Mercedes 2006 Annual Report Download - page 210

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29. Consolidated Statements of Cash Flows
The following cash flows represent supplemental information
with respect to net cash provided by operating activities:
Payments (or proceeds) of early terminated cross currency
hedges related to financial liabilities, are included in net cash
provided by financing activities (2006: -; 2005: €72 million;
2004: €(1,304) million).
30. Legal Proceedings
Various legal proceedings, claims and governmental investigations
are pending against DaimlerChrysler AG or its subsidiaries
on a wide range of topics, including vehicle safety, emissions and
fuel economy, financial services, dealer, supplier and other
contractual relationships; intellectual property rights; product
warranties; environmental matters; and shareholder matters.
Some of these proceedings allege defects in various components
(including occupant restraint systems, seats, brake systems,
tires, ball joints, engines and fuel systems) in several different
vehicle models or allege design defects relating to vehicle
stability (rollover propensity), pedal misapplication (sudden accel-
eration), brakes (vibration and brake transmission shift interlock),
or crashworthiness. Some of these proceedings are filed as class
action lawsuits that seek repair or replacement of the vehicles
or compensation for their alleged reduction in value, while others
seek recovery for damage to property, personal injuries or
wrongful death. Adverse decisions in one or more of these pro-
ceedings could require us to pay substantial compensatory and
punitive damages, or undertake service actions, recall campaigns
or other costly actions.
The Federal Republic of Germany initiated arbitration proceedings
against DaimlerChrysler Financial Services AG, Deutsche
Telekom AG and Toll Collect GbR and submitted its statement
of claims in August 2005. It seeks damages, contractual
penalties and the transfer of intellectual property rights to Toll
Collect GmbH. In particular, the Federal Republic of Germany
is claiming lost revenues of €3.51 billion plus interest (€236 million
through July 31, 2005 plus 5% per annum over the respective
base rate since then) for the period September 1, 2003, through
December 31, 2004, and contractual penalties of approximately
€1.65 billion through July 31, 2005 plus interest (€107 million
through July 31, 2005 plus 5% per annum over the respective
base rate since then). Since some of the contractual penalties,
among other things, are dependent on time, and further
claims for contractual penalties have been asserted by the Federal
Republic of Germany, the amount claimed as contractual
penalties may increase. DaimlerChrysler believes the claims are
without merit and is defending itself vigorously. We submitted
our response to the arbitrators in June 2006 (see also Note 3.)
Notes to the Consolidated
Statements of Cash Flows Other Notes
Year ended December 31,
2004
20052006
4,193
1,494
3,652
700
3,092
1,373
Interest paid
Income taxes paid
(in millions of €)