Volvo 2000 Annual Report Download - page 70

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THE VOLVO GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Balance sheet amounts for loans were as follows:
1998 1999 2000
Bank loans 21,143 9,822 7,160
Other loans 17,733 11,301 18,668
Total 38,876 21,123 25,828
maturities of long-term loans, 7,750 (5,245; 3,825), and
commercial paper, 10,724 (5,526; 9,472).
The weighted average interest rate for the interest-
bearing current liabilities was 6.6% (5.2; 6.5).
Noninterest-bearing liabilities accounted for 27,742
(26,777; 42,499), or 52% (56; 52) of the Group’s total
current liabilities.
Balance sheet amounts for Other current liabilities
were as follows:
1998 1999 2000
Advances from customers 3,464 3,447 3,512
Current income tax liabilities 2,739 569 697
Wages, salaries and withholding taxes 3,471 2,420 2,527
VAT liabilities 1,431 701 735
Accrued expenses and prepaid income 9,626 5,680 6,960
Other liabilities 5,451 2,504 1,934
Total 26,182 15,321 16,365
Secured bank loans at year-end 2000 amounted to 1,136 (2,497; 3,731). The corresponding amount for other current
liabilities was 5,914 (3,429; 3,048).
1998 1999 2000
Property, plant and equipment – mortgages 313 367 109
Chattel mortgages 388 412 350
Receivables 1,948 1,140 1,065
Inventories 1,054 456 254
Cash, marketable securities 1,667 1,548 1,207
Other 18 7 5
Total 5,388 3,930 2,990
The liabilities for which the above assets were pledged amounted at year-end to 11,272 (9,417;10,752).
1998 1999 2000
Discounted bills 482 467 443
Guarantees:
Bank loans and trade bills – associated companies 8 – 48
Bank loans – customers and others 1,318 909 1,516
Recourse obligations 91 46 66
Tax claims 1,442 2,754 2,071
Other contingent liabilities 3,396 2,490 2,645
Total 6,737 6,666 6,789
The amount shown for guarantees to customers and
others pertaining to bank loans, 1,516 (909;1,318)
includes the unutilized portion of credit facilities, 623
(31;50). Recourse obligations pertain to receivables that
have been transferred (customer-financing operations),
less reduction for recognized credit risks. Tax liability per-
tains to actual or anticipated actions against the Volvo
Group for which provisions are not considered necessary.
Legal proceedings
In March 1999, an FH 12 Volvo truck was involved in a
fire in the Mont Blanc tunnel. The tunnel suffered consider-
able damage from the fire, which continued for 50 hours;
39 people lost their lives in the fire, and 34 vehicles were
trapped in the tunnel. It is still unclear what caused the
fire. The Mont Blanc tunnel has been closed since the
fire and will not reopen again until the summer of 2001.
An expert group has been appointed by the Commer-
cial Court in Nanterre, France to investigate the cause of
the fire and the damage it caused. At present, it is not
possible to anticipate the result of this investigation or
the results of certain other French investigations now in
progress regarding the fire. One of the investigations is
being carried out by an Investigation Magistrate appointed
to investigate potential criminal liability for the fire. In
December 2000 an expert committee assisting the Investi-
gation Magistrate filed a report on the events. Certain
companies and individuals have formally been placed
under investigation. At this stage, no Volvo entity, execu-
tive or employee has been placed under investigation.
A lawsuit has been filed with the Commercial Court in
Nanterre by the insurance company employed by the
French company that operates the tunnel against certain
Volvo Group companies and the trailer manufacturer in
which it demands compensation for the losses it claims
to have suffered. The plaintiff has requested that the court
postpone its decision until the expert group submits its
report. Certain Volvo Group companies have further been
involved in proceedings before the Civil Court of Bonneville
in proceedings instigated by the French Tunnel operating
Note 25 Current liabilities
Note 26 Assets pledged
Note 27 Contingent liabilities
Bank loans include current maturities, 2,917 (1,893;
4,379), of long-term loans. Other loans include current