Chrysler 2009 Annual Report Download - page 236

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For the sake of completeness details of the consideration received in 2008 for the sales of other investments and the related net cash inflows are provided
as follows:
Total sales of Investments
in jointly controlled entities,
(€ million) associates and other companies
Consideration received:
Consideration due 73
Deferred sales proceeds, net (15)
Total Consideration received 58
Total Net cash inflows on disposals 58
Explanatory notes to the Statement of Cash Flows37.
The Statement of cash flows sets out the effects caused by changes in cash and cash equivalents during the year. As required by IAS 7 – Statement of Cash
Flows, cash flows are separated into operating, investment and financing activities. The effects of changes in exchange rates on cash and cash equivalents
are shown separately under the line item Translation exchange differences.
Cash flows from (used in) operating activities derive mainly from the Group’s main revenue producing activities.
The cash flows generated by the sale of vehicles under buy-back commitments, net of the amounts included in Profit/(loss) for the year, are included under
operating activities in a single line item which includes changes in working capital, capital expenditures, depreciation and impairment losses. This item also
includes gains and losses arising from the sales of vehicles transferred under buy-back commitments that occur before the end of the agreement term
without repossession of the vehicle.
Cash flows generated by operating lease arrangements are included in operating activities in a single line item which includes capital expenditures,
depreciation, impairment losses and changes in inventories.
Other non-cash items of €366 million in 2009 (€253 million in 2008) include €473 million for the reversal of impairment losses on assets recognised during
the year (reversal of previously recognised impairment losses of €8 million in 2008). This item also includes the reversal of a gain of €117 million arising from
the measurement at fair value of the equity swaps on Fiat shares (the reversal of a loss of €271 million in 2008).
Cash flows for income tax payments net of refunds in 2009 amounted to €445 million.
Interest of €1,363 million was paid and interest of €1,051 million was received in 2009.
Cash flows from (used in) investing activities represent the extent to which expenditures have been made for resources intended to generate future income
and cash flows. Only expenditures resulting in an asset recognised in the balance sheet are classified as investing activities in the statement of cash flows.
The consideration paid and received for the acquisition and disposal of subsidiaries is discussed in Note 36.
Finally, as discussed in the section Scope of consolidation, on 10 June 2009 the Group acquired an initial 20% interest in Chrysler Group LLC without the
payment of cash: this transaction is therefore not included in the statement of cash flows other than for the effects arising from the payment of the transaction
costs arising from the acquisition (legal expenses, financial fees, etc.).
Non-recurring transactions38.
No significant non-recurring operations as defined by Consob Communication of 28 July 2006, were carried out by the Group in 2009, other than the
purchase of the investment in Chrysler Group LLC, which however did not have any significant effects on the Group’s Statement of financial position and
financial situation, results or cash flows, as discussed in the section Scope of consolidation.