Mercedes 2012 Annual Report Download - page 234

243
7 | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
Beginning in June 2006, the Federal Republic of Germany began
reducing monthly payments to Toll Collect GmbH by €8 million
in partial set-off against amounts claimed in the arbitration
proceeding referred to below. This offsetting may require the
consortium members to provide additional operating funds
to Toll Collect GmbH.
The operating agreement calls for the submission of all
disputes related to the toll collection system to arbitration.
The Federal Republic of Germany has initiated arbitration
proceedings against Daimler Financial Services AG, Deutsche
Telekom AG and the consortium. According to the statement
of claims received in August 2005, the Federal Republic
of Germany is seeking damages including contractual penalties
and reimbursement of lost revenue that allegedly arose from
delays in the operability of the toll collection system. See Note 28
for additional information.
Each of the consortium members (including Daimler Finan-
cial Services AG) has provided guarantees supporting the
obli gations of Toll Collect GmbH towards the Federal Republic
of Germany relating to the completion and operation of the
toll collection system, which are subject to specific triggering
events. In addition, Daimler AG has guaranteed bank loans
obtained by Toll Collect GmbH. The guarantees are described
in detail below:
– Guarantee of bank loans. Daimler AG issued a guarantee
to third parties up to a maximum amount of €110 million
for bank loans which could be obtained by Toll Collect GmbH.
This amount represents the Group’s 50% share of Toll Collect
GmbH’s external financing guaranteed by its shareholders.
– Equity maintenance undertaking. The consortium members
have the obligation to contribute, on a joint and several
basis, additional funds to Toll Collect GmbH as may be neces-
sary for Toll Collect GmbH to maintain a minimum equity
(based on German Commercial Code accounting principles)
of 15% of total assets (a so-called “equity maintenance
undertaking”). This obligation will terminate on August 31,
2015, when the operating agreement expires, or earlier
if the agreement is terminated. Such obligation may arise
if Toll Collect GmbH is subject to revenue reductions caused
by underperformance, if the Federal Republic of Germany
is successful in claiming lost revenue against Toll Collect
GmbH for any period the system was not fully operational,
or if Toll Collect GmbH incurs penalties that may become
payable under the above mentioned agreements. If such
penalties, revenue reductions or other events reduce Toll
Collect GmbH’s equity to a level below the minimum equity
percentage agreed upon, the consortium members are
obligated to fund Toll Collect GmbH’s operations to the extent
necessary to reach the required minimum equity.
Cofiroute’s risks and obligations are limited to €70 million.
Daimler Financial Services AG and Deutsche Telekom AG are
jointly obliged to indemnify Cofiroute for amounts exceeding
this limitation.
While Daimler’s maximum future obligation resulting from
the guarantee of the bank loan can be determined (2012:
€110 million), the Group is unable to reasonably estimate
the amount or range of amounts of possible loss resulting from
the financial guarantee in form of the equity maintenance
undertaking due to the various uncertainties described above,
although it could be material. Only the guarantee for the
bank loan is included in the above disclosures for financial
guarantees.
Obligations associated with product warranties are also not
included in the above disclosures. See Note 23 for provisions
relating to such obligations.
Other financial commitments. In connection with its pro-
duction programs, Daimler has committed to purchase various
volumes of parts and components over extended periods.
The Group also has entered into service arrangements for the
provision of future services. In addition, the Group has com-
mitted to purchase or invest in the construction, maintenance
of production facilities and other agreements. Amounts under
the latter arrangements represent commitments to purchase
plant or equipment in the future. As of December 31, 2012,
total other financial commitments amounted to €10.2 billion
(2011: €9.4 billion).
The Group has also entered into operating leases for property,
plant and equipment. In 2012, Daimler recognized as expense
rental payments of €528 million (2011: €495 million). Table
 7.69 provides an overview of when future minimum lease
payments under long-term lease agreements fall due (nominal
amounts).
In addition, the Group issued loan commitments for a total
of €1.0 billion and €2.0 billion as of December 31, 2012
and 2011 respectively. These loan commitments are unused
as of those dates.
Future minimum lease payments under long-term lease agreements
At December 31,
2012 2011
In millions of euros
Maturity
within one year 360 401
between one and three years 575 632
between four and five years 437 490
later than five years 767 957
2,139 2,480
7. 6 9