BMW 2006 Annual Report Download - page 94

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Trade accounts receivable
Trade receivables amounting in total to euro 2,258
million (2005: euro 2,135 million) include euro 21 mil-
lion due later than one year (2005: all due within
one year).
Equity
The Group Statement of Changes in Equity is
shown on page 70.
Number of shares issued
At 31 December 2006, common stock issued by
BMW AG was divided into 601,995,196 shares with
a par-value of one euro. Preferred stock issued by
BMW AG was divided into 52,196,162 shares with a
par-value of one euro, unchanged from the previous
year. Unlike the common stock, no voting rights are
attached to the preferred stock. All of the company’s
stock is issued to bearer. Preferred stock bears an
advance profit (additional dividend) of euro 0.02 per
share. 689,375 of the shares of preferred stock are
only entitled to receive dividends with effect from
the beginning of the financial year 2007.
During the financial year 2006, BMW Group
acquired 689,375 treasury shares of preferred stock
at an average price of euro 37.52 per share; these
shares were issued to employees at a reduced price
of euro 27.84 per share in conjunction with an em-
ployee share scheme. As a result of the repurchase
of shares of preferred stock and their
subsequent
issue, the preferred stock portion of share capital re-
mained unchanged at euro 52 million.
At the Annual General Meeting of BMW AG
on
12 May 2005, the shareholders authorised the
Board of Management to acquire treasury shares
via the stock exchange, up to a maximum of 10% of
the share capital in place at the date of the resolution
and to withdraw these shares from circulation without
any further resolution by the Annual General Meeting.
The authorisation for the buy-back was valid until
11 November 2006.
In conjunction with this authorisation, the Board
of Management of BMW AG resolved on 20 Sep-
tember 2005 to put a programme in place to buy
back shares via the stock exchange. Under this
pro-
gramme, 3% of BMW AG’s common stock was
acquired.
Up to 17 February 2006, a total of 20,232,722
treasury shares of common stock were bought back
via the stock exchange at an average price per share
of euro 37.47 and a total acquisition cost of euro
758 million. These shares were withdrawn from cir-
culation in accordance with the resolution taken by
the Board of Management on 21 February 2006.
Equity was reduced by the buy-back amount.
Transaction costs amounted to euro 0.776 mil-
lion (net of income tax effect) and were recognised
directly in equity.
At the Annual General Meeting on 16 May 2006,
the shareholders authorised the Board of Manage-
ment to acquire treasury shares via the stock ex-
change, up to a maximum of 10% of the share capital
in place at the date of the resolution and to withdraw
these shares from circulationwithout anyfurther reso-
lution by the Annual General Meeting. At the same
time, the authorisation from 12 May 2005 to acquire
treasury shares was rescinded. The authorisation
from 16 May 2006 is valid until15 November 2007.
Capital reserves
The capital reserves comprise additional paid in
capital on the issue of shares. The balance reported
decreased by euro 60 million to euro 1,911 million
as a result of the withdrawal of treasury shares from
circulation.
Revenue reserves
Revenue reserves comprise the post-acquisition
and non-distributed earnings of consolidated group
companies. In addition, revenue reserves include
both positive and negative goodwill arising on the
consolidation of group companies prior to 31Decem-
ber 1994.
Revenue reserves stood at euro18,121 million at
31 December 2006, 10.8% higher than one year
earlier. They were increased in 2006 by the amount
of the net profit attributable to shareholders of
BMW AG amounting to euro 2,868 million and were
Cash and cash equivalents
Cash and cash equivalents of euro 1,336 million
(2005: euro 1,621 million) comprise cash on hand
and at bank, all with a maturity of under three
months.
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