ANNUAL REPORT 2004 - Skanska

Note 11
Depreciation/amortization
Depreciation/amortization if provided on a systematic basis in compliance with RR 12, ”Tangible fixed assets,” and RR 15, ”Intangible fixed assets.”
Group
Construction,
manufacturing and
Selling and
property management administration Total
Depreciation/amortization by business stream and function 2004 2003 2004 2003 2004 2003
Construction –874 –904 –507 –532 –1,381 –1,436
Commecial Project Development –1 –2 –1 –2
Residential Project Development –8 –6 –10 –6 –18
BOT 0 0
Discontinuing operations,
central and eliminations –180 –250 –70 –77 –250 –327
Total –1,054 –1,162 –584 –621 –1,638 –1,783
Depreciation/amortization by asset class and function
Goodwill –405 –406 –405 –406
Other intangible fixed assets –7 –13 –22 –18 –29 –31
Buildings and land –55 –63 –15 –26 –70 –89
Machinery and equipment –992 –1,086 –142 –171 –1,134 –1,257
Total –1,054 –1,162 –584 –621 –1,638 –1,783
Depreciation/amortization in the Parent Company amounted to SEK –3 M (–3).
Note 12 Impairment of assets (Writedowns/Reversals of writedowns)
Writedowns are reported in compliance with RR 17, ”Impairment of assets.”
See ”Accounting and valuation principles,” Note 1.
Intangible fixed assets
During 2004, the Group carried out goodwill writedowns of SEK 124 M (179).
Of this amount, SEK 101 M came from a goodwill writedown in Skanska’s Indian
operations, which were divested during the year. SEK 10 M came from a writedown
in Norwegian operations and the remaining SEK 13 M from other corrections of
goodwill figures.
The recovery value of Indian operations was calculated as the net selling price of
the units included in the divestment.
The writedown in Norway was based on the fact that the ”value in use” of the
units written down was below the reported value of the units. A discount rate of
8.90 percent was used in the calculation.
Of the 2003 goodwill writedown of SEK 179 M, SEK 87 M came from a goodwill
writedown in Cementation, which was divested during the third quarter of 2004.
The cost affected ”Discontinuing operations.”
The recovery value of Cementation was based on the net selling price that the
intended buyer was willing to pay for the units that Skanska planned to sell.
Other
intangible
Goodwill fixed assets
Group 2004 2003 2004 2003
Writedowns by income statement item and asset class
Construction, manufacturing
and property management expenses 1 –1
Selling and administrative expenses –124 –179 –2
–124 –179 1 –3
Writedowns by asset class, allocated by business stream
Construction –11 –68 1 –1
Discontinuing operations,
central and eliminations –113 –111 –2
–124 –179 1 –3
Parent Company
In the Parent Company, writedowns of intangible assets totaled SEK 0 M (–1).
Tangible fixed assets
During 2004, Skanska carried out writedowns of SEK 67 M related to discontinuing
operations. All these writedowns were made to net selling price and were set at the
prices that potential buyers were willing to pay for the units.
In 2003, writedowns of tangible assets came mostly from Swedish construction
operations, where closures of construction/manufacturing facilities led to certain
writedowns.
Buildings Machinery and
and land equipment
Group 2004 2003 2004 2003
Writedowns/reversals of writedowns
by income statement item and asset class
Construction, manufacturing and
property management expenses
Writedowns –32 –43 –65 –27
Reversals of writedowns 24 11 3
–8 –32 –65 –24
Writedowns/reversals of writedowns
by business stream
Construction 3 –26 –8 –16
Residential Project Development –1 –6
Discontinuing operations,
central and eliminations –10 –57 –8
–8 –32 –65 –24
Amounts of writedowns/reversals
of writedowns were based on
Net divestment value –7 –32 –65 –6
Value in use –1 0 –18
–8 –32 –65 –24
Writedown amounts based on
Net divestment value –114 –89 1
Value in use –10 –90 –3
–124 –179 1 –3
Skanska Annual Report 2004 – Notes, including accounting and valuation principles
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