 Download ( xls, 16 kB) |
Assumptions used to determine the defined benefit obligation |
|
||||
|---|---|---|---|---|---|
|
Germany |
|
Foreign |
||
|
Sept. 30, 2009 |
Dec. 31, 2008 |
|
Sept. 30, 2009 |
Dec. 31, 2008 |
Discount rate |
5.75 |
6.00 |
|
5.12 |
5.84 |
Projected increase of wages and salaries |
2.75 |
2.75 |
|
3.67 |
4.37 |
Projected pension increase |
2.00 |
2.00 |
|
0.80 |
0.57 |
| Download ( xls, 16 kB) |
Assumptions used to determine expenses for pension benefits |
|
||||
|---|---|---|---|---|---|
|
Germany |
|
Foreign |
||
|
Sept. 30, 2009 |
Dec. 31, 2008 |
|
Sept. 30, 2009 |
Dec. 31, 2008 |
Discount rate |
6.00 |
5.25 |
|
5.56 |
5.82 |
Projected increase of wages and salaries |
2.75 |
2.75 |
|
3.73 |
4.50 |
Projected pension increase |
2.00 |
2.00 |
|
0.82 |
0.68 |
Expected return on plan assets |
5.42 |
5.18 |
|
6.59 |
7.20 |
The assumptions regarding the overall expected long-term rate of return are based on the desired portfolio structure and forecasts of expected individual asset class returns. The forecasts are based on long-term historical average returns and take into consideration the current yield level and the inflation trend.
The first-time recognition of the pension obligations taken over from Ciba, the majority of which are denominated in Swiss francs, and decreasing interest rates, in the dollar currency zone in particular, led to a reduction of the average weighted discount rate as of September 30, 2009.
