Daimler Annual Report 2011 - Alle jaarverslagen

7 | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
Tata Motors. In March 2010, the Group sold its equity interest
of approximately 5% in Tata Motors Limited to various groups
of investors through the capital market. This transaction resulted
in a cash inflow of €303 million and a gain before income
taxes of €265 million in 2010. The gain is included in “other
financial income/expense, net” in the consolidated statement
of income and in the reconciliation from total segments’
EBIT to Group EBIT within the segment reporting.
4. Revenue
Table 7.09 shows the composition of revenue at Group
level.
Revenue by segment 7.84 and region 7.86 is presented
in Note 32.
5. Functional costs
Cost of sales. Items included in cost of sales are displayed
in table 7.10.
Selling expenses. In 2011, selling expenses amounted
to €9,824 million (2010: €8,861 million). Selling expenses
include direct selling costs as well as selling overhead
expenses and consist of personnel expenses, material costs
and other selling costs.
General administrative expenses. General administrative
expenses amounted to €3,855 million in 2011 (2010:
€3,474 million) and comprise expenses which were not attributable
to production, sales, research and development functions,
including personnel expenses, depreciation and amortization
on fixed and intangible assets, and other administrative costs.
Research and non-capitalized development costs.
Research and non-capitalized development costs were
€4,174 million in 2011 (2010: €3,476 million) and
primarily comprise personnel expenses and material costs.
Daimler Trucks. The optimization programs at our subsidiaries
Daimler Trucks North America and Mitsubishi Fuso Truck
and Bus Corporation, which the Group initiated in 2008 and
2009, respectively, were almost completed and did not
materially affect the 2011 consolidated financial statements.
In 2010, total expenses recorded in this regard amounted
to €40 million; the cash outflow was €171 million.
Expenses associated with the aforementioned programs
are primarily included in general administrative expenses.
7.09
Revenue
In millions of euros
2011 2010
Sales of goods 94,274 84,573
Rental and leasing business 9,014 9,971
Interest from the financial services business
at Daimler Financial Services 2,893 2,862
Sales of services 359 355
106,540 97,761
7.10
Cost of sales
In millions of euros
2011 2010
Expense of goods sold -73,335 -66,956
Depreciation of equipment on operating leases -3,370 -3,404
Refinancing costs at Daimler Financial Services -1,849 -2,021
Impairment losses on receivables from
financial services -417 -536
Other cost of sales -2,052 -2,071
-81,023 -74,988
Amortization expense of capitalized development costs
is recognized in cost of sales and amounted to €829 million
in 2011 (2010: €719 million).
Optimization programs. Measures and programs with
implementation costs that materially impacted EBIT of the
segments are briefly described below:
Daimler Financial Services. In May 2010, the Board of
Management decided to restructure the business activities
of Daimler Financial Services AG and Mercedes-Benz
Bank AG in Germany by the end of 2012. Among other effects,
this repositioning will result in streamlined structures and
simplified processes. Expenses recorded in this regard in 2010
amounted to €82 million and primarily relate to personnel
measures. In 2011, these measures resulted in cash outflows
of €25 million (2010: €6 million). As of December 31, 2011,
the provision recognized amounts to €56 million (2010: €76
million). Furthermore, ongoing expenditures negatively
affected earnings in 2011.
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