Mercedes 2004 Annual Report Download - page 166

Revenues are allocated to countries based on the location of the
customer. Long-lived assets are disclosed according to the physi-
cal location of these assets.
Capital expenditures represent the purchase of property, plant
and equipment.
Segment information as of and for the years ended December 31,
2004, 2003 and 2002 follows:
Mercedes Car Group. In 2003, operating profit of the Mercedes
Car Group includes a non-cash impairment charge amounting to
€77 million related to certain long-lived assets (primarily proper-
ty, plant and equipment) at a production facility in Brazil.
Chrysler Group. In 2004, 2003, and 2002, the Chrysler Group
recorded charges of €145 million, €469 million and €694 million,
respectively, for the Chrysler Group turnaround plan (see Note 7).
Additionally, the Chrysler Group recorded €138 million for early
retirement incentives and other workforce reductions in 2004.
Chrysler Group operating results for 2004 were favourably
impacted by an adjustment of €95 million to correct the calcula-
tion of an advertising accrual to more accurately reflect expected
payments.
In 2003, the Chrysler Group and Services segments agreed to an
arrangement regarding the sharing of risks associated with the
residual values of certain leased vehicles. In addition, the
Chrysler Group and Services segments negotiated reduced pricing
on certain retail financing programs offered by the Chrysler
Group as sales incentives in 2003. The adjusted pricing reflects
the current favorable funding environment as well as Services
becoming the exclusive provider of selected discount consumer
financing for the Chrysler Group. Both arrangements resulted
in a favorable impact of €244 million on the 2003 operating profit
of the Chrysler Group, and a corresponding decrease of €244
million on the 2003 operating profit of Services. Neither arrange-
ment had any effect on the Group's consolidated operating
results.
162
Consolidated
(in millions of €)
Discontinued
Operations/
Eliminations
Total
Segments
Other
ActivitiesServices
Commercial
Vehicles
Chrysler
Group
Mercedes
Car Group
49,485
13
49,498
1,427
45,869
2,647
3,368
49,321
–
49,321
(506)
47,147
2,487
3,927
59,716
465
60,181
609
52,807
3,155
4,276
32,940
1,824
34,764
1,332
20,100
1,184
1,058
25,304
1,502
26,806
811
14,657
958
890
25,370
1,396
26,766
(392)
13,839
1,186
1,159
11,646
2,293
13,939
1,250
88,036
91
4,976
11,997
2,040
14,037
1,240
83,239
76
5,087
13,765
1,934
15,699
3,060
87,833
95
6,804
1,906
294
2,200
456
26,444
134
164
3,723
361
4,084
1,329
31,139
169
196
3,936
422
4,358
952
35,400
214
208
142,059
7,972
150,031
6,131
207,356
6,399
11,420
138,370
7,324
145,694
6,000
200,343
6,629
11,889
149,583
7,591
157,174
7,249
211,982
7,145
14,099
_
(7,972)
(7,972)
(377)
(24,660)
(13)
(308)
(1,933)
(7,324)
(9,257)
(314)
(22,075)
(15)
(290)
(2,215)
(7,591)
(9,806)
(395)
(24,655)
–
(255)
142,059
–
142,059
5,754
182,696
6,386
11 ,112
136,437
–
136,437
5,686
178,268
6,614
11,599
147,368
–
147,368
6,854
187,327
7,145
13,844
2004
Revenues
Intersegment sales
Total revenues
Operating Profit
Identifiable segment assets
Capital expenditures
Depreciation and amortization
2003
Revenues
Intersegment sales
Total revenues
Operating Profit (Loss)
Identifiable segment assets
Capital expenditures
Depreciation and amortization
2002
Revenues
Intersegment sales
Total revenues
Operating Profit (Loss)
Identifiable segment assets
Capital expenditures
Depreciation and amortization
46,082
3,548
49,630
1,666
26,907
2,343
1,854
48,025
3,421
51,446
3,126
24,161
2,939
1,789
46,796
3,374
50,170
3,020
22,103
2,495
1,652