HSBC 2007 Annual Report Download - page 377

375
Changes in the present value of defined benefit obligations
2007 2006
US$m US$m
At 1 January ....................................................................................................................................... 1,106 1,004
Current service cost ........................................................................................................................... 25 19
Interest cost ........................................................................................................................................ 67 64
Contributions by employees .............................................................................................................. 2 2
Actuarial (gains)/losses ...................................................................................................................... (109) 37
Benefits paid ...................................................................................................................................... (54) (52)
Past service cost:
– vested immediately ..................................................................................................................... (2) 1
– unvested benefits ........................................................................................................................ (2) –
Reduction in liabilities resulting from curtailments .......................................................................... (42) (9)
Liabilities extinguished on settlements ............................................................................................. (2) (1)
Exchange differences ......................................................................................................................... 49 41
At 31 December ................................................................................................................................. 1,038 1,106
Changes in the fair value of plan assets
2007 2006
US$m US$m
At 1 January ....................................................................................................................................... 133 107
Expected return on plan assets .......................................................................................................... 13 11
Contributions by HSBC ..................................................................................................................... 19 39
Experience gains/(losses) .................................................................................................................. (6) (1)
Benefits paid ...................................................................................................................................... (11) (20)
Assets distributed on curtailments ..................................................................................................... – (1)
Assets distributed on settlements........................................................................................................ (2) –
Exchange differences ......................................................................................................................... – (2)
At 31 December ................................................................................................................................. 146 133
The actual return on plan assets for the year ended 31 December 2007 was US$7 million (2006: US$10 million).
HSBC expects to make US$18 million (2006: US$19 million) of contributions to post-employment healthcare benefit
plans during 2008. Benefits expected to be paid from the plans to retirees over each of the next five years, and in
aggregate for the five years thereafter, are:
2008 2009 2010 2011 2012 2013-2017
US$m US$m US$m US$m US$m US$m
Significant plans ................................................. 50 52 54 56 58 309
Total expense recognised in the income statement in ‘Employee compensation and benefits’
2007 2006 2005
US$m US$m US$m
Current service cost ......................................................................................... 25 19 18
Interest cost ...................................................................................................... 67 64 63
Expected return on plan assets ........................................................................ (13) (11) (10)
Past service cost ............................................................................................... (4) (1) (13)
Losses on curtailments ..................................................................................... (42) (8) –
Losses on settlements ...................................................................................... – (1) –
Total expense ................................................................................................... 33 62 58