Scania - Annual Report 2006

Scania annual report 2006 86 NOTE 19 Accrued expenses and defer red income 2006 2005 2004 Accrued employee-related expenses 2,268 2,019 1,731 Prepaid income related to service and repair contracts 1 1,801 1,676 1,060 Prepaid income related to repurchase obligations 2,993 3,311 2,993 Accrued financial expenses 133 67 355 Other customary accrued expenses and deferred income 1 1,949 1,889 1,773 Total 9,144 8,962 7,912 - of which, current 7,283 6,836 5,543 - of which, non-current 1,861 2,126 2,369 Of the above total, the following was attributable to Customer Finance operations 289 263 306 Of the above deferred income related to vehicles sold with repurchase obligations, SEK 1,132 m. is expected to be recognised as revenue within 12 months. There are no repurchase obligations expected to be recognised as revenue after 5 years. 1 I n 2005, the increase was attributable to SEK 450 m. in reclassifications from “Other provisions”. NOTE 20 Assets pledged and cont ingent l iabi l i t ies Assets pledged 2006 2005 2004 Real estate mortgages 27 29 42 Other 4 1 6 Total 1 31 30 48 1 Of which, assets pledged for: Non-current borrowings 25 28 41 Current borrowings 4 1 1 Liabilities of others 2 1 6 Contingent liabilities 2006 2005 2004 Contingent liability related to FPG credit insurance 37 34 31 Loan guarantees 31 36 46 Discounted bills and contracts 1 3 13 Other guarantees 131 136 170 Total 200 209 260 In addition to the above contingent liabilities, the Group has issued vehicle repurchase guarantees worth SEK 188 m. (350 and 236, respectively) to customers’ creditors. NOTE 21 Lease obl igat ions As a lessee, the Scania Group has entered into financial and operating leases. Future payment obligations on non-cancellable operating leases. 2006 2005 2004 Operating lease Future minimum lease payments Of which, related to premises 2 Future minimum lease payments Of which, related to premises 2 Future minimum lease payments Of which, related to premises 2 Within one year 204 111 194 111 167 106 Between one year and five years 377 310 371 293 359 313 Later than five years 507 506 440 439 533 532 Total 1 1,088 927 1,005 843 1,059 951 1 Refers to operating leases where the obligation exceeds one year. 2 Expenses for leases on premises were charged to income in the amount of SEK 113 m. (95 and 85, respectively). Financial lease assets in balance sheet: Carrying amount 2006 2005 2004 Vehicles for leasing 74 79 91 Buildings 34 71 71 Machinery 18 27 29 Other 6 6 8 Total 132 183 199 Allocation of lease expenses 2006 2005 2004 Operating leases Fixed payments 203 200 189 Flexible payments 16 10 6 Payments related to sub-leased items -4 -4 -4 Total 215 206 191 Allocation of lease expenses 2006 2005 2004 Financial leases Fixed payments 57 75 50 Flexible payments – – – Payments related to sub-leased items -20 -29 -23 Total 37 46 27 Future payment obligations on non-cancellable financial leases: 2006 2005 2004 Financial leases Future minimum lease payments 2 Interest Present value of future lease payments Future minimum lease payments 2 Interest Present value of future lease payments Future minimum lease payments 2 Interest Present value of future lease payments Within one year 53 1 52 58 4 54 63 5 58 Between one year and five years 69 5 64 142 23 119 122 20 102 Later than five years 0 0 0 0 0 0 35 10 25 Total 1 122 6 116 200 27 173 220 35 185 1 Refers to financial leases where the obligation exceeds one year. 2 Financial lease payment expenses charged to income were SEK 57 m. (75 and 50, respectively).