Chrysler 2011 Annual Report Download - page 183

Consolidated
Financial
Statements
at 31 December
2011
Notes
182
Investments measured at fair value
At 31 December 2011, Investments at fair value with changes recognised directly in Other comprehensive income/(losses), include the investment in Fiat
Industrial S.p.A. for €104 million, the investment in Fin. Priv. S.r.l. for €10 million (€14 million at 31 December 2010), and the investment in Assicurazioni
Generali S.p.A. for €2 million (€3 million at 31 December 2010).
For the investment in Fiat Industrial S.p.A., on the Demerger, Fiat S.p.A. was allotted 38,568,458 ordinary shares in Fiat Industrial S.p.A., without
consideration, corresponding to the number of Treasury shares it held. Following this allotment, the portion of the cost of Treasury shares recognised in
equity and attributable to the Fiat Industrial S.p.A. shares, amounting to €368 million, was reclassified as an asset in the Statement of financial position.
This allocation was calculated on the basis of the weighting of the stock market prices of Fiat and Fiat Industrial shares on the first day of quotation of the
Fiat Industrial S.p.A. shares. At the same time, in accordance with IAS 39 and its interpretations, the investment was measured at fair value (€347 million)
with a corresponding entry made to Earnings Reserves. The investment is being measured at fair value following initial recognition.
In addition, as described in Note 25, with regard to the changes made to the outstanding stock option and stock grant plans outstanding at 31 December
2010, following the Demerger there were 23,021,250 Fiat Industrial ordinary shares allotted to Fiat S.p.A. that will service the above-mentioned plans and
were therefore considered linked to the liability for share-based payments recognised in the Statement of Financial Position as the result of changes to
the plans (see Note 25). As a consequence, the portion of the fair value measurement of the Fiat Industrial S.p.A. shares attributable to the shares that will
service the stock option and stock grant plans has been recognised in profit or loss, together with the effects of the remeasurement of the related liability.
The remaining Fiat Industrial shares outstanding (15,627,208 shares at 1 January 2011) are measured at fair value with changes recognised directly in
Other comprehensive income.
At 31 December 2011, the investment in Fiat Industrial S.p.A. consists of 38,215,333 ordinary shares (corresponding to 3.00% of the share capital of
the company), amounting to €253 million, of which 22,556,875 shares of Fiat Industrial S.p.A. will service the stock option and stock grant plans and
are therefore measured at fair value through profit or loss, for an amount of €149 million, and 15,658,458 shares are classified as available-for-sale and
measured at fair value through in Other comprehensive income/(losses), for an amount of €104 million.
At the date of this Annual Report the number of Fiat Industrial S.p.A. shares which will service the stock option and stock grant plans was reduced by
4,000,000 due to the assignment to the Chief Executive Officer of the shares vested under the 2009 Stock Grant Plan (see Note 25). As a result, at that
date the investment in Fiat Industrial S.p.A. consisted of 34,215,333 ordinary shares (corresponding to 2.7% of share capital).
Non-current financial receivables
Non-current financial receivables mainly consist of amounts held on deposit or otherwise pledged to secure obligations under various commercial
agreements, as well as standby letters of credit and other agreements. The increase over 31 December 2010 is mainly due to the consolidation of Chrysler.
Other securities and other financial assets
Other securities and other financial assets include €321 million ($415 million) relating to the value of Fiat’s contractual right to receive an additional 5%
ownership interest in Chrysler upon the occurrence of the Ecological Event in early January 2012, and relating to the value of the contractual rights arising
from the acquisition of the Equity Recapture Agreement for €58 million ($75 million).
18. Inventories
(€ million) At 31 December 2011 At 31 December 2010 (*)
Raw materials, supplies and finished goods 7,555 3,671
Assets sold with a buy-back commitment 1,394 637
Gross amount due from customers for contract work 174 135
Total Inventories 9,123 4,443
(*) The amounts relate to Continuing Operations.
At 31 December 2011, Raw material, supplies and finished goods amount to €7,555 million. Excluding the changes resulting from the initial consolidation
of Chrysler, totalling €3,050 million, Inventories rose by €834 million during 2011 (€750 million at unchanged exchange rates) mainly in connection with the
development of new production and sales activities in North America and Latin America.