annual report - FIAT SpA

14. Trade receivables
At 31 December 2010, trade receivables amounted to €8,078 thousand, a net decrease of €51,937 thousand over 31
December 2009, and included the following:
(€ thousand) 31 December 2010 31 December 2009 Change
Third parties
Receivables 7,971 53,091 (45,120)
Allowance for doubtful accounts (156) (228) 72
Total third parties 7,815 52,863 (45,048)
Intercompany trade receivables 263 7,152 (6,889)
Total trade receivables 8,078 60,015 (51,937)
Trade receivables from third parties mainly relate to amounts due from T.A.V. S.p.A. (now Rete Ferroviaria Italiana
S.p.A.) for the progress of works on high speed rail sections during the latter part of the year. These receivables match
the trade payables resulting from the progress of the works to be paid to the consortia CAV.E.T. and CAV.TO.MI. (see
Note 24).
Intercompany trade receivables includes adjustments following reassessment of amounts receivable from other Group
companies for services provided.
The allowance for doubtful accounts has been calculated on the basis of an assessment of the risk on a number of
minor receivables from others.
The carrying amount of trade receivables is deemed to approximate their fair value.
All trade receivables are due within one year and there are no significant overdue balances.
15. Current financial receivables
At 31 December 2010, current financial receivables totaled €311,526 thousand, a net decrease of €334,548 thousand
over 31 December 2009 and consisted of amounts receivable from other Group companies, as detailed below:
(€ thousand) 31 December 2010 31 December 2009 Change
Current account with Fiat Finance S.p.A. 196,529 606,941 (410,412)
Assets arising from derivative financial instruments 114,997 39,127 75,870
Other minor receivables due from Fiat Netherlands Holding N.V. - 6 (6)
Total current financial receivables 311,526 646,074 (334,548)
The current account with Fiat Finance S.p.A. reflects the balance on the account held with that company as part of the
Group’s centralized treasury management. The amount reported at 31 December 2010 is net of €213,000 thousand
reclassified under "Assets to be demerged" (see Note 18), representing financial receivables to be transferred to Fiat
Industrial S.p.A. as a result of the Demerger.
At 31 December 2010, assets arising from derivative financial instruments represents the fair value of the two equity
swaps on Fiat S.p.A. shares entered into with major banks by Fiat Finance S.p.A., under instruction from Fiat S.p.A., to
hedge against an increase in the share price above the exercise price of the stock options granted to the company’s
Chief Executive Officer in 2004 and in 2006, as described in Note 7. The fair value of those equity swap was based on
market quotations at the balance sheet date. At 31 December 2009, this item totaled €39,127 thousand and
represented the fair value of the first of the two above equity swaps entered into by Fiat Netherlands Holding N.V.,
while the fair value of the second equity swap was negative (see Note 25).
The carrying amount of financial receivables is deemed to approximate their fair value.
Fiat S.p.A. – Statutory Financial Statements at 31 December 2010 284