Chrysler 2011 Annual Report Download - page 312

311
Fiat S.p.A. - Statutory
Financial Statements
at 31 December 2011
21. Non-current debt
At 31 December 2011, non-current debt totaled €2,162,892 thousand, a decrease of €398,550 thousand over 31 December 2010, and included the
following:
(€ thousand) 31 December 2011 31 December 2010 Change
Debt payable to Group companies 2,150,000 2,550,000 (400,000)
Financial guarantees 12,892 11,442 1,450
Total non-current debt 2,162,892 2,561,442 (398,550)
Debt payable to Group companies related to euro-denominated loans received from Fiat Finance S.p.A. in prior periods with original maturity over 12
months. Given the regular provision of medium/long-term financing by Fiat Finance S.p.A., which is typically renewed, amounts due within 12 months are
also included under non-current debt. Interest is payable on those loans at rates between 6.77% and 7.18%. Changes during the year included repayment
of a 6.85% fixed-rate loan for €400 million, disbursed on 24 May 2006 and maturing on 25 May 2011.
The breakdown of loans by maturity is as follows:
(€ thousand) 31 December 2011
Maturing in 2012 1,150,000
Maturing in 2013 1,000,000
Total debt payable to Group companies 2,150,000
The fair value of these loans at 31 December 2011 was €2,163 million and was calculated using market rates of interest appropriately adjusted to reflect
the credit spreads applicable to Fiat at the balance sheet date.
The item financial guarantees represents the fair value of the liabilities assumed in relation to guarantees issued. Following an assessment of potential risks
requiring recognition of contingent liabilities and given that those liabilities essentially related to guarantees provided on loans to Group companies, the
present value of fees receivable (see other financial assets in Note 12) is considered the best estimate of the fair value of those guarantees.
The breakdown by maturity date is as follows:
(€ thousand) 31 December 2011 31 December 2010
Financial guarantees
due within one year 3,920 3,593
due after one year but within five years 8,888 7,746
due beyond five years 84 103
Total 12,892 11,442