Chrysler 2010 Annual Report Download - page 268

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36. Explanatory notes to the Statement of Cash Flows
The Statement of cash flows sets out changes in cash and cash equivalents during the year. As required by IAS 7 – Statement of Cash Flows, cash flows
are separated into operating, investing 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.
With respect to Continuing Operations, Other non-cash items of €89 million in 2010 (€114 million in 2009) include €134 million for the reversal of impairment
losses on assets recognised during the year (reversal of previously recognised impairment losses of €232 million in 2009). This item also includes a
€107 million gain in the mark-to-market value of two stock option-related equity swaps on Fiat shares (a €117 million gain in 2009). With respect to
Discontinued Operations, (Gains) losses on disposal of tangible and intangible assets and other non-cash items of €192 million in 2010 (€254 million in
2009) include €194 million for the reversal of impairment losses on assets recognised during the year (reversal of previously recognised impairment losses
of €241 million in 2009).
Overall, Cash flows for income tax payments net of refunds in 2010 amount to €724 million (€445 million in 2009).
Overall, interest of €1,727 million was paid and interest of €1,248 million was received in 2010 (interest of €1,363 million was paid in 2009 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 35.
Finally, on 10 June 2009 the Group acquired an initial 20% interest in Chrysler without the payment of cash: this transaction was therefore not included in
the statement of cash flows for 2009, other than for the effects arising from the payment of the transaction costs arising from the acquisition (legal expenses,
financial fees, etc.).
37. Non-recurring transactions and transactions resulting from unusual and/or abnormal operations
The Group did not perform any significant non-recurring transactions or transactions resulting from unusual and/or abnormal operations in 2010 as such are
defined by the Consob Communication of 28 July 2006.