Volvo 2000 Annual Report Download - page 89

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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 (0; 7) pertains to contractual obliga-
tions 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 pertained to pension funds earned through
1995 and the Volvo 1996 Pension Foundation pertained
to funds earned beginning in 1996. During 2000 these
two foundations merged into one foundation. Pension
funds amounting to 0 (33; 10) have been transferred
from AB Volvo to the Volvo Pension Foundation.
AB Volvo’s pension costs in 2000 amounted to 70
(54; 63), after withdrawal from the Volvo Pension
Foundation of 24 (30; –).
The accumulated benefit obligation of all AB Volvo’s
pension obligations at year-end 2000 amounted to 668,
which has been secured in part through provisions for
pensions and in part through funds in pension founda-
tions. Assets in the Pension Foundation, marked to mar-
ket, accruing to AB Volvo exceeded pension obligations
by 15.
The accounting for surplus funds in SPP is shown in
Note 22 to the consolidated financial statements, on
pages 66-67.
Value in Value in Value in
The composition of, and changes in, balance sheet Allocations balance sheet Allocations balance sheet
untaxed reserves: 1998 1999 1999 2000 2000
Tax allocation reserve 978 297 1,275 250 1,525
Tax equalization reserve 176 (62) 114 (114) –
Exchange reserve 4 (4) – – –
Accumulated extra depreciation
Machinery and equipment 9 (4) 5 (3) 2
Total 1,167 227 1,394 133 1,527
87
Other provisions comprise provisions for taxes in the amount of 68 (68; 68).
Long-term debt matures as follows:
2002 3,104
2003 1,054
2004 or later 72
Total 4,230
Long-term liabilities to Group companies comprise loans
of 3,104 (3,023;9,010) from Volvo Treasury.
Note 14 Untaxed reserves
Note 15 Provisions for pensions
Note 16 Other provisions
Note 17 Non-current liabilities