(17) Pension Provisions

With the exception of the pension plans for Bechtle Holding Switzerland AG, Rotkreuz, Switzerland, and its subsidiaries, and at Bechtle Onsite Services GmbH, Neckarsulm, there are no defined benefit pension plans in place at the Bechtle Group.

Bechtle Holding Schweiz AG and Subsidiaries

Although the pension plans of Bechtle Holding Schweiz AG and its subsidiaries are contractually defined as defined contribution plans, they are to be shown in the balance sheet as defined benefit plans in accordance with IAS 19 because a financial contribution by the company cannot be excluded in the event of deficient cover.

Due to lacking information on the part of the Group of independent pension institutions (group insurers), in accordance with IAS 19.30 the pension plans were not stated as defined benefit plans up until 31 December 2005.

The “Bechtle Pension Fund”, which is part of the group of independent funds and has its registered office in Rotkreuz, has been in place since 1 January 2006 for the companies of Bechtle Holding Switzerland AG located in Switzerland. It is a foundation within the meaning of Article 80 et seq. of the Swiss Civil Code, Article 331 et seq. of the Swiss Law of Obligations and Article 48 et seq. of the Swiss Federal Law on Occupational Old-Age, Survivors and Invalidity Pensions (BVG). The subsidiaries of Bechtle Holding Schweiz AG that are not domiciled in Switzerland are insured via external state (those in Germany, France and Austria) and private (Netherlands) pension funds. The Bechtle Pension Fund means that the necessary transparency has been in place since 1 January 2006 to show pension plans in the balance sheet as defined benefit plans pursuant to IAS 19.48 et seq. To this end, actuarial reports have been prepared regularly since 1 January 2006.

As of 31 December 2007, comparison of the projected assets (32,685 thousand euros) and the defined benefit obligation (37,992 thousand) yielded insufficient cover and a net obligation to be shown in the balance sheet of 5,307 thousand euros, which was duly recognised as a pension provision. This net obligation shown in the balance sheet was attributable to actuarial losses of 5,616 thousand euros that were recognised directly in equity (retained earnings) in accordance with IAS 19.93A after taking deferred taxes into account.

In the course of the reporting period, further actuarial losses of 3,629 thousand euros were accrued. Taking into account currency translation differences of 851 thousand euros, the actuarial losses stated in retained earnings as of 31 December 2008 were 9,736 thousand euros less deferred tax assets in the amount of 1,922 thousand euros.

During the reporting period, the employer's contributions paid exceeded the net pension payments recognised as affecting net income by 910 thousand euros, which was recognised accordingly as a reduction in personnel expenses and hence of the operating expenses.

After taking into account other currency translation differences of - 95 thousand euros, the total net obligation to be shown in the balance sheet as of 31 December 2008, and hence the pension provisions thus amounted to 8,422 thousand euros.

Bechtle Onsite Services GmbH

The pension obligations of Bechtle Onsite Services GmbH, Neckarsulm, are attributable to a subsidiary take-over as of 1 October 2005, and were initially stated in the Bechtle Group balance sheet as of 31 December 2005 on the basis of an actuarial expert opinion.

The obligations of this defined benefit pension plan are treated as direct commitments without drawing on of reserves. This is a reserve-financed pension system that is not fund-supported. For valuation purposes, actuarial expert opinions are prepared regularly. As of 31 December 2007, the pension provisions shown in the balance sheet were 468 thousand euros. The actuarial gains amounted to 68 thousand euros (deferred tax liabilities: 18 thousand euros).

As of 31 December 2008, the pension provisions fell by 31 thousand euros to 437 thousand euros. A reduction of 82 thousand euros was recognised directly in equity as an actuarial gain (passive deferred taxes: 22 thousand euros) while 51 thousand euros was recognised under expenses.

In total, as of 31 December 2008, the pension obligations of Bechtle Onsite Services GmbH and of Bechtle Holding Schweiz AG and subsidiaries stated in the consolidated balance sheet came to 8,859 thousand euros.

