Mercedes 2015 Annual Report Download - page 233

240 E | CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Pension cost
The components of pension cost included in the consolidated
statement of income are shown in table  E .51.
Table  E.52 shows the line items within the consolidated
statement of income in which the net periodic pension cost
is included.
Measurement assumptions
The measurement date for the Group’s defined benefit
pension obligations and plan assets is generally December 31.
The measurement date for the Group’s net periodic pension
cost is generally January 1. The assumptions used to calculate
the defined benefit obligations vary according to the economic
conditions of the countries in which the pension plans
are situated.
Calculation of the defined benefit obligation uses life expectancy
for the German plans based on the 2005 G mortality tables
of K. Heubeck. For Non-German plans, comparable country-
specific calculation methods are used.
Table  E.53 shows the significant weighted average measure-
ment factors used to calculate pension benefit obligations.
Discount rates for German and non-German pension plans
are determined annually as of December 31 on the basis
of high-quality corporate bonds with maturities and currencies
matching those of the pension payments.
Sensitivity analysis
An increase or decrease in the main actuarial assumptions
would affect the present value of the defined benefit pension
obligations as shown in table  E.54.
The calculations carried out by actuaries were done in
isolation for the evaluation parameters regarded as important.
This means that if there is a simultaneous change in several
parameters, the individual results cannot be summed due to
correlation effects. With a change in the parameters, the
sensitivities shown cannot be used to derive a linear develop-
ment of the defined benefit obligation.
For the calculation of the sensitivity of life expectancy,
by means of fixed (non-age-dependent) factors for a reference
person, a life expectancy one year higher or one year lower
was achieved.
Effect on future cash flows
Daimler currently plans to make contributions of €0.6 billion
to its pension plans for the year 2016; the final amount is
usually set in the fourth quarter of a financial year. In addition,
the Group expects to make pension benefit payments of
€0.9 billion in 2016.
The weighted average duration of the defined benefit obliga-
tions is shown in table  E.55.
E .51
Pension cost
2015 2014
Total
German
Plans
Non-German
Plans Total
German
Plans
Non-German
Plans
In millions of euros
Current service cost -716 -602 -114 -527 -437 -90
Past service cost, curtailments and settlements 3 -21 24 -22 -19 -3
Net interest expense -245 -201 -44 -292 -250 -42
Net interest income 3 – 3 3 – 3
-955 -824 -131 -838 -706 -132