Saab 2012 Annual Report Download - page 106

The cost is reported on the following lines in the income statement:
Group
MSEK 2012 2011
Cost of goods sold 687 630
Marketing expenses 81 76
Administrative expenses 53 48
Research and development costs 79 79
Financial expenses 152 60
Total cost of post-employment compensation 1,052 893
Interest expense and amortisation of actuarial losses less the assumed return
on assets under management is classied as nancial expense. Other pension
costs are divided by function in the income statement in relation to how
payroll expenses are charged to the various functions.
Return on assets under management
Group
MSEK 2012 2011
Actual return on assets under management 325 -31
Assumed return on assets under management -260 -259
Actuarial result from assets under management
during the year 65 -290
Assumptions for defined-benefit obligations
Group
Per cent 2012 2011 2010 2009 2008
Significant actuarial assumptions
as of closing day (expressed as
weighted averages)1)
Discount rate, 31 December 3.00 3.50 4.80 4.00 4.25
Assumed return on assets under
management, 31 December 3.00 6.00 6.00 5.00 5.00
Future salary increase 3.00 3.00 3.00 3.00 3.00
Future increase in pensions 2.00 2.00 2.00 2.00 2.00
Employee turnover 3.00 3.00 3.00 5.00 5.00
Anticipated remaining years in service 12.9 12.9 13.0 11.2 11.2
1) Refers to Sweden since essentially all defined-benefit plans are in Sweden.
e following assumptions serve as the basis of the valuation of Saab’s
pension liability:
Discount rate: e valuation is based on covered Swedish mortgage bonds
(). Each assumed cash ow is discounted using an interest rate for the
corresponding maturity.
Assumed return on assets under management: Of the assets managed by the
Saab Pension Fund,  per cent is invested in interest-bearing bonds and
per cent in equities and hedge funds. According to the new updated stand-
ard ( ) assumed return on assets under management may not exceed
the discount rate. Saab’s pension fund does not own any Saab shares.
Long-term salary increase assumption: Assumed to be as high as the increase
in the basic income amount. is means that Saab expects the same salary
increases as the national average.
Long-term increase in basic income: Data from Statistics Sweden on current
wage increases in the private sector provide an historical average during the
period – of approximately  per cent above ination.
Long-term rate of inflation: Based on the Riksbank’s ination target of
 per cent.
Mortality: Mortality is the same assumption recommended by the Financial
Supervisory Authority ( :), based on Makeham formulas for men
and women.
Marriage: Marriage is the same assumption recommended by the Financial
Supervisory Authority ( :).
Employee turnover: e likelihood that an individual ends his/her employ-
ment is assumed to be  per cent per year.
Effects of amendments to IAS 19 Employee Benefits
Year-end 2012
Statement of financial position
MSEK
31-12-2012
actual
Adjustment
IAS 19R
31-12-2012
restated
Fixed assets 12,026 -741 11,285
Deferred tax assets 213 515 728
Current assets 17,440 - 17,440
Total assets 29,679 -226 29,453
Equity 14,097 -2,817 11,280
Provision for pension 11 2,863 2,874
Deferred tax liabilities 981 -282 699
Other long-term liabilities 1,696 10 1,706
Current liabilities 12,894 - 12,894
Total liabilities 15,582 2,591 18,173
Total equity and liabilities 29,679 -226 29,453
Equity/assets ratio 47.5% 38.3%
Income statement
MSEK
2012
actual
Adjustment
IAS 19R
2012
restated
EBIT 2,032 18 2,050
Financial net -126 79 -47
Taxes -367 -76 -443
Net income 1,539 21 1,560
EPS, SEK 14.33 0.19 14.52
Other comprehensive income after tax -107 -300 -407
Net comprehensive income 1,432 -279 1,153
End of third quarter 2012
Statement of financial position
MSEK
30-09-2012
actual
Adjustment
IAS 19R
30-09-2012
restated
Fixed assets 11,875 -784 11,091
Deferred tax assets 120 596 716
Current assets 17,063 - 17,063
Total assets 29,058 -188 28,870
Equity 13,569 -2,679 10,890
Provision for pension 12 2,864 2,876
Deferred tax liabilities 933 -373 560
Other long-term liabilities 2,897 - 2,897
Current liabilities 11,647 - 11,647
Total liabilities 15,489 2,491 17,980
Total equity and liabilities 29,058 -188 28,870
Equity/assets ratio 46.7% 37.7%
NOTE 37, CONT.
FINANCIAL INFORMATION > NOTES
102 SAAB ANNUAL REPORT 2012