Chrysler 2008 Annual Report Download - page 187

 Environmental risks - based upon currently available information, the reserve represents management’s best estimate of the
Group’s possible environmental obligations. Amounts included in the estimate comprise direct costs to be incurred in connection
with environmental obligations associated with current or formerly owned facilities and sites. This provision also includes costs
related to claims on environmental matters.
 Indemnities - the reserve for indemnities relates to contractual indemnities provided by the Group in connection with divestitures
carried out in 2008 and prior years. These liabilities primarily arise from indemnities relating to contingent liabilities in existence at
the time of the sale, as well as those covering any breach of the representations and warranties provided in the contract and, in
certain instances, environmental or tax matters. These provisions were determined estimating the amount of the expected outflow
of resources, taking into consideration the relevant level of probability of occurrence.
27. Debt
A breakdown of debt and an analysis by due date is as follows:
At 31 December 2008 At 31 December 2007
Due between Due between
Due within one and Due beyond Due within one and Due beyond
(€ millions) one year five years five years Total one year five years five years Total
Asset-backed financing 4,647 1,845 171 6,663 4,070 2,707 43 6,820
- Bonds 785 4,642 1,609 7,036 431 4,101 2,534 7,066
- Borrowings from banks 3,250 2,953 163 6,366 1,559 993 170 2,722
- Payables represented by securities 94 16 – 110 149 14 – 163
- Other 793 162 249 1,204 809 155 216 1,180
Total Other debt 4,922 7,773 2,021 14,716 2,948 5,263 2,920 11,131
Total Debt 9,569 9,618 2,192 21,379 7,018 7,970 2,963 17,951
The item Asset-backed financing represents the amount of financing received through both securitisation and factoring
transactions which do not meet IAS 39 derecognition requirements and is recognised as an asset in the balance sheet under the
item Receivables from financing activities (Note 19).
The bonds issued by the Group are governed by different terms and conditions according to their type as follows:
 Global Medium Term Note (GMTN Program) : a maximum of €15 billion may be used under this Program, of which notes of
approximately €5 billion have been issued to date; the Program is guaranteed by Fiat S.p.A. The issuer taking part in the program
is, among others, Fiat Finance & Trade Ltd. S.A. for an amount outstanding of €3,768 million. As a part of this Program, a new bond
having a nominal value of €1 billion was issued in 2007 by Fiat Finance North America Inc. at a price of 99.232 bearing fixed
interest at 5.625% and repayable on June 12, 2017.
 Other bonds : these refer to the following issues:
− a bond issued by Fiat Finance & Trade Ltd. S.A. having a nominal value of €1 billion, issued at par, bearing fixed interest at
6.625% and repayable on 15 February 2013.
Fiat Group Consolidated Financial Statements at 31 December 2008186