Notes on the Consolidated Balance Sheet
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| Principles and Methods | Notes on the Consolidated Profit and Loss Statement |
Notes on the Consolidated Balance Sheet |
| Notes on the Consolidated Cash Flow Statement | Other Notes | |
(14) Goodwill
Goodwill
| € million | 2007 | 2006 |
|---|---|---|
| Historical cost | ||
| Balance as at 1 Jan | 3,851.7 | 3,836.2 |
| Exchange differences | - 203.8 | 29.1 |
| Additions due to changes in the group of consolidated companies | 1,332.5 | 0.1 |
| Additions | 36.5 | 9.1 |
| Disposals1) | 1,535.5 | 18.4 |
| Reclassifications2) | - 94.3 | - 4.4 |
| Balance as at 31 Dec | 3,387.1 | 3,851.7 |
| | ||
| Impairment | ||
| Balance as at 1 Jan | 716.9 | 0.0 |
| Exchange differences | - 25.8 | 7.4 |
| Additions due to changes in in the group of consolidated companies | – | – |
| Impairment for the current year | 20.0 | 709.5 |
| Disposals1) | 292.1 | – |
| Reclassifications | - 90.2 | – |
| Balance as at 31 Dec | 328.8 | 716.9 |
| Carrying amounts as at 31 Dec | 3,058.3 | 3,134.8 |
1) of which no disposals due to changes in the group of consolidated companies (2006: € 6.6 million and € 0.0 million, respectively)
2) including additions of € 26.6 million, which have been posted under payments on account in the previous year
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© TUI AG Geschäftsbericht 2007 |
Pursuant to IFRS 5, assets of the discontinuing operations and other non-current assets held for sale were summarised as a disposal group in the balance sheet. Reclassifications of goodwill classified as held for sale in the course of the financial year under review were carried as reclassifications.
In the completed financial year, goodwill impairments of € 20.0 million (previous year: € 709.5 million) were required, fully attributable to the Magic Life Group. Detailed information on the implementation and results of the impairment tests
is provided under ’Accounting and measurement’ and under note 4.
In accordance with the rules of IAS 21, goodwill allocated to individual segments and sectors was recognised in the functional currency of the subsidiaries and subsequently translated in the framework of the preparation of the consolidated financial statements. In analogy to the treatment of other differences from the translation of annual financial statements of foreign subsidiaries, differences due to exchange rate fluctuations between the exchange rate at the date of acquisition of the subsidiary and the exchange rate at the balance sheet date were taken directly to and recognised separately under equity without effecting profit and loss. In the 2007 financial year, the carrying amount of goodwill decreased by € 178.0 million (previous year:
increase of € 21.7 million) due to exchange differences.
In the 2007 financial year, goodwill of € 1,227.7 million arose from the merger between TUI’s tourism division (excluding the TUI Hotels & Resorts sector) and First Choice Holidays PLC and the resulting first-time consolidation of TUI Travel PLC. At the same time, a disposal of goodwill of € 1,242.9 million resulted from the contribution of the TUI Group’s tourism companies to TUI Travel PLC. In 2006, disposals of goodwill of € 18.4 had arisen from the divestment of subsidiaries.
In the tourism segment, the largest portion of goodwill carried (€ 2,522.3 million) was related to the TUI Travel PLC sector. Goodwill of € 356.8 million was shown for the Riu Group operating in the TUI Hotels & Resorts sector. The shipping segment accounted for goodwill of € 100.6 million. The goodwill of € 22.5 million (previous year: € 0.9 million) arising from the acquisition of minority shares in the financial year under review was directly eliminated against other revenue reserves.
