Volvo 2001 Annual Report Download - page 87

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83
The costs for other benefits include the following components
1999 2000 2001
Service costs 35 45 88
Interest costs 60 76 513
Expected return on plan assets – – (27)
Amortization, net (5) (4) 4
Net post-retirement benefit expenses 90 117 578
The table below shows the status in accordance with U.S. GAAP of defined-benefit plans.
Sweden Outside Sweden
Pension benefits Pension benefits Other benefits
Reconciliation of benefit obligation 2000 2001 2000 2001 2000 2001
Benefit obligation at beginning of year 3,105 3,641 1,916 2,437 906 1,143
Service cost 166 97 113 315 45 88
Interest cost 168 198 161 990 76 513
Plan amendments – – 103 273 11 394
Special termination benefits – – – 402 – 129
Curtailments – – – (60) – (13)
Actuarial loss (gain) 302 99 30 38 45 32
Acquisitions/divestments, net – – – 11,247 – 5,657
Foreign-exchange translation – – 239 1,513 112 829
Benefits paid (100) (99) (125) (1,230) (52) (551)
Benefit obligation at end of year 3,641 3,936 2,437 15,925 1,143 8,221
Sweden Outside Sweden
Pension benefits Pension benefits Other benefits
Fair value of plan assets 12000 2001 2000 2001 2000 2001
Fair value of plan assets at beginning of year 3,671 3,537 2,032 2,392 – –
Lump sums not yet paid at beginning of year – – 0 – – –
Acquisitions/divestments, net – – – 8,709 – 355
Actual return on plan assets (39) (157) 187 (810) – 12
Employer contributions 0 14 46 109 – 211
Foreign-exchange translation – – 246 1,268 – 34
Benefits paid (95) – (119) (914) – (475)
Fair value of plan assets at end of year 3,537 3,394 2,392 10,754 – 137
1Assets in pension funds, estimated at fair value.
The projected benefit obligation, accumulated obligation
and fair value of plan assets for the pension plans with
an accumulated benefit obligation in excess of plan
assets were 12,273; 11,930 and 9,818 at December 31,
2001 and 704, 682 and 531 at December 31, 2000.
Other post-retirement benefit plans
In addition to its pension plans, certain subsidiaries spon-
sor unfunded benefit plans, mainly in the U.S., to provide
health care and other benefits for retired employees who
meet minimum age and service requirements. The plans
are generally contributory, with retiree contributions being
adjusted periodically, and contain other cost-sharing
features such as deductibles and coinsurance. The esti-
mated cost for health-care benefits is recognized on an
accrual basis in accordance with the requirements of
SFAS 106, “Employers’ Accounting for Post-retirement
Benefits Other than Pensions.”
Sweden Outside Sweden
Pension benefits Pension benefits Other benefits
Funded status 2000 2001 2000 2001 2000 2001
Funded status (103) (542) (45) (5,171) (1,143) (8,084)
Unrecognized actuarial loss (gain) 679 1,155 8 2,004 (124) (93)
Unrecognized transition obligation (asset),
according to SFAS 87 (net) (71) (52) 2 0 33 34
Unrecognized prior service cost – – 148 400 0 398
Additional minimum liability (261) (546) 0 (1,691) – –
Net amount recognized 244 15 113 (4,458) (1,234) (7,745)