Mercedes 2010 Annual Report Download - page 248

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35. Related party relationships
Associated companies and joint ventures. Most of the goods
and services supplied within the ordinary course of business
between the Group and related parties comprise transactions
with associated companies and joint ventures and are included
in the following table:
Sales of goods
and services
and other income
Purchases of goods
and services
and other expense Receivables Payables
At December 31, At December 31,
2010 2009 2010 2009 2010 2009 2010 2009
In millions of euros
Associated companies 797 990 163 1,132 218 155 55 28
Joint ventures 2, 251 1,242 342 140 457 236 154 188
A large proportion of the sales and purchases of goods and
services with associated companies result from business relations
with Tognum AG.
In connection with the Group’s 45% equity interest in Toll Collect,
Daimler has provided guarantees supporting the obligations
of Toll Collect GmbH which are not included in the table above
(see Note 29 for further information).
In 2009, income and expenses resulting from transactions with
Chrysler that occurred before the redemption of the remaining
19.9% equity interest in Chrysler Holding LLC (Chrysler Holding)
on June 3, 2009 are included in the above table in the line
“Associated companies.” Therein included is a gain before income
taxes of €0.1 billion in connection with the legal transfer of
Chrysler’s international sales activities to Chrysler in the first
quarter of 2009. In addition, the Group has agreed to pay
US$600 million in total to Chrysler’s pension plans in connection
with the redemption of the 19.9% equity interest in Chrysler
Holding (see Note 3); the respective expenses resulting from
this agreement are also included in the above table. Due
to the redemption of the equity interest in Chrysler Holding,
re ceivables and payables at December 31, 2009 did not
have to be reported.
Furthermore, in November 2009, in connection with the re-
alignment of the Group’s Formula 1 activities, Daimler agreed
with McLaren Group Ltd. (McLaren), at that time one of Daimler’s
associated companies, to change the form of cooperation.
In two steps, McLaren will buy-back the 40% equity interest in
McLaren owned by the Daimler Group; in November 2009,
McLaren already took over a 28.6% interest from Daimler. The
remaining stake will be acquired by McLaren at a fixed price by
the end of 2011. As of December 31, 2009, the carrying amount
of the Group’s remaining investment in McLaren amounted
to €26 million. In the context of the transaction, the Group has
consented to compensate for its existing obligations, for ex-
ample to support McLaren’s research and development activities
until the end of 2011, with a lump sum payment. In addition, the
Group committed to continue supplying McLaren with Formula 1
engines until the end of 2012. The agreement between Daimler
and McLaren Automotive Ltd., a wholly owned subsidiary of
McLaren Group Ltd., relating to the production of the Mercedes
McLaren SLR sports car was terminated at the end of 2009. As
a result of disposing of its equity interest, the Daimler Group
no longer has a significant influence on McLaren’s business oper-
ations. For this reason, in November 2009, the Group ceased
to account for its equity interest in McLaren using the equity
method of accounting. Income and expenses resulting from
transactions with McLaren that occurred before that date are
included in the above table. As a result of the agreement with
McLaren, the Group recorded expenses of €87 million in 2009
that were allocated to the Mercedes-Benz Cars segment and
are not reflected in the above table.