Volvo 1999 Annual Report Download - page 93

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91
Provisions for pensions and similar benefits correspond
to the actuarially 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, 0 (7; 10) pertains to contractual obli-
gations within the framework of the PRI (Pension
Registration Institute) system.
In 1996, two Groupwide pension foundations for
employees were formed to secure commitments in
accordance with the ITP plan. The Volvo 1995 Pension
Foundation pertains to pension funds earned through
1995 and the Volvo 1996 Pension Foundation pertains
to funds earned beginning in 1996. In 1999, 33 (10;
12) was transferred from AB Volvo to the Volvo Pension
Foundations.
AB Volvo’s pension costs in 1999 amounted to 54
(63; 106), after withdrawal from the Volvo 1995 Pension
Foundation of 30 (-; -).
The accumulated benefit obligation of all AB Volvo’s
pension obligations at year-end 1999 amounted to 633,
which has been secured in part through Provision for
pensions and in part through funds in pension founda-
tions. Assets in the Pension Foundation, marked to mar-
ket, accruing AB Volvo exceeded pension obligations by
59.
During 1999, AB Volvo was notified that its share of
the alloted company specific surplus pension funds held
by SPP (Swedish insurance company) were approxi-
mately nominal 200. In accordance with a statement by
the Urgent Issues Committee of the Swedish Financial
Accounting Standards Council, these funds are not
reported in Volvo’s balance sheet.
Value in Value in Value in
The composition of, and changes in, balance sheet Allocations balance sheet Allocations balance sheet
untaxed reserves: 1997 1998 1998 1999 1999
Tax allocation reserve – 978 978 297 1,275
Tax equalization reserve 265 (89) 176 (62) 114
Exchange reserve 203 (199) 4 (4) –
Accumulated extra depreciation
Machinery and equipment 13 (4) 9 (4) 5
Total 481 686 1,167 227 1,394
Untaxed reserves Note 14
Provisions for pensions Note 15
Other provisions comprise provisions for taxes in the amount of 68 (68; 63).
Long-term debt matures as follows:
2001 –
2002 3,023
2003 or later –
Total 3,023
Long-term liabilities to Group companies comprise loans
of 3,023 (9,010;10,951) from Volvo Treasury.
Other provisions Note 16
Non-current liabilities Not 17