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Other employee benefits
12 Months Ended
Dec. 31, 2018
Statements [Line Items]  
Other employee benefits [text block]
21.
Other employee benefits
   
The Group sponsors both other long-term employee benefit plans and non-pension post-employment benefits plans and uses a December 31 measurement date. These obligations relate mainly to commitments for post- retirement health benefits. Information about the Group's post-employment and other long-term employee benefits is as follows:
   
Movements in the present value of the defined benefit obligation in the current and previous years were:

      Year ended  
      Dec. 31, 2018     Dec. 31, 2017  
  Opening defined benefit obligation $  107,829   $  89,005  
     Current service cost1   3,455     2,614  
     Past service cost   255      
     Interest cost   3,683     3,567  
     Effects of movements in exchange rates   (8,587 )   7,026  
     Remeasurement actuarial (gains)/losses:            
           Arising from changes in demographic assumptions   (9,996 )   1,172  
           Arising from changes in financial assumptions   2,809     6,761  
           Arising from experience adjustments   (3,472 )   (120 )
     Benefits paid   (2,448 )   (2,196 )
  Closing defined benefit obligation $  93,528   $  107,829  

Includes remeasurement of other long term employee benefits

The defined benefit obligation closing balance, by group member, is as follows:

      Dec. 31, 2018     Dec. 31, 2017     Jan. 1, 2017  
  Active members $  47,249   $  64,460   $  52,611  
  Inactive members   46,279     43,369     36,394  
  Closing defined benefit obligation $  93,528   $  107,829   $  89,005  

Movements in the fair value of defined benefit amounts in the current and previous years were as follows:

      Dec. 31, 2018     Dec. 31, 2017     Jan. 1, 2017  
  Employer contributions $  2,448   $  2,196   $  1,949  
  Benefits paid   (2,448 )   (2,196 )   (1,949 )
  Closing fair value of assets $  —   $  —   $  —  

The non-pension employee benefit plan obligations are unfunded.

Reconciliation of assets and liabilities recognized in the consolidated balance sheets:
 
      Dec. 31, 2018     Dec. 31, 2017     Jan 1, 2017  
  Unfunded benefit obligation $  93,528   $  107,829   $  89,005  
  Vacation accrual and other - non-current   2,664     3,324     2,624  
  Net liability $  96,192   $  111,153   $  91,629  

Reflected in the consolidated balance sheets as follows:

      Dec. 31, 2018     Dec. 31, 2017     Jan 1, 2017  
  Other employee benefits liability - current (note 14) $  2,564   $  2,756   $  2,356  
  Other employee benefits liability - non-current   93,628     108,397     89,273  
  Net liability $  96,192   $  111,153   $  91,629  

Other employee future benefit expense includes the following

      Dec. 31, 2018     Dec. 31, 2017  
  Current service cost 1 $  3,710   $  2,614  
  Net interest cost   3,683     3,567  
  Components recognized in consolidated income statements $  7,393   $  6,181  

1 Includes remeasurement of other long term employee benefit

      Dec. 31, 2018     Dec. 31, 2017  
     Remeasurement on the net defined benefit liability:            
       Actuarial (gains)/losses arising from changes in demographic assumptions $  (9,996 ) $ 1,172  
       Actuarial (gains)/losses arising from changes in financial assumptions   2,809     6,761  
       Actuarial gains arising from changes experience adjustments   (3,472 )   (120 )
  Components recognized in statements of comprehensive income $  (10,659 ) $  7,813  
               
  Total other employee future benefit cost $  (3,266 )$   13,994  
 
Other employee benefit amounts recognized include those directly related to production of inventory; such amounts are recognized initially as costs of inventory and are expensed in the consolidated income statements within cost of sales upon sale of the inventory.
 
      Dec. 31, 2018     Dec. 31, 2017  
  Defined benefit cost:            
     Discount rate   3.64%     4.03%  
     Initial weighted average health care trend rate   5.97%     6.13%  
     Ultimate weighted average health care trend rate   4.00%     4.00%  
     Average longevity at retirement age for current pensioners (years):        
           Males   21.0     21.6  
           Females   23.7     24.1  

      Dec. 31, 2018     Dec. 31, 2017  
  Defined benefit obligation:            
     Discount rate   3.88%     3.64%  
     Initial weighted average health care trend rate   5.74%     5.97%  
     Ultimate weighted average health care trend rate   4.00%     4.00%  
     Average longevity at retirement age for current pensioners (years):        
           Males   21.1     21.0  
           Females   23.9     23.7  
     Average longevity at retirement age for current employees (future pensioners) (years):        
           Males   23.0     22.9  
           Females   25.6     25.5  

CPM2014 Priv with CPM-B projection scale

The Group reviews the assumptions used to measure other employee benefit costs (including the discount rate) on an annual basis.

The other employee benefit costs typically expose the Group to actuarial risks such as: interest rate risk, health care cost inflation risk and longevity risk.

Interest risk A decrease in the bond interest rate will increase the plan liabilities.
Health care cost inflation risk The majority of the plan's benefit obligations are linked to health care cost inflation and higher inflation will lead to higher liabilities.
Longevity risk The majority of the plans' benefit liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plans liabilities. This is particularly significant for benefits subject to health care cost inflation where increases in inflation result in higher sensitivity to changes in life expectancy.
 
The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding other assumptions constant:
 
If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease by $7,754 (increase by $8,886).
If the health care cost assumption increases (decreases) by 1%, the defined benefit obligation would increase by $18,013 (decrease by $14,029).
If the life expectancy increases (decreases) by one year for both men and women, the defined benefit obligations would increase by $3,417, (decrease by $3,392).

The average duration of the non-pension post employment obligation at December 31, 2018 is 18.6 years (2017: 18.9 years).

This number can be broken down as follows:

  Active members: 23.7 years (2017: 22.8 years)
  Inactive members: 13.4 years (2017: 13.1 years)