Mercedes 1998 Annual Report Download - page 104

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Balance at January 1, 1996 832 226 1,058
Utilizations and transfers (284) (26) (310)
Reductions (194) (17) (211)
Additions 216 180 396
Balance at December 31, 1996 570 363 933
Utilizations and transfers (269) (187) (456)
Reductions (45) (37) (82)
Additions 299 34 333
Balance at December 31, 1997 555 173 728
Utilizations and transfers (242) (110) (352)
Reductions (12) (19) (31)
Additions 259 31 290
Balance at December 31, 1998 560 75 635
Accrued warranty costs and price risks 6,386 6,363
Accrued losses on uncompleted contracts 762 646
Restructuring 635 728
Accrued personnel and social costs 2,263 2,035
Other 6,843 7,188
16,889 16,960
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
100
b) Other accrued liabilities
Other accrued liabilities consisted of the following:
19971998
At December 31,
Accruals for restructuring comprise certain employee
termination benefits and costs which are directly associated
with plans to exit specified activities. The changes in these
provisions are summarized as follows:
Termination Exit Total
benefits costs liabilities
In connection with the Group’s restructuring, provisions were
recorded for termination benefits of € 259 (1997: € 299; 1996:
€ 216), in 1998 principally within the Automotive Business of
the former Daimler-Benz Group and DaimlerChrysler
Aerospace, in 1997 principally within the Automotive Business
of the former Daimler-Benz Group and 1996 principally within
the Automotive Business of the former Daimler-Benz Group,
AEG-DBI and DaimlerChrysler Aerospace. In connection with
these restructuring efforts, the Group effected workforce
reductions of approximately 7,100 employees (1997: 6,600;
1996: 11,800) and paid termination benefits of € 413 (1997:
€ 503; 1996: € 381), of which € 242 (1997: € 269; 1996: € 284)
were charged against previously established liabilities. At
December 31, 1998 the Group had liabilities for estimated
future terminations for approximately 9,500 employees.
During 1996, the aerospace industry experienced a significant
increase in demand. As a consequence, higher production
requirements resulted, especially for DaimlerChrysler
Aerospace Airbus GmbH, in a reduction of approximately € 153
in certain restructuring provision made in 1995.
Exit costs in 1998 and 1997 primarily result from the
restructuring of directly managed businesses. In 1996 they
relate exclusively to the restructuring of businesses of the
former AEG-DBI.