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2014 | ANNUAL REPORT 201
Receivables from financing activities
Receivables from financing activities mainly relate to the business of financial services companies fully consolidated by
the Group (primarily related to dealer and retail financing).
At December 31,
2014 2013
(€ million)
Dealer financing 2,313 2,286
Retail financing 1,039 970
Finance leases 349 297
Other 142 118
Total Receivables from financing activities 3,843 3,671
Receivables from financing activities are shown net of an allowance for doubtful accounts determined on the basis of
specific insolvency risks. At December 31, 2014, the allowance amounts to €73 million (€119 million at December 31,
2013). Changes in the allowance accounts during the year were as follows:
At
December
31, 2013 Provision
Use and
other
changes
At
December
31, 2014
(€ million)
Allowance for Receivables from financing activities 119 69 (115) 73
At
January 1,
2013 Provision
Use and
other
changes
At
December
31, 2013
(€ million)
Allowance for Receivables from financing activities 101 89 (71) 119
Receivables for dealer financing are typically generated by sales of vehicles, and are generally managed under dealer
network financing programs as a component of the portfolio of the financial services companies. These receivables are
interest bearing, with the exception of an initial limited, non-interest bearing period. The contractual terms governing
the relationships with the dealer networks vary from country to country, although payment terms range from two to six
months.
Finance lease receivables refer to vehicles leased out under finance lease arrangements, mainly by the Ferrari and
Maserati segments. This item may be analyzed as follows, gross of an allowance of €10 million at December 31, 2014
(€5 million at December 31, 2013):
At December 31,
2014 2013
Due
within
one year
Due
between
one and
five
years
Due
beyond
five
years Total
Due
within
one year
Due
between
one and
five
years
Due
beyond
five
years Total
(€ million)
Receivables for future minimum lease
payments 110 281 8 399 104 223 8 335
Less: unrealized interest income (16) (24) — (40) (14) (18) (1) (33)
Present value of future minimum
lease payments 94 257 8 359 90 205 7 302