BMW 2011 Annual Report Download - page 123

123 GROUP FINANCIAL STATEMENTS
United Kingdom
Defined benefit obligation Plan assets Net obligation
in € million 2011 2010 2011 2010 2011 2010
1 January 6,014 5,743 – 4,812 – 4,487 1,202 1,256
Expense from pension obligations and
expected return on plan assets 362 381 – 249 – 246 113 135
Payments to external funds – – – 101 – 112 – 101 – 112
Employee contributions 1 1 – 1 – 1 – –
Payments on account and pension payments – 276 – 282 276 282 – –
Actuarial gains (–) and losses (+) 376 – 7 – 328 – 110 48 – 117
Translation differences and other changes 199 178 – 161 – 138 38 40
31 December 6,676 6,014 – 5,376 – 4,812 1,300 1,202
Other
Defined benefit obligation Plan assets Net obligation
in € million 2011 2010 2011 2010 2011 2010
1 January 702 569 – 436 – 346 266 223
Effect of first-time consolidation 4 1 – 3 – 1 1
Expense from pension obligations and
expected return on plan assets 71 70 – 24 – 20 47 50
Payments to external funds – – – 56 – 35 – 56 – 35
Employee contributions 2 2 – 2 – 2 – –
Payments on account and pension payments – 23 – 18 18 15 – 5 – 3
Actuarial gains (–) and losses (+) 135 25 31 – 15 166 10
Translation differences and other changes 27 53 – 13 – 33 14 20
31 December 918 702 – 485 – 436 433 266
Components of plan assets
Germany United Kingdom Other countries To t a l
in € million 2011 2010 2011 2010 2011 2010 2011 2010
Equity instruments 1,384 1,368 1,055 1,082 211 197 2,650 2,647
Debt securities 3,556 3,167 2,927 2,843 183 153 6,666 6,163
Real estate 76 – 501 430 40 26 617 456
Other 162 672 893 457 51 60 1,106 1,189
31 December 5,178 5,207 5,376 4,812 485 436 11,039 10,455
Plan assets in Germany, the UK and other countries comprised the following:
A substantial portion of plan assets is invested in debt
securities in order to minimise the effect of capital
market fluctuations. Other investment classes, such as
stocks and shares, serve to generate higher rates of
return. This is necessary to cover risks (such as changes
in morbidity tables) not taken into account in the actu-
arial assumptions applied. The financial risk of pension
payments having to be made for longer than the calcu-
lated period is also hedged for pensioners in the UK by
a so-called longevity hedge.