Chrysler 2014 Annual Report Download - page 94

92 2014 | ANNUAL REPORT
Operating Results
Other Debt
At December 31, 2014, Other debt mainly relates to the unsecured Canadian Health Care Trust notes, or HCT Notes,
totaling €651 million including accrued interest (€703 million at December 31, 2013) including accrued interest), which
represents FCA US’s financial liability to the Canadian Health Care Trust arising from the settlement of its obligations
for postretirement health care benefits for National Automobile, Aerospace, Transportation and General Workers
Union of Canada, or CAW (now part of Unifor), which represented employees, retirees and dependents. The HCT
Notes were issued in four tranches on December 31, 2010, and have maturities up to 2024. Interest is accrued at the
stated rate of 9.0 percent per annum for the HCT tranche A and B notes and 7.5 percent per annum for HCT tranche
C note. The HCT tranche D note was fully repaid in 2012. The terms of each of the HCT Notes are substantially
similar and provide that each note will rank pari passu with all existing and future unsecured and unsubordinated
indebtedness for borrowed money of FCA US, and that FCA US will not incur indebtedness for borrowed money that
is senior in any respect in right of payment to the HCT Notes.
Other debt at December 31, 2013 also included the VEBA Trust Note (€3,575 million including accrued interest),
which represented FCA US’s financial liability to the VEBA Trust having a principal amount outstanding of U.S.$4,715
million (€3,419 million). The VEBA Trust Note was issued by FCA US in connection with the settlement of its
obligations related to postretirement healthcare benefits for certain UAW retirees. The VEBA Trust Note had an implied
interest rate of 9.0 percent per annum and required annual payments of principal and interest through July 15, 2023.
On February 7, 2014, FCA US prepaid the VEBA Trust Note (see —FCA US New Debt Issuances and Prepayment of
VEBA Trust Note).
The remaining components of Other debt mainly relate to amounts outstanding under finance leases, amounts due to
related parties and interest bearing deposits of dealers in Brazil.
At December 31, 2014, debt secured by assets of the Group, excluding FCA US, amounts to €777 million (€432
million at December 31, 2013), of which €379 million (€386 million at December 31, 2013) is due to creditors for
assets acquired under finance leases and the remaining amount mainly related to subsidized financing in Latin
America. The total carrying amount of assets acting as security for loans amounts to €1,670 million at December 31,
2014 (€418 million at December 31, 2013).
At December 31, 2014, debt secured by assets of FCA US amounts to €9,881 million (€5,180 million at December
31, 2013), and includes €9,093 million (€4,448 million at December 31, 2013) relating to the Secured Senior
Notes and the Senior Credit Facilities, €251 million (€165 million at December 31, 2013) was due to creditors for
assets acquired under finance leases and other debt and financial commitments for €537 million (€567 million at
December 31, 2013).