Scania Annual Report 2011

114
notes to the consolidated financial statements
NOTE 17 Provisions for pensions and similar commitments, continued
Expenses for pensions and other defined-benefit
obligations recognised in Other comprehensive income
Expenses related to
pension obligations
Expenses related to
health care benefits
Expenses related to
other obligations
2011 2010 2009 2011 2010 2009 2011 2010 2009
Experience-based adjustments in pension liability 26 –187 –119 –68 –30 –20 –4 –2 –2
Experience-based adjustments in plan assets –49 38 58 0 0 1 –5 2 2
Effects of changes in actuarial assumptions –221 –89 –21 – – – 0 –1 –1
Net actuarial gains (+) and losses (–) for the year –244 –238 –82 –68 –30 – 19 –9 –1 –1
Special payroll tax related to actuarial gains and losses –74 –43 –8 – – – – – –
Curtailment in valuation of net assets 39 –36 26 – – – – – –
Total expense/revenue for defined-benefit obligations
recognised in Other comprehensive income –279 –317 –64 –68 –30 – 19 –9 –1 – 1
The accumulated amount of actuarial losses in “Other comprehensive income” was SEK 2,638 m. (2,282 and 1,934, respectively) before taxes.
Pension obligations
Obligations related
to health care
Other obligations
Recognised as provision for pensions
in the balance sheet 2011 2010 2009 2011 2010 2009 2011 2010 2009
Present value of defined-benefit obligations,
wholly or partly funded 1,350 1,712 1,676 463 406 353 49 48 47
Present value of defined-benefit obligations, unfunded 4,917 4,464 4,338 – – – 34 31 34
Present value of defined-benefit obligations 6,267 6,176 6,014 463 406 353 83 79 81
Fair value of plan assets –1,300 –1,532 – 1,471 –9 –9 –2 –63 –71 –69
Net assets not fully valued due to curtailment rule 23 73 35 – – – – – –
Recognised in the balance sheet 4,990 4,717 4,578 454 397 351 20 8 12
– of which, pension liability recognised
under the heading “Provisions for pensions” 5,065 4,753 4,620 454 397 351 20 8 12
– of which, pension asset recognised under
the heading “Other long-term receivables” –75 –36 – 42 – – – – – –
Assumptions applied
in actuarial calculation
Sweden (pension) Brazil (health care) Germany (pension) Other countries (pension etc.)
2011 1 2010 2 2009 2 2011 2010 2009 2011 2010 2009 2011 2010 2009
Discount rate, % 4.0 4.0 4.0 11.0 10.8 11.3 5.0 5.3 5.7 2.5–11.0 3.0–10.8 3.0– 11.3
Expected return
on plan assets, % – – – 11.7 11.7 11.7 – – – 3.7–11.7 3.7–11.7 3.7– 11.7
Expected wage and
salary increase, % 3.0 3.0 3.0 – – – 2.5 2.5 2.5 1.5–5.0 3.0–8.7 3.0– 8.7
Change in health
care costs, % – – – 8.2 7.6 7.6 – – – – – –
Employee turnover, % 5.0 5.0 5.0 2.5 2.3 2.1 5.0 5.0 5.0 4.0–13.8 4.0–11.0 2.0– 18.0
Expected remaining
years of service 19.4 19.8 20.2 15.6 14.0 14.5 9.6 7.4 11.0 4.0–30.0 1.3–30.0 2.3– 29.0
Expected increase in
pension (inflation), % 2.0 2.0 2.0 – – – 1.5 1.5 1.5 0.0–3.1 0.8–3.8 0.8– 3.5
1 The discount rate is fixed on the basis of market yields on top-rated corporate
bonds including mortgage bonds.
2 The discount rate is fixed on the basis of yields on government bonds.
Expected return in each country and category of plan assets is calculated taking into account
historic return and management’s estimate of future developments. These figures in the above
tables have then been combined into a total expected return for each country, taking into accoun t
that no changes in investment strategies are planned. The categories of plan assets in question are
“Shares and participations”, “Other interest-bearing securities”, “Properties” and “Bank deposits”.
financial reports Scania 2011