Securitas Annual Report 2007

Note 33. Other long-term provisions
The movement in the balance sheet for provisions for pensions and similar commitments is provided in Note 32. The movement in the balance sheet for deferred tax liabilities is provided in Note 15.
MSEK Liability insurance related claims reserves1 Provisions for taxes Other provisions Total
Opening balance 595.7 224.9 1,359.1 2,179.7
Reclassification 54.6 54.6
New/increased provisions 249.4 43.4 827.5 1,120.3
Provisions utilized –28.5 –12.0 –923.6 –964.1
Reversal of        
unutilized provisions –52.6 –12.2 –64.8
Translation differences –39.7 –4.8 11.6 –32.9
Less short-term items –641.4 –641.4
Closing balance 724.3 251.5 675.6 1,651.4
1 Liability insurance-related claims reserves primarily consist of estimated provisions for the portion
of claims payable by the Group, i.e. its self-retention.    
Other provisions      
MSEK 2007 2006 2005
Provisions related to Loomis Cash Management Ltd1 824.4
Other items 675.6 534.7 121.4
Total other provisions 675.6 1,359.1 121.4
1 Further information is provided in Note 4.      
Note 34. Short-term loan liabilities1
MSEK 2007 2006 2005
Convertible debenture loans      
EUR, 2002/2007, series 1–42 2,300.0
Total short-term convertible debenture loans 2,300.0
EMTN Nom MEUR 350, 2000/2006, 6.125 %3 3,244.6
EMTN Nom MEUR 500, 2001/2008, 6.125 %4 4,717.1
Commercial paper issued5 2,023.4 1,468.1 1,744.0
Finance leases 114.6 141.4 174.2
Other short-term loans6 4,897.4 4,001.8 4,306.4
Total other-short-term loan      
liabilities excluding derivatives 11,752.5 5,611.3 9,469.2
Other derivative positions      
Derivatives with negative fair value, short-term 39.0 83.5 146.5
Total other short-term loan liabilities 11,791.5 5,694.8 9,615.7
1 For further information regarding financial instruments refer to Note 6.    
2 The convertible debenture loan, EUR 2002–2007 series 1–4 fell due on May 2, 2007.  
3 The bond loan EMTN Nom MEUR 350 was issued by the Parent Company.  
Interest on the bond loan refers to the coupon rate of interest for the entire loan period. The loan
matured on January 12, 2006. The bond loan EMTN Nom MEUR 500, 2001/2008 matures on March 14, 2008 and is in 2007 reported
under Other short-term liabilities. Previously, this loan has been reported under Long-term liabilities. Commercial paper is issued by the Parent Company within the framework of a MSEK 5,000 Swedish
commercial paper program. Other short-term loans include loans raised within the framework of a MUSD 1,100 (1,100 and 1,100)
Multi Currency Revolving Credit Facility maturing in June 2011, as well as loans raised within the framework of the MEUR 550 syndicated loan facility arranged in May 2007. It also includes loans raised within the framework of a MUSD 250 (250 and 250) securitization programme.
Note 35. Other current liabilities
MSEK 2007 2006 2005
Staff-related items 5,462.3 4,709.4 5,053.2
Accrued interest and financial expenses 354.7 279.0 524.7
Other accrued expenses and deferred income 795.7 515.8 1,136.0
Advance payments from customers 215.9 177.3 355.6
Other items1 1,616.8 1,281.7 1,648.7
Total other current liabilities 8,445.4 6,963.2 8,718.2
1 Other items include VAT liability.      
Note 36. Other short-term provisions1
MSEK 2007 2006 2005
Liability insurance-related claims reserves2 694.6 819.0 1,006.5
Provisions related to Loomis Cash Management Ltd3 483.5
Other items 157.9
Total other short-term provisions 1,336.0 819.0 1,006.5
1 Further information is provided in Note 33.      
2 Liability insurance-related claims reserves primarily consist of estimated provisions for the portion
of claims payable by the Group, that is its self-retention. Refers to provisions recognized as items affecting comparability (here stated at the balance sheet rate).
Note 37. Pledged assets
MSEK 2007 2006 2005
Real estate mortgages 76.4
Pension balances defined contribution plans 58.3 54.0
Total pledged assets 58.3 130.4
Note 38. Contingent liabilities
MSEK 2007 2006 2005
Sureties and guarantees 17.3 4.5 109.8
Other contingent liabilities 90.0 148.8
Total contingent liabilities 17.3 94.5 258.6
The events of September 11, 2001
A detailed account of the developments surrounding the events of September 11, 2001 has been presented in press releases and interim and annual reports for 2001 to 2006. All investigations of the events of September 11 continue to indicate that Globe in no way has been negligent in its actions or is otherwise at fault for the events. This was confirmed through the release of previously confidential Congressional testimony by the Director of the FBI. The customer contract gives Globe the right to tender claims for damages to the customer. Globe is a separate operation and is a separate legal entity. Any liability for claims thus is limited to Globe’s own ability to pay and the insurance protection available to it. In November 2002, the U.S. Congress restored the liability cap for eligible screening companies such as Globe.
