Volvo 1998 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 1998 Volvo 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.

Page out of 112

  • 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

63
Intangible and tangible assets Note 12
Value in Value in Subsidaries Value in
balance balance acquired balance
sheet sheet Invest- Sales/ and Translation Reclassi- sheet
Acquisition costs 1996 1997 ments scrapping divested differences fications 1998
Goodwill 2,974 4,093 – – 2,861 233 12 7,199
Patents 102 111 23 (22) 45 12 1 170
Aircraft engines costs 1,115 1,261 – – – 1 (14) 1,248
Total intangible assets 4,191 5,465 23 (22) 2,906 246 (1) 8,617
Buildings 13,166 14,975 755 (486) 291 376 144 16,055
Land and
land improvements 2,116 2,299 219 (156) 714 185 42 3,303
Machinery and equipment138,782 46,497 6,119 (3,584) (152) 913 1,849 51,642
Construction in progress
including advance
payments 4,860 3,073 3,433 (40) (56) 36 (2,252) 4,194
Total buildings, machinery
and equipment 58,924 66,844 10,526 (4,266) 797 1,510 (217) 75,194
Assets under
operating leases 6,698 16,487 12,654 (2,616) 118 996 – 27,639
Total tangible assets 65,622 83,331 23,180 (6,882) 915 2,506 (217) 102,833
Book
Value in Value in Subsidaries Value in value in
balance balance acquired balance balance
Accumulated sheet sheet Depre- Sales/ and Translation Reclassi- sheet sheet
depreciation 1996 1997 ciations2scrapping divested differences fications 1998 19983
Goodwill 811 1,018 512 — 7 70 (15) 1,592 5,607
Patents 50 64 22 (15) 11 10 21 113 57
Aircraft engine costs 1,053 1,099 40 — — 1 (6) 1,134 114
Total intangible assets 1,914 2,181 574 (15) 18 81 0 2,839 5,778
Buildings 5,728 6,478 550 (212) (14) 131 (93) 6,840 9,215
Land improvements 516 554 38 (7) (13) 15 10 597 2,706
Machinery and equipment126,222 29,019 5,165 (2,710) (461) 588 (51) 31,550 20,092
Construction in progress,
including advance payments — — — — — — — – 4,194
Total buildings, machinery
and equipment 32,466 36,051 5,753 (2,929) (488) 734 (134) 38,987 36,207
Assets under operating leases 1,730 2,986 3,299 (1,176) (6) 246 5 5,354 22,285
Total tangible assets 34,196 39,037 9,052 (4,105) (494) 980 (129) 44,341 58,492
1 Machinery and equipment pertains mainly to production equipment.
2 Includes write-downs.
3 Acquisition cost less accumulated depreciation.
Capital expenditures in property, plant and equipment
amounted to 10,526 (9,863; 8,200). Investments in
assets under operating leases amounted to 12,654
(9,773; 3,851).
Capital expenditures approved but not yet implemented
at December 31, 1998, amounted to SEK 18.0 billion
(20.0; 16.8).
Replacement cost
(unaudited information)
At year-end 1998, the replacement cost of properties,
machinery and equipment, based on methods of calcula-
tion applied by Volvo and which in certain cases involves
the use of indexes, was estimated at SEK 42.2 billion
after calculated depreciation. The corresponding value
shown in the Volvo Group balance sheet was SEK 36.2
billion. Calculated depreciation based on the present
replacement cost amounted to SEK 6.5 billion in 1998.
The corresponding depreciation in the consolidated in-
come statement, which is based on historical cost, was
SEK 5.8 billion.