Volvo 2010 Annual Report Download - page 104

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 31 LEASING
NOTE 30 CASH-FLOW
Volvo as a lessor
At December 31, 2010, future rental income from non-cancellable
financial and operating leases (minimum leasing fees) amounted to
45,530 (50,522). Future rental income is distributed as follows:
Finance
leases
Operating
leases
2011 12,338 4,083
2012–2015 21,009 6,385
2016 or later 482 1,233
Total 33,829 11,701
Allowance for uncollectible
future rental income (445)
Unearned rental income (2,904)
Present value of future rental income
related to non-cancellable leases 30,480
Other items not affecting
cash amounted to: 2009 2010
Risk provisions and losses related to doubtful
accounts receivable/customer-financing
receivables 2,779 1,401
Capital gains/losses on the sale of subsidiaries
and other business units (108) 34
Unrealized exchange rate gains/losses
onaccounts receivable and payable (26) (44)
Provision for global profit sharing program – 350
Expenses for healthcare benefitsas a result of
the Master Agreement between Mack Trucks
and UAW (see note 24) 877 –
Provision for restructuring reserves 334 –
Write-down of assets held for sale 368 65
Othernon-cash items 173 (245)
4,397 1,561
Investments in shares and participations: 2009 2010
New issue of shares (2) (13)
Capitalcontribution (6) (31)
Acquisitions (61) (154)
Divestments 16 91
Other 15 1
(38) (106)
Acquired and divested subsidiaries
and other business units: 2009 2010
Acquired subsidiaries and
other business units (56) (214)
Divested subsidiaries and
other business units 205 831
149 617
Volvo as a lessee
At December 31, 2010, future rental payments (minimum leasing
fees) related to non-cancellable leases amounted to 3,916 (4,135).
Future rental payments are distributed as follows:
Finance
leases
Operating
leases
2011 496 815
2012-2015 486 1,605
2016 or later 66 448
Total 1,048 2,868
Rental expenses amounted to:
2009 2010
Finance leases:
Contingent rents (6) (8)
Operating leases:
Contingent rents (24) (20)
Rental payments (950) (923)
Sublease payments 8 6
Total (972) (945)
Important increase/decrease in bond loans and other loans
During 2010 the Volvo Group has reduced its borrowings as a conse-
quence of a strong cash flow and lower demands of funding from the
Customer Finance Operations.
During 2009, the Volvo Group completed a number of important
funding transactions. A five year EUR 700 M bond was issued, followed
by a three year SEK 4.2 billion bond. The Group also received a seven
year loan from the European Investment Bank equivalent to EUR 400 M.
Volvo Treasury AB, a subsidiary of AB Volvo, issued a USD 750 M
guaranteed bond offering at an interest rate of 5.95% due 2015.
FINANCIAL INFORMATION 2010
100