Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document And Entity information [Abstract] | |
Entity Registrant Name | Fiat Chrysler Automobiles N.V. |
Entity Central Index Key | 0001605484 |
Current Fiscal Year End Date | --12-31 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1,567,519,274 |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | |||
Net revenues | € 108,187 | € 110,412 | € 105,730 |
Cost of revenues | 93,164 | 95,011 | 89,710 |
Selling, general and other costs | 6,455 | 7,318 | 7,177 |
Research and development costs | 3,612 | 3,051 | 2,903 |
Result from investments: | 209 | 235 | 399 |
Share of the profit of equity method investees | 208 | 240 | 400 |
Other income from investments | 1 | (5) | (1) |
Reversal of a Brazilian indirect tax liability | 0 | 0 | (895) |
Gains on disposal of investments | 15 | 0 | 76 |
Restructuring costs | 154 | 103 | 86 |
Net financial expenses | 1,005 | 1,056 | 1,345 |
Profit before taxes | 4,021 | 4,108 | 5,879 |
Tax expense | 1,321 | 778 | 2,588 |
Net profit from continuing operations | 2,700 | 3,330 | 3,291 |
Profit from discontinued operations, net of tax | 3,930 | 302 | 219 |
Net profit | 6,630 | 3,632 | 3,510 |
Net profit attributable to: | |||
Owners of the parent | 6,622 | 3,608 | 3,491 |
Non-controlling interests | 8 | 24 | 19 |
Net profit from continuing operations attributable to: | |||
Net profit from continuing operations attributable to owners of the parent | 2,694 | 3,323 | 3,281 |
Non-controlling interests | € 6 | € 7 | € 10 |
Earnings per share [abstract] | |||
Basic earnings per share (in EUR per share) | € 4.23 | € 2.33 | € 2.27 |
Diluted earnings per share (in EUR per share) | 4.22 | 2.30 | 2.24 |
Earnings per share for Net profit from continuing operations: | |||
Basic earnings per share from continuing operations (in EUR per share) | 1.72 | 2.15 | 2.14 |
Diluted earnings per share (in EUR per share) | € 1.71 | € 2.12 | € 2.11 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
Net profit | € 6,630 | € 3,632 | € 3,510 |
Items that will not be reclassified to the Consolidated Income Statement in subsequent periods: | |||
(Losses)/gains on remeasurement of defined benefit plans | (63) | 317 | (72) |
Share of (losses)/gains on remeasurement of defined benefit plans for equity method investees | (5) | 0 | 2 |
Other comprehensive income, before tax, financial assets measured at fair value through other comprehensive income | 6 | (4) | 14 |
Related tax impact | 7 | (76) | (18) |
Items relating to discontinued operations, net of tax | (9) | 2 | 5 |
Total items that will not be reclassified to the Consolidated Income Statement in subsequent periods (B1) | (64) | 239 | (69) |
Items that may be reclassified to the Consolidated Income Statements in subsequent periods: | |||
(Losses)/gains on cash flow hedging instruments | (191) | (9) | 129 |
Exchange gains/(losses) on translating foreign operations | 268 | 126 | (1,982) |
Share of Other comprehensive (loss) for equity method investees | (15) | (103) | (121) |
Related tax impact | 50 | (6) | (12) |
Items relating to discontinued operations, net of tax | 9 | (91) | 60 |
Total items that may be reclassified to the Consolidated Income Statement in subsequent periods (B2) | 121 | (83) | (1,926) |
Total Other comprehensive income/(loss), net of tax (B1)(B2)(B) | 57 | 156 | (1,995) |
Total Comprehensive income (A)(B) | 6,687 | 3,788 | 1,515 |
Total Comprehensive income attributable to: | |||
Owners of the parent | 6,676 | 3,763 | 1,491 |
Non-controlling interests | 11 | 25 | 24 |
Total Comprehensive income (A)(B) | 6,687 | 3,788 | 1,515 |
Total Comprehensive income attributable to owners of the parent: | |||
Continuing operations | 2,749 | 3,558 | 1,212 |
Discontinued operations | 3,927 | 205 | 279 |
Owners of the parent | € 6,676 | € 3,763 | € 1,491 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Goodwill and intangible assets with indefinite useful lives | € 14,257 | € 13,970 |
Other intangible assets | 12,447 | 11,749 |
Property, plant and equipment | 28,608 | 26,307 |
Investments accounted for using the equity method | 2,009 | 2,002 |
Other financial assets | 340 | 362 |
Deferred tax assets | 1,689 | 1,814 |
Other receivables | 2,376 | 1,484 |
Tax receivables | 94 | 71 |
Prepaid expenses and other assets | 535 | 266 |
Other non-current assets | 757 | 556 |
Total Non-current assets | 63,112 | 58,581 |
Inventories | 9,722 | 10,694 |
Assets sold with a buy-back commitment | 1,626 | 1,707 |
Trade and other receivables | 6,628 | 7,188 |
Tax receivables | 372 | 419 |
Prepaid expenses and other assets | 524 | 418 |
Other financial assets | 670 | 615 |
Cash and cash equivalents | 15,014 | 12,450 |
Assets held for sale | 376 | 4,801 |
Total Current assets | 34,932 | 38,292 |
Total Assets | 98,044 | 96,873 |
Equity | ||
Equity attributable to owners of the parent | 28,537 | 24,702 |
Non-controlling interests | 138 | 201 |
Total Equity | 28,675 | 24,903 |
Liabilities | ||
Long-term debt | 8,025 | 8,667 |
Employee benefits liabilities | 8,507 | 7,875 |
Provisions | 5,027 | 5,413 |
Other financial liabilities | 124 | 3 |
Deferred tax liabilities | 1,628 | 937 |
Tax liabilities | 278 | 149 |
Other liabilities | 2,426 | 2,452 |
Total Non-current liabilities | 26,015 | 25,496 |
Trade payables | 21,616 | 19,229 |
Short-term debt and current portion of long-term debt | 4,876 | 5,861 |
Employee benefit liabilities | 544 | 595 |
Provisions | 8,978 | 10,394 |
Other financial liabilities | 194 | 204 |
Tax liabilities | 122 | 203 |
Other liabilities | 6,788 | 7,057 |
Liabilities held for sale | 236 | 2,931 |
Total Current liabilities | 43,354 | 46,474 |
Total Equity and liabilities | € 98,044 | € 96,873 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net profit from continuing operations | € 2,700 | € 3,330 | € 3,291 |
Amortization and depreciation | 5,445 | 5,507 | 5,474 |
Net losses on disposal of tangible and intangible assets | 19 | 1 | 16 |
Net gains on disposal of investments | (15) | 0 | (76) |
Other non-cash items | 1,541 | 129 | (197) |
Dividends received | 156 | 75 | 102 |
Change in provisions | (1,744) | 842 | 464 |
Change in deferred taxes | 864 | 457 | 1,075 |
Change due to assets sold with buy-back commitments and GDP vehicles | (65) | 158 | (11) |
Change in inventories | 1,017 | 1,399 | (1,596) |
Change in trade receivables | 100 | 19 | (157) |
Change in trade payables | 2,020 | (1,240) | 937 |
Change in other liabilities, payables and receivables | (1,268) | (1,213) | 358 |
Cash flows (used in)/from operating activities - discontinued operations | (308) | 484 | 705 |
Total | 10,462 | 9,948 | 10,385 |
Cash flows used in investing activities: | |||
Investments in property, plant and equipment and intangible assets | (8,385) | (5,392) | (8,105) |
Investments in joint ventures, associates and unconsolidated subsidiaries | (2) | (3) | (9) |
Proceeds from the sale of tangible and intangible assets | 53 | 47 | 54 |
Net change in receivables from financing activities | 336 | (676) | (836) |
Change in securities | (235) | (75) | 174 |
Other changes | 55 | (7) | (4) |
Net cash proceeds from disposal of discontinued operations | 5,348 | 0 | 0 |
Cash flows used in investing activities - discontinued operations | (155) | (632) | (570) |
Total | (2,985) | (6,738) | (9,296) |
Cash flows used in financing activities: | |||
Repayment of notes | (1,480) | (1,850) | (2,235) |
Proceeds of other long-term debt | 329 | 935 | 811 |
Repayment of other long-term debt | (1,163) | (2,852) | (3,421) |
Net change in short-term debt and other financial assets/liabilities | (782) | 1,062 | 561 |
Distributions paid | (3,056) | (1) | (1) |
Other changes | 0 | 11 | (2) |
Cash flows from/(used in) financing activities - discontinued operations | 325 | (90) | (186) |
Total | (5,827) | (2,785) | (4,473) |
Translation exchange differences | 212 | 106 | (1,296) |
Total change in Cash and cash equivalents | 1,862 | 531 | (4,680) |
Cash and cash equivalents at beginning of the period | 12,450 | 12,638 | 17,318 |
Add: Cash and cash equivalents classified as part of disposal group held for sale | 719 | 0 | 0 |
Total change in Cash and cash equivalents | 1,862 | 531 | (4,680) |
Less: Cash and cash equivalents at end of the period - included within Assets held for sale | 17 | 719 | 0 |
Cash and cash equivalents at end of the period | € 15,014 | € 12,450 | € 12,638 |
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 | Financial Assets measured at FVOCI | Remeasure-ment of defined benefit plans | Cumulative share of OCI of equity method investees | Non-controlling interests |
Equity, beginning balance at Dec. 31, 2016 | € 19,353 | € 19 | € 17,312 | € (63) | € 2,912 | € (11) | € (768) | € (233) | € 185 |
Capital increase | 3 | 3 | |||||||
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 | ||
Increase (decrease) through disposal of subsidiary, equity | (87) | (64) | 5 | (28) | |||||
Other changes | 89 | 67 | 37 | (15) | |||||
Equity, ending balance (Previously stated) at Dec. 31, 2017 | 20,987 | 19 | 20,921 | 68 | 970 | 3 | (810) | (352) | 168 |
Equity, ending balance (Increase (decrease) due to changes in accounting policy) at Dec. 31, 2017 | 21 | 21 | |||||||
Equity, ending balance at Dec. 31, 2017 | 21,008 | 19 | 20,942 | 68 | 970 | 3 | (810) | (352) | 168 |
Capital increase | 11 | 11 | |||||||
Distributions | (1) | (1) | |||||||
Share-based compensation | 82 | 82 | |||||||
Net profit | 3,632 | 3,608 | 24 | ||||||
Other comprehensive income/(loss) | 156 | (22) | 41 | (4) | 243 | (103) | 1 | ||
Other changes | 15 | 18 | (1) | (2) | |||||
Equity, ending balance (Previously stated) at Dec. 31, 2018 | 24,903 | 19 | 24,650 | 45 | 1,011 | (1) | (567) | (455) | 201 |
Equity, ending balance at Dec. 31, 2018 | 24,903 | 19 | 24,650 | 45 | 1,011 | (1) | (567) | (455) | 201 |
Equity, beginning balance (Previously stated) at Dec. 31, 2018 | 24,903 | 19 | 24,650 | 45 | 1,011 | (1) | (567) | (455) | 201 |
Equity, beginning balance at Dec. 31, 2018 | 24,903 | 19 | 24,650 | 45 | 1,011 | (1) | (567) | (455) | 201 |
Distributions | (3,085) | (3,056) | (29) | ||||||
Share-based compensation | 115 | 1 | 114 | ||||||
Net profit | 6,630 | 6,622 | 8 | ||||||
Other comprehensive income/(loss) | 57 | (138) | 270 | 6 | (64) | (20) | 3 | ||
Increase (decrease) through disposal of subsidiary, equity | 44 | (109) | (6) | 97 | 109 | (47) | |||
Other changes | 11 | 24 | (15) | 2 | |||||
Equity, ending balance at Dec. 31, 2019 | € 28,675 | € 20 | € 28,245 | € (114) | € 1,378 | € 5 | € (522) | € (475) | € 138 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity | € 28,675 | € 24,903 |
Reclassification of gains/losses from other comprehensive income to inventories | 15 | 1 |
Share capital | ||
Equity | 20 | 19 |
Other reserves | ||
Equity | 28,245 | 24,650 |
Cash flow hedge reserve | ||
Equity | (114) | 45 |
Currency translation differences | ||
Equity | 1,378 | 1,011 |
Financial Assets measured at FVOCI | ||
Equity | 5 | (1) |
Remeasure-ment of defined benefit plans | ||
Equity | (522) | (567) |
Cumulative share of OCI of equity method investees | ||
Equity | (475) | (455) |
Non-controlling interests | ||
Equity | € 138 | € 201 |
Principal activities
Principal activities | 12 Months Ended |
Dec. 31, 2019 | |
General Information About Financial Statements [Abstract] | |
Principal Activities | On January 29, 2014, the Board of Directors of Fiat S.p.A. 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 S.p.A. into its 100 percent owned direct subsidiary Fiat Investments N.V. (the “2014 Merger”) became effective. The 2014 Merger, which took the form of a reverse merger, resulted in Fiat Investments N.V. being the surviving entity and it 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 2014 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 2014 Merger. The Group and its subsidiaries, of which the most significant is FCA US LLC (“FCA US”, formerly known as Chrysler Group LLC), together with its subsidiaries, are engaged in the design, engineering, manufacturing, distribution and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products and production systems. In addition, the Group is also involved in certain other activities, including (mainly captive) services, which represent an insignificant portion of the Group's business. Refer to Note 3, Scope of consolidation for information on the presentation of Magneti Marelli as a discontinued operation. FCA has filed a list of subsidiaries and associated companies, prepared in accordance with Sections 379 and 414, Book 2, Dutch Civil Code, at the Dutch trade register of Amsterdam. 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 (“U.S.”). |
Basis of presentation
Basis of presentation | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Disclosure of significant accounting policies | 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 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 Equity attributable to the owners of the parent. Subsidiaries are deconsolidated from the date on 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 or significant influence is obtained. On acquisition, any excess of the investment over the 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, 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 arising 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 type of joint arrangement whereby the parties that have joint control 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 an 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, if earlier, when the asset or disposal group meets the criteria to be classified as held for sale. When the asset or disposal group is classified as a discontinued operation, the comparative information is reclassified within the Consolidated Income Statement and the Consolidated Statement of Cash Flows as if the asset or disposal group had been discontinued from the start of the earliest comparative period presented. In addition, when an asset or disposal group is classified as held for sale, depreciation and amortization cease. The classification, presentation and measurement requirements of IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations outlined above 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 used in their respective primary economic environments. 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 as 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 arising 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 in preparing the Consolidated Statement of Cash Flows to translate the cash flows of foreign subsidiaries. The principal exchange rates used to translate other currencies into Euro were as follows: 2019 2018 2017 Average At December 31, Average At December 31, Average At December 31, U.S. Dollar (U.S.$) 1.119 1.123 1.181 1.145 1.130 1.199 Brazilian Real (BRL) 4.413 4.516 4.308 4.444 3.605 3.973 Chinese Renminbi (CNY) 7.735 7.821 7.808 7.875 7.629 7.804 Canadian Dollar (CAD) 1.485 1.460 1.529 1.561 1.465 1.504 Mexican Peso (MXN) 21.557 21.220 22.705 22.492 21.329 23.661 Polish Zloty (PLN) 4.298 4.257 4.261 4.301 4.257 4.177 Argentine Peso (ARS) (1) 67.258 67.258 43.074 43.074 18.683 22.595 Pound Sterling (GBP) 0.878 0.851 0.885 0.895 0.877 0.887 Swiss Franc (CHF) 1.112 1.085 1.155 1.127 1.112 1.170 ______________________________________________________________________________________________________________________________ (1) From July 1, 2018, Argentina’s economy was considered to be hyperinflationary. Transactions after July 1, 2018 for entities with the Argentinian Peso as the functional currency were translated using the spot rate at the end of the period. Intangible assets Goodwill Goodwill represents the excess of the fair value of consideration paid in a business combination over the fair value of net tangible and identifiable intangible assets acquired. 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, projected 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 when the related asset is available for use, generally from the beginning of production, over the expected life cycle of the models (generally 5-6 years ) or powertrains (generally 10-12 years ) developed. 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 asset 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 expensed to the Consolidated Income Statement. Refer to New standards and amendments effective January 1, 2019 below for additional information on the adoption of IFRS 16 - Leases (“IFRS 16”), including the impact on finance and operating leases which had been previously recognized in accordance with IAS 17 - Leases (“IAS 17”) . Depreciation During the years ended December 31, 2019 , 2018 and 2017 , assets depreciated on a straight-line basis over their estimated useful lives used the following depreciation rates: Depreciation rates Buildings 3% - 10% Plant, machinery and equipment 3% - 33% Other assets 5% - 33% 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 in the year ended December 31, 2019 and 2018 was € 213 million and € 155 million , respectively. Impairment of long-lived assets Annually, or more frequently if facts or circumstances indicate otherwise, 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 primarily include trade receivables, receivables from financing activities, investments in other companies, derivative financial instruments, cash and cash equivalents, and debt securities that represent temporary investments of available funds and do not satisfy the requirements for being classified as cash equivalents. Financial liabilities primarily consist of debt, derivative financial instruments, trade payables and other liabilities. Receivables from dealer financing activities are typically generated by sales of vehicles and are generally managed under dealer network financing programs as a component of the portfolio of the Group's 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 according to market and payment terms, which range from two to twelve months. Classification and measurement The classification of a financial asset is dependent on the Group’s business model for managing such financial assets and their contractual cash flows. The Group considers whether the contractual cash flows represent solely payments of principal and interest that are consistent with a basic lending arrangement. Where the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, the related financial assets are classified and measured at fair value through profit or loss (“FVPL”). Financial asset cash flow business model Initial measurement (1) Measurement category (3) Solely to collect the contractual cash flows (Held to Collect) Fair Value including transaction costs Amortized Cost (2) Collect both the contractual cash flows and generate cash flows arising from the sale of assets (Held to Collect and Sell) Fair Value including transaction costs Fair value through other comprehensive income (“FVOCI”) Generate cash flows primarily from the sale of assets (Held to Sell) Fair Value FVPL ______________________________________________________________________________________________________________________________ (1) A trade receivable without a significant financing component, as defined by IFRS 15, is initially measured at the transaction price. (2) 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. (3) On initial recognition, the Group may irrevocably designate a financial asset at FVPL that otherwise meets the requirements to be measured at amortized cost or at FVOCI if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Factors considered by the Group in determining the business model for a group of financial assets include: • past experience on how the cash flows for these assets were collected; • the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and future sales activity expectations; • how the asset’s performance is evaluated and reported to key management personnel; and • how risks are assessed and managed and how management is compensated. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. Cash and cash equivalents include cash at banks, units in money market funds and other money market securities, commercial paper and certificate of deposits 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 that can generally be liquidated on demand and are measured at FVPL. Cash at banks and Other cash equivalents are measured at amortized cost. Investments in other companies are measured at fair value. Equity investments for which there is no quoted market price in an active market and there is insufficient financial information in order to determine fair value may be measured at cost as an estimate of fair value, as permitted by IFRS 9 - Financial Instruments (“IFRS 9”). The Group may irrevocably elect to present subsequent changes in the investment’s fair value in Other comprehensive income (“OCI”) upon the initial recognition of an equity investment that is not held to sell. This election is made on an investment-by-investment basis. Generally, any dividends from these investments are recognized in Other income from investments within Result from investments when the Group’s right to receive payment is established. Other net gains and losses are recognized in OCI and will not be reclassified to the Consolidated Income Statement in subsequent periods. Impairment losses (and the reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value in OCI. Impairment of financial assets The Group’s credit risk differs in relation to the type of activity. In particular, receivables from financing activities, such as dealer and retail financing 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, whereas trade receivables arising from the sale of vehicles and spare parts, are mostly exposed to the direct risk of counterparty default. These risks are mitigated by different kinds of securities received and the fact that collection exposure is spread across a large number of counterparties. The IFRS 9 impairment requirements are based on a forward-looking expected credit loss (“ECL”) model. ECL is a probability-weighted estimate of the present value of cash shortfalls. The calculation of the amount of ECL is based on the risk of default by the counterparty, which is determined by taking into account the information available at the end of each reporting period as to the counterparty’s solvency, the fair value of any guarantees and the Group’s historical experience. The Group considers a financial asset to be in default when: (i) the borrower is unlikely to pay its obligations in full and without consideration of compensating guarantees or collateral (if any exist); or (ii) the financial asset is more than 90 days past due. The Group applies two impairment models for financial assets as set out in IFRS 9: the simplified approach and the general approach. The table below indicates the impairment model used for each of our financial asset categories. Impairment losses on financial assets are recognized in the Consolidated Income Statement within the corresponding line items, based on the classification of the counterparty. Financial asset IFRS 9 impairment model Trade receivables Simplified approach Receivables from financing activities General approach Other receivables General approach In order to test for impairment, individually significant receivables and receivables for which collectability is at risk are assessed individually, while all other receivables are grouped into homogeneous risk categories based on shared risk characteristics such as instrument type, industry or geographical location of the counterparty. The simplified approach for determining the lifetime ECL allowance is performed in two steps: • All trade receivables that are in default, as defined above, are individually assessed for impairment; and • A general reserve is recognized for all other trade receivables (including those not past due) based on historical loss rates. The Group applies the general approach as determined by IFRS 9 by assessing at each reporting date whether there has been a significant increase in credit risk on the financial instrument since initial recognition. The Group considers receivables to have experienced a significant increase in credit risk when certain quantitative or qualitative indicators have been met or the borrower is more than 30 days past due on its contractual payments. The “three-stages” for determining and measuring the impairment based on changes in credit quality since initial recognition are summarized below: Stage Description Time period for measurement of ECL Stage 1 A financial instrument that is not credit-impaired on initial recognition 12-month ECL Stage 2 A financial instrument with a significant increase in credit risk since initial recognition Lifetime ECL Stage 3 A financial instrument that is credit-impaired or has defaulted Lifetime ECL Considering forward-looking economic information, ECL is determined by projecting the probability of default, exposure at default and loss given default for each future contractual period and for each individual exposure or collective portfolio. The discount rate used in the ECL calculation is the stated effective interest rate or an approximation thereof. Each reporting period, the assumptions underlying the ECL calculation are reviewed and updated as necessary. Since adoption, there have been no significant changes in estimation techniques or significant assumptions that led to material changes in the ECL allowance. The gross carrying amount of a financial asset is written-off to the extent that there is no realistic prospect of recovery. This is generally the case when the Group determines that a debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities. 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). In accordance with IFRS 9 , derivative financial instruments are recognized on the basis of the settlement date and, upon initial recognition, are measured at fair value less (in case a financial asset is not measured at FVPL) transaction costs that are directly attributable to the acquisition of the financial assets. Subsequent to initial recognition, all derivative financial instruments are measured at fair value. Furthermore, derivative financial instruments qualify for hedge accounting when (i) there is formal designation and documentation of the hedging relationship and the Group’s risk management objective and strategy for undertaking the hedge at inception of the hedge and (ii) the hedge is expected to be effective. 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 attributable to a particular risk that 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). When the hedged forecasted transaction results in the recognition of a non-financial asset, the gains and losses previously deferred in Other comprehensive income/(loss) are reclassified and included in the initial measurement of the cost of the non-financial asset. The effective portion of any gain or loss is recognized in 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 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. Hedge effectiveness is determined at the inception of the hedge relationship and through periodic prospective effectiveness assessments to ensure the hedge relationships meet the effectiveness requirements (including the existence of an economic relationship between the hedged item and hedging instrument). The Group enters into hedge relationships where the critical terms of the hedging instrument match closely or exactly with the terms of the hedged item, and so a qualitative assessment of effectiveness is performed. In the event there was a hedge relationship where the critical terms of the hedged item do not match closely or perfectly with the critical terms of the hedging instrument, the Group would perform a quantitative assessment to assess effectiveness. Ineffectiveness is measured by comparing the cumulative changes in fair value of the hedging instrument and cumulative change in fair value of the hedged item arising from the designated risk. The primary potential sources of hedge ineffectiveness are mismatches in timing or the critical terms of the hedged item and the hedging instrument. The hedge ratio is the relationship between the quantity of the derivative and the hedged item. The Group’s derivatives have the same underlying quantity as the hedged items, therefore the hedge ratio is expected to be one for one. 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 fair value measurements. 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 requiring first loss cover (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), whereby the transferor |
Scope of consolidation
Scope of consolidation | 12 Months Ended |
Dec. 31, 2019 | |
Interests In Other Entities [Abstract] | |
Scope of consolidation | s forth a list of the principal subsidiaries of FCA, which are grouped by our reportable segments, as well as our holding and other companies: Name Country Percentage North America 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 Alfa Romeo (Shanghai) Automobiles Sales Co. Ltd. People’s Republic of China 100.00 EMEA FCA Italy S.p.A. 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.S. 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 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 SENC (1) Luxembourg 100.00 ______________________________________________________________________________________________________________________________ (1) Previously named Fiat Chrysler Finance Europe S.A. Magneti Marelli Discontinued Operations and Disposal On April 5, 2018, the FCA Board of Directors announced that it had authorized FCA management to develop and implement a plan to separate the Magneti Marelli business from the Group and to distribute shares of a new holding company for Magneti Marelli to the shareholders of FCA. At September 30, 2018, the separation within the next twelve months became highly probable and Magneti Marelli operations met the criteria to be classified as a disposal group held for sale. It also met the criteria to be classified as a discontinued operation pursuant to IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations. On October, 22, 2018, FCA announced that it has entered into a definitive agreement to sell its Magneti Marelli business to CK Holdings Co., Ltd. On May 2, 2019, FCA completed the sale of Magneti Marelli for consideration of €5,772 million (including €5,774 million cash consideration, contingent consideration receivable with a fair value of €70 million , contingent consideration payable by FCA of €16 million , costs relating to the transaction of €16 million and a preliminary purchase price adjustment of approximately €40 million ) subject to customary final confirmation of purchase price adjustments by the buyer. The following table shows the calculation of the gain on sale on the Magneti Marelli transaction: At May 2, 2019 (€ million) Intangible assets € 788 Property, plant and equipment 2,146 Financial receivables 10 Cash and cash equivalents 426 Other assets 2,055 Debt (782 ) Trade and other payables (1,942 ) Other liabilities (791 ) Net assets sold € 1,910 Consideration 5,772 Reclassification of amounts in OCI relating to Magneti Marelli (1) (91 ) Gain on sale attributable to FCA € 3,771 ______________________________________________________________________________________________________________________________ (1) Excluding amounts related to remeasurement of defined benefit plans. Refer to the Consolidated Statement of Cash flows for the year ended December 31, 2019 , for the aggregate cash flows arising from the sale of Magneti Marelli, which consists of the cash consideration received net of the cash and cash equivalents transferred in the sale, as disclosed in the table above. The presentation of the Magneti Marelli business is as follows: • The operating results of Magneti Marelli have been excluded from the Group’s continuing operations and are presented net of taxes as a single line item within the Consolidated Income Statement up to the completion of the sale transaction on May 2, 2019 and for the years ended December 31, 2018 and 2017. In order to present the financial effects of a discontinued operation, revenues and expenses arising from intercompany transactions were eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operation. However, no profit or loss is recognized for intercompany transactions within the Consolidated Income Statement. • The assets and liabilities of Magneti Marelli have been classified as Assets held for sale and Liabilities held for sale within the Consolidated Statement of Financial Position at December 31, 2018. • Cash flows arising from Magneti Marelli up to the completion of the sale transaction on May 2, 2019, have been presented separately as discontinued cash flows from operating, investing and financing activities within the Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 and 2017. These cash flows represent those arising from transactions with third parties. • In accordance with the IFRS 5, depreciation and amortization on the assets of Magneti Marelli ceased as at September 30, 2018. The impact of ceasing depreciation of the property, plant and equipment and amortization of the intangible assets of Magneti Marelli was €134 million for the period up to the completion of the sale transaction on May 2, 2019 ( €96 million for the year ended December 31, 2018 ), net of tax of €27 million ( €20 million for the year ended December 31, 2018 ). • The operating results from discontinued operations includes €5 million of interest on lease liabilities for the year ended December 31, 2019 . • Total expenses recognized in the operating results from discontinued operations relating to short-term leases and low-value assets leases amounted to €6 million and €2 million , respectively, for the period up to the completion of the sale transaction on May 2, 2019. The following table represents the assets and liabilities of the Magneti Marelli business which were classified as held for sale at December 31, 2018: At December 31, 2018 (1) Total Current Non-current (€ million) Assets classified as held for sale Intangible assets € 717 € — € 717 Property, plant and equipment 1,793 — 1,793 Deferred tax assets 127 — 127 Inventories 766 766 — Trade and other receivables 545 492 53 Cash and cash equivalents 719 719 — Other assets 129 27 102 Total Assets held for sale (2) € 4,796 Liabilities classified as held for sale Debt € 177 € 64 € 113 Employee benefits liabilities 300 55 245 Provisions 210 100 110 Deferred tax liabilities 99 — 99 Trade and other payables 1,788 1,788 — Other liabilities 357 305 52 Total Liabilities held for sale € 2,931 ______________________________________________________________________________________________________________________________ (1) Amounts presented are not representative of the financial position of Magneti Marelli on a stand-alone basis; amounts are net of transactions between Magneti Marelli and other companies of the Group. (2) Assets held for sale as presented on the face of the Consolidated Statement of Financial Position at December 31, 2018, includes €5 million not related to the Magneti Marelli business. The following table summarizes the operating results of Magneti Marelli up to the completion of the sale transaction on May 2, 2019, that were excluded from the Consolidated Income Statement for the years ended December 31, 2019, 2018 and 2017: Years ended December 31, 2019 (1) 2018 (1) 2017 (1) (€ million) Net revenues € 1,657 € 4,998 € 5,204 Expenses 1,447 4,493 4,798 Net financial expenses 5 85 124 Profit before taxes from discontinued operations 205 420 282 Tax expense 44 118 63 Profit after taxes from discontinued operations 161 302 219 Add: Gain on sale attributable to FCA 3,771 — — Less: Tax expense on gain on sale 2 — — Profit from discontinued operations, net of taxes € 3,930 € 302 € 219 ______________________________________________________________________________________________________________________________ (1) Amounts presented are not representative of the income statement of Magneti Marelli on a stand-alone basis; amounts are net of transactions between Magneti Marelli and other companies of the Group. We have elected to present both the tax on the gain after the participation exemption of €55 million and the corresponding utilization of tax losses as a net nil impact within Profit from discontinued operations, net of tax. Plastic Components and Automotive Modules Business Held for Sale During the year ended December 31, 2019, certain entities within our plastic components and automotive modules business met the criteria to be presented as held for sale. On January 31, 2020, the Group entered into agreements for the sale of several of the groups of assets within our plastic components and automotive modules businesses for a total sale price of approximately €47.5 million . Teksid Cast Iron Components Business Held for Sale During December 2019, FCA announced that it had entered into an agreement with Tupy S.A. for the sale of FCA’s global cast iron automotive components business, which is operated through FCA’s subsidiary Teksid S.p.A. The proposed sale includes Teksid’s cast iron production facilities in Brazil, Mexico, Poland and Portugal, in addition to Teksid’s interest in a joint venture in China and as a result the related assets of €325 million and liabilities of €212 million met the criteria to be presented as held for sale. The agreement values the business at €210 million enterprise value. Consideration, subject to customary purchase price adjustments, will be paid at closing expected in the second half of 2020. The proposed transaction is subject to customary closing conditions, including the receipt of antitrust approvals. Teksid’s aluminum business is not included in the transaction and will remain part of the Group. Acquisition of the Assets of Vari-Form Inc. During the year ended December 31, 2019, FCA N.V., through subsidiaries in Canada, Mexico and Italy, entered into asset purchase agreements for the assets of Vari-Form , a vehicle component manufacturer. The most significant element of these transactions was in Canada for an amount of U.S. $62 million ( €55 million ), the majority of which was allocated to goodwill, recognized within the North America segment. Itedi S.p.A Held for Sale On June 27, 2017, the 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, was completed. The merger transaction 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. 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. 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 U.S. Dollar obligations, as well as the deteriorating economic conditions, which constrained the ability to maintain normal production in Venezuela, we concluded we were no longer able to exert control over our Venezuelan 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”), resulting 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 has been accounted for at cost in subsequent periods. The following significant transactions with non-controlling interests occurred: 2019 • There were no significant transactions with non-controlling interests. 2018 • There were no significant transactions with non-controlling interests. 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 . |
Net revenues
Net revenues | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Net revenues | et revenues were as follows: Years ended December 31, 2019 2018 2017 (€ million) Revenues from: Sales of goods € 103,019 € 104,990 € 102,029 Services provided 3,961 3,871 2,182 Contract revenues 672 958 935 Lease installments from assets sold with a buy-back commitment 362 394 421 Interest income of financial services activities 173 199 163 Total Net revenues € 108,187 € 110,412 € 105,730 Net revenues by geographical area were as follows: Years ended December 31, 2019 2018 2017 (€ million) Net revenues in: North America (1) € 73,848 € 73,405 € 67,500 Brazil 7,423 6,452 5,982 Italy 7,259 8,815 8,407 France 3,021 3,204 3,121 Germany 2,519 2,755 2,804 China 1,753 1,974 3,562 Spain 1,200 1,397 1,306 United Kingdom 995 1,136 1,267 Argentina 861 1,384 1,791 Japan 839 718 735 Turkey 739 896 1,244 Australia 320 418 496 Other countries 7,410 7,858 7,515 Total Net revenues € 108,187 € 110,412 € 105,730 ______________________________________________________________________________________________________________________________ (1) Refers to the geographical area and not our North America reporting segment. Net revenues attributed by segment for the years ended December 31, 2019 and 2018 were as follows: Mass-Market Vehicles 2019 North America LATAM APAC EMEA Maserati Other activities Total (€ million) Revenues from: Sales of goods € 70,809 € 8,059 € 2,674 € 19,275 € 1,563 € 639 € 103,019 Services provided 2,388 297 27 950 29 270 3,961 Construction contract revenues — — — — — 672 672 Revenues from goods and services 73,197 8,356 2,701 20,225 1,592 1,581 107,652 Lease installments from assets sold with a buy-back commitment 140 — — 222 — — 362 Interest income from financial services activities — 93 61 19 — — 173 Total Net revenues € 73,337 € 8,449 € 2,762 € 20,466 € 1,592 € 1,581 € 108,187 Mass-Market Vehicles 2018 North America LATAM APAC EMEA Maserati Other activities Total (€ million) Revenues from: Sales of goods € 69,908 € 7,756 € 2,560 € 21,516 € 2,606 € 644 € 104,990 Services provided 2,287 270 21 945 39 309 3,871 Construction contract revenues — — — — — 958 958 Revenues from goods and services 72,195 8,026 2,581 22,461 2,645 1,911 109,819 Lease installments from assets sold with a buy-back commitment 158 — — 235 — 1 394 Interest income from financial services activities — 116 65 18 — — 199 Total Net revenues € 72,353 € 8,142 € 2,646 € 22,714 € 2,645 € 1,912 € 110,412 The Group recognized a net decrease in Net revenues of €4 million during the year ended December 31, 2019 (net decrease in Net revenues of €14 million during the year ended December 31, 2018) from performance obligations satisfied in the prior year. This was primarily due to changes in the estimated cost of sales incentive programs occurring after the Group had transferred control of vehicles to the dealers. |
Research and development costs
Research and development costs | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Research and development costs | 5. Research and development costs Research and development costs were as follows: Years ended December 31, 2019 2018 2017 (€ million) Research and development expenditures expensed € 1,305 € 1,448 € 1,506 Amortization of capitalized development expenditures 1,358 1,456 1,294 Impairment and write-off of capitalized development expenditures 949 147 103 Total Research and development costs € 3,612 € 3,051 € 2,903 Refer to Note 2, Basis of Preparation - Use of estimates - Recoverability of non-current assets with definite useful lives for detail on the impairment and write-off of capitalized development expenditures during the years ended December 31, 2019 , 2018 and 2017 . Refer to Note 10 , Other intangible assets , for information on capitalized development expenditures. |
Net financial expenses
Net financial expenses | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Net financial expenses | The following table summarizes the Group’s financial income and expenses, included within Net financial expenses: Years ended December 31, 2019 2018 2017 (€ million) Interest income and other financial income € 261 € 249 € 220 Financial expenses: Interest expense and other financial expenses: 784 929 1,084 Interest expense on notes 370 422 568 Interest expense on borrowings from bank 181 259 350 Other interest cost and financial expenses 233 248 166 Interest on lease liabilities (1) 88 — — Write-down of financial assets 21 6 21 Losses on disposal of securities 2 6 5 Net interest expense on employee benefits provisions 298 276 304 Total Financial expenses 1,193 1,217 1,414 Net expenses from derivative financial instruments and exchange rate differences 73 88 151 Total Financial expenses and Net expenses from derivative financial instruments and exchange rate differences 1,266 1,305 1,565 Net Financial expenses € 1,005 € 1,056 € 1,345 ______________________________________________________________________________________________________________________________ (1) Interest on lease liabilities previously recognized in accordance with IAS 17 during the years ended December 31, 2018 and 2017, was not material for reclassification. |
Tax expense
Tax expense | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Tax expense | The following table summarizes Tax expense: Years ended December 31, 2019 2018 2017 (€ million) Current tax expense € 435 € 592 € 832 Deferred tax expense 872 520 1,776 Tax expense/(benefit) relating to prior periods 14 (334 ) (20 ) Total Tax expense € 1,321 € 778 € 2,588 The applicable tax rate used to determine 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 19.0 percent in 2019 ( 19.0 percent in 2018 and 19.25 percent in 2017 ) and income taxes recognized was as follows: Years ended December 31, 2019 2018 2017 (€ million) Theoretical income taxes € 766 € 781 € 1,126 Tax effect on: Recognition and utilization of previously unrecognized deferred tax assets (159 ) — (161 ) Permanent differences (411 ) (416 ) (397 ) Tax credits (112 ) (135 ) (23 ) Deferred tax assets not recognized and write-downs 976 633 1,053 Differences between foreign tax rates and the theoretical applicable tax rate and tax holidays 171 207 970 Taxes relating to prior years 14 (334 ) (20 ) Tax rate changes 9 — (22 ) Withholding tax 41 41 78 Other differences 20 (15 ) (8 ) Total Tax expense, excluding IRAP (1) 1,315 762 2,596 Effective tax rate 32.7 % 18.5 % 44.2 % IRAP (current and deferred) 6 16 (8 ) Total Tax expense € 1,321 € 778 € 2,588 ______________________________________________________________________________________________________________________________ (1) Local income tax due in Italy 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 33 percent in 2019 from 19 percent in 2018 was primarily related to (i) non-recurring benefit recognized for U.S. prior years’ tax positions finalized in 2018; and (ii) no corresponding tax benefit for primarily all of the impairment charges of €1,376 million recognized in relation to the rationalization of product portfolio plans (refer to Cost of Revenues above) due to partial recognition of deferred tax assets in Italy. 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, 2019 2018 (€ million) Deferred tax assets € 1,689 € 1,814 Deferred tax liabilities (1,628 ) (937 ) Total Net deferred tax assets € 61 € 877 The decrease in Net deferred tax assets at December 31, 2019 from December 31, 2018 was mainly due to a net decrease of €831 million consisting of an increase in deferred tax liabilities in North America related to provisions, acceleration of tax depreciation and amortization on capital expenditures, partially offset by utilization of U.S. tax credit carryforwards, and decrease of €179 million of the recognized deferred tax asset in Italy partially offset by the recognition of previously unrecognized deferred tax assets in the UK of €151 million . The significant components of Deferred tax assets and liabilities and their changes during the years ended December 31, 2019 and 2018 were as follows: At January 1, 2019 (1) Recognized in Consolidated Income Statement Recognized in Equity Transferred to Assets/(Liabilities) Held for Sale Translation At December 31, 2019 (€ million) Deferred tax assets arising on: Provisions € 4,127 € (470 ) € — € 10 € 6 € 3,673 Provision for employee benefits 1,487 (41 ) 1 1 22 1,470 Lease liabilities (1) 260 106 — (1 ) 4 369 Intangible assets 166 (15 ) — — — 151 Impairment of financial assets 155 (1 ) — — 12 166 Inventories 246 (56 ) — — (2 ) 188 Allowances for doubtful accounts 96 13 — — (4 ) 105 Other 685 (22 ) (4 ) 1 42 702 Total Deferred tax assets € 7,222 € (486 ) € (3 ) € 11 € 80 € 6,824 Deferred tax liabilities arising on: Accelerated depreciation € (2,296 ) € (33 ) € — € (1 ) € — € (2,330 ) Capitalized development assets (2,440 ) (129 ) — — (32 ) (2,601 ) Other Intangible assets and Intangible assets with indefinite useful lives (912 ) 36 — — (72 ) (948 ) Right-of-use assets (1) (260 ) (101 ) — — (4 ) (365 ) Provision for employee benefits (91 ) (9 ) 22 — 1 (77 ) Other (424 ) 156 38 — (17 ) (247 ) Total Deferred tax liabilities € (6,423 ) € (80 ) € 60 € (1 ) € (124 ) € (6,568 ) Deferred tax asset arising on tax loss carry-forwards € 4,963 € 106 € — € 12 € (220 ) € 4,861 Unrecognized deferred tax assets (4,885 ) (407 ) — (20 ) 256 (5,056 ) Total Net deferred tax assets € 877 € (867 ) € 57 € 2 € (8 ) € 61 ______________________________________________________________________________________________________________________________ (1) Net deferred tax assets at January 1, 2019 has been adjusted for the deferred tax impact arising from Right-of-use assets and Lease liabilities following the adoption of IFRS 16. Refer to Note 2. , Basis of preparation for additional information on the adoption of IFRS 16. At January 1, 2018 Recognized in Recognized in Equity Transferred to Assets/(Liabilities) Held for Sale Translation At December 31, 2018 (€ million) Deferred tax assets arising on: Provisions € 3,848 € 240 € — € (55 ) € 94 € 4,127 Provision for employee benefits 1,828 (280 ) (77 ) (31 ) 47 1,487 Intangible assets 192 (24 ) — (2 ) — 166 Impairment of financial assets 169 (1 ) — (13 ) — 155 Inventories 252 22 — (24 ) (4 ) 246 Allowances for doubtful accounts 122 (6 ) — (7 ) (13 ) 96 Other 387 48 4 (77 ) 323 685 Total Deferred tax assets € 6,798 € (1 ) € (73 ) € (209 ) € 447 € 6,962 Deferred tax liabilities arising on: Accelerated depreciation € (1,891 ) € (386 ) € — € 29 € (48 ) € (2,296 ) Capitalized development expenditures (2,116 ) (103 ) — 81 (302 ) (2,440 ) Other Intangible assets and Intangible assets with indefinite useful lives (849 ) (20 ) — 2 (45 ) (912 ) Provision for employee benefits (50 ) (2 ) (1 ) 3 (41 ) (91 ) Other (314 ) (103 ) 5 86 (98 ) (424 ) Total Deferred tax liabilities € (5,220 ) € (614 ) € 4 € 201 € (534 ) € (6,163 ) Deferred tax asset arising on tax loss carry-forwards € 4,718 € 708 € — € (328 ) € (135 ) € 4,963 Unrecognized deferred tax assets (4,680 ) (662 ) (12 ) 308 161 (4,885 ) Total Net deferred tax assets € 1,616 € (569 ) € (81 ) € (28 ) € (61 ) € 877 The Italian tax authorities commenced an audit of Fiat S.p.A in 2017 and on October 22, 2019, issued to the Company a final audit report related to the 2014 Merger. On December 23, 2019, this matter was settled with the Italian tax authorities. Under the terms of the settlement, the value of FCA North America, consisting primarily of the underlying value of Chrysler Group LLC at the time of the 2014 Merger, is increased by €2.5 billion which results in an additional taxable gain of €2.5 billion in 2014 for Italian tax purposes. The €2.5 billion Italian taxable gain is offset by €400 million (tax-effected €96 million ) of previously forfeited Italian tax loss carryforwards that could only be used to offset income arising from the 2014 Merger and of available, unrecognized Italian tax loss carryforwards of €2.1 billion (tax-effected €504 million ). As a result, there is no cash tax or tax expense impact to FCA as a result of the settlement and the unrecognized Italian tax loss carryforwards are reduced by €2.1 billion (tax-effected €504 million ). Refer below for additional information regarding the recognized and unrecognized Italian net deferred tax assets. As of December 31, 2019 , the Group had total Deferred tax assets on deductible temporary differences of €6,824 million ( €6,962 million at December 31, 2018 ), of which €1,113 million was not recognized ( €898 million at December 31, 2018 ). As of December 31, 2019 , the Group also had Deferred tax assets on tax loss carry-forwards of €4,861 million ( €4,963 million at December 31, 2018 ), of which €3,943 million was not recognized ( €3,987 million at December 31, 2018 ). As of December 31, 2019 , the Group had net recognized and unrecognized deferred tax assets of € 3,263 million (€ 3,370 million at December 31, 2018 ) in Italy primarily attributable to Italian tax loss carry-forwards that can be carried forward indefinitely. A deferred tax asset is recognized for Italian tax loss carry-forwards to the extent the realization of the related tax benefit is supported through achievement of the Group’s business plan. The Group continues to recognize Italian Net deferred tax assets of €705 million ( €884 million at December 31, 2018 ) as the Group considers it probable that we will have sufficient taxable income in the future that will allow realization of these net deferred tax assets. The utilization of Italian tax loss carry-forwards for which currently no deferred tax asset is recognized is subject to future sustained profitability, as well as, the achievement of taxable income in periods which are beyond the Group’s business plan and therefore this utilization is uncertain. As a result, €2,558 million of Net deferred tax assets in Italy were not recognized as of December 31, 2019 ( €2,486 million at December 31, 2018 ). As of December 31, 2019 , the Group had net recognized and unrecognized deferred tax assets of €1,888 million ( €1,532 million at December 31, 2018 ) in Brazil primarily attributable to Brazilian tax loss carry-forwards that can be carried forward indefinitely. A deferred tax asset is recognized for Brazilian tax loss carry-forwards to the extent the realization of the related tax benefit is supported through achievement of the Group’s business plan. The Group continues to recognize Brazilian Net deferred tax assets of €131 million ( €133 million at December 31, 2018 ) as the Group considers it probable that we will have sufficient taxable income in the future that will allow realization of these net deferred tax assets. The utilization of Brazilian tax loss carry-forwards for which currently no deferred tax asset is recognized is subject to future sustained profitability, as well as, the achievement of taxable income in periods which are beyond the Group’s business plan and therefore this utilization is uncertain. As a result, €1,757 million of Net deferred tax assets in Brazil, which include Brazil tax losses, were not recognized as of December 31, 2019 ( €1,399 million at December 31, 2018 ). As of December 31, 2019 , the Group had net recognized and unrecognized deferred tax assets of €151 million ( €162 million at December 31, 2018 ) in the UK primarily attributable to UK tax loss carry-forwards that can be carried forward indefinitely. A deferred tax asset is recognized for the UK tax loss carried forwards to the extent the realization of the related tax benefit is supported through generation of taxable income. The Group recognizes UK Net deferred tax assets of €151 million ( nil at December 31, 2018) as the Group considers it probable that we will have sufficient taxable income in the future that will allow realization of these net deferred tax assets. The realization of these deferred tax assets is sensitive to the assumptions and judgments used in the determination of the taxable income in the future, as well as, our ability to affect tax planning strategies, as necessary. In Brazil, the continued realization of our recognized deferred tax assets is dependent on our ability to generate taxable income in the future, particularly in the periods after certain tax benefits and the government incentives expire. The deferred tax assets in the UK may be impacted by future reorganizations or changes in tax residency. Certain jurisdictions within EMEA in which the Group operates may begin to generate profits or taxable income in the future. While we have not yet recognized all deferred tax assets in these jurisdictions, it is possible our assessment of realizability could change, resulting in the recognition of additional deferred tax assets in our Balance Sheet and the related income tax benefit in our Income Statement. Refer to Note 2, Basis of Preparation - Use of estimates - Recoverability of deferred tax assets for additional detail. 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, 2019 , 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, 2019 2020 2021 2022 2023 Beyond 2023 Unlimited/ (€ million) Temporary differences and tax losses relating to corporate taxation: Deductible temporary differences € 27,294 € 3,701 € 3,019 € 2,834 € 3,068 € 14,340 € 332 Taxable temporary differences (26,931 ) (2,623 ) (2,664 ) (2,689 ) (2,746 ) (13,054 ) (3,155 ) Tax losses 18,135 71 83 90 185 1,500 16,206 Amounts for which deferred tax assets were not recognized (18,089 ) (560 ) (107 ) (31 ) (597 ) (2,885 ) (13,909 ) Temporary differences and tax losses relating to corporate taxation € 409 € 589 € 331 € 204 € (90 ) € (99 ) € (526 ) Temporary differences and tax losses relating to local taxation (i.e. IRAP in Italy): Deductible temporary differences € 9,674 € 1,145 € 648 € 574 € 1,083 € 6,171 € 53 Taxable temporary differences (7,896 ) (724 ) (706 ) (706 ) (762 ) (4,895 ) (103 ) Tax losses 4,985 1 — 1 — 5 4,978 Amounts for which deferred tax assets (6,290 ) (410 ) (69 ) (10 ) (503 ) (638 ) (4,660 ) Temporary differences and tax losses relating to local taxation € 473 € 12 € (127 ) € (141 ) € (182 ) € 643 € 268 |
