Scania Annual Report 2011
Scania Annual Report 2011 Scania Annual Report 2011
100 notes to the consolidated financial statements NOTE 6 Financial Services Financial Services offers various forms of financing solutions in which it provides loans, ordinarily with maturities of between 3–5 years, with the vehicle as underlying collateral. Market conditions as well as civil law and tax rules in each country often determine what financin g solution is offered. Financing consists mainly of financial leases, in which the right of ownership of the vehicle remains with Scania until the receivable is paid in its entirety. If hire purchase contracts are offered, the right of ownership is transferred to the customer on the date of sale, but Financial Services receives collateral in the form of a lien on the vehicle. If Financial Services offers a lease when delivering vehicles for which substantial risks remain with Scania, primarily attributable to guaranteed residual values, the contract is recognised as an operating lease. 2011 2010 2009 Interest income 2,157 1,916 2,303 Lease income 2,215 2,281 2,363 Depreciation –1,749 –1,797 –1,842 Interest expenses –1,274 –1,229 –1,672 Net interest income 1,349 1,171 1,152 Other income and expenses 81 66 44 Gross income 1,430 1,237 1,196 Selling and administrative expenses –615 –573 –538 Bad debt expenses 1 –298 –493 –833 Operating income 517 171 –175 1 These expenses were equivalent to 0.76 (1.29 and 1.90, respectively) percent of the average credit portfolio. Financial receivables (hire purchase contracts and financial leases) 2011 2010 2009 1 January 27,640 31,506 38,187 New receivables 22,259 13,762 11,204 Loan principal payments/ terminated contracts –15,131 –14,684 –16,336 Change in value adjustments 72 25 –360 Exchange rate differences –906 –2,969 –1,189 Carrying amount, 31 December 33,934 27,640 31,506 Total receivables and lease assets 3 42,235 36,137 40,404 3 The number of contracts in the portfolio on 31 December totalled about 95,000 (86,000 and 88,000, respectively). Net investments in financial leases 2011 2010 2009 Receivables related to future minimum lease payments 23,364 22,039 27,988 Less: Reserve for bad debts –546 –756 –891 Imputed interest –2,447 –2,039 –2,589 Net investment 4 20,371 19,244 24,508 4 Included in the consolidated financial statements under “current” and “non-current interest-bearing receivables”. Lease assets (operating leases) 2011 2010 2009 1 January 8,497 8,898 9,033 New contracts 3,486 3,913 3,789 Depreciation –1,749 –1,797 –1,842 Terminated contracts –1,815 –1,604 –1,873 Change in value adjustments –15 –17 57 Exchange rate differences –103 –896 –266 Carrying amount, 31 December 2 8,301 8,497 8,898 2 The consolidated balance sheet also includes elimination of deferred gain. See Note 3. Future minimum lease payments 5 Operating leases Financial leases 2012 1,722 9,225 2013 1,282 6,216 2014 872 4,168 2015 448 2,231 2016 187 905 2017 and thereafter 60 619 Total 4,571 23,364 5 “Minimum lease payments” refers to the future flows of incoming payments to the contract port folio, including interest. For operating leases, the residual value is not included since this is not a minimum lease payment for these contracts. financial reports Scania 2011
101 NOTE 7 Financial income and expenses 2011 2010 2009 Interest income Bank balances and financial investments 572 333 320 Derivatives 1 168 53 19 Expected return on pension assets 80 78 68 Total interest income 820 464 407 Interest expenses Borrowings –1,043 –855 –1,514 Derivatives 1 –63 –368 –570 Total borrowings and derivatives –1,106 –1,223 –2,084 Less interest expenses recognised in Financial Services 2 843 883 1,241 Pension liability –296 –317 –286 Total interest expenses –559 –657 –1,129 Total interest net 261 –193 –722 Other financial income 3 116 70 227 Other financial expenses 3 –163 –90 –376 Total other financial income and expenses –47 –20 –149 Net financial items 214 –213 –871 1 Refers to interest on derivatives that are used to match interest on borrowings and lending as well as the interest component in derivatives that are used to convert borrowing currencies to lending currencies. 2 Recognised in the operating income of Financial Services. 