Chrysler 2011 Annual Report Download - page 314

313
Fiat S.p.A. - Statutory
Financial Statements
at 31 December 2011
24. Trade payables
At 31 December 2011, trade payables totaled €19,398 thousand, a net decrease of €21,613 thousand over 31 December 2010, and consisted of
the following:
(€ thousand) 31 December 2011 31 December 2010 Change
Trade payables to third parties 14,149 38,747 (24,598)
Trade payables to Group companies and other related parties for goods and services 5,249 2,264 2,985
Total trade payables 19,398 41,011 (21,613)
Trade payables to third parties primarily relate to amounts payable and approved for services and amounts due to CAV.E.T. and CAV.TO.MI. in relation to
the work performed over the latter part of the year (see Note 14).
Trade payables are due within one year and their carrying amount at the reporting date is deemed to approximate their fair value.
25. Current debt
At 31 December 2011, current debt totaled €1,075,432 thousand, representing a net increase of €780,840 thousand over 31 December 2010, and related to:
(€ thousand) 31 December 2011 31 December 2010 Change
Intercompany debt:
- Loans from Fiat Finance S.p.A. 1,000,000 100,000 900,000
- Liabilities arising from derivative financial instruments 19,969 - 19,969
- Accrued interest expense 30,777 47,507 (16,730)
Total intercompany debt 1,050,746 147,507 903,239
Debt payable to third parties:
- Debt relating to exercise of call option on Ferrari S.p.A. shares -122,399 (122,399)
- Advances on factored receivables 24,686 24,686 -
Total debt payable to third parties 24,686 147,085 (122,399)
Total current debt 1,075,432 294,592 780,840
Loans from Fiat Finance relates to financing in euros from Fiat Finance S.p.A. at fixed market rates and due the following year.
At 31 December 2011, liabilities arising from derivative financial instruments represents the fair value of the two equity swaps on Fiat and Fiat Industrial S.p.A.
shares entered into with major banks by Fiat Finance S.p.A., under instruction from Fiat S.p.A., to hedge against an increase in the share price above the
exercise price of the stock options granted to the Company’s Chief Executive Officer in 2006, as described in Note 7. The fair value of those equity swaps
was based on market quotations at the balance sheet date. At 31 December 2010, the fair value of the equity swaps was positive and, therefore, they were
recognized as an asset (see Note 15).
At 31 December 2010, “Debt relating to the exercise of call option on Ferrari S.p.A. shares”, totaling €122,399 thousand, related to the payable recognized
following exercise (in July 2010) of the call option on the 5% of Ferrari S.p.A.’s shares held by Mubadala Development Company PJSC (see Note 12). That
amount represented the exercise price paid by Fiat S.p.A. in March 2011 upon delivery of the shares.
Advances on factored receivables relates to advances on IRES receivable (see Note 16).
Current debt is denominated in euros. The carrying amount of that debt is deemed to be in line with its fair value.