(15) Other intangible assets
Other intangible assets
|
€ million |
Concessions, industrial property rights and similar rights and values |
Self- generated software |
Transport and leasing contracts |
Customer base |
Payments on account |
Total |
|---|---|---|---|---|---|---|
| Historical cost | ||||||
| Balance as at 1 Jan 2006 | 318.0 | 318.2 | 578.3 | 139.1 | 2.9 | 1,356.5 |
| Exchange differences | 0.8 | - 9.5 | - 58.6 | - 14.1 | – | - 81.4 |
| Additions due to changes in the group of consolidated companies | 1.6 | – | – | 2.2 | – | 3.8 |
| Additions | 30.9 | 11.7 | – | – | 3.3 | 45.9 |
| Disposals | 80.7 | 219.2 | – | – | 0.2 | 300.11) |
| Reclassifications | 14.7 | - 11.4 | - 66.9 | - 21.2 | - 2.0 | - 86.8 |
| Balance as at 31 Dec 2006 | 285.3 | 89.8 | 452.8 | 106.0 | 4.0 | 937.9 |
| Exchange differences | - 54.9 | - 12.9 | - 39.1 | - 32.6 | – | - 139.5 |
| Additions due to changes in the group of consolidated companies | 516.1 | 94.1 | 120.6 | 286.3 | – | 1,017.1 |
| Additions | 40.3 | 7.5 | – | 9.2 | 7.0 | 64.0 |
| Disposals | 18.0 | 0.6 | – | – | – | 18.62) |
| Reclassifications | 9.8 | - 7.1 | – | – | - 2.9 | - 0.2 |
| Balance as at 31 Dec 2007 | 778.6 | 170.8 | 534.3 | 368.9 | 8.1 | 1,860.7 |
| Amortisation | ||||||
| Balance as at 1 Jan 2006 | 225.5 | 253.1 | 9.0 | 5.5 | 0.0 | 493.1 |
| Exchange differences | 0.6 | - 10.0 | - 3.6 | - 1.0 | – | - 14.0 |
| Additions due to changes in the group of consolidated companies | – | – | – | – | – | – |
| Amortisation for the current year | 39.0 | 16.4 | 50.2 | 8.1 | – | 113.7 |
| Disposals | 71.1 | 185.0 | – | – | – | 256.11) |
| Reclassifications | 11.5 | - 11.0 | - 2.2 | - 2.0 | – | - 3.7 |
| Balance as at 31 Dec 2006 | 205.5 | 63.5 | 53.4 | 10.6 | 0.0 | 333.0 |
| Exchange differences | - 12.5 | - 8.1 | - 5.0 | - 3.3 | – | - 28.9 |
| Additions due to changes in the group of consolidated companies | 0.3 | 45.1 | – | – | – | 45.4 |
| Amortisation for the current year | 42.7 | 10.7 | 47.0 | 54.7 | – | 155.1 |
| Disposals | 17.4 | 0.2 | – | – | – | 17.62) |
| Reclassifications | 6.3 | - 6.4 | – | – | – | - 0.1 |
| Balance as at 31 Dec 2007 | 224.9 | 104.6 | 95.4 | 62.0 | 0.0 | 486.9 |
| Carrying amounts as at 31 Dec 2006 | 79.8 | 26.3 | 399.4 | 95.4 | 4.0 | 604.9 |
| Carrying amounts as at 31 Dec 2007 | 553.7 | 66.2 | 438.9 | 306.9 | 8.1 | 1,373.8 |
1) of which disposals due to changes in the group of consolidated companies of € 200.0 million and € 159.7 million, respectively
2) of which disposals due to changes in the group of consolidated companies of € 2.8 million and € 2.1 million, respectively
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© TUI AG Geschäftsbericht 2007 |
Self-generated software related to computer programmes for tourism applications exclusively used internally by the Group.
The other intangible assets acquired in the wake of the merger with the First Choice Holidays Group, relating in particular to trademarks and customer bases were amortised annually on the basis of the economic benefit determining the corresponding asset. The trademarks were amortised over period of 15 to 20 years, while the customer bases were amortised over periods of two and 15 years.
