ANNUAL REPORT 2004 - Skanska

Note 6 continued
Net sales by type of revenues
Group 2004 2003
Construction contracts 103,889 111,618
Services 4,938 4,601
Merchandise sales 2,091 2,187
Rental revenues 1,024 1,517
Divestments of properties 9,321 12,956
Total 121,263 132,879
Regarding other types of revenues, dividends and rental revenues are reported as
part of net financial items. See Note 13, ”Financial items.” Skanska had no royalty
revenues during 2004, nor during 2003.
Other matters
Group
Sales to associated companies and joint ventures amounted to SEK 3,491 M (2,530).
For other related party transactions, see Note 37, ”Related party disclosures.”
Parent Company
The Parent Company’s revenues consist of income on intra-Group services.
The amount included SEK 55 M (127) in sales to subsidiaries. For other related
party transactions, see Note 37, ”Related party disclosures.”
Note 7 Construction contracts and similar assignments
Construction contracts are recognized as revenues at the pace of project
completion. See ”Accounting and valuation principles,” Note 1.
Information from the income statement
Group
Revenues recognized during the year amounted to SEK 103,889 M (111,618).
Information from the balance sheet
Group
Recognized but unbilled revenue 2004 2003
Recognized revenue 86,228 98,829
Progress billings –82,587 –94,015
Total, asset 3,641 4,814
Invoiced but unrecognized revenue 2004 2003
Progress billings 140,273 126,766
Recognized revenue –129,845 –117,455
Total, liability 10,428 9,311
Recognized revenues in ongoing projects including reported gains less reported loss
provisions amounted to SEK 216,073 M (216,284).
Advance payments received totaled SEK 1,675 M (1,490).
Amounts held back by customers, which have been partly invoiced according
to an established plan and which the customers is retaining in compliance with contractual
terms until all the terms specified in the contract have been met, amounted
to SEK 2,479 M (2,848).
Note 8 Operating income
The following table presents operating income by business stream.
Operating income before
goodwill amortization
Goodwill amortization
and writedowns and writedowns Operating income
Group 2004 2003 2004 2003 2004 2003
Construction 1,574 1,965 –363 –414 1,211 1,551
Commercial Project Development 1,637 3,061 1,637 3,061
Residential Project Development 529 265 –5 –6 524 259
BOT 31 27 31 27
Other
Central –352 –470 –12 –364 –470
Eliminations 46 –65 46 –65
Discontinuing operations 917 334 –149 –165 768 169
Total 4,382 5,117 –529 –585 3,853 4,532
In the above table, the item ”Other” has been divided into ”Central,” ”Eliminations” and ”Discontinued operations.”
The Parent Company and other corporate units are reported as ”Central.”
Elimination of internal profits from intra-Group sales is reported as ”Eliminations.” During 2004, the dissolving of internal profits from property
divestments had a positive impact of SEK 72 M (3) on earnings. Also included is the dissolving of intra-Group gains on completed BOT projects.
Discontinuing operations are described in Note 40.
Skanska Annual Report 2004 – Notes, including accounting and valuation principles
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