Mercedes 2013 Annual Report Download - page 228

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Pension cost. The components of pension cost included
in the consolidated statement of income are presented in table
 F.58.
Table  F.59 presents 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 assump-
tions used to calculate the projected benefit obligations vary
according to the economic conditions of the countries in which
the pension plans are situated.
The calculation for the sensitivity of life expectancy for the
German plans is based on the 2005 G mortality tables
of K. Heubeck. For Non-German plans, comparable country
specific valuation methods are used.
Table  F.60 shows the significant weighted average measure-
ment factors used to determine 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 pension obligations as shown in table  F.61.
The calculations carried out by actuaries were done in isolation
for the evaluation parameters regarded as important.
For the calculation of the sensitivity of life expectancy,
by means of fixed (non-age-dependent) factors, a life expectancy
one year higher or one year lower was achieved for a reference
person.
F.58
Pension cost
2013 2012
Total
German
plans
Non-German
plans Total
German
plans
Non-German
plans
In millions of euros
Current service cost -548 -453 -95 -404 -320 -84
Past service cost, curtailments and settlements –––-4 – -4
Net interest expense -293 -253 -40 -270 -233 -37
Net interest income 2 – 2 7 – 7
-839 -706 -133 -671 -553 -118
Net periodic pension cost within the consolidated statement of income
2013 2012
In millions of euros
Cost of sales -313 -264
Selling expenses -121 -68
General administrative expenses -43 -34
Research and non-capitalized development costs -71 -42
Interest income 27
Interest expense -293 -270
-839 -671
F.59