Chrysler 2015 Annual Report Download - page 186

186 2015 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
Receivables from financing activities
Receivables from financing activities mainly relate to the business of financial services companies fully consolidated by
the Group and are summarized as follows.
At December 31,
2015 2014
(€ million)
Dealer financing 1,650 2,313
Retail financing 238 1,039
Finance leases 8349
Other 110 142
Total Receivables from financing activities 2,006 3,843
At December 31, 2015, a total of €1,176 million of receivables from financing activities, net of an allowance for
doubtful accounts, related to Ferrari were classified within Assets held for distribution.
Receivables from financing activities are shown net of an allowance for doubtful accounts determined on the basis of
specific insolvency risks. At December31, 2015, the allowance for doubtful accounts amounted to €40 million (€73
million at December31, 2014). Changes in the allowance for receivables from financing activities were as follows:
At January 1,
2015 Provision
Useand
other changes
Transfer to
Assets held
for distribution
At December
31, 2015
(€ million)
Allowance for Receivables from financing activities 73 64 (78) (19) 40
At January 1,
2014 Provision
Useand
other changes
At December
31, 2014
(€ million)
Allowance for Receivables from financing activities 119 69 (115) 73
Receivables for dealer financing are typically generated by sales of vehicles and are generally managed under dealer
network financing programs as a component of the portfolio of the financial services companies. These receivables
are interest bearing, with the exception of an initial limited, non-interest bearing period. The contractual terms
governing the relationships with the dealer networks vary from country to country, although payment terms range
from two to six months.
Finance lease receivables refer to vehicles and other assets leased under finance lease arrangements, mainly from
the Maserati segment. Finance lease receivables by due date are as follows (gross of an allowance of €1 million at
December31, 2015 and €10 million at December31, 2014):
At December 31,
2015 2014
Due
within
one year
Due
between
oneand
five years
Due
beyond
five years Total
Due
within
one year
Due
between
oneand
five years
Due
beyond
five years Total
(€ million)
Receivables for future minimum
lease payments 6129110 281 8 399
Less: unrealized interest income ————(16) (24) — (40)
Present value of future
minimum lease payments 612994 257 8 359