Annual Report 2006 - Munters

NOTe 20 cont.Reported pension costs for the period 2006 2005Pensions on own accountCosts excluding interest costs 1 2Interest costs – –Costs for pensions on own account 1 2Insured pensionInsurance premiums 3 5Tax on returns from pension funds – –Special employer’s contribution on pension costs 1 2Costs for insured pensions 4 7Reported net costs attributable to pensions 5 9Fees to the FPG/PRI system for 2007 are estimated to be slightly morethan SEK 1 M.NOTE 21 OTHER PROVISIONSLong-termGroup2006 2005Provisions for rental commitments 5 5Provisions for legal disputes 1 1Other provisions 2 0Short-term8 6Provisions for warranties 53 36Other provisions 1 254 38Total long-term and short-term 62 44NOTE 22 ACCRUED EXPENSES AND DEFERRED INCOMEGroupParent Company2006 2005 2006 2005Vacation pay liabilities 79 79 2 3Social security expenses 30 53 3 4Other personnel-relatedexpenses 84 94 3 3Received, non-invoicedgoods, etc 130 116 2 2323 342 10 12NOTE 23 PLEDGED ASSETS AND CONTINGENT LIABILITIESPledged assets forliabilities to credit institutesGroupParent Company2006 2005 2006 2005Corporate mortgages 4 5 – –Other pledged assets 1 0 – –Contingent liabilities(guarantee commitments)5 5 – –FPG guarantees 2 2 64 61Bank guarantees – – 10 8Parent Company guarantees – – 12 152 2 86 84FPG guarantees refer to pension liabilities in Sweden. Other guarantees arenormal operational guarantees, for example, advances and completionguarantees.Munters’ subsidiary in the US, Munters Corporation, was named corespondentin 38 asbestos-related processes on 31 December 2006. To date,none of the plaintiffs have claimed to have been exposed to any specificMunters product. During the past two years, Munters Corporation has won twocases through summary judgments and a total of 36 plaintiffs were dismissedfrom the 38 above-mentioned processes. Munters Corporation’s opinion is thatthe remaining claims are unfounded and it will dispute every claim. Insuranceprotection is available for the submitted claims. Munters does not believe thatthe mentioned claims will have any significant negative impact on theCompany’s financial position or operating results.NOTE 24 TRANSACTIONS WITH RELATED PARTIESThere are no significant contractual relations or transaction between MuntersAB and related parties. Remuneration and terms of employment for seniorexecutives and individual members of the Board of Directors are presented inNote 27. Munters AB has not provided guarantees or guarantee commitmentsto or on behalf of Board members or senior executives. During the current orthe preceding fiscal years, no member of the Board of Directors or seniorexecutive was directly or indirectly involved in business transaction with theCompany that is or was unusual in nature or with respect to its terms or that inany respect remains unsettled or incomplete.The Parent Company’s sales to Group companies amounted to SEK 37 M(22). Purchases from Group companies amounted to SEK 13 M (5).NOTE 25 AVERAGE NUMBER OF EMPLOYEES, ABSENCEDUE TO ILLNESS, AND GENDER DISTRIBUTIONAverage number of employeesCroupNumber2006 2005Of whommen, %NumberOf whommen, %Australia 140 78 121 80Austria 87 83 83 78Belgium 44 80 40 83Brazil 23 87 20 85Canada 13 85 11 82China 134 80 114 83Denmark 81 63 84 64Finland 282 90 244 88France 70 85 104 84Germany 586 86 539 87Indonesia 1 100 1 100Italy 194 82 133 83Japan 59 92 54 87Korea 9 78 8 75Mexico 111 88 76 78Netherlands 85 89 66 89New Zealand 2 67 1 100Norway 257 70 241 73Poland 12 83 12 83Russia 1 100 – –Saudi Arabia 3 100 3 100Singapore 17 76 17 76South Africa 23 80 21 81Spain 13 69 13 54Sweden 369 83 360 82Switzerland 19 89 18 78Taiwan 3 67 1 100Thailand 26 73 22 64United Arab Emirates 2 100 1 100United Kingdom 294 78 272 82USA 682 76 620 80Vietnam 3 67 3 673,644 81 3,303 82Of which Parent Company(Sweden) 25 64 22 59M U N T E R S A N N U A L R E P O R T 2 0 0 6 61