Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity information [Abstract] | |
Entity Registrant Name | Fiat Chrysler Automobiles N.V. |
Entity Central Index Key | 1,605,484 |
Current Fiscal Year End Date | --12-31 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Filer Category | Large Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Well-known Seasoned Issuer | Yes |
Entity Common Stock, Shares Outstanding | 1,540,089,690 |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit or loss [abstract] | |||
Net revenues | € 110,934 | € 111,018 | € 110,595 |
Cost of revenues | 93,975 | 95,295 | 97,620 |
Selling, general and other costs | 7,385 | 7,568 | 7,576 |
Research and development costs | 3,230 | 3,274 | 2,864 |
Result from investments: | 410 | 316 | 143 |
Share of the profit of equity method investees | 409 | 313 | 130 |
Other income from investments | 1 | 3 | 13 |
Reversal of a Brazilian indirect tax liability | 895 | 0 | 0 |
Gains on disposal of investments | 76 | 13 | 0 |
Restructuring costs | 95 | 88 | 53 |
Net financial expenses | 1,469 | 2,016 | 2,366 |
Profit before taxes | 6,161 | 3,106 | 259 |
Tax expense | 2,651 | 1,292 | 166 |
Net profit from continuing operations | 3,510 | 1,814 | 93 |
Profit from discontinued operations, net of tax | 0 | 0 | 284 |
Net profit | 3,510 | 1,814 | 377 |
Net profit attributable to: | |||
Owners of the parent | 3,491 | 1,803 | 334 |
Non-controlling interests | 19 | 11 | 43 |
Net profit from continuing operations attributable to: | |||
Net profit from continuing operations attributable to owners of the parent | 3,491 | 1,803 | 83 |
Non-controlling interests | € 19 | € 11 | € 10 |
Earnings per share [abstract] | |||
Basic earnings per share (in EUR per share) | € 2.27 | € 1.19 | € 0.22 |
Diluted earnings per share (in EUR per share) | 2.24 | 1.18 | 0.22 |
Earnings per share for Net profit from continuing operations: | |||
Basic earnings per share (in EUR per share) | 2.27 | 1.19 | 0.05 |
Diluted earnings per share (in EUR per share) | € 2.24 | € 1.18 | € 0.05 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of comprehensive income [abstract] | |||
Profit (loss) | € 3,510 | € 1,814 | € 377 |
Items that will not be reclassified to the Consolidated Income Statement in subsequent periods: | |||
(Losses)/gains on re-measurement of defined benefit plans | (64) | 584 | 679 |
Share of gains/(losses) on re-measurement of defined benefit plans for equity method investees | 2 | (5) | (2) |
Related tax impact | (21) | (261) | (201) |
Items relating to discontinued operations, net of tax | 0 | 0 | 3 |
Total items that will not be reclassified to the Consolidated Income Statement in subsequent periods (B1) | (83) | 318 | 479 |
Items that may be reclassified to the Consolidated Income Statements in subsequent periods: | |||
Gains/(losses) on cash flow hedging instruments | 147 | (249) | 186 |
Gains on available-for-sale financial assets | 14 | 15 | 11 |
Exchange (losses)/gains on translating foreign operations | (1,942) | 458 | 1,002 |
Share of Other comprehensive (loss) for equity method investees | (121) | (122) | (17) |
Related tax impact | (10) | 69 | (48) |
Items relating to discontinued operations, net of tax | 0 | 0 | 18 |
Total items that may be reclassified to the Consolidated Income Statement in subsequent periods (B2) | (1,912) | 171 | 1,152 |
Total Other comprehensive (loss)/income, net of tax (B1)(B2)(B) | (1,995) | 489 | 1,631 |
Total Comprehensive income (A)(B) | 1,515 | 2,303 | 2,008 |
Total Comprehensive income attributable to: | |||
Owners of the parent | 1,491 | 2,288 | 1,953 |
Non-controlling interests | 24 | 15 | 55 |
Total Comprehensive income attributable to owners of the parent: | |||
Continuing operations | 1,491 | 2,288 | 1,685 |
Discontinued operations | 0 | 0 | 268 |
Owners of the parent | € 1,491 | € 2,288 | € 1,953 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Goodwill and intangible assets with indefinite useful lives | € 13,390 | € 15,222 |
Other intangible assets | 11,542 | 11,422 |
Property, plant and equipment | 29,014 | 30,431 |
Investments accounted for using the equity method | 2,008 | 1,793 |
Other financial assets | 482 | 649 |
Deferred tax assets | 2,004 | 3,699 |
Other receivables | 666 | 581 |
Tax receivables | 83 | 93 |
Accrued income and prepaid expenses | 328 | 372 |
Other non-current assets | 508 | 359 |
Total Non-current assets | 60,025 | 64,621 |
Inventories | 12,922 | 12,121 |
Assets sold with a buy-back commitment | 1,748 | 1,533 |
Trade and other receivables | 7,887 | 7,273 |
Tax receivables | 215 | 206 |
Accrued income and prepaid expenses | 377 | 389 |
Other financial assets | 487 | 762 |
Cash and cash equivalents | 12,638 | 17,318 |
Assets held for sale | 0 | 120 |
Total Current assets | 36,274 | 39,722 |
Total Assets | 96,299 | 104,343 |
Equity | ||
Equity attributable to owners of the parent | 20,819 | 19,168 |
Non-controlling interests | 168 | 185 |
Total Equity | 20,987 | 19,353 |
Liabilities | ||
Long-term debt | 10,726 | 16,111 |
Employee benefits liabilities | 8,584 | 9,052 |
Provisions | 5,770 | 6,520 |
Other financial liabilities | 1 | 16 |
Deferred tax liabilities | 388 | 194 |
Tax payables | 74 | 25 |
Other liabilities | 2,500 | 3,603 |
Total Non-current liabilities | 28,043 | 35,521 |
Trade payables | 21,939 | 22,655 |
Short-term debt and current portion of long-term debt | 7,245 | 7,937 |
Other financial liabilities | 138 | 681 |
Employee benefit liabilities | 694 | 811 |
Provisions | 9,009 | 9,317 |
Tax payables | 309 | 162 |
Other liabilities | 7,935 | 7,809 |
Liabilities held for sale | 0 | 97 |
Total Current liabilities | 47,269 | 49,469 |
Total Equity and liabilities | € 96,299 | € 104,343 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net profit from continuing operations | € 3,510 | € 1,814 | € 93 |
Amortization and depreciation | 5,890 | 5,956 | 5,414 |
Net losses on disposal of tangible and intangible assets | 16 | 13 | 18 |
Net gains on disposal of investments | (76) | (13) | 0 |
Other non-cash items | (199) | 111 | 812 |
Dividends received | 102 | 123 | 112 |
Change in provisions | 555 | 1,519 | 3,206 |
Change in deferred taxes | 1,057 | 389 | (279) |
Change due to assets sold with buy-back commitments and GDP vehicles | (11) | (95) | 6 |
Change in inventories | (1,666) | (471) | (958) |
Change in trade receivables | (206) | 177 | (191) |
Change in trade payables | 1,086 | 776 | 1,571 |
Change in other payables and receivables | 327 | 295 | (580) |
Cash flows from operating activities - discontinued operations | 0 | 0 | 527 |
Total | 10,385 | 10,594 | 9,751 |
Cash flows used in investing activities: | |||
Investments in property, plant and equipment and intangible assets | (8,666) | (8,815) | (8,819) |
Investments in joint ventures, associates and unconsolidated subsidiaries | (18) | (116) | (266) |
Proceeds from the sale of tangible and intangible assets | 61 | 36 | 29 |
Proceeds from disposal of other investments | 4 | 55 | 0 |
Net change in receivables from financing activities | (838) | (483) | 410 |
Change in securities | 175 | 299 | (239) |
Other changes | (14) | (15) | 11 |
Cash flows used in investing activities - discontinued operations | 0 | 0 | (426) |
Total | (9,296) | (9,039) | (9,300) |
Cash flows (used in) /from financing activities: | |||
Issuance of notes | 0 | 1,250 | 2,840 |
Repayment of notes | (2,235) | (2,373) | (7,241) |
Proceeds of other long-term debt | 833 | 1,342 | 3,061 |
Repayment of other long-term debt | (3,439) | (4,618) | (4,412) |
Net change in short-term debt and other financial assets/liabilities | 371 | (591) | (36) |
Net proceeds from initial public offering of 10 percent of Ferrari N.V. | 0 | 0 | 866 |
Distributions paid | (1) | (18) | (283) |
Other changes | (2) | (119) | 10 |
Cash flows from financing activities - discontinued operations | 0 | 0 | 2,067 |
Total | (4,473) | (5,127) | (3,128) |
Translation exchange differences | (1,296) | 228 | 681 |
Total change in Cash and cash equivalents | (4,680) | (3,344) | (1,996) |
Cash and cash equivalents at beginning of the period | 17,318 | 20,662 | 22,840 |
Cash and cash equivalents at end of the period - included within Assets held for distribution | 0 | 0 | 182 |
Cash and cash equivalents at end of the period | € 12,638 | € 17,318 | € 20,662 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - EUR (€) € in Millions | Total | Share capital | Other reserves | Cash flow hedge reserve | Currency translation differences | Available-for-sale financial assets | Remeasure-ment of defined benefit plans | Cumulative share of OCI of equity method investees | Non-controlling interests |
Equity, beginning balance at Dec. 31, 2014 | € 14,377 | € 17 | € 14,338 | € (69) | € 1,479 | € (37) | € (1,578) | € (86) | € 313 |
Distributions | (300) | (17) | (283) | ||||||
Share-based compensation | 80 | 80 | |||||||
Net profit | 377 | 334 | 43 | ||||||
Initial public offering of 10 percent Ferrari N.V | 866 | 869 | 7 | (4) | 1 | (7) | |||
Other comprehensive income/(loss) | 1,631 | 132 | 1,016 | 11 | 479 | (19) | 12 | ||
Other changes | (63) | (149) | 1 | 85 | |||||
Equity, ending balance at Dec. 31, 2015 | 16,968 | 17 | 15,455 | 70 | 2,492 | (26) | (1,098) | (105) | 163 |
Capital increase | 18 | 18 | |||||||
Mandatory Convertible Securities (Note 26) | 0 | 2 | (2) | ||||||
Share-based compensation | 98 | 98 | |||||||
Net profit | 1,814 | 1,803 | 11 | ||||||
Other comprehensive income/(loss) | 489 | (182) | 456 | 15 | 324 | (128) | 4 | ||
Other changes | (34) | (42) | 49 | (36) | 6 | (11) | |||
Equity, ending balance at Dec. 31, 2016 | 19,353 | 19 | 17,312 | (63) | 2,912 | (11) | (768) | (233) | 185 |
Capital increase | 3 | 3 | |||||||
Demerger of Itedi S.p.A | (87) | (64) | 5 | (28) | |||||
Distributions | (1) | (1) | |||||||
Share-based compensation | 115 | 115 | |||||||
Net profit | 3,510 | 3,491 | 19 | ||||||
Other comprehensive income/(loss) | (1,995) | 131 | (1,942) | 14 | (84) | (119) | 5 | ||
Other changes | 89 | 67 | 37 | (15) | |||||
Equity, ending balance at Dec. 31, 2017 | € 20,987 | € 19 | € 20,921 | € 68 | € 970 | € 3 | € (810) | € (352) | € 168 |
CONSOLIDATED STATEMENT OF CHAN7
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) | Oct. 26, 2015 | Dec. 31, 2015 |
Ferrari N.V. | ||
Proportion of ownership interest in subsidiary sold | 10.00% | 10.00% |
Principal activities
Principal activities | 12 Months Ended |
Dec. 31, 2017 | |
General Information About Financial Statements [Abstract] | |
Principal Activities | Principal Activities On January 29, 2014, the Board of Directors of Fiat S.p.A. (“Fiat”) approved a proposed corporate reorganization resulting in the formation of Fiat Chrysler Automobiles N.V. and establishing Fiat Chrysler Automobiles N.V., organized in the Netherlands, as the parent of the Group with its principal executive offices located at 25 St. James's Street, London SW1A 1HA, United Kingdom. Fiat Chrysler Automobiles N.V. was incorporated as a public limited liability company ( naamloze vennootschap ) under the laws of the Netherlands on April 1, 2014 under the name Fiat Investments N.V. On October 12, 2014, the cross-border legal merger of Fiat into its 100 percent owned direct subsidiary Fiat Investments N.V. (the “Merger”) became effective. The Merger, which took the form of a reverse merger, resulted in Fiat Investments N.V. being the surviving entity and was renamed Fiat Chrysler Automobiles N.V. (“FCA NV”). Unless otherwise specified, the terms “Group”, “FCA Group”, “Company” and “FCA”, refer to FCA NV, together with its subsidiaries and its predecessor prior to the completion of the Merger, or any one or more of them, as the context may require. Any references to “Fiat” refer solely to Fiat S.p.A., the predecessor of FCA NV prior to the Merger. The Group and its subsidiaries, of which the most significant is FCA US LLC (“FCA US”), together with its subsidiaries, are engaged in the design, engineering, manufacturing, distribution and sale of automobiles and light commercial vehicles, engines, transmission systems, automotive-related components, metallurgical products and production systems. In addition, the Group is also involved in certain other activities, including services (mainly captive), which represent an insignificant portion of the Group's business. All references in this report to “Euro” and “€” refer to the currency introduced at the start of the third stage of European Economic and Monetary Union pursuant to the Treaty on the Functioning of the European Union, as amended. The Group’s financial information is presented in Euro. All references to “U.S. Dollars,” “U.S. Dollar”, “U.S.$” and “$” refer to the currency of the United States of America (or “U.S.”). |
Basis of presentation
Basis of presentation | 12 Months Ended |
Dec. 31, 2017 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of Presentation | Basis of Preparation Authorization of Consolidated Financial Statements and compliance with International Financial Reporting Standards The Consolidated Financial Statements, together with notes thereto of FCA, at December 31, 2017 were authorized for issuance by the Board of Directors on February 20, 2018 and have been prepared in accordance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), as well as IFRS as adopted by the European Union. There is no effect on these consolidated financial statements resulting from differences between IFRS as issued by the IASB and IFRS as adopted by the European Union. The designation “IFRS” also includes International Accounting Standards (“IAS”) as well as all interpretations of the IFRS Interpretations Committee (“IFRIC”). Basis of Preparation The Consolidated Financial Statements are prepared under the historical cost method, modified as required for the measurement of certain financial instruments, as well as on a going concern basis. In this respect, the Group’s assessment is that no material uncertainties (as defined in IAS 1- Presentation of Financial Statements ) exist about its ability to continue as a going concern. For presentation of the Consolidated Income Statement, the Group uses a classification based on the function of expenses, rather than based on their nature, as it is more representative of the format used for internal reporting and management purposes and is consistent with international practice in the automotive sector. Significant Accounting Policies Basis of Consolidation Subsidiaries Subsidiaries are entities over which the Group has control. Control is achieved when the Group has power over the investee, when it is exposed to, or has rights to, variable returns from its involvement with the investee, and has the ability to use its power over the investee to affect the amount of the investor’s returns. Subsidiaries are consolidated on a line by line basis from the date which control is achieved by the Group. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. The Group recognizes a non-controlling interest in the acquiree on a transaction-by-transaction basis, either at fair value or at the non-controlling interest’s share of the recognized amounts of the acquiree’s identifiable net assets. Net profit or loss and each component of Other comprehensive income/(loss) are attributed to Equity attributable to owners of the parent and to Non-controlling interests. Total comprehensive income/(loss) of subsidiaries is attributed to Equity attributable to the owners of the parent and to the non-controlling interest even if this results in a deficit balance in Non-controlling interests. Changes in the Group’s ownership interests in a subsidiary that do not result in the Group losing control over the subsidiary are accounted for as equity transactions. The carrying amounts of the Equity attributable to owners of the parent and Non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the carrying amount of the non-controlling interests and the fair value of the consideration paid or received in the transaction is recognized directly in the Equity attributable to the owners of the parent. Subsidiaries are deconsolidated from the date which control ceases. When the Group ceases to have control over a subsidiary, it derecognizes the assets (including any goodwill) and liabilities of the subsidiary at their carrying amounts, derecognizes the carrying amount of non-controlling interests in the former subsidiary and recognizes the fair value of any consideration received from the transaction. Any retained interest in the former subsidiary is then remeasured to its fair value. All intra-group balances and transactions, and any unrealized gains and losses arising from intra-group transactions, are eliminated in preparing the Consolidated Financial Statements. Interests in Joint Ventures and Associates A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not have control or joint control over those policies. Joint ventures and associates are accounted for using the equity method of accounting from the date joint control and significant influence is obtained. On acquisition of the investment, any excess of the cost of the investment and the Group’s share of the net fair value of the investee’s identifiable assets and liabilities is recognized as goodwill and is included in the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the investee’s identifiable assets and liabilities over the cost of the investment is included as income in the determination of the Group’s share of the investee’s profit/(loss) in the acquisition period. Under the equity method, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit/(loss) and other comprehensive income/(loss) of the investee. The Group’s share of the investee’s profit/(loss) is recognized in the Consolidated Income Statement. Distributions received from an investee reduce the carrying amount of the investment. Post-acquisition movements in Other comprehensive income/(loss) are recognized in Other comprehensive income/(loss) with a corresponding adjustment to the carrying amount of the investment. Unrealized gains on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group’s interest in the joint venture or associate. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Group’s share of the losses of a joint venture or associate exceeds the Group’s interest in that joint venture or associate, the Group discontinues recognizing its share of further losses. Additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture or associate. The Group discontinues the use of the equity method from the date the investment ceases to be an associate or a joint venture, or when it is classified as available-for-sale. Interests in Joint Operations A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. When the Group undertakes its activities under joint operations, it recognizes its related interest in the joint operation including: (i) its assets, including its share of any assets held jointly, (ii) its liabilities, including its share of any liabilities incurred jointl y, (iii) its revenue from the sale of its share of the output arising from the joint operation, (iv) its share of the revenue from the sale of the output by the joint operation and (v) its expenses, including its share of any expenses incurred jointly. Assets held for sale, Assets held for distribution and Discontinued Operations Pursuant to IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations , non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset or disposal group and the sale is highly probable, with the sale expected to be completed within one year from the date of classification. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell and are presented separately in the Consolidated Statement of Financial Position. Non-current assets and disposal groups are not classified as held for sale within the comparative period presented for the Consolidated Statement of Financial Position. A discontinued operation is a component of the Group that either has been disposed of or is classified as held for sale and (i) represents either a separate major line of business or a geographical area of operations, (ii) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations, or (iii) is a subsidiary acquired exclusively with a view to resell and the disposal involves loss of control. Classification as a discontinued operation occurs upon disposal or when the asset or disposal group meets the criteria to be classified as held for sale, if earlier. When the asset or disposal group is classified as a discontinued operation, the comparative information is reclassified within the Consolidated Income Statement as if the asset or disposal group had been discontinued from the start of the earliest comparative period presented. The classification, presentation and measurement requirements of IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations also apply to an asset or disposal group that is classified as held for distribution to owners, whereby there must be commitment to the distribution, the asset or disposal group must be available for immediate distribution and the distribution must be highly probable. Foreign currency The functional currency of the Group’s entities is the currency of their respective primary economic environment. In individual companies, transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate prevailing at the date of the Consolidated Statement of Financial Position. Exchange differences arising on the settlement of monetary items, or on reporting monetary items at rates different from those initially recorded, are recognized in the Consolidated Income Statement. All assets and liabilities of foreign consolidated companies with a functional currency other than the Euro are translated using the closing rates at the date of the Consolidated Statement of Financial Position. Income and expenses are translated into Euro at the average exchange rate for the period. Translation differences resulting from the application of this method are classified within Other comprehensive income/(loss) until the disposal of the subsidiary. Average exchange rates for the period are used to translate the cash flows of foreign subsidiaries in preparing the Consolidated Statement of Cash Flows. The principal exchange rates used to translate other currencies into Euro were as follows: 2017 2016 2015 Average At December 31 Average At December 31 Average At December 31 U.S. Dollar (U.S.$) 1.130 1.199 1.107 1.054 1.109 1.089 Brazilian Real (BRL) 3.605 3.973 3.857 3.431 3.699 4.312 Chinese Renminbi (CNY) 7.629 7.804 7.352 7.320 6.972 7.061 Canadian Dollar (CAD) 1.465 1.504 1.466 1.419 1.418 1.512 Mexican Peso (MXN) 21.329 23.661 20.664 21.772 17.611 18.915 Polish Zloty (PLN) 4.257 4.177 4.363 4.410 4.184 4.264 Argentine Peso (ARS) 18.683 22.595 16.327 16.707 10.271 14.136 Pound Sterling (GBP) 0.877 0.887 0.819 0.856 0.726 0.734 Swiss Franc (CHF) 1.112 1.170 1.090 1.074 1.068 1.084 Intangible assets Goodwill Goodwill represents the excess of the fair value of consideration paid over the fair value of net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. After initial recognition, Goodwill is measured at cost less any accumulated impairment losses. Intangible assets with indefinite useful lives Intangible assets with indefinite useful lives consist principally of brands which have no legal, contractual, competitive, economic, or other factors that limit their useful lives. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Development expenditures Development expenditures for vehicle production and related components, engines and production systems are recognized as an asset if both of the following conditions within IAS 38 – Intangible assets are met: (i) that development expenditure can be measured reliably and (ii) that the technical feasibility of the product, volumes and pricing support the view that the development expenditure will generate future economic benefits. Capitalized development expenditures include all direct and indirect costs that may be directly attributed to the development process. All other development expenditures are expensed as incurred. Capitalized development expenditures are amortized on a straight-line basis from the beginning of production over the expected life cycle of the models (generally 5-6 years ) or powertrains developed (generally 10-12 years ). Property, plant and equipment Cost Property, plant and equipment is initially recognized at cost and includes the purchase price, any costs directly attributable to bringing the assets to the location and condition necessary to be capable of operating in the manner intended by management and any initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Self-constructed assets are initially recognized at production cost. Subsequent expenditures and the cost of replacing parts of an asset are capitalized only if they increase the future economic benefits embodied in that asset. All other expenditures are expensed as incurred. When such replacement costs are capitalized, the carrying amount of the parts that are replaced is recognized in the Consolidated Income Statement. Assets held under finance leases, which provide the Group with substantially all the risks and rewards of ownership, are recognized as assets of the Group at their fair value or at the present value of the minimum lease payments, if lower. The corresponding liability to the lessor is included in the Consolidated Statement of Financial Position within Debt. Depreciation During years ended December 31, 2017 , 2016 and 2015 , assets were depreciated on a straight-line basis over their estimated useful lives using the following rates: Depreciation rates Buildings 3% - 8% Plant, machinery and equipment 3% - 33% Other assets 5% - 33% Leases under which the lessor retains substantially all the risks and rewards of ownership of the leased assets are classified as operating leases. Operating lease expenditures are expensed on a straight-line basis over the respective lease term. Borrowing Costs Borrowing costs that are directly attributable to the acquisition, construction or production of property, plant or equipment or an intangible asset that is deemed to be a qualifying asset as defined in IAS 23 - Borrowing Costs are capitalized. The amount of borrowing costs eligible for capitalization corresponds to the actual borrowing costs incurred during the period, less any investment income on the temporary investment of any borrowed funds not yet used. The amount of borrowing costs capitalized at December 31, 2017 and 2016 was € 225 million and € 244 million , respectively. Impairment of long-lived assets At the end of each reporting period, the Group assesses whether there is any indication that its finite-lived intangible assets (including capitalized development expenditures) and its property, plant and equipment may be impaired. If indications of impairment are present, the carrying amount of the asset is reduced to its recoverable amount which is the higher of fair value less costs of disposal and its value in use. The recoverable amount is determined for the individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case the asset is tested as part of the cash-generating unit (“CGU”) to which the asset belongs. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. In assessing the value in use of an asset or CGU, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognized if the recoverable amount is lower than the carrying amount. When an impairment loss for assets no longer exists or has decreased, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but not in excess of the carrying amount that would have been recorded had no impairment loss been recognized. The reversal of an impairment loss is recognized in the Consolidated Income Statement. Refer to the section — Use of Estimates below for additional information. Financial assets and liabilities Financial assets, as defined in IAS 39 – Financial Instruments: Recognition and Measurement , primarily include trade receivables, receivables from financing activities, securities that represent temporary investments of available funds and do not satisfy the requirements for being classified as cash equivalents (which include available-for-sale, held-for-trading and held-to-maturity securities), investments in other companies, derivative financial instruments, as well as Cash and cash equivalents. Cash and cash equivalents include cash at banks, units in money market funds and other money market securities, primarily comprised of commercial paper and certificates of deposit that are readily convertible into cash, with original maturities of three months or less at the date of purchase. Cash and cash equivalents are subject to an insignificant risk of changes in value, and consist of balances across various primary national and international money market instruments. Money market funds consist of investments in high quality, short-term, diversified financial instruments which can generally be liquidated on demand. Financial liabilities primarily consist of Debt, Derivative financial instruments, Trade payables and Other liabilities. Measurement Financial assets are recognized on the basis of the settlement date and, on initial recognition, are measured at acquisition cost, including transaction costs. Subsequent to initial recognition, available-for-sale and held-for-trading securities are measured at fair value. When market prices are not directly available, the fair value of available-for-sale and held-for trading securities is measured using appropriate valuation techniques (e.g. discounted cash flow analysis based on market information available at the balance sheet date). Gains and losses on available-for-sale securities are recognized in Other comprehensive income/(loss) until the financial asset is disposed of or is impaired. When the asset is disposed of, the cumulative gains or losses, including those previously recognized in Other comprehensive income/(loss), are reclassified to the Consolidated Income Statement during the period and are recognized within Net financial expenses. Gains and losses arising from changes in the fair value of held-for-trading securities are recognized in the Consolidated Income Statement. When the asset is impaired, the losses are recognized in the Consolidated Income Statement. Loans and receivables which are not held by the Group for trading (loans and receivables originating in the ordinary course of business) and held-to-maturity securities are measured, to the extent that they have a fixed term, at amortized cost, using the effective interest method. When these financial assets do not have a fixed term, they are measured at acquisition cost. Receivables with maturities of over one year which bear no interest, or have an interest rate significantly lower than market rates, are discounted using market rates. Assessments are made regularly as to whether there is any objective evidence that the asset or group of assets may be impaired. If any such evidence exists, the impairment loss is recognized in the Consolidated Income Statement. Investments in other companies are measured at fair value. Equity investments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost, less any impairment losses. For investments classified as available-for-sale, gains or losses arising from changes in fair value are recognized in Other comprehensive income/(loss) until the assets are sold or are impaired, at which time, the cumulative Other comprehensive income/(loss) is recognized in the Consolidated Income Statement. Gains and losses arising from changes in the fair value of held-for-trading investments are recognized in the Consolidated Income Statement. Investments in other companies for which fair value is not available are stated at cost less any impairment losses. Dividends received are included in Other income from investments. Except for derivative financial instruments, which are described in more detail below, financial liabilities are measured at amortized cost using the effective interest method. Derivative financial instruments Derivative financial instruments are used for economic hedging purposes in order to reduce currency, interest rate and market price risks (primarily related to commodities and securities). In accordance with IAS 39 - Financial Instruments: Recognition and Measurement , derivative financial instruments are recognized on the basis of the settlement date and, on initial recognition, are measured at acquisition cost, including transaction costs. Subsequent to initial recognition, all derivative financial instruments are measured at fair value. Furthermore, derivative financial instruments qualify for hedge accounting only when there is formal designation and documentation of the hedging relationship at inception of the hedge, the hedge is expected to be highly effective, its effectiveness can be reliably measured and it is highly effective throughout the financial reporting periods for which it is designated. When derivative financial instruments qualify for hedge accounting, the following accounting treatments apply: • Fair value hedges – Where a derivative financial instrument is designated as a hedge of the exposure to changes in fair value of a recognized asset or liability that is attributable to a particular risk and could affect the Consolidated Income Statement, the gain or loss from remeasuring the hedging instrument at fair value is recognized in the Consolidated Income Statement. The gain or loss on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognized in the Consolidated Income Statement. • Cash flow hedges – Where a derivative financial instrument is designated as a hedge of the exposure to variability in future cash flows of a recognized asset or liability or a highly probable forecasted transaction and could affect the Consolidated Income Statement, the effective portion of any gain or loss on the derivative financial instrument is recognized directly in Other comprehensive income/(loss). The cumulative gain or loss is reclassified from Other comprehensive income/(loss) to the Consolidated Income Statement at the same time as the economic effect arising from the hedged item that affects the Consolidated Income Statement. The gain or loss associated with a hedge or part of a hedge that has become ineffective is recognized in the Consolidated Income Statement immediately. When a hedging instrument or hedge relationship is terminated but the hedged transaction is still expected to occur, the cumulative gain or loss realized to the point of termination remains in Other comprehensive income/(loss) and is recognized in the Consolidated Income Statement at the same time as the underlying transaction occurs. If the hedged transaction is no longer probable, the cumulative unrealized gain or loss held in Other comprehensive income/(loss) is recognized in the Consolidated Income Statement immediately. • Hedges of a net investment – If a derivative financial instrument is designated as a hedging instrument for a net investment in a foreign operation, the effective portion of the gain or loss on the derivative financial instrument is recognized in Other comprehensive income/(loss). The cumulative gain or loss is reclassified from Other comprehensive income/(loss) to the Consolidated Income Statement upon disposal of the foreign operation. If hedge accounting cannot be applied, the gains or losses from the fair value measurement of derivative financial instruments are recognized immediately in the Consolidated Income Statement. Refer to Note 16 , Derivative financial assets and liabilities for additional information on the Group's derivative financial instruments. Transfers of financial assets The Group derecognizes financial assets when the contractual rights to the cash flows arising from the asset are no longer held or if it transfers substantially all the risks and rewards of ownership of the financial asset. On derecognition of financial assets, the difference between the carrying amount of the asset and the consideration received or receivable for the transfer of the asset is recognized in the Consolidated Income Statement. The Group transfers certain of its financial, trade and tax receivables, mainly through factoring transactions. Factoring transactions may be either with recourse or without recourse. Certain transfers include deferred payment clauses (for example, when the payment by the factor of a minor part of the purchase price is dependent on the total amount collected from the receivables) requiring first loss cover, whereby the transferor has priority participation in the losses, or requires a significant exposure to the variability of cash flows arising from the transferred receivables to be retained. These types of transactions do not meet the requirements of IAS 39 – Financial Instruments: Recognition and Measurement, for the derecognition of the assets since the risks and rewards connected with ownership of the financial asset are not transferred, and accordingly the Group continues to recognize these receivables within the Consolidated Statement of Financial Position and recognizes a financial liability for the same amount under Asset-backed financing, which is included within Debt. The gains and losses arising from the transfer of these receivables are recorded only when they are derecognized. Inventories Inventories of raw materials, semi-finished products and finished goods are stated at the lower of cost and net realizable value, with cost being determined on a first-in, first-out (“FIFO”) basis. The measurement of Inventories includes the direct cost of materials and labor as well as indirect costs (variable and fixed). A provision is made for obsolete and slow-moving raw materials, finished goods, spare parts and other supplies based on their expected future use and realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs for sale and distribution. The measurement of production systems construction contracts is based on the stage of completion determined as the proportion of cost incurred at the balance sheet date over the estimated total contract cost. These items are presented net of progress billings received from customers. Any losses on such contracts are recorded in the Consolidated Income Statement when they are known. Employee benefits Defined contribution plans Costs arising from defined contribution plans are expensed as incurred. Defined benefit plans The Group’s net obligations are determined separately for each plan by estimating the present value of future benefits that employees have earned and deducting the fair value of any plan assets. The present value of defined benefit obligations are measured using actuarial techniques and actuarial assumptions that are unbiased, mutually compatible and attribute benefits to periods in which the obligation to provide post-employment benefits arise by using the Projected Unit Credit Method. Plan assets are recognized and measured at fair value. When the net obligation is a potential asset, the recognized amount is limited to the present value of any economic benefits available in the form of future refunds or reductions in future contributions to the plan (asset ceiling). The components of the defined benefit cost are recognized as follows: • Service cost is recognized in the Consolidated Income Statement by function and is presented in the relevant line items (Cost of revenues, Selling, general and other costs and Research and development costs); • Net interest on the defined benefit liability or asset is recognized in the Consolidated Income Statement within Net financial expenses and is determined by multiplying the net liability/(asset) by the discount rate used to discount obligations taking into account the effect of contributions and benefit payments made during the year; and • Re-measurement components of the net obligations, which comprise actuarial gains and losses, the return on plan assets (excluding interest income recognized in the Consolidated Income Statement) and any change in the effect of the asset ceiling are recognized immediately in Other comprehensive income/(loss). These re-measurement components are not reclassified to the Consolidated Income Statement in a subsequent period. Past service costs arising from plan amendments and curtailments and gains and losses on the settlement of a plan are recognized immediately in the Consolidated Income Statement. Other long term employee benefits The Group’s obligations represent the present value of future benefits that employees have earned in return for their service. Re-measurement components on other long term employee benefits are recognized in the Consolidated Income Statement in the period in which they arise. Share-based compensation We have various compensation plans that provide for the granting of share-based compensation to certain employees and directors. Share-based compensation plans are accounted for in accordance with IFRS 2 - Share-based Payment, which requires the recognition of share-based compensation expense based on fair value. Compensation expense for equity-classified awards is measured at the grant date based on the fair value of the award and using the Monte Carlo simulation model, which requires the input of subjective assumptions, including the expected volatility of our common stock, interest rates and a correlation coefficient between our common stock and the relevant market index. For those awards with post-vesting contingencies, we apply an adjustment to account for the probability of meeting the contingencies. Management uses its best estimates incorporating both publicly observable data and discounted cash flow methodologies in the measurement of fair value for liability-classified awards, which are remeasured to fair value at each balance sheet date until the award is settled. Compensation expense is recognized over the vesting period with an offsetting increase to equity or other liabilities depending on the nature of the award. Share-based compensation expense related to plans with graded vesting are recognized using the graded vesting method. Share-based compensation expense is recognized within Selling, general and other costs within the Consolidated Income Statement. Revenue recognition Revenue from the sale of vehicles and service parts is recognized if it is probable that the economic benefits assoc |
Scope of consolidation
Scope of consolidation | 12 Months Ended |
Dec. 31, 2017 | |
Interests In Other Entities [Abstract] | |
Scope of consolidation | Scope of consolidation The following table sets forth a list of the principal subsidiaries of FCA, which are grouped according to each of our reportable segments as well as our holding and other companies: Name Country Percentage NAFTA FCA US LLC USA (Delaware) 100.00 FCA Canada Inc. Canada 100.00 FCA Mexico, S.A. de C.V. Mexico 100.00 LATAM FCA Fiat Chrysler Automoveis Brasil LTDA Brazil 100.00 FCA Automobiles Argentina S.A. Argentina 100.00 Banco Fidis S.A. Brazil 100.00 APAC Chrysler Group (China) Sales Limited People’s Republic of China 100.00 FCA Japan Ltd. Japan 100.00 FCA Australia Pty Ltd. Australia 100.00 FCA Automotive Finance Co. Ltd. People’s Republic of China 100.00 EMEA FCA Italy S.p.A. Italy 100.00 FCA Melfi S.r.l. Italy 100.00 FCA Poland Spólka Akcyjna Poland 100.00 FCA Powertrain Poland Sp. z o.o. Poland 100.00 FCA Serbia d.o.o. Kragujevac Serbia 66.67 FCA Germany AG Germany 100.00 FCA France S.A. France 100.00 Fiat Chrysler Automobiles UK Ltd. United Kingdom 100.00 Fiat Chrysler Automobiles Spain S.A. Spain 100.00 Fidis S.p.A. Italy 100.00 Maserati Maserati S.p.A. Italy 100.00 Maserati (China) Cars Trading Co. Ltd. People's Republic of China 100.00 Maserati North America Inc. USA (Delaware) 100.00 Components Magneti Marelli S.p.A. Italy 99.99 (1) Automotive Lighting LLC USA (Delaware) 100.00 Automotive Lighting Reutlingen GmbH Germany 99.99 Teksid S.p.A. Italy 100.00 Comau S.p.A. Italy 100.00 COMAU LLC USA (Delaware) 100.00 Holding Companies and Other Companies FCA North America Holdings LLC USA (Delaware) 100.00 Fiat Chrysler Finance S.p.A. Italy 100.00 Fiat Chrysler Finance Europe S.A. Luxembourg 100.00 __________________________ (1) FCA holds 100 percent of the voting interest in Magneti Marelli S.p.A. Itedi S.p.A Held for Sale and Discontinued Operations On August 1, 2016, FCA announced the signing of a framework agreement which set out terms of the proposed integration, through a merger, between FCA's consolidated media and publishing subsidiary, Italiana Editrice S.p.A (“Itedi”), in which FCA had a 77 percent ownership interest, and the Italian media group, GEDI Gruppo Editoriale S.p.A. (“GEDI”), previously known as Gruppo Editoriale L’Espresso S.p.A. All the conditions precedent for the Merger were met and all regulatory approvals from Italian state authorities that regulate the publishing and media sectors were received in June 2017. All the necessary steps for the merger were completed and on June 27, 2017, FCA and Itedi’s non-controlling shareholder, Ital Press Holding S.p.A. (“Ital Press”), transferred 100 percent of the shares of Itedi to GEDI in exchange for newly issued GEDI shares, resulting in CIR S.p.A., the controlling shareholder of GEDI, holding a 43.4 percent ownership interest in GEDI, FCA holding 14.63 percent and Ital Press holding 4.37 percent. Following the completion of the Merger on June 27, 2017, FCA distributed its entire interest in GEDI to holders of FCA common shares on July 2, 2017 in the ratio of 0.0484 GEDI ordinary shares for each FCA common share. As a result, the Group recorded a gain of €49 million within Gains on disposal in the Consolidated Income Statement for the year ended December 31, 2017. Itedi was not classified as a discontinued operation as it did not represent a separate major line of business or geographical area of operations for the Group, or a part of it. The following table summarizes the assets and liabilities of Itedi S.p.A that were classified as held for sale at December 31, 2016: At December 31, 2016 (€ million) Assets classified as held for sale Goodwill € 54 Other intangible assets 7 Property, plant and equipment 17 Trade receivables 25 Other 17 Total Assets held for sale € 120 Liabilities classified as held for sale Provisions € 38 Trade payables 19 Debt and Other 40 Total Liabilities held for sale € 97 Ferrari Spin-off and Discontinued Operations On October 26, 2015, Ferrari N.V., a subsidiary of FCA, completed its initial public offering (“IPO”) in which FCA sold 10 percent of Ferrari N.V. common shares (“Ferrari IPO”) and received net proceeds of approximately €0.9 billion , which resulted in FCA owning 80 percent of Ferrari N.V. common shares, Piero Ferrari owning 10 percent of common shares and public shareholders owning the remaining 10 percent of common shares. The Ferrari IPO was accounted for as an equity transaction, with the effects on Equity attributable to owners of the parent being as follows: At October 26, 2015 (€ million) Consideration received € 866 Less: Carrying amount of equity interest sold (7 ) Effect on Equity attributable to owners of the parent € 873 In connection with the Ferrari IPO and in preparation for the spin-off of the remaining common shares of Ferrari N.V. owned by FCA, FCA carried out an internal corporate restructuring. As part of this reorganization, FCA transferred its shares of Ferrari S.p.A. to Ferrari N.V. and also provided a capital contribution to Ferrari N.V., while Ferrari N.V. issued a note payable to FCA in the amount of € 2.8 billion . This internal restructuring was a common control transaction and did not have an accounting impact on the Consolidated Financial Statements. As a result, and in connection with the transactions in which Piero Ferrari exchanged his shares in Ferrari S.p.A. for Ferrari N.V. shares, FCA paid € 280 million to Piero Ferrari as consideration for the dilution of his share value due to the issuance of the € 2.8 billion note payable, which was recorded as a reduction to non-controlling interests. On December 3, 2015, an extraordinary general meeting of FCA shareholders was held, whereby the transactions intended to separate FCA’s remaining ownership interest in Ferrari N.V. and to distribute that ownership interest to holders of FCA shares and mandatory convertible securities were approved. As the spin-off of Ferrari N.V. became highly probable with the aforementioned shareholders' approval and since it was available for immediate distribution at that date, the Ferrari segment met the criteria to be classified as a disposal group held for distribution to owners and a discontinued operation pursuant to IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations at December 31, 2015 . Since Exor N.V., which controls and consolidates FCA (refer to Note 24 , Related party transactions ), continued to control and consolidate Ferrari N.V. after the spin-off, this was deemed to be a common control transaction and was accounted for at book value. The operating results of Ferrari were excluded from the Group's continuing operations and presented as a single line item within the Consolidated Income Statement, Consolidated Statement of Comprehensive Income and Consolidated Statement of Cash flows for the year ended December 31, 2015. The following table summarizes the operating results of Ferrari that were excluded from the Consolidated Income Statement for the year end December 31, 2015: For the year ended December 31, 2015 (1) (€ million) Net revenues € 2,596 Expenses 2,152 Net financial expenses/(income) 16 Profit before taxes from discontinued operations 428 Tax expense 144 Profit from discontinued operations, net of tax € 284 ________________________________ (1) Amounts presented are not representative of the income statement and the financial position of Ferrari on a stand-alone basis; amounts are net of transactions between Ferrari and other companies of the Group. The spin-off of Ferrari N.V. from the Group was completed on January 3, 2016. The assets and liabilities of the Ferrari segment were distributed to holders of FCA shares and mandatory convertible securities without any gain or loss on distribution. FCA shareholders received one common share of Ferrari N.V. for every ten common shares of FCA and holders of the mandatory convertible securities were entitled to receive 0.77369 common shares of Ferrari N.V. for each mandatory convertible security of U.S.$ 100 notional amount held of record on January 5, 2016. In addition, FCA shareholders participating in the FCA loyalty voting structure received one special voting share of Ferrari N.V. for every ten special voting shares of FCA held of record on January 5, 2016. On January 13, 2016, holders of FCA shares also received a cash payment of € 0.01 , less any required applicable withholding tax, for each share held of record as of January 5, 2016. Deconsolidation of FCA Venezuela Throughout 2017, macroeconomic conditions in Venezuela continued to deteriorate. In the second quarter of 2017, asset impairment charges of €21 million relating to certain real estate assets in Venezuela were recognized, recorded within Selling, general and other costs. In December 2017, due to the restrictive monetary policy in Venezuela coupled with the inability to pay dividends and the U.S. Dollar obligations, as well as the deteriorating economic conditions, which has constrained the ability to maintain normal production in Venezuela, we concluded we are no longer able to exert control over our Venezuela operations in order to affect our returns. As such, in accordance with IFRS 10 - Consolidated Financial Statements , as of December 31, 2017, we deconsolidated our subsidiary FCA Venezuela LLC (“FCA Venezuela”), which resulted in a pre-tax, non-cash charge of €42 million recorded within Selling, general and other costs in the Consolidated Income Statement for the year ended December 31, 2017. Upon deconsolidation, FCA's investment in FCA Venezuela was recognized at fair value, which was nil at December 31, 2017 and will be accounted for at cost in subsequent periods. In March 2016, the Venezuelan government modified its foreign currency exchange systems and the official exchange rate, CENCOEX, was replaced with DIPRO, only available for purchases and sales of essential items, such as food and medicine. In addition, the official exchange rate was devalued from 6.3 VEF to 10 VEF per U.S. Dollar and the SICAD exchange system was terminated. The SIMADI exchange rate was replaced with the “floating” Sistema de Divisa Complementaria, or the “DICOM” exchange rate, available for all transactions not subject to the DIPRO exchange rate. In 2016, the DICOM exchange rate was used to complete the majority of FCA Venezuela's transactions to exchange VEF for U.S. Dollars. At December 31, 2016, the DICOM exchange rate of 674 VEF per U.S. Dollar and total re-measurement charges, including the devaluation and the write-down of SICAD receivables, of €19 million were recorded within Cost of revenues in the Consolidated Income Statement for the year ended December 31, 2016. In February 2015, the SIMADI rate introduced by the Venezuelan government began trading at 170.0 Venezuelan Bolivar (“VEF”) to U.S. Dollar for entities in the private sector. Also in February 2015, the Venezuelan government also announced that the Supplementary Foreign Currency Administration System (“SICAD I”) and the additional system introduced in March 2014 (“SICAD II”) would be merged into the SICAD, a single exchange system, with a rate starting at 12.0 VEF to U.S. Dollar. As of March 31, 2015, the SICAD exchange rate was expected to be used to complete the majority of FCA Venezuela's transactions and as such, it was deemed the appropriate rate to use to convert our VEF denominated monetary assets and liabilities to U.S. Dollar. At June 30, 2015, the Group then adopted the SIMADI exchange rate and recorded a re-measurement charge on our VEF denominated net monetary assets in Venezuela of €53 million using an exchange rate of 197.3 VEF per U.S. Dollar. In addition, we recorded a €27 million charge for the write-down of inventory in Venezuela, as due to pricing controls, we were unable to increase VEF sales prices to compensate for the devaluation. The total charge of €80 million was recorded within Cost of revenues in the Consolidated Income Statement for the year ended December 31, 2015. The following significant transactions with non-controlling interests occurred: 2017 • Disposal of the 16.0 percent of the Group's interest in FMM Pernambuco to the minority interest in January 2017, and subsequent loss of control during the third quarter of 2017 resulting in a gain on disposal of €19 million . 2016 • There were no significant transactions with non-controlling interests. 2015 • Acquisition of the remaining 15.2 percent interest in Teksid S.p.A. from Renault in December 2015. As a result, all the rights and obligations arising from the previous shareholder agreement between FCA and Renault, including the put option, were canceled. |
Net revenues
Net revenues | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
Net revenues | Net revenues Net revenues were as follows: Years ended December 31 2017 2016 2015 (€ million) Revenues from: Sales of goods € 107,219 € 107,497 € 107,095 Services provided 2,217 2,237 1,600 Contract revenues 929 737 1,309 Lease installments from assets sold with a buy-back commitment 421 405 403 Interest income of financial services activities 148 142 188 Total Net revenues € 110,934 € 111,018 € 110,595 Net revenues attributed by geographical area were as follows: Years ended December 31 2017 2016 2015 (€ million) Net revenues in: North America € 68,374 € 71,047 € 71,979 Italy 8,755 8,478 7,165 Brazil 6,406 4,953 5,103 China 4,240 4,493 4,720 Germany 3,990 4,160 3,794 France 3,487 3,266 2,852 Argentina 1,817 1,409 1,175 Spain 1,569 1,467 1,254 Turkey 1,456 1,705 1,682 United Kingdom 1,366 1,632 1,744 Japan 816 713 625 Australia 497 473 936 Other countries 8,161 7,222 7,566 Total Net revenues € 110,934 € 111,018 € 110,595 |
Research and development costs
Research and development costs | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
Research and development costs | Research and development costs Research and development costs were as follows: Years ended December 31 2017 2016 2015 (€ million) Research and development expenditures expensed € 1,696 € 1,661 € 1,449 Amortization of capitalized development expenditures 1,424 1,492 1,194 Impairment and write-off of capitalized development expenditures 110 121 221 Total Research and development costs € 3,230 € 3,274 € 2,864 The impairment and write-off of capitalized development expenditures during the year ended December 31, 2017 mainly related to global product portfolio changes in EMEA and changes in the LATAM product portfolio. The impairment and write-off of capitalized development expenditures during the year ended December 31, 2016 mainly related to the Group's capacity realignment to SUV production in China, which resulted in an impairment charge of € 90 million for the locally produced Fiat Viaggio and Ottimo vehicles. The impairment and write-off of capitalized development expenditures during the year ended December 31, 2015 mainly related to the Group's plan to realign a portion of its manufacturing capacity in NAFTA to better meet demand for Ram pickup trucks and Jeep vehicles within the Group's existing plant infrastructure, which resulted in an impairment charge of €176 million for capitalized development expenditures that had no future economic benefit. Refer to Note 10 , Other intangible assets , for information on capitalized development expenditures. |
Net financial expenses
Net financial expenses | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
Net financial expenses | Net financial expenses The following table summarizes the Group’s financial income and expenses included within the Net financial expenses line item: Years ended December 31 2017 2016 2015 (€ million) Interest income and other financial income € 182 € 226 € 365 Financial expenses: Interest expense and other financial expenses: 1,128 1,500 2,084 Interest expense on notes 568 749 1,112 Interest expense on borrowings from bank 372 472 512 Other interest cost and financial expenses 188 279 460 Write-down of financial assets 23 76 43 Losses on disposal of securities 5 6 28 Net interest expense on employee benefits provisions 310 348 350 Total Financial expenses 1,466 1,930 2,505 Net expenses from derivative financial instruments and exchange rate differences 185 312 226 Total Financial expenses and Net expenses from derivative financial instruments and exchange rate differences 1,651 2,242 2,731 Net Financial expenses € 1,469 € 2,016 € 2,366 Other interest cost and financial expenses for the year ended December 31, 2017 included a loss of € 3 million in relation to the prepayment by FCA US in February 2017 of the outstanding principal and accrued interest for its tranche B term loan (refer to Note 21 , Debt ). Other interest cost and financial expenses for the year ended December 31, 2017 included a gain on extinguishment of debt of €9 million related to the prepayment of all scheduled payments due on the Canada Health Care Trust (“HCT”) Tranche B Note (refer to Note 21 , Debt ). Other interest cost and financial expenses for the year ended December 31, 2016 included a loss on extinguishment of debt totaling € 10 million related to the U.S.$ 2.0 billion (€ 1.8 billion ) voluntary prepayment, with cash on hand, of the principal at par of FCA US's tranche B term loan maturing on May 24, 2017 and FCA US's tranche B term loan maturing on December 31, 2018. Other interest cost and financial expenses for the year ended December 31, 2016 also included a loss on extinguishment of debt of € 8 million related to the prepayment of all scheduled payments due on the Canada Health Care Trust (“HCT”) Tranche C Note (refer to Note 21 , Debt ). Other interest cost and financial expenses for the year ended December 31, 2015 included a loss on extinguishment of debt totaling € 168 million related to the prepayment of the secured senior notes of FCA US due in 2019 and 2021. |
Tax expense
Tax expense | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Tax expense | Tax expense The following table summarizes Tax expense: Years ended December 31 2017 2016 2015 (€ million) Current tax expense € 901 € 869 € 445 Deferred tax expense/(benefit) 1,773 391 (277 ) Tax expense/(benefit) relating to prior periods (23 ) 32 (2 ) Total Tax expense € 2,651 € 1,292 € 166 The applicable tax rate used to determine the theoretical income taxes was the statutory rate in the United Kingdom (“UK”), the tax jurisdiction in which FCA NV is resident. The reconciliation between the theoretical income taxes calculated on the basis of the theoretical tax rate of 19.25 percent in 2017 ( 20 percent in 2016 and 20.25 percent in 2015) and income taxes recognized was as follows: Years ended December 31 2017 2016 2015 (€ million) Theoretical income taxes € 1,186 € 621 € 51 Tax effect on: Recognition and utilization of previously unrecognized deferred tax assets (164 ) (42 ) (20 ) Permanent differences (397 ) (194 ) (36 ) Tax credits (23 ) (340 ) (238 ) Deferred tax assets not recognized and write-downs 1,092 531 303 Differences between foreign tax rates and the theoretical applicable tax rate and tax holidays 924 587 70 Taxes relating to prior years (23 ) 32 (2 ) Tax rate changes (22 ) — — Withholding tax 83 61 49 Other differences 0 (8 ) (36 ) Total Tax expense, excluding IRAP 2,656 1,248 141 Effective tax rate 43.0 % 40.2 % 54.4 % IRAP (current and deferred) (5 ) 44 25 Total Tax expense € 2,651 € 1,292 € 166 In 2017 , the Company recognized Regional Italian Income Tax (“IRAP”) current tax expense of €33 million (and an expense of €36 million in 2016 and an expense of €16 million in 2015 ) and the recognized IRAP deferred tax benefit of €38 million (an expense of €8 million in 2016 and an expense of €9 million in 2015 ). As the IRAP taxable basis differs from Profit before taxes, it is excluded from the effective tax rates above. The increase in the effective tax rate to 43.0 percent in 2017 from 40.2 percent in 2016 was mainly due to (i) reduced generation and utilization of tax credits in NAFTA and (ii) a decrease in Brazilian deferred tax assets; partially offset by (iii) tax benefits recorded on changes to prior years’ tax positions and (iv) improved performance in EMEA and LATAM. The Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law in the U.S. on December 22, 2017. The Tax Act includes various changes to U.S. tax law, including a permanent reduction in the U.S. federal corporate income tax rate. The Tax Act also imposes a one-time tax, at a special reduced tax rate, on the deemed repatriation of the post-1986 unremitted earnings from their non-U.S. subsidiaries to the Company’s U.S. subsidiaries. Based on the information available as of December 31, 2017, the Company estimated net tax expense of €88 million in 2017 for the effects of the changes in the tax rate, which includes an expense of € 117 million , primarily related to the deemed repatriation resulting from the Tax Act. The expense may be adjusted, potentially materially, as a result of regulations or regulatory guidance that may be issued, changes in interpretations affecting assumptions underlying the estimate, refinement of our calculations, and actions that may be taken, including actions in response to the Tax Act. The Group recognizes the amount of Deferred tax assets less the Deferred tax liabilities of the individual companies within Deferred tax assets, where these may be offset. Amounts recognized were as follows: At December 31 2017 2016 (€ million) Deferred tax assets € 2,004 € 3,699 Deferred tax liabilities (388 ) (194 ) Total Net deferred tax assets € 1,616 € 3,505 The decrease in Net deferred tax assets at December 31, 2017 from December 31, 2016 was mainly due to (i) a €1,268 million decrease related to the utilization of U.S. tax credit carryforwards, revaluation of U.S. deferred tax assets and liabilities due to the Tax Act and reductions to other NAFTA deferred tax assets, and (ii) a €734 million decrease to Brazil deferred tax assets; partially offset by (iii) a €178 million increase to EMEA deferred tax assets. The decrease in Deferred tax assets in Brazil was primarily composed of €281 million related to the reversal of the Brazilian indirect tax liability (refer to Note 22, Other liabilities and Tax payables ) and €453 million that was written off as the Group revised its outlook on Brazil to reflect the slower pace of recovery and outlook for the subsequent years, largely resulting from increased political uncertainty, and concluded that a portion of the deferred tax assets in Brazil was no longer recoverable. The Tax Act reduces the U.S. federal corporate income tax rate from 35% to 21% effective January 1, 2018. We estimated the related changes in our deferred tax assets and deferred tax liabilities, which resulted in a €137 million decrease in Net deferred tax liability ( €29 million to the Consolidated Income Statement and €108 million to Equity), and a €71 million decrease in Net deferred tax assets recorded to Other Comprehensive Income. The net tax benefit may be revised in future quarters as the related temporary differences are further evaluated. The significant components of Deferred tax assets and liabilities and their changes during the years ended December 31, 2017 and 2016 were as follows: At January 1, 2017 Recognized in Consolidated Income Statement Recognized in Equity Translation At December 31, 2017 (€ million) Deferred tax assets arising on: Provisions € 6,149 € (1,742 ) € — € (559 ) € 3,848 Provision for employee benefits 2,851 (364 ) (16 ) (643 ) 1,828 Intangible assets 211 (19 ) — — 192 Impairment of financial assets 195 (25 ) — (1 ) 169 Inventories 251 3 — (2 ) 252 Allowances for doubtful accounts 117 19 — (14 ) 122 Other 385 (13 ) (14 ) 29 387 Total Deferred tax assets € 10,159 € (2,141 ) € (30 ) € (1,190 ) € 6,798 Deferred tax liabilities arising on: Accelerated depreciation € (2,770 ) € 430 € — € 449 € (1,891 ) Capitalized development assets (2,742 ) 399 — 227 (2,116 ) Other Intangible assets and Intangible assets with indefinite useful lives (1,493 ) 238 — 406 (849 ) Provision for employee benefits (14 ) (30 ) — (6 ) (50 ) Other (331 ) 4 (10 ) 23 (314 ) Total Deferred tax liabilities € (7,350 ) € 1,041 € (10 ) € 1,099 € (5,220 ) Deferred tax asset arising on tax loss carry-forwards € 4,444 € 522 € — € (248 ) € 4,718 Unrecognized deferred tax assets (3,748 ) (1,195 ) 9 254 (4,680 ) Total Net deferred tax assets € 3,505 € (1,773 ) € (31 ) € (85 ) € 1,616 At January 1, 2016 Recognized in Recognized in Equity Transfer to assets held for sale Translation At December 31, 2016 (€ million) Deferred tax assets arising on: Provisions € 6,028 € (4 ) € — € (6 ) € 131 € 6,149 Provision for employee benefits 2,866 (11 ) (263 ) — 259 2,851 Intangible assets 249 (42 ) — — 4 211 Impairment of financial assets 155 47 — (2 ) (5 ) 195 Inventories 243 6 — — 2 251 Allowances for doubtful accounts 87 21 — (2 ) 11 117 Other 691 (270 ) 64 — (100 ) 385 Total Deferred tax assets € 10,319 € (253 ) € (199 ) € (10 ) € 302 € 10,159 Deferred tax liabilities arising on: Accelerated depreciation € (2,746 ) € (53 ) € — € 1 € 28 € (2,770 ) Capitalized development expenditures (2,376 ) (310 ) — — (56 ) (2,742 ) Other Intangible assets and Intangible assets with indefinite useful lives (1,427 ) 23 — 7 (96 ) (1,493 ) Provision for employee benefits (14 ) — 2 1 (3 ) (14 ) Other (390 ) 67 5 — (13 ) (331 ) Total Deferred tax liabilities € (6,953 ) € (273 ) € 7 € 9 € (140 ) € (7,350 ) Deferred tax asset arising on tax loss carry-forwards € 3,717 € 662 € — € (20 ) € 85 € 4,444 Unrecognized deferred tax assets (3,183 ) (527 ) — 20 (58 ) (3,748 ) Total Net deferred tax assets € 3,900 € (391 ) € (192 ) € (1 ) € 189 € 3,505 As of December 31, 2017 , the Group had Deferred tax assets on deductible temporary differences of €6,798 million ( €10,159 million at December 31, 2016 ), of which €940 million was not recognized ( €551 million at December 31, 2016 ). As of December 31, 2017 , the Group also had Deferred tax assets on tax loss carry-forwards of €4,718 million ( €4,444 million at December 31, 2016 ), of which €3,740 million was not recognized ( €3,197 million at December 31, 2016 ). As of December 31, 2017 , the Group had total Net deferred tax assets of € 3,256 million (€ 2,902 million at December 31, 2016 ) in Italy primarily attributable to Italian tax loss carry-forwards that can be carried forward indefinitely. The Group has determined that it is probable that sufficient Italian taxable income will be generated in future periods that will allow us to realize €898 million of Italian Net deferred tax assets ( €750 million at December 31, 2016 ). As a result, €2,358 million of Net deferred tax assets in Italy were not recognized as of December 31, 2017 ( €2,152 million at December 31, 2016 ). As of December 31, 2017 , the Group had total Net deferred tax assets of €1,287 million in Brazil ( €1,276 million at December 31, 2016 ) primarily attributable to Brazilian tax loss carry-forwards which can be carried forward indefinitely. The Group continues to recognize Brazilian Net deferred tax assets of €148 million ( €976 million at December 31, 2016 ) as the Group considers it probable that we will have sufficient taxable income in the future that will allow us to realize these net deferred tax assets. As a result, €1,139 million of Net deferred tax assets in Brazil, which include Brazil tax losses, were not recognized as of December 31, 2017 ( €300 million at December 31, 2016 ). Deferred tax liabilities on the undistributed earnings of subsidiaries have not been recognized, except in cases where it is probable the distribution will occur in the foreseeable future. Total gross deductible and taxable temporary differences and accumulated tax losses at December 31, 2017 , together with the amounts for which deferred tax assets have not been recognized, analyzed by year of expiration, were as follows: Year of expiration At December 31, 2017 2018 2019 2020 2021 Beyond 2021 Unlimited/ (€ million) Temporary differences and tax losses relating to corporate taxation: Deductible temporary differences € 28,720 € 3,665 € 2,974 € 2,786 € 3,293 € 15,512 € 490 Taxable temporary differences (23,028 ) (2,390 ) (2,304 ) (2,323 ) (2,324 ) (10,390 ) (3,297 ) Tax losses 18,133 147 142 136 155 3,844 13,709 Amounts for which deferred tax assets were not recognized (17,534 ) (640 ) (292 ) (147 ) (649 ) (3,464 ) (12,342 ) Temporary differences and tax losses relating to corporate taxation € 6,291 € 782 € 520 € 452 € 475 € 5,502 € (1,440 ) Temporary differences and tax losses relating to local taxation (i.e. IRAP in Italy): Deductible temporary differences € 9,657 € 1,177 € 761 € 599 € 1,149 € 5,909 € 62 Taxable temporary differences (7,993 ) (691 ) (658 ) (671 ) (681 ) (5,153 ) (139 ) Tax losses 3,715 53 36 33 120 2,902 571 Amounts for which deferred tax assets (4,439 ) (398 ) (157 ) (82 ) (635 ) (2,601 ) (566 ) Temporary differences and tax losses relating to local taxation € 940 € 141 € (18 ) € (121 ) € (47 ) € 1,057 € (72 ) |
Other information by nature
Other information by nature | 12 Months Ended |
Dec. 31, 2017 | |
Additional information [abstract] | |
Other information by nature | Other information by nature Personnel costs for the Group for the years ended December 31, 2017 , 2016 and 2015 amounted to € 13.2 billion , € 13.2 billion and € 13.4 billion , respectively, and included costs that were capitalized mainly in connection with product development activities. For the years ended December 31, 2017 , 2016 and 2015 , FCA had an average number of employees of 237,150 , 235,481 and 236,559 , respectively. |
Goodwill and intangible assets
Goodwill and intangible assets with indefinite useful lives | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets [Abstract] | |
Goodwill and intangible assets with indefinite useful lives | Goodwill and intangible assets with indefinite useful lives Goodwill and intangible assets with indefinite useful lives at December 31, 2017 and 2016 are summarized below: At January 1, 2017 Translation At December 31, 2017 (€ million) Gross amount € 12,299 € (1,449 ) € 10,850 Accumulated impairment losses (482 ) 28 (454 ) Goodwill 11,817 (1,421 ) 10,396 Brands 3,405 (411 ) 2,994 Total Goodwill and intangible assets with indefinite useful lives € 15,222 € (1,832 ) € 13,390 Translation Transfer to Assets held for sale At December 31, 2016 (€ million) Gross amount € 11,966 € 387 € (54 ) € 12,299 Accumulated impairment losses (469 ) (13 ) — (482 ) Goodwill 11,497 374 (54 ) 11,817 Brands 3,293 112 — 3,405 Total Goodwill and intangible assets with indefinite useful lives € 14,790 € 486 € (54 ) € 15,222 Translation differences in 2017 and 2016 primarily related to foreign currency translation of the U.S. Dollar to the Euro. Brands Brands, composed of the Chrysler, Jeep, Dodge, Ram and Mopar brands, resulted from the acquisition of FCA US and are allocated to the NAFTA segment. These rights are protected legally through registration with government agencies and through the continuous use in commerce. As these rights have no legal, contractual, competitive or economic term that limits their useful lives, they are classified as intangible assets with indefinite useful lives and are therefore not amortized but are instead tested annually for impairment. For the purpose of impairment testing, the carrying value of Brands is tested jointly with the goodwill allocated to the NAFTA segment. Goodwill At December 31, 2017 , Goodwill included €10,311 million from the acquisition of FCA US ( €11,731 million at December 31, 2016 ). At December 31, 2016, € 54 million of goodwill was classified within Assets held for sale as a result of Itedi meeting the held for sale criteria (see Note 3 , Scope of consolidation ). There were no impairment charges recognized in respect of Goodwill and intangible assets with indefinite lives during the years ended December 31, 2017, 2016 and 2015. The following table summarizes the allocation of Goodwill between FCA's reportable segments: At December 31 2017 2016 (€ million) NAFTA € 8,453 € 9,618 APAC 1,099 1,250 LATAM 529 602 EMEA 253 285 Components 62 62 Total Goodwill € 10,396 € 11,817 Other intangible assets Externally Internally Patents, Other Total (€ million) Gross carrying amount at January 1, 2016 € 9,262 € 6,487 € 3,120 € 701 € 19,570 Additions 1,546 1,012 490 58 3,106 Divestitures (1 ) (49 ) (80 ) (7 ) (137 ) Translation differences and other changes 265 217 22 87 591 Transfer to Assets held for sale — — — (38 ) (38 ) At December 31, 2016 11,072 7,667 3,552 801 23,092 Additions 1,997 589 356 65 3,007 Divestitures (289 ) (40 ) (16 ) (1 ) (346 ) Translation differences and other changes (967 ) (130 ) (309 ) (61 ) (1,467 ) At December 31, 2017 11,813 8,086 3,583 804 24,286 Accumulated amortization and impairment losses 3,993 3,617 1,583 431 9,624 Amortization 962 530 210 56 1,758 Impairment losses and asset write-offs 29 92 — 1 122 Divestitures — (37 ) (20 ) (6 ) (63 ) Translation differences and other changes 108 86 35 31 260 Transfer to Assets held for sale — — — (31 ) (31 ) At December 31, 2016 5,092 4,288 1,808 482 11,670 Amortization 829 595 371 61 1,856 Impairment losses and asset write-offs 52 58 — — 110 Divestitures (289 ) (35 ) (10 ) — (334 ) Translation differences and other changes (315 ) (73 ) (140 ) (30 ) (558 ) At December 31, 2017 5,369 4,833 2,029 513 12,744 Carrying amount at December 31, 2016 € 5,980 € 3,379 € 1,744 € 319 € 11,422 Carrying amount at December 31, 2017 € 6,444 € 3,253 € 1,554 € 291 € 11,542 Additions included capitalized development expenditures of € 2,586 million (€ 2,558 million in 2016 ), primarily consisting of material costs and personnel related expenses relating to engineering, design and development focused on content enhancement of existing vehicles, new models and powertrain programs. In 2017 , € 110 million of impairment losses and asset write-offs were recognized as described in Note 5 , Research and development costs . In 2016, of the total € 122 million impairment losses and asset write-offs, € 90 million related to the locally produced Fiat Viaggio and Ottimo vehicles in China, as described in Note 5 , Research and development costs . Translation differences primarily related to foreign currency translation of the U.S. Dollar to the Euro. Amortization of internally and externally generated intangible assets is recognized within Research and development costs within Consolidated Income Statement, as described in Note 5 , Research and development costs . Amortization of Patents, concessions, licenses and credits and Other intangibles are recognized within Cost of revenues and Selling, general and other costs. At December 31, 2017 and 2016, the Group had contractual commitments for the purchase of intangible assets amounting to € 601 million and € 417 million , respectively. |
