daimler-ir-interimreport-q1-2020

E | INTERIM CONSOLIDATED FINANCIAL STATEMENTS 45
Treasury shares
By resolution of the Annual Shareholders’ Meeting on April 1,
2015, the Company was authorized until March 31, 2020 to
acquire treasury shares in a volume up to 10% of the share capital
issued as of the day of the resolution to be used for all legal
purposes. The shares could be used, amongst other things
excluding shareholders’ subscription rights, for business combinations
or to acquire companies or to be sold to third parties
for cash at a price that is not significantly lower than the stockexchange
price of the Company’s shares. The acquired shares
could also be used to fulfill obligations from issued convertible
bonds and/or bonds with warrants and to be issued to employees
of the Company and employees and board members of the
Company’s affiliates pursuant to Sections 15 et seq. of the German
Stock Corporation Act (AktG). The treasury shares could
also be canceled.
The Board of Management was also authorized, with the consent
of the Supervisory Board, to exclude shareholders’ subscription
rights in other defined cases. In a volume up to 5% of
the share capital issued as of the day of the resolution of the
Annual Shareholders’ Meeting, the Company was also authorized
to acquire treasury shares also by using derivatives
(put options, call options, forward purchases or a combination
of these instruments), whereby the term of a derivative was
not to exceed 18 months and had to end not later than March
31, 2020.
This authorization has not been exercised.
Employee share purchase plan
In the first quarter of 2020, 1.1 million (2019: 0.8 million)
Daimler shares were purchased pursuant to Section 71 Subsection
1 No. 2, of the German Stock Corporation Act (AktG)
without utilizing the authorization to acquire treasury shares
granted by the Annual Shareholders’ Meeting on April 1, 2015,
to be reissued to employees in connection with employee
share purchase plans. The shares were reissued on March 25,
2020.
14. Pensions and similar obligations
Development of funded status
The funded status of pension obligations is shown in table
E.17. The decrease in the present value of defined benefit
obligations results from the significant increase in the discount
rates. This effect is partially offset by the negative development
of the return on plan assets.
Pension cost
The components of pension cost included in the Consolidated
Statement of Income are shown in table E.18.
Contributions to pension plan assets
In the first three months of 2020, contributions by Daimler to
the Group’s pension plan assets amounted to €91 million
(2019: €42 million).
E.17
Development of funded status
In millions of euros
March 31,
2020
Dec. 31,
2019
Present value of the defined
benefit obligation -32,611 -36,195
Fair value of plan assets 25,083 27,760
Funded status -7,528 -8,435
thereof recognized in other assets 183 83
thereof recognized in provisions
for pensions and similar obligations -7,711 -8,518
Dividend
At the Annual Shareholders’ Meeting to be held on July 8,
2020, the proposal is to be made to pay out a dividend of €963
million (€0.90 per dividend-entitled no-par-value share; 2019:
€3,477 million and €3.25 per share) of the distributable profit
for the year 2019 of Daimler AG (separate financial statements).
E.18
Pension cost
Q1 2020 Q1 2019
Total
German
plans
Non-
German
plans
Total
German
plans
Non-
German
plans
In millions of euros
Current service cost -199 -171 -28 -174 -150 -24
Net interest expense -28 -19 -9 -32 -23 -9
Net interest income 1 - 1 1 - 1
-226 -190 -36 -205 -173 -32