Mercedes 2015 Annual Report Download - page 227

234 E | CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Retained earnings
Retained earnings comprise the accumulated net profits and
losses of all companies included in Daimler’s consolidated
financial statements, less any profits distributed. In addition,
the effects of remeasuring defined benefit plans as well as
the related deferred taxes are presented within retained earnings.
Dividend
Under the German Stock Corporation Act (AktG), the dividend
is paid out of the distributable profit reported in the annual
financial statements of Daimler AG (parent company only)
in accordance with the German Commercial Code (HGB).
For the year ended December 31, 2015 , the Daimler manage-
ment will propose to the shareholders at the Annual Share-
holders’ Meeting to pay out €3,477 million of the distribut-
able profit of Daimler AG as a dividend to the shareholders,
equivalent to €3.25 per no-par-value share entitled to a dividend
(2014: €2,621 million and €2.45 per no-par-value share
entitled to a dividend respectively).
Other reserves
Other reserves comprise accumulated unrealized gains/losses
from currency translation of the financial statements of the
consolidated foreign companies and accumulated unrealized
gains/losses on the measurement of financial assets available-
for-sale, derivative financial instruments and equity-method
investments.
Table  E.02 shows the details of changes in other reserves
in other comprehensive income/loss.
In the line item unrealized gains/losses from equity-method
investments, the amounts for 2015 include unrealized losses
from currency translation of €3 million before taxes and after
taxes (amounts attributable to shareholders of Daimler AG
only). In 2014, the line item includes unrealized gains from
currency translation of €11 million before taxes and after taxes
(amounts attributable to shareholders of Daimler AG only).
21. Share-based payment
As of December 31, 2015, the Group has the 2012–2015
Performance Phantom Share Plans (PPSP) outstanding.
The PPSP are cash-settled share-based payment instruments
and are measured at their respective fair values at the balance
sheet date. The PPSP are paid out at the end of the stipulated
holding period; earlier, pro-rated payoff is possible in the case
of benefits leaving the Group only if certain defined conditions
are met. PPSP 2011 was paid out as planned in the first
quarter of 2015.
Moreover, 50% of the annual bonus of the members of
the Board of Management is paid out after a waiting period
of one year. The actual payout is determined by the devel-
opment of Daimler shares compared to an automobile related
index (Auto-STOXX). The fair value of this medium-term
annual bonus, which depends on this development, is mea-
sured by using the intrinsic value at the reporting date.
In 2014, rights from Stock Option Plan (SOP) 2004 also
existed. The exercisable stock options granted in 2004 were
equity-settled share-based payment instruments and were
measured at fair value at the date of grant. The unexercised
rights from Stock Option Plan 2004 expired on March 31, 2014.
Options granted to the Board of Management in 2004 for which
– according to the recommendations of the German Corporate
Governance Code – the Presidential Committee can impose
a limit or reserve the right to impose a limit in the event of excep-
tional and unpredictable developments were measured at
their intrinsic values as of balance sheet date. The options
were exercised completely in 2013.
The pre-tax effects of share-based payment arrangements
for the executive managers of the Group and the members
of the Board of Management of Daimler AG on the consolidated
statement of income and consolidated statement of financial
position are shown in table  E.45.
Table  E.46 shows expenses in the consolidated
statement of income resulting from the rights of current
members of the Board of Management.
The details shown in table  E.46 do not represent any paid or
committed remuneration, but refer to expenses calculated
according to IFRS. Details of the remuneration of the members
of the Board of Management in 2015 can be found in the
Remuneration Report. E Management Report from page 122
Effects of share-based payment
Provision
Expense At December 31,
2015 2014 2015 2014
In millions of euros
PPSP -177 -173 409 363
Medium-term component
of annual bonus of the
members of the Board of
Management
-9
-6
15
12
-186 -179 424 375
E.45