Chrysler 2014 Annual Report Download - page 213

2014 | ANNUAL REPORT 211
The FCA loyalty voting structure
The purpose of the loyalty voting structure is to reward long-term ownership of FCA common shares and to promote
stability of the FCA shareholder base by granting long-term FCA shareholders with special voting shares to which
one voting right is attached additional to the one granted by each FCA common share that they hold. In connection
with the Merger, FCA issued 408,941,767 special voting shares, with a nominal value of €0.01 each, to those eligible
shareholders of Fiat who had elected to participate in the loyalty voting structure upon completion of the Merger in
addition to FCA common shares. After closing of the Merger, an FCA shareholder may at any time elect to participate
in the loyalty voting structure by requesting that FCA register all or some of the number of FCA common shares held by
such FCA shareholder in the Loyalty Register. Only a minimal dividend accrues to the special voting shares allocated to
a separate special dividend reserve, and they shall not carry any entitlement to any other reserve of FCA. Having only
immaterial economics entitlements, the special voting shares do not impact the FCA earnings per share calculation.
With respect to cash flow hedges, in 2014 the Group reclassified losses of €106 million (gains of €190 million in 2013
and losses of €105 million in 2012), net of the tax effect, from Other comprehensive income/(loss) to Consolidated
income statement. These items are reported in the following lines:
For the years ended December 31,
2014 2013 2012
(€ million)
Currency risk
Increase/(Decrease) in Net revenues 53 126 (92)
Decrease in Cost of sales 11 44 25
Financial (expenses)/income (157) 22 32
Result from investments (13) 17 (12)
Interest rate risk
Increase in Cost of sales (2) (6) (6)
Result from investments (3) (4) (5)
Financial (expenses)/income (11) (10) (6)
Commodity price risk
Increase in Cost of sales (2) (1) (40)
Ineffectiveness - overhedge 45 (6)
Taxes expenses/(income) 14 (3) 5
Total recognized in the Consolidated income statement (106) 190 (105)
Fair value hedges
The gains and losses arising from the valuation of outstanding interest rate derivatives (for managing interest rate risk)
and currency derivatives (for managing currency risk) recognized in accordance with fair value hedge accounting and
the gains and losses arising from the respective hedged items are summarized in the following table:
For the years ended December 31,
2014 2013 2012
(€ million)
Currency risk
Net gains/(losses) on qualifying hedges (53) 19 14
Fair value changes in hedged items 53 (19) (14)
Interest rate risk
Net gains/(losses) on qualifying hedges (20) (28) (51)
Fair value changes in hedged items 20 29 53
Net gains/(losses) —1 2