Mercedes 2015 Annual Report Download - page 243

250 E | CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The Group has additional other financial obligations resulting
from non-cancelable long-term rental agreements and operating
leases for property, plant and equipment; the contracts
partially include renewal or repurchase options and escalation
clauses. In 2015, Daimler recognized as expense rental
payments of €491 million (2014: €517 million). Table  E .67
provides an overview of when future minimum lease payments
under non-cancelable long-term rental and lease agreements
fall due (nominal amounts).
In addition, the Group had issued irrevocable loan commitments
as of December 31, 2015. These loan commitments had
not been utilized as of that date. An overview of the maturities
of irrevocable credit commitments is shown in Table  E.82
in Note 32.
Miscellaneous other financial commitments primarily comprise
financial obligations to make payments in connection with
capital contributions to be made into the share capital of uncon-
solidated subsidiaries or associated companies as well as
obligations in connection with cooperation agreements. In prior
year, commitments from purchasing contracts of €1.2 billion
were disclosed under other miscellaneous financial commitments.
31. Financial instruments
Carrying amounts and fair values of financial instruments
Table  E.68 shows the carrying amounts and fair values
of the respective classes of the Group’s financial instruments.
The fair value of a financial instrument is the price at which
a party would accept the rights and/or obligations of that finan-
cial instrument from another independent party. Given the
varying influencing factors, the reported fair values can only
be viewed as indicators of the prices that may actually
be achieved on the market.
The fair values of financial instruments were calculated on
the basis of market information available on the balance sheet
date. The following methods and premises were used:
Receivables from financial services
The fair values of receivables from financial services with
variable interest rates are estimated to be equal to the respective
carrying amounts because the interest rates agreed and those
available in the market do not significantly differ. The fair values
of receivables from financial services with fixed interest
rates are determined on the basis of discounted expected
future cash flows.
The discounting is based on the current interest rates at
which similar loans with identical terms could have been
obtained as of December 31, 2015 and December 31, 2014.
Trade receivables and cash and cash equivalents
Due to the short terms of these financial instruments
and the fundamentally lower credit risk, it is assumed that
their fair values are equal to the carrying amounts.
Marketable debt securities and other financial assets
Financial assets available-for-sale include:
– debt and equity instruments measured at fair value; these
instruments were measured using quoted market prices
at December 31. Otherwise, the fair value measurement of
these debt and equity instruments is based on inputs that
are either directly or indirectly observable on active markets.
Equity instruments measured at fair value predominantly
comprise the investments in Nissan Motor Co., Ltd. (Nissan)
and Renault SA (Renault).
– equity interests measured at cost; fair values could not be
determined for these financial instruments because no
stock exchange or market prices are available. These equity
interests comprise investments in non-listed companies
for which no objective evidence existed at the balance sheet
date that these assets were impaired and whose fair values
cannot be determined with sufficient reliability. It is assumed
that the fair values approximate the carrying amounts.
E.67
Future minimum lease payments under long-term rental
and lease agreements (nominal amounts)
At December 31,
2015 2014
In millions of euros
Maturity
within one year 505 416
between one and five years 1,111 1,112
later than five years 540 629
2,156 2,157