Chrysler 2008 Annual Report Download - page 154

At 31 December 2008 minimum lease payments from non-cancellable operating leases amount to €320 million (€231 million at
31 December 2007) and fall due as follows:
(€ millions) At 31 December 2008 At 31 December 2007
Within one year 117 93
Between one and five years 182 138
Beyond five years 21 –
Total Minimum lease payments 320 231
18. Inventories
(€ millions) At 31 December 2008 At 31 December 2007
Raw materials, supplies and finished goods 11,135 9,489
Gross amount due from customers for contract works 211 501
Total Inventories 11,346 9,990
At 31 December 2008, Inventories include assets sold with a buy-back commitment by Fiat Group Automobiles for €845 million
(€1,032 million at 31 December 2007). Excluding this item, inventories increased by €1,543 million in 2008, mainly due to lower
activities in Iveco and CNH– Case New Holland.
At 31 December 2008, 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 €3,260 million (€2,267 million
at 31 December 2007).
The amount of inventory write-downs recognised as an expense during 2008 is €474 million (€428 million in 2007). 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 31 December 2008 and 2007.
The majority of amount due from customers for contract work relates to the Production Systems Sector and can be analysed as
follows:
(€ millions) At 31 December 2008 At 31 December 2007
Aggregate amount of costs incurred and recognised profits (less recognised losses) to date 1,462 1,817
Less: Progress billings (1,332) (1,699)
Construction contracts, net of advances on contract work 130 118
Gross amount due from customers for contract work as an asset 211 501
Less: Gross amount due to customers for contract work as a liability included
in Other current liabilities (Note 29) (81) (383)
Construction contracts, net of advances on contract work 130 118
At 31 December 2008 and 2007, the amount of retentions by customers on contract work in progress was not significant.
Fiat Group Consolidated Financial Statements at 31 December 2008 153