Mercedes 2003 Annual Report Download - page 147
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Please find page 147 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.DaimlerChrysler is authorized to issue convertible bonds and notes
with warrants in a nominal volume of up to €15 billion by April 18,
2005. The convertible bonds and notes with warrants shall grant to
the holders or creditors option or conversion rights for new shares
in DaimlerChrysler in a nominal amount not to exceed €300 million
of capital stock. DaimlerChrysler is also entitled to grant up to
96,000,000 rights (representing up to a nominal amount of approx-
imately €250 million of capital stock) with respect to the Daimler-
Chrysler Stock Option Plan by April 18, 2005.
In 2003, no options were exercised from the Stock Option Plan
1996. In 2002, 7,035 Ordinary Shares of DaimlerChrysler were
issued upon exercise of options from this Plan.
Convertible Notes. In June 1997, DaimlerChrysler issued 5.75%
subordinated mandatory convertible notes due June 14, 2002,
with a nominal amount of €66.83 per note. These convertible notes
represented at the date of issue a nominal amount of €508 million
including 7,600,000 notes which could be converted, subject to
adjustment, into 0.86631 newly issuable shares of DaimlerChrysler
AG for each note before June 4, 2002. During 2002, 17,927
DaimlerChrysler Ordinary Shares were issued upon exercise
(2001: 87). On June 14, 2002, the mandatory conversion date,
7,572,881 notes were converted into 9,506,483 newly issued
Comprehensive Income. The changes in the components of accu-
mulated other comprehensive income (loss) are as follows:
Ordinary Shares of DaimlerChrysler AG. The conversion price of
€52.72 was determined on June 8, 2002, on the basis of the
average closing auction price for the shares in Xetra-trading for the
period between May 13, 2002 and June 7, 2002. Because this
conversion price was below the adjusted minimum conversion
price of €53.19, the number of shares was calculated based on the
adjusted minimum conversion price. Thus each shareholder
received 1.25643 Ordinary Shares of DaimlerChrysler AG per note.
Fractions that remained after aggregation were settled in cash
based on a conversion rate of €52.72 amounting to a total cash
payment of €0.4 million.
During 1996, DaimlerChrysler Luxembourg Capital S.A., a
wholly-owned subsidiary of DaimlerChrysler, issued 4.125% bearer
notes with appertaining warrants due July 5, 2003, in the amount
of €613 million (with nominal value of €511 each), which entitled
the bond holders to subscribe for a total of 12,366,324 shares
(7,728,048 of which represents newly issued shares totaling €383
million) of DaimlerChrysler. According to the note agreements the
option price per share was €42.67 in consideration of exchange of
the notes or €44.49 in cash. The warrants expired on June 18,
2003. In 2003 (until June 18) 20,698 (2002: 50; 2001: -) ordinary
shares were issued as a result of exercises of warrants. The
repayment for the remaining options was made on July 5, 2003.
585
(178)
407
2,724
(1,562)
1,162
444
(1,561)
452
(146)
77
(69)
(1,682)
944
(738)
(218)
(80)
(1,105)
(in millions of €)
Tax effect
2003
NetPretax
122
(223)
(101)
2,417
( 111 )
2,306
(10,022)
(3,154)
(10,971)
731
(255)
476
4,406
(2,506)
1,900
662
(1,481)
1,557
(77)
43
(34)
(952)
48
(904)
3,721
(84)
2,699
45
(180)
(135)
1,465
(63)
1,402
(6,301)
(3,238)
(8,272)
(129)
(46)
(175)
(708)
829
121
(1,436)
598
(892)
149
( 111 )
38
257
(307)
(50)
552
(33)
507
20
(157)
(137)
(451)
522
71
(884)
565
(385)
Unrealized gains (losses) on securities
(incl. retained interests):
Unrealized holding gains (losses)
Reclassification adjustments for
(gains) losses included in net income (loss)
Unrealized gains (losses) on securities
Unrealized gains (losses) on derivatives
hedging variability of cash flows:
Unrealized derivative gains (losses)
Reclassification adjustments for
(gains) losses included in net income (loss)
Unrealized derivative gains (losses)
Minimum pension liability adjustments
Foreign currency translation adjustments
Other comprehensive income (loss)
2002
Net
2001
NetPretax PretaxTax effect Tax effect
Year ended December 31,Year ended December 31,Year ended December 31,
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