Annual Report 2006 - Munters

NOTe 18 cont.Parent CompanySharecapitalStatutoryreserveShare premiumreserveProfit broughtforward31 December 2004 125 65 11 165 366Group contributions – – – 25 25Net earnings – – – 106 106Total income and expenses – – – 131 131TotalequitySales of treasury stock – – – 29 29Dividend to Parent Company shareholders – – – –98 –9831 December 2005 125 65 11 227 428Group contributions – – – 34 34Net earnings – – – 937 937Total income and expenses – – – 971 971Transfers between statutory reserve and other funds – 11 –11 – 0Sales of treasury stock – – – 3 3Payment received for options issued – – 2 – 2Dividend to Parent Company shareholders – – – –135 –13531 December 2006 125 76 2 1,066 1,269NOTE 19 INTEREST-BEARING LIABILITIESGroup2006 2005Bank loan: approved general credit facility 625 400Bank loan: unutilized portion –522 –185Bank loans in addition to general credit facility 199 133Leasing obligation 13 3315 351Borrowing is distributed in local currencies and with average weighted interestrates as shown below:Currency Nominal amount, millions Average interest rateSEK 268 3.4%EUR 4 3.4%The calculation of net debt is shown in the cash-flow statement.NOTE 20 PROVISIONS FOR PENSIONSGroupAND SIMILAR COMMITMENTSGroup2006 2005Long-term defined-benefit commitments to employees 139 137Other long-term employee benefits 12 –Other benefits to employees 11 10Long-term 162 147Short-term defined-benefit commitments to employees 5 5Total long-term and short-term 167 152Long-term defined-benefit commitments to employees 139 137Other long-term employee benefits 12 –Short-term defined-benefit commitments to employees 5 5156 142NOTe 20 cont.and Germany. In France and Italy, the companies make provisions formandatory remuneration when employment is terminated.Munters applies the alternative that IAS 19 allows, namely that actuarialgains and losses are reported directly in the balance sheet in the period theyoccurred to the extent that they refer to remuneration after employment hasbeen terminated. Actuarial gains and losses amounted to SEK 3 M (loss: 23) forthe period. The accumulated net loss amounted to SEK 35 M (38), which isincluded in the reported pension debt. The actuarial gains and losses during2006 pertain primarily to higher discount rates.Other long-term employee benefits include employees in Germany.The defined-contribution plans include primarily retirement pensions,disability pensions and family pensions. The premiums are paid continuallyduring the year by each Group company to separate legal units, for example,insurance companies. The size of the premium is based on salary. The cost fordefined-contribution plans amounts to SEK 39 M (44).GroupReported provisions (changes for the year) 2006 2005Amount on opening date 142 107Change in accounting principle – 13Amount on opening date 142 120Pension costs 17 12Actuarial gains and losses –3 23Benefits paid by employer –5 –6Premiums paid by employer – –3Company acquisitions 7 –Terminated and changed benefit plans 0 –5Translation differences for the year –2 1Amount on closing date 156 142Reported provisions (on closing date)Present value of wholly or partially funded obligations 71 70Present value of unfunded obligations 151 142Fair value of plan assets (–) –66 –71Ceiling for asset value – 1Amount on closing date 156 142The Munters Group finances pension plans for employees in several countries.These plans mainly follow practice in the country in question and may bedefined-contribution or defined-benefit plans or a combination of both. Thelargest defined-benefit plans cover employees in Sweden, Norway, the UKM U N T E R S A N N U A L R E P O R T 2 0 0 6 59