Chrysler 2015 Annual Report Download - page 70

70 2015 | ANNUAL REPORT
Operating Results
Operating Activities — Year Ended December 31, 2013
For the year ended December31, 2013, our net cash from operating activities of €7,618 million was primarily the
result of:
(i) net profit from continuing operations of €1,708 millionadjusted to add back (a)€4,364 million for depreciation
and amortization expense and (b)other non-cash items of €531 million, which primarily included €336million of
impairment losses and asset write-offs on tangible and intangible assets, €59million loss related to the devaluation
of the official exchange rate of the VEF per U.S.$, €56million write-off of the book value of the equity recapture
rights resulting from the acquisition of the remaining 41.5 interest in FCA US that was previously not owned,
€105million of write-down in financial assets from the lending portfolio of our financial services activities, partially
offset by €74million of the share of profit or loss of equity method investees;
(ii) positive impact of change in working capital of €1,378 million primarily driven by (a)€1,322 million increase in
trade payables, mainly related to increased production in NAFTA as a result of increased consumer demand for
our vehicles, and increased production in Maserati, (b)€746 million in net other current assets and liabilities mainly
related to increases in accrued expenses and deferred income as well as indirect taxes payables, (c)€232 million
decrease in trade receivables principally due to the contraction of sales volumes in EMEA and LATAM which were
partially offset by (d)€922 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, 2013 compared to December31,
2012, in part driven by higher production levels in late 2013 to meet anticipated consumer demand in the NAFTA,
APAC and Maserati segments;
(iii) a net increase of €464 million in provisions, mainly related to accrued sales incentives due to increased dealer
stock levels at December31, 2013 compared to December31, 2012 to support increased sales volumes; which
were partially offset by a net reduction in the post-retirement benefit reserve;
(iv) €92 million dividends received from jointly-controlled entities; and
(v) €534 million of cash flows from discontinued operations.
These positive contributions were partially offset by:
(vi) €1,569million non-cash impact of deferred taxes mainly arising from the recognition of previously unrecognized
deferred tax assets relating to FCA US.
Investing Activities — Year Ended December 31, 2015
For the year ended December31, 2015, net cash used in investing activities of €9,300 million was primarily the result of:
(i) €8,819 million of capital expenditures, including €2,504 million of capitalized development costs that supported
investments in existing and future products. Capital expenditures primarily related to the mass-market vehicle
operations in NAFTA and EMEA, investment in Alfa Romeo and the completion of the Pernambuco plant;
(ii) a total of €266 million for investments in joint ventures, associates and unconsolidated subsidiaries, of which €171
million was for the GAC Fiat Chrysler Automobiles Co. Ltd. joint venture; and
(iii) €426 million of cash flows used by discontinued operations.
These cash outflows were partially offset by:
(iv) €410 million of a net decrease in receivables from financing activities which primarily related to the decreased
lending portfolio of the financial services activities of the Group in Brazil and China.