Chrysler 2007 Annual Report Download - page 143

142 Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
At December 31, 2007 minimum lease payments from non-cancellable operating leases amount to 231 million euros (192 million
euros at December 31, 2006) and fall due as follows:
(in millions of euros) At December 31, 2007 At December 31, 2006
Within one year 93 81
Between one and five years 138 107
Beyond five years –4
Total Minimum lease payments 231 192
18. Inventories
(in millions of euros) At December 31, 2007 At December 31, 2006
Raw materials, supplies and finished goods 9,489 8,240
Gross amount due from customers for contract works 501 308
Total Inventories 9,990 8,548
At December 31, 2007, Inventories include assets sold with a buy-back commitment by Fiat Group Automobiles for 1,032 million
euros (894 million euros at December 31, 2006). Net of this amount, inventories show an increase of 1,304 million euros in 2007,
due primarily to an increase in the level of activities in all the main industrial Sectors of the Group.
At December 31, 2007, Inventories include inventories measured at their net realisable value (estimated selling price less the
estimated costs of completion and the estimated costs necessary to make the sale) amounting to 2,267 million euros (1,677 million
euros at December 31, 2006).
The amount of inventory write-downs recognised as an expense during 2007 is 428 million euros (386 million euros in 2006).
Amounts recognised as income from the reversal of write-downs on items sold during the year were not significant.
There were no inventories pledged as security at December 31, 2007 and 2006.
The majority of amount due from customers for contract work relates to the Production Systems Sector and can be analysed as
follows:
(in millions of euros) At December 31, 2007 At December 31, 2006
Aggregate amount of costs incurred and recognised profits (less recognised losses) to date 1,817 2,493
Less: Progress billings (1,699) (2,286)
Construction contracts, net of advances on contract work 118 207
Gross amount due from customers for contract work as an asset 501 308
Less: Gross amount due to customers for contract work as a liability included in Other payables (Note 30) (383) (101)
Construction contracts, net of advances on contract work 118 207
At December 31, 2007 and 2006, the amount of retentions by customers on contract work in progress was not significant.