Volvo 2009 Annual Report Download - page 111

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Customer financing receivables 2008 2009
Customer financing receivables gross 99,931 83,490
Valuation allowance for doubtful customer
financing receivables (1,442) (1,513)
Customer financing receivables net 98,489 81,977
Age analysis of portfolio value – Accounts receivable and Customer financing receivables
2008 2009
Accounts receivable not due 1–30 31–90 >90 Total not due 1–30 31–90 >90 Total
Accounts receivable gross 27,045 2,008 1,266 1,953 32,272 19,705 1,032 616 1,285 22,638
Valuation allowance for doubtful
accounts receivable (400) (63) (79) (1,207) (1,749) (493) (37) (46) (725) (1,301)
Accounts receivable not
recognized as impairment losses 26,645 1,945 1,187 746 30,523 19,212 995 570 560 21,337
2008 2009
Customer financing receivables
payments due not due 1–30 31–90 >90 Total not due 1–30 31–90 >90 Total
Overdue amount –955 497 387 1,839 –655 560 740 1,955
Valuation allowance for doubtful
customer financing receivables (82) (65) (149) (146) (442) (99) (111) (159) (313) (682)
Customer financing receiv ables
not recognized as impairment
losses (82) 890 348 241 1,397 (99) 544 401 427 1,273
The table above presents overdue payments within the customer
financing operations in relation to specific reserves. The total contrac-
tual amount that the overdue payments are pertaining to are presented
in the table below. In order to provide for occured but not yet identified
customer financing receivables overdue, there are additional reserves
of 831 (1,000). The remaining exposure is secured by liens on the
purchased equipment, and, in certain circumstances, other credit
enhancements such as personal guarantees, credit insurance, liens
on other property owned by the borrower etc.
Collaterals taken in possession that meet the recognition criteria
amounted to 1,391 (748) at December 31, 2009.
Customer financing
receivables total exposure
2008 2009
not due 1–30 31–90 >90 Total not due 1–30 31–90 >90 Total
Customer financing receiv ables 83,618 9,237 4,129 2,947 99,931 67,692 7,886 4 , 511 3,401 83,490
Renegotiated financial assets
Financial assets that would otherwise have been overdue whose
terms have been renegotiated amount to 8,948 (2,826) and are
mainly related to renegotiated customer contracts within the customer
finance operations.
Change of valuation allowances for doubtful
customer financing receivables 2009
Balance sheet, December 31, preceding year 1,442
New valuation allowance charged to income 2,895
Reversal of valuation allowance charged to income (602)
Utilization of valuation allowance related to actual losses (2,168)
Translation differences (54)
Balance sheet, December 31 1,513
For details regarding the long-term customer finance receivables and
the short-term customer receivables, refer to Note 16 and 19.
107