Chrysler 2015 Annual Report Download - page 246

246 2015 | ANNUAL REPORT
Company Financial
Statements
Notes to the Company
Financial Statements
4. Other operating costs
Other operating costs primarily includes costs for services rendered by Group companies (support and consulting in
administration, IT systems, press activities, payroll, security and facility management), costs for legal, administrative,
financial and IT services in addition to the compensation component from stock grant plans representing the notional
cost of the Long Term Incentive Plan awarded to the Chief Executive Officer and Executives (net of the portion already
attributed to the relevant subsidiaries), which was recognized directly in the equity reserve, as reported in Note 20
Share-based compensation within the Consolidated Financial Statements.
5. Net financial expenses
The following table summarizes Net financial expenses:
For the Years Ended December 31,
2015 2014
(€ million)
Financial income 269 85
Financial expense (668) (564)
Currency exchange gains 191 143
Net losses on derivative financial instruments (192) (139)
Total Net financial expenses (400) (475)
Financial income primarily relates to interest receivable on the U.S.$5.4 billion of loans extended to Fiat Chrysler
Automobiles North America Holdings LLC (“FCA NAH LLC”), as included within Other financial assets and Current
financial receivables.
Financial expense primarily relates to interest payable on the intercompany debt included within Current debt, in
addition to the interest on the unsecured senior debt securities of U.S.$3.0 billion issued in April 2015.
The increase in both financial income and financial expense relates to the issuance of the U.S.$3.0 billion unsecured
senior debt securities and the equivalent intercompany loan extended to FCA NAH LLC.
Currency exchange gains and net losses on derivative financial instruments, primarily related to the U.S.$1.5 billion
loan reported in Current financial receivables, which is fully hedged into Euro.
6. Income taxes
Income taxes were a gain of €8 million in 2015 (gain of €9 million in 2014) and primarily relate to compensation
receivable for tax losses carried forward contributed to the United Kingdom tax consolidation scheme.
The Company reported losses for tax purposes as the result from investments resulting from the adoption of the equity
method is tax neutral.
7. Property, plant and equipment
At December 31, 2015, the gross carrying amount of property, plant and equipment was €68 million (€68 million
at December 31, 2014) and accumulated depreciation was €40 million (€39 million at December 31, 2014), of
which €24 million related to land and buildings, mainly consisting of the Company’s property in Turin (€24 million at
December 31, 2014).
No buildings were subject to liens, pledged as collateral or restricted in use.
Depreciation of property, plant and equipment is recognized in the Income statement within Other operating costs.