BMW 2007 Annual Report Download - page 57

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Other provisions went down slightly (– 0.6 %) to
euro 5,502 million. Deferred tax liabilities were down
by euro 44 million to euro 2,714 million, whereby
the deferred tax effects of the Business Tax Reform
Act, fair value gains and losses recognised directly in
equity and translation differences largely offset each
other. Financial liabilities went up by 20.5 %, reflect-
ing the strong growth of the financial services busi-
ness. Within financial liabilities, bonds increased by
12.0 % to euro 18,383 million. Liabilities to banks,
asset backed financing obligations and commercial
paper were all also up.
Trade payables amounted to euro 3,551 million
and were thus 5.0 % lower than one year earlier.
Other liabilities were 4.7 % higher at euro
6,130 million, mainly due to the increase in deferred
income relating to service and repair contracts and
lease financing.
Compensation Report
The compensation of the Board of Management
comprises fixed and variable remuneration compo-
nents. In addition, benefits are also payable at the
end of members’ mandates, primarily in the form
of pension benefits. Further details, including an
analysis of remuneration by individual, are disclosed
in the Compensation Report which can be found in
the Corporate Governance section of the Annual
Report on pages 142 to 145. The Compensation
Report is a sub-section of the Management Report.
Subsequent Events Report
No events have occurred after the balance sheet date
which could have a major impact on the earnings
performance, financial position and net assets of the
BMW Group.
Value Added Statement
The value added statement shows the value of work
performed less the value of work bought in by the
BMW Group during the financial year. Depreciation
and amortisation, cost of materials and other ex-
penses are treated as bought-in costs in the value
added calculation. The allocation statement applies
value added to each of the participants involved in
the value added process. It should be noted that the
gross value added treats depreciation as a com-
ponent of value added which, in the allocation state-
ment, is treated as internal financing.
Net value added by the BMW Group in 2007 in-
creased by 3.8 % to euro 14,096 million. The in-
crease over the previous year was largely attributable
to the higher level of revenues. The increase in gross
value added, at 9.5 %, was even more pronounced
since it is not affected by depreciation and amortisa-
tion, which are higher than in the previous year.
The bulk of the net value added (53.3 %) is ap-
plied to employees. The amount applied to providers
of finance increased to 16.1 % as a result of the high-
er funding volume required for financial services
business. The government/public sector (including
deferred tax expense) accounted for 8.4 %. The pro-
portion of net value added applied to shareholders,
at 4.9 %, was higher than in the previous year. The
remaining proportion of net value added (17.3 %)
will be retained in the Group to finance future oper-
ations. It decreased by 0.4 percentage points com-
pared to one year earlier.