|
Defined benefit plan for pensions
Some Group companies in Austria, USA, Finland, Germany and Sweden provide defined benefit pension plans for some classes of employees. Provisions for pension obligations are established for benefits payable in the form of retirement, disability and surviving dependant pensions. The benefits offered vary according to the legal, fiscal and economic conditions of each country. Benefits are dependent on years of service and in some cases on the respective employee’s compensation.
The following table reconciles the funded status of defined benefit plans to the amounts recognised in the balance sheet:
| (in
TEUR) |
2003 |
2002 |
|
|
|
|
|
| Present value of funded
defined benefit obligations |
22,087 |
16,562 |
|
| Fair value of plan assets |
(8,266) |
(398) |
|
|
13,821 |
16,164 |
|
|
|
|
|
| Present value of unfunded
defined benefit obligations |
16,516 |
4,125 |
|
| Unrecognised actuarial
gains/losses |
(1,744) |
(1,668) |
|
| Net liability in balance
sheet |
28,593 |
18,621 |
|
|
|
|
|
employeebo.htm
employeebo.xls (Download size=16384 Bytes):
Pension expense is comprised of the following:
| (in
TEUR) |
2003 |
2002 |
|
|
|
|
|
| Current service costs |
965 |
1,251 |
|
| Interest expense on
obligations |
886 |
902 |
|
| Expected return on plan
assets |
(7) |
(7) |
|
| Net actuarial
gains/losses recognised |
(143) |
126 |
|
| Past service costs |
7,720 |
26 |
|
| Effect of any curtailment or
settlement |
(10) |
858 |
|
|
9,411 |
3,156 |
|
| Payments to defined
contribution plans |
12,755 |
12,843 |
|
| |
22,166 |
15,999 |
|
|
|
|
|
employeebo1.htm
employeebo1.xls (Download size=15360 Bytes):
Past service costs result from recognition of the risk relating to general social insurance (mainly disability insurance) in Finland as a defined benefit obligation in 2003.
Principal actuarial assumptions used to determine pension obligations as of 31 December were as follows:
| (in
per cent) |
2003 |
2002 |
|
|
|
|
|
| Discount rate |
5.75% |
5.75% |
|
| Wage and salary
increases |
3.00% |
3.00% |
|
| Retirement benefit
increases |
2.50% |
2.50% |
|
|
|
|
|
employeebo2.htm
employeebo2.xls (Download size=14848 Bytes):
Severance payments
| (in
TEUR) |
2003 |
2002 |
|
|
|
|
|
| Present value of
unfunded defined benefit obligations |
25,221 |
26,845 |
|
| Net liability in balance
sheet |
25,221 |
26,845 |
|
|
|
|
|
employeebo3.htm
employeebo3.xls (Download size=17920 Bytes):
Severance expense is comprised of the following:
| (in
TEUR) |
2003 |
2002 |
|
|
|
|
|
| Current service costs |
1,473 |
1,105 |
|
| Interest expense on
obligations |
1,466 |
1,433 |
|
| Net actuarial
gains/losses recognised |
(2,354) |
2,784 |
|
|
585 |
5,322 |
|
| Payments to defined
contribution plans |
21 |
0 |
|
| |
606 |
5,322 |
|
|
|
|
|
employeebo4.htm
employeebo4.xls (Download size=15872 Bytes):
Principal actuarial assumptions used to determine severance obligations as of 31 December were the same as used for pension obligations.
Management share option plan
A selected group of executives employed by the Group as at 1 June 2001 were eligible to participate in a Management Share Option Plan in connection with the Initial Public Offering. Each eligible executive who has subscribed shares having an aggregate subscription value calculated at the Offer Price (21 EUR per share) of at least 20,000 EUR (each such subscription a "Private Investment”) is eligible for a special remuneration in the form of option rights. These option rights can be exercised provided that the average price of the shares during two separate assessment periods exceeds a certain percentage of the Offer Price. The first assessment period will run for a period of three months preceding the second anniversary of the initial listing of the shares on the Vienna Stock Exchange, whereas the second assessment period will run for a period of three months preceding the third anniversary of the initial listing of the shares on the Vienna Stock Exchange. If the average market value of the shares exceeds the Offer Price by 15% in the first assessment period (Option 1) or by 20% in the second assessment period (Option 2), the eligible executive will be entitled to purchase up to a maximum of 1,500, 2,500 and 5,000 shares with respect to Option 1 or Option 2 at the Offer Price depending on the seniority of the relevant executive, provided that the relevant executive can prove uninterrupted ownership of his Private Investment until the end of the assessment period. The options can be exercised only once and are not transferable. Option 2 can only be exercised if during the first assessment period the average market value of the shares does not exceed the Offer Price by 15%, making the exercise of Option 1 impossible. The options can only be exercised at given times. Each participant may subscribe up to 50% of the number of shares stated in the Average Price Notice immediately after exercise of the option and payment of the pro-rata subscription price, the relevant participant can subscribe up to the remaining 25% of the shares set out in the notice on the exercise of the option. At the end of a six-month term from the exercise of the option and payment of the remaining subscription price, the relevant participant can subscribe up to the remaining 25% of the shares set out in the notice on the exercise of the option.
Due to legal requirements, executives in the United States will not be allowed to make a Private Investment but will be granted option rights. 33 executives are participating in the Management Share Option Plan, together they are eligible to exercise options for the purchase of 105,500 shares. Andritz intends to provide these shares by using the repurchased own shares. The difference between the repurchase price of the own shares and the option price of a total amount of EUR 176 thousand has been reported as expense in the current year.
|
Help 
