Chrysler 2011 Annual Report Download - page 162

161
Consolidated
Financial Statements
at 31 December 2011
Goodwill arising from the acquisition was determined at the end of the measurement period as follows:
At the Acquisition date
($ million) (€million)
Consideration paid for the acquisition of the additional 16% ownership interest + 1,268 881
Fair value of the previously held ownership interest (30%) + 2,487 1,729
Value attributed to non-controlling interests + 4,477 3,112
Net assets acquired /(net liabilities assumed) - (4,169) (2,899)
Goodwill = 12,401 8,621
The goodwill is primarily attributable to the favourable earnings expectations for Chrysler, set out in the 2010-2014 business plan
presented in November 2009 by Chrysler and validated by subsequent results, in addition to synergies achievable through increased
integration with Fiat. The final amount for goodwill reflects the above-mentioned measurement period adjustment of $814 million
(€567 million) to the provisional amounts for deferred tax liabilities.
Fiat’s contractual right to receive an additional 5% ownership interest in Chrysler on the occurrence of the Ecological Event,
previously recognised in the Consolidated financial statements at zero, was recognised under Other investments and financial assets
at fair value at the date of acquisition of control. The resulting gain of €288 million ($415 million) has been recognised in the income
statement as Unusual income/(expense). Fair value was also based on the above-stated fair value of Chrysler’s equity of $8,290
million (€5,763 million).
The consideration paid excludes costs relating to the acquisition of control totalling approximately €5 million, which have been
recognised in profit or loss as Unusual income/(expense).
The consideration paid for this acquisition and the related net cash flows were as follows:
At the Acquisition date
($ million) (€million)
Consideration paid 1,268 881
Consideration due - -
Total Consideration paid 1,268 881
Net cash outflows/(inflows) on acquisition:
Consideration paid 1,268 881
Cash and cash equivalents acquired (9,358) (6,505)
Total Net cash outflows/(inflows) on acquisition (8,090) (5,624)
With respect of the amount of the identifiable assets acquired, the receivables, which principally consisted of trade receivables had
a fair value of $1,765 million (€1,227 million) and had gross contractual amounts of $1,850 million (€1,286 million), of which $85
million (€59 million) were expected to be uncollectible.
Chrysler is subject to various legal proceedings, claims and governmental investigations pending on a wide range of topics, including:
vehicle safety; emissions and fuel economy; dealer, supplier and other contractual relationships; intellectual property rights; and
product warranties and environmental matters where the risk of loss is not probable. These contingent liabilities were not recognised
as their acquisition date fair value could not be reliably measured due to the uncertainty in the timing and the amount, or ranges of
amounts, at which these contingencies may ultimately be settled. Other matters, where the risk of loss is probable and the timing
and amount of potential obligation is reliably estimable, have been recognised at their acquisition date fair value as a component of
Provisions for risks and charges.