Chrysler 2014 Annual Report Download - page 197

2014 | ANNUAL REPORT 195
In 2014, €33 million of impairment losses are primarily related to the EMEA segment for certain powertrains that were
abandoned. In 2013, approximately €30 million of impairment losses 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 previous expectations,
due to the increasing use of aluminum in the production of the automotive engine blocks rather than cast iron.
These impairments, which were due to a structural change in the market, were fully recognized within Other unusual
expenses. The remaining impairment losses (€55 million) related to the above mentioned streamlining of architectures
and models associated with the EMEA segment’s refocused product strategy.
In 2014, translation differences of €1,466 million mainly reflect the strengthening of the U.S. Dollar against the Euro. In
2013, translation differences of €1,150 million primarily related to the changes of the U.S. Dollar and the Brazilian Real
against the Euro.
In 2014 and 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 in 2013 also includes €214 million which is the fair value of the land donated to the
Group by the State of Pernambuco (Brazil) following the Group’s commitment to implement an industrial unit designed
to produce, assemble and sell vehicles.
In 2013, changes in the scope of consolidation mainly reflect the consolidation of the VM Motori group resulting from
the acquisition of the remaining 50.0 per cent interest for consideration of €34 million.
The net carrying amount of assets leased under finance lease agreements included in Property, plant and equipment
were as follows:
At December 31,
2014 2013
(€ million)
Industrial buildings 84 87
Plant machinery and equipment 299 307
Property plant and equipment 383 394
Property, plant and equipment of the Group, excluding FCA US, reported as pledged as security for debt, assets that
are legally owned by suppliers but are recognized in the Consolidated financial statements in accordance with IFRIC
4 - Determining Whether an Arrangement Contains a Lease with the corresponding recognition of a financial lease
payable. They are as follows:
At December 31,
2014 2013
(€ million)
Land and industrial buildings pledged as security for debt 1,019 103
Plant and machinery pledged as security for debt and other commitments 648 310
Other assets pledged as security for debt and other commitments 35
Property plant and equipment pledged as security for debt 1,670 418
Information on the assets of FCA US subject to lien are set out in Note 27 in the Consolidated financial statements.
At December 31, 2014, the Group had contractual commitments for the purchase of Property, plant and equipment
amounting to €2,263 million (€1,536 million at December 31, 2013).