Scania annual report 2004

NOT 16 Other provisions
During the year, the Scania Group’s provisions changed as follows:
Miscel-
Legal laneous
2003
Product Restruc- and tax proviobligations
turing disputes sions 1 Total
1 January 1,317 60 234 518 2,129
Provisions during the year 1,930 118 89 561 2,698
Provisions used during
the year – 1,411 – 80 – 59 – 335 –1,885
Provisions reversed during
the year – 54 – 2 – 9 – 21 – 86
Exchange rate differences – 70 – 2 – 6 – 16 – 94
31 December 1,712 94 249 707 2,762
2004
1 January 1,712 94 249 707 2,762
Provisions during the year 1,147 23 76 494 1,740
Provisions used during
the year – 1,217 – 41 – 53 – 373 – 1,684
Provisions reversed during
the year – 120 – 10 – 8 – 68 – 206
Exchange rate differences – 9 0 0 – 1 – 10
31 December 1,513 66 264 759 2,602
“Miscellaneous provisions” include provisions for asset appraisal in
South America. They also include provisions for possible loss on service
contracts and residual value obligations.
Of the above provisions, about SEK 1,100 m. (1,700) are expected
to be utilised within twelve months.
1 A reclassification amounting to SEK 180 m. was made from ”Miscellaneous
provisions” to ”Provisions for pension”. See Note 15.
NOTE 17 Interest-bearing liabilities
Borrowings for Customer Finance are effectively matched against contracted
payment flows with regard to currencies and interest rate refixing
periods. Other borrowings mainly occur in each respective currency.
Short- and long-term borrowing,
distributed by currency 1 2004 2003 2002
SEK 7,295 9,012 9,159
EUR 15,195 14,859 17,268
GBP 336 549 670
USD 71 308 609
Other currencies 2,716 1,479 1,741
Total 25,613 26,207 29,447
Of which, attributable to
Customer Finance 22,563 21,781 20,952
Borrowings, Vehicles and Service 3,050 4,426 8,495
1 Does not take into account derivative instruments, which have been used to
match borrowings by currency to funding requirements by currency.
The above loans fall due for
repayment as follows 2004
2005 5,804
2006 6,033
2007 7,244
2008 5,490
2009 652
2010 and thereafter 390
Total 25,613
For further information on Scania’s borrowing programme and financial
risk management, see Note 29.
NOTE 18 Accrued expenses
NOTE 18 and prepaid income
2004 2003 2002
Employee-related accrued expenses 1,731 1,798 1,599
Customary accrued expenses and
prepaid income 1 2,836 2,247 2,298
Prepaid income related to vehicles
sold with repurchase obligations 2,993 2,893 2,306
Accrued financial items 355 310 567
Total 7,915 7,248 6,770
Of the above prepaid income related to vehicles sold with repurchase
obligations, SEK 950 m. is expected to be recognised as revenue within
12 months and SEK 70 m. later than after five years.
1 In 2004, SEK 1,060 m. (965) of customary prepaid income was related to repair
and maintenance contracts.
NOTE 19 Assets pledged
2004 2003 2002
Real estate mortgages 42 142 191
Other 25 33 –
Total 67 175 191
In 2004, all collateral was pledged to credit institutions and was divided
between SEK 20 m. (30 and 10, respectively) in short-term borrowings,
SEK 41 m. (133 and 181, respectively) in long-term borrowings and
SEK 6 m. (12 and 0, respectively) as collateral for the liabilities of others.
Net debt 2004 2003 2002
Liquid assets and
short-term investments 2,498 1,916 4,339
Short-term borrowings – 5,804 – 5,380 – 6,933
Long-term borrowings – 19,809 – 20,827 – 22,514
Total – 23,115 – 24,291 – 25,108
Of which, attributable to
Customer Finance – 22,261 – 21,644 – 20,800
Net debt, Vehicles
and Service – 854 – 2,647 – 4,308
NOTES • SCANIA ANNUAL REPORT 2004 66