Chrysler 2014 Annual Report Download - page 272

270 2014 | ANNUAL REPORT
Company Financial
Statements
Notes to the Company
Financial Statements
20. Other debt
At December 31, 2014, Other debt totaled €394 million, a net increase of €177 million over December 31, 2013, and
included the following:
At December 31,
2014 2013 Change
(€ million)
Intercompany other debt:
- Consolidated Italian corporate tax 124 107 17
- Consolidated VAT 222 92 130
- Other 27 — 27
Total intercompany other debt 373 199 174
Other debt and taxes payable:
- Taxes payable —5 (5)
- Accrued expenses 92 7
- Other payables 12 11 1
Total Other debt and taxes payable 21 18 3
Total current debt 394 217 177
At December 31, 2014, intercompany debt for consolidated VAT of €222 million consisted of VAT credits of Italian
subsidiaries transferred to FCA as part of the consolidated VAT regime.
Intercompany debt for consolidated Italian corporate tax of €124 million (€107 million at December 31, 2013)
consisted of compensation payable for tax losses and Italian corporate tax credits contributed by Italian subsidiaries
participating in the domestic tax consolidation program for 2014 in relation to which the Italian branch of FCA is the
consolidating entity.
Other debt and taxes payable are all due within one year and their carrying amount is deemed to approximate their fair
value.
21. Guarantees granted, commitments and contingent liabilities
Guarantees granted
At December 31, 2014, guarantees issued totaled €16,380 million wholly provided on behalf of Group companies.
The increase of €1,358 million over December 31, 2013 related principally to the increase in borrowings in Brazil to
fund the construction of the new plant in Pernambuco and new bonds issued by the subsidiary Fiat Chrysler Finance
Europe S.A. net of repayments.
Main guarantees outstanding at 31 December 2014 were as follows:
€12,531 million for bonds issued;
€1,898 million for borrowings, of which €822 million in favor of the subsidiaries in Brasil mainly related to the
construction of the new plant in Pernambuco and the remaining primarily to Fiat Chrysler Finance S.p.A
€755 million for credit lines, primarily to Fiat Chrysler Finance Europe S.A. and Fiat Chrysler Finance S.p.A.
€984 million for VAT receivables related to the VAT consolidation in Italy.
In addition, in 2005, in relation to the advance received by Fiat Partecipazioni S.p.A. on the consideration for the sale
of the aviation business, FCA as he successor of Fiat S.p.A. is jointly and severally liable with the fully owned subsidiary
Fiat Partecipazioni S.p.A. to the purchaser, Avio Holding S.p.A., should Fiat Partecipazioni S.p.A. fail to honor
(following either an arbitration award or an out-of-court settlement) undertakings provided in relation to the sale and
purchase agreement signed in 2003. Similarly, in connection with sale of a controlling interest in its rail business, Fiat
S.p.A. provided guarantees to the purchaser, Alstom N.V., for any failure of the seller (now Fiat Partecipazioni S.p.A.)
to meet its contractual obligations.