Mercedes 2013 Annual Report Download - page 234

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28. Consolidated statement of cash flows
Calculating funds. As of December 31, 2013, cash and cash
equivalents included restricted funds of €69 million (2012:
€75 million). The restricted funds primarily resulted from sub-
sidiaries where exchange controls apply so that the funds
are not available for general use by the Group.
Cash provided by/used for operating activities. The
changes in other operating assets and liabilities are presented
in table  F.70.
The increase in the provisions compared to the prior year was
primarily affected by higher non-cash expenses for dealer
incentives and lower contributions to the Group’s pension plans.
In comparison to the prior year the development of the
miscellaneous other assets and liabilities was mainly influenced
by higher liabilities related to Value Added Tax already received
but not yet paid as well as higher liabilities resulting from
the sale of vehicles with residual value guarantees and service
and maintenance agreements.
Table  F.71 shows cash flows included in cash provided
by/used for operating activities.
The line item “Other non-cash expense and income” within
the reconciliation of profit before income taxes to cash provided
by/used for operating activities primarily comprised the
effect of the remeasurement of the EADS shares (see note 13).
Cash provided by/used for financing activities. Cash provided
by/used for financing activities includes cash flows from
hedging the currency risks of financial liabilities. In 2013, cash
provided by/used for financing activities includes payments
for the reduction of the outstanding finance lease liabilities of
€52million (2012: €105 million).
29. Legal proceedings
Various legal proceedings, claims and governmental investiga-
tions (legal proceedings) 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, antitrust
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 the
claims asserted by way of class action suits 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 deci-
sions in one or more of these proceedings could require us
to pay substantial compensatory and punitive damages or under-
take service actions, recall campaigns or other costly actions.
Changes in other operating assets and liabilities
2013 2012
In millions of euros
Provisions 573 -1,003
Financial instruments 131 -188
Miscellaneous other assets and liabilities 1,536 450
2,240 -741
F.70
Cash flows included in cash provided by/used for operating activities
2013 2012
In millions of euros
Interest paid -385 -561
Interest received 172 192
Dividends received 144 192
F.71