Chrysler 2011 Annual Report Download - page 211

Consolidated
Financial
Statements
at 31 December
2011
Notes
210
Commercial risks - this provision includes the amount of obligations arising in connection with the sale of products and services such as maintenance
contracts. An accrual is recorded when the expected costs to complete the services under these contracts exceed the revenues expected to be realised.
Environmental risks - This provision represents management’s best estimate of the Group’s probable environmental obligations. Amounts included in the
estimate comprise direct costs to be incurred by the Fiat Group in connection with environmental obligations associated with current or formerly owned
facilities and sites. This provision also includes costs related to claims on environmental matters.
Indemnities - the provision for indemnities relates to contractual indemnities provided by the Group in connection with divestitures carried out in 2011 and
prior years. These liabilities primarily arise from indemnities relating to contingent liabilities in existence at the time of the sale, as well as those covering any
possible breach of the representations and warranties provided in the contract and, in certain instances, environmental or tax matters. These provisions
were determined estimating the amount of the expected outflow of resources, taking into consideration the relevant level of probability of occurrence.
28. Debt
A breakdown of debt and an analysis by due date is as follows:
At 31 December 2011 At 31 December 2010 (*)
(€ million)
due within
one year
due between
one and
five years
due beyond
five years Total
due within
one year
due between
one and
five years
due beyond
five years Total
Asset-backed financing 688 19 3 710 498 29 6 533
Bonds 1,954 5,650 4,080 11,684 2,728 5,200 1,091 9,019
Borrowings from banks 2,042 2,705 2,836 7,583 3,430 3,068 159 6,657
Payables represented by securities 420 1,077 3,460 4,957 172 75 - 247
Other 969 453 416 1,838 1,001 228 254 1,483
Total Other debt 5,385 9,885 10,792 26,062 7,331 8,571 1,504 17,406
Total Debt 6,073 9,904 10,795 26,772 7,289 8,600 1,510 17,939
(*) The amounts relate to Continuing Operations.
Asset-backed financing represents the amount of financing received through both securitisation and factoring transactions which do not meet IAS 39
derecognition requirements and is recognised as an asset in the statement of financial position under Current receivables and other current assets (Note
19). Asset-backed financing increased by €177 million in 2011, this includes the effect of the consolidation of Chrysler (€93 million at the Acquisition date).
The increase in Other debt by €8,656 million in 2011 is mainly due to the initial consolidation of Chrysler’s debt (€9,402 million at the Acquisition date).
Excluding the consolidation of the Chrysler debt, Other debt fell by €746 million (a decrease of approximately €1,500 million at unchanged exchange rates).
The Group issued new bonds for €2,500 million during the year and repaid bonds on maturity for €2,448 million. Medium and long-term borrowings and
credit lines that were repaid (or transferred to the Fiat Industrial treasuries as a result of the Demerger) amount to €3,895 million; while medium and long-
term loans obtained by the Group during the year amounted to €2,149 million.
In addition, during the year, Fiat closed a syndicated credit line amounting to €1,950 million which is currently available only to the Fiat Group excluding
Chrysler. This credit line was undrawn at 31 December 2011.
At 31 December 2010 Other debt included amongst other things the debt of €122 million arising from exercising the call option on 5% of Ferrari share
capital.