Chrysler 2012 Annual Report Download - page 191

Notes
190 Consolidated
Financial
Statements
at 31 December
2012
Changes in the fair value of plan assets are as follows:
Pension benefits
Healthcare and
life insurance plans
(€ million) 2012 2011 2012 2011
Fair value of plan assets at the beginning of the year 20,004 327 --
Change in scope of consolidation -18,317 -26
Expected return on plan assets 1,434 816 --
Company contributions 217 221 --
Employee contributions 95--
Actuarial gains/(losses) 453 (530) --
Benefits paid (1,782) (985) --
Exchange rate differences (287) 1.830 -1
(Gains)/losses on settlements ---(27)
Other changes -3--
Fair value of plan assets at the end of the year 20,048 20,004 --
Change in the scope of consolidation occurred in 2011 related to the initial acquisition of control of Chrysler. As required under IFRS 3 – Business
Combinations, in measuring assets acquired and liabilities assumed of Chrysler, Fiat recognised the assets and liabilities from post-employment benefits
of Chrysler at the present value of the obligation less the fair value of any plan assets, including all actuarial gains and losses and past service costs that
arose before the acquisition date.
For the year ended 31 December 2012, the actuarial losses arising from calculating the present value of the obligation mainly had arisen from a reduction in
the discount rates used by Chrysler as compared to the discount rate used for the year ended 31 December 2011, which was partially offset by the actual
return on plan assets during the year.
For the year ended 31 December 2011, the actuarial losses mainly had arisen from a reduction in the discount rates used by Chrysler at the end of the
seven-month period June-December 2011 compared to those used at the date of acquisition of control and from certain changes to the mortality tables
made by Chrysler in North America.
In 2011, a net gain of €69 million shown in Other post-employment benefits relates to a plan amendment associated with the termination of the Chrysler
legal services plan in 2013. This gain has been included in the income statement within Other unusual income. The losses on settlements for Pension plan
of €36 million were a special early retirement cost.
Plan assets may be summarised as follows:
(in %) At 31 December 2012 At 31 December 2011
Equity securities 22% 25%
Debt investments 48% 43%
Properties occupied by third parties --
Other assets 30% 32%
Equity securities are invested broadly in U.S., developed international and emerging market equity securities. Debt investments are fixed income investments
which comprise primarily long duration U.S. Treasury and global government bonds, as well as U.S., developed international and emerging market
companies debt securities diversified by sector, geography and through a wide range of market capitalisation. Other assets include private equity, real estate
and hedge funds. Private equity investments include those in limited partnerships that invest primarily in operating companies that are not publicly traded on
a stock exchange. Real estate investments include those in limited partnerships that invest in various commercial and residential real estate projects both
domestically and internationally. Hedge fund investments include those seeking to maximise absolute return using a broad range of strategies to enhance
returns and provide additional diversification. Plan assets do not include treasury shares of Fiat S.p.A. or properties occupied by Group companies.