Electrolux 2004 Annual Report Download - page 65

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Electrolux Annual Report 2004 61
Notes
Parent Company
According to Swedish accounting principles adopted by the Parent
Company, defined benefit liabilities are calculated based upon officially
provided assumptions which differ from the assumptions used under
RR 29. The benefits are secured by contributions to a separate fund or
recorded as a liability in the balance sheet. At December 31, 2004, the
Parent Company reported a pension liability of SEK 269m (251 and
245 in 2003 and 2002 respectively).
Note 24 Other provisions
Group Parent Company
Provisions Warranty Warranty
for restructuring commit- Provisions for commit-
Acquisitions Other ments Other Total restructuring ments Other Total
Closing balance Dec. 31, 2002 154 1,793 1,418 2,217 5,582 197 81 82 360
Provisions made — — 1,271 1,094 2,365 — — — —
Provisions used –136 –1,280 –957 –684 –3,057 –103 –9 –1 –113
Unused amounts reversed — — –83 –45 –128 — — — —
Exchange-rate differences –1 –62 –87 –185 –335 — — — —
Closing balance Dec. 31, 2003 17 451 1,562 2,397 4,427 94 72 81 247
Provisions made — 1,203 992 393 2,588 182 70 11 263
Provisions used –4 –463 –876 –332 –1,675 –127 –75 –21 –223
Unused amounts reversed — –39 –79 –50 –168 — — –8 –8
Exchange-rate differences — –58 –49 –104 –211 — — — —
Closing balance Dec. 31, 2004 13 1,094 1,550 2,304 4,961 149 67 63 279
Provisions for restructuring represent the expected costs to be incurred
in the coming years as a consequence of the Group’s decision to close
some factories, rationalize production and reduce personnel, both for
newly acquired and previously owned companies. The amounts are
based on management’s best estimates and are adjusted when changes
to these estimates are known. The majority of restructuring plans are
expected to be completed during 2005, and the amounts have not
been discounted. Provisions for warranty commitments are recognized
as a consequence of the Group’s policy to cover the cost of repair of
defective products. Warranty is normally granted for 1 to 2 years after
the sale. Other provisions include mainly provisions for tax, environ-
mental or other claims, none of which is material to the Group.
Note 23 continued
Other accrued expenses include accruals for fees, advertising and
sales promotion, bonuses, extended warranty, rebates and other items.
Note 25 Accrued expenses and prepaid income
Group Parent Company
2004 2003 2002 2004 2003 2002
Accrued holiday pay 1,150 1,139 1,214 172 176 172
Other accrued payroll costs 1,280 1,267 1,217 245 182 136
Accrued interest expenses 168 202 199 158 173 149
Prepaid income 483 637 1,040 — 7 3
Other accrued expenses 4,921 4,779 4,589 361 488 344
Total 8,002 8,024 8,259 936 1,026 804