countries. Defined benefit retirement plan assets The investment policy for plan assets depends, for each company, on the employees’ age structure and the expected return on the various asset classes. Plan assets of retirement plan for senior managers As of December 31 Retirement plan for senior managers (in € millions, except percentage) 2019 2020 Fair value of plan assets (146) (134) Main class of plan assets Debt securities (a) (b) 90% 90% Stock equity (b) 4% 4% Real estate and other asset classes (b) 5% 5% (a) These assets are diversified and, in particular, exposure to individual sovereign risk is limited. (b) Do not include any financial instruments issued by the Group. Defined contribution retirement plans Contributions paid as part of defined contribution plans are recognized according to their function under various headings in the conso- lidated income statement.