BMW 2003 Annual Report Download - page 97
Download and view the complete annual report
Please find page 97 of the 2003 BMW annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87 -
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
 |
 |
96
001 BMW Group in figures
004 Report of the Supervisory Board
008 Supervisory Board
011 Board of Management
012 Group Management Report
12 A Review of the Financial Year
29 Outlook
30 Financial Analysis
44 Risk Management
047 BMW Stock
050 Corporate Governance
054 Group Financial Statements
118 BMW AG Principal Subsidiaries
120 BMW Group10-year Comparison
122 BMW Group Locations
124 Glossary, Index
discount factor from 5.8% to 5.5% in the light of
capital market developments.
The defined benefit plans of the BMW Group
gave rise to an expense from pension obligations
The expense from reversing the discounting of
pension obligations and the income from the ex-
pected return on plan assets are reported as part of
the financial result. All other components of pension
expense are included in the relevant income state-
ment under costs by function.
The actual return from external pension funds
was euro 407 million (2002: euro 52 million). The
variance compared to the expected return and the
actual return in the previous year was attributable
mainly to the fact that pension fund assets generated
in financial year 2003 of euro 339 million (2002:
euro 344 million), comprising the following com-
ponents:
a higher return than planned as a result of the re-
covery of the international capital markets, particu-
larly in the United Kingdom. The difference between
actual and expected return from external pension
funds is an actuarial gain or loss. Actuarial gains or
losses are recognised as income or expense over
the expected average remaining working lives of
the employees participating in the plans, when the
accumulated
amount of the actuarial gains or losses
exceeds
10 %ofthe present value of the defined
benefit
obligations.
in euro million Germany UK Other countries Total
2003 2002 2003 2002 2003 2002 2003 2002
Current service cost 81 62 48 52 39 31 168 145
Expense from reversing the
discounting of pension obligations 122 112 273 327 15 13 410 452
Expected return on plan assets (–) – –– 239 – 313 –10 –12 – 249 – 325
Actuarial gains (–) and losses (+) – –623193
Past service cost – –––1212
Effect of plan settlements
(recognised in provisions in
previous years) – ––67 –––67
Expense from pension
obligations 203 174 88 135 48 35 339 344