Volvo 2011 Annual Report Download - page 112

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MARKETABLE SECURITIES AND LIQUID FUNDS
18
NOTE
Cash and cash equivalents include high liquid interest-bearing securities
that are considered easily convertible to cash. Interest-bearing securities
that fail to meet this definition are recognized as marketable securities.
Marketable securities
Marketable securities comprise mainly interest-bearing securities, dis-
tributed as shown below:
2011 2010
Government securities 136 146
Banks and financial institutions 521 3,527
Real estate financial institutions 6,205 6,094
Total 6,862 9,767
Cash and cash equivalents
2011 2010
Cash in banks 21,206 16,858
Bank certificates11,492 2,286
Time deposits in banks 7,681 3,822
Total 30,379 22,966
1 Bank certificates which matures withinthree months of the date of acquisition.
Cash and cash equivalents at December 31, 2011, include SEK 0.7 billion
(0.7) that is not available for use by the Volvo Group and SEK 9.3 billion
(7.4) where other limitations exist, mainly liquid funds in countries where
exchange controls or other legal restrictions apply. With that it is not
possible to immediately use the liquid funds in other parts of the Group,
however normally there is no limitation for use for the Group’s operation in
the respective country.
SHAREHOLDERS’ EQUITY
19
NOTE
Earnings per share is calculated as income for the period, attributable to
the Parent Company’s shareholders, divided by the Parent Company’s
average number of shares outstanding for the fiscal year. Diluted earnings
per share is calculated as income for the period attributable to the Parent
Company’s shareholders divided by the average number of shares out-
standing plus the average number of shares that would be issued as an
effect of ongoing share-based incentive programs. If during the year there
were potential shares redeemed or expired during the period, these are
also included in the average number of shares used to calculate the earn-
ings per share after dilution.
The share capital of the Parent Company is divided into two series of
shares, A and B. Both series carry the same rights, except that each
Series A share carries the right to one vote and each Series B share carries
the right to one tenth of a vote. The shares quota value is SEK 1.20.
Cash dividend decided by the Annual General Meeting 2011 was SEK
2.50 (0.00) per share or total of SEK 5,068.6 million (0.0).
During 2011 AB Volvo transferred, free of consideration, 929 treasury
B-shares, with a total quota value of 1,114.80 SEK, to participants of Volvo’s
long-term, share-based incentive program for senior executives in the
Volvo Group, as accelerated allotment.
The transferred treasury shares represent an insignificant portion of the
share capital of AB Volvo.
Unrestricted equity in the Parent Company at December 31, 2011
amounted to SEK 32,268 million (31,962).
The cumulative amount of the exchange difference deferred to equity
relating to assets held for sale amount to SEK 33 million (3).
Information regarding
number of shares 2011 2010
Own Series A shares 20,728,135 20,728,135
Own Series B shares 80,264,131 80,265,060
Total own shares 100,992,266 100,993,195
Own shares in % of total
registered shares 4.74 4.74
Outstanding Series A shares 642,766,887 656,873,495
Outstanding Series B shares 1,384,661,067 1,370,553,530
Total outstanding shares 2,027,427,954 2,027,427,025
Total registered Series A shares 663,495,022 677,601,630
Total registered Series B shares 1,464,925,198 1,450,818,590
Total registered shares 2,128,420,220 2,128,420,220
Average number of outstanding
shares 2,027,427,172 2,027,427,025
Change in other reserves (SEK M) Hedge reserve Available-for-sale
reserve Total
Balance at January 1, 2011 87 28 115
Hedge contracts reversed to income (3) – (3)
Tax on hedge contracts reversed to income 1 – 1
Change in fair value of commodity contracts (142) – (142)
Fair value adjustments regarding holding in Deutz – (159) (159)
Fair value adjustments regardingholdings in Japanese companies – 200 200
Fair value adjustments regarding other holdings – (2) (2)
Balance at December 31, 2011 (57) 67 10
ACCOUNTING POLICY
ACCOUNTING POLICY
NOTES TO FINANCIAL STATEMENTS
FINANCIAL INFORMATION 2011
108