Other intangible assets
Other intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets [Abstract] | |
Other intangible assets | Goodwill and intangible assets with indefinite useful lives Goodwill and intangible assets with indefinite useful lives at December 31, 2017 and 2016 are summarized below: At January 1, 2017 Translation At December 31, 2017 (€ million) Gross amount € 12,299 € (1,449 ) € 10,850 Accumulated impairment losses (482 ) 28 (454 ) Goodwill 11,817 (1,421 ) 10,396 Brands 3,405 (411 ) 2,994 Total Goodwill and intangible assets with indefinite useful lives € 15,222 € (1,832 ) € 13,390 Translation Transfer to Assets held for sale At December 31, 2016 (€ million) Gross amount € 11,966 € 387 € (54 ) € 12,299 Accumulated impairment losses (469 ) (13 ) — (482 ) Goodwill 11,497 374 (54 ) 11,817 Brands 3,293 112 — 3,405 Total Goodwill and intangible assets with indefinite useful lives € 14,790 € 486 € (54 ) € 15,222 Translation differences in 2017 and 2016 primarily related to foreign currency translation of the U.S. Dollar to the Euro. Brands Brands, composed of the Chrysler, Jeep, Dodge, Ram and Mopar brands, resulted from the acquisition of FCA US and are allocated to the NAFTA segment. These rights are protected legally through registration with government agencies and through the continuous use in commerce. As these rights have no legal, contractual, competitive or economic term that limits their useful lives, they are classified as intangible assets with indefinite useful lives and are therefore not amortized but are instead tested annually for impairment. For the purpose of impairment testing, the carrying value of Brands is tested jointly with the goodwill allocated to the NAFTA segment. Goodwill At December 31, 2017 , Goodwill included €10,311 million from the acquisition of FCA US ( €11,731 million at December 31, 2016 ). At December 31, 2016, € 54 million of goodwill was classified within Assets held for sale as a result of Itedi meeting the held for sale criteria (see Note 3 , Scope of consolidation ). There were no impairment charges recognized in respect of Goodwill and intangible assets with indefinite lives during the years ended December 31, 2017, 2016 and 2015. The following table summarizes the allocation of Goodwill between FCA's reportable segments: At December 31 2017 2016 (€ million) NAFTA € 8,453 € 9,618 APAC 1,099 1,250 LATAM 529 602 EMEA 253 285 Components 62 62 Total Goodwill € 10,396 € 11,817 Other intangible assets Externally Internally Patents, Other Total (€ million) Gross carrying amount at January 1, 2016 € 9,262 € 6,487 € 3,120 € 701 € 19,570 Additions 1,546 1,012 490 58 3,106 Divestitures (1 ) (49 ) (80 ) (7 ) (137 ) Translation differences and other changes 265 217 22 87 591 Transfer to Assets held for sale — — — (38 ) (38 ) At December 31, 2016 11,072 7,667 3,552 801 23,092 Additions 1,997 589 356 65 3,007 Divestitures (289 ) (40 ) (16 ) (1 ) (346 ) Translation differences and other changes (967 ) (130 ) (309 ) (61 ) (1,467 ) At December 31, 2017 11,813 8,086 3,583 804 24,286 Accumulated amortization and impairment losses 3,993 3,617 1,583 431 9,624 Amortization 962 530 210 56 1,758 Impairment losses and asset write-offs 29 92 — 1 122 Divestitures — (37 ) (20 ) (6 ) (63 ) Translation differences and other changes 108 86 35 31 260 Transfer to Assets held for sale — — — (31 ) (31 ) At December 31, 2016 5,092 4,288 1,808 482 11,670 Amortization 829 595 371 61 1,856 Impairment losses and asset write-offs 52 58 — — 110 Divestitures (289 ) (35 ) (10 ) — (334 ) Translation differences and other changes (315 ) (73 ) (140 ) (30 ) (558 ) At December 31, 2017 5,369 4,833 2,029 513 12,744 Carrying amount at December 31, 2016 € 5,980 € 3,379 € 1,744 € 319 € 11,422 Carrying amount at December 31, 2017 € 6,444 € 3,253 € 1,554 € 291 € 11,542 Additions included capitalized development expenditures of € 2,586 million (€ 2,558 million in 2016 ), primarily consisting of material costs and personnel related expenses relating to engineering, design and development focused on content enhancement of existing vehicles, new models and powertrain programs. In 2017 , € 110 million of impairment losses and asset write-offs were recognized as described in Note 5 , Research and development costs . In 2016, of the total € 122 million impairment losses and asset write-offs, € 90 million related to the locally produced Fiat Viaggio and Ottimo vehicles in China, as described in Note 5 , Research and development costs . Translation differences primarily related to foreign currency translation of the U.S. Dollar to the Euro. Amortization of internally and externally generated intangible assets is recognized within Research and development costs within Consolidated Income Statement, as described in Note 5 , Research and development costs . Amortization of Patents, concessions, licenses and credits and Other intangibles are recognized within Cost of revenues and Selling, general and other costs. At December 31, 2017 and 2016, the Group had contractual commitments for the purchase of intangible assets amounting to € 601 million and € 417 million , respectively. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | Property, plant and equipment Land Industrial Plant, machinery and equipment Other Advances and Total (€ million) Gross carrying amount at January 1, 2016 € 900 € 8,108 € 43,908 € 2,734 € 4,086 € 59,736 Additions 6 303 3,330 453 1,617 5,709 Divestitures (11 ) (22 ) (729 ) (70 ) (11 ) (843 ) Translation differences 57 431 1,749 120 225 2,582 Transfer to Assets held for sale — — (92 ) (10 ) — (102 ) Other changes (4 ) 110 2,223 (4 ) (2,269 ) 56 At December 31, 2016 948 8,930 50,389 3,223 3,648 67,138 Additions 20 256 3,768 187 1,428 5,659 Divestitures (11 ) (17 ) (1,163 ) (88 ) (4 ) (1,283 ) Change in the scope of consolidation (2 ) (104 ) (618 ) (21 ) (5 ) (750 ) Translation differences (71 ) (639 ) (3,167 ) (301 ) (325 ) (4,503 ) Other changes 1 68 1,844 3 (1,930 ) (14 ) At December 31, 2017 885 8,494 51,053 3,003 2,812 66,247 Accumulated depreciation and impairment losses at January 1, 2016 44 2,782 28,000 1,443 13 32,282 Depreciation — 309 3,582 307 — 4,198 Divestitures (5 ) (12 ) (697 ) (63 ) (1 ) (778 ) Impairment losses and asset write-offs — 44 25 1 3 73 Translation differences 2 93 875 64 1 1,035 Transfer to Assets held for sale — — (77 ) (8 ) — (85 ) Other changes — (3 ) (14 ) — (1 ) (18 ) At December 31, 2016 41 3,213 31,694 1,744 15 36,707 Depreciation — 313 3,440 279 — 4,032 Divestitures (2 ) (11 ) (1,126 ) (78 ) — (1,217 ) Impairment losses and asset write-offs 1 22 83 6 7 119 Change in the scope of consolidation (1 ) (76 ) (287 ) (18 ) — (382 ) Translation differences (1 ) (163 ) (1,693 ) (152 ) (1 ) (2,010 ) Other changes (1 ) — (29 ) 19 (5 ) (16 ) At December 31, 2017 37 3,298 32,082 1,800 16 37,233 Carrying amount at December 31, 2016 € 907 € 5,717 € 18,695 € 1,479 € 3,633 € 30,431 Carrying amount at December 31, 2017 € 848 € 5,196 € 18,971 € 1,203 € 2,796 € 29,014 For the year ended December 31, 2017 , the Group recognized a total of €119 million of impairment losses and asset write-offs, of which €21 million related to certain of FCA Venezuela's assets due to the continued deterioration of the economic conditions in Venezuela prior to deconsolidation. The remaining impairment losses relates to changes in global product portfolio in EMEA and product portfolio changes in LATAM. For the year ended December 31, 2016 , the Group recognized a total of € 73 million of impairment losses and asset write-offs, of which € 43 million related to certain of FCA Venezuela's assets due to the continued deterioration of the economic conditions in Venezuela. This impairment charge was recognized within Selling, administrative and other expenses in the Consolidated Income Statement for the year ended December 31, 2016 . In 2017 , translation differences of € 2,493 million primarily reflected the weakening of the U.S Dollar, Mexican Peso and the Brazilian Real against the Euro. In 2016 , translation differences of €1,547 million mainly reflected the strengthening of the Brazilian Real and the U.S. Dollar against the Euro. The net carrying amount of assets leased under finance lease agreements includes assets that are legally owned by suppliers but which are recognized in the Consolidated Financial Statements in accordance with IFRIC 4 - Determining Whether an Arrangement Contains a Lease , with the recognition of a corresponding financial lease payable, as the arrangement conveys a right to control the use of a specific asset even if that asset is not explicitly referred to in the arrangement. The total net carrying amount of assets leased under finance lease agreements included in Property, plant and equipment were as follows: At December 31 2017 2016 (€ million) Industrial buildings € 209 € 251 Plant, machinery and equipment 193 602 Total Property, plant and equipment under finance lease € 402 € 853 The carrying amounts of Property, plant and equipment of the Group (excluding FCA US) reported as pledged as security for debt are summarized as follows: At December 31 2017 2016 (€ million) Land and industrial buildings pledged as security for debt € 1,031 € 1,239 Plant and machinery pledged as security for debt and other commitments 1,324 698 Other assets pledged as security for debt and other commitments 17 3 Total Property, plant and equipment pledged as security for debt € 2,372 € 1,940 Information on the assets of FCA US subject to lien is set out in Note 21 , Debt . At December 31, 2017 and 2016 , the Group had contractual commitments for the purchase of Property, plant and equipment amounting to €540 million and €950 million , respectively. |
Investments accounted for using
Investments accounted for using the equity method | 12 Months Ended |
Dec. 31, 2017 | |
Interests In Other Entities [Abstract] | |
Investments accounted for using the equity method | Investments accounted for using the equity method The following table summarizes Investments accounted for using the equity method: At December 31 2017 2016 (€ million) Joint ventures € 1,866 € 1,680 Associates 94 62 Other 48 51 Total Investments accounted for using the equity method € 2,008 € 1,793 FCA's ownership percentages and the carrying value of investments in joint ventures accounted for under the equity method were as follows: Ownership percentage Investment balance At December 31 At December 31 2017 2016 2017 2016 Joint ventures Ownership percentage (€ million) FCA Bank S.p.A. 50% 50% € 1,178 € 1,044 Tofas-Turk Otomobil Fabrikasi A.S. 37.9% 37.9% 298 302 GAC Fiat Chrysler Automobiles Co. 50% 50% 287 237 Others 103 97 Total € 1,866 € 1,680 FCA Bank is a joint venture with Crédit Agricole Consumer Finance S.A. (“CACF”) which operates in Europe, primarily in Italy, France, Germany, UK and Spain. In July 2013, the Group reached an agreement with Crédit Agricole to extend the term of the joint venture through to December 31, 2021. FCA Bank provides retail and dealer financing and long-term rental services in the automotive sector, directly or through its subsidiaries as a partner of the Group's mass-market vehicle brands and for Maserati vehicles. The financial statements of FCA Bank as at and for the year ended December 31, 2017 have not been authorized for issuance as of the date of issuance of the FCA Consolidated Financial Statements. As such, the most recent publicly available financial information is included in the tables below. The most recently available information was used to estimate FCA's share of FCA Bank net income and net equity. Any difference between this data and actual results will be adjusted in the 2018 FCA Consolidated Financial Statements when available. The following tables include summarized financial information relating to FCA Bank: At June 30, 2017 At December 31, 2016 (€ million) Financial assets € 21,867 € 20,201 Of which: Cash and cash equivalents — — Other assets 3,378 3,083 Financial liabilities 21,557 19,887 Other liabilities 1,265 1,159 Equity (100%) 2,423 2,238 Net assets attributable to owners of the parent 2,382 2,199 Group's share of net assets 1,191 1,100 Elimination of unrealized profits and other adjustments (13 ) (56 ) Carrying amount of interest in FCA Bank (1) € 1,178 € 1,044 ________________________ (1) Amounts as at December 31, 2017 and 2016 respectively. Six months ended June 30 Years ended December 31 2017 2016 2015 (€ million) Interest and similar income € 437 € 764 € 729 Interest and similar expenses (147 ) (263 ) (285 ) Income tax expense (70 ) (105 ) (110 ) Profit from continuing operations 190 312 249 Net profit 190 312 249 Net profit attributable to owners of the parent (A) 188 309 248 Other comprehensive income/(loss) attributable to owners of the parent (B) (7 ) (64 ) 29 Total Comprehensive income attributable to owners of the parent (A+B) € 181 € 245 € 277 Group’s share of net profit (1) € 190 € 154 € 124 _____________________________________ (1) Amounts for the years ended December 31, 2017, 2016 and 2015 respectively Tofas-Turk Otomobil Fabrikasi A.S. (“Tofas”), is a joint venture with Koç Holding which is registered with the Turkish Capital Market Board and listed on the İstanbul Stock Exchange. At December 31, 2017 , the fair value of the Group’s interest in Tofas was €1,375 million ( €1,258 million at December 31, 2016 ). GAC Fiat Chrysler Automobiles Co. (“GAC FCA JV”) is a joint venture with Guangzhou Automobile Group Co., Ltd., which locally produces Jeep vehicles for the Chinese market. The Group's proportionate share of the earnings of our joint ventures, associates and interests in unconsolidated subsidiaries accounted for using the equity method is reflected within Result from investments in the Consolidated Income Statement. The following table summarizes the share of profits of equity method investees included within Result from investments: Years ended December 31 2017 2016 2015 (€ million) Joint Ventures € 390 € 291 € 155 Associates 9 7 (27 ) Other 10 15 2 Total Share of the profit of equity method investees € 409 € 313 € 130 Immaterial Joint Ventures and Associates The aggregate amounts recognized for the Group’s share in all individually immaterial joint ventures and associates accounted for using the equity method were as follows: Years ended December 31 2017 2016 2015 (€ million) Joint ventures: Profit from continuing operations € 201 € 137 € 31 Net profit 201 137 31 Other comprehensive income/(loss) (105 ) (90 ) (30 ) Total Other comprehensive income € 96 € 47 € 1 Associates: Income/(loss) from continuing operations € 9 € 7 € (27 ) Net income/(loss) 9 7 (27 ) Other comprehensive income/(loss) (3 ) (1 ) 3 Total Other comprehensive income/(loss) € 6 € 6 € (24 ) |
Other financial assets
Other financial assets | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of financial assets [abstract] | |
Other Financial assets | Other Financial assets Other financial assets consisted of the following: At December 31 2017 2016 Note Current Non-current Total Current Non-current Total (€ million) Derivative financial assets 16 € 265 € 19 € 284 € 448 € 31 € 479 Debt securities measured at fair value through other comprehensive income 23 4 — 4 38 — 38 Debt securities measured at fair value through profit or loss 23 172 59 231 203 60 263 Debt securities held-to-maturity — 2 2 — 2 2 Equity instruments measured at cost — 43 43 — 41 41 Equity instruments measured at fair value through other comprehensive income 23 — 23 23 — 151 151 Held-for-trading investments 23 46 — 46 49 — 49 Financial receivables — 275 275 — 320 320 Collateral deposits (1) 23 — 61 61 24 44 68 Total Other financial assets € 487 € 482 € 969 € 762 € 649 € 1,411 ___________________________________________ (1) Collateral deposits are held in connection with derivative transactions and debt obligations On March 21, 2017, the Group completed the sale of its available-for-sale investment in CNH Industrial N.V. (“CNHI”), which consisted of 15,948,275 common shares representing 1.17 percent of CNHI’s common shares for an amount of €144 million . The sale did not result in a material gain. The additional 15,948,275 special voting shares owned by the Group and which had not been attributed any value, expired upon the sale of the CNHI common shares. At December 31, 2016, the available-for-sale investment in CNHI had a carrying value of €132 million . |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories | Inventories At December 31 2017 2016 (€ million) Finished goods and goods for resale € 8,261 € 7,888 Work-in-progress, raw materials and manufacturing supplies 4,476 4,168 Amount due from customers for contract work 185 65 Total Inventories € 12,922 € 12,121 The amount of inventory write-downs recognized within Cost of revenues during the years ended December 31, 2017 , 2016 and 2015 was €659 million , € 637 million and € 653 million , respectively. The amount due from customers for contract work relates to the design and production of industrial automation systems and related products and is summarized as follows: At December 31 2017 2016 (€ million) Aggregate amount of costs incurred and recognized profits (less recognized losses) to date € 881 € 959 Less: Progress billings (886 ) (1,130 ) Construction contracts, net of advances on contract work (5 ) (171 ) Amount due from customers for contract work 185 65 Less: Amount due to customers for contract work included in Other (190 ) (236 ) Construction contracts, net of advances on contract work € (5 ) € (171 ) |
Trade, other receivables and ta
Trade, other receivables and tax receivables | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables [abstract] | |
Trade, other receivables and tax receivables | Trade, other receivables and tax receivables The following table summarizes Trade, other receivables and tax receivables by due date: At December 31 2017 2016 Total due within one year (current) Due between one and five years Due beyond five years Total due after one year (non-current) Total Total due within one year (current) Due between one and five years Due beyond five years Total due after one year (non-current) Total (€ million) Trade receivables € 2,460 € — € — € — € 2,460 € 2,479 € — € — € — € 2,479 Receivables from financing activities 2,946 194 — 194 3,140 2,407 171 — 171 2,578 Other receivables 2,481 414 58 472 2,953 2,387 308 102 410 2,797 Total Trade and other receivables € 7,887 € 608 € 58 € 666 € 8,553 € 7,273 € 479 € 102 € 581 € 7,854 Tax receivables € 215 € 62 € 21 € 83 € 298 € 206 € 71 € 22 € 93 € 299 Trade receivables Trade receivables are shown net of the allowance for doubtful accounts, which is calculated on the basis of historical losses on receivables. Changes in the allowance for trade receivables were as follows: At January 1, 2017 Provision Use and At December 31, 2017 (€ million) Allowance for doubtful accounts € 275 € 76 € (82 ) € 269 Receivables from financing activities Receivables from financing activities mainly relate to the business of financial services companies fully consolidated by the Group and are summarized as follows. At December 31 2017 2016 (€ million) Dealer financing € 2,295 € 2,115 Retail financing 420 286 Finance leases 4 6 Other 421 171 Total Receivables from financing activities € 3,140 € 2,578 Receivables from financing activities are shown net of an allowance for doubtful accounts determined on the basis of specific insolvency risks. Changes in the allowance for receivables from financing activities were as follows: At January 1, 2017 Provision Use and At December 31, 2017 (€ million) Allowance for Receivables from financing activities € 45 € 66 € (66 ) € 45 Receivables for dealer financing are typically generated by sales of vehicles and are generally managed under dealer network financing programs as a component of the portfolio of the financial services companies. These receivables are interest bearing, with the exception of an initial limited, non-interest bearing period. The contractual terms governing the relationships with the dealer networks vary from country to country, although payment terms range from two to six months. Other receivables At December 31, 2017 , Other receivables primarily consisted of tax receivables for VAT and other indirect taxes of €2,153 million ( €1,933 million at December 31, 2016 ). Transfer of financial assets At December 31, 2017 , the Group had receivables due after that date which had been transferred without recourse and which were derecognized in accordance with IAS 39 – Financial Instruments: Recognition and Measurement, amounting to €7,866 million ( €6,573 million at December 31, 2016 ). The transfers related to trade receivables and other receivables for €6,752 million ( €5,467 million at December 31, 2016 ) and receivables from financing activities for €1,114 million ( €1,106 million at December 31, 2016 ). These amounts included receivables of €4,933 million ( €4,077 million at December 31, 2016 ), mainly due from the sales network, transferred to jointly controlled financial services companies (FCA Bank). At December 31, 2017 and 2016 , the carrying amount of transferred financial assets not derecognized and the related liabilities were as follows: At December 31 2017 2016 Trade receivables Receivables financing Total Trade receivables Receivables financing Total (€ million) Carrying amount of assets transferred and not derecognized € 22 € 335 € 357 € 34 € 376 € 410 Carrying amount of the related liabilities (Note 21) € 22 € 335 € 357 € 34 € 376 € 410 |
Derivative financial assets and
Derivative financial assets and liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Derivative financial assets and liabilities | Derivative financial assets and liabilities The following table summarizes the fair value of the Group's derivative financial assets and liabilities: At December 31 2017 2016 Positive fair Negative fair Positive fair Negative fair (€ million) Fair value hedges: Interest rate risk - interest rate swaps € 2 € — € 31 € (1 ) Interest rate and exchange rate risk - combined interest rate — — — (115 ) Total Fair value hedges 2 — 31 (116 ) Cash flow hedges: Currency risks - forward contracts, currency swaps and 100 (95 ) 213 (304 ) Interest rate risk - interest rate swaps 4 (7 ) — — Interest rate and currency risk - combined interest rate and 9 — 87 — Commodity price risk – commodity swaps and commodity options 30 (1 ) 21 (2 ) Total Cash flow hedges 143 (103 ) 321 (306 ) Net investment hedges: Currency risks - forward contracts, currency swaps and currency options 5 — — (47 ) Total Net investment hedges 5 — — (47 ) Derivatives for trading 134 (36 ) 127 (228 ) Total Fair value of derivative financial assets/(liabilities) € 284 € (139 ) € 479 € (697 ) Financial derivative assets/(liabilities) - current € 265 € (138 ) € 448 € (681 ) Financial derivative assets/(liabilities) - non-current € 19 € (1 ) € 31 € (16 ) The following table summarizes the outstanding notional amounts of the Group's derivative financial instruments by due date: At December 31 2017 2016 Due within one year Due between one and Due beyond Total Due within one year Due between Due Total (€ million) Currency risk management € 14,142 € 154 € — € 14,296 € 18,668 € 311 € — € 18,979 Interest rate risk management 1,581 1,753 101 3,435 855 795 — 1,650 Interest rate and currency risk management — 291 71 362 928 305 82 1,315 Commodity price risk management 455 6 — 461 450 44 — 494 Other derivative financial instruments — 14 — 14 — 14 — 14 Total Notional amount € 16,178 € 2,218 € 172 € 18,568 € 20,901 € 1,469 € 82 € 22,452 Fair value hedges The gains and losses arising from the valuation of outstanding interest rate derivatives (for managing interest rate risk) and currency derivatives (for managing currency risk) are recognized in accordance with fair value hedge accounting. The following table summarizes the gains and losses arising from the respective hedged items: Years ended December 31 2017 2016 2015 (€ million) Currency risk Net gains/(losses) on qualifying hedges € 104 € (13 ) € (49 ) Fair value changes in hedged items (104 ) 13 49 Interest rate risk Net (losses) on qualifying hedges (9 ) (26 ) (34 ) Fair value changes in hedged items 10 26 34 Net gains/(losses) € 1 € — € — Cash flow hedges Amounts recognized in the Consolidated Income Statement mainly relate to currency risk management and, to a lesser extent, to hedges regarding commodity price risk management and cash flows that are exposed to interest rate risk. The Group's policy for managing currency risk normally requires hedging of projected future flows from trading activities which will occur within the following twelve months and from orders acquired (or contracts in progress) regardless of their due dates. The hedging effect arising from this is recorded in Other comprehensive income within Cash flow hedge reserve and will be recognized in the Consolidated Income Statement, primarily during the following year. Derivatives relating to interest rate and currency risk management are treated as cash flow hedges and are entered into for the purpose of hedging notes issued in foreign currencies. The amount recorded in Other comprehensive income and within Cash flow hedge reserve is recognized in the Consolidated Income Statement according to the timing of the flows of the underlying notes. The Group entered in interest rate swaps in order to hedge against the increase in interest rates in relation to future Debt. The swaps are designated as a cash flow hedge. For the year ended December 31, 2017 , losses of €3 million related to such derivatives were recognized in Other comprehensive (loss)/income within Cash flow hedge Reserve. The following table summarizes the amounts, net of tax, that were reclassified from Other comprehensive (loss)/income to the Consolidated Income Statement in respect of cash flow hedges: Years ended December 31 2017 2016 2015 (€ million) Currency risk Increase in Net revenues € 16 € 236 € 33 (Increase)/Decrease in Cost of revenues (103 ) (44 ) 101 Net financial income/(expenses) (22 ) 34 (148 ) Result from investments 28 26 1 Interest rate risk Increase in Cost of revenues — — (10 ) Result from investments (1 ) (1 ) (2 ) Net financial expenses (3 ) (4 ) (77 ) Commodity price risk Decrease/(Increase) in Cost of revenues 28 (39 ) (23 ) Ineffectiveness and discontinued hedges 4 12 1 Tax expense/(benefit) 27 (49 ) (97 ) Total recognized in Net profit from continuing operations (26 ) 171 (221 ) Recognized in Profit from discontinued operations, net of tax — — (116 ) Total recognized in Net profit € (26 ) € 171 € (337 ) Net investment hedges In order to manage the Group's foreign currency risk related to its investments in foreign operations, the Group enters into net investment hedges, in particular foreign currency swaps and forward contracts. For the year ended December 31, 2017 , gains of €15 million related to net investment hedges were recognized in Other comprehensive (loss)/income within Currency translation differences. There was no ineffectiveness for the year ended December 31, 2017 . For the year ended December 31, 2016, losses of €75 million related to net investment hedges were recognized in Other comprehensive (loss)/income within Currency translation differences. There was no ineffectiveness for the year ended December 31, 2016. Derivatives for trading At December 31, 2017 and 2016 , Derivatives for trading primarily consisted of derivative contracts entered into for hedging purposes which do not qualify for hedge accounting and one embedded derivative in a bond issuance in which the yield is determined as a function of trends in the inflation rate and related hedging derivative, which converts the exposure to a floating rate (the total value of the embedded derivative is offset by the value of the hedging derivative). |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consisted of the following: At December 31 2017 2016 (€ million) Cash at banks € 6,396 € 8,118 Money market securities 6,242 9,200 Total Cash and cash equivalents € 12,638 € 17,318 Cash and cash equivalents held in certain foreign countries (primarily in China and Argentina) are subject to local exchange control regulations providing for restrictions on the amount of cash, other than dividends, that can leave the country. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share-Based Payment Arrangements [Abstract] | |
Share-based compensation | Share-based compensation FCA - Performance Share Units In March 2017, FCA awarded a total of 2,264,000 Performance Share Units (“PSU”) to certain key employees under the framework equity incentive plan (Note 26 , Equity ). The PSU awards, which represent the right to receive FCA common shares, have financial performance goals that include a net income target as well as total shareholder return (“TSR”) target, with each weighted at 50 percent and settled independently of the other. Half of the award will vest based on our achievement of the targets for net income (“PSU NI awards”) covering a three -year period from 2016 to 2018 and will have a payout scale ranging from 0 percent to 100 percent . The remaining half of the PSU awards, (“PSU TSR awards”) are based on market conditions and have a payout scale ranging from 0 percent to 150 percent . The PSU TSR awards performance period covers a two -year period starting in December 2016 through 2018. Accordingly, the total number of shares that will eventually be issued may vary from the original award of 2.26 million units. The PSU awards will vest in the first quarter of 2019 if the respective performance goals for the years 2016 to 2018 are achieved. The PSU awards granted in June 2017 follow the same vesting conditions. During the year ended December 31, 2015, FCA awarded a total of 14,713,100 PSU awards to certain key employees under the equity incentive plan. The PSU awards, which represent the right to receive FCA common shares, have financial performance goals covering a five -year period from 2014 to 2018. The performance goals include a net income target as well as a TSR target, with each weighted at 50 percent and settled independently of the other. The PSU NI awards, which represent half of the award, will vest based on our achievement of the targets for net income and will have a payout scale ranging from 0 percent to 100 percent . The PSU TSR awards, which represent the other 50 percent of the PSU awards, are based on market conditions and have a payout scale ranging from 0 percent to 150 percent . Accordingly, the total number of shares that will eventually be issued may vary from the original award of 14.7 million shares. One third of the total PSU awards vested in 2017 and a cumulative two-thirds of the total PSU awards will vest in the first quarter of 2018 with the achievement of the performance goal for the years 2014 to 2017. A cumulative 100 percent will vest in the first quarter of 2019 if the respective performance goals for the years 2014 to 2018 are achieved. The vesting of the 2017 PSU NI awards and the 2015 PSU NI awards will be determined by comparing the Group's net profit excluding unusual items to the net income targets derived from the Group's business plan for the corresponding period. The performance period for the 2017 PSU NI awards commenced on January 1, 2016, and on January 1, 2014 for the 2015 PSU NI awards. As the performance period commenced substantially prior to the commencement of the service period, which coincides with the grant date, the Company determined that the net income target did not meet the definition of a performance condition under IFRS 2 - Share-based Payment , and therefore is required to be accounted for as a non-vesting condition. As such, the fair values of the PSU NI awards were calculated using a Monte Carlo simulation model. Changes during 2017, 2016 and 2015 for the PSU NI awards under the framework equity incentive plan were as follows: 2017 2016 2015 PSU NI Weighted (€) PSU NI Weighted (€) PSU NI Weighted (€) Outstanding shares unvested at January 1 11,379,445 € 5.65 7,356,550 € 8.78 — € — Anti-dilution adjustment 65,751 5.62 4,001,962 5.68 — — Granted 1,136,250 7.91 168,593 3.61 7,356,550 8.78 Vested (3,758,870 ) 5.65 — — — — Canceled — — (147,660 ) 5.83 — — Forfeited (18,750 ) 7.91 — — — — Outstanding shares unvested at December 31 8,803,826 € 5.89 11,379,445 € 5.65 7,356,550 € 8.78 The key assumptions utilized to calculate the grant-date fair values for the PSU NI awards are summarized below: Key assumptions 2017 PSU NI Awards Range 2015 PSU NI Awards Range Grant date stock price €9.74 - €10.39 €13.44 - €15.21 Expected volatility 40 % 40 % Risk-free rate (0.8 )% 0.7 % The expected volatility was based on the observed historical volatility for common shares of FCA. The risk-free rate was based on the yields of government and treasury bonds with similar terms to the vesting date of each PSU NI award. Changes during 2017, 2016 and 2015 for the PSU TSR awards under the framework equity incentive plan were as follows: 2017 2016 2015 PSU TSR Weighted (€) PSU TSR Weighted (€) PSU TSR Weighted (€) Outstanding shares unvested at January 1 11,379,446 € 10.64 7,356,550 € 16.52 — € — Anti-dilution adjustment 65,750 10.58 4,001,962 10.70 — — Granted 1,136,250 10.84 168,593 6.71 7,356,550 16.52 Vested (3,758,869 ) 10.63 — — — — Canceled — — (147,659 ) 10.84 — — Forfeited (18,750 ) 10.84 — — — — Outstanding shares unvested at December 31 8,803,827 € 10.58 11,379,446 € 10.64 7,356,550 € 16.52 The weighted average fair value of the PSU TSR awards granted during the year ended December 31, 2017 was calculated using a Monte Carlo simulation model. The key assumptions utilized to calculate the grant date fair values for the PSU TSR awards issued are summarized below: Key assumptions 2017 PSU TSR Awards Range 2015 PSU TSR Awards Range Grant date stock price €9.74 - €10.39 €13.44 - €15.21 Expected volatility 44 % 37% - 39% Dividend yield — % — % Risk-free rate 0.8 % 0.7% - 0.8% The expected volatility was based on the observed historical volatility for common shares of FCA. The risk-free rate was based on the yields of government and treasury bonds with similar terms to the vesting date of each PSU TSR award. In addition, since the volatility of each member of the defined peer group are not wholly independent of one another, a correlation coefficient was developed based on historical share price changes for FCA and the defined peer group over a three -year period leading up to the grant date of the awards. FCA - Restricted Share Units In March 2017, FCA awarded 2,264,000 Restricted Share Units (“RSUs”) to certain key employees of the Company which represent the right to receive FCA common shares. These shares will vest in two equal tranches in the first quarter of 2018 and 2019. The fair values of the awards were measured using the FCA stock price on the grant date. The RSU awards granted in June and September 2017 follow the same vesting conditions. During the year ended December 31, 2015, FCA awarded 5,196,550 RSUs to certain key employees of the Company, which represent the right to receive FCA common shares. One third of the awards vested in February of 2017 with the remaining two tranches to vest equally in February of 2018 and 2019. Changes during 2017, 2016 and 2015 for the RSU awards under the framework equity incentive plan were as follows: 2017 2016 2015 RSUs Weighted (€) RSUs Weighted (€) RSUs Weighted (€) Outstanding shares unvested at January 1 7,969,623 € 8.69 5,196,550 € 13.49 — € — Anti-dilution adjustment 46,189 8.64 2,826,922 8.74 — — Granted 2,293,940 10.43 94,222 5.73 6,816,550 13.90 Vested (2,671,939 ) 8.64 — — (1,620,000 ) 15.21 Canceled — — (148,071 ) 9.25 — — Forfeited (37,500 ) 10.39 — — — — Outstanding shares unvested at December 31 7,600,313 € 9.17 7,969,623 € 8.69 5,196,550 € 13.49 Anti-dilution adjustments - PSU awards and RSU awards The documents governing FCA's long-term incentive plans contain anti-dilution provisions which provide for an adjustment to the number of awards granted under the plans in order to preserve, or alternatively, prevent the enlargement of the benefits intended to be made available to the recipients of the awards should an event occur that impacts our capital structure. In January 2017, as a result of the distribution of the Company's 16.7 percent ownership interest in RCS Media Group S.p.A. to holders of its common shares on May 1, 2016, the Compensation Committee of FCA approved a conversion factor of 1.005865 that was applied to outstanding PSU awards and RSU awards issued prior to December 31, 2016 to make equity award holders whole for the resulting diminution in the value of an FCA common share. There was no change to the total cost of these awards to be amortized over the remaining vesting period as a result of these adjustments. Similarly, in January 2016, as a result of the spin-off of Ferrari N.V., a conversion factor of 1.5440 was approved by FCA's Compensation Committee and applied to outstanding PSU awards and RSU awards as an equitable adjustment to make equity award holders whole for the resulting diminution in the value of an FCA share. For the PSU NI awards, FCA's Compensation Committee also approved an adjustment to the net income targets for the years 2016-2018 to account for the net income of Ferrari in order to preserve the economic benefit intended to be provided to each participant. There was no change to the total cost of these awards to be amortized over the remaining vesting period as a result of these adjustments. The following table reflects the changes resulting from the anti-dilution adjustments: 2017 Anti-dilution adjustment 2016 Anti-dilution adjustment PSU Awards: Number of awards - as adjusted 22,890,392 22,717,024 Key assumptions - as adjusted: Grant date stock price - for PSU NI and PSU TSR €8.66 - €9.79 €8.71 - €9.85 RSU Awards: Number of awards - as adjusted 8,015,812 8,023,472 Total expense for the PSU awards and RSU awards of approximately €85 million , €96 million and €54 million was recorded for the years ended December 31, 2017 , 2016 and 2015, respectively. At December 31, 2017 , the Group had unrecognized compensation expense related to the non-vested PSU awards and RSU awards of approximately €47 million based on current forfeiture assumptions, which will be recognized over a weighted-average period of 1.0 years. Chief Executive Officer - Special Recognition Award On April 16, 2015, shareholders of FCA approved a grant of 1,620,000 common shares to the Chief Executive Officer, which vested immediately. This grant was for recognition of the Chief Executive Officer's vision and guidance in the formation of Fiat Chrysler Automobiles N.V., which created significant value for the Company, its shareholders, stakeholders and employees. The weighted-average fair value of the shares at the grant date was €15.21 (U.S. $16.29 ), measured using FCA's share price on the grant date. A one-time charge of €24.6 million was recorded within Selling, general and other costs during the year ended December 31, 2015 related to this grant. Stock grant plans linked to Fiat shares On April 4, 2012, the shareholders resolved to approve the adoption of a Long Term Incentive Plan (the “Retention LTI Plan”), in the form of stock grants. As a result, the Group granted the Chief Executive Officer 7,000,000 rights, which represented an equal number of common shares. One third of the rights vested on February 22, 2013, one third vested on February 22, 2014 and one third vested on February 22, 2015, which had been subject to the requirement that the Chief Executive Officer remain in office. The Plan was serviced in 2015 through the issuance of new common shares. Compensation expense for the Retention LTI Plan for the year ended December 31, 2015 was not material. Share-based compensation plans issued by FCA US On May 7, 2015, the FCA US Board of Directors approved an amendment to the FCA US Directors’ Restricted Stock Unit Plan (“FCA US Directors’ RSU Plan”), freezing the restricted stock unit value as of December 31, 2015. At December 31, 2017 and 2016, FCA US had no outstanding unvested units under the FCA US Directors’ RSU Plan. In February 2012, the Compensation Committee of FCA US approved the Long-Term Incentive Plan (“2012 LTIP Plan”) that covered senior executives of FCA US (other than the Chief Executive Officer). At December 31, 2017 and 2016, FCA US had no outstanding unvested units under the 2012 LTIP Plan. No compensation expense was recognized for either plan for the year ended December 31, 2017. Compensation expense for the years ended December 31, 2016 and 2015 was not material. |
Employee benefits liabilities
Employee benefits liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefits [Abstract] | |
Employee benefits liabilities | Employee benefits liabilities Employee benefits liabilities consisted of the following: At December 31 2017 2016 Current Non-current Total Current Non-current Total (€ million) Pension benefits € 34 € 4,789 € 4,823 € 38 € 4,980 € 5,018 Health care and life insurance plans 126 2,153 2,279 145 2,321 2,466 Other post-employment benefits 109 878 987 110 877 987 Other provisions for employees 425 764 1,189 518 874 1,392 Total Employee benefits liabilities € 694 € 8,584 € 9,278 € 811 € 9,052 € 9,863 The Group recognized a total of €1,643 million for the cost for defined contribution and state plans for the year ended December 31, 2017 ( €1,540 million in 2016 and €1,541 million in 2015 ). The following table summarizes the fair value of defined benefit obligations and the fair value of the related plan assets: At December 31 2017 2016 (€ million) Present value of defined benefit obligations: Pension benefits € 25,528 € 28,065 Health care and life insurance plans 2,279 2,466 Other post-employment benefits 987 987 Total present value of defined benefit obligations (a) 28,794 31,518 Fair value of plan assets (b) 21,218 23,409 Asset ceiling (c) 14 12 Total net defined benefit plans (a - b + c) 7,590 8,121 of which: Net defined benefit liability (d) 8,089 8,471 Defined benefit plan asset (499 ) (350 ) Other provisions for employees (e) 1,189 1,392 Total Employee benefits liabilities (d + e) € 9,278 € 9,863 Pension benefits Liabilities arising from the Group's defined benefit plans are usually funded by contributions made by Group subsidiaries, and at times by their employees, into legally separate trusts from which the employee benefits are paid. The Group’s funding policy for defined benefit pension plans is to contribute the minimum amounts required by applicable laws and regulations. Occasionally, additional discretionary contributions in excess of those legally required are made to achieve certain desired funding levels. In the U.S., these excess amounts are tracked and the resulting credit balance can be used to satisfy minimum funding requirements in future years. At December 31, 2017 , the combined credit balances for the U.S. and Canada qualified pension plans were approximately €2.0 billion , and the usage of the credit balances to satisfy minimum funding requirements is subject to the plans maintaining certain funding levels. During the years ended December 31, 2017, 2016 and 2015, the Group made pension contributions in the U.S. and Canada totaling €124 million , € 445 million and € 202 million , respectively. The Group contributions to pension plans for 2018 are expected to be €92 million , of which €56 million relate to the U.S. and Canada, with €2 million being discretionary contributions and €54 million which will be made to satisfy minimum funding requirements. The expected benefit payments for pension plans are as follows: Expected benefit (€ million) 2018 € 1,592 2019 € 1,562 2020 € 1,550 2021 € 1,535 2022 € 1,524 2023-2027 € 7,556 The following table summarizes the changes in the pension plans: 2017 2016 Obligation Fair value of plan assets Asset ceiling Liability (asset) Obligation Fair value of plan assets Asset ceiling Liability (€ million) At January 1 € 28,065 € (23,409 ) € 12 € 4,668 € 27,547 € (22,415 ) € 11 € 5,143 Included in the Consolidated Income Statement 1,259 (817 ) — 442 1,322 (849 ) — 473 Included in Other comprehensive income: Actuarial (gains)/losses from: Demographic and other assumptions (42 ) — — (42 ) (49 ) (6 ) — (55 ) Financial assumptions 1,567 — — 1,567 346 — — 346 Return on assets — (1,589 ) — (1,589 ) — (861 ) — (861 ) Changes in the effect of limiting net assets — — 3 3 — — — — Changes in exchange rates (3,006 ) 2,445 (1 ) (562 ) 907 (817 ) 1 91 Other: Employer contributions — (141 ) — (141 ) — (454 ) — (454 ) Plan participant contributions — (3 ) — (3 ) 3 (4 ) — (1 ) Benefits paid (1,751 ) 1,735 — (16 ) (2,015 ) 1,999 — (16 ) Settlements paid (563 ) 563 — — — — — — Other changes (1 ) (2 ) — (3 ) 4 (2 ) — 2 At December 31 € 25,528 € (21,218 ) € 14 € 4,324 € 28,065 € (23,409 ) € 12 € 4,668 Amounts recognized in the Consolidated Income Statement were as follows: Years ended December 31 2017 2016 2015 (€ million) Current service cost € 172 € 175 € 196 Interest expense 1,090 1,157 1,143 Interest income (911 ) (944 ) (912 ) Other administration costs 94 95 92 Past service costs/(credits) and gains/(losses) arising from settlements/curtailments (3 ) (10 ) (8 ) Total recognized in the Consolidated Income Statement € 442 € 473 € 511 During the year ended December 31, 2017, the Group entered into an annuity buyout relating to two of its U.S. defined benefit plans. A total of €563 million was paid to a third-party insurance company in settlement of FCA's obligations, resulting in a settlement loss of €1 million that was recognized within Cost of revenues and Selling, general and other in the Consolidated Income Statement for the year ended December 31, 2017. During the year ended December 31, 2016, the Group amended its U.S. defined benefit plan for salaried employees to allow certain terminated vested participants to accept a lump-sum amount. A total of €214 million was paid to those participants who accepted the offer in December 2016. The plan amendment resulted in a settlement gain of €29 million that was recognized within Selling, general and other costs in the Consolidated Income Statement for the year ended December 31, 2016. There were no significant plan amendments or curtailments to the Group's pension plans for the year ended December 31, 2015. The fair value of plan assets by class was as follows: At December 31 2017 2016 Amount of which have a Amount of which have a (€ million) Cash and cash equivalents € 628 € 611 € 862 € 816 U.S. equity securities 1,426 1,426 1,641 1,633 Non-U.S. equity securities 1,098 1,098 1,170 1,170 Commingled funds 2,684 1,138 3,149 216 Equity instruments 5,208 3,662 5,960 3,019 Government securities 2,601 803 2,611 858 Corporate bonds (including convertible and high yield bonds) 5,864 — 6,353 58 Other fixed income 1,071 114 907 9 Fixed income securities 9,536 917 9,871 925 Private equity funds 1,962 — 1,979 — Commingled funds 165 162 147 118 Mutual funds — — 3 3 Real estate funds 1,374 13 1,460 — Hedge funds 1,893 49 2,466 — Investment funds 5,394 224 6,055 121 Insurance contracts and other 452 50 661 156 Total fair value of plan assets € 21,218 € 5,464 € 23,409 € 5,037 Non-U.S. Equity securities are invested broadly in developed international and emerging markets. Fixed income securities are debt instruments which are primarily comprised of long-term U.S. Treasury and global government bonds, as well as developed international and emerging market companies’ debt securities diversified by sector, geography and through a wide range of market capitalization. Private equity funds include those in limited partnerships that invest primarily in operating companies that are not publicly traded on a stock exchange. Commingled funds include common collective trust funds, mutual funds and other investment entities. Real estate fund investments include those in limited partnerships that invest in various commercial and residential real estate projects both domestically and internationally. Hedge fund investments include those seeking to maximize absolute return using a broad range of strategies to enhance returns and provide additional diversification. The investment strategies and objectives for pension assets primarily in the U.S. and Canada reflect a balance of liability-hedging and return-seeking investment considerations. The investment objectives are to minimize the volatility of the value of the pension assets relative to the pension liabilities and to ensure assets are sufficient to pay plan obligations. The objective of minimizing the volatility of assets relative to liabilities is addressed primarily through asset diversification, partial asset–liability matching and hedging. Assets are broadly diversified across many asset classes to achieve risk–adjusted returns that, in total, lower asset volatility relative to the liabilities. Additionally, in order to minimize pension asset volatility relative to the pension liabilities, a portion of the pension plan assets are allocated to fixed income securities. The Group policy for these plans ensures actual allocations are in line with target allocations as appropriate. Assets are actively managed primarily by external investment managers. Investment managers are not permitted to invest outside of the asset class or strategy for which they have been appointed. The Group uses investment guidelines to ensure investment managers invest solely within the mandated investment strategy. Certain investment managers use derivative financial instruments to mitigate the risk of changes in interest rates and foreign currencies impacting the fair values of certain investments. Derivative financial instruments may also be used in place of physical securities when it is more cost-effective and/or efficient to do so. Plan assets do not include shares of FCA or properties occupied by Group companies, with the possible exception of commingled investment vehicles where FCA does not control the investment guidelines. Sources of potential risk in pension plan assets measurements relate to market risk, interest rate risk and operating risk. Market risk is mitigated by diversification strategies and as a result, there are no significant concentrations of risk in terms of sector, industry, geography, market capitalization, or counterparty. Interest rate risk is mitigated by partial asset–liability matching. The fixed income target asset allocation partially matches the bond–like and long–dated nature of the pension liabilities. Interest rate increases generally will result in a decline in the fair value of the investments in fixed income securities and the present value of the obligations. Conversely, interest rate decreases will generally increase the fair value of the investments in fixed income securities and the present value of the obligations. The weighted average assumptions used to determine the defined benefit obligations were as follows: At December 31 2017 2016 U.S. Canada UK U.S. Canada UK Discount rate 3.8 % 3.5 % 2.7 % 4.4 % 3.9 % 2.7 % Future salary increase rate — % 3.5 % 3.2 % — % 3.5 % 3.1 % The average duration of the U.S. and Canadian liabilities was approximately 11 years and 13 years, respectively. The average duration of the UK pension liabilities was approximately 20 years. Health care and life insurance plans Liabilities arising from these plans comprise obligations for retiree health care and life insurance granted to employees and to retirees in the U.S. and Canada. Upon retirement from the Group, these employees may become eligible for continuation of certain benefits. Benefits and eligibility rules may be modified periodically. These plans are unfunded. The expected benefit payments for unfunded health care and life insurance plans are as follows: Expected benefit payments (€ million) 2018 € 125 2019 € 125 2020 € 124 2021 € 124 2022 € 125 2023-2027 € 634 Changes in the net defined benefit obligations for healthcare and life insurance plans were as follows: 2017 2016 (€ million) Present value of obligations at January 1 € 2,466 € 2,459 Included in the Consolidated Income Statement 120 130 Included in Other comprehensive income: Actuarial (gains)/losses from: - Demographic and other assumptions (52 ) (77 ) - Financial assumptions 160 10 Effect of movements in exchange rates (278 ) 83 Other: Benefits paid (137 ) (139 ) Other changes — — Present value of obligations at December 31 € 2,279 € 2,466 Amounts recognized in the Consolidated Income Statement were as follows: Years ended December 31 2017 2016 2015 (€ million) Current service cost € 22 € 26 € 32 Interest expense 98 107 102 Past service costs/(credits) and losses/(gains) arising from settlements — (3 ) — Total recognized in the Consolidated Income Statement € 120 € 130 € 134 Health care and life insurance plans are accounted for on an actuarial basis, which requires the selection of various assumptions. In particular, it requires the use of estimates of the present value of the projected future payments to all participants, taking into consideration the likelihood of potential future events such as health care cost increases and demographic experience. The weighted average assumptions used to determine the defined benefit obligations were as follows: At December 31 2017 2016 U.S. Canada U.S. Canada Discount rate 3.9 % 3.6 % 4.5 % 4.0 % Salary growth 1.5 % 1.0 % 1.5 % 1.0 % Weighted average ultimate healthcare cost trend rate 4.5 % 4.5 % 4.5 % 4.4 % The average duration of the U.S. and Canadian liabilities was approximately 13 years and 16 years, respectively. The annual rate of increase in the per capita cost of covered U.S. health care benefits assumed for next year and used in the 2017 plan valuation was 6.8 percent ( 7.0 percent in 2016 ). The annual rate was assumed to decrease gradually to 4.5 percent after 2029 and remain at that level thereafter. The annual rate of increase in the per capita cost of covered Canadian health care benefits assumed for next year and used in the 2017 plan valuation was 4.8 percent ( 4.7 percent in 2016 ). The annual rate was assumed to decrease gradually to 4.5 percent in 2029 and remain at that level thereafter. Other post-employment benefits Other post-employment benefits include other employee benefits granted to Group employees in Europe and comprises, amongst others, the Italian employee severance indemnity (trattamento di fine rapporto, or “TFR”) obligation, required under Italian Law, amounting to €752 million at December 31, 2017 and €775 million at December 31, 2016 . The amount of TFR to which each employee is entitled must be paid when the employee leaves the Group and is calculated based on the period of employment and the taxable earnings of each employee. Under certain conditions, the entitlement may be partially advanced to an employee during their working life. The legislation regarding this scheme was amended by Law 296 of December 27, 2006 and subsequent decrees and regulations issued in 2007. Under these amendments, companies with at least 50 employees were obliged to transfer the TFR to the “Treasury fund” managed by the Italian state-owned social security body (“INPS”) or to supplementary pension funds. Prior to the amendments, accruing TFR for employees of all Italian companies could be managed by the company itself. Consequently, the Italian companies’ obligation to INPS and the contributions to supplementary pension funds take the form of defined contribution plans under IAS 19 - Employee Benefits, whereas the amounts recorded in the provision for employee severance pay retain the nature of defined benefit plans. Accordingly, the provision for employee severance indemnity in Italy consisted of the residual obligation for TFR through December 31, 2006. This is an unfunded defined benefit plan as the benefits have already been entirely earned, with the sole exception of future revaluations. Since 2007, the scheme has been classified as a defined contribution plan and the Group recognizes the associated cost over the period in which the employee renders service. Changes in defined benefit obligations for other post-employment benefits were as follows: 2017 2016 (€ million) Present value of obligations at January 1 € 987 € 969 Included in the Consolidated Income Statement 23 26 Included in Other comprehensive income: Actuarial (gains)/losses from: - Demographic and other assumptions 18 36 - Financial assumptions (3 ) 29 Effect of movements in exchange rates (5 ) 1 Other: Benefits paid (48 ) (58 ) Transfer to Liabilities held for sale — (14 ) Other changes 15 (2 ) Present value of obligations at December 31 € 987 € 987 Amounts recognized in the Consolidated Income Statement were as follows: Years ended December 31 2017 2016 2015 (€ million) Current service cost € 11 € 8 € 10 Interest expense 13 17 6 Past service costs (credits) and (gains)/losses arising from settlements (1 ) 1 — Total recognized in the Consolidated Income Statement € 23 € 26 € 16 The discount rates used for the measurement of the Italian TFR obligation are based on yields of high-quality (AA rated) fixed income securities for which the timing and amounts of maturities match the timing and amounts of the projected benefit payments. For this plan, the single weighted average discount rate that reflects the estimated timing and amount of the scheme future benefit payments for 2017 was 1.2 percent ( 1.0 percent in 2016 ). The average duration of the Italian TFR is approximately 7 years. Retirement or employee leaving rates are developed to reflect actual and projected Group experience and law requirements for retirement in Italy. Other provisions for employees Other provisions for employees primarily include long-term disability benefits, supplemental unemployment benefits, variable and other deferred compensation, as well as bonuses granted for tenure at the Company. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2017 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Provisions | Provisions Provisions consisted of the following: At December 31 2017 2016 Current Non-current Total Current Non-current Total (€ million) Product warranty and recall campaigns € 2,676 € 4,049 € 6,725 € 2,905 € 4,637 € 7,542 Sales incentives 5,377 — 5,377 5,749 — 5,749 Legal proceedings and disputes 125 551 676 54 530 584 Commercial risks 481 334 815 250 412 662 Restructuring 26 44 70 26 46 72 Other risks 324 792 1,116 333 895 1,228 Total Provisions € 9,009 € 5,770 € 14,779 € 9,317 € 6,520 € 15,837 Changes in Provisions were as follows: At Additional Settlements Unused Translation differences Changes in At (€ million) Product warranty and recall campaigns € 7,542 € 3,196 € (3,262 ) € — € (746 ) € (5 ) € 6,725 Sales incentives 5,749 13,850 (13,675 ) (3 ) (567 ) 23 5,377 Legal proceedings and disputes 584 200 (69 ) (38 ) (49 ) 48 676 Commercial risks 662 432 (181 ) (34 ) (64 ) — 815 Restructuring costs 72 91 (55 ) (3 ) (3 ) (32 ) 70 Other risks 1,228 229 (187 ) (97 ) (62 ) 5 1,116 Total Provisions € 15,837 € 17,998 € (17,429 ) € (175 ) € (1,491 ) € 39 € 14,779 Product warranty and recall campaigns At December 31, 2017, the Product warranty and recall campaigns provision included €102 million of charges recognized within Cost of revenues in the Consolidated Income Statement for the year ended December 31, 2017 for the estimated costs associated with an extension of the recall campaigns related to an industry-wide recall of airbag inflators resulting from parts manufactured by Takata, of which €29 million related to the previously announced recall in NAFTA and €73 million related to the preventative safety campaigns in LATAM. Refer to Note 25, Guarantees granted, commitments and contingent liabilities , for additional information. At December 31, 2016, the Product warranty and recall campaigns provision included €414 million of charges recognized within Cost of revenues in the Consolidated Income Statement for the year ended December 31, 2016 for the additional estimated costs associated with the recall campaigns related to an industry wide recall of airbag inflators resulting from parts manufactured by Takata. Refer to Note 25 , Guarantees granted, commitments and contingent liabilities , for additional information. In addition, the Product warranty and recall campaigns provision included €132 million of estimated net costs recognized within Cost of revenues in the Consolidated Income Statement for the year ended December 31, 2016 associated with a recall for which costs are being contested with a supplier. Although FCA believes the supplier has responsibility for the recall, only a partial recovery of the estimated costs has been recognized pursuant to a cost sharing agreement. The cash outflow for the non-current portion of the Product warranty and recall campaigns provision is primarily expected within a period through 2022. Sales incentives, Legal proceedings and disputes, Commercial risks and Other risks As described within Note 2 , Basis of preparation ( Use of Estimates section), the Group records the estimated cost of sales incentive programs offered to dealers and consumers as a reduction to revenue at the time of sale of the vehicle to the dealer. None of the provisions within the total Legal proceedings and disputes provision are individually significant. As described within Note 2 , Basis of preparation ( Use of Estimates section), a provision for legal proceedings is recognized when it is deemed probable that the proceedings will result in an outflow of resources. As the ultimate outcome of pending litigation is uncertain, the timing of cash outflow for the Legal proceedings and disputes provision is also uncertain. Commercial risks arise in connection with the sale of products and services such as onerous maintenance contracts and as a result of certain regulatory emission requirements. For items such as onerous maintenance contracts, a provision is recognized when the expected costs to complete the services under these contracts exceed the revenues expected to be realized. A provision for fines related to certain regulatory emission requirements that can be settled with cash fines is recognized at the time vehicles are sold based on the estimated cost to settle the obligation measured as the sum of the cost of regulatory credits previously purchased plus the amount, if any, of the fine expected to be paid in cash. The cash outflow for the non-current portion of the Commercial risks provision is primarily expected within a period through 2020. Other risks include, among other items: provisions for disputes with suppliers related to supply contracts or other matters that are not subject to legal proceedings, provisions for product liabilities arising from personal injuries including wrongful death and potential exemplary or punitive damages alleged to be the result of product defects, disputes with other parties relating to contracts or other matters not subject to legal proceedings and management's best estimate of the Group’s probable environmental obligations which also includes costs related to claims on environmental matters. The cash outflow for the non-current portion of the Other risks provision is primarily expected within a period through 2024. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Debt | Debt Debt classified within current liabilities includes short-term borrowings from banks and other financing with an original maturity date falling within twelve months, as well as the current portion of long-term debt. Debt classified within non-current liabilities includes borrowings from banks and other financing with maturity dates greater than twelve months (long-term debt), net of the current portion. The following table summarizes the Group's current and non-current Debt by maturity date (amounts include accrued interest): At December 31 2017 2016 Due Due Due Total (non-current) Total Debt Due within Due Due Total (non-current) Total Debt (€ million) Notes € 2,054 € 5,071 € 2,501 € 7,572 € 9,626 € 2,565 € 5,763 € 4,023 € 9,786 € 12,351 Borrowings from banks 4,132 2,278 502 2,780 6,912 4,025 4,592 786 5,378 9,403 Asset-backed financing (Note 15) 357 — — — 357 410 — — — 410 Other debt 702 347 27 374 1,076 937 688 259 947 1,884 Total Debt € 7,245 € 7,696 € 3,030 € 10,726 € 17,971 € 7,937 € 11,043 € 5,068 € 16,111 € 24,048 Notes The following table summarizes the outstanding notes at December 31, 2017 and 2016: At December 31 Currency Face value of Coupon % Maturity 2017 2016 Medium Term Note Programme: (€ million) Fiat Chrysler Finance Europe S.A. (1) EUR 850 7.000 March 23, 2017 € — € 850 Fiat Chrysler Finance North America, Inc. (1) EUR 1,000 5.625 June 12, 2017 — 1,000 Fiat Chrysler Finance Europe S.A. (2) CHF 450 4.000 November 22, 2017 — 419 Fiat Chrysler Finance Europe S.A. (1) EUR 1,250 6.625 March 15, 2018 1,250 1,250 Fiat Chrysler Finance Europe S.A. (1) EUR 600 7.375 July 9, 2018 600 600 Fiat Chrysler Finance Europe S.A. (2) CHF 250 3.125 September 30, 2019 213 233 Fiat Chrysler Finance Europe S.A. (1) EUR 1,250 6.750 October 14, 2019 1,250 1,250 Fiat Chrysler Finance Europe S.A. (1) EUR 1,000 4.750 March 22, 2021 1,000 1,000 Fiat Chrysler Finance Europe S.A. (1) EUR 1,350 4.750 July 15, 2022 1,350 1,350 FCA NV (1) EUR 1,250 3.750 March 29, 2024 1,250 1,250 Other (3) EUR 7 7 7 Total Medium Term Note Programme 6,920 9,209 Other Notes: FCA NV (1) U.S.$ 1,500 4.500 April 15, 2020 1,251 1,423 FCA NV (1) U.S.$ 1,500 5.250 April 15, 2023 1,251 1,423 Total Other Notes 2,502 2,846 Hedging effect, accrued interest and amortized cost valuation 204 296 Total Notes € 9,626 € 12,351 _________________________ (1) Listing on the Irish Stock Exchange was obtained. (2) Listing on the SIX Swiss Exchange was obtained. (3) Medium Term Notes with amounts outstanding equal to or less than the equivalent of €50 million . Notes Issued Through the Medium Term Note Programme Certain notes issued by the Group are governed by the terms and conditions of the Medium Term Note (“MTN”) Programme (previously known as the Global Medium Term Note Programme, or “GMTN” Programme). A maximum of €20 billion may be used under this programme, of which notes of € 6.9 billion were outstanding at December 31, 2017 (€ 9.2 billion at December 31, 2016 ). The MTN Programme is guaranteed by FCA NV. We may from time to time buy back notes in the market that have been issued. Such buybacks, if made, depend upon market conditions, the Group's financial situation and other factors which could affect such decisions. Changes in notes issued under the MTN Programme during the year ended December 31, 2017 were due to the: • repayment at maturity of a note in March 2017 with a principal amount of € 850 million ; • repayment at maturity of a note in June 2017 with a principal amount of € 1,000 million ; and • repayment at maturity of a note in November 2017 with a principal amount of CHF 450 million ( €385 million ). Changes in notes issued under the MTN Programme during the year ended December 31, 2016 were due to the: • issuance of a 3.75 percent note at par in March 2016 with a principal amount of € 1,250 million , due in March 2024; • repayment at maturity of a note in April 2016 with a principal amount of €1,000 million ; • repayment at maturity of a note in October 2016 with a principal amount of €1,000 million ; and • repayment at maturity of a note in November 2016 with a principal amount of CHF 400 million ( €373 million ). The notes issued under the MTN Programme impose covenants on the issuer and, in certain cases, on FCA NV as guarantor, which include: (i) negative pledge clauses which require that, in case any security interest upon assets of the issuer and/or FCA NV is granted in connection with other notes or debt securities having the same ranking, such security should be equally and ratably extended to the outstanding notes; (ii) pari passu clauses, under which the notes rank and will rank pari passu with all other present and future unsubordinated and unsecured obligations of the issuer and/or FCA NV; (iii) periodic disclosure obligations; (iv) cross-default clauses which require immediate repayment of the notes under certain events of default on other financial instruments issued by FCA's main entities; and (v) other clauses that are generally applicable to securities of a similar type. A breach of these covenants may require the early repayment of the notes. As of December 31, 2017 , FCA was in compliance with the covenants under the MTN Programme. Other Notes In 2015, FCA NV issued U.S.$ 1.5 billion (€ 1.4 billion ) principal amount of 4.5 percent unsecured senior debt securities due April 15, 2020 (the “2020 Notes”) and U.S.$ 1.5 billion (€ 1.4 billion ) principal amount of 5.25 percent unsecured senior debt securities due April 15, 2023 (the “2023 Notes”) at an issue price of 100 percent of their principal amount. The 2020 Notes and the 2023 Notes, collectively referred to as the “Notes”, rank pari passu in right of payment with respect to all of FCA NV's existing and future senior unsecured indebtedness and senior in right of payment to any of FCA NV's future subordinated indebtedness and existing indebtedness, which is by its terms subordinated in right of payment to the Notes. Interest on the 2020 Notes and the 2023 Notes is payable semi-annually in April and October. The Notes impose covenants on FCA NV including: (i) negative pledge clauses which require that, in case any security interest upon assets of FCA NV is granted in connection with other notes or debt securities having the same ranking, such security should be equally and ratably extended to the outstanding Notes; (ii) pari passu clauses, under which the Notes rank and will rank pari passu with all other present and future unsubordinated and unsecured obligations of FCA NV; (iii) periodic disclosure obligations; (iv) cross-default clauses which require immediate repayment of the Notes under certain events of default on other financial instruments issued by FCA’s main entities; and (v) other clauses that are generally applicable to securities of a similar type. A breach of these covenants may require the early repayment of the Notes. As of December 31, 2017 , FCA was in compliance with the covenants of the Notes. Fiat Chrysler Finance US Inc. On March 6, 2017, Fiat Chrysler Finance US Inc. (“FCF US”) was incorporated under the laws of Delaware and became an indirect, 100 percent owned subsidiary of the Company. If FCF US issues debt securities, they will be fully and unconditionally guaranteed by the Company. No other subsidiary of the Company will guarantee such indebtedness. Borrowings from banks FCA US Tranche B Term Loans On February 24, 2017, FCA US prepaid the U.S.$ 1,826 million (€ 1,721 million ) outstanding principal and accrued interest for its tranche B term loan maturing May 24, 2017 (the “Tranche B Term Loan due 2017”). The prepayment was made with cash on hand and did not result in a material loss on extinguishment. At December 31, 2017 , € 836 million ( €948 million at December 31, 2016 ), which included accrued interest, was outstanding under FCA US's Tranche B Term Loan maturing December 31, 2018 (the “Tranche B Term Loan due 2018”). On April 12, 2017, FCA US amended the credit agreement that governs the Tranche B Term Loan due 2018. The amendment reduced the applicable interest rate spreads by 0.50 percent per annum and reduced the LIBOR floor by 0.75 percent per annum, to 0.00 percent . In addition, the base rate floor was eliminated. As a result, the Tranche B Term Loan due 2018 bears interest, at FCA US's option, either at a base rate plus 1.0 percent per annum or at LIBOR plus 2.0 percent per annum. FCA US may prepay, refinance or re-price the Tranche B Term Loan due 2018 without premium or penalty. For the years ended December 31, 2017 and 2016, interest was accrued based on LIBOR. On March 15, 2016, FCA US entered into amendments to the credit agreements that govern the Tranche B Term Loans to, among other items, eliminate covenants restricting the provision of guarantees and payment of dividends by FCA US for the benefit of the rest of the Group, to enable a unified financing platform and to provide free flow of capital within the Group. In conjunction with these amendments, FCA US made a U.S.$ 2.0 billion (€ 1.8 billion ) voluntary prepayment of principal at par with cash on hand, of which U.S.$ 1,288 million (€ 1,159 million ) was applied to the Tranche B Term Loan due 2017 and U.S.