annual report 2004 - Severočeské doly a.s.

2004 represents CZK 358 million. Due to the change in the technology of tunnelling of railway track replacement,
the liability of the Company will increase. In 2004 the Company created a provision in the amount of CZK 853 million
for this increase. The creation of provision is reported in the Consolidated Statement of Income in Other operating
expenses, net.
4. Property, Plant and Equipment, Net
Property, plant and equipment at December 31, 2004 and 2003 is as follows (in CZK million):
Buildings Plant Land and other Accumulated Total
and constructions and equipment tangibles depreciation
and accumulated
impairment loss
December 31, 2002 8,369 18,907 750 (15,589) 12,437
Additions 213 689 9 — 911
Retirements (164) (721) — 848 (37)
Depreciation — — — (1,515) (1,515)
Impairment loss — — — (62) (62)
December 31, 2003 8,418 18,875 759 (16,318) 11,734
Additions 254 830 100 — 1,184
Retirements (26) (563) — 587 (2)
Depreciation — — — (1,445) (1,445)
Impairment loss — — — (40) (40)
Change in IAS 37 estimate (164) — — — (164)
December 31, 2004 8,482 19,142 859 (17,216) 11,267
Buildings and constructions include capitalized costs of provisions (see Note 2) in the amount of CZK 2,353 million.
At December 31, 2004 and 2003 the accumulated depreciation of the capitalized costs of provisions was CZK 731
and 673 million, respectively. In 2004, the decrease of CZK 164 million was recorded in the capitalized costs of provisions
in respect of change in estimate of related provision for decommissioning and reclamation (see Note 3).
At December 31, 2004 and 2003 fully depreciated tangible assets still in active use amounted to CZK 6,735 million
and CZK 5,510 million, respectively, at cost.
At December 31, 2004 and 2003 the Group discloses a total impairment loss of CZK 271 million and CZK 231 million,
respectively, related particularly to electric engines, ash manipulating equipment and a group of assets at Radovesice
location, which are not used and a hotel, which is held for sale. The change in impairment loss in the period is
reflected in the Consolidated Statement of Income in Other operating expenses, net.
5. Investments
Investments as of December 31, 2004 and 2003 are as follows (in CZK million):
2004
Investments – non current
2003
Held to maturity investments 989 985
Available-for-sale investments 5,410 5,680
Loan to Teplárna Ústí nad Labem, a.s. 145 154
Total non current investments 6,544 6,819
Investments – current
Held to maturity investments 3,927 4,128
Available-for-sale investments 151 245
Total current investments 4,078 4,373
Non current held-to-maturity investments comprise long-term deposits with a redemption date in 2010, eurobonds
and mortgage certificates with redemption dates ranging from 2006–2009, which the Company intends and is
able to hold until their redemption dates.
Non current available-for-sale investments consist primarily of government bonds, commercial debentures
and eurobonds. The fair value of available-for-sale investments was assessed by reference to the quoted price
on the relevant Stock Exchange.
Current held-to-maturity investments comprise state treasury bills, commercial debentures and certificates
of deposits, which the Company holds until redemption date.
Current available-for-sale investments consist of mutual fund units.