Chrysler 2011 Annual Report Download - page 125

124 Report on
Operations
Working capital was a negative €253 million and consisted of trade receivables/payables, other receivables/payables (from/to tax authorities, employees,
etc.), contract work in progress net of advances, and provisions for the period. The €152 million decrease over 31 December 2010 was essentially due to
recognition of a liability associated with the obligation to service a portion of the stock option and stock grant plans through delivery of Fiat Industrial shares,
as well as a change in the net receivable/payable position with subsidiaries related to consolidated taxes (IRES).
Equity totaled €9,053 million at 31 December 2011, a net decrease of €3,651 million over 31 December 2010, mainly attributable to the effects of the
demerger on 1 January 2011 (€3,750 million) and dividend payments (€152 million), which were partially offset by profit for the year (€99 million) and
recognition of the Fiat Industrial shares allotted 1-for-1 to Fiat in relation to own shares held (pursuant to the demerger), net of the liability associated with
the obligation to service a portion of the stock option and stock grant plans through delivery of a portion of the Fiat Industrial shares held.
A more detailed analysis of changes in equity is provided in the statutory financial statements for Fiat S.p.A.
Net debt totaled €2,863 million at 31 December 2011, a reduction of €908 million over year-end 2010 primarily due to the effects of the demerger, net of
the recapitalization of certain subsidiaries and other cash flows. Net debt consisted of the following:
(€ million) 31.12.2011 31.12.2010
Current financial assets, cash and cash equivalents (375) (312)
Current financial liabilities 1,075 295
Non-current financial liabilities 2,163 2,561
Net debt to be demerged -1,227
NET DEBT/(CASH) 2,863 3,771
Current financial assets at 31 December 2011 consisted mainly of cash balances held with the subsidiary Fiat Finance S.p.A. and other amounts receivable
from Fiat Finance S.p.A. relating to the positive fair value of two equity swaps on Fiat and Fiat Industrial ordinary shares.
Current financial liabilities at 31 December 2011 primarily consisted of a short-term loan in the amount of €1,000 million provided at market rates of interest
by Fiat Finance S.p.A. and other amounts payable to Fiat Finance S.p.A. relating to the negative fair value of the remaining equity swaps on Fiat and Fiat
Industrial ordinary shares, in addition to advances on factored receivables.
Non-current financial liabilities consisted almost entirely of loans from Fiat Finance S.p.A., at market rates of interest, which are repayable in 2012 and 2013.
On 31 December 2010, net debt to be demerged consisted of €1,440 million in loans – current and non-current – from Fiat Finance S.p.A., net of current
financial assets of €213 million representing current account balances held with Fiat Finance S.p.A.
A more detailed analysis of cash flows is provided in the statutory financial statements for Fiat S.p.A.
Financial
Review –
Fiat S.p.A.