$ 712 million (€ 641 million ) was applied to the Tranche B Term Loan due 2018. Accrued interest related to the portion of principal prepaid of the Tranche B Term Loans and related transaction fees were also paid. The prepayments of principal were accounted for as debt extinguishments and, as a result, a non-cash charge of €10 million was recorded within Net financial expenses in the Consolidated Income Statement for the year ended December 31, 2016 which consisted of the write-off of the remaining unamortized debt issuance costs. The amendments to the remaining principal balance were analyzed on a lender-by-lender basis and accounted for as debt modifications in accordance with IAS 39 - Financial Instruments: Recognition and Measurement. As such, the debt issuance costs for each of the amendments were capitalized and are amortized over the respective remaining terms of the Tranche B Term Loans. For each of the Tranche B Term Loans, FCA US prepaid the scheduled quarterly principal payments, with the remaining balance applied to the principal balance due at maturity. Periodic interest payments, however, continue to be required. The Tranche B Term Loan due 2018 is secured by a senior priority security interest in substantially all of FCA US’s assets and the assets of its U.S. subsidiary guarantors, subject to certain exceptions. The collateral includes 100 percent of the equity interests in FCA US's U.S. subsidiaries and 65 percent of the equity interests in certain of its non-U.S. subsidiaries held directly by FCA US and its U.S. subsidiary guarantors. The credit agreement that governs the Tranche B Term Loan due 2018 includes a number of affirmative covenants, many of which are customary, including, but not limited to, the reporting of financial results and other developments, compliance with laws, payment of taxes, maintenance of insurance and similar requirements. The credit agreement also includes negative covenants, including but not limited to: (i) limitations on incurrence, repayment and prepayment of indebtedness, (ii) limitations on incurrence of liens, (iii) limitations on swap agreements and sale and leaseback transactions, (iv) limitations on fundamental changes, including certain asset sales and (v) restrictions on certain subsidiary distributions. In addition, the credit agreement requires FCA US to maintain a minimum ratio of “borrowing base” to “covered debt” (as defined), as well as a minimum liquidity of U.S.$ 3.0 billion (€ 2.5 billion ). Furthermore, the credit agreement also contains a number of events of default related to: (i) failure to make payments when due; (ii) failure to comply with covenants, (iii) breaches of representations and warranties, (iv) certain changes of control, (v) cross–default with certain other debt and hedging agreements and (vi) the failure to pay or post bond for certain material judgments. As of December 31, 2017 , FCA US was in compliance with the covenants of the credit agreement that governs the Tranche B Term Loan due 2018. European Investment Bank Borrowings FCA has financing agreements with the European Investment Bank (“EIB”) for a total of €1.1 billion outstanding at December 31, 2017 ( €1.3 billion outstanding at December 31, 2016 ), which included the residual debt due under the following facilities: • the facility for €250 million (maturing in December 2019) entered into in December 2016 to support the Group's investment plan (2017-2019) in research and development centers in Italy, which includes a number of key objectives such as greater fuel efficiency, a reduction in CO 2 emissions by petrol and alternative fuel engines and the study of new hybrid architectures, as well as certain capital expenditures for facilities located in southern Italy; • the facility for €600 million (maturing in July 2018), entered into in June 2015 (50 percent guaranteed by SACE) to support the Group's investment plan (2015-2017) for production and research and development sites in both northern and southern Italy, to develop efficient vehicle technologies for vehicle safety and new vehicle architectures; • the facility for €400 million (maturing in November 2018), entered into in November 2013 (50 percent guaranteed by SACE) to support certain investments and research and development programs in Italy; and • the facility for €500 million (maturing in June 2021), entered into in May 2011 (guaranteed by SACE and the Serbian Authorities) for an investment program relating to the modernization and expansion of production capacity of an automotive plant in Serbia. Brazil Our Brazilian subsidiaries have access to various local bank facilities in order to fund investments and operations. Total debt outstanding under those facilities amounted to a principal amount of €3.2 billion at December 31, 2017 ( €4.0 billion at December 31, 2016 ). The loans primarily include subsidized loans granted by public financing institutions such as Banco Nacional do Desenvolvimento (“BNDES”), with the aim to support industrial projects in certain areas. This provided the Group the opportunity to fund large investments in Brazil with loans of sizeable amounts at attractive rates. At December 31, 2017 , outstanding subsidized loans amounted to €2.1 billion ( €2.6 billion at December 31, 2016 ), of which €1.3 billion ( €1.6 billion at December 31, 2016 ) related to the construction of the plant in Pernambuco (Brazil), which has been supported by subsidized credit lines totaling Brazilian Real (“BRL”) 6.5 billion ( €1.6 billion ). Approximately €0.1 billion ( €0.3 billion at December 31, 2016 ) of committed credit lines contracted to fund scheduled investments in the area were undrawn at December 31, 2017 . Revolving Credit Facilities In March 2017, the Group amended its syndicated revolving credit facility originally signed in June 2015 (as amended, the “RCF”). The amendment increased the RCF from € 5.0 billion to € 6.25 billion and extended the RCF’s final maturity to March 2022. The RCF, which is available for general corporate purposes and for working capital needs of the Group, is structured in two tranches: € 3.125 billion , with a 37 -month tenor and two extension options of 1 -year and of 11 -months exercisable on the first and second anniversary of the amendment signing date, respectively, and € 3.125 billion , with a 60 -month tenor. The amendment was accounted for as a debt modification and, as a result, the remaining unamortized debt issuance costs related to the original €5.0 billion RCF and the new costs associated with the amendment will be amortized over the life of the amended RCF. At December 31, 2017 , the € 6.25 billion RCF was undrawn. The covenants of the RCF include financial covenants as well as negative pledge, pari passu , cross-default and change of control clauses. The failure to comply with these covenants and, in certain cases if not suitably remedied, can lead to the requirement of early repayment of any outstanding amounts. As of December 31, 2017 , FCA was in compliance with the covenants of the RCF. At December 31, 2017 , undrawn committed credit lines totaling €7.6 billion included the € 6.25 billion RCF and approximately €1.3 billion of other revolving credit facilities. At December 31, 2016 , undrawn committed credit lines totaling €6.2 billion included the original € 5.0 billion RCF and approximately €1.2 billion of other revolving credit facilities. Mexico Bank Loan FCA Mexico, S.A. de C.V. (“FCA Mexico”), our principal operating subsidiary in Mexico, has a non-revolving loan agreement (“Mexico Bank Loan”) maturing on March 20, 2022 and bears interest at one-month LIBOR plus 3.35 percent per annum. At December 31, 2017, the Mexico Bank Loan had an outstanding balance of €0.4 billion ( €0.5 billion at December 31, 2016). As of December 31, 2017, we may prepay all or any portion of the loan without premium or penalty. The Mexico Bank Loan requires FCA Mexico to maintain certain fixed and other assets as collateral, and comply with certain covenants, including, but not limited to, financial maintenance covenants, limitations on liens, incurrence of debt and asset sales. As of December 31, 2017, FCA Mexico was in compliance with the covenants under the Mexico Bank Loan. Asset-backed financing Asset-backed financing represents the amount of financing received through factoring transactions which do not meet IAS 39 derecognition requirements and are recognized as assets of the same amount of €357 million ( €410 million at December 31, 2016) within Trade and other receivables in the Consolidated Statement of Financial Position (Note 15, Trade, other receivables and tax receivables ). Other debt During the year ended December 31, 2017, FCA US's Canadian subsidiary made payments on the Canada Health Care Trust (“HCT”) Tranche B Note totaling €272 million , which included a scheduled payment of principal and accrued interest and the prepayment of the remaining scheduled payments due on the Canada HCT Tranche B Note. The prepayment, of €226 million , was accounted for as a debt extinguishment, and as a result, a gain on extinguishment of €9 million was recorded within Net financial expenses in the Consolidated Income Statement for the year ended December 31, 2017. This Canada HCT Note represented FCA US’s principal Canadian subsidiary’s remaining financial liability to the Canadian Health Care Trust arising from the settlement of its obligations for postretirement health care benefits for National Automobile, Aerospace, Transportation and General Workers Union of Canada “CAW” (now part of Unifor), which represented employees, retirees and dependents At December 31, 2016 , Other debt included the unsecured Canada HCT Tranche B Note totaling €278 million , including accrued interest. During the year ended December 31, 2016, FCA US's Canadian subsidiary made payments on the Canada HCT Notes totaling €148 million , which included accrued interest and the prepayment of all scheduled payments due on the Canada HCT Tranche C Note. The prepayment on the Canada HCT Tranche C Note made on July 15, 2016 resulted in a loss on extinguishment of debt of €8 million that was recorded within Net financial expenses in the Consolidated Income Statement for the year ended December 31, 2016. As described in more detail in Note 26 , Equity , FCA issued Mandatory Convertible Securities in December 2014 with an aggregate notional amount of U.S. $2,875 million ( €2,293 million ), whereby the obligation to pay coupons as required by the Mandatory Convertible Securities met the definition of a financial liability. The Mandatory Convertible Securities were converted into FCA common shares on December 15, 2016 and the financial liability of U.S. $226 million ( €213 million ) was paid in cash. Other debt also included funds raised from financial services companies, primarily in Latin America, deposits from dealers in Brazil and the Group's payables for finance leases, which are summarized in the table below: At December 31 2017 2016 Due Due Due Due Total Due Due Due Due Total (€ million) Minimum future lease € 90 € 134 € 19 € 74 € 317 € 138 € 246 € 131 € 188 € 703 Interest expense (15 ) (15 ) (3 ) (3 ) (36 ) (22 ) (29 ) (7 ) (5 ) (63 ) Present value of minimum € 75 € 119 € 16 € 71 € 281 € 116 € 217 € 124 € 183 € 640 Debt secured by assets At December 31, 2017 , debt secured by assets of the Group (excluding FCA US) amounted to €743 million ( €914 million at December 31, 2016 ), of which €140 million ( €433 million at December 31, 2016 ) was due to creditors for assets acquired under finance leases and the remaining amount mainly related to subsidized financing in Latin America. The total carrying amount of assets acting as security for loans for the Group (excluding FCA US) amounted to €2,372 million at December 31, 2017 ( €1,940 million at December 31, 2016 ) (Note 11 , Property, plant and equipment ). At December 31, 2017 , debt secured by assets of FCA US amounted to €1,441 million and included €836 million relating to the Tranche B Term Loan due 2018, €141 million due to creditors for assets acquired under finance leases and €464 million for other debt and financial commitments. At December 31, 2016 , debt secured by assets of FCA US amounted to €3,446 million and included €2,678 million relating to the Tranche B Term Loans, €207 million due to creditors for assets acquired under finance leases and €561 million for other debt and financial commitments. |
Other liabilities and tax payab
Other liabilities and tax payable | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other liabilities and Tax payable | Other liabilities and Tax payables Other liabilities consisted of the following: At December 31 2017 2016 Current Non-current Total Current Non-current Total (€ million) Payables for buy-back agreements € 2,234 € — € 2,234 € 2,081 € — € 2,081 Indirect tax payables 799 19 818 667 968 1,635 Accrued expenses and deferred income 1,573 2,260 3,833 1,320 2,428 3,748 Payables to personnel 988 16 1,004 1,006 34 1,040 Social security payables 313 6 319 312 7 319 Amounts due to customers for contract work (Note 14) 190 — 190 236 — 236 Other 1,838 199 2,037 2,187 166 2,353 Total Other liabilities € 7,935 € 2,500 € 10,435 € 7,809 € 3,603 € 11,412 An analysis of Other liabilities (excluding Accrued expenses and deferred income) by due date was as follows: At December 31 2017 2016 Total due within one year (Current) Due between one and five years Due beyond five years Total due after one year (Non-Current) Total Total due within one year (Current) Due between one and five years Due beyond five years Total due after one year (Non-Current) Total (€ million) Other liabilities (excluding Accrued expenses and deferred income) € 6,362 € 227 € 13 € 240 € 6,602 € 6,489 € 1,159 € 16 € 1,175 € 7,664 Payables for buy-back agreements refers to buy-back agreements entered into by the Group and includes the price received for the product recognized as an advance at the date of the sale, and subsequently, the repurchase price and the remaining lease installments yet to be recognized. Indirect tax payables include federal taxes on commercial transactions accrued by the Group's Brazilian subsidiaries for which, at December 31, 2016, the Group (as well as a number of important industrial groups that operate in Brazil) was awaiting a decision by the Brazilian Supreme Court regarding its claim alleging double taxation. On March 15, 2017, the Brazilian Supreme Court ruled that state value added tax should be excluded from the base for calculating a federal tax on revenue. At June 30, 2017, the Group determined that the likelihood of economic outflow related to such indirect taxes was no longer probable and the total liability of €895 million that FCA had accrued but not paid for such taxes for the period from 2007 to 2014 was reversed. Due to the materiality of this item and its effect on our results, the amount is presented separately in the line Reversal of a Brazilian indirect tax liability in the Consolidated Income Statement for the year ended December 31, 2017, and is composed of €547 million , originally recognized as a reduction to Net revenues, and €348 million , originally recognized within Net financial expenses. The Brazilian Supreme Court issued summary written minutes of its ruling on September 29, 2017 and Trial Minutes on October 2, 2017. On October 19, 2017, the Brazilian government filed its appeal against the PIS/COFINS over ICMS decision. Due to the uncertainty of scope of the application of the Supreme Court ruling taking into account the government’s appeal and request for modulation, and due to Brazil’s current heightened political and economic uncertainty, management believes a risk of economic outflow is still greater than remote. Deferred income includes revenues not yet recognized in relation to separately-priced extended warranties and service contracts. These revenues will be recognized in the Consolidated Income Statement over the contract period in proportion to the costs expected to be incurred based on historical information. Deferred income also includes the remaining portion of government grants that will be recognized as income in the Consolidated Income Statement over the periods necessary to match them with the related costs which they are intended to offset. On January 20, 2017, the last installment of U.S.$ 175 million ( €166 million ) was paid on the obligation arising from the 2014 memorandum of understanding between FCA US and the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, which was included within Other current liabilities at December 31, 2016. Tax payables An analysis by due date for Tax payables was as follows: At December 31 2017 2016 Total due within one year (Current) Due between one and five years Due beyond five years Total due after one year (Non-Current) Total Total due within one year (Current) Due between one and five years Due beyond five years Total due after one year (Non-Current) Total (€ million) Tax payables € 309 € 32 € 42 € 74 € 383 € 162 € 25 € — € 25 € 187 |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurement [Abstract] | |
Fair value measurements | Fair value measurement Assets and liabilities that are measured at fair value on a recurring basis The following table shows the fair value hierarchy for financial assets and liabilities that are measured at fair value on a recurring basis: At December 31 2017 2016 Note Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (€ million) Debt securities and equity instruments measured at fair value through other comprehensive income 13 € 3 € 24 € — € 27 € 159 € 18 € 12 € 189 Debt securities and equity instruments measured at fair value through profit or loss 13 275 — 2 277 312 — — 312 Collateral deposits 13 61 — — 61 68 — — 68 Derivative financial assets 16 — 254 30 284 — 458 21 479 Cash and cash equivalents 17 10,800 1,838 — 12,638 15,790 1,528 — 17,318 Total Assets € 11,139 € 2,116 € 32 € 13,287 € 16,329 € 2,004 € 33 € 18,366 Derivative financial liabilities 16 — 138 1 139 — 695 2 697 Total Liabilities € — € 138 € 1 € 139 € — € 695 € 2 € 697 In 2017 , there were no transfers between Levels in the fair value hierarchy. For assets and liabilities recognized in the financial statements at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting period. The fair value of derivative financial assets and liabilities is measured by taking into consideration market parameters at the balance sheet date and using valuation techniques widely accepted in the financial business environment. In particular: • the fair value of forward contracts and currency swaps is determined by taking the prevailing exchange rates and interest rates at the balance sheet date; • the fair value of interest rate swaps and forward rate agreements is determined by taking the prevailing interest rates at the balance sheet date and using the discounted expected cash flow method; • the fair value of combined interest rate and currency swaps is determined using the exchange and interest rates prevailing at the balance sheet date and the discounted expected cash flow method; and • the fair value of swaps and options hedging commodity price risk is determined by using suitable valuation techniques and taking market parameters at the balance sheet date (in particular, underlying prices, interest rates and volatility rates). The carrying value of Cash and cash equivalents (Note 17 , Cash and cash equivalents ) usually approximates fair value due to the short maturity of these instruments. The fair value of money market funds is also based on available market quotations. Where appropriate, the fair value of cash equivalents is determined with discounted expected cash flow techniques using observable market yields (categorized as Level 2). The following table provides a reconciliation of the changes in items measured at fair value and categorized within Level 3: Securities Derivative financial (€ million) At January 1, 2016 € 12 € (35 ) Gains/(Losses) recognized in Consolidated Income Statement — (31 ) Gains/(Losses) recognized in Other comprehensive income — 62 Issues/Settlements — 23 At December 31, 2016 12 19 Gains/(Losses) recognized in Consolidated Income Statement (10 ) 27 Gains/(Losses) recognized in Other comprehensive income — 18 Issues/Settlements — (35 ) At December 31, 2017 € 2 € 29 The gains/(losses) included in the Consolidated Income Statements were recognized within Cost of revenues. Of the total gains/(losses) recognized in Other comprehensive income, € 20 million was recognized within Cash flow reserves and € 2 million was recognized within Currency translation differences. Assets and liabilities not measured at fair value on recurring basis The carrying value for current receivables and payables is a reasonable approximation of the fair value as the present value of future cash flows does not differ significantly from the carrying amount. The following table provides the carrying amount and fair value for financial assets and liabilities not measured at fair value on a recurring basis: At December 31 2017 2016 Note Carrying Fair Carrying Fair (€ million) Dealer financing € 2,295 € 2,295 € 2,115 € 2,115 Retail financing 420 405 286 285 Finance lease 4 4 6 6 Other receivables from financing activities 421 421 171 171 Total Receivables from financing activities 15 € 3,140 € 3,125 € 2,578 € 2,577 Asset backed financing € 357 € 357 € 410 € 410 Notes 9,626 10,365 12,351 13,164 Other debt 7,988 8,001 11,287 11,311 Total Debt 21 € 17,971 € 18,723 € 24,048 € 24,885 The fair value of Receivables from financing activities, which are categorized within Level 3 of the fair value hierarchy, has been estimated with discounted cash flows models. The most significant inputs used for this measurement are market discount rates that reflect conditions applied in various reference markets on receivables with similar characteristics, adjusted in order to take into account the credit risk of the counterparties. Notes that are traded in active markets for which close or last trade pricing is available are classified within Level 1 of the fair value hierarchy. Notes for which such prices are not available are valued at the last available price or based on quotes received from independent pricing services or from dealers who trade in such securities and are categorized as Level 2. At December 31, 2017 , €10,358 million and €7 million of notes were classified within Level 1 and Level 2, respectively. At December 31, 2016 , €13,157 million and €7 million of notes were classified within Level 1 and Level 2, respectively. The fair value of Other debt included in Level 2 of the fair value hierarchy has been estimated using discounted cash flow models. The main inputs used are year-end market interest rates, adjusted for market expectations of the Group’s non-performance risk implied in quoted prices of traded securities issued by the Group and existing credit derivatives on Group liabilities. The fair value of Other debt that requires significant adjustments using unobservable inputs is categorized within Level 3 of the fair value hierarchy. At December 31, 2017 , €6,796 million and €1,205 million of Other Debt was classified within Level 2 and Level 3, respectively. At December 31, 2016 , €9,424 million and €1,887 million of Other Debt was classified within Level 2 and Level 3, respectively. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party [Abstract] | |
Related party transactions | Related party transactions Pursuant to IAS 24 - Related Party Disclosures , the related parties of the Group are entities and individuals capable of exercising control, joint control or significant influence over the Group and its subsidiaries. Related parties include companies belonging to Exor N.V. (the largest shareholder of FCA through its 29.18 percent common shares shareholding interest and 42.34 percent voting power at December 31, 2017 ), which include Ferrari N.V. and CNHI. Exor N.V. received 73,606,222 of FCA common shares in connection with the conversion of the Mandatory Convertible Securities into FCA common shares on December 16, 2016 (Note 26 , Equity ). Related parties also include associates, joint ventures and unconsolidated subsidiaries of the Group. In addition, members of the FCA Board of Directors, and executives with strategic responsibilities and certain members of their families are also considered related parties. Transactions carried out by the Group with its related parties are on commercial terms that are normal in the respective markets, considering the characteristics of the goods or services involved, and primarily relate to: • the purchase of engines and engine components for Maserati vehicles from Ferrari N.V.; • the sale of automotive lighting and automotive components to Ferrari N.V.; • transactions related to the display of FCA brand names on Ferrari N.V. Formula 1 cars; • the sale of vehicles to the joint ventures Tofas and FCA Bank leasing and renting subsidiaries; • the sale of engines, other components and production systems and the purchase of light commercial vehicles with the joint operation Sevel S.p.A.; • the sale of engines, other components and production systems to companies of CNHI; • the purchase of vehicles, the provision of services and the sale of goods with the joint operation Fiat India Automobiles Private Limited; • the provision of services and the sale of goods to the GAC FCA JV; • the provision of services (accounting, payroll, tax administration, information technology, purchasing and security) to companies of CNHI; and • the purchase of light commercial vehicles and passenger cars from the joint venture Tofas. The most significant financial transactions with related parties generated Receivables from financing activities of the Group’s financial services companies from joint ventures and Asset-backed financing relating to amounts due to FCA Bank for the sale of receivables, which do not qualify for derecognition under IAS 39 – Financial Instruments: Recognition and Measurement . The amounts for significant transactions with related parties recognized in the Consolidated Income Statements were as follows: Years ended December 31 2017 2016 2015 Net Cost of Selling, and costs, net Net Financial Net Cost of Selling, and costs, net Net Financial Net Cost of Selling, and costs, net Net Financial (€ million) Tofas € 1,287 € 2,779 € 9 € — € 1,536 € 2,811 € 3 € — € 1,533 € 1,611 € — € — Sevel S.p.A. 392 — 5 — 381 — 5 — 311 — 4 — FCA Bank 1,715 26 (20 ) 36 1,571 18 (21 ) 39 1,447 14 9 30 GAC FCA JV 569 — (105 ) — 683 — (82 ) — 252 — — — Fiat India Automobiles 25 1 — — 23 1 (1 ) (1 ) 15 4 — — Other 35 2 (4 ) 2 36 5 (3 ) — 29 22 — — Total joint arrangements 4,023 2,808 (115 ) 38 4,230 2,835 (99 ) 38 3,587 1,651 13 30 Total associates 73 52 (3 ) (1 ) 91 47 — — 143 14 6 — CNHI 526 329 2 — 543 422 3 — 564 431 — — Ferrari N.V. 82 320 1 — 81 246 — — n/a n/a n/a n/a Directors and Key Management — — 114 — — — 143 — — — 132 — Other 1 — 26 — — — 26 — — 1 17 — Total CNHI, Ferrari, Directors and other 609 649 143 — 624 668 172 — 564 432 149 — Total unconsolidated 61 8 3 1 57 7 8 1 79 13 8 (1 ) Total transactions with related parties € 4,766 € 3,517 € 28 € 38 € 5,002 € 3,557 € 81 € 39 € 4,373 € 2,110 € 176 € 29 Total for the Group € 110,934 € 93,975 € 7,385 € 1,469 € 111,018 € 95,295 € 7,568 € 2,016 € 110,595 € 97,620 € 7,576 € 2,366 Assets and liabilities from significant transactions with related parties were as follows: At December 31 2017 2016 Trade and other Trade Other Asset- Debt (1) Trade Trade Other Asset- Debt (1) (€ million) Tofas € 34 € 240 € 50 € — € — € 28 € 298 € 52 € — € — Sevel S.p.A. 23 — 6 — 1 33 — 4 — 8 FCA Bank 466 206 199 319 32 201 248 108 169 18 GAC FCA JV 58 15 1 — — 121 2 4 — — Fiat India Automobiles Limited 7 13 5 — — 2 — — — — Other 20 1 — — — 25 4 — — — Total joint arrangements 608 475 261 319 33 410 552 168 169 26 Total associates 36 32 13 — — 30 18 18 — — CNHI 47 86 11 — — 80 82 15 — 4 Ferrari N.V. 23 75 — — — 25 75 — — — Other 1 2 — — — — 2 — — — Total CNHI, Ferrari N.V. and other 71 163 11 — — 105 159 15 — 4 Total unconsolidated subsidiaries 83 8 1 — 28 84 9 1 — 25 Total originating from related parties € 798 € 678 € 286 € 319 € 61 € 629 € 738 € 202 € 169 € 55 Total for the Group € 8,553 € 21,939 € 10,435 € 357 € 17,614 € 7,854 € 22,655 € 11,412 € 410 € 23,638 _________________________ 1) This relates to Debt excluding Asset-backed financing, refer to Note, 21 Debt . Commitments and Guarantees pledged in favor of related parties As of December 31, 2017 , the Group had a take or pay commitment with Tofas with future minimum expected obligations as follows: (€ million) 2018 € 340 2019 € 276 2020 € 269 2021 € 250 2022 € 159 2023 and thereafter € — Compensation to Directors and Key Management The fees of the Directors of the Group for carrying out their respective functions, including those in other consolidated companies, were as follows: Years ended December 31 2017 2016 2015 (€ thousand) Directors (1) € 29,861 € 39,329 € 38,488 Total Compensation € 29,861 € 39,329 € 38,488 ___________________ (1) This amount includes the notional compensation cost arising from long-term share-based compensation granted to the Chief Executive Officer and share-based compensation to non-executive Directors. Refer to Note 18 , Share-based compensation , for information related to the special recognition award granted to the Chief Executive Officer on April 16, 2015 and the PSU and RSU awards granted to certain key employees. The aggregate compensation expense for remaining executives with strategic responsibilities was approximately €81 million for 2017 ( €103 million in 2016 and €65 million in 2015 ), which, in addition to base compensation, includes: • an amount of approximately €49 million in 2017 (approximately €73 million in 2016 and approximately €38 million in 2015 ) for share-based compensation expense; • an amount of approximately €8 million in 2017 (approximately €8 million in 2016 and approximately €8 million in 2015 ) for short-term employee benefits; and • an amount of €9 million in 2017 ( €6 million in 2016 and €3 million in 2015 ) for pension and similar benefits. |
Guarantees granted, commitments
Guarantees granted, commitments and contingent liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Guarantees granted, commitments and contingent liabilities | Guarantees granted, commitments and contingent liabilities Guarantees granted At December 31, 2017, the Group had pledged guarantees on the debt or commitments of third parties totaling €5 million ( €8 million at December 31, 2016), as well as guarantees of €4 million on related party debt ( €2 million at December 31, 2016). SCUSA Private-label financing agreement In February 2013 , FCA US entered into a private-label financing agreement (the “SCUSA Agreement”) with Santander Consumer USA Inc. (“SCUSA”), an affiliate of Banco Santander, which launched on May 1, 2013. Under the SCUSA Agreement, SCUSA provides a wide range of wholesale and retail financing services to FCA US's dealers and consumers in accordance with its usual and customary lending standards, under the Chrysler Capital brand name. The SCUSA Agreement has a ten -year term from February 2013, subject to early termination in certain circumstances, including the failure by a party to comply with certain of its ongoing obligations under the SCUSA Agreement. In accordance with the terms of the agreement, SCUSA provided an upfront, nonrefundable payment of €109 million (U.S. $150 million ) in May 2013, which was recognized as deferred revenue and is amortized over ten years. At December 31, 2017, €67 million (U.S. $80 million ) remained in deferred revenue. From time to time, FCA US works with certain lenders to subsidize interest rates or cash payments at the inception of a financing arrangement to incentivize customers to purchase its vehicles, a practice known as “subvention.” FCA US has provided SCUSA with limited exclusivity rights to participate in specified minimum percentages of certain of its retail financing rate subvention programs. SCUSA has committed to certain revenue sharing arrangements, as well as to consider future revenue sharing opportunities. SCUSA bears the risk of loss on loans contemplated by the SCUSA Agreement. The parties share in any residual gains and losses in respect of consumer leases, subject to specific provisions in the SCUSA Agreement, including limitations on FCA US participation in gains and losses. Other repurchase obligations In accordance with the terms of other wholesale financing arrangements in Mexico, FCA Mexico is required to repurchase dealer inventory financed under these arrangements, upon certain triggering events and with certain exceptions, including in the event of an actual or constructive termination of a dealer’s franchise agreement. These obligations exclude certain vehicles including, but not limited to, vehicles that have been damaged or altered, that are missing equipment or that have excessive mileage or an original invoice date that is more than one year prior to the repurchase date. In December 2015, FCA Mexico entered into a ten -year private label financing agreement with FC Financial, S.A De C.V., Sofom, E.R., Grupo Financiaro Inbursa (“FC Financial”), a wholly owned subsidiary of Banco Inbursa, under which FC Financial provides a wide range of financial wholesale and retail financial services to FCA Mexico's dealers and retail customers under the FCA Financial Mexico brand name. The wholesale repurchase obligation under the new agreement will be limited to wholesale purchases in case of actual or constructive termination of a dealer's franchise agreement. At December 31, 2017 , the maximum potential amount of future payments required to be made in accordance with these wholesale financing arrangements was approximately €285 million ( US$319 million ) and was based on the aggregate repurchase value of eligible vehicles financed through such arrangements in the respective dealer’s stock. If vehicles are required to be repurchased through such arrangements, the total exposure would be reduced to the extent the vehicles can be resold to another dealer. The fair value of the guarantee was less than €0.1 million at December 31, 2017 , which considers both the likelihood that the triggering events will occur and the estimated payment that would be made net of the estimated value of inventory that would be reacquired upon the occurrence of such events. These estimates are based on historical experience. Arrangements with key suppliers From time to time, in the ordinary course of our business, the Group enters into various arrangements with key third party suppliers in order to establish strategic and technological advantages. A limited number of these arrangements contain unconditional purchase obligations to purchase a fixed or minimum quantity of goods and/or services with fixed and determinable price provisions. Future minimum purchase obligations under these arrangements at December 31, 2017 were as follows: (€ million) 2018 € 817 2019 € 583 2020 € 515 2021 € 325 2022 € 198 2023 and thereafter € 53 Operating lease contracts The Group has operating lease contracts for the right to use industrial buildings and equipment with an average term of 10-20 years and 3-5 years , respectively. The following table summarizes the total future minimum lease payments under non-cancellable lease contracts: At December 31, 2017 Due within one year Due between Due between Due Total (€ million) Future minimum lease payments under operating lease agreements € 352 € 457 € 298 € 396 € 1,503 During 2017 , the Group recognized lease payments expense of €341 million ( €339 million in 2016 and €246 million in 2015 ). Other commitments, arrangements and contractual rights UAW Labor Agreement In October 2015, FCA US and the UAW agreed to a new four -year national collective bargaining agreement, which will expire in September 2019. The provisions of the new agreement continue certain opportunities for success-based compensation upon meeting certain quality and financial performance metrics. The agreement closes the pay gap between “Traditional” and “In-progression” employees over an eight -year period and will continue to provide UAW-represented employees with a simplified adjusted profit sharing plan. The adjusted profit sharing plan was effective for the 2016 plan year and is directly aligned with NAFTA profitability. The agreement included lump-sum payments in lieu of further wage increases of primarily U.S. $4,000 for “Traditional” employees and U.S. $3,000 for “In-progression” employees totaling approximately U.S. $141 million ( €127 million ) that was paid to UAW members on November 6, 2015. These payments are being amortized ratably over the four -year labor agreement period. Italian labor agreement In April 2015, a new four -year compensation agreement was signed by FCA companies in Italy within the automobiles business. The new compensation agreement was subsequently included into the new labor agreement and was extended to all FCA companies in Italy on July 7, 2015. The compensation arrangement was effective retrospectively from January 1, 2015 through December 31, 2018 and incentivizes all employees toward achievement of the productivity, quality and profitability targets established in the 2015-2018 period of the 2014-2018 business plan developed in May 2014 by adding two variable additional elements to base pay: • an annual bonus calculated on the basis of production efficiencies achieved and the plant’s World Class Manufacturing audit status; and • a component linked to achievement of the financial targets established in the 2015-2018 period of the 2014-2018 business plan (“Business Plan Bonus”) for the EMEA region, including the activities of the premium brands Alfa Romeo and Maserati. A portion of the Business Plan Bonus is a guaranteed amount based on employees' base salaries and is paid over four years in quarterly installments, while the remaining portion is to be paid in March 2019 to active employees as of December 31, 2018, with at least two years of service during 2015 through 2018. A total of €124 million , €117 million and €115 million was recorded as an expense for the compensation agreement for the years ended December 31, 2017, 2016 and 2015, respectively. Canada labor agreement FCA entered into a new four -year labor agreement with Unifor in Canada that was ratified on October 16, 2016. The terms of this agreement provide a two percent wage increase in the first and fourth years of the agreement for employees hired prior to September 24, 2012 and will continue to close the pay gap for employees hired on or after September 24, 2012 by revising a ten -year progressive pay scale plan. The agreement includes a lump sum payment in lieu of further wage increases of 6,000 Canadian dollars (“CAD$”) per employee totaling approximately CAD $55 million (approximately €38 million ) that was paid to Unifor members on November 4, 2016. These payments will be amortized ratably over the four -year labor agreement period. The new agreement expires September 2020. Sevel S.p.A. As part of the Sevel cooperation agreement with Peugeot-Citroen SA (“PSA”), the Group was party to a call agreement with PSA whereby, from July 1, 2017 to September 30, 2017, the Group would have the right to acquire the residual interest in the joint operation Sevel with effect from December 31, 2017. During the period specified in the agreement the Group did not exercise its right to acquire the residual interest in the joint operation Sevel and such right expired. Contingent liabilities In connection with significant asset divestitures carried out in prior years, the Group provided indemnities to purchasers with the maximum amount of potential liability under these contracts generally capped at a percentage of the purchase price. These liabilities refer principally to potential liabilities arising from possible breaches of representations and warranties provided in the contracts and, in certain instances, environmental or tax matters, generally for a limited period of time. Potential obligations with respect to these indemnities were approximately €170 million and a total of €50 million has been recognized within Provisions related to these obligations as of December 31, 2017 and 2016. The Group has provided certain other indemnifications that do not limit potential payment and as such, it was not possible to estimate the maximum amount of potential future payments that could result from claims made under these indemnities. Takata airbag inflators On November 3, 2015, NHTSA issued the Takata Consent Order regarding Takata airbag inflators manufactured using non-desiccated Phase Stabilized Ammonium Nitrate (“PSAN”) that were installed in original equipment manufacturers' vehicles. On May 4, 2016, NHTSA published an amendment to the original Takata Consent Order which expanded the scope of the original consent order to include 7.6 million additional units of non-desiccated PSAN airbag inflators, of which approximately 2 million inflator units were deferred and not yet subject to recall. In compliance with the amendment to the Takata Consent Order, on May 16, 2016, Takata submitted a Defect and Noncompliance Information Report (“DIR”) to NHTSA declaring the non-desiccated PSAN airbag inflators defective. As a result, FCA US announced a recall of vehicles, assembled in NAFTA, related to the May 16, 2016 DIR, which represented approximately 5.6 million inflator units. Considering the estimated cost of the recall and the estimated participation rate of the recalls taking into account the age of the vehicles involved, we recognized €414 million within Cost of revenues for the year ended December 31, 2016. The charges reflected our assumptions on participation rate based on the Group's historical experience and industry data. On January 2, 2018, Takata submitted a DIR to NHTSA declaring certain non-desiccated PSAN inflators contained in certain vehicles to be defective. As a result of Takata’s DIR, on January 9, 2018, FCA US submitted a DIR to NHTSA indicating that approximately 0.4 million units of the approximately 2 million inflator units that were deferred are now subject to recall. In accordance with IAS 10, Subsequent Events , and using the same assumptions based on our historical experience and industry data for the estimated participation rates taking into account the age of the vehicles involved, we recognized an additional provision of approximately €29 million within Cost of revenues for the year ended December 31, 2017. The remaining 1.6 million inflator units remain deferred and not yet subject to recall. As such, no costs have been accrued. We do not anticipate the cost associated with any potential recall would be material to the Group. In December 2017, FCA started to inform the authorities in LATAM that preventative safety campaigns will be launched for certain non-desiccated PSAN inflators manufactured by Takata. Considering the estimated cost of the preventative safety campaign and the estimated participation rates, which take into account the age of the vehicles involved, a provision of €73 million has been recognized at December 31, 2017. If our actual experience differs from our historical experience or industry data, this could result in an adjustment to the Takata warranty provision in the future. We continue to assess the condition and performance of airbag inflators supplied by Takata. While there have not been any known issues relating to the unrecalled units, as additional information, data and analysis become available and we continue discussions with our regulators, the number of inflator units that may become subject to recalls could be expanded. Any liability for the estimated cost for future recalls would be recognized in the period in which a recall becomes probable. Emissions Matters We have received inquiries from several regulatory authorities as they examine the on-road tailpipe emissions of several automakers’ vehicles. We are, when jurisdictionally appropriate, cooperating with a number of governmental agencies and authorities. In particular, in Europe, we have been working with the Italian Ministry of Transport (“MIT”) and the Dutch Vehicle Regulator (“RDW”), the authorities that certified FCA diesel vehicles for sale in the European Union, and the UK Driver and Vehicle Standards Agency (“DVSA”). We also initially responded to inquiries from the German authority, the Kraftfahrt-Bundesamt (“KBA”), regarding emissions test results for our vehicles reported by KBA, and we discussed the KBA reported test results, our emission control calibrations and the features of the vehicles in question. After these initial discussions, the MIT, which has sole authority for regulatory compliance of the vehicles it has certified, asserted its exclusive jurisdiction over the matters raised by the KBA, tested the vehicles, determined that the vehicles complied with applicable European regulations and informed the KBA of its determination. Thereafter, mediations have been held under European Commission (“EC”) rules, between the MIT and the German Ministry of Transport and Digital Infrastructure (“BMVI”), which oversees the KBA, in an effort to resolve their differences. The mediation was concluded with no action being taken with respect to FCA. In May 2017, the EC announced its intention to open an infringement procedure against Italy regarding Italy's alleged failure to respond to EC's concerns regarding certain FCA emission control calibrations. The MIT has responded to the EC's allegations by confirming that the vehicles' approval process was correctly performed, which was borne out in material Italy provided during the mediation process. In addition, at the request of the French Consumer Protection Agency, the French public prosecutor has been investigating diesel vehicles of a number of automakers including FCA, regarding whether the sale of those vehicles violated French consumer protection laws. The results of these inquiries cannot be predicted at this time; however, the intervention by a number of governmental agencies and authorities has required significant management time, which may divert attention from other key aspects of our business plan, or may lead to further enforcement actions as well as penalties or obligations to modify or recall vehicles, any of which may have a material adverse effect on our business, results of operations and reputation. On January 12, 2017, the U.S. Environmental Protection Agency (“EPA”) and the California Air Resources Board issued Notices of Violation related to certain software-based features in the emissions control systems in approximately 100,000 2014-2016 model year light-duty Ram 1500 and Jeep Grand Cherokee diesel vehicles. On May 23, 2017, the Environmental and Natural Resources Division of the U.S. Department of Justice (“DOJ-ENRD”) filed a civil lawsuit against us in connection with the concerns raised by the EPA. The complaint alleges that software-based features were not disclosed to the EPA as required during the vehicle emissions certification process, resulting in violations of the Clean Air Act. The complaint also alleges that certain of the software features bypass, defeat or render inoperative the vehicles’ emission control systems, causing the vehicles to emit higher levels of oxides of nitrogen (NOx) during certain normal real world driving conditions than during federal emissions tests. A number of private lawsuits relating to the vehicles have been filed in U.S. state and federal courts principally on behalf of consumers asserting fraud, violation of consumer protection laws, and other civil claims, including a putative class action that is proceeding in U.S. federal court in the Northern District of California. A number of other governmental agencies and authorities, including the U.S. Department of Justice, the U.S. Securities and Exchange Commission and various states Attorneys General have commenced related investigations. We have been working with the EPA and the CARB to clarify issues related to the Company’s emissions control systems technology and announced in May that we had developed updated emissions software calibrations for our model year 2017 light-duty Ram 1500 and Jeep Grand Cherokee diesel vehicles that we believe address the agencies’ concerns. Following this, we continued to work with the agencies on vehicle testing and refinements to these calibrations. The 2017 model year updates include modified emissions software calibrations, with no required hardware changes, and we believe that the modifications do not negatively impact the fuel efficiency or performance of the vehicles. In July 2017, we received vehicle emissions certifications from CARB and the EPA permitting the production and sale of our 2017 model year light-duty Ram 1500 and Jeep Grand Cherokee diesel vehicles in all 50 states. We continue to work with the EPA and CARB to seek their permission to use these modified emissions software calibrations to update the emissions control systems in our 2014-2016 model year light-duty Ram 1500 and Jeep Grand Cherokee diesel vehicles. We are unable to predict the outcome of these investigations and litigation at this stage and due to the range of possible outcomes, we are unable to reliably estimate a range of probable losses. It is possible that the resolution of these matters may adversely affect our reputation with consumers, which may negatively impact demand for our vehicles and could have a material adverse effect on our business, financial condition and results of operations. National Training Center In connection with an on-going government investigation into matters at the UAW-Chrysler National Training Center, the U.S. Department of Justice has brought charges against a number of individuals including former FCA US employees and individuals associated with the UAW for, among other things, tax fraud and conspiring to provide money or other things of value to a UAW officer and UAW employees while acting in the interests of FCA US, in violation of the Labor Management Relations (Taft-Hartley) Act. We continue to cooperate with this investigation. Several putative class action lawsuits have been filed against FCA US in U.S. federal court alleging harm to UAW workers as a result of these acts. At this early stage, we are unable to reliably evaluate the likelihood that a loss will be incurred or estimate a range of possible loss. Sales Reporting On July 18, 2016, we confirmed that the U.S. Securities and Exchange Commission had commenced an investigation into our reporting of vehicle unit sales to end customers in the U.S. and that inquiries into similar issues have been received from the U.S. Department of Justice. These vehicle unit sales reports relate to unit sales volumes primarily by dealers to consumers while we generally recognize revenues based on shipments to dealers and other customers and not on vehicle unit sales to consumers. We continue to cooperate with these investigations; however their outcome is uncertain and cannot be predicted at this time. At this stage, we are unable to reliably evaluate the likelihood that a loss will be incurred or estimate a range of possible loss. We are also aware of two putative securities class action lawsuits pending against us in the U.S. District Court for the Eastern District of Michigan making allegations with regard to our reporting of vehicle unit sales to end consumers in the U.S. At this early stage, we are unable to reliably evaluate the likelihood that a loss will be incurred or estimate a range of possible loss. Safety Recalls On September 11, 2015, a putative securities class action complaint was filed in the U.S. District Court for the Southern District of New York against us alleging material misstatements regarding our compliance with regulatory requirements and that we failed to timely disclose certain expenses relating to our vehicle recall campaigns. On October 5, 2016, the district court dismissed the claims relating to the disclosure of vehicle recall campaign expenses but ruled that claims regarding the alleged misstatements regarding regulatory requirements would be allowed to proceed. On February 17, 2017, the plaintiffs amended their complaint to allege material misstatements regarding emissions compliance. On November 13, 2017, the Court denied our motion to dismiss the emissions-related claims. At this stage of the proceedings, we are unable to reliably evaluate the likelihood that a loss will be incurred or estimate a range of possible loss. Rear Impact Litigation On July 9, 2012, a lawsuit was filed against FCA US in the Superior Court of Decatur County, Georgia, U.S. (the “Court”), with respect to a March 2012 fatality in a rear-impact collision involving a 1999 Jeep Grand Cherokee. Plaintiffs alleged that the manufacturer had acted in a reckless and wanton fashion when it designed and sold the vehicle due to the placement of the fuel tank behind the rear axle and had breached a duty to warn of the alleged danger. On April 2, 2015, a jury found in favor of the plaintiffs and the trial court entered a judgment against FCA US in the amount of U.S.$ 148.5 million (€ 141 million ). On July 24, 2015, the Court issued a remittitur reducing the judgment against FCA US to U.S.$ 40 million (€ 38 million ). FCA US believes the jury verdict was not supported by the evidence or the law and appealed the Court’s verdict. FCA US maintains that the 1999 Jeep Grand Cherokee is not defective, and its fuel system does not pose an unreasonable risk to motor vehicle safety. The vehicle met or exceeded all applicable Federal Motor Vehicle Safety Standards, including the standard governing fuel system integrity. Furthermore, FCA US submitted extensive data to NHTSA validating that the vehicle performs as well as, or better than, peer vehicles in impact studies, and nothing revealed in the trial altered this data. During the trial, however, FCA US was not allowed to introduce all the data previously provided to NHTSA, which demonstrated that the vehicle’s fuel system is not defective. On November 15, 2016, the Georgia Court of Appeals affirmed the Court’s verdict and judgment of U.S.$ 40 million (€ 38 million ). On December 23, 2016, FCA US filed a petition with the Georgia Supreme Court. Oral arguments were held on October 24, 2017. While a decision by the Georgia Supreme Court could affirm the judgment, FCA US is seeking an order from the Georgia Supreme Court to instead overturn the verdict, order a new trial, or further modify the amount of the judgment. We do not believe a loss, if any, will exceed the amount of the current judgment and believe it is more likely that a loss, if any, will be less than the current judgment and will be covered by our existing provisions. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Equity | Equity Share capital At December 31, 2017 , the authorized share capital of FCA is forty million Euro ( €40,000,000 ), divided into two billion ( 2,000,000,000 ) FCA common shares, nominal value of one Euro cent ( €0.01 ) per share and two billion ( 2,000,000,000 ) special voting shares, nominal value of one Euro cent ( €0.01 ) per share. At December 31, 2017 , fully paid-up share capital of FCA amounted to € 19 million (€ 19 million at December 31, 2016 ) and consisted of 1,540,089,690 common shares and of 408,941,767 s pecial voting shares, all with a par value of €0.01 each ( 1,527,965,719 common shares and 408,941,767 special voting shares, all with a par value of €0.01 each at December 31, 2016 ). The following table summarizes the changes in the number of outstanding common shares and special voting shares of FCA during the year ended December 31, 2017: Common Shares Special Voting Shares Total Balance at January 1, 2017 1,527,965,719 408,941,767 1,936,907,486 Shares issued to Executive Directors (Directors' Compensation) 2,795,500 — 2,795,500 Shares issued to Non-Executive Directors (Directors' Compensation) 54,855 — 54,855 Shares issued to Key management 9,273,616 — 9,273,616 Balance at December 31, 2017 1,540,089,690 408,941,767 1,949,031,457 On October 29, 2014, the Board of Directors of FCA resolved to authorize the issuance of up to a maximum of 90,000,000 common shares under the equity incentive plan and the long term incentive program, which had been adopted before the closing of the Merger and under which equity awards can be granted to eligible individuals. Any issuance of shares during the period from 2014 to 2018 are subject to the satisfaction of certain performance/retention requirements and any issuances to directors are subject to FCA shareholders' approval (refer to Note 18 , Share-based compensation ). Mandatory Convertible Securities On December 15, 2016, each U.S. $100 notional amount of the Mandatory Convertible Securities that had been issued in December 2014 was converted to 8.3077 of FCA's common shares based upon the average volume weighted average prices of FCA common shares on the New York Stock Exchange during the 20 consecutive trading day period beginning November 14, 2016 and ending on December 12, 2016 (inclusive), which resulted in the issuance of total of 238,846,375 FCA common shares. Other reserves: Other reserves comprised the following: • a legal reserve of €11,594 million at December 31, 2017 ( €10,866 million at December 31, 2016 ) that was determined in accordance to the Dutch law and mainly relates to development expenditures capitalized by subsidiaries and their earnings subject to certain restrictions on distributions to FCA; • capital reserves of €5,817 million at December 31, 2017 ( €5,766 million at December 31, 2016 ); • retained earnings, that after the separation of the legal reserve was negative €333 million (negative €1,356 million at December 31, 2016 ); and • profit attributable to owners of the parent of € 3,491 million for the year ended December 31, 2017 (€ 1,803 million for the year ended December 31, 2016 ). Other comprehensive income Other comprehensive income was as follows: Years ended December 31 2017 2016 2015 (€ million) Items that will not be reclassified to the Consolidated Income Statement in subsequent periods: (Losses)/gains on re-measurement of defined benefit plans € (64 ) € 584 € 679 Share of gains/(losses) on re-measurement of defined benefit plans for equity method investees 2 (5 ) (2 ) Items relating to discontinued operations — — 4 Total Items that will not be reclassified to the Consolidated Income Statement (B1) (62 ) 579 681 Items that may be reclassified to the Consolidated Income Statement in subsequent periods: Gains/(losses) on cash flow hedging instruments arising during the period 66 (54 ) 63 Gains/(losses) on cash flow hedging instruments reclassified to the Consolidated Income Statement 81 (195 ) 123 Total Gains/(losses) on cash flow hedging instruments 147 (249 ) 186 Gains on available-for-sale financial assets 14 15 11 Exchange (losses)/gains on translating foreign operations (1,942 ) 458 1,002 Share of Other comprehensive income/(loss) for equity method investees arising during the period (94 ) (97 ) (18 ) Share of Other comprehensive income/(loss) for equity method investees reclassified to the Consolidated Income Statement (27 ) (25 ) 1 Total Share of Other comprehensive (loss)/income for equity method investees (121 ) (122 ) (17 ) Items relating to discontinued operations — — 21 Total Items that may be reclassified to the Consolidated Income Statement (B2) (1,902 ) 102 1,203 Total Other comprehensive income (B1)+(B2)=(B) (1,964 ) 681 1,884 Tax effect (31 ) (192 ) (249 ) Tax effect - discontinued operations — — (4 ) Total Other comprehensive income, net of tax € (1,995 ) € 489 € 1,631 Gains and losses arising from the re-measurement of defined benefit plans mainly include actuarial gains and losses arising during the period, the return on plan assets (net of interest income recognized in the Consolidated Income Statement) and any changes in the effect of the asset ceiling. These gains and losses are offset against the related defined benefit plan's net liabilities or assets (Note 19 , Employee benefits liabilities ). The following table summarizes the tax effect relating to Other comprehensive income: Years ended December 31 2017 2016 2015 Pre-tax Tax Net Pre-tax Tax Net Pre-tax Tax Net (€ million) (Losses)/gains on € (64 ) € (21 ) € (85 ) € 584 € (261 ) € 323 € 679 € (201 ) € 478 Gains/(Losses) on cash flow 147 (10 ) 137 (249 ) 69 (180 ) 186 (48 ) 138 Gains on available- 14 — 14 15 — 15 11 — 11 Exchange (losses)/gains on (1,942 ) — (1,942 ) 458 — 458 1,002 — 1,002 Share of Other comprehensive income/(loss) for equity method investees (119 ) — (119 ) (127 ) — (127 ) (19 ) — (19 ) Items relating to discontinued operations — — — — — — 25 (4 ) 21 Total Other comprehensive € (1,964 ) € (31 ) € (1,995 ) € 681 € (192 ) € 489 € 1,884 € (253 ) € 1,631 Policies and processes for managing capital The objectives identified by the Group for managing capital are to create value for shareholders as a whole, safeguard business continuity and support the growth of the Group. As a result, the Group endeavors to maintain an adequate level of capital that at the same time enables it to obtain a satisfactory economic return for its shareholders and guarantee economic access to external sources of funds, including by means of achieving an adequate credit rating. The Group constantly monitors the ratio between debt and equity, particularly the level of net debt and the generation of cash from its industrial activities. In order to reach these objectives, the Group continues to aim for improvement in the profitability of its operations. Furthermore, the Group may sell part of its assets to reduce the level of its debt, while the Board of Directors may make proposals to FCA shareholders at a general meeting of FCA shareholders to reduce or increase share capital or, where permitted by law, to distribute reserves. The Group may also make purchases of treasury shares, without exceeding the limits authorized at a general meeting of FCA shareholders, under the same logic of creating value, compatible with the objectives of achieving financial equilibrium and an improvement in the Group's rating. For 2017 , the Board of Directors has not recommended a dividend payment on FCA common shares in order to further fund capital requirements of the Group’s business plan. The FCA loyalty voting structure The purpose of the loyalty voting structure is to reward long-term ownership of FCA common shares and to promote stability of the FCA shareholder base by granting long-term FCA shareholders with special voting shares to which one voting right is attached in addition to the one granted by each FCA common share that they hold. In connection with the Merger, FCA issued 408,941,767 special voting shares, with a nominal value of €0.01 each, to those eligible shareholders of Fiat who had elected to participate in the loyalty voting structure upon completion of the Merger in addition to FCA common shares. In addition, an FCA shareholder may at any time elect to participate in the loyalty voting structure by requesting that FCA register all or some of the number of FCA common shares held by such FCA shareholder in the Loyalty Register. Only a minimal dividend accrues to the special voting shares allocated to a separate special dividend reserve, and they shall not carry any entitlement to any other reserve of FCA. Having only immaterial economic entitlements, the special voting shares do not impact earnings per share. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share [abstract] | |
Earnings per share | Earnings per share Basic earnings per share The basic earnings per share for the years ended December 31, 2017 , 2016 and 2015 was determined by dividing the Net profit attributable to the equity holders of the parent by the weighted average number of shares outstanding during each period. For the years ended December 31, 2017 and 2016, the weighted average number of shares outstanding included 238,846,375 shares from the conversion of the Mandatory Convertible Securities into FCA common shares in December 2016 (Note 26 , Equity ). For the year ended December 31, 2015, the weighted average number of shares outstanding was increased to include the minimum number of ordinary shares that would arise on conversion of the Mandatory Convertible Securities. The following tables provide the amounts used in the calculation of basic earnings per share: Years ended December 31 2017 2016 2015 Net profit attributable to owners of the parent million € 3,491 € 1,803 € 334 Weighted average number of shares outstanding thousand 1,535,988 1,513,019 1,510,555 Basic earnings per share € € 2.27 € 1.19 € 0.22 Years ended December 31 2017 2016 2015 Net profit from continuing operations attributable to owners of the parent million € 3,491 € 1,803 € 83 Weighted average number of shares outstanding thousand 1,535,988 1,513,019 1,510,555 Basic earnings per share from continuing operations € € 2.27 € 1.19 € 0.05 Years ended December 31 2017 2016 2015 Net profit from discontinued operations attributable to owners of the parent million € — € — € 251 Weighted average number of shares outstanding thousand 1,535,988 1,513,019 1,510,555 Basic earnings per share from discontinued operations € € — € — € 0.17 Diluted earnings per share In order to calculate the diluted earnings per share, the weighted average number of shares outstanding was increased to take into consideration the theoretical effect of potential common shares that would be issued for the restricted and performance share units outstanding and unvested at December 31, 2017, 2016 and 2015 (Note 18 , Share-based compensation ), as determined using the treasury stock method. For the year ended December 31, 2015, the weighted average number of shares outstanding was also increased to take into consideration the theoretical effect that would arise if the shares related to the Mandatory Convertible Securities (Note 26 , Equity ) were issued. Based on FCA's share price at December 31, 2015, the minimum number of shares would have been issued had the Mandatory Convertible Securities been converted and, as such, there was no difference between the basic and diluted earnings per share for the year ended December 31, 2015 in respect of the Mandatory Convertible Securities. For the year ended December 31, 2017, the theoretical effect that would arise if some of the PSU NI awards granted in 2015 and 2016 and some of the RSU awards granted in 2017 (refer to Note 18 - Share-based compensation ) were exercised was not taken into consideration in the calculation of diluted earnings per share as this would have had an anti-dilutive effect. There were no instruments excluded from the calculation of diluted earnings per share because of an anti-dilutive impact for the years ended December 31, 2016 and 2015. The following tables provide the amounts used in the calculation of diluted earnings per share: Years ended December 31 2017 2016 2015 Net profit attributable to owners of the parent million € 3,491 € 1,803 € 334 Weighted average number of shares outstanding thousand 1,535,988 1,513,019 1,510,555 Number of shares deployable for share-based compensation thousand 20,318 13,357 3,452 Weighted average number of shares outstanding for diluted earnings per share thousand 1,556,306 1,526,376 1,514,007 Diluted earnings per share € € 2.24 € 1.18 € 0.22 Years ended December 31 2017 2016 2015 Net profit from continuing operations attributable to owners of the parent million € 3,491 € 1,803 € 83 Weighted average number of shares outstanding for diluted earnings per share thousand 1,556,306 1,526,376 1,514,007 Diluted earnings per share from continuing operations € € 2.24 € 1.18 € 0.05 Years ended December 31 2017 2016 2015 Net profit from discontinued operations attributable to owners of the parent million € — € — € 251 Weighted average number of shares outstanding for diluted earnings per share thousand 1,556,306 1,526,376 1,514,007 Diluted earnings per share from discontinued operations € € — € — € 0.17 |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2017 | |
Operating segments [Abstract] | |
Segment reporting | Segment reporting Reportable segments reflect the operating segments of the Group that are regularly reviewed by the Chief Executive Officer (the “chief operating decision maker” as defined under IFRS 8 – Operating Segments) for making strategic decisions, allocating resources and assessing performance and that exceed the quantitative thresholds provided in IFRS 8 – Operating Segments, or whose information is considered useful for the users of the financial statements. The Group's reportable segments include four regional mass-market vehicle operating segments (NAFTA, LATAM, APAC and EMEA), the Maserati global luxury brand operating segment and a global Components operating segment, which are described as follows: • NAFTA designs, engineers, develops, manufactures and distributes vehicles. NAFTA mainly earns its revenues from the sale of vehicles under the Chrysler, Jeep, Dodge, Ram, Fiat and Alfa Romeo brand names and from sales of the related parts and accessories in the United States, Canada, Mexico and Caribbean islands. • LATAM designs, engineers, develops, manufactures and distributes vehicles. LATAM mainly earns its revenues from the sale of passenger cars and light commercial vehicles and related spare parts under the Fiat and Jeep brand names in South and Central America as well as from the distribution of the Chrysler, Dodge and Ram brand cars in the same region. In addition, the segment provides financial services to the dealer network in Brazil and to retail customers in Argentina. • APAC mainly earns its revenues from the distribution and sale of cars and related spare parts under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat and Jeep brands mostly in China, Japan, Australia, South Korea and India. These activities are carried out through both subsidiaries and joint ventures. In addition, the segment provides financial services to the dealer network and retail customers in China. • EMEA designs, engineers, develops, manufactures and distributes vehicles. EMEA mainly earns its revenues from the sale of passenger cars and light commercial vehicles under the Fiat, Alfa Romeo, Lancia, Abarth, Jeep and Fiat Professional brand names, the sale of the related spare parts in Europe, Middle East and Africa, and from the distribution of the Chrysler, Dodge and Ram brand vehicles in these areas. In addition, the segment provides financial services related to the sale of cars and light commercial vehicles in Europe, primarily through the FCA Bank joint venture and Fidis S.p.A., a fully owned captive finance company that is mainly involved in the factoring business. • Maserati designs, engineers, develops, manufactures and distributes vehicles. Maserati earns its revenues from the sale of luxury vehicles under the Maserati brand. • Components earns its revenues from the production and sale of lighting components, body control units, suspensions, shock absorbers, electronic systems, exhaust systems and plastic molding components. In addition, the segment earns revenues with its spare parts distribution activities carried out under the Magneti Marelli brand name, cast iron components for engines, gearboxes, transmissions and suspension systems and aluminum cylinder heads (Teksid), in addition to the design and production of industrial automation systems and related products for the automotive industry (Comau). Transactions among the mass-market vehicle segments generally are presented on a “where-sold” basis, which reflects the profit/(loss) on the ultimate sale to third party customer within the segment. This presentation generally eliminates the effect of the legal entity transfer price within the segments. Revenues of the other segments, aside from the mass-market vehicle segments, are those directly generated by or attributable to the segment as the result of its usual business activities and include revenues from transactions with third parties as well as those arising from transactions with segments, recognized at normal market prices. Other activities include the results of the activities and businesses that are not operating segments under IFRS 8 – Operating Segments. In addition, Unallocated items and eliminations include consolidation adjustments, eliminations, as well as costs related to the launch of the Alfa Romeo Giulia platform which were not allocated to the mass-market vehicle segments due to the limited number of shipments. Financial income and expenses and income taxes are not attributable to the performance of the segments as they do not fall under the scope of their operational responsibilities. Adjusted Earnings Before Interest and Taxes (“Adjusted EBIT”) is the measure used by the chief operating decision maker to assess performance, allocate resources to the Group's operating segments and to view operating trends, perform analytical comparisons and benchmark performance between periods and among the segments. Adjusted EBIT excludes certain adjustments from Net profit from continuing operations including gains/(losses) on the disposal of investments, restructuring, impairments, asset write-offs and unusual income/(expenses) that are considered rare or discrete events that are infrequent in nature, and also excludes Net financial expenses and Tax expense/(benefit). See below for a reconciliation of Net profit from continuing operations, which is the most directly comparable measure included in our Consolidated Income Statement, to Adjusted EBIT. Operating assets are not included in the data reviewed by the chief operating decision maker, and as a result and as permitted by IFRS 8 – Operating Segments , the related information is not provided. The following tables summarize selected financial information by segment for the years ended December 31, 2017 , 2016 and 2015 : Mass-Market Vehicles 2017 NAFTA LATAM APAC EMEA Maserati Components Other activities Unallocated items & eliminations FCA (€ million) Revenues € 66,094 € 8,004 € 3,250 € 22,700 € 4,058 € 10,115 € 727 € (4,014 ) € 110,934 Revenues from transactions with other segments (47 ) (15 ) (32 ) (140 ) (21 ) (3,323 ) (436 ) 4,014 — Revenues from third party customers € 66,047 € 7,989 € 3,218 € 22,560 € 4,037 € 6,792 € 291 € — € 110,934 Net profit from continuing operations € 3,510 Tax expense € 2,651 Net financial expenses € 1,469 Adjustments: Reversal of a Brazilian indirect tax liability (1) € € € € € € € € € (895 ) Impairment expense (2) € € 77 € € 142 € € 10 € € € 229 Recall campaigns - airbag inflators (3) € 29 € 73 € € € € € € € 102 Restructuring costs/(reversal) (4) € (1 ) € 75 € € € € 20 € € 1 € 95 Resolution of certain Components legal matters € € € € € € 43 € € € 43 Deconsolidation of Venezuela (5) € € 42 € — € — € — € — € — € — € 42 NAFTA capacity realignment (6) € (38 ) € € € € € € € € (38 ) Tianjin (China) port explosions insurance recoveries (7) € € € (68 ) € € € € € € (68 ) Gains on disposal of investments (8) € € € € € € (27 ) € € (49 ) € (76 ) Other € (1 ) € — € 1 € — € — € (11 ) € — € 1 € (10 ) Adjusted EBIT € 5,227 € 151 € 172 € 735 € 560 € 536 € (189 ) € (138 ) € 7,054 Share of profit of equity method investees € € € 75 € 306 € € 14 € 13 € 1 € 409 _________________________ 1) As this liability related to the Group’s Brazilian operations in multiple segments, it was not attributed to the results of the related segments; 2) Impairment expense in EMEA relates to changes in global product portfolio. Impairment expense in LATAM relates to product portfolio changes and the impairment of certain real estate assets in Venezuela, in the second quarter of 2017 due to the continued deterioration of the economic conditions; (3) Refer to Note 20 , Provisions and Note 25 , Guarantees granted, commitments and contingent liabilities . (4) Primarily related to workforce restructuring costs related to LATAM; (5) Refer to Note 3 , Scope of consolidation ; (6) Income related to adjustments to reserves for the NAFTA capacity realignment plan; (7) Insurance recoveries related to losses incurred in connection with the explosions at the Port of Tianjin (China) in August 2015 are excluded from Adjusted EBIT to the extent the insured loss to which the recovery relates was excluded from Adjusted EBIT. Insurance recoveries are included in Adjusted EBIT to the extent they relate to costs, increased incentives or business interruption losses that were included in Adjusted EBIT; (8) Refer to Note 3 , Scope of consolidation . Mass-Market Vehicles 2016 NAFTA LATAM APAC EMEA Maserati Components Other activities Unallocated items & eliminations FCA (€ million) Revenues € 69,094 € 6,197 € 3,662 € 21,860 € 3,479 € 9,659 € 779 € (3,712 ) € 111,018 Revenues from transactions with other segments (40 ) (42 ) (24 ) (148 ) (10 ) (3,030 ) (418 ) 3,712 — Revenues from third party customers € 69,054 € 6,155 € 3,638 € 21,712 € 3,469 € 6,629 € 361 € — € 111,018 Net profit from continuing operations € 1,814 Tax expense € 1,292 Net financial expenses € 2,016 Adjustments: Recall campaigns - airbag inflators (1) € 414 € € € € € € € € 414 Costs for recall, net of supplier recoveries - contested with supplier (2) € 132 € € € € € € € € 132 NAFTA capacity realignment (3) € 156 € € € € € € € € 156 Tianjin (China) port explosions, net of insurance recoveries (4) € € € (55 ) € € € € € € (55 ) Currency devaluation € € 19 € € € € € € € 19 Restructuring costs/(reversal) (5) € (10 ) € 68 € € 5 € € 25 € € € 88 Impairment expense (6) € € 52 € 109 € 7 € € 49 € 8 € € 225 Gains on disposal of investments € € € € € € (8 ) € (5 ) € € (13 ) Other € (25 ) € 3 € (10 ) € € € € € € (32 ) Adjusted EBIT € 5,133 € 5 € 105 € 540 € 339 € 445 € (244 ) € (267 ) € 6,056 Share of profit of equity method investees € 2 € — € 30 € 272 € — € 6 € 2 € 1 € 313 ________________________ (1) Refer to Note 20 , Provisions and Note 25 , Guarantees granted, commitments and contingent liabilities ; (2) Refer to Note 20 , Provisions ; (3) Refer to Note 5 , Research and development costs and Note 11 , Property plant and equipment ; (4) Insurance recoveries related to losses incurred in connection with the explosions at the Port of Tianjin (China) in August 2015 are excluded from Adjusted EBIT to the extent the insured loss to which the recovery relates was excluded from Adjusted EBIT. Insurance recoveries are included in Adjusted EBIT to the extent they relate to costs, increased incentives or business interruption losses that were included in Adjusted EBIT. Through December 31, 2016, no significant insurance recoveries related to Tianjin have been recognized in Adjusted EBIT; (5) Restructuring costs within LATAM and Components primarily relate to cost reduction initiatives to right-size to market volume in Brazil; (6) Refer to Note 5 , Research and development costs . and Note 11 , Property plant and equipment . Mass-Market Vehicles 2015 NAFTA LATAM APAC EMEA Maserati Components Other activities Unallocated items & eliminations FCA (€ million) Revenues € 69,992 € 6,431 € 4,885 € 20,350 € 2,411 € 9,770 € 844 € (4,088 ) € 110,595 Revenues from transactions with other segments (1 ) (194 ) (25 ) (304 ) (13 ) (3,095 ) (456 ) 4,088 — Revenues from third party customers € 69,991 € 6,237 € 4,860 € 20,046 € 2,398 € 6,675 € 388 € — € 110,595 Net profit from continuing operations € 93 Tax expense € 166 Net financial expenses € 2,366 Adjustments: Change in estimate for future recall campaign costs (1) € 761 € € € € € € € € 761 Tianjin (China) port explosions (2) € € € 142 € € € € € € 142 NAFTA capacity realignment (3) € 834 € € € € € € € € 834 Currency devaluations (4) € € 163 € € € € € € € 163 NHTSA Consent Order and amendment (5) € 144 € € € € € € € € 144 Impairment expense € € 16 € 22 € 46 € 3 € 20 € € 11 € 118 Restructuring costs/(reversal) € (11 ) € 40 € € € € 23 € 2 € (1 ) € 53 Other € (97 ) € € 41 € 1 € € 8 € (1 ) € 2 € (46 ) Adjusted EBIT € 4,450 € (87 ) € 52 € 213 € 105 € 395 € (150 ) € (184 ) € 4,794 Share of profit of equity method investees € 3 € — € (78 ) € 219 € — € (2 ) € (12 ) € — € 130 _________________________ (1) Amount represents the change in estimate for estimated future recall campaign costs for the U.S. and Canada recognized within Cost of revenues - refer to Note 20 , Provisions ; (2) Amount relates to the write-down of inventory ( €53 million ) and incremental incentives ( €89 million ) for vehicles affected by the explosions at the Port of Tianjin in August 2015; (3) Amount represents costs from implementation of plan to realign existing NAFTA capacity - comprised of €422 million for asset impairments, €236 million for payment of supplemental unemployment benefits due to extended downtime at certain plants and €176 million for write off of capitalized development expenditures with no future benefit; (4) €80 million was due to adoption of SIMADI exchange rate at June 30, 2015 (refer to Note 3 , Scope of consolidation , and €83 million was due to the devaluation of the Argentinian Peso resulting from changes in monetary policy; (5) Refer to Note 20 , Provisions . Information about geographical area The following table summarizes the non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) attributed to certain geographic areas: At December 31 2017 2016 (€ million) North America € 34,099 € 35,833 Italy 12,458 12,558 Brazil 5,137 6,310 Poland 1,151 1,117 Serbia 639 660 Other countries 2,536 2,582 Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) € 56,020 € 59,060 |
