Hexagon Annual Report 2019

NOTE 18 PENSIONS AND OTHER NON-CURRENT EMPLOYEE BENEFITS The Norwegian companies in the group are legally obliged to have occupational pension arrangements under the Norwegian Mandatory Occupational Pension Act. The Norwegian pension arrangements satisfy the requirements of this act. Below is a summary table of the pension cost in the Group for the various pension plans. Further details on the various plans is provided below: (NOK 1 000) 2019 2018 Defined contribution pension plan 33 026 15 247 Defined benefit pension plan in Norway 1 438 1 481 Multi-employer pension plan in Norway (new AFP) 1 994 1 939 Total 36 458 18 667 SUMMARY OF PENSION COST IN THE GROUP The defined contribution pension plans in the Norwegian companies has contribution rates from 7% for salaries in the range of up to 7,1 times the national insurance base rate (G) and from 8% for salaries in the range from 7,1 G to 12 G. As of 31.12.2019 the Norwegian defined contribution pension plans had 140 (155) members. DEFINED CONTRIBUTION PENSION PLANS IN THE GROUP Our subsidiaries in the USA offer defined contribution plans subject to USA statutory requirements. The defined contribution plans cover full-time employees and employer contributions range up to 6% of defined compensation subject to employee contributions. For some of the plans, there can also be an additional payment at the end of the year in accordance with the terms of the defined contribution plan. As of 31.12.2019, 509 (172) members were covered by the plan. The table below provides the expensed contributions in the defined contribution plans: (NOK 1 000) 2019 2018 Defined contribution pension plans - Norway 11 481 9 721 Defined contribution pension plans - USA 21 545 5 526 Total 33 026 15 247 DEFINED CONTRIBUTION PLANS EXPENSES The obligation for the defined benefit pension plans is calculated on a straight-line basis. Unrealized gains and losses resulting from changes in actuarial assumptions are recognized in other comprehensive income. Net accumulated actuarial gains/losses after tax as of 31.12.2019 amounted to NOK -20 428 thousand, compared with NOK -19 726 thousand as of 31.12.2018. As of 31.12.2019 the Groups defined benefit plans had 19 members (17 members in 2018). LIABILITIES FROM DEFINED BENEFIT PENSION PLAN IN THE GROUP 42 128 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS