Mercedes 2012 Annual Report Download - page 208

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7 | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
Table  7.26 shows the line items of the consolidated
statement of income in which total amortization expense
for intangible assets is included.
Intangible assets include capitalized borrowing costs on
qualified assets according to IAS 23 which related only
to capitalized development costs. In 2012, borrowing costs
in the amount of €21 million (2011: €20 million) were capital-
ized. The base for the calculation of borrowing costs was
an average cost of debt of 1.5% (2011: 2.8%).
11. Property, plant and equipment
Property, plant and equipment developed as shown in table
 7.27.
In 2012, government grants of €75 million (2011: €57 million)
were deducted from property, plant and equipment.
Property, plant and equipment include buildings, technical
equipment and other equipment capitalized under finance
lease arrangements with a carrying amount of €348 million
(2011: €443 million). In 2012, additions to and depreciation
expense on assets under finance lease arrangements amounted
to €33 million (2011: €58 million) and €93 million (2011: €83
million), respectively.
12. Equipment on operating leases
The development of equipment on operating leases is included
in table  7. 28 .
As of December 31, 2012, equipment on operating leases
with a carrying amount of €3,803 million is pledged as security
for liabilities from ABS transactions related to a securitization
transaction of future lease payments on operating leases and
related vehicles (December 31, 2011: €2,086 million) (see also
Note 24).
Minimum lease payments. Non-cancelable future lease
payments to Daimler for equipment on operating leases are
due as presented in table  7.29.
Equipment on operating leases
In millions of euros
Acquisition or manufacturing costs
Balance at January 1, 2011 25,683
Additions due to business combinations –
Other additions 12,687
Reclassifications –
Disposals -9,904
Other changes1404
Balance at December 31, 2011 28,870
Additions due to business combinations –
Other additions 14,700
Reclassifications –
Disposals -10,742
Other changes1-22
Balance at December 31, 2012 32,806
Depreciation
Balance at January 1, 2011 5,758
Additions 3,370
Reclassifications –
Disposals -3,123
Other changes154
Balance at December 31, 2011 6,059
Additions 3,813
Reclassifications –
Disposals -3,161
Other changes137
Balance at December 31, 2012 6,748
Carrying amount at December 31, 2011 22,811
Carrying amount at December 31, 2012 26,058
1 Primarily changes from currency translation.
7. 2 8
Maturity of minimum lease payments for equipment on operating leases
At December 31,
2012 2011
In millions of euros
Maturity
within one year 4,391 4,134
between one and five years 4,913 4,565
later than 5 years 156 154
9,460 8,853
7. 2 9