BOC Report and accounts 2005 - Alle jaarverslagen

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108 The BOC Group plc Annual report and accounts 2005 Notes to the financial statements 8. Pensions and other retirement benefits continued Americas Americas Europe pensions health care Africa Asia/Pacific Total Movement in (deficit)/surplus during the year £ million £ million £ million £ million £ million £ million Year to 30 September 2005 (Deficit)/surplus in scheme at 1 October (444.3) 103.1 (46.4) – 5.6 (382.0) Movement in the year: Current service cost (48.7) (10.1) (1.5) (2.2) (8.2) (70.7) Past service cost – – – – – – Curtailments/settlements – – – – – – Contributions 71.3 1.6 2.4 2.1 7.7 85.1 Other finance income 4.5 13.4 (2.5) 2.2 0.8 18.4 Actuarial (loss)/gain (37.9) 17.8 4.5 (1.7) 2.0 (15.3) Exchange adjustment (0.1) 3.2 (1.0) (0.4) 0.6 2.3 (Deficit)/surplus in scheme at 30 September (455.2) 129.0 (44.5) – 8.5 (362.2) Year to 30 September 2004 (Deficit)/surplus in scheme at 1 October (444.6) 79.2 (50.5) – 3.8 (412.1) Movement in the year: Current service cost (47.4) (10.1) (1.5) (2.4) (7.7) (69.1) Past service cost (0.5) – – – – (0.5) Curtailments/settlements – 1.6 2.8 – – 4.4 Contributions 71.6 – 2.9 2.3 8.7 85.5 Other finance income 2.7 12.7 (2.6) 2.3 1.0 16.1 Actuarial (loss)/gain (26.1) 26.8 (1.8) (2.2) – (3.3) Exchange adjustment – (7.1) 4.3 – (0.2) (3.0) (Deficit)/surplus in scheme at 30 September (444.3) 103.1 (46.4) – 5.6 (382.0) b) UK GAAP parent company The company accounts for pension costs in accordance with FRS17 on retirement benefits. In accordance with the standard, the company treats contributions to defined benefit schemes as if they were contributions to a defined contribution plan.This is because the underlying assets and liabilities of the defined benefit schemes cover a number of the Group’s UK undertakings and cannot readily be split between each undertaking on a consistent and reliable basis. The pension cost recognised in the company’s accounts is the total of company contributions payable to Group UK pension schemes in the year. The assets of all Group UK pension schemes are held independently of the Group’s finances.The largest schemes are self-administered. c) US GAAP For the purposes of US GAAP, the pension costs of the largest schemes have been reclassified in the following tables in accordance with the requirement of SFAS132.The changes in projected benefit obligation, plan assets and details of the funded status of these retirement plans, together with the changes in the accumulated other post-retirement benefit obligations of the Group’s US business, are given below.The measurement date for UK and US pension plans is 30 June and the measurement date for the Australian and South African plans is 30 September.The difference between the UK and US GAAP information disclosed in note 8a) and c) is included in note 30. Investment strategy for the schemes is generally set by their respective trustee or fiduciary, after taking advice from their investment advisers, and in consultation with the company.The strategy reflects the funding position of the schemes, and a careful assessment of the risks inherent over the long term in various asset classes.The assets of the schemes are diversified by asset class, by investment manager and by geography, in order to reduce risk. Strategy is reviewed periodically. At 30 June 2005 the measurement date for SFAS132 reporting, the target asset allocation and actual asset allocation of the main UK scheme was: 2005 2004 Target Actual Actual Equity securities 68% 69% 72% Debt securities 18% 17% 19% Real estate 14% 13% 8% Cash 0% 1% 1% In the US, the fiduciary invests in short-term bonds to broadly cash match the liabilities that are expected to fall due within three years.The balance of the plan’s assets is currently invested in equities. Following this policy, the actual asset allocations of the plan at 30 June 2005 were as follows: 2005 2004 Equity securities 84.9% 77.5% Debt securities 15.1% 22.5% The company establishes the long-term expected rate of return on the schemes’ assets by developing a long-term rate of return assumption for each asset class, taking into account such factors as the market yield on bond investments of appropriate duration, and the expected risk premium for other asset classes, based on long-term historical trends.A single, long-term return assumption is then calculated as a weighted average return, based on the expected returns for each asset class.
