Mercedes 2001 Annual Report Download - page 108

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104 Notes to Consolidated Balance Sheets
The following schedule presents the effects of a
one-percentage-point change in assumed health care
cost trend rates:
Accruals for restructuring comprise certain
employee termination benefits and costs which are
directly associated with plans to exit specified activities.
The changes in these provisions are summarized as
follows:
In connection with the Group’s restructuring,
provisions were recorded for termination benefits of
€1,504 million (2000: €16 million; 1999: €183 million),
in 2001 principally within Chrysler Group (see Note 7)
and Freightliner (see Note 5), in 2000 principally
within Mercedes-Benz Passenger Cars & smart and
Commercial Vehicles and in 1999 principally within in-
dustrial businesses and DaimlerChrysler Aerospace. In
connection with these restructuring efforts, the Group
effected workforce reductions of approximately 17,700
employees (2000: 2,600; 1999: 2,400) and paid termi-
nation benefits of €269 million (2000: €135 million;
1999: €239 million), of which €227 million (2000: €120
million; 1999: €168 million) were charged against pre-
viously established liabilities. At December 31, 2001
the Group had liabilities for estimated future termina-
tions for approximately 6,800 employees.
Exit costs in 2001 primarily result from the
restructuring within Chrysler Group and Freightliner.
In 2000 and 1999 exit costs primarily result from the
restructuring of industrial businesses.
1-Percen-
tage
Point
Decrease
1-Percen-
tage
Point
Increase
Effect on total of service and interest
cost components
Effect on accumulated postretirement
benefit obligations
170 ( 14 0)
1,681 (1,421)
Prepaid Employee Benefits
In 1996 DaimlerChrysler established a Voluntary
Employees’ Beneficiary Association (“VEBA”) trust for
payment of non-pension employee benefits. At Decem-
ber 31, 2001 and 2000, the VEBA had a balance of
€3,648 million and €3,586 million, respectively, of
which €2,848 million and €2,864 million, respectively,
were designated and restricted for the payment of
postretirement health care benefits. Contributions to
the VEBA trust during the year ended December 31,
1999 were €727 million. No contributions to the VEBA
trust were made in 2001 and 2000.
b) Other Accrued Liabilities
Other accrued liabilities consisted of the following:
2000
At December 31,
Accrued warranty costs and price risks
Accrued losses on uncompleted
contracts
Restructuring
Accrued personnel and social costs
Accrued sales incentives
Other
9,213 7,715
549 804
1,190 260
2,386 2,503
3,771 3,588
9,421 8,228
26,530 23,098
2001
Balance at January 1, 1999
Utilizations and transfers
Reductions
Additions
Balance at December 31, 1999
Utilizations and transfers
Reductions
Additions
Balance at December 31, 2000
Utilizations and transfers
Reductions
Additions
Balance at December 31, 2001
560 75 635
(321) 21 (300)
(15) (9) (24)
183 101 284
407 188 595
(229) (56) (285)
(43) (34) (77)
16 11 27
151 109 260
(947) (275) (1,222)
(135) (144) (279)
1,504 927 2,431
573 617 1,190
Termination
benefits
Exit
costs
Total
liabilities
(in millions of €)
(in millions of €)
(in millions of €)