Chrysler 2008 Annual Report Download - page 49

Report on Operations Financial Review – Fiat Group48
Industrial Activities and Financial Services:
results for 2008
Following is a breakdown of the consolidated income statement,
balance sheet and cash flow statement between the Group’s
Industrial Activities and Financial Services. The latter include the
retail financing, leasing and rental companies of CNH – Case
New Holland, Iveco, Fiat Group Automobiles and Ferrari.
Financial Services activities also include Fiat Group
Automobiles Financial Services – FAFS (now FGA Capital), the
joint venture between Fiat Group Automobiles and Crédit
Agricole, and Iveco Finance Holdings Limited (the joint venture
between Iveco and Barclays) which are accounted for under the
equity method.
Basis of analysis
The segmentation between Industrial Activities and Financial
Services represents a sub-consolidation prepared on the basis
of the normal business activities carried out by each Group
company.
Investments held by companies belonging to one activity
segment in companies included in another segment are
accounted for using the equity method. To avoid a misleading
presentation of net profit, the results of investments accounted
for in this manner are classified in the income statement under
Result from Intersegment Investments.
The holding companies (Fiat S.p.A., FGI – Fiat Group
International S.A., Fiat Partecipazioni S.p.A., Fiat Netherlands
Holding N.V.) are classified under Industrial Activities.
The sub-consolidation of Industrial Activities also includes
companies that perform centralised treasury activities (i.e.,
raising funding in the market and financing Group companies).
These activities do not, however, include extension of
financing to third parties.