Under this legislation, any potential liability arising out of the terrorist events of September 11 would be limited to the amount of liability insurance coverage maintained.
As previously disclosed, a special fund has been established by the U.S. Government to compensate victims of the September 11 tragedy. Over 98 percent of persons claiming on behalf of World Trade Center deceased victims has elected to obtain compensation from the victim’s compensation fund rather than pursue litigation. Claimants under the fund waive their right to seek compensation through litigation. The deadlines for filing wrongful death, bodily injury and property damage claims have now all expired. Cross claims may still be filed by existing parties to the already filed claims.
Together with the relevant airline and other parties, Globe or another Securitas company is a defendant in 25 lawsuits pertaining to the events of September 11. The reduction of outstanding cases is due to the settlement of cases. The proceedings against the Securitas companies other than Globe have, with the consent of the Court and the plaintiffs, been temporarily stayed. In all the suits, a number of persons other than Globe and Securitas companies are co-defendants. Seven (7) of the remaining suits pertain to persons who died or who were injured and 18 relate to damage to property and businesses owing to the events of September 11. Certain of the property claims are believed to be substantial and the aggregate, estimated value of the claims filed exceeds the insurance coverage estimated to exist as a potential source of recovery. Due to the statutory liability cap, any such claims are limited to the amount of liability coverage maintained. Globe and the other companies in the Group named as defendants are challenging these suits. All coverage disputes with the relevant 9/11 insurers have been resolved.
Any liabilities arising out of the September 11 litigation are not expected to materially impact Securitas’ business operation or financial position.
Brazil – Estrela Azul
In connection with the efforts of Securitas to expand its activities in South America, Securitas entered into an agreement in 2005 with respect to the possible acquisition of a security guarding company in Brazil. In order to support this company while required governmental approvals were obtained, Securitas provided a bank guarantee for the benefit of the subject company. The governmental approvals took much longer than anticipated to obtain and during such period the financial condition of the target company substantially deteriorated. Given the decline in the financial condition of the company, in December 2006 Securitas exercised its right not to complete the acquisition following the receipt of the government approval. In view of the decision not to complete the subject transaction, a provision in the amount of the bank guarantee was recognized as of December 31, 2006.
The company has since filed for protection from its creditors under Brazilian legislation providing for a judicial restructuring process. In connection with the commencement of this judicial restructuring process, the company has asserted a claim of MUSD 155 against Securitas alleging that Securitas is responsible for the company’s failure. Securitas, being a creditor in the insolvency matter, has objected to the company’s restructuring plan proposed in the judicial restructuring process. The insolvency judge decided against Securitas and this decision has now been appealed by Securitas. In addition, a number of employees of Estrela Azul who claim to be owed wages have named Securitas in addition to other parties in pending labour suits. Securitas management believes that these claims are without merit.
Germany – US Army
Securitas Germany has filed a law suit against the US Army for unpaid services under a now expired contract for guarding services. Securitas’ claim is approximately MEUR 4.4. The US Army has filed a counterclaim of MEUR 10.5 plus penalties (counterclaim amount maximized to three times the base claim) alleging over-billings by Securitas. Securitas is taking adequate steps to secure a favorable outcome of its claim. Management currently believes the US Army counterclaim to be without merit.
Other Proceedings
Over the years, Securitas has made a number of acquisitions in different countries. As a result of such acquisitions, certain contingent liabilities of the businesses acquired have been assumed. The risks relating to such contingent liabilities are covered by contractual indemnification, insurance or adequate reserves.
Companies within the Securitas Group are involved in a number of other legal proceedings arising out of the ordinary course of their businesses. Any liabilities arising out of such proceedings are not expected to be material to the business operations or the financial position of the Group.
Note 39. Discontinued operations
