Chrysler 2014 Annual Report Download - page 185

2014 | ANNUAL REPORT 183
For the year ended December 31, 2013, Other unusual expenses amounted to €686 million and primarily related to
write-downs totaling €272 million as a result of the rationalization of architectures associated with the new product
strategy, particularly for the Alfa Romeo, Maserati and Fiat brands; specifically, €226 million related to development
costs and €46 million to tangible assets. In addition, in relation to the expected market trends, the assets of the
cast-iron business in the Components segment (Teksid) were written down by €57 million. Moreover, there was a
€56 million write-off of the book value of the Equity Recapture Agreement Right considering the agreement closed
on January 21, 2014 to purchase the remaining ownership interest in FCA US from the VEBA Trust (as described
above). Other unusual charges also included a €115 million charge related to the June 2013 voluntary safety recall for
the 1993-1998 Jeep Grand Cherokee and the 2002-2007 Jeep Liberty, as well as the customer satisfaction action
for the 1999-2004 Jeep Grand Cherokee. This item also includes a €59 million foreign currency translation loss
related to the February 2013 devaluation of the official exchange rate of the Venezuelan Bolivar (“VEF”) relative to the
U.S. Dollar from 4.30 VEF per U.S. dollar to 6.30 VEF per U.S. Dollar. During the second and third quarter of 2013,
certain monetary liabilities, which had been submitted to the Commission for the Administration of Foreign Exchange
(“CADIVI”) for payment approval through the ordinary course of business prior to the devaluation date, were approved
to be paid at an exchange rate of 4.30 VEF per U.S. Dollar. As a result, €12 million in the second quarter of 2013 and
€4 million in the third quarter of 2013 of foreign currency transaction gains were recognized due to these monetary
liabilities being previously remeasured at the 6.30 VEF per U.S. Dollar at the devaluation date.
In 2012, Other unusual expenses, net were €138 million mainly including €145 million of costs arising from disputes
relating to operations terminated in prior years and costs related to the agreement with PSA Peugeot Citroën providing
for the transfer of the Group’s interest in the company Sevelnord Société Anonyme at a symbolic value.
In 2014, Other unusual income amounted to €249 million which primarily included €223 million related to the fair value
measurement of the previously exercised options for approximately 10 percent interest in FCA US that were settled in
connection with the acquisition of the remaining interest in FCA US as described in the section Changes in the Scope
of Consolidation, above.
In 2013, Other unusual income amounted to €187 million which primarily included the impacts of a curtailment gain
and plan amendments of €166 million with a corresponding net reduction to FCA US’s pension obligation. During the
second quarter of 2013, FCA US amended its U.S. and Canadian salaried defined benefit pension plans. The U.S.
plans were amended in order to comply with Internal Revenue Service regulations, cease the accrual of future benefits
effective December 31, 2013, and enhanced the retirement factors. The Canada amendment ceased the accrual of
future benefits effective December 31, 2014, enhanced the retirement factors and continued to consider future salary
increases for the affected employees. An interim remeasurement was required for these plans, which resulted in an
additional €509 million net reduction to the pension obligation, a €7 million reduction to defined benefit plan assets
and a corresponding €502 million increase in Total other comprehensive income/(loss).