Changes in Underlying Parameters

Changes in the underlying parameters relate primarily to currency exchange rates and the interest rates used to calculate pension obligations.

The exchange rates for major currencies against the euro varied as follows:

Exchange Rates for Major Currencies

 

 

 

Closing rate

 

Average rate

€1

 

 

Dec. 31, 2016

March 31, 2016

March 31, 2017

 

Q1 2016

Q1 2017

BRL

Brazil

 

3.43

4.12

3.37

 

4.30

3.35

CAD

Canada

 

1.42

1.47

1.43

 

1.51

1.41

CHF

Switzerland

 

1.07

1.09

1.07

 

1.10

1.07

CNY

China

 

7.35

7.36

7.35

 

7.22

7.31

GBP

United Kingdom

 

0.86

0.79

0.86

 

0.77

0.86

JPY

Japan

 

123.36

127.90

119.46

 

127.02

121.07

MXN

Mexico

 

21.78

19.59

20.01

 

19.85

21.61

RUB

Russia

 

64.30

76.31

60.28

 

82.15

62.59

USD

United States

 

1.05

1.14

1.07

 

1.10

1.06

The most important interest rates used to calculate the present value of pension obligations are given below:

Discount Rate for Pension Obligations

 

 

Dec. 31, 2016

 

March 31, 2017

 

 

%

 

%

Germany

 

1.80

 

1.90

United Kingdom

 

2.65

 

2.55

United States

 

3.70

 

3.80