ANNUAL REPORT INTRUM JUSTITIA A N N U A L R EP O R T 2 0 ...

ity amounted to SEK 168.7 M (849.7). The loan carries a variable interest
rate based on the interbank rate in each currency, with a margin. The loan
facility contains a number of operations-related and financial covenants, including
limits on certain financial indicators. As of December 31, 2010, the
Company was not in breach of any such financial covenants. In addition, the
credit agreement includes covenants that may restrict, condition or prohibit
the Group from incurring additional debt, making acquisitions, disposing
of assets, making capital and finance lease expenditures, allowing assets to be
encumbered, changing the scope of the Group’s business and entering into a
merger agreement.
As of December 31, 2010, Intrum Justitia also had access to a 364-day facility
with Nordea totaling SEK 65 M, through the acquisition of Nice Invest
Nordic AB. As of the same date, the loan limit had been utilized for loans in
SEK totaling SEK 0.0 M (-).
GROUP PARENT COMPANY
SEK M
Maturities of long-term
bank borrowings
2010 2009 2010 2009
Between 1 and 2 years – 0.1 – 0.0
Between 2 and 3 years 2,588.6 – 2,588.6 –
Between 3 and 4 years – – – –
Between 4 and 5 years – – – –
Total 2,588.6 0.1 2,588.6 0.0
GROUP PARENT COMPANY
SEK M
Unused lines of credit
excluding guarantee facility
2010 2009 2010 2009
Expiring within one year 65.0 849.7 65.0 849.7
Expiring beyond one year 168.7 – 168.7 –
Total 233.7 849.7 233.7 849.7
NOTE 26
ACCRUED EXPENSES AND PREPAID INCOME
GROUP PARENT COMPANY
SEK M 2010 2009 2010 2009
Accrued social security
expenses
35,4 33,8 4,0 1,9
Accrued vacation pay 85,3 79,3 4,6 4,1
Accrued bonus cost 68,8 57,5 8,0 1,3
Prepaid subscription income 36,7 49,7 – –
Provisions for losses on charge
card guarantees
15,4 14,0 – –
Accrued interest 7,9 0,1 7,8 0,1
Other accrued expenses 253,1 224,0 10,2 6,6
Total 502,6 458,4 34,6 14,0
Notes
NOT 27
PLEDGED ASSETS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES
GROUP PARENT COMPANY
SEK M
Pledged assets
2010 2009 2010 2009
Deposits 2,1 5,6 – –
Restricted bank accounts 28,6 48,4 – –
Total 30,7 54,0 – –
Contingent assets
Contingent liabilities
Inga Inga Inga Inga
Charge card guarantees 1 371,2 1 270,9 – –
Performance guarantees in
collection operations
0,1 2,8 – –
Guaranty undertaking 7,1 – – –
Dispute with tax authority
in Finland
– 51.6 – –
Total 1 378,4 1 325,3 – –
Pledged assets
Refers to deposits and restricted bank balances that can be claimed by clients,
suppliers or authorities in the event that Intrum Justitia were not to meet its
contractual obligations.
Charge card guarantees
As part of its service offering in Switzerland, Intrum Justitia reviews charge
card applications for card issuers and guarantees – for a fee – that the issuers
will receive full compensation for the value of their receivables if the cardholder
fails to pay. The total guarantee amounts to SEK 1,371.2 M (1,270.9) at
year-end, of which receivables overdue by more than 30 days amounted to
SEK 5.5 M (0.8). Intrum Justitia’s risk in this operation is managed through
strict credit limits on the issuance of new charge cards and through analysis of
the credit rating of cardholders. As of year-end Intrum Justitia had allocated
SEK 15.4 M (14.0) in the balance sheet to cover payments that may arise
due to the guarantee.
Performance guarantees in collection operations
In certain cases Intrum Justitia guarantees clients a specific success rate in its
collection operations or for other services. Accrued expenses are recognized
for these guarantees corresponding to the estimated loss according to calculations
based on historical experience and future expectations.
Tax dispute
The company has been involved in a tax dispute in Finland following a tax
audit in 2002–2003. The dispute was concluded in 2010 with the Supreme
Administrative Court in Finland refusing the company leave to appeal. This
means that the ruling from the lower court, which was not in favor of the
company, still stands. The dispute concerned, among other things, the deductibility
of interest expenses in a holding company after a restructuring of
the Group in connection with a change to loan financing after its delisting
from the London Stock Exchange in 1998. As a result of the ruling, the
company has paid additional tax for 1999-2002 of SEK 41.8 M, including a
tax surcharge of SEK 21.5 M. The Company has appealed the tax surcharge.
For more information on the Group’s tax situation, see Note 8.
Other
The Group is otherwise involved in legal actions in the normal course of
business. In the opinion of the Board, none of these disputes are expected to
give rise to any significant cost.
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