Chrysler 2009 Annual Report Download - page 323

FIAT S.P.A.
STATUTORY
FINANCIAL
STATEMENTS AT
31 DECEMBER
2009
NOTES
322
Changes in provisions for employee benefits and other current provisions during 2008 were as follows:
At Utilisations and At
(€ thousand) 31 December 2007 Accruals Other changes 31 December 2008
Provision for employee bonuses 128 6,339 (121) 6,346
Total provisions for employee benefits and other current provisions 128 6,339 (121) 6,346
24. Trade payables
At 31 December 2009, trade payables totalled €156,249 thousand, a decrease of €61,986 thousand over 31 December 2008, and consisted of the
following:
(€ thousand) At 31 December 2009 At 31 December 2008 Change
Trade payables to third parties 152,657 216,169 (63,512)
Intercompany trade payables for goods and services 3,592 2,066 1,526
Total trade payables 156,249 218,235 (61,986)
Trade payables to third parties are mainly due to CAV.E.T. and CAV. TO.MI. in relation to the work performed over the latter part of the year (see Note 15).
Trade payables are due within one year and their carrying amount at the balance sheet date is deemed to approximate their fair value.
25. Current financial liabilities
At 31 December 2009, current financial liabilities amounted to €156,712 thousand, representing a net decrease of €396,421 thousand over the previous
year end. The amounts related to:
(€ thousand) At 31 December 2009 At 31 December 2008 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 31,200 109,065 (77,865)
Accrued interest expense 65,121 65,989 (868)
Total financial payables to Group companies 96,321 238,976 (142,655)
Financial payables to third parties:
Advances on factored receivables 57,889 290,887 (232,998)
Other loans from factoring companies 2,502 23,270 (20,768)
Total financial payables to third parties 60,391 314,157 (253,766)
Total current financial liabilities 156,712 553,133 (396,421)
The amount under current account with Fiat Finance S.p.A., totalling €63,922 thousand at 31 December 2008, represented the overdraft on the current
account held with Fiat Finance S.p.A. as part of the Group’s centralised treasury management.
The item Payables to Fiat Netherlands Holding N.V. for derivative financial instruments, consisted of the fair value measurement of the second of the two
equity swaps on Fiat S.p.A. shares entered into with major banks by Fiat Netherlands Holding N.V., under instruction from Fiat S.p.A., to hedge against an
increase in the share price above the exercise price of the stock options granted to the company’s Chief Executive Officer in 2006, as described in Note 8.
The fair value of the above equity swap was determined on the basis of market quotations at the balance sheet date. As discussed previously in Note 16,
the fair value of both equity swaps at 31 December 2008 was negative and they were accordingly classified as a liability.
Advances on factored receivables relates to advances of €47,586 thousand on IRES receivable (see Note 17) and €10,303 thousand for amounts receivable
from T.A.V. S.p.A. for work completed on the Novara-Milan rail line (see Note 15).