ONE ROOF

The figure of EUR 1,422,095,000 (2008: EUR 1,272,349,000),
representing the gross amount due from customers for construction
work (POC) less progress payments received relates
to construction contracts where incurred contract costs (including
shares of contract net profit) exceed progress payments
received from customers. The combined total of POC contract
costs (including net profit shares) reported under trade receivables
and trade payables is EUR 3,133,394,000 (2008: EUR
3,243,895,000). Borrowing costs of EUR 9,086,000 were capitalized
under the gross amount due from customers for construction
work (POC) in accordance with IAS 23 in 2009 (2008:
EUR 4,919,000). The borrowing costs were determined on the
basis of interest rates of between 1.3 and 8.1 percent. The combined
total of progress payments received and offset against
the gross amounts due to and from customers for contract
work (POC) is EUR 2,347,771,000 (2008: EUR 2,636,082,000).
Due to the first-time application of IFRIC 15 and the associated
accounting change for real estate construction projects, the
gross amount due from customers for construction work (POC)
as of December 31, 2008 is shown, after accounting for related
advance payments, EUR 860,040,000 lower than the figure
published in the prior year.
Various fully consolidated companies in the HOCHTIEF Group
have been granted service concession or similar arrangements.
These arrangements are mostly accounted for as financial
assets and reported as part of gross amount due from customers
for contract work (POC). The service concession arrangements,
which are in the social infrastructure/public buildings
segment, are agreements to refurbish and modernize, operate
and maintain schools and public buildings with a maximum
concession period ending in 2034.
The HOCHTIEF Group companies concerned are required ac-
cordingly to perform their obligations under the service con-
cession arrangements and are granted the rights necessary to
do so in each case. At the end of the period of a service concession
arrangement, the infrastructure to which the arrangement
relates is returned to the public-sector client. The assets
associated with a service concession arrangement generally
remain public property for the entire duration of the arrangement.
The sole termination option provided for in the various
service concession arrangements relates to termination for
cause; in most cases, there is no renewal option.
Trade receivables include EUR 372,521,000 (2008: EUR
502,763,000) in contractual retention amounts.
Trade receivables also include properties under development
that are subject to restrictions in the amount of EUR
111,886,000 (2008: EUR 150,200,000).
Receivables from equity-accounted companies total EUR
3,969,000 (2008: EUR 4,273,000).
❘ Information for our Shareholders ❘ ❘ Management Report ❘ ❘ Financial Statements and Notes ❘
21. Current income tax assets
The EUR 56,879,000 (2008: EUR 65,320,000) in current income
tax assets comprises amounts receivable from domestic
and foreign revenue authorities.
22. Marketable securities
The marketable securities totaling EUR 807,739,000 (2008:
EUR 809,396,000) mainly consist of securities held in specialpurpose
investment funds and fixed-income securities with
maturities at the time of acquisition of more than three months
where there is no intention to hold the securities to maturity.
All marketable securities are classified as available for sale and
are carried at fair value. The carrying amount was decreased
due to fair value adjustments in 2009 by EUR 43,607,000 (2008:
carrying amount decreased by EUR 91,577,000).
Marketable securities are pledged in the amount of EUR
18,970,000 (2008: EUR 33,876,000) as security for employee
benefit entitlements under semiretirement programs.
As a matter of principle, securities are invested in under a buyand-hold
strategy and without any speculative intent. Outside
of externally managed investments, direct investment activities
are exclusively restricted to the purchase of bonds from topclass
issuers with broad diversification to ensure that concentration
risks relative to specific issuers are strictly avoided.
23. Cash and cash equivalents
Cash and cash equivalents total EUR 1,769,644,000 (2008:
EUR 1,787,713,000) and comprise petty cash, cash at banks,
and marketable securities with maturities at the time of acquisition
of no more than three months. Cash and cash equivalents
are subject to restrictions in the amount of EUR 10,390,000
(2008: EUR 1,364,000), primarily relating to employee benefit
entitlements under semiretirement programs.
24. Shareholders’ equity
The Consolidated Statement of Changes in Equity is shown on
page 131.
As in the previous year, HOCHTIEF Aktiengesellschaft’s sub-
scribed capital of EUR 179,200,000 is divided into 70,000,000
no-par-value shares. Each share accounts for EUR 2.56 of
capital stock.
Annual Report 2009 159