Chrysler 2014 Annual Report Download - page 237

2014 | ANNUAL REPORT 235
Restrictions in Relation to the Group’s Interest in FCA US
The Group is subject to several restrictions that limit its ability to access and use assets or settle liabilities in relation to
its interest in FCA US. Financing arrangements outstanding may limit the Group’s ability to allocate capital between
Group entities or may restrict its ability to receive dividends or other restricted payments from FCA US. In particular,
FCA’s existing syndicated credit facility currently imposes restrictions, with certain exceptions, that limit FCA’s
capability to extend guarantees or loans to FCA US, or subscribe equity to FCA US.
FCA US’s Senior Credit Facilities, are secured by a senior priority security interest in substantially all of FCA US’s
assets and the assets of its U.S. subsidiary guarantors, subject to certain exceptions. The collateral includes 100.0
percent of the equity interests in FCA US’s U.S. subsidiaries and 65.0 percent of the equity interests in certain of its
non-U.S. subsidiaries held directly by FCA US and its U.S. subsidiary guarantors. In addition, FCA US’s Secured
Senior Notes are secured by security interests junior to the Senior Credit Facilities in substantially all of FCA US’s
assets and the assets of its U.S. subsidiary guarantors, including 100.0 percent of the equity interests in FCA US’s
U.S. subsidiaries and 65.0 percent of the equity interests in certain of its non U.S. subsidiaries held directly by FCA
US and its U.S. subsidiary guarantors. In addition, these debt instruments include covenants that restrict FCA US’s
ability to make certain distributions or purchase or redeem its capital stock, prepay certain other debt, encumber
assets, incur or guarantee additional indebtedness, incur liens, transfer and sell assets or engage in certain business
combinations, enter into certain transactions with affiliates or undertake various other business activities as well as the
requirement to maintain borrowing base collateral coverage and a minimum liquidity threshold.
While the Senior Credit Facilities and Secured Senior Notes are outstanding, further distributions to FCA US will be
limited to 50.0 percent of FCA US’s consolidated net income (as defined in the agreements) from January 2012, less
the amount of the January 2014 distribution that was used to pay the VEBA Trust for the acquisition of the remaining
41.5 percent interest in FCA US not previously owned by FCA.
28. Trade payables
Trade payables due within one year of €19,854 million at December 31, 2014 increased by €2,647 million from
December 31, 2013. Excluding the foreign exchange translation effects, the increase of Trade payables amounted
to €1,512 million and mainly related to the increased production in the NAFTA and EMEA segments as a result of
increased consumer demand for our vehicles and increased capital expenditures.
29. Other current liabilities
Other current liabilities consisted of the following:
At December 31,
2014 2013
(€ million)
Advances on buy-back agreements 2,571 1,583
Indirect tax payables 1,495 1,304
Accrued expenses and deferred income 2,992 2,370
Payables to personnel 932 781
Social security payables 338 349
Amounts due to customers for contract work 252 209
Other 2,915 2,367
Total Other current liabilities 11,495 8,963