Discontinued operations are defined as the two previous primary segments Direct and Securitas Systems (Systems) as they were presented in the Securitas Group. The previous primary segments Direct and Systems as included in the Securitas Group will differ from the listed companies Securitas Direct AB and Securitas Systems AB. The primary segments have been accounted for under IAS 14 Segment reporting. Reporting for segments differs from reporting on a stand alone basis in that:
  •  Segment reporting is limited to operating income and exclude certain intra-group  transactions that are not of an operating nature.
  • Segment reporting consequently excludes financial items and tax.
  •  When adjustments have been made to the consolidated financial statements of the  Securitas Group, these adjustments are based on historical segment data already published and in addition to this, adjustments for finance net and tax attributable to the segments. These items were previously recognized under the heading Other.
  •  Total sales has been adjusted for intra-group sales to and from Direct and Systems.  This adjustment impacts the intra-group sales previously recognized in Direct and Systems, but also in the continuing operations as well as the elimination of intragroup sales included under the heading Eliminations.
  • Operating income before and after amortization has been adjusted for an intra-group  margin relating to combination contracts between Security Services Europe and Systems. This intra-group margin was previously included under the heading Eliminations.
In summary the restatement according to IFRS 5 has been applied as follows:
  • The statement of income for the Securitas Group includes the net income in Direct and Systems up to September 29, 2006.
  • The net income in Direct and Systems up to September 29, 2006 is included on the line Net income, discontinued operations in the consolidated statement of income. This means that the impact from Direct and Systems on each line in the consolidated statement of income has been adjusted and is recognized as a net total on the line Net income, discontinued operations. A specification of the net income in discontinued operations is given below.
  •  This adjustment has also been carried out for all comparatives in the consolidated  statement of income.
  • The cash flow impact from Direct and Systems up to September 29, 2006 is included  on the line Cash flow for the period, discontinued operations in the cash flow statement according to Securitas’ Financial Model. This means that the impact from Direct and Systems on each line has been adjusted and is recognized as a net total on the line Cash flow for the period, discontinued operations.
  •  The formal consolidated statement of cash flow is however not restated and the  impact from discontinued operations is shown line by line for Cash flow from operations, discontinued operations, Cash flow from investing activities, discontinued operations and Cash flow from financing activities, discontinued operations.
  • This adjustment has also been carried out for all comparatives in the cash flow statement according to Securitas’ financial model and the formal consolidated statement of cash flow.
  • In accordance with IFRS 5, the comparatives for the balance sheet are not adjusted.  However the table for capital employed and financing according to Securitas’ financial model separates the segment assets in discontinued operations also for comparatives. The net assets (operating capital employed and capital employed) previously included employed, discontinued operations.
  • Key ratios have been restated where applicable.
  • Information of the balances relating to discontinued operations as of September 29, 2006 are included below. The corresponding impact on shareholders’ equity of the Securitas Group is included in Note 29, Changes in shareholders’ equity, on the line Dividend of net assets in Direct and Systems.
In the tables below the following information is provided:
  • Condensed statement of income for discontinued operations.
  • Condensed statement of cash flow for discontinued operations.
  • Specification of the condensed statement of income.
  • Assets and liabilities in discontinued operations as of September 29, 2006.
  • Capital employed and financing in discontinued operations as of  September 29, 2006.
Income      
MSEK 2007 2006 2005
Total Sales 6,511.3 7,813.0
Operating income before amortization 599.6 919.7
Amortization of acquisition      
related intangible assets –18.4 –24.4
Acquisition related restructuring costs –14.3 –34.0
Operating income after amortization 566.9 861.3
Financial income and expense –36.2 –39.9
Income before taxes 530.7 821.4
Taxes –192.2 –265.7
Net income for the year 338.5 555.7
Cash flow      
MSEK 2007 2006 2005
Cash flow from operations 563.4 965.9
Cash flow from investing activities –676.4 –1,060.6
Cash flow from financing activities –1,138.0 2,120.9
Cash flow for the year –1,251.0 2,026.2
Specification to income      
MSEK 2007 2006 2005
Total Sales      
Securitas Systems and Direct 6,952.6 8,504.0
Intra-group sales –441.3 –691.0
Total Sales 6,511.3 7,813.0
       
