Mercedes 2010 Annual Report Download - page 224

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27. Consolidated statement of cash flows
Cash provided by operating activities. The changes
in other operating assets and liabilities are as follows:
2010 2009
In millions of euros
Provisions 1,648 203
Financial instruments -60 -44
Miscellaneous other assets and liabilities 914 740
2,502 899
Cash provided by operating activities includes the following cash
flows:
2010 2009
In millions of euros
Interest paid -523 -894
Interest received 92 471
Income taxes paid, net -1,189 -358
Dividends received 38 109
The line item other non-cash expense and income within the
reconciliation of net profit to cash provided by operating activities
primarily comprises deferred taxes and the Group’s share
in the profit/loss of companies accounted for using the equity
method.
Cash used for financing activities. Cash used for financing
activities includes cash flows from hedging the currency risks of
financial liabilities. In 2010, cash used for financing activities
included payments for the reduction of the outstanding finance
lease liabilities of €75million (2009: €71 million).
28. Legal proceedings
Various legal proceedings, claims and governmental investiga-
tions are pending against Daimler AG and its subsidiaries on
a wide range of topics, including vehicle safety, emissions, 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 in several
different vehicle models or allege design defects relating to vehicle
stability, pedal misapplication, brakes 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 proceedings could require
us to pay substantial compensatory and punitive damages
or undertake service actions, recall campaigns or other costly
actions.
In mid-January 2011 the European Commission carried out anti-
trust investigations of European commercial vehicle manufacturers,
including Daimler AG. Daimler is taking the Com mission’s initial
suspicion very seriously and is also – parallel to the Commission’s
investigations – carrying out its own extensive internal inves-
tigation to clarify the underlying circumstances. If antitrust infringe-
ments are discovered, the European Commission can impose
considerable fines depending on the gravity of the infringement.
In accordance with IAS 37.92 the Group does not provide fur-
ther information on this anti-trust investigation and the associated
risk for the Group, especially with regard to the measures taken
in this context, in order not to impair the outcome of the proceed-
ing.
On April 1, 2010, Daimler announced a settlement of the previ-
ously disclosed US Securities and Exchange Commission (SEC)
and US Department of Justice (DOJ) investigations into possible
violations by Daimler of the anti-bribery, record-keeping, and
internal-controls provisions of the US Foreign Corrupt Practices
Act (FCPA).