Explanatory notes to the consol
Explanatory notes to the consolidated statements of cash flows | 12 Months Ended |
Dec. 31, 2017 | |
Statement of cash flows [abstract] | |
Explanatory notes to the Consolidated Statement of Cash Flows | Explanatory notes to the Consolidated Statement of Cash Flows Non-cash items For the year ended December 31, 2017 , Other non-cash items of € (199) million primarily € 406 million related to the revaluation of investments accounted for by using the equity method, partially offset by €229 million of impairments and other amounts that were not individually material. For the year ended December 31, 2016 , Other non-cash items of € 111 million primarily included € 225 million of impairments, which were partially offset by other amounts that were not individually material. For the year ended December 31, 2015 , Other non-cash items of € 812 million primarily included (i) €713 million non-cash charges for impairments which primarily related to asset impairments in connection with the realignment of the Group's manufacturing capacity in NAFTA to better meet market demand and (ii) € 80 million charge recognized as a result of the adoption of the SIMADI exchange rate to re-measure the net monetary assets of the Group’s Venezuelan subsidiary in U.S. Dollar (as described in Note 3 . Scope of consolidation ) (reported, for the effect on cash and cash equivalents, within Translation exchange differences). Operating activities For the year ended December 31, 2017 , the €1,666 million increase in inventories related to ramp-up of new models at year end, including the all-new Alfa Romeo Stelvio and the new Jeep Wrangler, as well as volume increases in LATAM and Maserati. The increase in trade payables of €1,086 million primarily related to increased production volumes in NAFTA and LATAM in the fourth quarter of 2017 as compared to the same period in 2016. For the year ended December 31, 2016, the net increase of €1,519 million in provisions was mainly due to the increase in the warranty provision of €414 million in NAFTA for recall campaigns related to an industry wide recall for airbag inflators resulting from parts manufactured by Takata, an increase in accrued sales incentives primarily related to NAFTA and EMEA, as well as estimated net costs of €132 million associated with a recall for which costs are being contested with a supplier. In addition, the € 471 million increase in inventories primarily related to the increased production of new vehicle models in EMEA and the € 776 million increase in trade payables mainly related to increased production levels in EMEA, which was partially offset by reduced activity in LATAM and the effect of localized Jeep production in China. Furthermore, the change in other payables and receivables of € 295 million primarily reflected the net payment of taxes and deferred expenses. For the year ended December 31, 2015, the net increase of € 3,206 million in provisions mainly related to an increase in the warranty provision, which included the change in estimate for future recall campaign costs in NAFTA, and higher accrued sales incentives primarily related to increased sales volumes in NAFTA. In addition, the €958 million increase in inventories reflected the increased consumer demand for our vehicles and inventory buildup in NAFTA due to production changeovers and the €1,571 million increase in trade payables mainly related to increased production levels in EMEA. Furthermore, the change in other payables and receivables of € 580 million primarily reflected the net payment of taxes and deferred expenses. Financing activities For the year ended December 31, 2017 , net cash used in financing activities was primarily the result of the (i) repayment of other long-term debt, net of proceeds, of € 889 million , which included (a) the U.S.$ 1,826 million (€ 1,721 million ) of cash used for the voluntary prepayment of the outstanding principal and accrued interest of FCA US's Tranche B Term Loan due 2017 and (b) the repayment of a note at maturity under the MTN Programme, one with a principal amount of € 850 million , one with a principal amount of € 1,000 million and one with a principal amount of CHF 450 million (€ 385 million ), as described in Note 21 , Debt . For the year ended December 31, 2016 , net cash used in financing activities was primarily the result of the (i) repayment of other long-term debt for a total of € 4,618 million , which included (a) the voluntary prepayments of principal of the FCA US Tranche B Term Loans of U.S.$ 2.0 billion (€ 1.8 billion ) as described in Note 21 , Debt , (b) the payment of the financial liability related to the Mandatory Convertible Securities of €213 million upon their conversion to FCA shares and (c) repayments at maturity of other long-term debt of € 2,605 million primarily in Brazil, as well as (ii) the repayment at maturity of three notes issued under the MTN Programme, two of which were for an aggregate principal amount of € 2,000 million and one for a principal amount of CHF 400 million ( €373 million ) as described in Note 21 , Debt , which were partially offset by (iii) the issuance of a new note under the MTN Programme for a principal amount of € 1,250 million and (iv) proceeds from other long-term debt for a total of € 1,342 million , which included the proceeds from the €250 million loan entered into with the EIB in December 2016 as described in Note 21 , Debt . For the year ended December 31, 2015 , net cash from financing activities was primarily the result of (i) the prepayment of the FCA US Secured Senior Notes and the repayment at maturity of two notes issued under the MTN Programme for a total of € 7,241 million and (ii) the repayment of other long-term debt for a total of € 4,412 million , which were partially offset by (iii) net proceeds of € 866 million from the Ferrari IPO as described in Note 3 , Scope of consolidation , (iv) proceeds from the issuance of the Notes by FCA for a total of € 2,840 million as described in Note 21 , Debt, (v) € 3,061 million provided by other long-term borrowings and (vi) net proceeds from the € 2.0 billion Ferrari Bridge Loan and Ferrari Term Loan, which are reflected within cash flows used in financing activities - discontinued operations in the Consolidated Statement of Cash Flows. The following is a reconciliation of liabilities arising from financing activities for the year ended December 31, 2017: (€ million) Total Debt at January 1, 2017 € 24,048 Derivative (assets)/liabilities and collateral at January 1, 2017 150 Total Liabilities from financing activities at January 1, 2017 € 24,198 Cash flows € (4,470 ) Foreign exchange effects € (1,311 ) Fair value changes € (286 ) Changes in scope of consolidation € (83 ) Other changes € (283 ) Total Liabilities from financing activities at December 31, 2017 € 17,765 Derivative (assets)/liabilities and collateral at December 31, 2017 (206 ) Total Debt at December 31, 2017 € 17,971 Interest expense and taxes paid During the year December 31, 2017, the Group paid interest of € 1,190 million and received interest of € 299 million . During the year ended December 31, 2016 , the Group paid interest of € 1,676 million and received interest of € 370 million . During the year ended December 31, 2015, the Group, including Ferrari, paid interest of € 2,087 million and received interest of € 469 million . Amounts indicated are also inclusive of interest rate differentials paid or received on interest rate derivatives. During the year ended December 31, 2017, the Group made income tax payments, net of refunds, totaling €533 million . During the year ended December 31, 2016 , the Group made income tax payments, net of refunds, totaling €622 million . During the year ended December 31, 2015 , the Group, including Ferrari, made income tax payments, net of refunds, totaling €664 million . |
Qualitative and quantitative in
Qualitative and quantitative information on financial risk | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Qualitative and quantitative information on financial risks | Qualitative and quantitative information on financial risks The Group is exposed to the following financial risks connected with its operations: • credit risk, principally arising from its normal commercial relations with final customers and dealers, and its financing activities; • liquidity risk, with particular reference to the availability of funds and access to the credit market and to financial instruments in general; • financial market risk (principally relating to exchange rates, interest rates and commodity prices), since the Group operates at an international level in different currencies and uses financial instruments which generate interest. The Group is also exposed to the risk of changes in the price of certain commodities and of certain listed shares. These risks could significantly affect the Group’s financial position and results and for this reason, the Group systematically identifies and monitors these risks in order to detect potential negative effects in advance and take the necessary action to mitigate them, primarily through its operating and financing activities and if required, through the use of derivative financial instruments in accordance with established risk management policies. Financial instruments held by the funds that manage pension plan assets are not included in this analysis (refer to Note 19 , Employee benefits liabilities ). The following section provides qualitative and quantitative disclosures on the effect that these risks may have upon the Group. The quantitative data reported in the following does not have any predictive value, in particular the sensitivity analysis on finance market risks does not reflect the complexity of the market or the reaction which may result from any changes that are assumed to take place. Credit risk Credit risk is the risk of economic loss arising from the failure to collect a receivable. Credit risk encompasses the direct risk of default and the risk of a deterioration of the creditworthiness of the counterparty. The Group’s credit risk differs in relation to the activities carried out. In particular, dealer financing and operating and financial lease activities that are carried out through the Group’s financial services companies are exposed both to the direct risk of default and the deterioration of the creditworthiness of the counterparty, while the sale of vehicles and spare parts is mostly exposed to the direct risk of default of the counterparty. These risks are however mitigated by the fact that collection exposure is spread across a large number of counterparties and customers. Overall, the credit risk regarding the Group’s trade receivables and receivables from financing activities is concentrated in the European Union, Latin America and North American markets. In order to test for impairment, significant receivables from corporate customers and receivables for which collectability is at risk are assessed individually, while receivables from end customers or small business customers are grouped into homogeneous risk categories. A receivable is considered impaired when there is objective evidence that the Group will be unable to collect all amounts due specified in the contractual terms. Objective evidence may be provided by the following factors: significant financial difficulties of the counterparty, the probability that the counterparty will be involved in an insolvency procedure or will default on its installment payments, the restructuring or renegotiation of open items with the counterparty, changes in the payment status of one or more debtors included in a specific risk category and other contractual breaches. The calculation of the amount of the impairment loss is based on the risk of default by the counterparty, which is determined by taking into account all the information available as to the customer’s solvency, the fair value of any guarantees received for the receivable and the Group’s historical experience. The maximum credit risk to which the Group is potentially exposed at December 31, 2017 is represented by the carrying amounts of financial assets in the financial statements and the nominal value of the guarantees provided on liabilities and commitments to third parties as discussed in Note 25 , Guarantees granted, commitments and contingent liabilities . Dealers and final customers for which the Group provides financing are subject to specific assessments of their creditworthiness under a detailed scoring system; in addition to carrying out this screening process, the Group also obtains financial and non-financial guarantees for risks arising from credit granted. These guarantees are further strengthened where possible by reserve of title clauses on financed vehicle sales to the sales network made by Group financial service companies and on vehicles assigned under finance and operating lease agreements. Receivables from financing activities amounting to € 3,140 million at December 31, 2017 ( €2,578 million at December 31, 2016 ) contained balances totaling €5 million ( €4 million at December 31, 2016 ), which have been written down on an individual basis. Of the remainder, balances totaling €46 million are past due by up to one month ( €34 million at December 31, 2016 ), while balances totaling €21 million are past due by more than one month ( €19 million at December 31, 2016 ). In the event of installment payments, even if only one installment is overdue, the entire receivable balance is classified as overdue. Trade receivables and other receivables amounting to € 5,413 million at December 31, 2017 (€ 5,276 million at December 31, 2016 ) contain balances totaling €15 million ( €9 million at December 31, 2016 ) which have been written down on an individual basis. Of the remainder, balances totaling €271 million are past due by up to one month ( €228 million at December 31, 2016 ), while balances totaling €233 million are past due by more than one month ( €228 million at December 31, 2016 ). Even though our current securities and Cash and cash equivalents consist of balances spread across various primary national and international banking institutions and money market instruments that are measured at fair value, there was no exposure to sovereign debt securities at December 31, 2017 which might lead to significant risk of repayment. Liquidity risk Liquidity risk is the risk if the Group is unable to obtain the funds needed to carry out its operations and meet its obligations. Any actual or perceived limitations on the Group’s liquidity may affect the ability of counterparties to do business with the Group or may require additional amounts of cash and cash equivalents to be allocated as collateral for outstanding obligations. The continuation of challenging economic conditions in the markets in which the Group operates and the uncertainties that characterize the financial markets, necessitate special attention to the management of liquidity risk. In that sense, measures taken to generate funds through operations and to maintain a conservative level of available liquidity are important factors for ensuring operational flexibility and addressing strategic challenges over the next few years. The main factors that determine the Group’s liquidity situation are the funds generated by or used in operating and investing activities, the debt lending period and its renewal features or the liquidity of the funds employed and market terms and conditions. The Group has adopted a series of policies and procedures whose purpose is to optimize the management of funds and to reduce liquidity risk as follows: • centralizing the management of receipts and payments where it may be economical in the context of the local civil, currency and fiscal regulations of the countries in which the Group is present; • maintaining a conservative level of available liquidity; • diversifying the means by which funds are obtained and maintaining a continuous and active presence in the capital markets; • obtaining adequate credit lines; and • monitoring future liquidity on the basis of business planning. The Group manages liquidity risk by monitoring cash flows and keeping an adequate level of funds at its disposal. The operating cash management and liquidity investment of the Group are centrally coordinated in the Group's treasury companies, with the objective of ensuring effective and efficient management of the Group’s funds. These companies obtain funds in the financial markets various funding sources. In 2016, in conjunction with the amendments to the credit agreements that govern the Tranche B Term Loans of FCA US entered into in March 2016, the covenants restricting the provision of guarantees and payment of dividends by FCA US for the benefit of the rest of the Group were eliminated and FCA US's cash management activities are no longer managed separately from the rest of the Group. FCA has not provided any guarantee, commitment or similar obligation in relation to any of FCA US’s financial indebtedness, nor has it assumed any kind of obligation or commitment to fund FCA US. Certain notes issued by FCA and its subsidiaries (other than FCA US and its subsidiaries) include covenants which may be affected by circumstances related to FCA US as well as certain other relevant subsidiaries, including cross-default clauses which may accelerate repayments in the event that FCA US fails to pay certain of its debt obligations. Details of the repayment structure of the Group’s financial assets and liabilities are provided in Note 15 , Trade, other receivables and tax receivables , Note 22 , Other liabilities and Tax payables and in Note 21 , Debt . Details of the repayment structure of derivative financial instruments are provided in Note 16 , Derivative financial assets and liabilities . The Group believes that the Group's total available liquidity, in addition to the funds that will be generated from operating and financing activities, will enable the Group to satisfy the requirements of its investing activities and working capital needs, fulfill its obligations to repay its debt at the natural due dates and ensure an appropriate level of operating and strategic flexibility. Financial market risks Due to the nature of our business, the Group is exposed to a variety of market risks, including foreign currency exchange rate risk, commodity price risk and interest rate risk. The Group’s exposure to foreign currency exchange rate risk arises both in connection with the geographical distribution of the Group’s industrial activities compared to the markets in which it sells its products, and in relation to the use of external borrowing denominated in foreign currencies. The Group’s exposure to interest rate risk arises from the need to fund industrial and financial operating activities and the necessity to deploy surplus funds. Changes in market interest rates may have the effect of either increasing or decreasing the Group’s Net profit , thereby indirectly affecting the costs and returns of financing and investing transactions. The Group’s exposure to commodity price risk arises from the risk of changes in the price of certain raw materials and energy used in production. Changes in the price of raw materials could have a significant effect on the Group’s results by indirectly affecting costs and product margins. These risks could significantly affect the Group’s financial position and results and for this reason, these risks are systematically identified and monitored, in order to detect potential negative effects in advance and take the necessary actions to mitigate them, primarily through its operating and financing activities and if required, through the use of derivative financial instruments in accordance with its established risk management policies. The Group’s policy permits derivatives to be used only for managing the exposure to fluctuations in foreign currency exchange rates and interest rates as well as commodities prices connected with future cash flows and assets and liabilities, and not for speculative purposes. The Group utilizes derivative financial instruments designated as fair value hedges mainly to hedge: • the foreign currency exchange rate risk on financial instruments denominated in foreign currency; and • the interest rate risk on fixed rate loans and borrowings. The instruments used for these hedges are mainly foreign currency forward contracts, interest rate swaps and combined interest rate and foreign currency financial instruments. The Group uses derivative financial instruments as cash flow hedges for the purpose of pre-determining: • the exchange rate at which forecasted transactions denominated in foreign currencies will be accounted for; • the interest paid on borrowings, both to match the fixed interest received on loans (customer financing activity), and to achieve a targeted mix of floating versus fixed rate funding structured loans; and • the price of certain commodities. The foreign currency exchange rate exposure on forecasted commercial flows is hedged by foreign currency swaps and forward contracts. Interest rate exposures are usually hedged by interest rate swaps and, in limited cases, by forward rate agreements. Exposure to changes in the price of commodities is generally hedged by using commodity swaps and commodity options. In addition, in order to manage the Group’s foreign currency risk related to its investments in foreign operation, the Group enters into net investment hedges, in particular foreign currency swaps and forward contracts. Counterparties to these agreements are major financial institutions. Information on the fair value of derivative financial instruments held at the balance sheet date is provided in Note 16 , Derivative financial assets and liabilities . Quantitative information on foreign currency exchange rate risk The Group is exposed to risk resulting from changes in foreign currency exchange rates, which can affect its earnings and equity. In particular: • where a Group company incurs costs in a currency different from that of its revenues, any change in exchange rates can affect the operating results of that company. • the principal exchange rates to which the Group is exposed are: ◦ EUR/U.S.$, relating to sales and purchases in U.S.$ made by Italian companies (primarily for Maserati and Alfa Romeo vehicles) and to sales and purchases in Euro made by FCA US; ◦ U.S.$/CAD, primarily relating to FCA Canada's sales of U.S. produced vehicles, net of FCA US sales of Canadian produced vehicles; ◦ CNY, in relation to sales in China originating from FCA US and from Italian companies (primarily for Maserati and Alfa Romeo vehicles); ◦ GBP, AUD, MXN, CHF, and ARS in relation to sales in the UK, Australian, Mexican, Swiss and Argentinian markets; ◦ PLN and TRY, relating to manufacturing costs incurred in Poland and Turkey; ◦ JPY mainly in relation to purchase of parts from Japanese suppliers and sales of vehicles in Japan; and ◦ U.S.$/BRL, EUR/BRL, relating to Brazilian manufacturing operations and the related import and export flows. The Group’s policy is to use derivative financial instruments to hedge a percentage of certain exposures subject to foreign currency exchange rate risk for the upcoming 12 months (including such risk before or beyond that date where it is deemed appropriate in relation to the characteristics of the business) and to hedge the exposure resulting from firm commitments unless not deemed appropriate. Group companies may have trade receivables or payables denominated in a currency different from their respective functional currency. In addition, in a limited number of cases, it may be convenient from an economic point of view, or it may be required under local market conditions, for Group companies to obtain financing or use funds in a currency different from their respective functional currency. Changes in exchange rates may result in exchange gains or losses arising from these situations. The Group’s policy is to hedge, whenever deemed appropriate, the exposure resulting from receivables, payables and securities denominated in foreign currencies different from the respective Group companies' functional currency. Certain of the Group’s companies are located in countries which are outside of the Eurozone, in particular the U.S., Brazil, Canada, Poland, Serbia, Turkey, Mexico, Argentina, the Czech Republic, India, China, Australia and South Africa. As the Group's reporting currency is the Euro, the income statements of those entities that have a reporting currency other than the Euro are translated into Euro using the average exchange rate for the period. In addition, the monetary assets and liabilities of these consolidated companies are translated into Euro at the period-end foreign exchange rate. The effects of these changes in foreign exchange rates are recognized directly in the Cumulative translation adjustments reserve included in Other comprehensive income. Changes in exchange rates may lead to effects on the translated balances of revenues, costs and monetary assets and liabilities reported in Euro, even when corresponding items are unchanged in the respective local currency of these companies. The Group monitors its principal exposure to conversion exchange risk and, in certain circumstances, enters into derivatives for the purpose of hedging the specific risk. There have been no substantial changes in 2017 in the nature or structure of exposure to foreign currency exchange rate risk or in the Group’s hedging policies. The potential loss in fair value of derivative financial instruments held for foreign currency exchange rate risk management (currency swaps/forwards, cross-currency interest rate and currency swaps) at December 31, 2017 resulting from a 10 percent change in the exchange rates would have been approximately €1,010 million ( €1,453 million at December 31, 2016 ). This analysis assumes that a hypothetical, unfavorable 10 percent change in exchange rates as at year-end is applied in the measurement of the fair value of derivative financial instruments. Receivables, payables and future trade flows whose hedging transactions have been analyzed were not included in this analysis. It is reasonable to assume that changes in market exchange rates will produce the opposite effect, of an equal or greater amount, on the underlying transactions that have been hedged. Quantitative information on interest rate risk The manufacturing companies and treasuries of the Group make use of external borrowings and invest in monetary and financial market instruments. In addition, Group companies sell receivables resulting from their trading activities on a continuing basis. Changes in market interest rates can affect the cost of the various forms of financing, including the sale of receivables, or the return on investments and the employment of funds, thus negatively impacting the net financial expenses incurred by the Group. In addition, the financial services companies provide loans (mainly to customers and dealers), financing themselves using various forms of direct debt or asset-backed financing (e.g. factoring of receivables). Where the characteristics of the variability of the interest rate applied to loans granted differ from those of the variability of the cost of the financing obtained, changes in the current level of interest rates can affect the operating result of those companies and the Group as a whole. In order to manage these risks, the Group uses interest rate derivative financial instruments, mainly interest rate swaps and forward rate agreements, when available in the market, with the objective of mitigating, under economically acceptable conditions, the potential variability of interest rates on the Group's Net profit . In assessing the potential impact of changes in interest rates, the Group segregates fixed rate financial instruments (for which the impact is assessed in terms of fair value) from floating rate financial instruments (for which the impact is assessed in terms of cash flows). The fixed rate financial instruments used by the Group consist principally of part of the portfolio of the financial services companies (principally customer financing and financial leases) and part of debt (including subsidized loans and notes). The potential loss in fair value of fixed rate financial instruments (including the effect of interest rate derivative financial instruments) held at December 31, 2017 , resulting from a hypothetical 10 percent change in market interest rates, would have been approximately €71 million (approximately €56 million at December 31, 2016 ). Floating rate financial instruments consist principally of cash and cash equivalents, loans provided by the financial services companies to the sales network and part of debt. The effect of the sale of receivables is also considered in the sensitivity analysis as well as the effect of hedging derivative instruments. A hypothetical 10 percent change in short-term interest rates at December 31, 2017 , applied to floating rate financial assets and liabilities, operations for the sale of receivables and derivative financial instruments, would have resulted in increased net financial expenses before taxes, on an annual basis, of approximately €27 million ( €30 million at December 31, 2016 ). This analysis is based on the assumption that there is an unfavorable change of 10 percent proportionate to interest rate levels across homogeneous categories. A homogeneous category is defined on the basis of the currency in which the financial assets and liabilities are denominated. In addition, the sensitivity analysis applied to floating rate financial instruments assumes that cash and cash equivalents and other short-term financial assets and liabilities which expire during the projected 12-month period will be renewed or reinvested in similar instruments, bearing the hypothetical short-term interest rates. Quantitative information on commodity price risk The Group has entered into derivative contracts for certain commodities to hedge its exposure to commodity price risk associated with buying raw materials and energy used in its normal operations. In connection with the commodity price derivative contracts outstanding at December 31, 2017 , a hypothetical 10 percent change in the price of the commodities at that date would have caused a fair value loss of €51 million ( €35 million at December 31, 2016 ). Future trade flows whose hedging transactions have been analyzed were not considered in this analysis. It is reasonable to assume that changes in commodity prices will produce the opposite effect, of an equal or greater amount, on the underlying transactions that have been hedged. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2017 | |
Events After Reporting Period [Abstract] | |
Subsequent events | Subsequent events The Group has evaluated subsequent events through February 20, 2018, which is the date the financial statements were authorized for issuance. In January 2018, as a result of the distribution of the Company's entire interest in GEDI to holders of FCA common shares on July 2, 2017, the Compensation Committee of FCA approved a conversion factor of 1.003733 that was applied to outstanding awards under the LTI Plan to make equity award holders whole for the resulting diminution in the value of an FCA common share. There was no change to the total cost of these awards to be amortized over the remaining vesting period as a result of these adjustments. On January 11, 2018, a special bonus payment was announced of $2,000 (approximately €1,670 ) to approximately 60,000 FCA hourly and salaried employees in the United States, excluding senior leadership, during the second quarter of 2018 for an estimated total cost including applicable social taxes, of approximately $130 million ( €109 million ). |
Basis of presentation (Policies
Basis of presentation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Statement of IFRS compliance | The Consolidated Financial Statements, together with notes thereto of FCA, at December 31, 2017 were authorized for issuance by the Board of Directors on February 20, 2018 and have been prepared in accordance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), as well as IFRS as adopted by the European Union. There is no effect on these consolidated financial statements resulting from differences between IFRS as issued by the IASB and IFRS as adopted by the European Union. The designation “IFRS” also includes International Accounting Standards (“IAS”) as well as all interpretations of the IFRS Interpretations Committee (“IFRIC”). |
Basis of presentation | Basis of Preparation The Consolidated Financial Statements are prepared under the historical cost method, modified as required for the measurement of certain financial instruments, as well as on a going concern basis. In this respect, the Group’s assessment is that no material uncertainties (as defined in IAS 1- Presentation of Financial Statements ) exist about its ability to continue as a going concern. For presentation of the Consolidated Income Statement, the Group uses a classification based on the function of expenses, rather than based on their nature, as it is more representative of the format used for internal reporting and management purposes and is consistent with international practice in the automotive sector. |
Subsidiaries | Subsidiaries Subsidiaries are entities over which the Group has control. Control is achieved when the Group has power over the investee, when it is exposed to, or has rights to, variable returns from its involvement with the investee, and has the ability to use its power over the investee to affect the amount of the investor’s returns. Subsidiaries are consolidated on a line by line basis from the date which control is achieved by the Group. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. The Group recognizes a non-controlling interest in the acquiree on a transaction-by-transaction basis, either at fair value or at the non-controlling interest’s share of the recognized amounts of the acquiree’s identifiable net assets. Net profit or loss and each component of Other comprehensive income/(loss) are attributed to Equity attributable to owners of the parent and to Non-controlling interests. Total comprehensive income/(loss) of subsidiaries is attributed to Equity attributable to the owners of the parent and to the non-controlling interest even if this results in a deficit balance in Non-controlling interests. Changes in the Group’s ownership interests in a subsidiary that do not result in the Group losing control over the subsidiary are accounted for as equity transactions. The carrying amounts of the Equity attributable to owners of the parent and Non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the carrying amount of the non-controlling interests and the fair value of the consideration paid or received in the transaction is recognized directly in the Equity attributable to the owners of the parent. Subsidiaries are deconsolidated from the date which control ceases. When the Group ceases to have control over a subsidiary, it derecognizes the assets (including any goodwill) and liabilities of the subsidiary at their carrying amounts, derecognizes the carrying amount of non-controlling interests in the former subsidiary and recognizes the fair value of any consideration received from the transaction. Any retained interest in the former subsidiary is then remeasured to its fair value. All intra-group balances and transactions, and any unrealized gains and losses arising from intra-group transactions, are eliminated in preparing the Consolidated Financial Statements. |
Interest in joint ventures and associates | Interests in Joint Ventures and Associates A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not have control or joint control over those policies. Joint ventures and associates are accounted for using the equity method of accounting from the date joint control and significant influence is obtained. On acquisition of the investment, any excess of the cost of the investment and the Group’s share of the net fair value of the investee’s identifiable assets and liabilities is recognized as goodwill and is included in the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the investee’s identifiable assets and liabilities over the cost of the investment is included as income in the determination of the Group’s share of the investee’s profit/(loss) in the acquisition period. Under the equity method, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit/(loss) and other comprehensive income/(loss) of the investee. The Group’s share of the investee’s profit/(loss) is recognized in the Consolidated Income Statement. Distributions received from an investee reduce the carrying amount of the investment. Post-acquisition movements in Other comprehensive income/(loss) are recognized in Other comprehensive income/(loss) with a corresponding adjustment to the carrying amount of the investment. Unrealized gains on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group’s interest in the joint venture or associate. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Group’s share of the losses of a joint venture or associate exceeds the Group’s interest in that joint venture or associate, the Group discontinues recognizing its share of further losses. Additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture or associate. The Group discontinues the use of the equity method from the date the investment ceases to be an associate or a joint venture, or when it is classified as available-for-sale. |
Interests in joint operations | Interests in Joint Operations A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. When the Group undertakes its activities under joint operations, it recognizes its related interest in the joint operation including: (i) its assets, including its share of any assets held jointly, (ii) its liabilities, including its share of any liabilities incurred jointl y, (iii) its revenue from the sale of its share of the output arising from the joint operation, (iv) its share of the revenue from the sale of the output by the joint operation and (v) its expenses, including its share of any expenses incurred jointly. |
Assets held for sale, Assets held for distribution and Discontinued Operations | Assets held for sale, Assets held for distribution and Discontinued Operations Pursuant to IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations , non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset or disposal group and the sale is highly probable, with the sale expected to be completed within one year from the date of classification. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell and are presented separately in the Consolidated Statement of Financial Position. Non-current assets and disposal groups are not classified as held for sale within the comparative period presented for the Consolidated Statement of Financial Position. A discontinued operation is a component of the Group that either has been disposed of or is classified as held for sale and (i) represents either a separate major line of business or a geographical area of operations, (ii) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations, or (iii) is a subsidiary acquired exclusively with a view to resell and the disposal involves loss of control. Classification as a discontinued operation occurs upon disposal or when the asset or disposal group meets the criteria to be classified as held for sale, if earlier. When the asset or disposal group is classified as a discontinued operation, the comparative information is reclassified within the Consolidated Income Statement as if the asset or disposal group had been discontinued from the start of the earliest comparative period presented. The classification, presentation and measurement requirements of IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations also apply to an asset or disposal group that is classified as held for distribution to owners, whereby there must be commitment to the distribution, the asset or disposal group must be available for immediate distribution and the distribution must be highly probable. |
Functional currency | Foreign currency The functional currency of the Group’s entities is the currency of their respective primary economic environment. In individual companies, transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate prevailing at the date of the Consolidated Statement of Financial Position. Exchange differences arising on the settlement of monetary items, or on reporting monetary items at rates different from those initially recorded, are recognized in the Consolidated Income Statement. All assets and liabilities of foreign consolidated companies with a functional currency other than the Euro are translated using the closing rates at the date of the Consolidated Statement of Financial Position. Income and expenses are translated into Euro at the average exchange rate for the period. Translation differences resulting from the application of this method are classified within Other comprehensive income/(loss) until the disposal of the subsidiary. Average exchange rates for the period are used to translate the cash flows of foreign subsidiaries in preparing the Consolidated Statement of Cash Flows. |
Foreign currency translation | Foreign currency The functional currency of the Group’s entities is the currency of their respective primary economic environment. In individual companies, transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate prevailing at the date of the Consolidated Statement of Financial Position. Exchange differences arising on the settlement of monetary items, or on reporting monetary items at rates different from those initially recorded, are recognized in the Consolidated Income Statement. All assets and liabilities of foreign consolidated companies with a functional currency other than the Euro are translated using the closing rates at the date of the Consolidated Statement of Financial Position. Income and expenses are translated into Euro at the average exchange rate for the period. Translation differences resulting from the application of this method are classified within Other comprehensive income/(loss) until the disposal of the subsidiary. Average exchange rates for the period are used to translate the cash flows of foreign subsidiaries in preparing the Consolidated Statement of Cash Flows. |
Intangible assets | Intangible assets Goodwill Goodwill represents the excess of the fair value of consideration paid over the fair value of net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. After initial recognition, Goodwill is measured at cost less any accumulated impairment losses. Intangible assets with indefinite useful lives Intangible assets with indefinite useful lives consist principally of brands which have no legal, contractual, competitive, economic, or other factors that limit their useful lives. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Development expenditures Development expenditures for vehicle production and related components, engines and production systems are recognized as an asset if both of the following conditions within IAS 38 – Intangible assets are met: (i) that development expenditure can be measured reliably and (ii) that the technical feasibility of the product, volumes and pricing support the view that the development expenditure will generate future economic benefits. Capitalized development expenditures include all direct and indirect costs that may be directly attributed to the development process. All other development expenditures are expensed as incurred. Capitalized development expenditures are amortized on a straight-line basis from the beginning of production over the expected life cycle of the models (generally 5-6 years ) or powertrains developed (generally 10-12 years ). |
Property, plant and equipment | Property, plant and equipment Cost Property, plant and equipment is initially recognized at cost and includes the purchase price, any costs directly attributable to bringing the assets to the location and condition necessary to be capable of operating in the manner intended by management and any initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Self-constructed assets are initially recognized at production cost. Subsequent expenditures and the cost of replacing parts of an asset are capitalized only if they increase the future economic benefits embodied in that asset. All other expenditures are expensed as incurred. When such replacement costs are capitalized, the carrying amount of the parts that are replaced is recognized in the Consolidated Income Statement. Assets held under finance leases, which provide the Group with substantially all the risks and rewards of ownership, are recognized as assets of the Group at their fair value or at the present value of the minimum lease payments, if lower. The corresponding liability to the lessor is included in the Consolidated Statement of Financial Position within Debt. Depreciation During years ended December 31, 2017 , 2016 and 2015 , assets were depreciated on a straight-line basis over their estimated useful lives using the following rates: Depreciation rates Buildings 3% - 8% Plant, machinery and equipment 3% - 33% Other assets 5% - 33% Leases under which the lessor retains substantially all the risks and rewards of ownership of the leased assets are classified as operating leases. Operating lease expenditures are expensed on a straight-line basis over the respective lease term. |
Borrowing costs | Borrowing Costs Borrowing costs that are directly attributable to the acquisition, construction or production of property, plant or equipment or an intangible asset that is deemed to be a qualifying asset as defined in IAS 23 - Borrowing Costs are capitalized. The amount of borrowing costs eligible for capitalization corresponds to the actual borrowing costs incurred during the period, less any investment income on the temporary investment of any borrowed funds not yet used. |
Impairment of long-lived assets | Impairment of long-lived assets At the end of each reporting period, the Group assesses whether there is any indication that its finite-lived intangible assets (including capitalized development expenditures) and its property, plant and equipment may be impaired. If indications of impairment are present, the carrying amount of the asset is reduced to its recoverable amount which is the higher of fair value less costs of disposal and its value in use. The recoverable amount is determined for the individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case the asset is tested as part of the cash-generating unit (“CGU”) to which the asset belongs. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. In assessing the value in use of an asset or CGU, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognized if the recoverable amount is lower than the carrying amount. When an impairment loss for assets no longer exists or has decreased, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but not in excess of the carrying amount that would have been recorded had no impairment loss been recognized. The reversal of an impairment loss is recognized in the Consolidated Income Statement. |
Financial assets and liabilities | Financial assets and liabilities Financial assets, as defined in IAS 39 – Financial Instruments: Recognition and Measurement , primarily include trade receivables, receivables from financing activities, securities that represent temporary investments of available funds and do not satisfy the requirements for being classified as cash equivalents (which include available-for-sale, held-for-trading and held-to-maturity securities), investments in other companies, derivative financial instruments, as well as Cash and cash equivalents. Cash and cash equivalents include cash at banks, units in money market funds and other money market securities, primarily comprised of commercial paper and certificates of deposit that are readily convertible into cash, with original maturities of three months or less at the date of purchase. Cash and cash equivalents are subject to an insignificant risk of changes in value, and consist of balances across various primary national and international money market instruments. Money market funds consist of investments in high quality, short-term, diversified financial instruments which can generally be liquidated on demand. Financial liabilities primarily consist of Debt, Derivative financial instruments, Trade payables and Other liabilities. Measurement Financial assets are recognized on the basis of the settlement date and, on initial recognition, are measured at acquisition cost, including transaction costs. Subsequent to initial recognition, available-for-sale and held-for-trading securities are measured at fair value. When market prices are not directly available, the fair value of available-for-sale and held-for trading securities is measured using appropriate valuation techniques (e.g. discounted cash flow analysis based on market information available at the balance sheet date). Gains and losses on available-for-sale securities are recognized in Other comprehensive income/(loss) until the financial asset is disposed of or is impaired. When the asset is disposed of, the cumulative gains or losses, including those previously recognized in Other comprehensive income/(loss), are reclassified to the Consolidated Income Statement during the period and are recognized within Net financial expenses. Gains and losses arising from changes in the fair value of held-for-trading securities are recognized in the Consolidated Income Statement. When the asset is impaired, the losses are recognized in the Consolidated Income Statement. Loans and receivables which are not held by the Group for trading (loans and receivables originating in the ordinary course of business) and held-to-maturity securities are measured, to the extent that they have a fixed term, at amortized cost, using the effective interest method. When these financial assets do not have a fixed term, they are measured at acquisition cost. Receivables with maturities of over one year which bear no interest, or have an interest rate significantly lower than market rates, are discounted using market rates. Assessments are made regularly as to whether there is any objective evidence that the asset or group of assets may be impaired. If any such evidence exists, the impairment loss is recognized in the Consolidated Income Statement. Investments in other companies are measured at fair value. Equity investments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost, less any impairment losses. For investments classified as available-for-sale, gains or losses arising from changes in fair value are recognized in Other comprehensive income/(loss) until the assets are sold or are impaired, at which time, the cumulative Other comprehensive income/(loss) is recognized in the Consolidated Income Statement. Gains and losses arising from changes in the fair value of held-for-trading investments are recognized in the Consolidated Income Statement. Investments in other companies for which fair value is not available are stated at cost less any impairment losses. Dividends received are included in Other income from investments. Except for derivative financial instruments, which are described in more detail below, financial liabilities are measured at amortized cost using the effective interest method. Derivative financial instruments Derivative financial instruments are used for economic hedging purposes in order to reduce currency, interest rate and market price risks (primarily related to commodities and securities). In accordance with IAS 39 - Financial Instruments: Recognition and Measurement , derivative financial instruments are recognized on the basis of the settlement date and, on initial recognition, are measured at acquisition cost, including transaction costs. Subsequent to initial recognition, all derivative financial instruments are measured at fair value. Furthermore, derivative financial instruments qualify for hedge accounting only when there is formal designation and documentation of the hedging relationship at inception of the hedge, the hedge is expected to be highly effective, its effectiveness can be reliably measured and it is highly effective throughout the financial reporting periods for which it is designated. When derivative financial instruments qualify for hedge accounting, the following accounting treatments apply: • Fair value hedges – Where a derivative financial instrument is designated as a hedge of the exposure to changes in fair value of a recognized asset or liability that is attributable to a particular risk and could affect the Consolidated Income Statement, the gain or loss from remeasuring the hedging instrument at fair value is recognized in the Consolidated Income Statement. The gain or loss on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognized in the Consolidated Income Statement. • Cash flow hedges – Where a derivative financial instrument is designated as a hedge of the exposure to variability in future cash flows of a recognized asset or liability or a highly probable forecasted transaction and could affect the Consolidated Income Statement, the effective portion of any gain or loss on the derivative financial instrument is recognized directly in Other comprehensive income/(loss). The cumulative gain or loss is reclassified from Other comprehensive income/(loss) to the Consolidated Income Statement at the same time as the economic effect arising from the hedged item that affects the Consolidated Income Statement. The gain or loss associated with a hedge or part of a hedge that has become ineffective is recognized in the Consolidated Income Statement immediately. When a hedging instrument or hedge relationship is terminated but the hedged transaction is still expected to occur, the cumulative gain or loss realized to the point of termination remains in Other comprehensive income/(loss) and is recognized in the Consolidated Income Statement at the same time as the underlying transaction occurs. If the hedged transaction is no longer probable, the cumulative unrealized gain or loss held in Other comprehensive income/(loss) is recognized in the Consolidated Income Statement immediately. • Hedges of a net investment – If a derivative financial instrument is designated as a hedging instrument for a net investment in a foreign operation, the effective portion of the gain or loss on the derivative financial instrument is recognized in Other comprehensive income/(loss). The cumulative gain or loss is reclassified from Other comprehensive income/(loss) to the Consolidated Income Statement upon disposal of the foreign operation. If hedge accounting cannot be applied, the gains or losses from the fair value measurement of derivative financial instruments are recognized immediately in the Consolidated Income Statement. |
Transfers of financial assets | Transfers of financial assets The Group derecognizes financial assets when the contractual rights to the cash flows arising from the asset are no longer held or if it transfers substantially all the risks and rewards of ownership of the financial asset. On derecognition of financial assets, the difference between the carrying amount of the asset and the consideration received or receivable for the transfer of the asset is recognized in the Consolidated Income Statement. The Group transfers certain of its financial, trade and tax receivables, mainly through factoring transactions. Factoring transactions may be either with recourse or without recourse. Certain transfers include deferred payment clauses (for example, when the payment by the factor of a minor part of the purchase price is dependent on the total amount collected from the receivables) requiring first loss cover, whereby the transferor has priority participation in the losses, or requires a significant exposure to the variability of cash flows arising from the transferred receivables to be retained. These types of transactions do not meet the requirements of IAS 39 – Financial Instruments: Recognition and Measurement, for the derecognition of the assets since the risks and rewards connected with ownership of the financial asset are not transferred, and accordingly the Group continues to recognize these receivables within the Consolidated Statement of Financial Position and recognizes a financial liability for the same amount under Asset-backed financing, which is included within Debt. The gains and losses arising from the transfer of these receivables are recorded only when they are derecognized. |
Inventories | Inventories Inventories of raw materials, semi-finished products and finished goods are stated at the lower of cost and net realizable value, with cost being determined on a first-in, first-out (“FIFO”) basis. The measurement of Inventories includes the direct cost of materials and labor as well as indirect costs (variable and fixed). A provision is made for obsolete and slow-moving raw materials, finished goods, spare parts and other supplies based on their expected future use and realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs for sale and distribution. The measurement of production systems construction contracts is based on the stage of completion determined as the proportion of cost incurred at the balance sheet date over the estimated total contract cost. These items are presented net of progress billings received from customers. Any losses on such contracts are recorded in the Consolidated Income Statement when they are known. |
Employee benefits | Employee benefits Defined contribution plans Costs arising from defined contribution plans are expensed as incurred. Defined benefit plans The Group’s net obligations are determined separately for each plan by estimating the present value of future benefits that employees have earned and deducting the fair value of any plan assets. The present value of defined benefit obligations are measured using actuarial techniques and actuarial assumptions that are unbiased, mutually compatible and attribute benefits to periods in which the obligation to provide post-employment benefits arise by using the Projected Unit Credit Method. Plan assets are recognized and measured at fair value. When the net obligation is a potential asset, the recognized amount is limited to the present value of any economic benefits available in the form of future refunds or reductions in future contributions to the plan (asset ceiling). The components of the defined benefit cost are recognized as follows: • Service cost is recognized in the Consolidated Income Statement by function and is presented in the relevant line items (Cost of revenues, Selling, general and other costs and Research and development costs); • Net interest on the defined benefit liability or asset is recognized in the Consolidated Income Statement within Net financial expenses and is determined by multiplying the net liability/(asset) by the discount rate used to discount obligations taking into account the effect of contributions and benefit payments made during the year; and • Re-measurement components of the net obligations, which comprise actuarial gains and losses, the return on plan assets (excluding interest income recognized in the Consolidated Income Statement) and any change in the effect of the asset ceiling are recognized immediately in Other comprehensive income/(loss). These re-measurement components are not reclassified to the Consolidated Income Statement in a subsequent period. Past service costs arising from plan amendments and curtailments and gains and losses on the settlement of a plan are recognized immediately in the Consolidated Income Statement. Other long term employee benefits The Group’s obligations represent the present value of future benefits that employees have earned in return for their service. Re-measurement components on other long term employee benefits are recognized in the Consolidated Income Statement in the period in which they arise. |
Share-based compensation | Share-based compensation We have various compensation plans that provide for the granting of share-based compensation to certain employees and directors. Share-based compensation plans are accounted for in accordance with IFRS 2 - Share-based Payment, which requires the recognition of share-based compensation expense based on fair value. Compensation expense for equity-classified awards is measured at the grant date based on the fair value of the award and using the Monte Carlo simulation model, which requires the input of subjective assumptions, including the expected volatility of our common stock, interest rates and a correlation coefficient between our common stock and the relevant market index. For those awards with post-vesting contingencies, we apply an adjustment to account for the probability of meeting the contingencies. Management uses its best estimates incorporating both publicly observable data and discounted cash flow methodologies in the measurement of fair value for liability-classified awards, which are remeasured to fair value at each balance sheet date until the award is settled. Compensation expense is recognized over the vesting period with an offsetting increase to equity or other liabilities depending on the nature of the award. Share-based compensation expense related to plans with graded vesting are recognized using the graded vesting method. Share-based compensation expense is recognized within Selling, general and other costs within the Consolidated Income Statement. |
Revenue recognition | Revenue recognition Revenue from the sale of vehicles and service parts is recognized if it is probable that the economic benefits associated with a transaction will flow to the Group and the revenue can be reliably measured. Revenue is recognized when the risks and rewards of ownership are transferred to our customers, the sales price is agreed or determinable and collectability is reasonably assured. For vehicles, this generally corresponds to the date when the vehicles are made available to dealers or distributors, or when the vehicles are released to the carrier responsible for transporting vehicles to dealers or distributors. Revenue from the sale of vehicles, which subsequent to the sale become subject to the issuance of a residual value guarantee to an independent financing provider, is recognized consistent with the timing noted above, provided that significant risks related to the vehicle have been transferred to our customers. At that same time, a provision is made for the estimated residual value risk. Revenues are recognized net of discounts, including but not limited to, sales incentives and customer bonuses. The estimated costs of sales incentive programs include incentives offered to dealers and retail customers, and granting of retail financing at a significant discount to market interest rates. These costs are recognized at the time of the sale of the vehicle. New vehicle sales with a buy-back commitment, or through the Guarantee Depreciation Program (“GDP”) under which the Group guarantees the residual value, or otherwise assumes responsibility for the minimum resale value of the vehicle, are not recognized at the time of delivery but are accounted for similar to an operating lease. Rental income is recognized over the contractual term of the lease on a straight-line basis. At the end of the lease term, the Group recognizes revenue for the portion of the vehicle sales price which had not been previously recognized as rental income and recognizes the remainder of the cost of the vehicle within Cost of revenues. Revenue from services contracts, separately-priced extended warranty and from construction contracts is recognized over the contract period in proportion to the costs expected to be incurred based on historical information. A loss on these contracts is recognized if the sum of the expected costs for services under the contract exceeds unearned revenue. |
Cost of revenues | Cost of revenues Cost of revenues comprises expenses incurred in the manufacturing and distribution of vehicles and parts, of which the cost of materials and components are the most significant. The remaining costs primarily include labor costs, consisting of direct and indirect wages, depreciation of property, plant and equipment and amortization of other intangible assets relating to production and transportation costs. In addition, expenses which are directly attributable to the financial services companies, including interest expense related to their financing as a whole and provisions for risks and write-downs of assets, are recorded within Cost of revenues (€ 53 million , € 77 million and € 115 million for the years ended December 31, 2017 , 2016 and 2015 , respectively). Cost of revenues also included € 397 million , € 384 million and € 432 million related to the decrease in value for assets sold with buy-back commitments for the years ended December 31, 2017 , 2016 and 2015 , respectively. In addition, estimated costs related to product warranty and recall campaigns are recorded within Cost of revenues (refer to the section — Use of Estimates below for further information). |
Government grants | Government Grants Government grants are recognized in the Consolidated Financial Statements when there is reasonable assurance of the Group's compliance with the conditions for receiving such grants and that the grants will be received. Government grants are recognized as income over the periods necessary to match them with the related costs which they are intended to offset. The benefit of a government loan at a below-market rate of interest is treated as a government grant. The benefit of the below-market rate of interest is measured as the difference between the initial carrying amount of the loan (fair value plus transaction costs) and the proceeds received, and it is accounted for in accordance with the policies used for the recognition of government grants. |
Taxes | Taxes Income taxes include all taxes based on the taxable profits of the Group. Current and deferred taxes are recognized as a benefit or expense and are included in the Consolidated Income Statement for the period, except tax arising from (i) a transaction or event which is recognized, in the same or a different period, either in Other comprehensive income/(loss) or directly in Equity, or (ii) a business combination. Deferred taxes are accounted for under the full liability method. Deferred tax liabilities are recognized for all taxable temporary differences between the carrying amounts of assets or liabilities and their tax base, except to the extent that the deferred tax liabilities arise from the initial recognition of goodwill or the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized, unless the deferred tax assets arise from the initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit. Deferred tax assets and liabilities are measured at the substantively enacted tax rates in the respective jurisdictions in which the Group operates that are expected to apply to the period when the asset is realized or liability is settled. The Group recognizes deferred tax liabilities associated with the existence of a subsidiary’s undistributed profits, except when it is able to control the timing of the reversal of the temporary difference, and it is probable that this temporary difference will not reverse in the foreseeable future. The Group recognizes deferred tax assets associated with the deductible temporary differences on investments in subsidiaries only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized. Deferred tax assets relating to the carry-forward of unused tax losses and tax credits as well as those arising from deductible temporary differences, are recognized to the extent that it is probable that future profits will be available against which they can be utilized. The Group monitors unrecognized deferred tax assets at each reporting date and recognizes a previously unrecognized deferred tax asset to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Current income taxes and deferred taxes are offset when they relate to the same taxation authority and there is a legally enforceable right of offset. Other taxes not based on income, such as property taxes and capital taxes, are included within Selling, general and other costs. |
Fair Value Measurement | Fair Value Measurement Fair value for measurement and disclosure purposes is determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using a valuation technique. Fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • in the principal market for the asset or liability; or • in the absence of a principal market, in the most advantageous market for the asset or liability. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. In estimating fair value, we use market-observable data to the extent it is available. When market-observable data is not available, we use valuation techniques that maximize the use of relevant observable inputs and minimize the use of unobservable inputs. IFRS 13 - Fair Value Measurement establishes a hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets and liabilities (level 1 inputs) and the lowest priority to unobservable inputs (level 3 inputs). In some cases, the inputs used to measure the fair value of an asset or a liability might be categorized within different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy at the lowest level input that is significant to the entire measurement. Levels used in the hierarchy are as follows: • Level 1 inputs include quoted prices (unadjusted) in active markets for identical assets and liabilities that the Group can access at the measurement date. Level 1 primarily consists of financial instruments such as cash and cash equivalents and certain available-for-sale and held-for-trading securities. • Level 2 inputs include those which are directly or indirectly observable as of the measurement date. Level 2 instruments include commercial paper and non-exchange-traded derivatives such as over-the-counter currency and commodity forwards, swaps and option contracts, which are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for similar instruments in active markets, quoted prices for identical or similar inputs not in active markets, and observable inputs. • Level 3 inputs are unobservable from objective sources in the market and reflect management judgment about the assumptions market participants would use in pricing the instruments. Instruments in this category include non-exchange-traded derivatives such as over-the-counter commodity option and swap contracts. |