Other information by nature
Other information by nature | 12 Months Ended |
Dec. 31, 2019 | |
Additional information [abstract] | |
Other information by nature | Personnel costs for the continuing operations of the Group for the years ended December 31, 2019 , 2018 and 2017 amounted to € 11.4 billion , € 11.7 billion and € 11.7 billion , respectively, and included costs that were capitalized mainly in connection with product development activities. For the years ended December 31, 2019 , 2018 and 2017 , the continuing operations of the Group had an average number of employees of 198,772 , 203,122 and 197,040 , respectively. Amounts relating to IFRS 16 recognized in Profit before taxes Amounts recognized within Profit before taxes for the year ended December 31, 2019 were as follows: Year ended December 31, 2019 (€ million) Depreciation of right-of-use assets € 346 Interest expense on lease liabilities 88 Variable lease payments not included in the measurement of lease liabilities 3 Income from sub-leasing right-of-use assets (85 ) Expenses relating to short-term leases and to leases of low-value assets 186 Gains arising from sale and leaseback transactions (91 ) Total expense recognized in Net profit from continuing operations € 447 The impact of adoption of IFRS 16 on our Consolidated Income Statement for the year ended December 31, 2019 was immaterial. |
Goodwill and intangible assets
Goodwill and intangible assets with indefinite useful lives | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Goodwill and intangible assets with indefinite useful lives | Goodwill and intangible assets with indefinite useful lives at December 31, 2019 and 2018 are summarized below: Goodwill Gross amount Accumulated impairment losses Total Goodwill Brands Total Goodwill and intangible assets with indefinite useful lives (€ million) At January 1, 2018 € 10,850 € (454 ) € 10,396 € 2,994 € 13,390 Transfers to Assets held for sale (96 ) 33 (63 ) — (63 ) Translation differences and Other 500 1 501 142 643 At December 31, 2018 11,254 (420 ) 10,834 3,136 13,970 Additions 34 — 34 — 34 Transfers to Assets held for sale (11 ) — (11 ) — (11 ) Translation differences and Other 162 46 208 56 264 At December 31, 2019 € 11,439 € (374 ) € 11,065 € 3,192 € 14,257 Translation differences in 2019 and 2018 primarily related to foreign currency transaction of 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 North America segment. These rights are protected legally through registration with government agencies and through their 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 North America segment. Goodwill At December 31, 2019 , Goodwill included €11,008 million from the acquisition of FCA US ( €10,801 million at December 31, 2018 ) and €34 million from the acquisition of Vari-Form (refer to Note 3 , Scope of consolidation ). At December 31, 2018, € 63 million of goodwill was classified within Assets held for sale as a result of Magneti Marelli meeting the held for sale criteria (refer to 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, 2019 , 2018 and 2017 . Refer to Note 2, Basis of preparation - Use of estimates for discussion of the assumptions and judgments relating to goodwill impairment testing. The following table summarizes the allocation of Goodwill between FCA's reportable segments: At December 31, 2019 2018 (€ million) North America € 9,059 € 8,855 APAC 1,174 1,152 LATAM 563 552 EMEA 269 264 Other activities — 11 Total Goodwill € 11,065 € 10,834 10. Other intangible assets Capitalized development expenditures Patents, concessions, licenses and credits Other Total (€ million) Gross carrying amount at January 1, 2018 € 19,899 € 3,583 € 804 € 24,286 Additions 2,235 639 93 2,967 Divestitures (568 ) (224 ) (89 ) (881 ) Transfer to Assets held for sale (1,553 ) (132 ) (131 ) (1,816 ) Translation differences and other changes 215 133 (41 ) 307 At December 31, 2018 20,228 3,999 636 24,863 Additions 2,889 600 67 3,556 Divestitures (338 ) (127 ) (82 ) (547 ) Transfer to Assets held for sale — (3 ) (16 ) (19 ) Translation differences and other changes 147 103 (5 ) 245 At December 31, 2019 22,926 4,572 600 28,098 Accumulated amortization and impairment losses 10,202 2,029 513 12,744 Amortization 1,543 379 50 1,972 Impairment losses and asset write-offs 153 — — 153 Divestitures (553 ) (30 ) (89 ) (672 ) Transfer to Assets held for sale (973 ) (98 ) (91 ) (1,162 ) Translation differences and other changes 31 82 (34 ) 79 At December 31, 2018 10,403 2,362 349 13,114 Amortization 1,358 426 48 1,832 Impairment losses and asset write-offs 949 — 4 953 Divestitures (337 ) (2 ) (8 ) (347 ) Transfer to Assets held for sale — (3 ) (13 ) (16 ) Translation differences and other changes 46 72 (3 ) 115 At December 31, 2019 12,419 2,855 377 15,651 Carrying amount at December 31, 2018 € 9,825 € 1,637 € 287 € 11,749 Carrying amount at December 31, 2019 € 10,507 € 1,717 € 223 € 12,447 Capitalized development expenditures include both internal and external costs that are directly attributable to the internal product development process, 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 2019 , € 953 million of impairment losses and asset write-offs were recognized, including a total of €813 million of impairment losses and asset write-offs resulting from rationalization of product portfolio plans, primarily for Europe in the A-segment as well as for Alfa Romeo resulted in the recognition of asset impairment charges for certain platforms. In 2018 , a total of € 153 million impairment losses and asset write-offs were recognized. Refer to Note 2, Basis of Preparation - Use of estimates - Recoverability of non-current assets with definite useful lives for additional detail regarding the assumptions and judgments used when testing these assets for impairment. Translation differences primarily related to foreign currency translation of the U.S. Dollar to the Euro. Amortization of capitalized development expenditures is recognized within Research and development costs within the 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, 2019 and 2018 , the Group had contractual commitments for the purchase of intangible assets amounting to €1,419 million (refer to Note 25 , Guarantees granted, commitments and contingent liabilities for further information on the Group's contractual commitments for the purchase of regulatory emission credits) and €215 million , respectively. |
Other intangible assets
Other intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Other intangible assets | Goodwill and intangible assets with indefinite useful lives at December 31, 2019 and 2018 are summarized below: Goodwill Gross amount Accumulated impairment losses Total Goodwill Brands Total Goodwill and intangible assets with indefinite useful lives (€ million) At January 1, 2018 € 10,850 € (454 ) € 10,396 € 2,994 € 13,390 Transfers to Assets held for sale (96 ) 33 (63 ) — (63 ) Translation differences and Other 500 1 501 142 643 At December 31, 2018 11,254 (420 ) 10,834 3,136 13,970 Additions 34 — 34 — 34 Transfers to Assets held for sale (11 ) — (11 ) — (11 ) Translation differences and Other 162 46 208 56 264 At December 31, 2019 € 11,439 € (374 ) € 11,065 € 3,192 € 14,257 Translation differences in 2019 and 2018 primarily related to foreign currency transaction of 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 North America segment. These rights are protected legally through registration with government agencies and through their 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 North America segment. Goodwill At December 31, 2019 , Goodwill included €11,008 million from the acquisition of FCA US ( €10,801 million at December 31, 2018 ) and €34 million from the acquisition of Vari-Form (refer to Note 3 , Scope of consolidation ). At December 31, 2018, € 63 million of goodwill was classified within Assets held for sale as a result of Magneti Marelli meeting the held for sale criteria (refer to 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, 2019 , 2018 and 2017 . Refer to Note 2, Basis of preparation - Use of estimates for discussion of the assumptions and judgments relating to goodwill impairment testing. The following table summarizes the allocation of Goodwill between FCA's reportable segments: At December 31, 2019 2018 (€ million) North America € 9,059 € 8,855 APAC 1,174 1,152 LATAM 563 552 EMEA 269 264 Other activities — 11 Total Goodwill € 11,065 € 10,834 10. Other intangible assets Capitalized development expenditures Patents, concessions, licenses and credits Other Total (€ million) Gross carrying amount at January 1, 2018 € 19,899 € 3,583 € 804 € 24,286 Additions 2,235 639 93 2,967 Divestitures (568 ) (224 ) (89 ) (881 ) Transfer to Assets held for sale (1,553 ) (132 ) (131 ) (1,816 ) Translation differences and other changes 215 133 (41 ) 307 At December 31, 2018 20,228 3,999 636 24,863 Additions 2,889 600 67 3,556 Divestitures (338 ) (127 ) (82 ) (547 ) Transfer to Assets held for sale — (3 ) (16 ) (19 ) Translation differences and other changes 147 103 (5 ) 245 At December 31, 2019 22,926 4,572 600 28,098 Accumulated amortization and impairment losses 10,202 2,029 513 12,744 Amortization 1,543 379 50 1,972 Impairment losses and asset write-offs 153 — — 153 Divestitures (553 ) (30 ) (89 ) (672 ) Transfer to Assets held for sale (973 ) (98 ) (91 ) (1,162 ) Translation differences and other changes 31 82 (34 ) 79 At December 31, 2018 10,403 2,362 349 13,114 Amortization 1,358 426 48 1,832 Impairment losses and asset write-offs 949 — 4 953 Divestitures (337 ) (2 ) (8 ) (347 ) Transfer to Assets held for sale — (3 ) (13 ) (16 ) Translation differences and other changes 46 72 (3 ) 115 At December 31, 2019 12,419 2,855 377 15,651 Carrying amount at December 31, 2018 € 9,825 € 1,637 € 287 € 11,749 Carrying amount at December 31, 2019 € 10,507 € 1,717 € 223 € 12,447 Capitalized development expenditures include both internal and external costs that are directly attributable to the internal product development process, 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 2019 , € 953 million of impairment losses and asset write-offs were recognized, including a total of €813 million of impairment losses and asset write-offs resulting from rationalization of product portfolio plans, primarily for Europe in the A-segment as well as for Alfa Romeo resulted in the recognition of asset impairment charges for certain platforms. In 2018 , a total of € 153 million impairment losses and asset write-offs were recognized. Refer to Note 2, Basis of Preparation - Use of estimates - Recoverability of non-current assets with definite useful lives for additional detail regarding the assumptions and judgments used when testing these assets for impairment. Translation differences primarily related to foreign currency translation of the U.S. Dollar to the Euro. Amortization of capitalized development expenditures is recognized within Research and development costs within the 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, 2019 and 2018 , the Group had contractual commitments for the purchase of intangible assets amounting to €1,419 million (refer to Note 25 , Guarantees granted, commitments and contingent liabilities for further information on the Group's contractual commitments for the purchase of regulatory emission credits) and €215 million , respectively. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | For the year ended December 31, 2019 , the Group recognized a total of €636 million of impairment losses and asset write-offs, including a total of €563 million resulting from rationalization of product portfolio plans, primarily for Europe in the A-segment as well as for Alfa Romeo resulted in the recognition of asset impairment charges for certain platforms. Refer to Note 2, Basis of Preparation - Use of estimates - Recoverability of non-current assets with definite useful lives for additional detail regarding the assumptions and judgments used when testing these assets for impairment. For the year ended December 31, 2018 , the Group recognized a total of € 144 million of impairment losses and asset write-offs, primarily in EMEA, resulting from changes in product plans in connection with the 2018-2022 business plan. Refer to Note 2, Basis of Preparation - Use of estimates - Recoverability of non-current assets with definite useful lives for additional detail regarding the assumptions and judgments used when testing these assets for impairment. These impairment charges were recognized within Cost of revenues in the Consolidated Income Statement for the years ended December 31, 2019 , and 2018 . In 2019 , translation differences of €316 million primarily reflected the foreign currency transaction impacts of U.S. Dollar to the Euro, partially offset by the Brazilian Real. In 2018 , translation differences of €65 million primarily reflected the strengthening of the U.S Dollar against Euro partially offset by the weakness of the Brazilian Real. The carrying amounts of Property, plant and equipment of the Group (excluding the Right-of-Use assets described above) reported as pledged as security for debt and other commitments, primarily relating to our operations in Brazil, are summarized as follows: At December 31, 2019 2018 (€ million) Land and industrial buildings pledged as security for debt € 777 € 892 Plant and machinery pledged as security for debt and other commitments 855 1,241 Other assets pledged as security for debt and other commitments 5 81 Total Property, plant and equipment pledged as security for debt and other commitments € 1,637 € 2,214 At December 31, 2019 and 2018 , the Group had contractual commitments for the purchase of Property, plant and equipment amounting to €1,255 million and €539 million , respectively. |
Investments accounted for using
Investments accounted for using the equity method | 12 Months Ended |
Dec. 31, 2019 | |
Interests In Other Entities [Abstract] | |
Investments accounted for using the equity method | he following table summarizes Investments accounted for using the equity method: At December 31, 2019 2018 (€ million) Joint ventures € 1,871 € 1,866 Associates 94 96 Other 44 40 Total Investments accounted for using the equity method € 2,009 € 2,002 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, 2019 2018 2019 2018 Joint ventures Ownership percentage (€ million) FCA Bank S.p.A. 50.0% 50.0% € 1,501 € 1,360 Tofas-Turk Otomobil Fabrikasi A.S. 37.9% 37.9% 240 233 GAC Fiat Chrysler Automobiles Co. 50.0% 50.0% 107 216 Others 23 57 Total € 1,871 € 1,866 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. 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. On July 19, 2019, FCA and Crédit Agricole Consumer Finance agreed to extend the term until December 31, 2024. The agreement will be automatically renewed unless notice of non-renewal is provided no later than three years before end of the term. A notice of non-renewal would trigger certain put and call rights. The financial statements of FCA Bank as at and for the year ended December 31, 2019 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 2020 FCA Consolidated Financial Statements when available. The following tables include summarized financial information relating to FCA Bank: At June 30, 2019 At December 31, 2018 (€ million) Financial assets € 26,995 € 26,180 Of which: Cash and cash equivalents 767 363 Other assets 4,889 4,356 Financial liabilities 27,133 26,265 Other liabilities 1,643 1,393 Equity (100%) 3,108 2,878 Net assets attributable to owners of the parent 3,058 2,829 Carrying amount of interest in FCA Bank Group's share of net assets 1,529 1,415 Elimination of unrealized profits and other adjustments (28 ) (55 ) Carrying amount of interest in FCA Bank (1) € 1,501 € 1,360 ______________________________________________________________________________________________________________________________ (1) Amounts as at December 31, 2019 and 2018 respectively. Six months ended June 30 Years ended December 31, 2019 2018 2017 (€ million) Interest and similar income € 466 € 903 € 855 Interest and similar expenses (117 ) (242 ) (266 ) Income tax expense (75 ) (159 ) (139 ) Profit from continuing operations 238 388 383 Net profit 238 388 383 Net profit attributable to owners of the parent (A) 236 383 378 Other comprehensive income/(loss) attributable to owners of the parent (B) (8 ) (5 ) (8 ) Total Comprehensive income attributable to owners of the parent (A+B) € 228 € 378 € 370 Group’s share of net profit (1) € 229 € 192 € 189 ______________________________________________________________________________________________________________________________ (1) Amounts for the years ended December 31, 2019 , 2018 and 2017 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, 2019 , the fair value of the Group’s interest in Tofas was €764 million ( €531 million at December 31, 2018 ). 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 included 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, 2019 2018 2017 (€ million) Joint Ventures € 200 € 221 € 381 Associates (2 ) 6 9 Other 10 13 10 Total Share of the profit of equity method investees € 208 € 240 € 400 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, 2019 2018 2017 (€ million) Joint ventures: (Loss)/profit from continuing operations € (28 ) € 27 € 192 Net (loss)/profit (28 ) 27 192 Other comprehensive loss (19 ) (91 ) (105 ) Total Other comprehensive (loss)/income € (47 ) € (64 ) € 87 Associates: (Loss)/income from continuing operations € (2 ) € 6 € 9 Net (loss)/income (2 ) 6 9 Other comprehensive loss — (3 ) (3 ) Total Other comprehensive (loss)/income € (2 ) € 3 € 6 |
Other financial assets
Other financial assets | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of financial assets [abstract] | |
Other Financial assets | ther financial assets consisted of the following: At December 31, 2019 2018 Note Current Non-current Total Current Non-current Total (€ million) Derivative financial assets 16 € 93 € 5 € 98 € 283 € 14 € 297 Debt securities measured at fair value through profit or loss 23 233 — 233 230 — 230 Debt securities measured at amortized cost 297 2 299 61 2 63 Equity instruments measured at fair value through other comprehensive income 23 — 37 37 — 31 31 Equity instruments mandatorily designated at fair value through profit and loss 23 47 12 59 41 2 43 Financial receivables — 242 242 — 252 252 Collateral deposits (1) 23 — 42 42 — 61 61 Total Other financial assets € 670 € 340 € 1,010 € 615 € 362 € 977 ______________________________________________________________________________________________________________________________ (1) Collateral deposits are held in connection with derivative transactions and debt obligations. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Inventories | The amount of inventory write-downs recognized primarily within Cost of revenues during the years ended December 31, 2019 , 2018 and 2017 was €647 million , € 669 million and € 626 million , respectively. Additionally, during the year ended December 31, 2018, impairments of Inventory totaling €129 million were recognized in APAC in connection with the accelerated adoption of new emission standards in China and slower than expected sales. The Construction contracts, net asset/(liability) relates to the design and production of industrial automation systems and related products and is summarized as follows: At December 31, 2019 2018 (€ million) Aggregate amount of costs incurred and recognized profits (less recognized losses) to date € 826 € 954 Less: Progress billings 715 912 Construction contracts, net asset/(liability) 111 42 Construction contract assets 194 135 Less: Construction contract liabilities (Note 22) 83 93 Construction contracts, net asset/(liability) € 111 € 42 Changes in the Group's construction contracts, net asset/(liability) for the year ended December 31, 2019 , were as follows: At January 1, 2019 Advances received from customers Amounts recognized within revenue At December 31, 2019 (€ million) Construction contracts, net asset/(liability) € 42 € (603 ) € 672 € 111 The entire amount of Construction contracts, net asset/(liability) is expected to be recognized as revenue in the following 12 months. |
Trade, other receivables and ta
Trade, other receivables and tax receivables | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
Trade, other receivables and tax receivables | he following table summarizes Trade, other receivables and Tax receivables by due date: At December 31, 2019 2018 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 € 2,064 € — € — € — € 2,064 € 2,048 € — € — € — € 2,048 Receivables from financing activities 2,855 294 6 300 3,155 3,304 297 13 310 3,614 Other receivables 1,709 695 1,381 2,076 3,785 1,836 1,086 88 1,174 3,010 Total Trade and other receivables € 6,628 € 989 € 1,387 € 2,376 € 9,004 € 7,188 € 1,383 € 101 € 1,484 € 8,672 Tax receivables € 372 € 51 € 43 € 94 € 466 € 419 € 53 € 18 € 71 € 490 Trade receivables Trade receivables are shown net of an ECL allowance, which is calculated using the simplified approach. Changes in the allowance for trade receivables were as follows: At January 1, 2019 Provision Use and Transferred to Assets held for sale At December 31, 2019 (€ million) ECL allowance - Trade receivables € 247 € 32 € (42 ) € — € 237 Trade receivables of an immaterial amount were written off during the year ended December 31, 2019 , and are still subject to enforcement activities. The following table provides information about the exposure to credit risk and ECLs for trade receivables: At December 31, 2019 2018 Current and less than 90 days past due 90 days or more past due Total Current and less than 90 days past due 90 days or more past due Total (€ million) Gross amount € 1,989 € 293 € 2,282 € 1,920 € 310 € 2,230 ECL allowance (53 ) (184 ) (237 ) (65 ) (182 ) (247 ) Carrying amount € 1,936 € 109 € 2,045 € 1,855 € 128 € 1,983 In addition to the amounts above, a further €19 million at December 31, 2019 ( €65 million at December 31, 2018 ) of trade receivables were measured at FVPL. Refer to Note 23 , Fair value measurement . 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, 2019 2018 (€ million) Dealer financing € 2,317 € 2,654 Retail financing 613 601 Finance leases 3 3 Other 222 356 Total Receivables from financing activities € 3,155 € 3,614 Receivables from financing activities are shown net of an ECL allowance. Changes in the allowance for receivables from financing activities were as follows: At January 1, 2019 Provision Use and Transferred to Assets held for sale At December 31, 2019 (€ million) ECL allowance - Receivables from financing activities € 27 € 68 € (72 ) € — € 23 Receivables from financing activities of an immaterial amount were written off during the year ended December 31, 2019 , and are still subject to enforcement activities. The following table provides information about the exposure to credit risk and ECLs for receivables from financing activities: At December 31, 2019 2018 Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total (€ million) Gross amount € 2,369 € 194 € 35 € 2,598 € 2,465 € 168 € 35 € 2,668 ECL allowance (10 ) (2 ) (11 ) (23 ) (13 ) (2 ) (12 ) (27 ) Carrying amount € 2,359 € 192 € 24 € 2,575 € 2,452 € 166 € 23 € 2,641 In addition to the amounts above, a further €580 million at December 31, 2019 ( €973 million at December 31, 2018 ) of receivables from financing activities were measured at FVPL. Refer to Note 23 , Fair value measurement . Other receivables At December 31, 2019 , Other receivables primarily consisted of tax receivables for VAT and other indirect taxes of €2,866 million ( €2,149 million at December 31, 2018 ). As disclosed in Note 22 , Other liabilities and Tax liabilities , during 2017, the Brazilian Supreme Court ruled that state value added tax should be excluded from the basis for calculating a federal tax on revenue, a decision which was subsequently appealed. In March 2019, a final and definitive favorable decision was made in respect of the COFINS over ICMS element of the litigation, relating to amounts previously paid but not recovered for the period between May 2004 to December 2014. During 2019, total credits and the related receivable of €164 million were recognized, which were excluded from Adjusted EBIT (refer to Note 28 , Segment reporting ). Transfer of financial assets At December 31, 2019 , the Group had receivables due after that date amounting to €7,301 million ( €8,523 million at December 31, 2018 ) which had been transferred without recourse and which were derecognized in accordance with IFRS 9 – Financial Instruments . The transfers related to trade receivables and other receivables for €5,777 million ( €6,847 million at December 31, 2018 ) and receivables from financing activities for €1,524 million ( €1,676 million at December 31, 2018 ). These amounts included receivables of €4,686 million ( €5,517 million at December 31, 2018 ), mainly due from the sales network, transferred to FCA Bank, our jointly controlled financial services company. At December 31, 2019 and 2018 , the carrying amount of transferred financial assets not derecognized and the related liabilities were as follows: At December 31, 2019 2018 Trade receivables Receivables financing Total Trade receivables Receivables financing Total (€ million) Carrying amount of assets transferred and not derecognized € 11 € 140 € 151 € 30 € 427 € 457 Carrying amount of the related liabilities (Note 21) € 11 € 140 € 151 € 30 € 427 € 457 |
Derivative financial assets and
Derivative financial assets and liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Derivative financial assets and liabilities | e following table summarizes the fair value of the Group's derivative financial assets and liabilities: At December 31, 2019 2018 Positive fair Negative fair Positive fair Negative fair (€ million) Fair value hedges: Interest rate risk - interest rate swaps € — € — € — € — Total Fair value hedges — — — — Cash flow hedges: Currency risks - forward contracts, currency swaps and currency options 34 (81 ) 149 (75 ) Interest rate risk - interest rate swaps — (180 ) 22 (16 ) Interest rate and currency risk - combined interest rate and currency swaps — — 17 — Commodity price risk – commodity swaps and commodity options 21 (6 ) 41 (59 ) Total Cash flow hedges 55 (267 ) 229 (150 ) Net investment hedges: Currency risks - forward contracts, currency swaps and currency options — — — — Total Net investment hedges — — — — Derivatives for trading 43 (51 ) 68 (57 ) Total Fair value of derivative financial assets/(liabilities) € 98 € (318 ) € 297 € (207 ) Financial derivative assets/(liabilities) - current € 93 € (194 ) € 283 € (204 ) Financial derivative assets/(liabilities) - non-current € 5 € (124 ) € 14 € (3 ) The following table summarizes the outstanding notional amounts of the Group's derivative financial instruments by due date: At December 31, 2019 2018 Due within one year Due between one and Due beyond Total Due within one year Due between Due Total (€ million) Currency risk management € 11,259 € 30 € — € 11,289 € 12,782 € 75 € — € 12,857 Interest rate risk management 1,105 1,700 — 2,805 1,630 1,144 — 2,774 Interest rate and currency risk management 9 22 — 31 236 34 — 270 Commodity price risk management 523 27 — 550 919 28 — 947 Other derivative financial instruments — 14 — 14 — 14 — 14 Total Notional amount € 12,896 € 1,793 € — € 14,689 € 15,567 € 1,295 € — € 16,862 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 and the gains and losses arising from the respective hedged items are summarized as follows: Years ended December 31, 2019 2018 2017 (€ million) Currency risk Net gains/(losses) on qualifying hedges € — € — € 104 Fair value changes in hedged items — — (104 ) Interest rate risk Net (losses) on qualifying hedges — (2 ) (9 ) Fair value changes in hedged items — 2 10 Net gains/(losses) € — € — € 1 At December 31, 2019 , there were no outstanding fair value hedges. Cash flow hedges Amounts recognized in the Consolidated Income Statement mainly relate to currency risk management and, to a lesser extent, 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 the Cash flow hedge reserve within Other comprehensive (loss)/income and will be subsequently 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 the Cash flow hedge reserve is recognized in the Consolidated Income Statement according to the timing of the cash flows of the underlying notes. In 2017, the Group entered in interest rate swaps in order to hedge against the increase in interest rates in relation to future debt issuances. In 2019 and in 2018, the maturity dates for a portion of these interest rate swaps were extended. The swaps are designated as a cash flow hedge. For the year ended December 31, 2019 losses of €167 million (for the year ended December 31, 2018 gains of €31 million and for the year ended December 31, 2017 losses of €3 million ) relating to such derivatives were recognized in the Cash flow hedge reserve within Other comprehensive (loss)/income. For the year ended December 31, 2019 net losses of €17 million related to ineffectiveness were recognized in the Consolidated Income Statement (net gains of €5 million for the year ended December 31, 2018 . There was no ineffectiveness for the year ended December 31, 2017 ). The Group reclassified gains/(losses) arising on Cash flow hedges, net of the tax effect, from Other comprehensive income and Inventories to the Consolidated Income Statement as follows: Years ended December 31, 2019 2018 2017 (€ million) Currency risk (Decrease)/increase in Net revenues € (27 ) € 100 € 8 Increase in Cost of revenues (29 ) (17 ) (96 ) Net financial income/(expenses) 4 2 (22 ) Result from investments 1 24 28 Interest rate risk Result from investments (2 ) 1 (1 ) Net financial expenses — — (3 ) Commodity price risk Decrease in Cost of revenues 7 29 28 Ineffectiveness and discontinued hedges (33 ) (5 ) 4 Tax (benefit)/expense (3 ) (36 ) 27 Items relating to discontinued operations, net of tax 2 9 1 Total recognized in the Consolidated Income Statement € (80 ) € 107 € (26 ) 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, 2019, net loss of €50 million related to net investment hedges were recognized in Currency translation differences within Other comprehensive (loss)/income. At December 31, 2019, there were no outstanding net investment hedges. For the year ended December 31, 2018, net gains of €17 million related to net investment hedges were recognized in Currency translation differences within Other comprehensive (loss)/income. For the year ended December 31, 2017, gains of €15 million related to net investment hedges were recognized in Currency translation differences within Other comprehensive (loss)/income. There was no ineffectiveness for the years ended December 31, 2019, 2018 and 2017. Derivatives for trading At December 31, 2019 , 2018 and 2017, 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). Information on the Group's risk management strategy and additional information on the Group's hedging activities is provided in Note 30 , Qualitative and quantitative information on financial risks . |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Cash and cash equivalents | ash and cash equivalents consisted of the following: At December 31, 2019 2018 (€ million) Cash at banks € 5,166 € 4,774 Money market securities 2,293 4,352 Other cash equivalents 7,555 3,324 Total Cash and cash equivalents € 15,014 € 12,450 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, 2019 | |
Share-Based Payment Arrangements [Abstract] | |
Share-based compensation | 19-2021 Long Term Incentive Plan In December 2018, the Company’s Board of Directors approved the 2019-2021 Long-Term Incentive Plan (“2019-2021 LTIP”), under the framework equity incentive plan. Refer to Note 26 , Equity for further information on the framework equity incentive plan. During May 2019, FCA awarded a total of 9.5 million Performance Share Units (“PSU”) and 5.9 million Restricted Share Units (“RSU”) to eligible employees under the 2019-2021 LTIP. The PSU awards, which represent the right to receive FCA common shares, have an Adjusted EBIT target as well as a total shareholder return (“TSR”) target, with each weighted at 50 percent and settled independently of the other. Half of the awards will vest based on our achievement of the targets for Adjusted EBIT (“2019 PSU Adjusted EBIT awards”), covering a three year period from 2019 to 2021 and will have a payout ranging from 0 percent to 100 percent . The remaining half of the PSU awards (“2019 PSU TSR awards”) will vest based on market conditions over a three year performance period from January 2019 through December 2021, with a payout scale ranging from 0 percent to 225 percent . Accordingly, the total number of shares that will eventually be issued may vary from the original award of 9.5 million units. If the performance goals for the respective periods are met, one third of the total PSU awards will vest in the second quarter of 2020, a cumulative two-thirds in the second quarter of 2021 and a cumulative 100 percent in the second quarter of 2022. The RSU awards (“2019 RSU awards”), which represent the right to receive FCA common shares, will vest in three equal tranches in the second quarter of each year 2020, 2021 and 2022. Additional Grants In addition to the grants above, during May and July 2019 FCA also awarded 0.9 million PSUs to certain key employees of the Company. The PSU awards, which represent the right to receive FCA common shares, have the same financial performance goals as the 2019 PSU Adjusted EBIT awards and 2019 PSU TSR awards, as described above. These awards will vest in one tranche in the second quarter of 2022 if the respective performance goals for the period January 1, 2019 to December 31, 2021 are achieved. During May and July 2019, FCA also awarded an additional 0.4 million RSUs to certain key employees of the Company. These additional awards will vest in one tranche in the second quarter of 2022. 2017-2021 Long Term Incentive Plan During the year ended December 31, 2018, FCA awarded a total of 2.40 million PSUs and 0.58 million RSUs to certain key employees under the 2017-2021 Long-Term Incentive Plan, and under the framework equity incentive plan. The PSU awards, which represent the right to receive FCA common shares, include a TSR target. These awards granted during 2018 (“2018 PSU TSR awards”) were to vest based upon market conditions covering a five year performance period from January 2017 through December 2021. Accordingly, the total number of shares that will eventually be issued may vary from the original award of 2.40 million units. The original vesting schedule allowed for one third of the total PSU TSR awards to vest in the first quarter of 2020, a cumulative two-thirds in the first quarter of 2021 and a cumulative 100 percent in the first quarter of 2022 if the respective performance goals for the years 2017 to 2019, 2017 to 2020 and 2017 to 2021 were achieved. Part of the PSU TSR awards granted in May 2019 (“Replacement awards”) were considered to be a replacement of certain of the 2018 PSU TSR awards. Under the modified terms of the 2018 PSU TSR awards, 60 percent of the 2018 PSU TSR awards were replaced with the Replacement awards and the remaining 40 percent of 2018 PSU TSR awards will vest at target during the second quarter of 2020. The RSU awards, which represent the right to receive FCA common shares, one third of the award has vested in 2019, with the remaining two-thirds vesting in 2020 and 2021. 2016-2018 Long Term Incentive Plan During the year ended December 31, 2017, FCA awarded a total of 2.26 million PSUs and 2.29 million RSUs to certain key employees under the 2016-2018 Long-Term Incentive Plan, and under the framework equity incentive plan. The PSU awards, which represented the right to receive FCA common shares, had financial performance goals that included a net income target as well as total shareholder return target, with each weighted at 50 percent and settled independently of the other. Half of the award vested based on our achievement of the targets for net income (“2017 PSU NI awards”) covering a three year period from 2016 to 2018 and had a payout scale ranging from 0 percent to 100 percent . The remaining half of the PSU awards (“2017 PSU TSR awards”) are based on market conditions and had a payout scale ranging from 0 percent to 150 percent . The PSU TSR awards performance period covered a two year period starting in December 2016 through 2018. Accordingly, the total number of shares that were issued did vary from the original award of 2.26 million units. The PSU awards have vested in 2019 with the achievement of the performance goals for the years 2016 to 2018. The RSU awards, which represent the right to receive FCA common shares, have vested in two equal tranches in 2018 and 2019. 2014-2018 Long Term Incentive Plan During the year ended December 31, 2015, FCA awarded a total of 14.71 million PSU and 5.20 million RSU awards to certain key employees under the 2014-2018 Long Term Incentive Plan (“2014-2018 LTIP”), and under the framework equity incentive plan. The PSU awards, which represented the right to receive FCA common shares, had financial performance goals covering a five year period from 2014 to 2018. The performance goals included a net income target as well as a TSR target, with each weighted at 50 percent and settled independently of the other. Half of the awards vested based on our achievement of the targets for net income and had a payout scale ranging from 0 percent to 100 percent (“2015 PSU NI awards”). The remaining half of the awards are based on market conditions and had a payout scale ranging from 0 percent to 150 percent (“2015 PSU TSR awards”). Accordingly, the total number of shares that were issued did vary from the original award of 14.71 million shares. One third of the total PSU awards vested in 2017, a cumulative two-thirds of the total PSU awards vested in the first quarter of 2018 with the achievement of the performance goal for the years 2014 to 2017 and a cumulative 100 percent vested in 2019 with the achievement of the performance goals for the years 2014 to 2018. The RSUs, which represent the right to receive FCA common shares, vested in three equal tranches. One third of the awards vested in the first quarter of 2017, and a cumulative two-thirds of the awards vested in the first quarter 2018 with the remaining tranche vested in the first quarter of 2019. Additional Grants In addition to the above, during the year ended December 31, 2016, FCA awarded 0.09 million RSUs to certain key employees of the Company under the 2014-2018 LTIP, which represented the right to receive FCA common shares. Half of the awards vested in the first quarter of 2018 and the remaining half of these awards vested in the first quarter of 2019. In addition to the above, during the year ended December 31, 2018, FCA awarded an additional 0.1 million PSU awards and 0.05 million RSU awards to certain key employees, under the 2014-2018 LTIP. The PSU awards, which represented the right to receive FCA common shares, had the same financial performance goals as the 2015 PSU NI awards and the 2015 PSU TSR awards, as described above. A cumulative 100 percent has vested in the first quarter of 2019 with the achievement of the performance goals for the years 2014 to 2018. The RSUs, which represent the right to receive FCA common shares, have vested in the first quarter of 2019. Other Restricted Share Unit Grants During the year ended December 31, 2019, FCA awarded 0.8 million RSUs to certain key employees of the Company, which represent the right to receive FCA common shares. A portion of these awards vested in 2019, with the remaining portion expecting to be vested in 2020, 2021 and 2022 in accordance with the award agreements. PSU NI Awards Changes during 2019 , 2018 and 2017 for the PSU NI awards under the framework equity incentive plan were as follows: 2019 2018 2017 PSU NI Weighted PSU NI Weighted PSU NI Weighted Outstanding shares unvested at January 1 4,568,830 € 6.14 8,803,826 € 5.89 11,379,445 € 5.65 Anti-dilution adjustment 25,516 4.91 32,855 5.87 65,751 5.62 Granted — — 71,136 9.73 1,136,250 7.91 Vested (4,295,593 ) 6.24 (3,857,502 ) 5.58 (3,758,870 ) 5.65 Canceled — — — — — — Forfeited (36,369 ) 6.62 (481,485 ) 6.27 (18,750 ) 7.91 Outstanding shares unvested at December 31 262,384 € 4.91 4,568,830 € 6.14 8,803,826 € 5.89 The vesting of the 2017 PSU NI awards and the 2015 PSU NI awards has been 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 commenced on January 1, 2016 for the 2017 PSU NI awards and 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. 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. PSU Adjusted EBIT Awards Changes during 2019 for the PSU Adjusted EBIT awards under the framework equity incentive plan were as follows: 2019 PSU Adjusted EBIT Weighted Outstanding shares unvested at January 1 — € — Anti-dilution adjustment 524,308 10.18 Granted 5,182,071 11.26 Vested — — Canceled — — Forfeited (145,740 ) 11.28 Outstanding shares unvested at December 31 5,560,639 € 10.19 The fair values of the PSU Adjusted EBIT awards that were granted during the year ended December 31, 2019 were measured using the FCA stock price on the grant date, adjusted for expected dividends at a constant yield as PSU awards do not have the right to receive ordinary dividends prior to vesting. PSU TSR Awards Changes during 2019 , 2018 and 2017 for the PSU TSR awards under the framework equity incentive plan were as follows: 2019 2018 2017 PSU TSR Weighted PSU TSR Weighted PSU TSR Weighted Outstanding shares unvested at January 1 6,926,413 € 11.42 8,803,827 € 10.58 11,379,446 € 10.64 Anti-dilution adjustment 644,588 10.60 32,855 10.54 65,750 10.58 Granted 5,189,237 11.58 2,473,637 13.15 1,136,250 10.84 Vested (4,295,594 ) 10.67 (3,857,502 ) 10.51 (3,758,869 ) 10.63 Canceled (1,385,046 ) 12.99 — — — — Forfeited (282,107 ) 11.94 (526,404 ) 11.50 (18,750 ) 10.84 Outstanding shares unvested at December 31 6,797,491 € 10.61 6,926,413 € 11.42 8,803,827 € 10.58 The weighted average fair value of the PSU TSR awards granted during the years ended December 31, 2018, 2017 and 2015 were calculated using a Monte Carlo simulation model. The weighted average fair value of the PSU TSR awards granted during the year ended December 31, 2019 were calculated using a Monte Carlo Simulation, adjusted for expected dividends at a constant yield as PSU awards do not have the right to receive ordinary dividends prior to vesting. In accordance with IFRS 2 - Share-based Payment , the 2018 PSU TSR awards were modified and remeasured at the grant date of the Replacement awards, using a Monte Carlo Simulation. Only the incremental amount, which is the difference between the fair value of the 2018 PSU TSR and the fair value of the Replacement awards, will be recognized as an expense over the term of the Replacement awards. The key assumptions utilized to calculate the grant date fair values for the PSU TSR awards issued are summarized below: Key assumptions 2019 PSU TSR Awards Range 2018 PSU TSR Awards Range 2017 PSU TSR Awards Range 2015 PSU TSR Awards Range Grant date stock price € 13.10 € 18.79 €9.74 - €10.39 €13.44 - €15.21 Expected volatility 39 % 41 % 44 % 37% - 39% Dividend yield 5 % — % — % — % Risk-free rate (0.7 )% (0.3 )% (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. Restricted Share Units Changes during 2019 , 2018 and 2017 for the RSU awards under the framework equity incentive plan were as follows: 2019 2018 2017 RSUs Weighted RSUs Weighted RSUs Weighted Outstanding shares unvested at January 1 4,290,986 € 10.47 7,600,313 € 9.17 7,969,623 € 8.69 Anti-dilution adjustment 761,529 10.49 28,299 9.12 46,189 8.64 Granted 7,160,764 11.35 627,081 18.54 2,293,940 10.43 Vested (3,347,345 ) 9.93 (3,690,050 ) 9.09 (2,671,939 ) 8.64 Canceled — — — — — — Forfeited (712,895 ) 10.05 (274,657 ) 10.28 (37,500 ) 10.39 Outstanding shares unvested at December 31 8,153,039 € 10.51 4,290,986 € 10.47 7,600,313 € 9.17 The weighted average fair value of the RSU awards that were granted in December 31, 2018, 2017, 2016 and 2015, were measured using the FCA stock price on the grant date. The weighted average fair value of the RSU awards that were granted during the year ended December 31, 2019 were measured using the FCA stock price on the grant date, adjusted for expected dividends at a constant yield as RSU awards do not have the right to receive ordinary dividends prior to vesting. 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 December 2019, the Compensation Committee approved a conversion factor of 1.107723 that was applied to outstanding awards under the Long Term Incentive Plan to make equity award holders whole for the resulting diminution in the value of an FCA common share as a result of the payment of an extraordinary cash distribution to holders of FCA common shares on May 30, 2019. 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. In January 2018, as a result of the distribution of the Company's entire interest in GEDI Gruppo Editoriale S.p.A. to holders of FCA common shares on July 2, 2017, the Compensation Committee approved a conversion factor of 1.003733 that was applied to outstanding awards under the Long Term Incentive 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. Similarly, 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 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 the 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, the 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: 2019 Anti-dilution adjustment 2018 Anti-dilution adjustment 2017 Anti-dilution adjustment 2016 Anti-dilution adjustment PSU Awards: Number of awards - as adjusted 12,620,514 17,673,363 22,890,392 22,717,024 Key assumptions - as adjusted: Grant date stock price - for PSU NI, PSU TSR and PSU Adjusted EBIT €8.79 - €16.96 €5.71 - €10.35 €8.66 - €9.79 €8.71 - €9.85 RSU Awards: Number of awards - as adjusted 8,153,039 7,628,612 8,015,812 8,023,472 Share-based Compensation Expense Total expense for the PSU awards and RSU awards of approximately €92 million , €54 million and €85 million was recorded for the years ended December 31, 2019 , 2018 and 2017 , respectively. At December 31, 2019 , the Group had unrecognized compensation expense related to the non-vested PSU awards and RSU awards of approximately €112 million based on current forfeiture assumptions, which will be recognized over a weighted-average period of 1.6 years. |
