annual report - FIAT SpA

� Environmental risks – This provision represents management’s best estimate of the Group’s probable
environmental obligations. Amounts included in the estimate comprise direct costs to be incurred by the Fiat
Group pre-Demerger and the Fiat Industrial Group in connection with environmental obligations associated with
current or formerly owned facilities and sites. This provision also includes costs related to claims on
environmental matters.
� Indemnities - the provision for indemnities relates to contractual indemnities provided by the Group in
connection with divestitures carried out in 2010 and prior years. These liabilities, that relate to Continuing
Operations primarily arise from indemnities relating to contingent liabilities in existence at the time of the sale,
as well as those covering any possible breach of the representations and warranties provided in the contract
and, in certain instances, environmental or tax matters. These provisions were determined estimating the
amount of the expected outflow of resources, taking into consideration the relevant level of probability of
occurrence.
26. Debt
A breakdown of debt and an analysis by due date is as follows:
At 31 December 2010 At 31 December 2009
due between
due between
due within one and due beyond
due within one and due beyond
(€ million)
Continuing Operations
one year five years five years Total
one year five years five years Total
Asset-backed financing 498 29 6 533 4,536 2,535 15 7,086
Bonds 2,728 5,200 1,091 9,019 1,451 7,189 2,757 11,397
Borrowings from banks
Payables represented by
3,430 3,068 159 6,657 3,531 4,553 310 8,394
securities 172 75 - 247 229 155 - 384
Other 1,001 228 254 1,483 864 137 265 1,266
Total Other debt 7,331 8,571 1,504 17,406 6,075 12,034 3,332 21,441
Total Continuing Operations 7,829 8,600 1,510 17,939 10,611 14,569 3,347 28,527
Discontinued Operations
Asset-backed financing 4,777 3,515 29 8,321 - - - -
Bonds - 735 1,318 2,053 - - - -
Borrowings from banks
Payables represented by
1,391 910 67 2,368 - - - -
securities 45 72 - 117 - - - -
Other 134 30 46 210 - - - -
Total Other debt 1,570 1,747 1,431 4,748 - - - -
Total Discontinued Operations 6,347 5,262 1,460 13,069 - - - -
Total Debt 14,176 13,862 2,970 31,008 10,611 14,569 3,347 28,527
Asset-backed financing represents the amount of financing received through both securitisation and factoring
transactions which do not meet IAS 39 derecognition requirements and is recognised as an asset in the statement of
financial position under Receivables from financing activities (Note 19).
At 31 December 2010, total Debt had increased by €2,481 million. Excluding exchange differences, which led to an
increase in debt of approximately €1.4 billion, and excluding changes in the scope of consolidation, this increase
amounted to €994 million. Debt included in Continuing Operations decreased by €1,086 million, mainly due to the
repayment of maturing bonds, while debt included in Discontinued Operations rose by €2,080 million as the result of
the issue of bonds of US$1.5 billion by Case New Holland Inc. and an increase in asset-backed financing, offset by
the early repayment of the US$500 million bond.
There was an increase of approximately €1,213 million in asset backed financing, excluding exchange differences.
This increase relates almost exclusively to Discontinued Operations and amongst other things reflects improved
market accessibility conditions for securitisations.
Fiat Group Consolidated Financial Statements at 31 December 2010 189