Volvo 2009 Annual Report Download - page 105

Book value of assets subject to finance lease:
2008 2009
Acquisition costs:
Buildings 131 123
Land and land improvements 65 61
Machinery and equipment 2,609 1,799
Assets under operating lease 392 343
Total 3,197 2,326
Accumulated depreciation:
Buildings (40) (41)
Land and land improvements – 0
Machinery and equipment (1,769) (1,090)
Assets under operating lease (127) (78)
Total (1,936) (1,209)
Book value:
Buildings 91 82
Land and land improvements 65 61
Machinery and equipment 840 709
Assets under operating lease 265 265
Total 1,261 1,117
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 dealers.
Commercial terms and market prices apply for the supply of goods
and services to/from associated companies.
2008 2009
Sales to associated companies 1,222 529
Purchase from associated companies 116 91
Receivables from associated companies, Dec 31 273 297
Liabilities to associated companies, Dec 31 63 8
Group holdings of shares in associated companies are presented in
note 15, Shares and participations.
The Volvo Group also has transactions with Renault s.a.s. and its sub-
sidiaries. Sales to and purchases from Renault s.a.s. amounted to 85
(113) and 2,110 (2,833). Amounts due from and due to Renault s.a.s.
amounted to 20 (31) and 457 (539) respectively, at December 31,
2009. The sales were mainly from Renault Trucks to Renault s.a.s. and
consisted of components and spare parts. The purchases were mainly
made by Renault Trucks from Renault s.a.s. and consisted mainly of
light trucks. Renault Trucks has a license from Renault s.a.s. for the
use of the trademark Renault.
Note 33 Government grants
During 2009, government grants amounting to 810 (492) have been
received and 567 (465) have been accounted for in the income state-
ment. R&D credits are included with 305 (237). The grants were
mainly received from the European Commission and the Swedish
government. During 2007 Volvo Buses received a grant of 116 from
the Swedish Energy Agency for the development of hybrid technology.
25 (48) of the 116 have been accounted for during 2009.
Note 34 Personnel
Remuneration policy decided at
the Annual General Meeting in 2009
The Annual General Meeting of 2009 decided upon principles for
remuneration and other employment terms for the members of Volvo’s
Group Executive Committee (“Remuneration Policy”). The accepted
principles can be summarized as follows:
The guiding principle is that remuneration and other employment
terms for company management, shall be competitive to ensure that
Volvo can attract and retain skilled persons in the Group Executive
Committee. The fixed salary shall be competitive and shall reflect the
individual’s area of responsibility and performance.
In addition to the fixed salary a variable salary may be paid. The
variable salary may for the CEO amount to a maximum of 65% of the
fixed salary and for the other senior executives a maximum of 50% of
the fixed salary. The variable salary shall be based on the Volvo Group’s
and/or the executive’s respective Business Area’s or Business Unit’s
fulfilment of certain financial goals. These goals are decided by the
Board of AB Volvo and may be related, for example, to operating
income and/or cash flow.
In addition to fixed and variable salary, normally other customary
benefits, such as company car and company healthcare are provided.
In individual cases, accommodation benefits and other benefits may
be provided.
In addition to pension benefits provided by law and collective bargain
agreements, the members of the Group Executive Committee domiciled
in Sweden are offered a defined-contribution pension plan whereby
101