Gschäftsbericht 2018

Galenica financial statements 2018 | 113 Finance Notes to the consolidated financial statements of the Galenica Group Net defined benefit cost in thousand CHF 2018 2017 Current service cost 22,789 25,663 Past service cost 41,181 — Net interest on net defined benefit liability 122 255 Administration cost 934 881 Net defined benefit cost 65,026 26,799 Remeasurement of net defined benefit liability in thousand CHF 2018 2017 Actuarial gain/(loss) due to: – Changes in demographic assumptions (7,187) 7,623 – Changes in financial assumptions 11,754 22,250 – Experience adjustments (19,610) 3,896 Remeasurement of plan assets (46,530) 67,420 Effect of change in asset ceiling 60,515 (60,081) Remeasurement of net defined benefit liability recognised in other comprehensive income (1,059) 41,107 Change in estimate (demographic assumptions) During 2018, Galenica conducted a review of actuarial valuation parameters, including employee turnover rates and lump sum payment upon retirement. Considering actual historical patterns in the retail business with turnover rates at approximate 125% of BVG 2015 tables, Galenica used these increased rates for its 2018 valuation. This increase from 100% BVG 2015 in prior year to 125% reduced the defined benefit obligation of the Galenicare Pension Fund by CHF 5.7 million, which was recognised in other comprehensive income. Furthermore, the assumption on lump sum payments upon retirement was reduced for all pension plans from 50% in prior year to 30%, due to revised expectations considering the economic environment and historical patterns. This resulted in an increase of the defined benefit obligation of CHF 26.5 million, which was recognised in other comprehensive income. Changes in mortality and early retirement assumptions led to another decrease of the defined benefit obligation of the Galenica Pension Fund by CHF 12.9 million. Change in asset ceiling in thousand CHF 2018 2017 1 January (60,081) — Interest expense (income) (434) — Change in asset ceiling recognised in other comprehensive income 60,515 (60,081) 31 December — (60,081)