Chrysler 2014 Annual Report Download - page 224

222 2014 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
Amounts recognized in the Consolidated income statement were as follows:
For the years ended December 31,
2014 2013 2012
(€ million)
Current service cost 184 292 271
Interest expense 1,089 1,026 1,199
(Interest income) (878) (768) (942)
Other administration costs 62 42 44
Past service costs/(credits) and gains or losses arising from settlements 17 (162) 10
Total recognized in the Consolidated income statement 474 430 582
In 2014, following the release of new standards by the Canadian Institute of Actuaries, mortality assumptions used for
our Canadian benefit plan valuations were updated to reflect recent trends in the industry and the revised outlook for
future generational mortality improvements. Generational improvements represent decreases in mortality rates over
time based upon historical improvements in mortality and expected future improvements. The change increased the
Group’s Canadian pension obligations by approximately €41 million. Additionally, retirement rate assumptions used for
the Group’s U.S. benefit plan valuations were updated to reflect an ongoing trend towards delayed retirement for FCA
US employees. The change decreased the Group’s U.S. pension and other post-employment benefit obligations by
approximately €261 million and €40 million, respectively.
During the second quarter of 2013, FCA US amended its U.S. and Canadian salaried defined benefit pension plans. The U.S.
plans were amended in order to comply with U.S. regulations, cease the accrual of future benefits effective December 31,
2013, and enhance the retirement factors. The Canada amendment ceased the accrual of future benefits effective
December 31, 2014, enhanced the retirement factors and continued to consider future salary increases for the affected
employees. An interim remeasurement was performed for these plans, which resulted in a curtailment gain of €166 million
recognized in unusual income in the Consolidated income statement (see Note 8). In addition, the Group recognized a €509
million reduction to its pension obligation, a €7 million reduction to defined benefit plan assets and a corresponding €502
million increase in accumulated Other comprehensive income/(loss) for the year ended December 31, 2013. There were no
significant plan amendments or curtailments to the Group’s pension plans for the year ended December 31, 2014.
The fair value of plan assets by class was as follows:
At December 31, 2014 At December 31, 2013
Amount
of which have
a quoted market
price in an
active market Amount
of which have
a quoted market
price in an
active market
(€ million)
Cash and cash equivalents 713 614 532 401
U.S. equity securities 2,406 2,338 2,047 2,033
Non-U.S. equity securities 1,495 1,463 1,540 1,531
Commingled funds 2,009 186 1,518 195
Equity instruments 5,910 3,987 5,105 3,759
Government securities 2,948 780 2,545 729
Corporate bonds (including Convertible and high yield bonds) 6,104 4 5,049 38
Other fixed income 892 7 635 —
Fixed income securities 9,944 791 8,229 767
Private equity funds 1,648 — 1,713 —
Commingled funds 5 5 — —
Mutual funds 4 — 4 —
Real estate funds 1,395 — 1,222 —
Hedge funds 1,841 — 1,759 —
Investment funds 4,893 5 4,698 —
Insurance contracts and other 771 91 418 46
Total fair value of plan assets 22,231 5,488 18,982 4,973