Use of estimates | Use of Estimates The Consolidated Financial Statements are prepared in accordance with IFRS which require the use of estimates, judgments and assumptions that affect the carrying amount of assets and liabilities, the disclosure of contingent assets and liabilities and the amounts of income and expenses recognized. The estimates and associated assumptions are based on elements that are known when the financial statements are prepared, on historical experience and on any other factors that are considered to be relevant. The estimates and underlying assumptions, which are based on management's best judgment, are reviewed by the Group periodically and when circumstances require. Actual results could differ from the estimates, which would require adjustment accordingly. The effects of any changes in estimates are recognized in the Consolidated Income Statement in the period in which the adjustment is made, or in future periods. The items requiring estimates for which there is a risk that a material difference may arise in respect of the carrying amounts of assets and liabilities in the future are discussed below. Employee Benefits The Group provides post-employment benefits for certain of its active employees and retirees, which vary according to the legal, fiscal and economic conditions of each country in which the Group operates and may change periodically. The plans are classified by the Group on the basis of the type of benefit provided as follows: pension benefits, health care and life insurance plans, and other post-employment benefits. Group companies provide certain post-employment benefits, such as pension or health care benefits, to their employees under defined contribution plans whereby the Group pays contributions to public or private plans on a legally mandatory, contractual, or voluntary basis. The Group recognizes the cost for defined contribution plans as incurred and classifies this by function within Cost of revenues, Selling, general and other costs and Research and development costs in the Consolidated Income Statement. Pension plans The Group sponsors both non-contributory and contributory defined benefit pension plans primarily in the U.S. and Canada. The majority of the plans are funded plans. The non-contributory pension plans cover certain hourly and salaried employees and the benefits are based on a fixed rate for each year of service. Additionally, contributory benefits are provided to certain salaried employees under the salaried employees’ retirement plans. In the United Kingdom, the Group participates, amongst others, in a pension plan financed by various entities belonging to the Group, called the “Fiat Group Pension Scheme” covering mainly deferred and retired employees. The Group’s defined benefit pension plans are accounted for on an actuarial basis, which requires the use of estimates and assumptions to determine the net liability or net asset. The Group estimates the present value of the projected future payments to all participants taking into consideration parameters of a financial nature such as discount rates, the rates of salary increases and the likelihood of potential future events estimated by using demographic assumptions, which may have an effect on the amount and timing of future payments, such as mortality, dismissal and retirement rates, which are developed to reflect actual and projected plan experience. Mortality rates are developed using our plan-specific populations, recent mortality information published by recognized experts in this field, primarily the U.S. Society of Actuaries and the Canadian Institute of Actuaries, and other data where appropriate to reflect actual and projected plan experience. The expected amount and timing of contributions is based on an assessment of minimum funding requirements. From time to time contributions are made beyond those that are legally required. Plan obligations and costs are based on existing retirement plan provisions. Assumptions regarding any potential future changes to benefit provisions beyond those to which the Group is presently committed are not made. Significant differences in actual experience or significant changes in the following key assumption may affect the pension obligations and pension expense: • Discount rates . Our discount rates are based on yields of high-quality (AA-rated) fixed income investments for which the timing and amounts of maturities match the timing and amounts of the projected benefit payments. The effects of actual results differing from assumptions and of amended assumptions are included in Other comprehensive income/(loss). The weighted average discount rates used to determine the defined benefit obligation for the defined benefit plans were 3.7 percent and 4.3 percent at December 31, 2017 and 2016 , respectively. At December 31, 2017 , the effect on the defined benefit obligation of the indicated decrease or increase in the discount rate holding all other assumptions constant was as follows: Effect on pension benefit ( € million) 10 basis point decrease in discount rate 306 10 basis point increase in discount rate (299 ) Refer to Note 19 , Employee benefits liabilities , for additional information on the Group’s pension plans. Other post-employment benefits The Group provides health care, legal, severance, indemnity life insurance benefits and other postretirement benefits to certain hourly and salaried employees. Upon retirement, these employees may become eligible for continuation of certain benefits. Benefits and eligibility rules may be modified periodically. These other post-retirement employee benefits (“OPEB”) are accounted for on an actuarial basis, which requires the selection of various assumptions. The estimation of the Group’s obligations, costs and liabilities associated with OPEB requires the use of estimates of the present value of the projected future payments to all participants, taking into consideration the likelihood of potential future events estimated by using demographic assumptions, which may have an effect on the amount and timing of future payments, such as mortality, dismissal and retirement rates, which are developed to reflect actual and projected plan experience, as well as legal requirements for retirement in respective countries. Mortality rates are developed using our plan-specific populations, recent mortality information published by recognized experts in this field and other data where appropriate to reflect actual and projected plan experience. Plan obligations and costs are based on existing plan provisions. Assumptions regarding any potential future changes to benefit provisions beyond those to which the Group is presently committed are not made. Significant differences in actual experience or significant changes in the following key assumptions may affect the OPEB obligation and expense: • Discount rates . Our discount rates are based on yields of high-quality (AA-rated) fixed income investments for which the timing and amounts of maturities match the timing and amounts of the projected benefit payments. • Health care cost trends . The Group’s health care cost trend assumptions are developed based on historical cost data, the near-term outlook, and an assessment of likely long-term trends. At December 31, 2017 , the effect of the indicated decreases or increases in the key assumptions affecting the health care, life insurance plans and Italian severance indemnity ( trattamento di fine rapporto or “TFR”), holding all other assumptions constant, is shown below: Effect on health care and life Effect on the TFR (€ million) 10 basis point / (100 basis point for TFR) decrease in discount rate 30 54 10 basis point / (100 basis point for TFR) increase in discount rate (30 ) (47 ) 100 basis point decrease in health care cost trend rate (45 ) — 100 basis point increase in health care cost trend rate 54 — Refer to Note 19 , Employee benefits liabilities , for additional information on the Group’s OPEB liabilities. Recoverability of non-current assets with definite useful lives Non-current assets with definite useful lives include property, plant and equipment, intangible assets and assets held for sale. Intangible assets with definite useful lives mainly consist of capitalized development expenditures primarily related to the NAFTA and EMEA segments. The Group periodically reviews the carrying amount of non-current assets with definite useful lives when events or circumstances indicate that an asset may be impaired. The recoverability of non-current assets with definite useful lives is based on the estimated future cash flows, using the Group’s current business plan, of the cash generating units to which the assets relate. The global automotive industry is experiencing significant change as a result of evolving regulatory requirements for fuel efficiency, greenhouse gas emissions and other tailpipe emissions and emerging technology changes, such as autonomous driving. Our business plan could change in response to these evolving requirements and emerging technologies, which may result in changes to our estimated future cash flows and could affect the recoverability of our non-current assets with definite useful lives. Any change in recoverability would be accounted for at the time such change to the business plan occurs. For the years ended December, 31, 2017, 2016 and 2015, the impairment tests performed compared the carrying amount of the assets included in the respective CGUs to their value in use and was determined using a discounted cash flow methodology. The value in use of the CGUs, which was based primarily on unobservable inputs, was determined using pre-tax estimated future cash flows attributable to the CGUs that were discounted using a pre-tax discount rate reflecting current market assessments of the time value of money and the risks specific to the CGUs. During the year ended December 31, 2017 , impairment losses totaling € 229 million were recognized. The most significant components of this impairment loss were in EMEA, related to changes in the global product portfolio, and in LATAM, related to product portfolio changes. It was determined that the carrying amount of the CGUs exceeded their value in use and accordingly an impairment charge of €142 million was recognized in EMEA and €56 million in LATAM. In addition, during the second quarter of 2017, due to the continued deterioration of the economic conditions in Venezuela, an impairment test, which compared the carrying amount of certain of FCA Venezuela's assets to their fair value using a market approach, resulted in impairment losses of €21 million . During the year ended December 31, 2016, impairment losses totaling €195 million were recognized. The most significant component of this impairment loss related to the impairment of capitalized development expenditures for the locally produced Fiat Viaggio and Ottimo vehicles as a result of the Group's capacity realignment to SUV production in China. It was determined that the carrying amount of the CGUs exceeded the capitalized development expenditures' value in use which resulted in an impairment charge of € 90 million. In addition, due to the continued deterioration of the economic conditions in Venezuela, an impairment test which compared the carrying amount of certain of FCA Venezuela's assets to their fair value using a market approach, resulted in an impairment charge of € 43 million. During the year ended December 31, 2015, impairment losses totaling € 713 million were recognized. The most significant component of this impairment loss related to the decision taken by the Group during the fourth quarter of 2015 to realign a portion of its manufacturing capacity in the NAFTA region, as part of the plan to improve NAFTA margins and to better meet market demand for Ram pickup trucks and Jeep vehicles within the Group's existing plant infrastructure. The approval of this plan was deemed to be an indicator of impairment for certain of our vehicle platform CGUs due to the significant changes to the extent to which the assets are expected to be used. It was determined that the carrying amount of the CGUs exceeded their value in use and an impairment charge of € 598 million was recorded for the year ended December 31, 2015, of which € 422 million related to tangible asset impairments and € 176 million related to the impairment of capitalized development expenditures. Recoverability of Goodwill and Intangible assets with indefinite useful lives In accordance with IAS 36 - Impairment of Assets , goodwill and intangible assets with indefinite useful lives are not amortized and are tested for impairment annually or more frequently if facts or circumstances indicate that the asset may be impaired. Goodwill and intangible assets with indefinite useful lives are allocated to operating segments or to CGUs within the operating segments. The impairment test is performed by comparing the carrying amount (which mainly comprises property, plant and equipment, goodwill, brands and capitalized development expenditures) and the recoverable amount of each CGU or group of CGUs to which Goodwill has been allocated. The recoverable amount of a CGU is the higher of its fair value less costs of disposal and its value in use. The balance of Goodwill and intangible assets with indefinite useful lives recognized by the Group primarily relates to the acquisition of FCA US. Goodwill has been allocated to the NAFTA, EMEA, APAC and LATAM operating segments. The assumptions used in the impairment test represent management’s best estimate for the period under consideration. The estimate of the recoverable amount, for purposes of performing the annual impairment test for each of the operating segments, was determined using fair value less costs of disposal for the year ended December 31, 2017 and was based on the following assumptions: • The expected future cash flows covering the period from 2018 through 2022. These expected cash flows reflect the current expectations regarding economic conditions and market trends as well as the Group’s initiatives for the period 2018 to 2022. These cash flows relate to the respective CGUs in their condition when preparing the financial statements and exclude the estimated cash flows that might arise from restructuring plans or other structural changes. Volumes and sales mix used for estimating the future cash flow are based on assumptions that are considered reasonable and sustainable and represent the best estimate of expected conditions regarding market trends and segment, brand and model share for the respective operating segment over the period considered. With regards to the LATAM operating segment, expected future cash flows also include the extension of tax benefits and other government grants to the extent such events are considered probable. • The expected future cash flows include a normalized terminal period to estimate the future result beyond the time period explicitly considered which incorporates a long-term growth rate assumption of 2 percent. • Post-tax cash flows have been discounted using a post-tax discount rate which reflects the current market assessment of the time value of money for the period being considered and the risks specific to the operating segment and cash flows under consideration. The Weighted Average Cost of Capital (“WACC”) ranged from approximately 12.3 percent to approximately 18.6 percent. The WACC was calculated using the Capital Asset Pricing Model technique. The value estimated as described above was determined to be in excess of the book value of the net capital employed for each operating segment to which Goodwill has been allocated. As such, no impairment charges were recognized for Goodwill and Intangible assets with indefinite useful lives for the year ended December 31, 2017 . There were no impairment charges resulting from the impairment tests performed for the years ended December 31, 2016 and 2015 . Recoverability of deferred tax assets Deferred tax assets are recognized to the extent that it is probable that sufficient taxable profit will be available to allow the benefit of part or all of the deferred tax assets to be utilized. The recoverability of deferred tax assets is dependent on the Group’s ability to generate sufficient future taxable income in the period in which it is assumed that the deductible temporary differences reverse and tax losses carried forward can be utilized. In making this assessment, the Group considers future taxable income arising on the most recent budgets and plans, prepared by using the same criteria described for testing the impairment of assets and goodwill. Moreover, the Group estimates the impact of the reversal of taxable temporary differences on earnings and it also considers the period over which these assets could be recovered. The estimates and assumptions are subject to uncertainty especially as it relates to future performance in Latin America and the Eurozone. Therefore changes in current estimates due to unanticipated events could have a significant impact on our Consolidated Financial Statements. Sales incentives The Group records the estimated cost of sales incentive programs offered to dealers and consumers as a reduction to revenue at the time of sale to the dealer. This estimated cost represents the incentive programs offered to dealers and consumers, as well as the expected modifications to these programs in order to facilitate sales of the dealer inventory. Subsequent adjustments to sales incentive programs related to vehicles previously sold to dealers are recognized as an adjustment to Net revenues in the period the adjustment is determinable. The Group uses price discounts to adjust vehicle pricing in response to a number of market and product factors, including pricing actions and incentives offered by competitors, economic conditions, the amount of excess industry production capacity, the intensity of market competition, consumer demand for the product and the desire to support promotional campaigns. The Group may offer a variety of sales incentive programs at any given point in time, including cash offers to dealers and consumers and subvention programs offered to customers, or lease subsidies, which reduce the retail customer’s monthly lease payment or cash due at the inception of the financing arrangement, or both. Sales incentive programs are generally brand, model and region specific for a defined period of time. Multiple factors are used in estimating the future incentive expense by vehicle line including the current incentive programs in the market, planned promotional programs and the normal incentive escalation incurred as the model year ages. The estimated incentive rates are reviewed monthly and changes to planned rates are adjusted accordingly, thus impacting revenues. As there are a multitude of inputs affecting the calculation of the estimate for sales incentives, an increase or decrease of any of these variables could have a significant effect on Net revenues. Product warranties, recall campaigns and product liabilities The Group establishes reserves for product warranties at the time the sale is recognized. The Group issues various types of product warranties under which the performance of products delivered is generally guaranteed for a certain period or term. The accrual for product warranties includes the expected costs of warranty obligations imposed by law or contract, as well as the expected costs for policy coverage, recall actions and buyback commitments. The estimated future costs of these actions are principally based on assumptions regarding the lifetime warranty costs of each vehicle line and each model year of that vehicle line, as well as historical claims experience for the Group’s vehicles. In addition, the number and magnitude of additional service actions expected to be approved and policies related to additional service actions are taken into consideration. Due to the uncertainty and potential volatility of these estimated factors, changes in the assumptions used could materially affect the results of operations. The Group periodically initiates voluntary service and recall actions to address various customer satisfaction as well as safety and emissions issues related to vehicles sold. Included in the reserve is the estimated cost of these service and recall actions. In NAFTA, we accrue estimated costs for recalls at the time of sale, which are based on historical claims experience as well as an additional actuarial analysis that gives greater weight to the more recent calendar year trends in recall campaign activity. In other regions and sectors, however, there generally is not sufficient historical data to support the application of an actuarial-based estimation technique. As a result, estimated recall costs for the other regions and sectors are accrued at the time when they are probable and reasonably estimable, which typically occurs once a specific recall campaign is approved and is announced. Estimates of the future costs of these actions are inevitably imprecise due to numerous uncertainties, including the enactment of new laws and regulations, the number of vehicles affected by a service or recall action and the nature of the corrective action. It is reasonably possible that the ultimate cost of these service and recall actions may require the Group to make expenditures in excess of (or less than) established reserves over an extended period of time and in a range of amounts that cannot be reasonably estimated. The estimate of warranty and additional service and recall action obligations is periodically reviewed during the year. Experience has shown that initial data for any given model year can be volatile; therefore, our process relies upon long-term historical averages until sufficient data is available. As actual experience becomes available, it is used to modify the historical averages to ensure that the forecast is within the range of likely outcomes. Resulting accruals are then compared with current spending rates to ensure that the balances are adequate to meet expected future obligations. In addition, the Group makes provisions for estimated product liability costs arising from property damage and personal injuries including wrongful death, and potential exemplary or punitive damages alleged to be the result of product defects. By nature, these costs can be infrequent, difficult to predict and have the potential to vary significantly in amount. The valuation of the reserve is actuarially determined on an annual basis based on, among other factors, the number of vehicles sold and product liability claims incurred. Costs associated with these provisions are recorded in the Consolidated Income Statement and any subsequent adjustments are recorded in the period in which the adjustment is determined. Litigation Various legal proceedings, claims and governmental investigations are pending against the Group on a wide range of topics, including vehicle safety, emissions and fuel economy, competition, tax and securities laws, labor, dealer, supplier and other contractual relationships, intellectual property rights, product warranties and environmental matters. Some of these proceedings allege defects in specific component parts or systems (including airbags, seats, seat belts, brakes, ball joints, transmissions, engines and fuel systems) in various vehicle models or allege general design defects relating to vehicle handling and stability, sudden unintended movement or crashworthiness. These proceedings seek recovery for damage to property, personal injuries or wrongful death and in some cases include a claim for exemplary or punitive damages. Adverse decisions in one or more of these proceedings could require the Group to pay substantial damages, or undertake service actions, recall campaigns or other costly actions. Litigation is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance. Moreover, the cases and claims against the Group are often derived from complex legal issues which are subject to differing degrees of uncertainty, including the facts and circumstances of each particular case, the manner in which the applicable law is likely to be interpreted and applied and the jurisdiction and the different laws involved. An accrual is established in connection with pending or threatened litigation if it is probable there will be an outflow of funds and when the amount can be reasonably estimated. If an outflow of funds becomes probable, but the amount cannot be estimated, the matter is disclosed in the notes to the Consolidated Financial Statements. Since these accruals represent estimates, the resolution of some of these matters could require the Group to make payments in excess of the amounts accrued or may require the Group to make payments in an amount or range of amounts that could not be reasonably estimated. The Group monitors the status of pending legal procedures and consults with experts on legal and tax matters on a regular basis. As such, the provisions for the Group’s legal proceedings and litigation may vary as a result of future developments in pending matters. |
New standards and amendments effective from January 1, 2017 | New standards and amendments effective from January 1, 2017 The following new standards and amendments applicable from January 1, 2017 were adopted by the Group: • Amendments to IAS 12 - Income Taxes that clarify how to account for deferred tax assets related to debt instruments measured at fair value. There was no effect to our Consolidated Financial Statements from the adoption of these amendments. • Amendments to IAS 7 - Statement of Cash Flows introducing additional disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities. The required disclosures have been included in Note 29 , Explanatory notes to the Consolidated Statement of Cash Flows . • Amendments to IFRS 12 - Disclosure of Interests in Other Entities, included within the Annual Improvements to IFRS Standards 2014–2016 Cycle. There was no effect to our Consolidated Financial Statements from the adoption of these amendments. |
New standards, amendments and interpretations not yet effective | New standards, amendments and interpretations not yet effective The following new standards and amendments were issued by the IASB. We will comply with the relevant guidance no later than their respective effective dates: • IFRS 15 – Revenue from contracts with customers (“IFRS 15”), which was issued by the IASB in May 2014 and amended in September 2015 and has an effective date from January 1, 2018, the Group will adopt the provisions of IFRS 15 and all its amendments using the modified retrospective method with a cumulative adjustment to equity as of January 1, 2018. The standard requires a company to recognize revenue upon transfer of control of goods or services to a customer at an amount that reflects the consideration it expects to receive using a five-step process. The new standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The majority of our revenue will continue to be recognized in a manner consistent with accounting guidance in prior years with the exception of certain GDP vehicles as well as shipping and handling activities that occur after control of the vehicle passes to the customer. Under the new standard, a GDP vehicle sale that contains no option to repurchase or includes a put option for which the customer does not have a significant economic incentive to exercise will be recognized as revenue when control transfers upon shipment of the vehicles, rather than treated as an operating lease in accordance with prior guidance. Shipping and handling activities, when arranged by FCA after control of the vehicle passes to the customer, will be a separate performance obligation in the vehicle sale arrangement for which control passes when the shipping activities are complete. Under current guidance, these activities are not considered a separately identifiable component from the vehicle. The total impact of the cumulative adjustment to equity as of January 1, 2018 is expected to be less than €50 million , and the impact to the Group’s Net profit is expected to be immaterial on an ongoing basis. • In July 2014, the IASB issued IFRS 9 - Financial Instruments (“IFRS 9”). The standard is effective for financial years beginning on January 1, 2018. IFRS 9 introduces improvements in the accounting requirements for classification and measurement of financial assets, for impairment of financial assets and for hedge accounting. The Group will apply practical expedients permitted by the standard and not restate prior periods. For hedge accounting, the Group will apply the standard prospectively. ◦ Financial assets will be classified and measured on the basis of the Group’s business model and characteristics of the financial asset’s cash flows. A financial asset is initially measured either at “amortized cost”, at “fair value through other comprehensive income” or at “fair value through profit or loss”. At the date of initial application of IFRS 9, except for certain receivables managed solely with the intent to be transferred to third parties before maturity that are measured at fair value through profit or loss and certain investments in other companies designated as measured at fair value through other comprehensive income, the measurement of the Group’s financial assets under IFRS 9 has not changed compared to IAS 39. The classification of financial liabilities under IFRS 9 is unchanged compared with the current accounting requirements of IAS 39. ◦ The new impairment model requires the recognition of impairment provisions based on expected credit losses rather than only incurred losses as is the case under IAS 39. The expected credit losses will be recorded either on a 12-month or lifetime basis. The Group will apply the simplified approach and record lifetime expected losses on trade and other receivables. For receivables from financing activities the Group will apply the general approach recording the credit losses either on a 12-month or lifetime basis. ◦ The new hedge accounting rules will align the accounting for hedge instruments more closely with the Group’s risk management practices. Generally, under IFRS 9 more hedge relationships will be eligible for hedge accounting, as the standard introduces a more principles-based approach. The Group has undertaken an assessment of its IAS 39 hedge relationships against the requirements of IFRS 9 and has concluded that the Group’s current hedge relationships will qualify as continuing hedges upon the adoption of IFRS 9. The new standard also introduces expanded disclosure requirements and changes in presentation. Overall, the total impact of the cumulative adjustment to equity as of January 1, 2018 and the impact to the Group’s net profit is expected to be immaterial. • In January 2016, the IASB issued IFRS 16 - Leases (“IFRS 16”) which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract and replaces the previous leases standard, IAS 17 - Leases . IFRS 16, which is not applicable to service contracts, but only applicable to leases or lease components of a contract, defines a lease as a contract that conveys to the customer (lessee) the right to use an asset for a period of time in exchange for consideration. IFRS 16 eliminates the classification of leases for the lessee as either operating leases or finance leases as required by IAS 17 and instead, introduces a single lessee accounting model whereby a lessee is required to recognize assets and liabilities for all leases with a term that is greater than 12 months, unless the underlying asset is of low value, and to recognize depreciation of lease assets separately from interest on lease liabilities in the income statement. As IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17, a lessor will continue to classify its leases as operating leases or finance leases and to account for those two types of leases differently. IFRS 16 is effective from January 1, 2019 and we are continuing with our implementation and assessment of the impact of the adoption of this standard on our Consolidated Financial Statements. • In June 2016, the IASB issued amendments to IFRS 2 - Share-based Payments , clarifying how to account for certain types of share-based payment transactions. The amendments, which were developed through IFRIC, provide requirements on the accounting for (i) the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments, (ii) share-based payment transactions with a net settlement feature for withholding tax obligations and (iii) a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled. The Company will adopt these amendments prospectively from January 1, 2018. We do not expect a material impact to our Consolidated Financial Statements or disclosures upon adoption of the amendments. • In September 2016, the IASB issued “Applying IFRS 9, Financial Instruments with IFRS 4, Insurance Contracts ” (Amendments to IFRS 4). The amendments provide two options for entities that issue insurance contracts within the scope of IFRS 4: (i) an option that permits entities to reclassify, from profit or loss to other comprehensive income, some of the income or expenses arising from designated financial assets (the “overlay approach”) and (ii) an optional temporary exemption from applying IFRS 9 for entities whose predominant activity is issuing contracts within the scope of IFRS 4 (the “deferral approach”). We have completed our evaluation and concluded that there is no impact from these amendments on our Consolidated Financial Statements. • In December 2016, the IASB issued Annual Improvements to IFRS Standards 2014–2016 Cycle which included amendments to IAS 28 - Investments in Associates and Joint Ventures (effective January 1, 2018). The amendments clarify, correct or remove redundant wording in the related standard and are not expected to have a material impact to our Consolidated Financial Statements or disclosures upon adoption of the amendments. • In December 2016, the IASB issued IFRIC Interpretation 22 - Foreign Currency Transactions and Advance Consideration which addresses the exchange rate to use in transactions that involve advance consideration paid or received in a foreign currency. The interpretation is effective January 1, 2018. We do not expect a material impact to our Consolidated Financial Statements upon adoption of the interpretation. • In May 2017, the IASB issued IFRS 17 - Insurance Contracts (“IFRS 17”) , which replaces IFRS 4 Insurance Contracts . IFRS 17 requires all insurance contracts to be accounted for in a consistent manner and insurance obligations to be accounted for using current values, instead of historical cost. The new standard requires current measurement of the future cash flows and the recognition of profit over the period that services are provided under the contract. IFRS 17 also requires entities to present insurance service results (including presentation of insurance revenue) separately from insurance finance income or expenses, and requires an entity to make an accounting policy choice of whether to recognize all insurance finance income or expenses in profit or loss or to recognize some of those income or expenses in other comprehensive income. The standard is effective for annual periods beginning on or after January 1, 2021 with earlier adoption permitted. We are currently evaluating the impact of adoption on our Consolidated Financial Statements. • In June 2017, the IASB issued IFRIC Interpretation 23 - Uncertainty over Income Tax Treatment , (the “Interpretation”), which clarifies application of recognition and measurement requirements in IAS 12 - Income Taxes when there is uncertainty over income tax treatments. The Interpretation specifically addresses the following: (i) whether an entity considers uncertain tax treatments separately, (ii) the assumptions an entity makes about the examination of tax treatments by taxation authorities, (iii) how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates and (iv) how an entity considers changes in facts and circumstances. The Interpretation does not add any new disclosure requirements, however it highlights the existing requirements in IAS 1 - Presentation of Financial Statements , related to disclosure of judgments, information about the assumptions made and other estimates and disclosures of tax-related contingencies within IAS 12 - Income Taxes . The Interpretation is applicable for annual reporting periods beginning on or after January 1, 2019 and it provides a choice of two transition approaches: (i) retrospective application using IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors , only if the application is possible without the use of hindsight, or (ii) retrospective application with the cumulative effect of the initial application recognized as an adjustment to equity on the date of initial application and without restatement of the comparative information. The date of initial application is the beginning of the annual reporting period in which an entity first applies this Interpretation. We are currently evaluating the implementation and the impact of adoption of the interpretation on our Consolidated Financial Statements. • In October 2017, the IASB issued Prepayment Features with Negative Compensation (Amendments to IFRS 9) , allowing companies to measure particular prepayable financial assets with so-called negative compensation at amortized cost or at fair value through other comprehensive income if a specified condition is met, instead of at fair value through profit or loss, effective January 1, 2019. We are currently evaluating the impact of adoption on our Consolidated Financial Statements. • In October 2017, the IASB issued Long-term interests in associates and joint ventures (Amendments to IAS 28) , which clarifies that companies account for long-term interests in an associate or joint venture, to which the equity method is not applied, using IFRS 9, effective January 1, 2019. We are currently evaluating the impact of adoption on our Consolidated Financial Statements. • In December 2017, the IASB issued the Annual Improvements to IFRSs 2015-2017 , a series of amendments to IFRSs in response to issues raised mainly on IFRS 3 - Business Combinations , which clarifies that a company remeasure its previously held interest in a joint operation when it obtains control of the business, on IFRS 11 - Joint Arrangements , a company does not remeasure its previously held interest in a joint operation when it obtains joint control of the business, on IAS 12 - Income Taxes , which clarifies that all income tax consequences of dividends (i.e. distribution of profits) should be recognized in profit or loss, regardless of how the tax arises, and on IAS 23 - Borrowing Costs , which clarifies that a company treats as part of general borrowing any borrowing originally made to develop an asset when the asset is ready for its intended use or sale. The effective date of the amendments is January 1, 2019. We are currently evaluating the impact of adoption on our Consolidated Financial Statements. • In February 2018, the IASB issued Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) which specifies how companies determine pension expenses when changes to a defined benefit pension plan occur. IAS 19 Employee Benefits specifies how a company accounts for a defined benefit plan. When a change to a plan-an amendment, curtailment or settlement-takes place, IAS 19 requires a company to remeasure its net defined benefit liability or asset. The amendments require a company to use the updated assumptions from this remeasurement to determine current service cost and net interest for the remainder of the reporting period after the change to the plan. The amendments are effective on or after 1 January 2019. We are currently evaluating the impact of adoption on our Consolidated Financial Statements. |
Basis of presentation (Tables)
Basis of presentation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Disclosure of principal exchange rates used to translate other currencies | The principal exchange rates used to translate other currencies into Euro were as follows: 2017 2016 2015 Average At December 31 Average At December 31 Average At December 31 U.S. Dollar (U.S.$) 1.130 1.199 1.107 1.054 1.109 1.089 Brazilian Real (BRL) 3.605 3.973 3.857 3.431 3.699 4.312 Chinese Renminbi (CNY) 7.629 7.804 7.352 7.320 6.972 7.061 Canadian Dollar (CAD) 1.465 1.504 1.466 1.419 1.418 1.512 Mexican Peso (MXN) 21.329 23.661 20.664 21.772 17.611 18.915 Polish Zloty (PLN) 4.257 4.177 4.363 4.410 4.184 4.264 Argentine Peso (ARS) 18.683 22.595 16.327 16.707 10.271 14.136 Pound Sterling (GBP) 0.877 0.887 0.819 0.856 0.726 0.734 Swiss Franc (CHF) 1.112 1.170 1.090 1.074 1.068 1.084 |
Disclosure of detailed information about property, plant and equipment | During years ended December 31, 2017 , 2016 and 2015 , assets were depreciated on a straight-line basis over their estimated useful lives using the following rates: Depreciation rates Buildings 3% - 8% Plant, machinery and equipment 3% - 33% Other assets 5% - 33% Land Industrial Plant, machinery and equipment Other Advances and Total (€ million) Gross carrying amount at January 1, 2016 € 900 € 8,108 € 43,908 € 2,734 € 4,086 € 59,736 Additions 6 303 3,330 453 1,617 5,709 Divestitures (11 ) (22 ) (729 ) (70 ) (11 ) (843 ) Translation differences 57 431 1,749 120 225 2,582 Transfer to Assets held for sale — — (92 ) (10 ) — (102 ) Other changes (4 ) 110 2,223 (4 ) (2,269 ) 56 At December 31, 2016 948 8,930 50,389 3,223 3,648 67,138 Additions 20 256 3,768 187 1,428 5,659 Divestitures (11 ) (17 ) (1,163 ) (88 ) (4 ) (1,283 ) Change in the scope of consolidation (2 ) (104 ) (618 ) (21 ) (5 ) (750 ) Translation differences (71 ) (639 ) (3,167 ) (301 ) (325 ) (4,503 ) Other changes 1 68 1,844 3 (1,930 ) (14 ) At December 31, 2017 885 8,494 51,053 3,003 2,812 66,247 Accumulated depreciation and impairment losses at January 1, 2016 44 2,782 28,000 1,443 13 32,282 Depreciation — 309 3,582 307 — 4,198 Divestitures (5 ) (12 ) (697 ) (63 ) (1 ) (778 ) Impairment losses and asset write-offs — 44 25 1 3 73 Translation differences 2 93 875 64 1 1,035 Transfer to Assets held for sale — — (77 ) (8 ) — (85 ) Other changes — (3 ) (14 ) — (1 ) (18 ) At December 31, 2016 41 3,213 31,694 1,744 15 36,707 Depreciation — 313 3,440 279 — 4,032 Divestitures (2 ) (11 ) (1,126 ) (78 ) — (1,217 ) Impairment losses and asset write-offs 1 22 83 6 7 119 Change in the scope of consolidation (1 ) (76 ) (287 ) (18 ) — (382 ) Translation differences (1 ) (163 ) (1,693 ) (152 ) (1 ) (2,010 ) Other changes (1 ) — (29 ) 19 (5 ) (16 ) At December 31, 2017 37 3,298 32,082 1,800 16 37,233 Carrying amount at December 31, 2016 € 907 € 5,717 € 18,695 € 1,479 € 3,633 € 30,431 Carrying amount at December 31, 2017 € 848 € 5,196 € 18,971 € 1,203 € 2,796 € 29,014 |
Disclosure of sensitivity analysis for actuarial assumptions | At December 31, 2017 , the effect of the indicated decreases or increases in the key assumptions affecting the health care, life insurance plans and Italian severance indemnity ( trattamento di fine rapporto or “TFR”), holding all other assumptions constant, is shown below: Effect on health care and life Effect on the TFR (€ million) 10 basis point / (100 basis point for TFR) decrease in discount rate 30 54 10 basis point / (100 basis point for TFR) increase in discount rate (30 ) (47 ) 100 basis point decrease in health care cost trend rate (45 ) — 100 basis point increase in health care cost trend rate 54 — At December 31, 2017 , the effect on the defined benefit obligation of the indicated decrease or increase in the discount rate holding all other assumptions constant was as follows: Effect on pension benefit ( € million) 10 basis point decrease in discount rate 306 10 basis point increase in discount rate (299 ) |
Scope of consolidation (Tables)
Scope of consolidation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in principal subsidiaries | The following table sets forth a list of the principal subsidiaries of FCA, which are grouped according to each of our reportable segments as well as our holding and other companies: Name Country Percentage NAFTA FCA US LLC USA (Delaware) 100.00 FCA Canada Inc. Canada 100.00 FCA Mexico, S.A. de C.V. Mexico 100.00 LATAM FCA Fiat Chrysler Automoveis Brasil LTDA Brazil 100.00 FCA Automobiles Argentina S.A. Argentina 100.00 Banco Fidis S.A. Brazil 100.00 APAC Chrysler Group (China) Sales Limited People’s Republic of China 100.00 FCA Japan Ltd. Japan 100.00 FCA Australia Pty Ltd. Australia 100.00 FCA Automotive Finance Co. Ltd. People’s Republic of China 100.00 EMEA FCA Italy S.p.A. Italy 100.00 FCA Melfi S.r.l. Italy 100.00 FCA Poland Spólka Akcyjna Poland 100.00 FCA Powertrain Poland Sp. z o.o. Poland 100.00 FCA Serbia d.o.o. Kragujevac Serbia 66.67 FCA Germany AG Germany 100.00 FCA France S.A. France 100.00 Fiat Chrysler Automobiles UK Ltd. United Kingdom 100.00 Fiat Chrysler Automobiles Spain S.A. Spain 100.00 Fidis S.p.A. Italy 100.00 Maserati Maserati S.p.A. Italy 100.00 Maserati (China) Cars Trading Co. Ltd. People's Republic of China 100.00 Maserati North America Inc. USA (Delaware) 100.00 Components Magneti Marelli S.p.A. Italy 99.99 (1) Automotive Lighting LLC USA (Delaware) 100.00 Automotive Lighting Reutlingen GmbH Germany 99.99 Teksid S.p.A. Italy 100.00 Comau S.p.A. Italy 100.00 COMAU LLC USA (Delaware) 100.00 Holding Companies and Other Companies FCA North America Holdings LLC USA (Delaware) 100.00 Fiat Chrysler Finance S.p.A. Italy 100.00 Fiat Chrysler Finance Europe S.A. Luxembourg 100.00 __________________________ (1) FCA holds 100 percent of the voting interest in Magneti Marelli S.p.A. |
Disclosure of non-current assets or disposal groups classified as held for sale | The following table summarizes the assets and liabilities of Itedi S.p.A that were classified as held for sale at December 31, 2016: At December 31, 2016 (€ million) Assets classified as held for sale Goodwill € 54 Other intangible assets 7 Property, plant and equipment 17 Trade receivables 25 Other 17 Total Assets held for sale € 120 Liabilities classified as held for sale Provisions € 38 Trade payables 19 Debt and Other 40 Total Liabilities held for sale € 97 |
Disclosure of effects of changes in parent's ownership interest in subsidiary that do not result in loss of control on equity attributable to owners of parent | The Ferrari IPO was accounted for as an equity transaction, with the effects on Equity attributable to owners of the parent being as follows: At October 26, 2015 (€ million) Consideration received € 866 Less: Carrying amount of equity interest sold (7 ) Effect on Equity attributable to owners of the parent € 873 |
Disclosure of operating results of discontinued operations | The following table summarizes the operating results of Ferrari that were excluded from the Consolidated Income Statement for the year end December 31, 2015: For the year ended December 31, 2015 (1) (€ million) Net revenues € 2,596 Expenses 2,152 Net financial expenses/(income) 16 Profit before taxes from discontinued operations 428 Tax expense 144 Profit from discontinued operations, net of tax € 284 ________________________________ (1) Amounts presented are not representative of the income statement and the financial position of Ferrari on a stand-alone basis; amounts are net of transactions between Ferrari and other companies of the Group. |
Net revenues (Tables)
Net revenues (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
Schedule of Revenue by Type | Net revenues were as follows: Years ended December 31 2017 2016 2015 (€ million) Revenues from: Sales of goods € 107,219 € 107,497 € 107,095 Services provided 2,217 2,237 1,600 Contract revenues 929 737 1,309 Lease installments from assets sold with a buy-back commitment 421 405 403 Interest income of financial services activities 148 142 188 Total Net revenues € 110,934 € 111,018 € 110,595 |
Schedule of Revenue by Geographical Location | Net revenues attributed by geographical area were as follows: Years ended December 31 2017 2016 2015 (€ million) Net revenues in: North America € 68,374 € 71,047 € 71,979 Italy 8,755 8,478 7,165 Brazil 6,406 4,953 5,103 China 4,240 4,493 4,720 Germany 3,990 4,160 3,794 France 3,487 3,266 2,852 Argentina 1,817 1,409 1,175 Spain 1,569 1,467 1,254 Turkey 1,456 1,705 1,682 United Kingdom 1,366 1,632 1,744 Japan 816 713 625 Australia 497 473 936 Other countries 8,161 7,222 7,566 Total Net revenues € 110,934 € 111,018 € 110,595 The following table summarizes the non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) attributed to certain geographic areas: At December 31 2017 2016 (€ million) North America € 34,099 € 35,833 Italy 12,458 12,558 Brazil 5,137 6,310 Poland 1,151 1,117 Serbia 639 660 Other countries 2,536 2,582 Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) € 56,020 € 59,060 |
Research and development costs
Research and development costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
Disclosure of research and development costs | Research and development costs were as follows: Years ended December 31 2017 2016 2015 (€ million) Research and development expenditures expensed € 1,696 € 1,661 € 1,449 Amortization of capitalized development expenditures 1,424 1,492 1,194 Impairment and write-off of capitalized development expenditures 110 121 221 Total Research and development costs € 3,230 € 3,274 € 2,864 |
Net financial expenses (Tables)
Net financial expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
Disclosure of detailed information about finance income / (cost) | The following table summarizes the Group’s financial income and expenses included within the Net financial expenses line item: Years ended December 31 2017 2016 2015 (€ million) Interest income and other financial income € 182 € 226 € 365 Financial expenses: Interest expense and other financial expenses: 1,128 1,500 2,084 Interest expense on notes 568 749 1,112 Interest expense on borrowings from bank 372 472 512 Other interest cost and financial expenses 188 279 460 Write-down of financial assets 23 76 43 Losses on disposal of securities 5 6 28 Net interest expense on employee benefits provisions 310 348 350 Total Financial expenses 1,466 1,930 2,505 Net expenses from derivative financial instruments and exchange rate differences 185 312 226 Total Financial expenses and Net expenses from derivative financial instruments and exchange rate differences 1,651 2,242 2,731 Net Financial expenses € 1,469 € 2,016 € 2,366 |
Tax expense (Tables)
Tax expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Summary of tax expense | The following table summarizes Tax expense: Years ended December 31 2017 2016 2015 (€ million) Current tax expense € 901 € 869 € 445 Deferred tax expense/(benefit) 1,773 391 (277 ) Tax expense/(benefit) relating to prior periods (23 ) 32 (2 ) Total Tax expense € 2,651 € 1,292 € 166 |
Reconciliation between theoretical income taxes and income taxes recognized | Years ended December 31 2017 2016 2015 (€ million) Theoretical income taxes € 1,186 € 621 € 51 Tax effect on: Recognition and utilization of previously unrecognized deferred tax assets (164 ) (42 ) (20 ) Permanent differences (397 ) (194 ) (36 ) Tax credits (23 ) (340 ) (238 ) Deferred tax assets not recognized and write-downs 1,092 531 303 Differences between foreign tax rates and the theoretical applicable tax rate and tax holidays 924 587 70 Taxes relating to prior years (23 ) 32 (2 ) Tax rate changes (22 ) — — Withholding tax 83 61 49 Other differences 0 (8 ) (36 ) Total Tax expense, excluding IRAP 2,656 1,248 141 Effective tax rate 43.0 % 40.2 % 54.4 % IRAP (current and deferred) (5 ) 44 25 Total Tax expense € 2,651 € 1,292 € 166 |
Significant components of deferred tax assets and liabilities and their changes | The significant components of Deferred tax assets and liabilities and their changes during the years ended December 31, 2017 and 2016 were as follows: At January 1, 2017 Recognized in Consolidated Income Statement Recognized in Equity Translation At December 31, 2017 (€ million) Deferred tax assets arising on: Provisions € 6,149 € (1,742 ) € — € (559 ) € 3,848 Provision for employee benefits 2,851 (364 ) (16 ) (643 ) 1,828 Intangible assets 211 (19 ) — — 192 Impairment of financial assets 195 (25 ) — (1 ) 169 Inventories 251 3 — (2 ) 252 Allowances for doubtful accounts 117 19 — (14 ) 122 Other 385 (13 ) (14 ) 29 387 Total Deferred tax assets € 10,159 € (2,141 ) € (30 ) € (1,190 ) € 6,798 Deferred tax liabilities arising on: Accelerated depreciation € (2,770 ) € 430 € — € 449 € (1,891 ) Capitalized development assets (2,742 ) 399 — 227 (2,116 ) Other Intangible assets and Intangible assets with indefinite useful lives (1,493 ) 238 — 406 (849 ) Provision for employee benefits (14 ) (30 ) — (6 ) (50 ) Other (331 ) 4 (10 ) 23 (314 ) Total Deferred tax liabilities € (7,350 ) € 1,041 € (10 ) € 1,099 € (5,220 ) Deferred tax asset arising on tax loss carry-forwards € 4,444 € 522 € — € (248 ) € 4,718 Unrecognized deferred tax assets (3,748 ) (1,195 ) 9 254 (4,680 ) Total Net deferred tax assets € 3,505 € (1,773 ) € (31 ) € (85 ) € 1,616 At January 1, 2016 Recognized in Recognized in Equity Transfer to assets held for sale Translation At December 31, 2016 (€ million) Deferred tax assets arising on: Provisions € 6,028 € (4 ) € — € (6 ) € 131 € 6,149 Provision for employee benefits 2,866 (11 ) (263 ) — 259 2,851 Intangible assets 249 (42 ) — — 4 211 Impairment of financial assets 155 47 — (2 ) (5 ) 195 Inventories 243 6 — — 2 251 Allowances for doubtful accounts 87 21 — (2 ) 11 117 Other 691 (270 ) 64 — (100 ) 385 Total Deferred tax assets € 10,319 € (253 ) € (199 ) € (10 ) € 302 € 10,159 Deferred tax liabilities arising on: Accelerated depreciation € (2,746 ) € (53 ) € — € 1 € 28 € (2,770 ) Capitalized development expenditures (2,376 ) (310 ) — — (56 ) (2,742 ) Other Intangible assets and Intangible assets with indefinite useful lives (1,427 ) 23 — 7 (96 ) (1,493 ) Provision for employee benefits (14 ) — 2 1 (3 ) (14 ) Other (390 ) 67 5 — (13 ) (331 ) Total Deferred tax liabilities € (6,953 ) € (273 ) € 7 € 9 € (140 ) € (7,350 ) Deferred tax asset arising on tax loss carry-forwards € 3,717 € 662 € — € (20 ) € 85 € 4,444 Unrecognized deferred tax assets (3,183 ) (527 ) — 20 (58 ) (3,748 ) Total Net deferred tax assets € 3,900 € (391 ) € (192 ) € (1 ) € 189 € 3,505 Total gross deductible and taxable temporary differences and accumulated tax losses at December 31, 2017 , together with the amounts for which deferred tax assets have not been recognized, analyzed by year of expiration, were as follows: Year of expiration At December 31, 2017 2018 2019 2020 2021 Beyond 2021 Unlimited/ (€ million) Temporary differences and tax losses relating to corporate taxation: Deductible temporary differences € 28,720 € 3,665 € 2,974 € 2,786 € 3,293 € 15,512 € 490 Taxable temporary differences (23,028 ) (2,390 ) (2,304 ) (2,323 ) (2,324 ) (10,390 ) (3,297 ) Tax losses 18,133 147 142 136 155 3,844 13,709 Amounts for which deferred tax assets were not recognized (17,534 ) (640 ) (292 ) (147 ) (649 ) (3,464 ) (12,342 ) Temporary differences and tax losses relating to corporate taxation € 6,291 € 782 € 520 € 452 € 475 € 5,502 € (1,440 ) Temporary differences and tax losses relating to local taxation (i.e. IRAP in Italy): Deductible temporary differences € 9,657 € 1,177 € 761 € 599 € 1,149 € 5,909 € 62 Taxable temporary differences (7,993 ) (691 ) (658 ) (671 ) (681 ) (5,153 ) (139 ) Tax losses 3,715 53 36 33 120 2,902 571 Amounts for which deferred tax assets (4,439 ) (398 ) (157 ) (82 ) (635 ) (2,601 ) (566 ) Temporary differences and tax losses relating to local taxation € 940 € 141 € (18 ) € (121 ) € (47 ) € 1,057 € (72 ) The Group recognizes the amount of Deferred tax assets less the Deferred tax liabilities of the individual companies within Deferred tax assets, where these may be offset. Amounts recognized were as follows: At December 31 2017 2016 (€ million) Deferred tax assets € 2,004 € 3,699 Deferred tax liabilities (388 ) (194 ) Total Net deferred tax assets € 1,616 € 3,505 |
Goodwill and intangible asset46
Goodwill and intangible assets with indefinite useful lives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets [Abstract] | |
Summary of goodwill and intangible assets with indefinite useful lives | Goodwill and intangible assets with indefinite useful lives at December 31, 2017 and 2016 are summarized below: At January 1, 2017 Translation At December 31, 2017 (€ million) Gross amount € 12,299 € (1,449 ) € 10,850 Accumulated impairment losses (482 ) 28 (454 ) Goodwill 11,817 (1,421 ) 10,396 Brands 3,405 (411 ) 2,994 Total Goodwill and intangible assets with indefinite useful lives € 15,222 € (1,832 ) € 13,390 Translation Transfer to Assets held for sale At December 31, 2016 (€ million) Gross amount € 11,966 € 387 € (54 ) € 12,299 Accumulated impairment losses (469 ) (13 ) — (482 ) Goodwill 11,497 374 (54 ) 11,817 Brands 3,293 112 — 3,405 Total Goodwill and intangible assets with indefinite useful lives € 14,790 € 486 € (54 ) € 15,222 |
Summary of allocation of goodwill | The following table summarizes the allocation of Goodwill between FCA's reportable segments: At December 31 2017 2016 (€ million) NAFTA € 8,453 € 9,618 APAC 1,099 1,250 LATAM 529 602 EMEA 253 285 Components 62 62 Total Goodwill € 10,396 € 11,817 |
Other intangible assets (Tables
Other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets [Abstract] | |
Detailed Information About Other Intangible Assets | Externally Internally Patents, Other Total (€ million) Gross carrying amount at January 1, 2016 € 9,262 € 6,487 € 3,120 € 701 € 19,570 Additions 1,546 1,012 490 58 3,106 Divestitures (1 ) (49 ) (80 ) (7 ) (137 ) Translation differences and other changes 265 217 22 87 591 Transfer to Assets held for sale — — — (38 ) (38 ) At December 31, 2016 11,072 7,667 3,552 801 23,092 Additions 1,997 589 356 65 3,007 Divestitures (289 ) (40 ) (16 ) (1 ) (346 ) Translation differences and other changes (967 ) (130 ) (309 ) (61 ) (1,467 ) At December 31, 2017 11,813 8,086 3,583 804 24,286 Accumulated amortization and impairment losses 3,993 3,617 1,583 431 9,624 Amortization 962 530 210 56 1,758 Impairment losses and asset write-offs 29 92 — 1 122 Divestitures — (37 ) (20 ) (6 ) (63 ) Translation differences and other changes 108 86 35 31 260 Transfer to Assets held for sale — — — (31 ) (31 ) At December 31, 2016 5,092 4,288 1,808 482 11,670 Amortization 829 595 371 61 1,856 Impairment losses and asset write-offs 52 58 — — 110 Divestitures (289 ) (35 ) (10 ) — (334 ) Translation differences and other changes (315 ) (73 ) (140 ) (30 ) (558 ) At December 31, 2017 5,369 4,833 2,029 513 12,744 Carrying amount at December 31, 2016 € 5,980 € 3,379 € 1,744 € 319 € 11,422 Carrying amount at December 31, 2017 € 6,444 € 3,253 € 1,554 € 291 € 11,542 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | During years ended December 31, 2017 , 2016 and 2015 , assets were depreciated on a straight-line basis over their estimated useful lives using the following rates: Depreciation rates Buildings 3% - 8% Plant, machinery and equipment 3% - 33% Other assets 5% - 33% Land Industrial Plant, machinery and equipment Other Advances and Total (€ million) Gross carrying amount at January 1, 2016 € 900 € 8,108 € 43,908 € 2,734 € 4,086 € 59,736 Additions 6 303 3,330 453 1,617 5,709 Divestitures (11 ) (22 ) (729 ) (70 ) (11 ) (843 ) Translation differences 57 431 1,749 120 225 2,582 Transfer to Assets held for sale — — (92 ) (10 ) — (102 ) Other changes (4 ) 110 2,223 (4 ) (2,269 ) 56 At December 31, 2016 948 8,930 50,389 3,223 3,648 67,138 Additions 20 256 3,768 187 1,428 5,659 Divestitures (11 ) (17 ) (1,163 ) (88 ) (4 ) (1,283 ) Change in the scope of consolidation (2 ) (104 ) (618 ) (21 ) (5 ) (750 ) Translation differences (71 ) (639 ) (3,167 ) (301 ) (325 ) (4,503 ) Other changes 1 68 1,844 3 (1,930 ) (14 ) At December 31, 2017 885 8,494 51,053 3,003 2,812 66,247 Accumulated depreciation and impairment losses at January 1, 2016 44 2,782 28,000 1,443 13 32,282 Depreciation — 309 3,582 307 — 4,198 Divestitures (5 ) (12 ) (697 ) (63 ) (1 ) (778 ) Impairment losses and asset write-offs — 44 25 1 3 73 Translation differences 2 93 875 64 1 1,035 Transfer to Assets held for sale — — (77 ) (8 ) — (85 ) Other changes — (3 ) (14 ) — (1 ) (18 ) At December 31, 2016 41 3,213 31,694 1,744 15 36,707 Depreciation — 313 3,440 279 — 4,032 Divestitures (2 ) (11 ) (1,126 ) (78 ) — (1,217 ) Impairment losses and asset write-offs 1 22 83 6 7 119 Change in the scope of consolidation (1 ) (76 ) (287 ) (18 ) — (382 ) Translation differences (1 ) (163 ) (1,693 ) (152 ) (1 ) (2,010 ) Other changes (1 ) — (29 ) 19 (5 ) (16 ) At December 31, 2017 37 3,298 32,082 1,800 16 37,233 Carrying amount at December 31, 2016 € 907 € 5,717 € 18,695 € 1,479 € 3,633 € 30,431 Carrying amount at December 31, 2017 € 848 € 5,196 € 18,971 € 1,203 € 2,796 € 29,014 |
Disclosure of recognised finance lease as assets by lessee | The total net carrying amount of assets leased under finance lease agreements included in Property, plant and equipment were as follows: At December 31 2017 2016 (€ million) Industrial buildings € 209 € 251 Plant, machinery and equipment 193 602 Total Property, plant and equipment under finance lease € 402 € 853 |
Disclosure of property, plant, and equipment pledged as security | The carrying amounts of Property, plant and equipment of the Group (excluding FCA US) reported as pledged as security for debt are summarized as follows: At December 31 2017 2016 (€ million) Land and industrial buildings pledged as security for debt € 1,031 € 1,239 Plant and machinery pledged as security for debt and other commitments 1,324 698 Other assets pledged as security for debt and other commitments 17 3 Total Property, plant and equipment pledged as security for debt € 2,372 € 1,940 |
Investments accounted for usi49
Investments accounted for using the equity method (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in associates | The following table summarizes the share of profits of equity method investees included within Result from investments: Years ended December 31 2017 2016 2015 (€ million) Joint Ventures € 390 € 291 € 155 Associates 9 7 (27 ) Other 10 15 2 Total Share of the profit of equity method investees € 409 € 313 € 130 The aggregate amounts recognized for the Group’s share in all individually immaterial joint ventures and associates accounted for using the equity method were as follows: Years ended December 31 2017 2016 2015 (€ million) Joint ventures: Profit from continuing operations € 201 € 137 € 31 Net profit 201 137 31 Other comprehensive income/(loss) (105 ) (90 ) (30 ) Total Other comprehensive income € 96 € 47 € 1 Associates: Income/(loss) from continuing operations € 9 € 7 € (27 ) Net income/(loss) 9 7 (27 ) Other comprehensive income/(loss) (3 ) (1 ) 3 Total Other comprehensive income/(loss) € 6 € 6 € (24 ) The following table summarizes Investments accounted for using the equity method: At December 31 2017 2016 (€ million) Joint ventures € 1,866 € 1,680 Associates 94 62 Other 48 51 Total Investments accounted for using the equity method € 2,008 € 1,793 |
Disclosure of interests in joint ventures | The following table summarizes the share of profits of equity method investees included within Result from investments: Years ended December 31 2017 2016 2015 (€ million) Joint Ventures € 390 € 291 € 155 Associates 9 7 (27 ) Other 10 15 2 Total Share of the profit of equity method investees € 409 € 313 € 130 FCA's ownership percentages and the carrying value of investments in joint ventures accounted for under the equity method were as follows: Ownership percentage Investment balance At December 31 At December 31 2017 2016 2017 2016 Joint ventures Ownership percentage (€ million) FCA Bank S.p.A. 50% 50% € 1,178 € 1,044 Tofas-Turk Otomobil Fabrikasi A.S. 37.9% 37.9% 298 302 GAC Fiat Chrysler Automobiles Co. 50% 50% 287 237 Others 103 97 Total € 1,866 € 1,680 The following table summarizes Investments accounted for using the equity method: At December 31 2017 2016 (€ million) Joint ventures € 1,866 € 1,680 Associates 94 62 Other 48 51 Total Investments accounted for using the equity method € 2,008 € 1,793 The aggregate amounts recognized for the Group’s share in all individually immaterial joint ventures and associates accounted for using the equity method were as follows: Years ended December 31 2017 2016 2015 (€ million) Joint ventures: Profit from continuing operations € 201 € 137 € 31 Net profit 201 137 31 Other comprehensive income/(loss) (105 ) (90 ) (30 ) Total Other comprehensive income € 96 € 47 € 1 Associates: Income/(loss) from continuing operations € 9 € 7 € (27 ) Net income/(loss) 9 7 (27 ) Other comprehensive income/(loss) (3 ) (1 ) 3 Total Other comprehensive income/(loss) € 6 € 6 € (24 ) |
Disclosure of reconciliation of summarised financial information of joint venture accounted for using equity method to carrying amount of interest in joint venture | The following tables include summarized financial information relating to FCA Bank: At June 30, 2017 At December 31, 2016 (€ million) Financial assets € 21,867 € 20,201 Of which: Cash and cash equivalents — — Other assets 3,378 3,083 Financial liabilities 21,557 19,887 Other liabilities 1,265 1,159 Equity (100%) 2,423 2,238 Net assets attributable to owners of the parent 2,382 2,199 Group's share of net assets 1,191 1,100 Elimination of unrealized profits and other adjustments (13 ) (56 ) Carrying amount of interest in FCA Bank (1) € 1,178 € 1,044 ________________________ (1) Amounts as at December 31, 2017 and 2016 respectively. Six months ended June 30 Years ended December 31 2017 2016 2015 (€ million) Interest and similar income € 437 € 764 € 729 Interest and similar expenses (147 ) (263 ) (285 ) Income tax expense (70 ) (105 ) (110 ) Profit from continuing operations 190 312 249 Net profit 190 312 249 Net profit attributable to owners of the parent (A) 188 309 248 Other comprehensive income/(loss) attributable to owners of the parent (B) (7 ) (64 ) 29 Total Comprehensive income attributable to owners of the parent (A+B) € 181 € 245 € 277 Group’s share of net profit (1) € 190 € 154 € 124 _____________________________________ (1) Amounts for the years ended December 31, 2017, 2016 and 2015 respectively |
Other financial assets (Tables)
Other financial assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of financial assets [abstract] | |
Disclosure of other financial assets | Other financial assets consisted of the following: At December 31 2017 2016 Note Current Non-current Total Current Non-current Total (€ million) Derivative financial assets 16 € 265 € 19 € 284 € 448 € 31 € 479 Debt securities measured at fair value through other comprehensive income 23 4 — 4 38 — 38 Debt securities measured at fair value through profit or loss 23 172 59 231 203 60 263 Debt securities held-to-maturity — 2 2 — 2 2 Equity instruments measured at cost — 43 43 — 41 41 Equity instruments measured at fair value through other comprehensive income 23 — 23 23 — 151 151 Held-for-trading investments 23 46 — 46 49 — 49 Financial receivables — 275 275 — 320 320 Collateral deposits (1) 23 — 61 61 24 44 68 Total Other financial assets € 487 € 482 € 969 € 762 € 649 € 1,411 ___________________________________________ (1) Collateral deposits are held in connection with derivative transactions and debt obligations |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Disclosure of inventory | At December 31 2017 2016 (€ million) Finished goods and goods for resale € 8,261 € 7,888 Work-in-progress, raw materials and manufacturing supplies 4,476 4,168 Amount due from customers for contract work 185 65 Total Inventories € 12,922 € 12,121 |
Amounts due from customers for contract work | The amount due from customers for contract work relates to the design and production of industrial automation systems and related products and is summarized as follows: At December 31 2017 2016 (€ million) Aggregate amount of costs incurred and recognized profits (less recognized losses) to date € 881 € 959 Less: Progress billings (886 ) (1,130 ) Construction contracts, net of advances on contract work (5 ) (171 ) Amount due from customers for contract work 185 65 Less: Amount due to customers for contract work included in Other (190 ) (236 ) Construction contracts, net of advances on contract work € (5 ) € (171 ) |
Trade, other receivables and 52
Trade, other receivables and tax receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables [abstract] | |
Schedule of receivables by due date | The following table summarizes Trade, other receivables and tax receivables by due date: At December 31 2017 2016 Total due within one year (current) Due between one and five years Due beyond five years Total due after one year (non-current) Total Total due within one year (current) Due between one and five years Due beyond five years Total due after one year (non-current) Total (€ million) Trade receivables € 2,460 € — € — € — € 2,460 € 2,479 € — € — € — € 2,479 Receivables from financing activities 2,946 194 — 194 3,140 2,407 171 — 171 2,578 Other receivables 2,481 414 58 472 2,953 2,387 308 102 410 2,797 Total Trade and other receivables € 7,887 € 608 € 58 € 666 € 8,553 € 7,273 € 479 € 102 € 581 € 7,854 Tax receivables € 215 € 62 € 21 € 83 € 298 € 206 € 71 € 22 € 93 € 299 |
Disclosure of allowance for credit losses | Changes in the allowance for receivables from financing activities were as follows: At January 1, 2017 Provision Use and At December 31, 2017 (€ million) Allowance for Receivables from financing activities € 45 € 66 € (66 ) € 45 Changes in the allowance for trade receivables were as follows: At January 1, 2017 Provision Use and At December 31, 2017 (€ million) Allowance for doubtful accounts € 275 € 76 € (82 ) € 269 |
Schedule of receivables from financing activities | Receivables from financing activities mainly relate to the business of financial services companies fully consolidated by the Group and are summarized as follows. At December 31 2017 2016 (€ million) Dealer financing € 2,295 € 2,115 Retail financing 420 286 Finance leases 4 6 Other 421 171 Total Receivables from financing activities € 3,140 € 2,578 |
Disclosure of transferred financial assets that are not derecognised in their entirety | At December 31, 2017 and 2016 , the carrying amount of transferred financial assets not derecognized and the related liabilities were as follows: At December 31 2017 2016 Trade receivables Receivables financing Total Trade receivables Receivables financing Total (€ million) Carrying amount of assets transferred and not derecognized € 22 € 335 € 357 € 34 € 376 € 410 Carrying amount of the related liabilities (Note 21) € 22 € 335 € 357 € 34 € 376 € 410 |
Derivative financial assets a53
Derivative financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Summary of derivative financial assets and liabilities | The following table summarizes the fair value of the Group's derivative financial assets and liabilities: At December 31 2017 2016 Positive fair Negative fair Positive fair Negative fair (€ million) Fair value hedges: Interest rate risk - interest rate swaps € 2 € — € 31 € (1 ) Interest rate and exchange rate risk - combined interest rate — — — (115 ) Total Fair value hedges 2 — 31 (116 ) Cash flow hedges: Currency risks - forward contracts, currency swaps and 100 (95 ) 213 (304 ) Interest rate risk - interest rate swaps 4 (7 ) — — Interest rate and currency risk - combined interest rate and 9 — 87 — Commodity price risk – commodity swaps and commodity options 30 (1 ) 21 (2 ) Total Cash flow hedges 143 (103 ) 321 (306 ) Net investment hedges: Currency risks - forward contracts, currency swaps and currency options 5 — — (47 ) Total Net investment hedges 5 — — (47 ) Derivatives for trading 134 (36 ) 127 (228 ) Total Fair value of derivative financial assets/(liabilities) € 284 € (139 ) € 479 € (697 ) Financial derivative assets/(liabilities) - current € 265 € (138 ) € 448 € (681 ) Financial derivative assets/(liabilities) - non-current € 19 € (1 ) € 31 € (16 ) |
Summary of outstanding notional amounts by due date | The following table summarizes the outstanding notional amounts of the Group's derivative financial instruments by due date: At December 31 2017 2016 Due within one year Due between one and Due beyond Total Due within one year Due between Due Total (€ million) Currency risk management € 14,142 € 154 € — € 14,296 € 18,668 € 311 € — € 18,979 Interest rate risk management 1,581 1,753 101 3,435 855 795 — 1,650 Interest rate and currency risk management — 291 71 362 928 305 82 1,315 Commodity price risk management 455 6 — 461 450 44 — 494 Other derivative financial instruments — 14 — 14 — 14 — 14 Total Notional amount € 16,178 € 2,218 € 172 € 18,568 € 20,901 € 1,469 € 82 € 22,452 |
Summary of fair value hedges | The following table summarizes the gains and losses arising from the respective hedged items: Years ended December 31 2017 2016 2015 (€ million) Currency risk Net gains/(losses) on qualifying hedges € 104 € (13 ) € (49 ) Fair value changes in hedged items (104 ) 13 49 Interest rate risk Net (losses) on qualifying hedges (9 ) (26 ) (34 ) Fair value changes in hedged items 10 26 34 Net gains/(losses) € 1 € — € — |
Summary of reclassification adjustments from Other comprehensive income to Consolidated Income Statement | The following table summarizes the amounts, net of tax, that were reclassified from Other comprehensive (loss)/income to the Consolidated Income Statement in respect of cash flow hedges: Years ended December 31 2017 2016 2015 (€ million) Currency risk Increase in Net revenues € 16 € 236 € 33 (Increase)/Decrease in Cost of revenues (103 ) (44 ) 101 Net financial income/(expenses) (22 ) 34 (148 ) Result from investments 28 26 1 Interest rate risk Increase in Cost of revenues — — (10 ) Result from investments (1 ) (1 ) (2 ) Net financial expenses (3 ) (4 ) (77 ) Commodity price risk Decrease/(Increase) in Cost of revenues 28 (39 ) (23 ) Ineffectiveness and discontinued hedges 4 12 1 Tax expense/(benefit) 27 (49 ) (97 ) Total recognized in Net profit from continuing operations (26 ) 171 (221 ) Recognized in Profit from discontinued operations, net of tax — — (116 ) Total recognized in Net profit € (26 ) € 171 € (337 ) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Cash and cash equivalents | Cash and cash equivalents consisted of the following: At December 31 2017 2016 (€ million) Cash at banks € 6,396 € 8,118 Money market securities 6,242 9,200 Total Cash and cash equivalents € 12,638 € 17,318 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-Based Payment Arrangements [Abstract] | |
