Chrysler 2014 Annual Report Download - page 236

234 2014 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
At December 31, 2013 the item Payables represented by securities primarily related to the balance of FCA US’s
financial liability to the VEBA Trust (the “VEBA Trust Note”) of €3,575 million including accrued interest. The VEBA
Trust Note had been issued by FCA US in connection with the settlement of its obligations related to postretirement
healthcare benefits for certain UAW retirees. The VEBA Trust Note had an implied interest rate of 9.0 percent and
required annual payments of principal and interest through July 15, 2023. The proceeds of the February 7, 2014
issuances of the Secured Senior Notes were used to prepay all amounts outstanding of approximately $5.0 billion
(€3.6 billion) under the VEBA Trust Note, which included a principal payment of $4,715 million (€3,473 million) and
interest accrued through February 7, 2014. The $4,715 million (€3,473 million) principal payment consisted of $128
million (€94 million) of interest that was previously capitalized as additional debt with the remaining $4,587 million
(€3,379 million) representing the original face value of the note.
Asset-backed financing
Asset-backed financing represents the amount of financing received through factoring transactions which do not
meet IAS 39 derecognition requirements and are recognized as assets in the Consolidated statement of financial
position under Current receivables and other current assets (Note 18). Asset-backed financing decreased by €287
million in 2014.
At December 31, 2014, debt secured by assets of the Group (excluding FCA US) amounts to €777 million (€432
million at December 31, 2013), of which €379 million (€386 million at December 31, 2013) was due to creditors
for assets acquired under finance leases and the remaining amount mainly related to subsidized financing in Latin
America. The total carrying amount of assets acting as security for loans amounts to €1,670 million at December 31,
2014 (€418 million at December 31, 2013).
At December 31, 2014, debt secured by assets of FCA US amounts to €9,881 million (€5,180 million at
December 31, 2013), and includes €9,093 million (€4,448 million at December 31, 2013) relating to the Secured
Senior Notes and the Senior Credit Facilities and €251 million (€165 million at December 31, 2013) due to creditors
for assets acquired under finance leases and other debt and financial commitments for €537 million (€567 million at
December 31, 2013).
In addition, at December 31, 2014 the Group’s assets include current receivables to settle Asset-backed financing of
€469 million (€756 million at December 31, 2013).
Other debt
At December 31, 2014, payables for finance leases amount to €630 million and may be analyzed as follows:
At December 31,
2014 2013
Due
within
one
year
Due
between
one and
three
years
Due
between
three
and
five
years
Due
beyond
five
years Total
Due
within
one
year
Due
between
one and
three
years
Due
between
three
and
five
years
Due
beyond
five
years Total
(€ million)
Minimum future lease payments 114 209 188 243 754 82 151 133 270 636
Interest expense (33) (51) (31) (9) (124) (20) (31) (21) (13) (85)
Present value of minimum
lease payments 81 158 157 234 630 62 120 112 257 551
At December 31, 2014, the Group (excluding FCA US) had outstanding financial lease agreements for certain
Property, plant and equipment whose overall net carrying amount totals €383 million (€394 million at December 31,
2013) (Note 15). As discussed in Note 15, finance lease payables also relate to suppliers’ assets recognized in the
Consolidated financial statements in accordance with IFRIC 4.