Annual Report 2006 - Euromaint

E u r o M a i n t A n n u a l R e p o r t 2 0 0 6
Notes
Note 13 PENSION OBLIGaTIONS CONTD.
Specification of posted net provision in balance sheet
Group, SEK thousands 2006-12-31 2005-12-31
Present value of funded obligations -257,474 -245,313
Fair value of plan assets 263,38 248,024
Receivable 5, 15 2,711
Present value of non-funded obligations -42,321 -3 ,5 0
Non-reported actuarial gain/loss (-/+) 15,438 21,614
Pension provision to report in balance sheet -20, 68 -15,265
Reconciliation of change in plan assets
Group, SEK thousands
Fair value of plan assets
2006 2005
at beginning of year 248,024 242,038
Expected return during the year , 37 ,626
Premiums paid 10,464 ,466
Remuneration paid -10,507 -12,531
Actuarial gains during the year 5,471 -575
Fair,value of plan assets at year-end 263,38 248,024
Plan assets are invested in pension insurance policies with Skandia
or KPA. The insurances contain a mixture of shares and bonds. On 31
December 2006, 65% was invested in bonds and 35% in shares. The
return in 2006 amounted to 6.0% on average (SEK 15,400,000).
Specification of posted net provision in balance sheet
Group, SEK thousands 2006 2005
Net provision at beginning of year
Net cost for defined benefit
-15,265 -15, 63
pensions in 2006
Cost for pensions earned
-16,138 -10,183
in an earlier period -4,818 –
Remuneration paid 15,2 7 13,735
Premiums 10,463 11,572
Reimbursement -10,507 -14,426
Net provision at year-end -20, 68 -15,265
actuarial gains and losses
Group, SEK thousands
Actuarial loss at beginning
2006 2005
of year not amortised
Actuarial loss subject to amortisation
during the average remaining
-20,471 0
period of service. -3,363 0
Average remaining period of service
Amortisation of actuarial
14 14
loss during the year
Actuarial loss on present value of
16 0
obligations which arose during the year
Actuarial gain on plan assets which
-606 -1 ,8 6
arose during the year 5,471 -575
Actuarial loss at year-end not amortised -15,437 -20,471
60
Cost for defined benefit pensions
Group, SEK thousands 2006 2005
Cost for earned benefits -15,147 -10,862
Interest expense
Expected return
-10,75 -8, 47
on plan assets , 37 ,626
Amortisation of actuarial losses
Cost for pensions earned
-16 0
in an earlier period -4,818 0
Cost for defined benefit pensions -20, 56 -10,183
Calculation assumptions
Group, SEK thousands 31 Dec 2006 31 Dec 2005
Discount rate, % 3.80 3.80
Return on plan assets, % 4.00 4.00
Expected pay increase, % 2.50 2.50
Calculation of maturing pensions, % 1.80 1.80
Personnel turnover, % 3.00 3.00
Calculation of income base amounts, %
Expected average remaining period
2.80 2.80
of service for employees, years 14 14
The discount rate is based on market expectations on the balance
sheet date of bonds with the same term as the Group’s pension
commitments. This has been based on an interest rate curve estimated
according to Swedish state real interest rate bonds. The expected
return on plan assets is based on the portfolio allocation reported
by the insurance companies. Long-term inflation measurements are
based on market expectations which can be discerned between real
and nominal bonds.
Note 14 DEFERRED TaX aSSETS
Group, SEK thousands 31 Dec 2006 31 Dec 2005
Deferred tax for tax deficit 0 ,823
Deferred tax on temporary differences 11,71 11,724
Total 11,719 21,548
Deferred tax assets are based on non-revokable pensions and non
tax-deductible reserves.
Note 15 INvENTORIES
Group, SEK thousands 2006-01-01 2005-01-01
2006-12-31 2005-12-31
Gross stock 366,157 347,73
Obsolescence reserve - 7,387 -88,3 6
Net stock 268,770 25 ,343
Distributed as follows
Replacement items 67, 70 51,2 3
Spare parts 141,864 138,4 1
Miscellaneous 58, 36 6 ,55
Total 268,770 259,343
All companies use an obsolescence scale in line with their particular
circumstances.