Mercedes 2013 Annual Report Download - page 97

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C | Combined Management Report | Financial Position
The equity ratio was 24.3% for the Group (2012: 22.7%) and
43.4% for the industrial business (2012: 39.8%). The 2012
and 2013 equity ratios are adjusted for the paid and proposed
dividend payments for the years 2012 and 2013.
Provisions decreased to €23.1 billion (2012: €24.5 billion);
as a proportion of the balance sheet total, they decreased
to 14% (2012: 15%). They primarily comprise provisions for pen-
sions and similar obligations (€9.9 billion; 2012: €11.3 billion)
as well as provisions for product warranties (€4.7 billion; 2012:
€5.1 billion), for personnel and social costs (€3.2 billion;
2012: €2.7 billion) and for income taxes (€1.3 billion; 2012: €1.7
billion). The decrease in provisions mainly relates to provisions
for pensions and similar obligations and primarily reflects
the increase in discount rates, especially in Germany, where
they rose from 3.1% to 3.4%.
Financing liabilities of €77.7 billion were higher than a year
earlier (2012: €76.3 billion). The increase of €5.8 billion
after adjusting for exchange-rate effects is mainly the result
of the growing leasing and sales-financing business. Of the
total financing liabilities, 50% are accounted for by bonds, 25%
by liabilities to financial institutions, 14% by deposits in
the direct banking business and 8% by liabilities from ABS
transactions.
Due to the higher volume of business, trade payables
increased compared with the end of 2012 to €9.1 billion
(2012: €8.8 billion). The Mercedes-Benz Cars division accounts
for 60% of the payables and the Daimler Trucks division
accounts for 28%.
Other financial liabilities decreased by €0.2 billion to
€8.3 billion. They mainly consist of liabilities from residual-
value guarantees, security deposits received and liabilities
relating to wages and salaries, as well as derivative financial
instruments and accrued interest on financing liabilities.
Other liabilities of €7.0 billion primarily comprise deferred
taxes, tax liabilities and deferred income (2012: €5.7 billion).
The increase mainly resulted from deferred revenues from
multi-year service and maintenance agreements, increased
deferred tax liabilities relating to derivative financial instru-
ments, and pensions and similar obligations.
Further information on the assets presented in the statement
of financial position and on the Group’s equity and liabilities
is provided in the Consolidated Statement of Financial Position
 F.03, the Consolidated Statement of Changes in Equity
 F.05 and the related notes in the Notes to the Consolidated
Financial Statements.
Off-balance-sheet assets
In addition to the assets presented in the statement of financial
position, the Group uses to a small extent off-balance-sheet
assets within the framework of rental and leasing agreements.
Funded status of pension obligations
The funded status of the Group’s pension benefit obli-
gations, defined as the difference between the present value
of the pension obligations and the fair value of pension plan
assets, amounts to minus €8.6 billion at December 31, 2013,
compared with minus €9.7 billion at December 31, 2012.
At December 31, 2012, the present value of the Group’s pension
obligations amounted to €23.2 billion, compared with €23.9
billion a year earlier. The decrease resulted primarily from the
increase in discount rates, especially for the German and
US plans. As a result, actuarial losses from defined benefit
pension plans, which are recognized in equity under retained
earnings, decreased by €1.3 billion before taxes. The plan
assets available to finance the pension obligations increased
from €14.2 billion to €14.7 billion at December 31, 2013.
Further information on the effects on the statement
of financial position and the statement of income as well
as on pensions and similar obligations is provided in
E Note 1 and E Note 22 respectively of the Notes
to the Consolidated Financial Statements.