Mercedes 2009 Annual Report Download - page 251

Consolidated Financial Statements |Notes to Consolidated Financial Statements |247
Income and expenses resulting from transactions with Chrysler that
occurred before the redemption of the remaining 19.9% equity
interest in Chrysler Holding LLC (Chrysler Holding) on June 3, 2009
are included in the above table in the line “Associated companies.”
Therein included is a gain before income taxes of €0.1 billion in
connection with the legal transfer of Chrysler’s international
sales activities to Chrysler in the first quarter of 2009. In addition,
the Group has agreed to pay US $600 million in total to Chrysler’s
pension plans in connection with the redemption of the 19.9%
equity interest in Chrysler Holding (see Note 2); the respective
expenses resulting from this agreement are also included in
the above table. Due to the redemption of the equity interest in
Chrysler Holding, receivables and payables at December 31, 2009
did not have to be reported.
In November 2009, in connection with the realignment of the
Group’s Formula 1 activities, Daimler agreed with McLaren Group
Ltd. (McLaren), one of Daimler’s associated companies, to
change the form of cooperation. In two steps, McLaren will buy-back
the 40% equity interest in McLaren owned by the Daimler Group;
in November 2009, McLaren already took over a 28.6% interest
from Daimler. The remaining stake will be acquired by McLaren
at a fixed price by the end of 2011. As of December 31, 2009,
the carrying amount of the Group’s remaining investment in
McLaren amounted to €26 million. In the context of the transaction,
the Group has consented to compensate for its existing obliga-
tions, for example to support McLaren’s research and development
activities until the end of 2011, with a lump sum payment.
In addition, the Group committed to continue supplying McLaren
with Formula 1 engines. The agreement between Daimler and
McLaren Automotive Ltd., a wholly owned subsidiary of McLaren
Group Ltd., relating to the production of the Mercedes McLaren
SLR sports car was terminated at the end of 2009. As a result of
disposing of its equity interest, the Daimler Group no longer
has a significant influence on McLaren’s business operations.
For this reason, in November 2009, the Group ceased to
account for its equity interest in McLaren using the equity method
of accounting.
Income and expenses resulting from transactions with McLaren
that occurred before that date are included in the above table.
As a result of the agreement with McLaren, the Group recorded
expenses of €87 million in 2009 that were allocated to the
Mercedes-Benz Cars segment and are not reflected in the above
table.
In addition, major other goods and services supplied or received
by the Group relate to transactions with our associated company
Tognum AG (Tognum). The Group acquired its equity interest
in Tognum in 2008 (see Note 2).
At the end of 2009, based on contractual arrangements, the
Group agreed with Kamaz OAO, another associated company, to
establish two joint ventures. The purpose of the joint ventures is
the distribution and, with respect to some truck lines, the assem-
bly of Mercedes-Benz and Fuso trucks and the sale of Mercedes-
Benz and Setra buses in Russia.
The transactions with joint ventures predominantly comprise
the business relationship with Beijing Benz-DaimlerChrysler
Automotive Co., Ltd. (BBDC). BBDC assembles and distributes
Mercedes-Benz vehicles for the Group in China.
In 2008, Daimler recognized additional charges of €293 million
in connection with the transfer of the majority interest in Chrysler
and paid €186 million to BBDC. In 2009, Daimler paid €42 million
to BBDC. As of December 31, 2009, provisions in this regard
amount
ed to €174 million (see Note 2 for further information).
These recognized charges and provisions are included in the
table above under “Joint ventures.”
In addition, major other goods and services supplied by the
Group relate to transactions with the joint venture MTU Detroit
Diesel Australia Pty. Ltd. (MTU). MTU sells off- and on-highway
engines and transmissions for commercial vehicles.
Revenue resulting from these sales transactions is included in
the above table in the line “Joint ventures.”