BMW 2006 Annual Report Download - page 89

Intangible assets
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, with a total carrying amount of euro
66 million (2005: euro 57 million), relates mainly to
entory AG, Ettlingen, and to the Axentiv Group. This
Property, plant and equipment
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 86 and 87.
Property, plant and equipment includes leased
buildings, plant and machinery and other equipment
with a carrying amount of euro 146 million (2005:
euro 205 million). This comprises mainly operational
buildings used by BMW AG and leased plant and
equipment used primarily in the Oxford and Hams
Hall production plants. Due to the nature of the lease
arrangements (finance leases), economic owner-
ship of these assets is attributable to the Group. The
leases relating to operational buildings, with a carrying
amount of euro 66 million (2005: euro 79 million)
item is not presented separately in the BMW Group
balance sheet since the amount is not significant in
relation to either the balance sheet total or intangible
assets.
Reversals of impairment losses on intangible
assets totalling euro 26 million (2005: euro 53 mil-
lion) were recognised during the year.
Changes in intangible assets during the year are
shown in the analysis of changes in Group tangible,
intangible and investment assets on pages 86 and
87.
run for periods up to 2023 at the latest. Some of
the leases contain extension and purchase options.
The leases for plant and machinery and other equip-
ment at the Oxford production plant, with a carrying
amount of euro 46 million (2005: euro 77 million)
at 31 December, run for periods up to 2012 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 ma-
chinery and other facilities, factory and office equip-
ment at the Hams Hall production plant, with a car-
rying amount of euro 25 million (2005: euro 38 mil-
lion) 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:
88 Group Financial Statements
65 Group Financial Statements
65 Income Statements
66 Balance Sheets
68 Cash Flow Statements
70 Group Statement of
Changes in Equity
71 Statement of Income and
Expenses recognised directly
in Equity
72 Notes
72 – Accounting Principles
and Policies
79 – Notes to the Income Statement
86 – Notes to the Balance Sheet
104 – Other Disclosures
111 – Segment Information
in euro million 31.12.2006 31.12.2005
Total of future minimum lease payments
due within one year 91 95
due between one and five years 413 494
due later than five years 257 298
761 887
Interest portion of the future minimum lease payments
due within one year 16 19
due between one and five years 59 78
due later than five years 111 113
186 210
Present value of future minimum lease payments
due within one year 75 76
due between one and five years 354 416
due later than five years 146 185
575 677
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