Mercedes 2004 Annual Report Download - page 129

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The net charges recorded for the plan in 2003 were €469 million
(€288 million net of taxes) and are presented as a separate line
item on the accompanying consolidated statements of income
(loss) (€462 million and €7 million would have otherwise been
reflected in cost of sales and selling, administrative and other
expenses, respectively). The 2003 charges and adjustments were
recorded for costs associated with the closing, significant down-
sizing or sale of certain manufacturing facilities in 2003 to 2005,
related workforce reduction measures as well as revisions of
estimates based on information available or actual settlements.
The net charges recorded for the plan in 2002 were €694 million
(€439 million net of taxes) and are presented as a separate line
item on the accompanying consolidated statements of income
(loss) (€680 million and €14 million would have otherwise been
reflected in cost of sales and selling, administrative and other
expenses, respectively). The 2002 charges and adjustments were
for costs associated with the idling, closing or disposal of certain
manufacturing facilities in 2002 and 2003 and ongoing work-
force reduction measures as well as revisions of estimates based
upon information currently available for actual settlements.
The net charges recorded for the plan in 2001 were €3,064 mil-
lion (€1,934 million net of taxes), including €1,374 million related
to workforce reductions, €984 million related to asset write-downs
and €706 million related to other costs.
The pre-tax amounts for turnaround plan charges are comprised
of the following:
The Chrysler Group sold the Dayton Thermal Products facility on
May 1, 2002 to a joint venture company with Behr America, Inc.
and maintained a minority interest for two years. The Chrysler
Group sold its remaining minority interest in the joint venture to
Behr America for net book value on May 1, 2004. In addition, the
Chrysler Group sold its Graz, Austria plant to Magna International
Inc. (“Magna”) on July 12, 2002. The exit costs of these two
plant sales were previously provided for in the turnaround plan
charges.
125
(in millions of €)
Total
Other
costs/credits
Asset
write-downs
Workforce
reductions
506
353
(41)
312
(297)
–
(152)
(89)
280
182
27
209
(151)
–
(108)
(32)
198
175
(21)
154
(119)
–
(57)
(16)
160
–
269
30
299
–
(299)
–
–
–
234
15
249
–
(249)
–
–
–
6
37
43
–
(43)
–
–
–
510
99
(16)
83
(215)
(6)
–
(67)
305
26
(15)
11
(128)
(3)
–
(37)
148
(55)
3
(52)
(100)
65
–
(1)
60
1,016
721
(27)
694
(512)
(305)
(152)
(156)
585
442
27
469
(279)
(252)
(108)
(69)
346
126
19
145
(219)
22
(57)
(17)
220
Reserve balance
at January 1, 2002
Additional charges
Adjustments
Net charges
Payments
Amount charged
against assets
Amount recognized by
and transferred to
the employee benefit plans
Currency translation
adjustments
Reserve balance
at December 31, 2002
Additional charges
Adjustments
Net charges
Payments
Amount charged
against assets
Amount recognized by
and transferred to
the employee benefit plans
Currency translation
adjustments
Reserve balance
at December 31, 2003
Additional charges/
(gains)
Adjustments
Net charges/(gains)
Payments
Amount charged
against assets
Amount recognized by
and transferred to
the employee benefit plans
Currency translation
adjustments
Reserve balance
at December 31, 2004