Audi 2007 Annual Report Download - page 211

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The present value of the defined benefits changed as follows:
EUR million 2007 2006
Present value on January 1 2,280 2,418
Changes in the consolidated companies and initial application
of IAS 19 8 –
Service cost 79 99
Interest cost 104 104
Actuarial gains (-) / losses (+) – 70 – 279
Pension payments from company assets – 69 – 61
Effects from transfers – 6 –
Currency differences – 1 – 1
Present value on December 31 2,325 2,280
The reconciliation for the fair value of the plan assets is as follows:
EUR million 2007 2006
Plan assets on January 1 306 238
Expected return on plan assets 17 13
Actuarial gains (+) / losses (-) – 19 + 5
Employer contributions 64 50
Plan assets on December 31 368 306
In the past fiscal year, actual losses from the plan assets amounted to EUR – 2 million.
The long-term overall yield on the plan assets is determined on a uniform basis and de-
pends on the actual long-term earnings of the portfolio, historical overall market yields and
a forecast of the anticipated yields of the classes of security in the portfolio.
Employer contributions to the fund assets totaling EUR 52 million are expected for the
following fiscal year.
The composition of fund assets is as follows, by category:
% of fund assets 2007 2006
Shares 38.0 39.8
Fixed-interest securities 53.8 51.3
Cash 8.2 7.3
Other 0.0 1.5
Actuarial gains and losses result from changes in the entitlement base and from deviations
in the actual trends (e.g. increases in pay or retirement benefits) from the figures assumed
for calculation purposes. In accordance with the requirements of IAS 19, such gains and
losses are recognized under a separate line item within equity, after taking deferred tax into
account.