Volvo 2002 Annual Report Download - page 66

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64/65
The Volvo Group
Notes to consolidated financial statements
The projected benefit obligation, accumulated benefit obligation and
fair value of plan assets for the pension plans with an accumulated
benefit obligation in excess of plan assets were 17,198; 16,492 and
10,963 at December 31, 2002 and 13,872; 13,351 and 11,142 at
December 31, 2001.
Other post-employment benefit plans
In addition to its pension plans, certain subsidiaries sponsor unfund-
ed 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 con-
tributions being adjusted periodically, and contain other cost-sharing
features such as deductibles and coinsurance. The estimated cost
for health-care benefits is recognized on an accrual basis in accord-
ance with the requirements of SFAS 106, “Employers’ Accounting for
Post-retirement Benefits Other than Pensions.”
Net periodical costs for other benefits in accordance with U.S. GAAP: 2000 2001 2002
Service costs 45 88 70
Interest costs 76 513 509
Expected return on plan assets – (27) 0
Amortization, net (4) 4 36
Net periodical benefit costs 117 578 615
Sweden United
Net provisions for Pensions States France Great Britain US other Other
postemployment benefits (ITP plan) Pensions Pensions Pensions benefits plans Total
Funded status at December 31, 2001 (550) (2,459) (2,712) (276) (8,084)
Unrecognized actuarial (gains) and losses 1,155 2,004 – 279 (93)
Unrecognized transition (assets) and obligations
according to SFAS 87, net (52) – – (21) 34
Unrecognized prior service costs – 400 – 10 398
Minimum liability adjustments (546) (1,417) – – –
Net provisions for postemployment benefits
in accordance with U.S. GAAP
at December 31, 2001 7 (1,472) (2,712) (8) (7,745) (1,675) (13,605)
Funded status at December 31, 2002 (839) (4,771) (2,482) (624) (6,759)
Unrecognized actuarial (gains) and losses 1,350 3,952 133 613 70
Unrecognized transition (assets)
and obligations according to SFAS 87, net (33) – – (18) 7
Unrecognized prior service costs – 600 – 9 225
Minimum liability adjustments (1,090) (3,817) – (417) –
Net provisions for postemployment benefits
in accordance with U.S. GAAP
at December 31, 2002 (612) (4,036) (2,349) (437) (6,457) (1,657) (15,548)
Difference between U.S. GAAP
and Swedish accounting principles (397) – – 417 – – 20
Net provisions for post-employment
benefits in accordance with Swedish
accounting principles (1,009) (4,036) (2,349) (20) (6,457) (1,657) (15,528)
whereof reported as
Prepaid pensions (receivables) – 600 – – – 108 708
Provisions for postemployment benefits (1,009) (4,636) (2,349) (20) (6,457) (1,765) (16,236)