Disclosure of number and weighted average exercise prices of other equity instruments | Changes during 2017, 2016 and 2015 for the RSU awards under the framework equity incentive plan were as follows: 2017 2016 2015 RSUs Weighted (€) RSUs Weighted (€) RSUs Weighted (€) Outstanding shares unvested at January 1 7,969,623 € 8.69 5,196,550 € 13.49 — € — Anti-dilution adjustment 46,189 8.64 2,826,922 8.74 — — Granted 2,293,940 10.43 94,222 5.73 6,816,550 13.90 Vested (2,671,939 ) 8.64 — — (1,620,000 ) 15.21 Canceled — — (148,071 ) 9.25 — — Forfeited (37,500 ) 10.39 — — — — Outstanding shares unvested at December 31 7,600,313 € 9.17 7,969,623 € 8.69 5,196,550 € 13.49 Changes during 2017, 2016 and 2015 for the PSU TSR awards under the framework equity incentive plan were as follows: 2017 2016 2015 PSU TSR Weighted (€) PSU TSR Weighted (€) PSU TSR Weighted (€) Outstanding shares unvested at January 1 11,379,446 € 10.64 7,356,550 € 16.52 — € — Anti-dilution adjustment 65,750 10.58 4,001,962 10.70 — — Granted 1,136,250 10.84 168,593 6.71 7,356,550 16.52 Vested (3,758,869 ) 10.63 — — — — Canceled — — (147,659 ) 10.84 — — Forfeited (18,750 ) 10.84 — — — — Outstanding shares unvested at December 31 8,803,827 € 10.58 11,379,446 € 10.64 7,356,550 € 16.52 Changes during 2017, 2016 and 2015 for the PSU NI awards under the framework equity incentive plan were as follows: 2017 2016 2015 PSU NI Weighted (€) PSU NI Weighted (€) PSU NI Weighted (€) Outstanding shares unvested at January 1 11,379,445 € 5.65 7,356,550 € 8.78 — € — Anti-dilution adjustment 65,751 5.62 4,001,962 5.68 — — Granted 1,136,250 7.91 168,593 3.61 7,356,550 8.78 Vested (3,758,870 ) 5.65 — — — — Canceled — — (147,660 ) 5.83 — — Forfeited (18,750 ) 7.91 — — — — Outstanding shares unvested at December 31 8,803,826 € 5.89 11,379,445 € 5.65 7,356,550 € 8.78 |
Disclosure of indirect measurement of fair value of goods or services received, other equity instruments granted during period | The key assumptions utilized to calculate the grant-date fair values for the PSU NI awards are summarized below: Key assumptions 2017 PSU NI Awards Range 2015 PSU NI Awards Range Grant date stock price €9.74 - €10.39 €13.44 - €15.21 Expected volatility 40 % 40 % Risk-free rate (0.8 )% 0.7 % The key assumptions utilized to calculate the grant date fair values for the PSU TSR awards issued are summarized below: Key assumptions 2017 PSU TSR Awards Range 2015 PSU TSR Awards Range Grant date stock price €9.74 - €10.39 €13.44 - €15.21 Expected volatility 44 % 37% - 39% Dividend yield — % — % Risk-free rate 0.8 % 0.7% - 0.8% |
Disclosure of anti-dilutive securities | The following table reflects the changes resulting from the anti-dilution adjustments: 2017 Anti-dilution adjustment 2016 Anti-dilution adjustment PSU Awards: Number of awards - as adjusted 22,890,392 22,717,024 Key assumptions - as adjusted: Grant date stock price - for PSU NI and PSU TSR €8.66 - €9.79 €8.71 - €9.85 RSU Awards: Number of awards - as adjusted 8,015,812 8,023,472 |
Employee benefits liabilities (
Employee benefits liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefits [Abstract] | |
Employee benefits liabilities | Employee benefits liabilities consisted of the following: At December 31 2017 2016 Current Non-current Total Current Non-current Total (€ million) Pension benefits € 34 € 4,789 € 4,823 € 38 € 4,980 € 5,018 Health care and life insurance plans 126 2,153 2,279 145 2,321 2,466 Other post-employment benefits 109 878 987 110 877 987 Other provisions for employees 425 764 1,189 518 874 1,392 Total Employee benefits liabilities € 694 € 8,584 € 9,278 € 811 € 9,052 € 9,863 |
Defined benefit obligations | Changes in the net defined benefit obligations for healthcare and life insurance plans were as follows: 2017 2016 (€ million) Present value of obligations at January 1 € 2,466 € 2,459 Included in the Consolidated Income Statement 120 130 Included in Other comprehensive income: Actuarial (gains)/losses from: - Demographic and other assumptions (52 ) (77 ) - Financial assumptions 160 10 Effect of movements in exchange rates (278 ) 83 Other: Benefits paid (137 ) (139 ) Other changes — — Present value of obligations at December 31 € 2,279 € 2,466 Changes in defined benefit obligations for other post-employment benefits were as follows: 2017 2016 (€ million) Present value of obligations at January 1 € 987 € 969 Included in the Consolidated Income Statement 23 26 Included in Other comprehensive income: Actuarial (gains)/losses from: - Demographic and other assumptions 18 36 - Financial assumptions (3 ) 29 Effect of movements in exchange rates (5 ) 1 Other: Benefits paid (48 ) (58 ) Transfer to Liabilities held for sale — (14 ) Other changes 15 (2 ) Present value of obligations at December 31 € 987 € 987 The following table summarizes the changes in the pension plans: 2017 2016 Obligation Fair value of plan assets Asset ceiling Liability (asset) Obligation Fair value of plan assets Asset ceiling Liability (€ million) At January 1 € 28,065 € (23,409 ) € 12 € 4,668 € 27,547 € (22,415 ) € 11 € 5,143 Included in the Consolidated Income Statement 1,259 (817 ) — 442 1,322 (849 ) — 473 Included in Other comprehensive income: Actuarial (gains)/losses from: Demographic and other assumptions (42 ) — — (42 ) (49 ) (6 ) — (55 ) Financial assumptions 1,567 — — 1,567 346 — — 346 Return on assets — (1,589 ) — (1,589 ) — (861 ) — (861 ) Changes in the effect of limiting net assets — — 3 3 — — — — Changes in exchange rates (3,006 ) 2,445 (1 ) (562 ) 907 (817 ) 1 91 Other: Employer contributions — (141 ) — (141 ) — (454 ) — (454 ) Plan participant contributions — (3 ) — (3 ) 3 (4 ) — (1 ) Benefits paid (1,751 ) 1,735 — (16 ) (2,015 ) 1,999 — (16 ) Settlements paid (563 ) 563 — — — — — — Other changes (1 ) (2 ) — (3 ) 4 (2 ) — 2 At December 31 € 25,528 € (21,218 ) € 14 € 4,324 € 28,065 € (23,409 ) € 12 € 4,668 The following table summarizes the fair value of defined benefit obligations and the fair value of the related plan assets: At December 31 2017 2016 (€ million) Present value of defined benefit obligations: Pension benefits € 25,528 € 28,065 Health care and life insurance plans 2,279 2,466 Other post-employment benefits 987 987 Total present value of defined benefit obligations (a) 28,794 31,518 Fair value of plan assets (b) 21,218 23,409 Asset ceiling (c) 14 12 Total net defined benefit plans (a - b + c) 7,590 8,121 of which: Net defined benefit liability (d) 8,089 8,471 Defined benefit plan asset (499 ) (350 ) Other provisions for employees (e) 1,189 1,392 Total Employee benefits liabilities (d + e) € 9,278 € 9,863 |
Disclosure of information about maturity profile of defined benefit obligation | The expected benefit payments for pension plans are as follows: Expected benefit (€ million) 2018 € 1,592 2019 € 1,562 2020 € 1,550 2021 € 1,535 2022 € 1,524 2023-2027 € 7,556 These plans are unfunded. The expected benefit payments for unfunded health care and life insurance plans are as follows: Expected benefit payments (€ million) 2018 € 125 2019 € 125 2020 € 124 2021 € 124 2022 € 125 2023-2027 € 634 |
Amounts recognized in the consolidated income statement | Amounts recognized in the Consolidated Income Statement were as follows: Years ended December 31 2017 2016 2015 (€ million) Current service cost € 172 € 175 € 196 Interest expense 1,090 1,157 1,143 Interest income (911 ) (944 ) (912 ) Other administration costs 94 95 92 Past service costs/(credits) and gains/(losses) arising from settlements/curtailments (3 ) (10 ) (8 ) Total recognized in the Consolidated Income Statement € 442 € 473 € 511 Amounts recognized in the Consolidated Income Statement were as follows: Years ended December 31 2017 2016 2015 (€ million) Current service cost € 22 € 26 € 32 Interest expense 98 107 102 Past service costs/(credits) and losses/(gains) arising from settlements — (3 ) — Total recognized in the Consolidated Income Statement € 120 € 130 € 134 Amounts recognized in the Consolidated Income Statement were as follows: Years ended December 31 2017 2016 2015 (€ million) Current service cost € 11 € 8 € 10 Interest expense 13 17 6 Past service costs (credits) and (gains)/losses arising from settlements (1 ) 1 — Total recognized in the Consolidated Income Statement € 23 € 26 € 16 |
Fair value of plan assets by class | The fair value of plan assets by class was as follows: At December 31 2017 2016 Amount of which have a Amount of which have a (€ million) Cash and cash equivalents € 628 € 611 € 862 € 816 U.S. equity securities 1,426 1,426 1,641 1,633 Non-U.S. equity securities 1,098 1,098 1,170 1,170 Commingled funds 2,684 1,138 3,149 216 Equity instruments 5,208 3,662 5,960 3,019 Government securities 2,601 803 2,611 858 Corporate bonds (including convertible and high yield bonds) 5,864 — 6,353 58 Other fixed income 1,071 114 907 9 Fixed income securities 9,536 917 9,871 925 Private equity funds 1,962 — 1,979 — Commingled funds 165 162 147 118 Mutual funds — — 3 3 Real estate funds 1,374 13 1,460 — Hedge funds 1,893 49 2,466 — Investment funds 5,394 224 6,055 121 Insurance contracts and other 452 50 661 156 Total fair value of plan assets € 21,218 € 5,464 € 23,409 € 5,037 |
Weighted average assumptions | The weighted average assumptions used to determine the defined benefit obligations were as follows: At December 31 2017 2016 U.S. Canada UK U.S. Canada UK Discount rate 3.8 % 3.5 % 2.7 % 4.4 % 3.9 % 2.7 % Future salary increase rate — % 3.5 % 3.2 % — % 3.5 % 3.1 % The weighted average assumptions used to determine the defined benefit obligations were as follows: At December 31 2017 2016 U.S. Canada U.S. Canada Discount rate 3.9 % 3.6 % 4.5 % 4.0 % Salary growth 1.5 % 1.0 % 1.5 % 1.0 % Weighted average ultimate healthcare cost trend rate 4.5 % 4.5 % 4.5 % 4.4 % |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of changes in other provisions | Provisions consisted of the following: At December 31 2017 2016 Current Non-current Total Current Non-current Total (€ million) Product warranty and recall campaigns € 2,676 € 4,049 € 6,725 € 2,905 € 4,637 € 7,542 Sales incentives 5,377 — 5,377 5,749 — 5,749 Legal proceedings and disputes 125 551 676 54 530 584 Commercial risks 481 334 815 250 412 662 Restructuring 26 44 70 26 46 72 Other risks 324 792 1,116 333 895 1,228 Total Provisions € 9,009 € 5,770 € 14,779 € 9,317 € 6,520 € 15,837 |
Disclosure of other provisions | Changes in Provisions were as follows: At Additional Settlements Unused Translation differences Changes in At (€ million) Product warranty and recall campaigns € 7,542 € 3,196 € (3,262 ) € — € (746 ) € (5 ) € 6,725 Sales incentives 5,749 13,850 (13,675 ) (3 ) (567 ) 23 5,377 Legal proceedings and disputes 584 200 (69 ) (38 ) (49 ) 48 676 Commercial risks 662 432 (181 ) (34 ) (64 ) — 815 Restructuring costs 72 91 (55 ) (3 ) (3 ) (32 ) 70 Other risks 1,228 229 (187 ) (97 ) (62 ) 5 1,116 Total Provisions € 15,837 € 17,998 € (17,429 ) € (175 ) € (1,491 ) € 39 € 14,779 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about borrowings | The following table summarizes the Group's current and non-current Debt by maturity date (amounts include accrued interest): At December 31 2017 2016 Due Due Due Total (non-current) Total Debt Due within Due Due Total (non-current) Total Debt (€ million) Notes € 2,054 € 5,071 € 2,501 € 7,572 € 9,626 € 2,565 € 5,763 € 4,023 € 9,786 € 12,351 Borrowings from banks 4,132 2,278 502 2,780 6,912 4,025 4,592 786 5,378 9,403 Asset-backed financing (Note 15) 357 — — — 357 410 — — — 410 Other debt 702 347 27 374 1,076 937 688 259 947 1,884 Total Debt € 7,245 € 7,696 € 3,030 € 10,726 € 17,971 € 7,937 € 11,043 € 5,068 € 16,111 € 24,048 Notes The following table summarizes the outstanding notes at December 31, 2017 and 2016: At December 31 Currency Face value of Coupon % Maturity 2017 2016 Medium Term Note Programme: (€ million) Fiat Chrysler Finance Europe S.A. (1) EUR 850 7.000 March 23, 2017 € — € 850 Fiat Chrysler Finance North America, Inc. (1) EUR 1,000 5.625 June 12, 2017 — 1,000 Fiat Chrysler Finance Europe S.A. (2) CHF 450 4.000 November 22, 2017 — 419 Fiat Chrysler Finance Europe S.A. (1) EUR 1,250 6.625 March 15, 2018 1,250 1,250 Fiat Chrysler Finance Europe S.A. (1) EUR 600 7.375 July 9, 2018 600 600 Fiat Chrysler Finance Europe S.A. (2) CHF 250 3.125 September 30, 2019 213 233 Fiat Chrysler Finance Europe S.A. (1) EUR 1,250 6.750 October 14, 2019 1,250 1,250 Fiat Chrysler Finance Europe S.A. (1) EUR 1,000 4.750 March 22, 2021 1,000 1,000 Fiat Chrysler Finance Europe S.A. (1) EUR 1,350 4.750 July 15, 2022 1,350 1,350 FCA NV (1) EUR 1,250 3.750 March 29, 2024 1,250 1,250 Other (3) EUR 7 7 7 Total Medium Term Note Programme 6,920 9,209 Other Notes: FCA NV (1) U.S.$ 1,500 4.500 April 15, 2020 1,251 1,423 FCA NV (1) U.S.$ 1,500 5.250 April 15, 2023 1,251 1,423 Total Other Notes 2,502 2,846 Hedging effect, accrued interest and amortized cost valuation 204 296 Total Notes € 9,626 € 12,351 _________________________ (1) Listing on the Irish Stock Exchange was obtained. (2) Listing on the SIX Swiss Exchange was obtained. (3) Medium Term Notes with amounts outstanding equal to or less than the equivalent of €50 million . |
Disclosure of finance lease and operating lease by lessee | Other debt also included funds raised from financial services companies, primarily in Latin America, deposits from dealers in Brazil and the Group's payables for finance leases, which are summarized in the table below: At December 31 2017 2016 Due Due Due Due Total Due Due Due Due Total (€ million) Minimum future lease € 90 € 134 € 19 € 74 € 317 € 138 € 246 € 131 € 188 € 703 Interest expense (15 ) (15 ) (3 ) (3 ) (36 ) (22 ) (29 ) (7 ) (5 ) (63 ) Present value of minimum € 75 € 119 € 16 € 71 € 281 € 116 € 217 € 124 € 183 € 640 |
Other liabilities and tax pay59
Other liabilities and tax payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of details about other liabilities | Other liabilities consisted of the following: At December 31 2017 2016 Current Non-current Total Current Non-current Total (€ million) Payables for buy-back agreements € 2,234 € — € 2,234 € 2,081 € — € 2,081 Indirect tax payables 799 19 818 667 968 1,635 Accrued expenses and deferred income 1,573 2,260 3,833 1,320 2,428 3,748 Payables to personnel 988 16 1,004 1,006 34 1,040 Social security payables 313 6 319 312 7 319 Amounts due to customers for contract work (Note 14) 190 — 190 236 — 236 Other 1,838 199 2,037 2,187 166 2,353 Total Other liabilities € 7,935 € 2,500 € 10,435 € 7,809 € 3,603 € 11,412 |
Disclosure of analysis of other liabilities by due date | An analysis of Other liabilities (excluding Accrued expenses and deferred income) by due date was as follows: At December 31 2017 2016 Total due within one year (Current) Due between one and five years Due beyond five years Total due after one year (Non-Current) Total Total due within one year (Current) Due between one and five years Due beyond five years Total due after one year (Non-Current) Total (€ million) Other liabilities (excluding Accrued expenses and deferred income) € 6,362 € 227 € 13 € 240 € 6,602 € 6,489 € 1,159 € 16 € 1,175 € 7,664 |
Disclosure of analysis of tax payables by due date | An analysis by due date for Tax payables was as follows: At December 31 2017 2016 Total due within one year (Current) Due between one and five years Due beyond five years Total due after one year (Non-Current) Total Total due within one year (Current) Due between one and five years Due beyond five years Total due after one year (Non-Current) Total (€ million) Tax payables € 309 € 32 € 42 € 74 € 383 € 162 € 25 € — € 25 € 187 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurement [Abstract] | |
Assets that are measured at fair value | The following table shows the fair value hierarchy for financial assets and liabilities that are measured at fair value on a recurring basis: At December 31 2017 2016 Note Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (€ million) Debt securities and equity instruments measured at fair value through other comprehensive income 13 € 3 € 24 € — € 27 € 159 € 18 € 12 € 189 Debt securities and equity instruments measured at fair value through profit or loss 13 275 — 2 277 312 — — 312 Collateral deposits 13 61 — — 61 68 — — 68 Derivative financial assets 16 — 254 30 284 — 458 21 479 Cash and cash equivalents 17 10,800 1,838 — 12,638 15,790 1,528 — 17,318 Total Assets € 11,139 € 2,116 € 32 € 13,287 € 16,329 € 2,004 € 33 € 18,366 Derivative financial liabilities 16 — 138 1 139 — 695 2 697 Total Liabilities € — € 138 € 1 € 139 € — € 695 € 2 € 697 The following table provides the carrying amount and fair value for financial assets and liabilities not measured at fair value on a recurring basis: At December 31 2017 2016 Note Carrying Fair Carrying Fair (€ million) Dealer financing € 2,295 € 2,295 € 2,115 € 2,115 Retail financing 420 405 286 285 Finance lease 4 4 6 6 Other receivables from financing activities 421 421 171 171 Total Receivables from financing activities 15 € 3,140 € 3,125 € 2,578 € 2,577 Asset backed financing € 357 € 357 € 410 € 410 Notes 9,626 10,365 12,351 13,164 Other debt 7,988 8,001 11,287 11,311 Total Debt 21 € 17,971 € 18,723 € 24,048 € 24,885 |
Liabilities that are measured at fair value | The following table provides the carrying amount and fair value for financial assets and liabilities not measured at fair value on a recurring basis: At December 31 2017 2016 Note Carrying Fair Carrying Fair (€ million) Dealer financing € 2,295 € 2,295 € 2,115 € 2,115 Retail financing 420 405 286 285 Finance lease 4 4 6 6 Other receivables from financing activities 421 421 171 171 Total Receivables from financing activities 15 € 3,140 € 3,125 € 2,578 € 2,577 Asset backed financing € 357 € 357 € 410 € 410 Notes 9,626 10,365 12,351 13,164 Other debt 7,988 8,001 11,287 11,311 Total Debt 21 € 17,971 € 18,723 € 24,048 € 24,885 The following table shows the fair value hierarchy for financial assets and liabilities that are measured at fair value on a recurring basis: At December 31 2017 2016 Note Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (€ million) Debt securities and equity instruments measured at fair value through other comprehensive income 13 € 3 € 24 € — € 27 € 159 € 18 € 12 € 189 Debt securities and equity instruments measured at fair value through profit or loss 13 275 — 2 277 312 — — 312 Collateral deposits 13 61 — — 61 68 — — 68 Derivative financial assets 16 — 254 30 284 — 458 21 479 Cash and cash equivalents 17 10,800 1,838 — 12,638 15,790 1,528 — 17,318 Total Assets € 11,139 € 2,116 € 32 € 13,287 € 16,329 € 2,004 € 33 € 18,366 Derivative financial liabilities 16 — 138 1 139 — 695 2 697 Total Liabilities € — € 138 € 1 € 139 € — € 695 € 2 € 697 |
Disclosure of significant unobservable inputs used in fair value measurement of assets | The following table provides a reconciliation of the changes in items measured at fair value and categorized within Level 3: Securities Derivative financial (€ million) At January 1, 2016 € 12 € (35 ) Gains/(Losses) recognized in Consolidated Income Statement — (31 ) Gains/(Losses) recognized in Other comprehensive income — 62 Issues/Settlements — 23 At December 31, 2016 12 19 Gains/(Losses) recognized in Consolidated Income Statement (10 ) 27 Gains/(Losses) recognized in Other comprehensive income — 18 Issues/Settlements — (35 ) At December 31, 2017 € 2 € 29 |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities | The following table provides a reconciliation of the changes in items measured at fair value and categorized within Level 3: Securities Derivative financial (€ million) At January 1, 2016 € 12 € (35 ) Gains/(Losses) recognized in Consolidated Income Statement — (31 ) Gains/(Losses) recognized in Other comprehensive income — 62 Issues/Settlements — 23 At December 31, 2016 12 19 Gains/(Losses) recognized in Consolidated Income Statement (10 ) 27 Gains/(Losses) recognized in Other comprehensive income — 18 Issues/Settlements — (35 ) At December 31, 2017 € 2 € 29 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | As of December 31, 2017 , the Group had a take or pay commitment with Tofas with future minimum expected obligations as follows: (€ million) 2018 € 340 2019 € 276 2020 € 269 2021 € 250 2022 € 159 2023 and thereafter € — Compensation to Directors and Key Management The fees of the Directors of the Group for carrying out their respective functions, including those in other consolidated companies, were as follows: Years ended December 31 2017 2016 2015 (€ thousand) Directors (1) € 29,861 € 39,329 € 38,488 Total Compensation € 29,861 € 39,329 € 38,488 ___________________ (1) This amount includes the notional compensation cost arising from long-term share-based compensation granted to the Chief Executive Officer and share-based compensation to non-executive Directors. The amounts for significant transactions with related parties recognized in the Consolidated Income Statements were as follows: Years ended December 31 2017 2016 2015 Net Cost of Selling, and costs, net Net Financial Net Cost of Selling, and costs, net Net Financial Net Cost of Selling, and costs, net Net Financial (€ million) Tofas € 1,287 € 2,779 € 9 € — € 1,536 € 2,811 € 3 € — € 1,533 € 1,611 € — € — Sevel S.p.A. 392 — 5 — 381 — 5 — 311 — 4 — FCA Bank 1,715 26 (20 ) 36 1,571 18 (21 ) 39 1,447 14 9 30 GAC FCA JV 569 — (105 ) — 683 — (82 ) — 252 — — — Fiat India Automobiles 25 1 — — 23 1 (1 ) (1 ) 15 4 — — Other 35 2 (4 ) 2 36 5 (3 ) — 29 22 — — Total joint arrangements 4,023 2,808 (115 ) 38 4,230 2,835 (99 ) 38 3,587 1,651 13 30 Total associates 73 52 (3 ) (1 ) 91 47 — — 143 14 6 — CNHI 526 329 2 — 543 422 3 — 564 431 — — Ferrari N.V. 82 320 1 — 81 246 — — n/a n/a n/a n/a Directors and Key Management — — 114 — — — 143 — — — 132 — Other 1 — 26 — — — 26 — — 1 17 — Total CNHI, Ferrari, Directors and other 609 649 143 — 624 668 172 — 564 432 149 — Total unconsolidated 61 8 3 1 57 7 8 1 79 13 8 (1 ) Total transactions with related parties € 4,766 € 3,517 € 28 € 38 € 5,002 € 3,557 € 81 € 39 € 4,373 € 2,110 € 176 € 29 Total for the Group € 110,934 € 93,975 € 7,385 € 1,469 € 111,018 € 95,295 € 7,568 € 2,016 € 110,595 € 97,620 € 7,576 € 2,366 Assets and liabilities from significant transactions with related parties were as follows: At December 31 2017 2016 Trade and other Trade Other Asset- Debt (1) Trade Trade Other Asset- Debt (1) (€ million) Tofas € 34 € 240 € 50 € — € — € 28 € 298 € 52 € — € — Sevel S.p.A. 23 — 6 — 1 33 — 4 — 8 FCA Bank 466 206 199 319 32 201 248 108 169 18 GAC FCA JV 58 15 1 — — 121 2 4 — — Fiat India Automobiles Limited 7 13 5 — — 2 — — — — Other 20 1 — — — 25 4 — — — Total joint arrangements 608 475 261 319 33 410 552 168 169 26 Total associates 36 32 13 — — 30 18 18 — — CNHI 47 86 11 — — 80 82 15 — 4 Ferrari N.V. 23 75 — — — 25 75 — — — Other 1 2 — — — — 2 — — — Total CNHI, Ferrari N.V. and other 71 163 11 — — 105 159 15 — 4 Total unconsolidated subsidiaries 83 8 1 — 28 84 9 1 — 25 Total originating from related parties € 798 € 678 € 286 € 319 € 61 € 629 € 738 € 202 € 169 € 55 Total for the Group € 8,553 € 21,939 € 10,435 € 357 € 17,614 € 7,854 € 22,655 € 11,412 € 410 € 23,638 _________________________ 1) This relates to Debt excluding Asset-backed financing, refer to Note, 21 Debt . |
Guarantees granted, commitmen62
Guarantees granted, commitments and contingent liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of maturity analysis of purchase obligations | Future minimum purchase obligations under these arrangements at December 31, 2017 were as follows: (€ million) 2018 € 817 2019 € 583 2020 € 515 2021 € 325 2022 € 198 2023 and thereafter € 53 |
Disclosure of maturity analysis of operating lease payments | The following table summarizes the total future minimum lease payments under non-cancellable lease contracts: At December 31, 2017 Due within one year Due between Due between Due Total (€ million) Future minimum lease payments under operating lease agreements € 352 € 457 € 298 € 396 € 1,503 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share Capital, Reserves And Other [Abstract] | |
Disclosure of number of shares outstanding | The following table summarizes the changes in the number of outstanding common shares and special voting shares of FCA during the year ended December 31, 2017: Common Shares Special Voting Shares Total Balance at January 1, 2017 1,527,965,719 408,941,767 1,936,907,486 Shares issued to Executive Directors (Directors' Compensation) 2,795,500 — 2,795,500 Shares issued to Non-Executive Directors (Directors' Compensation) 54,855 — 54,855 Shares issued to Key management 9,273,616 — 9,273,616 Balance at December 31, 2017 1,540,089,690 408,941,767 1,949,031,457 |
Disclosure of analysis of other comprehensive income by item | The following table summarizes the tax effect relating to Other comprehensive income: Years ended December 31 2017 2016 2015 Pre-tax Tax Net Pre-tax Tax Net Pre-tax Tax Net (€ million) (Losses)/gains on € (64 ) € (21 ) € (85 ) € 584 € (261 ) € 323 € 679 € (201 ) € 478 Gains/(Losses) on cash flow 147 (10 ) 137 (249 ) 69 (180 ) 186 (48 ) 138 Gains on available- 14 — 14 15 — 15 11 — 11 Exchange (losses)/gains on (1,942 ) — (1,942 ) 458 — 458 1,002 — 1,002 Share of Other comprehensive income/(loss) for equity method investees (119 ) — (119 ) (127 ) — (127 ) (19 ) — (19 ) Items relating to discontinued operations — — — — — — 25 (4 ) 21 Total Other comprehensive € (1,964 ) € (31 ) € (1,995 ) € 681 € (192 ) € 489 € 1,884 € (253 ) € 1,631 Other comprehensive income was as follows: Years ended December 31 2017 2016 2015 (€ million) Items that will not be reclassified to the Consolidated Income Statement in subsequent periods: (Losses)/gains on re-measurement of defined benefit plans € (64 ) € 584 € 679 Share of gains/(losses) on re-measurement of defined benefit plans for equity method investees 2 (5 ) (2 ) Items relating to discontinued operations — — 4 Total Items that will not be reclassified to the Consolidated Income Statement (B1) (62 ) 579 681 Items that may be reclassified to the Consolidated Income Statement in subsequent periods: Gains/(losses) on cash flow hedging instruments arising during the period 66 (54 ) 63 Gains/(losses) on cash flow hedging instruments reclassified to the Consolidated Income Statement 81 (195 ) 123 Total Gains/(losses) on cash flow hedging instruments 147 (249 ) 186 Gains on available-for-sale financial assets 14 15 11 Exchange (losses)/gains on translating foreign operations (1,942 ) 458 1,002 Share of Other comprehensive income/(loss) for equity method investees arising during the period (94 ) (97 ) (18 ) Share of Other comprehensive income/(loss) for equity method investees reclassified to the Consolidated Income Statement (27 ) (25 ) 1 Total Share of Other comprehensive (loss)/income for equity method investees (121 ) (122 ) (17 ) Items relating to discontinued operations — — 21 Total Items that may be reclassified to the Consolidated Income Statement (B2) (1,902 ) 102 1,203 Total Other comprehensive income (B1)+(B2)=(B) (1,964 ) 681 1,884 Tax effect (31 ) (192 ) (249 ) Tax effect - discontinued operations — — (4 ) Total Other comprehensive income, net of tax € (1,995 ) € 489 € 1,631 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share [abstract] | |
Earnings per share | The following tables provide the amounts used in the calculation of diluted earnings per share: Years ended December 31 2017 2016 2015 Net profit attributable to owners of the parent million € 3,491 € 1,803 € 334 Weighted average number of shares outstanding thousand 1,535,988 1,513,019 1,510,555 Number of shares deployable for share-based compensation thousand 20,318 13,357 3,452 Weighted average number of shares outstanding for diluted earnings per share thousand 1,556,306 1,526,376 1,514,007 Diluted earnings per share € € 2.24 € 1.18 € 0.22 Years ended December 31 2017 2016 2015 Net profit from continuing operations attributable to owners of the parent million € 3,491 € 1,803 € 83 Weighted average number of shares outstanding for diluted earnings per share thousand 1,556,306 1,526,376 1,514,007 Diluted earnings per share from continuing operations € € 2.24 € 1.18 € 0.05 Years ended December 31 2017 2016 2015 Net profit from discontinued operations attributable to owners of the parent million € — € — € 251 Weighted average number of shares outstanding for diluted earnings per share thousand 1,556,306 1,526,376 1,514,007 Diluted earnings per share from discontinued operations € € — € — € 0.17 The following tables provide the amounts used in the calculation of basic earnings per share: Years ended December 31 2017 2016 2015 Net profit attributable to owners of the parent million € 3,491 € 1,803 € 334 Weighted average number of shares outstanding thousand 1,535,988 1,513,019 1,510,555 Basic earnings per share € € 2.27 € 1.19 € 0.22 Years ended December 31 2017 2016 2015 Net profit from continuing operations attributable to owners of the parent million € 3,491 € 1,803 € 83 Weighted average number of shares outstanding thousand 1,535,988 1,513,019 1,510,555 Basic earnings per share from continuing operations € € 2.27 € 1.19 € 0.05 Years ended December 31 2017 2016 2015 Net profit from discontinued operations attributable to owners of the parent million € — € — € 251 Weighted average number of shares outstanding thousand 1,535,988 1,513,019 1,510,555 Basic earnings per share from discontinued operations € € — € — € 0.17 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Operating segments [Abstract] | |
Disclosure of operating segments | The following tables summarize selected financial information by segment for the years ended December 31, 2017 , 2016 and 2015 : Mass-Market Vehicles 2017 NAFTA LATAM APAC EMEA Maserati Components Other activities Unallocated items & eliminations FCA (€ million) Revenues € 66,094 € 8,004 € 3,250 € 22,700 € 4,058 € 10,115 € 727 € (4,014 ) € 110,934 Revenues from transactions with other segments (47 ) (15 ) (32 ) (140 ) (21 ) (3,323 ) (436 ) 4,014 — Revenues from third party customers € 66,047 € 7,989 € 3,218 € 22,560 € 4,037 € 6,792 € 291 € — € 110,934 Net profit from continuing operations € 3,510 Tax expense € 2,651 Net financial expenses € 1,469 Adjustments: Reversal of a Brazilian indirect tax liability (1) € € € € € € € € € (895 ) Impairment expense (2) € € 77 € € 142 € € 10 € € € 229 Recall campaigns - airbag inflators (3) € 29 € 73 € € € € € € € 102 Restructuring costs/(reversal) (4) € (1 ) € 75 € € € € 20 € € 1 € 95 Resolution of certain Components legal matters € € € € € € 43 € € € 43 Deconsolidation of Venezuela (5) € € 42 € — € — € — € — € — € — € 42 NAFTA capacity realignment (6) € (38 ) € € € € € € € € (38 ) Tianjin (China) port explosions insurance recoveries (7) € € € (68 ) € € € € € € (68 ) Gains on disposal of investments (8) € € € € € € (27 ) € € (49 ) € (76 ) Other € (1 ) € — € 1 € — € — € (11 ) € — € 1 € (10 ) Adjusted EBIT € 5,227 € 151 € 172 € 735 € 560 € 536 € (189 ) € (138 ) € 7,054 Share of profit of equity method investees € € € 75 € 306 € € 14 € 13 € 1 € 409 _________________________ 1) As this liability related to the Group’s Brazilian operations in multiple segments, it was not attributed to the results of the related segments; 2) Impairment expense in EMEA relates to changes in global product portfolio. Impairment expense in LATAM relates to product portfolio changes and the impairment of certain real estate assets in Venezuela, in the second quarter of 2017 due to the continued deterioration of the economic conditions; (3) Refer to Note 20 , Provisions and Note 25 , Guarantees granted, commitments and contingent liabilities . (4) Primarily related to workforce restructuring costs related to LATAM; (5) Refer to Note 3 , Scope of consolidation ; (6) Income related to adjustments to reserves for the NAFTA capacity realignment plan; (7) Insurance recoveries related to losses incurred in connection with the explosions at the Port of Tianjin (China) in August 2015 are excluded from Adjusted EBIT to the extent the insured loss to which the recovery relates was excluded from Adjusted EBIT. Insurance recoveries are included in Adjusted EBIT to the extent they relate to costs, increased incentives or business interruption losses that were included in Adjusted EBIT; (8) Refer to Note 3 , Scope of consolidation . Mass-Market Vehicles 2016 NAFTA LATAM APAC EMEA Maserati Components Other activities Unallocated items & eliminations FCA (€ million) Revenues € 69,094 € 6,197 € 3,662 € 21,860 € 3,479 € 9,659 € 779 € (3,712 ) € 111,018 Revenues from transactions with other segments (40 ) (42 ) (24 ) (148 ) (10 ) (3,030 ) (418 ) 3,712 — Revenues from third party customers € 69,054 € 6,155 € 3,638 € 21,712 € 3,469 € 6,629 € 361 € — € 111,018 Net profit from continuing operations € 1,814 Tax expense € 1,292 Net financial expenses € 2,016 Adjustments: Recall campaigns - airbag inflators (1) € 414 € € € € € € € € 414 Costs for recall, net of supplier recoveries - contested with supplier (2) € 132 € € € € € € € € 132 NAFTA capacity realignment (3) € 156 € € € € € € € € 156 Tianjin (China) port explosions, net of insurance recoveries (4) € € € (55 ) € € € € € € (55 ) Currency devaluation € € 19 € € € € € € € 19 Restructuring costs/(reversal) (5) € (10 ) € 68 € € 5 € € 25 € € € 88 Impairment expense (6) € € 52 € 109 € 7 € € 49 € 8 € € 225 Gains on disposal of investments € € € € € € (8 ) € (5 ) € € (13 ) Other € (25 ) € 3 € (10 ) € € € € € € (32 ) Adjusted EBIT € 5,133 € 5 € 105 € 540 € 339 € 445 € (244 ) € (267 ) € 6,056 Share of profit of equity method investees € 2 € — € 30 € 272 € — € 6 € 2 € 1 € 313 ________________________ (1) Refer to Note 20 , Provisions and Note 25 , Guarantees granted, commitments and contingent liabilities ; (2) Refer to Note 20 , Provisions ; (3) Refer to Note 5 , Research and development costs and Note 11 , Property plant and equipment ; (4) Insurance recoveries related to losses incurred in connection with the explosions at the Port of Tianjin (China) in August 2015 are excluded from Adjusted EBIT to the extent the insured loss to which the recovery relates was excluded from Adjusted EBIT. Insurance recoveries are included in Adjusted EBIT to the extent they relate to costs, increased incentives or business interruption losses that were included in Adjusted EBIT. Through December 31, 2016, no significant insurance recoveries related to Tianjin have been recognized in Adjusted EBIT; (5) Restructuring costs within LATAM and Components primarily relate to cost reduction initiatives to right-size to market volume in Brazil; (6) Refer to Note 5 , Research and development costs . and Note 11 , Property plant and equipment . Mass-Market Vehicles 2015 NAFTA LATAM APAC EMEA Maserati Components Other activities Unallocated items & eliminations FCA (€ million) Revenues € 69,992 € 6,431 € 4,885 € 20,350 € 2,411 € 9,770 € 844 € (4,088 ) € 110,595 Revenues from transactions with other segments (1 ) (194 ) (25 ) (304 ) (13 ) (3,095 ) (456 ) 4,088 — Revenues from third party customers € 69,991 € 6,237 € 4,860 € 20,046 € 2,398 € 6,675 € 388 € — € 110,595 Net profit from continuing operations € 93 Tax expense € 166 Net financial expenses € 2,366 Adjustments: Change in estimate for future recall campaign costs (1) € 761 € € € € € € € € 761 Tianjin (China) port explosions (2) € € € 142 € € € € € € 142 NAFTA capacity realignment (3) € 834 € € € € € € € € 834 Currency devaluations (4) € € 163 € € € € € € € 163 NHTSA Consent Order and amendment (5) € 144 € € € € € € € € 144 Impairment expense € € 16 € 22 € 46 € 3 € 20 € € 11 € 118 Restructuring costs/(reversal) € (11 ) € 40 € € € € 23 € 2 € (1 ) € 53 Other € (97 ) € € 41 € 1 € € 8 € (1 ) € 2 € (46 ) Adjusted EBIT € 4,450 € (87 ) € 52 € 213 € 105 € 395 € (150 ) € (184 ) € 4,794 Share of profit of equity method investees € 3 € — € (78 ) € 219 € — € (2 ) € (12 ) € — € 130 _________________________ (1) Amount represents the change in estimate for estimated future recall campaign costs for the U.S. and Canada recognized within Cost of revenues - refer to Note 20 , Provisions ; (2) Amount relates to the write-down of inventory ( €53 million ) and incremental incentives ( €89 million ) for vehicles affected by the explosions at the Port of Tianjin in August 2015; (3) Amount represents costs from implementation of plan to realign existing NAFTA capacity - comprised of €422 million for asset impairments, €236 million for payment of supplemental unemployment benefits due to extended downtime at certain plants and €176 million for write off of capitalized development expenditures with no future benefit; (4) €80 million was due to adoption of SIMADI exchange rate at June 30, 2015 (refer to Note 3 , Scope of consolidation , and €83 million was due to the devaluation of the Argentinian Peso resulting from changes in monetary policy; (5) Refer to Note 20 , Provisions |
Disclosure of geographical areas | Net revenues attributed by geographical area were as follows: Years ended December 31 2017 2016 2015 (€ million) Net revenues in: North America € 68,374 € 71,047 € 71,979 Italy 8,755 8,478 7,165 Brazil 6,406 4,953 5,103 China 4,240 4,493 4,720 Germany 3,990 4,160 3,794 France 3,487 3,266 2,852 Argentina 1,817 1,409 1,175 Spain 1,569 1,467 1,254 Turkey 1,456 1,705 1,682 United Kingdom 1,366 1,632 1,744 Japan 816 713 625 Australia 497 473 936 Other countries 8,161 7,222 7,566 Total Net revenues € 110,934 € 111,018 € 110,595 The following table summarizes the non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) attributed to certain geographic areas: At December 31 2017 2016 (€ million) North America € 34,099 € 35,833 Italy 12,458 12,558 Brazil 5,137 6,310 Poland 1,151 1,117 Serbia 639 660 Other countries 2,536 2,582 Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) € 56,020 € 59,060 |
Explanatory notes to the cons66
Explanatory notes to the consolidated statements of cash flows (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Statement of cash flows [abstract] | |
Disclosure of reconciliation of liabilities arising from financing activities | The following is a reconciliation of liabilities arising from financing activities for the year ended December 31, 2017: (€ million) Total Debt at January 1, 2017 € 24,048 Derivative (assets)/liabilities and collateral at January 1, 2017 150 Total Liabilities from financing activities at January 1, 2017 € 24,198 Cash flows € (4,470 ) Foreign exchange effects € (1,311 ) Fair value changes € (286 ) Changes in scope of consolidation € (83 ) Other changes € (283 ) Total Liabilities from financing activities at December 31, 2017 € 17,765 Derivative (assets)/liabilities and collateral at December 31, 2017 (206 ) Total Debt at December 31, 2017 € 17,971 |
Principal activities (Details)
Principal activities (Details) | Oct. 12, 2014 |
Fiat Investments N.V. | Fiat Chrysler Automobiles N.V. | |
Disclosure of detailed information about financial instruments [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Basis of presentation - princip
Basis of presentation - principal exchange rates (Details) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2017CAD / € | Dec. 31, 2017CAD / €BRL / € | Dec. 31, 2017CAD / €MXN / € | Dec. 31, 2017CAD / €¥ / € | Dec. 31, 2017CAD / €PLN / € | Dec. 31, 2017CAD / €£ / € | Dec. 31, 2017CAD / €ARS / € | Dec. 31, 2017CAD / €SFr / € | Dec. 31, 2017CAD / €$ / € | Dec. 31, 2016CAD / € | Dec. 31, 2016CAD / €BRL / € | Dec. 31, 2016CAD / €MXN / € | Dec. 31, 2016CAD / €¥ / € | Dec. 31, 2016CAD / €PLN / € | Dec. 31, 2016CAD / €£ / € | Dec. 31, 2016CAD / €ARS / € | Dec. 31, 2016CAD / €SFr / € | Dec. 31, 2016CAD / €$ / € | Dec. 31, 2015CAD / € | Dec. 31, 2015CAD / €BRL / € | Dec. 31, 2015CAD / €MXN / € | Dec. 31, 2015CAD / €¥ / € | Dec. 31, 2015CAD / €PLN / € | Dec. 31, 2015CAD / €£ / € | Dec. 31, 2015CAD / €ARS / € | Dec. 31, 2015CAD / €SFr / € | Dec. 31, 2015CAD / €$ / € | Dec. 31, 2017BRL / € | Dec. 31, 2017MXN / € | Dec. 31, 2017¥ / € | Dec. 31, 2017PLN / € | Dec. 31, 2017£ / € | Dec. 31, 2017ARS / € | Dec. 31, 2017SFr / € | Dec. 31, 2017$ / € | Dec. 31, 2016BRL / € | Dec. 31, 2016MXN / € | Dec. 31, 2016¥ / € | Dec. 31, 2016PLN / € | Dec. 31, 2016£ / € | Dec. 31, 2016ARS / € | Dec. 31, 2016SFr / € | Dec. 31, 2016$ / € | Mar. 31, 2016VEF / $ | Feb. 29, 2016VEF / $ | Dec. 31, 2015BRL / € | Dec. 31, 2015MXN / € | Dec. 31, 2015¥ / € | Dec. 31, 2015PLN / € | Dec. 31, 2015£ / € | Dec. 31, 2015ARS / € | Dec. 31, 2015SFr / € | Dec. 31, 2015$ / € | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Average foreign exchange rate | 1.465 | 3.605 | 21.329 | 7.629 | 4.257 | 0.877 | 18.683 | 1.112 | 1.130 | 1.466 | 3.857 | 20.664 | 7.352 | 4.363 | 0.819 | 16.327 | 1.090 | 1.107 | 1.418 | 3.699 | 17.611 | 6.972 | 4.184 | 0.726 | 10.271 | 1.068 | 1.109 | ||||||||||||||||||||||||||
Closing foreign exchange rate | 1.504 | 1.504 | 1.504 | 1.504 | 1.504 | 1.504 | 1.504 | 1.504 | 1.504 | 1.419 | 1.419 | 1.419 | 1.419 | 1.419 | 1.419 | 1.419 | 1.419 | 1.419 | 1.512 | 1.512 | 1.512 | 1.512 | 1.512 | 1.512 | 1.512 | 1.512 | 1.512 | 3.973 | 23.661 | 7.804 | 4.177 | 0.887 | 22.595 | 1.170 | 1.199 | 3.431 | 21.772 | 7.320 | 4.410 | 0.856 | 16.707 | 1.074 | 1.054 | 10 | 6.3 | 4.312 | 18.915 | 7.061 | 4.264 | 0.734 | 14.136 | 1.084 | 1.089 |
Basis of presentation - intangi
Basis of presentation - intangible assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Models | Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets useful life | 5 years |
Models | Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets useful life | 6 years |
Powertrains | Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets useful life | 10 years |
Powertrains | Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets useful life | 12 years |
Basis of presentation - propert
Basis of presentation - property, plant and equipment (Details) | Dec. 31, 2017 |
Buildings | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation percentage | 3.00% |
Buildings | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation percentage | 8.00% |
Plant, machinery and equipment | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation percentage | 3.00% |
Plant, machinery and equipment | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation percentage | 33.00% |
Other assets | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation percentage | 5.00% |
Other assets | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation percentage | 33.00% |
Basis of presentation - borrowi
Basis of presentation - borrowing costs (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | ||
Borrowing Costs | € 225 | € 244 |
Basis of presentation - cost of
Basis of presentation - cost of revenues (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |||
Interest expense from financial services and write-downs of assets included in cost of revenue | € 53 | € 77 | € 115 |
Decrease In assets sold with buy-back commitment related in cost of revenue | € 397 | € 384 | € 432 |
Basis of presentation - effect
Basis of presentation - effect on pension obligation (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Pension benefits | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 3.70% | 4.30% |
Pension benefits | Actuarial assumption of discount rates | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of reasonably possible decrease in actuarial assumption | 10.00% | |
Percentage of reasonably possible increase in actuarial assumption | 10.00% | |
Decrease in actuarial assumption, effect on pension benefit obligation | € 306 | |
Increase in actuarial assumption, effect on pension benefit obligation | € (299) | |
Health care and life insurance plans | Actuarial assumption of discount rates | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of reasonably possible decrease in actuarial assumption | 0.01% | |
Percentage of reasonably possible increase in actuarial assumption | 0.01% | |
Decrease in actuarial assumption, effect on pension benefit obligation | € 30 | |
Increase in actuarial assumption, effect on pension benefit obligation | € (30) | |
Health care and life insurance plans | Actuarial assumption of health care cost trend rate | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of reasonably possible decrease in actuarial assumption | 1.00% | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% | |
Decrease in actuarial assumption, effect on pension benefit obligation | € (45) | |
Increase in actuarial assumption, effect on pension benefit obligation | € 54 | |
Other post-employment benefits | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 1.20% | 1.00% |
Other post-employment benefits | Actuarial assumption of discount rates | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of reasonably possible decrease in actuarial assumption | 1.00% | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% | |
Decrease in actuarial assumption, effect on pension benefit obligation | € 54 | |
Increase in actuarial assumption, effect on pension benefit obligation | € (47) | |
Other post-employment benefits | Actuarial assumption of health care cost trend rate | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of reasonably possible decrease in actuarial assumption | 1.00% | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% | |
Decrease in actuarial assumption, effect on pension benefit obligation | € 0 | |
Increase in actuarial assumption, effect on pension benefit obligation | € 0 |
Basis of presentation - impairm
Basis of presentation - impairment (Details) - EUR (€) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | € 229,000,000 | € 225,000,000 | € 118,000,000 | |
Growth rate used to extrapolate cash flow projections | 2.00% | |||
Goodwill and intangible assets with indefinite useful lives | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss recognised in profit or loss, intangible assets and goodwill | € 0 | 0 | 0 | |
Bottom of range | ||||
Disclosure of information for cash-generating units [line items] | ||||
Discount rate applied to cash flow projections | 12.30% | |||
Top of range | ||||
Disclosure of information for cash-generating units [line items] | ||||
Discount rate applied to cash flow projections | 18.60% | |||
Non-current assets with definite useful lives | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | 195,000,000 | 713,000,000 | ||
Non-current assets with definite useful lives | Cash-generating units | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | 598,000,000 | |||
Accumulated amortization and impairment losses | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment losses and asset write-offs | € (119,000,000) | (73,000,000) | ||
Accumulated amortization and impairment losses | Cash-generating units | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment losses and asset write-offs | 422,000,000 | |||
Venezuela | Accumulated amortization and impairment losses | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment losses and asset write-offs | 21,000,000 | 43,000,000 | ||
Capitalised development expenditure | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment and write-off of capitalized development expenditures | 110,000,000 | 121,000,000 | 221,000,000 | |
Capitalised development expenditure | Cash-generating units | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment and write-off of capitalized development expenditures | 176,000,000 | |||
Capitalised development expenditure | SUV | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment and write-off of capitalized development expenditures | 90,000,000 | |||
Venezuelan Operations | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | € 21,000,000 | |||
EMEA | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | 142,000,000 | |||
EMEA | Operating segments | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | 142,000,000 | 7,000,000 | 46,000,000 | |
LATAM | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | 56,000,000 | |||
LATAM | Operating segments | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | € 77,000,000 | € 52,000,000 | € 16,000,000 |
Basis of presentation - new sta
Basis of presentation - new standards and amendments (Details) € in Millions | Dec. 31, 2017EUR (€) |
IFRS 15 | |
Disclosure of changes in accounting estimates [line items] | |
Cumulative adjustment (less than) | € 50 |
Scope of consolidation - list o
Scope of consolidation - list of principal subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2017 | |
FCA US LLC | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA Canada Inc. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA Mexico, S.A. de C.V. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA Fiat Chrysler Automoveis Brasil LTDA | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA Automobiles Argentina S.A. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Banco Fidis S.A. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Chrysler Group (China) Sales Limited | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA Japan Ltd. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA Australia Pty Ltd. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA Automotive Finance Co. Ltd. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA Italy S.p.A. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA Melfi S.r.l. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA Poland Spólka Akcyjna | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA Powertrain Poland Sp. z o.o. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA Serbia d.o.o. Kragujevac | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 66.67% |
FCA Germany AG | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA France S.A. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Fiat Chrysler Automobiles UK Ltd. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Fiat Chrysler Automobiles Spain S.A. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Fidis S.p.A. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Maserati S.p.A. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Maserati (China) Cars Trading Co. Ltd. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Maserati North America Inc. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Magneti Marelli S.p.A. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 99.99% |
Proportion of voting rights held in subsidiary | 100.00% |
Automotive Lighting LLC | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Automotive Lighting Reutlingen GmbH | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 99.99% |
Teksid S.p.A. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Comau S.p.A. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
COMAU LLC | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
FCA North America Holdings LLC | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Fiat Chrysler Finance S.p.A. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Fiat Chrysler Finance Europe S.A. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Scope of consolidation - held f
Scope of consolidation - held for sale (Details) € in Millions | Jun. 27, 2017 | Jul. 31, 2016 | Dec. 31, 2017EUR (€) | Jul. 02, 2017 | Dec. 31, 2016EUR (€) |
Assets And Liabilities Classified As Held For Sale [Line Items] | |||||
Investment distribution to shareholders, ratio of investment shares distributed to entity shares | 0.0484 | ||||
Assets classified as held for sale | |||||
Other intangible assets | € 11,542 | € 11,422 | |||
Property, plant and equipment | 29,014 | 30,431 | |||
Trade receivables | 2,460 | 2,479 | |||
Total Assets | 96,299 | 104,343 | |||
Liabilities classified as held for sale | |||||
Debt and Other | 17,971 | 24,048 | |||
GEDI Gruppo Editoriale S.p.A. | CIR S.p.A | |||||
Assets And Liabilities Classified As Held For Sale [Line Items] | |||||
Shareholder ownership percentage | 43.40% | ||||
GEDI Gruppo Editoriale S.p.A. | FCA Group | |||||
Assets And Liabilities Classified As Held For Sale [Line Items] | |||||
Shareholder ownership percentage | 14.63% | ||||
GEDI Gruppo Editoriale S.p.A. | Ital Press | |||||
Assets And Liabilities Classified As Held For Sale [Line Items] | |||||
Shareholder ownership percentage | 4.37% | ||||
Italiana Editrice S.p.A | |||||
Assets And Liabilities Classified As Held For Sale [Line Items] | |||||
Proportion of ownership interest in subsidiary | 77.00% | ||||
Ownership in subsidiary sold by entity and noncontrolling interest holders percent | 100.00% | ||||
Gains (losses) recognised | € 49 | ||||
Italiana Editrice S.p.A | Disposal groups classified as held for sale | |||||
Assets classified as held for sale | |||||
Goodwill | 54 | ||||
Other intangible assets | 7 | ||||
Property, plant and equipment | 17 | ||||
Trade receivables | 25 | ||||
Other | 17 | ||||
Total Assets | 120 | ||||
Liabilities classified as held for sale | |||||
Provisions | 38 | ||||
Trade payables | 19 | ||||
Debt and Other | 40 | ||||
Total Liabilities held for sale | € 97 |
Scope of consolidation - spin o
Scope of consolidation - spin off and discontinued operations (Details) € / shares in Units, € in Millions | Jan. 13, 2016€ / shares | Oct. 26, 2015EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 15, 2016 | Jan. 03, 2016 |
Disclosure of subsidiaries [line items] | |||||||
Proceeds from changes in ownership interests in subsidiaries that do not result in loss of control | € 0 | € 0 | € 866 | ||||
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity | 866 | ||||||
Net revenues | 2,596 | ||||||
Expenses | 2,152 | ||||||
Net financial expenses/(income) | 16 | ||||||
Profit before taxes from discontinued operations | 428 | ||||||
Tax expense | 144 | ||||||
Profit from discontinued operations, net of tax | € 0 | € 0 | € 284 | ||||
Convertible securities conversion ratio | 0.083077 | ||||||
Dividends recognised as distributions to owners per share | € / shares | € 0.01 | ||||||
Ferrari N.V. | |||||||
Disclosure of subsidiaries [line items] | |||||||
Proportion of ownership interest in subsidiary sold | 10.00% | 10.00% | |||||
Proceeds from changes in ownership interests in subsidiaries that do not result in loss of control | € 900 | ||||||
Proportion of ownership interest in subsidiary | 80.00% | ||||||
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity | € 866 | ||||||
Loans and receivables | 2,800 | ||||||
Payments for changes in ownership interests in subsidiaries | € 280 | ||||||
Convertible securities conversion ratio | 0.0077369 | ||||||
Piero Ferrari | Ferrari N.V. | |||||||
Disclosure of subsidiaries [line items] | |||||||
Proportion of ownership interests held by non-controlling interests | 10.00% | ||||||
Public Shareholders | Ferrari N.V. | |||||||
Disclosure of subsidiaries [line items] | |||||||
Proportion of ownership interests held by non-controlling interests | 10.00% | ||||||
Non-controlling interests | |||||||
Disclosure of subsidiaries [line items] | |||||||
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity | € (7) | ||||||
Non-controlling interests | Ferrari N.V. | |||||||
Disclosure of subsidiaries [line items] | |||||||
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity | € (7) | ||||||
Equity attributable to owners of parent | Ferrari N.V. | |||||||
Disclosure of subsidiaries [line items] | |||||||
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity | € 873 | ||||||
Common shares | Ferrari N.V. | |||||||
Disclosure of subsidiaries [line items] | |||||||
Spinoff shareholder conversion ratio | 0.10 | ||||||
Special voting shares | Ferrari N.V. | |||||||
Disclosure of subsidiaries [line items] | |||||||
Spinoff shareholder conversion ratio | 0.10 |
Scope of consolidation - decons
Scope of consolidation - deconsolidation of FCA Venezuela (Details) € in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2017EUR (€) | Jun. 30, 2015EUR (€)VEF / $ | Dec. 31, 2017EUR (€)CAD / € | Dec. 31, 2016EUR (€)VEF / $ | Dec. 31, 2015EUR (€)CAD / € | Dec. 31, 2017BRL / € | Dec. 31, 2017MXN / € | Dec. 31, 2017¥ / € | Dec. 31, 2017PLN / € | Dec. 31, 2017£ / € | Dec. 31, 2017ARS / € | Dec. 31, 2017SFr / € | Dec. 31, 2017$ / € | Dec. 31, 2016CAD / € | Dec. 31, 2016BRL / € | Dec. 31, 2016MXN / € | Dec. 31, 2016¥ / € | Dec. 31, 2016PLN / € | Dec. 31, 2016£ / € | Dec. 31, 2016ARS / € | Dec. 31, 2016SFr / € | Dec. 31, 2016$ / € | Mar. 31, 2016VEF / $ | Feb. 29, 2016VEF / $ | Dec. 31, 2015BRL / € | Dec. 31, 2015MXN / € | Dec. 31, 2015¥ / € | Dec. 31, 2015PLN / € | Dec. 31, 2015£ / € | Dec. 31, 2015ARS / € | Dec. 31, 2015SFr / € | Dec. 31, 2015$ / € | Feb. 28, 2015VEF / $ | Mar. 31, 2014VEF / $ | |
Disclosure of subsidiaries [line items] | ||||||||||||||||||||||||||||||||||
Impairment loss | € 229 | € 225 | € 118 | |||||||||||||||||||||||||||||||
Deconsolidation, loss | € 42 | |||||||||||||||||||||||||||||||||
Closing foreign exchange rate | 1.504 | 1.512 | 3.973 | 23.661 | 7.804 | 4.177 | 0.887 | 22.595 | 1.170 | 1.199 | 1.419 | 3.431 | 21.772 | 7.320 | 4.410 | 0.856 | 16.707 | 1.074 | 1.054 | 10 | 6.3 | 4.312 | 18.915 | 7.061 | 4.264 | 0.734 | 14.136 | 1.084 | 1.089 | |||||
Loss on net monetary position | € 19 | € 80 | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||||||||||||||||||||||||
Loss on net monetary position | € 53 | |||||||||||||||||||||||||||||||||
Inventory | ||||||||||||||||||||||||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||||||||||||||||||||||||
Loss on net monetary position | € 27 | |||||||||||||||||||||||||||||||||
DICOM | ||||||||||||||||||||||||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||||||||||||||||||||||||
Closing foreign exchange rate | VEF / $ | 674 | |||||||||||||||||||||||||||||||||
SIMADI | ||||||||||||||||||||||||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||||||||||||||||||||||||
Closing foreign exchange rate | VEF / $ | 197.3 | 170 | ||||||||||||||||||||||||||||||||
SICAD | ||||||||||||||||||||||||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||||||||||||||||||||||||
Closing foreign exchange rate | VEF / $ | 12 | |||||||||||||||||||||||||||||||||
Venezuelan Operations | ||||||||||||||||||||||||||||||||||
Disclosure of subsidiaries [line items] | ||||||||||||||||||||||||||||||||||
Impairment loss | € 21 | |||||||||||||||||||||||||||||||||
Deconsolidation, loss | € 42 |
Scope of consolidation - non-co
Scope of consolidation - non-controlling interests (Details) - EUR (€) € in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2017 | Dec. 31, 2015 | Sep. 30, 2017 | |
FMM Pernambuco | |||
Disclosure of subsidiaries [line items] | |||
Percent of subsidiary disposed | 16.00% | ||
Gains on disposals of investments | € 19 | ||
Teksid S.p.A. | |||
Disclosure of subsidiaries [line items] | |||
Additional percentage acquired | 15.20% |
Net revenues - summary of reven
Net revenues - summary of revenue (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Sales of goods | € 107,219 | € 107,497 | € 107,095 |
Services provided | 2,217 | 2,237 | 1,600 |
Contract revenues | 929 | 737 | 1,309 |
Lease installments from assets sold with a buy-back commitment | 421 | 405 | 403 |
Interest income of financial services activities | 148 | 142 | 188 |
Total Net revenues | € 110,934 | € 111,018 | € 110,595 |
Net revenues - summary of rev82
Net revenues - summary of revenue by geographical area (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of geographical areas [line items] | |||
Net revenues | € 110,934 | € 111,018 | € 110,595 |
North America | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 68,374 | 71,047 | 71,979 |
Italy | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 8,755 | 8,478 | 7,165 |
Brazil | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 6,406 | 4,953 | 5,103 |
China | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 4,240 | 4,493 | 4,720 |
Germany | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 3,990 | 4,160 | 3,794 |
France | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 3,487 | 3,266 | 2,852 |
Argentina | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 1,817 | 1,409 | 1,175 |
Spain | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 1,569 | 1,467 | 1,254 |
Turkey | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 1,456 | 1,705 | 1,682 |
United Kingdom | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 1,366 | 1,632 | 1,744 |
Japan | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 816 | 713 | 625 |
Australia | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 497 | 473 | 936 |
Other countries | |||
Disclosure of geographical areas [line items] | |||
Net revenues | € 8,161 | € 7,222 | € 7,566 |
Research and development cost83
Research and development costs (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about intangible assets [line items] | |||
Research and development expenditures expensed | € 1,696 | € 1,661 | € 1,449 |
Total Research and development costs | 3,230 | 3,274 | 2,864 |
Capitalised development expenditure | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amortization of capitalized development expenditures | 1,424 | 1,492 | 1,194 |
Impairment and write-off of capitalized development expenditures | € 110 | 121 | 221 |
Capitalised development expenditure | SUV | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment and write-off of capitalized development expenditures | € 90 | ||
Capitalised development expenditure | Ram Pickup Trucks and Jeep Vehicles | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment and write-off of capitalized development expenditures | € 176 |
Net financial expenses (Details
Net financial expenses (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Interest income and other financial income | € 182 | € 226 | € 365 |
Financial expenses: | |||
Interest expense and other financial expenses: | 1,128 | 1,500 | 2,084 |
Interest expense on notes | 568 | 749 | 1,112 |
Interest expense on borrowings from bank | 372 | 472 | 512 |
Other interest cost and financial expenses | 188 | 279 | 460 |
Write-down of financial assets | 23 | 76 | 43 |
Losses on disposal of securities | 5 | 6 | 28 |
Net interest expense on employee benefits provisions | 310 | 348 | 350 |
Total Financial expenses | 1,466 | 1,930 | 2,505 |
Net expenses from derivative financial instruments and exchange rate differences | 185 | 312 | 226 |
Total Financial expenses and Net expenses from derivative financial instruments and exchange rate differences | 1,651 | 2,242 | 2,731 |
Net Financial expenses | € 1,469 | € 2,016 | € 2,366 |
Net financial expenses - narrat
Net financial expenses - narrative (Details) € in Millions, $ in Billions | Mar. 15, 2016EUR (€) | Mar. 15, 2016USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) |
FCA Trance B Term Loans | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Gain (loss) on extinguishment of debt | € (3) | € (10) | |||
Repayments of borrowings | € 1,800 | $ 2 | |||
Canada HCT Tranche B Note | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Gain (loss) on extinguishment of debt | 9 | ||||
Repayments of borrowings | € 272 | ||||
Unsecured Canada HCT Tranche C Note | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Gain (loss) on extinguishment of debt | € (8) | ||||
Secured senior notes due in 2019 and 2021 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Gain (loss) on extinguishment of debt | € (168) |
Tax expense - tax expense summa
Tax expense - tax expense summary (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Current tax expense | € 901 | € 869 | € 445 |
Deferred tax expense/(benefit) | 1,773 | 391 | (277) |
Tax expense/(benefit) relating to prior periods | (23) | 32 | (2) |
Total Tax expense | € 2,651 | € 1,292 | € 166 |
Tax expense - theoretical and r
Tax expense - theoretical and recognized income tax reconciliation (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Theoretical income taxes | € 1,186 | € 621 | € 51 |
Tax effect on: | |||
Recognition and utilization of previously unrecognized deferred tax assets | (164) | (42) | (20) |
Permanent differences | (397) | (194) | (36) |
Tax credits | (23) | (340) | (238) |
Deferred tax assets not recognized and write-downs | 1,092 | 531 | 303 |
Differences between foreign tax rates and the theoretical applicable tax rate and tax holidays | 924 | 587 | 70 |
Taxes relating to prior years | (23) | 32 | (2) |
Tax rate changes | (22) | 0 | 0 |
Withholding tax | 83 | 61 | 49 |
Other differences | 0 | (8) | (36) |
Total Tax expense, excluding IRAP | € 2,656 | € 1,248 | € 141 |
Effective tax rate | 43.00% | 40.20% | 54.40% |
IRAP (current and deferred) | € (5) | € 44 | € 25 |
Total Tax expense | € 2,651 | € 1,292 | € 166 |
Tax expense - deferred tax asse
Tax expense - deferred tax assets and liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes [Abstract] | |||
Deferred tax assets | € 2,004 | € 3,699 | |
Deferred tax liabilities | (388) | (194) | |
Deferred tax asset (liability) | € 1,616 | € 3,505 | € 3,900 |
Tax expense - deferred tax roll
Tax expense - deferred tax rollforward (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | € 3,699 | |
Deferred tax liabilities | (194) | |
Deferred tax asset (liability) | 3,505 | € 3,900 |
Recognized in Consolidated Income Statement | (1,773) | (391) |
Recognized in Equity | (31) | (192) |
Transfer to assets held for sale | (1) | |
Translation differences and other changes | (85) | 189 |
Deferred tax assets | 2,004 | 3,699 |
Deferred tax liabilities | (388) | (194) |
Deferred tax asset (liability) | 1,616 | 3,505 |
Provisions | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | 6,149 | 6,028 |
Recognized in Consolidated Income Statement | (1,742) | (4) |
Recognized in Equity | 0 | 0 |
Transfer to assets held for sale | (6) | |
Translation differences and other changes | (559) | 131 |
Deferred tax assets | 3,848 | 6,149 |
Provision for employee benefits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | 2,851 | 2,866 |
Recognized in Consolidated Income Statement | (364) | (11) |
Recognized in Equity | (16) | (263) |
Transfer to assets held for sale | 0 | |
Translation differences and other changes | (643) | 259 |
Deferred tax assets | 1,828 | 2,851 |
Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | 211 | 249 |
Recognized in Consolidated Income Statement | (19) | (42) |
Recognized in Equity | 0 | 0 |
Transfer to assets held for sale | 0 | |
Translation differences and other changes | 0 | 4 |
Deferred tax assets | 192 | 211 |
Impairment of financial assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | 195 | 155 |
Recognized in Consolidated Income Statement | (25) | 47 |
Recognized in Equity | 0 | 0 |
Transfer to assets held for sale | (2) | |
Translation differences and other changes | (1) | (5) |
Deferred tax assets | 169 | 195 |
Inventories | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | 251 | 243 |
Recognized in Consolidated Income Statement | 3 | 6 |
Recognized in Equity | 0 | 0 |
Transfer to assets held for sale | 0 | |
Translation differences and other changes | (2) | 2 |
Deferred tax assets | 252 | 251 |
Allowances for doubtful accounts | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | 117 | 87 |
Recognized in Consolidated Income Statement | 19 | 21 |
Recognized in Equity | 0 | 0 |
Transfer to assets held for sale | (2) | |
Translation differences and other changes | (14) | 11 |
Deferred tax assets | 122 | 117 |
Other | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | 385 | 691 |
Recognized in Consolidated Income Statement | (13) | (270) |
Recognized in Equity | (14) | 64 |
Transfer to assets held for sale | 0 | |
Translation differences and other changes | 29 | (100) |
Deferred tax assets | 387 | 385 |
Deferred tax assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | 10,159 | 10,319 |
Recognized in Consolidated Income Statement | (2,141) | (253) |
Recognized in Equity | (30) | (199) |
Transfer to assets held for sale | (10) | |
Translation differences and other changes | (1,190) | 302 |
Deferred tax assets | 6,798 | 10,159 |
Accelerated depreciation | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (2,770) | (2,746) |
Recognized in Consolidated Income Statement | 430 | (53) |
Recognized in Equity | 0 | 0 |
Transfer to assets held for sale | 1 | |
Translation differences and other changes | 449 | 28 |
Deferred tax liabilities | (1,891) | (2,770) |
Capitalized development assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (2,742) | (2,376) |
Recognized in Consolidated Income Statement | 399 | (310) |
Recognized in Equity | 0 | 0 |
Transfer to assets held for sale | 0 | |
Translation differences and other changes | 227 | (56) |
Deferred tax liabilities | (2,116) | (2,742) |
Other Intangible assets and Intangible assets with indefinite useful lives | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (1,493) | (1,427) |
Recognized in Consolidated Income Statement | 238 | 23 |
Recognized in Equity | 0 | 0 |
Transfer to assets held for sale | 7 | |
Translation differences and other changes | 406 | (96) |
Deferred tax liabilities | (849) | (1,493) |
Provision for employee benefits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (14) | (14) |
Recognized in Consolidated Income Statement | (30) | 0 |
Recognized in Equity | 0 | 2 |
Transfer to assets held for sale | 1 | |
Translation differences and other changes | (6) | (3) |
Deferred tax liabilities | (50) | (14) |
Other | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (331) | (390) |
Recognized in Consolidated Income Statement | 4 | 67 |
Recognized in Equity | (10) | 5 |
Transfer to assets held for sale | 0 | |
Translation differences and other changes | 23 | (13) |
Deferred tax liabilities | (314) | (331) |
Deferred tax liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (7,350) | (6,953) |
Recognized in Consolidated Income Statement | 1,041 | (273) |
Recognized in Equity | (10) | 7 |
Transfer to assets held for sale | 9 | |
Translation differences and other changes | 1,099 | (140) |
Deferred tax liabilities | (5,220) | (7,350) |
Deferred tax asset arising on tax loss carry-forwards | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | 4,444 | 3,717 |
Recognized in Consolidated Income Statement | 522 | 662 |
Recognized in Equity | 0 | 0 |
Transfer to assets held for sale | (20) | |
Translation differences and other changes | (248) | 85 |
Deferred tax assets | 4,718 | 4,444 |
Unrecognized deferred tax assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | (3,748) | (3,183) |
Recognized in Consolidated Income Statement | (1,195) | (527) |
Recognized in Equity | 9 | 0 |
Transfer to assets held for sale | 20 | |
Translation differences and other changes | 254 | (58) |
Deferred tax assets | € (4,680) | € (3,748) |
Tax expense - temporary differe
Tax expense - temporary differences and tax loss maturity schedule (Details) € in Millions | Dec. 31, 2017EUR (€) |
Corporate taxation | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | € (17,534) |
Temporary differences and tax losses | 6,291 |
Corporate taxation | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 28,720 |
Corporate taxation | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (23,028) |
Corporate taxation | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 18,133 |
Corporate taxation | 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (640) |
Temporary differences and tax losses | 782 |
Corporate taxation | 2018 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 3,665 |
Corporate taxation | 2018 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (2,390) |
Corporate taxation | 2018 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 147 |
Corporate taxation | 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (292) |
Temporary differences and tax losses | 520 |
Corporate taxation | 2019 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 2,974 |
Corporate taxation | 2019 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (2,304) |
Corporate taxation | 2019 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 142 |
Corporate taxation | 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (147) |
Temporary differences and tax losses | 452 |
Corporate taxation | 2020 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 2,786 |
Corporate taxation | 2020 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (2,323) |
Corporate taxation | 2020 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 136 |
Corporate taxation | 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (649) |
Temporary differences and tax losses | 475 |
Corporate taxation | 2021 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 3,293 |
Corporate taxation | 2021 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (2,324) |
Corporate taxation | 2021 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 155 |
Corporate taxation | Beyond 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (3,464) |
Temporary differences and tax losses | 5,502 |
Corporate taxation | Beyond 2021 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 15,512 |
Corporate taxation | Beyond 2021 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (10,390) |
Corporate taxation | Beyond 2021 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 3,844 |
Corporate taxation | Unlimited/ Indeterminable | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (12,342) |
Temporary differences and tax losses | (1,440) |
Corporate taxation | Unlimited/ Indeterminable | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 490 |
Corporate taxation | Unlimited/ Indeterminable | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (3,297) |
Corporate taxation | Unlimited/ Indeterminable | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 13,709 |
Local taxation | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (4,439) |
Temporary differences and tax losses | 940 |
Local taxation | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 9,657 |
Local taxation | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (7,993) |
Local taxation | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 3,715 |
Local taxation | 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (398) |
Temporary differences and tax losses | 141 |
Local taxation | 2018 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 1,177 |
Local taxation | 2018 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (691) |
Local taxation | 2018 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 53 |
Local taxation | 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (157) |
Temporary differences and tax losses | (18) |
Local taxation | 2019 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 761 |
Local taxation | 2019 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (658) |
Local taxation | 2019 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 36 |
Local taxation | 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (82) |
Temporary differences and tax losses | (121) |
Local taxation | 2020 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 599 |
Local taxation | 2020 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (671) |
Local taxation | 2020 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 33 |
Local taxation | 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (635) |
