annual report - FIAT SpA
annual report - FIAT SpA
annual report - FIAT SpA
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(€ million)<br />
Currency risk<br />
Continuing<br />
Operations<br />
Discontinued<br />
Operations Total<br />
2010 2009<br />
Continuing<br />
Operations<br />
Discontinued<br />
Operations Total<br />
Increase (Decrease) in Net revenues (64) (27) (91) (19) 4 (15)<br />
Decrease (Increase) in Cost of sales (83) (29) (112) (328) (22) (350)<br />
Financial income (expenses) (19) (29) (48) 82 (11) 71<br />
Result from investments (5) - (5) - - -<br />
Interest rate risk<br />
Decrease (Increase) in Cost of sales (8) (36) (44) (6) (10) (16)<br />
Result from investments (7) - (7) 3 - 3<br />
Financial income (expenses) (5) - (5) (17) - (17)<br />
Commodities price risk<br />
Decrease (Increase) in Cost of sales 5 - 5 (5) - (5)<br />
Taxes income (expenses) 37 28 65 3 8 11<br />
Ineffectiveness - overhedges (19) - (19) 8 - 8<br />
Total recognised in the income statement (168) (93) (261) (279) (31) (310)<br />
The ineffectiveness of cash flow hedges was not material in 2010 or 2009.<br />
In 2010 there was an overall negative economic effect of €19 million (positive effect of €8 million in 2009) from hedges<br />
of assets and liabilities relating to Continuing Operations, which subsequently turned out to be in excess of the future<br />
flows being hedged (overhedges); this was mainly due to the loss of certain exposures to interest rate risk. The effect<br />
of hedges of assets and liabilities relating to Discontinued Operations which subsequently turned out to be in excess<br />
of the future flows being hedged (overhedges) was not material in 2010 or 2009.<br />
Fair value hedges<br />
The gains and losses arising from the valuation of interest rate and currency derivatives (mostly for managing<br />
currency risk) and interest rate derivatives (for managing the interest rate risk) recognised in accordance with fair<br />
value hedge accounting and the gains and losses arising from the respective hedged items are set out in the following<br />
table:<br />
2010 2009<br />
Continuing Discontinued<br />
Continuing Discontinued<br />
(€ million)<br />
Currency risk<br />
Operations Operations Total Operations Operations Total<br />
Net gains (losses) on qualifying hedges (50) - (50) 22 - 22<br />
Fair value changes in hedged items 50 - 50 (22) - (22)<br />
Interest rate risk<br />
Net gains (losses) on qualifying hedges 15 11 26 (15) - (15)<br />
Fair value changes in hedged items (15) (11) (26) 17 - 17<br />
Net gains (losses) - - - 2 - 2<br />
For Continuing Operations the ineffective portion of transactions treated as fair value hedges in 2010 was not<br />
significant (gains of €2 million in 2009). For Discontinued Operations the ineffective portion of transactions treated as<br />
fair value hedges was not significant in either 2010 or 2009.<br />
Fiat Group Consolidated Financial Statements at 31 December 2010 167
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