20% - Assa Abloy

Note 29 cont. A) Specification of amounts recognized in the income statement
Post-employment
medical benefits
ASSA ABLOY
Annual Report 2007
81
Defined benefit
pension plans Total
Pension cost (SEK M) 2006 2007 2006 2007 2006 2007
Current service cost 7 7 73 58 80 65
Interest on obligation 23 22 204 206 227 228
Expected return on plan assets – – –202 –214 –202 –214
Net actuarial losses (gains) – – 1 0 1 0
Past service cost – – 2 0 2 0
Losses (gains) on curtailments/settlements – – 6 –21 6 –21
Total 30 29 84 29 114 58
of which, included in
Operating income 7 7 82 58 89 65
Net financial items 23 22 2 –29 25 –7
Total 30 29 84 29 114 58
Actuarial gains/losses resulting from changes in the actuarial assumptions for defined benefit pension plans are recognized to
the extent that their accumulated amount exceeds the ‘corridor’, i.e. 10 percent of the higher of the obligation’s present
value or the fair value of plan assets. The surplus/deficit outside the 10 percent corridor is recognized as income/expense over
the expected average remaining service period, starting in the year after the actuarial gain or loss arose. Amortization of actuarial
gains/losses that arose in 2007 will start in 2008.
The actual return on plan assets regarding defined benefit plans was SEK 239 M (267) in 2007.
There are no defined benefit plans with surpluses within the Group. Partly funded or unfunded pension plans are
reported as provisions for pensions.
B) Specification of amounts recognized in the balance sheet
Post-employment
medical benefits
Defined benefit
pension plans Total
Specification of pension provisions (SEK M) 2006 2007 2006 2007 2006 2007
Present value of funded obligations (C) – – 3,823 3,733 3,823 3,733
Fair value of plan assets (D) – – –3,133 –3,177 –3,133 –3,177
Net value of funded plans – – 690 556 690 556
Present value of unfunded obligations (C) 406 391 258 260 664 651
Unrecognized actuarial gains (losses), net 2 –4 –140 –114 –138 –118
Unrecognized past service cost –2 –4 – –1 –2 –5
Total 406 383 808 701 1,214 1,084
C) Movement in pension obligations
Post-employment
medical benefits
Defined benefit
pension plans Total
SEK M 2006 2007 2006 2007 2006 2007
Opening obligation 475 406 4,417 4,081 4,892 4,487
Current service cost 7 7 73 58 80 65
Interest on obligation 23 22 204 206 227 228
Actuarial losses (gains) –16 6 –120 13 –136 19
Curtailments / settlements – 2 –68 –40 –68 –38
Payments –25 –28 –144 –175 –169 –203
Translation differences –58 –24 –281 –150 –339 –174
Closing obligation 406 391 4,081 3,993 4,487 4,384
D) Movement in fair value of plan assets
Defined benefit
pension plans
SEK M 2006 2007
Opening fair value of plan assets 3,009 3,133
Expected return on plan assets 202 214
Actuarial gains (losses) 65 25
Curtailments / settlements –72 –
Net payments 186 –16
Translation differences –257 –179
Closing fair value of plan assets (E) 3,133 3,177