Annual Report 2008 - Securitas

MAIN AcTUArIAL ASSUMPTIONS
2008 2007 2006
Percent (per annum) USA Eurozone Other countries USA Eurozone Other countries USA Eurozone Other countries
Discount rate 1 6.20 5.50–5.75 3.80–7.00 6.00 5.50–5.75 4.70–5.70 5.75–6.00 4.50–4.75 4.50–5.25
Expected return on plan assets 8.50 5.00 5.70–7.00 8.50 5.25 5.70–6.80 8.50 4.80 5.00–6.75
General salary increases 2 n/a 2.00–3.50 3.75–4.00 n/a 2.00–3.50 3.50–4.80 n/a 2.00–3.50 2.50–4.50
Inflation 2 n/a 1.75–2.25 2.00–3.00 n/a 1.75–2.00 2.50–3.30 n/a 1.75–2.00 2.50–3.00
Pension increases 2 n/a 0.75–1.75 1.50–3.75 n/a 1.00–1.75 2.00–4.25 n/a 1.75 2.25–3.00
Health care cost inflation 3 n/a n/a 2.00–10.00 n/a n/a 2.50–8.00 n/a n/a n/a
1 In the USA, the discount rate is derived from the full Citigroup yield curve, using a cash flow matching
approach. In the Eurozone, the discount rate is based on Iboxx Euro AA 10 year +, adjusted for the
duration of the obligations.
The material plans in the category Other countries are Norway (government bonds adjusted for the
duration of the obligations), the U.K. (Iboxx U.K. AA 15 year +) and canada (DEX capital index).
The table above shows the main actuarial assumptions as of December 31,
2008, 2007 and 2006 used to value the defined benefit obligation at the
end of 2008, 2007 and 2006 as well as in determining the pension cost for
2009, 2008 and 2007.
Note 33. Other long-term provisions
The movement in the balance sheet for provisions for pensions and similar
commitments is provided in Note 32. The movement in the balance sheet
for deferred tax liabilities is provided in Note 15.
MSEK
Liability
insurance
related
claims
reserves 1
Provisions
for taxes
Other
provisions Total
Opening balance 724.3 251.5 1,317.1 2,292.9
Reclassification – –18.0 10.7 –7.3
New/increased
provisions 42.2 9.2 262.6 314.0
Provisions utilized –27.3 –113.8 –691.6 –832.7
Reversal of unutilized
provisions –56.0 – –44.5 –100.5
Discontinued operations –196.3 – –213.8 –410.1
Translation differences 116.4 47.5 88.1 252.0
Less short-term items – – –156.3 –156.3
Closing balance 603.3 176.4 572.3 1,352.0
1 Liability insurance-related claims reserves primarily consist of estimated provisions for the portion of
claims payable by the Group, that is its self-retention.
2 Plans in the USA are non-inflation-linked cash balance plans which are closed for future benefit accrual.
3 related to health care plans in canada. The assumption represents the range of current expected health
care cost inflation for the different benefits. This range is expected to fall to 2.00–5.00 percent (depending
on benefit type) by 2020.
Note 34. Short-term loan liabilities 1
MSEK 2008 2007 2006
convertible debenture loans EUr,
2002/2007, series 1–4 2 – – 2,300.0
Total short-term convertible
debenture loans – – 2,300.0
EMTN Nom MEUr 500, 2001/2008,
6.125 % 3 – 4,717.1 –
commercial paper issued 4 1,974.6 2,023.4 1,468.1
Finance leases 102.9 114.6 141.4
Other short-term loans 5 4,197.0 1,720.8 4,001.8
Total other short-term loan
liabilities excluding derivatives 6,274.5 8,575.9 5,611.3
Other derivative positions
Derivatives with negative fair value,
short-term 134.2 39.0 83.5
Total other short-term loan
liabilities 6,408.7 8,614.9 5,694.8
1 For further information regarding financial instruments refer to Note 6.
2 The convertible debenture loan, EUr 2002–2007 series 1–4 fell due on May 2, 2007.
3 The bond loan EMTN Nom MEUr 500, 2001/2008 matured on March 14, 2008 and was in 2007
reported under Other short-term loan liabilities. Previously, this loan has been reported under Other
long-term loan liabilities.
4 commercial paper is issued by the Parent company within the framework of a MSEK 5,000 Swedish
commercial paper program.
5 Other short-term loans include loans raised within the framework of a MUSD 1,100 Multi currency
revolving credit Facility maturing in June 2012. The comparatives also include loans raised within the
framework of a MUSD 250 securitization programme, which matured in June 2008. The MEUR 550
term loan has in its entirety been classified as long-term compared to previously being classified as
short-term. comparatives for year 2007 have been restated.
Note 35. Other current liabilities
Annual report
Notes and comments to the consolidated financial statements
As of December 31, 2008 the following assumptions were used for the
major plans in Securitas concerning mortality: USA – “193 Group Annuity
Mortality Table”. Norway – tables in series “K2005”. canada – UP94-tables.
These tables have been established for use after consultation with the
company’s actuaries and reflect Securitas’ view concerning future mortality
experience.
MSEK 2008 2007 2006
Employee-related items 5,701.2 5,462.3 4,709.4
Accrued interest and financial
expenses 174.9 354.7 279.0
Other accrued expenses and
deferred income 799.0 795.7 515.8
Advance payments from customers 196.4 215.9 177.3
value added tax 938.3 947.2 691.5
Other items 558.0 669.6 590.2
Total other current liabilities 8,367.8 8,445.4 6,963.2
Securitas Annual report 2008
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