Mercedes 2002 Annual Report Download - page 109

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Notes to Consolidated Financial Statements |103
addition, 5 (2001: 5) companies administering pension funds
whose assets are subject to restrictions have not been included
in the consolidated financial statements. The consolidated
financial statements include 112 associated companies
(2001: 96) accounted for at cost and recorded under invest-
ments in related companies as these companies are not
material to the respective presentation of the financial position,
results of operations or cash flows of the Group.
3. Equity Method Investments
At December 31, 2002, the significant investments in compa-
nies accounted for under the equity method were the following:
Further information with respect to the transactions which
resulted in the Group’s holdings in EADS and MMC is presented
in Note 4 (Acquisitions and Dispositions) and Note 11 (Extra-
ordinary Items). The aggregate quoted market prices as of
December 31, 2002, for DaimlerChrysler’s shares in EADS and
MMC were 12,627 million and 11,124 million, respectively.
The carrying value of the significant investments exceeded
DaimlerChrysler’s share of the underlying reported net assets
by approximately 1840 million at December 31, 2002. The
excess of the Group’s initial investment in equity method com-
panies over the Group’s ownership percentage in the underly-
ing net assets of those companies is attributed to certain fair
value adjustments with the remaining portion considered as
investor level goodwill. The fair value adjustments and good-
will are accounted for in the respective equity method invest-
ment balances. Under the equity method, investments are
stated at initial cost and are adjusted for subsequent contri-
butions and DaimlerChrysler’s share of the equity investees’
earnings, losses and distributions. Investor level goodwill
relating to the Group’s investments in EADS and MMC was
being amortized over a 20 year period until December 31,
2001. After December 31, 2001, such goodwill was no longer
amortized as a result of adopting SFAS 142. The total carrying
value, including goodwill, of each equity method investment
will continue to be evaluated for impairment when conditions
indicate that a decline in fair value below the carrying amount
is other than temporary.
The following tables present, on a three month lag, summa-
rized U.S. GAAP financial information for EADS and MMC
(amounts shown on a 100% basis in millions of 1) which are
the basis for applying the equity method in the Group’s
consolidated financial statements:
Income statement information
EADS
27,004
2,598
Revenues
Net income
28,769
521
2002 2001
Balance sheet information
26,505
22,119
48,624
11,409
598
11,149
25,468
48,624
Fixed assets
Non-fixed assets
Total assets
Stockholders’ equity
Minority interests
Accrued liabilities
Other liabilities
Total liabilities and stockholders’ equity
At December 31,
26,254
19,207
45,461
13,143
942
8,262
23,114
45,461
2002 2001
Income statement information
MMC
30,057
(1,209)
Revenues
Net income (loss)
27,847
154
2002 2001
Balance sheet information
11,974
12,697
24,671
1,528
(61)
5,800
17,404
24,671
Fixed assets
Non-fixed assets
Total assets
Stockholders’ equity
Minority interests
Accrued liabilities
Other liabilities
Total liabilities and stockholders’ equity
10,465
11,971
22,436
1,422
121
5,039
15,854
22,436
2002 2001
Company
33.0%
37.1%
European Aeronautic Defence and Space Company
EADS N.V.
Mitsubishi Motors Corporation
Ownership
percentage