BMW 2014 Annual Report Download - page 57

57 COMBINED MANAGEMENT REPORT
remeasurements of the net defined benefit liability for
pension plans and currency factors (in particular relating
to the US dollar).
At € 6,499 million, the carrying amount of intangible as-
sets was € 320 million higher than at 31 December 2013.
Within intangible assets, capitalised development costs
rose by € 431 million. Investments in capitalised develop-
ment costs totalled € 1,499 million in the year under re-
port and were thus significantly lower than in the
pre-
vious year (2013: € 1,744 million). In the previous year,
additions to intangible assets included licenses acquired
for € 379 million which are being amortised on a straight-
line basis over a period of six years. The proportion of
development costs recognised as assets was 32.8 % (2013:
36.4 %). Adjusted for exchange rate factors, intangible
assets increased by 5.1 %. In total, € 1,561 million was in-
vested in intangible assets, most of which related to the
Automotive segment.
Total capital expenditure on intangible assets and prop-
erty, plant and equipment as a percentage of revenues
decreased to 7.6 % (2013: 8.8 %). Capital commitments
for intangible assets totalled € 750 million at the end of
the reporting period.
Noncurrent financial assets decreased by € 569 million
to € 2,024 million, mainly due to lower fair values of cur-
rency derivatives.
Within current assets, receivables from sales financing
grew from € 21,501 million to € 23,586 million, mostly
reflecting the general growth of Financial Services busi-
ness on the one hand and currency factors on the other.
Compared to the end of the previous year, inventories
increased by € 1,494 million (15.6 %) to € 11,089 million
and accounted for 7.2 % (2013: 6.9 %) of total assets. Most
of the increase related to finished goods, including the
impact of stocking up in conjunction with the
introduc-
tion of new models. Adjusted for exchange rate factors,
the increase was 11.6 %.
Current other assets were € 780 million higher than one
year earlier, mainly due to increases in prepayments,
receivables from other companies in which an invest-
ment is held and other taxes as well as the reclassifica-
tion described in note 31. These increases were partly
offset by the decrease in collateral receivables included
in this line item.
Trade receivables – which accounted for 1.4 % of total
assets (2013: 1.8 %) – went down over the twelvemonth
period by € 296 million. Adjusted for exchange rate fac-
tors, they decreased by 15.8 %.
At € 7,688 million, cash and cash equivalents were
almost identical to their level one year earlier (2013:
€ 7,671 million).
The main increase on the equity and liabilities side of
the balance sheet in percentage terms related to
pen-
sion provisions (99.9 %). Increases were also recorded
for non-current and current financial liabilities (9.4 %
and 21.5 % respectively), equity (5.2 %), current and
non-current other provisions (32.5 % and 11.5 % respec-
tively) and current and non-current other liabilities
(10.1 %
and 18.7 % respectively). By contrast, current
tax and deferred tax liabilities went down by 31.4 % and
19.7 % respectively.
Pension provisions jumped by € 2,301 million to
€ 4,604 million, mainly as a result of the lower discount
factors used in Germany, the UK and the USA.
Current and non-current financial liabilities increased
from € 70,304 to € 80,649 million over the twelve-month
period. Within financial liabilities, derivative
instru-
ments went up from € 1,103 million to € 3,143 million,
mostly reflecting the negative impact of
currency and
commodity derivatives. Additional increases within
financial liabilities included ABS transactions (7.5 %),
bonds (16.9 %) and liabilities to banks (34.5 %). By con-
trast, commercial paper decreased by 11.0 %. Adjusted
for exchange rate factors, non-current and current
financial liabilities increased by 5.0 % and 17.1 % respec-
tively.
Group equity rose by € 1,837 million to € 37,437 million,
increased primarily by the profit attributable to
share-
holders of BMW AG (€ 5,798 million) and currency
translation differences (€ 764 million) and decreased
mainly by remeasurements of the net defined benefit
liability for pension plans (€ 2,298 million) mainly due
to the lower discount rates used in Germany, the United
Kingdom and the USA. Fair value measurement had a
negative impact in the case of derivative financial in-
struments (€ 2,194 million) and a positive impact in the
case of marketable securities (€ 40 million). Deferred
taxes on items recognised directly in equity increased
equity by € 1,438 million.