Chrysler 2008 Annual Report Download - page 156

Receivables from financing activities
Receivables from financing activities include the following:
(€ millions) At 31 December 2008 At 31 December 2007
Retail financing 6,593 6,601
Finance leases 885 690
Dealer financing 5,343 4,477
Supplier financing 88 104
Current financial receivables from jointly controlled financial services entities 381
Financial receivables from companies under joint control, associates and unconsolidated subsidiaries 80 152
Other 144 163
Total Receivables from financing activities 13,136 12,268
The increase of €868 million in Receivables from financing activities is principally due to the rise in loans disbursed by the
financial services companies.
Receivables from jointly controlled financial services entities include financial receivables due to Fiat Group entities by the FAFS
group.
Receivables from financing activities are shown net of an allowance for doubtful accounts determined on the basis of specific
insolvency risks. At 31 December 2008 the allowance amounts to €345 million (€339 million at 31 December 2007). Changes in the
allowance accounts during the year are as follows:
At At
31 December Use and 31 December
(€ millions) 2007 Provision other changes 2008
Allowance for receivables regarding:
- Retail financing 136 71 (56) 151
- Finance leases 91 7 (23) 75
- Dealer financing 52 21 (7) 66
- Supplier financing 9–(3)6
-Other 51 – (4) 47
Total allowance on Receivables from financing activities 339 99 (93) 345
Finance lease receivables mainly relate to vehicles of Trucks and Commercial Vehicles and Agricultural and Construction equipment
Sectors leased out under finance lease arrangements. The interest rate implicit in the lease is determined at the commencement of
the lease for the whole lease term. The average interest rate implicit in total finance lease receivables vary depending on prevailing
market interest rates.
Fiat Group Consolidated Financial Statements at 31 December 2008 155