Volvo 2008 Annual Report Download - page 110

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Notes to consolidated fi nancial statements
106
THE VOLVO GROUP
Financial information 2008
Pension costs 2007 2008
Current year service costs 877 864
Interest costs 1,380 1,557
Expected return on plan assets (1,653) (1,655)
Actuarial gains and losses168 81
Past service costs
– Unvested 15 14
– Vested 25 39
Curtailments and settlements (4) 167
Termination benefi ts 147 21
Pension costs for defi ned benefi t plans 855 1,088
Pension costs for defi ned contribution plans 3,080 3,462
Total pension costs 3,935 4,550
1 For each plan, actuarial gains and losses are reported as income or expenses, when the accumulated amount exceeds the so called corridor. The income or
expenses are then recognized over the expected average remaining service period of the employees.
Costs for post-employment benefi ts other than pensions 2007 2008
Current year service costs 129 284
Interest costs 319 336
Expected return on plan assets (11) (3)
Actuarial gains and losses141
Past service costs
– Unvested 5 (1)
– Vested 01
Curtailments and settlements (2) 0
Termination benefi ts 32 0
Total costs for post-employment benefi ts other than pensions 476 618
1 For each plan, actuarial gains and losses are reported as income or expenses, when the accumulated amount exceed the so called corridor. The income or
expenses are then recognized over the expected average remaining service period of the employees.
An increase of one percentage point per year in healthcare costs
would change the accumulated post-employment benefi t obligation
as of December 31, 2008 by approximately 200, and the post-employ-
ment benefi t expense by approximately 13. A decrease of one per-
centage point would decrease the accumulated value of obligations
by about 169 and reduce costs by approximately 11. Calculations
made as of December 31, 2008 show an annual increase of 9% in the
weighted average per capita costs of covered healthcare benefi ts; It is
assumed that the percentage will decline gradually to 5% and then
remain at that level.
Obligations in
defi ned benefi t plans Sweden
Pensions
United
States
Pensions
France
Pensions
Great
Britain
Pensions
US Other
benefi ts
Other
plans Total
Obligations at January 1, 2007 7,142 12,017 1,571 4,987 6,199 2,824 34,740
Acquisitions, divestments and other changes 57 688 (8) – 216 1,949 2,902
Current year service costs 259 267 47 90 89 211 963
Interest costs 295 653 60 251 311 115 1,685
Past service costs
– Unvested –2457 ––(10) 449
– Vested –7–––26 33
Termination benefi ts 165 ––––36 201
Curtailments and settlements 7 (1) (1) ––(34) (29)
Employee contributions –––33 ––33
Actuarial (gains) and losses 822 (923) (143) (402) (308) (156) (1,110)
Exchange rate translation – (706) 76 (206) (354) 131 (1,059)
Benefi ts paid (296) (797) (259) (145) (571) (756) (2,824)
Obligations at December 31, 2007 8,451 11,207 1,800 4,608 5,582 4,336 35,984
of which
Funded defi ned benefi t plans 7,847 10,928 – 4,050 3,617 1,884 28,326