FINANCIAL AND ACCOUNTING INFORMATION 21.4 Employee benefit expense The expense recognized in the consolidated income statement breaks down as follows: EXPENSE (in millions of euros) UNITED KINGDOM CANADA SWITZERLAND OTHER GROUP Service costs (1) 2.5 7.6 6.0 16.1 – Past service costs (1) – (5.9) – (1.6) (7.5) Gain on settlement(3) – – – (0.6) (0.6) Net Interest expense(2) 5.0 2.7 0.1 2.8 10.6 Other (4) 0.0 (0.0) (0.2) (0.5) (0.7) Expense recognized for the year ended December 31, 2016 5.0 (0.7) 7.5 6.1 18.0 Service costs (1) 2.5 7.2 5.8 15.5 – Past service costs (1) – – (2.9) – (2.9) Gain on settlement(3) 0.7 0.7 – – – Net Interest expense(2) 5.3 2.1 0.1 2.3 9.8 Other 0.0 0.0 0.0 (0.0) 0.0 Expense recognized for the year ended December 31, 2017 5.4 4.5 4.4 8.9 23.1 (1)Recognized as personnel costs (see note 8). (2) Recognized as net financial expenses (see note 10). 5 (3) Recognized as other expenses. (4) Of which remeasurements on long-term benefits for €1.1 million in 2016. Significant plan amendments and settlements For the year ended December 31, 2016 For the year ended December 31, 2017 In Canada, the Group provides for health & dental In Switzerland, the pension scheme was amended care and life insurance coverage to the retirees and to reduce the conversion factor of the employee their dependents. Upon retirement, employees can savings capital into pension payments. The reduction choose to maintain the above described benefits of the conversion factor was partly compensated by or to elect for a lump sum settlement payment in additional employer contribution into employee lieu of their benefits. In 2016, the Group amended savings capital. The net impact of this amendment the plan to introduce a regular retiree contribution was recognized as a reduction of past service costs which is currently entirely paid by the employer, this for €2.9 million (CHF3.3 million) for the period ended contribution corresponding to 50% of the plan cost. December 31, 2017. This change applies to future retirees retiring on or after July 1, 2016. In addition, as part of its derisking strategy, the As a result of this plan amendment, a gain of Group entered into a 5-year qualifying insurance €5.9 million (CA$8.7 million) was recognized in the contract to finance disabil ity coverage benefits, income statement as a reduction in salaries and previously funded through the Swiss pension fund. benefits. Under this contract, the insurance company wil l pay the benefit payments to the plan beneficiaries In France, the Group closed a supplementary on behalf of the pension fund. As a result, a change executive retirement plan and recognized €1.8 million of plan assets for €3.8 million was recognized as a curtailment gain in the income statement under the gain in other comprehensive income for the period line item “salaries and benefits”. ended December 31, 2017. REXEL 2017 – REGISTRATION DOCUMENT 251