Chrysler 2012 Annual Report Download - page 291

Notes
290 Fiat S.p.A.
Statutory
Financial
Statements
at 31 December
2012
In accordance with IFRS 2 and IAS 39, these liabilities were recognized at fair value upon initial recognition. In relation to the 2009 stock grant plan for the
CEO, the fair value of the liability was considered equivalent to the market value of Fiat Industrial shares. For the 2004 and 2006 stock option plans for the
CEO and the 2006 stock option plan for managers, fair value was based on a strike price which was considered equal to the par value of Fiat Industrial
shares. Subsequent to initial recognition, changes in fair value are recognized to profit or loss. Changes in fair value have resulted in a €30.3 million increase
in the liability, recognized through profit or loss, with a corresponding increase in the value of the investment in Fiat Industrial (see Note 11). Finally, the
utilization of the provision during the year in the amount of €26.5 million related to the assignment, in January 2012, of 4,000,000 ordinary shares to the
CEO which vested under the 2009 plan.
Other non-current provisions
At 31 December 2012, this item totaled €748 thousand (€929 thousand at 31 December 2011) and mainly relates to future amounts to be paid to
employees who left the Company in previous years under a long-term benefit program which bridges the period prior to retirement.
During 2011, changes in provisions for employee benefits and other non-current provisions were as follows:
(€ thousand)
31 December
2010 Accruals Utilizations Other changes
31 December
2011
Provisions for employee benefits and similar 19,051 1,279 (7,339) 1,840 14,831
Provisions for stock option and stock grant plans - 6,728 (3,483) 118,359 121,604
Other non-current provisions 1,021 - (92) - 929
Total provisions for employee benefits and other non-current provisions 20,072 8,007 (10,914) 120,199 137,364
20. Non-current debt
At 31 December 2012, non-current debt totaled €1,412,035 thousand, a decrease of €750,857 thousand over 31 December 2011, and included the
following:
(€ thousand) 31 December 2012 31 December 2011 Change
Debt payable to Group companies 1,400,000 2,150,000 (750,000)
Financial guarantees 12,035 12,892 (857)
Total non-current debt 1,412,035 2,162,892 (750,857)
Debt payable to Group companies related to euro-denominated loans received from Fiat Finance S.p.A. 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 6.52% and 7.18%. Changes during the year included a €400 million loan received on
30 March 2012 (due 31 March 2014) and repayment of a €400 million loan received 5 March 2010 (due 5 March 2012) and a €750 million loan received
23 June 2010 (due 22 June 2012).
By maturity, loans were as follows:
(€ thousand) 31 December 2012
Expiring in 2013 1,000,000
Expiring in 2014 400,000
Total debt payable to Group companies 1,400,000
The fair value of these loans at 31 December 2012 was €1,424 million and was calculated using market rates of interest appropriately adjusted to reflect
the credit spreads applicable to Fiat at the balance sheet date.