Chrysler 2015 Annual Report Download - page 253

2015 | ANNUAL REPORT 253
20. Current debt
At December 31, 2015, current debt totaled €7,271 million, a €2,443 million decrease over December 31, 2014 and
related to:
At December 31,
2015 2014 Change
(€ million)
Intercompany debt:
- Current account with Fiat Chrysler Finance S.p.A. 3,663 6,662 (2,999)
- Short term loans from Fiat Chrysler Finance Europe S.A. 3,357 2,682 675
Total intercompany debt 7,020 9,344 (2,324)
Third party debt:
- Mandatory Convertible Securities liability component 199 346 (147)
- Advances on factored receivables 24 24 —
- Accrued interest payable 28 — 28
Total third party debt 251 370 (119)
Total current debt 7,271 9,714 (2,443)
Current account with Fiat Chrysler Finance S.p.A. represents the overdraft as part of the Group’s centralized treasury
management.
Loans from Fiat Chrysler Finance Europe S.A. consists of Euro-denominated financing due within 12 months.
Current intercompany debt of €7,020 million (€9,344 million at December 31, 2014) is denominated in Euros and the
carrying amount is in line with fair value.
As described in more detail in the notes to the Consolidated Financial Statements, FCA issued aggregate notional
amount of U.S.$2,875 million (€2,293 million) of mandatory convertible securities on December 16, 2014. The obligation
to pay coupons as required by the mandatory convertible securities meets the definition of a financial liability as it is a
contractual obligation to deliver cash to another entity. The fair value amount determined for the liability component at
issuance of the mandatory convertible securities was U.S.$419 million (€335 million) calculated as the present value of
the coupon payments due less allocated transaction costs of U.S.$9 million (€7 million) that are accounted for as a debt
discount. Subsequent to issuance, the financial liability for the coupon payments is accounted for at amortized cost. In
December 2015, the first coupon payment of U.S.$225 million was paid. At December31, 2015, the financial liability
component was U.S $216 million (€199 million) (U.S.$420 million or €346 million at December31, 2014).
Advances on factored receivables relate to advances on income tax receivables in Italy totaling €24 million (€25 million
at December 31, 2014).
Accrued interest payable of €28 million relates to the unsecured senior debt securities referred to in Note 16 Non-
current debt.