Review of 2010 – USD version - Skanska

Note
09
Construction contracts
Construction contracts are recognized as revenue at the pace of project completion.
See “Accounting and valuation principles,” Note 1.
For risks in ongoing assignments, see Note 2, “Key estimates and judgments,” and
the Report of the Directors.
Information from the income statement
Revenue recognized during the year amounted to USD 14,039.3 M (15,766.5).
Information from the statement of financial position
Gross amount due from customers for contract work
2010 2009
Accrued revenue 8,538.6 10,061.1
Invoiced revenue –7,812.3 –9,418.8
Total, asset 726.3 642.3
Note
11
Selling and administrative expenses
Selling and administrative expenses are recognized as one item. See "Accounting and
valuation principles," Note 1.
Selling and administrative expenses
2010 2009
Construction –799.7 –825.6
Residential Development –81.7 –77.0
Commercial Property Development –49.3 –43.6
Infrastructure Development –19.1 –20.3
Central and eliminations –95.3 –89.1
Total –1,045.1 –1,055.5
Gross amount due to customers for contract work
2010 2009
Invoiced revenue 30,717.8 24,665.8
Accrued revenue –28,228.1 –22,314.8
Total Liability 2,489.6 2,351.0
Accrued revenue in ongoing projects including recognized gains minus recognized loss
provisions amounted to USD 36,766.7 M (32,375.9).
Advance payments received totaled USD 61.7 M (29.6).
Amounts retained by customers, which have been partly invoiced according to
an established plan and which the customer is retaining in accordance with contractual
terms until all the conditions specified in the contract are met, amounted to
USD 316.9 M (499.4).
Note
10
Operating expenses by category of expense
During 2010, revenue decreased by USD 1,222.3 M till USD 16,956.7 M (18,179.0). Operating
income decreased by USD 31.1 M to USD 757.2 M (788.3). Personnel expenses for
the year amounted to USD –3,504.6 M (–3,474.6).
Other operating expenses adjusted for current-asset properties divested and income
in joint ventures and associated companies amounted to USD –11,215.0 M (–12,700.1).
2010 2009
Revenue 16,956.7 18,179.0
Personnel expenses 1 –3,504.6 –3,474.6
Depreciation/amortization –180.5 –193.0
Impairment losses –34.7 –57.2
Other operating expenses 2 –12,479.7 –13,665.9
Operating income 757.2 788.3
1 Recognized as personnel expenses are wages, salaries and other remuneration plus social
insurance contributions, recognized according to Note 36, “Personnel,” and non-monetary
remuneration such as free healthcare and car benefits.
2 Other operating expenses are allocated according to the following table.
2010 2009
Carrying amount of current-asset properties divested –1,339.8 –1,018.6
Income from joint ventures and associated companies 75.1 52.8
Other –11,215.0 –12,700.1
Total other operating expenses –12,479.7 –13,665.9
118 Notes, including accounting and valuation principles Skanska Review of 2010 – USD version