Chrysler 2014 Annual Report Download - page 83

2014 | ANNUAL REPORT 81
FCA US New Debt Issuances and Prepayment of VEBA Trust Note
In February 2014, FCA US prepaid all amounts outstanding including accrued and unpaid interest of approximately
U.S.$5.0 billion (€3.6 billion) related to its financial liability to the VEBA Trust, or the VEBA Trust Note. Such
prepayment was financed by FCA US as follows:
proceeds from new senior credit facilities – a U.S.$250 million (€181 million) incremental term loan under FCA US’s
existing tranche B term loan facility that matures on May 24, 2017 and a new U.S.$1,750 million (€1.3 billion) term
loan, issued under a new term loan credit facility, that matures on December 31, 2018;
proceeds from secured senior notes due 2019 – issuance of U.S.$1,375 million (€1.0 billion) aggregate principal
amount of 8.0 percent secured senior notes due June 15, 2019, at an issue price of 108.25 percent of the
aggregate principal amount, which were incremental to the secured senior notes due 2019 that were issued in May
2011, (together, the 2019 Notes); and
proceeds from secured senior notes due 2021 – issuance of U.S.$1,380 million (€1.0 billion) aggregate principal
amount of 8.25 percent secured senior notes due June 15, 2021 at an issue price of 110.5 percent of the
aggregate principal amount, which were incremental to the secured senior notes due 2021 that were issued in May
2011, (together, the 2021 Notes).
The 2019 Notes and the 2021 Notes are collectively referred to as the Secured Senior Notes.
Cash Flows
Year Ended December 31, 2014 compared to Years Ended December 31, 2013 and 2012
The following table summarizes the cash flows from operating, investing and financing activities for each of the years
ended December 31, 2014, 2013 and 2012. For a complete discussion of our cash flows, see our Consolidated
statement of cash flows included in our Consolidated financial statements included elsewhere in this report.
(€ million) 2014 2013 2012
Cash and cash equivalents at beginning of the period 19,455 17,666 17,526
Cash flows from operating activities during the year 8,169 7,618 6,492
Cash flows used in investing activities (8,140) (8,054) (7,542)
Cash flows from financing activities 2,137 3,136 1,610
Translation exchange differences 1,219 (911) (420)
Total change in cash and cash equivalents 3,385 1,789 140
Cash and cash equivalents at end of the period 22,840 19,455 17,666
Operating Activities — Year Ended December 31, 2014
For the year ended December 31, 2014, our net cash from operating activities was €8,169 million and was primarily
the result of:
(i) net profit of €632 million adjusted to add back (a) €4,897 million for depreciation and amortization expense and
(b) other non-cash items of €352 million, which primarily include (i) €381 million related to the non-cash portion
of the expense recognized in connection with the execution of the MOU Agreement entered into by the UAW and
FCA US on January 21, 2014 (ii) €98 million remeasurement charge recognized as a result of the Group’s change
in the exchange rate used to remeasure its Venezuelan subsidiary’s net monetary assets in U.S. Dollar (reported,
for the effect on cash and cash equivalents, in the “Translation exchange differences”) which were partially offset
by (iii) the non-taxable gain of €223 million on the remeasurement at fair value of the previously exercised options
on approximately 10 percent of FCA US’s membership interests in connection with the acquisition of the remaining
41.5 percent interest in FCA US not previously owned;