Mercedes 2010 Annual Report Download - page 215

Consolidated Financial Statements | Notes to the Consolidated Financial Statements | 211
22. Pensions and similar obligations
Provisions for pension benefit plans and similar obligations are
comprised of the following components:
At December 31,
2010 2009
In millions of euros
Provision for pension benefits 3,449 3,158
Provision for other post-employment benefits 880 924
4,329 4,082
Defined benefit pension plans. Provisions for pension benefits
were solely made for defined entitlements to active or former
employees. Under a defined benefit pension plan, beneficiar-
ies obtain an entitlement to a defined benefit when the insured
case occurs. Daimler provides pension benefits with defined
entitlements to almost all of its employees. The majority of the
active employees are entitled to pay-related defined pension
benefits. Under these plans, employees earn benefits for each
year of service. The benefits earned per year of service are
dependent on the salary level and age of the respective employees.
Principally, the defined benefit pension plans provided by
Daimler vary according to the economic, tax and legal circum-
stances of the country concerned. Generally, defined benefit
pension plans also provide benefits for invalidity and death. The
defined benefit obligations are funded in large part with assets
in pension funds.
Defined contribution pension plans. To a minor degree, Daimler
additionally provides defined contribution pension benefits. For
defined contribution plans, Daimler makes defined contributions
to external insurances or funds. Basically, there are no further
contractual obligations or risks for Daimler in excess of the defined
contributions. The Group also pays contributions to govern-
mental pension schemes. In 2010, the total cost from payments
made under defined contribution plans amounted to €1.2 billion
(2009: €1.0 billion). These payments are primarily related to
governmental pension plans.
Other post-employment benefits. Certain foreign subsidiaries
of Daimler, mainly in the United States provide their employees
with post-employment health care benefits with defined entitle-
ments, which have to be accounted for as defined benefit plans.
These obligations are funded to a small extent through reim-
bursement rights and plan assets. The following table provides
key data for other post-employment benefits:
2010 2009
In millions of euros
Present value of defined benefit obligations 1,056 1,040
Fair value of plan assets and reimbursement rights 130 149
Funded status -926 -891
Net periodic cost/income for
other-postemployment benefits
76
-102
As a result of the adjustment of defined health care and pension
benefits at our subsidiary Daimler Trucks North America, the
Group recorded a pre-tax gain of €160 million in 2010. The gain is
mainly included in cost of sales in the consolidated statement
of income/loss and is allocated to the Daimler Trucks segment.
This pre-tax gain is included in the 2010 net periodic cost/in-
come for defined health care and pension benefits, as presented
in this Note.
Details of defined pension benefit plans
Funded status. The following information with respect to the
funded status of the Group’s defined pension benefit plans is
presented separately for German plans and non-German plans.
In 2006, the non-German plans were principally comprised of
plans in the United States still including the Chrysler plans. In
2007, as a result of the deconsolidation of Chrysler, the Group’s
provisions for pension benefits and the corresponding plan assets
decreased significantly.