Volvo 1999 Annual Report Download - page 67

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65
Minority interests in profit (loss) and in equity consist
mainly of Henlys Group’s participation in Prévost Car Inc
(49%) and the minority interests in Volvo Aero Norge AS
(22%) and in The AGES Group, ALP (14%). Through
September 1998, minority interests in profit (loss) also
included Hitachi Construction Machinery Company’s
participation in Euclid-Hitachi Heavy Equipment Inc
(40%), and up to and including June 1997, General
Motors’ holding in Volvo Trucks North America Inc
(13%).
Minority interests Note 11
Specification of deferred tax assets and tax liabilities
1997 1998 1999
Deferred tax assets:
Tax loss carryforwards, gross 1,582 1,085 1,031
Other tax deductions 103 60 54
Shares and participations 236 109 55
Internal profit on inventory1– 551 223
Provision for doubtful receivables1– 227 186
Provision for guarantees1– 1,103 552
Provision for residual value risks1– 399 168
Provision for pensions1– 476 653
Provision for restructuring measures1– 562 277
Other deductible temporary differences13,838 2,157 85
5,759 6,729 3,284
Valuation allowance (1,057) (1,084) (379)
Deferred tax assets after deduction for valuation allowance 4,702 5,645 2,905
Deferred tax liabilities:
Accelerated depreciation on property, plant and equipment 1– 1,557 755
Accelerated depreciation on leasing assets 1– 897 233
LIFO valuation of inventory 1– 442 206
Untaxed reserves 1– 1,924 601
Other taxable temporary differences 5,324 956 1,662
5,324 5,776 3,457
Deferred tax liabilities, net 622 131 552
Deferred taxes are recognized after taking into account offsetting possibilities.
1 Included in other temporary differences in 1997
Intangible and tangible assets Note 12
Value in Value in Value in
balance balance Subsidaries balance
sheet sheet Invest- Sales/ acquired and Translation Reclassi- sheet
Acquisition costs 1997 1998 ments scrapping divested differences fications 31999
Goodwill 4,093 7,199 – – 325 158 (753) 6,929
Entrance fees, aircraft
engine programs 1,261 1,248 3 (131) 215 1 (43) 1,293
Other intangible assets 111 170 563 – (37) 35 996 1,727
Total intangible assets 5,465 8,617 566 (131) 503 194 200 9,949
Buildings 14,975 16,055 1,027 (362) (6,200) (15) 70 10,575
Land and
land improvements 2,299 3,303 182 (46) (899) 49 44 2,633
Machinery and equipment 146,497 51,642 2,662 (1,206) (28,895) (270) 302 24,235
Construction in progress
including advance payments 3,073 4,194 735 (73) (2,815) (71) (602) 1,368
Total buildings, machinery
and equipment 66,844 75,194 4,606 (1,687) (38,809) (307) (186) 38,811
Assets under
operating leases 16,487 27,639 5,578 (2,316) (14,229) 57 (213) 16,516
Total tangible assets 83,331 102,833 10,184 (4,003) (53,038) (250) (399) 55,327