Chrysler 2014 Annual Report Download - page 271

2014 | ANNUAL REPORT 269
18. Trade payables
At December 31, 2014, trade payables totaled €19 million, in line with December 31, 2013, and consisted of the
following:
At December 31,
2014 2013 Change
(€ million)
Trade payables to third parties 14 13 1
Intercompany trade payables 56 (1)
Total trade payables 19 19 —
Trade payables are due within one year and their carrying amount at the reporting date is deemed to approximate their
fair value.
19. Current debt
At December 31, 2014, current debt totaled €9,714 million, a €5,934 million increase over December 31, 2013 and
related to:
At December 31,
2014 2013 Change
(€ million)
Intercompany debt:
- Current account with Fiat Chrysler Finance S.p.A. 6,662 739 5,923
- Short term loans from Fiat Chrysler Finance Europe S.A. 2,682 — 2,682
- Short term loans from Fiat Chrysler Finance S.p.A. —3,000 (3,000)
- Other intercompany loans —17 (17)
Total intercompany debt 9,344 3,756 5,588
Third party debt:
- Mandatory Convertible Securities liability component 346 — 346
- Advances on factored receivables 24 24 —
Total third party debt 370 24 346
Total current debt 9,714 3,780 5,934
Current account with Fiat Chrysler Finance S.p.A. represents the overdraft as part of the Group’s centralized treasury
management.
Loans from Fiat Chrysler Finance Europe S.A. consists of euro-denominated financing due within 12 months.
As described in more detail in the notes to the consolidated financial statements, FCA issued aggregate notional
amount of U.S.$2,875 million (€2,293 million) of mandatory convertible securities on December 16, 2014. The
obligation to pay coupons as required by the mandatory convertible securities meets the definition of a financial liability
as it is a contractual obligation to deliver cash to another entity. The fair value amount determined for the liability
component at issuance of the mandatory convertible securities was U.S.$419 million (€335 million) calculated as
the present value of the coupon payments due less allocated transaction costs of U.S.$9 million (€7 million) that are
accounted for as a debt discount. Subsequent to issuance, the financial liability for the coupon payments is accounted
for at amortized cost. At December 31, 2014 the financial liability component was U.S.$420 million (€346 million).
Advances on factored receivables relate to advances on income tax receivables in Italy totaling €25 million.
Current intercompany debt of €9,344 million is denominated in euros and the carrying amount is deemed to be in line
with fair value.