3 Refers to SEK 42 m. (19 and –15, respectively) in market valuation of financial instruments for which hedge accounting is not applied, as well as exchange rate differences and bank-related costs. NOTE 8 Taxes Tax expense/income for the year 2011 2010 2009 Current tax 1 –3,164 –3,831 –1,178 Deferred tax –26 401 705 Total –3,190 –3,430 –473 1 Of which, taxes paid: –3,548 –2,555 –1,136 Deferred tax is attributable to the following: 2011 2010 2009 Deferred tax related to temporary differences 138 239 –435 Deferred tax due to changes in tax rates and tax rules 2 –2 7 –14 Deferred tax income due to tax value of loss carry-forwards recognised during the year 47 454 132 Deferred tax expense due to utilisation of previously recognised tax value of tax loss carry-forwards –215 –118 –38 Deferred tax related to change in provision to tax allocation reserve –12 –178 1,105 Other deferred tax liabilities/assets 18 –3 –45 Total –26 401 705 2 The effect of changes in tax rates mainly refers to Great Britain and Chile (during 2011), Chile (during 2010) and Russia (during 2009). financial reports Scania 2011
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100<br />
notes to the consolidated financial statements<br />
NOTE 6 Financial Services<br />
Financial Services offers various forms of financing solutions in which<br />
it provides loans, ordinarily with maturities of between 3–5 years, with<br />
the vehicle as underlying collateral. Market conditions as well as civil<br />
law and tax rules in each country often determine what financin g solution<br />
is offered. Financing consists mainly of financial leases, in which the<br />
right of ownership of the vehicle remains with <strong>Scania</strong> until the receivable<br />
is paid in its entirety. If hire purchase contracts are offered, the<br />
right of ownership is transferred to the customer on the date of sale, but<br />
Financial Services receives collateral in the form of a lien on the vehicle.<br />
If Financial Services offers a lease when delivering vehicles for which<br />
substantial risks remain with <strong>Scania</strong>, primarily attributable to guaranteed<br />
residual values, the contract is recognised as an operating lease.<br />
<strong>2011</strong> 2010 2009<br />
Interest income 2,157 1,916 2,303<br />
Lease income 2,215 2,281 2,363<br />
Depreciation –1,749 –1,797 –1,842<br />
Interest expenses –1,274 –1,229 –1,672<br />
Net interest income 1,349 1,171 1,152<br />
Other income and expenses 81 66 44<br />
Gross income 1,430 1,237 1,196<br />
Selling and administrative expenses –615 –573 –538<br />
Bad debt expenses 1 –298 –493 –833<br />
Operating income 517 171 –175<br />
1 These expenses were equivalent to 0.76 (1.29 and 1.90, respectively) percent<br />
of the average credit portfolio.<br />
Financial receivables<br />
(hire purchase contracts<br />
and financial leases) <strong>2011</strong> 2010 2009<br />
1 January 27,640 31,506 38,187<br />
New receivables 22,259 13,762 11,204<br />
Loan principal payments/<br />
terminated contracts –15,131 –14,684 –16,336<br />
Change in value adjustments 72 25 –360<br />
Exchange rate differences –906 –2,969 –1,189<br />
Carrying amount, 31 December 33,934 27,640 31,506<br />
Total receivables and<br />
lease assets 3 42,235 36,137 40,404<br />
3 The number of contracts in the portfolio on 31 December totalled about 95,000<br />
(86,000 and 88,000, respectively).<br />
Net investments in<br />
financial leases <strong>2011</strong> 2010 2009<br />
Receivables related to future<br />
minimum lease payments 23,364 22,039 27,988<br />
Less:<br />
Reserve for bad debts –546 –756 –891<br />
Imputed interest –2,447 –2,039 –2,589<br />
Net investment 4 20,371 19,244 24,508<br />
4 Included in the consolidated financial statements under “current” and “non-current<br />
interest-bearing receivables”.<br />
Lease assets (operating leases) <strong>2011</strong> 2010 2009<br />
1 January 8,497 8,898 9,033<br />
New contracts 3,486 3,913 3,789<br />
Depreciation –1,749 –1,797 –1,842<br />
Terminated contracts –1,815 –1,604 –1,873<br />
Change in value adjustments –15 –17 57<br />
Exchange rate differences –103 –896 –266<br />
Carrying amount, 31 December 2 8,301 8,497 8,898<br />
2 The consolidated balance sheet also includes elimination of deferred gain. See Note 3.<br />
Future minimum lease payments 5<br />
Operating<br />
leases<br />
Financial<br />
leases<br />
2012 1,722 9,225<br />
2013 1,282 6,216<br />
2014 872 4,168<br />
2015 448 2,231<br />
2016 187 905<br />
2017 and thereafter 60 619<br />
Total 4,571 23,364<br />
5 “Minimum lease payments” refers to the future flows of incoming payments to the contract<br />
port folio, including interest. For operating leases, the residual value is not included since this<br />
is not a minimum lease payment for these contracts.<br />
financial reports <strong>Scania</strong> <strong>2011</strong>
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