The status of the retirement indemnity plans is as follows:
| December 31, | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| (In millions of US$) | ||||||||||||
|
Amount recognized in the statement of financial position |
||||||||||||
|
Present value of the obligation(a) |
152.4 | 138.9 | 139.1 | |||||||||
|
Fair value of plan assets |
(89.7 | ) | (79.4 | ) | (81.2 | ) | ||||||
|
|
|
|
|
|
|
|||||||
|
Deficit (surplus) of funded plans |
62.7 | 59.5 | 57.9 | |||||||||
|
Net liability (asset) recognized in the statement of financial position |
62.7 | 59.5 | 57.9 | |||||||||
|
Amounts recognized in the income statement |
||||||||||||
|
Service cost |
3.1 | 4.4 | 5.7 | |||||||||
|
Interest cost (income) |
1.1 | 1.3 | 1.2 | |||||||||
|
Effects of curtailments/settlements |
— | (5.7 | ) | (6.9 | ) | |||||||
|
Payroll tax |
— | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
|
Net periodic expense (profit) |
4.2 | — | — | |||||||||
|
Movements in the net liability recognized in the statement of financial position |
||||||||||||
|
Net liability at January 1 |
59.5 | 57.9 | 73.9 | |||||||||
|
Expense as above |
4.2 | — | — | |||||||||
|
Actuarial (gains)/losses recognized in other comprehensive income(b) |
(6.0 | ) | 9.2 | 3.8 | ||||||||
|
Contributions paid |
(0.3 | ) | (1.4 | ) | (10.0 | ) | ||||||
|
Benefits paid by the Company |
(1.8 | ) | (1.5 | ) | (3.0 | ) | ||||||
|
Consolidation scope entries and changes in exchange rates |
7.1 | (4.7 | ) | (6.8 | ) | |||||||
|
Other |
— | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
|
Net liability at December 31 |
62.7 | 59.5 | 57.9 | |||||||||
|
Change in benefit obligation |
||||||||||||
|
Benefit obligation at January 1 |
138.9 | 139.1 | 155.2 | |||||||||
|
Payroll tax adjustment |
— | — | — | |||||||||
|
Current service cost |
3.1 | 4.4 | 5.7 | |||||||||
|
Contributions paid |
— | 0.3 | 0.4 | |||||||||
|
Interest cost |
3.3 | 4.0 | 4.2 | |||||||||
|
Past service cost |
— | — | — | |||||||||
|
Benefits paid from plan |
(5.7 | ) | (2.8 | ) | (12.9 | ) | ||||||
|
Actuarial (gains)/losses recognized in other comprehensive income |
(2.2 | ) | 19.2 | 4.3 | ||||||||
|
Effects of curtailments/settlements |
— | (5.7 | ) | (6.9 | ) | |||||||
|
Consolidation scope entries and changes in exchange rates |
15.0 | (19.6 | ) | (10.9 | ) | |||||||
|
Other |
— | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
|
Benefit obligation at December 31 |
152.4 | 138.9 | 139.1 | |||||||||
|
Change in plan assets |
||||||||||||
|
Fair value of plan assets at January 1 |
79.4 | 81.2 | 81.3 | |||||||||
|
Interest income |
2.2 | 2.7 | 3.0 | |||||||||
|
Contributions paid |
0.3 | 1.7 | 10.4 | |||||||||
|
Benefits paid from plan |
(3.9 | ) | (1.3 | ) | (9.9 | ) | ||||||
|
Actuarial gains/(losses) recognized in other comprehensive income |
3.8 | 10.0 | 0.5 | |||||||||
|
Effects of curtailments/settlements |
— | — | — | |||||||||
|
Consolidation scope entries and changes in exchange rate |
7.9 | (14.9 | ) | (4.1 | ) | |||||||
|
Other |
— | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
|
Fair value of plan assets at December 31(c) |
89.7 | 79.4 | 81.2 | |||||||||
|
Key assumptions used in estimating the Group’s retirement obligations are: |
||||||||||||
|
Discount rate(d) |
1.50 | % | 1.50 | % | 2.00 | % | ||||||
|
Average rate of increase in future compensation(e) |
2.42 | % | 2.41 | % | 2.84 | % | ||||||
|
|
|
|
|
|
|
|||||||
| (a) |
In 2017 the obligation amounts to US$152.4 million of which US$33.2 million for defined benefit plans not covered (US$29.3 million in 2016 and US$29.1 million in 2015).The average duration of the defined benefit plan obligation at the end of the reporting period is 17.6 in 2017, 19.0 years in 2016 and 20.3 years in 2015. |
| (b) |
Other comprehensive income |