Volvo 2013 Annual Report Download - page 125

Divestments
In May 2013 the consultancy company DRD, wholly-owned by UD Trucks
with product development operations and approximately 500 employees,
was divested. The divestment resulted in a capital gain of SEK 99 M in the
second quarter 2013.
In September 2013, the Volvo CE Central European distribution network
operations was divested. The divestment resulted in a capital gain of SEK92
in the third quarter 2013.
The divestment of Volvo Aero was fi nalized during 2013.
In addition to that the Volvo Group has not made any other divestments
during 2013, which solely or jointly have had a signifi cant impact on the
Volvo Group’s fi nancial statements.
The impact on the Volvo Group’s balance sheet and cash-fl ow statement
in connection with the divestment of subsidiaries and other business units
are specifi ed in the following table.
Divestments 2013 2012
Intangible assets – (3,220)
Property, plant and equipment (140) (1,786)
Assets under operating lease (162) (244)
Shares and participations – (17)
Inventories (127) (2,505)
Other receivables (914) (1,395)
Cash and cash equivalents (87) (323)
Other provisions 36 1,108
Other liabilities 472 3,385
Divested net assets (922) (4,997)
Goodwill (27) (300)
Total (949) (5,297)
Additional purchase price – 653
Cash and cash equivalents received 1,090 5,240
Cash and cash equivalents,
divested companies (87) (323)
Effect on Group cash
and cash equivalents 1,003 4,917
Effect on Group net
fi nancial position 537 5,594
Assets and liabilities held for sale
As of December 31, 2013, the Volvo Group recognized assets amounting to
SEK 8,104 M and liabilities amounting to SEK 350 M as assets and liabil-
ities held for sale. This referred mainly to the divestment of Volvo Rents in
North America. Volvo Rents offers rental of comprehensive range of m a-
chines intended for the construction and engineering industry, including
Volvo CE products. Volvo Rents has operations in the US, Canada and
Puerto Rico and has about 2,100 employees. As part of its strategic effort
to focus on the core business, the Volvo Group has agreed to divest Volvo
Rents. Per December 31, 2013, Volvo Rents were classifi ed as assets held
for sale and valued at fair value, a revaluation was therefore recognized
within Other operating income and expense amounting to SEK 1.5 billion.
The fair value is based on the purchase price stated in the sale and pur-
chase agreement signed between the buyer and the seller, the purchase
price is considered as a level 1 in accordance with the fair value hierarcy in
IFRS13. Translation differences on foreign operations of 13 was included
in other comprehensive income.
There was also real estate amounting to SEK 1,014 M classifi ed as assets
held for sale at year end 2013. For the comparison year 2012, there were
no assets or liabilities classifi ed as held for sale.
Assets and liabilities held for sale Dec 31,
2013 Dec 31, 2012
Intangible assets – –
Tangible assets 7,185 –
Inventories 221 –
Accounts receivable – –
Other current receivables 684 –
Other assets 14 –
B/S Total assets 8,104 –
Trade payables 76 –
Provisions 127
Other current liabilities 137 –
Other liabilities 10
B/S Total liabilities 350 –
Acquisitions and divestments after the end of the period
Volvo Rents in North America was divested per January 31, 2014. The Volvo
Group has not made any other signifi cant acquisitions or divestments
after the end of the period that have had any signifi cant impact on the
Volvo Group.
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