Mercedes 2002 Annual Report Download - page 113

Based on its investment in MMC and the corresponding stra-
tegic alliance entered into in the fourth quarter 2000, Daimler-
Chrysler conducted a review of its compact car strategy in
2000, and concluded that it was necessary to revise the cur-
rent strategic plan for the smart brand, including restructuring
of supplier contracts. As a result, the carrying values of cer-
tain of the brand’s long-lived assets were determined to be
impaired as the identifiable, undiscounted future cash flows
from the operation of such assets were less then their respec-
tive carrying values. In accordance with SFAS 121, “Account-
ing for the Impairment of Long-Lived Assets and for Long-
Lived Assets to Be Disposed Of,” DaimlerChrysler recorded
an impairment charge of 1281 million. The impairment charge
represents the amount by which the carrying values of such
assets exceeded their respective fair market values. The im-
pairment relates principally to the carrying values of the man-
ufacturing facility, equipment and tooling. In addition, charges
of 1255 million were recorded related to fixed cost reimbur-
sement agreements with MCC smart suppliers. The charges
were recorded in cost of sales (1494 million) and other
expenses (142 million) for the year 2000.
In 2000, DaimlerChrysler recorded an impairment charge in
cost of sales of approximately 1500 million for certain leased
vehicles in the Services segment. Declining resale prices
of used vehicles in the North American and the U.K. markets
required the Group to re-evaluate the recoverability of the
carrying values of its leased vehicles. This re-evaluation was
performed using product specific cash flow information. As a
result, the carrying values of these leased vehicles were deter-
mined to be impaired as the identifiable undiscounted future
cash flows from such vehicles were less than their respective
carrying values. In accordance with SFAS 121, the resulting
pre-tax impairment charges represent the amount by which
the carrying values of such vehicles exceeded their respective
fair market values.
Personnel expenses included in the statement of income
(loss) are comprised of:
Number of employees (annual average):
In 2001 and 2000, 28 people were employed in each of the
years in joint venture companies.
Information on the remuneration to the current members
of the Supervisory Board and the Board of Management is in-
cluded in Note 37. In 2002, disbursements to former members
of the Board of Management of DaimlerChrysler AG and their
survivors amounted to 19 million. An amount of 1150 million
has been accrued for pension obligations to former members
of the Board of Management and their survivors. As of
December 31, 2002, 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 (149 million, 1104 million and 1106 million in
2002, 2001 and 2000, respectively) and rental income, other
than relating to financial services leasing activities (1197
million, 1191 million and 1178 million in 2002, 2001 and
2000, respectively). In 2001, gains on sales of companies of
1465 million were recognized in other income.
270,814
165,117
13,663
449,594
2000
244,938
122,094
12,512
379,544
232,304
125,110
13,263
370,677
20012002
Year ended December 31,
(in millions of 3)
21,836
3,428
327
830
79
26,500
2000
20,073
3,193
630
1,173
26
25,095
19,701
3,132
152
1,119
59
24,163
20012002
Year ended December 31,
Notes to Consolidated Statements of Income (Loss) |107
Wages and salaries
Social levies
Net pension cost
(see Note 25a)
Net postretirement benefit cost
(see Note 25a)
Other expenses for pensions and
retirements
Hourly employees
Salaried employees
Trainees/apprentices