Volvo 2010 Annual Report Download - page 126

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NOTES AND COMMENTS
NOTE 16 PROVISIONS FOR PENSIONS
NOTE 17 NON-CURRENT LIABILITIES
NOTE 19 CONTINGENT LIABILITIES
NOTE 18 OTHER CURRENT LIABILITIES
NOTE 20 CASH-FLOW
Provisions for pensions and similar benefits correspond to the actu-
arially calculated value of obligations not insured with third parties or
secured through transfers of funds to pension foundations. The
amount of pensions falling due within one year is included. AB Volvo
has insured the pension obligations with third parties. Of the amount
reported, 0 (0) pertains to contractual obligations within the frame-
work of the PRI (Pension Registration Institute) system.
The Volvo Pension Foundation was formed in 1996. Plan assets
amounting to 224 were contributed to the foundation at its formation,
corresponding to the value of the pension obligations at that time.
Since its formation, net contributions of 25 have been made to the
foundation.
AB Volvo’s pension costs amounted to 104 (55).
The accumulated benefit obligation of all AB Volvo’s pension obli-
gations at year-end 2010 amounted to 611, which has been secured
in part through provisions in the balance sheet and through transfer of
funds to pension foundations. Net asset value in the Pension Founda-
tion, marked to market, accrued to AB Volvo was 48 higher than the
corresponding pension obligations.
Non-current debt matures as follows:
2013 10
2016 or later 7
Total 17
Of the contingent liabilities amounting to 250,606 (254,299),
250,597 (254,041) pertained to Group companies.
Guarantees for various credit programs are included in amounts cor-
responding to the credit limits. These guarantees amount to 243,089
(247,010), of which guarantees on behalf of Group companies totaled
243,089 (247,010).
At the end of each year, the utilized portion amounted to 108,562
(130,961), including 108,476 (130,872) pertaining to Group companies.
2009 2010
Wages, salaries and withholding taxes 102 94
Other liabilities 4 2
Accrued expenses and prepaid income 133 173
Total 239 269
No collateral is provided for current liabilities.
Other adjustments of operating income 2009 2010
Revaluation of shareholdings (4) 116
Group contributions and transfer price
adjustments, current year 14,016 (6,673)
Payments of previous years Group contribu-
tions and transfer price adjustments 1,351 (14,016)
Other (2) 30
Total 15,361 (20,543)
Further information is provided in notes5,6and 7.
Shares and participations in Group companies, net
Investments (11,091) (2,386)
Net investments in shares and
participations in Group companies (11,091) (2,386)
Investments and sales of shares in Group companies are shown in
note 13.
Shares and participations in
non-Group companies, net 2009 2010
Investments (1) (78)
Disposals – 15
Net investments in shares and
participations in non-Group companies (1) (63)
Investments and sales of shares in non-Group companies are pre-
sented in note 13.
Increase in loans
Increase in loans is related to the company’s liability in thegroup
account at Volvo Treasury AB. The liability has increased by 11,457
(6,894).
FINANCIAL INFORMATION 2010
122