Scania - Annual Report 2006

Scania annual report 20062005 2004 Present value of defined-benefit obligations 4,572 4,433 2,915 Fair value of plan assets -1,148 -1,095 -416 Deficit 3,424 3,338 2,499 Net assets not valued in full due to curtailment rule 144 81 – Recognised in balance sheet 3,568 3,419 2,499 Multi-year summary of expenses in equity 3 2006 2005 2004 Experience-based adjustments in pension liability -55 -39 – Experience-based adjustments in plan assets 22 54 – Effects of changes in actuarial assumptions -19 -773 -72 Net actuarial gains (+) and losses (-) for the year -52 -758 -72 Curtailment in value of net assets -16 -12 – Total expense/income for defined-benefit obligations recognised in equity -68 -770 -72 3 A ccording to the transitional rules in IA S 19, the multi-year summary may be built up, going forward, to include the financial year in question and the four preceding ones, starting with the first period when the new method for actuarial gains/losses is applied (Scania, 2004). NOTE 18 Other provisions Product obligations Restructuring Legal and tax disputes Other provisions 1 Total 2006 1 January 1,028 45 397 802 2,272 Provisions during the year 1,339 14 141 449 1,943 Provisions used during the year -1,056 -18 -16 -152 -1,242 Provisions reversed during the year -230 -2 -36 -46 -314 Exchange rate differences -24 -1 -29 -7 -61 31 December 1,057 38 457 1,046 2,598 of which, current provisions 1,125 of which, non-current provisions 1,473 2005 1 January 1,513 66 264 759 2,602 Provisions during the year 1,146 27 109 348 1,630 Provisions used during the year -1,182 -45 -53 -200 -1,480 Provisions reversed during the year -64 -5 -11 -117 -197 Reclassified to prepaid income -450 – – – -450 Exchange rate differences 65 2 88 12 167 31 December 1,028 45 397 802 2,272 of which, current provisions 962 of which, long-term provisions 1,310 2004 1 January 1,712 94 249 707 2,762 Provisions during the year 1,147 23 76 494 1,740 Provisions used during the year -1,217 -41 -53 -373 -1,684 Provisions reversed during the year -120 -10 -8 -68 -206 Exchange rate differences -9 0 0 -1 -10 31 December 1,513 66 264 759 2,602 of which, current provisions 1,366 of which, long-term provisions 1,236 1 “Other provisions” include provisions for potential losses on service agreements and residual value obligations. “Other provisions” also include costs connected to the concentration of axle and gearbox production in Södertälje. Uncertainty about the expected outflow dates is greatest for legal and tax disputes. Otherwise, outflow is expected to occur within one to two years. Provisions are recognised without discounting and at nominal amounts, as the time factor is not deemed to have a major influence on the size of the amounts, since a possible future outflow is relatively close in time. For a description of the nature of the obligations, see also Notes 1 and 2. During the year, the Scania Group’s provisions changed as follows: