Chrysler 2005 Annual Report Download - page 137

136 Fiat Group Consolidated Financial Statements at D ecember 31, 2005 - N otes to the Consolidated Financial Statements
02 Fiat Group
An analysis of O ther payables by due date is as follows:
At December 31, 2005 At December 31, 2004
Due between Due between
Due within one and five Due beyond D ue within one and five D ue beyond
(in millions of euros) one year years five years Total one year years five years Total
O ther payables 3,819 879 123 4,821 3,749 723 89 4,561
Tax payables includes current income tax liabilities for 388 million euros (334 million euros at December 31, 2004)
The item Advances on buy-back agreements refers to agreements entered into by the Group during the year or which still remain effective at
the balance sheet date.An amount of 1,334 million euros regards assets included in Property, plant and equipment, with the balance of 837
million euros relating to inventories.
The item Advances on buy-back agreements represents the following:
at the date of the sale, the price received for the product is recognised as an advance in liabilities;
subsequently, since the difference between the original sales price and the repurchase price is recognised in the income statement as
operating lease instalments on a straight line basis over the lease term, the balance represents the remaining lease instalments yet to be
recognised in income plus the repurchase price.
The carrying amount of O ther payables is considered in line with their fair value at the balance sheet date.
31.Accrued liabilities and deferred income
The item Accrued liabilities and deferred income includes public investment grants recognised as income over the useful lives of the assets to
which they relate. Furthermore, the item comprises deferred income relating to service contracts, as well as accrued liabilities for costs that will
be settled in the following year.
32. Guarantees granted, commitments and contingent liabilities
Guarantees granted
At December 31, 2005 the Group had granted guarantees on the debt or commitments of third parties or associated entities totalling 1,198
million euros (2,360 million euros at December 31, 2004).An amount of 598 million euros of the decrease of 1,162 million euros is due to
lower guarantees granted on behalf of Sava S.p.A. for the bonds it has issued.
O ther commitments and important contractual rights
The Fiat Group has important commitments and rights deriving from outstanding agreements, summarised in the following.
Fidis Retail Italia (FRI)
The associated company Fidis Retail Italia S.p.A. (“FRI”) was set up to take over the European activities of the Automobile Sector in the area of
consumer financing for retail automobile purchases.To this end, the activities performed by various companies operating in different countries
in Europe were gradually sold to FRI after obtaining the necessary authorisations from the local regulatory agencies.As envisaged by the
Framework Agreement signed on May 27, 2002 by Fiat and the “Money Lending Banks” (Capitalia, Banca Intesa, SanPaolo IMI and later
Unicredit Banca), on May 27, 2003, the Fiat Group sold 51% of FRI’s shares and, as a result, the relative control, to Synesis Finanziaria S.p.A., an
Italian company held equally by the four Banks, at the price of 370 million euros, based upon the binding agreements signed by the parties at
that time.The sale contract calls for Put and Call options that can be summarised as follows: