Porsche 2008 Annual Report Download - page 203

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Total capital of the Volkswagen subgroup, defined for capital management purposes as the sum of
equity and financial liabilities, is as follows on the balance sheet date:
[26] Provisions for pensions or similar obligations
Provisions for pensions and similar obligations are recognized for benefits in the form of retirement,
invalidity and dependents’ benefits payable under pension plans. The benefits vary according to the
legal, tax and economic circumstances of the country concerned, and usually depend on the
length of service and remuneration of the employees. The direct and indirect obligations include
both current pension obligations and future pension and retirement benefit obligations.
Group companies provide both defined contribution and defined benefit plans. In the case of
defined contribution plans, the company makes contributions to state or private pension schemes
based on legal or contractual requirements, or on a voluntary basis. Once the contributions have
been paid, there are no further obligations for the company. Contributions are recognized as ex-
penses of the period concerned. In the fiscal year 2008/09, they amounted to a total of €551
million (prior year: €62 million) in the Porsche group. Thereof, contributions to the compulsory
state pension system in Germany amounted to €464 million (prior year: €62 million).
Most pension plans are defined benefit plans, with a distinction made between unfunded benefit
obligations and externally funded plans. The obligations for defined benefit plans are measured
using the projected unit credit method in accordance with IAS 19. The defined benefit obligations
are recognized at the present value of vested benefits as of the measurement date taking prob-
able future increases in pensions and salaries into account. The defined benefit obligation for
active employees increases annually by the interest cost plus the present value of the new benefit
entitlements earned in the current period. Actuarial gains or losses result from changes in the
composition of the plan and deviations of actual parameters (for example, increases in income
and pensions or changes in interest rates) from the assumptions made in the valuation.
€ million 30/6/2009
Equity 36,415
Share of total capital 32%
Non-current financial liabilities 39,696
Current financial liabilities 37,427
Total financial liabilities 77,123
Share of total capital 68%
Total capital 113,538