ANNUAL REPORT 2004 - Skanska

Note 28 continued
Provisions for pensions in accordance with
the Security of Income Act, Parent Company
Parent Company 2004 2003
Pension commitments 1,063 1,072
Plan assets –907 –858
Provisions for pensions according to the balance sheet 156 214
Reconciliation, provisions for pensions
Parent Company 2004 2003
Opening balance, January 1 214 302
Pension expenses 35 –19
Benefits paid –78 –62
Acquired
Reclassifications –15 –7
Provisions for pensions according to the balance sheet 156 214
Actuarial assumptions
Group Sweden Norway U.K. U.S. Average 1
2004
Discount rate, January 1 5.75% 5.50% 5.50% 5.50% 5.60%
Discount rate, December 31 5.00% 5.25% 5.50% 5.50% 5.25%
Expected return
on plan assets 6.50% 5.90% 7.10% 6.50% 6.55%
– of which, equities 8.00% 9.00% 7.50% 8.00% 8.05%
– of which,
interest-bearing securities 5.00% 5.50% 4.50% 4.00% 4.90%
Expected wage and salary
increase, December 31 3.00% 3.30% 4.25% 4.40% 3.60%
Expected inflation,
December 31 2.00% 2.50% 2.75% 2.90% 2.40%
2003
Discount rate, January 1 5.75% 6.00% 5.50% 5.50% 5.70%
Discount rate, December 31 5.75% 5.50% 5.50% 5.50% 5.60%
Expected return
on plan assets 6.50% 6.40% 7.10% 6.50% 6.65%
– of which, equities 8.00% 9.50% 7.50% 8.00% 8.15%
– of which,
interest-bearing securities 5.00% 6.00% 4.50% 4.00% 5.00%
Expected wage and salary
increase, December 31 3.00% 3.30% 3.85% 4.40% 3.40%
Expected inflation,
December 31 2.00% 2.50% 2.35% 2.90% 2.25%
1 Weighted average.
Note 29 Liabilities
Liabilities are allocated between long-term and current, in compliance with RR 22,
”Presentation of financial statements.” See ”Accounting and valuation principles,”
Note 1.
Long-term and short-term liabilities declined during 2004. As large divestments
of businesses and properties occurred, capital previously tied up in businesses and
properties was freed up, and debts were thus repaid.
Group 2004 2003
Interest-bearing long-term liabilities 3,094 7,182
Current liabilities
Interest-bearing 958 808
Non-interest-bearing 35,930 35,987
Total 39,982 43,977
Long-term liabilities
Interest-bearing liabilities that fall due for payment within twelve months may
be regarded as long-term in some cases. At year-end 2004, the Group had only
SEK 59 M (1,503) in liabilities that must be reported as long-term, according to the
accounting and valuation principles in Note 1. The amount is so limited because
Skanska does not intend to refinance those liabilities that fall due within one year.
2004 2003
Group 89 1,503
Parent Company 30 15
Specification of other current liabilities
Group 2004 2003
Value-added tax 651 903
Employee taxes 950 990
Interest-bearing 169 118
Other current liabilities 1,980 1,840
3,750 3,851
Specification of accrued expenses and deferred revenues
Group 2004 2003
Deferred revenues 681 588
Accrued wage and salary expenses,
including social insurance contributions 1,516 2,160
Accrued interest expenses 167 84
Other accrued expenses 4,405 3,990
6,769 6,822
Skanska Annual Report 2004 – Notes, including accounting and valuation principles
77