Volvo 2000 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 2000 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

69
Other items not affecting cash pertain to surplus funds
from SPP –508 (–; –), capital gains on the sale of sub-
sidiaries and other business units, –573 (–26,900; –366),
risk provisions and losses related to doubtful receivables
and customer-financing receivables 522 (766; 526) and
other –120 (17; –186).
Net investments in customer-financing receivables
resulted in 2000 in a negative cash flow of SEK 4.5 bil-
lion (7.1). In this respect, liquid funds were reduced by
SEK 15.5 billion (14.2) pertaining to new investments in
financial leasing contracts and installment contracts.
Investments in shares and participations, net, in 2000
amounted to SEK 1.6 billion, of which SEK 1.3 billion
was attributable to additional investments in Scania. Net
investments in shares and participations during 1999 of
SEK 25.9 billion pertained in entirety to future invest-
ments, of which the acquisition of shares in Scania AB and
Mitsubishi Motors Corporation amounted to SEK 23.0
billion and SEK 2.3 billion, respectively. During 1998,
changes in the Group’s shareholdings resulted in a posi-
tive cash flow of SEK 5.5 billion, of which the sale of
shares, mainly Pharmacia & Upjohn Inc., contributed SEK
6.9 billion, while investments in shares reduced liquid
funds by SEK 1.4 billion.
Net investments during 2000 in loans to external par-
ties contributed to SEK 0.3 billion liquid funds. Net invest-
ments during 1999 in loans to external parties amounted
to SEK 3.2 billion, of which SEK 2.0 billion pertained to
payment of the convertible debenture loan in Henlys group
and SEK 1.3 billion new investment in corporate bonds.
The change during the year in bonds and other loans
generated liquid funds of SEK 8.1 billion (16.3). New
borrowing during the year, mainly the issue of bond loans
and a commercial paper program, provided SEK 19.5 bil-
lion (19.0). Amortization during the year amounted to
SEK 11.4 billion (23.0).
At December 31, 2000, future rental income from non-
cancellable financial and operating leases (minimum
leasing fees) amounted to 26,445 (19,910; 27,272), of
which 25,664 (19,383; 26,670) pertains to customer-
financing companies. Future rental income is distributed
as follows:
Financial leases Operating leases
2001 5,590 3,668
2002-2005 10,704 5,664
2006 or later 776 43
Total 17,070 9,375
Allowance for uncollectible
future rental income (164)
Unearned rental income (1,629)
Present value of future
rental income 15,277
At December 31, 2000, future rental payments (mini-
mum leasing fees) related to noncancellable leases
amounted to 4,385 (5,328; 7,042).
Future rental payments are distributed as follows:
Financial leases Operating leases
2001 544 906
2002–2005 980 1,692
2006 or later 140 123
Total 1,664 2,721
Rental expenses amount to:
1998 1999 2000
Financial leases:
– Contingent rents – – (1)
Operating leases:
– Contingent rents – – (80)
– Rental payments – – (837)
– Sublease payments – – 1
Total (1,826) (1,193) (918)
Book value of assets subject to finance lease:
2000
Acquisition costs:
Buildings 48
Land and land improvements 26
Machinery and equipment 12
Assets under operating lease 2,217
Total 2,303
Accumulated depreciation:
Buildings (3)
Land and land improvements (2)
Machinery and equipment (4)
Assets under operating lease (1,022)
Total (1,031)
Book value:
Buildings 45
Land and land improvements 24
Machinery and equipment 8
Assets under operating lease 1,195
Total 1,272
Note 28 Cash flow
Note 29 Leasing
company against Bureau Central Francais, the owner of
the truck and its insurers. These proceedings partly over-
lap with the proceedings in the Commercial Court of
Nanterre. Volvo Group companies are also involved in
proceedings regarding minor matters in connection with
the tunnel fire before courts in Aosta, Italy, and Brussels,
Belgium. Volvo is unable to determine the ultimate out-
come of the litigation referred to above.
Volvo is involved in a number of other legal proceed-
ings incidental to the normal conduct of its businesses.
Volvo does not believe that any liabilities related to such
proceedings are likely to be, in the aggregate, material to
the financial condition of the Group.