STENA METALL AB - Stena Metall Group

Financial review | The Group
Note 25 Provisions, continued
Provisions for pensions and similar commitments
Post-employment compensation such as pensions is
disbursed in large part through periodic payments to
independent authorities or bodies, which thereby assume
the commitment to employees, i.e., through defined
contribution plans. The remainder is fulfilled through
defined benefit plans, where the commitments remain
with the Stena Metall Group. Defined benefit plans exist
in Sweden and Norway. For defined benefit plans, the
company’s costs and the value of the outstanding commitments
as of the closing day are estimated with the
help of actuarial calculations, the purpose of which is to
determine the present value of outstanding commitments.
As of September 1, 2004 recommendation RR 29
Employee Benefits is applied, according to which defined
benefit plans are reported consistent with shared principles.
In the consolidated accounts as per August 31,
2004, such plans were reported according to the local
rules and regulations in each country. In accordance with
the transitional rules, an opening liability according to RR
29 has been calculated as per September 1, 2004. Pension
liabilities thereby rose by 22.1, deferred tax liabilities
decreased by 6.1, and unrestricted shareholders’
equity decreased by 16.0.
For actuarial calculations, a discount rate of 3.5% has
been used in Sweden and 5.5% in Norway. The anticipated
salary increase in both countries has been estimated
at 3%.
Pension costs for the year
Defined contribution plans . . . . . . . . . . . . . . . . . . . . . . . . . . 63.2
Defined benefit plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.9
Total pension costs for the year . . . . . . . . . . . . . . . . . . 70.1
Provisions for pensions
Opening reported value in the balance sheet . 106.6
Effect of change to RR 29 as
per September 1, 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.1
Adjusted value, opening balance . . . . . . . . . . . . . . . . . 128.7
Cost of pensions earned during the year . . . . . . . 3.0
Interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1
Payment of fees by the company . . . . . . . . . . . . . . . . . . –2.5
Compensation disbursements . . . . . . . . . . . . . . . . . . . . –4.8
Other changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3
Reported value, closing balance . . . . . . . . . . . . . . . . 128.8
26 Long-term loans
from credit institutions
The loans fall due for payment within five years. With
respect to assets pledged, refer to Note 30.
27 Short-term loans
from credit institutions
Aug. 31, Aug. 31,
2005 2004
Utilized bank overdraft facilities . . 82.8 276.5
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,466.7 2,503.8
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,549.5 2,780.3
The Group has obtained credit commitments of SEK 6.7 billion, of which
SEK 3.8 billion has not been utilized. Agreements are based on key
financial indicators such as debt/equity and interest coverage ratios.
28 Other current liabilities
Aug. 31, Aug. 31,
2005 2004
Owed to limited partnership . . . . . . . — 75.9
Capitalized leasing commitments 30.7 32.1
Advance from agent . . . . . . . . . . . . . . . . . . . 12.0 12.5
Value-added tax . . . . . . . . . . . . . . . . . . . . . . . . 39.2 53.7
Employee withholding taxes . . . . . . . . 16.9 14.2
Property tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9 4.0
Excise duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 6.4
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106.9 43.5
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208.8 242.3
29 Accrued expenses and prepaid income
Aug. 31, Aug. 31,
2005 2004
Accrued salaries and
payroll overhead . . . . . . . . . . . . . . . . . . . . 157.2 140.6
Restructuring expenses . . . . . . . . . . . . . — 11.4
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.5 4.6
Prepaid income . . . . . . . . . . . . . . . . . . . . . . . . . 164.9 132.7
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158.5 149.1
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491.1 438.4
Unreported actuarial gains (–)
and losses (+) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2
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