Lenovo 2015 Annual Report Download - page 39
Download and view the complete annual report
Please find page 39 of the 2015 Lenovo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29 -
30 -
31 -
32 -
33 -
34 -
35 -
36 -
37 -
38 -
39 -
40 -
41 -
42 -
43 -
44 -
45 -
46 -
47 -
48 -
49 -
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
 |
 |
37
2014/15 Annual Report Lenovo Group Limited
Deposits, prepayments and other receivables
Majority of other receivables of the Group are amounts due from subcontractors for part components sold in the
ordinary course of business. Included in prepayments are in-transit product shipments to customers of US$581
million as at March 31, 2015 (2014: US$413 million) by which the Group defers the cost of shipped products
awaiting revenue recognition until the goods are delivered and revenue is recognized.
Equity attributable to owners of the Company (US$’000) 2015 2014
Share capital 2,689,882 1,650,101
Reserves 1,393,761 1,360,029
4,083,643 3,010,130
Share capital
Share capital amounted to US$2,690 million as at March 31, 2015. The increase in share capital is due to the
issuance of ordinary shares of the Company as part of the purchase consideration for the business combination of
System X and Motorola totalling US$1,039 million.
Non-current liabilities (US$’000) 2015 2014
Borrowings 1,885,848 10,125
Warranty provision 338,700 277,231
Deferred revenue 548,300 438,385
Retirement benefit obligations 399,782 156,515
Deferred income tax liabilities 200,730 142,881
Other non-current liabilities 2,440,435 844,914
5,813,795 1,870,051
Borrowings
Bank borrowings (classified as non-current) increased by US$1,876 million mainly due to the issuance of 5-year
US$1.5 billion notes bearing annual interest at 4.7% due in May 2019 and the drawn down of a term loan of
US$400 million due in December 2018. The proceeds would be used for general corporate purposes including
working capital, and to fund any acquisition activities.
Warranty provision
The Group records warranty liabilities at the time of sale for the estimated costs that will be incurred under its basic
limited warranty. The specific warranty terms and conditions vary depending upon the product and the country in
which it was sold, but generally include technical support, repair parts and labor associated with warranty repair
and service actions. The period ranges from one to three years. The aggregate current and non-current amounts
of warranty provision increased by 37 percent when compared with last year, which is mainly due to the amounts
brought in from Motorola and System X totalling US$397 million. The Group reevaluates its estimates on a quarterly
basis to assess the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary.