Chrysler 2008 Annual Report Download - page 309

25. Current financial payables
At 31 December 2008, current financial payables amounted to €553,133 thousand, up €258,438 thousand over 31 December 2007.
The balance can be analysed as follows:
At At
(€ thousands) 31 December 2008 31 December 2007 Change
Financial payables to Group companies:
- Current account with Fiat Finance S.p.A. 63,922 – 63,922
- Payables to Fiat Netherlands Holding N.V. for derivative financial instruments 109,065 – 109,065
- Accrued interest expense 65,989 73,687 (7,698)
Total Financial payables to Group companies 238,976 73,687 165,289
Financial payables to third parties:
- Advances on factored receivables 290,887 221,008 69,879
- Other loans from factoring companies 23,270 – 23,270
Total Financial payables to third parties 314,157 221,008 93,149
Total Current financial payables 553,133 294,695 258,438
The Current account with Fiat Finance S.p.A. represent the overdraft on the account held with that company as part of the Group’s
centralised treasury management.
The item Payables to Fiat Netherlands Holding N.V. for derivative financial instruments represented the fair value of two equity
swaps on Fiat shares taken out with leading banks by Fiat Netherlands Holding N.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
2004 and 2006, as reported in more detail in Note 8. As discussed previously in Note 16 the fair value of both equity swaps at 31
December 2007 was positive and was accordingly classified as an asset.
Advances on factored receivables relates to advances of €255,204 thousand on IRES receivable (see Note 17) and €35,683 thousand
for amounts receivable from T.A.V. S.p.A. for work completed on the Novara-Milan rail line (see Note 15).
The item Other loans from factoring companies relates to the residual liability for advances on receivables which had already been
repaid at the balance sheet date.
Current financial payables are denominated in euros. The carrying amounts are deemed to be in line with their fair value.
Fiat S.p.A. Statutory Financial Statements at 31 December 2008308