Mercedes 2004 Annual Report Download - page 122

Through December 31, 2004, the Group’s interest in the voting
stock of MMC had been further reduced to 19.7%. The carrying
amount of the Group’s investment in MMC at December 31, 2004
and 2003, was €459 million and €959 million, respectively.
Through June 29, 2004, the results from MMC are included in the
Group’s consolidated statements of income using the equity
method of accounting. The Group’s proportionate share in the
negative results of MMC through June 29, 2004, 2003 and 2002,
were €(655) million, €(281) million and €(88) million, respectively.
The amount for 2004 includes the effects from the dilution of the
Group’s interest in MMC of €(135) million and related realized
gains from currency hedging of the net investment of €195 mil-
lion (after tax €120 million). These effects from the dilution as
well as these realized gains from currency hedging are reflected
in DaimlerChrysler’s consolidated statement of income (loss)
in the line item “financial income (expense), net”.
The following table presents summarized U.S. GAAP financial
information for MMC, which were the basis for applying the equi-
ty method in the Group’s consolidated financial statements:
Toll Collect. In December 2002, DaimlerChrysler Services AG
(“DaimlerChrysler Services”), Deutsche Telekom AG (“Deutsche
Telekom”), and Compagnie Financière et Industrielle des
Autoroutes S.A. (“Cofiroute”) (together the “Consortium”)
entered into a partnership agreement to develop and in the
framework of a separate joint venture company to install and
operate a system for the electronic collection of tolls. This was
based on a contract entered into in September 2002 between
DaimlerChrysler Services, Deutsche Telekom and Cofiroute as
well as the Federal Republic of Germany to develop, install and
operate a system for electronic collection of tolls from all com-
mercial vehicles over 12t GVW using German highways (“Operat-
ing Agreement”). DaimlerChrysler Services and Deutsche
Telekom each hold a 45% equity interest and Cofiroute holds the
remaining 10% equity interest in both the consortium (Toll Collect
GbR) and the joint venture company (Toll Collect GmbH) (togeth-
er “Toll Collect”). Cofiroute’s risks and obligations are limited to
€70 million. DaimlerChrysler Services and Deutsche Telekom are
currently jointly obliged to indemnify Cofiroute for amounts
exceeding this limitation. DaimlerChrysler Services accounts for
its investment in Toll Collect using the equity method of account-
ing. The Group has a significant variable interest in Toll Collect, a
variable interest entity, but determined that it is not the primary
beneficiary and therefore not required to consolidate Toll Collect.
Toll Collect has not yet generated any revenues after its forma-
tion in 2002. Toll Collect’s net loss for the years ended December
31, 2004, 2003 and 2002, was €1,071 million, €206 million and
€45 million, respectively. At December 31, 2004 and 2003, Toll
Collect’s current assets totaled €77 million and €114 million, its
non-current assets totaled €458 million and €818 million, its cur-
rent liabilities totaled €296 million and €883 million, its non-cur-
rent liabilities totaled €1,173 million and €71 million, and its equi-
ty totaled €(934) million and €(22) million, respectively. Toll
Collect’s assets were primarily comprised of equipment repre-
senting the toll collection system and its liabilities were primarily
comprised of bank debt and amounts due to subcontractors.
The Group’s involvement with Toll Collect is comprised of its
equity interest and certain guarantees to fund Toll Collect GmbH
and to support the obligations of Toll Collect GmbH towards the
Federal Republic of Germany relating to the completion and oper-
ation of the toll collection system. As a result of an analysis of
the Operating Agreement and the supplement thereto and the
activities of Toll Collect GmbH, DaimlerChrysler recognized loss-
es of €480 million, €261 million and €20 million in 2004, 2003
and 2002, respectively. The aggregate losses recognized exceed-
ed DaimlerChrysler’s investment. After reducing the carrying
amount of the investment to zero in 2003, DaimlerChrysler rec-
ognized an amount of €480 million and €65 million which is
included in accrued liabilities on DaimlerChrysler’s consolidated
balance sheets as of December 31, 2004 and 2003, respectively,
as a result of DaimlerChrysler’s exposure under the aforemen-
tioned guarantees. The losses attributed to Toll Collect are
included in Financial income (expense), net, in DaimlerChrysler’s
2004, 2003 and 2002 statements of income.
118
Income statement information 1
MMC
27,129
(759)
27,847
(238)
9,858
(1,730)
2004 2003 2002
Balance sheet information 2
1,116
114
4,077
12,217
17,524
Revenues
Net loss
7,287
10,237
17,524
Fixed assets
Non-fixed assets
Total assets
Stockholders’ equity
Minority interests
Accrued liabilities
Other liabilities
Total liabilities and stockholders’ equity
1 2004 for the period October 1, 2003 to March 31, 2004;
2003 and 2002 for the period October 1 to September 30, respectively.
2 Balance sheet information as of September 30. For 2004 no balance sheet information provided
due to change from equity method to marketable security.
(in millions of €)