Volvo 2002 Annual Report Download - page 75

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Note 15 Shareholders’ equity
Total
Restricted equity Unrestricted shareholders’
Share capital Legal reserve equity equity
Balance at December 31, 1999 2,649 7,241 66,009 75,899
Cash dividend – – (3,091) (3,091)
Repurchase of own shares – – (11,808) (11,808)
Net income 2000 – – 1,376 1,376
Balance at December 31, 2000 2,649 7,241 52,486 62,376
Cash dividend – – (3,356) (3,356)
Repurchase of own shares – – (8,336) (8,336)
Issue of shares to Renault SA – – 10,356 10,356
Net income 2001 – – 11,114 11,114
Balance at December 31, 2001 2,649 7,241 62,264 72,154
Cash dividend – – (3,356) (3,356)
Net income 2002 – – (2,485) (2,485)
Balance at December 31, 2002 2,649 7,241 56,423 66,313
The distribution of share capital by class of shares is shown in Note 21 to the consolidated financial statements.
Note 16 Untaxed reserves
Value in Group internal Value in Value in
The composition of, and changes balance sheet transfer Allocations balance sheet Allocations balance sheet
in, untaxed reserves: 2000 2001 2001 2001 2002 2002
Tax allocation reserve 1,525 – – 1,525 – 1,525
Accumulated additional depreciation
Land – – 3 3 – 3
Machinery and equipment 2 – (2) – – –
Replacement reserve – 3 (3) – – –
Total 1,527 3 (2) 1,528 – 1,528
Note 17 Provisions for pensions
Provisions for pensions and similar benefits correspond to the actu-
arially 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, 60 (10; 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 founda-
tions merged into one foundation. Pension funds amounting to 0 (0;
0) have been transferred from AB Volvo to the Volvo Pension
Foundation.
AB Volvo’s pension costs in 2002 amounted to 168 (93; 70),
after withdrawal from the Volvo Pension Foundation of – (–; 24).
The accumulated benefit obligation of all AB Volvo’s pension obli-
gations at year-end 2002 amounted to 761, which has been
secured in part through provisions for pensions and in part through
funds in pension foundations. Net asset value in the Pension
Foundation, marked to market, accruing to AB Volvo was 60 lower
than corresponding 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.
Note 18 Other provisions
Other provisions comprise provisions for taxes in the amount of 21 (24; 68).