Mercedes 1999 Annual Report Download - page 106

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NOTES TO THE CONSOLIDATED BALANCE SHEETS
Balance at January 1, 1997
Utilizations and transfers
Reductions
Additions
Balance at December 31, 1997
Utilizations and transfers
Reductions
Additions
Balance at December 31, 1998
Utilizations and transfers
Reductions
Additions
Balance at December 31, 1999
570 363 933
(269) (187) (456)
(45) (37) (82)
299 34 333
555 173 728
(242) (110) (352)
(12) (19) (31)
259 31 290
560 75 635
(321) 21 (300)
(15) (9) (24)
183 101 284
407 188 595
Termination
benefits
Exit
costs
Total
liabilities
23. FINANCIAL LIABILITIES
1998
At December 31,
Notes/Bonds
Commercial paper
Liabilities to financial institutions
Liabilities to affiliated companies
Loans, other financial liabilities
Liabilities from capital lease and
residual value guarantees
Short-term financial liabilities
(due within one year)
Notes/Bonds
of which due in more than five years:
€5,781 (1998: €2,605)
Liabilities to financial institutions
of which due in more than five years:
€2,455 (1998: €2,185)
Liabilities to affiliated companies
of which due in more than five years:
€– (1998: €28)
Loans, other financial liabilities
of which due in more than five years:
€53 (1998: €36)
Liabilities from capital lease and
residual value guarantees
of which due in more than five years:
€258 (1998: €228)
Long-term financial liabilities
1999
7,892 3,207
20,879 11,015
5,941 4,999
466 158
257 319
1,286 777
36,721 20,475
2001– 21,440 14,576
2097
2001– 5,398 4,311
2019
145 171
192 64
592 833
27,767 19,955
64,488 40,430
Prepaid Employee Benefits
In 1996 DaimlerChrysler established a Voluntary Employees’ Ben-
eficiary Association (“VEBA”) trust for payment of non-pension em-
ployee benefits. At December 31, 1999 and 1998, the VEBA had a
balance of €3,231 and €1,979, respectively, of which €2,698 and
€1,498, respectively, were designated and restricted for the pay-
ment of postretirement health care benefits. Contributions to the
VEBA trust during the years ended December 31, 1999, 1998 and
1997 were €727, €292 and €975, respectively.
b) Other accrued liabilities
Other accrued liabilities consisted of the following:
1998
At December 31,
Accrued warranty costs and price risks
Accrued losses on uncompleted contracts
Restructuring
Accrued personnel and social costs
Other
7,505 6,386
993 762
595 635
3,409 2,263
8,864 6,843
21,366 16,889
1999
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 summa-
rized as follows:
In connection with the Group’s restructuring, provisions were re-
corded for termination benefits of €183 (1998: €259; 1997: €299),
in 1999 principally within directly managed businesses and
DaimlerChrysler Aerospace, in 1998 principally within the Auto-
motive Business of the former Daimler-Benz Group and
DaimlerChrysler Aerospace and in 1997 principally within the Au-
tomotive Business of the former Daimler-Benz Group. In connec-
tion with these restructuring efforts, the Group effected workforce
reductions of approximately 2,400 employees (1998: 7,100; 1997:
6,600) and paid termination benefits of €239 (1998: €413; 1997:
€503), of which €168 (1998: €242; 1997: €269) were charged
against previously established liabilities. At December 31, 1999 the
Group had liabilities for estimated future terminations for approxi-
mately 7,400 employees.
Exit costs in 1999, 1998 and 1997 primarily result from the re-
structuring of directly managed businesses.
100
Maturities