Volvo 2014 Annual Report Download - page 145

Reclassifi cations 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 classifi ed as inventory will, when the
operating lease model is applied for revenue recognition, be reclassifi ed
from inventory to assets under operating lease, when the legal sales
transaction occurs. If the product is returned after the lease period, there
will be a reclassifi cation from assets under operating leases back to
inventory. When a buy-back agreement has expired, but the related prod-
uct is not returned, the cost and the accumulated depreciation are
reversed in reclassifi cation and other, within the line item assets under
operating leases. Most reclassifi cations within tangible assets relate to
construction in progress, which are reclassifi ed to the respective category
within property, plant and equipment.
Investment properties
The acquisition value of investment properties at year-end amounted to
SEK 600 M (689). Capital expenditures during 2014 amounted to SEK 3
M (9). Accumulated depreciation amounted to SEK 335 M (362) at year-
end, of which SEK 23 M (26) refers to 2014. The estimated fair value of
investment properties amounted to SEK 0.7 billion (0.6) at year-end. 97%
(98) of the area available for lease were leased out during the year. Net
income for the year was affected by SEK 78 M (259) in rental income
from investment properties and of SEK 13 M (63) 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
leases
Total
tangible
assets
Opening balance 2013 16,114 1,113 50,093 – 67,320 9,346 76,666
Depreciation41,157 113 4,951 – 6,221 6,146 12,367
Sales/scrapping (252) (8) (3,075) – (3,335) (2,790) (6,125)
Acquired and divested operations
6(36) (3) (64) – (103) (73) (176)
Translation differences (891) (61) (2,166) – (3,118) 219 (2,899)
Reclassifi ed to/from assets held for sale (595) (35) (268) – (898) (1,238) (2,136)
Reclassifi cations and other (69) 5 (342) – (406) (1,559) (1,965)
Accumulated depreciation
as of Dec 31, 2013 15,428 1,124 49,129 – 65,681 10,051 75,732
Depreciation41,308 395 5,001 11 6,716 5,680 12,396
Sales/scrapping (689) (49) (4,430) – (5,168) (2,710) (7,878)
Acquired and divested operations
6(622) (36) (20) – (678) (1,306) (1,984)
Translation differences 928 66 2,795 – 3,789 1,143 4,932
Reclassifi ed to/from assets held for sale 459 14 219 – 693 1,214 1,906
Reclassifi cations and other 10 (367) 0 – (358) (1,908) (2,266)
Accumulated depreciation
as of Dec 31, 2014 16,822 1,147 52,694 11 70,675 12,164 82,839
B/S Net value in balance sheet
as of Dec 31, 20132, 5 15,447 10,040 21,970 4,776 52,233 25,672
777,905
B/S Net value in balance sheet
as of Dec 31, 2014
2, 5 17,131 10,535 23,337 4,179 55,181 31, 218 786,399
1 Including capitalized borrowing costs of SEK 160 M (73).
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 SEK 541 M (650). These are mainly pertaining to restructuring activities as communicated on pages
24, 72 and 76, whereof buildings SEK 140 M, land and land improvements SEK 319 M.
5 Of which investment property SEK 266 M (327) and property, plant and equipment SEK 54,915 M (51,906).
6 Read more in note 3, Acquisitions and divestments of shares in subsidiaries, for a description of acquired and divested operations. Including sale of Volvo Rents 2014.
7 Of which Sales with residual value commitment SEK 10,837 M (10,041), Rental fl eet SEK 1,153 M (734).
FINANCIAL INFORMATION 2014
141