Chrysler 2015 Annual Report Download - page 224

224 2015 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
In 2014, the Chief Executive Officer received a cash award of €24.7 million and was assigned a €12 million post-
mandate award as recognition that he was instrumental in major strategic and financial accomplishments for the
Group. Most notably, through his vision and guidance, FCA was formed, creating enormous value for the Company,
its shareholders and stakeholders.
In 2014, Ferrari S.p.A. recorded a cost of €15 million in connection with the resignation of Mr. Luca Cordero di
Montezemolo, as Chairman of Ferrari S.p.A., former Director of Fiat.
27. Explanatory notes to the Consolidated Statement of Cash Flows
The Consolidated Statement of Cash Flows sets out changes in Cash and cash equivalents during the year. As
required by IAS7 – Statement of Cash Flows, cash flows are separated into operating, investing and financing
activities. The effects of changes in exchange rates on cash and cash equivalents are shown separately under the line
item Translation exchange differences.
Non-cash items
For the year ended December 31, 2015, Other non-cash items of €812 million mainly included (i) €713 million non-
cash charges for asset impairments impairments which mainly related to asset impairments in connection with the
realignment of the Group’s manufacturing capacity in NAFTA to better meet market demand and (ii) €80 million
charge recognized as a result of the adoption of the SIMADI exchange rate to re-measure the net monetary assets of
the Group’s Venezuelan subsidiary in U.S.$ (Note 30) (reported, for the effect on cash and cash equivalents, within
Translation exchange differences).
For the year ended December 31, 2014, Other non-cash items of €348 million mainly included (i) €381 million related
to the non-cash portion of the expense recognized in connection with the execution of the UAW MOU entered into
by FCA US, as described in the section —Changes in the Scope of Consolidation -Acquisition of the remaining
ownership interest in FCA US and (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.$ (Note 30) (reported,
for the effect on cash and cash equivalents, within Translation differences), which were partially offset by (iii) the non-
taxable gain of €223 million on the remeasurement to fair value of the previously exercised options on approximately
10 percent of FCA US’s membership interest in connection with the acquisition of the remaining interest in FCA US
previously not owned.
For the year ended December 31, 2013, Other non-cash items of €531 million mainly included (i) €336 million of
impairment losses and asset write-offs on tangible and intangible assets, (ii) €59 million loss related to the devaluation
of the official exchange rate of the VEF relative to the U.S.$ (Note 30) and (iii) €56 million related to the write-off of the
book value of the right associated with the acquisition of the remaining interest in FCA US previously not owned.
Change in working capital
For the year ended December 31, 2015, the negative change in working capital of €158 million was primarily driven by
(i)€958 million increase in inventories, which reflects the increased consumer demand for our vehicles and inventory
buildup in NAFTA due to production changeovers (ii)€191 million increase in trade receivables and (iii)€580million
increase in net other current assets and liabilities reflecting the net payment of taxes and deferred expenses, which were
partially offset by (iv)€1,571 million increase in trade payables, mainly related to increased production levels in EMEA.
For the year ended December 31, 2014, change in working capital of €779 million was primarily driven by (i)€1,470
million increase in trade payables, mainly related to increased production in EMEA and NAFTA as a result of increased
consumer demand for our vehicles, (ii)€106 million decrease in trade receivables and (iii)€24 million increase in net
other current assets and liabilities, which were partially offset by (iv)€821 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.