Volvo 2006 Annual Report Download - page 152

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148 Financial information 2006
Parent Company AB Volvo
Note 21 Financial risks and instruments
Volvo’s accounting policies for fi n ancial instruments are described in
Note 1, Note 36 and Note 37 to the consolidated fi n ancial state-
ments. Hedging transactions in AB Volvo are carried out through
Volvo Treasury AB. The Parent Company has used interest-rate
swaps to hedge fi nancial liabilities of Group companies. Maturities of
these swaps are between 2007 and 2009. During 2004 AB Volvo
has used forward exchange contracts for hedging of short-term
receivable and liability regarding the amount of the settlement
agreement between AB Volvo and Renault SA (See note 13). Maturi-
ties of theese contracts were on January 26, 2005.
December 31, 2004 December 31, 2005 December 31, 2006
Notional Carrying Notional Carrying Notional Carrying
amount value Fair value amount value Fair value amount value Fair value
Interest-rate swaps
– payable position 4,563 (17) (17) – – – 5,430 (4) (4)
– 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 204 (141;
140). Social costs amounted to 142 (125; 111) of which pension
costs, 105 (93; 79). Of these 32 (4; 53) pertained to Board mem-
bers and Presidents. The Company’s outstanding pension obliga-
tions to these individuals amounted to 141 (211; 400).
The number of employees at year-end was 176 (144; 144). Infor-
mation 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 consolidated fi n ancial statements.
Absence due to illness 2004 2005 2006
Total absence due to illness in percentage of regular working hours 2.2 2.1 1.4
of which, continuous sick leave for 60 days or more, % 70.9 64.6 44.0
Absence due to illness in percentage of regular working hours
Men, % 0.8 1.2 0.8
Women, % 3.6 3.0 2.1
29 years or younger, % 0.9 0.4 0.7
30–49 years, % 1.2 2.3 0.9
50 years or older, % 3.6 2.2 2.4
Outstanding derivative instruments for hedging of fi nancial currency risks and interest rate risks
related to fi nancial assets and liabilities
Notes to financial statements