In the completed financial year, impairments of € 3.6 million (previous year:
€ 8.3 million) were charged, relating to concessions, industrial property rights and similar rights and values. As in 2006, no write-backs to other intangible assets were effected in the year under review.
(16) Investment property
Investment property
| € million | 2007 | 2006 |
|---|---|---|
| Historical cost | ||
| Balance as at 1 Jan | 157.1 | 144.5 |
| Exchange differences | – | – |
| Additions due to changes in the group of consolidated companies | – | – |
| Additions | 7.4 | 7.5 |
| Disposals | 21.8 | 11.0 |
| Reclassifications | - 2.0 | 16.1 |
| Balance as at 31 Dec | 140.7 | 157.1 |
| Depreciation | ||
| Balance as at 1 Jan | 61.4 | 54.3 |
| Exchange differences | – | – |
| Additions due to changes in the group of consolidated companies | – | – |
| Depreciation for the current year | 6.9 | 11.0 |
| Disposals | 18.0 | 8.9 |
| Reclassifications | - 0.1 | 5.0 |
| Balance as at 31 Dec | 50.2 | 61.4 |
| Carrying amounts as at 31 Dec | 90.5 | 95.7 |
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© TUI AG Geschäftsbericht 2007 |
As a matter of principle, real estate owned by the Group is used for the Group’s ordinary business activities. In addition, the Group owned commercial property and apartments which met the definition of investment property under IAS 40. The carrying amount of this investment property carried in fixed assets totalled € 90.5 million (previous year: € 95.7 million). The fair values totalling € 99.0 million (previous year: € 104.3 million) were calculated by the Group’s own real estate companies, without consulting an external expert, on the basis of comparable market rents. The fair value of property for which purchase contracts had already been concluded was the selling price. Investment property generated total income of € 43.6 million (previous year: € 41.3 million). The generation of this income was associated with expenses of € 44.7 million (previous year: € 38.7 million) in the 2007 financial year. Impairments of € 3.9 million (previous year: € 7.4 million) were charged for investment property.
(17) Property, plant and equipment
Property, plant and equipment
|
€ million |
Real estate with hotels |
Other real estate, land rights and buildings incl. buildings on third-party properties |
Aircraft |
Ships |
Container and container semitrailers |
Machinery and fixtures |
Other plants, operating and office equipment |
Assets under construction |
Payments on account |
Total |
|---|---|---|---|---|---|---|---|---|---|---|
| Historical cost | ||||||||||
| Balance as at 1 Jan 2006 | 1,102.2 | 612.9 | 2,246.8 | 3,175.7 | 881.1 | 332.5 | 1,182.9 | 71.1 | 148.7 | 9,753.9 |
| First-time application of IFRS 5 | 8.7 | – | – | – | – | – | – | 1.5 | 2.1 | 12.3 |
| Adjusted balance as at 1 Jan 2006 | 1,110.9 | 612.9 | 2,246.8 | 3,175.7 | 881.1 | 332.5 | 1,182.9 | 72.6 | 150.8 | 9,766.2 |
| Exchange differences | - 32.5 | 0.2 | 18.6 | - 67.5 | 4.0 | - 9.5 | - 10.4 | - 0.4 | 0.6 | - 96.9 |
| Additions due to changes in the group of consolidated companies | 28.2 | 6.8 | – | – | – | – | 15.2 | – | 0.1 | 50.3 |
| Additions | 92.5 | 11.5 | 180.1 | 120.4 | 38.1 | 16.3 | 119.3 | 32.6 | 81.6 | 692.4 |
