Merck 2008 Annual Report Download - page 123

Download and view the complete annual report

Please find page 123 of the 2008 Merck annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 153

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153

In the reporting period, actuarial gains (+) and losses (-) as well as the effects of limiting
accrued pension payments in accordance with IAS 19.58 amounting to € 31.7 million
(2007: € 102.4 million) were taken to equity. As of December 31, 2008, for the afore-
mentioned reasons a cumulative total of € –133.1 million (2007: € –164.8 million) was
taken to equity.
The fair value of the plan assets can be allocated to the individual asset categories
as follows. Weighted average values are used here:
in %
Dec. 31,
2008
Dec. 31,
2007
Equity instruments 34.4 44.2
Debt instruments 38.4 39.7
Real estate 11.7 5.8
Other assets 15.5 10.3
On average, the expected rate of return on equity instruments is 8.3%, on debt instru-
ments 4.3% and on real estate 4.5%. The respective rates of return take into account
country- specific conditions and are based, among other things, on interest and dividend
income expected over the long term as well increases in the value of the investment
portfolio after the deduction of directly allocable taxes and expenses.
The development of pension plan assets was below expectations due to the generally
sharp decline in the capital markets. A corresponding diversification spreads risks.
118 | Merck Annual Report 2008