Electrolux 1999 Annual Report Download - page 40

38 Electrolux Annual Report 1999
Group Parent company
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Note 4. OTHER OPERATING EXPENSE (SEKm) 1999 1998 1999 1998
Loss on sale of:
Tangible fixed assets –42 –50 –4 –27
Operations and shares –60 0–333 –16
Shares of income in associated companies –11 –24 ——
Depreciation on goodwill –210 –234 ——
Total –323 –308 –337 –43
Group
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Note 5. ITEMS AFFECTING COMPARABILITY (SEKm) 1999 1998
Capital gains 1,625 1,153
Capital losses —–189
Provision for pension litigation –1,841 —
Total –216 964
Note 6. LEASING
Group Parent company
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Note 7. INTEREST INCOME AND EXPENSE (SEKm) 1999 1998 1999 1998
Interest income
Interest income and similar items
From subsidiaries ——450 263
From others 1,061 1,332 170 252
Income from other securities and
receivables classified as fixed assets
Dividends from subsidiaries ——3,365 2,166
Dividends from others 15 17 22
Total interest income 1,076 1,349 3,987 2,683
Interest expense
Interest expense and similar items
To subsidiaries ——–259 –249
To others –2,198 –2,499 –994 –1,302
Exchange differences
On loans and forward contracts
as hedges for equity in subsidiaries —––588 –60
On other loans and borrowings, net 60 –28 36 50
Total interest expense –2,138 –2,527 –1,805 –1,561
Premiums on forward contracts intended
as hedges for equity in subsidiaries have
been amortized as interest in the amount
of SEK 104m (–29). In the consolidated
accounts, exchange differences in the par-
ent company on loans and forward con-
tracts intended as hedges for equity in
subsidiaries have been charged to equity
after deduction of taxes.The net change
in equity is SEK 345m (–864). Group
interest income includes income of
SEK 137m (26) and interest expense of
SEK 132m (26) referring to interest
arbitrage transactions. Receivables and
liabilities referring to interest arbitrage
amounted to SEK 4,119m (3,308) at
year-end, and have been excluded.
In 1999 the Group rented 1.4 million
square meters in accordance with opera-
tional leasing contracts, with average
remaining contract periods of 2.5 years.
Rental costs amounted to SEK 620m,
and contracted future leasing costs to
SEK 1,550m.The Group also has leasing
contracts for office equipment on normal
commercial terms.
Capital gains in 1999 referred to divest-
ment of the operation in the amount of
SEK 1,625m in food and beverage vend-
ing machines. Regarding the provision
for pension litigation, see page 22. In
1998, capital gains referred to divestment
of operations in the amount of SEK 87m
in interior decoration, SEK 718m in
kitchen and bathroom cabinets, SEK
185m in professional cleaning equip-
ment, and SEK 163m in the Gotthard
Nilsson group. Costs for divestments
were charged in 1998 in the amount of
SEK 89m for the holding in CEFEMO
and SEK 100m for the Lux operations.
Notes to the financial statements