Electrolux Restated Figures for 2012 Following the Change in Pension
STOCKHOLM -- March 25, 2013
As previously communicated, Electrolux (STO:ELUXA)(STO:ELUXB) applies the
amended standard for pension accounting, IAS 19 Employee Benefits, as of
January 1, 2013. The main change is that the option to use the corridor
approach – previously applied by Electrolux – has been removed. Opening
balances for 2013 and reported figures for 2012 have been restated to enable
comparison. The impact of the restatement on the financial statements,
operating income per business area and key ratios of Electrolux for the full
year of 2012 is presented in the appendix. In addition, an Excel sheet
comprising restated figures in more detail including the interim periods is
available for download at http://www.electrolux.com/ias19/.
All historical unrecognized actuarial gains or losses will be included in the
measurement of the net defined benefit liability. This increases the net
pension liability for 2012 by SEK 4,618m and reduces equity by SEK 4,098m.
Operating income for 2012 is reduced by SEK 150m, which is a result of
interest costs and return on pension liabilities and -assets no longer being
reported within operating income and that amortization of the actuarial losses
no longer are used. Financing costs for the net pension liability will be
reported within the financial net which deteriorates by SEK 174m. Income for
the period after tax declines by SEK 234m. The restatement has no impact on
the cash flow.
A short description of the amended standard is presented below. See also Note
1 in Electrolux Annual Report for 2012, www.electrolux.com/annualreport2012.
The amended standard requires the present value of defined benefit obligations
and the fair value of plan assets to be recognized in the financial statements
as a net defined benefit liability. Following the amendment, the reported net
defined benefit liability will correspond to the actual net obligations for
pensions for Electrolux.
As in the past, service costs will be reported within operating income.
Electrolux will classify the net pension obligation as a financial liability
and report financing costs in the financial net. The discount rate will be
used to calculate the financing costs of the net pension obligation. The
standard thereby removes the use of an expected return on the plan assets.
Future changes in the net defined benefit liability as a result of, for
example, adjustments to discount rates, mortality rates as well as return on
plan assets deviating from the discount rate will be presented in other
comprehensive income as they occur.
Electrolux discloses the information provided herein pursuant to the
Securities Market Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 14.00 CET on March 25, 2013.
Electrolux is a global leader in household appliances and appliances for
professional use, selling more than 40 million products to customers in more
than 150 markets every year. The company makes thoughtfully designed,
innovative solutions based on extensive consumer research, meeting the desires
of today's consumers and professionals. Electrolux products include
refrigerators, dishwashers, washing machines, cookers, air conditioners and
small appliances such as vacuum cleaners, all sold under esteemed brands like
Electrolux, AEG, Eureka and Frigidaire. In 2012 Electrolux had sales of SEK
110 billion and about 61,000 employees. For more information go to
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Peter Nyquist, Senior Vice President,
Head of Investor Relations and Financial Information
+46 8 738 60 03
Electrolux Press Hotline
+46 8 657 65 07
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