The reconciliation statement for the present value of the benefit-orientated liabilities is composed as follows:

in th. euros		2008		2007
Present value of defined benefit obligation as of 01.01.		38,460		39,363
Ongoing work time expenses (for pension entitlements earned in the reporting period)		1,654		1,792
Interest cost (for pension entitlements earned in the reporting period)		1,444		1,206
Employee contributions		1,719		1,771
Actuarial gains/losses		- 2,473		- 490
Company mergers		0		1,770
Paid pension benefits		- 5,212		- 5,812
Currency translation differences		4,100		- 1,140
Present value of defined benefit obligation as of 31.12.		39,692		38,460

The fair value of the projected assets are transferred as follows:

in th. euros		2008		2007
Fair value of projected assets as of 01.01.		32,685		33,979
Expected revenue from projected assets		1,547		1,408
Employee contributions		1,719		1,771
Employer contributions		2,410		2,287
Actuarial gains/losses		- 5,660		- 1,460
Company mergers		0		1,504
Paid pension benefits		- 5,212		- 5,812
Currency translation differences		3,344		- 992
Fair value of projected assets as of 31.12.		30,833		32,685

The following table shows the reconciliation statement for the pension provisions recognised in the balance sheet:

in th. euros		31.12. 2008		31.12. 2007		31.12. 2006		31.12. 2005		31.12. 2004
Present value of defined benefit obligation		39,692		38,460		39,363		559		-
Fair value of projected assets		30,833		32,685		33,979		0		-
Net obligation		8,859		5,775		5,384		559		-
Pension reserves shown in the balance sheet		8,859		5,775		5,384		559		-

The net pension expenses shown in the income statement for the defined benefit pension plans are made up of the following:

in th. euros		2008		2007
Ongoing work time expenses (for pension entitlements in the reporting period)		1,654		1,792
Interest cost (for pension entitlements acquired at an earlier date)		1,444		1,206
Expected revenue from projected assets		- 1,547		- 1,408
Net pension expenses for benefit commitments		1,551		1,590

The defined benefit plans and their actuarial measurement are based on the following parameters:

		Bechtle Holding Schweiz AG (sub-group)		Bechtle Onsite Services GmbH
Discount rate		3.50%; 3.00% from 31.12.2008		6.00%
Inflation rate		1.50%; 1.75% from 31.12.2008		n/a
Long-term expected appreciation of projected assets		4.25%; 4.00% from 31.12.2008 “net“ (i.e. after administration costs)		n/a
Salary increase (incl. inflation rate)		2.00%		0.00%
Pension increase		0.00%		n/a
Retirement likelihood, mortality, invalidity		BVG 2005 Retirement likelihood conditional		Heubeck guide 2005 G; on age and company service
Likelihood of marriage		80%; age difference between husband and wife is three years		Heubeck guide 2005 G
Earliest retirement age		Men and women 100% aged 64 years		Men 62/63 and women 60/62 (after Pension Reform 1999)
Surcharge for longevity		None		None

The total projected returns result from the weighted average projected revenues from the investment categories maintained by the plan assets. The assessment of the projected revenues by the management is based on historical revenue series and market forecasts by analysts for the respective assets for the next twelve months.

The composition of the projected assets of Bechtle Holding Schweiz AG with respect to investment categories is as follows:

		31.12.2008
Obligations		41%
Equity instruments		23%
Property		17%
Others		11%
Liquidity		8%

The empirical valuation allowances to the defined benefit obligation and the projected assets are as follows:

in th. euros		31.12.2008		31.12.2007
Empirical adjustment to defined benefit obligation (gain)		6,468		341
Empirical adjustment to projected assets (loss)		-8,984		1,448

The actuarial expert opinions for Bechtle Holding Schweiz AG and Bechtle Onsite Services GmbH forecast the following figures for 2009:

in th. euros			2009
Present value of defined benefit obligation as of 01.01.			39,692
Ongoing work time expenses (for pension entitlements earned in the reporting period)			2,763
Interest cost (for pension entitlements earned in the reporting period)			1,120
Employee contributions			1,834
Paid pension benefits			-5,560
Present value of defined benefit obligation as of 31.12.			39,849

in th. euros		2009
Fair value of projected assets as of 01.01.		30,833
Projected revenue from projected assets		1,205
Employee contributions		1,834
Employer contributions		2,570
Paid pension benefits		-5,559
Fair value of projected assets as of 31.12.		30,883

in th. euros		31.12.2009
Present value of defined benefit obligation		39,849
Fair value of projected assets		30,883
Net obligation		8,966
Pension reserves shown in the balance sheet		8,966

in th. euros		2009
Ongoing work time expenses (for pension entitlements in the reporting period)		2,763
Interest cost (for pension entitlements acquired at an earlier date)		1,120
Projected revenue from projected assets		-1,205
Net pension expenses for benefit commitments		2,678