Porsche 2010 Annual Report Download - page 191

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The Porsche SE group’s total capital, defined for capital management purposes as the sum of
equity and financial liabilities, is as follows as of the reporting date:
€ million 31/12/2010 31/7/2010
Equity 17,214 15,197
Share of total capital 61% 58%
Non-current financial liabilities 3,880 5,864
Current financial liabilities 6,964 4,961
Total financial liabilities 10,844 10,825
Share of total capital 39% 42%
Total capital 28,058 26,022
[19] 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 unfunded defined benefit 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 probable 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.
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 hours 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.