Employee benefits liabilities
Employee benefits liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
Employee benefits liabilities | mployee benefits liabilities consisted of the following: At December 31, 2019 2018 Current Non-current Total Current Non-current Total (€ million) Pension benefits € 38 € 5,024 € 5,062 € 34 € 4,475 € 4,509 Health care and life insurance plans 132 2,157 2,289 134 2,082 2,216 Other post-employment benefits 63 730 793 82 737 819 Other provisions for employees 311 596 907 345 581 926 Total Employee benefits liabilities € 544 € 8,507 € 9,051 € 595 € 7,875 € 8,470 The Group continuing operations recognized a total expense of €1,508 million for defined contribution and state plans for the year ended December 31, 2019 ( €1,518 million in 2018 and €1,472 million in 2017 ). The following table summarizes the fair value of defined benefit obligations and the fair value of related plan assets: At December 31, 2019 2018 (€ million) Present value of defined benefit obligations: Pension benefits € 25,024 € 22,767 Health care and life insurance plans 2,289 2,216 Other post-employment benefits 793 819 Total present value of defined benefit obligations (a) 28,106 25,802 Fair value of plan assets (b) 20,729 18,819 Asset ceiling (c) 18 13 Total net defined benefit plans (a - b + c) 7,395 6,996 of which: Net defined benefit liability (d) 8,144 7,544 Defined benefit plan asset (749 ) (548 ) Other provisions for employees (e) 907 926 Total Employee benefits liabilities (d + e) € 9,051 € 8,470 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 are made in excess of those legally required 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, 2019 , the combined credit balances for the U.S. and Canada qualified pension plans were approximately €2.1 billion , and the usage of the credit balances to satisfy minimum funding requirements is subject to the plans maintaining certain funding levels. During the year ended December 31, 2019 , 2018 and 2017 , the Group made pension contributions in the U.S. and Canada totaling €48 million , € 724 million and € 124 million , respectively, including an accelerated discretionary contribution in September 2018 of €670 million ( $800 million ) to certain of our U.S. pension plans, which resulted in tax benefits (refer to Note 7 , Tax expense for further information). The Group's contributions to pension plans for 2020 are expected to be €970 million , of which €940 million relate to the U.S. and Canada, with €895 million being discretionary contributions and €45 million which will be made to satisfy minimum funding requirements. The expected benefit payments for pension plans are as follows: Expected benefit (€ million) 2020 € 1,524 2021 € 1,483 2022 € 1,472 2023 € 1,460 2024 € 1,465 2025-2029 € 7,282 The following table summarizes changes in the pension plans: 2019 2018 Obligation Fair value of plan assets Asset ceiling Liability/ (Asset) Obligation Fair value of plan assets Asset ceiling Liability/ (€ million) At January 1 € 22,767 € (18,819 ) € 13 € 3,961 € 25,528 € (21,218 ) € 14 € 4,324 Included in the Consolidated Income Statement 1,111 (713 ) — 398 1,189 (680 ) — 509 Included in Other comprehensive income: Actuarial (gains)/losses from: Demographic and other assumptions (359 ) — — (359 ) (196 ) — — (196 ) Financial assumptions 2,773 — — 2,773 (1,530 ) — — (1,530 ) Return on assets — (2,454 ) — (2,454 ) — 1,530 — 1,530 Changes in the effect of limiting net assets — — 3 3 — — (1 ) (1 ) Changes in exchange rates 618 (564 ) 2 56 792 (584 ) — 208 Other: Employer contributions — (48 ) — (48 ) — (756 ) — (756 ) Plan participant contributions 2 (2 ) — — 2 (2 ) — — Benefits paid (1,520 ) 1,506 — (14 ) (1,568 ) 1,556 — (12 ) Settlements paid (394 ) 394 — — (1,187 ) 1,187 — — Transfer to Liabilities held for sale — — — — (268 ) 126 — (142 ) Other changes 26 (29 ) — (3 ) 5 22 — 27 At December 31 € 25,024 € (20,729 ) € 18 € 4,313 € 22,767 € (18,819 ) € 13 € 3,961 Amounts recognized in the Consolidated Income Statement were as follows: Years ended December 31, 2019 2018 2017 (€ million) Current service cost € 156 € 172 € 169 Interest expense 969 925 1,083 Interest income (795 ) (759 ) (907 ) Other administration costs 82 79 94 Past service costs/(credits) and (gains)/losses arising from settlements/curtailments (14 ) 92 (3 ) Items relating to discontinued operations — — 6 Total recognized in the Consolidated Income Statement € 398 € 509 € 442 During the year ended December 31, 2019, the Group entered into a buyout relating to its Canadian salaried defined benefit plan. A total of €325 million was paid to a third-party insurance company in settlement of FCA's obligations, resulting in a settlement loss of €6 million that was recognized within Selling, general and other in the Consolidated Income Statement for the year ended December 31, 2019. During the year ended December 31, 2019, the Group also 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 €69 million was paid in December 2019 to those participants that accepted the offer. The plan amendment resulted in a settlement gain of €20 million that was recognized within Selling, general and other in the Consolidated Income Statement for the year ended December 31, 2019. During the year ended December 31, 2018, the Group settled a portion of the supplemental retirement plan in North America, resulting in a refund of excess assets of €22 million . The corresponding settlement charge of €78 million was recognized within Selling, general and other in the Consolidated Income Statement for the year ended December 31, 2018. During the year ended December 31, 2018, the Group also entered into an annuity buyout relating to two of its U.S. defined benefit plans. A total of €841 million was paid to a third-party insurance company in settlement of FCA's obligations, resulting in a settlement loss of €12 million that was recognized within Selling, general and other in the Consolidated Income Statement for the year ended December 31, 2018. 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. The fair value of plan assets by class was as follows: At December 31, 2019 2018 Amount of which have a Amount of which have a (€ million) Cash and cash equivalents € 699 € 681 € 672 € 615 U.S. equity securities 1,407 1,405 1,286 1,284 Non-U.S. equity securities 781 781 784 757 Commingled funds 1,596 422 1,833 606 Equity instruments 3,784 2,608 3,903 2,647 Government securities 3,179 1,191 2,717 916 Corporate bonds (including convertible and high yield bonds) 5,553 — 4,944 — Other fixed income 1,536 174 1,307 86 Fixed income securities 10,268 1,365 8,968 1,002 Private equity funds 2,297 — 2,066 — Commingled funds 65 62 56 53 Real estate funds 1,349 3 1,392 3 Hedge funds 2,072 38 1,676 26 Investment funds 5,783 103 5,190 82 Insurance contracts and other 195 66 86 12 Total fair value of plan assets € 20,729 € 4,823 € 18,819 € 4,358 Non-U.S. equity securities are invested broadly in developed international and emerging markets. Fixed income securities are debt instruments primarily comprised of long-term U.S. Treasury and global government bonds, as well as U.S., developed international and emerging market companies’ debt securities diversified by sector, geography and through a wide range of market capitalizations. Private equity funds include those in limited partnerships that invest primarily in the equity of companies that are not publicly traded on a stock exchange. Private debt funds include those in limited partnerships that invest primarily in the debt of companies and real estate developers. 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 pension assets relative to pension liabilities and to ensure that 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 monitored and 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 FCA shares 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 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, manager 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. Operating risks are mitigated through ongoing oversight of external investment managers’ style adherence, team strength, firm health and internal controls. The weighted average assumptions used to determine defined benefit obligations were as follows: At December 31, 2019 2018 U.S. Canada UK U.S. Canada UK Discount rate 3.3 % 3.1 % 2.0 % 4.4 % 3.8 % 2.8 % Future salary increase rate — % 3.5 % 2.7 % — % 3.5 % 3.0 % The average duration of U.S. and Canadian liabilities was approximately 11 years and 13 years, respectively. The average duration of UK pension liabilities was approximately 17 years. Health care and life insurance plans Liabilities arising from these unfunded 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. The expected benefit payments for unfunded health care and life insurance plans are as follows: Expected benefit payments (€ million) 2020 € 132 2021 € 131 2022 € 129 2023 € 129 2024 € 128 2025-2029 € 633 Changes in net defined benefit obligations for healthcare and life insurance plans were as follows: 2019 2018 (€ million) Present value of obligations at January 1 € 2,216 € 2,279 Included in the Consolidated Income Statement 115 110 Included in Other comprehensive income: Actuarial (gains)/losses from: - Demographic and other assumptions (215 ) 37 - Financial assumptions 251 (161 ) Effect of movements in exchange rates 57 81 Other: Benefits paid (135 ) (128 ) Transfer to Liabilities held for sale — (2 ) Present value of obligations at December 31 € 2,289 € 2,216 Amounts recognized in the Consolidated Income Statement were as follows: Years ended December 31, 2019 2018 2017 (€ million) Current service cost € 20 € 22 € 22 Interest expense 96 88 98 Past service costs/(credits) and losses/(gains) arising from settlements (1 ) — — Total recognized in the Consolidated Income Statement € 115 € 110 € 120 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, 2019 2018 U.S. Canada U.S. Canada Discount rate 3.4 % 3.1 % 4.4 % 3.8 % Salary growth 1.5 % 1.0 % 1.5 % 1.0 % Weighted average ultimate healthcare cost trend rate 4.4 % 4.0 % 4.4 % 4.0 % The average duration of the U.S. and Canadian liabilities was approximately 12 years and 17 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 2019 plan valuation was 5.3 percent ( 6.4 percent in 2018 ). The annual rate was assumed to decrease gradually to 3.9 percent through 2039 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 2019 plan valuation was 4.4 percent ( 4.4 percent in 2018 ). The annual rate was assumed to decrease gradually to 4.0 percent through 2040 and remain at that level thereafter. Other post-employment benefits Other post-employment benefits comprises other employee benefits granted to Group employees in Europe and includes the Italian employee severance indemnity ( trattamento di fine rapporto , or “TFR”) obligation required under Italian Law, amounting to €584 million at December 31, 2019 and €664 million at December 31, 2018 . 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 governing 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 obligation 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 TFR obligation 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: 2019 2018 (€ million) Present value of obligations at January 1 € 819 € 987 Included in the Consolidated Income Statement 20 23 Included in Other comprehensive income: Actuarial (gains)/losses from: - Demographic and other assumptions 11 2 - Financial assumptions 41 (5 ) Effect of movements in exchange rates 3 (3 ) Other: Benefits paid (90 ) (50 ) Transfer to Liabilities held for sale (20 ) (98 ) Other changes 9 (37 ) Present value of obligations at December 31 € 793 € 819 Amounts recognized in the Consolidated Income Statement were as follows: Years ended December 31, 2019 2018 2017 (€ million) Current service cost € 6 € 9 € 9 Interest expense 12 14 11 Past service costs/(credits) and losses/(gains) arising from settlements 1 — — Items relating to discontinued operations 1 — 3 Total recognized in the Consolidated Income Statement € 20 € 23 € 23 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 2019 was 0.6 percent ( 1.4 percent in 2018 ). The average duration of the Italian TFR is approximately 8 years. Retirement or employee leaving rates are developed to reflect actual and projected Group experience and legal 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, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Provisions | consisted of the following: At December 31, 2019 2018 (1) Current Non-current Total Current Non-current Total (€ million) Product warranty and recall campaigns € 2,406 € 3,900 € 6,306 € 2,745 € 4,015 € 6,760 Sales incentives 5,479 — 5,479 5,999 — 5,999 Legal proceedings and disputes (1) 303 222 525 760 280 1,040 Commercial risks 441 120 561 442 272 714 Restructuring 72 34 106 134 31 165 Other risks 277 751 1,028 314 815 1,129 Total Provisions € 8,978 € 5,027 € 14,005 € 10,394 € 5,413 € 15,807 ________________________________________________________________________________________________________________________________________________ (1) Refer to Note 2, Basis of preparation. Changes in Provisions were as follows: At Additional Settlements Unused Translation differences Transfer to Liabilities held for sale Other At (€ million) Product warranty and recall campaigns € 6,760 € 3,059 € (3,655 ) € — € 145 € — € (3 ) € 6,306 Sales incentives 5,999 14,864 (15,573 ) 63 131 — (5 ) 5,479 Legal proceedings and disputes (1) 1,040 167 (680 ) (24 ) 16 (18 ) 24 525 Commercial risks 714 353 (408 ) (28 ) 12 (18 ) (64 ) 561 Restructuring costs 165 118 (111 ) (50 ) 1 (1 ) (16 ) 106 Other risks 1,129 355 (334 ) (63 ) 7 (17 ) (49 ) 1,028 Total Provisions € 15,807 € 18,916 € (20,761 ) € (102 ) € 312 € (54 ) € (113 ) € 14,005 ________________________________________________________________________________________________________________________________________________ (1) Refer to Note 2, Basis of preparation. Product warranty and recall campaigns At December 31, 2019, the Product warranty and recall campaigns provision decreased slightly primarily due to lower volumes in North America. During the year ended December 31, 2018, an additional amount of €114 million was accrued in relation to costs for recall campaigns related to Takata airbag inflators, net of recovery. 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 As described within Note 2 , Basis of preparation - Use of estimates , 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. Legal proceedings and disputes As described within Note 2 , Basis of preparation - Use of estimates , 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 outflows for the Legal proceedings and disputes provision is also uncertain. During the year ended December 31, 2019 , approximately €0.5 billion of payments were made for civil, environmental and consumer claims related to U.S. diesel emissions matters accrued in 2018 (refer to Note 25 , Guarantees granted, commitments and contingent liabilities ). None of the provisions within the total Legal proceedings and disputes provision are individually significant except for the remaining portion of the provision of €748 million recognized during the year ended December 31, 2018, for costs related to final settlements reached on civil, environmental and consumer claims related to U.S. diesel emissions matters (refer to Note 25 , Guarantees granted, commitments and contingent liabilities ). Commercial risks 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 2022. On July 12, 2019, the U.S. Department of Transportation’s National Highway Traffic Safety Administration (“NHTSA”) announced a final rule that retained the current fine rate applicable to automobile manufacturers that fail to meet Corporate Average Fuel Economy (“CAFE”) standards through achievement of the targeted fleet fuel efficiency or remittance of CAFE credits. Prior to this final rule, FCA recorded a provision for estimated CAFE civil fines relating to 2019 model year vehicles for which CAFE credits were not expected to be available at the previously announced civil fine rate. As a result of the announced final rule, under IAS 37, the reduction of the civil fine rate resulted in a change in the estimated provision of €158 million relating to 2019 model year vehicles sold prior to March 31, 2019, which has been recognized as a reduction to Cost of revenues within the Consolidated Income Statement for the year ended December 31, 2019 . Restructuring costs During the year ended December 31, 2019 , a total provision for €118 million was recognized primarily for workforce restructuring costs, of which €56 million was recognized within LATAM, €36 million within EMEA and €23 million within North America (refer to Note 28 , Segment reporting ). Other risks Other risks includes, 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 2022. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Debt | ssified 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, 2019 2018 Due Due Due Total (non-current) Total Debt Due within Due Due Total (non-current) Total Debt (€ million) Notes € 1,450 € 4,942 € — € 4,942 € 6,392 € 1,598 € 4,977 € 1,250 € 6,227 € 7,825 Borrowings from banks (1) 2,097 1,511 88 1,599 3,696 2,928 1,987 190 2,177 5,105 Asset-backed financing (Note 15) 151 — — — 151 457 — — — 457 Lease liabilities 360 705 575 1,280 1,640 56 131 74 205 261 Other debt (1) 818 204 — 204 1,022 822 45 13 58 880 Total Debt € 4,876 € 7,362 € 663 € 8,025 € 12,901 € 5,861 € 7,140 € 1,527 € 8,667 € 14,528 ______________________________________________________________________________________________________________________________ (1) Borrowings from banks and Other debt as previously reported included €261 million of finance lease liabilities recognized in accordance with IAS 17. These amounts have been reclassified into the line item Lease liabilities at December 31, 2018. Refer to Note 2. , Basis of preparation for additional information on the adoption of IFRS 16. Notes The following table summarizes the notes outstanding at December 31, 2019 and 2018: At December 31, Currency Face value of Coupon % Maturity 2019 2018 Medium Term Note Programme: (€ million) Fiat Chrysler Finance Europe SENC (1) CHF 250 3.125 September 30, 2019 — 222 Fiat Chrysler Finance Europe SENC (2) EUR 1,250 6.750 October 14, 2019 — 1,250 Fiat Chrysler Finance Europe SENC (2) EUR 1,000 4.750 March 22, 2021 1,000 1,000 Fiat Chrysler Finance Europe SENC (2) EUR 1,350 4.750 July 15, 2022 1,350 1,350 FCA NV (2) EUR 1,250 3.750 March 29, 2024 1,250 1,250 Other (3) EUR 7 7 7 Total Medium Term Note Programme 3,607 5,079 Other Notes: FCA NV (2) U.S.$ 1,500 4.500 April 15, 2020 1,335 1,310 FCA NV (2) U.S.$ 1,500 5.250 April 15, 2023 1,335 1,310 Total Other Notes 2,670 2,620 Hedging effect, accrued interest and amortized cost valuation 115 126 Total Notes € 6,392 € 7,825 ______________________________________________________________________________________________________________________________ (1) Listing on the SIX Swiss Exchange was obtained. (2) Listing on the Irish Stock 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 € 3.6 billion were outstanding at December 31, 2019 (€ 5.1 billion at December 31, 2018 ). Notes under the MTN Programme are issued, or otherwise guaranteed, by FCA NV. From time to time, we may 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, 2019 were due to the repayment at maturity: • in September 2019 of a note with a principal amount of CHF 250 million ; and • in October 2019 of a note with a principal amount of €1,250 million . Changes in notes issued under the MTN Programme during the year ended December 31, 2018 were due to the repayment at maturity: • in March 2018 of a note with a principal amount of €1,250 million ; and • in July 2018 of a note with a principal amount of €600 million . 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 the case that 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 a 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, 2019 , 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 the case that any security interest upon assets of FCA NV is granted in connection with other notes or debt securities having the same ranking, such a 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, 2019 , 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. On May 9, 2017, FCF US and the Company filed an automatically effective shelf registration statement with the SEC on Form F-3. 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 November 13, 2018, FCA US prepaid the U.S. $1,009 million ( €893 million ) outstanding principal and accrued interest on its Tranche B term loan maturing December 31, 2018 (the “Tranche B Term Loan due 2018”). The prepayment was made with cash on hand and resulted in a €1 million loss on extinguishment. At December 31, 2017, €836 million , including accrued interest, was outstanding under FCA US's Tranche B Term Loan maturing December 31, 2018. On February 24, 2017, FCA US prepaid the U.S. $1,826 million (€ 1,721 million ) outstanding principal and accrued interest on 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 resulted in a €3 million loss on extinguishment. On April 12, 2017, FCA US amended the credit agreement that governs the Tranche B Term Loan due 2018, reducing 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 . For the years ended December 31, 2018 and 2017, interest was accrued based on LIBOR. European Investment Bank Borrowings FCA has financing agreements with the European Investment Bank (“EIB”) for a total of €0.4 billion outstanding at December 31, 2019 ( €0.7 billion outstanding at December 31, 2018 ), which included the residual debt due under the following facilities: • €500 million ( amortizing in installments up to 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; and • €420 million (maturing in June 2022), entered into in June 2018 to support research and development projects to be implemented by FCA during the period 2018-2020. 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 €1.8 billion at December 31, 2019 ( €2.3 billion at December 31, 2018 ). 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 has provided the Group with the opportunity to fund large investments in Brazil with loans of sizeable amounts at attractive rates. At December 31, 2019 , outstanding subsidized loans amounted to €1.1 billion ( €1.4 billion at December 31, 2018 ), of which approximately €0.8 billion ( €1.0 billion at December 31, 2018 ) related to the construction of the plant in Pernambuco (Brazil), which was supported by subsidized credit lines totaling Brazilian Real (“BRL”) 6.5 billion ( €1.5 billion ). Approximately €0.1 billion ( €0.1 billion at December 31, 2018 ) of committed credit lines contracted to fund scheduled investments in the area were undrawn at December 31, 2019 . Revolving Credit Facilities In March 2019, the Group amended its syndicated revolving credit facility originally signed in June 2015 and previously amended in March 2017 and March 2018 (as amended, the “RCF”). The amendment extended the RCF’s final maturity to March 2024. The RCF is available for general corporate purposes and for the working capital needs of the Group and 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. This amendment was accounted for as a debt modification and, as a result, the new costs associated with the March 2019 amendment as well as the remaining unamortized debt issuance costs related to the original €5.0 billion RCF and the previous March 2017 and March 2018 amendments are amortized over the life of the amended RCF. In the March 2018 amendment, the amended RCF's final maturity was extended to March 2023. The amendment was accounted for as a debt modification and, as a result, the new costs associated with the March 2018 amendment as well as the remaining unamortized debt issuance costs related to the original €5.0 billion RCF and the previous March 2017 amendment, are amortized over the life of the amended RCF. The covenants of the RCF include financial covenants as well as negative pledge, pari passu , cross-default and change of control clauses. 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, 2019 , FCA was in compliance with the covenants of the RCF. At December 31, 2019 , 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, 2018 , undrawn committed credit lines totaling €7.7 billion included the € 6.25 billion RCF and approximately €1.5 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, 2019 , the Mexico Bank Loan had an outstanding balance of €0.2 billion ( €0.3 billion at December 31, 2018 ). As of December 31, 2019 , 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 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, 2019 , 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 the IFRS 9 derecognition requirements and are recognized with assets of the same amount of €151 million at December 31, 2019 ( €457 million at December 31, 2018 ) 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 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 the National Automobile, Aerospace, Transportation and General Workers Union of Canada “CAW” (now part of Unifor), which represented employees, retirees and dependents. Other debt also includes funds raised from financial services companies, primarily in Latin America, and deposits from dealers in Brazil and China. Lease liabilities The following table summarizes the Group's current and non-current lease liabilities: Lease liabilities included in the Statement of Financial Position At December 31, 2019 (€ million) Long-term debt (non-current) € 1,280 Short-term debt and current portion of long-term debt (current) € 360 Maturity analysis - contractual undiscounted cash flows At December 31, 2019 (€ million) Due within one year € 430 Due between one and five years 905 Due beyond five years 811 Total undiscounted lease liabilities € 2,146 In addition, the Group has entered into commitments relating to leases not yet commenced of €399 million , of which the most significant related to the investments in manufacturing facilities in Michigan, USA. In addition to the above, the Group entered into non-cancellable short term leases, which have not been classified as lease liabilities, of €28 million which is expected to be settled within the next 12 months. Debt secured by assets At December 31, 2019 , debt secured by assets of the Group amounted to €674 million ( €834 million at December 31, 2018 ), excluding the Lease liabilities as described above, mainly related to subsidized financing in Latin America, Mexico and India. The total carrying amount of assets acting as security for loans for the Group amounted to €1,637 million , excluding the Right-of-use assets as described in Note 11 , Property, plant and equipment , at December 31, 2019 ( €2,214 million at December 31, 2018 ). |
Other liabilities and tax payab
Other liabilities and tax payable | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other liabilities and Tax payable | Other liabilities consisted of the following: At December 31, 2019 2018 Current Non-current Total Current Non-current Total (€ million) Payables for GDP and buy-back agreements € 2,210 € — € 2,210 € 2,362 € — € 2,362 Accrued expenses and deferred income 769 674 1,443 783 697 1,480 Indirect tax payables 501 14 515 681 16 697 Payables to personnel 1,008 15 1,023 956 16 972 Social security payables 258 4 262 265 4 269 Construction contract liabilities (Note 14) 83 — 83 93 — 93 Service contract liability 621 1,530 2,151 568 1,521 2,089 Other 1,338 189 1,527 1,349 198 1,547 Total Other liabilities € 6,788 € 2,426 € 9,214 € 7,057 € 2,452 € 9,509 Other liabilities (excluding Accrued expenses, Deferred income and Service contract liability) by due date were as follows: At December 31, 2019 2018 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, deferred income and service contract liability) € 5,398 € 201 € 21 € 222 € 5,620 € 5,706 € 221 € 13 € 234 € 5,940 Payables for GDP and buy-back agreements relate 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. Accrued expenses and deferred income includes the remaining portion of government grants that will be recognized as income in the Consolidated Income Statement over the same periods as the related costs which they are intended to offset. On March 15, 2017, the Brazilian Supreme Court ruled that state value added tax should be excluded from the basis 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. At December 31, 2017, 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 believed a risk of economic outflow was still greater than remote. On August 18, 2018, the litigation concerning PIS over ICMS had its final and definitive favorable decision. At September 30, 2018, the Group determined that the likelihood of economic outflow related to such indirect taxes was no longer probable and the total liability of €54 million accrued and paid would be recovered. In March 2019, a final and definitive favorable decision was made in respect of the COFINS over ICMS element of the litigation, relating to amounts previously paid but not recovered for the period between May 2004 to December 2014. During the year ended December 31, 2019, total credits and the related receivable of €164 million were recognized, which were excluded from Adjusted EBIT (refer to Note 28, Segment reporting ). On December 17, 2019, the Brazilian courts indicated that it would render a decision on the Brazilian government’s appeal regarding the 2017 Supreme Court’s decision with respect to the calculation of the state value added tax in the basis for federal tax on revenue on April 1, 2020. During the three months ended September 30, 2019, the Brazilian courts indicated they would render a judgment on December 5, 2019. We continue to believe our position is supported by both the facts and the receipt of final and definitive rulings from the courts. However, due to the uncertainty of the Supreme Court’s application of the government’s appeal and request for modulation, and due to Brazil’s current heightened political and economic uncertainty, we continue to believe that the risk of economic outflow is greater than remote. Service contract liability The service contract liability is mainly comprised of maintenance plans and extended warranties. Changes in the Group's service contract liability for the year ended December 31, 2019 , were as follows: At January 1, 2019 Advances received from customers Amounts recognized within revenue Transfers to Assets/(Liabilities) held for sale Other Changes At December 31, 2019 (€ million) Service contract liability € 2,089 € 839 € (721 ) € — € (56 ) € 2,151 Of the total Service contract liability at December 31, 2019 , the Group expects to recognize approximately €514 million in 2020 , €483 million in 2021 , €403 million in 2022 and €751 million thereafter. Tax liabilities Tax liabilities by due date were as follows: At December 31, 2019 2018 (1) 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 liabilities (1) € 122 € 276 € 2 € 278 € 400 € 203 € 149 € — € 149 € 352 ________________________________________________________________________________________________________________________________________________ (1) Refer to Note 2, Basis of preparation. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement [Abstract] | |
Fair value measurements | Assets and liabilities that are measured at fair value on a recurring basis The following table shows the fair value hierarchy, based on observable and unobservable inputs, for financial assets and liabilities that are measured at fair value on a recurring basis: At December 31, 2019 2018 Note Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (€ million) Debt securities and equity instruments measured at FVOCI 13 € 3 € 21 € 13 € 37 € 3 € 15 € 13 € 31 Debt securities and equity instruments measured at FVPL 13 277 — 15 292 270 — 3 273 Derivative financial assets 16 — 98 — 98 — 256 41 297 Collateral deposits 13 42 — — 42 61 — — 61 Receivables from financing activities 15 — — 580 580 — — 973 973 Trade receivables 15 — 19 — 19 — 65 — 65 Other receivables 15 — — 69 69 — — — — Money market securities 17 2,293 — — 2,293 4,352 — — 4,352 Total Assets € 2,615 € 138 € 677 € 3,430 € 4,686 € 336 € 1,030 € 6,052 Derivative financial liabilities 16 — 318 — 318 — 205 2 207 Total Liabilities € — € 318 € — € 318 € — € 205 € 2 € 207 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, as described below: • the fair value of forward contracts, swaps and options hedging currency risk is determined by using valuation techniques common in the financial markets and taking market parameters at the balance sheet date (in particular, exchange rates, interest rates and volatility rates); • 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 valuation techniques common in the financial markets and taking market parameters at the balance sheet date (in particular, underlying prices, interest rates and volatility rates). The fair value of money market securities 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 fair value of Receivables from financing activities, which are classified in Level 3 of the fair value hierarchy, has been estimated using discounted cash flow models. The most significant inputs used in 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. The fair value of Other receivables, which relates to the contingent consideration receivable from the sale of Magneti Marelli (refer to Note 3 , Scope of consolidation ), is classified in Level 3 of the fair value hierarchy and has been estimated using discounted cash flow models. The most significant inputs used in this measurement are market discount rates. 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. In 2019 , €14 million of derivative financial assets and liabilities were transferred from Level 3 to Level 2 in the fair value hierarchy primarily as a result of a change in valuation input for certain precious metals to utilize observable inputs. The following table provides a reconciliation of the changes in items measured at fair value and categorized within Level 3: Receivables from financing activities Debt securities and equity instruments Derivative financial Other receivables (€ million) At January 1, 2019 € 973 € 16 € 39 € — Gains/(Losses) recognized in Consolidated Income Statement — 1 56 (1 ) Losses recognized in Other comprehensive income/(loss) — — (15 ) — Issues/Settlements (393 ) — (66 ) 70 Purchases/Sales — 11 — — Transfers from Level 3 — — (14 ) — At December 31, 2019 € 580 € 28 € — € 69 Receivables from financing activities Debt securities and equity instruments Derivative financial Other receivables (€ million) At January 1, 2018 € 700 € 45 € 29 € — Gains/(Losses) recognized in Consolidated Income Statement — (1 ) 30 — Gains recognized in Other comprehensive income/(loss) — — 9 — Issues/Settlements 273 — (29 ) — Transfers to Assets/(Liabilities) held for sale — (28 ) — — At December 31, 2018 € 973 € 16 € 39 € — 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, €15 million was recognized within Cash flow reserves and no amounts were recognized within Currency translation differences. Assets and liabilities not measured at fair value on recurring basis The carrying value of debt securities measured at amortized cost, financial receivables, current receivables and payables is a reasonable approximation of fair value as the present value of future cash flows does not differ significantly from the carrying amount. The carrying value of Cash at banks and Other cash equivalents usually approximates fair value due to the short maturity of these instruments (refer to Note 17 , Cash and cash equivalents ). The following table provides the carrying amount and fair value of financial assets and liabilities not measured at fair value on a recurring basis: At December 31, 2019 2018 Note Carrying Fair Carrying Fair (€ million) Dealer financing € 1,737 € 1,736 € 1,681 € 1,682 Retail financing 613 608 601 584 Finance lease 3 3 3 3 Other receivables from financing activities 222 222 356 355 Total Receivables from financing activities (1) 15 € 2,575 € 2,569 € 2,641 € 2,624 Asset backed financing € 151 € 151 € 457 € 457 Notes 6,392 6,900 7,825 8,152 Borrowings from banks & Other debt 4,718 4,724 5,985 5,968 Lease liabilities 1,640 1,640 261 261 Total Debt 21 € 12,901 € 13,415 € 14,528 € 14,838 ______________________________________________________________________________________________________________________________ (1) Amount excludes receivables measured at FVPL 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 in 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, 2019 , €6,893 million and €7 million of notes were classified within Level 1 and Level 2, respectively. At December 31, 2018 , €8,145 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 adjustment using unobservable inputs is categorized within Level 3. At December 31, 2019 , €3,865 million and €859 million of Other Debt was classified within Level 2 and Level 3, respectively. At December 31, 2018 , €5,241 million and €988 million of Other Debt was classified within Level 2 and Level 3, respectively. The fair value of Lease liabilities classified within Level 3 of the fair value hierarchy has been estimated using discounted cash flow models that require significant adjustments using unobservable inputs. At December 31, 2019 , €1,640 million of Lease liabilities were classified within Level 3, of which €75 million were previously classified within Level 2. At December 31, 2018 , €75 million and €186 million of Lease liabilities were classified within Level 2 and Level 3, respectively. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
Related party transactions | 24. Related party transactions In accordance with IAS 24 - Related Party Disclosures , the related parties of the Group are determined as those 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 28.66 percent common shares shareholding interest and 41.74 percent voting power at December 31, 2019 ), which include Ferrari N.V. and CNH Industrial N.V. (“CNHI”). Related parties also include associates, joint ventures and unconsolidated subsidiaries of the Group, members of the FCA Board of Directors, executives with strategic responsibilities and certain members of their families. 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 purchase of powertrain systems for light commercial vehicles from CNHI; • the sale of powertrain and other components to the companies of CNHI; • the provision of services (accounting, payroll, tax administration, information technology and security) to the companies of CNHI; • the sale of vehicles to the leasing and renting subsidiaries of the joint ventures FCA Bank and Koç Fiat Kredi; • the sale of engines, other components and production systems to and the purchase of light commercial vehicles from Sevel S.p.A., a 50 percent owned joint operation with Groupe PSA, based in Atessa, Italy; • the purchase of light commercial vehicles and passenger cars from the joint venture Tofas; • the provision of services and the sale of goods to the GAC FCA JV; • the purchase of vehicles from, the provision of services and the sale of goods to the joint operation Fiat India Automobiles Private Limited; and • the sale of automotive lighting and automotive components, which was included within discontinued operations, to Ferrari N.V. 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 IFRS 9 – Financial Instruments . The amounts for significant transactions with related parties recognized in the Consolidated Income Statements were as follows: Years ended December 31, 2019 2018 2017 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 € 728 € 2,086 € 9 € — € 926 € 2,572 € 7 € — € 1,287 € 2,779 € 9 € — Sevel S.p.A. 205 1 5 — 402 1 4 — 392 — 5 — FCA Bank 1,686 23 (19 ) 52 1,611 28 (21 ) 56 1,715 26 (20 ) 36 GAC FCA JV 151 — (36 ) — 419 11 (49 ) — 569 — (105 ) — Fiat India Automobiles 2 — — — 2 — — — 25 1 — — Other 2 — — (1 ) 27 6 (4 ) 1 35 2 (4 ) 2 Total joint arrangements 2,774 2,110 (41 ) 51 3,387 2,618 (63 ) 57 4,023 2,808 (115 ) 38 Total associates 17 186 (1 ) — 30 229 (2 ) (1 ) 73 52 (3 ) (1 ) CNHI 357 332 11 — 501 326 6 — 526 329 2 — Ferrari N.V. 30 144 1 — 64 218 4 — 82 320 1 — Directors and Key Management — — 82 — — — 77 — — — 114 — Other 5 — 37 — 2 — 26 — 1 — 26 — Total CNHI, Ferrari, Directors and other 392 476 131 — 567 544 113 — 609 649 143 — Total unconsolidated 6 7 4 — 7 8 4 1 61 8 3 1 Total transactions with related parties € 3,189 € 2,779 € 93 € 51 € 3,991 € 3,399 € 52 € 57 € 4,766 € 3,517 € 28 € 38 Total for the Group € 108,187 € 93,164 € 6,455 € 1,005 € 110,412 € 95,011 € 7,318 € 1,056 € 105,730 € 89,710 € 7,177 € 1,345 Assets and liabilities from significant transactions with related parties were as follows: At December 31, 2019 2018 Trade and other Trade Other Asset- Debt (1) Trade Trade Other Asset- Debt (1) (€ million) Tofas € 18 € 171 € 39 € — € — € 11 € 176 € 40 € — € — Sevel S.p.A. 28 — 1 — 13 20 — 2 — 11 FCA Bank 278 139 151 141 181 395 258 232 449 28 GAC FCA JV 62 11 — — — 63 22 1 — — Fiat India Automobiles Limited 1 — 8 — — 0 — 6 — — Other — — — — — 19 1 — — — Total joint arrangements 387 321 199 141 194 508 457 281 449 39 Total associates 45 41 8 — — 34 33 10 — — CNHI 49 87 11 — — 53 71 12 — — Ferrari N.V. 12 49 — — — 25 45 3 — — Other 4 13 — — — 2 2 — — — Total CNHI, Ferrari N.V. and other 65 149 11 — — 80 118 15 — — Total unconsolidated subsidiaries 16 9 1 — 22 17 7 1 — 26 Total originating from related parties € 513 € 520 € 219 € 141 € 216 € 639 € 615 € 307 € 449 € 65 Total for the Group € 9,004 € 21,616 € 9,214 € 151 € 12,750 € 8,672 € 19,229 € 9,509 € 457 € 14,071 ______________________________________________________________________________________________________________________________ (1) Relating to Debt excluding Asset-backed financing, refer to Note, 21 Debt . Commitments and Guarantees As of December 31, 2019 , the Group had a take-or-pay commitment with Tofas with future minimum expected obligations as follows: (€ million) 2020 € 280 2021 € 257 2022 € 153 We provided guarantees to FCA Bank related to certain dealer financing arrangements FCA Bank has with dealers. The amount of the guarantees outstanding at December 31, 2019 was approximately €19 million . The fair value of these guarantees is immaterial due to the value of vehicles in the dealers' stock pledged to FCA. 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, 2019 2018 2017 (€ thousand) Directors (1) € 23,050 € 18,830 € 29,861 Total Compensation € 23,050 € 18,830 € 29,861 ______________________________________________________________________________________________________________________________ (1) Including the notional compensation cost arising from long-term share-based compensation granted to the Chairman, the Chief Executive Officer and the Chief Financial Officer. Refer to Note 18 , Share-based compensation , for information related to the special recognition award granted to the former 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 €59 million for 2019 ( €58 million in 2018 and €81 million in 2017 ), which, in addition to base compensation, included: • approximately €30 million in 2019 (approximately €28 million in 2018 and approximately €49 million in 2017 ) for share-based compensation expense; • approximately €6 million in 2019 (approximately €7 million in 2018 and approximately €8 million in 2017 ) for short-term employee benefits; and • approximately €7 million in 2019 ( €10 million in 2018 and €9 million in 2017 ) for pension and similar benefits. |
Guarantees granted, commitments
