BMW 2005 Annual Report Download - page 111

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110
Bonds include an exchangeable bond of euro
561 million issued on 4 December 2003 relating to
the investment of the BMW Group in the engine
manufacturer Rolls-Royce plc, London. This bond is
subject to an annual interest rate of 1.875% and has
a term of five years. After three years into the term,
the Group has the right, up to the maturity date, to
give notice on the bond if Rolls-Royce stock rises to
a level of more than 130% of the exchange price of
GBP 2.46. A cash-out option is also in place giving
the Group, in the event that the exchange right is
exercised, the right to make a payment equivalent to
the market price of the stock at that date, rather than
to deliver the stock itself. The present value of the
bond at the balance sheet date, including transac-
tion
costs, was euro 519 million (2004: euro 506 mil-
lion).The related option liability is included at 31De-
cember
2005 in financial liabilities at its fair value
of euro 452 million (2004: euro 96 million). The
negative change in the fair value of the option lia-
bility, amounting to euro 356 million, is recognised
as an expense in the line “Other financial result”.
Other financial liabilities of euro 896 million
(2004: euro 881 million) comprise mainly finance
lease liabilities.
31 December 2004*
in euro million Maturity Maturity Maturity Total
within between one later than
one year and five years five years
Bonds 2,877 6,225 3,346 12,448
Liabilities to banks 1,989 1,598 203 3,790
Liabilities from customer deposits (banking) 4,878 223 – 5,101
Commercial paper 4,059 – – 4,059
Asset backed financing transactions 1,116 3,153 - 4,269
Interest and currency derivatives 237 120 25 382
Bills of exchange payable 1 – – 1
Other 107 393 381 881
15,264 11,712 3,955 30,931
*adjusted in accordance with Note [8] (a)
Group Financial Statements 62
Income Statements 63
Balance Sheets 64
Cash Flow Statements 66
Group Statement of
Changes in Equity 68
Statement of Income and Expenses
recognised directly in Equity 69
Notes 70
--Accounting Principles
and Policies 70
--Notes to the Income Statement 81
--Notes to the balance sheet 90
--Other Disclosures 114
--Segment Information 121
Auditors’ Report 125