Balance Sheet Disclosures

[ 10 ] INTANGIBLE ASSETS

CHANGES IN INTANGIBLE ASSETS BETWEEN JANUARY 1 AND DECEMBER 31, 2005

Sensitivity analyses have shown that it is unnecessary to recognize impairment losses on goodwill and indefinite-lived intangible assets, including where realistic variations are applied to key assumptions.

CHANGES IN INTANGIBLE ASSETS BETWEEN JANUARY 1 AND DECEMBER 31, 2006

Of the total research and development costs incurred in 2006, €1,478 million (previous year: €1,432 million) met the criteria for capitalization under IFRSs.

The following amounts were recognized as expenses:

[ 11 ] PROPERTY, PLANT AND EQUIPMENT

CHANGES IN PROPERTY, PLANT AND EQUIPMENT BETWEEN JANUARY 1 AND DECEMBER 31, 2005

CHANGES IN PROPERTY, PLANT AND EQUIPMENT BETWEEN JANUARY 1 AND DECEMBER 31, 2006

Government grants of €47 million (previous year: €44 million) were deducted from the cost of property, plant and equipment. Call options on buildings and plant leased under the terms of finance leases exist in most cases, and are normally exercised. Interest rates on the leases vary between 2.9% and 11.0%, depending on the market and the date of inception of the lease. Future finance lease payments due, and their present values, are shown in the following table:

For assets leased under operating leases, payments recognized in the income statement amounted to €367 million in the year under review (previous year: €315 million).

[ 12 ] LEASING AND RENTAL ASSETS AND INVESTMENT PROPERTY

Leasing and rental assets include assets leased out under the terms of operating leases.

Investment property includes apartments rented out and leased dealerships, with a fair value of €434 million (previous year: €446 million). Operating expenses of €48 million (previous year: €47 million) were incurred for the maintenance of investment property in use. Expenses of €2 million (previous year: €1 million) were incurred for unused investment property.

The following payments from non-canceable leases and rental agreements are expected to be received over the coming years:

[ 13 ] INVESTMENTS IN GROUP COMPANIES ACCOUNTED FOR USING THE EQUITY METHOD AND OTHER EQUITY INVESTMENTS

The investments in companies accounted for using the equity method include joint ventures in the amount of €2,859 million (previous year: €2,800 million).

Significant joint ventures and associates are detailed in the listing of significant Group companies at the end of the notes to the consolidated financial statements.