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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
108
Carrying amount of provisions (gross obligations net of plan assets)
As of December 31
2014
2015
(in € millions)
Retirement
plan for senior
managers
Other plans
Total
Retirement
plan for senior
managers
Other plans
Total
Vested rights with projected
salaries
468
803
1,272
418
836
1,255
Fair value of plan assets
(172)
(302)
(475)
(165)
(321)
(486)
Vested rights net of fair value
of plan assets
296
501
796
254
515
769
Impact of ceiling on assets
−
−
−
−
−
−
Obligations for which
provisions have been recorded
on the balance sheet
296
501
796
254
515
769
In addition, the total amount of contributions/benefits to be paid out in 2016 in connection with these plans is estimated at €39 million.
Actuarial assumptions
Methodology
The Group defines the actuarial assumptions by country and/or subsidiary.
The discount rates used in 2015 were obtained on the basis of investment grade (AA rating) bond yields of private issuers for durations
equivalent to that of the commitment in the corresponding monetary areas. The level of quality used is assessed on the basis of the rating
obtained from the leading financial rating agencies. In the case of illiquid markets, the discount rate is determined using government
bonds of equivalent maturity to the term of the assessed plans. In 2014, this was notably the case in respect of Indonesia.
Retirement plan for senior managers
Main actuarial assumptions
Year ended December 31
Retirement plan for senior managers
(as a percentage, except for ages in number of years)
2014
2015
Discount rate
2.2%
2.4%
Expected return on plan assets
2.2%
2.4%
Salary growth rate
3.0%
3.0%
Retirement age
60-65
60-66
Sensitivity analysis to the key assumption: the discount rate
Year ended December 31
Retirement plan for senior managers
2014
2015
(in € millions)
Increase (decrease)
Increase (decrease)
50 bps increase
(41)
(39)
50 bps decrease
45
44