Chrysler 2014 Annual Report Download - page 190

188 2014 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
The decision to recognize deferred tax assets is made for each company in the Group by critically assessing
whether conditions exist for the future recoverability of such assets by taking into account recent forecasts from
budgets and plans. At December 31, 2014, following the Group’s reorganization of its subsidiaries in the U.S and in
consideration of the projected positive results in the U.S. and other countries, additional deferred tax assets of €226
million have been recognized. The additional recognized deferred tax assets were offset by a write-down of €232
million deferred tax assets related to the projected spin-off of Ferrari. Despite a tax loss in the Group’s wholly-owned
consolidated Italian subsidiaries, the Group continued to recognize deferred tax assets of €799 million (€1,016 million
at December 31, 2013) as the Group expects future taxable income in future periods and based on the fact that tax
losses can be carried forward indefinitely.
At December 31, 2014, the Group had deferred tax assets on deductible temporary differences of €8,662 million
(€6,183 million at December 31, 2013), of which €480 million was not recognized (€435 million at December 31,
2013). At December 31, 2014, the Group also had theoretical tax benefit on losses carried forward of €4,696 million
(€3,810 million at December 31, 2013), of which €2,934 million was unrecognized (€2,891 million at December 31,
2013). At December 31, 2014, net deferred tax assets included the amount of €1,762 million in respect of benefits on
unused tax losses carry-forwards (€919 million at December 31, 2013).
Deferred taxes on the undistributed earnings of subsidiaries have not been recognized, except in cases where it is
probable the distribution will occur in the foreseeable future.
Total deductible and taxable temporary differences and accumulated tax losses at December 31, 2014, together with
the amounts for which deferred tax assets have not been recognized, analyzed by year of expiration, are as follows:
Year of expiration
Total at
December
31, 2014 2015 2016 2017 2018
Beyond
2017
Unlimited/
indeterminable
(€ million)
Temporary differences and tax losses
relating to corporate taxation:
Deductible temporary differences 26,777 8,540 2,113 1,742 1,876 12,506 —
Taxable temporary differences (19,119) (757) (1,873) (1,793) (1,834) (9,933) (2,929)
Tax losses 15,852 58 163 154 113 3,695 11,669
Amounts for which deferred tax
assets were not recognized (12,064) (487) (317) (171) (2) (1,176) (9,911)
Temporary differences and tax
losses relating to corporate taxation 11,446 7,354 86 (68) 153 5,092 (1,171)
Temporary differences and tax losses
relating to local taxation (i.e. IRAP in
Italy):
Deductible temporary differences 18,007 4,665 1,622 1,556 1,568 8,596 —
Taxable temporary differences (17,494) (485) (1,905) (1,868) (1,881) (8,404) (2,951)
Tax losses 3,401 3 5 41 75 2,573 704
Amounts for which deferred tax
assets were not recognized (1,052) (84) (36) (19) (15) (354) (544)
Temporary differences and tax
losses relating to local taxation 2,862 4,099 (314) (290) (253) 2,411 (2,791)
11. Other information by nature
Personnel costs in 2014, 2013 and 2012 amounted to €10,099 million, €9,471 million and €9,256 million,
respectively, which included costs that were capitalized mainly in connection with product development activities.
In 2014, FCA had an average number of employees of 231,613 (223,658 employees in 2013 and 208,835 employees
in 2012).