Mercedes 2008 Annual Report Download - page 163

Consolidated Financial Statements |Notes to Consolidated Financial Statements |159
Net profit (loss) from discontinued operations is comprised as
follows:
Included in net loss from discontinued operations for 2007
are charges of €906 million before income taxes in connection
with Chrysler’s Recovery and Transformation Plan, which was
announced on February 14, 2007.
An extinguishment loss of €0.5 billion (net of tax €0.3 billion)
resulting from the early redemption of long-term debt of Chrysler
is included in net profit (loss) from discontinued operations in
2007.
The cash flows attributable to discontinued operations are as
follows:
For further information on Chrysler see also Note 12.
Potsdamer Platz. On December 13, 2007, the Supervisory Board
of Daimler AG approved the sale of real-estate properties at
Potsdamer Platz to the SEB Group. The transaction, which closed
on February 1, 2008, resulted in a cash inflow of €1.4 billion
(including €0.1 billion in 2007). The transaction had a positive
effect on the 2008 EBIT of Vans, Buses, Other of €449 million
(see also Note 18).
At the same time, the Group entered into leases for approxi-
mately half of the sold office space with a non-cancelable lease
period ending December 31, 2012. At the end of the non-
cancelable lease terms, there are two renewal options for five
years each.
MFTBC. In 2007, Mitsubishi Fuso Truck and Bus Corporation
(MFTBC) sold a number of real estate properties to Nippon Indus-
trial TMK for approximately €1 billion in cash. At the same time,
MFTBC entered into a leaseback arrangement for each of the
properties sold with non-cancelable lease periods of fifteen
years. At the end of the non-cancelable lease terms, there are
renewal options for up to fifteen years. As a result of this
transaction, MFTBC derecognized assets with a carrying amount
of €865 million. After considering the costs of the transaction,
Daimler recorded a gain of €78 million before income taxes on
assets sold and leased back under the terms of an operating
lease. In addition, the Group recorded assets sold and leased
back under the terms of finance leases with a corresponding
amount of debt of €110 million and deferred the recognition of
the excess of the purchase price over the carrying amount of
the assets sold of €46 million which will be recognized over
the lease term. The gain recorded is included in other operating
income (expense), net, in the 2007 consolidated statement
of income and was allocated to the Daimler Trucks segment.
Other sales of real estate property. In 2007, Daimler AG sold
its 50% equity interest in Wohnstätten Sindelfingen GmbH for
a sales price of €82 million. The sale resulted in a gain of €73
million before income taxes which was allocated to Vans, Buses,
Other. The gain is included in other financial income (expense),
net, in the 2007 consolidated statement of income.
2006
20072008
in millions of €
–
–
–
–
–
–
–
–
–
(383)
93
(290)
(290)
30,037
(26,410)
(1,579)
(1,172)
(647)
(714)
(485)
368
(117)
(658)
(95)
(753)
(870)
54,856
(48,624)
(2,583)
(1,901)
(1,210)
(354)
184
433
617
–
–
–
617
Revenue
Cost of sales
Selling expenses
General administrative expenses
Research and non-capitalized
development costs
Other income and other expenses
Profit (loss) before income taxes
Income taxes
Profit (loss) of Chrysler activities,
net of taxes1
Loss from deconsolidation
before income taxes
Income taxes
Loss from deconsolidation,
net of taxes
Net profit (loss) from discontinued
operations
1 In 2007, income and expenses of the Chrysler activities relate to the period from January 1 to
August 3, 2007.
20062007
in millions of €
3,064
(2,875)
(2,655)
6,083
(7,245)
(1,488)
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities