Volvo 2009 Annual Report Download - page 101

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Instead Mack Trucks has an obligation to fund the newly established
fund over 5 years. As a result of the agreement the operating income
of Mack Trucks was charged by 877 (USD 110 M), whereof 1,194 con-
cerning settlement of post-employment benefits other than pensions
and 317 in reduced pension costs from a change in past service costs.
The obligation increased with the same amount. Interest on the obliga-
tion started accruing from October 1, 2009. By that, SEK 4,015 billion
(USD 525 M), formerly reported as obligation has been reclassified a
financial liability. Therefore the obligation decreased by 4,282, the plan
assets by 73 and unrecognized actuarial losses by 194. During 2009,
Volvo contributed 0 (0) to the American pension plans.
During 2009 Volvo has made extra contributions to the pension
plans in Great Britain in the amount of SEK 113 M (147).
In 2010, Volvo estimates to transfer an amount not exceeding SEK
1 billion to pension plans.
Note 25 Other provisions
Value in
balance
sheet
2008 Provisions Reversals Utili zations
Acquired
and
divested
companies Translation
differences Reclassi-
fications
Value in
balance
sheet
2009
Whereof
due
within 12
months
Whereof
due after
12 months
Warranties 10,354 5,762 (1,381) (6,519) (69) (193) (7) 7,947 4,926 3,021
Provisions in insurance
operations 509 149 (23) (95) –(35) –505 1504
Restructuring measures 368 682 (72) (262) 0(4) (5) 707 589 118
Provisions for residual value
risks 898 713 (57) (460) (1) (26) (6) 1,061 457 604
Provisions for service contracts 478 63 (24) (127) 0 2 73 465 214 251
Dealer bonus 1,897 1,743 (123) (1,904) (23) (8) (267) 1,315 1,191 124
Other provisions 4,515 2,228 (520) (2,233) (2) (40) (101) 3,847 2,109 1,738
Total 19,019 11,340 (2,200) (11,600) (95) (304) (313) 15,847 9,487 6,360
Long-term provisions as above is expected to be settled within 2 to 3 years.
Note 26 Non-current liabilities
The listing below shows the Group’s non-current liabilities in which the
largest loans are distributed by currency. Most are issued by Volvo
Treasury AB. Information on loan terms is as of December 31, 2009.
Volvo hedges foreign-exchange and interest-rate risks using derivative
instruments. See Note 36.
Bond loans Actual interest rate,
Dec 31, 2009, % Effective interest rate,
Dec 31, 2009, % 2008 2009
EUR 2003–2009/2011–2017 1.51–9.92 1.51–9.92 21,903 26,428
SEK 2006–2009/2011–2017 0.83–8.53 0.83–8.53 12,183 16,174
JPY 2001/2011 3.10 3.10 86 79
USD 2009/2015 5.98 5.98 1,626 5,381
NOK 2009/2011–2012 4.25–5.04 4.25–5.14 –557
GBP 2009/2014 6.13 6.27 –572
Total1 35,798 49,191
1 Whereof loans raised to finance the credit portfolio of the customer financing operations 12,302 (17,787).
97