Mercedes 2002 Annual Report Download - page 120

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114 |Notes to Consolidated Balance Sheets
12. Goodwill
Information with respect to changes in the Group’s goodwill is
presented in the Consolidated Fixed Asset Schedule included
herein.
Upon adoption of SFAS 142, intangible assets relating
to distribution rights with a net carrying amount of 144 million
were reclassified from goodwill to other intangible assets. In
2002, goodwill of 161 million was recorded in connection with
the acquisition of dealerships in Europe and 171 million was
recorded in connection with certain other acquisitions, none
of which were material. A goodwill impairment charge of 140
million was recognized in connection with the contracted
sales of two businesses in the Commercial Vehicles segment
(see Note 4). The remaining changes in the carrying amount of
goodwill primarily relate to currency translation adjustments.
At December 31, 2002, the carrying value of goodwill,
excluding investor level goodwill, allocated to the Group’s
reportable segments are: Mercedes Car Group (1104 million),
Chrysler Group (11,165 million), Commercial Vehicles
(1696 million), Services (162 million) and Other Activities
(144 million).
There is no goodwill that has not been allocated to a report-
ing unit as of December 31, 2002.
DaimlerChrysler’s investor level goodwill in companies
accounted for using the equity method was 1845 million at
December 31, 2002. Such goodwill is not subject to the
impairment tests required by SFAS 142. Instead, the total
investment, including investor level goodwill, will continue
to be evaluated for impairment when conditions indicate that
a decline in fair value of the investment below the carrying
amount is other than temporary.
Adjusted Prior Period Information
Net income (loss) and earnings (loss) per share for the years
ended December 31, 2001 and 2000, adjusted to exclude
goodwill amortization expense (including amounts recognized
in income (loss) from investments representing investor level
equity method goodwill amortization) and investee level good-
will amortization resulting from the Group’s investment in
EADS, were as follows:
13. Other Intangible Assets
Information with respect to changes in the Group’s other
intangible assets is presented in the Consolidated Fixed Asset
Schedule included herein.
Other intangible assets comprise:
DaimlerChrysler’s other intangible assets subject to amortiza-
tion primarily represent software. In 2002, additions of 1374
million were recognized with a weighted average useful life
of 6 years. Distribution rights amounting to 144 million were
reclassified from goodwill to other intangible assets on
January 1, 2002. The aggregate amortization expense for the
years ended December 2002, 2001 and 2000, was 1175
million, 1172 million and 1153 million, respectively.
Amortization expense for the gross carrying amount of other
intangible assets at December 31, 2002, is estimated to be
1138 million in 2003, 196 million in 2004, 159 million in 2005,
129 million in 2006 and 118 million in 2007.
Other intangible assets not subject to amortization represent
intangible pension assets. The Group recorded an intangible
pension asset totaling 12.3 billion in connection with the require-
ment to recognize an additional minimum pension liability
in 2002, principally at the Chrysler Group (see Note 25a).
7,894
297
93
8,284
7.87
0.30
0.09
8.26
7.80
0.29
0.09
8.18
Year ended December 31,
(662)
236
168
(258)
(0.66)
0.24
0.16
(0.26)
(0.66)
0.24
0.16
(0.26)
2001
(in millions of 3)
Other intangible assets subject
to amortization
Gross carrying amount
Accumulated amortization
Net carrying amount
Other intangible assets not subject
to amortization
At December 31,
1,036
(634)
402
2,453
2,855
2002 2001
2000
897
(542)
355
137
492
Net income (loss) (in millions of 1)
Reported net income (loss)
Goodwill amortization
Goodwill amortization – investee level
Adjusted net income (loss)
Income (loss) per share (in 1):
Reported income (loss) per share – basic
Goodwill amortization
Goodwill amortization – investee level
Adjusted income (loss) per share – basic
Reported income (loss) per share – diluted
Goodwill amortization
Goodwill amortization – investee level
Adjusted income (loss) per share – diluted
Notes to Consolidated Balance Sheets