Volvo 2005 Annual Report Download - page 144

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Parent Company AB Volvo
140 Volvo Group 2005
Note 21 Financial risks and instruments
Volvo’s acc ou nt in g pol ic i e s for fi n a nc i a l inst r um e nt s are de sc r ib e d in
Not e 1 a nd No te 36 to t he con so li d at ed fi nan ci a l st at e me nt s. He dg -
ing tr an sa c t i on s in A B Volvo are c ar r i e d out thro u gh Vol v o Trea sury
AB. Th e Par en t Com pa ny ha s used int er e s t-r ate sw a ps to hedg e
fi nan ci a l lia bi li t ie s of Grou p com pa n ie s . Ma tu r i ti e s of t he s e swa ps
ar e betw ee n 20 0 6 and 20 0 9. Dur i ng 20 0 4 AB Vol v o has use d for-
wa rd exch a ng e con tr a c t s for hed gi ng of short-ter m rec e i va b le an d
lia b il i ty reg a rd in g the amo un t of t he sett l em e nt agre e m en t betw ee n
AB Volvo and Rena ul t SA (Se e Not e 13). Mat ur i t ie s of thes e s con-
tr act s wer e on Janu a ry 26, 20 05 .
December 31, 2004 December 31, 2005
Notional amount Carrying value Fair value Notional amount Carrying value Fair value
Interest-rate swaps
– payable position 4,563 (17) (17) – – –
– receivable position – – – 6,284 13 13
Foreign exchange contracts
– receivable position 1,942 13 13 – – –
Note 22 Personnel
Wages, salaries and other remunerations amounted to 141 (140).
Social costs amounted to 125 (111) of which pension costs, 93 (79).
Of these 4 (53) pertained to Board members and Presidents. The
Company’s outstanding pension obligations to these individuals
amounted to 211 (400).
The number of employees at year-end was 144 (144). Information
on the average number of employees, wages, salaries and other
remunerations including option programs as well as Board members
and senior executives by gender is shown in Note 34 to the consoli-
dat e d fi nanc ia l st a te m en t s .
Absence due to illness 2004 2005
Total absence due to illness in percentage of regular working hours 2.2 2.1
of which, continuous sick leave for 60 days or more, % 70.9 64.6
Absence due to illness in percentage of regular working hours
Men, % 0.8 1.2
Women, % 3.6 3.0
29 years or younger, % 0.9 0.4
30–49 years, % 1.2 2.3
50 years or older, % 3.6 2.2
Ou ts t a nd i n g der iv at i ve in s t r um e n t s for he dg i n g of fi n an c ia l cur r en c y ri sks an d inte r e s t rat e ris ks
re la t e d to fi n an c ia l as s ets a n d lia b il i t i e s
Notes to fi nancial statements