Annual Report 2008 - Securitas

84 Annual report
Notes and comments to the consolidated financial statements
The table below discloses carrying values and fair values of financial instruments
according to the categories in Note 2.
FINANcIAL INSTrUMENTS By cATEGOry – cArryING AND FAIr vALUES
Assets
Financial assets
at fair value through
profit and loss
carrying
value
2008 2007
Fair
value
carrying
value
Fair
value
Other interest-bearing
current assets 41.5 41.5 19.5 19.5
Total 41.5 41.5 19.5 19.5
Loans and receivables
Interest-bearing financial
non-current assets 150.6 150.6 273.2 273.2
Other long-term
receivables 1 338.0 338.0 303.3 303.3
Accounts receivable 9,962.6 9,962.6 9,889.4 9,889.4
Other current receivables 2 553.0 553.0 721.7 721.7
Liquid funds 3,951.5 3,951.5 4,350.7 4,350.7
Total 14,955.7 14,955.7 15,538.3 15,538.3
Liabilities
Financial liabilities
at fair value through
profit and loss
Other short-term loan
liabilities 134.2 134.2 39.0 39.0
Total 134.2 134.2 39.0 39.0
Financial liabilities
designated for hedging
Other long-term loan
liabilities 3,295.4 3,295.4 3,928.4 3,928.4
Other short-term loan
liabilities 2,341.7 2,341.7 5,212.6 5,212.6
Total 5,637.1 5,637.1 9,141.0 9,141.0
Other financial liabilities
Other long-term loan
liabilities 3,730.5 3,730.5 3,406.0 3,406.0
Other long-term liabilities 3 133.9 133.9 87.2 87.2
Other short-term loan
liabilities 3,932.8 3,932.8 3,363.3 3,363.3
Accounts payable 977.0 977.0 1,247.2 1,247.2
Other current liabilities 4 2,585.7 2,585.7 2,834.6 2,834.6
Total 11,359.9 11,359.9 10,938.3 10,938.3
Derivatives designated
for hedging
Interest-bearing financial
non-current assets – – 13.1 13.1
Other interest-bearing
current assets 0.9 0.9 1,429.4 1,429.4
Other long-term loan
liabilities 122.5 122.5 14.6 14.6
Total 123.4 123.4 1,457.1 1,457.1
1 Excluding all pension balances 63.6 63.6 76.2 76.2
2 Excluding prepaid expenses 471.1 471.1 650.3 650.3
3 Excluding pension balances 67.7 67.7 58.3 58.3
4 Excluding staff-related
accrued expenses 5,782.1 5,782.1 5,610.8 5,610.8
Securitas Annual report 2008
Note 7. Transactions with related parties
Joint ventures
The Securitas Group includes only one company, Securitas Direct S.A.
(Switzerland), in which its share of the voting rights is 50 percent. Due to
the negligible impact of this company on the Group’s earnings and financial
position, it is not reported separately in the consolidated statement of income
or balance sheet. The company is included under Other in the Group’s
segment reporting as per below:
MSEK 2008 2007 2006
Total sales 52 45 44
Operating income before amortization 8 6 4
Operating income after amortization 8 6 4
Operating non-current assets 12 9 8
Accounts receivable 4 4 4
Other assets 12 5 6
Other liabilities 18 9 7
Total operating capital employed 10 9 11
Goodwill 9 8 7
Total capital employed 19 17 18
Other
Information on the remuneration to the Board of Directors and Senior Management
is provided in Note 8. Information on total payroll expenses for the
Board of Directors and the Presidents of the Group is provided in Note 12.
For information on the Parent company’s transactions with related parties,
refer to Note 41 and Note 44.
Note 8. Remuneration to the board of directors
and senior management
General
Principles
The chairman of the Board and the Directors receive fees in accordance
with the decision of the Annual General Meeting. Separate fees are paid for
committee work. Neither the President and cEO nor the employee representatives
receive directors’ fees.
The Annual General Meeting on April 17, 2008 decided upon guidelines
for remuneration to the Board of Directors and senior management regarding
2008 in accordance with the following:
The fundamental principle is that remuneration and other terms of
employment for management shall be competitive and in accordance with
market conditions, in order to ensure that the Securitas Group will be able
to attract and keep competent management employees.
The total remuneration to management shall consist of a fixed basic
salary, variable remuneration, pensions and other benefits.
In addition to a fixed annual salary, the Group Management may also
receive variable remuneration, based on the outcome in relation to financial
goals and growth targets within the individual area of responsibility (Group
or division). The variable remuneration shall amount to a maximum of 50
percent of the fixed annual salary for the President and CEO and a maximum
of 35–200 percent of the fixed annual salary for other individuals of the
Group Management.
The undertakings of the company as regards variable remuneration,
including previously adopted long-term incentive programs, to the concerned
individuals may, at maximal outcome within all divisions during 2008,
amount to a maximum of MSEK 43.
The pension rights of management employees shall be applicable as
from the age of 65 at the earliest and the entire Group Management shall be
subject to defined contribution pension plans for which insurance premiums