Saab 2012 Annual Report Download - page 112

Group
MSEK 31-12-2012 31-12-2011
Liabilities due for payment more than five years
after closing day 32 32
Parent Company
MSEK 31-12-2012 31-12-2011
Value-added tax 81 163
Preliminary tax 116 73
Other 432 251
Total 629 487
Liabilities due for payment more than five years
after closing day 12 12
Other liabilities in the Parent Company include both interest-bearing and
non-interest-bearing liabilities. For a comparison with the Group, see also
Note .
Saab does not consider there to be a signicant dierence between book
and fair value.
NOTE 40 Accrued Expenses and Deferred Income
Group Parent Company
MSEK 31-12-2012 31-12-2011 31-12-2012 31-12-2011
Accrued expenses
Accrued project costs 1,061 1,620 513 1,134
Vacation pay liability 877 787 672 584
Expected invoices 333 467 262 419
Social security expenses 463 444 348 321
Personnel liabilities 204 238 131 171
Accrued leasing costs 79 103 - -
Cost of customer commit-
ments in regional aircraft 166 95 166 95
Claims reserve 78 57 29 2
Royalties and commissions 121 35 107 22
Accrued interest 16 23 16 23
Other 277 223 231 50
Total accrued expenses 3,675 4,092 2,475 2,821
Deferred income
Liabilities to customers 3,039 4,038 2,711 3,628
Prepaid insurance
compensation 244 417 - -
Retained project interest 8 12 8 12
Capitalised changes in value
related to forward contract
rollovers - - 362 578
Other 27 70 17 67
Total deferred income 3,318 4,537 3,098 4,285
Total 6,993 8,629 5,573 7,106
Saab does not consider there to be a signicant dierence between book and
fair value.
NOTE 41 Financial Risk Management and
Financial Instruments
Saab’s nancial assets and liabilities and contractual obligations give rise to
nancial risks. ese risks are managed to a large extent with various nan-
cial instruments.
Financial risk management
e Board of Directors of Saab has approved a Group Treasury Policy, which
provides an overall description of the management of nancial risks and
treasury operations. e goal is to identify and actively manage nancial risks
in order to reduce the negative impact on the Group’s results, competitive
strength and nancial exibility.
e nancial risks are dened as follows:
t Foreign currency risk
t Interest rate risk
t Liquidity and nancing risk
t Commodity risk
t Credit and counterparty risk
Saab uses derivatives primarily to:
t convert anticipated commercial cash ows in foreign currency to 
t convert borrowings in , or surpluses in , to the currencies in
which assets are denominated (primarily relates to aircra that Saab
owns in its leasing eet)
t convert the xed interest periods in leases to coincide with leasing rev-
enue and the desired xed interest rates for other assets and liabilities
Responsibility for managing the Group’s nancial risks and developing meth-
ods and principles to manage nancial risks is centralised in Group Treasury.
e operating business areas have directives and processes that describe how
nancial risks shall be managed. Furthermore, Group Management has
issued detailed directives and guidelines for Group Treasury’s operations.
Management of insurance is centralised in the Group’s insurance company,
Lansen Försäkrings , where external transactions are handled as well. Cus-
tomer nance, guaranty and nance issues are also managed by Group Treasury.
e Group’s internal bank, Saab Treasury, is responsible for the Group’s
cash management, nancing, management of interest rate and currency risks
and also electricity risks. Saab has an agreement with an external party to man-
age the Group’s electricity risks through discretionary management. Other
commodity risk is managed primarily through contractual clauses.
To a limited extent, the Group Treasury Policy allows proprietary trading
in currency and xed income derivatives. e main purpose of this trading is
to gain access to qualitative market information and maintain a high level of
market expertise. Saab Treasury has a risk mandate expressed as a (Value at
Risk) of   (), which is divided between management of economic
risks in the Tender to Contract portfolio, trading and electricity derivatives.
During the year, approximately   was allocated to the trading portfolio
and approximately   to the Tender to Contract portfolio. VaR is a proba-
bility-based method based on historical price uctuations and correlations
and is considered a standard in the nancial industry. e method provides a
measure of the probability of the maximum loss over a specic number of
days. Saab uses three days and a -per cent probability. e Treasury Risk
Analysis unit reports each portfolio’s risk dened according to established risk
measures to Group Management on a daily basis.
Financial instruments
Financial assets in the Group mainly comprise accounts receivable, accrued
income, interest-bearing receivables, liquid assets, xed income investments
and derivatives with positive market values. Saab’s nancial liabilities mainly
comprise interest-bearing liabilities, accounts payable, accrued expenses and
derivatives with negative market values. e following tables show a subdi-
vided statement of nancial position categorised and classied according to
 . A more detailed description of the categories can be found in Note ,
Accounting principles.
NOTE 39, CONT.
FINANCIAL INFORMATION > NOTES
108 SAAB ANNUAL REPORT 2012