Notes to the financial statements 109 8. Pensions and other retirement benefits continued Pension benefits Other benefits 1 2005 2004 2005 2004 £ million £ million £ million £ million Change in benefit obligation Projected benefit obligation at 1 October 2004 2,167.6 2,089.3 46.3 50.5 Exchange adjustment 24.8 (28.4) 0.9 (4.2) Service cost 65.2 67.4 1.5 1.7 Interest cost 130.4 114.0 2.5 2.6 Plan participants’ contributions 13.9 13.5 – – Actuarial (gains)/losses 250.0 6.6 (4.4) 1.7 Benefits paid (85.4) (93.6) (2.4) (2.9) Other (income) less expenses 1.1 (0.2) – – Curtailments, settlements, termination benefits (44.8) (1.0) – (3.1) Disposal of subsidiary (10.3) – – – Projected benefit obligation at 30 September 2005 2,512.5 2,167.6 44.4 46.3 Change in fair value of assets Fair value of assets at 1 October 2004 1,877.1 1,640.5 – – Exchange adjustment 28.8 (34.8) – – Actual return on plan assets 288.2 279.5 – – Employer contributions 82.2 72.2 – – Plan participants’ contributions 13.9 13.5 – – Other income less (expenses) 1.1 (0.2) – – Benefits paid (85.4) (93.6) – – Curtailments, settlements, termination benefits (44.8) – – – Disposal of subsidiary (17.2) – – – Fair value of assets at 30 September 2005 2,143.9 1,877.1 – – Funded status and unrecognised (gains)/losses Funded status (368.6) (290.5) (44.4) (46.3) Unrecognised net transition asset 14.9 (10.8) – – Unrecognised prior service cost/(credit) 10.9 13.2 (1.4) (1.7) Unrecognised net loss 629.2 535.8 3.1 7.7 Adjustment for post measurement date contributions 17.2 17.2 – – Prepaid/(accrued) pension cost 303.6 264.9 (42.7) (40.3) Amounts recognised in the statement of financial position consist of: Prepaid benefit cost 184.5 165.2 Accrued benefit liability (318.4) (263.4) Intangible asset 3.8 5.4 Accumulated other comprehensive income 433.7 357.7 Prepaid pension cost 303.6 264.9 1. Other benefits relate to post retirement medical benefits. The weighted-average asset allocations, by asset category, for the pension plans are as follows: Europe Americas Africa Asia/Pacific At 30 September 2005 Equity securities 68.9% 80.2% 78.7% 71.9% Debt securities 16.7% 19.7% 11.0% 4.1% Real estate 13.2% – 1.9% 7.1% Other 1.2% 0.1% 8.4% 16.9% At 30 September 2004 Equity securities 70.3% 79.3% 79.4% 68.9% Debt securities 21.1% 20.6% 14.8% 9.2% Real estate 8.6% – 1.0% 7.2% Other – 0.1% 4.8% 14.7% The accumulated benefit obligation for all pension plans totalled £2,282.0 million (2004: £1,962.2 million). The fair value of plan assets exceeds the accumulated benefit obligation for all plans except the UK plans, where the accumulated benefit obligation, projected benefit obligation and fair value of plan assets were £1,718.0 million, £1,893.7 million and £1,382.4 million respectively (2004: £1,460.6 million, £1,602.8 million and £1,180.0 million).
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BOC Report and accounts 2005
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01 The BOC Group plc is a public li
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Financial highlights 03 Dividends p
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Chairman’s statement 05 Conduct a
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Chief executive’s review 07 Indus
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Board of directors 09 08 09 10 11 1
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Executive management board 11 09 10
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Group five year record 13 Capital e
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Group profile 15 Analysis of result
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Group profile 17 Principal industri
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Group profile 19 In China, signific
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Group profile 21 Sales opportunitie
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Employees 23 At 30 September 2005 t
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Employees 25 Retirement benefit pla
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Social, environmental and ethical p
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Research, development and informati
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Risk factors 39 BOC relies on devel
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Operating review 41 Exceptional ite
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Operating review (comparing 2005 wi
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Financial review 55 Net debt/equity
Page 59 and 60: Financial review 57 The balance she
Page 61 and 62: Financial review 59 Manganese litig
Page 63 and 64: Financial review 61 Current asset p
Page 65 and 66: Financial review 63 Average exchang
Page 67 and 68: Corporate governance 65 During the
Page 69 and 70: Corporate governance 67 Performance
Page 71 and 72: Corporate governance 69 During the
Page 73 and 74: Corporate governance 71 There is a
Page 75 and 76: Report on remuneration 73 Variable
Page 77 and 78: Report on remuneration 75 Current m
Page 79 and 80: Report on remuneration 77 Individua
Page 81 and 82: Report on remuneration 79 Executive
Page 83 and 84: Report on remuneration 81 Opening m
Page 85 and 86: Report on remuneration 83 Mr Médor
Page 87 and 88: Report by the independent auditors
Page 89 and 90: Group balance sheet At 30 September
Page 91 and 92: Total recognised gains and losses Y
Page 93 and 94: Accounting policies 91 General •
Page 95 and 96: Notes to the financial statements 9
Page 109: Notes to the financial statements 1
Page 141 and 142: Group undertakings 139 Principal Gr
Page 143 and 144: Shareholder information 141 The tab
Page 145 and 146: Shareholder information 143 Taxatio
Page 147 and 148: Shareholder information 145 Payment
Page 149 and 150: Glossary of terms 147 Terms used in
Page 151 and 152: ©The BOC Group plc 2005. Designed
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BOC Report and accounts 2005 - Alle jaarverslagen

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