Mercedes 2003 Annual Report Download - page 136
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Please find page 136 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.Financial Reporting | Overview | Analysis of the Financial Situation | Statement by the Board of Management | Independent Auditors’ Report | Financial Statements
In October 2001, the DaimlerChrysler Board of Management
approved a turnaround plan for its North American truck subsidiary
Freightliner. The turnaround plan is designed to return Freightliner
to sustainable profitability and comprises four main elements:
material cost savings, production cost savings, overhead reduc-
tions and improvements to the existing business model. The imple-
mentation of the turnaround plan resulted in charges of €310 mil-
lion, reflecting employee termination benefits of €83 million, asset
impairment charges of €170 million, and other costs to exit certain
activities of €57 million (see Note 25b). The charges were recorded
in cost of sales (€173 million) and selling, administrative and other
expenses (€137 million) in 2001. Employee termination benefits
related to voluntary and involuntary severance measures affected
hourly and salaried employees. As a result of the voluntary and
involuntary measures, 188 hourly and salaried employees were
affected by the plan in 2003 (2002: 1,314 and 2001: 1,484). The
amount of employee termination benefit paid was €2 million in
2003 (2002: €38 million and 2001: €20 million).
Personnel expenses included in the statement of income (loss)
are comprised of:
Number of employees (annual average):
In 2001, 28 people were employed in joint venture companies.
Information on the remuneration to the current members of the
Supervisory Board and the Board of Management is included in
Note 37. In 2003, disbursements to former members of the Board
of Management of DaimlerChrysler AG and their survivors amount-
ed to €12.7 million. An amount of €163.1 million has been accrued
for pension obligations to former members of the Board of Man-
agement and their survivors. As of December 31, 2003, no
advances or loans existed to members of the Board of Manage-
ment of DaimlerChrysler AG.
6. Other Income
Other income consists of the following:
Other miscellaneous items consist of reimbursements under
insurance policies, income from licenses, reimbursements
of certain non-income related taxes and customs duties, income
from various employee canteens and other miscellaneous items.
In 2003, MTU Friedrichshafen GmbH, a fully consolidated company
of the Group, created a new company, MTU CFC Solutions GmbH
(“MTU CFC”), and contributed all of its fuel cell activities into a new
company for 100% ownership interest. Also in 2003, MTU CFC
issued new shares to RWE Fuel Cells GmbH for a capital contribu-
tion. MTU Friedrichshafen GmbH did not participate in this
increase in share capital causing the ownership interest of MTU
Friedrichshafen GmbH in MTU CFC to dilute to 74.9%. As a result of
this transaction, DaimlerChrysler realized a gain of €24 million,
which is also included in other miscellaneous income.
(in millions of €)
2001
20022003
18,897
3,178
837
1,290
85
24,287
19,701
3,132
152
1,119
59
24,163
20,073
3,193
630
1,173
26
25,095
Wages and salaries
Social levies
Net pension cost (see Note 25a)
Net postretirement benefit cost (see Note 25a)
Other expenses for pensions and retirements
Year ended December 31,
244,938
122,094
12,512
379,544
2001
232,304
125,110
13,263
370,677
226,989
129,656
14,039
370,684
20022003
Hourly employees
Salaried employees
Trainees/apprentices
100
191
465
86
25
19
315
1,201
2001
48
197
–
81
63
56
332
777
58
110
11
71
17
63
383
713
20022003
(in millions of €)
Gains of sales of property, plant and equipment
Rental income, other than relating to
financial services
Gains on sales of companies
Income from employee leasing programs
Reimbursement of contract costs
Government subsidies
Other miscellaneous items
Year ended December 31,