Mercedes 2003 Annual Report Download - page 140
Download and view the complete annual report
Please find page 140 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
The Group has various open income tax years unresolved with the
taxing authorities in various jurisdictions. The open years are either
currently under review by certain taxing authorities or not yet
under examination. The Group believes it has made adequate liabi-
lities accrued for any future income taxes that may be owed for all
open years. Included in the line “tax rate differential with non-Ger-
man countries” above is a tax benefit and related interest of €571
million which have resulted in 2003 in connection with agreements
reached with the tax authorities in the U.S. on a claim pertaining to
additional research and development credits for tax years 1986
through 1998. Included in the line “tax free income and non-
deductible expenses” is a tax expense and related interest of €318
million pertaining primarily to tax costs associated with current
year developments resulting from the examination of the German
tax Group’s tax filings by the German tax authorities for the years
1994 to 1998.
Deferred income tax assets and liabilities are summarized as
follows:
At December 31, 2003, the Group had corporate tax net operating
losses (“NOLs”) amounting to €2,991 million (2002: €2,346 million),
trade tax NOLs amounting to €40 million (2002: €2,888 million) and
credit carryforwards amounting to €1,700 million (2002: €1,788
million). The corporate tax NOLs mainly relate to losses of U.S.
companies and are partly limited in their use to the Group. Of the
total, corporate tax NOLs amounting to €126 million expire at various
dates from 2005 through 2013, €2,524 million expire in the year
2023 and €341 million can be carried forward indefinitely. The credit
carryforwards relate to U.S. companies and are partly limited in their
use to the Group. Of the total, credit carryforwards amounting to
€58 million expire from 2005 through 2022, €1,024 million expire in
the year 2023 and €618 million can be carried forward indefinitely.
The trade tax NOLs are not limited in their use.
The valuation allowances on deferred tax assets decreased by €12
million. In future periods, depending upon the financial results,
management’s estimate of the amount of the deferred tax assets
considered realizable may change, and hence the valuation
allowances may increase or decrease.
Net deferred income tax assets and liabilities in the consolidated
balance sheets are as follows:
DaimlerChrysler recorded deferred tax liabilities for non-German
withholding taxes of €239 million (2002: €288 million) on €4,782
million (2002: €5,760 million) in cumulative undistributed earnings
of non-German subsidiaries and additional German tax of €92 mil-
lion (2002: €111 million) on the future payout of these foreign divi-
dends because the earnings are not intended to be permanently
reinvested in those operations.
The Group did not provide income taxes or non-German withhol-
ding taxes on €7,891 million (2002: €6,950 million) in cumulative
earnings of non-German subsidiaries because the earnings are
intended to be indefinitely reinvested in those operations. It is not
practicable to estimate the amount of unrecognized deferred tax
liabilities for these undistributed foreign earnings.
(in millions of €)
2003 2002
637
2,387
727
565
429
522
2,996
3,205
4,573
1,330
1,069
77
18,517
(229)
18,288
(3,702)
(6,333)
(3,068)
(736)
(366)
(2,124)
(166)
(331)
(1,020)
(490)
(18,336)
(48)
611
2,132
956
709
663
28
3,002
3,424
4,938
1,733
1,138
92
19,426
(241)
19,185
(3,733)
(7,855)
(2,558)
(472)
(388)
(1,497)
(112)
(399)
(567)
(303)
(17,884)
1,301
At December 31,
Property, plant and equipment
Investments and long-term financial assets
Equipment on operating leases
Inventories
Receivables
Securities
Net operating loss and tax credit carryforwards
Pension plans and similar obligations
Other accrued liabilities
Liabilities
Deferred income
Other
Valuation allowances
Deferred tax assets
Property, plant and equipment
Equipment on operating leases
Receivables
Securities
Prepaid expenses
Pension plans and similar obligations
Other accrued liabilities
Taxes on undistributed earnings of non-German subsidiaries
Liabilities
Other
Deferred tax liabilities
Deferred tax assets (liabilities), net
2,688
(2,736)
(48)
(in millions of €)
1,714
(1,535)
179
thereof
non-current
3,613
(2,312)
1,301
1,982
(595)
1,387
Totalthereof
non-current
Total
At December 31, 2003 At December 31, 2002
Deferred tax assets
Deferred tax liabilities
Deferred tax assets (liabilities),
net