Guarantees granted, commitments and contingent liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Guarantees granted, commitments and contingent liabilities | dged guarantees on the debt or commitments of third parties totaling €8 million ( €7 million at December 31, 2018 ), as well as guarantees of €3 million on related party debt ( €3 million at December 31, 2018 ). 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, non-refundable 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, 2019 , €45 million (U.S. $50 million ) remained in deferred revenue. On June 28, 2019, FCA US entered into an amendment (the “Amendment”) to the SCUSA Agreement. The Amendment modified certain terms of the agreement, with the remaining term unchanged through to February 2023, and in connection with its execution, SCUSA made a one-time, nonrefundable, non-contingent, cash payment of U.S. $60 million ( €53 million ) to FCA US as part of a negotiated resolution of open matters. The amount was recognized within Selling, general and other costs in the Consolidated Income Statement for the year ended December 31, 2019 . The duration of the agreement remains unchanged to February 2023. 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, 2019 , the maximum potential amount of future payments required to be made in accordance with these wholesale financing arrangements was approximately €188 million (U.S. $211 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 nil at December 31, 2019 . Arrangements with key suppliers From time to time and 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, 2019 were as follows for the Group's continuing operations: (€ million) 2020 € 982 2021 € 594 2022 € 216 2023 € 27 2024 € 45 2025 and thereafter € — Other commitments, arrangements and contractual rights Regulatory emission credits During the year ended December 31, 2019 , FCA entered into multi-year non-cancellable agreements for purchases of regulatory emissions credits in various jurisdictions. At December 31, 2019 , these agreements represent total commitments of €1.2 billion after fulfillment of commitments during the year ended December 31, 2019 and the reduction in the commitments due to the CAFE civil fine rate (refer to Note 20 , Provisions ). The purchased credits are expected to be used for compliance years through 2022. FCA Bank joint venture agreement On July 19, 2019, FCA and Crédit Agricole Consumer Finance agreed to extend their 50:50 joint venture, FCA Bank, until December 31, 2024. The agreement will be automatically renewed unless notice of non-renewal is provided no later than three years before end of the term. A notice of non-renewal would trigger certain put and call rights. UAW Labor Agreement In December 2019, the UAW-represented workforce ratified a new four -year collective bargaining agreement that builds on the company’s commitment to grow its U.S. manufacturing operations by providing for total investments of U.S. $9 billion and the creation of 7,900 new or secured jobs. The provisions of the agreement continued certain opportunities for success-based compensation upon meeting certain quality and financial performance metrics. The agreement, which covers about 49,200 employees, included a ratification bonus of U.S. $9,000 for “Traditional” and “In-progression” employees and U.S. $3,500 for temporary employees, as well as lump-sum payments, both of which are in lieu of further wage increases, totaling U.S. $499 million ( €446 million ) that were paid to UAW members on December 27, 2019. Lump sum payments made in lieu of future wage increases will be amortized over the contract period. Italian labor agreement In March 2019, the Group renewed its labor agreement with Italian trade unions for Italian employees, which had previously expired on December 31, 2018. The agreement is valid for the period 2019-2022 and applies to the Group's 66,000 employees in Italy, primarily providing for a 2 percent annual increase in contractual compensation and an enhancement of the annual performance-based bonus linked to the achievement of productivity and efficiency targets forming part of the World Class Manufacturing (“WCM”) program. In April 2015, the previous four -year compensation agreement was signed by FCA companies within the automobiles business in Italy. The compensation agreement was subsequently included into the 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 incentivized 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 for the EMEA region, including the activities of the premium brands Alfa Romeo and Maserati. A total of €75 million , €72 million and €105 million related to the additional variable elements above was recorded as an expense included within Net profit from continuing operations for the years ended December 31, 2019 , 2018 and 2017 , respectively. Canada labor agreement FCA entered into a 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 agreement expires September 2020. 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 €5 million and a total of €3 million has been recognized within Provisions related to these obligations as of December 31, 2019 ( €160 million and €50 million as of December 31, 2018, respectively). 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 Putative class action lawsuits were filed in March 2018 against FCA US in the U.S. District Courts for the Southern District of Florida and the Eastern District of Michigan, asserting claims under federal and state laws alleging economic loss due to Takata airbag inflators installed in certain of our vehicles. We are vigorously defending against this action and 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. Emissions Matters On January 10, 2019, we announced that FCA US had reached final settlements on civil environmental and consumer claims with the U.S. Environmental Protection Agency (“EPA”), U.S. Department of Justice (“DoJ”), the California Air Resources Board, the State of California, 49 other States and U.S. Customs and Border Protection, for which we accrued €748 million during the year ended December 31, 2018. Approximately €350 million of the accrual was related to civil penalties to resolve differences over diesel emissions requirements. A portion of the accrual was attributable to settlement of a putative class action on behalf of consumers in connection with which FCA US agreed to pay an average of $2,800 per vehicle to eligible customers affected by the recall. That settlement received final court approval on May 3, 2019. Nevertheless, we continue to defend individual claims from approximately 3,200 consumers that have exercised their right to opt out of the class action settlement and pursue their own individual claims against us (the “Opt-Out Litigation”). We have engaged in further discovery in the Opt-Out Litigation and participated in court-sponsored settlement conferences, but have reached settlement agreements with only a very small number of these remaining plaintiffs. As of December 31, 2019, our best estimate of a probable loss has been included within the provision previously recognized. In the U.S., we remain subject to diesel emissions-related investigations by the U.S. Securities and Exchange Commission (the “SEC”) and the DoJ, Criminal Division. In September 2019, the DoJ filed criminal charges against an employee of FCA US for, among other things, fraud, conspiracy, false statements and violations of the Clean Air Act primarily in connection with efforts to obtain regulatory approval of the vehicles that were the subject of the civil settlements described above. We continue to cooperate with these investigations and present FCA’s positions on concerns raised by these governmental authorities. We may also engage in discussions in an effort to reach an appropriate resolution of these investigations. At this time, we cannot predict whether or when any settlement may be reached or the ultimate outcome of these investigations and we are unable to reliably evaluate the likelihood that a loss will be incurred or estimate a range of possible loss. We also remain subject to a number of related private lawsuits (the “Non Opt-Out Litigation”). We have also received inquiries from other regulatory authorities in a number of jurisdictions as they examine the on-road tailpipe emissions of several automakers’ vehicles and, when jurisdictionally appropriate, we continue to cooperate with these governmental agencies and authorities. 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 in connection with their review of several of our vehicles. We also initially responded to inquiries from the German authority, the Kraftfahrt-Bundesamt (“KBA”), regarding emissions test results for our vehicles, 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, 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 properly performed. In December 2019, the MIT notified us that the Dutch Ministry of Infrastructure and Water Management (“I&W”) had been communicating with the MIT regarding certain irregularities allegedly found by the RDW and the Dutch Center of Research TNO in the emission levels of certain Jeep Grand Cherokee Euro 5 models and a vehicle model of another OEM that contains a Euro 6 diesel engine supplied by us. In January 2020, the Dutch Parliament published a letter from the I&W summarizing the conclusions of the RDW regarding those vehicles and engines and indicating an intention to order a recall and report their findings to the Public Prosecutor, the EC and other Member States. We are in the process of providing a response to the MIT and engaging with the RDW to present our positions and cooperate to reach an appropriate resolution of this matter. In addition, at the request of the French Consumer Protection Agency, the Juge d’Instruction du Tribunal de Grande Instance of Paris is investigating diesel vehicles of a number of automakers including FCA, regarding whether the sale of those vehicles violated French consumer protection laws. In December 2018, the Korean Ministry of Environment (“MOE”) announced its determination that approximately 2,400 FCA vehicles imported into Korea during 2015, 2016 and 2017 were not emissions compliant and that the vehicles with a subsequent update of the emission control calibrations voluntarily performed by FCA, although compliant, would have required re-homologation of the vehicles concerned. In May 2019, the MOE revoked certification of the above-referenced vehicles and announced an administrative fine for an amount not material to the Group. We have appealed the MOE’s decision. Our subsidiary in Seoul, Korea is also cooperating with local criminal authorities in connection with their review of this matter and with the Korean Fair Trade Commission regarding a purported breach of the Act on Fair Labeling and Advertisement in connection with the subject vehicles. The results of the unresolved governmental inquiries and private litigation cannot be predicted at this time and these inquiries and litigation may lead to further enforcement actions, penalties or damage awards, any of which may have a material adverse effect on our business, financial condition and results of operations. It is also possible that these matters and their ultimate resolution may adversely affect our reputation with consumers, which may negatively impact demand for our vehicles and consequently could have a material adverse effect on our business, financial condition and results of operations. At this stage, we are unable to evaluate the likelihood that a loss will be incurred with regard to the unresolved inquiries and Non Opt-Out Litigation or estimate a range of possible loss. U.S. Sales Reporting Investigations On July 18, 2016, we confirmed that the SEC 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 DoJ. 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. On September 27, 2019, the SEC announced the resolution of its investigation which included our agreement to pay an amount that is not material to the Group. We have also cooperated with a DoJ investigation into the same issues, the outcome of which remains uncertain. Any resolution of that matter may involve the payment of penalties and other sanctions. At this time, we are unable to reliably evaluate the likelihood that a loss will be incurred or estimate a range of possible loss in connection with that investigation. As previously reported, two putative securities class action lawsuits were filed 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. These lawsuits were consolidated into a single action and on October 4, 2018, we entered into an agreement in principle to settle the consolidated litigation, subject to court approval, for an amount that is not material to the Group. On June 5, 2019, the Court granted final approval to this settlement. National Training Center In connection with an on-going government investigation into matters at the UAW-Chrysler National Training Center, the DoJ 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. Several of the individual defendants have entered guilty pleas and some have claimed in connection with those pleas that they conspired with FCA US in violation of the Taft-Hartley Act. We continue to cooperate with this investigation and are in discussions with the DOJ about a potential resolution of its investigation. The outcome of those discussions is uncertain; however, any resolution may involve the payment of penalties and other sanctions. At this time, we cannot predict whether or when any settlements may be reached or, if no settlement is reached, the ultimate outcome of any litigation. As such, we are unable to reliably evaluate the likelihood that a loss will be incurred or estimate a range of possible loss. 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. Those actions have been dismissed both at the trial court stage and on appeal. Three plaintiffs in these lawsuits also filed charges alleging unfair labor practices with the U.S. National Labor Relations Board (the “Board”). The Board issued a complaint regarding these allegations and is seeking a cease and desist order as well as the posting of a notification with respect to the alleged practices. At this stage, we are unable to reliably evaluate the likelihood that a loss will be incurred or estimate a range of possible loss. General Motors Litigation On November 20, 2019, General Motors LLC and General Motors Company (collectively, “GM”) filed a lawsuit in the U.S. District Court for the Eastern District of Michigan against FCA US, FCA NV and certain individuals, claiming violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act, unfair competition and civil conspiracy in connection with allegations that FCA US paid bribes to UAW officials that corrupted the bargaining process with the UAW and as a result FCA US enjoyed unfair labor costs and operational advantages that caused harm to GM. GM also claimed that FCA US had made concessions to the UAW in collective bargaining that the UAW was then able to extract from GM through pattern bargaining which increased costs to GM in an effort to force a merger between GM and FCA NV. We are defending vigorously against this action and, on January 24, 2020, we filed a motion to dismiss all claims. However, at this stage, we are unable to reliably evaluate the likelihood that a loss will be incurred or estimate a range of possible loss. U.S. Import Duties Historically, we have paid a 2.5 percent duty on Ram ProMaster City light commercial vehicles imported into the U.S. as passenger vehicles and later converted into cargo vans rather than the 25 percent duty applicable to vehicles that are imported into the U.S. as cargo vans. In litigation between a competitor and U.S. Customs and Border Protection (“CBP”) involving similar vehicles, the U.S. Court of Appeals for the Federal Circuit (the “Federal Circuit”) ruled in June 2019 that vehicles previously imported by the competitor are subject to the 25 percent duty. In October 2019, the Federal Circuit declined to rehear the case and the competitor announced its intent to appeal the matter to the U.S. Supreme Court. We believe there are facts that distinguish our case from that of the competitor. However, if CBP prevails against the competitor, it may seek to recover increased duties for our prior imports, plus interest, and may assert a claim for penalties. At this stage, we are unable to reliably evaluate the likelihood that a loss will be incurred or estimate a range of possible loss. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Equity | re capital At December 31, 2019 , the authorized share capital of FCA was 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, 2019 , fully paid-up share capital of FCA amounted to € 20 million (€ 19 million at December 31, 2018 ) and consisted of 1,567,519,274 common shares and of 408,941,767 special voting shares, all with a par value of €0.01 each ( 1,550,617,563 common shares and 408,941,767 special voting shares, all with a par value of €0.01 each at December 31, 2018 ). 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, 2019 : Common Shares Special Voting Shares Total Balance at January 1, 2019 1,550,617,563 408,941,767 1,959,559,330 Shares issued to Key management 16,901,711 — 16,901,711 Balance at December 31, 2019 1,567,519,274 408,941,767 1,976,461,041 Long Term Incentive Plans On October 29, 2014, the Board of Directors of FCA (“Board of Directors”) resolved to authorize the issuance of up to a maximum of 90 million common shares under the equity incentive plan and the long-term incentive program which had been adopted before the closing of the 2014 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 ). On December 19, 2018, the Board of Directors resolved to allocate up to a maximum of 50 million common shares under the 2019 - 2021 LTIP (refer to Note 18 , Share-based compensation ), under which equity awards can be granted to eligible individuals. Any issuance of shares during the period from 2019 to 2021 is subject to the satisfaction of certain performance and retention requirements and any issuances to directors are subject to FCA shareholders' approval (refer to Note 18 , Share-based compensation ). Pursuant to the Articles of Association, the Board of Directors is irrevocably authorized to issue shares (common and special voting shares) and to grant rights to subscribe for shares in the capital of the Company. This authorization is up to a maximum aggregate amount of shares as set out in the Articles of Association, as amended from time to time, and limits or excludes the right of pre-emption with respect to common shares. The Board of Directors' authorization is for a period of five years from October 12, 2014, and expired on October 11, 2019. On April 12, 2019, the Annual General Meeting of Shareholders (“AGM”) resolved to authorize, under certain conditions, the Board of Directors to issue common and special voting shares, to grant rights to subscribe for common and special voting shares, and to limit or exclude pre-emptive rights for common shares. This authorization is for a period of eighteen months up to and including October 11, 2020, starting from the date on which the current authorization expired, October 12, 2019. Furthermore, the AGM renewed the existing authorization of the Board of Directors, for a period of eighteen months from the date of the AGM, to repurchase up to a maximum of 10 percent of the Company’s common shares issued as of the date of the AGM. Pursuant to the authorization, which does not entail any obligation for the Company but is designed to provide additional flexibility, the Board of Directors may repurchase common shares in compliance with applicable regulations, subject to certain maximum and minimum price thresholds. Other reserves: Other reserves comprised the following: • legal reserves of €14,206 million at December 31, 2019 ( €13,842 million at December 31, 2018 ) determined in accordance with Dutch law and primarily relating to development expenditures capitalized by subsidiaries and their earnings, subject to certain restrictions on distributions to FCA; • capital reserves of €6,034 million at December 31, 2019 ( €5,920 million at December 31, 2018 ); • retained earnings, after the separation of the legal reserve, of positive €2,286 million ( positive €1,836 million at December 31, 2018 ); and • profit attributable to owners of the parent of € 6,622 million for the year ended December 31, 2019 (€ 3,608 million for the year ended December 31, 2018 ). Other comprehensive income Other comprehensive income was as follows: Years ended December 31, 2019 2018 2017 (€ million) Items that will not be reclassified to the Consolidated Income Statement in subsequent periods: (Losses)/gains on remeasurement of defined benefit plans € (63 ) € 317 € (72 ) Share of gains/(losses) on remeasurement of defined benefit plans for equity method investees (5 ) — 2 Gains/(losses) on equity instruments measured at fair value through other comprehensive income 6 (4 ) 14 Items relating to discontinued operations (9 ) 1 8 Total Items that will not be reclassified to the Consolidated Income Statement (B1) (71 ) 314 (48 ) Items that may be reclassified to the Consolidated Income Statement in subsequent periods: Gains/(Losses) on net investment hedging instruments — — — Gains/(losses) on cash flow hedging instruments arising during the period (269 ) 99 47 Gains/(losses) on cash flow hedging instruments reclassified to the Consolidated Income Statement 78 (108 ) 82 Total Gains/(losses) on cash flow hedging instruments (191 ) (9 ) 129 Foreign exchange gains/(losses) 268 126 (1,982 ) Share of Other comprehensive income/(loss) for equity method investees arising during the period (16 ) (77 ) (94 ) Share of Other comprehensive income/(loss) for equity method investees reclassified to the Consolidated Income Statement 1 (26 ) (27 ) Total Share of Other comprehensive (loss)/income for equity method investees (15 ) (103 ) (121 ) Items relating to discontinued operations 9 (91 ) 58 Total Items that may be reclassified to the Consolidated Income Statement (B2) 71 (77 ) (1,916 ) Total Other comprehensive income (B1)+(B2)=(B) — 237 (1,964 ) Tax effect 57 (82 ) (30 ) Tax effect - discontinued operations — 1 (1 ) Total Other comprehensive income, net of tax € 57 € 156 € (1,995 ) Gains and losses arising from the remeasurement of defined benefit plans primarily 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, 2019 2018 2017 Pre-tax Tax Net Pre-tax Tax Net Pre-tax Tax Net (€ million) (Losses)/gains on remeasurement of defined benefit plans € (63 ) € 7 € (56 ) € 317 € (76 ) € 241 € (72 ) € (18 ) € (90 ) Gains/(Losses) on cash flow hedging instruments (191 ) 50 (141 ) (9 ) (6 ) (15 ) 129 (12 ) 117 Gains/(losses) on equity instruments measured at fair value through other comprehensive income 6 — 6 (4 ) — (4 ) 14 — 14 Foreign exchange (losses)/gains 268 — 268 126 — 126 (1,982 ) — (1,982 ) Share of Other comprehensive income/(loss) for equity method investees (20 ) — (20 ) (103 ) — (103 ) (119 ) — (119 ) Items relating to discontinued operations — — — (90 ) 1 (89 ) 66 (1 ) 65 Total Other comprehensive income € — € 57 € 57 € 237 € (81 ) € 156 € (1,964 ) € (31 ) € (1,995 ) 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. Dividends proposed, declared and paid The Board of Directors intends to recommend to the Annual General Meeting of Shareholders an annual ordinary dividend distribution to holders of FCA common shares of €0.70 per common share (a total distribution of approximately €1.1 billion ). The distribution, from the Company's 2019 profits, will be subject to the approval by the Annual General Meeting of Shareholders, which is scheduled to be held on April 16, 2020 . If the dividend proposal is approved by shareholders, FCA common shares will be traded ex-dividend as of April 20, 2020 at the NYSE and the MTA. In compliance with the listing requirements of the NYSE and the MTA, the dividend record date will be April 21, 2020 . The payment of the dividend is expected to be on May 5, 2020 . Prior to the 2018 dividend that was declared and paid, no dividends have been declared or paid by FCA in the preceding three years. Proposed dividends on ordinary shares are not recognized as a liability as at December 31, 2019 . On April 12, 2019, the AGM approved the payment of an ordinary annual dividend of €0.65 per common share, equivalent to an aggregate distribution of approximately €1 billion , which was paid on May 2, 2019 to shareholders of record on both MTA and NYSE on April 24, 2019, with an ex-dividend date of April 23, 2019. On May 2, 2019, FCA announced that its Board of Directors had approved an extraordinary cash distribution of €1.30 per common share, equivalent to a total distribution of approximately €2 billion , paid on May 30, 2019 to shareholders of record on May 21, 2019, with an ex-dividend date of May 20, 2019. 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 2014 Merger, FCA issued 408,941,767 special voting shares with a nominal value of €0.01 each to those eligible shareholders of Fiat S.p.A. who had elected to participate in the loyalty voting structure upon completion of the 2014 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 an FCA shareholder in the Loyalty Register. Only a minimal dividend accrues to the special voting shares, which is 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, 2019 | |
Earnings per share [abstract] | |
Earnings per share | earnings per share The basic earnings per share for the years ended December 31, 2019 , 2018 and 2017 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. The following tables provide the amounts used in the calculation of basic earnings per share: Years ended December 31, 2019 2018 2017 Net profit attributable to owners of the parent million € 6,622 € 3,608 € 3,491 Weighted average number of shares outstanding thousand 1,564,114 1,548,439 1,535,988 Basic earnings per share € € 4.23 € 2.33 € 2.27 Years ended December 31, 2019 2018 2017 Net profit from continuing operations attributable to owners of the parent million € 2,694 € 3,323 € 3,281 Weighted average number of shares outstanding thousand 1,564,114 1,548,439 1,535,988 Basic earnings per share from continuing operations € € 1.72 € 2.15 € 2.14 Years ended December 31, 2019 2018 2017 Net profit from discontinued operations attributable to owners of the parent million € 3,928 € 285 € 210 Weighted average number of shares outstanding thousand 1,564,114 1,548,439 1,535,988 Basic earnings per share from discontinued operations € € 2.51 € 0.18 € 0.14 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, 2019 , 2018 and 2017 (Note 18 , Share-based compensation ), as determined using the treasury stock method. For the year ended December 31, 2019, the theoretical effect that would arise if some of the RSU awards granted in 2018 and some of the PSU TSR awards granted in 2019 (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 year ended December 31, 2018 . 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. The following tables provide the amounts used in the calculation of diluted earnings per share: Years ended December 31, 2019 2018 2017 Net profit attributable to owners of the parent million € 6,622 € 3,608 € 3,491 Weighted average number of shares outstanding thousand 1,564,114 1,548,439 1,535,988 Number of shares deployable for share-based compensation thousand 6,736 19,400 20,318 Weighted average number of shares outstanding for diluted earnings per share thousand 1,570,850 1,567,839 1,556,306 Diluted earnings per share € € 4.22 € 2.30 € 2.24 Years ended December 31, 2019 2018 2017 Net profit from continuing operations attributable to owners of the parent million € 2,694 € 3,323 € 3,281 Weighted average number of shares outstanding for diluted earnings per share thousand 1,570,850 1,567,839 1,556,306 Diluted earnings per share from continuing operations € € 1.71 € 2.12 € 2.11 Years ended December 31, 2019 2018 2017 Net profit from discontinued operations attributable to owners of the parent million € 3,928 € 285 € 210 Weighted average number of shares outstanding for diluted earnings per share thousand 1,570,850 1,567,839 1,556,306 Diluted earnings per share from discontinued operations € € 2.50 € 0.18 € 0.13 |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2019 | |
Operating segments [Abstract] | |
Segment reporting | rtable 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 , or whose information is considered useful for the users of the financial statements. The Group's reportable segments include the four regional mass-market vehicle operating segments (North America, LATAM, APAC and EMEA) and the Maserati global luxury brand operating segment, which are described as follows: • North America designs, engineers, develops, manufactures and distributes vehicles. North America 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 the dealer network and 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. 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. During 2019, our previously reported “NAFTA” segment was renamed “North America” in response to the expected ratification of the United States–Mexico–Canada Agreement (“USMCA”). Other than the change of name, no other changes were made to the segment. The results of our Magneti Marelli business were previously reported within the Components segment along with our industrial automation systems design and production business and our cast iron and aluminum components business. Following the classification of Magneti Marelli as a discontinued operation for the years ended December 31, 2019, 2018 and 2017 (refer to Note 3 , Scope of consolidation ), the remaining activities within Components segment are no longer considered a separate reportable segment as defined by IFRS 8 and are reported within “Other activities” below. Other activities include the results of our industrial automation systems design and production business and our cast iron and aluminum components business, as well as the activities and businesses that are not operating segments under IFRS 8 – Operating Segments. Refer to Note 3, Scope of consolidation for detail on the announced sale of Teksid's cast iron automotive components business). 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, 2019 , 2018 and 2017 : Mass-Market Vehicles 2019 North America LATAM APAC EMEA Maserati Other activities Unallocated items & eliminations FCA (€ million) Revenues € 73,357 € 8,461 € 2,814 € 20,571 € 1,603 € 3,009 € (1,628 ) € 108,187 Revenues from transactions with other segments (20 ) (12 ) (52 ) (105 ) (11 ) (1,428 ) 1,628 — Revenues from third party customers € 73,337 € 8,449 € 2,762 € 20,466 € 1,592 € 1,581 € — € 108,187 Net profit from continuing operations € 2,700 Tax expense € 1,321 Net financial expenses € 1,005 Adjustments: Impairment expense and supplier obligations (1)(5) € 98 € € € 441 € 210 € € 793 € 1,542 Restructuring costs, net of reversals (2)(5) € 23 € 127 € € (9 ) € 3 € € 10 € 154 Gains on disposal of investments € € € € € € (15 ) € € (15 ) Brazilian indirect tax - reversal of liability/recognition of credits (3) € € (164 ) € € € € € € (164 ) Other (4)(5) € 45 € 4 € (4 ) € (7 ) € 8 € 7 € 72 € 125 Adjusted EBIT € 6,690 € 501 € (36 ) € (6 ) € (199 ) € (173 ) € (109 ) € 6,668 Share of profit of equity method investees € € € (126 ) € 318 € € 15 € 1 € 208 ______________________________________________________________________________________________________________________________ (1) Impairment expense recognized in the year ended December 31, 2019 for EMEA, Maserati and also not allocated to a specific region. Additionally, impairment expense recognized in previous quarters in North America and Maserati, as well as supplier obligations of €6 million in EMEA. (2) Restructuring costs, mainly related to LATAM, EMEA and North America, primarily includes €76 million of write-down of Property, plant and equipment and €118 million related to the recognition of provisions for restructuring, partially offset by the reversal of previously recorded provisions, primarily €46 million in EMEA. (3) Gains in relation to the recognition of credits for amounts paid in prior years in relation to indirect taxes in Brazil (refer to Note 15 , Trade and other receivables in the Consolidated Financial Statements). (4) Other costs, primarily relating to litigation proceedings (refer to Note 25 , Guarantees granted, commitments and contingent liabilities in the Consolidated Financial Statements). (5) During the year ended December 31, 2019 impairment charges of €1,589 million were recorded, classified within Impairment expense and supplier obligations, Restructuring costs, net of reversals and Other above. These comprised €636 million of Property, plant and equipment (refer to Note 11, Property, plant and equipment in the Consolidated Financial Statements included elsewhere in this report) and €953 million of Other intangible assets (refer to Note 10, Other intangible assets in the Consolidated Financial Statements included elsewhere in this report). Mass-Market Vehicles 2018 North America LATAM APAC EMEA Maserati Other activities Unallocated items & eliminations FCA (€ million) Revenues € 72,384 € 8,152 € 2,703 € 22,815 € 2,663 € 2,888 € (1,193 ) € 110,412 Revenues from transactions with other segments (31 ) (10 ) (57 ) (101 ) (18 ) (976 ) 1,193 — Revenues from third party customers € 72,353 € 8,142 € 2,646 € 22,714 € 2,645 € 1,912 € — € 110,412 Net profit from continuing operations € 3,330 Tax expense € 778 Net financial expenses € 1,056 Adjustments: Charge for U.S. diesel emission matters (1) € € € € € € € 748 € 748 Impairment expense and supplier obligations (2) € 16 € 8 € 11 € 307 € € € 11 € 353 China inventory impairment (3) € € € 129 € € € € € 129 Costs for recall, net of recovery - airbag inflators (4) € 114 € € € € € € € 114 U.S. special bonus payment (5) € 109 € € € € € 2 € € 111 Restructuring costs, net of reversals (6) € € (28 ) € — € 123 € — € 8 € — € 103 Employee benefits settlement losses (7) € 92 € € € € € € € 92 Port of Savona (Italy) fire and flood (8) € € — € — € 2 € 11 € 30 € — € 43 (Recovery of)/costs for recall - contested with supplier (9) € (50 ) € € € € € € € (50 ) North America capacity realignment (10) € (60 ) € — € — € — € — € — € € (60 ) Brazil indirect tax - reversal of liability/recognition of credits (11) € € (54 ) € € € € (18 ) € € (72 ) Other € 1 € — € — € 30 € — € 12 € 20 € 63 Adjusted EBIT € 6,230 € 359 € (296 ) € 406 € 151 € (40 ) € (72 ) € 6,738 Share of profit of equity method investees € — € — € (67 ) € 284 € — € 22 € 1 € 240 ______________________________________________________________________________________________________________________________ (1) A provision of €748 million was recognized for costs related to final settlements reached on civil, environmental and consumer claims related to U.S. diesel emissions matters. Refer to Note 25 , Guarantees granted, commitments and contingent liabilities ; (2) Impairment expense of €297 million and supplier obligations of €56 million , primarily in EMEA, resulting from changes in product plans in connection with the 2018-2022 business plan; (3) Impairment of inventory in connection with acceleration of new emissions standards in China and slower than expected sales. Refer to Note 14 , Inventories ; (4) Accrual in relation to costs for recall campaigns related to Takata airbag inflators, net of recovery; (5) Special bonus payment of $2,000 to approximately 60,000 employees in North America as a result of the U.S. Tax Cuts and Jobs Act; (6) Restructuring costs primarily consisting of €123 million in EMEA, partially offset by the reversal of €28 million of previously recorded restructuring costs in LATAM; (7) Charges arising on settlement of a portion of a supplemental retirement plan and an annuity buyout in North America. Refer to Note 19 , Employee benefits liabilities ; (8) Costs in relation to the Port of Savona (Italy) flood and fire; (9) Recovery of amounts accrued in 2016 in relation to costs for recall contested with a supplier; (10) Reduction of costs in relation to the North America capacity realignment which were accrued in 2015; (11) Credits recognized related to indirect taxes in Brazil. Mass-Market Vehicles 2017 North America LATAM APAC EMEA Maserati Other activities Unallocated items & eliminations FCA (€ million) Revenues € 66,094 € 8,004 € 3,250 € 22,700 € 4,058 € 3,248 € (1,624 ) € 105,730 Revenues from transactions with other segments (47 ) (10 ) (32 ) (116 ) (21 ) (1,398 ) 1,624 — Revenues from third party customers € 66,047 € 7,994 € 3,218 € 22,584 € 4,037 € 1,850 € — € 105,730 Net profit from continuing operations € 3,291 Tax expense € 2,588 Net financial expenses € 1,345 Adjustments: Reversal of a Brazilian indirect tax liability (1) € € € € € € € € (895 ) Impairment expense (2) € € 77 € € 142 € € € € 219 Recall campaigns - airbag inflators (3) € 29 € 73 € € € € € € 102 Restructuring costs/(reversal) (4) € (1 ) € 75 € € € € 11 € 1 € 86 Deconsolidation of Venezuela (5) € € 42 € € € € € € 42 North America capacity realignment (6) € (38 ) € € € € € € € (38 ) Tianjin (China) port explosion, net of insurance recoveries (7) € € € (68 ) € € € € € (68 ) Gain on disposal of investments (8) € € € € € € (27 ) € (49 ) € (76 ) Other € (1 ) € € 1 € € € 12 € 1 € 13 Adjusted EBIT € 5,227 € 151 € 172 € 735 € 560 € (98 ) € (138 ) € 6,609 Share of profit of equity method investees € — € — € 75 € 306 € — € 18 € 1 € 400 ______________________________________________________________________________________________________________________________ (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 North America 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 . 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, 2019 2018 (€ million) North America (1) € 40,097 € 35,493 Italy 10,711 11,478 Brazil 4,064 4,125 Poland 684 937 Serbia 495 571 Other countries 1,320 1,456 Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) € 57,371 € 54,060 ______________________________________________________________________________________________________________________________ (1) Refers to the geographical area and not our North America reporting segment. |
Explanatory notes to the consol
Explanatory notes to the consolidated statements of cash flows | 12 Months Ended |
Dec. 31, 2019 | |
Statement of cash flows [abstract] | |
Explanatory notes to the Consolidated Statement of Cash Flows | ash items For the year ended December 31, 2019, Other non-cash items of €1,541 million primarily included €1,589 million impairment expense (refer to Note 2, Basis of preparation - Use of estimates ). For the year ended December 31, 2018, Other non-cash items of €129 million primarily included €297 million of impairments, partially offset by €240 million related to the revaluation of investments accounted for by using the equity method and other amounts that were not individually material. For the year ended December 31, 2017, Other non-cash items of €(197) million primarily included €400 million related to the revaluation of investments accounted for by using the equity method, partially offset by €219 million of impairments and other amounts that were not individually material. Operating activities For the year ended December 31, 2019, net cash from operating activities of €10,462 million was primarily the result of: (i) net profit from continuing operations of €2,700 million adjusted to: (1) to add back €5,445 million for depreciation and amortization expense, (2) €1,589 million of impairments (refer to Note 2, Basis of preparation - Use of estimates ), (3) a €864 million change in deferred taxes, (3) a €1,744 million net decrease in provisions, including €0.5 billion of payments for civil, environmental and consumer claims related to U.S. diesel emissions matters accrued in 2018, and warranty and incentive payments which exceeded the related accruals in North America, (4) €308 million of cash used by operating activities of discontinued operations and (5) for the positive effect of the change in working capital of €1,869 million , which was primarily driven by (i) an increase of €2,020 million in trade payables primarily in North America, largely due to capital expenditures, (ii) a decrease of €1,017 million in inventories primarily in EMEA and LATAM, which were partially offset by (iii) an increase of €1,268 million in other receivables net of other liabilities and payables, reflecting primarily higher indirect tax receivables in LATAM and lump sum payments of €446 million (U.S. $499 million ) made in relation to the ratification of the UAW four-year collective bargaining agreement (refer to Note 25, Guarantees granted, commitments and contingent liabilities ). For the year ended December 31, 2018, net cash from operating activities of €9,948 million was primarily the result of: (i) net profit from continuing operations of €3,330 million adjusted to add back €5,507 million for depreciation and amortization expense; in addition to (ii) a net increase of €842 million in provisions primarily due to a provision of €748 million recognized for costs related to final settlements reached on civil, environmental and consumer claims related to U.S. diesel emissions matters; (iii) an increase of €457 million in net deferred tax assets, mainly due to increased deferred tax liabilities in North America; and (iv) cash flow from operating activities of discontinued operations for €484 million . These positive impacts were partially offset by negative effect of the change in working capital of €1,035 million primarily driven by (a) decrease in trade payables of €1,240 million related to lower production volumes in EMEA in December 2018 compared to the same month in 2017 in addition to lower capital expenditure, (b) decrease in other liabilities and payables net of receivables of €1,213 million mainly as a result of higher indirect tax receivable in LATAM, decreased income tax payable in North America and lower advances from customers in LATAM and EMEA, and (c) decrease in inventories of €1,399 million due to inventory management actions across all the regions. For the year ended December 31, 2017, net cash from operating activities of €10,385 million was primarily the result of: (i) net profit from continuing operations of €3,291 million adjusted to add back €5,474 million for depreciation and amortization expense, in addition to a net decrease of €1,075 million in deferred tax assets mainly related to LATAM, and other non-cash items of €197 million ; (ii) €102 million dividends received mainly from our equity method investments; and (iii) the negative effect of the change in working capital of €458 million primarily driven by (a) €1,596 million increase in inventories related to ramp-up of new models at year end, including the Alfa Romeo Stelvio and the Jeep Wrangler, as well as volume increases in LATAM and Maserati, and (b) increase in trade receivables of €157 million , which were partially offset by (c) increase in trade payables of €937 million primarily related to increased production volumes in North America and LATAM in the fourth quarter of 2017 as compared to the same period in 2016, and (d) a €358 million positive impact from increases in other liabilities, payables and receivables, primarily related to tax payables and higher deferred revenue. Refer to Note 2, Basis of preparation - Change in accounting policy - IFRIC 23 for detail on the reclassification of the 2018 and 2017 comparatives. Investing activities For the year ended December 31, 2019, net cash used in investing activities of €2,985 million was primarily the result of (i) €8,385 million of capital expenditures, including €2,889 million of capitalized development expenditures, and (ii) €155 million of cash flows used by discontinued operations. These were partially offset by (iii) €5,774 million proceeds from the disposal of Magneti Marelli, net of €426 million in cash and cash equivalents held by Magneti Marelli at the time of the disposal, and (iv) a decrease in receivables from financing activities of €336 million , mainly attributable to lower volumes of financing in EMEA partially offset by an increase in LATAM. For the year ended December 31, 2018, net cash used in investing activities of €6,738 million was primarily the result of (i) €5,392 million of capital expenditures, including €2,079 million of capitalized development expenditures primarily related to North America and EMEA, that supported investments in existing and future products, including investments in electrification and autonomous driving, and (ii) a €676 million net increase in receivables from financing activities primarily related to the increase in the lending portfolio of the financial services activities in LATAM, EMEA and in APAC. For the year ended December 31, 2017, net cash used in investing activities of €9,296 million was primarily the result of (i) €8,105 million of capital expenditures, including €2,431 million of capitalized development expenditures primarily related to North America and EMEA, that supported investments in existing and future products, including investments in electrification and autonomous driving, and (ii) an €836 million net increase in receivables from financing activities primarily related to the increase in the lending portfolio of the financial services activities of the Group in China and Europe, which were partially offset by (iii) proceeds received of €144 million from the sale of FCA's investment in CNHI, which were recognized in the line Change in securities within the Statement of Cash Flows. Financing activities For the year ended December 31, 2019 , net cash used in financing activities of €5,827 million resulted primarily from dividends paid of €3,056 million , including the extraordinary dividend of €2,038 million related to the disposal of Magneti Marelli, the repayment of debt in Brazil of €684 million , and the repayment of notes at maturity with a principal amount of €1,480 million that were issued through the MTN Programme. For the year ended December 31, 2018, net cash used in financing activities of €2,785 million was primarily the result of; (i) the voluntary prepayment in November 2018 of the outstanding principal and accrued interest of U.S. $1,009 million ( €893 million ) of FCA US's tranche B term loan maturing December 31, 2018 (the “Tranche B Term Loan due 2018”); and (ii) the repayment at maturity of two notes under the Medium Term Note Programme (“MTN Programme”, previously referred to as the Global Medium Term Note Programme, or “GMTN” Programme), one with a principal amount of €1,250 million and one with a principal amount of €600 million . For the year ended December 31, 2017, net cash used in financing activities was primarily the result of: (i) the voluntary prepayment in February 2017 of the outstanding principal and accrued interest of U.S. $1,826 million (€ 1,721 million ) of FCA US's Tranche B Term Loan due 2017; (ii) the repayment of three notes 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; and (iii) the repayment of other long-term debt, net of proceeds, of a principal amount of €889 million . The following is a reconciliation of liabilities arising from financing activities for the year ended December 31, 2019 and 2018 : Years ended December 31, 2019 2018 (€ million) Total Debt at January 1 (1) € 15,597 € 17,971 Add: Derivative (assets)/liabilities and collateral at January 1 (151 ) (206 ) Total Liabilities from financing activities at January 1 € 15,446 € 17,765 Cash flows (3,096 ) (2,795 ) Foreign exchange effects 9 (226 ) Fair value changes 327 (136 ) Changes in scope of consolidation 43 (3 ) Transfer to (Assets)/Liabilities held for sale (82 ) (177 ) Other changes (2) 432 (51 ) Total Liabilities from financing activities at December 31 € 13,079 € 14,377 Less: Derivative (assets)/liabilities and collateral at December 31 178 (151 ) Total Debt at December 31 € 12,901 € 14,528 ______________________________________________________________________________________________________________________________ (1) Total debt at January 1, 2019 has been adjusted to include Lease liabilities of €1,069 million from the adoption of IFRS 16. Refer to Note 2. , Basis of preparation for additional information on the adoption of IFRS 16. (2) Other changes above includes €622 million of non-cash movements relating to the recognition of additional lease liabilities in accordance with IFRS during the year ended December 31, 2019. Interest expense and taxes paid During the years ended December 31, 2019 , 2018 and 2017 , the Group paid interest of € 860 million and received interest of € 325 million , € 1,024 million and € 308 million , and € 1,190 million and € 299 million , respectively. Amounts indicated are also inclusive of interest rate differentials paid or received on interest rate derivatives. During the years ended December 31, 2019 , 2018 and 2017 , the Group made income tax payments, net of refunds, totaling €341 million , €750 million and €533 million , respectively. Amounts relating to IFRS 16 recognized in Consolidated Statement of Cash Flows During the year ended December 31, 2019, the total cash outflow for leases recognized in accordance with IFRS 16 was €381 million , of which €299 million related to cash payments for the principal portion of lease liabilities (recognized within Cash flows from financing activities in the Consolidated Statement of cash flows) and €82 million related to cash payments for interest expense related to lease liabilities (recognized within Cash flows from operating activities in the Consolidated Statement of cash flows). |
Qualitative and quantitative in
Qualitative and quantitative information on financial risk | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Qualitative and quantitative information on financial risks | 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 Overall, the credit risk regarding the Group’s trade receivables and receivables from financing activities is concentrated mainly in North America, EMEA and LATAM. The maximum credit risk to which the Group is potentially exposed at December 31, 2019 is represented by the carrying amounts of financial assets in the financial statements as discussed in Note 15 , Trade, other receivables and Tax receivables 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 . The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each counterparty. The Group monitors these exposures and establishes credit lines with single or homogeneous categories of counterparties. Dealers and final customers for which the Group provides financing are subject to specific assessments of their creditworthiness under a detailed scoring system. To mitigate this risk, the Group could obtain financial and non-financial guarantees. 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. For further information regarding the exposure to credit risk and ECLs of Trade receivables, other receivables and financial receivables at December 31, 2019 and 2018 , refer to Note 15 , Trade, other receivables and tax receivables . 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 funds that are measured at fair value, there was no exposure to sovereign debt securities at December 31, 2019 and 2018 which might lead to significant risk of repayment. Liquidity risk Liquidity risk is the risk 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 from various funding sources. Certain notes issued by FCA and its treasury subsidiaries include covenants which may be affected by circumstances related to certain subsidiaries; in particular, there are cross-default clauses which may accelerate repayments in the event that such subsidiaries fail to pay certain of their 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 liabilities 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, interest rate risk and commodity price 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 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 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 2019 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) at December 31, 2019 resulting from a 10 percent change in the exchange rates would have been approximately €991 million ( €704 million at December 31, 2018 ). 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, 2019 , resulting from a hypothetical 10 percent change in market interest rates, would have been approximately €68 million (approximately €83 million at December 31, 2018 ). 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, 2019 , 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 €23 million ( €25 million at December 31, 2018 ). 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, 2019 , a hypothetical 10 percent change in the price of the commodities at that date would have caused a fair value loss of €55 million ( €91 million at December 31, 2018 ). 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. |
Basis of presentation (Policies
Basis of presentation (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Statement of IFRS compliance | The Consolidated Financial Statements, together with the notes thereto, of FCA as of and for the year ended December 31, 2019 were authorized for issuance by the Board of Directors on February 25, 2020 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” 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 for the measurement of certain financial instruments as required, 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 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 Equity attributable to the owners of the parent. Subsidiaries are deconsolidated from the date on 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 or significant influence is obtained. On acquisition, any excess of the investment over the 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, 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 arising 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 type of joint arrangement whereby the parties that have joint control 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 an 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, if earlier, when the asset or disposal group meets the criteria to be classified as held for sale. When the asset or disposal group is classified as a discontinued operation, the comparative information is reclassified within the Consolidated Income Statement and the Consolidated Statement of Cash Flows as if the asset or disposal group had been discontinued from the start of the earliest comparative period presented. In addition, when an asset or disposal group is classified as held for sale, depreciation and amortization cease. The classification, presentation and measurement requirements of IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations outlined above 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 used in their respective primary economic environments. 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 as 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 arising 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 in preparing the Consolidated Statement of Cash Flows to translate the cash flows of foreign subsidiaries. |
Foreign currency translation | Foreign currency The functional currency of the Group’s entities is the currency used in their respective primary economic environments. 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 as 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 arising 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 in preparing the Consolidated Statement of Cash Flows to translate the cash flows of foreign subsidiaries. The principal exchange rates used to translate other currencies into Euro were as follows: 2019 2018 2017 Average At December 31, Average At December 31, Average At December 31, U.S. Dollar (U.S.$) 1.119 1.123 1.181 1.145 1.130 1.199 Brazilian Real (BRL) 4.413 4.516 4.308 4.444 3.605 3.973 Chinese Renminbi (CNY) 7.735 7.821 7.808 7.875 7.629 7.804 Canadian Dollar (CAD) 1.485 1.460 1.529 1.561 1.465 1.504 Mexican Peso (MXN) 21.557 21.220 22.705 22.492 21.329 23.661 Polish Zloty (PLN) 4.298 4.257 4.261 4.301 4.257 4.177 Argentine Peso (ARS) (1) 67.258 67.258 43.074 43.074 18.683 22.595 Pound Sterling (GBP) 0.878 0.851 0.885 0.895 0.877 0.887 Swiss Franc (CHF) 1.112 1.085 1.155 1.127 1.112 1.170 ______________________________________________________________________________________________________________________________ (1) From July 1, 2018, Argentina’s economy was considered to be hyperinflationary. Transactions after July 1, 2018 for entities with the Argentinian Peso as the functional currency were translated using the spot rate at the end of the period. |
Intangible assets | Intangible assets Goodwill Goodwill represents the excess of the fair value of consideration paid in a business combination over the fair value of net tangible and identifiable intangible assets acquired. 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, projected 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 when the related asset is available for use, generally from the beginning of production, over the expected life cycle of the models (generally 5-6 years ) or powertrains (generally 10-12 years ) developed. |
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 asset 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 expensed to the Consolidated Income Statement. Refer to New standards and amendments effective January 1, 2019 below for additional information on the adoption of IFRS 16 - Leases (“IFRS 16”), including the impact on finance and operating leases which had been previously recognized in accordance with IAS 17 - Leases (“IAS 17”) . Depreciation During the years ended December 31, 2019 , 2018 and 2017 , assets depreciated on a straight-line basis over their estimated useful lives used the following depreciation rates: Depreciation rates Buildings 3% - 10% Plant, machinery and equipment 3% - 33% Other assets 5% - 33% |
