Mercedes 2001 Annual Report Download - page 91

Notes to Consolidated Statements of Income (Loss) 87
Hourly employees
Salaried employees
Trainees/apprentices
244,938 270,814 279,124
122,094 165,117 170,539
12,512 13,663 13,898
379,544 449,594 463,561
1999
Year ended December 31,
20002001
Number of employees (annual average):
In 2001, 28 people (2000: 28 people; 1999:
14,851 people) were employed in joint venture compa-
nies.
In 2001, the total remuneration paid by Group
companies to the members of the Board of Manage-
ment of DaimlerChrysler AG amounted to €22.0 mil-
lion, and the remuneration paid to the members of the
Supervisory Board of DaimlerChrysler AG for services
in all capacities to the Group totaled €2.4 million. Dis-
bursements to former members of the Board of Man-
agement of DaimlerChrysler AG and their survivors
amounted to €14.7 million. An amount of €155.0 mil-
lion has been accrued for pension obligations to former
members of the Board of Management and their
survivors. As of December 31, 2001, no advances or
loans existed to members of the Board of Management
of DaimlerChrysler AG.
6. Other Income
Other income includes gains on sales of property, plant
and equipment (€104 million, €106 million and €132
million in 2001, 2000 and 1999, respectively) and
rental income, other than relating to financial services
leasing activities (€191 million, €178 million and €153
million in 2001, 2000 and 1999, respectively). In 2001,
gains on sales of companies of €465 million were rec-
ognized in other income.
7. Turnaround Plan for the Chrysler Group
The DaimlerChrysler Supervisory Board approved a
multi-year turnaround plan for the Chrysler Group in
February 2001. Key initiatives for the turnaround plan
over the period 2001 through 2003 include a workforce
reduction of 26,000 employees and an elimination of
excess capacity. The workforce reduction is being
achieved through retirements, special programs, attri-
tion and layoffs. The reduction affected represented
and non-represented hourly and salary employees. To
eliminate excess capacity, the Chrysler Group is idling,
closing or disposing of certain manufacturing plants,
eliminating shifts and reducing line speeds at certain
manufacturing facilities, and adjusting volumes at com-
ponent, stamping and powertrain facilities.
The net charges recorded for the plan in 2001
were €3,064 million (€1,934 million net of taxes) and
are presented as a separate line item on the accompa-
nying consolidated statement of income (loss) (€2,555
million and €509 million would have otherwise been
reflected in cost of sales and selling, administrative and
other expenses, respectively).
The initial charges of €3,047 million were
recorded in February 2001 with the approval of the
turnaround plan. Additional charges of €268 million
resulted from the subsequent impairment and disposal
costs associated with a component plant as well as
costs for a special early retirement program. The return
to income adjustments of €251 million include revi-
sions of estimates based upon information currently
available or actual settlements. These adjustments
reflect lower than anticipated costs associated with
workforce reduction initiatives, including the involun-
tary severance benefits, and favorable resolution of
supplier contract cancellation claims.
The pretax amounts for turnaround plan charges
consisted of the following:
Workforce
reductions
Reserve balance
at January 1, 2001
Initial charges
Additional charges
Adjustments
Net charges
Payments
Amount charged
against assets
Currency translation
adjustment
Reserve balance at
December 31, 2001
––––
1,403 836 808 3,047
93 148 27 268
(122) – (129) (251)
1,374 984 706 3,064
(211) – (154) (365)
(695) (984) (63) (1,742)
38 – 21 59
506 – 510 1,016
Total
Other
costs
Asset
write-
downs
(in millions of €)