Annual Report 2006 - Munters

NOTE 7 LEASINGNOTE 8 FINANCIAL INCOME AND EXPENSESOperating leasesThe year’s costs for operating leases of assets, such as leased premises,machinery and major computer and office equipment are reported amongoperating costs and amounted to SEK 164 M (165).Minimum future costs for non-revocable operating lease contracts have thefollowing periods.2007 1442008–2011 2752012 and later 39Most of the vehicles used in service operations are currently classified asoperational leases.458Financial leasingAssets held through financial lease contracts are reported as equipment. Theyear’s total payments relating to the assets amounted to SEK 2 M (1).Depreciation during the year amounted to SEK 2 M (1). Reported value at yearendamounted to SEK 15 M (4).Financially leased assets refer primarily to vehicles. The minimum lease feecomprises a capital portion and an interest portion. The interest portion isvariable and follows market interest existing in each country.Financially leased assets are reported as inventory equipment in the followingamounts:2006 2005Acquisition value – capitalized financial leasing 32 7Accumulated depreciation –17 –3Reported value 15 4Liabilities pertaining to financial leasing –minimum lease fees 2006 2005Within one year 4 1Between one and five years 11 215 3Future financial costs for financial leasing –2 0Present value of future minimum lease fees 13 3Present value of financial leasing liabilitiesWithin one year 4 1Between one and five years 9 213 3Financial incomeGroupParent Company2006 2005 2006 2005Dividends from subsidiaries – – 963 126Impairment of shares in subsidiaries – – –4 –4Interest income, subsidiaries – – 20 13Interest income, other 7 3 1 0Exchange-rate differences – 3 – 14Financial expenses7 6 980 149Interest expenses, subsidiaries – – –7 –5Interest expenses, other –12 –12 –10 –5Exchange-rate differences –1 – –9 –Other financial expenses –9 –8 – –1–22 –20 –26 –11Total financial incomeand expenses –15 –14 954 138NOTE 9 INCOME TAXESGroupParent Company2006 2005 2006 2005Current tax expense 189 152 –8 –2Tax relating to prior years/withholding tax –8 0 – –Deferred tax related to temporarydifferences and loss carry-forwards 5 –6 – –Deferred tax attributable to changesin valuation reserves 0 –7 – –Tax expenses reported in theincome statement 186 139 –8 –2Tax items reported directlyagainst equityDeferred tax attributable to pensions 0 12Reconciliation of effectivetax expenseEarnings before tax 514 391 929 104Tax according to prevailing taxrate for the Parent Company 143 109 260 29Difference attributable to foreigntax rates 38 26 – –Non-deductible expenses 20 14 0 2Non-taxable income –11 –5 –269 –35Change in valuation reserves 0 –7 – –Tax relating to prior years/withholding tax –8 0 – –Other 4 2 1 2Tax expenses 186 139 –8 –254 M U N T E R S A N N U A L R E P O R T 2 0 0 6