Operating income before amortization      
Securitas Systems and Direct 608.0 926.3
Intra-group margin –8.4 –6.6
Operating income before amortization 599.6 919.7
       
Operating income after amortization      
Securitas Systems and Direct 575.3 867.9
Intra-group margin –8.4 –6.6
Operating income after amortization 566.9 861.3
Assets and liabilities  
MSEK Sep 29, 2006
Goodwill 2,513.5
Acquisition related intangible assets 263.6
Other intangible assets 121.0
Tangible fixed assets 1,513.4
Non-interest bearing financial fixed assets 128.6
Interest bearing financial fixed assets 3.1
Non-interest bearing current assets 3,037.0
Liquid funds 639.5
Total assets 8,219.7
   
Non-interest bearing long-term liabilities 1.1
Interest bearing long-term liabilities 2,201.3
Non-interest bearing provisions 227.6
Non-interest bearing current liabilities 2,102.0
Interest bearing current liabilities 73.7
Total liabilities 4,605.7
Net assets in discontinued operations 3,614.0
Capital employed and financing  
MSEK Sep 29, 2006
Operating capital employed 2,469.3
Goodwill 2,513.5
Acquisition related intangible assets 263.6
Capital employed 5,246.4
Net debt –1,632.4
Net assets in discontinued operations 3,614.0
Note 33. Other long-term provisions
The movement in the balance sheet for provisions for pensions and similar commitments is provided in Note 32. The movement in the balance sheet for deferred tax liabilities is provided in Note 15.
 

MSEK Liability insurance related claims reserves1 Provisions for taxes Other provisions Total
Opening balance 595.7 224.9 1,359.1 2,179.7
Reclassification 54.6 54.6
New/increased provisions 249.4 43.4 827.5 1,120.3
Provisions utilized –28.5 –12.0 –923.6 –964.1
Reversal of        
unutilized provisions –52.6 –12.2 –64.8
Translation differences –39.7 –4.8 11.6 –32.9
Less short-term items –641.4 –641.4
Closing balance 724.3 251.5 675.6 1,651.4
1 Liability insurance-related claims reserves primarily consist of estimated provisions for the portion
of claims payable by the Group, i.e. its self-retention.    
 

Other provisions      
MSEK 2007 2006 2005
Provisions related to Loomis Cash Management Ltd1 824.4
Other items 675.6 534.7 121.4
Total other provisions 675.6 1,359.1 121.4
1 Further information is provided in Note 4.      
 
Note 34. Short-term loan liabilities1
 

MSEK 2007 2006 2005
Convertible debenture loans      
EUR, 2002/2007, series 1–42 2,300.0
Total short-term convertible debenture loans 2,300.0
EMTN Nom MEUR 350, 2000/2006, 6.125 %3 3,244.6
EMTN Nom MEUR 500, 2001/2008, 6.125 %4 4,717.1
Commercial paper issued5 2,023.4 1,468.1 1,744.0
Finance leases 114.6 141.4 174.2
Other short-term loans6 4,897.4 4,001.8 4,306.4
Total other-short-term loan      
liabilities excluding derivatives 11,752.5 5,611.3 9,469.2
Other derivative positions      
Derivatives with negative fair value, short-term 39.0 83.5 146.5
Total other short-term loan liabilities 11,791.5 5,694.8 9,615.7
1 For further information regarding financial instruments refer to Note 6.    
2 The convertible debenture loan, EUR 2002–2007 series 1–4 fell due on May 2, 2007.  
3 The bond loan EMTN Nom MEUR 350 was issued by the Parent Company.  
Interest on the bond loan refers to the coupon rate of interest for the entire loan period. The loan
matured on January 12, 2006. The bond loan EMTN Nom MEUR 500, 2001/2008 matures on March 14, 2008 and is in 2007 reported
under Other short-term liabilities. Previously, this loan has been reported under Long-term liabilities. Commercial paper is issued by the Parent Company within the framework of a MSEK 5,000 Swedish
commercial paper program. Other short-term loans include loans raised within the framework of a MUSD 1,100 (1,100 and 1,100)
Multi Currency Revolving Credit Facility maturing in June 2011, as well as loans raised within the framework of the MEUR 550 syndicated loan facility arranged in May 2007. It also includes loans raised within the framework of a MUSD 250 (250 and 250) securitization programme.
 
