Annual Report 2006 - Munters

NOTe 20 cont.GroupPresent value of defined-benefit obligations 2006 2005Amount on opening date 212 183Current service cost 6 5Interest costs 8 8Paid benefits –7 –7Company acquisitions 7 –Terminated and changed benefit plans –3 –9Actuarial gains (–)/losses (+), changes in assumptions –5 25Actuarial gains (–)/losses (+), experience-basedadjustments 10 0Translation differences for the year –5 7Amount on closing date 223 212Plan assetsAmount on opening date 71 65Expected return on plan assets 6 4Premiums paid by employer – 4Benefits paid from plan assets –2 –1Terminated and changed benefit plans, settlements –5 –7Actuarial gains (+)/losses (–) – 1Translation differences for the year –3 5Amount on closing date 67 71Return on plan assetsExpected return on plan assets 6 4Actuarial gains (+)/losses (–) – 1Actual return 6 5Costs for obligations during the yearCurrent service cost 6 5Interest costs 8 8Expected return on plan assets –4 –4Amortization of past service costs 2 –Amortization of unrecognised actuarial gains andlosses on other long-term employee benefits 5 –Terminated and changed benefit plans – 3Costs for obligations during the year 17 12Distribution of pension costs inthe income statementAdministrative costs 48 48Financial expenses 8 8Total pension costs 56 56Statement of recognised income and expenseActuarial gains (+)/losses (–) during the year 2 –24Adj. arising from limitation on assets par 58 (b) 1 1Accumulated actuarial gains (+)/losses (–) –35 –38Actuarial gains (+) and losses (–) reporteddirectly against equityAmount on opening date –38 –15Amortization of actuarial gains and losses during the year 5 –Actuarial gains (+)/losses (–) on obligations –5 –25Actuarial gains (+)/losses (–) on plan assets 2 1Terminated and changed benefit plans 0 1Translation differences for the year 1 0Accumulated –35 –38GroupPlan assets 2006 2005Equity instruments, % 60 61Debt instruments, % 28 27Property, % 5 5Other assets (cash and cash equivalents), % 7 6Included in plan assetsCompany’s own equity instruments, % 0 0Company’s own liability instruments, % 0 0Properties utilized by the Company, % 0 0Other assets utilized by the Company, % 0 0Significant actuarial assumptionsGroup, weighted valuesDiscount rate, % 4.2 4.0Return on plan assets, % 6.5 6.2Future salary increases, % 3.0 3.2Future inflation, % 2.1 2.2The expected return for plan assets is based on the assumption that the returnon bonds will be equal to the interest for a 10-year Government Bond and thatthe return on share will amount to the same interest plus a risk premium.2006 2005 2004 2003Present value of definedbenefitobligations 223 212 183 163Fair value of plan assets –67 –71 –65 –62Net value funded and partlyfunded plans 156 141 118 101Munters’ budgeted fees for defined-benefit obligations amount toSEK 13 M for 2007.Parent CompanyParent Company2006 2005Defined-benefit obligations to employees 35 36The Parent Company’s pension plans in accordance with the FPG/PRI systemare an unfunded defined-benefit plan that in accordance with Swedish law isreported as a provision in the balance sheet. This reporting differs from theconsolidated accounting principles.Parent Company2006 2005Capital value of pension obligations onown account on opening date 31 30Costs excluding interest costs thatwere charged against profit 1 2Interest costs – –Payment of pensions –2 –2Capital value of pension obligations on ownaccount on closing date 30 31Obligations that are wholly or partlyoffset by especially detached assets 0 0Obligations for which there are noespecially detached assets 30 31Total 30 3160 M U N T E R S A N N U A L R E P O R T 2 0 0 6