Reebok 2014 Annual Report Download - page 223

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adidas Group
/
2014 Annual Report
Consolidated Financial Statements
219
2014
/
04.8
/
Notes
/
Notes to the Consolidated Statement of Financial Position
As in the previous year, the calculation of the pension liabilities in Germany is based on a discount rate determined
using the ‘Mercer Yield Curve (MYC)’ approach.
Remeasurements, such as gains or losses arising from changes in the actuarial assumptions for defined
benefit pension plans during the financial year or a return on the plan assets exceeding the interest income,
are immediately recognised outside the income statement as a change in other reserves in the consolidated
statement of comprehensive income.
Pension expenses for defined benefit pension plans
(€ in millions) Year ending
Dec. 31, 2014
Year ending
Dec. 31, 2013
Current service cost 16 16
Net interest 8 8
Thereof: interest cost 12 11
Thereof: interest income (4) (3)
Past service cost 1 0
Expenses for defined benefit pension plans (recognised in the consolidated income
statement) 25 24
Actuarial losses/(gains) 79 (3)
Thereof: due to changes in financial assumptions 79 (7)
Thereof: due to changes in demographic assumptions 0 1
Thereof: due to experience adjustments 0 3
Return on plan assets (not included in net interest income) (1) (3)
Asset ceiling effect (1) 0
Remeasurements for defined benefit pension plans (recognised as decrease/
(increase) in other reserves in the consolidated statement of comprehensive income) 77 (6)
Total 102 18
Of the total pension expenses recorded in the consolidated income statement, an amount of € 17 million (2013:
€ 16 million) relates to employees of adidas AG, € 0.2 million (2013: € 0.2 million) relates to employees in the UK
and € 2 million (2013: € 2 million) relates to employees in Japan. The amendment of pension arrangements for
members of the Executive Board of adidas AG in 2014 resulted in past service cost of € 1 million. The pension
expense is mainly recorded within other operating expenses. The production-related part of the pension expenses
is recognised within cost of sales.
Present value of the defined benefit obligation
(€ in millions) 2014 2013
Present value of the obligation from defined benefit pension plans as at January 1 325 317
Currency translation differences 7 (6)
Current service cost 16 16
Interest cost 12 11
Contribution by plan participants 0 0
Pensions paid (13) (10)
Actuarial losses/(gains) 79 (3)
Thereof: due to changes in financial assumptions 79 (7)
Thereof: due to changes in demographic assumptions 0 1
Thereof: due to experience adjustments 0 3
Past service cost 1 0
Plan settlements 0 0
Present value of the obligation from defined benefit pension plans as at December 31 427 325