Note 35. Other current liabilities
 

MSEK 2007 2006 2005
Staff-related items 5,462.3 4,709.4 5,053.2
Accrued interest and financial expenses 354.7 279.0 524.7
Other accrued expenses and deferred income 795.7 515.8 1,136.0
Advance payments from customers 215.9 177.3 355.6
Other items1 1,616.8 1,281.7 1,648.7
Total other current liabilities 8,445.4 6,963.2 8,718.2
1 Other items include VAT liability.      
 
Note 36. Other short-term provisions1
 

MSEK 2007 2006 2005
Liability insurance-related claims reserves2 694.6 819.0 1,006.5
Provisions related to Loomis Cash Management Ltd3 483.5
Other items 157.9
Total other short-term provisions 1,336.0 819.0 1,006.5
1 Further information is provided in Note 33.      
2 Liability insurance-related claims reserves primarily consist of estimated provisions for the portion
of claims payable by the Group, that is its self-retention. Refers to provisions recognized as items affecting comparability (here stated at the balance sheet rate).
 
Note 37. Pledged assets
 

MSEK 2007 2006 2005
Real estate mortgages 76.4
Pension balances defined contribution plans 58.3 54.0
Total pledged assets 58.3 130.4
 
Note 38. Contingent liabilities
 

MSEK 2007 2006 2005
Sureties and guarantees 17.3 4.5 109.8
Other contingent liabilities 90.0 148.8
Total contingent liabilities 17.3 94.5 258.6
 
The events of September 11, 2001
A detailed account of the developments surrounding the events of September 11, 2001 has been presented in press releases and interim and annual reports for 2001 to 2006. All investigations of the events of September 11 continue to indicate that Globe in no way has been negligent in its actions or is otherwise at fault for the events. This was confirmed through the release of previously confidential Congressional testimony by the Director of the FBI. The customer contract gives Globe the right to tender claims for damages to the customer. Globe is a separate operation and is a separate legal entity. Any liability for claims thus is limited to Globe’s own ability to pay and the insurance protection available to it. In November 2002, the U.S. Congress restored the liability cap for eligible screening companies such as Globe.
Under this legislation, any potential liability arising out of the terrorist events of September 11 would be limited to the amount of liability insurance coverage maintained.
 
As previously disclosed, a special fund has been established by the U.S. Government to compensate victims of the September 11 tragedy. Over 98 percent of persons claiming on behalf of World Trade Center deceased victims has elected to obtain compensation from the victim’s compensation fund rather than pursue litigation. Claimants under the fund waive their right to seek compensation through litigation. The deadlines for filing wrongful death, bodily injury and property damage claims have now all expired. Cross claims may still be filed by existing parties to the already filed claims.
 
Together with the relevant airline and other parties, Globe or another Securitas company is a defendant in 25 lawsuits pertaining to the events of September 11. The reduction of outstanding cases is due to the settlement of cases. The proceedings against the Securitas companies other than Globe have, with the consent of the Court and the plaintiffs, been temporarily stayed. In all the suits, a number of persons other than Globe and Securitas companies are co-defendants. Seven (7) of the remaining suits pertain to persons who died or who were injured and 18 relate to damage to property and businesses owing to the events of September 11. Certain of the property claims are believed to be substantial and the aggregate, estimated value of the claims filed exceeds the insurance coverage estimated to exist as a potential source of recovery. Due to the statutory liability cap, any such claims are limited to the amount of liability coverage maintained. Globe and the other companies in the Group named as defendants are challenging these suits. All coverage disputes with the relevant 9/11 insurers have been resolved.
 
