Chrysler 2014 Annual Report Download - page 246

244 2014 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
Change in working capital generated cash of €689 million for the year ended December 31, 2012 primarily driven by
(a) €506 million increase in trade payables, mainly related to increased production in response to increased consumer
demand of vehicles especially in the NAFTA and APAC segments, partially offset by reduced production and sales
levels in the EMEA segment, (b) €961 million in other current assets and liabilities, primarily due to increases in
accrued expenses, deferred income and taxes which were partially offset by (c) €572 million increase in inventory (net
of vehicles sold under buy-back commitments), primarily due to increased finished vehicle and work in process levels
at December 31, 2012 versus December 31, 2011, driven by an increase in vehicle inventory levels in order to support
consumer demand in the NAFTA and APAC segments and (d) €206 million increase in trade receivables, primarily due
to an increase in receivables from third party international dealers and distributors due to increased sales at the end of
2012 as compared to 2011 due to consumer demand.
Cash flows for income tax payments net of refunds amount to €542 million in 2014 (€429 million in 2013 and €475
million in 2012).
In 2014, net cash provided by financing activities was €2,137 million and was primarily the result of:
net proceeds from the issuance of the Mandatory Convertible Securities of €2,245 million, and the net proceeds
from the offering of the total 100 million common shares (65 million ordinary shares and 35 million of treasury
shares) of €849 million;
proceeds from bond issuances for a total amount of €4,629 million which includes (a) €2,556 million of notes
issued as part of the GMTN Program and (b) €2,073 million (for a total face value of U.S.$2,755 million) of Secured
Senior Notes issued by FCA US to facilitate the repayment of the VEBA Trust Note (see Note 27);
proceeds from new medium-term borrowings for a total of €4,876 million, which include (a) the incremental term
loan entered into by FCA US of U.S.$250 million (€181 million) under its existing tranche B term loan facility and
(b) the new U.S.$1,750 million tranche B (€1.3 billion), issued under a new term loan credit facility entered into by
FCA US as part of the refinancing transaction to facilitate repayment of the VEBA Trust Note, and new medium term
borrowing in Brazil; and
a positive net contribution of €548 million from the net change in other financial payables and other financial assets/
liabilities
These positive items, were partially offset by:
the cash payment to the VEBA Trust for the acquisition of the remaining 41.5 percent ownership interest in FCA
US held by the VEBA Trust equal to U.S.$3,650 million (€2,691 million) and U.S.$60 million (€45 million) of tax
distribution by FCA US to cover the VEBA Trust’s tax obligation. The special distribution by FCA US and the cash
payment by FCA NA for an aggregate amount of €2,691 million is classified as acquisition of non-controlling
interest on the Consolidated statement of cash flows while the tax distribution (€45 million) is classified separately
(see Acquisition of the Remaining Ownership Interest in FCA US section above),
payment of medium-term borrowings for a total of €5,838 million, mainly related to the prepayment of all amounts
under the VEBA Trust Note amounting to approximately U.S.$5 billion (€3.6 billion), including accrued and unpaid
interest, and repayment of medium term borrowings primarily in Brazil;
the repayment on maturity of notes issued under the GMTN Program, for a total principal amount of €2,150 million;
and
the net cash disbursement of €417 million for the exercise of cash exit rights in connection with the Merger.
In 2013, net cash provided by financing activities was €3,136 million and was primarily the result of:
proceeds from bond issuances for a total amount of €2,866 million, relating to notes issued as part of the GMTN
Program;