Mercedes 2001 Annual Report Download - page 101

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Notes to Consolidated Balance Sheets 97
Convertible Notes
In June 1997, DaimlerChrysler issued 5.75% subordi-
nated mandatory convertible notes due June 14, 2002
with a nominal amount of €66.83 per note. These con-
vertible notes represent at the date of issue a nominal
amount of €508 million including 7,600,000 notes
which may be converted into 0.86631 newly issuable
shares of DaimlerChrysler AG before June 4, 2002.
Notes not converted by this date will be mandatorily
converted at a conversion rate between 0.86631 and
1.25625 Ordinary Shares of DaimlerChrysler AG per
note to be determined on the basis of the average mar-
ket price for the shares during the last 20 trading days
before June 8, 2002. During 2001, 87 (2000: 92; 1999:
665) DaimlerChrysler Ordinary Shares were issued
upon exercise.
During 1996, DaimlerChrysler Luxembourg Capi-
tal S.A., a wholly-owned subsidiary of DaimlerChrysler,
issued 4.125% bearer notes with appertaining warrants
due July 5, 2003, in the amount of €613 million (with a
nominal value of €511 each) entitling the bond holders
to subscribe for a total of 12,366,324 shares (7,728,048
of which represent newly issued shares totaling €383
million) of DaimlerChrysler. According to the note
agreements the option price per share is €42.67 in con-
sideration of exchange of the notes or €44.49 in cash.
During 2001, no options for the subscription of newly
issued DaimlerChrysler Ordinary Shares (2000: 10,416;
1999: 1,517,468) were exercised.
Comprehensive Income
The changes in the components of other comprehensive
income (loss) are as follows:
Year ended December 31,
(in millions of €)
Tax
effect Net PretaxNet
Tax
effectPretax Pretax
Tax
effect
Unrealized gains (losses) on securities:
Unrealized holding gains (losses)
Reclassification adjustments for (gains)
losses included in net income (loss)
Net unrealized gains (losses)
Net gains (losses) on derivatives hedging
variability of cash flows:
Unrealized derivative gains (losses)
Reclassification adjustments for (gains)
losses included in net income (loss)
Net derivative gains (losses)
Foreign currency translation adjustments
Minimum pension liability adjustments
Other comprehensive income (loss)
1999
(129) 149 20 (250) 46 (204) 292 (163) 129
(46) (111) (157) 61 (6) 55 (623) 313 (310)
(175) 38 (137) (189) 40 (149) (331) 150 (181)
(708) 257 (451) (1,932) 978 (954) – – –
829 (307) 522 1,113 (567) 546 – – –
121 (50) 71 (819) 411 (408) – – –
598 (33) 565 1,474 (111) 1,363 2,431 – 2,431
(1,436) 552 (884) 8 (2) 6 (13) 5 (8)
(892) 507 (385) 474 338 812 2,087 155 2,242
Net
20002001
Miscellaneous
The minority stockholders of Dornier GmbH, a subsid-
iary of DADC Luft- und Raumfahrt Beteiligungs AG,
have the right, exercisable at any time, to exchange
their shareholdings in Dornier for cash or holdings in
DaimlerChrysler AG or its subsidiary DaimlerChrysler
Luft- und Raumfahrt Holding Aktiengesellschaft. Some
of the Dornier minority stockholders partially
exercised this right in 2001 and exchanged some of
their shareholdings in Dornier for cash and/or holdings
in DaimlerChrysler Luft- und Raumfahrt Holding
Aktiengesellschaft. To the extent that they have made
use of their right to exchange their shareholdings for
holdings of DaimlerChrysler Luft- und Raumfahrt Hold-
ing Aktiengesellschaft, they have the right to exchange
this new shareholding for cash or for DaimlerChrysler
Ordinary Shares. This right has already been partially
exercised.
Under the German corporation law (Aktiengesetz),
the amount of dividends available for distribution to
shareholders is based upon the unappropriated accu-
mulated earnings of DaimlerChrysler AG (parent com-
pany only) as reported in its statutory financial state-
ments determined in accordance with the German com-
mercial code (Handelsgesetzbuch). For the year ended
December 31, 2001, DaimlerChrysler management has
proposed a distribution of €1,003 million (€1 per share)
of the 2001 earnings of DaimlerChrysler AG as a
dividend to the stockholders.