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 |
| | | | | | | | |
