Airbus 2015 Annual Report Download - page 235

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 53 l
Notes to the IFRSConsolidatedFinancialStatements
2.
2.6 Employees Costs and Benefits
29.2 Provisions for Deferred Compensation
This amount represents obligations that arise if employees elect to convert part of their remuneration or bonus into an equivalent
commitment for deferred compensation which is treated as a defined benefit post-employment plan. The development for the
DBO and plan assets (“PA”) is as follows:
CHANGE IN NET DEFINED BENEFIT LIABILITIES (ASSETS)
(In € million) DBO PA Total DBO PA Total
Balance as of 1January 744 (81) 663 529 (74) 455
Service cost 137 0137 85 085
Interest cost 14 014 18 018
Interest income 0(2) (2) 0(3) (3)
Remeasurements: Actuarial (gains) and losses arising 
 from changes in financial assumptions (34) 0(34) 121 0121
 from changes in experience adjustments 000606
 from plan assets 0330(1) (1)
Transfer and change in consolidation (15) 0(15) (12) 0(12)
Benefits paid (5) 0(5) (3) 0(3)
Additions 0000(3) (3)
Contributions 0 (33) (33) 000
Balance as of 31December 841 (113) 728 744 (81) 663
2015 2014
RECOGNISED AS
(In € million)
31December
2015 2014
Provision 748 683
Other non-current and current assets 20 20
Total 728 663
The portion of the obligation, which is not protected by the
pension guarantee association or PSV (“Pensions-Sicherungs
Verein”) in case of an insolvency of the Group companies
concerned, is covered by securities. Trust agreements between
the trust and the participating companies stipulate that some
portions of the obligation must be covered with securities in the
same amount, while other portions must be covered by 115%
leading to an overfunding of the related part of the obligation.
These amounts are recognised as other non-current and current
assets.
30. Share-Based Payment
Share-based compensation — In 2007, the Group
introduced a Performance and Restricted Unit Plan (or LTIP)
which qualifies as a cash settled share-based payment
plan under IFRS2. The grant of so called “units” will not
physically be settled in shares (except with regard to
Group Executive Committee Members). For details of the
conversion of some Performance Units granted to Executive
Committee Members into equity-settled plans please refer to
Note31.1“Remuneration-Executive Committee”.
For plans settled in cash, provisions for associated services
received are measured at fair value by multiplying the number
of units expected to vest with the fair value of one LTIP unit
at the end of each reporting period, taking into account the
extent to which the employees have rendered service to date.
The fair value of each LTIP unit is determined using a forward
pricing model. Changes of the fair value are recognised as
personnel expense of the period, leading to a remeasurement
of the provision.
Financial Statements 2015
11 22 33 44 55
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Annual Report 2015 Financial Statements 2015
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