BMW 2007 Annual Report Download - page 100

98 Group Financial Statements
73 Group Financial Statements
73 Income Statements
74 Balance Sheets
76 Cash Flow Statements
78 Group Statement of Changes
in Equity
79 Statement of Income and
Expenses recognised directly
in Equity
80 Notes
80 – Accounting Principles
and Policies
89 – Notes to the Income
Statement
96 – Notes to the Balance Sheet
117 – Other Disclosures
131 – Segment Information
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.
In addition, intangible assets include goodwill
of euro 163 million (2006: euro 66 million). This com-
prises goodwill arising on earlier business
acquisi-
tions within the Cirquent Group and on the acquisition
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
analysis of changes in Group tangible, intangible and
investment assets on pages 96 and 97.
Property, plant and equipment include leased
plant and machinery and other equipment amounting
to euro 102 million (2006: euro 146 million) and, in
addition to operational buildings used by BMW AG,
also includes 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 ownership of these
assets is attributable to the Group. The leases for
buildings, with a carrying amount of euro 60 million
(2006: euro 66 million), run for periods up to 2023
at the latest. Some of the leases contain extension
and purchase options. The leases for plant and
of DEKRA SüdLeasing Services GmbH, Stuttgart,
and that entity’s subsidiaries. This item is not pre-
sented separately in the BMW Group balance sheet
since the amount is not significant in relation to
either the balance sheet total or intangible assets.
There were no reversals of impairment losses
on intangible assets (2006: euro 26 million).
Changes in intangible assets during the year
are≈shown in the analysis of changes in Group tan-
gible, intangible and investment assets on pages
96 and 97.
machinery and other equipment at the Oxford pro-
duction plant, with a carrying amount of euro 19 mil-
lion (2006: euro 46 million) at 31 December, run for
periods up to 2011 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 pro-
duction plant, with a carrying amount of euro 17 mil-
lion (2006: euro 25 million), runs until 2018 and may
be extended for one-year periods thereafter. A pur-
chase option was not agreed.
Disposal of land, titles to land and buildings,
including buildings on third-party land, relate primarily
to a number of properties which were sold and are
being leased back.
Minimum lease payments of the relevant leases
are as follows:
in euro million 31.12. 2007 31.12. 2006
Total of future minimum lease payments
due within one year 85 91
due between one and five years 318 413
due later than five years 201 257
604 761
Interest portion of the future minimum lease payments
due within one year 16 16
due between one and five years 48 59
due later than five years 73 111
137 186
Present value of future minimum lease payments
due within one year 69 75
due between one and five years 270 354
due later than five years 128 146
467 575
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