Mercedes 2006 Annual Report Download - page 187

Consolidated Financial Statements | Notes to the Consolidated Balance Sheets | 171
13. Property, Plant and Equipment, Net
Information with respect to changes in the Group’s property,
plant and equipment is presented in the Consolidated Fixed Assets
Schedule included herein.
Property, plant and equipment includes buildings, technical
equipment and other equipment capitalized under capital lease
agreements of €479 million (2005: €341 million). Depreciation
expense and impairment charges on assets under capital lease
arrangements were €80 million (2005: €55 million; 2004: €34
million).
Future minimum lease payments due for property, plant and
equipment under capital leases at December 31, 2006 amounted
to €740 million and are due as follows:
The reconciliation of future minimum lease payments from
capital lease agreements to the corresponding liabilities is as
follows:
14. Equipment on Operating Leases, Net
Information with respect to changes in the Group’s equipment
on operating leases is presented in the Consolidated Fixed
Assets Schedule included herein. Of the total equipment on oper-
ating leases, €36,433 million represents automobiles and
commercial vehicles (2005: €33,644 million).
Noncancellable future lease payments to DaimlerChrysler for
equipment on operating leases at December 31, 2006 amounted
to €12,956 million and are due as follows:
In 2006, the Group completed a securitization of future lease
payments on operating leases and related vehicles. The securiti-
zation was accounted for as secured borrowing. At December 31,
2006, the carrying amount of the leased vehicles, the interests in
which were legally transferred to a bank conduit, was €886
million. The debt associated with the on-balance sheet lease secu-
ritization was €651 million, recognized under “other financial
liabilities”.
15. Inventories
Certain of the Group’s US inventories are valued using the LIFO
method. If the FIFO method had been used instead of the
LIFO method, inventories would have been higher by €477 million
(2005: €495 million).
At December 31, 2006, inventories include €364 million of
company cars of DaimlerChrysler AG pledged as collateral to
the DaimlerChrysler Pension Trust e.V. due to the requirement
to provide collateral for certain vested employee benefits in
Germany.
thereafter20112010200920082007
90 71 61 59 55 404
Future mini-
mum lease
payments
(in millions of €)
December 31,
2006
740
(249)
491
Amount of future minimum lease payments
Less: Interests included
Liabilities from capital lease agreements
(thereof short-term: 62)
(in millions of €)
thereafter20112010200920082007
6,288 4,191 1,838 439 136 64
Future lease
payments
(in millions of €)
At December 31,
2005
2006
2,079
2,956
12,876
43
17,954
(204)
17,750
1,906
2,924
14,414
47
19,291
(152)
19,139
Raw materials and manufacturing supplies
Work-in-process
Finished goods, parts and products held for resale
Advance payments to suppliers
Less: Advance payments received
(in millions of €)