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 Annually, or more frequently if facts or circumstances indicate otherwise, 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 primarily include trade receivables, receivables from financing activities, investments in other companies, derivative financial instruments, cash and cash equivalents, and debt securities that represent temporary investments of available funds and do not satisfy the requirements for being classified as cash equivalents. Financial liabilities primarily consist of debt, derivative financial instruments, trade payables and other liabilities. Receivables from dealer financing activities are typically generated by sales of vehicles and are generally managed under dealer network financing programs as a component of the portfolio of the Group's 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 according to market and payment terms, which range from two to twelve months. Classification and measurement The classification of a financial asset is dependent on the Group’s business model for managing such financial assets and their contractual cash flows. The Group considers whether the contractual cash flows represent solely payments of principal and interest that are consistent with a basic lending arrangement. Where the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, the related financial assets are classified and measured at fair value through profit or loss (“FVPL”). Financial asset cash flow business model Initial measurement (1) Measurement category (3) Solely to collect the contractual cash flows (Held to Collect) Fair Value including transaction costs Amortized Cost (2) Collect both the contractual cash flows and generate cash flows arising from the sale of assets (Held to Collect and Sell) Fair Value including transaction costs Fair value through other comprehensive income (“FVOCI”) Generate cash flows primarily from the sale of assets (Held to Sell) Fair Value FVPL ______________________________________________________________________________________________________________________________ (1) A trade receivable without a significant financing component, as defined by IFRS 15, is initially measured at the transaction price. (2) 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. (3) On initial recognition, the Group may irrevocably designate a financial asset at FVPL that otherwise meets the requirements to be measured at amortized cost or at FVOCI if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Factors considered by the Group in determining the business model for a group of financial assets include: • past experience on how the cash flows for these assets were collected; • the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and future sales activity expectations; • how the asset’s performance is evaluated and reported to key management personnel; and • how risks are assessed and managed and how management is compensated. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. Cash and cash equivalents include cash at banks, units in money market funds and other money market securities, commercial paper and certificate of deposits 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 that can generally be liquidated on demand and are measured at FVPL. Cash at banks and Other cash equivalents are measured at amortized cost. Investments in other companies are measured at fair value. Equity investments for which there is no quoted market price in an active market and there is insufficient financial information in order to determine fair value may be measured at cost as an estimate of fair value, as permitted by IFRS 9 - Financial Instruments (“IFRS 9”). The Group may irrevocably elect to present subsequent changes in the investment’s fair value in Other comprehensive income (“OCI”) upon the initial recognition of an equity investment that is not held to sell. This election is made on an investment-by-investment basis. Generally, any dividends from these investments are recognized in Other income from investments within Result from investments when the Group’s right to receive payment is established. Other net gains and losses are recognized in OCI and will not be reclassified to the Consolidated Income Statement in subsequent periods. Impairment losses (and the reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value in OCI. Impairment of financial assets The Group’s credit risk differs in relation to the type of activity. In particular, receivables from financing activities, such as dealer and retail financing 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, whereas trade receivables arising from the sale of vehicles and spare parts, are mostly exposed to the direct risk of counterparty default. These risks are mitigated by different kinds of securities received and the fact that collection exposure is spread across a large number of counterparties. The IFRS 9 impairment requirements are based on a forward-looking expected credit loss (“ECL”) model. ECL is a probability-weighted estimate of the present value of cash shortfalls. The calculation of the amount of ECL is based on the risk of default by the counterparty, which is determined by taking into account the information available at the end of each reporting period as to the counterparty’s solvency, the fair value of any guarantees and the Group’s historical experience. The Group considers a financial asset to be in default when: (i) the borrower is unlikely to pay its obligations in full and without consideration of compensating guarantees or collateral (if any exist); or (ii) the financial asset is more than 90 days past due. The Group applies two impairment models for financial assets as set out in IFRS 9: the simplified approach and the general approach. The table below indicates the impairment model used for each of our financial asset categories. Impairment losses on financial assets are recognized in the Consolidated Income Statement within the corresponding line items, based on the classification of the counterparty. Financial asset IFRS 9 impairment model Trade receivables Simplified approach Receivables from financing activities General approach Other receivables General approach In order to test for impairment, individually significant receivables and receivables for which collectability is at risk are assessed individually, while all other receivables are grouped into homogeneous risk categories based on shared risk characteristics such as instrument type, industry or geographical location of the counterparty. The simplified approach for determining the lifetime ECL allowance is performed in two steps: • All trade receivables that are in default, as defined above, are individually assessed for impairment; and • A general reserve is recognized for all other trade receivables (including those not past due) based on historical loss rates. The Group applies the general approach as determined by IFRS 9 by assessing at each reporting date whether there has been a significant increase in credit risk on the financial instrument since initial recognition. The Group considers receivables to have experienced a significant increase in credit risk when certain quantitative or qualitative indicators have been met or the borrower is more than 30 days past due on its contractual payments. The “three-stages” for determining and measuring the impairment based on changes in credit quality since initial recognition are summarized below: Stage Description Time period for measurement of ECL Stage 1 A financial instrument that is not credit-impaired on initial recognition 12-month ECL Stage 2 A financial instrument with a significant increase in credit risk since initial recognition Lifetime ECL Stage 3 A financial instrument that is credit-impaired or has defaulted Lifetime ECL Considering forward-looking economic information, ECL is determined by projecting the probability of default, exposure at default and loss given default for each future contractual period and for each individual exposure or collective portfolio. The discount rate used in the ECL calculation is the stated effective interest rate or an approximation thereof. Each reporting period, the assumptions underlying the ECL calculation are reviewed and updated as necessary. Since adoption, there have been no significant changes in estimation techniques or significant assumptions that led to material changes in the ECL allowance. The gross carrying amount of a financial asset is written-off to the extent that there is no realistic prospect of recovery. This is generally the case when the Group determines that a debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities. 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). In accordance with IFRS 9 , derivative financial instruments are recognized on the basis of the settlement date and, upon initial recognition, are measured at fair value less (in case a financial asset is not measured at FVPL) transaction costs that are directly attributable to the acquisition of the financial assets. Subsequent to initial recognition, all derivative financial instruments are measured at fair value. Furthermore, derivative financial instruments qualify for hedge accounting when (i) there is formal designation and documentation of the hedging relationship and the Group’s risk management objective and strategy for undertaking the hedge at inception of the hedge and (ii) the hedge is expected to be effective. 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 attributable to a particular risk that 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). When the hedged forecasted transaction results in the recognition of a non-financial asset, the gains and losses previously deferred in Other comprehensive income/(loss) are reclassified and included in the initial measurement of the cost of the non-financial asset. The effective portion of any gain or loss is recognized in 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 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. Hedge effectiveness is determined at the inception of the hedge relationship and through periodic prospective effectiveness assessments to ensure the hedge relationships meet the effectiveness requirements (including the existence of an economic relationship between the hedged item and hedging instrument). The Group enters into hedge relationships where the critical terms of the hedging instrument match closely or exactly with the terms of the hedged item, and so a qualitative assessment of effectiveness is performed. In the event there was a hedge relationship where the critical terms of the hedged item do not match closely or perfectly with the critical terms of the hedging instrument, the Group would perform a quantitative assessment to assess effectiveness. Ineffectiveness is measured by comparing the cumulative changes in fair value of the hedging instrument and cumulative change in fair value of the hedged item arising from the designated risk. The primary potential sources of hedge ineffectiveness are mismatches in timing or the critical terms of the hedged item and the hedging instrument. The hedge ratio is the relationship between the quantity of the derivative and the hedged item. The Group’s derivatives have the same underlying quantity as the hedged items, therefore the hedge ratio is expected to be one for one. 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 fair value measurements. |
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 requiring first loss cover (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), 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 IFRS 9 for the derecognition of the assets since the risks and rewards connected with ownership of the financial asset are not substantially 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. These types of receivables are classified as held-to-collect, since the business model is consistent with the Group’s continuing recognition of the receivables. |
Inventories | Inventories Raw materials, semi-finished products and finished goods inventories 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, which is 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 in the period in which they are identified. |
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 defined benefit 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 is 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 defined benefit cost are recognized as follows: • Service cost is recognized in the Consolidated Income Statement by function and is presented within the relevant line items (Cost of revenues, Selling, general and other costs, and Research and development costs); • Net interest expense on the defined benefit liability/(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 • Remeasurement components of the net obligation, 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 remeasurement 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. Remeasurement 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 The Group has several 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. For equity-settled transactions, the cost is determined by the fair value at the date when the grant is determined with reference to the grant-date share price and, where applicable, using a Monte Carlo simulation model. Refer to Note 18 - Share-based compensation for further information. Share-based compensation expense is recognized within Selling, general and other costs within the Consolidated Income Statement, together with a corresponding increase in equity, over the period in which the service and, where applicable, the performance conditions are fulfilled (“vesting period”). The cumulative expense is recognized for equity-settled transactions at each reporting date using the graded vesting method and reflects the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense, or credit, in the Consolidated Income Statement for a period represents the movement in cumulative expense recognized as at the beginning and end of that period. Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. Any incremental expense between the original grant and the modified grant, measured at the date of modification, is recognized over the modified vesting terms. Where an award is cancelled by the entity or by the counterparty, any unrecognized element of the fair value of the award is expensed immediately through the Consolidated Income Statement. For cash-settled transactions, a liability is recognized for the fair value measured initially and at each reporting date up to and including the settlement date. The fair value is expensed over the period until the vesting date, with recognition of a corresponding liability. The approach used to account for vesting conditions when measuring equity-settled transactions also applies to cash-settled transactions. |
Revenue recognition | Revenue recognition Revenue is recognized when control of our vehicles, services or parts has been transferred and the Group’s performance obligations to our customers have been satisfied. Revenue is measured as the amount of consideration the Group expects to receive in exchange for transferring goods or providing services. The timing of when the Group transfers the goods or services to the customer may differ from the timing of the customer’s payment. The Group recognizes a contract liability when it invoices an amount to a customer prior to the transfer of the goods or services provided. When the Group gives our customers the right to return eligible goods, the Group estimates the expected returns based on an analysis of historical experiences. Sales, value added and other taxes that the Group collects on behalf of others concurrently with revenue generating activities are excluded from revenue and are recognized within the Other liabilities and the Tax liabilities line items in the Consolidated Statement of Financial Position. Incidental items that are immaterial in the context of the contract are recognized as expense. The Group also enters into contracts with multiple performance obligations. For these contracts, the Group allocates revenue from the transaction price to the distinct goods and services in the contract on a relative standalone selling price basis. To the extent that the Group sells the good or service separately in the same market, the standalone selling price is the observable price at which the Group sells the good or service separately. For all other goods or services, the Group estimates the standalone selling price using a cost-plus-margin approach. Sales of goods The Group has determined that our customers from the sale of vehicles and service parts are generally dealers, distributors or fleet customers. Transfer of control, and therefore revenue recognition, generally corresponds to the date when the vehicles or service parts are made available to the customer, or when the vehicles or service parts are released to the carrier responsible for transporting them to the customer. This is also the point at which invoices are issued, with payment for vehicles typically due immediately and payment for service parts typically due in the following month. For component part sales, revenue recognition is consistent with that of service parts. The Group also sells tooling, with control transferring at the point in time when the customer accepts the tooling. The cost of incentives, if any, is estimated at the inception of a contract at the expected amount that will ultimately be paid and is recognized as a reduction to revenue at the time of the sale. If a vehicle contract transaction has multiple performance obligations, the cost of incentives is allocated entirely to the vehicle as the intent of the incentives is to encourage sales of vehicles. If the estimate of the incentive changes following the sale to the customer, the change in estimate is recognized as an adjustment to revenue in the period of the change. Refer to the Use of estimates - Sales incentives for more information on these programs. New vehicle sales through Guaranteed Depreciation Program (“GDP”) are recognized as revenue when control of the vehicle transfers to the fleet customer, except in situations where the Group issues a put option for which there is a significant economic incentive to exercise, as discussed below. Upon recognition of the vehicle revenue, the Group establishes a liability equal to the estimated amount of any residual value guarantee. The Group also sells vehicles where, in addition to guaranteeing the residual value, the contract includes a put option whereby the fleet customer can require the Group to repurchase the vehicles. For these types of arrangements, the Group assesses whether a significant economic incentive exists for the customer to exercise its put option. If the Group determines that a significant economic incentive does not exist for the customer to exercise its put option, then revenue is recognized when control of the vehicle transfers to the fleet customer and a liability is recognized equal to the estimated amount of the residual value guarantee. If the Group determines that a significant economic incentive exists, then the arrangement is accounted for similarly to a repurchase obligation, as described in Lease installments from assets sold with buy-back commitments . Services provided When control of a good transfers to the customer prior to the completion of shipping activities for which the Group is responsible, this represents a separate performance obligation for which the shipping revenue is recognized when the shipping service is complete. Other revenues from services provided are primarily comprised of maintenance plans and extended warranties, and also include connectivity services, and are recognized over the contract period in proportion to the costs expected to be incurred based on our historical experience. These services are either included in the selling price of the vehicle or separately priced. Revenue for services is allocated based on the estimated stand-alone selling price. Costs associated with the sale of contracts are deferred and are subsequently amortized to expense consistent with how the related revenue is recognized. The Group had €224 million of deferred service contract costs at December 31, 2019 ( €200 million at December 31, 2018 ) and recognized €68 million of amortization expense during the year ended December 31, 2019 ( €88 million during the year ended December 31, 2018 ). Contract revenues Revenue from construction contracts, which is comprised of industrial automation systems, included within “Other activities”, is recognized as revenue over the contract period in proportion to the costs expected to be incurred based on our historical experience. A loss is recognized if the sum of the expected costs for services under the contract exceeds the transaction price. Lease installments from assets sold with buy-back commitments Vehicle sales to fleet customers can include a repurchase obligation, whereby the Group is required to repurchase the vehicles at a given point in time. The Group accounts for such sales as an operating lease. Upon the transfer of vehicles to the fleet customer, the Group records a liability equal to the proceeds received within Other liabilities in the Consolidated Statement of Financial Position. The difference between the proceeds received and the guaranteed repurchase amount is recognized as revenue over the contractual term on a straight-line basis. The cost of the vehicle is recorded within Assets sold with a buy-back commitment in the Consolidated Statement of Financial Position and the difference between the cost of the vehicle and the estimated residual value is recognized within Cost of revenues in the Consolidated Income Statement over the contractual term. Interest income of financial services activities Interest income, which is primarily generated from the Group by providing dealer and retail financing, is recognized using the effective interest method. |
Cost of revenues | Cost of revenues Cost of revenues comprises expenses incurred in the manufacturing and distribution of vehicles and parts. The most significant element is the cost of materials and components and the remaining costs include labor (consisting of direct and indirect wages), transportation costs, depreciation of property, plant and equipment and amortization of other intangible assets relating to production. 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 (€ 48 million , € 75 million and € 68 million for the years ended December 31, 2019 , 2018 and 2017 , respectively). Cost of revenues also included € 195 million , € 293 million and € 397 million related to the decrease in value for assets sold with buy-back commitments for the years ended December 31, 2019 , 2018 and 2017 , 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 same periods as 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 which are 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 for 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 when it is probable that this temporary difference will not reverse in the foreseeable future, except when it is able to control the timing of the reversal of the temporary difference. 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. Refer to Use of estimates - Recoverability of deferred tax assets for additional detail. Current income taxes and deferred taxes are offset when they relate to the same taxation jurisdiction 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. Refer to New standards and amendments effective January 1, 2019 and Change in accounting policy - IFRIC 23 below for detail on the application of IFRIC 23, Uncertainty over Income Tax Treatment and the related reclassification of prior year comparatives. Refer to Note 7 , Tax expense , for additional information on tax expense and deferred tax assets. |
Fair Value Measurement | Fair Value Measurement Fair value for measurement and disclosure purposes is determined as the consideration 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 own 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 certain over-the-counter commodity option and swap contracts. Refer to Note 23 , Fair value measurement , for additional information on fair value measurements. |
Use of estimates | Use of estimates The Consolidated Financial Statements are prepared in accordance with IFRS which requires 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 management's best judgment of elements that are known when the financial statements are prepared, on historical experience and on any other factors that are considered to be relevant. Estimates and underlying assumptions 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. Items requiring estimates for which there is a risk that a material difference may arise in the future in respect of the carrying amounts of assets and liabilities 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 which are funded. 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. 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 by taking into consideration parameters of a financial nature such as discount rates, the rate 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 3.3 percent and 4.3 percent at December 31, 2019 and 2018 , respectively. At December 31, 2019 , the effect on the defined benefit obligation of a decrease or increase in the discount rate, holding all other assumptions constant, is as follows: Effect on pension benefit ( € million) 10 basis point decrease in discount rate 298 10 basis point increase in discount rate (292 ) 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 post-retirement benefits to certain hourly and salaried employees. Upon retirement, these employees may become eligible for a continuation of certain benefits. Benefits and eligibility rules may be modified periodically. These other post-employment 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, 2019 , the effect of a decrease or increase 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 Effect on the TFR (€ million) 10 basis point / (100 basis point for TFR) decrease in discount rate 29 46 10 basis point / (100 basis point for TFR) increase in discount rate (29 ) (40 ) 100 basis point decrease in health care cost trend rate (39 ) — 100 basis point increase in health care cost trend rate 46 — 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 North America 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 CGUs 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 as well as emerging technology changes, such as electrification and autonomous driving. Our business plan could change in response to these evolving requirements and emerging technologies or in relation to any future business plans or strategies developed as part of partnerships and collaborations. As we continue to assess the potential impacts of these evolving requirements, emerging technologies or future plans and strategies, and of operationalizing and implementing the strategic targets set out in the business plan, including reallocation of our resources, the recoverability of certain of our assets or CGUs may be impacted in future periods. For example, our product development strategies may be affected by regulatory changes as well as changes in the expected costs of implementing electrification, including the cost of batteries. As relevant circumstances change, we expect to adjust our product plans which may result in changes to the expected use of certain of the Group’s vehicle platforms. These uncertainties could result in either impairments of, or reductions to the expected useful lives of, these platforms, or both. Any change in recoverability would be accounted for at the time such change to the business plan occurs. For the years ended December 31, 2019, 2018 and 2017, the impairment tests performed compared the carrying amount of the assets included in the respective CGUs to their value in use. The value in use of the CGUs was determined using a discounted cash flow methodology based on estimated pre-tax future cash flows attributable to the CGUs and a pre-tax discount rate reflecting a current market assessment of the time value of money and the risks specific to the CGUs. During the year ended December 31, 2019, impairment losses totaling €1,589 million were recognized. Of the total impairment charges, €1,376 million was recognized in relation to the rationalization of product portfolio plans, primarily for Europe in the A-segment as well as for Alfa Romeo resulted in the recognition of asset impairment charges for certain platforms , composed of €563 million of Property, plant and equipment recognized within Cost of revenues and €813 million of previously capitalized development costs recognized within Research and development costs and excluded from Adjusted EBIT. Of these charges, €435 million relates to the EMEA segment, €148 million relates to the Maserati segment and the remaining €793 million is not allocated to a specific region as the platform assets that have been impaired are used to produce Alfa Romeo vehicles sold in several of our regions. During the year ended December 31, 2018, impairment losses totaling €297 million were recognized. The most significant component of this impairment loss was in EMEA, primarily resulting from changes in product plans in connection with the 2018-2022 business plan. It was determined that the carrying amount of the CGUs exceeded their value in use and accordingly, an impairment charge of €262 million was recognized in EMEA, €16 million in North America, €11 million in APAC and €8 million in LATAM. During the year ended December 31, 2017, impairment losses totaling €219 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, certain of FCA Venezuela’s assets were impaired to their fair value using a market approach, resulting in an impairment loss of €21 million . 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 from the acquisition of FCA US has been allocated to the North America, EMEA, APAC and LATAM operating segments. Due to the identification of indicators of impairment primarily as a result of rationalization of product portfolio plans, mainly for Europe in the A-segment as well for Alfa Romeo, the goodwill allocated to the EMEA operating segment was tested for impairment at September 30, 2019. Information regarding the allocation of Goodwill between FCA’s reportable segments is provided in Note 9, Goodwill and intangible assets with indefinite useful lives . The assumptions used in the goodwill impairment test for EMEA as of September 30, 2019, represent management’s best estimate for the period under consideration. • The estimate of the recoverable amount for purposes of performing the EMEA goodwill impairment test was determined using value in use at September 30, 2019 and was based on the following assumptions: ◦ The expected future cash flows covering the period from 2019 through 2022. These expected cash flows reflect the current expectations regarding economic conditions and market trends as well as the EMEA specific initiatives for the period 2019 to 2022. These cash flows relate to the EMEA operating segment in its current condition when preparing the financial statements and exclude the estimated cash flows that might arise from future restructuring plans or other structural changes. Key assumptions used in estimating the future cash flows are those related to volumes, sales mix, profit margins, expected conditions regarding market trends and segment, brand and model market share for the respective operating segment over the period considered. ◦ 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 . The long-term EBIT margins have been set considering the margins incorporated into the business plan, and considering peer profitability commonly achieved in the region in the long-term. ◦ Pre-tax cash flows have been discounted using a pre-tax discount rate which reflects the current market assessment of the time value of money for the period being considered, and the risks related to those cash flows of the Group. The pre-tax Weighted Average Cost of Capital (“WACC”) applied for the EMEA operating segment was 10.8 percent . The value estimated as described above was determined to be in excess of the carrying amount of the EMEA operating segment. As such, no impairment charge was recognized for the goodwill allocated to the EMEA operating segment for the year ended December 31, 2019. The goodwill and intangible assets with indefinite useful lives allocated to the other operating segments (North America, LATAM and APAC) were tested for impairment on October 1, 2019, which is the date the Group annually tests goodwill for impairment. The assumptions used in the impairment test for the regions tested 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 value in use for the year ended December 31, 2019 (fair value less costs of disposal for the year ended December 31, 2018) and was based on the following assumptions: • The expected future cash flows covering the period from 2019 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 2019 to 2022. These cash flows relate to the respective CGUs in their current 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 APAC operating segment, for the year ended December 31, 2018, expected future cash flows were sensitive to certain assumptions, primarily the expected margins for the terminal period, such that a reduction of 0.7 percent at December 31, 2018 in the margin for the terminal period would have reduced the fair value down to its carrying amount. While the assumptions used were considered reasonable and achievable and represented the best estimate of expected conditions in the operating segment, management has been and continues to be actively implementing measures to improve operating results by addressing commercial performance and cost structure to allow the achievement of the expected margins and cash flow in APAC. During 2019, the APAC region has become less sensitive to changes in the terminal period EBIT Margin as a result of ongoing actions FCA is taking to improve the competitiveness of its business in China. However, the recoverability of the assets within the APAC region are dependent upon achieving profitable results, which have not been achieved in recent periods. ◦ The LATAM operating segment, for the year ended December 31, 2019, expected future cash flows have become sensitive to the expected margins for the terminal period taking into consideration the expectations for the region as well as the economic uncertainties in Argentina, such that a reduction of 90 basis points in the margin for the terminal period would reduce the recoverable value down to its carrying amount. The expected future cash flows include the extension of certain tax benefits through 2025 and other government grants, which were signed into law in Brazil during the fourth quarter of 2018. • 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 . The long-term EBIT margins have been set considering historical margins, the margins incorporated into the five-years plan, and other market data, as adjusted for the stage in the economic cycle of the regions and any specific circumstances (for example, in LATAM, the long-term EBIT margin has been adjusted to assume no extension of the Brazilian tax benefits beyond 2025). • For the year ended December 31, 2019, pre-tax cash flows have been discounted using a pre-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 pre-tax WACC ranged from approximately 9.8 percent to approximately 15.4 percent . The pre-tax WACC was calculated using the Capital Asset Pricing Model technique. The values estimated as described above were determined to be in excess of the carrying amount 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, 2019. There were no impairment charges resulting from the impairment tests performed for the years ended December 31, 2018 and 2017. 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 based on the most recent business plan. Moreover, the Group estimates the impact of the reversal of taxable temporary differences on earnings and it also considers the period over which these deferred tax assets could be recovered. The estimates and assumptions used in the assessment are subject to uncertainty especially as it relates to the Group’s future performance as compared to the business plan, particularly in LATAM and EMEA. Therefore, changes in current estimates due to unanticipated events could have a significant impact on our Consolidated Financial Statements. Refer to Note 7 , Tax expense for additional detail. 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, thereby 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 related 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 North America, 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 subject 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 matters, alleged violations of law, 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 that 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. A provision 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 provisions 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 proceedings 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, 2019 | 2019 IFRS 16 - Leases The cumulative effect of the changes made to our Consolidated Statement of Financial Position as of January 1, 2019 for the adoption of IFRS 16 is as follows: (€ million) At December 31, 2018 (as previously reported) (1) IFRS 16 Adoption Effect At January 1, 2019 (as adjusted) Assets Non-current assets Property, plant and equipment € 26,307 € 1,069 € 27,376 Prepaid expenses and other assets 266 (3 ) 263 Non-current assets not impacted by IFRS 16 adoption 32,008 — 32,008 Total Non-current assets 58,581 1,066 59,647 Current assets Prepaid expenses and other assets 418 (2 ) 416 Assets held for sale 4,801 261 5,062 Current assets not impacted by IFRS 16 adoption 33,073 — 33,073 Total Current assets 38,292 259 38,551 Total Assets € 96,873 € 1,325 € 98,198 Equity Total Equity € 24,903 € — € 24,903 Liabilities Non-current liabilities Long-term debt (1) 8,667 903 9,570 Other liabilities 2,452 (3 ) 2,449 Non-current liabilities not impacted by IFRS 16 adoption 14,377 — 14,377 Total Non-current liabilities 25,496 900 26,396 Current liabilities Short-term debt and current portion of long-term debt (2) 5,861 166 6,027 Other liabilities 7,057 (2 ) 7,055 Liabilities held for sale 2,931 261 3,192 Current liabilities not impacted by IFRS 16 adoption 30,625 — 30,625 Total Current liabilities 46,474 425 46,899 Total Equity and liabilities € 96,873 € 1,325 € 98,198 ________________________________________________________________________________________________________________________________________________ (1) Refer to Change in accounting policy - IFRIC 23 below for detail on the reclassification of the 2018 comparative. (2) Amounts at December 31, 2018, include €261 million of finance lease liabilities previously recognized in accordance with IAS 17. Refer to Note 21 , Debt . As a result of the adoption of IFRS 16, the Group will recognize deferred tax assets and liabilities arising on lease liabilities and right-of-use assets, respectively, which largely offset. The net impact to deferred tax assets on adoption as at January 1, 2019 was nil. The net deferred tax impact for the year ended December 31, 2019 is immaterial. IFRS 16 requires lessees to recognize assets and liabilities under an on-balance sheet model that is similar to finance lease accounting under IAS 17. IFRS 16 is effective from January 1, 2019 (the date of adoption). The Group adopted IFRS 16 using the modified retrospective approach, with the cumulative effect of initially applying the standard recognized as an adjustment to the Group’s opening equity balance on January 1, 2019, which was nil. The comparative period has not been restated and continues to be reported under the accounting standards in effect for periods prior to January 1, 2019. Transition The following practical expedients have been made upon transition to IFRS 16: • Contracts that were previously identified as leases by applying IAS 17 and IFRIC 4, Determining whether an Arrangement contains a Lease, have not been re-assessed under IFRS 16. • For leases with a remaining lease term less than 12 months from the date of adoption, or leases of low-value assets, we have not recognized right-of-use assets and lease liabilities. • A single discount rate was applied to portfolios of leases with similar characteristics at the date of adoption. Lease liabilities were discounted at their respective incremental borrowing rates as at January 1, 2019 and the weighted average of the discount rates used was 5.7 percent . • In measuring the right-of-use assets at the date of adoption, the initial direct costs were excluded. For leases classified as finance leases under IAS 17, the carrying amounts of the right-of-use assets and lease liabilities at January 1, 2019 were determined as the carrying amounts of the lease assets and lease liabilities under IAS 17 immediately before that date. As IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17, where FCA is a lessor, we continue to classify our leases as operating leases or finance leases and account for them accordingly. The following reconciliation to the opening balance for the lease liabilities as at January 1, 2019 is based upon the operating lease obligations as at December 31, 2018 (excluding discontinued operations): (€ million) Future lease obligations as at December 31, 2018 (1) € 1,642 Recognition exemption for: Short-term leases (102 ) Leases of low-value assets (27 ) Gross lease liabilities at January 1, 2019 1,513 Effect of discounting using the incremental borrowing rate at January 1, 2019 (444 ) Present value of lease liabilities at January 1, 2019 1,069 Present value of finance lease liabilities under IAS 17 at December 31, 2018 261 Lease liabilities as a result of the initial application of IFRS 16 as at January 1, 2019 € 1,330 ________________________________________________________________________________________________________________________________________________ (1) Includes future minimum lease payments under non-cancellable lease contracts of €1,027 million and extension and termination options reasonably certain to be exercised of €615 million . Leases (policy applicable from January 1, 2019) As a Lessee At the inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. This policy is applied to contracts entered into, or modified, on or after January 1, 2019. At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. Except for real estate properties, the Group has elected not to separate non-lease components and will account for the lease and non-lease components as a single lease component. Right-of-use asset The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful life of the right-to-use asset is determined based on the nature of the asset, taking into consideration the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain corresponding remeasurements of the lease liability. Lease liability The lease liability is initially measured at the present value of the lease payments that have not been paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. The incremental borrowing rate is determined considering macro-economic factors such as the risk free rate based on the relevant currency and term, as well as FCA specific factors contributing to FCA’s credit spread, including the impact of security. The Group primarily uses the incremental borrowing rate as the discount rate for its lease liabilities. Lease payments used to measure the lease liability include the following, if appropriate: • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or a rate, initially measured using the index or rate applicable as at the commencement date; • amounts expected to be payable under a residual value guarantee; • if reasonably certain to exercise, the exercise price under a purchase option, or lease payments in an optional renewal period; and • penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is subsequently measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group presents right-of-use assets that do not meet the definition of investment property in Property, plant and equipment and lease liabilities in Long-term debt and Short-term debt and current portion of long-term debt in the Consolidated Statement of Financial Position. The Group has elected to not recognize right-of-use assets and lease liabilities for short-term leases and low-value leases for all classes of leased assets. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term. As a Lessor When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all the risks and rewards incidental to ownership of the underlying asset. If the risks and rewards are substantially transferred, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset. Effect of IFRS 16 Refer to Note 8, Other information by nature , Note 11, Property, plant and equipment , Note 21, Debt and Note 29, Explanatory notes to the Consolidated Statement of Cash Flows for additional detail on amounts recognized in accordance with IFRS 16. Refer to Note 3 , Scope of consolidation for detail on amounts relating to discontinued operations. Other new standards and amendments New standards and amendments effective January 1, 2019 IFRS 16 - Leases The cumulative effect of the changes made to our Consolidated Statement of Financial Position as of January 1, 2019 for the adoption of IFRS 16 is as follows: (€ million) At December 31, 2018 (as previously reported) (1) IFRS 16 Adoption Effect At January 1, 2019 (as adjusted) Assets Non-current assets Property, plant and equipment € 26,307 € 1,069 € 27,376 Prepaid expenses and other assets 266 (3 ) 263 Non-current assets not impacted by IFRS 16 adoption 32,008 — 32,008 Total Non-current assets 58,581 1,066 59,647 Current assets Prepaid expenses and other assets 418 (2 ) 416 Assets held for sale 4,801 261 5,062 Current assets not impacted by IFRS 16 adoption 33,073 — 33,073 Total Current assets 38,292 259 38,551 Total Assets € 96,873 € 1,325 € 98,198 Equity Total Equity € 24,903 € — € 24,903 Liabilities Non-current liabilities Long-term debt (1) 8,667 903 9,570 Other liabilities 2,452 (3 ) 2,449 Non-current liabilities not impacted by IFRS 16 adoption 14,377 — 14,377 Total Non-current liabilities 25,496 900 26,396 Current liabilities Short-term debt and current portion of long-term debt (2) 5,861 166 6,027 Other liabilities 7,057 (2 ) 7,055 Liabilities held for sale 2,931 261 3,192 Current liabilities not impacted by IFRS 16 adoption 30,625 — 30,625 Total Current liabilities 46,474 425 46,899 Total Equity and liabilities € 96,873 € 1,325 € 98,198 ________________________________________________________________________________________________________________________________________________ (1) Refer to Change in accounting policy - IFRIC 23 below for detail on the reclassification of the 2018 comparative. (2) Amounts at December 31, 2018, include €261 million of finance lease liabilities previously recognized in accordance with IAS 17. Refer to Note 21 , Debt . As a result of the adoption of IFRS 16, the Group will recognize deferred tax assets and liabilities arising on lease liabilities and right-of-use assets, respectively, which largely offset. The net impact to deferred tax assets on adoption as at January 1, 2019 was nil. The net deferred tax impact for the year ended December 31, 2019 is immaterial. IFRS 16 requires lessees to recognize assets and liabilities under an on-balance sheet model that is similar to finance lease accounting under IAS 17. IFRS 16 is effective from January 1, 2019 (the date of adoption). The Group adopted IFRS 16 using the modified retrospective approach, with the cumulative effect of initially applying the standard recognized as an adjustment to the Group’s opening equity balance on January 1, 2019, which was nil. The comparative period has not been restated and continues to be reported under the accounting standards in effect for periods prior to January 1, 2019. Transition The following practical expedients have been made upon transition to IFRS 16: • Contracts that were previously identified as leases by applying IAS 17 and IFRIC 4, Determining whether an Arrangement contains a Lease, have not been re-assessed under IFRS 16. • For leases with a remaining lease term less than 12 months from the date of adoption, or leases of low-value assets, we have not recognized right-of-use assets and lease liabilities. • A single discount rate was applied to portfolios of leases with similar characteristics at the date of adoption. Lease liabilities were discounted at their respective incremental borrowing rates as at January 1, 2019 and the weighted average of the discount rates used was 5.7 percent . • In measuring the right-of-use assets at the date of adoption, the initial direct costs were excluded. For leases classified as finance leases under IAS 17, the carrying amounts of the right-of-use assets and lease liabilities at January 1, 2019 were determined as the carrying amounts of the lease assets and lease liabilities under IAS 17 immediately before that date. As IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17, where FCA is a lessor, we continue to classify our leases as operating leases or finance leases and account for them accordingly. The following reconciliation to the opening balance for the lease liabilities as at January 1, 2019 is based upon the operating lease obligations as at December 31, 2018 (excluding discontinued operations): (€ million) Future lease obligations as at December 31, 2018 (1) € 1,642 Recognition exemption for: Short-term leases (102 ) Leases of low-value assets (27 ) Gross lease liabilities at January 1, 2019 1,513 Effect of discounting using the incremental borrowing rate at January 1, 2019 (444 ) Present value of lease liabilities at January 1, 2019 1,069 Present value of finance lease liabilities under IAS 17 at December 31, 2018 261 Lease liabilities as a result of the initial application of IFRS 16 as at January 1, 2019 € 1,330 ________________________________________________________________________________________________________________________________________________ (1) Includes future minimum lease payments under non-cancellable lease contracts of €1,027 million and extension and termination options reasonably certain to be exercised of €615 million . Leases (policy applicable from January 1, 2019) As a Lessee At the inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. This policy is applied to contracts entered into, or modified, on or after January 1, 2019. At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. Except for real estate properties, the Group has elected not to separate non-lease components and will account for the lease and non-lease components as a single lease component. Right-of-use asset The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful life of the right-to-use asset is determined based on the nature of the asset, taking into consideration the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain corresponding remeasurements of the lease liability. Lease liability The lease liability is initially measured at the present value of the lease payments that have not been paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. The incremental borrowing rate is determined considering macro-economic factors such as the risk free rate based on the relevant currency and term, as well as FCA specific factors contributing to FCA’s credit spread, including the impact of security. The Group primarily uses the incremental borrowing rate as the discount rate for its lease liabilities. Lease payments used to measure the lease liability include the following, if appropriate: • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or a rate, initially measured using the index or rate applicable as at the commencement date; • amounts expected to be payable under a residual value guarantee; • if reasonably certain to exercise, the exercise price under a purchase option, or lease payments in an optional renewal period; and • penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is subsequently measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group presents right-of-use assets that do not meet the definition of investment property in Property, plant and equipment and lease liabilities in Long-term debt and Short-term debt and current portion of long-term debt in the Consolidated Statement of Financial Position. The Group has elected to not recognize right-of-use assets and lease liabilities for short-term leases and low-value leases for all classes of leased assets. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term. As a Lessor When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all the risks and rewards incidental to ownership of the underlying asset. If the risks and rewards are substantially transferred, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset. Effect of IFRS 16 Refer to Note 8, Other information by nature , Note 11, Property, plant and equipment , Note 21, Debt and Note 29, Explanatory notes to the Consolidated Statement of Cash Flows for additional detail on amounts recognized in accordance with IFRS 16. Refer to Note 3 , Scope of consolidation for detail on amounts relating to discontinued operations. Other new standards and amendments The following amendments and interpretations, which were effective from January 1, 2019, were adopted by the Group. The adoption of these amendments did not have a material impact on the 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 Group applied IFRIC 23 from January 1, 2019 under the retrospective approach with no impact to equity on the date of initial application. In September 2019, the IFRIC finalized its agenda decision regarding the presentation of liabilities or assets related to uncertain tax treatments which have been recognized through applying IFRIC 23. The agenda decision concluded that uncertain tax liabilities should be presented as current tax liabilities, or deferred tax liabilities, and uncertain tax assets as current tax assets, or deferred tax assets. Refer to Change in accounting policy - IFRIC 23 below. • 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. • 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. • In December 2017, the IASB issued 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. • 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 for plan amendments, curtailments or settlements occurring on or after the beginning of the first annual reporting period that begins on or after January 1, 2019. New standards and amendments effective January 1, 2019 IFRS 16 - Leases The cumulative effect of the changes made to our Consolidated Statement of Financial Position as of January 1, 2019 for the adoption of IFRS 16 is as follows: (€ million) At December 31, 2018 (as previously reported) (1) IFRS 16 Adoption Effect At January 1, 2019 (as adjusted) Assets Non-current assets Property, plant and equipment € 26,307 € 1,069 € 27,376 Prepaid expenses and other assets 266 (3 ) 263 Non-current assets not impacted by IFRS 16 adoption 32,008 — 32,008 Total Non-current assets 58,581 1,066 59,647 Current assets Prepaid expenses and other assets 418 (2 ) 416 Assets held for sale 4,801 261 5,062 Current assets not impacted by IFRS 16 adoption 33,073 — 33,073 Total Current assets 38,292 259 38,551 Total Assets € 96,873 € 1,325 € 98,198 Equity Total Equity € 24,903 € — € 24,903 Liabilities Non-current liabilities Long-term debt (1) 8,667 903 9,570 Other liabilities 2,452 (3 ) 2,449 Non-current liabilities not impacted by IFRS 16 adoption 14,377 — 14,377 Total Non-current liabilities 25,496 900 26,396 Current liabilities Short-term debt and current portion of long-term debt (2) 5,861 166 6,027 Other liabilities 7,057 (2 ) 7,055 Liabilities held for sale 2,931 261 3,192 Current liabilities not impacted by IFRS 16 adoption 30,625 — 30,625 Total Current liabilities 46,474 425 46,899 Total Equity and liabilities € 96,873 € 1,325 € 98,198 ________________________________________________________________________________________________________________________________________________ (1) Refer to Change in accounting policy - IFRIC 23 below for detail on the reclassification of the 2018 comparative. (2) Amounts at December 31, 2018, include €261 million of finance lease liabilities previously recognized in accordance with IAS 17. Refer to Note 21 , Debt . |
