BMW 2012 Annual Report Download - page 117

117 GROUP FINANCIAL STATEMENTS
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At 31 December 2012 common stock issued by BMW AG
was divided, as at the end of the previous year, into
601,995,196 shares of common stock with a par-value of
€ 1. Preferred stock issued by BMW AG was divided into
53,994,217 shares (2011: 53,571,372 shares) with a par-
value of € 1. 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 addi-
tional dividend of € 0.02 per share.
In 2012, a total of 422,905 shares of preferred stock was
sold to employees at a reduced price of € 31.45 per share
in conjunction with an
Employee Share Scheme . These
shares are entitled to receive dividends with effect from
the financial year 2013. 60 shares of preferred stock were
bought back via the stock exchange in conjunction with
the Company’s
Employee Share Scheme .
Assets held for sale and liabilities in conjunction
with assets held for sale
In the fourth quarter of the financial year 2012 the Board
of Management of BMW AG decided to realign its stra-
tegic direction for the Motorcycles segment in view of
the changing nature of motorcycle markets, demographic
developments and stricter environmental requirements.
The BMW Group intends to broaden its product range,
in particular in the fields of urban mobility and e-mo-
bility, in order to open up future growth opportunities.
In line with the decision to focus on the BMW Motorrad
brand, and considering the declining size of the rele-
vant markets, it is considered a sensible move to sell the
Husqvarna Motorcycles brand.
In December 2012, BMW AG, Munich, and Pierer Industrie
AG, Wels, reached agreement with regard to the sale of
Husqvarna Motorcycles S.r.l., Cassinetta di Biandronno,
and Husqvarna Motorcycles NA, LLC, Wilmington, DE,
to Pierer Industrie AG, Wels. Subject to approval of the
transaction by the Austrian Merger Control Authorities,
the sale will be completed during the first half of 2013.
Further information on share-based remuneration is pro-
vided in note 18.
Issued share capital increased by € 0.4 million as a result
of the issue to employees of 422,845 shares of non-voting
preferred stock. The Authorised Capital of BMW AG
amounted to € 3.2 million at the end of the reporting
period. The Company is authorised to issue shares of
non-voting preferred stock amounting to nominal
€ 5.0 million prior to 13 May 2014. The share premium
of € 18.2 million arising on the share capital increase in
2012 was transferred to capital reserves.
Capital reserves
Capital reserves include premiums arising from the
issue of shares and totalled € 1,973 million (2011:
€ 1,955 million). The change related to the share capital
At 31 December 2012, the Husqvarna Group accordingly
meets the criteria for classification as a “disposal group”
in accordance with IFRS 5. The carrying amount of prop-
erty, plant and equipment and intangible assets attribut-
able to the Husqvarna Group has been written down
to fair value less costs to sell. All assets of the Husqvarna
Group are reported separately in the balance sheet on
the line “Assets held for sale” within the Motorcycles seg-
ment. Similarly, its liabilities are reported separately in
the balance sheet on the line “Liabilities in conjunction
with assets held for sale” within the Motorcycles segment.
The remeasurement of assets in accordance with IFRS 5
resulted in the recognition of an impairment loss of
€ 13 million on property, plant and equipment which is
reported in “Other operating expenses”.
Assets held for sale comprise mainly inventories (€ 24 mil-
lion)
, other assets (€ 10 million) and trade receivables
(€ 11 million). Liabilities in conjunction with assets held
for sale comprise mainly pension provisions (€ 2 million),
other provisions (€ 7 million), trade payables (€ 16 mil-
lion) and other liabilities (€ 3 million).
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Equity
Number of shares issued
Preferred stock Common stock
2012 2011 2012 2011
Shares issued / in circulation at 1 January 53,571,372 53,163,412 601,995,196 601,995,196
Shares issued in conjunction with Employee Share Scheme 422,905 408,140 – –
less: shares repurchased and re-issued 60 180 – –
Shares issued / in circulation at 31 December 53,994,217 53,571,372 601,995,196 601,995,196