Chrysler 2014 Annual Report Download - page 84

82 2014 | ANNUAL REPORT
Operating Results
(ii) a net increase of €1,239 million in provisions, mainly related to a €1,023 million increase in Other provisions
following net adjustments to warranties for NAFTA and higher accrued sales incentives, primarily due to an
increase in retail incentives as well as an increase in dealer stock levels to support increased sales volumes in
NAFTA and a €216 million increase in employees benefits mainly related to U.S. and Canada pension plan as
lower discount rates impact was not fully offset by higher return on assets;
(iii) positive impact of change in working capital of €965 million primarily driven by (a) €1,495 million increase in trade
payables, mainly related to increased production in EMEA and NAFTA as a result of increased consumer demand
for our vehicles (b) €123 million decrease in trade receivables in addition to (c) €21 million increase in net other
current assets and liabilities, which were partially offset by (d) €674 million increase in inventory (net of vehicles
sold under buy-back commitments), mainly related to increased finished vehicle and work in process levels at
December 31, 2014 compared to December 31, 2013, in part driven by higher production levels in late 2014 to
meet anticipated consumer demand in NAFTA, EMEA and Maserati.
(iv) €87 million dividends received from jointly-controlled entities.
The translation exchange differences in the period were positive for €1,219 million and mainly reflect the increase in
Euro translated value of U.S. Dollar denominated cash and cash equivalent balances, due to the appreciation of the
U.S. Dollar, as compared to December 31, 2013.
Operating Activities — Year Ended December 31, 2013
For the year ended December 31, 2013, our net cash from operating activities was €7,618 million and was primarily
the result of:
(i) net profit of €1,951 million adjusted to add back (a) €4,635 million for depreciation and amortization expense and
(b) other non-cash items of €535 million, which primarily include €336 million of impairment losses on tangible and
intangible assets, €59 million loss related to the devaluation of the official exchange rate of the VEF per U.S. Dollar,
€56 million write-off of the book value of the equity recapture rights resulting from the acquisition of the remaining
41.5 interest in FCA US that was not previously owned, €105 million of write-down in financial assets from the
lending portfolio of our financial services activities, partially offset by €74 million of the share of profit or loss of
equity method investees;
(ii) positive impact of change in working capital of €1,410 million primarily driven by (a) €1,328 million increase in
trade payables, mainly related to increased production in NAFTA as a result of increased consumer demand for
our vehicles, and increased production of Maserati, (b) €817 million in net other current assets and liabilities,
mainly related to increases in accrued expenses and deferred income as well as indirect taxes payables,
(c) €213 million decrease in trade receivables, principally due to the contraction of sales volumes in EMEA and
LATAM which were partially offset by (d) €948 million increase in inventory (net of vehicles sold under buy-back
commitments), mainly related to increased finished vehicle and work in process levels at December 31, 2013
compared to December 31, 2012, in part driven by higher production levels in late 2013 to meet anticipated
consumer demand in NAFTA, APAC and Maserati segment;
(iii) a net increase of €457 million in provisions, mainly related to accrued sales incentives due to increased dealer
stock levels at December 31, 2013 compared to December 31, 2012 to support increased sales volumes; which
were partially offset by a net reduction in the post-retirement benefit reserve; and
(iv) €92 million dividends received from jointly-controlled entities.
These positive contributions were partially offset by:
(i) €1,578 million non-cash impact of deferred taxes mainly arising from the recognition of previously unrecognized
deferred tax assets relating to FCA US.