Volvo 1997 Annual Report Download - page 65

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63
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19 Other current liabilities
1995 1996 1997
Wages, salaries and
withholding taxes 38 46 34
Other liabilities 1,681 132 30
Accrued expenses
and prepaid income 141 122 58
Total 1,860 300 122
Other liabilities in 1995 included a debt of approximately FRF 1.1 bil-
lion to Renault pertaining to the balance of the purchase price for
Volvo Truck Corporation shares. This debt was paid in 1996. Current
liabilities amounting to 0 (1; 1,603) are secured.
■■
20 Assets pledged
1995 1996 1997
Mortgages on fixed assets — 1 —
Investments
in Volvo Truck Corporation 1,149 1,211 —
in companies outside
the Volvo Group 4 5 —
Total 1,153 1,217 —
Liabilities for which the above assets were pledged amounted to 0
(1; 1,603) at year-end.
■■
21 Contingent liabilities
Of the contingent liabilities amounting to 72,287 (64,650; 57,441)
71,930 (64,046; 56,795) pertained to subsidiaries.
Guarantees for various credit programs are included in amounts
corresponding to the credit limits. These guarantees amount to
67,493 (59,465; 42,754), of which guarantees on behalf of sub-
sidiaries total 67,488 (59,460; 42,749).
At December 31, 1997, the utilized portion amounted to 21,785
(19,918; 22,154), including 21,428 (19,313; 21,508) pertaining to
subsidiaries.
■■
16 Provisions for pensions
Provisions for pensions and similar benefits correspond to the actuari-
ally calculated value of obligations not insured with third parties or
secured through transfers of funds to pension foundations. The
amount of pensions falling due within one year is included. AB Volvo
has insured the pension obligations with third parties. Of the amount
reported, 10 (12; 231) pertains to contractual obligations within the
framework of the PRI(Pension Registration Institute) system.
In 1996 two Groupwide pension foundations for employees were
formed to secure committments in accordance with the ITP plan. The
Volvo Group 1995 Employee Pension Foundation pertains to pension
funds earned through 1995 and the Volvo Group 1996 Employee
Pension Foundation pertains to funds earned beginning in 1996. In
1996, 12 was transferred and in 1996, 224 was transferred from
AB Volvo to the Volvo Group Employee Pension Foundation.
AB Volvo’s pension costs in 1997 amounted to 106 (102; 75).
The capital value of all AB Volvo’s pension obligations at year-end
1997 amounted to 588, which has been secured in part through
Provision for pensions and in part through funds in pension
Foundations. The Company’s share of reported capital in the pension
foundations amounted to 296. Assets in the pension foundations at
market value, exceeded pension obligations by 4.
■■
17 Other provisions
Other provisions comprise provisions for taxes in the amount of 63
(73: 77).
■■
18 Non-current liabilities
Long-term debt matures as follows:
1999 1,972
2000 —
2001 504
2002 1,030
2003 500
2004 or later 6,945
Total 10,951
Long-term liabilities to Group companies comprise loans of 10,951
(8,606: 10,958) from Volvo Group Finance.
■■■■
15 Untaxed reserves
The composition of, and changes in, Value in balance Allocations Value in balance Allocations Value in balance
untaxed reserves: sheet 1995 1996 sheet 1996 1997 sheet 1997
Tax equalization reserve 443 (89) 354 (89) 265
Exchange reserve 267 108 375 (172) 203
Accumulated extra depreciation
Machinery and equipment 29 0 29 (16) 13
Total 739 19 758 (277) 481