BANCO BILBAO VIZCAYA ARGENTARIA, S.A. AND ... - BBVA

June 30, 2010 and December 31, 2009, the plan assets related to the insurance contracts mentioned (shown
in the previous table under the heading “Insurance contract cover”) equaled the amount of the commitments
covered, therefore its net value was zero in the accompanying consolidated balance sheets.
The rest of the commitments included in the previous table include defined-benefit commitments for which
insurance has been contracted with BBVA Seguros, S.A. de Seguros y Reaseguros, which is 99.95% owned
by the Group. The assets in which the insurance company has invested the amount of the policies cannot be
considered plan assets under IAS 19 and are presented in the accompanying consolidated balance sheets
under different headings of “assets”, depending on the classification of their corresponding financial
instruments. The commitments are recognized under the heading "Provisions – Provision for pensions and
similar obligations" of the accompanying consolidated balance sheets (see Note 25).
• Early retirements in Spain
In the six months ended June 30, 2010, the Group in Spain offered certain employees the possibility of
taking early retirement before the age stipulated in the collective labor agreement in force. This offer was
accepted by 281 employees (223 in the six months ended June 30, 2009).
The early retirements commitments in Spain as of June 30, 2010 and December 31, 2009 recognized under
the heading “Provisions – Provisions for pensions and similar obligations” (see Note 25) in the
accompanying consolidated balance sheets amounted to €3,163 million and €3,309 million, respectively.
The cost of early retirements for the year was recognized under the heading “Provision Expense (Net) –
Transfers to funds for pensions and similar obligations – Early retirements” in the accompanying
consolidated income statements (see Note 48).
• Other long-term commitments with employees in Spain
The long-term commitments with employees include post-employment welfare benefits and other
commitments with employees.
- Post-employment welfare benefits in Spain
The breakdown of these commitments as of June 30, 2010 and December 31, 2009 is as follows:
Millions of Euros
Post-Employment Welfare Benefits Commitments in Spain
June December
2010 2009
employees 175 183
Vested post-employment welfare benefit contingencies in respect
of current employees 40 39
Total Commitments (*) 215 222
(*) Recognized under the heading "Provisions-Provisions for pension and similar obligation" in the accompanyng
consolidated balabce sheets
- Other commitments with employees - Long-service bonuses
In addition to the post-employment welfare benefits mentioned above, the Group maintained certain
commitments in Spain with some employees, called "Long-service bonuses". These commitments
are for the payment of a certain amount in cash and for the allotment of Banco Bilbao Vizcaya
Argentaria, S.A. shares when these employees complete a given number of years of effective
service. The Group has offered these employees the option to redeem the accrued value of such
share benefits prior to the established date of seniority. The value of the long-service bonuses as of
June 30, 2010 and December 31, 2009 for employees who did not choose early settlement is
recognized under the heading "Provisions – Other provisions" (see Note 25) of the accompanying
consolidated balance sheets with the figure of €11 million and €13 million, respectively.
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