Electrolux 2010 Annual Report Download - page 158

Healthcare benefits sensitivity analysis
2010 2009
One-percentage
point increase One-percentage point decrease One-percentage point increase One-percentage point decrease
Effect on aggregate of service cost and interest cost 11 –9 12 –10
Effect on defined benefit obligation 210 –181 202 –174
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 in the Group under IFRS. The pension benefits
are secured by contributions to a separate fund or recorded as a
liability in the balance sheet. The accounting principles used in the
Parent Company’s separate financial statements differ from the
IFRS principles, mainly in the following:
• The pension liability calculated according to Swedish accounting
principles does not take into account future salary increases.
• The discount rate used in the Swedish calculations is set by the
Swedish Pension Foundation (PRI) and was 4.0% (4.0). The rate
is the same for all companies in Sweden.
• Changes in the discount rate and other actuarial assumptions
are recognized immediately in the profit or loss and the balance
sheet.
• Deficit must be either immediately settled in cash or recognized
as a liability in the balance sheet.
• Surplus cannot be recognized as an asset, but may in some
cases be refunded to the company to offset pension costs.
Amounts for annual periods
December 31,
2010 2009 2008 2007 2006
Defined benefit obligation –21,723 –22,399 –23,185 –20,597 –21,883
Plan assets 19,409 19,008 13,989 14,008 14,010
Surplus/deficit –2,314 –3,391 –9,196 –6,589 –7,873
Experience adjustments on plan liabilities 425 222 217 –221 221
Experience adjustments on plan assets 634 1,130 –1,665 –38 121
Change in fair value of plan assets
Funded
Opening balance, January 1, 2009 1,257
Actual return on plan assets 269
Contributions and compensation to/from the fund 61
Closing balance, December 31, 2009 1,587
Actual return on plan assets 110
Contributions and compensation to/from the fund 61
Closing balance, December 31, 2010 1,758
Amounts recognized in balance sheet
December 31,
2010 2009
Present value of pension obligations –1,636 –1,591
Fair value of plan assets 1,758 1,587
Surplus/deficit 122 –4
Limitation on assets in accordance with Swedish
accounting principles –492 –370
Net provisions for pension obligations –370 –374
Whereof reported as provisions for pensions –370 –374
Change in present value of defined benefit pension
obligation for funded and unfunded obligations
Funded Unfunded Total
Opening balance, January 1, 2009 1,179 356 1,535
Current service cost 9 21 30
Interest cost 51 16 67
Other increase of present value 25 28 53
Benefits paid –47 –47 –94
Closing balance, December 31, 2009 1,217 374 1,591
Current service cost 31 13 44
Interest cost 62 19 81
Other decrease of present value — — —
Benefits paid –44 –36 –80
Closing balance, December 31, 2010 1,266 370 1,636
annual report 2010 | part 2 | notes, all amounts in SEKm unless otherwise stated
Cont. Note 22
62