Description of accounting policy for leases | Leases (policy applicable from January 1, 2019) As a Lessee At the inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. This policy is applied to contracts entered into, or modified, on or after January 1, 2019. At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. Except for real estate properties, the Group has elected not to separate non-lease components and will account for the lease and non-lease components as a single lease component. Right-of-use asset The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful life of the right-to-use asset is determined based on the nature of the asset, taking into consideration the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain corresponding remeasurements of the lease liability. Lease liability The lease liability is initially measured at the present value of the lease payments that have not been paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. The incremental borrowing rate is determined considering macro-economic factors such as the risk free rate based on the relevant currency and term, as well as FCA specific factors contributing to FCA’s credit spread, including the impact of security. The Group primarily uses the incremental borrowing rate as the discount rate for its lease liabilities. Lease payments used to measure the lease liability include the following, if appropriate: • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or a rate, initially measured using the index or rate applicable as at the commencement date; • amounts expected to be payable under a residual value guarantee; • if reasonably certain to exercise, the exercise price under a purchase option, or lease payments in an optional renewal period; and • penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is subsequently measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group presents right-of-use assets that do not meet the definition of investment property in Property, plant and equipment and lease liabilities in Long-term debt and Short-term debt and current portion of long-term debt in the Consolidated Statement of Financial Position. The Group has elected to not recognize right-of-use assets and lease liabilities for short-term leases and low-value leases for all classes of leased assets. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term. As a Lessor When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all the risks and rewards incidental to ownership of the underlying asset. If the risks and rewards are substantially transferred, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset. |
New standards, amendments and interpretations not yet effective | New standards and amendments 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: • 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 do not expect a material impact to our Consolidated Financial Statements or disclosures upon adoption of the amendments. • In October 2018, the IASB issued amendments to IFRS 3 - Business Combinations which change the definition of a business to enable entities to determine whether an acquisition is a business combination or an asset acquisition. The amendments are effective for annual periods beginning on or after January 1, 2020 with earlier adoption permitted. We do not expect a material impact to our Consolidated Financial Statements or disclosures upon adoption of the amendments. • In October 2018, the IASB issued amendments to its definition of material in IAS 1, Presentation of Financial Statements and IAS 8, Accounting Policies , Changes in Accounting Estimates clarifying the definition of materiality to aid in application. The amendments are effective for annual periods beginning on or after January 1, 2020 with earlier adoption permitted. We do not expect a material impact to our Consolidated Financial Statements or disclosures upon adoption of the amendments. • In September 2019, the IASB issued Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) , which modifies some specific hedge accounting requirements to provide relief from the potential effects of uncertainty caused by IBOR reform. In addition, the amendments require companies to provide additional information to investors about hedging relationships directly affected by these uncertainties. The amendment is effective for annual periods beginning on or after January 1, 2020, with earlier adoption permitted. We do not expect a material impact to our Consolidated Financial Statements or disclosures upon adoption of the amendments. |
Disclosure of voluntary change in accounting policy | As a result of the implementation of IFRIC 23 and the agenda decision issued by the IFRIC in September 2019, the Group has changed its accounting policy in respect of the classification of uncertain tax positions, to present uncertain tax liabilities as current tax liabilities and uncertain tax assets as current tax assets. In accordance with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors , the Group has retrospectively reclassified its comparatives for 2018 and 2017, reclassifying amounts previously recorded within Provisions to Tax liabilities (previously reported as Tax payables ). There was no impact on the Consolidated Income Statements for the years ended December 31, 2018 or 2017 as a result of this change. CONSOLIDATED STATEMENT OF FINANCIAL POSITION At December 31, 2018 (as previously reported) Adjustment At December 31, 2018 (as reclassified) (€ million) Provisions € 5,561 € (148 ) € 5,413 Tax liabilities 1 148 149 Non-current liabilities not impacted by reclassification 19,934 — 19,934 Total Non-current liabilities € 25,496 € — € 25,496 Provisions € 10,483 € (89 ) € 10,394 Tax liabilities 114 89 203 Current liabilities not impacted by reclassification 35,877 — 35,877 Total Current liabilities € 46,474 € — € 46,474 At December 31, 2017 (as previously reported (1) Adjustment (2) At December 31, 2017 (as reclassified) (€ million) Provisions € 5,770 € (240 ) € 5,530 Tax liabilities 74 240 314 Non-current liabilities not impacted by reclassification 22,199 — 22,199 Total Non-current liabilities € 28,043 € — € 28,043 Provisions € 9,009 € (39 ) € 8,970 Tax liabilities 309 39 348 Current liabilities not impacted by reclassification 37,951 — 37,951 Total Current liabilities € 47,269 € — € 47,269 At January 1, 2017 (as previously reported) (1) Adjustment (2) At January 1, 2017 (as reclassified) (€ million) Provisions € 6,520 € (194 ) € 6,326 Tax liabilities 25 194 219 Non-current liabilities not impacted by reclassification 28,976 — 28,976 Total Non-current liabilities € 35,521 € — € 35,521 Provisions € 9,317 € (18 ) € 9,299 Tax liabilities 162 18 180 Current liabilities not impacted by reclassification 39,990 — 39,990 Total Current liabilities € 49,469 € — € 49,469 ______________________________________________________________________________________________________________________________ (1) All amounts include Magneti Marelli. (2) Total adjustments related to Magneti Marelli amounted to €52 million at December 31, 2017 and €43 million at January 1, 2017. CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended December 31, 2018 (as previously reported) Adjustment For the year ended December 31, 2018 (as reclassified) (€ million) Change in provisions € 913 € (71 ) € 842 Change in other liabilities, payables and receivables (1) (1,284 ) 71 (1,213 ) Cash flows from operating activities - discontinued operations 484 — 484 Cash flows from operating activities - continuing operations not impacted by reclassification 9,835 — 9,835 Total Cash flows from operating activities € 9,948 € — € 9,948 For the year ended December 31, 2017 (as previously reported) Adjustment For the year ended December 31, 2017 (as reclassified) (€ million) Change in provisions € 545 € (81 ) € 464 Change in other liabilities, payables and receivables (1) 277 81 358 Cash flows from operating activities - discontinued operations 705 — 705 Cash flows from operating activities - continuing operations not impacted by reclassification 8,858 — 8,858 Total Cash flows from operating activities € 10,385 € — € 10,385 ______________________________________________________________________________________________________________________________ (1) Previously reported as Change in other payables and receivables |
Basis of presentation (Tables)
Basis of presentation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: 2019 2018 2017 Average At December 31, Average At December 31, Average At December 31, U.S. Dollar (U.S.$) 1.119 1.123 1.181 1.145 1.130 1.199 Brazilian Real (BRL) 4.413 4.516 4.308 4.444 3.605 3.973 Chinese Renminbi (CNY) 7.735 7.821 7.808 7.875 7.629 7.804 Canadian Dollar (CAD) 1.485 1.460 1.529 1.561 1.465 1.504 Mexican Peso (MXN) 21.557 21.220 22.705 22.492 21.329 23.661 Polish Zloty (PLN) 4.298 4.257 4.261 4.301 4.257 4.177 Argentine Peso (ARS) (1) 67.258 67.258 43.074 43.074 18.683 22.595 Pound Sterling (GBP) 0.878 0.851 0.885 0.895 0.877 0.887 Swiss Franc (CHF) 1.112 1.085 1.155 1.127 1.112 1.170 ______________________________________________________________________________________________________________________________ (1) From July 1, 2018, Argentina’s economy was considered to be hyperinflationary. Transactions after July 1, 2018 for entities with the Argentinian Peso as the functional currency were translated using the spot rate at the end of the period. |
Disclosure of depreciation rates for property, plant and equipment | During the years ended December 31, 2019 , 2018 and 2017 , assets depreciated on a straight-line basis over their estimated useful lives used the following depreciation rates: Depreciation rates Buildings 3% - 10% Plant, machinery and equipment 3% - 33% Other assets 5% - 33% |
Disclosure of sensitivity analysis for actuarial assumptions | At December 31, 2019 , the effect of a decrease or increase 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 Effect on the TFR (€ million) 10 basis point / (100 basis point for TFR) decrease in discount rate 29 46 10 basis point / (100 basis point for TFR) increase in discount rate (29 ) (40 ) 100 basis point decrease in health care cost trend rate (39 ) — 100 basis point increase in health care cost trend rate 46 — At December 31, 2019 , the effect on the defined benefit obligation of a decrease or increase in the discount rate, holding all other assumptions constant, is as follows: Effect on pension benefit ( € million) 10 basis point decrease in discount rate 298 10 basis point increase in discount rate (292 ) |
Impact of IFRS 16 on Consolidated Statement of Financial Position | The cumulative effect of the changes made to our Consolidated Statement of Financial Position as of January 1, 2019 for the adoption of IFRS 16 is as follows: (€ million) At December 31, 2018 (as previously reported) (1) IFRS 16 Adoption Effect At January 1, 2019 (as adjusted) Assets Non-current assets Property, plant and equipment € 26,307 € 1,069 € 27,376 Prepaid expenses and other assets 266 (3 ) 263 Non-current assets not impacted by IFRS 16 adoption 32,008 — 32,008 Total Non-current assets 58,581 1,066 59,647 Current assets Prepaid expenses and other assets 418 (2 ) 416 Assets held for sale 4,801 261 5,062 Current assets not impacted by IFRS 16 adoption 33,073 — 33,073 Total Current assets 38,292 259 38,551 Total Assets € 96,873 € 1,325 € 98,198 Equity Total Equity € 24,903 € — € 24,903 Liabilities Non-current liabilities Long-term debt (1) 8,667 903 9,570 Other liabilities 2,452 (3 ) 2,449 Non-current liabilities not impacted by IFRS 16 adoption 14,377 — 14,377 Total Non-current liabilities 25,496 900 26,396 Current liabilities Short-term debt and current portion of long-term debt (2) 5,861 166 6,027 Other liabilities 7,057 (2 ) 7,055 Liabilities held for sale 2,931 261 3,192 Current liabilities not impacted by IFRS 16 adoption 30,625 — 30,625 Total Current liabilities 46,474 425 46,899 Total Equity and liabilities € 96,873 € 1,325 € 98,198 ________________________________________________________________________________________________________________________________________________ (1) Refer to Change in accounting policy - IFRIC 23 below for detail on the reclassification of the 2018 comparative. (2) Amounts at December 31, 2018, include €261 million of finance lease liabilities previously recognized in accordance with IAS 17. Refer to Note 21 , Debt . |
Impact of IFRS 16 on lease liabilities expense | (€ million) Future lease obligations as at December 31, 2018 (1) € 1,642 Recognition exemption for: Short-term leases (102 ) Leases of low-value assets (27 ) Gross lease liabilities at January 1, 2019 1,513 Effect of discounting using the incremental borrowing rate at January 1, 2019 (444 ) Present value of lease liabilities at January 1, 2019 1,069 Present value of finance lease liabilities under IAS 17 at December 31, 2018 261 Lease liabilities as a result of the initial application of IFRS 16 as at January 1, 2019 € 1,330 ________________________________________________________________________________________________________________________________________________ (1) Includes future minimum lease payments under non-cancellable lease contracts of €1,027 million and extension and termination options reasonably certain to be exercised of €615 million . |
Disclosure of voluntary change in accounting policy | CONSOLIDATED STATEMENT OF FINANCIAL POSITION At December 31, 2018 (as previously reported) Adjustment At December 31, 2018 (as reclassified) (€ million) Provisions € 5,561 € (148 ) € 5,413 Tax liabilities 1 148 149 Non-current liabilities not impacted by reclassification 19,934 — 19,934 Total Non-current liabilities € 25,496 € — € 25,496 Provisions € 10,483 € (89 ) € 10,394 Tax liabilities 114 89 203 Current liabilities not impacted by reclassification 35,877 — 35,877 Total Current liabilities € 46,474 € — € 46,474 At December 31, 2017 (as previously reported (1) Adjustment (2) At December 31, 2017 (as reclassified) (€ million) Provisions € 5,770 € (240 ) € 5,530 Tax liabilities 74 240 314 Non-current liabilities not impacted by reclassification 22,199 — 22,199 Total Non-current liabilities € 28,043 € — € 28,043 Provisions € 9,009 € (39 ) € 8,970 Tax liabilities 309 39 348 Current liabilities not impacted by reclassification 37,951 — 37,951 Total Current liabilities € 47,269 € — € 47,269 At January 1, 2017 (as previously reported) (1) Adjustment (2) At January 1, 2017 (as reclassified) (€ million) Provisions € 6,520 € (194 ) € 6,326 Tax liabilities 25 194 219 Non-current liabilities not impacted by reclassification 28,976 — 28,976 Total Non-current liabilities € 35,521 € — € 35,521 Provisions € 9,317 € (18 ) € 9,299 Tax liabilities 162 18 180 Current liabilities not impacted by reclassification 39,990 — 39,990 Total Current liabilities € 49,469 € — € 49,469 ______________________________________________________________________________________________________________________________ (1) All amounts include Magneti Marelli. (2) Total adjustments related to Magneti Marelli amounted to €52 million at December 31, 2017 and €43 million at January 1, 2017. CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended December 31, 2018 (as previously reported) Adjustment For the year ended December 31, 2018 (as reclassified) (€ million) Change in provisions € 913 € (71 ) € 842 Change in other liabilities, payables and receivables (1) (1,284 ) 71 (1,213 ) Cash flows from operating activities - discontinued operations 484 — 484 Cash flows from operating activities - continuing operations not impacted by reclassification 9,835 — 9,835 Total Cash flows from operating activities € 9,948 € — € 9,948 For the year ended December 31, 2017 (as previously reported) Adjustment For the year ended December 31, 2017 (as reclassified) (€ million) Change in provisions € 545 € (81 ) € 464 Change in other liabilities, payables and receivables (1) 277 81 358 Cash flows from operating activities - discontinued operations 705 — 705 Cash flows from operating activities - continuing operations not impacted by reclassification 8,858 — 8,858 Total Cash flows from operating activities € 10,385 € — € 10,385 |
Scope of consolidation (Tables)
Scope of consolidation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in principle subsidiaries | The following table sets forth a list of the principal subsidiaries of FCA, which are grouped by our reportable segments, as well as our holding and other companies: Name Country Percentage North America 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 Alfa Romeo (Shanghai) Automobiles Sales Co. Ltd. People’s Republic of China 100.00 EMEA FCA Italy S.p.A. 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.S. 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 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 SENC (1) Luxembourg 100.00 |
Assets and Liabilities included within Disposal Group | The following table shows the calculation of the gain on sale on the Magneti Marelli transaction: At May 2, 2019 (€ million) Intangible assets € 788 Property, plant and equipment 2,146 Financial receivables 10 Cash and cash equivalents 426 Other assets 2,055 Debt (782 ) Trade and other payables (1,942 ) Other liabilities (791 ) Net assets sold € 1,910 Consideration 5,772 Reclassification of amounts in OCI relating to Magneti Marelli (1) (91 ) Gain on sale attributable to FCA € 3,771 ______________________________________________________________________________________________________________________________ (1) Excluding amounts related to remeasurement of defined benefit plans. |
Disclosure of non-current assets or disposal groups classified as held for sale | The following table represents the assets and liabilities of the Magneti Marelli business which were classified as held for sale at December 31, 2018: At December 31, 2018 (1) Total Current Non-current (€ million) Assets classified as held for sale Intangible assets € 717 € — € 717 Property, plant and equipment 1,793 — 1,793 Deferred tax assets 127 — 127 Inventories 766 766 — Trade and other receivables 545 492 53 Cash and cash equivalents 719 719 — Other assets 129 27 102 Total Assets held for sale (2) € 4,796 Liabilities classified as held for sale Debt € 177 € 64 € 113 Employee benefits liabilities 300 55 245 Provisions 210 100 110 Deferred tax liabilities 99 — 99 Trade and other payables 1,788 1,788 — Other liabilities 357 305 52 Total Liabilities held for sale € 2,931 ______________________________________________________________________________________________________________________________ (1) Amounts presented are not representative of the financial position of Magneti Marelli on a stand-alone basis; amounts are net of transactions between Magneti Marelli and other companies of the Group. (2) Assets held for sale as presented on the face of the Consolidated Statement of Financial Position at December 31, 2018, includes €5 million not related to the Magneti Marelli business. |
Disclosure of operating results of discontinued operations | The following table summarizes the operating results of Magneti Marelli up to the completion of the sale transaction on May 2, 2019, that were excluded from the Consolidated Income Statement for the years ended December 31, 2019, 2018 and 2017: Years ended December 31, 2019 (1) 2018 (1) 2017 (1) (€ million) Net revenues € 1,657 € 4,998 € 5,204 Expenses 1,447 4,493 4,798 Net financial expenses 5 85 124 Profit before taxes from discontinued operations 205 420 282 Tax expense 44 118 63 Profit after taxes from discontinued operations 161 302 219 Add: Gain on sale attributable to FCA 3,771 — — Less: Tax expense on gain on sale 2 — — Profit from discontinued operations, net of taxes € 3,930 € 302 € 219 ______________________________________________________________________________________________________________________________ (1) Amounts presented are not representative of the income statement of Magneti Marelli on a stand-alone basis; amounts are net of transactions between Magneti Marelli and other companies of the Group. |
Net revenues (Tables)
Net revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Schedule of Revenue by Type | Net revenues were as follows: Years ended December 31, 2019 2018 2017 (€ million) Revenues from: Sales of goods € 103,019 € 104,990 € 102,029 Services provided 3,961 3,871 2,182 Contract revenues 672 958 935 Lease installments from assets sold with a buy-back commitment 362 394 421 Interest income of financial services activities 173 199 163 Total Net revenues € 108,187 € 110,412 € 105,730 |
Schedule of Revenue by Geographical Location | Net revenues by geographical area were as follows: Years ended December 31, 2019 2018 2017 (€ million) Net revenues in: North America (1) € 73,848 € 73,405 € 67,500 Brazil 7,423 6,452 5,982 Italy 7,259 8,815 8,407 France 3,021 3,204 3,121 Germany 2,519 2,755 2,804 China 1,753 1,974 3,562 Spain 1,200 1,397 1,306 United Kingdom 995 1,136 1,267 Argentina 861 1,384 1,791 Japan 839 718 735 Turkey 739 896 1,244 Australia 320 418 496 Other countries 7,410 7,858 7,515 Total Net revenues € 108,187 € 110,412 € 105,730 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, 2019 2018 (€ million) North America (1) € 40,097 € 35,493 Italy 10,711 11,478 Brazil 4,064 4,125 Poland 684 937 Serbia 495 571 Other countries 1,320 1,456 Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) € 57,371 € 54,060 |
Schedule Of Revenue By Segment And Type | Net revenues attributed by segment for the years ended December 31, 2019 and 2018 were as follows: Mass-Market Vehicles 2019 North America LATAM APAC EMEA Maserati Other activities Total (€ million) Revenues from: Sales of goods € 70,809 € 8,059 € 2,674 € 19,275 € 1,563 € 639 € 103,019 Services provided 2,388 297 27 950 29 270 3,961 Construction contract revenues — — — — — 672 672 Revenues from goods and services 73,197 8,356 2,701 20,225 1,592 1,581 107,652 Lease installments from assets sold with a buy-back commitment 140 — — 222 — — 362 Interest income from financial services activities — 93 61 19 — — 173 Total Net revenues € 73,337 € 8,449 € 2,762 € 20,466 € 1,592 € 1,581 € 108,187 Mass-Market Vehicles 2018 North America LATAM APAC EMEA Maserati Other activities Total (€ million) Revenues from: Sales of goods € 69,908 € 7,756 € 2,560 € 21,516 € 2,606 € 644 € 104,990 Services provided 2,287 270 21 945 39 309 3,871 Construction contract revenues — — — — — 958 958 Revenues from goods and services 72,195 8,026 2,581 22,461 2,645 1,911 109,819 Lease installments from assets sold with a buy-back commitment 158 — — 235 — 1 394 Interest income from financial services activities — 116 65 18 — — 199 Total Net revenues € 72,353 € 8,142 € 2,646 € 22,714 € 2,645 € 1,912 € 110,412 |
Research and development costs
Research and development costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Disclosure of research and development costs | Research and development costs were as follows: Years ended December 31, 2019 2018 2017 (€ million) Research and development expenditures expensed € 1,305 € 1,448 € 1,506 Amortization of capitalized development expenditures 1,358 1,456 1,294 Impairment and write-off of capitalized development expenditures 949 147 103 Total Research and development costs € 3,612 € 3,051 € 2,903 |
Net financial expenses (Tables)
Net financial expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 Net financial expenses: Years ended December 31, 2019 2018 2017 (€ million) Interest income and other financial income € 261 € 249 € 220 Financial expenses: Interest expense and other financial expenses: 784 929 1,084 Interest expense on notes 370 422 568 Interest expense on borrowings from bank 181 259 350 Other interest cost and financial expenses 233 248 166 Interest on lease liabilities (1) 88 — — Write-down of financial assets 21 6 21 Losses on disposal of securities 2 6 5 Net interest expense on employee benefits provisions 298 276 304 Total Financial expenses 1,193 1,217 1,414 Net expenses from derivative financial instruments and exchange rate differences 73 88 151 Total Financial expenses and Net expenses from derivative financial instruments and exchange rate differences 1,266 1,305 1,565 Net Financial expenses € 1,005 € 1,056 € 1,345 |
Tax expense (Tables)
Tax expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Summary of tax expense | The following table summarizes Tax expense: Years ended December 31, 2019 2018 2017 (€ million) Current tax expense € 435 € 592 € 832 Deferred tax expense 872 520 1,776 Tax expense/(benefit) relating to prior periods 14 (334 ) (20 ) Total Tax expense € 1,321 € 778 € 2,588 |
Reconciliation between theoretical income taxes and income taxes recognized | Years ended December 31, 2019 2018 2017 (€ million) Theoretical income taxes € 766 € 781 € 1,126 Tax effect on: Recognition and utilization of previously unrecognized deferred tax assets (159 ) — (161 ) Permanent differences (411 ) (416 ) (397 ) Tax credits (112 ) (135 ) (23 ) Deferred tax assets not recognized and write-downs 976 633 1,053 Differences between foreign tax rates and the theoretical applicable tax rate and tax holidays 171 207 970 Taxes relating to prior years 14 (334 ) (20 ) Tax rate changes 9 — (22 ) Withholding tax 41 41 78 Other differences 20 (15 ) (8 ) Total Tax expense, excluding IRAP (1) 1,315 762 2,596 Effective tax rate 32.7 % 18.5 % 44.2 % IRAP (current and deferred) 6 16 (8 ) Total Tax expense € 1,321 € 778 € 2,588 |
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, 2019 and 2018 were as follows: At January 1, 2019 (1) Recognized in Consolidated Income Statement Recognized in Equity Transferred to Assets/(Liabilities) Held for Sale Translation At December 31, 2019 (€ million) Deferred tax assets arising on: Provisions € 4,127 € (470 ) € — € 10 € 6 € 3,673 Provision for employee benefits 1,487 (41 ) 1 1 22 1,470 Lease liabilities (1) 260 106 — (1 ) 4 369 Intangible assets 166 (15 ) — — — 151 Impairment of financial assets 155 (1 ) — — 12 166 Inventories 246 (56 ) — — (2 ) 188 Allowances for doubtful accounts 96 13 — — (4 ) 105 Other 685 (22 ) (4 ) 1 42 702 Total Deferred tax assets € 7,222 € (486 ) € (3 ) € 11 € 80 € 6,824 Deferred tax liabilities arising on: Accelerated depreciation € (2,296 ) € (33 ) € — € (1 ) € — € (2,330 ) Capitalized development assets (2,440 ) (129 ) — — (32 ) (2,601 ) Other Intangible assets and Intangible assets with indefinite useful lives (912 ) 36 — — (72 ) (948 ) Right-of-use assets (1) (260 ) (101 ) — — (4 ) (365 ) Provision for employee benefits (91 ) (9 ) 22 — 1 (77 ) Other (424 ) 156 38 — (17 ) (247 ) Total Deferred tax liabilities € (6,423 ) € (80 ) € 60 € (1 ) € (124 ) € (6,568 ) Deferred tax asset arising on tax loss carry-forwards € 4,963 € 106 € — € 12 € (220 ) € 4,861 Unrecognized deferred tax assets (4,885 ) (407 ) — (20 ) 256 (5,056 ) Total Net deferred tax assets € 877 € (867 ) € 57 € 2 € (8 ) € 61 ______________________________________________________________________________________________________________________________ (1) Net deferred tax assets at January 1, 2019 has been adjusted for the deferred tax impact arising from Right-of-use assets and Lease liabilities following the adoption of IFRS 16. Refer to Note 2. , Basis of preparation for additional information on the adoption of IFRS 16. At January 1, 2018 Recognized in Recognized in Equity Transferred to Assets/(Liabilities) Held for Sale Translation At December 31, 2018 (€ million) Deferred tax assets arising on: Provisions € 3,848 € 240 € — € (55 ) € 94 € 4,127 Provision for employee benefits 1,828 (280 ) (77 ) (31 ) 47 1,487 Intangible assets 192 (24 ) — (2 ) — 166 Impairment of financial assets 169 (1 ) — (13 ) — 155 Inventories 252 22 — (24 ) (4 ) 246 Allowances for doubtful accounts 122 (6 ) — (7 ) (13 ) 96 Other 387 48 4 (77 ) 323 685 Total Deferred tax assets € 6,798 € (1 ) € (73 ) € (209 ) € 447 € 6,962 Deferred tax liabilities arising on: Accelerated depreciation € (1,891 ) € (386 ) € — € 29 € (48 ) € (2,296 ) Capitalized development expenditures (2,116 ) (103 ) — 81 (302 ) (2,440 ) Other Intangible assets and Intangible assets with indefinite useful lives (849 ) (20 ) — 2 (45 ) (912 ) Provision for employee benefits (50 ) (2 ) (1 ) 3 (41 ) (91 ) Other (314 ) (103 ) 5 86 (98 ) (424 ) Total Deferred tax liabilities € (5,220 ) € (614 ) € 4 € 201 € (534 ) € (6,163 ) Deferred tax asset arising on tax loss carry-forwards € 4,718 € 708 € — € (328 ) € (135 ) € 4,963 Unrecognized deferred tax assets (4,680 ) (662 ) (12 ) 308 161 (4,885 ) Total Net deferred tax assets € 1,616 € (569 ) € (81 ) € (28 ) € (61 ) € 877 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, 2019 2018 (€ million) Deferred tax assets € 1,689 € 1,814 Deferred tax liabilities (1,628 ) (937 ) Total Net deferred tax assets € 61 € 877 Total gross deductible and taxable temporary differences and accumulated tax losses at December 31, 2019 , 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, 2019 2020 2021 2022 2023 Beyond 2023 Unlimited/ (€ million) Temporary differences and tax losses relating to corporate taxation: Deductible temporary differences € 27,294 € 3,701 € 3,019 € 2,834 € 3,068 € 14,340 € 332 Taxable temporary differences (26,931 ) (2,623 ) (2,664 ) (2,689 ) (2,746 ) (13,054 ) (3,155 ) Tax losses 18,135 71 83 90 185 1,500 16,206 Amounts for which deferred tax assets were not recognized (18,089 ) (560 ) (107 ) (31 ) (597 ) (2,885 ) (13,909 ) Temporary differences and tax losses relating to corporate taxation € 409 € 589 € 331 € 204 € (90 ) € (99 ) € (526 ) Temporary differences and tax losses relating to local taxation (i.e. IRAP in Italy): Deductible temporary differences € 9,674 € 1,145 € 648 € 574 € 1,083 € 6,171 € 53 Taxable temporary differences (7,896 ) (724 ) (706 ) (706 ) (762 ) (4,895 ) (103 ) Tax losses 4,985 1 — 1 — 5 4,978 Amounts for which deferred tax assets (6,290 ) (410 ) (69 ) (10 ) (503 ) (638 ) (4,660 ) Temporary differences and tax losses relating to local taxation € 473 € 12 € (127 ) € (141 ) € (182 ) € 643 € 268 |
Goodwill and intangible asset_2
Goodwill and intangible assets with indefinite useful lives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Summary of goodwill and intangible assets with indefinite useful lives | Goodwill and intangible assets with indefinite useful lives at December 31, 2019 and 2018 are summarized below: Goodwill Gross amount Accumulated impairment losses Total Goodwill Brands Total Goodwill and intangible assets with indefinite useful lives (€ million) At January 1, 2018 € 10,850 € (454 ) € 10,396 € 2,994 € 13,390 Transfers to Assets held for sale (96 ) 33 (63 ) — (63 ) Translation differences and Other 500 1 501 142 643 At December 31, 2018 11,254 (420 ) 10,834 3,136 13,970 Additions 34 — 34 — 34 Transfers to Assets held for sale (11 ) — (11 ) — (11 ) Translation differences and Other 162 46 208 56 264 At December 31, 2019 € 11,439 € (374 ) € 11,065 € 3,192 € 14,257 |
Summary of allocation of goodwill | The following table summarizes the allocation of Goodwill between FCA's reportable segments: At December 31, 2019 2018 (€ million) North America € 9,059 € 8,855 APAC 1,174 1,152 LATAM 563 552 EMEA 269 264 Other activities — 11 Total Goodwill € 11,065 € 10,834 |
Other intangible assets (Tables
Other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Detailed Information About Other Intangible Assets | Capitalized development expenditures Patents, concessions, licenses and credits Other Total (€ million) Gross carrying amount at January 1, 2018 € 19,899 € 3,583 € 804 € 24,286 Additions 2,235 639 93 2,967 Divestitures (568 ) (224 ) (89 ) (881 ) Transfer to Assets held for sale (1,553 ) (132 ) (131 ) (1,816 ) Translation differences and other changes 215 133 (41 ) 307 At December 31, 2018 20,228 3,999 636 24,863 Additions 2,889 600 67 3,556 Divestitures (338 ) (127 ) (82 ) (547 ) Transfer to Assets held for sale — (3 ) (16 ) (19 ) Translation differences and other changes 147 103 (5 ) 245 At December 31, 2019 22,926 4,572 600 28,098 Accumulated amortization and impairment losses 10,202 2,029 513 12,744 Amortization 1,543 379 50 1,972 Impairment losses and asset write-offs 153 — — 153 Divestitures (553 ) (30 ) (89 ) (672 ) Transfer to Assets held for sale (973 ) (98 ) (91 ) (1,162 ) Translation differences and other changes 31 82 (34 ) 79 At December 31, 2018 10,403 2,362 349 13,114 Amortization 1,358 426 48 1,832 Impairment losses and asset write-offs 949 — 4 953 Divestitures (337 ) (2 ) (8 ) (347 ) Transfer to Assets held for sale — (3 ) (13 ) (16 ) Translation differences and other changes 46 72 (3 ) 115 At December 31, 2019 12,419 2,855 377 15,651 Carrying amount at December 31, 2018 € 9,825 € 1,637 € 287 € 11,749 Carrying amount at December 31, 2019 € 10,507 € 1,717 € 223 € 12,447 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | Land Industrial Plant, machinery and equipment Other Advances and Total (€ million) Gross carrying amount at January 1, 2018 € 885 € 8,494 € 51,053 € 3,003 € 2,812 € 66,247 Additions 7 183 1,976 84 811 3,061 Divestitures (11 ) (16 ) (872 ) (40 ) (5 ) (944 ) Translation differences (10 ) (34 ) 123 57 47 183 Transfer to Assets held for sale (21 ) (401 ) (3,870 ) (294 ) (299 ) (4,885 ) Other changes 1 113 1,607 56 (1,838 ) (61 ) At December 31, 2018 851 8,339 50,017 2,866 1,528 63,601 IFRS 16 adoption effect 26 888 77 78 — 1,069 Balance at January 1, 2019 877 9,227 50,094 2,944 1,528 64,670 Additions 33 274 1,587 222 3,287 5,403 Divestitures (40 ) (46 ) (1,135 ) (124 ) (3 ) (1,348 ) Change in the scope of consolidation — — 63 — 1 64 Translation differences 8 96 507 45 19 675 Transfer to Assets held for sale (15 ) (149 ) (502 ) (17 ) (23 ) (706 ) Other changes 36 25 857 (4 ) (886 ) 28 At December 31, 2019 899 9,427 51,471 3,066 3,923 68,786 Accumulated depreciation and impairment losses at January 1, 2018 37 3,298 32,082 1,800 16 37,233 Depreciation — 283 3,303 262 — 3,848 Divestitures (5 ) — (851 ) (34 ) — (890 ) Impairment losses and asset write-offs — — 140 — 4 144 Translation differences — (1 ) 89 30 — 118 Transfer to Assets held for sale — (204 ) (2,663 ) (223 ) (2 ) (3,092 ) Other changes — (11 ) (68 ) 20 (8 ) (67 ) At December 31, 2018 32 3,365 32,032 1,855 10 37,294 IFRS 16 adoption effect — — — — — — Balance at January 1, 2019 32 3,365 32,032 1,855 10 37,294 Depreciation 3 411 2,876 323 — 3,613 Divestitures (2 ) (32 ) (1,098 ) (115 ) — (1,247 ) Impairment losses and asset write-offs — 2 618 16 — 636 Change in the scope of consolidation — — 11 — — 11 Translation differences — 29 305 25 — 359 Transfer to Assets held for sale (3 ) (107 ) (384 ) (17 ) (1 ) (512 ) Other changes — 9 19 (4 ) — 24 At December 31, 2019 30 3,677 34,379 2,083 9 40,178 Carrying amount at December 31, 2018 € 819 € 4,974 € 17,985 € 1,011 € 1,518 € 26,307 Carrying amount at December 31, 2019 € 869 € 5,750 € 17,092 € 983 € 3,914 € 28,608 |
Disclosure of quantitative information about right-of-use assets | Changes in Right-of-use assets are as follows: Land Industrial buildings Plant, machinery and equipment Other assets Total (€ million) Balance at December 31, 2018 € — € 197 € 129 € — € 326 IFRS 16 adoption effect 26 888 77 78 1,069 Balance at January 1, 2019 (1) 26 1,085 206 78 1,395 Depreciation (3 ) (150 ) (100 ) (93 ) (346 ) Additions 11 167 236 163 577 Change in the scope of consolidation — 18 26 — 44 Translation differences 1 24 2 1 28 Other (28 ) (24 ) (21 ) (4 ) (77 ) Balance at December 31, 2019 € 7 € 1,120 € 349 € 145 € 1,621 ______________________________________________________________________________________________________________________________ (1) The opening balance as of January 1, 2019 includes €326 million of assets previously recognized in accordance with IAS 17. |
Disclosure of property, plant, and equipment pledged as security | The carrying amounts of Property, plant and equipment of the Group (excluding the Right-of-Use assets described above) reported as pledged as security for debt and other commitments, primarily relating to our operations in Brazil, are summarized as follows: At December 31, 2019 2018 (€ million) Land and industrial buildings pledged as security for debt € 777 € 892 Plant and machinery pledged as security for debt and other commitments 855 1,241 Other assets pledged as security for debt and other commitments 5 81 Total Property, plant and equipment pledged as security for debt and other commitments € 1,637 € 2,214 |
Investments accounted for usi_2
Investments accounted for using the equity method (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in associates | The following table summarizes Investments accounted for using the equity method: At December 31, 2019 2018 (€ million) Joint ventures € 1,871 € 1,866 Associates 94 96 Other 44 40 Total Investments accounted for using the equity method € 2,009 € 2,002 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, 2019 2018 2017 (€ million) Joint ventures: (Loss)/profit from continuing operations € (28 ) € 27 € 192 Net (loss)/profit (28 ) 27 192 Other comprehensive loss (19 ) (91 ) (105 ) Total Other comprehensive (loss)/income € (47 ) € (64 ) € 87 Associates: (Loss)/income from continuing operations € (2 ) € 6 € 9 Net (loss)/income (2 ) 6 9 Other comprehensive loss — (3 ) (3 ) Total Other comprehensive (loss)/income € (2 ) € 3 € 6 The following table summarizes the share of profits of equity method investees included within Result from investments : Years ended December 31, 2019 2018 2017 (€ million) Joint Ventures € 200 € 221 € 381 Associates (2 ) 6 9 Other 10 13 10 Total Share of the profit of equity method investees € 208 € 240 € 400 |
Disclosure of interests in joint ventures | The following table summarizes Investments accounted for using the equity method: At December 31, 2019 2018 (€ million) Joint ventures € 1,871 € 1,866 Associates 94 96 Other 44 40 Total Investments accounted for using the equity method € 2,009 € 2,002 The following table summarizes the share of profits of equity method investees included within Result from investments : Years ended December 31, 2019 2018 2017 (€ million) Joint Ventures € 200 € 221 € 381 Associates (2 ) 6 9 Other 10 13 10 Total Share of the profit of equity method investees € 208 € 240 € 400 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, 2019 2018 2017 (€ million) Joint ventures: (Loss)/profit from continuing operations € (28 ) € 27 € 192 Net (loss)/profit (28 ) 27 192 Other comprehensive loss (19 ) (91 ) (105 ) Total Other comprehensive (loss)/income € (47 ) € (64 ) € 87 Associates: (Loss)/income from continuing operations € (2 ) € 6 € 9 Net (loss)/income (2 ) 6 9 Other comprehensive loss — (3 ) (3 ) Total Other comprehensive (loss)/income € (2 ) € 3 € 6 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, 2019 2018 2019 2018 Joint ventures Ownership percentage (€ million) FCA Bank S.p.A. 50.0% 50.0% € 1,501 € 1,360 Tofas-Turk Otomobil Fabrikasi A.S. 37.9% 37.9% 240 233 GAC Fiat Chrysler Automobiles Co. 50.0% 50.0% 107 216 Others 23 57 Total € 1,871 € 1,866 |
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, 2019 At December 31, 2018 (€ million) Financial assets € 26,995 € 26,180 Of which: Cash and cash equivalents 767 363 Other assets 4,889 4,356 Financial liabilities 27,133 26,265 Other liabilities 1,643 1,393 Equity (100%) 3,108 2,878 Net assets attributable to owners of the parent 3,058 2,829 Carrying amount of interest in FCA Bank Group's share of net assets 1,529 1,415 Elimination of unrealized profits and other adjustments (28 ) (55 ) Carrying amount of interest in FCA Bank (1) € 1,501 € 1,360 ______________________________________________________________________________________________________________________________ (1) Amounts as at December 31, 2019 and 2018 respectively. Six months ended June 30 Years ended December 31, 2019 2018 2017 (€ million) Interest and similar income € 466 € 903 € 855 Interest and similar expenses (117 ) (242 ) (266 ) Income tax expense (75 ) (159 ) (139 ) Profit from continuing operations 238 388 383 Net profit 238 388 383 Net profit attributable to owners of the parent (A) 236 383 378 Other comprehensive income/(loss) attributable to owners of the parent (B) (8 ) (5 ) (8 ) Total Comprehensive income attributable to owners of the parent (A+B) € 228 € 378 € 370 Group’s share of net profit (1) € 229 € 192 € 189 ______________________________________________________________________________________________________________________________ (1) Amounts for the years ended December 31, 2019 , 2018 and 2017 respectively |
Other financial assets (Tables)
Other financial assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of financial assets [abstract] | |
Disclosure of other financial assets | Other financial assets consisted of the following: At December 31, 2019 2018 Note Current Non-current Total Current Non-current Total (€ million) Derivative financial assets 16 € 93 € 5 € 98 € 283 € 14 € 297 Debt securities measured at fair value through profit or loss 23 233 — 233 230 — 230 Debt securities measured at amortized cost 297 2 299 61 2 63 Equity instruments measured at fair value through other comprehensive income 23 — 37 37 — 31 31 Equity instruments mandatorily designated at fair value through profit and loss 23 47 12 59 41 2 43 Financial receivables — 242 242 — 252 252 Collateral deposits (1) 23 — 42 42 — 61 61 Total Other financial assets € 670 € 340 € 1,010 € 615 € 362 € 977 ______________________________________________________________________________________________________________________________ (1) Collateral deposits are held in connection with derivative transactions and debt obligations. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Disclosure of inventory | 14. Inventories At December 31, 2019 2018 (€ million) Finished goods and goods for resale € 5,600 € 6,776 Work-in-progress, raw materials and manufacturing supplies 3,928 3,783 Amount due from customers for contract work 194 135 Total Inventories € 9,722 € 10,694 |
Amounts due from customers for contract work | The Construction contracts, net asset/(liability) relates to the design and production of industrial automation systems and related products and is summarized as follows: At December 31, 2019 2018 (€ million) Aggregate amount of costs incurred and recognized profits (less recognized losses) to date € 826 € 954 Less: Progress billings 715 912 Construction contracts, net asset/(liability) 111 42 Construction contract assets 194 135 Less: Construction contract liabilities (Note 22) 83 93 Construction contracts, net asset/(liability) € 111 € 42 |
Explanation of significant changes in contract assets and contract liabilities [text block] | Changes in the Group's construction contracts, net asset/(liability) for the year ended December 31, 2019 , were as follows: At January 1, 2019 Advances received from customers Amounts recognized within revenue At December 31, 2019 (€ million) Construction contracts, net asset/(liability) € 42 € (603 ) € 672 € 111 Changes in the Group's service contract liability for the year ended December 31, 2019 , were as follows: At January 1, 2019 Advances received from customers Amounts recognized within revenue Transfers to Assets/(Liabilities) held for sale Other Changes At December 31, 2019 (€ million) Service contract liability € 2,089 € 839 € (721 ) € — € (56 ) € 2,151 |
Trade, other receivables and _2
Trade, other receivables and tax receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 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 € 2,064 € — € — € — € 2,064 € 2,048 € — € — € — € 2,048 Receivables from financing activities 2,855 294 6 300 3,155 3,304 297 13 310 3,614 Other receivables 1,709 695 1,381 2,076 3,785 1,836 1,086 88 1,174 3,010 Total Trade and other receivables € 6,628 € 989 € 1,387 € 2,376 € 9,004 € 7,188 € 1,383 € 101 € 1,484 € 8,672 Tax receivables € 372 € 51 € 43 € 94 € 466 € 419 € 53 € 18 € 71 € 490 |
Disclosure of allowance for credit losses | Trade receivables are shown net of an ECL allowance, which is calculated using the simplified approach. Changes in the allowance for trade receivables were as follows: At January 1, 2019 Provision Use and Transferred to Assets held for sale At December 31, 2019 (€ million) ECL allowance - Trade receivables € 247 € 32 € (42 ) € — € 237 Receivables from financing activities are shown net of an ECL allowance. Changes in the allowance for receivables from financing activities were as follows: At January 1, 2019 Provision Use and Transferred to Assets held for sale At December 31, 2019 (€ million) ECL allowance - Receivables from financing activities € 27 € 68 € (72 ) € — € 23 |
Disclosure of credit risk exposure | The following table provides information about the exposure to credit risk and ECLs for trade receivables: At December 31, 2019 2018 Current and less than 90 days past due 90 days or more past due Total Current and less than 90 days past due 90 days or more past due Total (€ million) Gross amount € 1,989 € 293 € 2,282 € 1,920 € 310 € 2,230 ECL allowance (53 ) (184 ) (237 ) (65 ) (182 ) (247 ) Carrying amount € 1,936 € 109 € 2,045 € 1,855 € 128 € 1,983 The following table provides information about the exposure to credit risk and ECLs for receivables from financing activities: At December 31, 2019 2018 Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total (€ million) Gross amount € 2,369 € 194 € 35 € 2,598 € 2,465 € 168 € 35 € 2,668 ECL allowance (10 ) (2 ) (11 ) (23 ) (13 ) (2 ) (12 ) (27 ) Carrying amount € 2,359 € 192 € 24 € 2,575 € 2,452 € 166 € 23 € 2,641 |
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, 2019 2018 (€ million) Dealer financing € 2,317 € 2,654 Retail financing 613 601 Finance leases 3 3 Other 222 356 Total Receivables from financing activities € 3,155 € 3,614 |
Disclosure of transferred financial assets that are not derecognised in their entirety | At December 31, 2019 and 2018 , the carrying amount of transferred financial assets not derecognized and the related liabilities were as follows: At December 31, 2019 2018 Trade receivables Receivables financing Total Trade receivables Receivables financing Total (€ million) Carrying amount of assets transferred and not derecognized € 11 € 140 € 151 € 30 € 427 € 457 Carrying amount of the related liabilities (Note 21) € 11 € 140 € 151 € 30 € 427 € 457 |
Derivative financial assets a_2
Derivative financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Positive fair Negative fair Positive fair Negative fair (€ million) Fair value hedges: Interest rate risk - interest rate swaps € — € — € — € — Total Fair value hedges — — — — Cash flow hedges: Currency risks - forward contracts, currency swaps and currency options 34 (81 ) 149 (75 ) Interest rate risk - interest rate swaps — (180 ) 22 (16 ) Interest rate and currency risk - combined interest rate and currency swaps — — 17 — Commodity price risk – commodity swaps and commodity options 21 (6 ) 41 (59 ) Total Cash flow hedges 55 (267 ) 229 (150 ) Net investment hedges: Currency risks - forward contracts, currency swaps and currency options — — — — Total Net investment hedges — — — — Derivatives for trading 43 (51 ) 68 (57 ) Total Fair value of derivative financial assets/(liabilities) € 98 € (318 ) € 297 € (207 ) Financial derivative assets/(liabilities) - current € 93 € (194 ) € 283 € (204 ) Financial derivative assets/(liabilities) - non-current € 5 € (124 ) € 14 € (3 ) |
