Volvo 2003 Annual Report Download - page 60

58
The Volvo Group
Notes to consolidated financial statements
Note 29 Leasing
Note 30 Related parties
At December 31, 2003, future rental income from noncancellable
financial and operating leases (minimum leasing fees) amounted to
27,586 (28,327; 31,109), of which 25,548 (25,737; 28,183) pertains
to customer-financing companies. Future rental income is distributed
as follows:
Financial leases Operating leases
2004 6,480 3,976
2005–2008 10,927 7,151
2009 or later 91 747
Total 17,498 11,874
Allowance for uncollectible
future rental income (168)
Unearned rental income (1,618)
Present value of future
rental income 15,712
At December 31, 2003, future rental payments (minimum leasing
fees) related to noncancellable leases amounted to 5,009 (4,335;
5,192).
Future rental payments are distributed as follows:
Financial leases Operating leases
2004 355 1,148
2005–2008 937 1,653
2009 or later 67 849
Total 1,359 3,650
Rental expenses amounted to:
2001 2002 2003
Financial leases:
– Contingent rents (4) (11) (29)
Operating leases:
– Contingent rents (82) (46) (58)
– Rental payments (899) (1,238) (1,187)
– Sublease payments 14 16 69
Total (971) (1,279) (1,205)
Book value of assets subject to finance lease:
2002 2003
Acquisition costs:
Buildings 110 143
Land and land improvements 32 66
Machinery and equipment 24 69
Assets under operating lease 1,499 1,129
Total 1,665 1,407
Accumulated depreciation:
Buildings (62) (27)
Land and land improvements – –
Machinery and equipment (11) (3)
Assets under operating lease (646) (561)
Total (719) (591)
Book value:
Buildings 48 116
Land and land improvements 32 66
Machinery and equipment 13 66
Assets under operating lease 853 568
Total 946 816
The Volvo Group has transactions with some of its associated companies. The transactions consist mainly of sales of vehicles to dealers.
Commercial terms and market prices apply for the supply of goods and services to/ from associated companies. Bilia AB was reported as an
associated company until June 30, 2003.
2001 2002 2003
Sales to associated companies 2,179 2,813 1,486
Purchase from associated companies 18 44 24
Receivables from associated companies, Dec 31 65 370 253
Liabilities to associated companies, Dec 31 38 6 32
Group holdings of shares in associated companies are shown in Note 13, Shares and participations.
The Volvo Group also has transactions with Renault S.A. and its sub-
sidiaries. Sales to and purchases from Renault S.A. amounted to
2,893 (1,523; 1,839) and 2,756 (3,608; 3,265). Amounts due from
and due to Renault S.A. amounted to 501 (426; 568) and 537
(642;1,128) respectively, at December 31, 2003. The sales were
mainly from Renault Trucks to Renault S.A. and consisted of compo-
nents and spare parts. The purchases were mainly made by Renault
Trucks from Renault S.A. and consisted mainly of light trucks.
On May 2 2003, Volvo CE North America acquired assets associ-
ated with the distribution business of L.B. Smith Inc., which is not
consolidated since the holding is intended to be temporary. The sales
from Volvo CE to these operations from May 2 to December 31,
2003 amounted to 1,301 and the receivables at year-end amounted
to 15.