| Disposals | 7.8 | 89.7 | 242.7 | 566.2 | 81.1 | 55.5 | 264.5 | 4.1 | 10.5 | 1,322.11) |
| Reclassifications | - 27.8 | - 3.7 | 113.8 | 0.3 | – | - 81.9 | - 1.7 | - 21.0 | - 92.2 | - 114.2 |
| Balance as at 31 Dec 2006 | 1,163.5 | 538.0 | 2,316.6 | 2,662.7 | 842.1 | 201.9 | 1,040.8 | 79.7 | 130.4 | 8,975.7 |
| Exchange differences | - 36.7 | - 16.4 | - 78.6 | - 32.9 | - 0.7 | 0.4 | - 42.2 | - 0.2 | – | - 207.3 |
| Additions due to changes in the group of consolidated companies | 10.0 | 137.4 | 134.0 | 231.5 | – | – | 201.9 | 3.8 | – | 718.6 |
| Additions | 128.1 | 55.5 | 43.8 | 269.2 | 74.7 | 18.2 | 82.6 | 87.8 | 248.5 | 1,008.4 |
| Disposals | 1.6 | 17.5 | 158.9 | 71.2 | 52.3 | 8.5 | 88.2 | 0.4 | 57.2 | 455.82) |
| Reclassifications | 21.1 | - 32.4 | – | 21.8 | 1.2 | 3.2 | 3.7 | - 28.4 | - 30.9 | - 40.7 |
| Balance as at 31 Dec 2007 | 1,284.4 | 664.6 | 2,256.9 | 3,081.1 | 865.0 | 215.2 | 1,198.6 | 142.3 | 290.8 | 9,998.9 |
| Depreciation | ||||||||||
| Balance as at 1 Jan 2006 | 232.6 | 212.5 | 929.2 | 1,111.6 | 408.0 | 190.7 | 787.1 | 0.0 | 0.0 | 3,871.7 |
| First-time application of IFRS 5 | 1.0 | – | – | – | – | – | – | – | – | 1.0 |
| Adjusted balance as at 1 Jan 2006 | 233.6 | 212.5 | 929.2 | 1,111.6 | 408.0 | 190.7 | 787.1 | 0.0 | 0.0 | 3,872.7 |
| Exchange differences | - 2.6 | 1.1 | 12.1 | - 5.0 | 4.0 | - 5.7 | - 11.9 | – | – | - 8.0 |
| Additions due to changes in the group of consolidated companies | 9.7 | 1.3 | – | – | – | – | 11.7 | – | – | 22.7 |
| Depreciation for the current year | 66.5 | 12.3 | 159.7 | 158.0 | 57.2 | 21.9 | 121.7 | – | – | 597.3 |
| Disposals | 3.9 | 51.3 | 128.5 | 115.3 | 33.0 | 42.4 | 227.6 | – | – | 602.01) |
| Reclassifications | - 9.3 | - 2.5 | – | - 10.0 | 10.0 | - 51.3 | - 6.0 | – | – | - 69.1 |
| Balance as at 31 Dec 2006 | 294.0 | 173.4 | 972.5 | 1,139.3 | 446.2 | 113.2 | 675.0 | 0.0 | 0.0 | 3,813.6 |
| Exchange differences | - 4.5 | - 8.3 | - 47.1 | - 2.6 | - 0.2 | 0.1 | - 30.4 | – | – | - 93.0 |
| Additions due to changes in the group of consolidated companies | – | 58.4 | 62.9 | 45.9 | – | 142.5 | – | – | 309.7 | |
| Depreciation for the current year | 75.8 | 17.7 | 164.9 | 155.6 | 59.2 | 15.3 | 102.9 | – | – | 591.4 |
| Disposals | 3.0 | 14.3 | 113.5 | 62.7 | 48.0 | 7.7 | 76.1 | – | – | 325.32) |
| Reclassifications | 1.0 | 1.6 | – | – | 0.5 | – | - 6.8 | – | – | - 3.7 |
| Balance as at 31 Dec 2007 | 363.3 | 228.5 | 1,039.7 | 1,275.5 | 457.7 | 120.9 | 807.1 | 0.0 | 0.0 | 4,292.7 |
| Carrying amounts as at 31 Dec 2006 | 869.5 | 364.6 | 1,344.1 | 1,523.4 | 395.9 | 88.7 | 365.8 | 79.7 | 130.4 | 5,162.1 |
| Carrying amounts as at 31 Dec 2007 | 921.1 | 436.1 | 1,217.2 | 1,805.6 | 407.3 | 94.3 | 391.5 | 142.3 | 290.8 | 5,706.2 |
1) of which disposals due to changes in in the group of consolidated companies of € 210.6 million and € 141.5 million, respectively
2) of which disposals due to changes in in the group of consolidated companies of € 8.6 million and € 6.0 million, respectively
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© TUI AG Geschäftsbericht 2007 |
At the balance sheet date, the carrying amount of property, plant and equipment subject to restraints on ownership amounted to € 79.1 million (previous year:
€ 16.2 million), including an amount of € 79.1 million (previous year: € 14.4 million) pledged as security.
