The retirement expense charged to the income statement is recorded within personnel expenses for the operating part and within financial costs for the financial part and can be analysed as follows:
| € millions | 2021 | 2020 | 2019 |
|---|---|---|---|
| Service cost during the financial year | Service cost during the financial year 2021221.9 |
Service cost during the financial year 2020201.2 |
Service cost during the financial year 2019168.8 |
| Interest costs | Interest costs 202160.5 |
Interest costs 202080.0 |
Interest costs 2019111.8 |
| Expected return on assets | Expected return on assets 2021-50.4 |
Expected return on assets 2020-66.7 |
Expected return on assets 2019-99.5 |
| New plans/plan amendments(1) | New plans/plan amendments (1)2021-10.0 |
New plans/plan amendments (1)2020-12.7 |
New plans/plan amendments (1)201972.9 |
| Curtailments(1) | Curtailments (1)2021-16.7 |
Curtailments (1)2020-21.2 |
Curtailments (1)2019-100.3 |
| Settlements | Settlements 20211.1 |
Settlements 20200.2 |
Settlements 2019- |
| TOTAL | TOTAL 2021206.4 |
TOTAL 2020180.9 |
TOTAL 2019153.6 |
(1) (2019) Order no. 2019-697 transposing a European Directive dated 16 April 2014 into law no longer allows for new additional rights to be acquired in schemes opened on 20 May 2014 for employment periods after 31 December 2019. The net impact recorded in 2019 net income for these developments is +€17.5 million. L’Oréal finalized in 2021 the implementation of a replacement scheme for acquired rights in accordance with this Order for employment periods starting 1 January 2020, following publication of the circular on 23 December 2020. This scheme is considered a continuation of the former scheme due to its consistency in terms of population and benefits.
Contributions to defined contribution schemes recognised as an expense for 2021, 2020 and 2019 amounted to €559.3 million, €511.3 million and €524.80 million, respectively.
A change of 1% point in medical cost inflation would have the following impact:
| € millions | Increase of 1% | Decrease of 1% |
|---|---|---|
| Impact on projected benefit obligation | Impact on projected benefit obligation Increase of 1%9.57 |
Impact on projected benefit obligation Decrease of 1%-7.99 |
| Impact on current service cost and interest costs | Impact on current service cost and interest costs Increase of 1%0.23 |
Impact on current service cost and interest costs Decrease of 1%-0.19 |
Actuarial gains and losses for the periods presented are as follows:
|
€ millions 2021 |
Present value of defined benefit obligation | Plan assets | Net provisions |
|---|---|---|---|
| Actuarial gains and losses: experience adjustments | Actuarial gains and losses: experience adjustments Present value of defined benefit obligation31.5 |
Actuarial gains and losses: experience adjustments Plan assets-255.2 |
Actuarial gains and losses: experience adjustments Net provisions-223.7 |
| Actuarial gains and losses: demographic assumptions | Actuarial gains and losses: demographic assumptions Present value of defined benefit obligation23.2 |
Actuarial gains and losses: demographic assumptions Plan assets- |
Actuarial gains and losses: demographic assumptions Net provisions23.2 |
| Actuarial gains and losses: financial assumptions | Actuarial gains and losses: financial assumptions Present value of defined benefit obligation-384.6 |
Actuarial gains and losses: financial assumptions Plan assets- |
Actuarial gains and losses: financial assumptions Net provisions-384.6 |
| TOTAL | TOTALPresent value of defined benefit obligation-329.9 | TOTALPlan assets-255.2 | TOTALNet provisions-585.2 |
|
€ millions 2020 |
Present value of defined benefit obligation | Plan assets | Net provisions |
|---|---|---|---|
| Actuarial gains and losses: experience adjustments | Actuarial gains and losses: experience adjustments Present value of defined benefit obligation40.3 |
Actuarial gains and losses: experience adjustments Plan assets-257.5 |
Actuarial gains and losses: experience adjustments Net provisions-217.2 |
| Actuarial gains and losses: demographic assumptions | Actuarial gains and losses: demographic assumptions Present value of defined benefit obligation7.2 |
Actuarial gains and losses: demographic assumptions Plan assets- |
Actuarial gains and losses: demographic assumptions Net provisions7.2 |
| Actuarial gains and losses: financial assumptions | Actuarial gains and losses: financial assumptions Present value of defined benefit obligation435.6 |
Actuarial gains and losses: financial assumptions Plan assets- |
Actuarial gains and losses: financial assumptions Net provisions435.6 |
| TOTAL | TOTALPresent value of defined benefit obligation483.1 | TOTALPlan assets-257.5 | TOTALNet provisions225.6 |
|
€ millions 2019 |
Present value of defined benefit obligation | Plan assets | Net provisions |
|---|---|---|---|
| Actuarial gains and losses: experience adjustments | Actuarial gains and losses: experience adjustments Present value of defined benefit obligation-25.5 |
Actuarial gains and losses: experience adjustments Plan assets-378.9 |
Actuarial gains and losses: experience adjustments Net provisions-404.4 |
| Actuarial gains and losses: demographic assumptions | Actuarial gains and losses: demographic assumptions Present value of defined benefit obligation-36.6 |
Actuarial gains and losses: demographic assumptions Plan assets- |
Actuarial gains and losses: demographic assumptions Net provisions-36.6 |
| Actuarial gains and losses: financial assumptions | Actuarial gains and losses: financial assumptions Present value of defined benefit obligation768.8 |
Actuarial gains and losses: financial assumptions Plan assets- |
Actuarial gains and losses: financial assumptions Net provisions768.8 |
| TOTAL | TOTALPresent value of defined benefit obligation706.6 | TOTALPlan assets-378.9 | TOTALNet provisions327.7 |
