Chrysler 2008 Annual Report Download - page 194

Operating lease contracts
The Group enters into operating lease contracts for the right to use industrial buildings and equipments with an average term
of 10-20 years and 3-5 years, respectively. The total future minimum lease payments under non-cancellable lease contracts are 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
Future minimum lease payments under
operating lease agreements 88 201 162 451 64 122 128 314
During 2008, the Group has recorded costs for lease payments for €94 million (€67 million in 2007).
Contingent liabilities
As a global company with a diverse business portfolio, the Group is exposed to numerous legal risks, particularly in the areas
of product liability, competition and antitrust law, environmental risks and tax matters. The outcome of any current or future
proceedings cannot be predicted with certainty. It is therefore possible that legal judgments could give rise to expenses that are
not covered, or not fully covered, by insurers’ compensation payments and could affect the Group financial position and results. At
31 December 2008, contingent liabilities estimated by the Group amount to approximately €190 million (approximately €200 million
at 31 December 2007), for which no provisions have been recognised since an outflow of resources is not considered to be
probable. Furthermore, contingent assets and expected reimbursement in connection with these contingent liabilities for
approximately €20 million (€20 million at 31 December 2007) have been estimated but not recognised.
Instead, when it is probable that an outflow of resources embodying economic benefits will be required to settle obligations and
this amount can be reliably estimated, the Group recognises specific provision for this purpose.
Furthermore, in connection with significant asset divestitures carried out in prior years, the Group provided indemnities to
purchasers with the maximum amount of potential liability under these contracts generally capped at a percentage of the purchase
price. These liabilities primarily relate to potential liabilities arising from breach of representations and warranties provided in the
contracts and, in certain instances, environmental or tax matters, generally for a limited period of time. At 31 December 2008,
potential obligations with respect to these indemnities are approximately €877 million (approximately €866 million at 31 December
2007), against which provisions of €61 million (€58 million 31 December 2007) have been made, classified as Other provisions. The
Group has provided certain other indemnifications that do not limit potential payment; it is not possible to estimate a maximum
amount of potential future payments that could result from claims made under these indemnities.
Fiat Group Consolidated Financial Statements at 31 December 2008 193