Temporary differences and tax losses | (47) |
Local taxation | 2021 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 1,149 |
Local taxation | 2021 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (681) |
Local taxation | 2021 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 120 |
Local taxation | Beyond 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (2,601) |
Temporary differences and tax losses | 1,057 |
Local taxation | Beyond 2021 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 5,909 |
Local taxation | Beyond 2021 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (5,153) |
Local taxation | Beyond 2021 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 2,902 |
Local taxation | Unlimited/ Indeterminable | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (566) |
Temporary differences and tax losses | (72) |
Local taxation | Unlimited/ Indeterminable | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 62 |
Local taxation | Unlimited/ Indeterminable | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (139) |
Local taxation | Unlimited/ Indeterminable | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | € 571 |
Tax expense - narrative (Detail
Tax expense - narrative (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Applicable tax rate | 19.25% | 20.00% | 20.25% |
Income tax expense, IRAP, current | € 33 | € 36 | € 16 |
Income tax expense (benefit), IRAP, deferred | € (38) | € 8 | € 9 |
Effective tax rate | 43.00% | 40.20% | 54.40% |
Deferred tax expense (income) relating to tax rate changes or imposition of new taxes | € 88 | ||
Repatriation, provisional income tax expense | 117 | ||
Change in deferred tax liability | 137 | ||
Change in deferred tax liability, recognized in profit or loss | 29 | ||
Change in deferred tax liability, recognized in equity | 108 | ||
Change in deferred tax asset | 71 | ||
Deferred tax assets | 2,004 | € 3,699 | |
Deferred tax assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 6,798 | 10,159 | € 10,319 |
Unrecognised deferred tax assets, deductible temporary differences | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 940 | 551 | |
Tax losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 4,718 | 4,444 | 3,717 |
Unrecognised deferred tax assets, unused tax losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 3,740 | 3,197 | |
Unrecognized deferred tax assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | (4,680) | (3,748) | € (3,183) |
United States | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Increase (decrease) in deferred tax liability (asset) | (1,268) | ||
EMEA | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Increase (decrease) in deferred tax liability (asset) | 178 | ||
Brazil | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Increase (decrease) in deferred tax liability (asset) | (734) | ||
Reversal of indirect tax liability | 281 | ||
Deferred tax asset, written off | 453 | ||
Deferred tax assets | 1,287 | 1,276 | |
Brazil | Recognized deferred tax assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | (148) | (976) | |
Brazil | Unrecognized deferred tax assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 1,139 | 300 | |
Italy | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 3,256 | 2,902 | |
Italy | Recognized deferred tax assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | (898) | (750) | |
Italy | Unrecognized deferred tax assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | € 2,358 | € 2,152 |
Other information by nature (De
Other information by nature (Details) € in Billions | 12 Months Ended | ||
Dec. 31, 2017EUR (€)employee | Dec. 31, 2016EUR (€)employee | Dec. 31, 2015EUR (€)employee | |
Additional information [abstract] | |||
Personnel costs | € | € 13.2 | € 13.2 | € 13.4 |
Average number of employees | employee | 237,150 | 235,481 | 236,559 |
Goodwill and intangible asset93
Goodwill and intangible assets with indefinite useful lives - schedule of goodwill and intangible assets (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Brands | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | € 3,405 | € 3,293 |
Translation differences and Other | (411) | 112 |
Transfer to Assets held for sale | 0 | |
Intangible assets and goodwill | 2,994 | 3,405 |
Goodwill | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | 11,817 | 11,497 |
Translation differences and Other | (1,421) | 374 |
Transfer to Assets held for sale | (54) | |
Intangible assets and goodwill | 10,396 | 11,817 |
Goodwill | Gross amount | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | 12,299 | 11,966 |
Translation differences and Other | (1,449) | 387 |
Transfer to Assets held for sale | (54) | |
Intangible assets and goodwill | 10,850 | 12,299 |
Goodwill | Accumulated impairment losses | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | (482) | (469) |
Translation differences and Other | 28 | (13) |
Transfer to Assets held for sale | 0 | |
Intangible assets and goodwill | (454) | (482) |
Goodwill and intangible assets with indefinite useful lives | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | 15,222 | 14,790 |
Translation differences and Other | (1,832) | 486 |
Transfer to Assets held for sale | (54) | |
Intangible assets and goodwill | € 13,390 | € 15,222 |
Goodwill and intangible asset94
Goodwill and intangible assets with indefinite useful lives - narrative (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Acquisitions through business combinations, intangible assets and goodwill | € 10,311,000,000 | € 11,731,000,000 | |
Goodwill and intangible assets with indefinite useful lives | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill classified within assets held for sale | 54,000,000 | ||
Impairment charges, goodwill and intangible assets with indefinite lives | € 0 | € 0 | € 0 |
Goodwill and intangible asset95
Goodwill and intangible assets with indefinite useful lives - allocation summary (Details) - Goodwill - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of operating segments [line items] | |||
Intangible assets and goodwill | € 10,396 | € 11,817 | € 11,497 |
NAFTA | |||
Disclosure of operating segments [line items] | |||
Intangible assets and goodwill | 8,453 | 9,618 | |
APAC | |||
Disclosure of operating segments [line items] | |||
Intangible assets and goodwill | 1,099 | 1,250 | |
LATAM | |||
Disclosure of operating segments [line items] | |||
Intangible assets and goodwill | 529 | 602 | |
EMEA | |||
Disclosure of operating segments [line items] | |||
Intangible assets and goodwill | 253 | 285 | |
Components | |||
Disclosure of operating segments [line items] | |||
Intangible assets and goodwill | € 62 | € 62 |
Other intangible assets (Detail
Other intangible assets (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Contractual commitments for acquisition of intangible assets | € 601 | € 417 | |
Development expenditures | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Amortization | 1,424 | 1,492 | € 1,194 |
Impairment losses and asset write-offs | 110 | 121 | 221 |
Development expenditures | SUV | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Impairment losses and asset write-offs | 90 | ||
Development expenditures | Externally acquired | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 5,980 | ||
Intangible assets other than goodwill | 6,444 | 5,980 | |
Development expenditures | Internally generated | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 3,379 | ||
Intangible assets other than goodwill | 3,253 | 3,379 | |
Development expenditures | Gross amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Additions | 2,586 | 2,558 | |
Development expenditures | Gross amount | Externally acquired | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 11,072 | 9,262 | |
Additions | 1,997 | 1,546 | |
Divestitures | (289) | (1) | |
Translation differences and other changes | (967) | 265 | |
Transfer to Assets held for sale | 0 | ||
Intangible assets other than goodwill | 11,813 | 11,072 | 9,262 |
Development expenditures | Gross amount | Internally generated | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 7,667 | 6,487 | |
Additions | 589 | 1,012 | |
Divestitures | (40) | (49) | |
Translation differences and other changes | (130) | 217 | |
Transfer to Assets held for sale | 0 | ||
Intangible assets other than goodwill | 8,086 | 7,667 | 6,487 |
Development expenditures | Accumulated amortization and impairment losses | Externally acquired | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | (5,092) | (3,993) | |
Amortization | (829) | (962) | |
Impairment losses and asset write-offs | (52) | (29) | |
Divestitures | 289 | 0 | |
Translation differences and other changes | 315 | (108) | |
Transfer to Assets held for sale | 0 | ||
Intangible assets other than goodwill | (5,369) | (5,092) | (3,993) |
Development expenditures | Accumulated amortization and impairment losses | Internally generated | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | (4,288) | (3,617) | |
Amortization | (595) | (530) | |
Impairment losses and asset write-offs | (58) | (92) | |
Divestitures | 35 | 37 | |
Translation differences and other changes | 73 | (86) | |
Transfer to Assets held for sale | 0 | ||
Intangible assets other than goodwill | (4,833) | (4,288) | (3,617) |
Patents, concessions, licenses and credits | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 1,744 | ||
Intangible assets other than goodwill | 1,554 | 1,744 | |
Patents, concessions, licenses and credits | Gross amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 3,552 | 3,120 | |
Additions | 356 | 490 | |
Divestitures | (16) | (80) | |
Translation differences and other changes | (309) | 22 | |
Transfer to Assets held for sale | 0 | ||
Intangible assets other than goodwill | 3,583 | 3,552 | 3,120 |
Patents, concessions, licenses and credits | Accumulated amortization and impairment losses | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | (1,808) | (1,583) | |
Amortization | (371) | (210) | |
Impairment losses and asset write-offs | 0 | 0 | |
Divestitures | 10 | 20 | |
Translation differences and other changes | 140 | (35) | |
Transfer to Assets held for sale | 0 | ||
Intangible assets other than goodwill | (2,029) | (1,808) | (1,583) |
Other intangible assets | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 319 | ||
Intangible assets other than goodwill | 291 | 319 | |
Other intangible assets | Gross amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 801 | 701 | |
Additions | 65 | 58 | |
Divestitures | (1) | (7) | |
Translation differences and other changes | (61) | 87 | |
Transfer to Assets held for sale | (38) | ||
Intangible assets other than goodwill | 804 | 801 | 701 |
Other intangible assets | Accumulated amortization and impairment losses | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | (482) | (431) | |
Amortization | (61) | (56) | |
Impairment losses and asset write-offs | 0 | (1) | |
Divestitures | 0 | 6 | |
Translation differences and other changes | 30 | (31) | |
Transfer to Assets held for sale | 31 | ||
Intangible assets other than goodwill | (513) | (482) | (431) |
Finite-lived intangible assets | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 11,422 | ||
Intangible assets other than goodwill | 11,542 | 11,422 | |
Finite-lived intangible assets | Gross amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 23,092 | 19,570 | |
Additions | 3,007 | 3,106 | |
Divestitures | (346) | (137) | |
Translation differences and other changes | (1,467) | 591 | |
Transfer to Assets held for sale | (38) | ||
Intangible assets other than goodwill | 24,286 | 23,092 | 19,570 |
Finite-lived intangible assets | Accumulated amortization and impairment losses | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | (11,670) | (9,624) | |
Amortization | (1,856) | (1,758) | |
Impairment losses and asset write-offs | (110) | (122) | |
Divestitures | 334 | 63 | |
Translation differences and other changes | 558 | (260) | |
Transfer to Assets held for sale | 31 | ||
Intangible assets other than goodwill | € (12,744) | € (11,670) | € (9,624) |
Property, plant and equipment -
Property, plant and equipment - summary of property, plant and equipment (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | € 30,431 | |
Change in the scope of consolidation | (39) | |
Translation differences | (2,493) | € 1,547 |
Property, plant and equipment | 29,014 | 30,431 |
Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 67,138 | 59,736 |
Additions | 5,659 | 5,709 |
Divestitures | (1,283) | (843) |
Change in the scope of consolidation | (750) | |
Translation differences | (4,503) | 2,582 |
Transfer to Assets held for sale | (102) | |
Other changes | (14) | 56 |
Property, plant and equipment | 66,247 | 67,138 |
Accumulated amortization and impairment losses | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | (36,707) | (32,282) |
Divestitures | 1,217 | 778 |
Change in the scope of consolidation | 382 | |
Translation differences | 2,010 | (1,035) |
Transfer to Assets held for sale | 85 | |
Other changes | 16 | 18 |
Depreciation | (4,032) | (4,198) |
Impairment losses and asset write-offs | (119) | (73) |
Property, plant and equipment | (37,233) | (36,707) |
Land | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 907 | |
Property, plant and equipment | 848 | 907 |
Land | Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 948 | 900 |
Additions | 20 | 6 |
Divestitures | (11) | (11) |
Change in the scope of consolidation | (2) | |
Translation differences | (71) | 57 |
Transfer to Assets held for sale | 0 | |
Other changes | 1 | (4) |
Property, plant and equipment | 885 | 948 |
Land | Accumulated amortization and impairment losses | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | (41) | (44) |
Divestitures | 2 | 5 |
Change in the scope of consolidation | 1 | |
Translation differences | 1 | (2) |
Transfer to Assets held for sale | 0 | |
Other changes | 1 | 0 |
Depreciation | 0 | 0 |
Impairment losses and asset write-offs | (1) | 0 |
Property, plant and equipment | (37) | (41) |
Industrial buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 5,717 | |
Property, plant and equipment | 5,196 | 5,717 |
Industrial buildings | Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 8,930 | 8,108 |
Additions | 256 | 303 |
Divestitures | (17) | (22) |
Change in the scope of consolidation | (104) | |
Translation differences | (639) | 431 |
Transfer to Assets held for sale | 0 | |
Other changes | 68 | 110 |
Property, plant and equipment | 8,494 | 8,930 |
Industrial buildings | Accumulated amortization and impairment losses | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | (3,213) | (2,782) |
Divestitures | 11 | 12 |
Change in the scope of consolidation | 76 | |
Translation differences | 163 | (93) |
Transfer to Assets held for sale | 0 | |
Other changes | 0 | 3 |
Depreciation | (313) | (309) |
Impairment losses and asset write-offs | (22) | (44) |
Property, plant and equipment | (3,298) | (3,213) |
Plant, machinery and equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 18,695 | |
Property, plant and equipment | 18,971 | 18,695 |
Plant, machinery and equipment | Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 50,389 | 43,908 |
Additions | 3,768 | 3,330 |
Divestitures | (1,163) | (729) |
Change in the scope of consolidation | (618) | |
Translation differences | (3,167) | 1,749 |
Transfer to Assets held for sale | (92) | |
Other changes | 1,844 | 2,223 |
Property, plant and equipment | 51,053 | 50,389 |
Plant, machinery and equipment | Accumulated amortization and impairment losses | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | (31,694) | (28,000) |
Divestitures | 1,126 | 697 |
Change in the scope of consolidation | 287 | |
Translation differences | 1,693 | (875) |
Transfer to Assets held for sale | 77 | |
Other changes | 29 | 14 |
Depreciation | (3,440) | (3,582) |
Impairment losses and asset write-offs | (83) | (25) |
Property, plant and equipment | (32,082) | (31,694) |
Other assets | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 1,479 | |
Property, plant and equipment | 1,203 | 1,479 |
Other assets | Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 3,223 | 2,734 |
Additions | 187 | 453 |
Divestitures | (88) | (70) |
Change in the scope of consolidation | (21) | |
Translation differences | (301) | 120 |
Transfer to Assets held for sale | (10) | |
Other changes | 3 | (4) |
Property, plant and equipment | 3,003 | 3,223 |
Other assets | Accumulated amortization and impairment losses | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | (1,744) | (1,443) |
Divestitures | 78 | 63 |
Change in the scope of consolidation | 18 | |
Translation differences | 152 | (64) |
Transfer to Assets held for sale | 8 | |
Other changes | (19) | 0 |
Depreciation | (279) | (307) |
Impairment losses and asset write-offs | (6) | (1) |
Property, plant and equipment | (1,800) | (1,744) |
Advances and tangible assets in progress | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 3,633 | |
Property, plant and equipment | 2,796 | 3,633 |
Advances and tangible assets in progress | Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 3,648 | 4,086 |
Additions | 1,428 | 1,617 |
Divestitures | (4) | (11) |
Change in the scope of consolidation | (5) | |
Translation differences | (325) | 225 |
Transfer to Assets held for sale | 0 | |
Other changes | (1,930) | (2,269) |
Property, plant and equipment | 2,812 | 3,648 |
Advances and tangible assets in progress | Accumulated amortization and impairment losses | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | (15) | (13) |
Divestitures | 0 | 1 |
Change in the scope of consolidation | 0 | |
Translation differences | 1 | (1) |
Transfer to Assets held for sale | 0 | |
Other changes | 5 | 1 |
Depreciation | 0 | 0 |
Impairment losses and asset write-offs | (7) | (3) |
Property, plant and equipment | € (16) | € (15) |
Property, plant and equipment98
Property, plant and equipment - assets under finance lease agreements (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment under finance lease | € 402 | € 853 |
Industrial buildings | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment under finance lease | 209 | 251 |
Plant, machinery and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment under finance lease | € 193 | € 602 |
Property, plant and equipment99
Property, plant and equipment - pledged as security for debt (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, pledged as security | € 2,372 | € 1,940 |
Land and industrial buildings pledged as security for debt | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, pledged as security | 1,031 | 1,239 |
Plant, machinery and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, pledged as security | 1,324 | 698 |
Other assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, pledged as security | € 17 | € 3 |
Property, plant and equipmen100
Property, plant and equipment - narrative (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Translation differences | € (2,493) | € 1,547 |
Contractual commitments for acquisition of property, plant and equipment | 540 | 950 |
Accumulated amortization and impairment losses | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses and asset write-offs | (119) | (73) |
Translation differences | 2,010 | (1,035) |
Accumulated amortization and impairment losses | Venezuela | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses and asset write-offs | € 21 | € 43 |
Investments accounted for us101
Investments accounted for using the equity method - summary of investments (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Investments in joint ventures accounted for using equity method | € 1,866 | € 1,680 |
Investments in associates accounted for using equity method | 94 | 62 |
Investments in other entities accounted for using equity method | 48 | 51 |
Investments accounted for using equity method | 2,008 | 1,793 |
FCA Bank S.p.A. | ||
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Investments in joint ventures accounted for using equity method | € 1,178 | € 1,044 |
Ownership percentage | 50.00% | 50.00% |
Tofas-Turk Otomobil Fabrikasi A.S. | ||
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Investments in joint ventures accounted for using equity method | € 298 | € 302 |
Ownership percentage | 37.90% | 37.90% |
GAC Fiat Chrysler Automobiles Co. | ||
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Investments in joint ventures accounted for using equity method | € 287 | € 237 |
Ownership percentage | 50.00% | 50.00% |
Others | ||
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Investments in joint ventures accounted for using equity method | € 103 | € 97 |
Investments accounted for us102
Investments accounted for using the equity method - financial information of FCA Bank (Details) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Joint Ventures And Associates [Line Items] | ||||
Cash and cash equivalents | € 12,638 | € 17,318 | ||
Other liabilities | 10,435 | 11,412 | ||
Equity | 20,987 | 19,353 | € 16,968 | € 14,377 |
Net assets attributable to owners of the parent | 20,819 | 19,168 | ||
Carrying amount of interest in FCA Bank(1) | 1,866 | 1,680 | ||
Interest and similar expenses | (1,128) | (1,500) | (2,084) | |
Income tax expense | (2,651) | (1,292) | (166) | |
Profit from continuing operations | 3,510 | 1,814 | 93 | |
Profit (loss) | 3,510 | 1,814 | 377 | |
Owners of the parent | 1,491 | 2,288 | 1,953 | |
Group’s share of net profit | 390 | 291 | 155 | |
FCA Bank S.p.A. | ||||
Disclosure Of Joint Ventures And Associates [Line Items] | ||||
Financial assets | 21,867 | 20,201 | ||
Cash and cash equivalents | 0 | 0 | ||
Other assets | 3,378 | 3,083 | ||
Financial liabilities | 21,557 | 19,887 | ||
Other liabilities | 1,265 | 1,159 | ||
Equity | 2,423 | 2,238 | ||
Net assets attributable to owners of the parent | 2,382 | 2,199 | ||
Group's share of net assets | 1,191 | 1,100 | ||
Elimination of unrealized profits and other adjustments | (13) | (56) | ||
Carrying amount of interest in FCA Bank(1) | 1,178 | 1,044 | ||
Interest and similar income | 437 | 764 | 729 | |
Interest and similar expenses | (147) | (263) | (285) | |
Income tax expense | (70) | (105) | (110) | |
Profit from continuing operations | 190 | 312 | 249 | |
Profit (loss) | 190 | 312 | 249 | |
Net profit attributable to owners of the parent | 188 | 309 | 248 | |
Other comprehensive income/(loss) attributable to owners of the parent | (7) | (64) | 29 | |
Owners of the parent | 181 | 245 | 277 | |
Group’s share of net profit | € 190 | € 154 | € 124 |
Investments accounted for us103
Investments accounted for using the equity method - narrative (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Tofas-Turk Otomobil Fabrikasi A.S. | ||
Disclosure of joint ventures [line items] | ||
Fair value of investments in joint ventures for which there are quoted market prices | € 1,375 | € 1,258 |
Investments accounted for us104
Investments accounted for using the equity method - share of earnings of investments (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interests In Other Entities [Abstract] | |||
Joint Ventures | € 390 | € 291 | € 155 |
Associates | 9 | 7 | (27) |
Other | 10 | 15 | 2 |
Net profit (loss) | € 409 | € 313 | € 130 |
Investments accounted for us105
Investments accounted for using the equity method - aggregate amounts of individually immaterial joint ventures and associates (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Net profit (loss) | € 409 | € 313 | € 130 |
Other comprehensive income/(loss) | (119) | (127) | (19) |
Aggregated individually immaterial associates | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Income/(loss) from continuing operations | 9 | 7 | (27) |
Net profit (loss) | 9 | 7 | (27) |
Other comprehensive income/(loss) | (3) | (1) | 3 |
Total Other comprehensive income/(loss) | 6 | 6 | (24) |
Aggregated individually immaterial joint ventures | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Income/(loss) from continuing operations | 201 | 137 | 31 |
Net profit (loss) | 201 | 137 | 31 |
Other comprehensive income/(loss) | (105) | (90) | (30) |
Total Other comprehensive income/(loss) | € 96 | € 47 | € 1 |
Other financial assets - financ
Other financial assets - financial assets (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [abstract] | ||
Current derivative financial assets | € 265 | € 448 |
Non-current derivative financial assets | 19 | 31 |
Derivative financial assets | 284 | 479 |
Current available-for-sale-securities | 4 | 38 |
Non-current available-for-sale securities | 0 | 0 |
Available-for-sale securities | 4 | 38 |
Current held-for-trading securities | 172 | 203 |
Non-current held-for-trading securities | 59 | 60 |
Held-for-trading securities | 231 | 263 |
Current held-to-maturity securities | 0 | 0 |
Non-current held-to-maturity securities | 2 | 2 |
Held-to-maturity securities | 2 | 2 |
Current investments measured at cost | 0 | 0 |
Non-current investments measured at cost | 43 | 41 |
Investments measured at cost | 43 | 41 |
Current available-for-sale investments | 0 | 0 |
Non-current available-for-sale investments | 23 | 151 |
Available-for-sale investments | 23 | 151 |
Current held-for-trading investments | 46 | 49 |
Non-current held-for-trading investments | 0 | 0 |
Held-for-trading investments | 46 | 49 |
Current financial receivables | 0 | 0 |
Non-current financial receivables | 275 | 320 |
Financial receivables | 275 | 320 |
Current collateral deposits | 0 | 24 |
Non-current collateral deposits | 61 | 44 |
Collateral deposits | 61 | 68 |
Other current financial assets | 487 | 762 |
Other non-current financial assets | 482 | 649 |
Other financial assets | € 969 | € 1,411 |
Other financial assets - narrat
Other financial assets - narrative (Details) - EUR (€) € in Millions | Mar. 21, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | |||
Available-for-sale investments | € 23 | € 151 | |
CNHI | |||
Disclosure of financial assets [line items] | |||
Available-for-sale investments | € 132 | ||
Available-for-sale investment | |||
Disclosure of financial assets [line items] | |||
Number of shares of investment sold (in shares) | 15,948,275 | ||
Ownership interest in investment sold | 1.17% | ||
Proceeds from sale of investment | € 144 | ||
Number of special voting shares expired (in shares) | 15,948,275 |
Inventories - summary of invent
Inventories - summary of inventories (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventories [Abstract] | ||
Finished goods and goods for resale | € 8,261 | € 7,888 |
Work-in-progress, raw materials and manufacturing supplies | 4,476 | 4,168 |
Amount due from customers for contract work | 185 | 65 |
Total Inventories | € 12,922 | € 12,121 |
Inventories - details of amount
Inventories - details of amounts due from customers for contract work (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventories [Abstract] | ||
Aggregate amount of costs incurred and recognized profits (less recognized losses) to date | € 881 | € 959 |
Less: Progress billings | (886) | (1,130) |
Construction contracts, net of advances on contract work | (5) | (171) |
Amount due from customers for contract work | 185 | 65 |
Less: Amount due to customers for contract work included in Other liabilities (current) (Note 22) | € (190) | € (236) |
Inventories - narrative (Detail
Inventories - narrative (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventories [Abstract] | |||
Inventory write-down | € 659 | € 637 | € 653 |
Trade, other receivables and111
Trade, other receivables and tax receivables - analysis by due date (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Current trade receivables | € 2,460 | € 2,479 |
Non-current trade receivables | 0 | 0 |
Trade receivables | 2,460 | 2,479 |
Current receivables from financing activities | 2,946 | 2,407 |
Non-current receivables from financing activities | 194 | 171 |
Receivables from financing activities | 3,140 | 2,578 |
Current other receivables | 2,481 | 2,387 |
Non-current other receivables | 472 | 410 |
Other receivables | 2,953 | 2,797 |
Current trade and other receivables | 7,887 | 7,273 |
Non-current trade and other receivables | 666 | 581 |
Total Trade and other receivables | 8,553 | 7,854 |
Tax receivables | 215 | 206 |
Non-current tax receivables | 83 | 93 |
Tax receivables | 298 | 299 |
Due between one and five years | ||
Disclosure of financial assets [line items] | ||
Non-current trade receivables | 0 | 0 |
Non-current receivables from financing activities | 194 | 171 |
Non-current other receivables | 414 | 308 |
Non-current trade and other receivables | 608 | 479 |
Non-current tax receivables | 62 | 71 |
Due beyond five years | ||
Disclosure of financial assets [line items] | ||
Non-current trade receivables | 0 | 0 |
Non-current receivables from financing activities | 0 | 0 |
Non-current other receivables | 58 | 102 |
Non-current trade and other receivables | 58 | 102 |
Non-current tax receivables | € 21 | € 22 |
Trade, other receivables and112
Trade, other receivables and tax receivables - allowance for trade receivables (Details) - Trade receivables € in Millions | 12 Months Ended |
Dec. 31, 2017EUR (€) | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |
Allowance, beginning balance | € 275 |
Provision | 76 |
Use and other changes | (82) |
Allowance, ending balance | € 269 |
Trade, other receivables and113
Trade, other receivables and tax receivables - receivables from financing activities (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other receivables [abstract] | ||
Dealer financing | € 2,295 | € 2,115 |
Retail financing | 420 | 286 |
Finance leases | 4 | 6 |
Other | 421 | 171 |
Receivables from financing activities | € 3,140 | € 2,578 |
Trade, other receivables and114
Trade, other receivables and tax receivables - allowance for financing receivables (Details) - Financing receivables € in Millions | 12 Months Ended |
Dec. 31, 2017EUR (€) | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |
Allowance, beginning balance | € 45 |
Provision | 66 |
Use and other changes | (66) |
Allowance, ending balance | € 45 |
Trade, other receivables and115
Trade, other receivables and tax receivables - narrative (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Trade and other receivables [abstract] | ||
Value added and other indirect tax receivables | € 2,153 | € 1,933 |
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Fair value of assets representing continuing involvement in derecognised financial assets | 7,866 | 6,573 |
FCA Bank S.p.A. | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Fair value of assets representing continuing involvement in derecognised financial assets | 4,933 | 4,077 |
Trade and other receivables | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Fair value of assets representing continuing involvement in derecognised financial assets | 6,752 | 5,467 |
Financing receivables | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Fair value of assets representing continuing involvement in derecognised financial assets | € 1,114 | € 1,106 |
Bottom of range | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Payment term | 2 months | |
Top of range | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Payment term | 6 months |
Trade, other receivables and116
Trade, other receivables and tax receivables - carrying amount of assets not derecognised (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | ||
Carrying amount of assets transferred and not derecognized | € 357 | € 410 |
Carrying amount of the related liabilities | 357 | 410 |
Trade receivables | ||
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | ||
Carrying amount of assets transferred and not derecognized | 22 | 34 |
Carrying amount of the related liabilities | 22 | 34 |
Financing receivables | ||
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | ||
Carrying amount of assets transferred and not derecognized | 335 | 376 |
Carrying amount of the related liabilities | € 335 | € 376 |
Derivative financial assets 117
Derivative financial assets and liabilities - fair value of derivative assets and liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about hedging instruments [line items] | ||
Derivative financial assets | € 284 | € 479 |
Financial derivative assets - current | 265 | 448 |
Financial derivative assets - non-current | 19 | 31 |
Derivative financial liabilities | (139) | (697) |
Financial derivative liabilities - current | (138) | (681) |
Financial derivative liabilities - non-current | (1) | (16) |
Fair value hedges | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 2 | 31 |
Hedging derivative, liabilities | 0 | (116) |
Fair value hedges | Interest rate risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 2 | 31 |
Hedging derivative, liabilities | 0 | (1) |
Fair value hedges | Interest rate and currency risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 0 | 0 |
Hedging derivative, liabilities | 0 | (115) |
Cash flow hedges | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 143 | 321 |
Hedging derivative, liabilities | (103) | (306) |
Cash flow hedges | Currency risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 100 | 213 |
Hedging derivative, liabilities | (95) | (304) |
Cash flow hedges | Interest rate risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 4 | 0 |
Hedging derivative, liabilities | (7) | 0 |
Cash flow hedges | Interest rate and currency risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 9 | 87 |
Hedging derivative, liabilities | 0 | 0 |
Cash flow hedges | Commodity price risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 30 | 21 |
Hedging derivative, liabilities | (1) | (2) |
Hedges of net investment in foreign operations | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 5 | 0 |
Hedging derivative, liabilities | 0 | (47) |
Hedges of net investment in foreign operations | Currency risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 5 | 0 |
Hedging derivative, liabilities | 0 | (47) |
Derivatives for trading | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Derivatives assets for trading | 134 | 127 |
Derivatives liabilities for trading | € (36) | € (228) |
Derivative financial assets 118
Derivative financial assets and liabilities - summary of notional amounts of derivative financial instruments (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | € 18,568 | € 22,452 |
Currency risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 14,296 | 18,979 |
Interest rate risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 3,435 | 1,650 |
Interest rate and currency risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 362 | 1,315 |
Commodity price risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 461 | 494 |
Other derivative financial instruments | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 14 | 14 |
Due within one year | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 16,178 | 20,901 |
Due within one year | Currency risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 14,142 | 18,668 |
Due within one year | Interest rate risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 1,581 | 855 |
Due within one year | Interest rate and currency risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 0 | 928 |
Due within one year | Commodity price risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 455 | 450 |
Due within one year | Other derivative financial instruments | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 0 | 0 |
Due between one and five years | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 2,218 | 1,469 |
Due between one and five years | Currency risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 154 | 311 |
Due between one and five years | Interest rate risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 1,753 | 795 |
Due between one and five years | Interest rate and currency risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 291 | 305 |
Due between one and five years | Commodity price risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 6 | 44 |
Due between one and five years | Other derivative financial instruments | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 14 | 14 |
Due beyond five years | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 172 | 82 |
Due beyond five years | Currency risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 0 | 0 |
Due beyond five years | Interest rate risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 101 | 0 |
Due beyond five years | Interest rate and currency risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 71 | 82 |
Due beyond five years | Commodity price risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 0 | 0 |
Due beyond five years | Other derivative financial instruments | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | € 0 | € 0 |
Derivative financial assets 119
Derivative financial assets and liabilities - fair value hedges (Details) - Fair value hedges - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about hedges [line items] | |||
Net gains/(losses) | € 1 | € 0 | € 0 |
Currency risk | |||
Disclosure of detailed information about hedges [line items] | |||
Net gains/(losses) on qualifying hedges | 104 | (13) | (49) |
Fair value changes in hedged items | (104) | 13 | 49 |
Interest rate risk | |||
Disclosure of detailed information about hedges [line items] | |||
Net gains/(losses) on qualifying hedges | (9) | (26) | (34) |
Fair value changes in hedged items | € 10 | € 26 | € 34 |
Derivative financial assets 120
Derivative financial assets and liabilities - cash flow hedges (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Gains (losses) on cash flow hedges | € (3) | ||
Cash flow hedges | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Ineffectiveness and discontinued hedges | 4 | € 12 | € 1 |
Tax expense/(benefit) | 27 | (49) | (97) |
Total recognized in Net profit from continuing operations | (26) | 171 | (221) |
Recognized in Profit from discontinued operations, net of tax | 0 | 0 | (116) |
Total recognized in Net profit | (26) | 171 | (337) |
Cash flow hedges | Currency risk | Net revenues | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Reclassification adjustments | 16 | 236 | 33 |
Cash flow hedges | Currency risk | Cost of revenue | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Reclassification adjustments | (103) | (44) | 101 |
Cash flow hedges | Currency risk | Net financial income (expense) | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Reclassification adjustments | (22) | 34 | (148) |
Cash flow hedges | Currency risk | Results from investments | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Reclassification adjustments | 28 | 26 | 1 |
Cash flow hedges | Interest rate risk | Cost of revenue | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Reclassification adjustments | 0 | 0 | (10) |
Cash flow hedges | Interest rate risk | Net financial income (expense) | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Reclassification adjustments | (3) | (4) | (77) |
Cash flow hedges | Interest rate risk | Results from investments | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Reclassification adjustments | (1) | (1) | (2) |
Cash flow hedges | Commodity price risk | Cost of revenue | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Reclassification adjustments | € 28 | € (39) | € (23) |
Derivative financial assets 121
Derivative financial assets and liabilities - net investment hedges (Details) - EUR (€) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Instruments [Abstract] | ||
Losses on net investment hedges | € 15,000,000 | € 75,000,000 |
Ineffectiveness of net investment hedges | € 0 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents [abstract] | ||
Cash at banks | € 6,396 | € 8,118 |
Money market securities | 6,242 | 9,200 |
Total Cash and cash equivalents | € 12,638 | € 17,318 |
Share-based compensation - addi
Share-based compensation - additional information (Details) | Apr. 16, 2015EUR (€)shares | Feb. 22, 2015shares | Feb. 22, 2014shares | Feb. 22, 2013shares | Apr. 04, 2012shares | Feb. 28, 2019 | Feb. 28, 2018 | Mar. 31, 2017shares | Feb. 28, 2017 | Jan. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017EUR (€)shares | Dec. 31, 2016EUR (€)shares | Dec. 31, 2015EUR (€)shares | Dec. 15, 2016 | Jan. 31, 2016 | Apr. 16, 2015USD ($) |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Convertible securities conversion ratio | 0.083077 | ||||||||||||||||||
Number of instruments granted in share-based payment arrangement (in shares) | 7,000,000 | ||||||||||||||||||
Equity instruments vested (in shares) | 2,333,333 | 2,333,333 | 2,333,333 | ||||||||||||||||
RCS Media Group S.p.A. | |||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Ownership interest in investment sold | 16.70% | ||||||||||||||||||
Chief executive officer | |||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Expense from share-based payment transactions with employees | € | € 24,600,000 | ||||||||||||||||||
Number of instruments granted in share-based payment arrangement (in shares) | 1,620,000 | ||||||||||||||||||
Weighted average fair value at measurement date | € 15.21 | $ 16.29 | |||||||||||||||||
Performance share units | |||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement (in shares) | 2,264,000 | 14,713,100 | |||||||||||||||||
Cumulative vesting percent | 100.00% | 67.00% | 33.00% | ||||||||||||||||
Performance share units, net income | |||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement (in shares) | 1,136,250 | 168,593 | 7,356,550 | ||||||||||||||||
Percent of units subject to certain criteria | 50.00% | 50.00% | |||||||||||||||||
Requisite service period | 3 years | ||||||||||||||||||
Performance measurement period | 5 years | ||||||||||||||||||
Equity instruments vested (in shares) | 3,758,870 | 0 | 0 | ||||||||||||||||
Performance share units, net income | Bottom of range | |||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Payout scale percent | 0.00% | 0.00% | |||||||||||||||||
Performance share units, net income | Top of range | |||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Payout scale percent | 100.00% | 100.00% | |||||||||||||||||
Performance share units, total shareholder return | |||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement (in shares) | 1,136,250 | 168,593 | 7,356,550 | ||||||||||||||||
Percent of units subject to certain criteria | 50.00% | ||||||||||||||||||
Requisite service period | 2 years | ||||||||||||||||||
Measurement term of expected volatility | 3 years | ||||||||||||||||||
Equity instruments vested (in shares) | 3,758,869 | 0 | 0 | ||||||||||||||||
Performance share units, total shareholder return | Bottom of range | |||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Payout scale percent | 0.00% | 0.00% | |||||||||||||||||
Performance share units, total shareholder return | Top of range | |||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Payout scale percent | 150.00% | 150.00% | |||||||||||||||||
Restricted share units | |||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement (in shares) | 2,293,940 | 94,222 | 6,816,550 | ||||||||||||||||
Equity instruments vested (in shares) | 2,671,939 | 0 | 1,620,000 | ||||||||||||||||
Restricted share units | Key employees | |||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement (in shares) | 2,264,000 | 5,196,550 | |||||||||||||||||
Cumulative vesting percent | 33.00% | 33.00% | 33.00% | ||||||||||||||||
Share-based payment arrangements, vesting period | 2 years | ||||||||||||||||||
Performance share units and restricted share units | |||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||||||
Convertible securities conversion ratio | 1.005865 | 1.5440 | |||||||||||||||||
Expense from share-based payment transactions with employees | € | € 85,000,000 | € 96,000,000 | € 54,000,000 | ||||||||||||||||
Unrecognized expense from share-based payment transactions with employees | € | € 47,000,000 | ||||||||||||||||||
Unrecognized expense from share-based payment transactions with employees, period of recognition | 1 year |
Share-based compensation - chan
Share-based compensation - change in PSUs and RSUs (Details) | Feb. 22, 2015shares | Feb. 22, 2014shares | Feb. 22, 2013shares | Dec. 31, 2017EUR (€)shares€ / shares | Dec. 31, 2016EUR (€)shares€ / shares | Dec. 31, 2015EUR (€)shares€ / shares | Dec. 31, 2014EUR (€)€ / sharesshares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Vested (in shares) | (2,333,333) | (2,333,333) | (2,333,333) | ||||
Performance share units, net income | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Outstanding shares unvested (in shares) | 11,379,445 | 7,356,550 | 0 | ||||
Outstanding shares unvested (in euros per share) | € / shares | € 5.89 | € 5.65 | € 8.78 | € 0 | |||
Anti-dilution adjustment (in shares) | 65,751 | 4,001,962 | 0 | ||||
Anti-dilution adjustment (in euros per share) | € | € 5.62 | € 5.68 | € 0 | ||||
Granted (in shares) | 1,136,250 | 168,593 | 7,356,550 | ||||
Granted (in euros per share) | € | € 7.91 | € 3.61 | € 8.78 | ||||
Vested (in shares) | (3,758,870) | 0 | 0 | ||||
Vested (in euros per share) | € | € 5.65 | € 0 | € 0 | ||||
Canceled (in shares) | 0 | (147,660) | 0 | ||||
Canceled (in euros per share) | € | € 0 | € 5.83 | € 0 | ||||
Forfeited (in shares) | (18,750) | 0 | 0 | ||||
Forfeited (in euros per share) | € | € 7.91 | € 0 | € 0 | ||||
Outstanding shares unvested (in shares) | 8,803,826 | 11,379,445 | 7,356,550 | ||||
Outstanding shares unvested (in euros per share) | € / shares | € 5.89 | € 5.65 | € 8.78 | € 0 | |||
Performance share units, total shareholder return | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Outstanding shares unvested (in shares) | 11,379,446 | 7,356,550 | 0 | ||||
Outstanding shares unvested (in euros per share) | € / shares | € 10.58 | € 10.64 | € 16.52 | € 0 | |||
Anti-dilution adjustment (in shares) | 65,750 | 4,001,962 | 0 | ||||
Anti-dilution adjustment (in euros per share) | € | € 10.58 | € 10.70 | € 0 | ||||
Granted (in shares) | 1,136,250 | 168,593 | 7,356,550 | ||||
Granted (in euros per share) | € | € 10.84 | € 6.71 | € 16.52 | ||||
Vested (in shares) | (3,758,869) | 0 | 0 | ||||
Vested (in euros per share) | € | € 10.63 | € 0 | € 0 | ||||
Canceled (in shares) | 0 | (147,659) | 0 | ||||
Canceled (in euros per share) | € | € 0 | € 10.84 | € 0 | ||||
Forfeited (in shares) | (18,750) | 0 | 0 | ||||
Forfeited (in euros per share) | € | € 10.84 | € 0 | € 0 | ||||
Outstanding shares unvested (in shares) | 8,803,827 | 11,379,446 | 7,356,550 | ||||
Outstanding shares unvested (in euros per share) | € / shares | € 10.58 | € 10.64 | € 16.52 | € 0 | |||
Restricted share units | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Outstanding shares unvested (in shares) | 7,969,623 | 5,196,550 | 0 | ||||
Outstanding shares unvested (in euros per share) | € / shares | € 9.17 | € 8.69 | € 13.49 | € 0 | |||
Anti-dilution adjustment (in shares) | 46,189 | 2,826,922 | 0 | ||||
Anti-dilution adjustment (in euros per share) | € | € 8.64 | € 8.74 | € 0 | ||||
Granted (in shares) | 2,293,940 | 94,222 | 6,816,550 | ||||
Granted (in euros per share) | € | € 10.43 | € 5.73 | € 13.90 | ||||
Vested (in shares) | (2,671,939) | 0 | (1,620,000) | ||||
Vested (in euros per share) | € | € 8.64 | € 0 | € 15.21 | ||||
Canceled (in shares) | 0 | 148,071 | 0 | ||||
Canceled (in euros per share) | € | € 0 | € 9.25 | € 0 | ||||
Forfeited (in shares) | (37,500) | 0 | 0 | ||||
Forfeited (in euros per share) | € | € 10.39 | € 0 | € 0 | ||||
Outstanding shares unvested (in shares) | 7,600,313 | 7,969,623 | 5,196,550 | ||||
Outstanding shares unvested (in euros per share) | € / shares | € 9.17 | € 8.69 | € 13.49 | € 0 |
Share-based compensation - anti
Share-based compensation - anti-dilutive securities (Details) - € / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Performance share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of awards - as adjusted (in shares) | 22,890,392 | 22,717,024 |
Performance share units | Bottom of range | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date stock price (in euros per share) | € 8.66 | € 8.71 |
Performance share units | Top of range | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date stock price (in euros per share) | € 9.79 | € 9.85 |
Restricted share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of awards - as adjusted (in shares) | 8,015,812 |
Share-based compensation - key
Share-based compensation - key assumptions (Details) - € / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Performance share units, net income | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expected volatility, non-options granted | 40.00% | 40.00% |
Risk free interest rate, non-options granted | (0.80%) | 0.70% |
Performance share units, net income | Bottom of range | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date stock price, non-options granted (in euros per share) | € 9.74 | € 13.44 |
Performance share units, net income | Top of range | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date stock price, non-options granted (in euros per share) | € 10.39 | 15.21 |
Performance share units, total shareholder return | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expected volatility, non-options granted | 44.00% | |
Dividend yield, non-options granted | 0.00% | |
Risk free interest rate, non-options granted | 0.80% | |
Performance share units, total shareholder return | Bottom of range | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date stock price, non-options granted (in euros per share) | € 9.74 | € 13.44 |
Expected volatility, non-options granted | 37.00% | |
Risk free interest rate, non-options granted | 0.70% | |
Performance share units, total shareholder return | Top of range | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date stock price, non-options granted (in euros per share) | € 10.39 | € 15.21 |
Expected volatility, non-options granted | 39.00% | |
Risk free interest rate, non-options granted | 0.80% |
Employee benefits liabilities -
Employee benefits liabilities - employee benefit liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [line items] | ||
Current employee benefit liability | € 694 | € 811 |
Non-current employee benefit liability | 8,584 | 9,052 |
Employee benefit liability | 9,278 | 9,863 |
Other provisions for employees | ||
Disclosure of defined benefit plans [line items] | ||
Current employee benefit liability | 425 | 518 |
Non-current employee benefit liability | 764 | 874 |
Employee benefit liability | 1,189 | 1,392 |
Pension benefits | ||
Disclosure of defined benefit plans [line items] | ||
Current employee benefit liability | 34 | 38 |
Non-current employee benefit liability | 4,789 | 4,980 |
Employee benefit liability | 4,823 | 5,018 |
Health care and life insurance plans | ||
Disclosure of defined benefit plans [line items] | ||
Current employee benefit liability | 126 | 145 |
Non-current employee benefit liability | 2,153 | 2,321 |
Employee benefit liability | 2,279 | 2,466 |
Other post-employment benefits | ||
Disclosure of defined benefit plans [line items] | ||
Current employee benefit liability | 109 | 110 |
Non-current employee benefit liability | 878 | 877 |
Employee benefit liability | € 987 | € 987 |
Employee benefits liabilitie128
Employee benefits liabilities - summarized fair value of the defined benefit obligations and fair value of plan assets (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | € 7,590 | € 8,121 | |
Employee benefit liability | 9,278 | 9,863 | |
Other provisions for employees | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefit liability | 1,189 | 1,392 | |
Defined Benefit Plans1 [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefit liability | 8,089 | 8,471 | |
Net defined benefit asset | (499) | (350) | |
Pension benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | 4,324 | 4,668 | € 5,143 |
Employee benefit liability | 4,823 | 5,018 | |
Health care and life insurance plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefit liability | 2,279 | 2,466 | |
Other post-employment benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefit liability | 987 | 987 | |
Obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | 28,794 | 31,518 | |
Obligation | Pension benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | 25,528 | 28,065 | 27,547 |
Obligation | Health care and life insurance plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | 2,279 | 2,466 | 2,459 |
Obligation | Other post-employment benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | 987 | 987 | 969 |
Fair value of plan assets | Pension benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | (21,218) | (23,409) | (22,415) |
Asset ceiling | Pension benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | € 14 | € 12 | € 11 |
Employee benefits liabilitie129
Employee benefits liabilities - schedule of future payments (Details) € in Millions | Dec. 31, 2017EUR (€) |
2018 | Pension benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | € 1,592 |
2018 | Health care and life insurance plans | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 125 |
2019 | Pension benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 1,562 |
2019 | Health care and life insurance plans | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 125 |
2020 | Pension benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 1,550 |
2020 | Health care and life insurance plans | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 124 |
2021 | Pension benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 1,535 |
2021 | Health care and life insurance plans | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 124 |
2022 | Pension benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 1,524 |
2022 | Health care and life insurance plans | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 125 |
2023-2027 | Pension benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 7,556 |
2023-2027 | Health care and life insurance plans | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | € 634 |
Employee benefits liabilitie130
Employee benefits liabilities - changes in the benefit obligations and fair value of plan assets (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | € 8,121 | ||
Other: | |||
Net defined benefit liability (asset), end of period | 7,590 | € 8,121 | |
Obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | 31,518 | ||
Other: | |||
Net defined benefit liability (asset), end of period | 28,794 | 31,518 | |
Pension benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | 4,668 | 5,143 | |
Included in the Consolidated Income Statement | 442 | 473 | € 511 |
Actuarial (gains)/losses from: | |||
Demographic assumptions | (42) | (55) | |
Financial assumptions | 1,567 | 346 | |
Return on assets | (1,589) | (861) | |
Changes in the effect of limiting net assets | 3 | 0 | |
Changes in exchange rates | (562) | 91 | |
Other: | |||
Employer contributions | (141) | (454) | |
Plan participant contributions | (3) | (1) | |
Benefits paid | (16) | (16) | |
Settlements paid | 0 | 0 | |
Other changes | (3) | 2 | |
Net defined benefit liability (asset), end of period | 4,324 | 4,668 | 5,143 |
Pension benefits | Obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | 28,065 | 27,547 | |
Included in the Consolidated Income Statement | 1,259 | 1,322 | |
Actuarial (gains)/losses from: | |||
Demographic assumptions | (42) | (49) | |
Financial assumptions | 1,567 | 346 | |
Return on assets | 0 | 0 | |
Changes in the effect of limiting net assets | 0 | 0 | |
Changes in exchange rates | (3,006) | 907 | |
Other: | |||
Employer contributions | 0 | 0 | |
Plan participant contributions | 0 | 3 | |
Benefits paid | (1,751) | (2,015) | |
Settlements paid | (563) | 0 | |
Other changes | (1) | 4 | |
Net defined benefit liability (asset), end of period | 25,528 | 28,065 | 27,547 |
Pension benefits | Fair value of plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | (23,409) | (22,415) | |
Included in the Consolidated Income Statement | (817) | (849) | |
Actuarial (gains)/losses from: | |||
Demographic assumptions | 0 | (6) | |
Financial assumptions | 0 | 0 | |
Return on assets | (1,589) | (861) | |
Changes in the effect of limiting net assets | 0 | 0 | |
Changes in exchange rates | 2,445 | (817) | |
Other: | |||
Employer contributions | (141) | (454) | |
Plan participant contributions | (3) | (4) | |
Benefits paid | 1,735 | 1,999 | |
Settlements paid | 563 | 0 | |
Other changes | (2) | (2) | |
Net defined benefit liability (asset), end of period | (21,218) | (23,409) | (22,415) |
Pension benefits | Asset ceiling | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | 12 | 11 | |
Included in the Consolidated Income Statement | 0 | 0 | |
Actuarial (gains)/losses from: | |||
Demographic assumptions | 0 | 0 | |
Financial assumptions | 0 | 0 | |
Return on assets | 0 | 0 | |
Changes in the effect of limiting net assets | 3 | 0 | |
Changes in exchange rates | (1) | 1 | |
Other: | |||
Employer contributions | 0 | 0 | |
Plan participant contributions | 0 | 0 | |
Benefits paid | 0 | 0 | |
Settlements paid | 0 | 0 | |
Other changes | 0 | 0 | |
Net defined benefit liability (asset), end of period | 14 | 12 | 11 |
Health care and life insurance plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Included in the Consolidated Income Statement | 120 | 130 | 134 |
Health care and life insurance plans | Obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | 2,466 | 2,459 | |
Included in the Consolidated Income Statement | 120 | 130 | |
Actuarial (gains)/losses from: | |||
Demographic assumptions | (52) | (77) | |
Financial assumptions | 160 | 10 | |
Changes in exchange rates | (278) | 83 | |
Other: | |||
Benefits paid | (137) | (139) | |
Other changes | 0 | 0 | |
Net defined benefit liability (asset), end of period | 2,279 | 2,466 | 2,459 |
Other post-employment benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Included in the Consolidated Income Statement | 23 | 26 | 16 |
Other post-employment benefits | Obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | 987 | 969 | |
Included in the Consolidated Income Statement | 23 | 26 | |
Actuarial (gains)/losses from: | |||
Demographic assumptions | 18 | 36 | |
Financial assumptions | (3) | 29 | |
Changes in exchange rates | (5) | 1 | |
Other: | |||
Benefits paid | (48) | (58) | |
Transfer to Liabilities held for sale | 0 | (14) | |
Other changes | 15 | (2) | |
Net defined benefit liability (asset), end of period | € 987 | € 987 | € 969 |
Employee benefits liabilitie131
Employee benefits liabilities - recognized In consolidated income statement (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | € 172 | € 175 | € 196 |
Other administration costs | 94 | 95 | 92 |
Past service costs/(credits) and gains/(losses) arising from settlements/curtailments | (3) | (10) | (8) |
Total recognized in the Consolidated Income Statement | 442 | 473 | 511 |
Pension benefits | Interest expense | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Interest (income) expense | 1,090 | 1,157 | 1,143 |
Total recognized in the Consolidated Income Statement | 1,259 | 1,322 | |
Pension benefits | Interest income | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Interest (income) expense | (911) | (944) | (912) |
Total recognized in the Consolidated Income Statement | (817) | (849) | |
Health care and life insurance plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 22 | 26 | 32 |
Interest (income) expense | 98 | 107 | 102 |
Past service costs/(credits) and gains/(losses) arising from settlements/curtailments | 0 | (3) | 0 |
Total recognized in the Consolidated Income Statement | 120 | 130 | 134 |
Health care and life insurance plans | Interest expense | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Total recognized in the Consolidated Income Statement | 120 | 130 | |
Other post-employment benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 11 | 8 | 10 |
Interest (income) expense | 13 | 17 | 6 |
Past service costs/(credits) and gains/(losses) arising from settlements/curtailments | (1) | 1 | 0 |
Total recognized in the Consolidated Income Statement | 23 | 26 | € 16 |
Other post-employment benefits | Interest expense | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Total recognized in the Consolidated Income Statement | € 23 | € 26 |
Employee benefits liabilitie132
Employee benefits liabilities - fair value of plan assets (Details) - Pension benefits - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | € 628 | € 862 |
Equity instruments | 5,208 | 5,960 |
Fixed income securities | 9,536 | 9,871 |
Investment funds | 5,394 | 6,055 |
Insurance contracts and other | 452 | 661 |
Total fair value of plan assets | 21,218 | 23,409 |
U.S. equity securities | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 1,426 | 1,641 |
Non-U.S. equity securities | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 1,098 | 1,170 |
Commingled funds | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 2,684 | 3,149 |
Investment funds | 165 | 147 |
Government securities | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income securities | 2,601 | 2,611 |
Corporate bonds (including convertible and high yield bonds) | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income securities | 5,864 | 6,353 |
Other fixed income | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income securities | 1,071 | 907 |
Private equity funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | 1,962 | 1,979 |
Mutual funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | 0 | 3 |
Real estate funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | 1,374 | 1,460 |
Hedge funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | 1,893 | 2,466 |
Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | 611 | 816 |
Equity instruments | 3,662 | 3,019 |
Fixed income securities | 917 | 925 |
Investment funds | 224 | 121 |
Insurance contracts and other | 50 | 156 |
Total fair value of plan assets | 5,464 | 5,037 |
Level 1 | U.S. equity securities | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 1,426 | 1,633 |
Level 1 | Non-U.S. equity securities | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 1,098 | 1,170 |
Level 1 | Commingled funds | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 1,138 | 216 |
Investment funds | 162 | 118 |
Level 1 | Government securities | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income securities | 803 | 858 |
Level 1 | Corporate bonds (including convertible and high yield bonds) | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income securities | 0 | 58 |
Level 1 | Other fixed income | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income securities | 114 | 9 |
Level 1 | Private equity funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | 0 | 0 |
Level 1 | Mutual funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | 0 | 3 |
Level 1 | Real estate funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | 13 | 0 |
Level 1 | Hedge funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | € 49 | € 0 |
Employee benefits liabilitie133
Employee benefits liabilities - weighted average assumptions (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Pension benefits | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3.70% | 4.30% |
U.S. | Pension benefits | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3.80% | 4.40% |
Future salary increase rate | 0.00% | 0.00% |
U.S. | Health care and life insurance plans | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3.90% | 4.50% |
Future salary increase rate | 1.50% | 1.50% |
Weighted average ultimate healthcare cost trend rate | 4.50% | 4.50% |
Canada | Pension benefits | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3.50% | 3.90% |
Future salary increase rate | 3.50% | 3.50% |
Canada | Health care and life insurance plans | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3.60% | 4.00% |
Future salary increase rate | 1.00% | 1.00% |
Weighted average ultimate healthcare cost trend rate | 4.50% | 4.40% |
United Kingdom | Pension benefits | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 2.70% | 2.70% |
Future salary increase rate | 3.20% | 3.10% |
Employee benefits liabilitie134
Employee benefits liabilities - narrative (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2017EUR (€)year | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | |
Disclosure of defined benefit plans [line items] | |||
Defined benefit plan cost | € 1,643 | € 1,540 | € 1,541 |
Net defined benefit liability (asset) | 7,590 | 8,121 | |
Obligation | |||
Disclosure of defined benefit plans [line items] | |||
Net defined benefit liability (asset) | 28,794 | 31,518 | |
Pension benefits | |||
Disclosure of defined benefit plans [line items] | |||
Discretionary credit balance | 2,000 | ||
Employer contributions | 141 | 454 | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 92 | ||
Payments in respect of settlements | 0 | 0 | |
Gains (losses) arising from settlements | (1) | 29 | |
Payments from plan, net defined benefit liability (asset) | 16 | 16 | |
Net defined benefit liability (asset) | € 4,324 | € 4,668 | 5,143 |
Discount rate | 3.70% | 4.30% | |
Pension benefits | Obligation | |||
Disclosure of defined benefit plans [line items] | |||
Employer contributions | € 0 | € 0 | |
Payments in respect of settlements | 563 | 0 | |
Payments from plan, net defined benefit liability (asset) | 1,751 | 2,015 | |
Net defined benefit liability (asset) | 25,528 | 28,065 | 27,547 |
Health care and life insurance plans | Obligation | |||
Disclosure of defined benefit plans [line items] | |||
Payments from plan, net defined benefit liability (asset) | 137 | 139 | |
Net defined benefit liability (asset) | € 2,279 | € 2,466 | 2,459 |
Other post-employment benefits | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate | 1.20% | 1.00% | |
Other post-employment benefits | Obligation | |||
Disclosure of defined benefit plans [line items] | |||
Payments from plan, net defined benefit liability (asset) | € 48 | € 58 | |
Net defined benefit liability (asset) | 987 | 987 | 969 |
United States And Canada | Pension benefits | |||
Disclosure of defined benefit plans [line items] | |||
Employer contributions | 124 | € 445 | € 202 |
Estimate of contributions expected to be paid to plan for next annual reporting period | 56 | ||
Estimate of discretionary contributions expected to be paid to plan for next annual reporting period | 2 | ||
Estimate of minimum funding contributions expected to be paid to plan in next annual reporting period | € 54 | ||
U.S. | Pension benefits | |||
Disclosure of defined benefit plans [line items] | |||
Weighted average duration of defined benefit obligation | year | 11 | ||
Discount rate | 3.80% | 4.40% | |
U.S. | Pension benefits | Obligation | |||
Disclosure of defined benefit plans [line items] | |||
Payments from plan, net defined benefit liability (asset) | € 214 | ||
U.S. | Health care and life insurance plans | |||
Disclosure of defined benefit plans [line items] | |||
Weighted average duration of defined benefit obligation | year | 13 | ||
Health care cost trend rate assumed for next annual reporting period | 6.80% | 7.00% | |
Weighted average ultimate healthcare cost trend rate | 4.50% | 4.50% | |
Discount rate | 3.90% | 4.50% | |
Canada | Pension benefits | |||
Disclosure of defined benefit plans [line items] | |||
Weighted average duration of defined benefit obligation | year | 13 | ||
Discount rate | 3.50% | 3.90% | |
Canada | Health care and life insurance plans | |||
Disclosure of defined benefit plans [line items] | |||
Weighted average duration of defined benefit obligation | year | 16 | ||
Health care cost trend rate assumed for next annual reporting period | 4.80% | 4.70% | |
Weighted average ultimate healthcare cost trend rate | 4.50% | 4.40% | |
Discount rate | 3.60% | 4.00% | |
United Kingdom | Pension benefits | |||
Disclosure of defined benefit plans [line items] | |||
Weighted average duration of defined benefit obligation | year | 20 | ||
Discount rate | 2.70% | 2.70% | |
Italy | Other post-employment benefits | |||
Disclosure of defined benefit plans [line items] | |||
Net defined benefit liability (asset) | € 752 | ||
Italy | Other post-employment benefits | Obligation | |||
Disclosure of defined benefit plans [line items] | |||
Net defined benefit liability (asset) | € 775 |
Provisions - summary of provisi
Provisions - summary of provisions (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of other provisions [line items] | ||
Current provisions | € 9,009 | € 9,317 |
Non-current provisions | 5,770 | 6,520 |
Provisions | 14,779 | 15,837 |
Product warranty and recall campaigns | ||
Disclosure of other provisions [line items] | ||
Current provisions | 2,676 | 2,905 |
Non-current provisions | 4,049 | 4,637 |
Provisions | 6,725 | 7,542 |
Sales incentives | ||
Disclosure of other provisions [line items] | ||
Current provisions | 5,377 | 5,749 |
Non-current provisions | 0 | 0 |
Provisions | 5,377 | 5,749 |
Legal proceedings and disputes | ||
Disclosure of other provisions [line items] | ||
Current provisions | 125 | 54 |
Non-current provisions | 551 | 530 |
Provisions | 676 | 584 |
Commercial risks | ||
Disclosure of other provisions [line items] | ||
Current provisions | 481 | 250 |
Non-current provisions | 334 | 412 |
Provisions | 815 | 662 |
Restructuring | ||
Disclosure of other provisions [line items] | ||
Current provisions | 26 | 26 |
Non-current provisions | 44 | 46 |
Provisions | 70 | 72 |
Other risks | ||
Disclosure of other provisions [line items] | ||
Current provisions | 324 | 333 |
Non-current provisions | 792 | 895 |
Provisions | € 1,116 | € 1,228 |
Provisions - changes in provisi
Provisions - changes in provisions (Details) € in Millions | 12 Months Ended |
Dec. 31, 2017EUR (€) | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | € 15,837 |
Additional provisions | 17,998 |
Settlements | (17,429) |
Unused amounts | (175) |
Translation differences | (1,491) |
Changes in the scope of consolidation and other changes | 39 |
Provisions, at end of period | 14,779 |
Product warranty and recall campaigns | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | 7,542 |
Additional provisions | 3,196 |
Settlements | (3,262) |
Unused amounts | 0 |
Translation differences | (746) |
Changes in the scope of consolidation and other changes | (5) |
Provisions, at end of period | 6,725 |
Sales incentives | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | 5,749 |
Additional provisions | 13,850 |
Settlements | (13,675) |
Unused amounts | (3) |
Translation differences | (567) |
Changes in the scope of consolidation and other changes | 23 |
Provisions, at end of period | 5,377 |
Legal proceedings and disputes | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | 584 |
Additional provisions | 200 |
Settlements | (69) |
Unused amounts | (38) |
Translation differences | (49) |
Changes in the scope of consolidation and other changes | 48 |
Provisions, at end of period | 676 |
Commercial risks | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | 662 |
Additional provisions | 432 |
Settlements | (181) |
Unused amounts | (34) |
Translation differences | (64) |
Changes in the scope of consolidation and other changes | 0 |
Provisions, at end of period | 815 |
Restructuring costs | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | 72 |
Additional provisions | 91 |
Settlements | (55) |
Unused amounts | (3) |
Translation differences | (3) |
Changes in the scope of consolidation and other changes | (32) |
Provisions, at end of period | 70 |
Other risks | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | 1,228 |
Additional provisions | 229 |
Settlements | (187) |
Unused amounts | (97) |
Translation differences | (62) |
Changes in the scope of consolidation and other changes | 5 |
Provisions, at end of period | € 1,116 |
Provisions - narrative (Details
Provisions - narrative (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of other provisions [line items] | ||
Warranty and recall expense, recall of airbag inflators | € 102 | € 414 |
Warranty provision, recall of airbag inflators | ||
Disclosure of other provisions [line items] | ||
Warranty and recall expense, recall of airbag inflators | 414 | |
Warranty provision, contested with supplier | ||
Disclosure of other provisions [line items] | ||
Warranty and recall expense, recall of airbag inflators | € 132 | |
NAFTA | ||
Disclosure of other provisions [line items] | ||
Warranty and recall expense, recall of airbag inflators | 29 | |
LATAM | ||
Disclosure of other provisions [line items] | ||
Warranty and recall expense, recall of airbag inflators | € 73 |
Debt - summary of short-term an
Debt - summary of short-term and long-term debt (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt and current portion of long-term debt | € 7,245 | € 7,937 |
Long-term debt | 10,726 | 16,111 |
Borrowings | 17,971 | 24,048 |
Due between one and five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt | 7,696 | 11,043 |
Due beyond five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt | 3,030 | 5,068 |
Notes | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt and current portion of long-term debt | 2,054 | 2,565 |
Long-term debt | 7,572 | 9,786 |
Borrowings | 9,626 | 12,351 |
Notes | Due between one and five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt | 5,071 | 5,763 |
Notes | Due beyond five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt | 2,501 | 4,023 |
Borrowings from banks | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt and current portion of long-term debt | 4,132 | 4,025 |
Long-term debt | 2,780 | 5,378 |
Borrowings | 6,912 | 9,403 |
Borrowings from banks | Due between one and five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt | 2,278 | 4,592 |
Borrowings from banks | Due beyond five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt | 502 | 786 |
Asset-backed financing | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt and current portion of long-term debt | 357 | 410 |
Long-term debt | 0 | 0 |
Borrowings | 357 | 410 |
Asset-backed financing | Due between one and five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt | 0 | 0 |
Asset-backed financing | Due beyond five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt | 0 | 0 |
Other debt | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt and current portion of long-term debt | 702 | 937 |
Long-term debt | 374 | 947 |
Borrowings | 1,076 | 1,884 |
Other debt | Due between one and five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt | 347 | 688 |
Other debt | Due beyond five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt | € 27 | € 259 |
Debt - summary of outstanding n
Debt - summary of outstanding notes (Details) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017CHF (SFr) | Dec. 31, 2016EUR (€) | Mar. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | € 17,971,000,000 | € 24,048,000,000 | |||||
Notes | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 9,626,000,000 | 12,351,000,000 | |||||
Medium Term Note Due March 23, 3017 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | € 850,000,000 | ||||||
Coupon % | 7.00% | 7.00% | 7.00% | ||||
Medium Term Note Due June 12, 2017 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | € 1,000,000,000 | ||||||
