[13] Cash on hand and bank balances, securities

Cash and cash equivalents consist of cash on hand and bank balances as well as short-term securities. In 2006, cash and cash equivalents increased by €23,196 thousand to €184,774 thousand. This increase mainly resulted from the positive cash flow from operating activities amounting to €61,390 thousand less the negative cash flow from investing activities of € -5,787 thousand. The Company received additional cash inflows of €2,157 thousand in the form of a capital increase resulting from the exercise of employee stock options. Dividends amounting to €22,429 thousand were paid to shareholders.

[14] Trade receivables

Trade receivables include:

€ thousands	Dec, 31. 2006	Dec, 31. 2005
Trade receivables with maturities of less than 1 year	152,060	129,768
Uninvoiced services (<1 year)	20,380	8,726
	172,440	138,494
Trade receivables with maturities of more than 1 year	8,862	11,780
Uninvoiced services (>1 year)	1,177	0
	182,479	150,274

[15] Other receivables and other assets

Other receivables and other assets mainly consist of receivables due from tax authorities based on input taxes as well as rent deposits.

[16] Prepaid expenses

Prepaid expenses primarily include advance payments made by Software AG under license and lease agreements.

Fixed assets

Fixed aset schedule as of December 31, 2006
€ thousands	Goodwill	Intangible assets	Land and buildings	Operating and office equipment	Assets under construction	Financial assets	Total
Cost
Balance as of Jan. 1, 2006	231,756	36,015	52,152	44,992	0	6,994	371,909
Currency translation differences	- 621	- 383	- 536	- 1,081	- 8	- 1	- 2,630
Additions	593	459	656	4,580	149	265	6,702
Disposals	- 127	- 200	- 1,020	- 6,043	0	- 198	- 7,588
Balance as of Dec. 31, 2006	231,601	35,891	51,252	42,448	141	7,060	368,393
Accumulated depreciation/amortization
Balance as of Jan. 1, 2006	- 43,654	- 29,922	- 16,948	- 33,872	0	- 4,761	- 129,157
Currency translation differences	0	167	169	808	0	0	1,144
Additions	0	- 1,646	- 1,704	- 4,265	0	- 600	- 8,215
Disposals	0	204	502	5,872	0	0	6,578
Balance as of Dec. 31, 2006	- 43,654	- 31,197	- 17,981	- 31,457	0	- 5,361	- 129,650
Net book value as of Jan. 1, 2006	188,102	6,093	35,204	11,120	0	2,233	242,752
Net book value as of Dec. 31, 2006	187,947	4,694	33,271	10,991	141	1,699	238,743

[17] Intangible assets

This item mainly includes software licenses and customer bases obtained in connection with acquisitions.

[18] Goodwill

As of December 31, 2006, goodwill of €174,591 thousand had originated from the acquisition of the Software AG USA Group effective February 1, 2001; €6,586 thousand from the acquisition of the two Sabratec companies in Israel and in the USA effective February 3, 2005; €4,736 thousand from the acquisition of the APS Group effective June 29, 2005; and €2,034 thousand from the acquisition of Casabac Technologies GmbH, Bammental near Heidelberg, including its U.S. subsidiary. Goodwill related to the Software AG USA Group had been fully amortized over ten years by December 31, 2002 in accordance with the HGB accounting regulations applicable at that time. Additions and disposals during the fiscal year reflect subsequent changes in acquisition cost of goodwill related to the Sabratec companies, the APS Group, and Casabac acquired in 2005.

page forward