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Acquisitions after the end of the period
Volvo has not made any acquisitions after the end of the period that
have had a significant impact on the Volvo Group.
Divestments
The divestment of Volvo Aero’s US subsidiary, Volvo Aero Services,
was completed in the beginning of October. A total of SEK 515 M has
negatively affected Volvo Group’s operating result, of which SEK
368 M was reported in 2009. As a consequence of the Group’s
accounting principles described in note 1 the same transaction
affected Volvo Aero’s operating result negatively by SEK 538 M. The
sale of VAS is due to Volvo Aero’s strategy of focusing on its core
operations of developing and manufacturing components for aircraft
engines, combined with the goal of reducing the company’s tied-up
capital.
In May Volvo CE sold its Russian distribution network with assets
amounting to SEK 200 M, the transaction had a minor effect on Volvo’s
result. In July Volvo CE sold its Turkish distribution network with assets
and liabilities of SEK 232 M and SEK 36 M, respectively, classified as
assets held for sale. The transaction had a positive impact on the
Group’s operating income of SEK 107 M.
The effects on the Volvo Group’s balance sheet and cash-flow state-
ment in connection with the divestment of subsidiaries and other busi-
ness units are specified in the following table:
Acquisitions 2009 2010
Intangible assets 3 0
Property, plant and equipment 4 32
Assets under operating lease 19 468
Inventories 20 56
Current receivables 2 99
Cash and cash equivalents 0 15
Other assets 9 12
Minority interests 0 20
Provisions 6 (22)
Loans 0 (374)
Liabilities (48) (143)
15 163
Goodwill 41 52
Acquired net assets 56 215
Cash and cash equivalents paid (56) (229)
Cash and cash equivalents according
to acquisition analysis 0 15
Effect on Group cash
and cash equivalents (56) (214)
Divestments 2009 2010
Intangible assets (3) 0
Property, plant and equipment (59) (32)
Assets under operating lease (42) (190)
Shares and participations 65 0
Inventories (280) (1,096)
Other receivables (112) (334)
Cash and cash equivalents (116) (176)
Provisions 80 (10)
Other liabilities 254 540
(213) (1,298)
Goodwill 0 (122)
Divested net assets (213) (1,420)
Cash and cash equivalents received 321 1,007
Cash and cash equivalents, divested companies (116) (176)
Effect on Group cash and cash equivalents 205 831
Assets and liabilities held for sale
At the end of 2010 the Volvo Group reports assets amounting to 136
and liabilities amounting to 135 as assets and liabilities held for sale.
Depending on the progress with the sales process, changes in the
business environment, access to liquidity, market outlook, etc. the fair
value of remaining assets held for sale may change in the forthcoming
periods or when the transactions are finalized. Reclassified assets
and liabilities pertain to smaller operations. For the comparison year
2009, the Volvo Group reported assets amounting to 1,692 and liabil-
ities to 272 as assets and liabilities classified as held for sale.
Assets and liabilities held for sale 2009 2010
Intangible assets 54 0
Tangible assets 618 43
Inventories 776 8
Accounts receivable 109 56
Other current receivables 111 24
Other assets 24 5
Total assets 1,692 136
Trade payables 108 31
Other current liabilities 164 104
Total liabilities 272 135
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