20% - Assa Abloy

ASSA ABLOY
Annual Report 2007
80
Notes 26–29
Note 26 Parent company’s equity
The Parent company’s equity is split between restricted
and unrestricted equity. Restricted equity consists of share
capital, the statutory reserve and the fair value reserve.
Restricted funds must not be reduced by issue of dividends.
Unrestricted equity consists of retained earnings and the
year’s net income.
The statutory reserve contains premiums (amounts
received from share issues that exceed the nominal value
of the shares) relating to shares issued up to 2005.
Note 27 Share capital, number of shares and
dividend per share
Number of shares (thousands)
Series A
Series B
Total
Share
capital
SEK T
Opening balance
at 1 January 2006 19,175 346,743 365,918 365,918
Closing balance at
31 December 2006
Number of votes,
19,175 346,743 365,918 365,918
thousands 191,753 346,743 538,496
Opening balance
at 1 January 2007 19,175 346,743 365,918 365,918
Closing balance at
31 December 2007 19,175 346,743 365,918 365,918
Number of votes,
thousands 191,753 346,743 538,496
All shares have a par value of SEK 1.00 and provide the
holders with equal rights to the Company’s assets and
earnings. All shares are entitled to dividends subsequently
issued. Each Series A share carries ten votes and each Series
B share one vote. All issued shares are fully paid-up.
The average number of shares during the year, to the
nearest thousand, was 365,918 thousand (365,918). The
average number of shares after full conversion of outstanding
convertible bonds, similarly rounded, was 378,533
thousand (379,214).
Dividend per share
The dividend paid out during the financial year amounted
to a total sum of SEK 1,189 M (1,189), corresponding to
SEK 3.25 (3.25) per share. At the Annual General Meeting
on 24 April 2008, a dividend of SEK 3.60 per share for the
year 2007 – a total sum of SEK 1,317 M – will be proposed.
Note 28 Reserves
Group (SEK M)
Translation
reserve
Hedging
reserve Total
Opening balance at
1 January 2006 1,060 1 1,061
Translation differences –1,313 – –1,313
Financial instruments, fair value – –1 –1
Closing balance at 31
December 2006 –253 0 –253
Opening balance at
1 January 2007 –253 0 –253
Translation differences –287 – –287
Financial instruments, fair value – 0 0
Closing balance at 31
December 2007 –540 0 –540
The translation reserve consists of all currency translation
differences that arise in the translation of financial reports
from foreign operations prepared in a currency other than
Swedish kronor, the currency used to present the Group’s
financial reports. If a foreign operation is sold, translation
differences are transferred to the income statement.
Note 29 Post-employment employee benefits
Post-employment employee benefits include pensions and
medical benefits. Pension plans are classified as either
defined benefit plans or defined contribution plans. Pension
obligations reported in the balance sheet are mainly
due to defined benefit pension plans. ASSA ABLOY has
defined benefit plans in a number of countries, those in the
USA and the UK being the most significant ones. There are
also obligations related to post-retirement medical benefits
in the USA.
Amounts recognized in the income statement
Pension costs (SEK M) 2006 2007
Defined benefit pension charges (A) 84 29
Defined contribution pension charges 299 326
Post-employment medical
benefit charges (A) 30 29
Total 413 384
Amounts recognized in the balance sheet
Pension provisions (SEK M) 2006 2007
Provisions for defined benefit
pension plans (B) 808 701
Provisions for post-employment
medical benefits (B) 406 383
Provisions for defined contribution
pension plans 83 72
Pension provisions 1,297 1,156
Financial assets –21 –20
Pension provisions, net 1,276 1,136