Volvo 1999 Annual Report Download - page 72

The Volvo Group
70
Restricted Unrestricted Total share-
Change in shareholders’ equity Share capital reserves reserves holders’ equity
Shareholders’ equity in accordance with adopted
balance sheet, December 31, 1996 2,318 14,906 40,652 57,876
Effects of change in accounting principles — — 1,398 1,398
Shareholders’ equity adjusted to
reflect new accounting principles 2,318 14,906 42,050 59,274
Cash dividend — — (1,993) (1,993)
Redemption of shares (113) — (5,694) (5,807)
Bonus issue of shares 441 (113) (328) —
Net income — — 10,481 10,481
New issue of shares 3 113 — 116
Effect of equity method of accounting 1— (34) 34 —
Transfer between unrestricted and restricted equity — 92 (92) —
Translation differences — 1,396 (528) 868
Exchange differences on loans and futures contracts 2— — (665) (665)
Accumulated translation difference on the Renault holding 3— — (552) (552)
Other changes — 113 116 229
Balance December 31, 1997 2,649 16,473 42,829 61,951
Cash dividend – – (2,208) (2,208)
Net income – – 8,437 8,437
Effect of equity method of accounting 1– (466) 466 –
Transfer between unrestricted and restricted equity – 130 (130) –
Translation differences – 970 441 1,411
Exchange differences on loans and futures contracts 2– – (237) (237)
Other changes – (7) 28 21
Balance December 31, 1998 2,649 17,100 49,626 69,375
Cash dividend – – (2,649) (2,649)
Net income – – 32,222 32,222
Effect of equity method of accounting 1– 271 (271) –
Transfer between unrestricted and restricted equity – 523 (523) –
Transfers between unrestricted and restricted equity
as a result of the sale of Volvo Cars – (5,063) 5,063 –
Translation differences – (292) (501) (793)
Accumulated translation differences
related to the sale of Volvo Cars – – (598) (598)
Other changes – 14 121 135
Balance December 31, 1999 2,649 12,553 82,490 97,692
1 Mainly associated companies’ contributions to Group net inco-
me, reduced by dividends received,
2 Hedged net investments in foreign subsidiaries and associa-
ted companies,
3 Difference pertains to Renault shares sold and has, in con-
nection with the sale, affected consolidated capital gains.
1997 1998 1999
Provisions for pensions 1,905 1,451 1,002
Provisions for other post employment benefits 1,391 1,485 1,128
Total 3,296 2,936 2,130
The amounts shown for Provisions for postemployment
benefits correspond to the actuarially calculated value of
obligations not insured with a third party or secured
through transfers of funds to pension foundations. The
amount of pensions falling due within one year is inclu-
ded. The Swedish Group companies have insured their
pension obligations with third parties.
Group pension costs in 1999 amounted to 1,542
(3,567;3,660). The greater part of pension costs consist
of continuing payments to independent organizations
that administer defined contribution pension plans.
In 1996 two Groupwide pension foundations for
employees in Swedish companies were formed to
secure commitments in accordance with the ITP plan
(a Swedish pension plan). The Volvo 1995 Pension
Foundation pertains to pension funds earned up to and
including 1995 and the Volvo 1996 Pension Foundation
pertains to funds earned beginning in 1996. After the
sale of Volvo Cars, these pension foundations are com-
mon to both the Volvo Group and Volvo Cars. In 1997,
1998 and 1999, a net of 396, 339 and 58 was transfer-
red to the pension foundations. The accumulated benefit
Provisions for postem ploym ent benefits Note 22