Mercedes 2003 Annual Report Download - page 131
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Please find page 131 of the 2003 Mercedes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.3. Significant Investments and Variable Interest Entities
Accounted for Under the Equity Method
Equity Method Investments. At December 31, 2003, the significant
investments in companies accounted for under the equity method
were the following:
Further information with respect to the transactions which resulted
in the Group’s holdings in EADS, MMC and MFTBC is presented in
Note 4 (Acquisitions and Dispositions), Note 8 (Financial Income
(expense), net) and Note 11 (Cumulative Effects of Changes in
Accounting Principles).
The market values at December 31, 2003, of DaimlerChrysler’s
investments in EADS and MMC, based on quoted market prices,
were €5,027 million and €889 million, respectively. Quoted market
prices for MFTBC are not available because the shares in MFTBC
are not publicly traded.
The carrying amounts of DaimlerChrysler’s investments in EADS,
MMC and MFTBC at December 31, 2003 and 2002, are as follows:
As of September 30, 2003, DaimlerChrysler determined that the
decline in market value below the carrying value of its investment
in EADS was other-than-temporary. Consequently, DaimlerChrysler
reduced the then carrying value of its investment in EADS by €1.96
billion to its market value, based on the quoted market price, which
approximated €3.5 billion at September 30, 2003 (see Note 8). The
impairment charge is included in the Group’s consolidated state-
ment of income (loss) in the line item “financial income (expense),
net” in 2003. As a result of the impairment a new cost basis was
established.
The carrying value of DaimlerChrysler’s investments in MMC and
MFTBC exceeded DaimlerChrysler’s share of the underlying report-
ed net assets of these investees by approximately €546 million and
€105 million, respectively, at December 31, 2003. Daimler-
Chrysler’s share of the underlying reported net assets of EADS
exceeded the carrying value of DaimlerChrysler’s investment at
December 31, 2003, by approximately €1,899 million. These
excess amounts are attributable to fair value adjustments at
DaimlerChrysler pertaining to certain assets and liabilities of these
investee companies, with the remaining portion considered as
investor level goodwill.
The following tables present, on a three month lag, summarized
U.S. GAAP financial information for EADS, MMC and MFTBC
(amounts shown on a 100% basis in millions of €) which are the
basis for applying the equity method in the Group’s consolidated
financial statements:
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126
Company
33.0%
37.0%
43.0%
European Aeronautic Defence and Space Company EADS N.V.
Mitsubishi Motors Corporation
Mitsubishi Fuso Truck and Bus Corporation
Ownership
percentage
(in millions of €)
4,396
1,316
–
At December 31,
2002
2003
3,583
959
831
EADS
MMC
MFTBC1
1 Acquisition in 2003. DaimlerChrysler applied the equity method beginning on March 14, 2003
(see Note 4).
Income statement information 1
EADS
28,769
521
27,650
348
2003 2002
Balance sheet information 2
26,254
19,207
45,461
13,143
942
8,262
23,114
45,461
27,305
24,804
52,109
16,611
1,717
8,055
25,726
52,109
Revenues
Net income
Fixed assets
Non-fixed assets
Total assets
Stockholders’ equity
Minority interests
Accrued liabilities
Other liabilities
Total liabilities and stockholders’ equity
1 For the period October 1 to September 30.
2 Balance sheet date as of September 30.
Income statement information 1
MMC
27,847
(238)
27,129
(759)
2003 2002
Balance sheet information 2
1,422
121
5,039
15,854
22,436
7,287
10,237
17,524
Revenues
Net loss
1,116
114
4,077
12,217
17,524
10,465
11 , 971
22,436
Fixed assets
Non-fixed assets
Total assets
Stockholders’ equity
Minority interests
Accrued liabilities
Other liabilities
Total liabilities and stockholders’ equity
1 For the period October 1 to September 30.
2 Balance sheet date as of September 30.
Income statement information 2
MFTBC1
4,948
130
2003
Balance sheet information 3
2,531
3,515
6,046
Revenues
Net income
1,688
13
1,215
3,130
6,046
Fixed assets
Non-fixed assets
Total assets
Stockholder’s equity
Minority interests
Accrued liabilities
Other liabilities
Total liabilities and stockholders’ equity
1 Acquisition in 2003. DaimlerChrysler applied the equity method beginning on March 14, 2003.
2 For the period of inception of MFTBC, as a result of the spin-off from MMC, on January 6, 2003 to
September 30, 2003 (see Note 4).
3 As of balance sheet date September 30, 2003.