Mercedes 2002 Annual Report Download - page 128
Download and view the complete annual report
Please find page 128 of the 2002 Mercedes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136 -
137 -
138 -
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
 |
 |
122 |Notes to Consolidated Balance Sheets
A summary of the activity related to the Group’s SAR plans
as of and for the years ended December 31, 2002, 2001 and
2000 is presented below (SARs in millions):
Compensation expense or benefit (representing the reversal
of previously recognized expense) on SARs is recorded based
on changes in the market price of DaimlerChrysler Ordinary
Shares. For the years ended December 31, 2002 and 2000
the Group recognized compensation benefits of 19 million and
158 million respectively, in connection with SARs. For the
year ended December 31, 2001, the SARs had no effect on
the consolidated statement of income (loss).
Medium Term Incentive Awards
The Group grants medium term incentives to certain eligible
employees that track, among other things, the value of the
DaimlerChrysler Ordinary Shares at the beginning of three
year performance periods. The amount ultimately earned in
cash at the end of a performance period is particularly based
on the degree of achievement of corporate goals derived from
competitive and internal planning benchmarks and the value
of DaimlerChrysler Ordinary Shares at the end of three year
performance periods. The benchmarks include return on
net assets and return on sales. The Group issued 1.2 million
medium term incentives in 2002 (2001: 0.9 million; 2000:
0.7 million).
For the year ended December 31, 2002 the Group recog-
nized compensation expense of 120 million (2001: 117 million;
2000: 114 million) in connection with the medium term
incentive awards.
Fair Value Information
Had the Group adopted SFAS 123, stock options would have
been accounted for based on their fair values. The fair values
of the DaimlerChrysler stock options issued in 2002, 2001
and 2000 were calculated at the grant dates with a modified
Black-Scholes option pricing model, which considers the
terms of issuance.
The table below presents the underlying assumptions as well
as the resulting fair values and total values (in millions of 1):
Stock options granted in
3.8%
25%
4.8%
3
19.50
144.4
2000
4.6%
33%
4.2%
3
112.15
227.2
2.0%
30%
4.2%
3
318.70
374.0
20012002
2002
Weighted-
average
exercise price
Number of
SARs
2001
Weighted-
average
exercise price
Number of
SARs
2000
Weighted-
average
exercise price
Number of
SARs
182.87
–
–
85.93
84.75
184.75
42,5
–
–
(2.2)
40.3
40.3
384.75
–
–
78.31
79.13
379.13
44.5
–
–
(2.0)
42.5
42.5
45.8
–
–
(1.3)
44.5
33.6
Outstanding at beginning of year
Grandet
Exercised
Forfeited
Outstanding at year-end
SARs exercisable at year-end
180.25
–
–
78.52
82.87
180.63
Expected dividend yield
Expected volatility
Risk-free interest rate
Expected lives (in years)
Fair value per option
Total value by award