Mercedes 2006 Annual Report Download - page 189

Finance leases. Finance leases consist of sales-type leases of
vehicles to the Group’s direct retail customers and direct-financ-
ing leases of vehicles to customers of the Group’s independent
dealers including leveraged leases of non-automotive assets to
third parties.
As of December 31, 2006, the carrying amount of finance lease
receivables was €12,465 million (2005: €11,827 million).
Retail and other receivables include investments in finance leas-
es involving minimum lease payments of €14,567 million and
€14,120 million, unearned income of €2,724 million and €2,831
million, initial direct costs of €55 million and €43 million and
estimated unguaranteed residual values of €806 million and €955
million at December 31, 2006 and 2005, respectively.
Contractual payments from finance lease receivables at Decem-
ber 31, 2006 are as follows:
Actual cash flows will differ from contractual maturities due to
prepayments and write-offs.
Leveraged leases. Investments in leveraged leases are included
in the line “other.” Leveraged leases are comprised of the follow-
ing:
As of December 31, 2006, an amount of €2,395 million (2005:
€2,775 million) of deferred income tax liabilities was related to
leveraged leases.
Sale of receivables. Based on market conditions and liquidity
needs, DaimlerChrysler may sell portfolios of retail and wholesale
receivables to third parties, which typically results in the dere-
cognition of the transferred receivables from the balance sheet.
Retained interests in securitized sold receivables are classified as
other assets in the Group’s Consolidated Balance Sheets. For
additional information on retained interests in sold receivables
and the sale of finance receivables, see Note 33.
18. Other Assets
As of December 31, 2006, €3,362 million of other assets mature
after more than one year (2005: €2,618 million).
Changes in the allowance for doubtful accounts related to receiv-
ables included in other assets were as follows:
thereafter20112010200920082007
3,932 2,681 2,054 1,280 698 3,922Maturities
(in millions of €)
At December 31,
2005
2006
3,929
426
(1,536)
2,819
4,586
588
(1,821)
3,353
Rentals receivable (net of principal and interest
on nonrecourse debt)
Unguaranteed residual values
Unearned income
(in millions of €)
At December 31,
2005
2006
611
305
2,706
2,192
5,682
11,496
(126)
11,370
696
324
2,215
1,474
4,190
8,899
(168)
8,731
Receivables from affiliated companies
Receivables from related companies 1
Retained interests in sold receivables
Tax refunds receivables
Other receivables and other assets
Allowance for doubtful accounts
1 Related companies include entities which have a significant ownership in DaimlerChrysler
companies or entities in which Group companies hold a significant investment.
(in millions of €)
Year ended December 31,
2004
20052006
168
(20)
(16)
(6)
126
261
(18)
(90)
15
168
888
61
(702)
14
261
Balance at beginning of year
Charges (releases) to costs
and expenses
Amounts written off
Currency translation and
other changes
Balance at end of year
(in millions of €)
Consolidated Financial Statements | Notes to the Consolidated Balance Sheets | 173