Chrysler 2012 Annual Report Download - page 150

149
Consolidated
Financial Statements
at 31 December 2012
The Equity Recapture Agreement: which provides Fiat the rights to the economic benefit associated with the membership interests
held by the VEBA Trust once the VEBA Trust receives proceeds, including certain distributions, in excess of $4.25 billion plus 9% per
annum from 1 January 2010 (“Threshold Amount”). Once the VEBA Trust receives the Threshold Amount, any additional proceeds
payable to the VEBA Trust for the Chrysler membership interests and any membership interests retained by the VEBA Trust are to
be transferred to Fiat for no further consideration. In addition, Fiat has the right to acquire VEBA Trust’s entire membership interest
in Chrysler at a price equivalent to the specified Threshold Amount, less any proceeds already received by the VEBA Trust on that
interest (see Note 32).
In accordance with paragraph AG81 of IAS 39 – Financial Instruments: recognition and measurement, both of these have been
recognised in the Consolidated financial statements at cost, since (i) the variability in the range of reasonable fair value estimates is
significant for these instruments and (ii) the probabilities that are used to weight the various estimates in the range of fair values cannot
be reasonably established and used in estimating fair value.
For a more detailed description of the acquisition of control of Chrysler reference should be made to the Note -Investment in Chrysler
in the Consolidated Financial Statements at 31 December 2011.
Other acquisitions or disposals
No significant subsidiaries were acquired or disposed of in 2012. As discussed above during the year, the Group acquired additional
interests in Chrysler with the following cash outflows:
Purchased interest
(in %)
Cash outflows
on acquisition
(€ million)
Chrysler Group LLC 5% 0
During 2011, the Group, after having obtained a controlling interest, acquired additional non-controlling interests in Chrysler as well as
the investment in the joint venture VM Motori with the following cash outflows:
Purchased interest
(in %)
Cash outflows
on acquisition
(€ million)
Chrysler Group LLC 7.5% (438)
VM Motori S.p.A. 50.0% (34)
Finally, the Group has disposed of certain minor investments during 2011, including a minor subsidiary of the Ferrari sector that was
been classified as an asset held for sale during the third quarter of 2011 and the investment in Fiat Switzerland that was sold to the
Fiat Industrial group.