In August, 1999 the Electrolux US subsidiary White Consolidated Industries Inc. (WCI), appealed a decision that was rendered by a U.S. district court in Pennsylvania, USA in litigation on pension commitments. The U.S. Court of Appeals for the Third Circuit has confirmed the district court’s decision by an opinion filed June 15, 2000. WCI has not yet decided whether to appeal the decision further.
Already in the third quarter of 1999, in accordance with applicable accounting standards, Electrolux made a non-cash pre-tax provision of USD 225 million (SEK 1,841m). The after-tax charge was USD 140 million (SEK 1,141 m).
The amount of the liability is the subject of a separate administrative proceeding that is still in progress. The plaintiff is a government agency, the Pension Benefit Guaranty Corporation (PBGC), which is responsible for the payment of defaulting pension obligations. Already in the third quarter of 1999, in accordance with applicable accounting standards, Electrolux made a non-cash pre-tax provision of USD 225 million (SEK 1,841m). The after-tax charge was USD 140 million (SEK 1,141 m).
The amount of the liability is the subject of a separate administrative proceeding that is still in progress. The plaintiff is a government agency, the Pension Benefit Guaranty Corporation (PBGC), which is responsible for the payment of defaulting pension obligations.
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