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Maturity dates on non-current liabilities – Parent Company
Maturity date
Current Within Between Later than
31/12/2010
liability 1 year 1–5 years 5 years
Liabilities to group companies 860,026 860,026
Other liabilities 368,582 368,582
Total 1,228,608 0 1,228,608 0
31/12/2009
Current
liability
Within
1 year
Maturity date
Between Later than
1–5 years 5 years
Liabilities to group companies 796,320 796,320
Other liabilities 341,280 341,280
Total 1,137,600 0 1,137,600 0
note 26. provisions for pensions
Defined contribution plans
The expense for defined contribution plans during the year amounted to SEK
92,665 thousand (93,730).
Commitments for old-age pensions and family pensions for white-collar
employees in Sweden have been safeguarded through insurance in Alecta.
According to statement URA 42 from the Swedish Financial Accounting Standards
Council’s Urgent Issues Task Force, this is classified as a “multi-employer”
defined benefit plan. For financial years when the company has not had access to
the information necessary to report this plan as a defined benefit plan, a pension
plan according to Supplementary Pension for Employees in industry and Commerce,
safeguarded through insurance with Alecta, is reported as a defined contribution
plan. The year’s costs for pension insurance subscribed to through Alecta
amounted to SEK 28,000 thousand (28,079). Alecta’s surplus can be distributed
to the policyholders (the employers) and/or the insureds. At year-end 2010,
Alecta’s collective funding ratio was 146% (141). The collective funding ratio is the
market value of Alecta’s plan assets as a percentage of insurance obligations
computed according to Alecta’s own actuarial assumptions, which do not comply
with IAS 19.
Defined benefit plans
The amounts recognised in the income statement are as follows:
Group
2010 2009
Current service cost 20,348 15,913
Interest cost 13,822 12,721
Expected return on plan assets -4,342 -4,586
Actuarial gains (-) and losses (+) recognised in year 920 343
Other cost reductions -1,283
Total 30,748 23,108
The actual return on plan assets during the period was SEK 7,449 thousand (34).
Actuarial assumptions
There are defined benefit plans in Finland, Germany, Norway, Sweden and Switzerland.
The principal actuarial assumptions used as of balance sheet date were
as follows (weighted average):
2010 2009
Discount rate 3.9% 4.4%
Inflation 1.7% 1.7%
Annual salary increases 2.4% 2.4%
Annual pension increases 1.5% 1.3%
Annual paid-up policy increases 1.1% 1.3%
Remaining service period 13 years 14 years
Expected return on plan assets 3.2% 3.9%
53
The amounts recognised in the balance sheet are determined as follows:
2010 2009
Present value of funded obligations 146,364 139,768
Fair value of plan assets -110,397 -115,488
Net value of entirely or partially funded obligations 35,967 24,280
Present value of unfunded obligations 199,036 198,048
Unrecognised actuarial gains (+) and losses (–) -25,435 -4,617
Net liability on the balance sheet 209,568 217,711
The movement in the fair value of plan assets over the year is as follows:
2010 2009
Beginning of year 337,816 323,172
Current service cost 20,348 15,913
Interest cost 13,704 13,706
Actuarial gains (-)/losses (+) 8,518 -2,785
Employer contributions -1,088 -7,071
Employee contributions 2,733 3,032
Benefits paid -17,511 -4,984
Acquisition of subsidiaries -48 3,432
Other changes 1,243
Exchange differences -19,072 -7,842
End of the year 345,400 337,816
The movement in the fair value of plan assets over the year is as follows:
2010 2009
Beginning of year 115,488 106,273
Expected return on plan assets 4,342 4,586
Actuarial losses (-)/gains (+) -11,791 -4,552
Employer contributions 11,371 10,694
Employee contributions 2,733 3,032
Benefits paid -11,741 -4,984
Acquisition of subsidiaries 373
Other changes 93
Exchange differences -5 -27
End of year 110,397 115,488
Plan assets are comprised as follows:
2010 2009 2010 2009
Shares 23,232 19,193 21% 17%
Interest-bearing securities 37,931 42,233 34% 37%
Property 14,275 11,386 13% 10%
Other 34,959 42,676 32% 37%
Total 110,397 115,488 100% 100%
The expected return on plan assets was determined by considering the expected
returns available on the assets underlying the current investment policy. Expected
yields on fixed-interest investments are based on gross redemption yields at the
balance sheet date. Expected returns on shares and property investments reflect
long-term rates of return in the respective market.
Expected contributions to post-employment benefit plans for the financial year
2011 amount to SEK 18,591 thousand.
2010 2009 2008 2007
Present value of defined
benefit obligation 345,400 337,816 323,172 247,091
Fair value of plan assets -110,397 -115,488 -106,273 -79,859
Deficit (+)/surplus (-) 235,003 222,328 216,899 167,232