Mercedes 2006 Annual Report Download - page 224

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35. Earnings per Share
The computation of basic and diluted earnings per share
for “income before cumulative effects of changes in accounting
principles” is as follows:
Stock options to acquire 46.4 million, 65.7 million and 67.1 million
of DaimlerChrysler ordinary shares that were issued in connection
with the 2000 Stock Option Plan were not included in the compu-
tation of diluted earnings per share for 2006, 2005 and 2004,
respectively, because the options’ underlying exercise prices were
higher than the average market prices of DaimlerChrysler
ordinary shares in these periods.
36. Related Party Transactions
The Group purchases materials, supplies and services
from numerous suppliers throughout the world in the ordinary
course of business. These suppliers include companies in
which the Group holds an ownership interest and companies
that are affiliated with some members of the Supervisory
Board or the Board of Management of DaimlerChrysler AG or its
subsidiaries.
As described in more detail in Note 3, DaimlerChrysler has
provided a number of guarantees with respect to Toll Collect, a
joint venture in which DaimlerChrysler holds an equity interest
of 45%. Furthermore, Mr. Bernhard Walter, a member of the
Supervisory Board of DaimlerChrysler AG, is also a member
of the Supervisory Board of Deutsche Telekom AG, one of the
other investors in Toll Collect.
Dr. Mark Wössner, a member of DaimlerChrysler’s Supervisory
Board, received payments in 2006, 2005 and 2004 in the amount
of €1 million, respectively, for the rental of premises to Westfalia
Van Conversion GmbH, a wholly-owned subsidiary of Daimler-
Chrysler.
DaimlerChrysler engages in commercial transactions with its
equity investee EADS. The Group does not consider these
transactions to be material either individually or in the aggre-
gate. Mr. Bischoff and Mr. Lagardère are both members of
the Supervisory Board of DaimlerChrysler AG, and are also
co-chairmen of the Board of Directors of EADS.
From time to time, DaimlerChrysler Group companies may pur-
chase goods and services (primarily advertising) from, and sell or
lease vehicles or provide financial services to, Lagardère Group
companies in the ordinary course of business. Arnaud Lagardère,
who became member of the Supervisory Board in April 2005,
is the general partner and Chief Executive Officer of Lagadère
SCA, a publicly traded company and the ultimate parent
company of the Lagardère Group.
2006 2005
Year ended December 31,
2004
3,231
–
3,231
1,022.1
5.2
1,027.3
3.16
3.14
2,851
–
2,851
1,014.7
3.0
1,017.7
2.80
2.80
2,466
–
2,466
1,012.8
1.7
1,014.5
2.43
2.43
Income before cumulative effects of
changes in accounting principles – basic
Diluting effects in Income before
cumulative effects of changes in
accounting principles
Income before cumulative effects of
changes in accounting principles – diluted
Weighted average number of shares
outstanding – basic
Dilutive effect of stock options
Weighted average number of shares
outstanding – diluted
Earnings per share before cumulative
effects of changes in accounting principle
Basic
Diluted
(in millions of € or millions of shares,
except earnings per share)