Mercedes 2004 Annual Report Download - page 134

12. Goodwill
Information with respect to changes in the Group’s goodwill is
presented in the Consolidated Fixed Asset Schedule included
herein.
Changes in the carrying amount of goodwill as of December 31,
2004 compared to the previous year relate mainly to the initial
consolidation of MFTBC (€253 million). Additions to goodwill
relating to the other acquisitions amounted to €4 million (2003:
€46 million). The remaining changes in the carrying amount of
goodwill relate to currency translation adjustments and disposi-
tions of businesses.
At December 31, 2004 and 2003, the carrying value of goodwill,
excluding investor level goodwill, allocated to the Group’s report-
ing segments are:
In connection with the transitional impairment evaluation
required by SFAS 142, DaimlerChrysler performed an assess-
ment of whether there was an indication that goodwill was
impaired as of January 1, 2002. To accomplish this, Daimler-
Chrysler (1) identified its reporting units, (2) determined the car-
rying value of each reporting unit by assigning the assets and lia-
bilities, including the existing goodwill and intangible assets, to
those reporting units, and (3) determined the fair value of each
reporting unit. DaimlerChrysler completed this first step of the
transitional assessment for all of the Group’s reporting units by
June 30, 2002 and determined that there was no indication that
goodwill had been impaired as of January 1, 2002. Accordingly,
no transitional goodwill impairment charge was necessary.
Companies accounted for by DaimlerChrysler using the equity
method, such as EADS, were also subject to the transitional
impairment evaluation requirements of SFAS 142. Daimler-
Chrysler’s proportionate share of its equity method investees’
(primarily EADS) transitional goodwill impairment charge was
€159 million (€0.16 per share). This transitional impairment
charge and the related per share amount are reported as the
cumulative effect of a change in accounting principles in the
Group’s consolidated statement of income (loss) for the year
ended December 31, 2002 (see Note 11).
DaimlerChrysler’s investor level goodwill in companies accounted
for using the equity method was €51 million at December 31,
2004 (2003: €559 million). Such goodwill is not subject to the
impairment tests required by SFAS 142. Instead, the total invest-
ment, including investor level goodwill, will continue to be evalu-
ated for impairment when conditions indicate that a decline in
fair value of the investment below the carrying amount is other
than temporary.
130
Notes to Consolidated Balance Sheets
(in millions of €)
160
969
425
62
200
1,816
177
898
670
62
196
2,003
2004 2003
Mercedes Car Group
Chrysler Group
Commercial Vehicles
Services
Other Activities
Total