Volvo 2003 Annual Report Download - page 52

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50
The Volvo Group
Notes to consolidated financial statements
Note 15 Other long-term receivables
2001 2002 2003
Convertible debenture loan in Henlys Group Plc 12,561 2,118 1,746
Other loans to external parties 2,635 1,364 871
Prepaid pensions 358 706 152
Deferred tax assets 7,741 7,611 6,828
Other receivables 1,161 686 890
Total 14,456 12,485 10,487
Note 16 Inventories
2001 2002 2003
Finished products 20,303 17,987 17,425
Production materials, etc. 10,772 10,318 9,034
Total 131,075 28,305 26,459
1 Of which inventories valued to net realisable value amounting to 12,246.
Increase (decrease) in allowance for inventory obsolescence
Balance sheet, December 31, preceding year 1,333 3,017 2,710
Increase in allowance for inventory obsolescence charged to income 252 248 203
Scrapping (162) (348) (338)
Acquired and divested operations 1,421 (1) (15)
Translation differences 224 (262) (160)
Reclassifications, etc. (51) 56 (154)
Balance sheet, December 31 3,017 2,710 2,246
Changes in the Volvo Group’s holdings of shares and participations: 2001 2002 2003
Balance sheet, December 31, preceding year 30,481 27,798 27,492
Acquisitions and divestments, net (2,844) 97 (720)
New issue of shares and shareholders’ contributions 94 89 280
Share of income in associated companies, before income taxes (2) 138 (41)
Income taxes related to associated companies (42) (65) (30)
Dividends (74) (64) (51)
Write-downs (53) (7) (4,073)
Change in group structure – (210) (470)
Translation differences 97 (203) (118)
Other 141 (81) (63)
Balance sheet, December 31 27,798 27,492 22,206
Note 14 Long-term customer-financing receivables
2001 2002 2003
Installment credits 13,668 14,239 13,011
Financial leasing 11,534 10,341 9,975
Other receivables 873 627 462
Total 26,075 25,207 23,448
1In October 1999, Volvo issued a convertible debenture loan to Henlys Group
Plc of USD 240 M in connection with Henlys Group’s acquisition of the US
school bus manufacturer Bluebird. The convertible debenture loan matures
in October 2009. In February and March 2004, Henlys Group announced
that its earnings for 2004 would be significantly lower than previously
anticipated. After this announcement, the quoted market price of Henlys
Group’s shares fell significantly. In connection with the preparation of these
financial statements, Volvo has evaluated the financial situation of Henlys
Group and assessed that no impairment loss has been incurred on the
convertible debenture loan.