Notes to consolidated financial statements
For the years ended December 31, 2011 and 2010 (as adjusted)
(In thousands of Mexican pesos ($) and thousands of U.S. dollars (US$))

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12. Employee retirement obligations

The Company has plans for retirement, death or total disability payments for non-union employees in most of its subsidiaries. It also maintains seniority premium plans for all employees as stipulated in their employment contracts. The Company is also required to pay severance for reasons other than restructuring. The related liabilities and the annual benefit costs are calculated by an independent actuary on the basis of formulas defined in the plans, using the projected unit credit method.

The present value of these obligations and the rates used for their calculation are:

		2011		2010
Vested benefit obligation	$	(757,332)	$	(451,137)
Non-vested benefit obligation		(1,830,957)		(2,010,835)
Defined benefit obligation		(2,588,289)		(2,461,972)
Plan assets at fair value		3,193,746		3,029,033
Funded status – overfunded		605,457		567,061
Unrecognized items:
Past service costs and changes to the plan		137,238		205,081
Unrecognized actuarial gains and losses		(314,717)		(314,495)
Net projected asset	$	427,978	$	457,647
Contributions to plan assets	$	107,283	$	50,209
The rates used in actuarial calculations were as follows:
		2011 %		2010 %
Discount of the projected benefit obligation at present value		7.13		7.27
Expected yield on plan assets		7.33		6.94
Salary increase		4.74		4.55
Future pension increase		4.90		2.00
Unrecognized items are charged to results over a period of five years.
Net period cost (income) comprises the following:
		2011		2010
Service costs	$	168,326	$	172,864
Interest cost		169,376		152,151
Expected yield on plan assets		(224,085)		(196,195)
Amortization of unrecognized prior service costs		22,947		62,170
Actuarial gains and losses – net		(14,049)		(113,041)
Effect of reduction or early liquidation
(other than a restructuring or discontinued operation)		(19,332)		(2,048)
	$	103,183	$	75,901

Under Mexican legislation, the Company must make payments equivalent to 2% of its workers' daily integrated salary (ceiling) to a defined contribution plan that is part of the retirement savings system. The expense in 2011 and 2010 was $171,622 and $121,289, respectively.

Amounts for the current year and the four preceding years:

		2011		2010		2009		2008		2007
Defined benefit obligation	$	(2,588,289)	$	(2,461,972)	$	(2,196,886)	$	(1,559,060)	$	(1,697,719)
Plan assets at fair value		3,193,746		3,029,033		2,723,090		2,286,278		3,269,477
Funded status	$	605,457	$	567,061	$	526,204	$	727,218	$	1,571,758
Adjustments to defined benefit
obligation based on experience	$	(314,717)	$	(314,495)	$	(267,400)	$	(562,378)	$	(998,161)
Adjustments to plan assets
based on experience	$	137,238	$	205,081	$	116,734	$	165,757	$	(26,585)