Mercedes 2006 Annual Report Download - page 222

206
Chrysler Group. In 2006, the financial support provided
to supplier Collins & Aikman resulted in charges of €66 million
(2005: €99 million) (see Note 31.)
In 2005, the Chrysler Group recorded a €240 million gain on the
sale of its Arizona Proving Grounds vehicle testing facility.
In 2004, the Chrysler Group’s operating results were negatively
impacted by a €145 million charge related to a multiyear turn-
around plan initiated in 2000, a €138 million charge for early
retirement incentives and other workforce reductions, partially
offset by an adjustment of €95 million to correct the calculation
of an advertising accrual to more accurately reflect expected
payments.
Truck Group. In 2006, the Truck Group recorded a gain of
€55 million from the application of EITF 05-5, which led to an
adjustment of the provision for early retirement obligations
(see also Note 5).
Subsequent to the acquisition of the controlling interest in MFTBC,
a number of quality problems of MFTBC vehicles that were
produced before DaimlerChrysler first acquired a stake in MFTBC
were identified (see Note 4 for additional information). As of
December 31, 2004, DaimlerChrysler made a true-up based on
the preliminary evaluation of the probable costs associated
with the quality measures and recall campaigns at MFTBC. Total
expenses arising from the recall issues reduced 2004 operating
profit of the Truck Group segment by €475 million. The reduction in
operating profit consisted of €70 million classified as financial
income (expense), net, in the Group’s 2004 statement of operations
and €735 million classified as cost of sales, net of €330 million
attributed to the minority interests’ share in those costs. As
expenses attributed to minority interests are not allocated to
operating profit, they are included in the line “miscellaneous items,
net” in the reconciliation of total segment operating profit to
consolidated income before income taxes, minority interests, and
cumulative effects of changes in accounting principles. The
following settlement with MMC associated with the quality issues
and recall campaigns at MFTBC resulted in a favorable impact
of €276 million, which is included in the operating profit of the
Truck Group segment in 2005.
Financial Services. In 2005 and 2004, the Financial Services
segment recorded charges of €54 million and €472 million
related to its participation in Toll Collect. The charges in 2004
were mainly the result of revaluing the system's total costs
and extra operating expenses required to guarantee the start of
the system on January 1, 2005.
In 2004, the operating profit of the Financial Services
segment includes non-cash impairment charges of €102 million
associated with the investment made in dAF.
Van, Bus, Other. In 2006 and 2005, operating profit of Van, Bus,
Other includes the Group’s share in the operating profit of
EADS of €649 million and €757 million, respectively (see Note 3.)
In 2004, the proportionate results of the investments in EADS
and MMC together amounted to €548 million. This amount also
includes the results from the dilution of the Group’s interest in
MMC (loss of €135 million) and related currency hedging effects
(gain of €195 million). In 2004, the Group's share in the
losses of MMC is only included in this segment until June 29,
2004 (see Note 3 for additional information).
In 2006, the operating profit of Van, Bus, Other includes gains
on the sale of real estate investments of €133 million.
Furthermore the operating profit of the Group was positively
impacted by €261 million by the disposed of Off-Highway
business in 2006, of which €248 million was attributable to
Van, Bus, Other (see Note 4).
As a result of the repurchase of a note by MTU Aero Engines
Holding AG, a gain of €53 million is included in the operating
profit of Van, Bus, Other for 2005 (see Note 6).