Volvo 2005 Annual Report Download - page 113

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Volvo Group 2005 109
Note 21 Marketable securities
Marketable securities consist mainly of interest-bearing securities, distributed as shown below:
2004 2005
Government securities 6,354 4,226
Banks and fi nancial institutions 371 464
Real estate fi nancial institutions 19,220 24,020
Other 10 124
Total 25,955 28,834
Note 22 Cash and cash equivalents
2004 2005
Cash in banks 5,787 5,652
Time deposits in banks 3,004 2,461
Total 8,791 8,113
Note 23 Shareholders’ equity
The share capital of the Parent Company is divided into two series of
shares: A and B. Both series carry the same rights, except that each
Series A share carries the right to one vote and each Series B share
carries the right to one tenth of a vote. The shares quota value is
SEK 6.00.
Total share capital by year end 2004 amounted to 2,649 and was
based on 441,520,885 registered shares. During 2005 share capital
was reduced by 95 through cancellation without repayment of
3,084,619 Series A shares and 12,752,222 Series B shares. After
reduction share capital amounts to 2,554 and is based on
425,684,044 registered shares.
The total number of registered shares by year end 2005
amounted to 425,684,044. Volvo held 5% of the registered shares
at year end 2005, 21,220,535 shares whereof Series A shares
4,145,627 and Series B shares 17,074,908. At year end 2004, Volvo
held 7% of the registered shares, 31,391,043 shares whereof Series
A shares 7,075,246 and Series B shares 24,315,797. The total
number of outstanding Volvo shares by year end 2005 amounted to
404,463,509 whereof Series A shares 131,374,699 and Series B
shares 273,088,810. The average number of outstanding shares
was 405,242,037 in 2005.
Cash dividend decided by the Annual General Meeting 2005 was
12:50 (8:00) per share or total 5,055 (3,356).
Unrestricted equity in the Parent Company at December 31, 2005
amounted to 41,220.
Changes in outstanding Volvo shares
Balance December 31, 2004 410,129,842
Buy-back of shares in 2005 (5,730,000)
Share-based incentive program 63,667
404,463,509
Note 24 Provisions for post-employment benefi ts
Post-employment benefi ts, such as pensions, healthcare and other
benefi ts are mainly settled by means of regular payments to inde-
pendent authorities or bodies that assume pension obligations and
administer pensions through defi ned contribution plans. The remain-
ing post-employment benefi ts are defi ned benefi t plans; that is, the
obligations remain within the Volvo Group or are secured by own
pension foundations. Costs and the obligations at the end of period
for defi ned benefi t plans are calculated based on actuarial assump-
tions and measured on a discounted basis. The Volvo Group defi ned
benefi ts plans relate mainly to subsidiaries in the US and comprise
both pensions and other benefi ts, such as healthcare. Other large-
scale defi ned benefi t plans apply for salaried employees in Sweden
(mainly through the Swedish ITP pension plan) and employees in
France and Great Britain. See note 1 for further information about
the accounting principles.