Mercedes 2009 Annual Report Download - page 196

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3. Revenue
Revenue at Group level consists of the following:
Revenue by segment and region is presented in Note 31.
4. Functional costs
Cost of sales. Cost of sales includes the following items:
In addition, in 2007, costs of goods sold of the Chrysler activities
(until August, 3) of €22,267 million were included in net profit
(loss) from discontinued operations.
Selling expenses. In 2009, selling expenses amounted to
€7,608 million (2008: €9,204 million; 2007: €8,956 million).
Selling expenses include direct selling costs as well as selling
overhead expenses and consist of personnel costs, material
costs and other selling costs.
General administrative expenses. General administrative
expenses amounted to €3,287 million in 2009 (2008: €4,124 mil-
lion; 2007: €4,023 million) and comprise expenses which were
not attributable to production, sales, research and development
functions, including personnel expenses, depreciation and amor-
tization on fixed and intangible assets, and other administrative
costs.
Research and non-capitalized development costs. Research
and non-capitalized development costs were €2,896 million in
2009 (2008: €3,055 million; 2007: €3,158) and primarily com-
prise personnel expenses and material costs.
Amortization expense of capitalized development costs amount-
ed to €647 million in 2009 (2008: €638 million; 2007: €623 mil-
lion) and are recognized in cost of sales.
Optimization programs. Measures and programs with imple-
mentation costs that materially impacted EBIT are briefly described
below:
Mitsubishi Fuso Truck and Bus Corporation (MFTBC). In May 2009,
the Board of Management of Daimler AG decided on a major
realignment of the operations of its subsidiary MFTBC. Measures
provided for in the plan include the streamlining of the product
portfolio, the realignment of manufacturing sites, the streamlining
of the retail network in Japan, and other efficiency improvements.
In connection with these measures, the Group anticipates, among
other things, the relocation and idling of selected production
sites, headcount reductions of up to 2,300 employees by the end
of 2010, and a reduction of the dealer network. As a result of
this plan, the Group recorded charges of €245 million in 2009.
The charges primarily relate to headcount reduction measures
(€120 million) and to accelerated depreciation as a result of the
reduction of useful lives (€49 million). The premature termination
of utilization of leased assets led to charges of €25 million.
Costs associated with this plan are included in the following line
items within the consolidated statement of income (loss):
The measures initiated resulted in cash outflows in 2009 of €31
million.
For the measures initiated, the Group recorded provisions of
€156 million as of December 31, 2009, which are included in
provisions for other risks and are expected to lead to payments
in 2010.
2007
20082009
in millions of €
66,772
8,886
2,885
381
78,924
85,787
9,300
3,009
373
98,469
89,976
8,498
2,715
380
101,569
Sales of goods
Rental and leasing business
Interest from the financial services
business
Sales of services
200720082009
in millions of €
54,276
3,450
2,211
853
4,777
65,567
66,122
3,553
2,147
730
4,358
76,910
66,313
3,280
2,055
487
5,439
77,574
Cost of goods sold
Depreciation of equipment on
operating leases
Refinancing costs
Daimler Financial Services
Impairment losses on receivables
from financial services
Other cost of sales 2009
in millions of €
61
136
35
13
245
Cost of sales
Selling expenses
General administrative expenses
Research and non-capitalized development costs