Atlas Copco 2008 – tough ending to a record year Annual Report ...

Financial statements, parent companyA15. Untaxed reserves2008 2007Additional tax depreciation equipment – 2Tax allocation reserves – 1 176– 1 178Provisions have been made to tax allocationreserves as shown below:Year 2008 20072002 – 4192003 – 3212004 – 436– 1 176A16. Post-employment benefits2008 2007Definedcontributionpension planDefined benefitpension planTotalDefinedcontributionpension planDefined benefitpension planTotalOpening balance, Jan. 1 23 29 52 17 31 48Provision made 6 – 6 6 – 6Provision used – –3 –3 – –2 –2Closing balance, Dec. 31 29 26 55 23 29 52Pension expenses for the year, which are included within administrative expenses, amounted to 26 (34). No compensation was received from the AtlasCopco pension foundation. The pension expenses amount to 26 (34), of which the Board of Directors and the President 5 (6) and others 21 (28).The Parent Company has endowment insurances of 29 (23) relating to defined contribution pension plans. The insurances are recognized as other financialassets, and pledged to the pension beneficiary.Description of defined benefit pension plansThe Parent Company has three defined benefit pension plans. The ITP plan is a final salary pension plan covering the majority of salaried employees inAtlas Copco AB which benefits are secured through the Atlas Copco pension trust. The second plan relates to a group of employees earning more than 10income base amounts who have opted out from the ITP plan. This plan is insured. The third plan relates to retired former senior employees. These pensionarrangements are provided for.86 Atlas Copco 2008