Mercedes 2001 Annual Report Download - page 92

88 Notes to Consolidated Statements of Income (Loss)
Workforce reduction charges relate to early retire-
ment incentive programs (€725 million) and involun-
tary severance benefits (€649 million). The voluntary
early retirement programs, accepted by 9,261 employ-
ees as of December 31, 2001, are formula driven based
on salary levels, age and past service. In addition,
7,174 employees were involuntarily affected by the
plan. The amount of involuntary severance benefits
paid and charged against the liability in 2001 was
€131 million.
As a result of the planned idling, closing or dis-
posal of manufacturing facilities, the carrying values of
the assets held for use at these plants were determined
to be impaired as the identifiable, undiscounted future
cash flows from the operation of such assets were less
than their respective carrying values. In accordance
with the provisions of SFAS 121, the Chrysler Group
recorded an impairment charge of €984 million. The
impairment charge represents the amount by which
the carrying values of the property, plant, equipment
and tooling exceeded their respective fair market
values as determined by third party appraisals or
comparative market analyses developed by the
Chrysler Group.
Other costs primarily include supplier contract
cancellation costs.
Other key initiatives of the plan include additional
cost reduction and revenue enhancing measures. Spe-
cifically, in an effort to reduce costs, suppliers are be-
ing requested to voluntarily reduce the prices charged
for materials and services over the period January 1,
2001 through 2002. Under the revenue enhancement
measures of the turnaround plan, certain dealer pro-
grams were replaced with a new performance-based
incentive program under which dealers may earn cash
payments based on levels of achievement compared
to pre-assigned monthly retail sales objectives.
Income (loss) from investments
of which from affiliated
companies €(2) (2000: €24;
1999: €41 )
Gains, net from disposals of
investments and shares in
affiliated and associated
companies
Write-down of investments and
shares in affiliated companies
Income (loss) from companies
included at equity
Income (loss) from
investments, net
Other interest and similar
income
of which from affiliated
companies €31
(2000: €20; 1999: €17)
Interest and similar expenses
Interest income, net
Income from securities and
long-term receivables
Write-down of securities and
long-term receivables
Other, net
Other financial income
(loss), net
(in millions of €)
24 73 19
320 141
(109) (54) (19)
97 (244) 23
332 (224) 64
1,483 1,268 1,382
(1,760) (988) (729)
(277) 280 653
291 161 913
(16) (3) (17)
(176) (58) (1,280)
99 100 (384)
154 156 333
1999
Year ended December 31,
20002001
8. Financial Income, net
In 2001, EADS, an equity method investment of
the Group, created a new company, Airbus SAS, and
contributed all of its Airbus activities into the new
company for a 100% ownership interest. Also in 2001,
Airbus SAS issued new shares to BAe Systems in ex-
change for all of its Airbus activities. As a result of this
transaction, EADS’ ownership interest in Airbus SAS,
which is consolidated by EADS, was diluted to 80%.
DaimlerChrysler recognized under U.S. GAAP its share
of the gain resulting from the formation of Airbus SAS
in the amount of €747 million in income (loss) from
companies included at equity.
In 1999, realized and unrealized net losses on
derivative financial instruments of €1,078 million
were included in other, net.
The Group capitalized interest expenses related
to qualifying construction projects of €275 million
(2000: €181 million; 1999: €163 million).