Annual Report in English - Consilium

note 19 PRovIsIons
Group
Provisions 2011 2010
provisions for pensions etc. 5.8 11.5
provision for warranty obligations 5.2 6.5
provisions for additional purchase consideration 11.0 17.4
other provisions 0.0 8.6
Total 22.0 44.0
The subsidiaries provide a certain type of warranty service and undertake to repair
or replace parts not performing satisfactorily. A provision of seK 5.2 (6.5) million for
expected warranty claims was recognised at the reporting date, based on previous
experience of the level of repairs and replacement parts. Warranty obligations are
normally valid for two years.
A provision of seK 17.4 million for a partially performance-based additional purchase
consideration was made in 2010. under an agreement, the additional purchase
consideration will be paid over 7 years. in 2011, the amount declined as a result of
payments and exchange rate differences.
Group
Provisions for pensions etc. 2011 2010
provisions at beginning of period 11.5 11.3
provisions during the period 2.7 1.8
Repayments -8.4 -1.6
provisions at end of period 5.8 11.5
unrecognised gains and losses amounted to seK 0.0 (0.0) million.
Group
Pensions 2011 2010
provisions for pensions and similar obligations:
Greece 0.1 –
netherlands 0.0 1.6
italy 5.7 4.5
united Arab emirates – 5.4
Total 5.8 11.5
Group
the main actuarial assumptions used: 2011 2010
discount rate 4.8% 4.5%
future salary increases 1.5% 3.5%
future pension increases 3.0% 3.0%
expected return on plan assets 1.0% 1.0%
inflation 2.0% 3.0%
This is an average of the actuarial assumptions.
Group
Amounts recognised in the income statement: 2011 2010
Current service cost 0.7 0.6
interest expenses 0.2 0.2
Actuarial gains -0.1 -0.3
Total 0.8 0.5
Amounts recognised in the balance sheet,
Group
calculated by reference to
2011 2010
present value of unfunded obligations 5.8 6.6
fair value of plan assets 0.0 0.5
5.8 7.1
notes
Pension provisions
opening balance 1 Jan 2010 11.3
provisions during the year 1.8
Amounts used during the year –
Reversals during the year -1.6
Translation differences –
Closing balance 31 dec 2010 11.5
provisions during the year 2.7
Amounts used during the year –
Reversals during the year -8.4
Translation differences –
Closing balance 31 dec 2011 5.8
included in non-current liabilities 31 december 2010 11.5
included in non-current liabilities 31 december 2011 5.8
Defined benefit pension plans
The Group has defined benefit pension plans, under which employees are entitled to
post-employment benefits based on the final salary and length of service. These pension
plans are in the netherlands and italy.
2011 2010 2009 2008 2007
As at 31 december
present value of defined-benefit
obligations 5.8 6.6 6.8 7.0 6.5
fair value of negotiation assets – 0.5 0.8 0.9 0.3
deficit/surplus in the plan
experience-based adjustments of
5.8 7.1 7.6 7.9 6.8
defined-benefit obligations
experience-based adjustments of
– – – – –
defined-benefit obligations – – – – –
Pension expenses 2011 2010
Total pension costs recognised in the
consolidated income statement are as follows:
Total cost of defined benefit plans 2.2 0.9
Total cost of defined contribution plans 17.0 15.9
Total pension costs 19.2 16.8
Pension expenses 2011 2010
Allocation of pension costs in the
consolidated income statement:
distribution costs 5.2 6.4
Administrative expenses 14.0 10.4
Total 19.2 16.8
Pension insurance with Alecta
The retirement benefit and family pension obligation for employees in sweden is
covered by insurance with Alecta. According to statement uRA 42 issued by the
swedish financial Accounting standards Council’s emerging issues Task force, this is a
multi-employer defined benefit plan. for the 2011 financial year, the Group did not have
access to sufficient information to enable it to report this plan as a defined benefit plan.
Consequently, the iTp pension plan, insured through Alecta, is reported as a defined
contribution plan. Alecta’s surplus may be distributed to policyholders and/or the
insured parties. The collective consolidation level is the market value of Alecta’s assets
as a percentage of its insurance obligations calculated by reference to Alecta’s actuarial
assumptions. This is not consistent with iAs 19.
Post-employment medical benefits.
The Group does not have any post-employment medical benefits.
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