Mercedes 2009 Annual Report Download - page 197

Consolidated Financial Statements |Notes to Consolidated Financial Statements |193
Daimler Trucks North America (DTNA). In response to continuing
depressed demand across the industry and structural changes in
the company’s core markets, the Group adopted a wide-ranging
plan in October 2008 to optimize and reposition the business oper-
ations of its subsidiary Daimler Trucks North America (DTNA).
Measures provided for in the plan include the discontinuation of
the Sterling Trucks brand in 2009, further consolidation of the
production network in the NAFTA region, capacity adjustments,
including the closing of two manufacturing plants in 2009 and
2010. In addition, the plan includes headcount reductions of up
to 3,500 employees, which were primarily accomplished in 2009.
Based on new information available, the Group decided in 2009
not to proceed with the closing of one truck manufacturing plant,
which was originally scheduled for 2010. Relating to this plan, the
Group recorded charges of €95 million in 2009 (2008: €233 mil-
lion). Costs associated with headcount reduction measures result-
ed in further charges of €11 million (2008: €106 million). Addi-
tional charges of €15 million (2008: €81 million) were recorded in
connection with the termination of agreements with dealers of
the Sterling Trucks. Accelerated depreciation of assets as a result
of the reduction of useful lives led to charges of €37 million
(2008: €20 million) and supplier compensations resulted in further
charges of €3 million (2008: €14 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 €151
million (2008: €5 million).
For the measures initiated, the Group recorded provisions of €34
million as of December 31, 2009 (2008: €180 million), which are
included in provisions for other risks and are expected to lead to
payments primarily in 2010.
New management model. In January 2006, Daimler announced
the new management model, the primary objective of which was
to install integrated processes and eliminate redundancies
through the global integration of certain administrative functions.
All charges incurred under the new management model, as far
as these charges were not part of discontinued operations, were
corporate-level costs, which were not allocated to the segments
but are included in the Group’s corporate items in the reconcilia-
tion from total segments’ EBIT to Group EBIT.
In connection with the new management model, charges for
employee severance of €58 million and €167 million were record-
ed in 2008 and 2007. These charges are included in the Group’s
consolidated statement of income (loss) primarily within general
administrative expenses. In 2007, expenses of €16 million are
included in “net profit (loss) from discontinued operations.”
Personnel expenses and number of employees. Personnel
expenses included in the consolidated statement of income (loss)
as well as the average number of people employed are as follows:
Information on the remuneration of the current and former
members of the Board of Management and the current members
of the Supervisory Board is included in Note 35.
2008
in millions of €
44
88
101
–
–
233
11
23
56
1
4
95
Cost of sales
Selling expenses
General administrative expenses
Research and non-capitalized development costs
Other operating expense
15,066
274,330
13,414
16,174
271,704
12,672
2009
in millions of € and number of people employed
14,073
258,628
12,911
Personnel expenses1
People employed2
thereof trainees/apprentices
1 Figures for 2007 do not include the personnel expenses of the de-consolidated Chrysler activities
(€4,082 million through August 3, 2007).
2 Figures for 2007 do not include the workforce of the de-consolidated Chrysler activities
(85,296 employees).
20072008
2009