Chrysler 2015 Annual Report Download - page 251

2015 | ANNUAL REPORT 251
Legal reserves
At December 31, 2015, legal reserves amounted to €11,744 million (€10,816 million at December 31, 2014) and
mainly related to development costs capitalized by subsidiaries of €8,358 million (€7,105 million at December 31,
2014), the equity component of the Mandatory Convertible Securities of €1,910 million (€1,910 million at December
31, 2014), the earnings of subsidiaries subject to certain restrictions to distributions to the parent company of €1,472
million (€1,797 million at December 31, 2014), and the reserve in respect of special voting shares of €4 million (€4
million at December 31, 2014). Legal reserves also included unrealized currency translation gains and losses and other
OCI components of €1,309 million (negative €260 million at December 31, 2014).
Pursuant to Dutch law, limitations exist relating to the distribution of shareholders’ equity up to at least the total
amount of the legal reserve. By their nature, unrealized losses relating to OCI components reduce shareholders’ equity
and thereby distributable amounts.
Share-based compensation
In 2014, in connection with the Merger, FCA assumed the obligation for the former Fiat Stock option plans and Stock
Grant plans. On the effective date of the Merger, the unvested equity rewards under the former Fiat plans became
convertible for common shares of FCA on a one-for-one basis (detailed in Note 20 Share-based compensation in the
Consolidated Financial Statements).
15. Provisions for employee benefits and other provisions
At December 31, 2015, provisions for employee benefits and other provisions totaled €34 million, a €7 million increase
over year-end 2014, relating primarily to the recognition of historic pension liabilities previously recognized in other Group
companies. At 31 December 2015, provisions consisted primarily of post-employment benefits accruing to employees,
former employees and Directors under supplemental company or individual agreements, which are unfunded.
16. Non-current debt
At December 31, 2015, non-current debt totaled €2,928 million, representing an increase of €2,731 million over
December 31, 2014, and consisted of the following:
At December 31,
2015 2014 Change
(€ million)
Third-party debt:
- Unsecured senior debt securities 2,730 — 2,730
Total third-party debt 2,730 — 2,730
Intercompany debt:
- Intercompany financial payables 198 197 1
Total intercompany debt 198 197 1
Total Non-current debt 2,928 197 2,731
As described in more detail in Note 23 Debt to the Consolidated Financial Statements, in April 2015, FCA issued €1.4
billion (U.S.$1.5 billion) principal amount of 4.5 percent unsecured senior debt securities due April 15, 2020 (the “Initial
2020 Notes”) and €1.4 billion (U.S.$1.5 billion) principal amount of 5.25 percent unsecured senior debt securities
due April 15, 2023 (the “Initial 2023 Notes”) at an issue price of 100 percent of their principal amount. The Initial 2020
Notes and the Initial 2023 Notes, collectively referred to as “the Initial Notes”, rank pari passu in right of payment
with respect to all of FCA’s existing and future senior unsecured indebtedness and senior in right of payment to any
of FCA’s future subordinated indebtedness and existing indebtedness, which is by its terms subordinated in right of
payment to the Initial Notes.