Any liabilities arising out of the September 11 litigation are not expected to materially impact Securitas’ business operation or financial position.
 
Brazil – Estrela Azul
In connection with the efforts of Securitas to expand its activities in South America, Securitas entered into an agreement in 2005 with respect to the possible acquisition of a security guarding company in Brazil. In order to support this company while required governmental approvals were obtained, Securitas provided a bank guarantee for the benefit of the subject company. The governmental approvals took much longer than anticipated to obtain and during such period the financial condition of the target company substantially deteriorated. Given the decline in the financial condition of the company, in December 2006 Securitas exercised its right not to complete the acquisition following the receipt of the government approval. In view of the decision not to complete the subject transaction, a provision in the amount of the bank guarantee was recognized as of December 31, 2006.
 
The company has since filed for protection from its creditors under Brazilian legislation providing for a judicial restructuring process. In connection with the commencement of this judicial restructuring process, the company has asserted a claim of MUSD 155 against Securitas alleging that Securitas is responsible for the company’s failure. Securitas, being a creditor in the insolvency matter, has objected to the company’s restructuring plan proposed in the judicial restructuring process. The insolvency judge decided against Securitas and this decision has now been appealed by Securitas. In addition, a number of employees of Estrela Azul who claim to be owed wages have named Securitas in addition to other parties in pending labour suits. Securitas management believes that these claims are without merit.

Page 81

 
Germany – US Army
Securitas Germany has filed a law suit against the US Army for unpaid services under a now expired contract for guarding services. Securitas’ claim is approximately MEUR 4.4. The US Army has filed a counterclaim of MEUR 10.5 plus penalties (counterclaim amount maximized to three times the base claim) alleging over-billings by Securitas. Securitas is taking adequate steps to secure a favorable outcome of its claim. Management currently believes the US Army counterclaim to be without merit.
 
Other Proceedings
Over the years, Securitas has made a number of acquisitions in different countries. As a result of such acquisitions, certain contingent liabilities of the businesses acquired have been assumed. The risks relating to such contingent liabilities are covered by contractual indemnification, insurance or adequate reserves.
 
Companies within the Securitas Group are involved in a number of other legal proceedings arising out of the ordinary course of their businesses. Any liabilities arising out of such proceedings are not expected to be material to the business operations or the financial position of the Group.
 
Note 39. Discontinued operations
Discontinued operations are defined as the two previous primary segments Direct and Securitas Systems (Systems) as they were presented in the Securitas Group. The previous primary segments Direct and Systems as included in the Securitas Group will differ from the listed companies Securitas Direct AB and Securitas Systems AB. The primary segments have been accounted for under IAS 14 Segment reporting. Reporting for segments differs from reporting on a stand alone basis in that:
  •  Segment reporting is limited to operating income and exclude certain intra-group  transactions that are not of an operating nature.
  • Segment reporting consequently excludes financial items and tax.
  •  When adjustments have been made to the consolidated financial statements of the  Securitas Group, these adjustments are based on historical segment data already published and in addition to this, adjustments for finance net and tax attributable to the segments. These items were previously recognized under the heading Other.
  •  Total sales has been adjusted for intra-group sales to and from Direct and Systems.  This adjustment impacts the intra-group sales previously recognized in Direct and Systems, but also in the continuing operations as well as the elimination of intragroup sales included under the heading Eliminations.
  • Operating income before and after amortization has been adjusted for an intra-group  margin relating to combination contracts between Security Services Europe and Systems. This intra-group margin was previously included under the heading Eliminations.
 