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, 2019 2018 Due within one year Due between one and Due beyond Total Due within one year Due between Due Total (€ million) Currency risk management € 11,259 € 30 € — € 11,289 € 12,782 € 75 € — € 12,857 Interest rate risk management 1,105 1,700 — 2,805 1,630 1,144 — 2,774 Interest rate and currency risk management 9 22 — 31 236 34 — 270 Commodity price risk management 523 27 — 550 919 28 — 947 Other derivative financial instruments — 14 — 14 — 14 — 14 Total Notional amount € 12,896 € 1,793 € — € 14,689 € 15,567 € 1,295 € — € 16,862 |
Summary of fair value hedges | Years ended December 31, 2019 2018 2017 (€ million) Currency risk Net gains/(losses) on qualifying hedges € — € — € 104 Fair value changes in hedged items — — (104 ) Interest rate risk Net (losses) on qualifying hedges — (2 ) (9 ) Fair value changes in hedged items — 2 10 Net gains/(losses) € — € — € 1 |
Summary of reclassification adjustments from Other comprehensive income to Consolidated Income Statement | Years ended December 31, 2019 2018 2017 (€ million) Currency risk (Decrease)/increase in Net revenues € (27 ) € 100 € 8 Increase in Cost of revenues (29 ) (17 ) (96 ) Net financial income/(expenses) 4 2 (22 ) Result from investments 1 24 28 Interest rate risk Result from investments (2 ) 1 (1 ) Net financial expenses — — (3 ) Commodity price risk Decrease in Cost of revenues 7 29 28 Ineffectiveness and discontinued hedges (33 ) (5 ) 4 Tax (benefit)/expense (3 ) (36 ) 27 Items relating to discontinued operations, net of tax 2 9 1 Total recognized in the Consolidated Income Statement € (80 ) € 107 € (26 ) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Cash and cash equivalents | Cash and cash equivalents consisted of the following: At December 31, 2019 2018 (€ million) Cash at banks € 5,166 € 4,774 Money market securities 2,293 4,352 Other cash equivalents 7,555 3,324 Total Cash and cash equivalents € 15,014 € 12,450 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Payment Arrangements [Abstract] | |
Disclosure of number and weighted average exercise prices of other equity instruments | Changes during 2019 for the PSU Adjusted EBIT awards under the framework equity incentive plan were as follows: 2019 PSU Adjusted EBIT Weighted Outstanding shares unvested at January 1 — € — Anti-dilution adjustment 524,308 10.18 Granted 5,182,071 11.26 Vested — — Canceled — — Forfeited (145,740 ) 11.28 Outstanding shares unvested at December 31 5,560,639 € 10.19 Changes during 2019 , 2018 and 2017 for the PSU TSR awards under the framework equity incentive plan were as follows: 2019 2018 2017 PSU TSR Weighted PSU TSR Weighted PSU TSR Weighted Outstanding shares unvested at January 1 6,926,413 € 11.42 8,803,827 € 10.58 11,379,446 € 10.64 Anti-dilution adjustment 644,588 10.60 32,855 10.54 65,750 10.58 Granted 5,189,237 11.58 2,473,637 13.15 1,136,250 10.84 Vested (4,295,594 ) 10.67 (3,857,502 ) 10.51 (3,758,869 ) 10.63 Canceled (1,385,046 ) 12.99 — — — — Forfeited (282,107 ) 11.94 (526,404 ) 11.50 (18,750 ) 10.84 Outstanding shares unvested at December 31 6,797,491 € 10.61 6,926,413 € 11.42 8,803,827 € 10.58 Changes during 2019 , 2018 and 2017 for the RSU awards under the framework equity incentive plan were as follows: 2019 2018 2017 RSUs Weighted RSUs Weighted RSUs Weighted Outstanding shares unvested at January 1 4,290,986 € 10.47 7,600,313 € 9.17 7,969,623 € 8.69 Anti-dilution adjustment 761,529 10.49 28,299 9.12 46,189 8.64 Granted 7,160,764 11.35 627,081 18.54 2,293,940 10.43 Vested (3,347,345 ) 9.93 (3,690,050 ) 9.09 (2,671,939 ) 8.64 Canceled — — — — — — Forfeited (712,895 ) 10.05 (274,657 ) 10.28 (37,500 ) 10.39 Outstanding shares unvested at December 31 8,153,039 € 10.51 4,290,986 € 10.47 7,600,313 € 9.17 Changes during 2019 , 2018 and 2017 for the PSU NI awards under the framework equity incentive plan were as follows: 2019 2018 2017 PSU NI Weighted PSU NI Weighted PSU NI Weighted Outstanding shares unvested at January 1 4,568,830 € 6.14 8,803,826 € 5.89 11,379,445 € 5.65 Anti-dilution adjustment 25,516 4.91 32,855 5.87 65,751 5.62 Granted — — 71,136 9.73 1,136,250 7.91 Vested (4,295,593 ) 6.24 (3,857,502 ) 5.58 (3,758,870 ) 5.65 Canceled — — — — — — Forfeited (36,369 ) 6.62 (481,485 ) 6.27 (18,750 ) 7.91 Outstanding shares unvested at December 31 262,384 € 4.91 4,568,830 € 6.14 8,803,826 € 5.89 |
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 TSR awards issued are summarized below: Key assumptions 2019 PSU TSR Awards Range 2018 PSU TSR Awards Range 2017 PSU TSR Awards Range 2015 PSU TSR Awards Range Grant date stock price € 13.10 € 18.79 €9.74 - €10.39 €13.44 - €15.21 Expected volatility 39 % 41 % 44 % 37% - 39% Dividend yield 5 % — % — % — % Risk-free rate (0.7 )% (0.3 )% (0.8 )% 0.7% - 0.8% 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 % |
Disclosure of anti-dilutive securities | The following table reflects the changes resulting from the anti-dilution adjustments: 2019 Anti-dilution adjustment 2018 Anti-dilution adjustment 2017 Anti-dilution adjustment 2016 Anti-dilution adjustment PSU Awards: Number of awards - as adjusted 12,620,514 17,673,363 22,890,392 22,717,024 Key assumptions - as adjusted: Grant date stock price - for PSU NI, PSU TSR and PSU Adjusted EBIT €8.79 - €16.96 €5.71 - €10.35 €8.66 - €9.79 €8.71 - €9.85 RSU Awards: Number of awards - as adjusted 8,153,039 7,628,612 8,015,812 8,023,472 |
Employee benefits liabilities (
Employee benefits liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
Employee benefits liabilities | Employee benefits liabilities consisted of the following: At December 31, 2019 2018 Current Non-current Total Current Non-current Total (€ million) Pension benefits € 38 € 5,024 € 5,062 € 34 € 4,475 € 4,509 Health care and life insurance plans 132 2,157 2,289 134 2,082 2,216 Other post-employment benefits 63 730 793 82 737 819 Other provisions for employees 311 596 907 345 581 926 Total Employee benefits liabilities € 544 € 8,507 € 9,051 € 595 € 7,875 € 8,470 |
Defined benefit obligations | The following table summarizes changes in the pension plans: 2019 2018 Obligation Fair value of plan assets Asset ceiling Liability/ (Asset) Obligation Fair value of plan assets Asset ceiling Liability/ (€ million) At January 1 € 22,767 € (18,819 ) € 13 € 3,961 € 25,528 € (21,218 ) € 14 € 4,324 Included in the Consolidated Income Statement 1,111 (713 ) — 398 1,189 (680 ) — 509 Included in Other comprehensive income: Actuarial (gains)/losses from: Demographic and other assumptions (359 ) — — (359 ) (196 ) — — (196 ) Financial assumptions 2,773 — — 2,773 (1,530 ) — — (1,530 ) Return on assets — (2,454 ) — (2,454 ) — 1,530 — 1,530 Changes in the effect of limiting net assets — — 3 3 — — (1 ) (1 ) Changes in exchange rates 618 (564 ) 2 56 792 (584 ) — 208 Other: Employer contributions — (48 ) — (48 ) — (756 ) — (756 ) Plan participant contributions 2 (2 ) — — 2 (2 ) — — Benefits paid (1,520 ) 1,506 — (14 ) (1,568 ) 1,556 — (12 ) Settlements paid (394 ) 394 — — (1,187 ) 1,187 — — Transfer to Liabilities held for sale — — — — (268 ) 126 — (142 ) Other changes 26 (29 ) — (3 ) 5 22 — 27 At December 31 € 25,024 € (20,729 ) € 18 € 4,313 € 22,767 € (18,819 ) € 13 € 3,961 Changes in defined benefit obligations for other post-employment benefits were as follows: 2019 2018 (€ million) Present value of obligations at January 1 € 819 € 987 Included in the Consolidated Income Statement 20 23 Included in Other comprehensive income: Actuarial (gains)/losses from: - Demographic and other assumptions 11 2 - Financial assumptions 41 (5 ) Effect of movements in exchange rates 3 (3 ) Other: Benefits paid (90 ) (50 ) Transfer to Liabilities held for sale (20 ) (98 ) Other changes 9 (37 ) Present value of obligations at December 31 € 793 € 819 The following table summarizes the fair value of defined benefit obligations and the fair value of related plan assets: At December 31, 2019 2018 (€ million) Present value of defined benefit obligations: Pension benefits € 25,024 € 22,767 Health care and life insurance plans 2,289 2,216 Other post-employment benefits 793 819 Total present value of defined benefit obligations (a) 28,106 25,802 Fair value of plan assets (b) 20,729 18,819 Asset ceiling (c) 18 13 Total net defined benefit plans (a - b + c) 7,395 6,996 of which: Net defined benefit liability (d) 8,144 7,544 Defined benefit plan asset (749 ) (548 ) Other provisions for employees (e) 907 926 Total Employee benefits liabilities (d + e) € 9,051 € 8,470 Changes in net defined benefit obligations for healthcare and life insurance plans were as follows: 2019 2018 (€ million) Present value of obligations at January 1 € 2,216 € 2,279 Included in the Consolidated Income Statement 115 110 Included in Other comprehensive income: Actuarial (gains)/losses from: - Demographic and other assumptions (215 ) 37 - Financial assumptions 251 (161 ) Effect of movements in exchange rates 57 81 Other: Benefits paid (135 ) (128 ) Transfer to Liabilities held for sale — (2 ) Present value of obligations at December 31 € 2,289 € 2,216 |
Disclosure of information about maturity profile of defined benefit obligation | The expected benefit payments for pension plans are as follows: Expected benefit (€ million) 2020 € 1,524 2021 € 1,483 2022 € 1,472 2023 € 1,460 2024 € 1,465 2025-2029 € 7,282 The expected benefit payments for unfunded health care and life insurance plans are as follows: Expected benefit payments (€ million) 2020 € 132 2021 € 131 2022 € 129 2023 € 129 2024 € 128 2025-2029 € 633 |
Amounts recognized in the consolidated income statement | Amounts recognized in the Consolidated Income Statement were as follows: Years ended December 31, 2019 2018 2017 (€ million) Current service cost € 20 € 22 € 22 Interest expense 96 88 98 Past service costs/(credits) and losses/(gains) arising from settlements (1 ) — — Total recognized in the Consolidated Income Statement € 115 € 110 € 120 Amounts recognized in the Consolidated Income Statement were as follows: Years ended December 31, 2019 2018 2017 (€ million) Current service cost € 6 € 9 € 9 Interest expense 12 14 11 Past service costs/(credits) and losses/(gains) arising from settlements 1 — — Items relating to discontinued operations 1 — 3 Total recognized in the Consolidated Income Statement € 20 € 23 € 23 Amounts recognized in the Consolidated Income Statement were as follows: Years ended December 31, 2019 2018 2017 (€ million) Current service cost € 156 € 172 € 169 Interest expense 969 925 1,083 Interest income (795 ) (759 ) (907 ) Other administration costs 82 79 94 Past service costs/(credits) and (gains)/losses arising from settlements/curtailments (14 ) 92 (3 ) Items relating to discontinued operations — — 6 Total recognized in the Consolidated Income Statement € 398 € 509 € 442 |
Fair value of plan assets by class | The fair value of plan assets by class was as follows: At December 31, 2019 2018 Amount of which have a Amount of which have a (€ million) Cash and cash equivalents € 699 € 681 € 672 € 615 U.S. equity securities 1,407 1,405 1,286 1,284 Non-U.S. equity securities 781 781 784 757 Commingled funds 1,596 422 1,833 606 Equity instruments 3,784 2,608 3,903 2,647 Government securities 3,179 1,191 2,717 916 Corporate bonds (including convertible and high yield bonds) 5,553 — 4,944 — Other fixed income 1,536 174 1,307 86 Fixed income securities 10,268 1,365 8,968 1,002 Private equity funds 2,297 — 2,066 — Commingled funds 65 62 56 53 Real estate funds 1,349 3 1,392 3 Hedge funds 2,072 38 1,676 26 Investment funds 5,783 103 5,190 82 Insurance contracts and other 195 66 86 12 Total fair value of plan assets € 20,729 € 4,823 € 18,819 € 4,358 |
Weighted average assumptions | The weighted average assumptions used to determine the defined benefit obligations were as follows: At December 31, 2019 2018 U.S. Canada U.S. Canada Discount rate 3.4 % 3.1 % 4.4 % 3.8 % Salary growth 1.5 % 1.0 % 1.5 % 1.0 % Weighted average ultimate healthcare cost trend rate 4.4 % 4.0 % 4.4 % 4.0 % The weighted average assumptions used to determine defined benefit obligations were as follows: At December 31, 2019 2018 U.S. Canada UK U.S. Canada UK Discount rate 3.3 % 3.1 % 2.0 % 4.4 % 3.8 % 2.8 % Future salary increase rate — % 3.5 % 2.7 % — % 3.5 % 3.0 % |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of changes in other provisions | Provisions consisted of the following: At December 31, 2019 2018 (1) Current Non-current Total Current Non-current Total (€ million) Product warranty and recall campaigns € 2,406 € 3,900 € 6,306 € 2,745 € 4,015 € 6,760 Sales incentives 5,479 — 5,479 5,999 — 5,999 Legal proceedings and disputes (1) 303 222 525 760 280 1,040 Commercial risks 441 120 561 442 272 714 Restructuring 72 34 106 134 31 165 Other risks 277 751 1,028 314 815 1,129 Total Provisions € 8,978 € 5,027 € 14,005 € 10,394 € 5,413 € 15,807 |
Disclosure of other provisions | Changes in Provisions were as follows: At Additional Settlements Unused Translation differences Transfer to Liabilities held for sale Other At (€ million) Product warranty and recall campaigns € 6,760 € 3,059 € (3,655 ) € — € 145 € — € (3 ) € 6,306 Sales incentives 5,999 14,864 (15,573 ) 63 131 — (5 ) 5,479 Legal proceedings and disputes (1) 1,040 167 (680 ) (24 ) 16 (18 ) 24 525 Commercial risks 714 353 (408 ) (28 ) 12 (18 ) (64 ) 561 Restructuring costs 165 118 (111 ) (50 ) 1 (1 ) (16 ) 106 Other risks 1,129 355 (334 ) (63 ) 7 (17 ) (49 ) 1,028 Total Provisions € 15,807 € 18,916 € (20,761 ) € (102 ) € 312 € (54 ) € (113 ) € 14,005 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Due Due Due Total (non-current) Total Debt Due within Due Due Total (non-current) Total Debt (€ million) Notes € 1,450 € 4,942 € — € 4,942 € 6,392 € 1,598 € 4,977 € 1,250 € 6,227 € 7,825 Borrowings from banks (1) 2,097 1,511 88 1,599 3,696 2,928 1,987 190 2,177 5,105 Asset-backed financing (Note 15) 151 — — — 151 457 — — — 457 Lease liabilities 360 705 575 1,280 1,640 56 131 74 205 261 Other debt (1) 818 204 — 204 1,022 822 45 13 58 880 Total Debt € 4,876 € 7,362 € 663 € 8,025 € 12,901 € 5,861 € 7,140 € 1,527 € 8,667 € 14,528 ______________________________________________________________________________________________________________________________ (1) Borrowings from banks and Other debt as previously reported included €261 million of finance lease liabilities recognized in accordance with IAS 17. These amounts have been reclassified into the line item Lease liabilities at December 31, 2018. Refer to Note 2. , Basis of preparation for additional information on the adoption of IFRS 16. Notes The following table summarizes the notes outstanding at December 31, 2019 and 2018: At December 31, Currency Face value of Coupon % Maturity 2019 2018 Medium Term Note Programme: (€ million) Fiat Chrysler Finance Europe SENC (1) CHF 250 3.125 September 30, 2019 — 222 Fiat Chrysler Finance Europe SENC (2) EUR 1,250 6.750 October 14, 2019 — 1,250 Fiat Chrysler Finance Europe SENC (2) EUR 1,000 4.750 March 22, 2021 1,000 1,000 Fiat Chrysler Finance Europe SENC (2) EUR 1,350 4.750 July 15, 2022 1,350 1,350 FCA NV (2) EUR 1,250 3.750 March 29, 2024 1,250 1,250 Other (3) EUR 7 7 7 Total Medium Term Note Programme 3,607 5,079 Other Notes: FCA NV (2) U.S.$ 1,500 4.500 April 15, 2020 1,335 1,310 FCA NV (2) U.S.$ 1,500 5.250 April 15, 2023 1,335 1,310 Total Other Notes 2,670 2,620 Hedging effect, accrued interest and amortized cost valuation 115 126 Total Notes € 6,392 € 7,825 ______________________________________________________________________________________________________________________________ (1) Listing on the SIX Swiss Exchange was obtained. (2) Listing on the Irish Stock 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 | Lease liabilities The following table summarizes the Group's current and non-current lease liabilities: Lease liabilities included in the Statement of Financial Position At December 31, 2019 (€ million) Long-term debt (non-current) € 1,280 Short-term debt and current portion of long-term debt (current) € 360 Maturity analysis - contractual undiscounted cash flows At December 31, 2019 (€ million) Due within one year € 430 Due between one and five years 905 Due beyond five years 811 Total undiscounted lease liabilities € 2,146 In addition, the Group has entered into commitments relating to leases not yet commenced of €399 million , of which the most significant related to the investments in manufacturing facilities in Michigan, USA. In addition to the above, the Group entered into non-cancellable short term leases, which have not been classified as lease liabilities, of €28 million which is expected to be settled within the next 12 months. |
Other liabilities and tax pay_2
Other liabilities and tax payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of details about other liabilities | Other liabilities consisted of the following: At December 31, 2019 2018 Current Non-current Total Current Non-current Total (€ million) Payables for GDP and buy-back agreements € 2,210 € — € 2,210 € 2,362 € — € 2,362 Accrued expenses and deferred income 769 674 1,443 783 697 1,480 Indirect tax payables 501 14 515 681 16 697 Payables to personnel 1,008 15 1,023 956 16 972 Social security payables 258 4 262 265 4 269 Construction contract liabilities (Note 14) 83 — 83 93 — 93 Service contract liability 621 1,530 2,151 568 1,521 2,089 Other 1,338 189 1,527 1,349 198 1,547 Total Other liabilities € 6,788 € 2,426 € 9,214 € 7,057 € 2,452 € 9,509 |
Disclosure of analysis of other liabilities by due date | Other liabilities (excluding Accrued expenses, Deferred income and Service contract liability) by due date were as follows: At December 31, 2019 2018 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, deferred income and service contract liability) € 5,398 € 201 € 21 € 222 € 5,620 € 5,706 € 221 € 13 € 234 € 5,940 |
Explanation of significant changes in contract assets and contract liabilities [text block] | Changes in the Group's construction contracts, net asset/(liability) for the year ended December 31, 2019 , were as follows: At January 1, 2019 Advances received from customers Amounts recognized within revenue At December 31, 2019 (€ million) Construction contracts, net asset/(liability) € 42 € (603 ) € 672 € 111 Changes in the Group's service contract liability for the year ended December 31, 2019 , were as follows: At January 1, 2019 Advances received from customers Amounts recognized within revenue Transfers to Assets/(Liabilities) held for sale Other Changes At December 31, 2019 (€ million) Service contract liability € 2,089 € 839 € (721 ) € — € (56 ) € 2,151 |
Disclosure of analysis of tax payables by due date | Tax liabilities by due date were as follows: At December 31, 2019 2018 (1) 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 liabilities (1) € 122 € 276 € 2 € 278 € 400 € 203 € 149 € — € 149 € 352 ________________________________________________________________________________________________________________________________________________ (1) Refer to Note 2, Basis of preparation. |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement [Abstract] | |
Assets that are measured at fair value | The following table provides the carrying amount and fair value of financial assets and liabilities not measured at fair value on a recurring basis: At December 31, 2019 2018 Note Carrying Fair Carrying Fair (€ million) Dealer financing € 1,737 € 1,736 € 1,681 € 1,682 Retail financing 613 608 601 584 Finance lease 3 3 3 3 Other receivables from financing activities 222 222 356 355 Total Receivables from financing activities (1) 15 € 2,575 € 2,569 € 2,641 € 2,624 Asset backed financing € 151 € 151 € 457 € 457 Notes 6,392 6,900 7,825 8,152 Borrowings from banks & Other debt 4,718 4,724 5,985 5,968 Lease liabilities 1,640 1,640 261 261 Total Debt 21 € 12,901 € 13,415 € 14,528 € 14,838 At December 31, 2019 2018 Note Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (€ million) Debt securities and equity instruments measured at FVOCI 13 € 3 € 21 € 13 € 37 € 3 € 15 € 13 € 31 Debt securities and equity instruments measured at FVPL 13 277 — 15 292 270 — 3 273 Derivative financial assets 16 — 98 — 98 — 256 41 297 Collateral deposits 13 42 — — 42 61 — — 61 Receivables from financing activities 15 — — 580 580 — — 973 973 Trade receivables 15 — 19 — 19 — 65 — 65 Other receivables 15 — — 69 69 — — — — Money market securities 17 2,293 — — 2,293 4,352 — — 4,352 Total Assets € 2,615 € 138 € 677 € 3,430 € 4,686 € 336 € 1,030 € 6,052 Derivative financial liabilities 16 — 318 — 318 — 205 2 207 Total Liabilities € — € 318 € — € 318 € — € 205 € 2 € 207 |
Liabilities that are measured at fair value | The following table provides the carrying amount and fair value of financial assets and liabilities not measured at fair value on a recurring basis: At December 31, 2019 2018 Note Carrying Fair Carrying Fair (€ million) Dealer financing € 1,737 € 1,736 € 1,681 € 1,682 Retail financing 613 608 601 584 Finance lease 3 3 3 3 Other receivables from financing activities 222 222 356 355 Total Receivables from financing activities (1) 15 € 2,575 € 2,569 € 2,641 € 2,624 Asset backed financing € 151 € 151 € 457 € 457 Notes 6,392 6,900 7,825 8,152 Borrowings from banks & Other debt 4,718 4,724 5,985 5,968 Lease liabilities 1,640 1,640 261 261 Total Debt 21 € 12,901 € 13,415 € 14,528 € 14,838 At December 31, 2019 2018 Note Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (€ million) Debt securities and equity instruments measured at FVOCI 13 € 3 € 21 € 13 € 37 € 3 € 15 € 13 € 31 Debt securities and equity instruments measured at FVPL 13 277 — 15 292 270 — 3 273 Derivative financial assets 16 — 98 — 98 — 256 41 297 Collateral deposits 13 42 — — 42 61 — — 61 Receivables from financing activities 15 — — 580 580 — — 973 973 Trade receivables 15 — 19 — 19 — 65 — 65 Other receivables 15 — — 69 69 — — — — Money market securities 17 2,293 — — 2,293 4,352 — — 4,352 Total Assets € 2,615 € 138 € 677 € 3,430 € 4,686 € 336 € 1,030 € 6,052 Derivative financial liabilities 16 — 318 — 318 — 205 2 207 Total Liabilities € — € 318 € — € 318 € — € 205 € 2 € 207 |
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: Receivables from financing activities Debt securities and equity instruments Derivative financial Other receivables (€ million) At January 1, 2019 € 973 € 16 € 39 € — Gains/(Losses) recognized in Consolidated Income Statement — 1 56 (1 ) Losses recognized in Other comprehensive income/(loss) — — (15 ) — Issues/Settlements (393 ) — (66 ) 70 Purchases/Sales — 11 — — Transfers from Level 3 — — (14 ) — At December 31, 2019 € 580 € 28 € — € 69 Receivables from financing activities Debt securities and equity instruments Derivative financial Other receivables (€ million) At January 1, 2018 € 700 € 45 € 29 € — Gains/(Losses) recognized in Consolidated Income Statement — (1 ) 30 — Gains recognized in Other comprehensive income/(loss) — — 9 — Issues/Settlements 273 — (29 ) — Transfers to Assets/(Liabilities) held for sale — (28 ) — — At December 31, 2018 € 973 € 16 € 39 € — |
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: Receivables from financing activities Debt securities and equity instruments Derivative financial Other receivables (€ million) At January 1, 2019 € 973 € 16 € 39 € — Gains/(Losses) recognized in Consolidated Income Statement — 1 56 (1 ) Losses recognized in Other comprehensive income/(loss) — — (15 ) — Issues/Settlements (393 ) — (66 ) 70 Purchases/Sales — 11 — — Transfers from Level 3 — — (14 ) — At December 31, 2019 € 580 € 28 € — € 69 Receivables from financing activities Debt securities and equity instruments Derivative financial Other receivables (€ million) At January 1, 2018 € 700 € 45 € 29 € — Gains/(Losses) recognized in Consolidated Income Statement — (1 ) 30 — Gains recognized in Other comprehensive income/(loss) — — 9 — Issues/Settlements 273 — (29 ) — Transfers to Assets/(Liabilities) held for sale — (28 ) — — At December 31, 2018 € 973 € 16 € 39 € — |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | As of December 31, 2019 , the Group had a take-or-pay commitment with Tofas with future minimum expected obligations as follows: (€ million) 2020 € 280 2021 € 257 2022 € 153 We provided guarantees to FCA Bank related to certain dealer financing arrangements FCA Bank has with dealers. The amount of the guarantees outstanding at December 31, 2019 was approximately €19 million . The fair value of these guarantees is immaterial due to the value of vehicles in the dealers' stock pledged to FCA. 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, 2019 2018 2017 (€ thousand) Directors (1) € 23,050 € 18,830 € 29,861 Total Compensation € 23,050 € 18,830 € 29,861 ______________________________________________________________________________________________________________________________ (1) Including the notional compensation cost arising from long-term share-based compensation granted to the Chairman, the Chief Executive Officer and the Chief Financial Officer. The amounts for significant transactions with related parties recognized in the Consolidated Income Statements were as follows: Years ended December 31, 2019 2018 2017 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 € 728 € 2,086 € 9 € — € 926 € 2,572 € 7 € — € 1,287 € 2,779 € 9 € — Sevel S.p.A. 205 1 5 — 402 1 4 — 392 — 5 — FCA Bank 1,686 23 (19 ) 52 1,611 28 (21 ) 56 1,715 26 (20 ) 36 GAC FCA JV 151 — (36 ) — 419 11 (49 ) — 569 — (105 ) — Fiat India Automobiles 2 — — — 2 — — — 25 1 — — Other 2 — — (1 ) 27 6 (4 ) 1 35 2 (4 ) 2 Total joint arrangements 2,774 2,110 (41 ) 51 3,387 2,618 (63 ) 57 4,023 2,808 (115 ) 38 Total associates 17 186 (1 ) — 30 229 (2 ) (1 ) 73 52 (3 ) (1 ) CNHI 357 332 11 — 501 326 6 — 526 329 2 — Ferrari N.V. 30 144 1 — 64 218 4 — 82 320 1 — Directors and Key Management — — 82 — — — 77 — — — 114 — Other 5 — 37 — 2 — 26 — 1 — 26 — Total CNHI, Ferrari, Directors and other 392 476 131 — 567 544 113 — 609 649 143 — Total unconsolidated 6 7 4 — 7 8 4 1 61 8 3 1 Total transactions with related parties € 3,189 € 2,779 € 93 € 51 € 3,991 € 3,399 € 52 € 57 € 4,766 € 3,517 € 28 € 38 Total for the Group € 108,187 € 93,164 € 6,455 € 1,005 € 110,412 € 95,011 € 7,318 € 1,056 € 105,730 € 89,710 € 7,177 € 1,345 Assets and liabilities from significant transactions with related parties were as follows: At December 31, 2019 2018 Trade and other Trade Other Asset- Debt (1) Trade Trade Other Asset- Debt (1) (€ million) Tofas € 18 € 171 € 39 € — € — € 11 € 176 € 40 € — € — Sevel S.p.A. 28 — 1 — 13 20 — 2 — 11 FCA Bank 278 139 151 141 181 395 258 232 449 28 GAC FCA JV 62 11 — — — 63 22 1 — — Fiat India Automobiles Limited 1 — 8 — — 0 — 6 — — Other — — — — — 19 1 — — — Total joint arrangements 387 321 199 141 194 508 457 281 449 39 Total associates 45 41 8 — — 34 33 10 — — CNHI 49 87 11 — — 53 71 12 — — Ferrari N.V. 12 49 — — — 25 45 3 — — Other 4 13 — — — 2 2 — — — Total CNHI, Ferrari N.V. and other 65 149 11 — — 80 118 15 — — Total unconsolidated subsidiaries 16 9 1 — 22 17 7 1 — 26 Total originating from related parties € 513 € 520 € 219 € 141 € 216 € 639 € 615 € 307 € 449 € 65 Total for the Group € 9,004 € 21,616 € 9,214 € 151 € 12,750 € 8,672 € 19,229 € 9,509 € 457 € 14,071 ______________________________________________________________________________________________________________________________ (1) Relating to Debt excluding Asset-backed financing, refer to Note, 21 Debt . |
Guarantees granted, commitmen_2
Guarantees granted, commitments and contingent liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 were as follows for the Group's continuing operations: (€ million) 2020 € 982 2021 € 594 2022 € 216 2023 € 27 2024 € 45 2025 and thereafter € — |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 : Common Shares Special Voting Shares Total Balance at January 1, 2019 1,550,617,563 408,941,767 1,959,559,330 Shares issued to Key management 16,901,711 — 16,901,711 Balance at December 31, 2019 1,567,519,274 408,941,767 1,976,461,041 |
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, 2019 2018 2017 Pre-tax Tax Net Pre-tax Tax Net Pre-tax Tax Net (€ million) (Losses)/gains on remeasurement of defined benefit plans € (63 ) € 7 € (56 ) € 317 € (76 ) € 241 € (72 ) € (18 ) € (90 ) Gains/(Losses) on cash flow hedging instruments (191 ) 50 (141 ) (9 ) (6 ) (15 ) 129 (12 ) 117 Gains/(losses) on equity instruments measured at fair value through other comprehensive income 6 — 6 (4 ) — (4 ) 14 — 14 Foreign exchange (losses)/gains 268 — 268 126 — 126 (1,982 ) — (1,982 ) Share of Other comprehensive income/(loss) for equity method investees (20 ) — (20 ) (103 ) — (103 ) (119 ) — (119 ) Items relating to discontinued operations — — — (90 ) 1 (89 ) 66 (1 ) 65 Total Other comprehensive income € — € 57 € 57 € 237 € (81 ) € 156 € (1,964 ) € (31 ) € (1,995 ) Other comprehensive income was as follows: Years ended December 31, 2019 2018 2017 (€ million) Items that will not be reclassified to the Consolidated Income Statement in subsequent periods: (Losses)/gains on remeasurement of defined benefit plans € (63 ) € 317 € (72 ) Share of gains/(losses) on remeasurement of defined benefit plans for equity method investees (5 ) — 2 Gains/(losses) on equity instruments measured at fair value through other comprehensive income 6 (4 ) 14 Items relating to discontinued operations (9 ) 1 8 Total Items that will not be reclassified to the Consolidated Income Statement (B1) (71 ) 314 (48 ) Items that may be reclassified to the Consolidated Income Statement in subsequent periods: Gains/(Losses) on net investment hedging instruments — — — Gains/(losses) on cash flow hedging instruments arising during the period (269 ) 99 47 Gains/(losses) on cash flow hedging instruments reclassified to the Consolidated Income Statement 78 (108 ) 82 Total Gains/(losses) on cash flow hedging instruments (191 ) (9 ) 129 Foreign exchange gains/(losses) 268 126 (1,982 ) Share of Other comprehensive income/(loss) for equity method investees arising during the period (16 ) (77 ) (94 ) Share of Other comprehensive income/(loss) for equity method investees reclassified to the Consolidated Income Statement 1 (26 ) (27 ) Total Share of Other comprehensive (loss)/income for equity method investees (15 ) (103 ) (121 ) Items relating to discontinued operations 9 (91 ) 58 Total Items that may be reclassified to the Consolidated Income Statement (B2) 71 (77 ) (1,916 ) Total Other comprehensive income (B1)+(B2)=(B) — 237 (1,964 ) Tax effect 57 (82 ) (30 ) Tax effect - discontinued operations — 1 (1 ) Total Other comprehensive income, net of tax € 57 € 156 € (1,995 ) |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Earnings per share | The following tables provide the amounts used in the calculation of basic earnings per share: Years ended December 31, 2019 2018 2017 Net profit attributable to owners of the parent million € 6,622 € 3,608 € 3,491 Weighted average number of shares outstanding thousand 1,564,114 1,548,439 1,535,988 Basic earnings per share € € 4.23 € 2.33 € 2.27 Years ended December 31, 2019 2018 2017 Net profit from continuing operations attributable to owners of the parent million € 2,694 € 3,323 € 3,281 Weighted average number of shares outstanding thousand 1,564,114 1,548,439 1,535,988 Basic earnings per share from continuing operations € € 1.72 € 2.15 € 2.14 Years ended December 31, 2019 2018 2017 Net profit from discontinued operations attributable to owners of the parent million € 3,928 € 285 € 210 Weighted average number of shares outstanding thousand 1,564,114 1,548,439 1,535,988 Basic earnings per share from discontinued operations € € 2.51 € 0.18 € 0.14 The following tables provide the amounts used in the calculation of diluted earnings per share: Years ended December 31, 2019 2018 2017 Net profit attributable to owners of the parent million € 6,622 € 3,608 € 3,491 Weighted average number of shares outstanding thousand 1,564,114 1,548,439 1,535,988 Number of shares deployable for share-based compensation thousand 6,736 19,400 20,318 Weighted average number of shares outstanding for diluted earnings per share thousand 1,570,850 1,567,839 1,556,306 Diluted earnings per share € € 4.22 € 2.30 € 2.24 Years ended December 31, 2019 2018 2017 Net profit from continuing operations attributable to owners of the parent million € 2,694 € 3,323 € 3,281 Weighted average number of shares outstanding for diluted earnings per share thousand 1,570,850 1,567,839 1,556,306 Diluted earnings per share from continuing operations € € 1.71 € 2.12 € 2.11 Years ended December 31, 2019 2018 2017 Net profit from discontinued operations attributable to owners of the parent million € 3,928 € 285 € 210 Weighted average number of shares outstanding for diluted earnings per share thousand 1,570,850 1,567,839 1,556,306 Diluted earnings per share from discontinued operations € € 2.50 € 0.18 € 0.13 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating segments [Abstract] | |
Disclosure of operating segments | The following tables summarize selected financial information by segment for the years ended December 31, 2019 , 2018 and 2017 : Mass-Market Vehicles 2019 North America LATAM APAC EMEA Maserati Other activities Unallocated items & eliminations FCA (€ million) Revenues € 73,357 € 8,461 € 2,814 € 20,571 € 1,603 € 3,009 € (1,628 ) € 108,187 Revenues from transactions with other segments (20 ) (12 ) (52 ) (105 ) (11 ) (1,428 ) 1,628 — Revenues from third party customers € 73,337 € 8,449 € 2,762 € 20,466 € 1,592 € 1,581 € — € 108,187 Net profit from continuing operations € 2,700 Tax expense € 1,321 Net financial expenses € 1,005 Adjustments: Impairment expense and supplier obligations (1)(5) € 98 € € € 441 € 210 € € 793 € 1,542 Restructuring costs, net of reversals (2)(5) € 23 € 127 € € (9 ) € 3 € € 10 € 154 Gains on disposal of investments € € € € € € (15 ) € € (15 ) Brazilian indirect tax - reversal of liability/recognition of credits (3) € € (164 ) € € € € € € (164 ) Other (4)(5) € 45 € 4 € (4 ) € (7 ) € 8 € 7 € 72 € 125 Adjusted EBIT € 6,690 € 501 € (36 ) € (6 ) € (199 ) € (173 ) € (109 ) € 6,668 Share of profit of equity method investees € € € (126 ) € 318 € € 15 € 1 € 208 ______________________________________________________________________________________________________________________________ (1) Impairment expense recognized in the year ended December 31, 2019 for EMEA, Maserati and also not allocated to a specific region. Additionally, impairment expense recognized in previous quarters in North America and Maserati, as well as supplier obligations of €6 million in EMEA. (2) Restructuring costs, mainly related to LATAM, EMEA and North America, primarily includes €76 million of write-down of Property, plant and equipment and €118 million related to the recognition of provisions for restructuring, partially offset by the reversal of previously recorded provisions, primarily €46 million in EMEA. (3) Gains in relation to the recognition of credits for amounts paid in prior years in relation to indirect taxes in Brazil (refer to Note 15 , Trade and other receivables in the Consolidated Financial Statements). (4) Other costs, primarily relating to litigation proceedings (refer to Note 25 , Guarantees granted, commitments and contingent liabilities in the Consolidated Financial Statements). (5) During the year ended December 31, 2019 impairment charges of €1,589 million were recorded, classified within Impairment expense and supplier obligations, Restructuring costs, net of reversals and Other above. These comprised €636 million of Property, plant and equipment (refer to Note 11, Property, plant and equipment in the Consolidated Financial Statements included elsewhere in this report) and €953 million of Other intangible assets (refer to Note 10, Other intangible assets in the Consolidated Financial Statements included elsewhere in this report). Mass-Market Vehicles 2018 North America LATAM APAC EMEA Maserati Other activities Unallocated items & eliminations FCA (€ million) Revenues € 72,384 € 8,152 € 2,703 € 22,815 € 2,663 € 2,888 € (1,193 ) € 110,412 Revenues from transactions with other segments (31 ) (10 ) (57 ) (101 ) (18 ) (976 ) 1,193 — Revenues from third party customers € 72,353 € 8,142 € 2,646 € 22,714 € 2,645 € 1,912 € — € 110,412 Net profit from continuing operations € 3,330 Tax expense € 778 Net financial expenses € 1,056 Adjustments: Charge for U.S. diesel emission matters (1) € € € € € € € 748 € 748 Impairment expense and supplier obligations (2) € 16 € 8 € 11 € 307 € € € 11 € 353 China inventory impairment (3) € € € 129 € € € € € 129 Costs for recall, net of recovery - airbag inflators (4) € 114 € € € € € € € 114 U.S. special bonus payment (5) € 109 € € € € € 2 € € 111 Restructuring costs, net of reversals (6) € € (28 ) € — € 123 € — € 8 € — € 103 Employee benefits settlement losses (7) € 92 € € € € € € € 92 Port of Savona (Italy) fire and flood (8) € € — € — € 2 € 11 € 30 € — € 43 (Recovery of)/costs for recall - contested with supplier (9) € (50 ) € € € € € € € (50 ) North America capacity realignment (10) € (60 ) € — € — € — € — € — € € (60 ) Brazil indirect tax - reversal of liability/recognition of credits (11) € € (54 ) € € € € (18 ) € € (72 ) Other € 1 € — € — € 30 € — € 12 € 20 € 63 Adjusted EBIT € 6,230 € 359 € (296 ) € 406 € 151 € (40 ) € (72 ) € 6,738 Share of profit of equity method investees € — € — € (67 ) € 284 € — € 22 € 1 € 240 ______________________________________________________________________________________________________________________________ (1) A provision of €748 million was recognized for costs related to final settlements reached on civil, environmental and consumer claims related to U.S. diesel emissions matters. Refer to Note 25 , Guarantees granted, commitments and contingent liabilities ; (2) Impairment expense of €297 million and supplier obligations of €56 million , primarily in EMEA, resulting from changes in product plans in connection with the 2018-2022 business plan; (3) Impairment of inventory in connection with acceleration of new emissions standards in China and slower than expected sales. Refer to Note 14 , Inventories ; (4) Accrual in relation to costs for recall campaigns related to Takata airbag inflators, net of recovery; (5) Special bonus payment of $2,000 to approximately 60,000 employees in North America as a result of the U.S. Tax Cuts and Jobs Act; (6) Restructuring costs primarily consisting of €123 million in EMEA, partially offset by the reversal of €28 million of previously recorded restructuring costs in LATAM; (7) Charges arising on settlement of a portion of a supplemental retirement plan and an annuity buyout in North America. Refer to Note 19 , Employee benefits liabilities ; (8) Costs in relation to the Port of Savona (Italy) flood and fire; (9) Recovery of amounts accrued in 2016 in relation to costs for recall contested with a supplier; (10) Reduction of costs in relation to the North America capacity realignment which were accrued in 2015; (11) Credits recognized related to indirect taxes in Brazil. Mass-Market Vehicles 2017 North America LATAM APAC EMEA Maserati Other activities Unallocated items & eliminations FCA (€ million) Revenues € 66,094 € 8,004 € 3,250 € 22,700 € 4,058 € 3,248 € (1,624 ) € 105,730 Revenues from transactions with other segments (47 ) (10 ) (32 ) (116 ) (21 ) (1,398 ) 1,624 — Revenues from third party customers € 66,047 € 7,994 € 3,218 € 22,584 € 4,037 € 1,850 € — € 105,730 Net profit from continuing operations € 3,291 Tax expense € 2,588 Net financial expenses € 1,345 Adjustments: Reversal of a Brazilian indirect tax liability (1) € € € € € € € € (895 ) Impairment expense (2) € € 77 € € 142 € € € € 219 Recall campaigns - airbag inflators (3) € 29 € 73 € € € € € € 102 Restructuring costs/(reversal) (4) € (1 ) € 75 € € € € 11 € 1 € 86 Deconsolidation of Venezuela (5) € € 42 € € € € € € 42 North America capacity realignment (6) € (38 ) € € € € € € € (38 ) Tianjin (China) port explosion, net of insurance recoveries (7) € € € (68 ) € € € € € (68 ) Gain on disposal of investments (8) € € € € € € (27 ) € (49 ) € (76 ) Other € (1 ) € € 1 € € € 12 € 1 € 13 Adjusted EBIT € 5,227 € 151 € 172 € 735 € 560 € (98 ) € (138 ) € 6,609 Share of profit of equity method investees € — € — € 75 € 306 € — € 18 € 1 € 400 ______________________________________________________________________________________________________________________________ |
Disclosure of geographical areas | Net revenues by geographical area were as follows: Years ended December 31, 2019 2018 2017 (€ million) Net revenues in: North America (1) € 73,848 € 73,405 € 67,500 Brazil 7,423 6,452 5,982 Italy 7,259 8,815 8,407 France 3,021 3,204 3,121 Germany 2,519 2,755 2,804 China 1,753 1,974 3,562 Spain 1,200 1,397 1,306 United Kingdom 995 1,136 1,267 Argentina 861 1,384 1,791 Japan 839 718 735 Turkey 739 896 1,244 Australia 320 418 496 Other countries 7,410 7,858 7,515 Total Net revenues € 108,187 € 110,412 € 105,730 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, 2019 2018 (€ million) North America (1) € 40,097 € 35,493 Italy 10,711 11,478 Brazil 4,064 4,125 Poland 684 937 Serbia 495 571 Other countries 1,320 1,456 Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) € 57,371 € 54,060 |
Explanatory notes to the cons_2
Explanatory notes to the consolidated statements of cash flows (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 : Years ended December 31, 2019 2018 (€ million) Total Debt at January 1 (1) € 15,597 € 17,971 Add: Derivative (assets)/liabilities and collateral at January 1 (151 ) (206 ) Total Liabilities from financing activities at January 1 € 15,446 € 17,765 Cash flows (3,096 ) (2,795 ) Foreign exchange effects 9 (226 ) Fair value changes 327 (136 ) Changes in scope of consolidation 43 (3 ) Transfer to (Assets)/Liabilities held for sale (82 ) (177 ) Other changes (2) 432 (51 ) Total Liabilities from financing activities at December 31 € 13,079 € 14,377 Less: Derivative (assets)/liabilities and collateral at December 31 178 (151 ) Total Debt at December 31 € 12,901 € 14,528 ______________________________________________________________________________________________________________________________ (1) Total debt at January 1, 2019 has been adjusted to include Lease liabilities of €1,069 million from the adoption of IFRS 16. Refer to Note 2. , Basis of preparation for additional information on the adoption of IFRS 16. |
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, 2019$ / € | Dec. 31, 2019$ / €R$ / € | Dec. 31, 2019$ / €$ / € | Dec. 31, 2019$ / €¥ / € | Dec. 31, 2019$ / €zł / € | Dec. 31, 2019$ / €£ / € | Dec. 31, 2019$ / €SFr / € | Dec. 31, 2019$ / €$ / € | Dec. 31, 2018$ / € | Dec. 31, 2018$ / €R$ / € | Dec. 31, 2018$ / €$ / € | Dec. 31, 2018$ / €¥ / € | Dec. 31, 2018$ / €zł / € | Dec. 31, 2018$ / €£ / € | Dec. 31, 2018$ / €$ / € | Dec. 31, 2018$ / €SFr / € | Dec. 31, 2018$ / €$ / € | Dec. 31, 2017$ / € | Dec. 31, 2017$ / €R$ / € | Dec. 31, 2017$ / €$ / € | Dec. 31, 2017$ / €¥ / € | Dec. 31, 2017$ / €zł / € | Dec. 31, 2017$ / €£ / € | Dec. 31, 2017$ / €$ / € | Dec. 31, 2017$ / €SFr / € | Dec. 31, 2017$ / €$ / € | Dec. 31, 2019R$ / € | Dec. 31, 2019$ / € | Dec. 31, 2019¥ / € | Dec. 31, 2019zł / € | Dec. 31, 2019£ / € | Dec. 31, 2019$ / € | Dec. 31, 2019SFr / € | Dec. 31, 2019$ / € | Dec. 31, 2018R$ / € | Dec. 31, 2018$ / € | Dec. 31, 2018¥ / € | Dec. 31, 2018zł / € | Dec. 31, 2018£ / € | Dec. 31, 2018$ / € | Dec. 31, 2018SFr / € | Dec. 31, 2018$ / € | Dec. 31, 2017R$ / € | Dec. 31, 2017$ / € | Dec. 31, 2017¥ / € | Dec. 31, 2017zł / € | Dec. 31, 2017£ / € | Dec. 31, 2017$ / € | Dec. 31, 2017SFr / € | Dec. 31, 2017$ / € | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average foreign exchange rate | 1.485 | 4.413 | 21.557 | 7.735 | 4.298 | 0.878 | 1.112 | 1.119 | 1.529 | 4.308 | 22.705 | 7.808 | 4.261 | 0.885 | 43.074 | 1.155 | 1.181 | 1.465 | 3.605 | 21.329 | 7.629 | 4.257 | 0.877 | 18.683 | 1.112 | 1.130 | ||||||||||||||||||||||||
Closing foreign exchange rate | 1.460 | 1.460 | 1.460 | 1.460 | 1.460 | 1.460 | 1.460 | 1.460 | 1.561 | 1.561 | 1.561 | 1.561 | 1.561 | 1.561 | 1.561 | 1.561 | 1.561 | 1.504 | 1.504 | 1.504 | 1.504 | 1.504 | 1.504 | 1.504 | 1.504 | 1.504 | 4.516 | 21.220 | 7.821 | 4.257 | 0.851 | 67.258 | 1.085 | 1.123 | 4.444 | 22.492 | 7.875 | 4.301 | 0.895 | 43.074 | 1.127 | 1.145 | 3.973 | 23.661 | 7.804 | 4.177 | 0.887 | 22.595 | 1.170 | 1.199 |
Basis of presentation - intangi
Basis of presentation - intangible assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 |
Industrial buildings | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation percentage | 3.00% |
Industrial buildings | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation percentage | 10.00% |
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, 2019 | Dec. 31, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | ||
Borrowing Costs | € 213 | € 155 |
Basis of presentation - deferre
Basis of presentation - deferred service contracts (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Service Contracts [Abstract] | ||
Deferred income | € 224 | € 200 |
Amortization of Deferred Income | € 68 | € 88 |
Basis of presentation - cost of
Basis of presentation - cost of revenues (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |||
Interest expense from financial services and write-downs of assets included in cost of revenue | € 48 | € 75 | € 68 |
Decrease In assets sold with buy-back commitment related in cost of revenue | € 195 | € 293 | € 397 |
Basis of presentation - effect
Basis of presentation - effect on pension obligation (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Pension benefits | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 3.30% | 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 | € 298 | |
Increase in actuarial assumption, effect on pension benefit obligation | € (292) | |
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 | € 29 | |
Increase in actuarial assumption, effect on pension benefit obligation | € (29) | |
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 | € (39) | |
Increase in actuarial assumption, effect on pension benefit obligation | € 46 | |
Other post-employment benefits | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 0.60% | 1.40% |
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 | € 46 | |
Increase in actuarial assumption, effect on pension benefit obligation | € (40) | |
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 (€) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | |
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | € 1,589,000,000 | € 297,000,000 | € 219,000,000 | |
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 | |
Cash-generating units | ||||
Disclosure of information for cash-generating units [line items] | ||||
Growth rate used to extrapolate cash flow projections | 2.00% | |||
Cash-generating units | 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 | |||
Cash-generating units | Bottom of range | ||||
Disclosure of information for cash-generating units [line items] | ||||
Discount rate applied to cash flow projections | 9.80% | |||
Cash-generating units | Top of range | ||||
Disclosure of information for cash-generating units [line items] | ||||
Discount rate applied to cash flow projections | 15.40% | |||
Accumulated amortization and impairment losses | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment losses and asset write-offs | € (636,000,000) | (144,000,000) | ||
Capitalised development expenditure | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment and write-off of capitalized development expenditures | 949,000,000 | 147,000,000 | 103,000,000 | |
Capitalised development expenditure | Accumulated amortization and impairment losses | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment and write-off of capitalized development expenditures | (949,000,000) | (153,000,000) | ||
EMEA | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | 262,000,000 | 142,000,000 | ||
EMEA | Cash-generating units | ||||
Disclosure of information for cash-generating units [line items] | ||||
Growth rate used to extrapolate cash flow projections | 2.00% | |||
Discount rate applied to cash flow projections | 10.80% | |||
EMEA | Cash-generating units | 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 | |||
North America | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | 16,000,000 | |||
APAC | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | € 11,000,000 | |||
APAC | Cash-generating units | ||||
Disclosure of information for cash-generating units [line items] | ||||
Margin rate reduction to reduce fair value of cash flows to carrying value | 0.00% | |||
LATAM | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | € 8,000,000 | 56,000,000 | ||
LATAM | Cash-generating units | ||||
Disclosure of information for cash-generating units [line items] | ||||
Margin rate reduction to reduce fair value of cash flows to carrying value | 9000.00% | |||
LATAM | Venezuelan Operations | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | € 21,000,000 | |||
Rationalization of product portfolio plans | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | € 1,376,000,000 | |||
Impairment and write-off of capitalized development expenditures | 813,000,000 | |||
Impairment losses and asset write-offs | 563,000,000 | |||
Rationalization of product portfolio plans | Unallocated items & eliminations | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | 793,000,000 | |||
Rationalization of product portfolio plans | EMEA | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | 435,000,000 | |||
Rationalization of product portfolio plans | Maserati | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss | € 148,000,000 |
Basis of presentation - IFRS 16
Basis of presentation - IFRS 16 - impact of adoption on previously reported amounts (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of initial application of standards or interpretations [line items] | |||||
Property, plant and equipment | € 28,608 | € 26,307 | |||
Prepaid expenses and other assets | 535 | 266 | |||
Total Non-current assets | 63,112 | 58,581 | |||
Prepaid expenses and other assets | 524 | 418 | |||
Assets held for sale | 376 | 4,801 | |||
Total Current assets | 34,932 | 38,292 | |||
Assets | 98,044 | 96,873 | |||
Equity | 28,675 | 24,903 | € 21,008 | € 19,353 | |
Borrowings | 12,901 | € 15,597 | 14,528 | 17,971 | |
Long-term debt | 8,025 | 8,667 | |||
Other liabilities | 2,426 | 2,452 | |||
Total Non-current liabilities | 26,015 | 25,496 | 28,043 | 35,521 | |
Short-term debt and current portion of long-term debt | 4,876 | 5,861 | |||
Other liabilities | 19,934 | 22,199 | 28,976 | ||
Other liabilities | 6,788 | 7,057 | |||
Liabilities held for sale | 236 | 2,931 | |||
Total Current liabilities | 43,354 | 46,474 | 47,269 | 49,469 | |
Total Equity and liabilities | 98,044 | 96,873 | |||
Previously stated | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Property, plant and equipment | 26,307 | ||||
Prepaid expenses and other assets | 266 | ||||
Non-current assets not impacted by IFRS 16 | 32,008 | ||||
Total Non-current assets | 58,581 | ||||
Prepaid expenses and other assets | 418 | ||||
