ANNUAL REPORT 2006 - Skanska

Note 35
Cash flow statement
Aside from the cash flow statement prepared in compliance with IAS 7, ”Cash
Flow Statements,” Skanska is preparing a cash flow statement based on the operations
carried out by the respective business streams. This is called the ”Consolidated
operating cash flow statement.” The connection between the respective
cash flow statements is explained below.
Adjustments for items not included in cash flow
2006 2005
Depreciation/amortization and impairment losses/reversals
of impairment losses/writedowns/reversals of writedowns 1,247 1,259
Income from divestments of property, plant and
equipment and current-asset properties –2,651 –2,834
Income from divestments of discontinued operations 0 –184
Income after financial items from joint ventures
and associated companies –239 –221
Dividends from joint ventures and associated companies 99 42
Provision for the year, intra-Group profits on contracting work 157 154
Other items that have not affected cash flow from
operating activities 107 97
Total –1,280 –1,687
Taxes paid
Taxes paid are divided into operating activities, investing activities and financing
activities.
Total taxes paid for the Group during the year amounted to SEK –1,067 M
(–1,440).
Information on interest and dividends
2006 2005
Interest income received during the year 397 388
Interest payments made during the year –76 –387
Dividends received during the year 99 45
Cash and cash equivalents
Cash and cash equivalents in the cash flow statement consist of cash plus cash
equivalents. The definition of cash and cash equivalents in the balance sheet can
be seen in Note 1, ”Accounting and valuation principles.”
The same rule that has been used in determining cash and cash equivalents in
the balance sheet has been used in determining cash and cash equivalents
according to the cash flow statement. Only amounts that can be used without
restrictions are recognized as cash and cash equivalents.
2006 2005
Cash 8,839 10,583
Cash equivalents 2,131 3,095
Total 10,970 13,678
Information about assets and liabilities in acquired Group companies
2006 2005
Assets
Property, plant and equipment 59 21
Intangible assets 662 31
Non-interest-bearing receivables 624 45
Interest-bearing receivables 47
Cash and cash equivalents 12 6
Total 1,404 103
Liabilities
Minority –11 –3
Interest-bearing liabilities 47 29
Non-interest-bearing liabilities 673 21
Total 709 47
Purchase price paid –695 –56
Cash and cash equivalents in acquired companies 12 6
Effect on cash and cash equivalents, investment –683 –50
Acquired Group companies are described in Note 7, ”Business combinations.”
Information about assets and liabilities in divested Group companies
2006 2005
Assets
Property, plant and equipment –40 –560
Intangible assets –33 0
Current-asset properties –154 –1
Interest-bearing receivables 0 –4
Non-interest-bearing receivables –165 –469
Cash and cash equivalents –14 –60
Total –406 –1,094
Equity and liabilities
Income from divestments of Group companies 1 –63 199
Minority –4 0
Interest-bearing liabilities –23 –254
Non-interest-bearing liabilities –162 –442
Total –252 –497
Purchase price paid 154 597
Cash and cash equivalents in divested companies –14 –60
Effect on cash and cash equivalents, divestment 140 537
1 Income from divested group companies is recognized both as ”Income from divestments of discontinued
operations” and as ”Cost of sales” in continuing operations. The allocation is shown in the following table.
2006 2005
Income from divestments of discontinued operations 0 184
Income from divestments of Group companies
recognized as continuing operations 2 –63 15
–63 199
2 The income originated from the divestment of Russian operations and small operations in Sweden
and Norway.
Other matters
The Group’s unutilized credit facilities amounted to SEK 6,276 M (6,071) at
year-end.
Relation between consolidated operating cash flow and consolidated cash flow
statement
The difference between the consolidated operating cash flow statement and the
consolidated cash flow statement in compliance with IAS 7, ”Cash Flow Statement,”
is presented below.
The consolidated cash flow statement that was prepared in compliance with IAS
7 recognizes cash flow divided into:
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
The consolidated operating cash flow statement recognizes cash flow divided
into:
Cash flow from business operations
Cash flow from financing operations
Cash flow from strategic investments
Dividend etc.
Change in interest-bearing receivables and liabilities
The consolidated operating cash flow statement refers to operating activities as
”business operations.” Unlike the cash flow statement in compliance with IAS 7,
”business operations” also includes net investments, which are regarded as an
element of business operations together with tax payments on these. Such net
investments are net investments in property, plant and equipment and intangible
non-current assets as well as net investments in Infrastructure Development.
Investments of a strategic nature are recognized under cash flow from strategic
investments.
Under cash flow from financing activities, the operating cash flow statement
recognizes only interest and other financial items as well as taxes paid on the
same. Dividends are recognized separately. Loans provided and repayment of
loans are also recognized separately together with changes in interest-bearing
receivables at the bottom of the operating cash flow statement, resulting in a
subtotal in the statement that shows cash flow before changes in interest-bearing
receivables and liabilities.
Skanska Annual Report 2006 Notes, including accounting and valuation principles 113