Volvo 2001 Annual Report Download - page 98

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PARENT COMPANY AB VOLVO · NOTES TO FINANCIAL STATEMENTS
94
1999 2000 2001
Wages, salaries and withholding taxes 37 30 30
Other liabilities 86 95 50
Accrued expenses and prepaid income 72 55 99
Total 195 180 179
No collateral is provided for current liabilities.
Of the contingent liabilities amounting to 150,295
(133,856; 104,742), 149,829 (133,548; 104,415)
pertained to subsidiaries.
Guarantees for various credit programs are included
in amounts corresponding to the credit limits. These
guarantees amount to 147,246 (130,691; 101,885), of
which guarantees on behalf of subsidiaries totaled
146,786 (130,686; 101,863). At the end of each year,
the utilized portion amounted to 72,804 (58,448;
41,296) including 72,793 (58,140; 40,969) pertaining
to subsidiaries.
Note 20 Other current liabilities
Note 21 Contingent liabilities
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, 10 (0; 0) 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 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 (0; 33) have been transferred
from AB Volvo to the Volvo Pension Foundation.
AB Volvo’s pension costs in 2001 amounted to
93 (70; 54), after withdrawal from the Volvo Pension
Foundation of 0 (24; 30).
The accumulated benefit obligation of all AB Volvo’s
pension obligations at year-end 2001 amounted to 702,
which has been secured in part through provisions for
pensions and in part through funds in pension founda-
tions. Net asset value in the Pension Foundation, marked
to market, accruing to AB Volvo was 10 lower than cor-
responding pension obligations. A provision was recorded
to cover this deficit.
The accounting for surplus funds in Alecta is shown in
Note 22 to the consolidated financial statements, on
pages 70–71.
Other provisions comprise provisions for taxes in the amount of 24 (68; 68).
Long-term debt matures as follows:
2003 1,054
2004 3,329
2005 or later 72
Total 4,455
Long-term liabilities to Group companies include loans
of 0 (3,104; 3,023) from Volvo Treasury and 3,329 (0; 0)
from Renault V.I.
Note 17 Provisions for pensions
Note 18 Other provisions
Note 19 Non-current liabilities
Value in Value in Value in
The composition of, and changes balance sheet Allocations balance sheet Group internal Allocations balance sheet
in, untaxed reserves: 1999 2000 2000 transfer 2001 2001
Tax allocation reserve 1,275 250 1,525 – – 1,525
Tax equalization reserve 114 (114) – – – –
Accumulated extra depreciation
Land – – – – 3 3
Machinery and equipment 5 (3) 2 – (2) 0
Replacement reserve – – – 3 (3) –
Total 1,394 133 1,527 3 (2) 1,528
Note 16 Untaxed reserves