Scania Annual Report 2011

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NOTE 7 Financial income and expenses
2011 2010 2009
Interest income
Bank balances and financial investments 572 333 320
Derivatives 1 168 53 19
Expected return on pension assets 80 78 68
Total interest income 820 464 407
Interest expenses
Borrowings –1,043 –855 –1,514
Derivatives 1 –63 –368 –570
Total borrowings and derivatives –1,106 –1,223 –2,084
Less interest expenses recognised in Financial Services 2 843 883 1,241
Pension liability –296 –317 –286
Total interest expenses –559 –657 –1,129
Total interest net 261 –193 –722
Other financial income 3 116 70 227
Other financial expenses 3 –163 –90 –376
Total other financial income and expenses –47 –20 –149
Net financial items 214 –213 –871
1 Refers to interest on derivatives that are used to match interest on borrowings and lending as well as
the interest component in derivatives that are used to convert borrowing currencies to lending currencies.
2 Recognised in the operating income of Financial Services.
3 Refers to SEK 42 m. (19 and –15, respectively) in market valuation of financial instruments for which hedge
accounting is not applied, as well as exchange rate differences and bank-related costs.
NOTE 8 Taxes
Tax expense/income for the year 2011 2010 2009
Current tax 1 –3,164 –3,831 –1,178
Deferred tax –26 401 705
Total –3,190 –3,430 –473
1 Of which, taxes paid: –3,548 –2,555 –1,136
Deferred tax is attributable to the following: 2011 2010 2009
Deferred tax related to temporary differences 138 239 –435
Deferred tax due to changes in tax rates and tax rules 2 –2 7 –14
Deferred tax income due to tax value of loss carry-forwards
recognised during the year 47 454 132
Deferred tax expense due to utilisation of previously recognised
tax value of tax loss carry-forwards –215 –118 –38
Deferred tax related to change in provision to tax allocation reserve –12 –178 1,105
Other deferred tax liabilities/assets 18 –3 –45
Total –26 401 705
2 The effect of changes in tax rates mainly refers to Great Britain and Chile (during 2011),
Chile (during 2010) and Russia (during 2009).
financial reports Scania 2011