Anglo American Annual Report 2012

FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS28. RETIREMENT BENEFITS continuedThe actuarial gain recognised in the Consolidated statement of comprehensive income of $165 million (2011: loss of $214 million) includes a charge for theincrease in the surplus restriction of $17 million (2011: charge for the increase of $26 million). The movement in the surplus restriction in the Consolidatedstatement of comprehensive income differs from that in the table above due to the exclusion of a surplus restriction on De Beers’ pension plans of $30 millionarising from the acquisition, and exchange differences. Cumulative net actuarial losses recognised in the Consolidated statement of comprehensive incomeare $427 million (2011: $592 million; 2010: $378 million; 2009: $509 million; 2008: $292 million).Income statementThe amounts recognised in the income statement are as follows:PensionplansPostemploymentmedicalplans2012 2011PensionplansPostemploymentmedicalplansUS$ millionTotalTotalAnalysis of the amount charged to operating profitCurrent service costs 18 4 22 18 3 21Effects of settlements 9 – 9 – – –Total within operating costs 27 4 31 18 3 21Analysis of the amount charged to net finance costsExpected return on plan assets (1) (199) (1) (200) (197) (2) (199)Interest costs on plan liabilities (2) 196 34 230 181 24 205Net charge to net finance costs (3) 33 30 (16) 22 6Total charge to the income statement 24 37 61 2 25 27(1)Included in ‘Investment income’, see note 9.(2)Included in ‘Interest expense’, see note 9.Pension plan assets and liabilities by geographyThe split of the present value of funded and unfunded obligations in defined benefit pension plans, the fair value of the pension assets and the long termexpected rate of return at 31 December are as follows:2012 2011Southern Africa The Americas Europe Total Southern Africa The Americas Europe TotalRate ofreturn%FairvalueUS$millionRate ofreturn%FairvalueUS$millionRate ofreturn%FairvalueUS$millionEquity 9.5 652 7.0 11 5.5 1,150 1,813 11.5 283 14.6 13 7.0 726 1,022Bonds 7.8 1,077 10.5 133 3.8 1,605 2,815 8.1 512 12.6 124 3.7 715 1,351Other 7.7 116 10.7 3 2.6 580 699 6.5 42 11.8 5 1.4 163 210Fair value of pensionplan assets (1) 1,845 147 3,335 5,327 837 142 1,604 2,583Present value offunded obligations (1) (1,589) (163) (3,895) (5,647) (718) (150) (1,751) (2,619)Present value ofunfunded obligations – (209) (6) (215) – (173) – (173)Present value of pensionplan liabilities (1,589) (372) (3,901) (5,862) (718) (323) (1,751) (2,792)Net surplus/(deficit)in pension plans 256 (225) (566) (535) 119 (181) (147) (209)Surplus restriction relatedto pension plans (80) – (37) (117) (49) – (24) (73)Recognised pensionplan assets/(liabilities) 176 (225) (603) (652) 70 (181) (171) (282)Amounts in thebalance sheetPension assets 176 – – 176 70 – – 70Pension liabilities – (225) (603) (828) – (181) (171) (352)176 (225) (603) (652) 70 (181) (171) (282)(1)The fair value of assets was used to determine the funding level of the plans. The fair value of the assets of the funded plans was sufficient to cover 94% (2011: 99%) of the benefits thathad accrued to members after allowing for expected increases in future earnings and pensions. Companies within the Group are paying contributions as required in accordance with localactuarial advice.FairvalueUS$millionRate ofreturn%FairvalueUS$millionRate ofreturn%FairvalueUS$millionRate ofreturn%FairvalueUS$millionFairvalueUS$million176 Anglo American plc Annual Report 2012