Chrysler 2011 Annual Report Download - page 80

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Statement of Cash Flows
Following is a summary statement of cash flows and related comments. A complete statement of cash flows is provided in the Consolidated Financial
Statements.
(€ million) 2011 2010
A) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 11,967 12,226
B) CASH FROM/(USED IN) OPERATING ACTIVITIES 5,195 6,110
of which: Cash and cash equivalents from operating activities of Discontinued Operations -2,537
C) CASH FROM/(USED IN) INVESTING ACTIVITIES (*) (858) (3,829)
of which: Cash and cash equivalents used in investing activities of Discontinued Operations -(443)
D) CASH FROM/(USED IN) FINANCING ACTIVITIES 632 787
of which: Cash and cash equivalents from financing activities of Discontinued Operations -2,084
Currency translation differences 590 359
E) NET CHANGE IN CASH AND CASH EQUIVALENTS 5,559 3,427
F) CASH AND CASH EQUIVALENTS 17,526 15,653
of which: Cash and cash equivalents included under Assets held for sale and Discontinued Operations -3,686
G) CASH AND CASH EQUIVALENTS AT END OF YEAR 17,526 11,967
(*) For 2011, includes €5,624 million in cash and cash equivalents from consolidation of Chrysler, net of €881 million (USD 1,268 million) paid to Chrysler for additional 16% ownership
interest. For 2010, the figure differs from the previously reported amount due to reclassification of the purchase consideration for the 5% interest in Ferrari S.p.A. to (purchases)/disposals
of ownership interests in subsidiaries (under Cash from/used in financing activities)
For 2011, cash generated by operating activities was €5,195 million, of which €1,751 million generated by Chrysler (consolidated from June 2011).
Excluding Chrysler, cash from operating activities totaled €3,444 million, of which €2,236 million was attributable to income-related cash inflows (i.e., net
profit plus amortization and depreciation, dividends, changes in provisions and various items related to vehicles sold under buy-back commitments, net of
gains/losses on disposals and other non-cash items) and €1,208 million to a decrease in working capital (at constant exchange rates).
Investing activities absorbed €858 million in cash, of which cash held by Chrysler at consolidation totaled €5,624 million (net of €881 million paid to
Chrysler for a 16% ownership interest). Excluding the impact of initial consolidation of Chrysler, investing activities absorbed a total of €6,482 million in cash.
Expenditure on tangible and intangible assets (including €1,438 million in capitalized development costs) totaled €5,528 million (of which €1,936 million
related to Chrysler for the period June-December).
Investments in subsidiaries and other equity interests of €142 million related primarily to the recapitalization of GAC Fiat Automobiles Co. Ltd. (a 50/50 JV
in China) and Fiat India Automobiles Limited (a 50/50 JV in India), as well as the acquisition of a 50% interest in VM Motori S.p.A.
Proceeds from the sale of non-current assets totaled €449 million for 2011, of which €252 million related to Chrysler (principally for disposals of tangible
and intangible assets). Excluding Chrysler, the amount related to the sale (in 2010) of FGA’s 49% interest in Iveco Latin America Ltda. and Fiat S.p.A.’s 100%
interest in Fiat Switzerland SA (both to Fiat Industrial), in addition to disposals of various fixed assets.
The increase in receivables from financing activities of €1,218 million largely related to FGA’s financial services companies in Latin America.
Financing activities generated approximately €0.6 billion in cash. Cash from financing activities – including €2.8 billion received from Fiat Industrial
for net financial receivables outstanding at 31 December 2010 and €2.5 billion in bond proceeds – was partially offset by repayment of €2.4 billion in
bond maturities, the net reduction of approximately €1.7 billion in debt (including transfer of approximately €1 billion in credit lines to Fiat Industrial as a
consequence of the Demerger), payment of €181 million in dividends (almost entirely to Fiat shareholders and minority shareholders of subsidiaries) and
€438 million for the purchase of the ownership interests held in Chrysler by the U.S. Treasury and Canada.
Report on Operations