Chrysler 2011 Annual Report Download - page 216

215
Consolidated
Financial Statements
at 31 December 2011
Payables represented by securities
At 31 December 2011, the item Payables represented by securities includes the VEBA Trust Note of €3,908 million, which represents Chrysler’s financial
liability to the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (“UAW”) Retiree Medical Benefits Trust
(“VEBA Trust”) having a face value of $4,836 million (€3,738 million). This financial liability was recognised by Chrysler in connection with the settlement of
obligations related to postretirement healthcare benefits for certain UAW retirees. The VEBA Trust Note has an implied interest rate of 9.0% and requires
annual payments of principal and interest through 15 July 2023.
At 31 December 2011, Chrysler’s Payables represented by securities also includes the Canadian Health Care Trust Notes totalling €820 million, which
represents Chrysler’s financial liability to the Canadian Health Care Trust arising from the settlement of postretirement health care benefits for represented
employees, retirees and dependants of Chrysler Canada Inc.’s National Automobile, Aerospace, Transportation and General Workers Union of Canada
(“CAW”). These notes were issued in four tranches maturing between 2012 and 2024.
Other
At 31 December 2011 the Fiat Group excluding Chrysler had outstanding financial lease agreements for certain Property, plant and equipment whose overall
net carrying amount totals €297 million (Note 16). At 31 December 2010 the corresponding balance was €322 million.
At 31 December 2011, payables for finance leases amounted to €486 million and may be analysed as follows:
At 31 December 2011 At 31 December 2010 (*)
(€ million)
due within
one year
due within
one year
due between
one and five
years Total Total
due between
one and five
years
due beyond
five years Total
Minimum future lease payments 80 286 238 604 48 113 129 290
Interest expense (22) (69) (27) (118) (1) (3) - (4)
Present value of minimum lease payments 58 217 211 486 47 110 129 286
(*) The amounts relate to Continuing Operations.
As discussed in Note 16, finance lease payables also relate to suppliers’ assets recognised in the consolidated financial statements in accordance with
IFRIC 4.