Mercedes 2015 Annual Report Download - page 221

228 E | CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Other minor equity-method investments
The Group’s investment in Tesla Motors, Inc. (Tesla) was included
in other minor equity-method investments in associated
companies. Since the Annual Shareholders’ Meeting of Tesla
on June 3, 2014, no representative of Daimler has been a
member of Tesla’s board of directors. Therefore, Daimler’s signi-
ficant influence on Tesla ended on the day of the Annual
Shareholders’ Meeting and until the date of sale, the equity
interest was recognized as a “financial asset available for sale”
at fair value based on the stock-market price. The difference
between the first-time fair value measurement on June 3, 2014
using the stock-market price and the carrying amount
measured by applying the equity method resulted in a non-cash
gain of €718 million affecting Group EBIT in 2014. The carrying
amount, which was previously assigned to the Mercedes-Benz
Cars segment, and the remeasurement gain have been
reallocated as corporate items in the reconciliation of total
segments’ figures to Group figures in the segment reporting.
In 2015, an impairment of €17 million was recognized on an
investment allocated to the Mercedes-Benz Cars segment.
In addition, the equity-method results of the other minor
companies in 2014 included startup losses in the area of alter-
native drive systems of €34 million, which were allocated to
the Mercedes-Benz Cars segment. Impairments of investments
of €30 million were included in this amount.
Furthermore, the Group’s equity-method investments include
its interest in the joint venture Fujian Benz Automotive Co.,
Ltd. (FBAC), which is allocated to the Mercedes-Benz Vans
segment. In 2012, an impairment loss was recognized
on the investment in FBAC; in the second quarter of 2014, the
impairment was reversed based on improved profit expecta-
tions, leading to a gain of €61 million. FBAC received a capital
increase of €18 million in the second quarter of 2015.
In April 2014, Daimler provided a joint and separate liability
guarantee to external banks which provided a syndicate loan
to the joint venture Shenzen BYD Daimler New Technology Co.
Ltd. (SBDNT). The agreement was signed in April 2014. The
guarantee provided by Daimler amounts to RMB 750 million
(approximately €106 million as of December 31, 2015) and
equates to the Group’s share in the loan granted to SBDNT based
on its 50% equity interest in SBDNT. €94 million of this loan
had been utilized as of December 31, 2015. In December 2015,
Daimler decided to provide a shareholder loan to the joint
venture SBDNT of RMB 250 million (approximately €35 million).
€24 million of this loan had been utilized as of December 31,
2015. The carrying amount of the investment in SBDNT is
allocated to the Mercedes-Benz Cars segment.
In March 2014, Daimler acquired 50.1% of the shares in
Li-Tec Battery GmbH (Li-Tec), which had previously been held
by Evonik Degussa GmbH (Evonik), and therefore became
the sole owner of the company. The effects on the consolidated
financial statements were not material.
In 2015, Daimler disregarded losses in connection with equity-
method investments of €47 million (2014: €60 million) as
Daimler is not obliged to compensate these losses. The total of
disregarded losses adds up to €107 million (2014: €60 million).
Table  E.34 shows summarized aggregated financial
information for the other minor equity-method investments
after purchase price allocation and on a pro rata basis.
Further information on equity-method investments is provided
in Notes 3 and 36.
E.34
Summarized aggregated financial information on minor
equity-method investments
Associated companies Joint ventures
2015 2014 2015 2014
In millions of euros
Summarized aggregated financial information (pro rata)
Profit/loss from continuing operations after taxes 6–-84 -85
Profit/loss from discontinued operations after taxes ––––
Other comprehensive income/loss -7 7–1
Total comprehensive income/loss -1 7-84 -84