Coupon % | 5.625% | 5.625% | 5.625% | ||||
Medium Term Note Due November 22, 2017 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | € 385,000,000 | SFr 450,000,000 | |||||
Coupon % | 4.00% | 4.00% | 4.00% | ||||
Medium Term Note Due March 15, 2018 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | € 1,250,000,000 | ||||||
Coupon % | 6.625% | 6.625% | 6.625% | ||||
Medium Term Note Due July 9, 2018 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | € 600,000,000 | ||||||
Coupon % | 7.375% | 7.375% | 7.375% | ||||
Medium Term Note Due September 30, 2019 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | SFr | SFr 250,000,000 | ||||||
Coupon % | 3.125% | 3.125% | 3.125% | ||||
Medium Term Note Due October 14, 2019 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | € 1,250,000,000 | ||||||
Coupon % | 6.75% | 6.75% | 6.75% | ||||
Medium Term Note Due March 22, 2021 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | € 1,000,000,000 | ||||||
Coupon % | 4.75% | 4.75% | 4.75% | ||||
Medium Term Note Due July 15, 2022 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | € 1,350,000,000 | ||||||
Coupon % | 4.75% | 4.75% | 4.75% | ||||
Medium Term Note Due March 29, 2024 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | € 1,250,000,000 | € 1,250,000,000 | |||||
Coupon % | 3.75% | 3.75% | 3.75% | 3.75% | |||
Medium Term Note, Others | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | € 7,000,000 | ||||||
Medium Term Note, Others | Top of range | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | € 50,000,000 | ||||||
Other Notes Due April 15, 2020 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | $ 1,500,000,000 | € 1,423,000,000 | $ 1,500,000,000 | ||||
Coupon % | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | ||
Other Notes Due April 15, 2023 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face value of outstanding notes (million) | $ 1,500,000,000 | € 1,423,000,000 | $ 1,500,000,000 | ||||
Coupon % | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | ||
Gross amount | Medium Term Notes | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | € 6,920,000,000 | 9,209,000,000 | |||||
Gross amount | Medium Term Note Due March 23, 3017 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 0 | 850,000,000 | |||||
Gross amount | Medium Term Note Due June 12, 2017 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 0 | 1,000,000,000 | |||||
Gross amount | Medium Term Note Due November 22, 2017 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 0 | 419,000,000 | |||||
Gross amount | Medium Term Note Due March 15, 2018 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 1,250,000,000 | 1,250,000,000 | |||||
Gross amount | Medium Term Note Due July 9, 2018 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 600,000,000 | 600,000,000 | |||||
Gross amount | Medium Term Note Due September 30, 2019 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 213,000,000 | 233,000,000 | |||||
Gross amount | Medium Term Note Due October 14, 2019 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 1,250,000,000 | 1,250,000,000 | |||||
Gross amount | Medium Term Note Due March 22, 2021 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 1,000,000,000 | 1,000,000,000 | |||||
Gross amount | Medium Term Note Due July 15, 2022 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 1,350,000,000 | 1,350,000,000 | |||||
Gross amount | Medium Term Note Due March 29, 2024 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 1,250,000,000 | 1,250,000,000 | |||||
Gross amount | Medium Term Note, Others | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 7,000,000 | 7,000,000 | |||||
Gross amount | Other Notes | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 2,502,000,000 | 2,846,000,000 | |||||
Gross amount | Other Notes Due April 15, 2020 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 1,251,000,000 | 1,423,000,000 | |||||
Gross amount | Other Notes Due April 15, 2023 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | 1,251,000,000 | 1,423,000,000 | |||||
Hedging effect, accrued interest and amortized cost valuation | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings | € 204,000,000 | € 296,000,000 |
Debt - notes issued through the
Debt - notes issued through the medium term note programme and other notes (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Nov. 30, 2017EUR (€) | Nov. 30, 2017CHF (SFr) | Jun. 30, 2017EUR (€) | Mar. 31, 2017EUR (€) | Nov. 30, 2016EUR (€) | Nov. 30, 2016CHF (SFr) | Oct. 31, 2016EUR (€) | Apr. 30, 2016EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017CHF (SFr) | Dec. 31, 2016EUR (€) | Mar. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Debt and Other | € 17,971,000,000 | € 24,048,000,000 | ||||||||||||||
Extinguishment of debt principal amount | $ | $ 850,000,000 | |||||||||||||||
Notes Issued Through The Medium Term Note Programme [Member] | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Maximum that may be used under the program | 20,000,000,000 | |||||||||||||||
Medium Term Notes | Gross amount | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Debt and Other | € 6,920,000,000 | 9,209,000,000 | ||||||||||||||
Medium Term Note Due March 23, 3017 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Extinguishment of debt principal amount | € 850,000,000 | |||||||||||||||
Coupon % | 7.00% | 7.00% | 7.00% | |||||||||||||
Face amount | € 850,000,000 | |||||||||||||||
Medium Term Note Due March 23, 3017 | Gross amount | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Debt and Other | € 0 | 850,000,000 | ||||||||||||||
Medium Term Note Due June 12, 2017 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Extinguishment of debt principal amount | € 1,000,000,000 | |||||||||||||||
Coupon % | 5.625% | 5.625% | 5.625% | |||||||||||||
Face amount | € 1,000,000,000 | |||||||||||||||
Medium Term Note Due June 12, 2017 | Gross amount | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Debt and Other | € 0 | 1,000,000,000 | ||||||||||||||
Medium Term Note Due November 22, 2017 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Extinguishment of debt principal amount | € 385,000,000 | SFr 450,000,000 | ||||||||||||||
Coupon % | 4.00% | 4.00% | 4.00% | |||||||||||||
Face amount | € 385,000,000 | SFr 450,000,000 | ||||||||||||||
Medium Term Note Due November 22, 2017 | Gross amount | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Debt and Other | € 0 | 419,000,000 | ||||||||||||||
Medium Term Note Due March 29, 2024 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Coupon % | 3.75% | 3.75% | 3.75% | 3.75% | ||||||||||||
Face amount | € 1,250,000,000 | € 1,250,000,000 | ||||||||||||||
Medium Term Note Due March 29, 2024 | Gross amount | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Debt and Other | € 1,250,000,000 | 1,250,000,000 | ||||||||||||||
Medium Term Note Due April 1, 2016 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Extinguishment of debt principal amount | € 1,000,000,000 | |||||||||||||||
Medium Term Note Due October 17, 2016 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Extinguishment of debt principal amount | € 1,000,000,000 | |||||||||||||||
Medium Term Note Due November 23, 2016 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Extinguishment of debt principal amount | € 373,000,000 | SFr 400,000,000 | ||||||||||||||
Other Notes Due April 15, 2020 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Coupon % | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | |||||||||||
Face amount | $ 1,500,000,000 | € 1,423,000,000 | $ 1,500,000,000 | |||||||||||||
Other Notes Due April 15, 2020 | Gross amount | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Debt and Other | € 1,251,000,000 | 1,423,000,000 | ||||||||||||||
Other Notes Due April 15, 2023 | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Coupon % | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | |||||||||||
Face amount | $ 1,500,000,000 | € 1,423,000,000 | $ 1,500,000,000 | |||||||||||||
Other Notes Due April 15, 2023 | Gross amount | ||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||
Debt and Other | € 1,251,000,000 | € 1,423,000,000 |
Debt - Fiat Chrysler Finance US
Debt - Fiat Chrysler Finance US Inc (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Fiat Chrysler Finance US Inc | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Debt - FCA US tranche B term lo
Debt - FCA US tranche B term loans (Details) € in Millions, $ in Millions | Mar. 15, 2016EUR (€) | Mar. 15, 2016USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2017USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||||
Debt and Other | € 17,971 | € 24,048 | ||||
FCA Trance B Term Loans | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Repayments of borrowings | € 1,800 | $ 2,000 | ||||
Gain (loss) on extinguishment of debt | 3 | 10 | ||||
FCA US Tranche B Term loan due 2017 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Repayments of borrowings | 1,159 | 1,288 | 1,721 | $ 1,826 | ||
FCA US Tranche B Term Loan Due 2018 | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Repayments of borrowings | € 641 | $ 712 | ||||
Debt and Other | € 836 | € 948 | ||||
Adjustment to interest rate basis | 0.50% | 0.50% | ||||
Minimum liquidity | € 2,500 | $ 3,000 | ||||
FCA US Tranche B Term Loan Due 2018 | FCA US's U.S. subsidiaries | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of equity interest serving as collateral | 100.00% | 100.00% | ||||
FCA US Tranche B Term Loan Due 2018 | FCA US Non-U.S. subsidiaries | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Percentage of equity interest serving as collateral | 65.00% | 65.00% | ||||
FCA US Tranche B Term Loan Due 2018 | LIBOR | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Adjustment to interest rate basis | 2.00% | 2.00% | 2.00% | |||
Borrowings, adjustment to interest rate floor | 0.75% | 0.75% | ||||
Interest rate basis floor | 0.00% | 0.00% | ||||
FCA US Tranche B Term Loan Due 2018 | Base Rate | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Adjustment to interest rate basis | 1.00% | 1.00% |
Debt - european investment bank
Debt - european investment bank borrowings (Details) - EUR (€) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 02, 2016 |
Disclosure of detailed information about borrowings [line items] | |||
Debt and Other | € 17,971,000,000 | € 24,048,000,000 | |
European Investment Bank Borrowings | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt and Other | 1,100,000,000 | € 1,300,000,000 | |
European Investment Bank Maturing, 250 Million Facility | |||
Disclosure of detailed information about borrowings [line items] | |||
Face amount | € 250,000,000 | ||
European Investment Bank Maturing, 600 Billion Facility | |||
Disclosure of detailed information about borrowings [line items] | |||
Face amount | 600,000,000 | ||
European Investment Bank Maturing, 400 Million Facility | |||
Disclosure of detailed information about borrowings [line items] | |||
Face amount | 400,000,000 | ||
European Investment Bank Maturing, 500 Million Facility | |||
Disclosure of detailed information about borrowings [line items] | |||
Face amount | € 500,000,000 |
Debt - brazil (Details)
Debt - brazil (Details) € in Millions, BRL in Billions | 12 Months Ended | ||
Dec. 31, 2017EUR (€) | Dec. 31, 2017BRL | Dec. 31, 2016EUR (€) | |
Disclosure of detailed information about borrowings [line items] | |||
Debt and Other | € 17,971 | € 24,048 | |
Undrawn borrowing facilities | 7,600 | 6,200 | |
Brazil Loans | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt and Other | € 3,200 | 4,000 | |
Long-term Brazil Credit Facilities | Bottom of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings maturity term | 1 year | ||
Long-term Brazil Credit Facilities | Top of range | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings maturity term | 2 years | ||
Subsidized Brazil Loans | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt and Other | € 2,100 | 2,600 | |
Subsidized Brazil Loans, Construction Of Plant In Pernambuco | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt and Other | 1,600 | 1,300 | |
Maximum amount available under credit facility | 1,600 | BRL 6.5 | |
Undrawn borrowing facilities | € 100 | € 300 |
Debt - revolving credit facilit
Debt - revolving credit facilities (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [line items] | |||
Undrawn borrowing facilities | € 7,600,000,000 | € 6,200,000,000 | |
Revolving Credit Facilities | |||
Disclosure of detailed information about borrowings [line items] | |||
Maximum amount available under credit facility | € 6,250,000,000 | 5,000,000,000 | |
Undrawn borrowing facilities | € 6,250,000,000 | ||
Revolving Credit Facility, Tranche One | |||
Disclosure of detailed information about borrowings [line items] | |||
Maximum amount available under credit facility | € 3,125,000,000 | ||
Borrowings maturity term | 37 months | ||
Revolving Credit Facility, Tranche One | Borrowings Extension Option 1 | |||
Disclosure of detailed information about borrowings [line items] | |||
Extension term | 1 year | ||
Revolving Credit Facility, Tranche One | Borrowings Extension Option 2 | |||
Disclosure of detailed information about borrowings [line items] | |||
Extension term | 11 months | ||
Revolving Credit Facility, Tranche Two | |||
Disclosure of detailed information about borrowings [line items] | |||
Maximum amount available under credit facility | € 3,125,000,000 | ||
Borrowings maturity term | 60 months | ||
Other Revolving Credit Facilities | |||
Disclosure of detailed information about borrowings [line items] | |||
Undrawn borrowing facilities | € 1,300,000,000 | € 1,200,000,000 |
Debt - mexico bank loan (Detail
Debt - mexico bank loan (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [line items] | ||
Debt and Other | € 17,971 | € 24,048 |
Mexico Bank Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt and Other | € 400 | € 500 |
1-Month LIBOR | Mexico Bank Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Adjustment to interest rate basis | 3.35% |
Debt - asset-backed financing (
Debt - asset-backed financing (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Trade and other receivables | € 8,553 | € 7,854 |
Asset-backed financing | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Trade and other receivables | € 357 | € 410 |
Debt - other debt (Details)
Debt - other debt (Details) € in Millions, $ in Millions | Dec. 15, 2016EUR (€) | Dec. 15, 2016USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||
Debt and Other | € 17,971 | € 24,048 | |||||
Extinguishment of debt principal amount | $ | $ 850 | ||||||
Canada HCT Tranche B Note | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Repayments of borrowings | 272 | ||||||
Extinguishment of debt principal amount | 226 | ||||||
Gain (loss) on extinguishment of debt | € 9 | ||||||
Unsecured Canada HCT Notes [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debt and Other | 278 | ||||||
Repayments of borrowings | 148 | ||||||
Unsecured Canada HCT Tranche C Note | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Gain (loss) on extinguishment of debt | € (8) | ||||||
Mandatory Convertible Securities | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Repayments of borrowings | € 213 | $ 226 | |||||
Face amount | € 2,293 | $ 2,875 |
Debt - finance Lease (Details)
Debt - finance Lease (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of finance lease and operating lease by lessee [line items] | ||
Minimum finance lease payments payable | € 317 | € 703 |
Future finance charge on finance lease | (36) | (63) |
Minimum finance lease payments payable, at present value | 281 | 640 |
Due within one year | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Minimum finance lease payments payable | 90 | 138 |
Future finance charge on finance lease | (15) | (22) |
Minimum finance lease payments payable, at present value | 75 | 116 |
Due between one and three years | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Minimum finance lease payments payable | 134 | 246 |
Future finance charge on finance lease | (15) | (29) |
Minimum finance lease payments payable, at present value | 119 | 217 |
Due between three and five years | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Minimum finance lease payments payable | 19 | 131 |
Future finance charge on finance lease | (3) | (7) |
Minimum finance lease payments payable, at present value | 16 | 124 |
Due beyond five years | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Minimum finance lease payments payable | 74 | 188 |
Future finance charge on finance lease | (3) | (5) |
Minimum finance lease payments payable, at present value | € 71 | € 183 |
Debt - debt secured by assets (
Debt - debt secured by assets (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [line items] | ||
Debt and Other | € 17,971 | € 24,048 |
Property, plant and equipment, pledged as security | 2,372 | 1,940 |
Secured Debt Excluding FCA US | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt and Other | 743 | 914 |
Secured Debt Excluding FCA US, Finance Leases | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt and Other | 140 | 433 |
Secured Debt FCA US | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt and Other | 1,441 | 3,446 |
Secured Debt FCA US, Tranche B Term Loan Due 2018 | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt and Other | 836 | 2,678 |
Secured Debt FCA US, Finance Leases | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt and Other | 141 | 207 |
Secured Debt FCA US, Other Debt and Financial Commitments | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt and Other | € 464 | € 561 |
Other liabilities and tax pa151
Other liabilities and tax payable - other liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current | ||
Payables for buy-back agreements, current | € 2,234 | € 2,081 |
Indirect tax payables, current | 799 | 667 |
Accrued expenses and deferred income, current | 1,573 | 1,320 |
Payables to personnel, current | 988 | 1,006 |
Social security payables, current | 313 | 312 |
Amounts due to customers for contract work, current | 190 | 236 |
Other, current | 1,838 | 2,187 |
Total Other liabilities, current | 7,935 | 7,809 |
Non-current | ||
Payables for buy-back agreements, non-current | 0 | 0 |
Indirect tax payables, non-current | 19 | 968 |
Accrued expenses and deferred income, non-current | 2,260 | 2,428 |
Payables to personnel, non-current | 16 | 34 |
Social security payables, non-current | 6 | 7 |
Amounts due to customers for contract work, non-current | 0 | 0 |
Other, non-current | 199 | 166 |
Total Other liabilities, non-current | 2,500 | 3,603 |
Total | ||
Payables for buy-back agreements | 2,234 | 2,081 |
Indirect tax payables | 818 | 1,635 |
Accrued expenses and deferred income | 3,833 | 3,748 |
Payables to personnel | 1,004 | 1,040 |
Social security payables | 319 | 319 |
Amounts due to customers for contract work (Note 14) | 190 | 236 |
Other | 2,037 | 2,353 |
Total Other liabilities | € 10,435 | € 11,412 |
Other liabilities and tax pa152
Other liabilities and tax payable - other liabilities by due date (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other liabilities (excluding Accrued expenses and deferred income) | € 6,602 | € 7,664 |
Due within one year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other liabilities (excluding Accrued expenses and deferred income) | 6,362 | 6,489 |
Due between one and five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other liabilities (excluding Accrued expenses and deferred income) | 227 | 1,159 |
Due beyond five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other liabilities (excluding Accrued expenses and deferred income) | 13 | 16 |
Total due after one year (non-current) | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other liabilities (excluding Accrued expenses and deferred income) | € 240 | € 1,175 |
Other liabilities and tax pa153
Other liabilities and tax payable - narrative (Details) € in Millions, $ in Millions | Jun. 30, 2017EUR (€) | Jan. 20, 2017EUR (€) | Jan. 20, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Reversal of a Brazilian indirect tax liability | € 895 | € 895 | € 0 | € 0 | ||
Payments to employee unions | € 166 | $ 175 | ||||
Net revenues | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Reversal of a Brazilian indirect tax liability | 547 | |||||
Net financial income (expense) | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Reversal of a Brazilian indirect tax liability | € 348 |
Other liabilities and tax pa154
Other liabilities and tax payable - taxes payable by due date (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Tax payables | € 309 | € 162 |
Tax payables | 74 | 25 |
Tax payables | 383 | 187 |
Due between one and five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Tax payables | 32 | 25 |
Due beyond five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Tax payables | € 42 | € 0 |
Fair value measurements - asset
Fair value measurements - assets and liabilities measured at fair value on recurring basis (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | € 96,299 | € 104,343 |
Recurring fair value measurement | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 13,287 | 18,366 |
Liabilities | 139 | 697 |
Recurring fair value measurement | Derivatives | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Liabilities | 139 | 697 |
Recurring fair value measurement | Debt securities and equity instruments measured at fair value through other comprehensive income | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 27 | 189 |
Recurring fair value measurement | Debt securities and equity instruments measured at fair value through profit or loss | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 277 | 312 |
Recurring fair value measurement | Collateral deposits | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 61 | 68 |
Recurring fair value measurement | Derivatives | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 284 | 479 |
Recurring fair value measurement | Cash and cash equivalents | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 12,638 | 17,318 |
Recurring fair value measurement | Level 1 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 11,139 | 16,329 |
Liabilities | 0 | 0 |
Recurring fair value measurement | Level 1 | Derivatives | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Liabilities | 0 | 0 |
Recurring fair value measurement | Level 1 | Debt securities and equity instruments measured at fair value through other comprehensive income | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 3 | 159 |
Recurring fair value measurement | Level 1 | Debt securities and equity instruments measured at fair value through profit or loss | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 275 | 312 |
Recurring fair value measurement | Level 1 | Collateral deposits | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 61 | 68 |
Recurring fair value measurement | Level 1 | Derivatives | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 0 | 0 |
Recurring fair value measurement | Level 1 | Cash and cash equivalents | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 10,800 | 15,790 |
Recurring fair value measurement | Level 2 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 2,116 | 2,004 |
Liabilities | 138 | 695 |
Recurring fair value measurement | Level 2 | Derivatives | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Liabilities | 138 | 695 |
Recurring fair value measurement | Level 2 | Debt securities and equity instruments measured at fair value through other comprehensive income | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 24 | 18 |
Recurring fair value measurement | Level 2 | Debt securities and equity instruments measured at fair value through profit or loss | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 0 | 0 |
Recurring fair value measurement | Level 2 | Collateral deposits | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 0 | 0 |
Recurring fair value measurement | Level 2 | Derivatives | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 254 | 458 |
Recurring fair value measurement | Level 2 | Cash and cash equivalents | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 1,838 | 1,528 |
Recurring fair value measurement | Level 3 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 32 | 33 |
Liabilities | 1 | 2 |
Recurring fair value measurement | Level 3 | Derivatives | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Liabilities | 1 | 2 |
Recurring fair value measurement | Level 3 | Debt securities and equity instruments measured at fair value through other comprehensive income | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 0 | 12 |
Recurring fair value measurement | Level 3 | Debt securities and equity instruments measured at fair value through profit or loss | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 2 | 0 |
Recurring fair value measurement | Level 3 | Collateral deposits | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 0 | 0 |
Recurring fair value measurement | Level 3 | Derivatives | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | 30 | 21 |
Recurring fair value measurement | Level 3 | Cash and cash equivalents | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Assets | € 0 | € 0 |
Fair value measurements - recon
Fair value measurements - reconciliation of changes in items measured at fair value Level 3 (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Securities | ||
Assets, beginning | € 104,343 | |
Assets, ending | 96,299 | € 104,343 |
Recurring fair value measurement | ||
Securities | ||
Assets, beginning | 18,366 | |
Assets, ending | 13,287 | 18,366 |
Recurring fair value measurement | Derivatives | ||
Securities | ||
Assets, beginning | 479 | |
Assets, ending | 284 | 479 |
Recurring fair value measurement | Level 3 | ||
Securities | ||
Assets, beginning | 33 | |
Assets, ending | 32 | 33 |
Recurring fair value measurement | Level 3 | Cash flow hedge reserve | ||
Derivative financial assets/(liabilities) | ||
Gains/(Losses) recognized in Other comprehensive income | 20 | |
Recurring fair value measurement | Level 3 | Currency translation differences | ||
Derivative financial assets/(liabilities) | ||
Gains/(Losses) recognized in Other comprehensive income | 2 | |
Recurring fair value measurement | Level 3 | Available-for-sale securities | ||
Securities | ||
Assets, beginning | 12 | 12 |
Gains/(Losses) recognized in Consolidated Income Statement | (10) | 0 |
Gains/(Losses) recognized in Other comprehensive income | 0 | 0 |
Issues/Settlements | 0 | 0 |
Assets, ending | 2 | 12 |
Recurring fair value measurement | Level 3 | Derivatives | ||
Securities | ||
Assets, beginning | 21 | |
Assets, ending | 30 | 21 |
Recurring fair value measurement | Level 3 | Derivatives | Derivatives | ||
Derivative financial assets/(liabilities) | ||
Assets (liabilities), beginning | 19 | (35) |
Gains/(Losses) recognized in Consolidated Income Statement | 27 | (31) |
Gains/(Losses) recognized in Other comprehensive income | 18 | 62 |
Issues/Settlements | (35) | 23 |
Assets (liabilities), ending | € 29 | € 19 |
Fair value measurements - finan
Fair value measurements - financial assets and liabilities not measured at fair value on a recurring basis (Details) - Not measured at fair value in statement of financial position but for which fair value is disclosed - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Borrowings [Member] | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities | € 17,971 | € 24,048 |
Financial liabilities, at fair value | 18,723 | 24,885 |
Asset-backed financing | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities | 357 | 410 |
Financial liabilities, at fair value | 357 | 410 |
Notes | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities | 9,626 | 12,351 |
Financial liabilities, at fair value | 10,365 | 13,164 |
Notes | Level 1 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities, at fair value | 10,358 | 13,157 |
Notes | Level 2 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities, at fair value | 7 | 7 |
Other debt | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities | 7,988 | 11,287 |
Financial liabilities, at fair value | 8,001 | 11,311 |
Other debt | Level 2 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities, at fair value | 6,796 | 9,424 |
Other debt | Level 3 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities, at fair value | 1,205 | 1,887 |
Receivables From Financing Activities [Member] | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial assets | 3,140 | 2,578 |
Financial assets, at fair value | 3,125 | 2,577 |
Dealer financing | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial assets | 2,295 | 2,115 |
Financial assets, at fair value | 2,295 | 2,115 |
Retail financing | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial assets | 420 | 286 |
Financial assets, at fair value | 405 | 285 |
Finance lease | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial assets | 4 | 6 |
Financial assets, at fair value | 4 | 6 |
Other receivables from financing activities | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial assets | 421 | 171 |
Financial assets, at fair value | € 421 | € 171 |
Related party transactions - ad
Related party transactions - additional information (Details) - EUR (€) € in Thousands | Dec. 15, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of transactions between related parties [line items] | ||||
Number of shares issued through conversion (in shares) | 238,846,375 | |||
Key management personnel compensation | € 29,861 | € 39,329 | € 38,488 | |
Key employees | ||||
Disclosure of transactions between related parties [line items] | ||||
Key management personnel compensation | 81,000 | 103,000 | 65,000 | |
Key management personnel compensation, share-based payment | 49,000 | 73,000 | 38,000 | |
Short-term employee benefits expense | 8,000 | 8,000 | 8,000 | |
Post-employment benefit expense, defined benefit plans | € 9,000 | € 6,000 | € 3,000 | |
Exor N.V. | Largest shareholder | ||||
Disclosure of transactions between related parties [line items] | ||||
Shareholder ownership percentage | 29.18% | |||
Shareholder voting interest ownership | 42.34% | |||
Number of shares issued through conversion (in shares) | 73,606,222 |
Related party transactions - si
Related party transactions - significant transactions with related parties (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [line items] | |||
Net revenues | € 110,934 | € 111,018 | € 110,595 |
Cost of revenues | 93,975 | 95,295 | 97,620 |
Selling, general and other costs | 7,385 | 7,568 | 7,576 |
Net financial expenses | 1,469 | 2,016 | 2,366 |
Trade and other receivables | 8,553 | 7,854 | |
Trade payables | 21,939 | 22,655 | |
Other liabilities | 10,435 | 11,412 | |
Secured bank loans received | 357 | 410 | |
Debt | 17,614 | 23,638 | |
Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 4,023 | 4,230 | 3,587 |
Cost of revenues | 2,808 | 2,835 | 1,651 |
Selling, general and other costs | (115) | (99) | 13 |
Net financial expenses | 38 | 38 | 30 |
Trade and other receivables | 608 | 410 | |
Trade payables | 475 | 552 | |
Other liabilities | 261 | 168 | |
Secured bank loans received | 319 | 169 | |
Debt | 33 | 26 | |
Associates | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 73 | 91 | 143 |
Cost of revenues | 52 | 47 | 14 |
Selling, general and other costs | (3) | 0 | 6 |
Net financial expenses | (1) | 0 | 0 |
Trade and other receivables | 36 | 30 | |
Trade payables | 32 | 18 | |
Other liabilities | 13 | 18 | |
Secured bank loans received | 0 | 0 | |
Debt | 0 | 0 | |
Key management personnel of entity or parent | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 609 | 624 | 564 |
Cost of revenues | 649 | 668 | 432 |
Selling, general and other costs | 143 | 172 | 149 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 71 | 105 | |
Trade payables | 163 | 159 | |
Other liabilities | 11 | 15 | |
Secured bank loans received | 0 | 0 | |
Debt | 0 | 4 | |
Unconsolidated subsidiaries | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 61 | 57 | 79 |
Cost of revenues | 8 | 7 | 13 |
Selling, general and other costs | 3 | 8 | 8 |
Net financial expenses | 1 | 1 | (1) |
Trade and other receivables | 83 | 84 | |
Trade payables | 8 | 9 | |
Other liabilities | 1 | 1 | |
Secured bank loans received | 0 | 0 | |
Debt | 28 | 25 | |
Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 4,766 | 5,002 | 4,373 |
Cost of revenues | 3,517 | 3,557 | 2,110 |
Selling, general and other costs | 28 | 81 | 176 |
Net financial expenses | 38 | 39 | 29 |
Trade and other receivables | 798 | 629 | |
Trade payables | 678 | 738 | |
Other liabilities | 286 | 202 | |
Secured bank loans received | 319 | 169 | |
Debt | 61 | 55 | |
Tofas | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 1,287 | 1,536 | 1,533 |
Cost of revenues | 2,779 | 2,811 | 1,611 |
Selling, general and other costs | 9 | 3 | 0 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 34 | 28 | |
Trade payables | 240 | 298 | |
Other liabilities | 50 | 52 | |
Secured bank loans received | 0 | 0 | |
Debt | 0 | 0 | |
Sevel S.p.A. | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 392 | 381 | 311 |
Cost of revenues | 0 | 0 | 0 |
Selling, general and other costs | 5 | 5 | 4 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 23 | 33 | |
Trade payables | 0 | 0 | |
Other liabilities | 6 | 4 | |
Secured bank loans received | 0 | 0 | |
Debt | 1 | 8 | |
FCA Bank S.p.A. | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 1,715 | 1,571 | 1,447 |
Cost of revenues | 26 | 18 | 14 |
Selling, general and other costs | (20) | (21) | 9 |
Net financial expenses | 36 | 39 | 30 |
Trade and other receivables | 466 | 201 | |
Trade payables | 206 | 248 | |
Other liabilities | 199 | 108 | |
Secured bank loans received | 319 | 169 | |
Debt | 32 | 18 | |
GAC FCA JV | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 569 | 683 | 252 |
Cost of revenues | 0 | 0 | 0 |
Selling, general and other costs | (105) | (82) | 0 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 58 | 121 | |
Trade payables | 15 | 2 | |
Other liabilities | 1 | 4 | |
Secured bank loans received | 0 | 0 | |
Debt | 0 | 0 | |
Fiat India Automobiles Limited | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 25 | 23 | 15 |
Cost of revenues | 1 | 1 | 4 |
Selling, general and other costs | 0 | (1) | 0 |
Net financial expenses | 0 | (1) | 0 |
Trade and other receivables | 7 | 2 | |
Trade payables | 13 | 0 | |
Other liabilities | 5 | 0 | |
Secured bank loans received | 0 | 0 | |
Debt | 0 | 0 | |
Other related parties | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 35 | 36 | 29 |
Cost of revenues | 2 | 5 | 22 |
Selling, general and other costs | (4) | (3) | 0 |
Net financial expenses | 2 | 0 | 0 |
Trade and other receivables | 20 | 25 | |
Trade payables | 1 | 4 | |
Other liabilities | 0 | 0 | |
Secured bank loans received | 0 | 0 | |
Debt | 0 | 0 | |
Other related parties | Key management personnel of entity or parent | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 1 | 0 | 0 |
Cost of revenues | 0 | 0 | 1 |
Selling, general and other costs | 26 | 26 | 17 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 1 | 0 | |
Trade payables | 2 | 2 | |
Other liabilities | 0 | 0 | |
Secured bank loans received | 0 | 0 | |
Debt | 0 | 0 | |
CNHI | Key management personnel of entity or parent | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 526 | 543 | 564 |
Cost of revenues | 329 | 422 | 431 |
Selling, general and other costs | 2 | 3 | 0 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 47 | 80 | |
Trade payables | 86 | 82 | |
Other liabilities | 11 | 15 | |
Secured bank loans received | 0 | 0 | |
Debt | 0 | 4 | |
Ferrari N.V. | Key management personnel of entity or parent | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 82 | 81 | |
Cost of revenues | 320 | 246 | |
Selling, general and other costs | 1 | 0 | |
Net financial expenses | 0 | 0 | |
Trade and other receivables | 23 | 25 | |
Trade payables | 75 | 75 | |
Other liabilities | 0 | 0 | |
Secured bank loans received | 0 | 0 | |
Debt | 0 | 0 | |
Directors, Statutory Auditors and Key Management | Key management personnel of entity or parent | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 |
Selling, general and other costs | 114 | 143 | 132 |
Net financial expenses | € 0 | € 0 | € 0 |
Related party transactions - fu
Related party transactions - future minimum expected obligations (Details) - Joint ventures - Tofas-Turk Otomobil Fabrikasi A.S. € in Millions | Dec. 31, 2017EUR (€) |
2,018 | |
Disclosure of transactions between related parties [line items] | |
Related party, future minimum expected obligation | € 340 |
2,019 | |
Disclosure of transactions between related parties [line items] | |
Related party, future minimum expected obligation | 276 |
2,020 | |
Disclosure of transactions between related parties [line items] | |
Related party, future minimum expected obligation | 269 |
2,021 | |
Disclosure of transactions between related parties [line items] | |
Related party, future minimum expected obligation | 250 |
2,022 | |
Disclosure of transactions between related parties [line items] | |
Related party, future minimum expected obligation | 159 |
2023 and thereafter | |
Disclosure of transactions between related parties [line items] | |
Related party, future minimum expected obligation | € 0 |
Related party transactions - co
Related party transactions - compensation to directors (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [line items] | |||
Compensation | € 29,861 | € 39,329 | € 38,488 |
Director | |||
Disclosure of transactions between related parties [line items] | |||
Compensation | € 29,861 | € 39,329 | € 38,488 |
Guarantees granted, commitme162
Guarantees granted, commitments and contingent liabilities - additional information (Details) vehicle in Thousands, € in Millions, airbag_unit in Millions | Jan. 09, 2018airbag_unit | Jan. 12, 2017vehicle | Nov. 04, 2016EUR (€) | Nov. 04, 2016CAD | Oct. 16, 2016 | May 16, 2016airbag_unit | May 04, 2016airbag_unit | Nov. 06, 2015EUR (€) | Nov. 06, 2015USD ($) | Jul. 24, 2015EUR (€) | Jul. 24, 2015USD ($) | Apr. 02, 2015EUR (€) | Apr. 02, 2015USD ($) | Dec. 31, 2015 | Oct. 31, 2015 | Apr. 30, 2015 | May 31, 2013EUR (€) | Feb. 28, 2013 | Dec. 31, 2017EUR (€)airbag_unitlawsuit | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2017USD ($) | May 31, 2013USD ($) |
Disclosure of contingent liabilities [line items] | |||||||||||||||||||||||
Financial assets pledged as collateral for liabilities or contingent liabilities | € 5 | € 8 | |||||||||||||||||||||
Provision of guarantees or collateral by entity, related party transactions | 4 | 2 | |||||||||||||||||||||
Financing agreement, term (in years) | 10 years | ||||||||||||||||||||||
Deferred income | € 109 | 67 | $ 80,000,000 | $ 150,000,000 | |||||||||||||||||||
Amortization period | 10 years | ||||||||||||||||||||||
Ownership period limit for repurchase obligation (in years) | 1 year | ||||||||||||||||||||||
Repurchase obligation, term (in years) | 10 years | ||||||||||||||||||||||
Refunds provision | 285 | $ 319,000,000 | |||||||||||||||||||||
Repurchase obligation, at fair value (less than) | 0.1 | ||||||||||||||||||||||
Minimum operating lease payments recognised as expense | 341 | 339 | € 246 | ||||||||||||||||||||
Warranty and recall expense, number of additional units affected | airbag_unit | 7.6 | ||||||||||||||||||||||
Warranty and recall expense, number of additional units affected, deferred and not yet subject to recall | airbag_unit | 2 | ||||||||||||||||||||||
Warranty and recall expense, recall of airbag inflators | € 102 | 414 | |||||||||||||||||||||
Loss contingency, number of pending lawsuits | lawsuit | 2 | ||||||||||||||||||||||
Litigation settlement, amount awarded to other party | € 38 | $ 40,000,000 | € 141 | $ 148,500,000 | |||||||||||||||||||
LATAM | |||||||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||||||
Warranty and recall expense, recall of airbag inflators | € 73 | ||||||||||||||||||||||
U.S. | |||||||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||||||
Warranty and recall expense, number of additional units affected | airbag_unit | 0.4 | ||||||||||||||||||||||
Warranty and recall expense, number of additional units affected, deferred and not yet subject to recall | airbag_unit | 1.6 | ||||||||||||||||||||||
Warranty and recall expense, number of units recalled | airbag_unit | 5.6 | ||||||||||||||||||||||
Warranty and recall expense, recall of airbag inflators | € 29 | 414 | |||||||||||||||||||||
Loss contingency, number of vehicles sold that are subject to investigation | vehicle | 100 | ||||||||||||||||||||||
Restructuring contingent liability [member] | |||||||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||||||
Estimated financial effect of contingent liabilities | 170 | ||||||||||||||||||||||
Provisions | 50 | ||||||||||||||||||||||
UAW Labor Agreement | |||||||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||||||
Labor agreement, term of agreement (in years) | 4 years | ||||||||||||||||||||||
Labor agreement, term of pay gap resolution (in years) | 8 years | ||||||||||||||||||||||
Labor agreement, lump sum payment per traditional employee | $ | $ 4,000 | ||||||||||||||||||||||
Labor agreement, lump sum payment per in-progression employee | $ | 3,000 | ||||||||||||||||||||||
Labor agreement, total lump sum payment to employees | € 127 | $ 141,000,000 | |||||||||||||||||||||
Italian Labor Agreement | |||||||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||||||
Labor agreement, term of agreement (in years) | 4 years | ||||||||||||||||||||||
Labor agreement, employee bonus payment period (in years) | 4 years | ||||||||||||||||||||||
Labor agreement, employee bonus, years of service required (in years) | 2 years | ||||||||||||||||||||||
Compensation agreement, compensation expense | € 124 | € 117 | € 115 | ||||||||||||||||||||
Canada Labor Agreement | |||||||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||||||
Labor agreement, term of agreement (in years) | 4 years | ||||||||||||||||||||||
Labor agreement, total lump sum payment to employees | € 38 | CAD 55,000,000 | |||||||||||||||||||||
Labor agreement, wage increase in first and fourth years, percent | 2.00% | ||||||||||||||||||||||
Labor agreement, progressive pay scale plan, term (in years) | 10 years | ||||||||||||||||||||||
Labor agreement, lump sum payment per employee | CAD | CAD 6,000 | ||||||||||||||||||||||
Industrial buildings | Bottom of range | |||||||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||||||
Operating lease, term (in years) | 10 years | ||||||||||||||||||||||
Industrial buildings | Top of range | |||||||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||||||
Operating lease, term (in years) | 20 years | ||||||||||||||||||||||
Machinery | Bottom of range | |||||||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||||||
Operating lease, term (in years) | 3 years | ||||||||||||||||||||||
Machinery | Top of range | |||||||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||||||
Operating lease, term (in years) | 5 years |
Guarantees granted, commitme163
Guarantees granted, commitments and contingent liabilities - repurchase obligation (Details) € in Millions | Dec. 31, 2017EUR (€) |
2,018 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum purchase obligation payable | € 817 |
2,019 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum purchase obligation payable | 583 |
2,020 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum purchase obligation payable | 515 |
2,021 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum purchase obligation payable | 325 |
2,022 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum purchase obligation payable | 198 |
2023 and thereafter | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum purchase obligation payable | € 53 |
Guarantees granted, commitme164
Guarantees granted, commitments and contingent liabilities - operating lease contracts (Details) € in Millions | Dec. 31, 2017EUR (€) |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum lease payments payable under non-cancellable operating lease | € 1,503 |
Due within one year | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum lease payments payable under non-cancellable operating lease | 352 |
Due between one and three years | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum lease payments payable under non-cancellable operating lease | 457 |
Due between three and five years | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum lease payments payable under non-cancellable operating lease | 298 |
Due beyond five years | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum lease payments payable under non-cancellable operating lease | € 396 |
Equity - additional information
Equity - additional information (Details) | Dec. 15, 2016dayshares | Dec. 31, 2017EUR (€)€ / sharesshares | Dec. 31, 2016EUR (€)€ / sharesshares | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) | Oct. 29, 2014shares |
Disclosure of classes of share capital [line items] | ||||||
Value of shares authorised | € 40,000,000 | |||||
Par value per share (in euros per shares) | € / shares | € 0.01 | € 0.01 | ||||
Equity | € 20,987,000,000 | € 19,353,000,000 | € 16,968,000,000 | € 14,377,000,000 | ||
Number of shares outstanding (in shares) | shares | 1,949,031,457 | 1,936,907,486 | ||||
Convertible securities conversion ratio | 0.083077 | |||||
Conversion of stock, number of trading days for valuation | day | 20 | |||||
Increase (decrease) in number of ordinary shares issued (in shares) | shares | 238,846,375 | |||||
Statutory reserve | € 11,594,000,000 | € 10,866,000,000 | ||||
Capital reserve | 5,817,000,000 | 5,766,000,000 | ||||
Retained earnings (accumulated deficit) | 333,000,000 | (1,356,000,000) | ||||
Net profit attributable to owners of the parent | 3,491,000,000 | 1,803,000,000 | 334,000,000 | |||
Share capital | ||||||
Disclosure of classes of share capital [line items] | ||||||
Equity | € 19,000,000 | € 19,000,000 | € 17,000,000 | € 17,000,000 | ||
Common shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares authorised (in shares) | shares | 2,000,000,000 | 90,000,000 | ||||
Par value per share (in euros per shares) | € / shares | € 0.01 | |||||
Number of shares outstanding (in shares) | shares | 1,540,089,690 | 1,527,965,719 | ||||
Special voting shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares authorised (in shares) | shares | 2,000,000,000 | |||||
Par value per share (in euros per shares) | € / shares | € 0.01 | € 0.01 | ||||
Number of shares outstanding (in shares) | shares | 408,941,767 | 408,941,767 |
Equity - summary of changes to
Equity - summary of changes to outstanding shares (Details) | 12 Months Ended |
Dec. 31, 2017shares | |
Reconciliation of number of shares outstanding [abstract] | |
Number of shares outstanding (in shares) | 1,936,907,486 |
Number of shares outstanding (in shares) | 1,949,031,457 |
Common shares | |
Reconciliation of number of shares outstanding [abstract] | |
Number of shares outstanding (in shares) | 1,527,965,719 |
Number of shares outstanding (in shares) | 1,540,089,690 |
Special voting shares | |
Reconciliation of number of shares outstanding [abstract] | |
Number of shares outstanding (in shares) | 408,941,767 |
Number of shares outstanding (in shares) | 408,941,767 |
Executive Directors | |
Reconciliation of number of shares outstanding [abstract] | |
Shares issued to Directors (compensation) (in shares) | 2,795,500 |
Executive Directors | Common shares | |
Reconciliation of number of shares outstanding [abstract] | |
Shares issued to Directors (compensation) (in shares) | 2,795,500 |
Executive Directors | Special voting shares | |
Reconciliation of number of shares outstanding [abstract] | |
Shares issued to Directors (compensation) (in shares) | 0 |
Non-Executive Directors | |
Reconciliation of number of shares outstanding [abstract] | |
Shares issued to Directors (compensation) (in shares) | 54,855 |
Non-Executive Directors | Common shares | |
Reconciliation of number of shares outstanding [abstract] | |
Shares issued to Directors (compensation) (in shares) | 54,855 |
Non-Executive Directors | Special voting shares | |
Reconciliation of number of shares outstanding [abstract] | |
Shares issued to Directors (compensation) (in shares) | 0 |
Key management | |
Reconciliation of number of shares outstanding [abstract] | |
Shares issued to Directors (compensation) (in shares) | 9,273,616 |
Key management | Common shares | |
Reconciliation of number of shares outstanding [abstract] | |
Shares issued to Directors (compensation) (in shares) | 9,273,616 |
Key management | Special voting shares | |
Reconciliation of number of shares outstanding [abstract] | |
Shares issued to Directors (compensation) (in shares) | 0 |
Equity - other comprehensive in
Equity - other comprehensive income (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Items that will not be reclassified to the Consolidated Income Statement in subsequent periods: | |||
(Losses)/gains on re-measurement of defined benefit plans | € (64) | € 584 | € 679 |
Share of gains/(losses) on re-measurement of defined benefit plans for equity method investees | 2 | (5) | (2) |
Items relating to discontinued operations | 0 | 0 | 4 |
Total Items that will not be reclassified to the Consolidated Income Statement | (62) | 579 | 681 |
Items that may be reclassified to the Consolidated Income Statement in subsequent periods: | |||
Gains/(losses) on cash flow hedging instruments arising during the period | 66 | (54) | 63 |
Gains/(losses) on cash flow hedging instruments reclassified to the Consolidated Income Statement | 81 | (195) | 123 |
Total Gains/(losses) on cash flow hedging instruments | 147 | (249) | 186 |
Gains on available-for-sale financial assets | 14 | 15 | 11 |
Exchange (losses)/gains on translating foreign operations | (1,942) | 458 | 1,002 |
Share of Other comprehensive income/(loss) for equity method investees arising during the period | (94) | (97) | (18) |
Share of Other comprehensive income/(loss) for equity method investees reclassified to the Consolidated Income Statement | (27) | (25) | 1 |
Total Share of Other comprehensive (loss)/income for equity method investees | (121) | (122) | (17) |
Items relating to discontinued operations | 0 | 0 | 21 |
Total Items that may be reclassified to the Consolidated Income Statement | (1,902) | 102 | 1,203 |
Total Other comprehensive income | (1,964) | 681 | 1,884 |
Tax effect | (31) | (192) | (249) |
Tax effect - discontinued operations | 0 | 0 | (4) |
Total Other comprehensive (loss)/income, net of tax (B1)(B2)(B) | € (1,995) | € 489 | € 1,631 |
Equity - tax effect relating to
Equity - tax effect relating to other comprehensive income (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |||
Gains/(Losses) on re-measurement of defined benefit plans, pre-tax balance | € (64) | € 584 | € 679 |
Gains/(Losses) on re-measurement of defined benefit plans, tax income/(expense) | (21) | (261) | (201) |
Gains/(Losses) on re-measurement of defined benefit plans, net balance | (85) | 323 | 478 |
Gains/(Losses) on cash flow hedging instruments, pre-tax balance | 147 | (249) | 186 |
Gains/(Losses) on cash flow hedging instruments, tax income/(expense) | (10) | 69 | (48) |
Gains/(Losses) on cash flow hedging instruments, net balance | 137 | (180) | 138 |
Gains/(Losses) on available- for-sale financial assets, pre-tax balance | 14 | 15 | 11 |
Gains/(Losses) on available- for-sale financial assets, tax income/(expense) | 0 | 0 | 0 |
Gains/(Losses) on available- for-sale financial assets, net balance | 14 | 15 | 11 |
Exchange gains/(losses) on translating foreign operations, pre-tax balance | (1,942) | 458 | 1,002 |
Exchange gains/(losses) on translating foreign operations, tax income/(expense) | 0 | 0 | 0 |
Exchange gains/(losses) on translating foreign operations, net balance | (1,942) | 458 | 1,002 |
Share of Other comprehensive income/(loss) for equity method investees, pre-tax balance | (119) | (127) | (19) |
Share of Other comprehensive income/(loss) for equity method investees, tax income/(expense) | 0 | 0 | 0 |
Share of Other comprehensive income/(loss) for equity method investees, net balance | (119) | (127) | (19) |
Items relating to discontinued operations, pre-tax balance | 0 | 0 | 25 |
Items relating to discontinued operations, tax income/(expense) | 0 | 0 | (4) |
Items relating to discontinued operations, net balance | 0 | 0 | 21 |
Total Other comprehensive income | (1,964) | 681 | 1,884 |
Total Other comprehensive income, tax income/(expense) | (31) | (192) | (253) |
Total Other comprehensive (loss)/income, net of tax (B1)(B2)(B) | € (1,995) | € 489 | € 1,631 |
Earnings per share - additional
Earnings per share - additional information (Details) | Dec. 15, 2016shares |
Earnings per share [abstract] | |
Increase (decrease) in number of ordinary shares issued (in shares) | 238,846,375 |
Earnings per share - basic earn
Earnings per share - basic earnings per share (Details) - EUR (€) € / shares in Units, shares in Thousands, € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share [abstract] | |||
Net profit attributable to owners of the parent | € 3,491 | € 1,803 | € 334 |
Net profit from continuing operations attributable to owners of the parent | 3,491 | 1,803 | 83 |
Net profit from discontinued operations attributable to owners of the parent | € 0 | € 0 | € 251 |
Weighted average number of shares outstanding (in shares) | 1,535,988 | 1,513,019 | 1,510,555 |
Basic earnings per share (in EUR per share) | € 2.27 | € 1.19 | € 0.22 |
Basic earnings per share from continuing operations (in EUR per share) | 2.27 | 1.19 | 0.05 |
Basic earnings per share from discontinued operations (in EUR per share) | € 0 | € 0 | € 0.17 |
Earnings per share - diluted ea
Earnings per share - diluted earnings per share (Details) - EUR (€) € / shares in Units, shares in Thousands, € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share [abstract] | |||
Net profit attributable to owners of the parent | € 3,491 | € 1,803 | € 334 |
Weighted average number of shares outstanding (in shares) | 1,535,988 | 1,513,019 | 1,510,555 |
Number of shares deployable for share-based compensation (in shares) | 20,318 | 13,357 | 3,452 |
Weighted average number of shares outstanding for diluted earnings per share (in shares) | 1,556,306 | 1,526,376 | 1,514,007 |
Diluted earnings per share (in EUR per share) | € 2.24 | € 1.18 | € 0.22 |
Net profit from continuing operations attributable to owners of the parent | € 3,491 | € 1,803 | € 83 |
Diluted earnings per share from continuing operations (in EUR per share) | € 2.24 | € 1.18 | € 0.05 |
Net profit from discontinued operations attributable to owners of the parent | € 0 | € 0 | € 251 |
Diluted earnings per share from discontinued operations (in EUR per share) | € 0 | € 0 | € 0.17 |
Segment reporting - selected fi
Segment reporting - selected financial information by segment (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2017EUR (€)segment | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | |
Disclosure of operating segments [line items] | |||
Number of reportable regional operating segments | segment | 4 | ||
Revenue | € (110,934) | € (111,018) | € (110,595) |
Profit from continuing operations | 3,510 | 1,814 | 93 |
Tax expense | 2,651 | 1,292 | 166 |
Net financial expenses | 1,469 | 2,016 | 2,366 |
Adjustments: | |||
Reversal of a Brazilian indirect tax liability | (895) | ||
Impairment expense | 229 | 225 | 118 |
Recall campaigns - airbag inflators | 102 | 414 | |
Restructuring costs/(reversal) | 95 | 88 | 53 |
Costs for recall - contested with supplier | 132 | ||
Resolution of certain Components legal matters | 43 | ||
Deconsolidation of Venezuela | 42 | ||
NAFTA capacity realignment | (38) | 156 | 834 |
Tianjin (China) port explosions insurance recoveries | (68) | (55) | 142 |
Currency devaluation | 19 | 163 | |
Change in estimate for future recall campaign costs | 761 | ||
NHTSA Consent Order and amendment | 144 | ||
Gains on disposal of investments | (76) | (13) | 0 |
Other | (10) | (32) | (46) |
Adjusted Earnings Before Interest and Tax | 7,054 | 6,056 | 4,794 |
Share of the profit of equity method investees | 409 | 313 | 130 |
Inventory write-down | 659 | 637 | 653 |
Gains (losses) on net monetary position | (19) | (80) | |
Effect of exchange rate changes on cash and cash equivalents | (1,296) | 228 | 681 |
NAFTA | |||
Disclosure of operating segments [line items] | |||
Revenue | (66,047) | (69,054) | (69,991) |
Adjustments: | |||
Recall campaigns - airbag inflators | 29 | ||
LATAM | |||
Disclosure of operating segments [line items] | |||
Revenue | (7,989) | (6,155) | (6,237) |
Adjustments: | |||
Impairment expense | 56 | ||
Recall campaigns - airbag inflators | 73 | ||
APAC | |||
Disclosure of operating segments [line items] | |||
Revenue | (3,218) | (3,638) | (4,860) |
EMEA | |||
Disclosure of operating segments [line items] | |||
Revenue | (22,560) | (21,712) | (20,046) |
Adjustments: | |||
Impairment expense | 142 | ||
Maserati | |||
Disclosure of operating segments [line items] | |||
Revenue | (4,037) | (3,469) | (2,398) |
Components | |||
Disclosure of operating segments [line items] | |||
Revenue | (6,792) | (6,629) | (6,675) |
Other activities | |||
Disclosure of operating segments [line items] | |||
Revenue | (291) | (361) | (388) |
Operating segments | NAFTA | |||
Disclosure of operating segments [line items] | |||
Revenue | (66,094) | (69,094) | (69,992) |
Adjustments: | |||
Reversal of a Brazilian indirect tax liability | 0 | ||
Impairment expense | 0 | 0 | 0 |
Recall campaigns - airbag inflators | 29 | 414 | |
Restructuring costs/(reversal) | (1) | (10) | (11) |
Costs for recall - contested with supplier | 132 | ||
Resolution of certain Components legal matters | 0 | ||
Deconsolidation of Venezuela | 0 | ||
NAFTA capacity realignment | (38) | 156 | 834 |
Tianjin (China) port explosions insurance recoveries | 0 | 0 | 0 |
Currency devaluation | 0 | 0 | |
Change in estimate for future recall campaign costs | 761 | ||
NHTSA Consent Order and amendment | 144 | ||
Gains on disposal of investments | 0 | 0 | |
Other | (1) | (25) | (97) |
Adjusted Earnings Before Interest and Tax | 5,227 | 5,133 | 4,450 |
Share of the profit of equity method investees | 0 | 2 | 3 |
Asset impairment | 422 | ||
Supplemental unemployment benefits | 236 | ||
Write off of capitalized development expenditures | 176 | ||
Operating segments | LATAM | |||
Disclosure of operating segments [line items] | |||
Revenue | (8,004) | (6,197) | (6,431) |
Adjustments: | |||
Reversal of a Brazilian indirect tax liability | 0 | ||
Impairment expense | 77 | 52 | 16 |
Recall campaigns - airbag inflators | 73 | 0 | |
Restructuring costs/(reversal) | 75 | 68 | 40 |
Costs for recall - contested with supplier | 0 | ||
Resolution of certain Components legal matters | 0 | ||
Deconsolidation of Venezuela | 42 | ||
NAFTA capacity realignment | 0 | 0 | 0 |
Tianjin (China) port explosions insurance recoveries | 0 | 0 | 0 |
Currency devaluation | 19 | 163 | |
Change in estimate for future recall campaign costs | 0 | ||
NHTSA Consent Order and amendment | 0 | ||
Gains on disposal of investments | 0 | 0 | |
Other | 0 | 3 | 0 |
Adjusted Earnings Before Interest and Tax | 151 | 5 | (87) |
Share of the profit of equity method investees | 0 | 0 | 0 |
Operating segments | LATAM | Argentine Peso (ARS) | |||
Adjustments: | |||
Effect of exchange rate changes on cash and cash equivalents | 83 | ||
Operating segments | APAC | |||
Disclosure of operating segments [line items] | |||
Revenue | (3,250) | (3,662) | (4,885) |
Adjustments: | |||
Reversal of a Brazilian indirect tax liability | 0 | ||
Impairment expense | 0 | 109 | 22 |
Recall campaigns - airbag inflators | 0 | 0 | |
Restructuring costs/(reversal) | 0 | 0 | 0 |
Costs for recall - contested with supplier | 0 | ||
Resolution of certain Components legal matters | 0 | ||
Deconsolidation of Venezuela | 0 | ||
NAFTA capacity realignment | 0 | 0 | 0 |
Tianjin (China) port explosions insurance recoveries | (68) | (55) | 142 |
Currency devaluation | 0 | 0 | |
Change in estimate for future recall campaign costs | 0 | ||
NHTSA Consent Order and amendment | 0 | ||
Gains on disposal of investments | 0 | 0 | |
Other | 1 | (10) | 41 |
Adjusted Earnings Before Interest and Tax | 172 | 105 | 52 |
Share of the profit of equity method investees | 75 | 30 | (78) |
Inventory write-down | 53 | ||
Inventory, incremental incentives | 89 | ||
Operating segments | EMEA | |||
Disclosure of operating segments [line items] | |||
Revenue | (22,700) | (21,860) | (20,350) |
Adjustments: | |||
Reversal of a Brazilian indirect tax liability | 0 | ||
Impairment expense | 142 | 7 | 46 |
Recall campaigns - airbag inflators | 0 | 0 | |
Restructuring costs/(reversal) | 0 | 5 | 0 |
Costs for recall - contested with supplier | 0 | ||
Resolution of certain Components legal matters | 0 | ||
Deconsolidation of Venezuela | 0 | ||
NAFTA capacity realignment | 0 | 0 | 0 |
Tianjin (China) port explosions insurance recoveries | 0 | 0 | 0 |
Currency devaluation | 0 | 0 | |
Change in estimate for future recall campaign costs | 0 | ||
NHTSA Consent Order and amendment | 0 | ||
Gains on disposal of investments | 0 | 0 | |
Other | 0 | 0 | 1 |
Adjusted Earnings Before Interest and Tax | 735 | 540 | 213 |
Share of the profit of equity method investees | 306 | 272 | 219 |
Operating segments | Maserati | |||
Disclosure of operating segments [line items] | |||
Revenue | (4,058) | (3,479) | (2,411) |
Adjustments: | |||
Reversal of a Brazilian indirect tax liability | 0 | ||
Impairment expense | 0 | 0 | 3 |
Recall campaigns - airbag inflators | 0 | 0 | |
Restructuring costs/(reversal) | 0 | 0 | 0 |
Costs for recall - contested with supplier | 0 | ||
Resolution of certain Components legal matters | 0 | ||
Deconsolidation of Venezuela | 0 | ||
NAFTA capacity realignment | 0 | 0 | 0 |
Tianjin (China) port explosions insurance recoveries | 0 | 0 | 0 |
Currency devaluation | 0 | 0 | |
Change in estimate for future recall campaign costs | 0 | ||
NHTSA Consent Order and amendment | 0 | ||
Gains on disposal of investments | 0 | 0 | |
Other | 0 | 0 | 0 |
Adjusted Earnings Before Interest and Tax | 560 | 339 | 105 |
Share of the profit of equity method investees | 0 | 0 | 0 |
Operating segments | Components | |||
Disclosure of operating segments [line items] | |||
Revenue | (10,115) | (9,659) | (9,770) |
Adjustments: | |||
Reversal of a Brazilian indirect tax liability | 0 | ||
Impairment expense | 10 | 49 | 20 |
Recall campaigns - airbag inflators | 0 | 0 | |
Restructuring costs/(reversal) | 20 | 25 | 23 |
Costs for recall - contested with supplier | 0 | ||
Resolution of certain Components legal matters | 43 | ||
Deconsolidation of Venezuela | 0 | ||
NAFTA capacity realignment | 0 | 0 | 0 |
Tianjin (China) port explosions insurance recoveries | 0 | 0 | 0 |
Currency devaluation | 0 | 0 | |
Change in estimate for future recall campaign costs | 0 | ||
NHTSA Consent Order and amendment | 0 | ||
Gains on disposal of investments | (27) | (8) | |
Other | (11) | 0 | 8 |
Adjusted Earnings Before Interest and Tax | 536 | 445 | 395 |
Share of the profit of equity method investees | 14 | 6 | (2) |
Other Activities | Other activities | |||
Disclosure of operating segments [line items] | |||
Revenue | (727) | (779) | (844) |
Adjustments: | |||
Reversal of a Brazilian indirect tax liability | 0 | ||
Impairment expense | 0 | 8 | 0 |
Recall campaigns - airbag inflators | 0 | 0 | |
Restructuring costs/(reversal) | 0 | 0 | 2 |
Costs for recall - contested with supplier | 0 | ||
Resolution of certain Components legal matters | 0 | ||
Deconsolidation of Venezuela | 0 | ||
NAFTA capacity realignment | 0 | 0 | 0 |
Tianjin (China) port explosions insurance recoveries | 0 | 0 | 0 |
Currency devaluation | 0 | 0 | |
Change in estimate for future recall campaign costs | 0 | ||
NHTSA Consent Order and amendment | 0 | ||
Gains on disposal of investments | 0 | (5) | |
Other | 0 | 0 | (1) |
Adjusted Earnings Before Interest and Tax | (189) | (244) | (150) |
Share of the profit of equity method investees | 13 | 2 | (12) |
Unallocated items & eliminations | |||
Disclosure of operating segments [line items] | |||
Revenue | 4,014 | 3,712 | 4,088 |
Adjustments: | |||
Reversal of a Brazilian indirect tax liability | 0 | ||
Impairment expense | 0 | 0 | 11 |
Recall campaigns - airbag inflators | 0 | 0 | |
Restructuring costs/(reversal) | 1 | 0 | (1) |
Costs for recall - contested with supplier | 0 | ||
Resolution of certain Components legal matters | 0 | ||
Deconsolidation of Venezuela | 0 | ||
NAFTA capacity realignment | 0 | 0 | 0 |
Tianjin (China) port explosions insurance recoveries | 0 | 0 | 0 |
Currency devaluation | 0 | 0 | |
Change in estimate for future recall campaign costs | 0 | ||
NHTSA Consent Order and amendment | 0 | ||
Gains on disposal of investments | (49) | 0 | |
Other | 1 | 0 | 2 |
Adjusted Earnings Before Interest and Tax | (138) | (267) | (184) |
Share of the profit of equity method investees | 1 | 1 | 0 |
Elimination of intersegment amounts | NAFTA | |||
Disclosure of operating segments [line items] | |||
Revenue | (47) | (40) | (1) |
Elimination of intersegment amounts | LATAM | |||
Disclosure of operating segments [line items] | |||
Revenue | (15) | (42) | (194) |
Elimination of intersegment amounts | APAC | |||
Disclosure of operating segments [line items] | |||
Revenue | (32) | (24) | (25) |
Elimination of intersegment amounts | EMEA | |||
Disclosure of operating segments [line items] | |||
Revenue | (140) | (148) | (304) |
Elimination of intersegment amounts | Maserati | |||
Disclosure of operating segments [line items] | |||
Revenue | (21) | (10) | (13) |
Elimination of intersegment amounts | Components | |||
Disclosure of operating segments [line items] | |||
Revenue | (3,323) | (3,030) | (3,095) |
Elimination of intersegment amounts | Other activities | |||
Disclosure of operating segments [line items] | |||
Revenue | € (436) | € (418) | € (456) |
Segment reporting - selected173
Segment reporting - selected financial information by geographic region (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | € 56,020 | € 59,060 |
North America | ||
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | 34,099 | 35,833 |
Italy | ||
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | 12,458 | 12,558 |
Brazil | ||
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | 5,137 | 6,310 |
Poland | ||
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | 1,151 | 1,117 |
Serbia | ||
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | 639 | 660 |
Other countries | ||
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | € 2,536 | € 2,582 |
Explanatory notes to the con174
Explanatory notes to the consolidated statements of cash flows - additional information (Details) | Dec. 15, 2016EUR (€) | Dec. 15, 2016USD ($) | Mar. 15, 2016EUR (€) | Mar. 15, 2016USD ($) | Nov. 30, 2017EUR (€) | Nov. 30, 2017CHF (SFr) | Jun. 30, 2017EUR (€) | Nov. 30, 2016EUR (€) | Nov. 30, 2016CHF (SFr) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2017CHF (SFr) | Dec. 02, 2016EUR (€) | Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) |
Disclosure of other provisions [line items] | ||||||||||||||||||
Other non-cash items | € (199,000,000) | € 111,000,000 | € 812,000,000 | |||||||||||||||
Investments accounted for using equity method, revaluation | 406,000,000 | |||||||||||||||||
Impairment loss | 229,000,000 | 225,000,000 | 118,000,000 | |||||||||||||||
Impairment loss | 713,000,000 | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (19,000,000) | (80,000,000) | ||||||||||||||||
Adjustments for decrease (increase) in inventories | (1,666,000,000) | (471,000,000) | (958,000,000) | |||||||||||||||
Increase in trade payables | 1,086,000,000 | 776,000,000 | 1,571,000,000 | |||||||||||||||
Change in provisions | 555,000,000 | 1,519,000,000 | 3,206,000,000 | |||||||||||||||
Warranty and recall expense, recall of airbag inflators | 102,000,000 | 414,000,000 | ||||||||||||||||
Adjustments for deferred tax expense | 1,057,000,000 | 389,000,000 | (279,000,000) | |||||||||||||||
Net change in other receivables and payables | 327,000,000 | 295,000,000 | (580,000,000) | |||||||||||||||
Costs associated with recall campaign being contested with supplier | 132,000,000 | |||||||||||||||||
Extinguishment of debt principal amount | $ | $ 850,000,000 | |||||||||||||||||
Issuance of notes | 0 | 1,250,000,000 | 2,840,000,000 | |||||||||||||||
Proceeds of other long-term debt | 833,000,000 | 1,342,000,000 | 3,061,000,000 | |||||||||||||||
Proceeds from changes in ownership interests in subsidiaries that do not result in loss of control | 0 | 0 | 866,000,000 | |||||||||||||||
Interest paid | 1,190,000,000 | 1,676,000,000 | 2,087,000,000 | |||||||||||||||
Interest received | 299,000,000 | 370,000,000 | 469,000,000 | |||||||||||||||
Income taxes paid (refund) | 533,000,000 | 622,000,000 | € 664,000,000 | |||||||||||||||
Other long-term debt | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Repayments of borrowings | 889,000,000 | 4,618,000,000 | $ 4,412,000,000 | |||||||||||||||
FCA US Tranche B Term loan due 2017 | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Repayments of borrowings | € 1,159,000,000 | $ 1,288,000,000 | 1,721,000,000 | $ 1,826,000,000 | ||||||||||||||
Medium Term Note Due June 12, 2017 | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Extinguishment of debt principal amount | € 1,000,000,000 | |||||||||||||||||
Face amount | 1,000,000,000 | |||||||||||||||||
Medium Term Note Due November 22, 2017 | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Extinguishment of debt principal amount | € 385,000,000 | SFr 450,000,000 | ||||||||||||||||
Face amount | 385,000,000 | SFr 450,000,000 | ||||||||||||||||
FCA Trance B Term Loans | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Repayments of borrowings | € 1,800,000,000 | $ 2,000,000,000 | ||||||||||||||||
Mandatory Convertible Securities | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Repayments of borrowings | € 213,000,000 | $ 226,000,000 | ||||||||||||||||
Face amount | € 2,293,000,000 | $ 2,875,000,000 | ||||||||||||||||
Other long-term debt matured | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Repayments of borrowings | 2,605,000,000 | |||||||||||||||||
Note one issued under MTN Programme | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Repayments of borrowings | 2,000,000,000 | |||||||||||||||||
Medium Term Note Due November 23, 2016 | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Extinguishment of debt principal amount | € 373,000,000 | SFr 400,000,000 | ||||||||||||||||
European Investment Bank Maturing, 250 Million Facility | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Face amount | € 250,000,000 | |||||||||||||||||
Two notes issued under MTN Programme | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Repayments of borrowings | $ | 7,241,000,000 | |||||||||||||||||
Ferrari bridge loan and term loan | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Face amount | $ | $ 2,000,000,000 | |||||||||||||||||
Warranty provision, recall of airbag inflators | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Warranty and recall expense, recall of airbag inflators | 414,000,000 | |||||||||||||||||
Warranty provision, contested with supplier | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Warranty and recall expense, recall of airbag inflators | € 132,000,000 | |||||||||||||||||
NAFTA | ||||||||||||||||||
Disclosure of other provisions [line items] | ||||||||||||||||||
Warranty and recall expense, recall of airbag inflators | € 29,000,000 |
Explanatory notes to the con175
Explanatory notes to the consolidated statements of cash flows - financing activities (Details) € in Millions | 12 Months Ended |
Dec. 31, 2017EUR (€) | |
Changes in liabilities arising from financing activities [abstract] | |
Total Debt at January 1, 2017 | € 24,048 |
Derivative (assets)/liabilities and collateral at January 1, 2017 | 150 |
Total Liabilities from financing activities at January 1, 2017 | 24,198 |
Cash flows | (4,470) |
Foreign exchange effects | (1,311) |
Fair value changes | (286) |
Changes in scope of consolidation | (83) |
Other changes | (283) |
Total Liabilities from financing activities at December 31, 2017 | 17,765 |
Derivative (assets)/liabilities and collateral at December 31, 2017 | (206) |
Total Debt at December 31, 2017 | € 17,971 |
Qualitative and quantitative176
Qualitative and quantitative information on financial risk (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of credit risk exposure [line items] | ||
Receivables from financing activities | € 3,140 | € 2,578 |
Trade and other receivables | 8,553 | 7,854 |
Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Receivables from financing activities | 3,140 | 2,578 |
Trade and other receivables | 5,413 | 5,276 |
Credit risk | Current | ||
Disclosure of credit risk exposure [line items] | ||
Receivables from financing activities | 46 | 34 |
Trade and other receivables | 271 | 228 |
Credit risk | Later Than One Month | ||
Disclosure of credit risk exposure [line items] | ||
Receivables from financing activities | 21 | 19 |
Trade and other receivables | 233 | 228 |
Credit risk | Expected credit losses individually assessed | ||
Disclosure of credit risk exposure [line items] | ||
Receivables from financing activities | 5 | 4 |
Trade and other receivables | € 15 | 9 |
Currency risk | ||
Disclosure of credit risk exposure [line items] | ||
Reasonably possible change in risk variable percent | 10.00% | |
Potential loss from 10 percent change in exchange rates | € 1,010 | 1,453 |
Currency risk | Fixed interest rate | ||
Disclosure of credit risk exposure [line items] | ||
Reasonably possible change in risk variable percent | 10.00% | |
Currency risk | Floating interest rate | ||
Disclosure of credit risk exposure [line items] | ||
Reasonably possible change in risk variable percent | 10.00% | |
Interest rate risk | Fixed interest rate | ||
Disclosure of credit risk exposure [line items] | ||
Potential loss from 10 percent change in market interest rate | € 71 | 56 |
Interest rate risk | Floating interest rate | ||
Disclosure of credit risk exposure [line items] | ||
Potential loss from 10 percent change in exchange rates | € 27 | 30 |
Commodity price risk | ||
Disclosure of credit risk exposure [line items] | ||
Reasonably possible change in risk variable percent | 10.00% | |
Potential loss from 10 percent change in exchange rates | € 51 | € 35 |
Subsequent events Subsequent Ev
Subsequent events Subsequent Event (Details) employee in Thousands | Jan. 11, 2018EUR (€)employee | Jan. 11, 2018USD ($)employee | Jan. 31, 2018 | Dec. 15, 2016 |
Disclosure of non-adjusting events after reporting period [line items] | ||||
Convertible securities conversion ratio | 0.083077 | |||
Bonus amount per employee | € 1,670 | $ 2,000 | ||
Number of employees eligible for bonus | 60 | 60 | ||
Aggregate bonus amount | € 109,000,000 | $ 130,000,000 | ||
LTIP restricted stock units | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Convertible securities conversion ratio | 1.003733 |