Chrysler 2014 Annual Report Download - page 184

182 2014 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
6. Gains/(losses) on the disposal of investments
In 2014, the Group recognized net gains on the disposal of investments of €12 million.
In 2013, the Group recognized net gains on the disposal of investments of €8 million.
In 2012, the Group recognized a write-down of €91 million of the interest in Sevelnord Société Anonyme following its
reclassification to Assets held for sale and subsequent transfer during the first quarter of 2013.
7. Restructuring costs
Net restructuring costs amounting to €50 million in 2014 primarily related to restructuring provisions recognized in the
LATAM, EMEA and Components segments.
Net restructuring costs in 2013 amounted to €28 million and primarily related to restructuring provisions in other minor
business aggregated within Other activities for the purpose of segment reporting for €38 million, partially offset by the
release of a restructuring provision previously made by the NAFTA segment for €10 million.
Restructuring costs in 2012 amounted to €15 million and related to the EMEA segment for €43 million, the
Components segment and Other activities for €20 million, partially offset by the release of restructuring provisions
previously made by the NAFTA segment for €48 million.
For a more detailed analysis of Restructuring provisions, reference should be made to Note 26.
8. Other unusual income/(expenses)
For the year ended December 31, 2014, Other unusual expenses amounted to expenses of €639 million and primarily
related to the €495 million expense recognized in connection with the execution of the UAW MOU entered into by
FCA US on January 21, 2014, as described in the section —Acquisition of the Remaining Ownership Interest in FCA
US, above. In addition, Other unusual expenses also included €15 million related to compensation costs as a result of
the resignation of the former chairman of Ferrari S.p.A. and included a €98 million remeasurement charge recognized
as a result of the Group’s change in the exchange rate used to remeasure its Venezuelan subsidiary’s net monetary
assets in U.S. Dollar.
Based on first quarter 2014 developments related to the foreign exchange process in Venezuela, we changed the
exchange rate used to remeasure our Venezuelan subsidiary’s net monetary assets in U.S. Dollar as of March 31,
2014. As the official exchange rate is increasingly reserved only for purchases of those goods and services deemed
“essential” by the Venezuelan government, the Group began to use the exchange rate determined by an auction
process conducted by Venezuela’s Supplementary Foreign Currency Administration System (“SICAD”), referred to
as the “SICAD I rate”, as of March 31, 2014. Previously, the Group utilized the official exchange rate of 6.30 VEF
to U.S. Dollar. In late March 2014, the Venezuelan government introduced an additional auction-based foreign
exchange system, referred to as the “SICAD II rate”. The SICAD II rate had ranged from 49 to 51.9 VEF to U.S. Dollar
in the period since its introduction through December 31, 2014. The SICAD II rate is expected to be used primarily
for imports and has been limited to amounts of VEF that can be exchanged into other currencies, such as the U.S.
Dollar. As a result of the recent exchange agreement between the Central Bank of Venezuela and the Venezuelan
government and the limitations of the SICAD II rate, the Group believes any future remittances of dividends would be
transacted at the SICAD I rate. As a result, we determined that the SICAD I rate is the most appropriate rate to use. At
December 31, 2014, the SICAD I rate was 12.0 VEF to U.S. Dollar.