AIRBUS - 2019 Financial Statements

2.6 Employees Costs and Benefits Notes to the IFRS Consolidated Financial Statements / Plan assets allocation The fair value of the plan assets for retirement plans and deferred compensation can be allocated to the following classes: (In € million) 2019 2018 Quoted prices Unquoted prices Total Quoted prices Unquoted prices Total Equity securities Europe 1,095 0 1,095 1,061 0 1,061 Rest of the world 429 0 429 361 0 361 Emerging markets 535 0 535 359 0 359 Global 1,816 177 1,993 1,355 0 1,355 Bonds Corporates 1,828 242 2,070 1,570 71 1,642 Governments 2,010 0 2,010 1,451 0 1,451 Pooled investments vehicles 415 0 415 491 0 491 Commodities 0 0 0 0 98 98 Hedge funds 0 265 265 0 269 269 Derivatives 0 58 58 0 207 207 Property 0 563 563 0 494 494 Cash and money market funds 1,875 58 1,933 1,103 96 1,199 Others 0 1,296 1,296 0 976 976 Balance at 31 December 10,003 2,659 12,662 7,751 2,211 9,962 The majority of funded plans apply broadly an asset-liability matching framework. The strategic asset allocation of the plans takes into account the characteristics of the underlying obligations. Investments are widely diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. A large portion of assets in 2019 consists of fixed income and equity instruments, although the Company also invests in property, commodities and hedge funds. The Company reassesses the characteristics of the pension obligations from time to time or as required by the applicable regulation or governance framework. This typically triggers a subsequent review of the strategic asset allocation. Provisions by Countries The amount recorded as provision for retirement plans can be allocated to the countries as follows: (In € million) Pension plans of the Company Participation in BAE Systems Pension Scheme in the UK Total Germany France UK Canada DBO 10,813 2,017 1,492 427 3,991 18,740 Plan assets 6,497 23 1,319 273 3,343 11,455 Recognised at 31 December 2019 4,317 1,994 173 154 648 7,286 DBO 8,660 1,756 1,205 311 3,475 15,407 Plan assets 4,646 23 1,083 189 2,992 8,933 Recognised at 31 December 2018 4,014 1,733 122 122 483 6,474 Contributions to Defined Contribution Plans Employer’s contribution to state and private pension plans, mainly in Germany and France, are to be considered as defined contribution plans. Contributions in 2019 amounted to €853 million (2018: €811 million). Sensitivities are calculated based on the same method (present value of the DBO calculated with the projected unit method) as applied when calculating the post-employment benefit obligations. The sensitivity analyses are based on a change of one assumption while holding all other assumptions constant. This is unlikely to occur in practice and changes of more than one assumption may be correlated leading to different impacts on the DBO than disclosed above. If the assumptions change at a different level, the effect on the DBO is not necessarily in a linear relation. 52 Airbus / Financial Statements 2019