Mercedes 2002 Annual Report Download - page 129

25. Accrued Liabilities
Accrued liabilities are comprised of the following:
a) Pension Plans and Similar Obligations
Pension plans and similar obligations are comprised of the
following components:
As a result of the underfunded status of the accumulated pen-
sion benefit obligations, DaimlerChrysler recognized additional
pension liabilities amounting to 14.7 billion in 2002, which
did not impact the consolidated statement of income (loss).
Of the 14.7 billion, the Group recognized 12.3 billion as an
intangible pension asset (see Note 13) and 12.4 billion within
accumulated other comprehensive income (see Note 23).
As described in Note 5 and Note 7, DaimlerChrysler imple-
mented in 2001 restructuring plans at Freightliner and
Chrysler Group, including certain workforce reduction initia-
tives. The impacts on the pension and postretirement obliga-
tions resulting from settlements and curtailments of these
turnaround plans are contained in the following disclosures.
Pension Plans
The Group provides pension benefits to substantially all of its
hourly and salaried employees. Plan benefits are principally
based upon years of service. Certain pension plans are based
on salary earned in the last year or last five years of employment
while others are fixed plans depending on ranking (both wage
level and position).
At December 31, 2002, plan assets were invested in diversi-
fied portfolios that consisted primarily of debt and equity
securities, including 14,855 shares of DaimlerChrysler Ordi-
nary Shares with a market value of 10.4 million in a Canadian
plan. Assets and income accruing on all pension trust and
relief funds are used solely to pay pension benefits and admin-
ister the plans.
The following information with respect to the Group’s pen-
sion plans is presented by German Plans and non-German
Plans (principally comprised of plans in the U.S.):
(in millions of 3)
At December 31,
20012002
Pension liabilities (pension plans)
Accrued postretirement health and life
insurance benefits
Other benefit liabilities
7,393
8,167
349
15,909
2,612
9,442
593
12,647
(in millions of 3)
At December 31,
German
Plans
At December 31,
2002
Non-
German
Plans
German
Plans
2001
Non-
German
Plans
24,139
(3,829)
384
1,622
16
1,199
–
37
292
(1,852)
22,008
24,125
(3,465)
(1,756)
621
21
–
36
(1,827)
17,755
10,483
–
226
629
(1)
45
–
63
2
(506)
10,941
7,503
–
(1,101)
807
–
–
–
(420)
6,789
(in millions of 3)
At December 31,
2001
Due after
one year
Total
2002
Due after
one yearTotal
12,647
2,393
27,154
42,194
11,650
651
10,104
22,405
21,878
1,026
404
1,696
109
563
(765)
25
964
(1,761)
24,139
25,962
1,199
(1,309)
843
25
(865)
17
(1,747)
24,125
9,579
–
198
612
1
613
(179)
140
2
(483)
10,483
7,908
–
(720)
713
–
–
–
(398)
7,503
Notes to Consolidated Balance Sheets |123
15,909
3,621
24,182
43,712
14,658
1,602
9,876
26,136
Pension plans and similar
obligations (see Note 25a)
Income and other taxes
Other accrued liabilities
(see Note 25b)
Change in projected
benefit obligations:
Projected benefit
obligations at
beginning of year
Foreign currency
exchange rate changes
Service cost
Interest cost
Plan amendments
Actuarial losses
Dispositions
Acquisitions and other
Settlement/
curtailment loss
Benefits paid
Projected benefit
obligations at end of year
Change in plan assets:
Fair value of plan assets
at beginning of year
Foreign currency
exchange rate changes
Actual return (loss) on
plan assets
Employer contributions
Plan participant
contributions
Dispositions
Acquisitions and other
Benefits paid
Fair value of plan assets
at end of year