annual report - FIAT SpA

36. Explanatory notes to the Statement of Cash Flows
The Statement of cash flows sets out changes in cash and cash equivalents during the year. As required by IAS 7 –
Statement of Cash Flows, cash flows are separated into operating, investing and financing activities. The effects of
changes in exchange rates on cash and cash equivalents are shown separately under the line item Translation
exchange differences.
Cash flows from (used in) operating activities derive mainly from the Group’s main revenue producing activities.
The cash flows generated by the sale of vehicles under buy-back commitments, net of the amounts included in
Profit/(loss) for the year, are included under operating activities in a single line item which includes changes in working
capital, capital expenditures, depreciation and impairment losses. This item also includes gains and losses arising
from the sales of vehicles transferred under buy-back commitments that occur before the end of the agreement term
without repossession of the vehicle.
With respect to Continuing Operations, Other non-cash items of €89 million in 2010 (€114 million in 2009) include
€134 million for the reversal of impairment losses on assets recognised during the year (reversal of previously
recognised impairment losses of €232 million in 2009). This item also includes a €107 million gain in the mark-tomarket
value of two stock option-related equity swaps on Fiat shares (a €117 million gain in 2009). With respect to
Discontinued Operations, (Gains) losses on disposal of tangible and intangible assets and other non-cash items of
€192 million in 2010 (€254 million in 2009) include €194 million for the reversal of impairment losses on assets
recognised during the year (reversal of previously recognised impairment losses of €241 million in 2009).
Overall, Cash flows for income tax payments net of refunds in 2010 amount to €724 million (€445 million in 2009).
Overall, interest of €1,727 million was paid and interest of €1,248 million was received in 2010 (interest of €1,363
million was paid in 2009 and interest of €1,051 million was received in 2009).
Cash flows from (used in) investing activities represent the extent to which expenditures have been made for
resources intended to generate future income and cash flows. Only expenditures resulting in an asset recognised in
the balance sheet are classified as investing activities in the Statement of cash flows.
The consideration paid and received for the acquisition and disposal of subsidiaries is discussed in Note 35.
Finally, on 10 June 2009 the Group acquired an initial 20% interest in Chrysler without the payment of cash: this
transaction was therefore not included in the statement of cash flows for 2009, other than for the effects arising from
the payment of the transaction costs arising from the acquisition (legal expenses, financial fees, etc.).
37. Non-recurring transactions and transactions resulting from unusual and/or abnormal operations
The Group did not perform any significant non-recurring transactions or transactions resulting from unusual and/or
abnormal operations in 2010 as such are defined by the Consob Communication of 28 July 2006.
Fiat Group Consolidated Financial Statements at 31 December 2010 221