The Group reversed depreciation of property, plant and equipment of € 3.3 million (previous year: € 0.0 million); impairments totalled € 45.5 million and included an amount of € 38.2 million for land with buildings and € 3.5 million for aircraft.
Reclassifications of € 16.3 million or € 3.8 million related in particular to the reclassification of assets held for sale. In the 2007 financial year, these assets primarily comprised apartments in a hotel complex.
Property, plant and equipment comprised all leased assets in which consolidated subsidiaries carried all the risks and rewards incident to ownership of the assets.
Development of leased assets
| € million | Buildings | Aircraft | Ships | Containers | Other | Total |
|---|---|---|---|---|---|---|
| Historical cost | ||||||
| Balance as at 1 Jan 2006 | 10.8 | 471.2 | 60.9 | 9.3 | 21.6 | 573.8 |
| Exchange differences | – | 3.9 | – | - 0.9 | - 0.3 | 2.7 |
| Additions due to changes in the group of consolidated companies | – | – | – | – | – | 0.0 |
| Additions | 0.4 | 0.2 | 70.5 | 2.3 | 3.5 | 76.9 |
| Disposals | – | – | 131.4 | – | 17.3 | 148.71) |
| Reclassifications | – | 40.2 | – | 0.3 | - 0.3 | 40.2 |
| Balance as at 31 Dec 2006 | 11.2 | 515.5 | 0.0 | 11.0 | 7.2 | 544.9 |
| Exchange differences | – | - 15.2 | - 2.7 | - 1.2 | - 0.4 | - 19.5 |
| Additions due to changes in the group of consolidated companies | – | 4.8 | 27.1 | – | 17.8 | 49.7 |
| Additions | 6.6 | – | 0.6 | – | 8.7 | 15.9 |
| Disposals | – | 22.2 | 0.9 | – | 0.2 | 23.32) |
| Reclassifications | – | – | – | – | – | 0.0 |
| Balance as at 31 Dec 2007 | 17.8 | 482.9 | 24.1 | 9.8 | 33.1 | 567.7 |
| Depreciation | ||||||
| Balance as at 1 Jan 2006 | 2.2 | 108.7 | 1.9 | 2.7 | 14.3 | 129.8 |
| Exchange differences | – | 1.9 | – | 0.3 | – | 2.2 |
| Additions due to changes in the group of consolidated companies | – | – | – | – | – | 0.0 |
| Depreciation for the current year | 0.2 | 40.9 | 5.3 | 0.8 | 4.0 | 51.2 |
| Disposals | – | – | 7.2 | – | 14.8 | 22.01) |
| Reclassifications | – | 39.8 | – | 0.3 | - 0.3 | 39.8 |
| Balance as at 31 Dec 2006 | 2.4 | 191.3 | 0.0 | 4.1 | 3.2 | 201.0 |
| Exchange differences | – | - 8.4 | - 0.7 | - 0.5 | - 0.3 | - 9.9 |
| Additions due to changes in the group of consolidated companies | – | 3.5 | 7.9 | – | 13.0 | 24.4 |
| Depreciation for the current year | 0.3 | 39.0 | 0.3 | 0.9 |