Mercedes 2001 Annual Report Download - page 104

100 Notes to Consolidated Balance Sheets
Compensation expense of €19 million was recog-
nized in 2001 in connection with the stock option
plans (2000: expense of €13 million). No compensa-
tion expense was recognized in 1999.
Miscellaneous
DaimlerChrysler applies APB Opinion 25, “Ac-
counting for Stock Issued to Employees,” and related
interpretations in accounting for its stock-based com-
pensation plans. If compensation expense had been
based upon the fair value at the grant date, consistent
with the methodology prescribed under SFAS 123, “Ac-
counting for Stock Based Compensation,” the Group’s
net loss and basic and diluted loss per share in 2001
would have increased by approximately €72 million
(basic loss per share: €0.07; diluted earnings loss per
share: €0.07). In 2000, the Group’s net income and
basic and diluted earnings per share would have been
reduced by approximately €12 million (basic earnings
per share: €0.01; diluted earnings per share: €0.01).
No additional compensation expense would have been
recorded for the year ended December 31,1999 under
SFAS 123.
The fair value of the DaimlerChrysler stock op-
tions issued in 2001 and 2000 was calculated at the
grant date based on a trinomial tree option pricing
model which considers the terms of the issuance. The
underlying assumptions and the resulting fair value
per option are as follows (at grant dates):
2000
Expected dividend yield
Expected volatility
Risk-free interest rate
Expected lives (in years)
Fair value per option
4.6 % 3.8 %
33.0 % 25.0 %
4.2 % 4.8 %
33
€12.15 €9.50
2001
23. Accrued Liabilities
Accrued liabilities are comprised of the following:
a) Pension Plans and Similar Obligations
Pension plans and similar obligations are comprised of
the following components:
At December 31,
2001
Total
12,647 11,650 11,151 10,200
2,393 651 2,192 474
26,530 10,104 23,098 7,901
41,570 22,405 36,441 18,575
Total
Due after
one year
Due after
one year
2000
Pension plans and
similar obligations
(see Note 23a)
Income and other
taxes
Other accrued
liabilities
(see Note 23b)
2000
At December 31,
Pension liabilities (pension plans)
Accrued postretirement health and
life insurance benefits
Other benefit liabilities
2,612 1,838
9,442 8,636
593 677
12,647 11,151
2001
As described in Note 5 and Note 7,
DaimlerChrysler implemented in 2001 restructuring
plans at Freightliner and Chrysler Group, including
certain workforce reduction initiatives. The impacts
from settlements and curtailments of these turnaround
plans on the pension and postretirement obligations
are contained in the following disclosures.
Pension Plans
The Group provides pension benefits to substantially all
of its hourly and salaried employees. Plan benefits are
principally based upon years of service. Certain pen-
sion plans are based on salary earned in the last year
or last five years of employment while others are fixed
plans depending on ranking (both wage level and
position).
At December 31, 2001, plan assets were invested
in diversified portfolios that consisted primarily of debt
and equity securities, including 2.0 million shares of
DaimlerChrysler Ordinary Shares with a market value
of €93 million in a U.S. plan. Assets and income accru-
ing on all pension trust and relief funds are used solely
to pay pension benefits and administer the plans.
(in millions of €)
(in millions of €)