Analysis of defined benefit expense
Charged in arriving at Group profit before finance costs:
|
Current service cost |
62 | 61 | 63 | |||||||||
|
Administration expenses |
4 | 4 | 2 | |||||||||
|
Past service credit (net) |
(78) | (2) | (1) | |||||||||
|
Gain on settlements |
- | - | (4) | |||||||||
|
Subtotal |
(12) | 63 | 60 |
Included in finance income and finance costs respectively:
|
Interest income on scheme assets |
(49) | (58) | (50) | |||||||||
|
Interest cost on scheme liabilities |
60 | 70 | 67 | |||||||||
|
Net interest expense |
11 | 12 | 17 | |||||||||
|
Net (credit)/expense to Consolidated Income Statement |
(1) | 75 | 77 |
The composition of the net (credit)/expense to the Consolidated Income Statement is as follows:
|
Eurozone |
25 | 18 | 27 | |||||||||
|
Switzerland |
(49) | 37 | 37 | |||||||||
|
United States and Canada |
14 | 11 | 6 | |||||||||
|
Other |
9 | 9 | 7 | |||||||||
|
Total |
(1) | 75 | 77 |
Past service credit in 2017 includes a gain of €81 million due to plan amendments in Switzerland. The principal amendment related to the reduction of the annuity conversion factor on retirement from 6.4% to 5.0% of accumulated savings.
| Reconciliation of scheme assets (bid value) |
2017 |
2016 |
||||||
|
At 1 January |
2,556 | 2,399 | ||||||
|
Movement in year |
||||||||
|
Interest income on scheme assets |
49 | 58 | ||||||
|
Arising on acquisition (note 31) |
5 | - | ||||||
|
Remeasurement adjustments |
||||||||
|
- return on scheme assets excluding interest income |
112 | 81 | ||||||
|
Employer contributions paid |
123 | 133 | ||||||
|
Contributions paid by plan participants |
14 | 14 | ||||||
|
Benefit and settlement payments |
(114) | (130) | ||||||
|
Administration expenses |
(4) | (4) | ||||||
|
Translation adjustment |
(119) | 5 | ||||||
|
At 31 December |
2,622 | 2,556 | ||||||
The composition of scheme assets is as follows:
|
Eurozone |
1,184 | 1,116 | ||||||
|
Switzerland |
781 | 804 | ||||||
|
United States and Canada |
448 | 453 | ||||||
|
Other |
209 | 183 | ||||||
|
Total |
2,622 | 2,556 |
| Reconciliation of actuarial value of liabilities | ||||||||
|
At 1 January |
(3,147) | (2,987) | ||||||
|
Movement in year |
||||||||
|
Current service cost |
(62) | (61) | ||||||
|
Past service credit (net) |
78 | 2 | ||||||
|
Interest cost on scheme liabilities |
(60) | (70) | ||||||
|
Arising on acquisition (note 31) |
(57) | (1) | ||||||
|
Remeasurement adjustments |
||||||||
|
- experience variations |
11 | 20 | ||||||
|
- actuarial loss from changes in financial assumptions |
(29) | (176) | ||||||
|
- actuarial gain from changes in demographic assumptions |
20 | 14 | ||||||
|
Contributions paid by plan participants |
(14) | (14) | ||||||
|
Benefit and settlement payments |
114 | 130 | ||||||
|
Translation adjustment |
147 | (4) | ||||||
|
At 31 December |
(2,999) | (3,147) | ||||||