Porsche 2009 Annual Report Download - page 210

210 Financials
Total capital of the Volkswagen group, defined for capital management purposes as the
sum of equity and financial liabilities, was as follows as of the prior-year reporting date:
[26] Provisions for pensions and similar obligations
The Porsche SE group provides both defined contribution and defined benefit plans.
In the case of defined contribution plans, the company makes contributions to state or pri-
vate 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 expenses of the period concerned and were immaterial.
The Porsche SE group’s pension plans are defined benefit plans, with a distinction made
between unfunded benefit obligations and externally funded plans. The obligations for defined bene-
fit plans are measured using the projected unit credit method in accordance with IAS 19. The de-
fined benefit obligations are recognized at the present value of vested benefits as of the measure-
ment date taking probable future increases in pensions and salaries into account. The defined bene-
fit 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.
The benefit obligations of continuing operations are unfunded.
Benefit obligations of continuing operations
Provisions for pensions and similar obligations are recognized for benefits in the form of re-
tirement, invalidity and dependents’ benefits payable under pension plans. The benefits generally
depend on the length of service, remuneration and working hour arrangements of the employees.
The direct and indirect obligations include both current pension obligations and future pension and
retirement benefit obligations. In addition, personal retirement capital is accumulated in Germany by
way of employee contributions to Porsche VarioRente.
€ 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