Chrysler 2012 Annual Report Download - page 171

Notes
170 Consolidated
Financial
Statements
at 31 December
2012
Trade receivables
Trade receivables amount to €2,702 million at 31 December 2012 (€2,625 million at 31 December 2011). The total balance increased by €77 million over
that at 31 December 2011.
Trade receivables are shown net of allowances for doubtful accounts of €347 million at 31 December 2012 (€329 million at 31 December 2011). Changes
in these allowances, which are calculated on the basis of historical losses on receivables, were as follows in 2012:
(€ million)
At 31
December
2011 Provision
Use and
other
changes
At 31
December
2012
Allowances for doubtful accounts 329 61 (43) 347
The carrying amount of Trade receivables is considered in line with their fair value.
The amount of trade receivables of Chrysler at 31 December 2012 is €909 million (€667 million at 31 December 2011). Substantially all the trade receivables
of Chrysler Group LLC and its U.S. subsidiary guarantors are pledged as securities for certain debt outstanding (see Note 28).
Receivables from financing activities
Receivables from financing activities, which relate to the business of financial services companies fully consolidated by Fiat (dealer, retail, supplier financing
and finance lease) as well as financial receivables from jointly controlled financial services entities and from companies under joint control, associates and
unconsolidated, were as follows:
(€ million) At 31 December 2012 At 31 December 2011
Dealer financing 2,108 2,360
Retail financing 1,115 1,107
Finance leases 331 310
Financial receivables from jointly controlled financial services entities 58 21
Financial receivables from companies under joint control, associates and unconsolidated subsidiaries 56 61
Supplier financing 12 51
Other 47 58
Total Receivables from financing activities 3,727 3,968
Receivables from financing activities decreased by €241 million over the period. Excluding currency translation losses of €234 million (arising mainly from
the devaluation of the Brazilian Real against the Euro), the decrease amounts to €7 million.
Receivables from financing activities are shown net of an allowance for doubtful accounts determined on the basis of specific insolvency risks. At 31 December
2012, the allowance amounts to €101 million (€101 million at 31 December 2011). Changes in the allowance accounts during the year are as follows:
(€ million)
At 31
December
2011 Provision
Use and
other
changes
At 31
December
2012
Allowance for receivables regarding:
Retail financing 34 24 (15) 43
Finance leases 9 - (4) 5
Dealer financing 25 8 (13) 20
Supplier financing 2 - - 2
Other 31 - - 31
Total allowance on Receivables from financing activities 101 32 (32) 101