Financial position

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Maintained financial position

Net debt in the Volvo Group's Industrial Operations amounted to SEK 32.1 billion at December 31, 2013, equal to 46.8% of shareholders’ equity. Excluding provisions for post-employment benefits the Industrial Operation’s net debt amounted to SEK 19.8 billion, which equal to 29.0% of shareholders’ equity.

The Volvo Group’s cash, cash equivalents and marketable securities combined, amounted to SEK 29.6 billion at December 31, 2013 which includes SEK 0.2 billion not available for use by the Volvo Group and SEK 7.7 billion where other limitations exist, mainly liquid funds in countries where exchange controls or other legal restrictions apply. In addition to this, granted but not utilized credit facilities amounted to SEK 31.9 billion.

Total assets in the Volvo Group amounted to SEK 344.8 billion as of December 31, 2013, an increase of SEK 5.7 billion compared to year-end 2012. The increase is mainly a result of increased customer financing receivables due to portfolio growth in the Customer Finance Operations which is offset by changes in currency rates.

The Volvo Group’s intangible assets amounted to SEK 36.6 billion as of December 31, 2013. Investments in research and development amounted to SEK 3.8 billion in 2013, resulting in a net value of capitalized development costs of SEK 13.8 billion at the end of the year. The Volvo Group’s total goodwill amounted to SEK 20.0 billion as of December 31, 2013, a decrease by SEK 2.1 billion compared to year-end 2012 mainly as a result of the reclassification of Volvo Rents to "Assets Held for Sale" and translation differences. 

The tangible assets decreased by SEK 5.3 billion during 2013, mainly related to  the reclassification of Volvo Rents at year end 2013.

The value of the inventories increased by SEK 1.1 billion during 2013. The increase is  related to both finished products within trucks and construction equipment and production material. 

The net value of assets and liabilities related to pensions and similar obligations amounted to SEK 12.3 billion as of December 31, 2013, a decrease of SEK 6.5 billion compared to year-end 2012. As of 2013 the Volvo Group ceases to account for defined benefit liabilities using the so called corridor method. All post-employment benefits are recognized on the Balance sheet of the Volvo Group. See Note 20 and Note 31 for further information. A third balance sheet is presented in Note 31.

At year-end, the equity ratio in the Industrial Operations was 27.0% and in the Volvo Group 22.4%. Equity in the Volvo Group amounted to SEK 77.4 billion at December 31, 2013.