ANNUAL REPORT 2012

Financials

23. Employee benefit obligations


Most of Fiskars Group’s pension plans are defined contribution plans. The defined benefit plans in the US, Great Britain and Germany are closed plans, and future pay increases will not impact the valuation. The defined benefit plans in Norway are not closed. The Group also has supplementary pension plans in Finland which are classified as defined benefit plans. Authorized actuaries have performed the actuarial calculations for the defined benefit plans. The Group is responsible for some post-employment benefits in Italy, but the liabilities recorded are final and as such they are classified as defined contribution plans.


EUR million 2012 2011
Liabilities for post-employment benefits* 1.6 1.7
Defined benefit pension liabilities** 5.7 6.5
Pension liability total 7.3 8.2








* The liablilities for post-employment benefits: Italy EUR 1.3 (1.5) and Other 0.3 (0.2) million.

** The defined benefit liabilities consist of Germany EUR 1.3 (1.1), Norway -0.8 (-0.8), Netherlands 0 (1.4), UK -0.2 (-0.4), USA 5.2 (5.0) and Finland 0.2 (0.2) million.


Amounts as of December 31

EUR million 2012 2011 2010 2009 2008
Defined Benefit Obligation 25.2 26.1 26.4 27.1 23.9
Plan assets 19.5 19.6 19.7 20.0 17.0
Deficit/(Surplus) in the plan 5.7 6.5 6.7 7.1 6.9








Experience adjustments on plan liabilities 0.1 0.5 0.2 0.8 2.3
Experience adjustments on plan assets 0.4 -0.9 0.3 1.5 -4.9

Amounts recognized in the Balance Sheet

EUR million 2012 2011
Change in defined benefit obligation:

Defined benefit obligation at the beginning of the year 26.1 26.4
Translation difference 0.5 0.6
Service cost 0.0 0.2
Interest cost 1.0 1.2
Actuarial (gain)/loss 1.8 -0.4
Settlements -2.7
Benefits paid -1.6 -1.7
Defined benefit obligation, Dec 31 25.2 26.1



Changes in plan assets:
Fair value of plan assets at the beginning of the year 19.6 19.7
Translation difference 0.6 0.4
Expected return on plan assets 0.9 1.0
Actuarial (gain)/loss 0.4 -1.1
Benefits paid -1.6 -1.7
Employer contributions 1.2 1.4
Settlements -1.3
Other changes -0.4 0.0
Fair value of plan assets, Dec 31 19.5 19.6








Net defined pension benefit liability at Dec 31 5.7 6.5








Amounts recognized in the income statement

EUR million 2012 2011
Current service cost 0.0 0.2
Interest cost 1.0 1.2
Effect of settlement and curtailments -0.8
Expected return on plan assets -0.9 -1.0
Total -0.7 0.4

Cumulative amounts recognized directly in other comprehensive income

EUR million 2012 2011
Actuarial gain/(loss) -1.4 -0.6
Deferred tax 0.6 0.3
Total -0.8 -0.3








Actual return on plan assets 1.3 0.1








Plans in US and Germany are non-funded. Plans in Finland, Norway and the Netherlands are taken care of by local pension insurance companies. The plans in UK are funded by investments in equities and bonds totaling EUR 13.3 million of which EUR 9.3 million are investments in equities. The Group estimates its contributions to the plans during 2013 to be EUR 1.2 million.


Percentages of plan assets by asset group

% 2012 2011
Equity securities 54 49
Debt securities 7 4
Real Estate 6 7
Bonds 32 31
Other 1 9








Principal actuarial assumptions at the balance sheet date


Discount rate
% 2012 2011
Great Britain 4.35 4.90–5.10
Germany 3.0 4.8
Finland 3.0 4.8
United States 3.1 4.2
Norway 2.2 3.3
The Netherlands
4.8








Expected return on plan assets, long term
% 2012 2011
Great Britain 4.35 1.60–5.15
Germany n/a n/a
Finland 3.0 4.8
United States n/a n/a
Norway 2.2 4.8
The Netherlands
4.8
Future salary increases
% 2012 2011
Great Britain n/a 3.8
Germany 0.0 0.0
Finland 2.5 2.5
United States n/a n/a
Norway 3.3 4.0
The Netherlands
0–4.0








Future pension increases
% 2012 2011
Great Britain 0–2.75 2.3–3.0
Germany 2.0 1.8
Finland 2.1 2.1
United States 0.0 0.0
Norway 0.0 0.7
The Netherlands
0–2.5