Volvo 1998 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 1998 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

87
Non-current liabilities Note 17
Other provisions comprise provisions for taxes in the amount of 68 (63; 73).
Long-term debt matures as follows:
2000 —
2001 403
2002 1,076
2003 500
2004 –
2005 or later 7,031
Total 9,010
1996 1997 1998
Tax liabilities – – 803
Wages, salaries and withholding taxes 46 34 29
Other liabilities 132 30 29
Accrued expenses and prepaid income 122 58 53
Total 300 122 914
Current liabilities amounting to 0 (0; 1) are secured.
1996 1997 1998
Mortages on fixed assets 1 — –
Investments
in Volvo Truck Corporation 1,211 — –
in companies outside the Volvo Group 5 — –
Total 1,217 — –
Liabilities for which the above assets were pledged amounted to 0 (0; 1) at year-end..
Of the contingent liabilities amounting to 80,018
(72,287; 64,650) 79,652 (71,930; 64,046) pertained to
subsidiaries.
Guarantees for various credit programs are included
in amounts corresponding to the credit limits. These gua-
rantees amount to 74,837 (67,493; 59,465), of which
guarantees on behalf of subsidiaries totalled 74,832
(67,488; 59,460).
At December 31, 1998, the utilized portion amounted
to 36,445 (21,785; 19,918), including 36,079 (21,428;
19,313) pertaining to subsidiaries.
Long-term liabilities to Group companies comprise loans
of 9,010 (10,951; 8,606) from Volvo Group Finance.
Other provisions Note 16
Other current liabilities Note 18
Assets pledged Note 19
Contingent liabilities Note 20
amount reported, 7 (10; 12) 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 1998, 10 (12; 224) was trans-
ferred from AB Volvo to the Volvo Group Employee
Pension Foundation.
AB Volvo’s pension costs in 1998 amounted to 63
(106; 102).
The capital value of all AB Volvo’s pension obligations
at year-end 1998 amounted to 610 , which has been
secured in part through Provision for pensions and in
part through funds in pension foundations. The Com-
pany’s share of reported capital in the pension founda-
tions amounted to 333. Assets in the pension founda-
tions at market value, exceeded pension obligations by 14.