Chrysler 2014 Annual Report Download - page 85

2014 | ANNUAL REPORT 83
Operating Activities — Year Ended December 31, 2012
For the year ended December 31, 2012, our net cash from operating activities was €6,492 million and was primarily
the result of:
(i) net profit of €896 million, adjusted to add back (a) €4,201 million for depreciation and amortization expense,
(b) other non-cash items of €582 million, which primarily include €515 million following the retrospective
application of the IAS 19 - Employee Benefits revised from January 1, 2013, €106 million of impairment losses on
tangible and intangible assets and €50 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,
and €31 million related to the non-cash gain on fair value measurement of equity swaps on Fiat and CNHI ordinary
shares and (c) net losses of €105 million on disposal of property, plant and equipment and intangible assets, and
investments primarily related to the termination of the joint venture Sevelnord Societè Anonyme for €91 million;
(ii) change in net working capital of €689 million primarily driven by (a) €506 million increase in trade payables,
mainly related to increased production in response to increased consumer demand of our vehicles especially
in NAFTA and APAC, partially offset by reduced production and sales levels in EMEA, (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 our vehicle inventory levels in order to support consumer demand in NAFTA and
APAC 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;
(iii) a net increase of €63 million in provisions, mainly related to accrued sales incentives due to increased dealer stock
levels at December 31, 2012 compared to December 31, 2011 to support increased sales volumes which were
partially offset by a net reduction in the post-retirement benefit reserve; and
(iv) €89 million dividends received from jointly-controlled entities.
Investing Activities — Year Ended December 31, 2014
For the year ended December 31, 2014, net cash used in investing activities was €8,140 million and was primarily the
result of:
(i) €8,121 million of capital expenditures, including €2,267 million of capitalized development costs, to support
investments in existing and future products. Capital expenditure primarily relates to the mass-market operations in
NAFTA and EMEA and the ongoing construction of the new plant at Pernambuco, Brazil, and
(ii) €137 million of a net increase in receivables from financing activities, of which €104 million related to the increased
lending portfolio of the financial services activities of the Group and €31 million related to increased financial
receivables due from jointly controlled financial services companies.
Investing Activities — Year Ended December 31, 2013
For the year ended December 31, 2013, our net cash used in investing activities was €8,054 million, and was primarily
the result of:
(i) €7,492 million of capital expenditures, including €2,042 million of capitalized development costs, to support
our investments in existing and future products. The capitalized development costs primarily include materials
costs and personnel related expenses relating to engineering, design and development focused on content
enhancement of existing vehicles, new models and powertrain programs in NAFTA and EMEA. The remaining
capital expenditure primarily relates to the car mass-market operations in NAFTA and EMEA and the ongoing
construction of the new LATAM plant at Pernambuco, Brazil;