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70 The Volvo Group
Notes to consolidated financial statements
Note 14 Other long-term receivables
2002 2003 2004
Convertible debenture loan in Henlys Group plc12,118 1,746 –
Other loans to external parties21,364 871 1,377
Prepaid pensions 706 152 364
Deferred tax assets 7,611 6,828 5,012
Other receivables2686 890 1,022
Total 12,485 10,487 7,775
Note 15 Inventories
2002 2003 2004
Finished products 17,987 17,425 17,861
Production materials, etc. 10,318 9,034 10,737
Total128,305 26,459 28,598
1 Of which inventories valued to net realisable value amounting to 7,500.
Increase (decrease) in allowance for inventory obsolescence
Balance sheet, December 31, preceding year 3,017 2,710 2,246
Increase in allowance for inventory obsolescence charged to income 248 203 244
Scrapping (348) (338) (226)
Acquired and divested operations (1) (15) 14
Translation differences (262) (160) (85)
Reclassifications, etc. 56 (154) (69)
Balance sheet, December 31 2,710 2,246 2,124
Changes in the Volvo Group’s holdings of shares and participations: 2002 2003 2004
Balance sheet, December 31, preceding year 27,798 27,492 22,206
Acquisitions and divestments, net 97 (720) (20,740)
New issue of shares and shareholders’ contributions 89 280 45
Share of income in associated companies, before income taxes 138 (41) 27
Income taxes related to associated companies (65) (30) (5)
Dividends (64) (51) 0
Net of write-downs/revaluations (7) (4,073) 774
Change in Group structure (210) (470) (280)
Translation differences (203) (118) (29)
Other (81) (63) 5
Balance sheet, December 31 27,492 22,206 2,003
Note 13 Long-term customer-financing receivables
2002 2003 2004
Installment credits 14,239 13,011 14,726
Financial leasing 10,341 9,975 10,334
Other receivables 627 462 127
Total 25,207 23,448 25,187
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. In October 2004 Volvo acquired the
remaining 50 percent of Prévost Car Inc. In conjunction with this agreement
the debenture loan was converted into shares in a the new US based com-
pany, Peach, which holds 100 percent of Bluebird.
2Effective in 2003, Volvo has adopted RR27, Financial instruments;
Disclosure and presentation. See further in Note 1. As a result of the appli-
cation, loans increased by 657 (–) and other receivables increased by 15 (–)
at December 31, 2004.