Changes in the present value of the defined benefit plan obligation and the fair value of plan assets are shown below:
| FISCAL 2023 | FISCAL 2022 | |||||
|---|---|---|---|---|---|---|
| (in million euros) | BENEFIT OBLIGATION | PLAN ASSETS | NET BENEFIT OBLIGATION | BENEFIT OBLIGATION | PLAN ASSETS | NET BENEFIT OBLIGATION |
| As of September 1 | 1,057 | (1,076) | (19) | 1,422 | (1,275) | 147 |
| Expense/(income) recognized in the income statement | 53 | (40) | 13 | 32 | (19) | 13 |
| Current service cost | 14 | — | 14 | 17 | — | 17 |
| Past service cost | 1 | — | 1 | (6) | — | (6) |
| Effect of settlements | — | — | — | — | — | — |
| Interest cost/(income) | 38 | (40) | (2) | 21 | (19) | 2 |
| Remeasurement losses/(gains) | (115) | 219 | 104 | (391) | 303 | (88) |
| Actuarial losses/(gains) arising from changes in demographic assumptions | (8) | — | (8) | 11 | — | 11 |
| Actuarial losses/(gains) arising from changes in financial assumptions | (137) | 219 | 82 | (404) | 303 | (101) |
| Experience adjustments | 30 | — | 30 | 2 | — | 2 |
| Currency translation adjustment | (5) | 2 | (3) | 13 | (8) | 5 |
| Contributions made by plan members | 2 | (2) | — | 2 | (2) | — |
| Employer contributions(1) | — | (9) | (9) | — | (82) | (82) |
| Benefits paid from plan assets | (40) | 42 | 2 | (37) | 40 | 3 |
| Benefits paid other than from plan assets | (13) | — | (13) | (13) | — | (13) |
| Changes in scope of consolidation and other | (37) | 33 | (4) | 29 | (33) |
(4) |
| AS OF AUGUST 31 | 902 | (831) | 71 | 1,057 | (1,076) | (19) |
| Of which: | ||||||
| Partially funded plans | 792 | (831) | (39) | 932 | (1,076) | (144) |
| Unfunded plans | 110 | — | 110 | 125 | — | 125 |
(1) Contributions made by the employer to different plan assets of which 4 million euros of contributions to the United Kingdom pension plan assets.
The amounts recorded in the income statement for defined benefit plans totaled 13 million euros in Fiscal 2023 (13 million euros in Fiscal 2022) and consist of:
- net expense of 11 million euros (net expense of 8 million euros in Fiscal 2022) in Cost of sales;
- net expense of 4 million euros (net expense of 5 million euros in Fiscal 2022) in Selling, General and Administrative costs;
- net income of 2 million euros in financial income (see note 12.1).
Defined benefit plan assets, which mainly relate to UK defined benefits plans, comprise:
1- This diagram shows the defined benefit plan assets, which mainly relate to UK defined benefits plans, as of August 31, 2023.
Bonds and Other debt instruments:
- €268m
- 32%
Real Estate:
- €151m
- 18%
Cash:
- €18m
- 2%
Investment funds:
- €172m
- 21%
Insurance and other:
- €132m
- 16%
Equities:
- €90m
- 11%
2- This diagram shows the defined benefit plan assets, which mainly relate to UK defined benefits plans, as of August 31, 2022.
Bonds and Other debt instruments:
- €302m
- 28%
Real Estate:
- €130m
- 12%
Cash:
- €29m
- 3%
Investment funds:
- €253m
- 24%
Insurance and other:
- €191m
- 18%
Equities:
- €171m
- 16%