In summary the restatement according to IFRS 5 has been applied as follows:
  • The statement of income for the Securitas Group includes the net income in Direct and Systems up to September 29, 2006.
  • The net income in Direct and Systems up to September 29, 2006 is included on the line Net income, discontinued operations in the consolidated statement of income. This means that the impact from Direct and Systems on each line in the consolidated statement of income has been adjusted and is recognized as a net total on the line Net income, discontinued operations. A specification of the net income in discontinued operations is given below.
  •  This adjustment has also been carried out for all comparatives in the consolidated  statement of income.
  • The cash flow impact from Direct and Systems up to September 29, 2006 is included  on the line Cash flow for the period, discontinued operations in the cash flow statement according to Securitas’ Financial Model. This means that the impact from Direct and Systems on each line has been adjusted and is recognized as a net total on the line Cash flow for the period, discontinued operations.
  •  The formal consolidated statement of cash flow is however not restated and the  impact from discontinued operations is shown line by line for Cash flow from operations, discontinued operations, Cash flow from investing activities, discontinued operations and Cash flow from financing activities, discontinued operations.
  • This adjustment has also been carried out for all comparatives in the cash flow statement according to Securitas’ financial model and the formal consolidated statement of cash flow.
  • In accordance with IFRS 5, the comparatives for the balance sheet are not adjusted.  However the table for capital employed and financing according to Securitas’ financial model separates the segment assets in discontinued operations also for comparatives. The net assets (operating capital employed and capital employed) previously included employed, discontinued operations.
  • Key ratios have been restated where applicable.
  • Information of the balances relating to discontinued operations as of September 29, 2006 are included below. The corresponding impact on shareholders’ equity of the Securitas Group is included in Note 29, Changes in shareholders’ equity, on the line Dividend of net assets in Direct and Systems.
 
In the tables below the following information is provided:
  • Condensed statement of income for discontinued operations.
  • Condensed statement of cash flow for discontinued operations.
  • Specification of the condensed statement of income.
  • Assets and liabilities in discontinued operations as of September 29, 2006.
  • Capital employed and financing in discontinued operations as of  September 29, 2006.
 

Income      
MSEK 2007 2006 2005
Total Sales 6,511.3 7,813.0
Operating income before amortization 599.6 919.7
Amortization of acquisition      
related intangible assets –18.4 –24.4
Acquisition related restructuring costs –14.3 –34.0
Operating income after amortization 566.9 861.3
Financial income and expense –36.2 –39.9
Income before taxes 530.7 821.4
Taxes –192.2 –265.7
Net income for the year 338.5 555.7
 

Cash flow      
MSEK 2007 2006 2005
Cash flow from operations 563.4 965.9
Cash flow from investing activities –676.4 –1,060.6
Cash flow from financing activities –1,138.0 2,120.9
Cash flow for the year –1,251.0 2,026.2
 

Specification to income      
MSEK 2007 2006 2005
Total Sales      
Securitas Systems and Direct 6,952.6 8,504.0
Intra-group sales –441.3 –691.0
Total Sales 6,511.3 7,813.0
       
Operating income before amortization      
Securitas Systems and Direct 608.0 926.3
Intra-group margin –8.4 –6.6
Operating income before amortization 599.6 919.7
       
Operating income after amortization      
Securitas Systems and Direct 575.3 867.9
Intra-group margin –8.4 –6.6
Operating income after amortization 566.9 861.3
 

Assets and liabilities  
MSEK Sep 29, 2006
Goodwill 2,513.5
Acquisition related intangible assets 263.6
Other intangible assets 121.0
Tangible fixed assets 1,513.4
Non-interest bearing financial fixed assets 128.6
Interest bearing financial fixed assets 3.1
Non-interest bearing current assets 3,037.0
Liquid funds 639.5
Total assets 8,219.7
   
Non-interest bearing long-term liabilities 1.1
Interest bearing long-term liabilities 2,201.3
Non-interest bearing provisions 227.6
Non-interest bearing current liabilities 2,102.0
Interest bearing current liabilities 73.7
Total liabilities 4,605.7
Net assets in discontinued operations 3,614.0
 

Capital employed and financing  
MSEK Sep 29, 2006
Operating capital employed 2,469.3
Goodwill 2,513.5
Acquisition related intangible assets 263.6
Capital employed 5,246.4
Net debt –1,632.4
Net assets in discontinued operations 3,614.0