Chrysler 2007 Annual Report Download - page 298

24. Current financial payables
At December 31, 2007, current financial payables amount to 294,695 thousand euros, down 1,332,735 thousand euros over
December 31, 2006. The balance can be analysed as follows:
At At
(in thousands of euros) December 31, 2007 December 31, 2006 Change
Financial payables to Group companies:
- Current account with Fiat Finance S.p.A. –426,538 (426,538)
- Loan from Fiat Finance S.p.A. –900,000 (900,000)
- Payables to Group companies for derivative financial instruments –10,315 (10,315)
- Accrued interest expense 73,687 68,701 4,986
Total Financial payables to Group companies 73,687 1,405,554 (1,331,867)
Financial payables to third parties:
- Advances on factored receivables 221,008 221,876 (868)
Total Financial payables to third parties 221,008 221,876 (868)
Total Current financial payables 294,695 1,627,430 (1,332,735)
The Current account with Fiat Finance S.p.A. at December 31, 2006 of 426,538 thousand euros represented the overdraft on the
account held with that company as part of the Group’s centralised treasury management.
The loan from Fiat Finance S.p.A. totalling 900,000 thousand euros at December 31, 2006 was obtained at the end of 2006 and was
reimbursed at maturity on February 26, 2007.
The item Payables to Group companies for derivative financial instruments totalling 10,315 thousand euros at December 31, 2006
consisted of the fair value of the hedging derivative financial instruments outstanding at that date and the fair value of one of the
two equity swaps on Fiat shares taken out with leading banks by Intermap (Nederland) B.V. under instruction from Fiat S.p.A. to
hedge the risk of a rise in the share price above the exercise price of the stock options granted to the company’s Chief Executive
Officer in 2006. As discussed previously in Note 15 the fair value of both equity swaps at December 31, 2007 was positive and is
accordingly classified as an asset.
Advances on factored receivables relate to IRES receivables (see Note 16).
Current financial payables are denominated in euros. Their carrying amount is deemed to be in line with their fair value.
Fiat S.p.A. Financial Statements at December 31, 2007 - Notes to the Financial Statements 297