Mercedes 2006 Annual Report Download - page 185

9. Disposal Group Off-Highway, Assets and Liabilities
Held for Sale
On December 27, 2005, DaimlerChrysler entered into a share sale
and purchase agreement regarding the sale of a major portion
of its Off-Highway business unit. The sale was consummated in
2006 (see Note 4). As a result of DaimlerChrysler’s significant
anticipated continuing sales of products to the Off-Highway busi-
ness which are expected to continue beyond one year after
disposal, the operations of the Off-Highway business have not been
presented as discontinued operations in DaimlerChrysler’s
consolidated income statements.
However, the assets and the liabilities of the Off-Highway business
that are part of the transaction have each been aggregated
and presented in separate lines on the consolidated balance sheet
as of December 31, 2005.
The assets held for sale and liabilities held for sale are shown on
a consolidated basis and are comprised of the following:
10. Cumulative Effects of Changes in Accounting Principles
Share-based compensation. On January 1, 2006, DaimlerChrysler
adopted Statement of Financial Reporting Standards (“SFAS”)
123 (revised 2004), “Share-Based Payment” (“SFAS 123R”) using
a modified version of prospective application (see Note 23).
The cumulative effect of adopting SFAS 123R was a reduction of
net income of €4 million, net of taxes of €3 million (€0.00 per
share), recognized in 2006.
Conditional asset retirement obligation. As of December 31,
2005, DaimlerChrysler adopted the provisions of FIN 47,
“Accounting for Conditional Asset Retirement Obligations - an
interpretation of FASB Statement No. 143” pertaining to the
accounting for legal asset retirement obligations whose timing
or method of settlement is conditional on a future event.
For existing conditional asset retirement obligations whose fair
value could be reasonably determined, DaimlerChrysler
recognized the liability and related additional long-lived asset and
adjusted the liability and the asset, respectively, for cumulative
accretion and accumulated depreciation to the date of adoption.
The cumulative effect of adopting FIN 47 was a reduction of net
income of €5 million, net of taxes of €3 million (€0.00 per share),
recognized separately in the consolidated statement of income
in 2005.
At December 31,
2005
20
309
212
80
395
316
42
1,374
4
603
157
7
771
Assets held for sale
Intangible assets
Goodwill
Property, plant and equipment
Investments and long-term financial assets
Inventories
Receivables and other assets
Other
Liabilities held for sale
Minority interests
Accrued liabilities
Liabilities
Other
(in millions of €)
Consolidated Financial Statements | Notes to the Consolidated Statements of Income | 169