Mercedes 2010 Annual Report Download - page 247

Consolidated Financial Statements | Notes to the Consolidated Financial Statements | 243
The split of non-current assets by region is as follows:
2010 2009
In millions of euros
Germany 24,985 23,452
USA 10,154 8,937
Other countries 9,883 8,861
45,022 41,250
33. Capital management
“Net assets” and “value added” represent the basis for capital
management at Daimler. The assets and liabilities of the segments
in accordance with IFRS provide the basis for the determination
of net assets at Group level. The industrial segments are account-
able for the operational net assets; all assets, liabilities and
provisions which they are responsible for in day-to-day operations
are therefore allocated to them. Performance measurement at
Daimler Financial Services is on an equity basis, in line with the
usual practice in the banking business. Net assets at Group
level additionally include assets and liabilities from income taxes
as well as other corporate items and eliminations. The average
annual net assets are calculated from the average quarterly net
assets.
The average quarterly net assets are calculated as an average
of the net assets at the beginning and the end of the quarter and
are as follows:
2010 2009
In millions of euros
Mercedes-Benz Cars 10,146 11,373
Daimler Trucks 6,863 6,720
Mercedes-Benz Vans 1,228 1,728
Daimler Buses 1,200 1,221
Daimler Financial Services 15,156 4,671
Net assets of the segments 24,593 25,713
Investments accounted for using
the equity method 2
3,119
3,591
Assets and liabilities from income taxes 31,278 2,944
Other corporate items and eliminations 3348 -470
Net assets Daimler Group 29,338 31,778
1 Equity
2 Unless allocated to segments
3 Industrial business
The cost of capital of the Group’s average net assets is reflected
in “value added.” Value added shows to which extent the Group
achieves or exceeds the minimum return requirements of the
shareholders and creditors, thus creating additional value. The
required rate of return on net assets, and thus the cost of
capital, are derived from the minimum rates of return that inves-
tors expect on their invested capital. The Group’s cost of capi-
tal comprises the cost of equity as well as the costs of debt and
pension obligations of the industrial business; in addition, the
expected returns on liquidity and on the plan assets of the pension
funds of the industrial business are considered with the oppo-
site sign. In the reporting period, the cost of capital used for our
internal capital management amounted to 8% after taxes.
The objective of capital management is the optimization of the
cost of capital, which is achieved on the one hand by the man-
agement of the net assets which are in the operational responsi-
bility of the segments. In addition, taking into account legal
regulations, Daimler strives to optimize the capital structure and,
consequently, the cost of capital under cost and risk aspects.
34. Earnings/loss per share
The computation of basic and diluted earnings/loss per share
for net profit/loss attributable to shareholders of Daimler AG is
as follows:
2010 2009
In millions of euros
Profit/loss attributable to shareholders
of Daimler AG
4,498
-2,640
Diluting effects in net profit/loss ––
Profit/loss attributable to shareholders
of Daimler AG – diluted
4,498
-2,640
In millions of shares
Weighted average number
of shares outstanding – basic
1,050.8
1,003.8
Dilutive effect of stock options 0.7 –
Weighted average number of shares
outstanding – diluted
1,051.5
1,003.8
The computations of diluted earnings/loss per share for 2010
and 2009, do not include stock options for the acquisition of
9.3 million and 22.4 million Daimler ordinary shares, respectively,
that were issued in connection with the stock option plan,
because the options’ underlying exercise prices were higher
than the average market prices of Daimler ordinary shares
in those periods.