BMW 2005 Annual Report Download - page 95

94
Intangible assets mainly comprise capitalised de-
velopment costs on vehicle and engine projects as
well as subsidies for tool costs, licences, purchased
development projects and software. Amortisation
on intangible assets is presented in cost of sales,
administrative costs and research and development
costs.
Goodwill of euro 33 million was recognised in
conjunction with the first-time consolidation of entory
AG, Ettlingen and its subsidiaries, Silverstroke AG,
Ettlingen and entory S.A. Luxembourg, Luxembourg.
A break-down of the different classes of property,
plant and equipment disclosed in the balance sheet
and changes during the year are shown in the analy-
sis of changes in Group tangible, intangible and in-
vestment assets on pages 90 and 93.
Property, plant and equipment include leased
buildings, plant and machinery and other equipment
amounting to euro 205 million (2004: euro 223 mil-
lion) which relate primarily to the Oxford and Hams
Hall production plants. Due to the nature of the lease
arrangements (finance leases), economic ownership
of these assets is attributable to the Group. The
leases for plant and machinery and other equipment
This item is not presented separately in the BMW
Group balance sheet since the amount is not sig-
nificant in relation to either the balance sheet total
or intangible assets. In addition, the reversal of im-
pairment losses amounting to euro 53 million was
recognised on intangible assets; this amount is in-
cluded in Reconcilations in the analysis of segment
information by business segment.
Changes in intangible assets during the year are
shown in the analysis of changes in Group tangible,
intangible and investment assets on pages 90and 93.
at the Oxford production plant, with a carrying amount
of euro77 million (2004: euro 111 million) at 31 De-
cember, run for periods up to 2013 at the latest.
For each of the leases, there is a recurring option to
extend the leases by one year. A purchase option
was not agreed. The lease for plant and machinery
and other facilities, factory and office equipment
at the Hams Hall production plant, with a carrying
amount of euro 38 million (2004: euro 88 million) runs
until 2018 and may be extended for one year periods
thereafter. A purchase option was not agreed.
Minimum lease payments of the relevant leases
are as follows:
[20]Intangible
assets
[21]Property, plant
and equipment
in euro million 31.12.2005 31.12.2004
Total of future minimum lease payments
due within one year 95 79
due between one and five years 494 340
due later than five years 298 410
887 829
Interest portion of the future minimum lease payments
due within one year 19 20
due between one and five years 78 72
due later than five years 113 122
210 214
Present value of future minimum lease payments
due within one year 76 59
due between one and five years 416 268
due later than five years 185 288
677 615
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