Volvo 1997 Annual Report Download - page 63

61
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7Interest incom e (expenses)
Interest income and similar credits amounting to 218 (233; 532) inclu-
ded interest in the amount of 210 (192; 521) from subsidiaries, and
interest expenses and similar charges totaling 788 (1,048; 1,250)
included interest totaling 776 (1,007; 1,158) paid to subsidiaries.
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8Other financial income and expenses
Unrealized exchange gains on long-term receivables and liabilities in
foreign currencies are allocated to an exchange reserve. Exchange
differences on borrowings and lendings, including forward contracts
related to loans, amounted to a loss of 593 (gains: 368: 462). Since
these loans are largely designed to hedge net assets in foreign cur-
rencies, most of the translation differences do not affect consolidated
income. Other exchange differences are included in Other operating
income and expenses.
Other financial income and expenses also include guarantee com-
missions from subsidiaries, costs of confirmed credit facilities as well
as costs in connection with redemption of Volvo shares. Expenses in
1996 included 112 for the stock exchange listing of Swedish Match AB.
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9Allocations
1995 1996 1997
Group contributions received 5,460 2,578 5,655
Group contributions granted (2,144) (1,581) (1,578)
Reversal of tax equalization
reserve 446 89 89
Reversal of/ allocation to
exchange reserve (159) (108) 172
Allocation to extra depreciation (2) 0 16
Total 3,601 978 4,354
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10 Ta x es
Taxes – (2; –) in 1996 pertained to repaid profit-sharing tax.
Provision has been made for estimated tax expenses that may
arise as a consequence of the tax audit carried out mainly during
1992. Claims for which provisions are not deemed necessary amount
to an expense of 332 (339; 343), which is included in contingent lia-
bilities.
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11 Property, plant and equipm ent
Value in balance Value in balance Sales/ Reclassi- Value in balance
Acquisition cost sheet 1995 sheet 1996 Investments scrapping fications sheet 1997
Buildings 10 17 — (3) (6) 8
Land 3 4 — — — 4
Machinery and equipment 163 175 14 (138) 3 54
Construction in progress — 3 — — (3) —
Total 176 199 14 (141) (6) 66
Value in balance Value in balance Sales/ Reclassi- Value in balance Book value in
Accumulated depreciation sheet 1995 sheet 1996 Depreciation1scrapping fications sheet 19972balance sheet 1997
Buildings 2 2 — (1) — 1 7
Land — — — — — — 4
Machinery and equipment 92 100 11 (76) — 35 19
Construction in progress — — — — — — —
Total 94 102 11 (77) — 36 30
The assessed value of buildings was 3 (4; 3), and of land 2 (10; 4).
Investments in tangible long-term assets amounted to 14 (35; 17).
Capital expenditures approved but not yet implemented at year-end
1997 amounted to 1 (7; 14). An aircraft with a book value of 28 was
transferred to the newly formed partnership company, Blue Chip Jet HB.
1. Including write-downs.
2. Including accumulated write-downs.
3. Acquisition value, less depreciation.
Holdings of shares and participations are specified on page 64–66.
Changes in holdings of shares and participations are shown below.
Group companies Non-Group companies
1996 1997 1996 1997
Balance December 31,
previous year 42,110 46,893 7,317 7,025
Acquisitions 19,023 1,014 2 152
Divestments (15,600) (613) (42) (6,114)
Shareholder contribution 1,414 818 6 —
Write-downs (54) (8,244) (258) (12)
Balance December 31,
current year 46,893 39,868 7,025 1,051
The shares in Volvo Personvagnar Holding AB were written down
by 8,026 in connection with dividends received. Fortos Ventures AB
was purchased from Volvo Personvagnar Holding AB for 550. The
shares were written down by 210 in connection with dividends received.
VAC North America Inc. was acquired from Volvo Aero Corporation
for 316 and Volvo Group Treasury North America Inc. was acquired
from Volvo Group Finance Sweden AB for 148. The acquired
companies were then conveyed, together with Volvo Group North
America Inc., 34, to VNA Holding Inc. as a shareholder contribution
and increased the book value in that company.
Volvo Transport AB was sold to Volvo Transport Holding AB for 88.
A shareholder contribution of 25 was made to the newly formed
company Volvo Teknisk Utveckling AB, following which the shares of
the company were sold to Volvo Technology Transfer AB, also a new-
ly formed company.
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12 Investm ents in shares and participations
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