Chrysler 2011 Annual Report Download - page 180

179
Consolidated
Financial Statements
at 31 December 2011
Additions of €3,925 million in 2011 mainly relate to the Chrysler sector for the seven month period June-December 2011 and the sectors Fiat Group
Automobiles, Magneti Marelli and Fiat Powertrain.
During 2011, the Group reviewed the recoverable amount of certain buildings, plant, machinery and industrial equipment as a result of the process of
updating the economic valuations and estimates carried out during the year of certain assets in the Magneti Marelli and Teksid sectors, and recognised an
impairment loss totalling €103 million, discussed in Note 14. The Fiat Group Automobiles sector recognised a further impairment loss of €200 million in
connection with the above-mentioned process for the strategic realignment of manufacturing and commercial activities with Chrysler, classified as Other
unusual income (expenses).
In 2011 the overall increase of €9,671 million in Change in the scope of consolidation mainly reflects the consolidation of Chrysler. In 2010 the overall
increase of €113 million in this item mainly reflected the line-by-line consolidation of Fiat Powertrain Polska Sp.z o.o.
In 2011 exchange gains of €706 million reflect the appreciation of the US Dollar against the Euro from the end of May when Chrysler was consolidated for
the first time, partially offset by the depreciation of the Brazilian Real and the Polish Zloty against the Euro. In 2010 exchange gains of €401 million principally
reflect the appreciation of the US Dollar, the Brazilian Real and the Polish Zloty against the Euro.
In 2011 Other changes mainly consist of the reclassification of the prior year balances for Advances and tangible assets in progress to the respective
categories when the assets were acquired and entered service.
At 31 December 2011, property, plant and equipment of the Fiat Group excluding Chrysler pledged as collateral for loans, which mainly relates to assets that
are legally owned by suppliers but are recognised in the consolidated financial statements in accordance with IFRIC 4 with the corresponding recognition
of a financial lease payable, were as follows:
(€ million) At 31 December 2011 At 31 December 2010 (*)
Land and industrial buildings of pledged as security for debt 50 128
Plant and machinery pledged as security for debt and other commitments 260 282
Other assets pledged as security for debt and other commitments 77
Property plant and equipment pledged as security for debt 317 417
(*) The amounts relate to Continuing Operations.
The amount of property plant and equipment of the Chrysler sector at 31 December 2011 is €11,050 million. Substantially all the property, plant and
equipment of Chrysler Group LLC and its U.S. subsidiary guarantors are pledged as securities for Chrysler’s outstanding debt.
At 31 December 2011, the Group had contractual commitments for the purchase of Property, plant and equipment amounting to €965 million (€697 million
at 31 December 2010 for Continuing Operations).