Mercedes 2015 Annual Report Download - page 242

E | CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 249
Beginning in June 2006, the Federal Republic of Germany
began reducing monthly payments to Toll Collect GmbH
by €8 million in partial set-off against amounts claimed in the
arbitration proceedings referred to below. This offsetting
may require the consortium members to provide additional
operating funds to Toll Collect GmbH.
The operating agreement calls for the submission of all
disputes related to the toll collection system to arbitration.
The Federal Republic of Germany has initiated arbitration
proceedings against Daimler Financial Services AG, Deutsche
Telekom AG and the consortium. According to the statement
of claims received in August 2005, the Federal Republic of
Germany is seeking damages including contractual penalties
and reimbursement of lost revenue that allegedly arose
from delays in the operability of the toll collection system.
See Note 29 for additional information.
Each of the consortium members (including Daimler Financial
Services AG) has provided guarantees supporting the
obligations of Toll Collect GmbH towards the Federal Republic
of Germany relating to the completion and operation of the
toll collection system, which are subject to specific triggering
events. In addition, Daimler AG has guaranteed bank loans
obtained by Toll Collect GmbH. The guarantees are described
in detail below:
– Guarantee of bank loans. Daimler AG issued a guarantee
to third parties up to a maximum amount of €100 million for
bank loans which could be obtained by Toll Collect GmbH.
This amount represents the Group’s 50% share of Toll Collect
GmbH’s external financing guaranteed by its shareholders.
– Equity maintenance undertaking. The consortium members
have the obligation to contribute, on a joint and several basis,
additional funds to Toll Collect GmbH as may be necessary
for Toll Collect GmbH to maintain a minimum equity (based
on German Commercial Code accounting principles) of 15%
of total assets (a so-called “equity maintenance undertaking”).
This obligation will terminate on August 31, 2018, when
the extended operating agreement expires, or earlier if the
agreement is terminated. Such obligation may arise if
Toll Collect GmbH is subject to revenue reductions caused
by underperformance, if the Federal Republic of Germany
is successful in claiming lost revenue against Toll Collect GmbH
for any period the system was not fully operational, or if
Toll Collect GmbH incurs penalties that may become payable
under the above mentioned agreements. If such penalties,
revenue reductions or other events reduce Toll Collect GmbH’s
equity to a level below the minimum equity percentage
agreed upon, the consortium members are obligated to fund
Toll Collect GmbH’s operations to the extent necessary
to reach the required minimum equity.
Cofiroute’s risks and obligations are limited to €70 million.
Daimler Financial Services AG and Deutsche Telekom AG
are jointly obliged to indemnify Cofiroute for amounts exceed-
ing this limitation.
While Daimler’s maximum future obligation resulting from
the guarantee of the bank loan can be determined (2015:
€100 million), the Group is unable to reasonably estimate the
amount or range of amounts of possible loss resulting from
the financial guarantee in form of the equity maintenance
undertaking due to the various uncertainties described above,
although it could be material. Only the guarantee for the
bank loan is included in the above disclosures for financial
guarantees.
Obligations from product warranties and extended
product warranties are not included in the above disclosures.
See Note 23 for provisions relating to such obligations.
Other financial obligations
The composition of other financial obligations is shown
in table  E.66.
In connection with its production programs and the ongoing
expansion of its business activities, Daimler has signed addi-
tional agreements with suppliers in 2015 to purchase various
volumes of parts and components over extended periods.
The Group also has entered into further arrangements for the
provision of future services. In addition, the Group has committed
to purchase or invest in the construction and maintenance
of production facilities. At December 31, 2015, contractual com-
mitments for the acquisition of property, plant and equipment
amount to €2.2 billion.
E.66
Composition of other financial obligations
(nominal amounts)
At December 31,
2015 2014
In millions of euros
Commitments from purchasing contracts 13,371 9,769
Long-term rental and leasing agreements 2,156 2,157
Irrevocable credit commitments 1,931 1,320
Other miscellaneous financial commitments 1,518 2,318
18,976 15,564