Volvo 2011 Annual Report Download - page 138

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Provisions for pensions and similar benefits correspond to the actuarially
calculated value of obligations not insured with third parties or secured
through transfers of funds to pension foundations. The amount of pen-
sions falling due within one year is included. AB Volvo has insured the
pension obligations with third parties. Of the amount reported, 8 (0) per-
tains to contractual obligations within the framework of the PRI (Pension
Registration Institute) system.
The Volvo Pension Foundation was formed in 1996. Plan assets amount-
ing 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 69 (81).
In previous years, part of social costs has been reclassified to pension
costs. In the 2011 Annual Report, this part has not been reclassified to pen-
sion costs as an adaption to praxis. Pension costs for 2010 has been
adjusted downwards with 23.
The accumulated benefit obligation of all AB Volvo’s pension obligations
at year-end 2011 amounted to 646, 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 Foundation, marked to market,
accrued to AB Volvo was 9 lower than the corresponding pension obliga-
tions. A provision was recorded to cover this deficit.
Other provisions include provisions for restructuring measures of 42 (–).
Of the contingent liabilities amounting to 270,346 (250,606), 270,336
(250,597) pertained to Group companies.
Guarantees for various credit programs are included in amounts cor-
responding to the credit limits. These guarantees amount to 261,576
(243,089), of which guarantees on behalf of Group companies totalled
261,576 (243,089).
At the end of each year, the utilized portion amounted to 125,123
(108,562), including 125,113 (108,476) pertaining to Group companies.
2011 2010
Wages, salaries and withholding taxes 70 94
Other liabilities 19 2
Accrued expenses and prepaid income 146 173
Total 235 269
No collateral is provided for current liabilities.
Other adjustments of operating income 2011 2010
Revaluation of shareholdings (46) 116
Group contributions and transfer price
adjustments, current year (7,110) (6,673)
Settlements of previous year’s Group contri-
butions and transfer price adjustments 6,673 (14,016)
Other 79 30
Total (404) (20,543)
Further information is provided in Notes 5, 6 and 7.
Shares and participations in non-Group
companies, net 2011 2010
Investments (508) (78)
Disposals – 15
Net investments in shares and
participations in non-Group companies (508) (63)
Investments and sales of shares in non-Group companies are presented
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281 (11,457).
Shares and participations in Group
companies, net 2011 2010
Investments (94) (2,386)
Disposals 1 –
Net investments in shares and
participations in Group companies (93) (2,386)
Investments and sales of shares in Group companies are shown in
Note13.
PROVISIONS FOR PENSIONS
16
NOTE
OTHER PROVISIONS
17
NOTE
OTHER CURRENT LIABILITIES
19
NOTE
CONTINGENT LIABILITIES
20
NOTE
CASH-FLOW
21
NOTE
NON-CURRENT LIABILITIES
18
NOTE
Non-current debt matures as follows:
2013 11
2016 or later 7
Total 18
FINANCIAL INFORMATION 2011
134
NOTES TO FINANCIAL STATEMENTS