Mercedes 2002 Annual Report Download - page 133

b) Other Accrued Liabilities
Other accrued liabilities consisted of the following:
Accruals for restructuring comprise certain employee termi-
nation benefits and costs which are directly associated with
plans to exit specified activities. The changes in these
provisions are summarized as follows:
In connection with the Group’s restructuring, provisions
were recorded for termination benefits of 1323 million (2001:
11,504 million; 2000: 116 million), in 2002 principally within
Chrysler Group (see Note 7) and Commercial Vehicles,
in 2001 principally within Chrysler Group (see Note 7) and
Freightliner (see Note 5) and in 2000 principally within
Mercedes Car Group and Commercial Vehicles. In connection
with these restructuring efforts, the Group effected workforce
reductions of approximately 11,500 employees (2001:
17,700; 2000: 2,600) and paid termination benefits of 1431
million (2001: 1269 million; 2000: 1135 million), of which
1359 million (2001: 1227 million; 2000: 1120 million) were
charged against previously established liabilities. At December
31, 2002, the Group had liabilities for estimated future
terminations for approximately 7,100 employees.
In 2002, exit costs primarily result from restructuring within
Chrysler Group. Exit costs in 2001 primarily due to the
restructuring within Chrysler Group and Freightliner. In 2000
exit costs primarily result from the restructuring of industrial
businesses.
The Group issues various types of contractual product war-
ranties under which it generally guarantees the performance
of products delivered and services rendered for a certain
period or term (see Note 31). In addition, the accrued liability
for product warranties covers expected costs for policy
coverage, recall campaigns and buyback commitments. The
changes in provisions for those product warranties are
summarized as follows:
(in millions of 3)
Total
liabilities
Exit
cost
Termination
benefit
(in millions of 3)
Balance at January 1, 2002
Currency change
Utilizations and transfers
Changes from product warranties issued in 2002
Changes from prior period product warranties issued
Balance at December 31, 2002
9,059
(1,057)
(4,384)
5,423
(27)
9,014
(in millions of 3)2002
Accrued warranty costs and price risks
Accrued losses on uncompleted contracts
Restructuring
Accrued personnel and social costs
Accrued sales incentives
Other
9,120
507
758
2,286
4,813
6,698
24,182
9,213
549
1,190
2,386
4,395
9,421
27,154
2001
At December 31,
Notes to Consolidated Balance Sheets |127
Balance at January 1, 2000
Utilizations and transfers
Reductions
Additions
Balance at December 31, 2000
Utilizations and transfers
Reductions
Additions
Balance at December 31, 2001
Utilizations and transfers
Reductions
Additions
Balance at December 31, 2002
407
(229)
(43)
16
151
(947)
(135)
1,504
573
(461)
(57)
323
378
188
(56)
(34)
11
109
(275)
(144)
927
617
(358)
(39)
160
380
595
(285)
(77)
27
260
(1,222)
(279)
2,431
1,190
(819)
(96)
483
758