Mercedes 2003 Annual Report Download - page 141
Download and view the complete annual report
Please find page 141 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.Including the items charged or credited directly to related compo-
nents of accumulated other comprehensive income (loss) and the
expense (benefit) of discontinued operations and from changes in
accounting principles, the expense (benefit) for income taxes con-
sists of the following:
In 2003, tax benefits of €105 million (2002: €175 million) from the
reversal of deferred tax asset valuation allowances at subsidiaries
of MMC were recorded as a reduction of the investor level goodwill
relating to the Group’s investment in MMC.
10. Discontinued Operations
On December 31, 2003, as a part of its ongoing strategy to focus
on its core automotive business, DaimlerChrysler completed the
sale of its 100% equity ownership interest in MTU Aero Engines
GmbH (“MTU Aero Engines”) to Kohlberg, Kravis and Roberts & Co.
Ltd., an investment company resulting in an after tax gain of €882
million, net of taxes of €149 million (see Note 4). Pursuant to the
requirements of SFAS 144, the results of MTU Aero Engines and
the gain on sale are reported as discontinued operations and the
Group’s consolidated financial statements for all prior periods have
been adjusted to reflect this presentation. However, the operating
profit of MTU Aero Engines is included in the Other Activities
segment operating profit in 2003, 2002 and 2001 (see Note 34).
The operating results of the discontinued operations are as follows:
11. Cumulative Effects of Changes in Accounting Principles
Variable Interest Entities. DaimlerChrysler adopted the provi-
sions of FIN 46R pertaining to the consolidation of variable interest
entities that are special purpose entities as of December 31, 2003
(see Note 2). The cumulative effect of adopting FIN 46R was a
reduction of net income of €30 million, net of taxes of €35 million
(€0.03 per share), recognized in the consolidated statement of
income (loss) in 2003.
Goodwill and Other Intangible Assets. Adoption of SFAS 142 -
DaimlerChrysler adopted SFAS 142 on January 1, 2002. The after-
tax transitional goodwill impairment charge recognized in the
consolidated statement of income (loss) in 2002 by DaimlerChrysler
was €159 million (€0.16 per share), which represents the Group’s
proportionate share of the transitional goodwill impairment charges
from equity method investees, primarily EADS.
| 137
136
(in millions of €)
2001
2003 2002
979
202
(35)
1,105
2,251
1,115
62
–
(2,699)
(1,522)
(849)
72
–
(507)
(1,284)
Expense (benefit) for income taxes of
continuing operations
Expense for income taxes of discontinued
operations
Income tax benefit from changes in accounting
principles
Stockholders’ equity for items in accumulated
other comprehensive income
Year ended December 31,
(in millions of €)
20012003 2002
1,933
67
(53)
–
14
2,215
143
(62)
1
82
2,487
171
(72)
2
101
Revenues
Income before income taxes
Income taxes
Minority interests
Earnings from discontinued
operations
Year ended December 31,