Å kodaAuto ANNUAL REPORT 2006 - Skoda Auto

25. Contingent liabilities (CZK million)
The Company has contingent liabilities in respect of bank and other guarantees and other matters arising in the ordinary course
of business. It is not anticipated that any material liabilities will arise from the contingent liabilities.
Significant judgment is required in determining the provision for income taxes. There are many transactions and calculations, requiring
detailed tax judgment, for which the ultimate tax determination is uncertain during the ordinary course of business.
The financial authorities are authorised to carry out on audit of book-keeping records at any time during the 4 years following the end
of the taxable period and they may additionally assess income tax and penalty as a result of the audit.
The financial authority carried out a detailed audit of the Company’s supporting documentation for income tax return for the 2001 taxable
period. The Company’s management is not aware of any circumstances that could result in significant liabilities arising from the audits
in the future.
26. Contractual obligations and other future commitments (CZK million)
Cash outflows relating to commitments for acquisition of non-current tangible and intangible assets existing at the balance sheet date are
as follows:
Payable until year 2007 Payable 2008–2011 31.12.2006 31.12.2005
Investment commitments 3,989 471 4,460 5,165
Leasing installments 79 94 173 130
On the basis of irrevocable operating lease agreements, the Company is allowed to rent different machine equipment. In the case of
termination of these agreements, the Company has to terminate them with a six-month notice period.
27. Expenses by nature – additional information (CZK million)
2006 2005
Material costs – raw materials and other supplies, goods and production related services 139,837 130,277
Personal costs 11,882 10,788
Wages 9,092 8,276
Social insurance and other personal costs 2,790 2,512
Depreciation and amortization 12,489 11,856
Other services 13,567 16,153
Total cost of goods sold, distribution and administrative expenses 177,775 169,074
Number of employees
Number of employees* 26,697 25,789
* Average number of employees (including temporary employees)
124