Volvo 2005 Annual Report Download - page 120

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The Volvo Group
116 Volvo Group 2005
Not 31 Leasing
At December 31, 2005, future rental income from noncancellable
fi nancial and operating leases (minimum leasing fees) amounted to
34,406 (25,181). Future rental income is distributed as follows:
Financial leases Operating leases
2006 7,446 4,808
2007–2010 14,060 8,197
2011 or later 107 1,532
Total 21,613 14,537
Allowance for uncollectible
future rental income (241)
Unearned rental income (1,503)
Present value of future rental income
related to noncancellable leases 19,869
At December 31, 2005, future rental payments (minimum leasing
fees) related to noncancellable leases amounted to 4,396 (4,142).
Future rental payments are distributed as follows:
Financial leases Operating leases
2006 307 1,018
2007–2010 476 1,630
2011 or later 252 713
Total 1,035 3,361
Rental expenses amounted to:
2004 2005
Financial leases:
– Contingent rents (30) 0
Operating leases:
– Contingent rents (27) (34)
– Rental payments (910) (1,000)
– Sublease payments 28 23
Total (939) (1,011)
Book value of assets subject to fi nance lease:
2004 2005
Acquisition costs:
Buildings 526 459
Land and land improvements 66 75
Machinery and equipment 236 198
Assets under operating lease 1,065 875
Total 1,893 1,607
Accumulated depreciation:
Buildings (56) (79)
Land and land improvements – –
Machinery and equipment (46) (39)
Assets under operating lease (518) (470)
Total (620) (588)
Book value:
Buildings 470 380
Land and land improvements 66 75
Machinery and equipment 190 159
Assets under operating lease 547 405
Total 1,273 1,019
Note 32 Transactions with related parties
The Volvo Group has transactions with some of its associated com-
panies. The transactions consist mainly of sales of vehicles to deal-
ers. Commercial terms and market prices apply for the supply of
goods and services to/from associated companies.
2004 2005
Sales to associated companies 279 381
Purchase from associated companies 73 296
Receivables from associated companies, Dec 31 174 206
Liabilities to associated companies, Dec 31 70 65
Group holdings of shares in associated companies are presented in
Note 15, Shares and participations.
The Volvo Group also has transactions with Renault SA and its
subsidiaries. Sales to and purchases from Renault SA amounted to
182 (277) and 3,493 (3,242). Amounts due from and due to Renault
SA amounted to 57 (81) and 762 (554) respectively, at December
31, 2005. The sales were mainly from Renault Trucks to Renault SA
and consisted of components and spare parts. The purchases were
mainly made by Renault Trucks from Renault SA and consisted
mainly of light trucks. Renault Trucks has a license from Renault SA
for the use of the trademark ”Renault”. During the year, Renault
Trucks received EUR 500,000 from Renault SA as compensation
for a common development project.
During the year, AB Volvo sold properties to market price to
members in group management for an amount of 17.
Notes to consolidated fi nancial statements