Chrysler 2013 Annual Report Download - page 174

173
Consolidated
Financial Statements
at 31 December 2013
As a result of an analysis of the classification of the Group’s assets arising from the data conversion connected to the implementation of a new
accounting information system for certain subsidiaries, the 2011 and 2012 amounts presented in this analysis for comparative purposes have
been reclassified to ensure comparability and consistency. A group of equipment previously classified within the item Other tangible assets is
now classified as Plant, machinery and equipment. This reclassification had no effect on the results, net assets and total of Property, plant and
equipment reported in the Statement of financial position.
Additions of €5,110 million in 2013 are primarily related to the car mass-market operations in NAFTA and EMEA region, as well as, to the
ongoing construction of the new LATAM plant in Pernambuco.
In 2013, €30 million of impairment losses are related to assets in the Cast Iron business unit of the Components segment as a result of an
expected reduction in these activities compared to the previous expectations, due to the increasing use of aluminum in the production of the
automotive engine blocks rather than cast iron. These impairments, which are due to a structural change in the market, were fully recognized
within Unusual expenses. The remaining impairment losses were related to the above mentioned streamlining of architectures and models
associated with the EMEA region’s refocused product strategy.
Changes in the scope of consolidation mainly reflects the consolidation of the VM Motori group from the 1st July 2013, as discussed in the
section Scope of consolidation.
In 2013, Exchange losses of €1,129 million mainly reflect the changes of the US Dollar and the Brazilian Real against the Euro. In 2012,
exchange losses of €364 million mainly reflected the depreciation of the US Dollar and the Brazilian Real against the Euro, partially offset by
the appreciation of the Polish Zloty against the Euro.
In 2013 Other changes primarily consisted of the reclassification of prior year balances for Advances and tangible assets in progress to the
respective categories when the assets were acquired and entered service. With reference to Land, Other changes also includes €214 million
which is the fair value of the land donated to Fiat by the State of Pernambuco (Brazil) at the end of the year following the Group commitment
to implement an industrial unit designed to produce, assemble and sell vehicles.
At 31 December 2013, Property, plant and equipment of the Fiat Group excluding Chrysler reported as pledged as collateral for loans, is mainly
related to assets that are legally owned by suppliers but are recognized in the consolidated financial statements in accordance with IFRIC 4
with the corresponding recognition of a financial lease payable. They were as follows:
(€ million) At 31 December 2013 At 31 December 2012
Land and industrial buildings of pledged as security for debt 102 31
Plant and machinery pledged as security for debt and other commitments 294 259
Other assets pledged as security for debt and other commitments 56
Property plant and equipment pledged as security for debt 401 296
The amount of Property, plant and equipment of Chrysler at 31 December 2013 is €11,975 million (€12,069 million at 31 December 2012).
Substantially all the Property, plant and equipment of Chrysler and its U.S. subsidiary guarantors are unconditionally pledged as securities for
certain debts of Chrysler (see Note 27).
At 31 December 2013, the Group had contractual commitments for the purchase of Property, plant and equipment amounting to €1,536
million (€919 million at 31 December 2012).