Mercedes 2009 Annual Report Download - page 209

Consolidated Financial Statements |Notes to Consolidated Financial Statements |205
Leveraged leases. Leveraged leases which are included in the
above table also involve those leveraged lease arrangements
which are recorded net of non-recourse debt. Revenue is recog-
nized based on the effective interest method using the implicit
rate of return that considers the net cash flows underlying the
transactions.
In 2009, a number of assets under these leverage lease contracts
were sold. The sales were combined with a before maturity termi-
nation of the lease contracts (see Note 2). In addition, invest-
ments under selected leveraged lease contracts with a fair value
less costs to sell of €310 million were recorded under assets
held for sale (see Note 18).
The remaining investments in leveraged leases shown in the receiv-
ables of financial services consist of a sewage treatment plant
and railroad rolling stock; the contractual maturities range from
30 to 32 years. The carrying amount of leveraged leases as of
December 31, 2009 and December 31, 2008 was €169 million
and €1,304 million, respectively. Daimler recognized income
of €5 million (2008: €36 million; 2007: €38 million) relating to
these transactions, which is included in revenue.
Sale of receivables. Based on market conditions and liquidity
needs, Daimler may sell portfolios of retail and wholesale receiv-
ables to third parties (i.e. special purpose entities). At the time
of the sale, Daimler determines whether the legally transferred
receivables meet the criteria for derecognition in conformity
with the appropriate provisions. If the criteria are not met, the
receivables continue to be recognized in the Group’s consolidated
statement of financial position.
As of December 31, 2009, the carrying amount of receivables
from financial services sold but not derecognized for accounting
purposes amounted to €1,006 million (2008: €697 million). The
associated risks and rewards are similar to those with respect to
receivables from financial services that have not been transferred.
For information on the related total liabilities associated with these
receivables sold but not derecognized, see Note 23.
14. Other financial assets
The item “other financial assets” shown in the consolidated
statement of financial position is comprised of the following
classes:
Investments included in the table above, primarily debt securities,
with a carrying amount of €6,342 million in 2009 (2008: €1,091
million) form part of the Group’s liquidity management function.
At December 31, 2008
Total
Non-currentCurrent
At December 31, 2009
TotalNon-currentCurrent
7,426
1,084
6,342
1,074
1,218
1,759
11, 477
2,308
1,084
1,224
600
714
395
4,017
5,118
–
5,118
474
504
1,364
7,460
1,558
744
814
1,984
2,365
2,089
7,996
847
744
103
879
1,132
420
3,278
711
–
711
1,105
1,233
1,669
4,718
in millions of €
Available-for-sale financial assets
Thereof equity instruments
Thereof debt instruments
Derivative financial instruments used in hedge accounting
Financial assets at fair value through profit or loss
Other receivables and financial assets