Volvo 2012 Annual Report Download - page 125

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Reclassifications and other mainly consist of assets under operating lease
related to legal sales transactions, where revenue is deferred and
accounted for as operating lease revenue. Assets classified as inventory
will, when the operating lease model is applied for revenue recognition, be
reclassified from inventory to assets under operating leases, when the
legal sales transaction occurs. If the product is returned after the lease
period, there will again be a reclassification from assets under operating
leases to inventory. When a buy-back agreement has expired, but the
related product is not returned, the cost and the accumulated depreciation
are reversed in reclassification and other, within the line item assets under
operating leases. Most reclassifications within tangible assets relate to
construction in progress, which are reclassified to the respective category
within property, plant and equipment.
Investment properties
The acquisition cost of the investment properties amounted to 1,474
(1,625) at year-end. Capital expenditures during 2012 amounted to 22
(39). Accumulated depreciation amounted to 720 (742) at year-end, of
which 45 (53) refers 2012. The estimated fair value of investment proper-
ties amounted to SEK 2.3 billion (2.5) at year-end. 95% of the investment
properties were leased out during the year (91). Net income for the year
was affected by 220 (235) in rental income from investment properties
and of 44 (53) in direct costs.
Tangible assets,
Accumulated depreciation
Buildings
Land and
land
improve-
ments
Machinery
and
equipment3
Construction in
progress, includ-
ing advance
payments
Total investment
property, property,
plant and equipment
Assets
under
operating
leases6
Total
tangible
assets
Accumulated depreciation
as of Dec 31, 2010 15,567 1,066 49,473 –66,106 9,448 75,554
Depreciation41,191 77 4,856 –6,124 4,621 10,745
Sales/scrapping (260) (9) (1,647) –(1,916) (2,407) (4,323)
Acquired and divested operations0 0 (18) –(18) 0(18)
Translation differences 338 20 819 –1,177 20 1,197
Reclassified to assets held for sale (496) (23) (2,980) –(3,499) (94) (3,593)
Reclassifications and other (24) 4101 –81 (2,945) (2,864)
Accumulated depreciation
as of Dec 31,2011 16,316 1,135 50,604 –68,055 8,643 76,698
Depreciation41,176 91 4,681 –5,948 5,616 11, 564
Sales/scrapping (102) (13) (1,835) –(1,950) (2,577) (4,527)
Acquired and divested operations (499) (24) (2,873) –(3,396) (162) (3,558)
Translation differences (1,131) (81) (3,078) –(4,290) (385) (4,675)
Reclassifiedfrom assets held for sale 496 23 3,003 –3,522 109 3,631
Reclassifications and other (73) (18) (65) –(156) (1,898) (2,054)
Accumulated depreciation
as of Dec 31, 2012 16,183 1,113 50,437 –67,733 9,346 77,079
B/S Net value in balance sheet
as of Dec 31, 20112, 5 15,813 12,123 20,152 6,452 54,540 23,922 78,462
B/S Net value in balance sheet
as of Dec 31, 20122, 5 16,041 11,485 19,814 7, 66 4 55,004 29,022 84,026
1 Includes capitalized borrowing costs of 134 (83).
2 Acquisition costs less accumulated depreciation, amortization and write-downs.
3 Machinery and equipment pertains mainly to production related assets.
4 Of which write-down 195 (28).
5 Of which, investment property 754 (883) and property, plant and equipment 54,250 (53,657).
6 The increase is mainly explained by capital expenditure in the rental business.
121