Accounting treatment of the Financial Services Division
The Financial Services Division is included in the audited consolidated financial statements. It includes the legally independent leasing companies as well as the sets of books presented separately for financial service operations in countries where Jungheinrich does not have legally independent leasing companies.
The balance sheet reflects the continuous expansion of the Financial Services Division. The increase in trucks for lease from financial services ‘operating leases’ capitalized as fixed assets and the strong growth in receivables from financial services ‘finance leases’ are due to the rise in customer contracts with Jungheinrich-owned leasing companies. Customer contracts with a third-party company acting as intermediary were down.
The increase in liabilities from financial services stems from the matched-maturity refinancing of the much higher number of operating and finance lease customer contracts.
Asset structure of the Financial Services (FS) Division
| in million € | Jungheinrich Group | FS Division 1) | ||
|---|---|---|---|---|
| Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2008 | Dec. 31, 2007 | |
| Tangible and intangible assets | 314 | 287 | – | – |
| Trucks for short-term hire | 200 | 200 | – | – |
| Trucks for lease from financial services | 187 | 166 | 239 | 211 |
| Receivables from financial services | 460 | 403 | 460 | 403 |
| Trade accounts receivable | 395 | 423 | 45 | 26 |
| Inventories | 247 | 243 | 23 | 25 |
| Liquid assets and securities | 262 | 251 | 55 2) | 46 2) |
| Prepaid expenses | 6 | 6 | – | – |
| Other assets | 108 | 94 | 4 | 5 |
| Balance sheet total | 2,179 | 2,073 | 826 | 716 |
| 1) Before consolidation, i.a. adjustment to Group manufacturing costs. | ||||
| 2) Including other receivables from affiliated companies (intercompany loans). | ||||
Capital structure of the Financial Services (FS) Division
| in million € | Jungheinrich Group | FS Division | ||
|---|---|---|---|---|
| Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2008 | Dec. 31, 2007 | |
| Shareholders’ equity | 625 | 554 | 13 | 12 |
| Provisions for pensions and similar obligations | 140 | 164 | – | – |
| Other provisions | 150 | 156 | 2 | 1 |
| Financial liabilities | 285 | 290 | 2 | – |
| Liabilities from financial services | 643 | 541 | 643 | 541 |
| Trade accounts payable | 117 | 140 | 72 | 63 |
| Deferred income | 105 | 117 | 77 | 88 |
| Other liabilities | 114 | 111 | 17 | 11 |
| Balance sheet total | 2,179 | 2,073 | 826 | 716 |