Mercedes 2010 Annual Report Download - page 203

Consolidated Financial Statements | Notes to the Consolidated Financial Statements | 199
EADS. The Group reports its investment in and its proportion-
ate share in the results of the European Aeronautic Defence and
Space Company EADS N.V. (EADS) in the reconciliation of total
segments’ assets to Group assets and total segments’ EBIT to
Group EBIT, respectively, in the segment reporting.
As a result of the recognition of the proportionate share in EADS’
results with a three-month time lag, Daimler recognized its
share in the loss provisions regarding the A400M military trans-
porter program established at EADS for the purpose of their
2009 consolidated financial statements in its equity result for
2010. The Group’s proportionate share in those expenses was
€237 million.
On March 13, 2007, a subsidiary of Daimler which holds Daimler’s
22.5% interest in EADS issued equity interests to investors in
exchange for €1,554 million of cash. As a result of this transac-
tion, the Group reports a minority interest in its consolidated
statement of financial position representing the investor’s owner-
ship in the consolidated subsidiary that issued the equity interest.
The amount reported as minority interest reflects the investor’s
33% share in the net assets of that subsidiary. In connection
with this transaction, between July 1, 2010 and September 30,
2010, Daimler had the option to exchange the newly issued
equity interests for a 7.5% equity interest in EADS or for cash
equivalent to the fair value of the 7.5% equity interest in EADS
at that time. In March 2010, Daimler decided not to make use of
this option. Therefore, Daimler will continue to base its equity-
method accounting of EADS on a 22.5% equity interest.
Tognum. The Group reports its investment and its proportionate
share in the results of Tognum AG in the reconciliation of total
segments’ assets to Group assets and total segments’ EBIT to
Group EBIT, respectively, in the segment reporting.
BBAC. The investment and the proportionate share in the results
of Beijing Benz Automotive Co., Ltd. (BBAC) are allocated to the
Mercedes-Benz Cars segment.
Kamaz. Resulting from its representation on the board of direc-
tors of Kamaz OAO (Kamaz) and its significant contractual rights
under the terms of a shareholder agreement, the Group can
exercise significant influence on Kamaz. Therefore, the Group
accounts for its equity interest in Kamaz using the equity
method; the investment and the proportionate share in the results
of Kamaz are allocated to the Daimler Trucks segment. In 2010,
the Group and the European Bank for Reconstruction and Devel-
opment (EBRD) completed an increase in their strategic invest-
ments in Kamaz. Daimler has thus increased its equity interest
in Kamaz by one percentage point to 11%, while the remaining
4% are legally held by EBRD. Due to the contractual situation
Daimler is deemed to be the economic owner of the shares held
by EBRD pursuant to IFRS.
Others. Included in other investments is the Group’s investment
in Tesla Motors, Inc. (Tesla). Daimler’s equity interest amounted
to 7.9% as of December 31, 2010 (2009: 9.09%). The fair value
and the carrying amount of its investment were €149 million and
€36 million as of December 31, 2010, respectively. Resulting
from its representation on the board of directors of Tesla and its
significant contractual rights under the terms of a shareholder
agreement, the Group can exercise significant influence on Tesla.
Therefore, the Group accounts for its equity interest in Tesla
using the equity method; the investment and the proportionate
share in the results of Tesla are allocated to the Mercedes-Benz
Cars segment.
14. Receivables from financial services
Receivables from financial services are comprised of the
following:
Current
At December 31, 2010
Current
At December 31, 2009
Non-current Total Non-current Total
In millions of euros
Receivables from
Retail 12,436 21,363 33,799 11,835 20,772 32,607
Wholesale 6,131 1,091 7,222 4,808 1,001 5,809
Other 76 1,017 1,093 125 1,105 1,230
Gross carrying amount 18,643 23,471 4 2 ,114 16,768 22,878 39,646
Allowances for doubtful accounts -477 -607 -1,084 -540 -628 -1,168
Carrying amount, net 18,166 22,864 41,030 16,228 22,250 38,478