BMW 2012 Annual Report Download - page 123

123 GROUP FINANCIAL STATEMENTS
United Kingdom
Defined benefit obligation Plan assets Net obligation
in € million 2012 2011 2012 2011 2012 2011
1 January 6,676 6,014 – 5,376 – 4,812 1,300 1,202
Expense from pension obligations and
expected return on plan assets 393 362 – 260 – 249 133 113
Payments to external funds – – – 109 – 101 – 109 – 101
Employee contributions 1 1 – 1 – 1 – –
Payments on account and pension payments – 280 – 276 280 276 – –
Actuarial gains (–) and losses (+) 309 376 – 170 – 328 139 48
Translation differences and other changes 181 199 – 146 – 161 35 38
31 December 7,280 6,676 – 5,782 – 5,376 1,498 1,300
Other
Defined benefit obligation Plan assets Net obligation
in € million 2012 2011 2012 2011 2012 2011
1 January 918 702 – 485 – 436 433 266
Effect of first-time consolidation 2 4 – – 3 2 1
Expense from pension obligations and
expected return on plan assets 88 71 – 22 – 24 66 47
Payments to external funds – – – 67 – 56 – 67 – 56
Employee contributions 4 2 – 4 – 2 – –
Payments on account and pension payments – 22 – 23 18 18 – 4 – 5
Actuarial gains (–) and losses (+) 166 135 – 33 31 133 166
Translation differences and other changes – 8 27 – 9 – 13 – 17 14
31 December 1,148 918 – 602 – 485 546 433
Components of plan assets
Germany United Kingdom Other countries Total
in € million 2012 2011 2012 2011 2012 2011 2012 2011
Equity instruments 1,447 1,384 1,091 1,055 184 211 2,722 2,650
Debt securities 4,277 3,556 3,441 2,927 268 183 7,986 6,666
Real estate 84 76 532 501 64 40 680 617
Other 256 162 718 893 86 51 1,060 1,106
31 December 6,064 5,178 5,782 5,376 602 485 12,448 11,039
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 ac-
tuarial
assumptions applied. The financial risk of pen-
sion payments having to be made for longer than the
calculated period is also hedged for pensioners in the UK
by a so-called longevity hedge.