Mercedes 2015 Annual Report Download - page 208

E | CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 215
Pensions and similar obligations
The calculation of provisions for pensions and similar
obligations and the related pension cost are based on various
actuarial valuations. The calculations are subject to various
assumptions on matters such as current actuarially developed
probabilities (e.g. discount factors and cost-of-living increases),
future fluctuations with regard to age and period of service, and
experience with the probability of occurrence of pension
payments, annuities or lump sums. As a result of changed
market or economic conditions, the probabilities on which
the influencing factors are based, may differ from current devel-
opments. The financial effects of deviations of the main
factors are calculated with the use of sensitivity analyses.
See Note 22 for further information.
Income taxes
The calculation of income taxes of Daimler AG and its subsid-
iaries is based on the legislation and regulations applicable
in the various countries. Due to their complexity, the tax items
presented in the financial statements are possibly subject
to different interpretation by taxpayers on the one hand and
local tax authorities on the other hand. For the calculation
of deferred tax assets, assumptions have to be made regarding
future taxable income and the time of realization of the
deferred tax assets. In this context, Daimler takes into consid-
eration, among other things, the projected earnings from
business operations, the effects on earnings of the reversal
of taxable temporary differences, and realizable tax strategies.
As future business developments are uncertain and are
sometimes beyond Daimler’s control, the assumptions to be
made in connection with accounting for deferred tax assets
are connected with a substantial degree of uncertainty. On each
balance sheet date, Daimler carries out impairment tests on
deferred tax assets on the basis of the planned taxable income
in future financial years; if Daimler assesses that the probability
of future tax advantages being partially or fully unrealized
is more than 50%, the deferred tax assets are impaired. Further
information is provided in Note 9.
3. Consolidated Group
Composition of the Group
Table  E.08 shows the composition of the Group.
The aggregate balance sheet totals of the subsidiaries, associ-
ated companies, joint ventures and joint operations accounted
for at amortized cost whose business is non-active or of low
volume and which are not material for the Group and the fair
presentation of its profitability, liquidity and capital resources
and financial position would amount to approximately 1% of the
Group’s balance sheet total; the aggregate revenues and
the aggregate net profit would amount to approximately 1%
of the Group’s revenue and net profit.
A detailed list of the companies included in the consolidated
financial statements and of the equity investments of
Daimler AG pursuant to Sections 285 und 313 of the German
Commercial Code (HGB) is provided in the statement
of investments. Further information is provided in Note 39.
Composition of the Group
2015
At December 31,
2014
Consolidated subsidiaries 329 327
Germany 59 60
International 270 267
Unconsolidated subsidiaries 82 80
Germany 29 33
International 53 47
Subsidiaries accounted for using
the equity method
–
5
Germany ––
International –5
Joint operations accounted for
using the equity method
3
3
Germany 11
International 22
Joint ventures accounted for using
the equity method
13
13
Germany 43
International 910
Associated companies accounted for using
the equity method
14
12
Germany 33
International 11 9
Joint operations, joint ventures and associated
companies accounted for at (amortized) cost
29
30
Germany 15 15
International 14 15
470 470
E.08