BMW 2008 Annual Report Download - page 107

108
72 Group Financial Statements
72 Income Statements
74 Balance Sheets
76 Cash Flow Statements
78 Statement of Income and
Expenses recognised
in Equity
79 Notes
79 Accounting Principles
and Policies
88 Notes to the Income
Statement
94
Notes to the Balance Sheet
1 1 5 Other Disclosures
1 2 9 Segment Information
Germany
Defined benefit obligation Plan assets Net obligation
in euro million 2008 2007 2008 2007 2008 2007
 January 3,849 4,414 – – 3,849 4,414
Deconsolidation effects – 4 – – – – 4 –
Expense from pension obligations 325 239 – 32 – 293 239
Payments to external funds – – –1,375 – –1,375 –
Employee contributions (deferred remuneration
retirement scheme) 49 52 – 29 – 20 52
Payments on account and pension payments – 99 – 80 3 – – 96 – 80
Actuarial gains (–) and losses (+) – 271 – 776 278 – 7 – 776
Translation differences and other changes –1 – – – –1 –
 December 3,848 3,849 –1,155 – 2,693 3,849
United Kingdom
Defined benefit obligation Plan assets Net obligation
in euro million 2008 2007 2008 2007 2008 2007
 January 6,327 6,568 – 5,686 – 6,134 641 434
Deconsolidation effects – 24 – 28 – 4 –
Expense from pension obligations 379 387 – 303 – 335 7 6 52
Payments to external funds – – – 98 – 47 – 98 – 47
Employee contributions 13 15 –13 –15 – –
Pension payments – 285 – 293 285 293 – –
Actuarial gains (–) and losses (+) – 647 211 486 42 – 161 253
Translation differences and other changes – 1,360 – 561 1,242 510 – 118 – 51
 December 4,403 6,327 – 4,059 – 5,686 344 641
Compared to the expected return of euro  million (:
euro  million), fund assets actually decreased in the
financial year  by euro  million (: increase in
fund assets of euro  million). This gave rise to actuarial
losses on fund assets of euro  million (: euro  mil-
lion). The actuarial losses on fund assets compare with
actuarial gains of euro  million (: euro  million) on
benefit obligations. This offsetting effect was attributable
primarily to the fact that the pension funds’ investment
strategy is based on the structure of the related benefit
obligations.
The level of the pension obligations differs depending on
the pension system applicable in each country. Since the
state pension system in the United Kingdom only pro-
vides a basic fixed amount benefit, retirement benefits are
largely organised in the form of company pensions on
the one hand and arrangements financed by the individual
on the other. The pension benefits in the United Kingdom
therefore contain contributions made by the employee.
The net obligation from pension plans in Germany, the
United Kingdom and other countries changed as follows:
Germany United Kingdom Other
in % 2008 2007 2008 2007 2008 2007
Expected rate of return on plan assets 5.43 – 5.93 5.75 6.99 7.25