Volvo 2013 Annual Report Download - page 148

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 defi nition are recognized as marketable securities.
Marketable securities
Marketable securities comprise mainly of interest-bearing securities, dis-
tributed as shown below:
Dec 31,
2013 Dec 31, 2012
Government securities 387 131
Banks and fi nancial institutions 917 494
Real estate fi nancial institutions 1,287 2,505
B/S Marketable securities
as of December 31 2,591 3,130
Cash and cash equivalents
Dec 31,
2013 Dec 31, 2012
Cash in banks 23,765 22,160
Bank certifi cates1456 1,019
Time deposits in banks 2,747 2,028
B/S Cash and cash equivalents
as of December 31 26,968 25,207
1 Bank certifi cates which matures within three months of the date of acquisition.
Cash and cash equivalents as of December 31, 2013, include SEK 0.2
billion (0.2) that is not available for use by the Volvo Group and SEK 7.7
billion (9.4) where other limitations exist, mainly liquid funds in countries
where exchange controls or other legal restrictions apply. Therefore it is
not possible to immediately use the liquid funds in other parts of the Volvo
Group, however normally there is no limitation for use for the Volvo Group’s
operation in the respective country.
ACCOUNTING POLICY
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 fi scal 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 car-
ries the right to one tenth of a vote. The shares quota value is SEK 1.20.
Cash dividend 2013, decided by the Annual General Meeting 2012,
was SEK 3.00 (3.00) per share or totally SEK 6,083.7 M (6,082.5).
During 2013 AB Volvo transferred, free of consideration, 420,856 treas-
ury B-shares, with a total quota value of 505,027.20 SEK, to participants in
the long-term, share-based incentive program for Group and senior exec-
utives in the Volvo Group, as accelerated allotment. The transferred treasury
shares represent an insignifi cant portion of the share capital of AB Volvo.
During 2013 AB Volvo converted a total of 27,245,422 Series A shares
to Series B shares.
Unrestricted equity in the Parent Company as of December 31, 2013
amounted to SEK 24,693 M (31,346).
Refer to Note 27 regarding the Volvo Group long-term incentive program.
Information regarding
number of shares Dec 31, 2013 Dec 31, 2012
Own Series A shares 20,728,135 20,728,135
Own Series B shares 79,592,353 80,013,209
Total own shares 100,320,488 100,741,344
Own shares in % of total registered
shares 4.71 4.73
Outstanding Series A shares 498,570,818 525,816,240
Outstanding Series B shares 1,529,528,914 1,501,862,636
Total outstanding shares 2,028,099,732 2,027,678,876
Total registered Series A shares 519,298,953 546,544,375
Total registered Series B shares 1,609,121,267 1,581,875,845
Total registered shares 2,128,420,220 2,128,420,220
Average number of
outstanding shares 2,027,915,094 2,027,521,257
Earnings per share
The long-term share-based incentive programs decided by the Annual
General Meeting 2011 create a dilution effect in 2013 of 0.01 SEK.
ACCOUNTING POLICY
NOTE 18 MARKETABLE SECURITIES AND LIQUID FUNDS
NOTE 19 EQUITY AND NUMBER OF SHARES
144
FINANCIAL INFORMATION 2013