Mercedes 2001 Annual Report Download - page 88

84 Notes to Consolidated Financial Statements
The following tables present summarized
U.S. GAAP financial information for EADS and MMC
(amounts shown on a 100% basis in millions of €)
which are the basis for applying the equity method in
the Group’s consolidated financial statements:
Revenues
Net income (loss)
Income statement information:
For
the period
from
acquisition
to Decem-
ber 31,
27,004
2,598
2001
10,578
(482)
2000
Twelve months
ended
December
31,
EADS
Fixed assets
Non-fixed assets
Total assets
Stockholders’ equity
Minority interests
Accrued liabilities
Other liabilities
Total liabilities and stockholders’
equity
Revenues
Net loss
Income statement information:
For
the period
from
acquisition
to Decem-
ber 31,
30,057
(1,209)
2001
7,754
(124)
2000
Twelve months
ended
December
31,
MMC
Balance sheet information:
11 , 974
12,697
24,671
1,528
(61)
5,800
17,404
24,671
2001
12,802
16,452
29,254
2,840
21
5,626
20,767
29,254
2000
At December 31,
Fixed assets
Non-fixed assets
Total assets
Stockholders’ equity
Minority interests
Accrued liabilities
Other liabilities
Total liabilities and stockholders’
equity
Balance sheet information:
26,505
22,119
48,624
11,409
598
11,14 9
25,468
48,624
2001
20,563
21,592
42,155
9,262
328
10,450
22,115
42,155
2000
At December 31,
4. Acquisitions and Dispositions
On October 18, 2000, DaimlerChrysler acquired a 34%
equity interest in MMC for approximately €2,200 mil-
lion. At the closing date of the transaction, the Group
also purchased MMC bonds with an aggregate face
value of JPY19,200 million and a stated interest rate of
1.7% for €206 million, which are convertible into
shares of MMC stock. The bonds are only convertible
by DaimlerChrysler in the event that its ownership per-
centage would be diluted below 34% upon conversion
of previously issued convertible bonds. To the extent
not converted, the bonds and accrued interest are due
on April 30, 2003. In June 2001, Volvo AB sold its 3.3%
interest in MMC, plus its operational contracts with
MMC, to DaimlerChrysler for $297 million (€343 mil-
lion) increasing DaimlerChrysler’s interest in MMC to
37.3%.
In August 2000, DaimlerChrysler signed a sale
and purchase agreement with the Canadian company
Bombardier Inc. for the sale of DaimlerChrysler Rail
Systems GmbH (“Adtranz”). With the closing of the
transaction on April 30, 2001, control over the opera-
tions of Adtranz was transferred to Bombardier on May
1, 2001. Accordingly, the operating results of Adtranz
are included in the consolidated financial statements of
DaimlerChrysler through April 30, 2001. The sales
price of $725 million was received during 2001. Bom-
bardier has asserted claims for sales price adjustments
under the terms of the sale and purchase agreement as
well as claims for alleged breaches of contract and
misrepresentation, and seeks total damages of approxi-
mately €1 billion. The sale and purchase agreement
limits the amount of such price adjustments to €150
million, and to the extent legally permissible, the
amount of other claims to an additional €150 million.
The Group intends to defend itself vigorously against
such claims. The agreement calls for submission of
disputes to arbitration and Bombardier has notified
DaimlerChrysler that it intends to do this with respect
to its claims. Due to uncertainties with respect to the
ultimate outcome of these claims, the Group has recog-
nized a partial after-tax gain of €237 million on the
sale of Adtranz, representing the maximum possible
adjustment to the sales price and the aforementioned
maximum amount with respect to any further claims
in accordance with the sale and purchase agreement.