Saab 2014 Annual Report Download - page 111

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FINANCIAL INFORMATION – NOTES
Note 37, cont.
Items included in the statement of cash flow
2014 Group
MSEK Sweden USA Switzerland Total
Deposit to pension fund and
other funding -199 -21 -7 -227
Payments -236 -13 - -249
Withdrawals 194 13 - 207
Total impact on cash flow -241 -21 -7 -269
2013 Group
MSEK Sweden USA Switzerland Total
Deposit to pension fund and
other funding -4 -26 -5 -35
Payments -216 -12 -3 -231
Withdrawals 2 12 3 17
Total impact on cash flow -218 -26 -5 -249
Estimated payments during 2015 amount to approximately MSEK 260.
Actuarial gains and losses are reported in other comprehensive income.
Actuarial losses related to pensions amounted to MSEK 983 in 2014 primarily
due to the following. The return on assets under management was higher than
expected at 10.5 per cent, compared to an anticipated 4.0 per cent, which produ-
ced an actuarial gain of MSEK 324. The actuarial loss on pension obligations
amounted to MSEK 1,307, which was due to a 150 basis point lower discount rate
and to experience adjustments. The 50 basis point lower inflation assumption was
partly offset by the interest rate cut and has reduced the actuarial loss. Changes in
demographic assumptions have not had a significant effect.
The actuarial loss related to special employer’s benefits amounted to MSEK 232
during 2014. The actuarial loss related to other long-term service awards amoun-
ted to MSEK 5.
Changes in net obligation for defined-benefit plans reported
in the statement of financial position
Group
MSEK 2014 2013
Net obligation for defined-benefit plans, 1 January 1,389 2,420
Compensation paid -249 -231
Deposits to pension fund and other funding -227 -35
Cost reported in the income statement 249 240
Income (-) /cost (+) reported in
comprehensive income 983 -1,017
Settlement/Translation difference -6 -5
Withdrawals from pension funds 207 17
Transferred operations 182 -
Net obligation for defined-benefit plans,
31 December 2,528 1,389
Change in pension obligation
Group
MSEK 2014 2013
Fair value, 1 January 6,413 7,164
Benefits vested during the year 192 166
Interest expense 257 215
Pension disbursements -249 -231
Settlement -9 -45
Transferred operations 182
Actuarial gain (-) /loss (+) 1,307 -859
Translation differences 60 3
Fair value, 31 December 8,153 6,413
Change in assets under management
Group
MSEK 2014 2013
Fair value, 1 January 5,024 4,744
Financial income 202 143
Withdrawals -207 -17
Settlement -11 -47
Contributions 227 35
Actuarial gain 324 158
Translation differences 66 8
Fair value, 31 December 5,625 5,024
The cost is reported on the following lines in the income statement
Group
MSEK 2014 2013
Cost of goods sold 755 757
Marketing expenses 82 85
Administrative expenses 66 62
Research and development costs 51 52
Financial expenses 57 74
Total cost of post-employment compensation 1,011 1,030
Interest expense on the pension obligation less financial income on assets under
management is classified as financial expense. Other pension costs are divided by
function in the income statement in relation to how payroll expenses are charged to
the various functions.
Sensitivity analysis (excluding special employer’s contribution)
Group
MSEK Change
Change in
obligation
Discount rate 0.25% -357
-0.25% 383
Inflation 0.25% 384
-0.25% -360
Salaries 0.25% 83
-0.25% -77
Life span +1 year 311
Return on assets under management
Group
MSEK 2014 2013
Actual return on assets under management 526 301
Financial income on assets under management -202 -143
Actuarial result from assets under management
during the year 324 158
Governance
Defined-benefit pensions and pension plan assets are governed by the Pension
Board, which resumes 4-5 times per year and has the following responsibilities:
• Appoint the members of and authorise the Investment Committee
• Appoint and authorise the Fund Manger
• Annually establish and approve the Investment Policy
• Decide on strategic (long-term) and tactical (short-term) asset allocation and
allow deviations in accordance with the terms of the SAA and TAA m andate
• Annually approve the benchmark indices for follow up of the pension fund assets
• Annually approve the stop loss limit
SAAB ANNUAL REPORT 2014 – 107