Financial statements of JSW S.A. for 2012

20. Employee benefit liabilities

	31 Dec 2012	31 Dec 2011
Employee benefit liabilities captured in the statement of financial position on account of:
– retirement and disability severance pays	179.3	148.7
– jubilee awards	213.9	167.6
– adjustment disability benefits	221.8	184.3
– in-kind allowance of coal for pensioners and recipients of disability benefits	1,358.8	1,200.9
– write-offs for the Company Social Benefit Fund for pensioners and recipients of disability benefits	150.2	135
– other employee benefits	66.4	47.1
Total	2,190.4	1,883.6
of which:
– long-term part	1,943.0	1,663.9
– short-term part	247.4	219.7

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	2012	2011 restated
Employee benefit costs captured in pre-tax profit on account of:
– retirement and disability severance pays	14.9	13.7
– jubilee awards	87.9	61.9
– adjustment disability benefits	9.6	7.9
– in-kind allowance of coal for pensioners and recipients of disability benefits	81.9	76.7
– write-offs for the Company Social Benefit Fund for pensioners and recipients of disability benefits	10.2	9.2
– other employee benefits	20.6	10.7
Total	225.1	180.1
	2012	2011 restated
Employee benefit costs captured in other comprehensive income on account of:
– retirement and disability severance pays	33.3	20.1
– adjustment disability benefits	47.5	27.1
– in-kind allowance of coal for pensioners and recipients of disability benefits	138.1	(62.6)
– write-offs for the Company Social Benefit Fund for pensioners and recipients of disability benefits	10.7	(8.7)
Total	229.6	(24.1)

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Movement in employee benefit liabilities

	2012	2011 restated
As at 1 January	1,883.6	1,870.3
Current headcount cost	56.6	48
Interest cost	102.4	89.1
Actuarial loss/(profit) captured in pre-tax profit	66.1	43
Actuarial loss /(profit) captured in other comprehensive income	229.6	(24.1)
Total captured in comprehensive income	454.7	156
Benefits paid out	(147.9)	(142.7)
As at 31 December	2,190.4	1,883.6

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Total amount of employee benefit costs captured in the statement of comprehensive income:

	2012	2011 restated
Cost of products, materials and merchandise sold	95.4	71.6
Cost of sales	0.6	-
Administrative costs	26.7	19.4
Financial costs	102.4	89.1
Total captured in pre-tax profit	225.1	180.1
Amount captured in other comprehensive income	229.6	(24.1)
Total captured in comprehensive income	454.7	156

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Key actuarial assumptions adopted for days ending the reporting periods:

	2012	2011
Discount rate	4.5%	5.5%
Assumed average annual increase in the basis for calculating the provision for retirement and disability severance pays, jubilee awards and adjustment disability benefits	2.6%	2.3%-2.6%
Assumed average annual increase in the basis for calculating the provision for in-kind allowance of coal	2.7%	2.7%
Assumed average annual increase in the basis for calculating the provision for write-offs for the Company Social Benefit Fund	4.5%	4.6%
Weighted average employee mobility ratio	2.46%	2.21%

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Assumptions regarding future mortality rates and probability of the employee becoming a disability benefit recipient were estimated based on the statistical data from Polish survival tables for men and women published by the Central Statistical Office, as at the measurement date.