ANNUAL REPORT INTRUM JUSTITIA A N N U A L R EP O R T 2 0 ...

68
Notes
Reconciliation of fair value of assets under management:
SEK M 2010
GROUP
2009
Opening balance 39.5 37.2
Assumed return on assets under management 1.8 2.2
Actuarial gains and losses –2.2 –7.7
Fees paid 3.0 3.3
Pensions paid, funded obligations –0.8 0.0
Assets in acquired company 28.9 –
Translation differences –3.3 4.5
Closing balance 66.9 39.5
The change in balance sheet item Provisions for pensions is
specified as follows:
SEK M 2010
GROUP
2009
Opening balance 39.4 39.4
Pension cost recognized through profit or loss 1.8 5.9
Fees paid –3.8 –4.9
Pensions paid, unfunded obligations –0.9 –0.2
Translation differences 0.0 –
Closing balance –4.4 –0.8
Closing balance 32.1 39.4
The Group recognizes actuarial gains and losses through profit or loss according
to the so-called corridor rule. The pension cost recognized through profit or loss
can be specified as follows:
SEK M 2010
GROUP
2009
Costs for employment in current period 1.9 4.3
Interest expense for obligation 2.7 2.8
Assumed return on assets under management –2.8 –2.2
Recognized actuarial gains and losses 0.0 1.0
Total pension cost recognized
through profit or loss
1.8 5.9
In calculating Provisions for pensions, the following assumptions are used:
SEK M 2010
GROUP
2009
Discount rate as of December 31 3.0-4.6% 2.0-5.5%
Assumed rate of increase in compensation 2.0-4.0% 2.0-4.3%
Assumed return on assets under management
as of December 31
4.6% 5.0-6.0%
Assumed pension increases 0.5-5.0% 1.3-3.0%
Future adjustment to social security base 3.7-4.2% 3.5-4.0%
The Group also finances a number of defined contribution plans, the costs
of which amounted to SEK 79.2 M (68.3).
For the Group’s employees in Norway, commitments for retirement and
family pensions are secured through insurance with the insurance company
Storebrand Livforsikring, so-called OTP pensions. The funded pension
commitment corresponds to a share of Storebrand’s total investment assets,
which consist of bonds (64 percent), equities (16 percent), real estate
(15 percent) and other (5 percent). During the year Intrum Justitia paid
SEK 3.0 M (3.7) to the plan, while disbursements to retirees amounted to
SEK 0.8 M (0.0). In 2011 payments to the plan are estimated at SEK 2.8 M,
with disbursements to retirees of SEK 0.8 M.
The commitments for retirement and family pensions for the Group’s
Swedish employees are secured through insurance with Alecta according to
the so-called ITP plan. According to a statement from the Swedish Financial
Reporting Board, UFR 3, the ITP plan is a multi-employer defined benefit
plan. For the fiscal year, Alecta’s clients have not been provided enough
information to report the plan as defined benefit. Nor is there a contractual
agreement how surpluses and deficits in the plan are to be distributed among
plan participants. The ITP plan secured through insurance with Alecta is
therefore reported by Intrum Justitia as if it were a defined contribution
plan. At year-end Alecta’s surplus in the form of the collective funding ratio
was 146 percent (141). The collective funding ratio consists of the market
value of Alecta’s assets as a percentage of the insurance obligations calculated
according to Alecta’s actuarial assumptions, which do not conform
to IAS 19.
Pension provisions in the Parent Company relate to commitments for
endowment insurance obtained on behalf of present and former senior executives.
The Company reports the policies as an asset.
NOTE 24
OTHER PROVISIONS
SEK M 2010
GROUP
2009
Opening balances 39.7 20.8
Provisions for the year 4.6 36.7
Release during the year –14.9 –15.6
Translation differences –3.0 –2.2
Closing balances 26.4 39.7
Of which long-term provisions 15.1 15.4
Of which short-term provisions 11.3 24.3
Total provisions 26.4 39.7
Of which attributable to United Kingdom 22.8 34.1
Of which attributable to Belgium 3.6 5.6
Total provisions 26.4 39.7
Provisions related to leases on rented offices 22.8 29.3
Provisions for layoffs and other restructuring costs 3.6 10.4
Total provisions 26.4 39.7
Short-term provisions are expected to be settled in 2011. Long-term provisions
are expected to be settled later.
Provisions related to leases on rented offices apply to the English company’s
previous premises in Stratford and the current offices in Liverpool.
Provisions for layoffs and other restructuring costs refer to provisions
for a restructuring of the acquired Belgian company Solutius, which was
decided on before Intrum Justitia acquired the company in 2008, as well
as costs in connection with efficiency improvements to the UK operations.
NOTE 25
LIABILITIES TO CREDIT INSTITUTIONS
GROUP PARENT COMPANY
MSEK
Long-term liabilities
2010 2009 2010 2009
Bank loans
Short-term liabilities
2 588.6 0.1 2,588.6 0.0
Bank overdraft facilities 0.4 169.7 0.0 0.0
Bank loans 0.0 2,349.7 0.0 2,349.7
Total 2,589.0 2,519.5 2,588.6 2,349.7
Intrum Justitia AB signed a three-year syndicated loan facility totaling EUR
310 M with Nordea Bank AB and Swedbank on December 23, 2009, to replace
the previous one from 2005. The new loan facility entered into force on
January 14, 2010. The loan limit of EUR 310 M can be utilized for borrowing
in a number of different currencies.
On December 31, 2010, the loan limit had been utilized for loans in SEK
totaling SEK 220.0 M (100.0), Swiss francs totaling CHF 84.7 M (0.0) and
in euro totaling EUR 198.9 M (218.0). The unutilized portion of the facil-