Volvo 2010 Annual Report Download - page 105

Download and view the complete annual report

Please find page 105 of the 2010 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 154

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

Book value of assets subject to finance lease:
2009 2010
Acquisition costs:
Buildings 123 124
Land and land improvements 61 69
Machinery and equipment 1,799 1,863
Assets under operating lease 343 338
Total 2,326 2,394
Accumulated depreciation:
Buildings (41) (41)
Land and land improvements – –
Machinery and equipment (1,090) (1,174)
Assets under operating lease (78) (81)
Total (1,209) (1,296)
Book value:
Buildings 82 83
Land and land improvements 61 69
Machinery and equipment 709 689
Assets under operating lease 265 257
Total 1,117 1,098
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.
2009 2010
Sales to associated companies 529 1,082
Purchase from associated companies 91 50
Receivables from associated companies, Dec 31 297 174
Liabilities to associated companies, Dec 31 8 125
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 52
(85) and 1,654 (2,110). Amounts due from and due to Renault s.a.s.
amounted to 15 (20) and 291 (457) respectively, at December 31,
2010. 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 2010, government grants amounting to 472 (810) have been
received and 413 (567) have been accounted for in the income state-
ment. Research and development tax credits are included with 204
(305) and have mainly been received in France and during 2009 also
in the US. Other grants were mainly received from the Swedish gov-
ernment and the European Commission.
NOTE 34 PERSONNEL
Remuneration policy decided at the Annual General Meeting
in 2010
The Annual General Meeting of 2010 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 Com-
mittee. The fixed salary shall be competitive and shall reflect the indi-
vidual's area of responsibility and performance.
In addition to the fixed salary a variable salary may be paid. The vari-
able 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 ben-
efits, 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