Chrysler 2007 Annual Report Download - page 181

180 Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
31. Accrued liabilities and deferred income
The item Accrued liabilities and deferred income includes public 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, 2007 the Group had outstanding guarantees granted on the debt or commitments of third parties or unconsolidated
subsidiaries jointly controlled and associated entities totalling 725 million euros, in line with the 2006 balance of 726 million euros.
Other commitments and important contractual rights
The Group has important commitments and rights deriving from outstanding agreements, summarised in the following.
Ferrari
Fiat has a call option exercisable from January 1 to July 31, 2008 on a further 5% of the Ferrari shares held by Mubadala
Development Company at a pre-determined price of 303 euros per share (amounting to a total of 121.2 million euros) less any
dividends that may be distributed.
Teksid
Fiat S.p.A. is subject to a put contract with Renault in reference to the original investment of 33.5% in Teksid, now 15.2%. In
particular, Renault would acquire the right to exercise a sale option to Fiat on its interest in Teksid, in the following cases:
■in the event of non-fulfilment in the application of the protocol of the agreement and admission to receivership or any other
redressement procedure;
■in the event Renault’s investment in Teksid falls below 15% or Teksid decides to invest in a structural manner outside the foundry
sector;
■should Fiat be the object of the acquisition of control by another car manufacturer.
The exercise price of the option is established as follows:
■for the original 6.5% of the capital stock of Teksid, the initial investment price as increased by a given interest rate;
■for the remaining amount of capital stock of Teksid, the share of the accounting net equity at the exercise date.
Sales of receivables
The Group has discounted receivables and bills without recourse having due dates after December 31, 2007 amounting to 7,044
million euros (5,697 million euros at December 31, 2006, with due dates after that date), which refer to trade receivables and other
receivables for 5,524 million euros (4,489 million euros at December 31, 2006) and receivables from financing for 1,520 million
euros (1,208 million euros at December 31, 2006). These amounts include receivables, mainly from the sales network, sold to
jointly-controlled financial services companies (FAFS) for 3,817 million euros (3,400 million euros at December 31, 2006) and
associated financial service companies (Iveco Financial Services, controlled by Barclays) for 869 million euros (661 million euros at
December 31, 2006).