Annual Report

Notes – Marine Subsea Consolidated
The following tables summarise the components of the defined benefit plan:
Amounts in USD 1 000 2009 2008
Defined benefit obligation at the end of the year 300 146
Fair value of plan assets -178 -79
Unrecognised net acturial loss -76 -74
Retirement benefit obligation 46 -8
The movement in the defined benefit obligation over the year is as follows:
Beginning of the year -9 2
Current service cost 184 66
Interest cost 8 1
Fair value loss/(gain) 0 0
Contribution by plan participants -136 -75
Retirement benefit obligation 46 -8
The amounts recognised in the income statement are as follows:
Current service cost 184 66
Interest cost 8 1
Total defined benefit plan, expense 192 66
The principal actuarial assumptions use were as follows:
Discount rate 4.50% 3.80%
Expected return on plan assets 5.70% 5.80%
Future salary increases 4.50% 4.00%
Future pension increases 1.40% 1.50%
Increase of social security base amount (G) 4.25% 3.75%
The Group alos has a defined contribution pension shemes in the subsidiaries Marine Subsea UK Ltd and Lewis Ltd.
The pension cost charge represents contributions payable by the companies to the fund and amounted to USD 115 (2008: USD 88)
Pension cost charged related to defined contibution pension shemes for expathriates are USD 29 (2008: USD 19)
Note 22 – Comittments
Capital commitments contracted for at the balance sheet date, but not recognised in the financial statements are as follows:
Vessels under contstruction
Amounts in USD 1 000 Yard Country Delivery Contract cost Remaining expenditure
“Karianne” – # 287 SX 121 Ulstein Norway Oct 2010 206 000 85 700
Fixed contract cost and remaining expenditure include yard contract, variation orders and other equipment related to the vessel. Working capital for
operational start-up is not included.
Remaining expenditure for Karianne is based on a forward contract entered into in December 2009 with a NOK / USD exchange rate of 5,793.
Annual Report 2009 Marine Subsea 49