Assets held for sale | 4,801 | ||||
Current assets not impacted by IFRS 16 | 33,073 | ||||
Total Current assets | 38,292 | ||||
Assets | 96,873 | ||||
Equity | 24,903 | 20,987 | |||
Long-term debt | 8,667 | ||||
Other liabilities | 2,452 | ||||
Non-current liabilities not impacted by IFRS 16 | 14,377 | ||||
Total Non-current liabilities | 25,496 | 28,043 | 35,521 | ||
Short-term debt and current portion of long-term debt | 5,861 | ||||
Other liabilities | 19,934 | 22,199 | 28,976 | ||
Other liabilities | 7,057 | ||||
Liabilities held for sale | 2,931 | ||||
Current liabilities not impacted by IFRS 16 | 30,625 | ||||
Total Current liabilities | 46,474 | € 47,269 | € 49,469 | ||
Total Equity and liabilities | 96,873 | ||||
increase (decrease) due to application of IFRS 16 [Member] | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Property, plant and equipment | 1,069 | ||||
Prepaid expenses and other assets | (3) | ||||
Non-current assets not impacted by IFRS 16 | 0 | ||||
Total Non-current assets | 1,066 | ||||
Prepaid expenses and other assets | (2) | ||||
Assets held for sale | 261 | ||||
Current assets not impacted by IFRS 16 | 0 | ||||
Total Current assets | 259 | ||||
Assets | 1,325 | ||||
Equity | 0 | ||||
Long-term debt | 903 | ||||
Other liabilities | (3) | ||||
Non-current liabilities not impacted by IFRS 16 | 0 | ||||
Total Non-current liabilities | 900 | ||||
Short-term debt and current portion of long-term debt | 166 | ||||
Other liabilities | (2) | ||||
Liabilities held for sale | 261 | ||||
Current liabilities not impacted by IFRS 16 | 0 | ||||
Total Current liabilities | 425 | ||||
Total Equity and liabilities | 1,325 | ||||
As adjusted [Member] | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Property, plant and equipment | 27,376 | ||||
Prepaid expenses and other assets | 263 | ||||
Non-current assets not impacted by IFRS 16 | 32,008 | ||||
Total Non-current assets | 59,647 | ||||
Prepaid expenses and other assets | 416 | ||||
Assets held for sale | 5,062 | ||||
Current assets not impacted by IFRS 16 | 33,073 | ||||
Total Current assets | 38,551 | ||||
Assets | 98,198 | ||||
Equity | 24,903 | ||||
Long-term debt | 9,570 | ||||
Other liabilities | 2,449 | ||||
Non-current liabilities not impacted by IFRS 16 | 14,377 | ||||
Total Non-current liabilities | 26,396 | ||||
Short-term debt and current portion of long-term debt | 6,027 | ||||
Other liabilities | 7,055 | ||||
Liabilities held for sale | 3,192 | ||||
Current liabilities not impacted by IFRS 16 | 30,625 | ||||
Total Current liabilities | 46,899 | ||||
Total Equity and liabilities | € 98,198 | ||||
Lease liabilities | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Borrowings | 1,640 | 261 | |||
Long-term debt | 1,280 | 205 | |||
Short-term debt and current portion of long-term debt | € 360 | € 56 |
Basis of presentation - IFRS _2
Basis of presentation - IFRS 16 - transition disclosures (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Reconciliation of opening balance for lease liabilities [Line Items] | |||
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 5.70% | ||
Minimum lease payments receivable under non-cancellable operating lease | € 1,642 | ||
Lease commitments for short-term leases for which recognition exemption has been used | € (28) | € (102) | |
Lease commitments for leases of low-value assets for which recognition exemption has been used | (27) | ||
Gross lease liabilities | € 2,146 | 1,513 | |
Effect of discounting on gross lease liabilities | (444) | ||
Present value of lease liabilities, excluding finance leases under IAS 17 | 1,069 | ||
Minimum finance lease payments payable, at present value | 261 | ||
Lease liabilities | € 1,330 | ||
Non-cancellable lease contracts [Member] | |||
Reconciliation of opening balance for lease liabilities [Line Items] | |||
Minimum lease payments receivable under non-cancellable operating lease | 1,027 | ||
Reasonably certain to exercised [Member] | |||
Reconciliation of opening balance for lease liabilities [Line Items] | |||
Minimum lease payments receivable under non-cancellable operating lease | € 615 |
Basis of presentation - change
Basis of presentation - change in accounting policy (Details) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of financial position [abstract] | ||||
Provisions | € 5,027 | € 5,413 | € 5,530 | € 6,326 |
Tax liabilities | 278 | 149 | 314 | 219 |
Non-current liabilities not impacted by reclassification | 19,934 | 22,199 | 28,976 | |
Total Non-current liabilities | 26,015 | 25,496 | 28,043 | 35,521 |
Provisions | 8,978 | 10,394 | 8,970 | 9,299 |
Tax liabilities | 122 | 203 | 348 | 180 |
Current liabilities not impacted by reclassification | 35,877 | 37,951 | 39,990 | |
Total Current liabilities | 43,354 | 46,474 | 47,269 | 49,469 |
Statement of cash flows [abstract] | ||||
Change in provisions | (1,744) | 842 | 464 | |
Change in other liabilities, payables and receivables | (1,268) | (1,213) | 358 | |
Cash flows (used in)/from operating activities - discontinued operations | (308) | 484 | 705 | |
Cash flows from operating activities not impacted by reclassification | 9,835 | 8,858 | ||
Cash flows from (used in) operating activities | 10,462 | 9,948 | 10,385 | |
Current tax liabilities | € 400 | 352 | ||
Previously stated | ||||
Statement of financial position [abstract] | ||||
Provisions | 5,561 | 5,770 | 6,520 | |
Tax liabilities | 1 | 74 | 25 | |
Non-current liabilities not impacted by reclassification | 19,934 | 22,199 | 28,976 | |
Total Non-current liabilities | 25,496 | 28,043 | 35,521 | |
Provisions | 10,483 | 9,009 | 9,317 | |
Tax liabilities | 114 | 309 | 162 | |
Current liabilities not impacted by reclassification | 35,877 | 37,951 | 39,990 | |
Total Current liabilities | 46,474 | 47,269 | 49,469 | |
Statement of cash flows [abstract] | ||||
Change in provisions | 913 | 545 | ||
Change in other liabilities, payables and receivables | (1,284) | 277 | ||
Cash flows (used in)/from operating activities - discontinued operations | 484 | 705 | ||
Cash flows from operating activities not impacted by reclassification | 9,835 | 8,858 | ||
Cash flows from (used in) operating activities | 9,948 | 10,385 | ||
Increase (decrease) due to voluntary changes in accounting policy | ||||
Statement of financial position [abstract] | ||||
Provisions | (148) | (240) | (194) | |
Tax liabilities | 148 | 240 | 194 | |
Non-current liabilities not impacted by reclassification | 0 | 0 | 0 | |
Total Non-current liabilities | 0 | 0 | 0 | |
Provisions | (89) | (39) | (18) | |
Tax liabilities | 89 | 39 | 18 | |
Current liabilities not impacted by reclassification | 0 | 0 | 0 | |
Total Current liabilities | 0 | 0 | 0 | |
Statement of cash flows [abstract] | ||||
Change in provisions | (71) | (81) | ||
Change in other liabilities, payables and receivables | 71 | 81 | ||
Cash flows (used in)/from operating activities - discontinued operations | 0 | 0 | ||
Cash flows from operating activities not impacted by reclassification | 0 | 0 | ||
Cash flows from (used in) operating activities | € 0 | 0 | ||
Magneti Marelli S.p.A. | Increase (decrease) due to voluntary changes in accounting policy | Assets and liabilities classified as held for sale [member] | ||||
Statement of cash flows [abstract] | ||||
Current tax liabilities | € 52 | € 43 |
Scope of consolidation - list o
Scope of consolidation - list of principal subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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% |
Alfa Romeo (Shanghai) Automobiles Sales Co. Ltd. [Member] | |
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 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.S. | |
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% |
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 Société en nom collectif | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Scope of consolidation - Magnet
Scope of consolidation - Magneti Marelli - consideration received (Details) - EUR (€) € in Millions | Jan. 31, 2020 | May 02, 2019 |
Disclosure of non-current assets held for sale and discontinued operations [Abstract] | ||
Consideration paid (received) | € (48) | € (5,772) |
Portion of consideration paid (received) consisting of cash and cash equivalents | (5,774) | |
Portion of consideration paid (received) contingent on future events | 70 | |
Portion of consideration (paid) received contingent on future events, payable by FCA | (16) | |
Transaction costs related to disposal of subsidiary | 16 | |
Preliminary purchase price adjustment | € 40 |
Scope of consolidation - Magn_2
Scope of consolidation - Magneti Marelli - disposal (Details) - EUR (€) € in Millions | Jan. 31, 2020 | May 02, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets And Liabilities Classified As Held For Sale [Line Items] | ||||||
Property, plant and equipment | € 28,608 | € 26,307 | ||||
Loans and receivables | 242 | 252 | ||||
Cash and cash equivalents | 15,014 | 12,450 | ||||
Borrowings | € (12,901) | € (15,597) | € (14,528) | € (17,971) | ||
Consideration paid (received) | € 48 | € 5,772 | ||||
Assets and liabilities classified as held for sale [member] | ||||||
Assets And Liabilities Classified As Held For Sale [Line Items] | ||||||
Intangible assets | 788 | |||||
Property, plant and equipment | 2,146 | |||||
Loans and receivables | 10 | |||||
Cash and cash equivalents | 426 | |||||
Other assets | 2,055 | |||||
Borrowings | (782) | |||||
Trade and other payables | (1,942) | |||||
Other liabilities | (791) | |||||
Assets (liabilities) | 1,910 | |||||
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale | (91) | |||||
Gain on sale attributable to FCA | € 3,771 |
Scope of consolidation - Magn_3
Scope of consolidation - Magneti Marelli - held for sale (Details) - EUR (€) € in Millions | Dec. 31, 2019 | May 02, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets And Liabilities Classified As Held For Sale [Line Items] | |||||
Other assets classified as held for sale not included in disposal group | € 5 | ||||
Assets classified as held for sale | |||||
Property, plant and equipment | € 28,608 | 26,307 | |||
Deferred tax assets | 1,689 | 1,814 | |||
Trade receivables | 2,064 | 2,048 | |||
Cash and cash equivalents | 15,014 | 12,450 | |||
Total Assets held for sale | 98,044 | 96,873 | |||
Current assets [abstract] | |||||
Inventories | 9,722 | 10,694 | |||
Current trade and other receivables | 6,628 | 7,188 | |||
Non-current assets [abstract] | |||||
Non-current trade and other receivables | 2,376 | 1,484 | |||
Liabilities classified as held for sale | |||||
Debt and Other | 12,901 | € 15,597 | 14,528 | € 17,971 | |
Employee benefit liability | 9,051 | 8,470 | |||
Deferred tax liabilities | 1,628 | 937 | |||
Current liabilities [abstract] | |||||
Short-term debt and current portion of long-term debt | 4,876 | 5,861 | |||
Current employee benefit liability | 544 | 595 | |||
Non-current liabilities [abstract] | |||||
Long-term debt | 8,025 | 8,667 | |||
Non-current employee benefit liability | € 8,507 | 7,875 | |||
Assets and liabilities classified as held for sale [member] | |||||
Assets classified as held for sale | |||||
Intangible assets | € 788 | ||||
Property, plant and equipment | 2,146 | ||||
Cash and cash equivalents | 426 | ||||
Other | 2,055 | ||||
Liabilities classified as held for sale | |||||
Debt and Other | 782 | ||||
Other liabilities | € 791 | ||||
Magneti Marelli S.p.A. | Disposal groups classified as held for sale | |||||
Assets classified as held for sale | |||||
Intangible assets | 717 | ||||
Property, plant and equipment | 1,793 | ||||
Deferred tax assets | 127 | ||||
Inventories | 766 | ||||
Trade receivables | 545 | ||||
Cash and cash equivalents | 719 | ||||
Other | 129 | ||||
Total Assets held for sale | 4,796 | ||||
Current assets [abstract] | |||||
Inventories | 766 | ||||
Current trade and other receivables | 492 | ||||
Current cash and cash equivalents | 719 | ||||
Other current assets | 27 | ||||
Non-current assets [abstract] | |||||
Non-current intangible assets and goodwill | 717 | ||||
Non-current property, plant and equipment | 1,793 | ||||
Non-current deferred tax assets | 127 | ||||
Non-current trade and other receivables | 53 | ||||
Other non-current assets | 102 | ||||
Liabilities classified as held for sale | |||||
Debt and Other | 177 | ||||
Employee benefit liability | 300 | ||||
Provisions | 210 | ||||
Deferred tax liabilities | 99 | ||||
Trade payables | 1,788 | ||||
Other liabilities | 357 | ||||
Total Liabilities held for sale | 2,931 | ||||
Current liabilities [abstract] | |||||
Short-term debt and current portion of long-term debt | 64 | ||||
Current employee benefit liability | 55 | ||||
Current provisions | 100 | ||||
Trade and other current payables | 1,788 | ||||
Other current liabilities | 305 | ||||
Non-current liabilities [abstract] | |||||
Long-term debt | 113 | ||||
Non-current employee benefit liability | 245 | ||||
Non-current provisions | 110 | ||||
Non-current deferred tax liabilities | 99 | ||||
Other non-current liabilities | € 52 |
Scope of consolidation - Magn_4
Scope of consolidation - Magneti Marelli - discontinued operations (Details) - EUR (€) € in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | May 02, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Net revenues | € 108,187 | € 110,412 | € 105,730 | ||
Net financial expenses | 1,005 | 1,056 | 1,345 | ||
Profit before taxes | 4,021 | 4,108 | 5,879 | ||
Tax expense | 1,321 | 778 | 2,588 | ||
Profit from discontinued operations, net of tax | 3,930 | 302 | 219 | ||
Interest expense on lease liabilities | € 88 | 0 | 0 | ||
Discontinued operations [member] | |||||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Net revenues | € 1,657 | 4,998 | 5,204 | ||
Expense | 1,447 | 4,493 | 4,798 | ||
Net financial expenses | 5 | 85 | 124 | ||
Profit before taxes | 205 | 420 | 282 | ||
Tax expense | 44 | 118 | 63 | ||
Profit (loss) after tax | 161 | 302 | 219 | ||
Gain (loss) recognised on measurement to fair value less costs to sell or on disposal of assets or disposal groups constituting discontinued operation | 3,771 | 0 | 0 | ||
Tax expense (income) relating to gain (loss) on discontinuance | 2 | 0 | 0 | ||
Profit from discontinued operations, net of tax | 3,930 | € 302 | € 219 | ||
Lease expense for low-value assets | 2 | ||||
Tax participation exemption utilized | 55 | ||||
Impact of ceasing amortization and depreciation for discontinued operations, net of tax | € 96 | 134 | |||
Impact of ceasing amortization and depreciation for discontinued operations, tax effect | € 20 | 27 | |||
Interest expense on lease liabilities | 5 | ||||
Expense relating to short-term leases for which recognition exemption has been used | € 6 |
Scope of consolidation - Vari-F
Scope of consolidation - Vari-Form Inc. - acquisition details (Details) - Dec. 31, 2019 € in Millions, $ in Millions | EUR (€) | USD ($) |
Disclosure of detailed information about business combination [abstract] | ||
Cash transferred | € 55 | $ 62 |
Scope of consolidation - Held f
Scope of consolidation - Held for sale businesses (Details) - EUR (€) € in Millions | Jan. 31, 2020 | May 02, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets And Liabilities Classified As Held For Sale [Line Items] | ||||
Consideration paid (received) | € (48) | € (5,772) | ||
Value of Teksid Cast Iron business | € 210 | |||
Assets | 98,044 | € 96,873 | ||
Teksid S.p.A. | Disposal groups classified as held for sale | ||||
Assets And Liabilities Classified As Held For Sale [Line Items] | ||||
Assets | 325 | |||
Liabilities | € 212 |
Scope of consolidation - Itedi
Scope of consolidation - Itedi held for sale (Details) € in Millions | Jun. 27, 2017 | Jul. 31, 2016 | Dec. 31, 2018EUR (€) | Jul. 02, 2017 |
Assets And Liabilities Classified As Held For Sale [Line Items] | ||||
Investment, Distribution To Shareholders, Share Ratio | 0.0484 | |||
Italiana Editrice S.p.A [Member] | ||||
Assets And Liabilities Classified As Held For Sale [Line Items] | ||||
Proportion of ownership interest in subsidiary | 77.00% | |||
Proportion Of Ownership Interest In Subsidiary Sold By Entity And Non-controlling Interest Holder | 100.00% | |||
Gains (losses) recognised when control of subsidiary is lost | € 49 | |||
GEDI Gruppo Editoriale S.p.A. [Member] | FCA Group [Member] | ||||
Assets And Liabilities Classified As Held For Sale [Line Items] | ||||
Shareholder ownership percentage | 14.63% | |||
GEDI Gruppo Editoriale S.p.A. [Member] | Ital Press [Member] | ||||
Assets And Liabilities Classified As Held For Sale [Line Items] | ||||
Shareholder ownership percentage | 4.37% | |||
GEDI Gruppo Editoriale S.p.A. [Member] | CIR S.p.A [Member] | ||||
Assets And Liabilities Classified As Held For Sale [Line Items] | ||||
Shareholder ownership percentage | 43.40% |
Scope of consolidation - decons
Scope of consolidation - deconsolidation of FCA Venezuela (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | |||
Impairment loss | € 1,589 | € 297 | € 219 |
Deconsolidation, loss | (42) | ||
Venezuelan Operations | |||
Disclosure of subsidiaries [line items] | |||
Deconsolidation, loss | 42 | ||
LATAM | |||
Disclosure of subsidiaries [line items] | |||
Impairment loss | € 8 | 56 | |
LATAM | Venezuelan Operations | |||
Disclosure of subsidiaries [line items] | |||
Impairment loss | € 21 |
Scope of consolidation - non-co
Scope of consolidation - non-controlling interests (Details) - FMM Pernambuco - EUR (€) € in Millions | 1 Months Ended | 3 Months Ended |
Jan. 31, 2017 | Sep. 30, 2017 | |
Disclosure of subsidiaries [line items] | ||
Percent of subsidiary disposed | 16.00% | |
Gains on disposals of investments | € 19 |
Net revenues - summary of reven
Net revenues - summary of revenue (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |||
Sales of goods | € 103,019 | € 104,990 | € 102,029 |
Services provided | 3,961 | 3,871 | 2,182 |
Contract revenues | 672 | 958 | 935 |
Lease installments from assets sold with a buy-back commitment | 362 | 394 | 421 |
Interest income of financial services activities | 173 | 199 | 163 |
Total Net revenues | € 108,187 | € 110,412 | € 105,730 |
Net revenues - summary of rev_2
Net revenues - summary of revenue by geographical area (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of geographical areas [line items] | |||
Net revenues | € 108,187 | € 110,412 | € 105,730 |
North America(1) | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 73,848 | 73,405 | 67,500 |
Italy | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 7,259 | 8,815 | 8,407 |
Brazil | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 7,423 | 6,452 | 5,982 |
France | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 3,021 | 3,204 | 3,121 |
Germany | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 2,519 | 2,755 | 2,804 |
China | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 1,753 | 1,974 | 3,562 |
Spain | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 1,200 | 1,397 | 1,306 |
Argentina | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 861 | 1,384 | 1,791 |
Japan | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 995 | 1,136 | 1,267 |
Turkey | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 739 | 896 | 1,244 |
Japan | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 839 | 718 | 735 |
Australia | |||
Disclosure of geographical areas [line items] | |||
Net revenues | 320 | 418 | 496 |
Other countries | |||
Disclosure of geographical areas [line items] | |||
Net revenues | € 7,410 | € 7,858 | € 7,515 |
Net revenues - summary of rev_3
Net revenues - summary of revenue by segment and type (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
summary of revenue by type and segment [Line Items] | |||
Sales of goods | € 103,019 | € 104,990 | € 102,029 |
Services provided | 3,961 | 3,871 | 2,182 |
Contract revenues | 672 | 958 | 935 |
Revenues from goods and services | 107,652 | 109,819 | |
Lease installments from assets sold with a buy-back commitment | 362 | 394 | 421 |
Interest income of financial services activities | 173 | 199 | 163 |
Total Net revenues | 108,187 | 110,412 | 105,730 |
North America | |||
summary of revenue by type and segment [Line Items] | |||
Total Net revenues | 73,337 | 72,353 | 66,047 |
LATAM | |||
summary of revenue by type and segment [Line Items] | |||
Total Net revenues | 8,449 | 8,142 | 7,994 |
APAC | |||
summary of revenue by type and segment [Line Items] | |||
Total Net revenues | 2,762 | 2,646 | 3,218 |
EMEA | |||
summary of revenue by type and segment [Line Items] | |||
Total Net revenues | 20,466 | 22,714 | 22,584 |
Maserati | |||
summary of revenue by type and segment [Line Items] | |||
Total Net revenues | 1,592 | 2,645 | 4,037 |
Other Activities | |||
summary of revenue by type and segment [Line Items] | |||
Total Net revenues | 1,581 | 1,912 | |
Operating segments [member] | North America | |||
summary of revenue by type and segment [Line Items] | |||
Sales of goods | 70,809 | 69,908 | |
Services provided | 2,388 | 2,287 | |
Contract revenues | 0 | 0 | |
Revenues from goods and services | 73,197 | 72,195 | |
Lease installments from assets sold with a buy-back commitment | 140 | 158 | |
Interest income of financial services activities | 0 | 0 | |
Total Net revenues | 73,357 | 72,384 | 66,094 |
Operating segments [member] | LATAM | |||
summary of revenue by type and segment [Line Items] | |||
Sales of goods | 8,059 | 7,756 | |
Services provided | 297 | 270 | |
Contract revenues | 0 | 0 | |
Revenues from goods and services | 8,356 | 8,026 | |
Lease installments from assets sold with a buy-back commitment | 0 | 0 | |
Interest income of financial services activities | 93 | 116 | |
Total Net revenues | 8,461 | 8,152 | 8,004 |
Operating segments [member] | APAC | |||
summary of revenue by type and segment [Line Items] | |||
Sales of goods | 2,674 | 2,560 | |
Services provided | 27 | 21 | |
Contract revenues | 0 | 0 | |
Revenues from goods and services | 2,701 | 2,581 | |
Lease installments from assets sold with a buy-back commitment | 0 | 0 | |
Interest income of financial services activities | 61 | 65 | |
Total Net revenues | 2,814 | 2,703 | 3,250 |
Operating segments [member] | EMEA | |||
summary of revenue by type and segment [Line Items] | |||
Sales of goods | 19,275 | 21,516 | |
Services provided | 950 | 945 | |
Contract revenues | 0 | 0 | |
Revenues from goods and services | 20,225 | 22,461 | |
Lease installments from assets sold with a buy-back commitment | 222 | 235 | |
Interest income of financial services activities | 19 | 18 | |
Total Net revenues | 20,571 | 22,815 | 22,700 |
Operating segments [member] | Maserati | |||
summary of revenue by type and segment [Line Items] | |||
Sales of goods | 1,563 | 2,606 | |
Services provided | 29 | 39 | |
Contract revenues | 0 | 0 | |
Revenues from goods and services | 1,592 | 2,645 | |
Lease installments from assets sold with a buy-back commitment | 0 | 0 | |
Interest income of financial services activities | 0 | 0 | |
Total Net revenues | 1,603 | 2,663 | € 4,058 |
Operating segments [member] | Other Activities | |||
summary of revenue by type and segment [Line Items] | |||
Sales of goods | 639 | 644 | |
Services provided | 270 | 309 | |
Contract revenues | 672 | 958 | |
Revenues from goods and services | 1,581 | 1,911 | |
Lease installments from assets sold with a buy-back commitment | 0 | 1 | |
Interest income of financial services activities | € 0 | € 0 |
Net revenues - narrative (Detai
Net revenues - narrative (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of revenue from contracts with customers [Abstract] | ||
Revenue from performance obligations satisfied or partially satisfied in previous periods | € (4) | € (14) |
Research and development cost_2
Research and development costs (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | |||
Research and development expenditures expensed | € 1,305 | € 1,448 | € 1,506 |
Total Research and development costs | 3,612 | 3,051 | 2,903 |
Capitalised development expenditure | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amortization of capitalized development expenditures | 1,358 | 1,456 | 1,294 |
Impairment and write-off of capitalized development expenditures | € 949 | € 147 | € 103 |
Net financial expenses (Details
Net financial expenses (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |||
Interest income and other financial income | € 261 | € 249 | € 220 |
Financial expenses: | |||
Interest expense and other financial expenses: | 784 | 929 | 1,084 |
Interest expense on notes | 370 | 422 | 568 |
Interest expense on borrowings from bank | 181 | 259 | 350 |
Other interest cost and financial expenses | 233 | 248 | 166 |
Interest expense on lease liabilities | 88 | 0 | 0 |
Write-down of financial assets | 21 | 6 | 21 |
Losses on disposal of securities | 2 | 6 | 5 |
Net interest expense on employee benefits provisions | 298 | 276 | 304 |
Total Financial expenses | 1,193 | 1,217 | 1,414 |
Net expenses from derivative financial instruments and exchange rate differences | 73 | 88 | 151 |
Total Financial expenses and Net expenses from derivative financial instruments and exchange rate differences | 1,266 | 1,305 | 1,565 |
Net Financial expenses | € 1,005 | € 1,056 | € 1,345 |
Tax expense - tax expense summa
Tax expense - tax expense summary (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Current tax expense | € 435 | € 592 | € 832 |
Deferred tax expense | 872 | 520 | 1,776 |
Tax expense/(benefit) relating to prior periods | 14 | (334) | (20) |
Total Tax expense | € 1,321 | € 778 | € 2,588 |
Tax expense - theoretical and r
Tax expense - theoretical and recognized income tax reconciliation (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Theoretical income taxes | € 766 | € 781 | € 1,126 |
Tax effect on: | |||
Recognition and utilization of previously unrecognized deferred tax assets | (159) | 0 | (161) |
Permanent differences | (411) | (416) | (397) |
Tax credits | (112) | (135) | (23) |
Deferred tax assets not recognized and write-downs | 976 | 633 | 1,053 |
Differences between foreign tax rates and the theoretical applicable tax rate and tax holidays | 171 | 207 | 970 |
Taxes relating to prior years | 14 | (334) | (20) |
Tax rate changes | 9 | 0 | (22) |
Withholding tax | 41 | 41 | 78 |
Other differences | 20 | (15) | (8) |
Total Tax expense, excluding IRAP(1) | € 1,315 | € 762 | € 2,596 |
Effective tax rate | 32.70% | 18.50% | 44.20% |
IRAP (current and deferred) | € 6 | € 16 | € (8) |
Total Tax expense | € 1,321 | € 778 | € 2,588 |
Tax expense - deferred tax asse
Tax expense - deferred tax assets and liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Abstract] | ||||
Deferred tax assets | € 1,689 | € 1,814 | ||
Deferred tax liabilities | (1,628) | (937) | ||
Deferred tax asset (liability) | € 61 | € 877 | € 877 | € 1,616 |
Tax expense - deferred tax roll
Tax expense - deferred tax rollforward (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset (liability) | € 877 | € 1,616 |
Recognized in Consolidated Income Statement | (867) | (569) |
Recognized in Equity | (57) | 81 |
Transferred to Assets/(Liabilities) Held for Sale | 2 | (28) |
Translation differences and other changes | 8 | (61) |
Deferred tax assets | (1,689) | (1,814) |
Deferred tax liabilities | (1,628) | (937) |
Deferred tax asset (liability) | 61 | 877 |
Provisions | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | (4,127) | (3,848) |
Recognized in Consolidated Income Statement | 470 | (240) |
Recognized in Equity | 0 | 0 |
Transferred to Assets/(Liabilities) Held for Sale | (10) | 55 |
Translation differences and other changes | 6 | 94 |
Deferred tax assets | (3,673) | (4,127) |
Provision for employee benefits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | (1,487) | (1,828) |
Recognized in Consolidated Income Statement | 41 | 280 |
Recognized in Equity | (1) | 77 |
Transferred to Assets/(Liabilities) Held for Sale | (1) | 31 |
Translation differences and other changes | 22 | 47 |
Deferred tax assets | (1,470) | (1,487) |
Lease Liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | (260) | |
Recognized in Consolidated Income Statement | (106) | |
Recognized in Equity | 0 | |
Transferred to Assets/(Liabilities) Held for Sale | 1 | |
Translation differences and other changes | 4 | |
Deferred tax assets | (369) | |
Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | (166) | (192) |
Recognized in Consolidated Income Statement | 15 | 24 |
Recognized in Equity | 0 | 0 |
Transferred to Assets/(Liabilities) Held for Sale | 0 | 2 |
Translation differences and other changes | 0 | 0 |
Deferred tax assets | (151) | (166) |
Impairment of financial assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | (155) | (169) |
Recognized in Consolidated Income Statement | 1 | 1 |
Recognized in Equity | 0 | 0 |
Transferred to Assets/(Liabilities) Held for Sale | 0 | 13 |
Translation differences and other changes | 12 | 0 |
Deferred tax assets | (166) | (155) |
Inventories | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | (246) | (252) |
Recognized in Consolidated Income Statement | 56 | (22) |
Recognized in Equity | 0 | 0 |
Transferred to Assets/(Liabilities) Held for Sale | 0 | 24 |
Translation differences and other changes | (2) | (4) |
Deferred tax assets | (188) | (246) |
Allowances for doubtful accounts | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | (96) | (122) |
Recognized in Consolidated Income Statement | (13) | 6 |
Recognized in Equity | 0 | 0 |
Transferred to Assets/(Liabilities) Held for Sale | 0 | 7 |
Translation differences and other changes | (4) | (13) |
Deferred tax assets | (105) | (96) |
Other | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | (685) | (387) |
Recognized in Consolidated Income Statement | 22 | (48) |
Recognized in Equity | 4 | (4) |
Transferred to Assets/(Liabilities) Held for Sale | (1) | 77 |
Translation differences and other changes | 42 | 323 |
Deferred tax assets | (702) | (685) |
Deferred tax assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | (7,222) | (6,798) |
Recognized in Consolidated Income Statement | 486 | 1 |
Recognized in Equity | 3 | 73 |
Transferred to Assets/(Liabilities) Held for Sale | (11) | 209 |
Translation differences and other changes | 80 | 447 |
Deferred tax assets | (6,824) | (6,962) |
Accelerated depreciation | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (2,296) | (1,891) |
Recognized in Consolidated Income Statement | 33 | 386 |
Recognized in Equity | 0 | 0 |
Transferred to Assets/(Liabilities) Held for Sale | 1 | (29) |
Translation differences and other changes | 0 | (48) |
Deferred tax liabilities | (2,330) | (2,296) |
Capitalized development assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (2,440) | (2,116) |
Recognized in Consolidated Income Statement | 129 | 103 |
Recognized in Equity | 0 | 0 |
Transferred to Assets/(Liabilities) Held for Sale | 0 | (81) |
Translation differences and other changes | (32) | (302) |
Deferred tax liabilities | (2,601) | (2,440) |
Other Intangible assets and Intangible assets with indefinite useful lives | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (912) | (849) |
Recognized in Consolidated Income Statement | (36) | 20 |
Recognized in Equity | 0 | 0 |
Transferred to Assets/(Liabilities) Held for Sale | 0 | (2) |
Translation differences and other changes | (72) | (45) |
Deferred tax liabilities | (948) | (912) |
Right of Use Assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (260) | |
Recognized in Consolidated Income Statement | 101 | |
Recognized in Equity | 0 | |
Transferred to Assets/(Liabilities) Held for Sale | 0 | |
Translation differences and other changes | (4) | |
Deferred tax liabilities | (365) | |
Provision for employee benefits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (91) | (50) |
Recognized in Consolidated Income Statement | 9 | 2 |
Recognized in Equity | (22) | 1 |
Transferred to Assets/(Liabilities) Held for Sale | 0 | (3) |
Translation differences and other changes | 1 | (41) |
Deferred tax liabilities | (77) | (91) |
Other | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (424) | (314) |
Recognized in Consolidated Income Statement | (156) | 103 |
Recognized in Equity | (38) | (5) |
Transferred to Assets/(Liabilities) Held for Sale | 0 | (86) |
Translation differences and other changes | (17) | (98) |
Deferred tax liabilities | (247) | (424) |
Deferred tax liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liabilities | (6,423) | (5,220) |
Recognized in Consolidated Income Statement | 80 | 614 |
Recognized in Equity | (60) | (4) |
Transferred to Assets/(Liabilities) Held for Sale | 1 | (201) |
Translation differences and other changes | (124) | (534) |
Deferred tax liabilities | (6,568) | (6,163) |
Deferred tax asset arising on tax loss carry-forwards | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | (4,963) | (4,718) |
Recognized in Consolidated Income Statement | (106) | (708) |
Recognized in Equity | 0 | 0 |
Transferred to Assets/(Liabilities) Held for Sale | (12) | 328 |
Translation differences and other changes | (220) | (135) |
Deferred tax assets | (4,861) | (4,963) |
Unrecognized deferred tax assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets | (4,885) | (4,680) |
Recognized in Consolidated Income Statement | (407) | (662) |
Recognized in Equity | 0 | (12) |
Transferred to Assets/(Liabilities) Held for Sale | (20) | 308 |
Translation differences and other changes | (256) | 161 |
Deferred tax assets | € (5,056) | € (4,885) |
Tax expense - temporary differe
Tax expense - temporary differences and tax loss maturity schedule (Details) € in Millions | Dec. 31, 2019EUR (€) |
Corporate taxation | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | € (18,089) |
Temporary differences and tax losses | 409 |
Corporate taxation | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 27,294 |
Corporate taxation | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (26,931) |
Corporate taxation | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 18,135 |
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 | (560) |
Temporary differences and tax losses | (589) |
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 | 3,701 |
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 | (2,623) |
Corporate taxation | 2020 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 71 |
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 | (107) |
Temporary differences and tax losses | 331 |
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 | 3,019 |
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 | (2,664) |
Corporate taxation | 2021 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 83 |
Corporate taxation | 2022 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (31) |
Temporary differences and tax losses | 204 |
Corporate taxation | 2022 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 2,834 |
Corporate taxation | 2022 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (2,689) |
Corporate taxation | 2022 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 90 |
Corporate taxation | 2023 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (597) |
Temporary differences and tax losses | (90) |
Corporate taxation | 2023 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 3,068 |
Corporate taxation | 2023 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (2,746) |
Corporate taxation | 2023 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 185 |
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 | (2,885) |
Temporary differences and tax losses | (99) |
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 | 14,340 |
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 | (13,054) |
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 | 1,500 |
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 | (13,909) |
Temporary differences and tax losses | (526) |
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 | 332 |
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 | (3,155) |
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 | 16,206 |
Local taxation | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (6,290) |
Temporary differences and tax losses | 473 |
Local taxation | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 9,674 |
Local taxation | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (7,896) |
Local taxation | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 4,985 |
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 | (410) |
Temporary differences and tax losses | 12 |
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 | 1,145 |
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 | (724) |
Local taxation | 2020 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 1 |
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 | (69) |
Temporary differences and tax losses | (127) |
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 | 648 |
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 | (706) |
Local taxation | 2021 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 0 |
Local taxation | 2022 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (10) |
Temporary differences and tax losses | (141) |
Local taxation | 2022 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 574 |
Local taxation | 2022 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (706) |
Local taxation | 2022 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 1 |
Local taxation | 2023 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amounts for which deferred tax assets were not recognized | (503) |
Temporary differences and tax losses | (182) |
Local taxation | 2023 | Deductible temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 1,083 |
Local taxation | 2023 | Taxable temporary differences | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | (762) |
Local taxation | 2023 | Tax losses | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Temporary differences and unused tax losses | 0 |
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 | (638) |
Temporary differences and tax losses | 643 |
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 | 6,171 |
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 | (4,895) |
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 | 5 |
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 | (4,660) |
Temporary differences and tax losses | 268 |
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 | 53 |
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 | (103) |
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 | € 4,978 |
Tax expense - narrative (Detail
Tax expense - narrative (Details) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 23, 2019 | Jan. 01, 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Applicable tax rate | 19.00% | 19.00% | 19.25% | ||
Effective tax rate | 32.70% | 18.50% | 44.20% | ||
Impairment loss | € 1,589 | € 297 | € 219 | ||
Increase in taxable gain for acquisition of FCA North America | € 2,500 | ||||
Previously forfeited Italian tax loss carryforwards | 400 | ||||
Tax effect on previously forfeited Italian tax loss carryforwards | 96 | ||||
Increase in taxable gain for acquisition of FCA North America, net of previously unrecognised Italian tax loss carryforwards | 2,100 | ||||
Tax effect on increase in taxable gain for acquisition of FCA North America, net of previously unrecognised Italian tax loss carryforwards | € 504 | ||||
Deferred tax assets | 1,689 | 1,814 | |||
Deferred tax assets | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 6,824 | 6,962 | 6,798 | € 7,222 | |
Unrecognised deferred tax assets, deductible temporary differences | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 1,113 | 898 | |||
Tax losses | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 4,861 | 4,963 | 4,718 | 4,963 | |
Unrecognised deferred tax assets, unused tax losses | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 3,943 | 3,987 | |||
Unrecognized deferred tax assets | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 5,056 | 4,885 | € 4,680 | € 4,885 | |
North America | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Increase (decrease) in deferred tax liability (asset) | 831 | ||||
Brazil | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 1,888 | 1,532 | |||
Brazil | Recognized deferred tax assets | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 131 | 133 | |||
Brazil | Unrecognized deferred tax assets | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 1,757 | 1,399 | |||
Italy | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Increase (decrease) in deferred tax liability (asset) | 179 | ||||
Deferred tax assets | 3,263 | 3,370 | |||
Italy | Recognized deferred tax assets | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 705 | 884 | |||
Italy | Unrecognized deferred tax assets | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 2,558 | 2,486 | |||
Japan | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Increase (decrease) in deferred tax liability (asset) | 151 | ||||
Deferred tax assets | 151 | 162 | |||
Japan | Recognized deferred tax assets | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deferred tax assets | 151 | € 0 | |||
Rationalization of product portfolio plans | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Impairment loss | € 1,376 |
Other information by nature (De
Other information by nature (Details) € in Billions | 12 Months Ended | ||
Dec. 31, 2019EUR (€)employee | Dec. 31, 2018EUR (€)employee | Dec. 31, 2017EUR (€)employee | |
Additional information [abstract] | |||
Personnel costs | € | € 11.4 | € 11.7 | € 11.7 |
Average number of employees | employee | 198,772 | 203,122 | 197,040 |
Other information by nature - i
Other information by nature - impact of leases on net profit before taxes (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of leases [Abstract] | |||
Depreciation, right-of-use assets | € 346 | ||
Interest expense on lease liabilities | 88 | € 0 | € 0 |
Expense relating to variable lease payments not included in measurement of lease liabilities | 3 | ||
Income from subleasing right-of-use assets | (85) | ||
Expenses short-term leases and leases of low-value assets | 186 | ||
Gains (losses) arising from sale and leaseback transactions | (91) | ||
Impact of leases on profit before taxes | € 447 |
Goodwill and intangible asset_3
Goodwill and intangible assets with indefinite useful lives - schedule of goodwill and intangible assets (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Brands | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | € 3,136 | € 2,994 |
Acquisitions through business combinations, intangible assets and goodwill | 0 | |
Transfers to Assets held for sale | 0 | 0 |
Translation differences and Other | 56 | 142 |
Intangible assets and goodwill | 3,192 | 3,136 |
Goodwill | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | 10,834 | 10,396 |
Acquisitions through business combinations, intangible assets and goodwill | 34 | |
Transfers to Assets held for sale | (11) | (63) |
Translation differences and Other | 208 | 501 |
Intangible assets and goodwill | 11,065 | 10,834 |
Goodwill | Gross amount | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | 11,254 | 10,850 |
Acquisitions through business combinations, intangible assets and goodwill | 34 | |
Transfers to Assets held for sale | (11) | (96) |
Translation differences and Other | 162 | 500 |
Intangible assets and goodwill | 11,439 | 11,254 |
Goodwill | Accumulated impairment losses | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | (420) | (454) |
Acquisitions through business combinations, intangible assets and goodwill | 0 | |
Transfers to Assets held for sale | 0 | 33 |
Translation differences and Other | 46 | 1 |
Intangible assets and goodwill | (374) | (420) |
Goodwill and intangible assets with indefinite useful lives | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | 13,970 | 13,390 |
Acquisitions through business combinations, intangible assets and goodwill | 34 | |
Transfers to Assets held for sale | (11) | (63) |
Translation differences and Other | 264 | 643 |
Intangible assets and goodwill | € 14,257 | € 13,970 |
Goodwill and intangible asset_4
Goodwill and intangible assets with indefinite useful lives - narrative (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and intangible assets with indefinite useful lives | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Acquisitions through business combinations, intangible assets and goodwill | € 34,000,000 | ||
Transfers to Assets held for sale | 11,000,000 | € 63,000,000 | |
Impairment charges, goodwill and intangible assets with indefinite lives | 0 | 0 | € 0 |
FCA US LLC | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Acquisitions through business combinations, intangible assets and goodwill | € 11,008,000,000 | 10,801,000,000 | |
Name of acquiree | FCA US | ||
Vari-Form Inc. | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Acquisitions through business combinations, intangible assets and goodwill | € 34,000,000 | ||
Name of acquiree | Vari-Form | ||
Magneti Marelli S.p.A. | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Transfers to Assets held for sale | € (63,000,000) |
Goodwill and intangible asset_5
Goodwill and intangible assets with indefinite useful lives - allocation summary (Details) - Goodwill - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of operating segments [line items] | |||
Intangible assets and goodwill | € 11,065 | € 10,834 | € 10,396 |
North America | |||
Disclosure of operating segments [line items] | |||
Intangible assets and goodwill | 9,059 | 8,855 | |
APAC | |||
Disclosure of operating segments [line items] | |||
Intangible assets and goodwill | 1,174 | 1,152 | |
LATAM | |||
Disclosure of operating segments [line items] | |||
Intangible assets and goodwill | 563 | 552 | |
EMEA | |||
Disclosure of operating segments [line items] | |||
Intangible assets and goodwill | 269 | 264 | |
Other activities | |||
Disclosure of operating segments [line items] | |||
Intangible assets and goodwill | € 0 | € 11 |
Other intangible assets (Detail
Other intangible assets (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | € 11,749 | ||
Impairment loss | 1,589 | € 297 | € 219 |
Intangible assets other than goodwill | 12,447 | 11,749 | |
Contractual commitments for acquisition of intangible assets | 1,419 | 215 | |
Development expenditures | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 9,825 | ||
Additions | 2,889 | 2,079 | 2,431 |
Amortization | 1,358 | 1,456 | 1,294 |
Impairment losses and asset write-offs | (949) | (147) | (103) |
Intangible assets other than goodwill | 10,507 | 9,825 | |
Development expenditures | Gross amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 20,228 | 19,899 | |
Additions | 2,235 | ||
Divestitures | (338) | (568) | |
Translation differences and other changes | 147 | 215 | |
Transfer to Assets held for sale | 0 | (1,553) | |
Intangible assets other than goodwill | 22,926 | 20,228 | 19,899 |
Development expenditures | Accumulated amortization and impairment losses | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | (10,403) | (10,202) | |
Amortization | (1,358) | (1,543) | |
Impairment losses and asset write-offs | 949 | 153 | |
Divestitures | (337) | (553) | |
Translation differences and other changes | (46) | (31) | |
Transfer to Assets held for sale | 0 | (973) | |
Intangible assets other than goodwill | (12,419) | (10,403) | (10,202) |
Patents, concessions, licenses and credits | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 1,637 | ||
Intangible assets other than goodwill | 1,717 | 1,637 | |
Patents, concessions, licenses and credits | Gross amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 3,999 | 3,583 | |
Additions | 600 | 639 | |
Divestitures | (127) | (224) | |
Translation differences and other changes | 103 | 133 | |
Transfer to Assets held for sale | (3) | (132) | |
Intangible assets other than goodwill | 4,572 | 3,999 | 3,583 |
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 | (2,362) | (2,029) | |
Amortization | (426) | (379) | |
Impairment losses and asset write-offs | 0 | 0 | |
Divestitures | (2) | (30) | |
Translation differences and other changes | (72) | (82) | |
Transfer to Assets held for sale | (3) | (98) | |
Intangible assets other than goodwill | (2,855) | (2,362) | (2,029) |
Other intangible assets | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 287 | ||
Intangible assets other than goodwill | 223 | 287 | |
Other intangible assets | Gross amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 636 | 804 | |
Additions | 67 | 93 | |
Divestitures | (82) | (89) | |
Translation differences and other changes | (5) | (41) | |
Transfer to Assets held for sale | (16) | (131) | |
Intangible assets other than goodwill | 600 | 636 | 804 |
Other intangible assets | Accumulated amortization and impairment losses | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | (349) | (513) | |
Amortization | (48) | (50) | |
Impairment losses and asset write-offs | 4 | 0 | |
Divestitures | (8) | (89) | |
Translation differences and other changes | 3 | 34 | |
Transfer to Assets held for sale | (13) | (91) | |
Intangible assets other than goodwill | (377) | (349) | (513) |
Finite-lived intangible assets | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 11,749 | ||
Intangible assets other than goodwill | 12,447 | 11,749 | |
Finite-lived intangible assets | Gross amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | 24,863 | 24,286 | |
Additions | 3,556 | 2,967 | |
Divestitures | (547) | (881) | |
Translation differences and other changes | 245 | 307 | |
Transfer to Assets held for sale | (19) | (1,816) | |
Intangible assets other than goodwill | 28,098 | 24,863 | 24,286 |
Finite-lived intangible assets | Accumulated amortization and impairment losses | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets other than goodwill | (13,114) | (12,744) | |
Amortization | (1,832) | (1,972) | |
Impairment losses and asset write-offs | 953 | 153 | |
Divestitures | (347) | (672) | |
Translation differences and other changes | (115) | (79) | |
Transfer to Assets held for sale | (16) | (1,162) | |
Intangible assets other than goodwill | (15,651) | € (13,114) | € (12,744) |
Rationalization of product portfolio plans | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Impairment losses and asset write-offs | (813) | ||
Impairment loss | € 1,376 |
Property, plant and equipment -
Property, plant and equipment - summary of property, plant and equipment (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | € 26,307 | ||
Property, plant and equipment | 28,608 | € 26,307 | |
Translation differences | 316 | 65 | |
Property, plant and equipment | 28,608 | 26,307 | |
Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | 63,601 | 66,247 | |
increase (decrease) through adoption of IFRS 16, property plant and equipment | € 1,069 | ||
Property, plant and equipment | 68,786 | 63,601 | 64,670 |
Additions | 5,403 | 3,061 | |
Divestitures | (1,348) | (944) | |
Changes In Scope Of Consolidation | 64 | ||
Translation differences | 675 | 183 | |
Transfer to Assets held for sale | 706 | 4,885 | |
Other changes | 28 | (61) | |
Property, plant and equipment | 68,786 | 63,601 | |
Accumulated amortization and impairment losses | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | (37,294) | (37,233) | |
increase (decrease) through adoption of IFRS 16, property plant and equipment | 0 | ||
Property, plant and equipment | (40,178) | (37,294) | (37,294) |
Divestitures | 1,247 | 890 | |
Changes In Scope Of Consolidation | 11 | ||
Translation differences | (359) | (118) | |
Transfer to Assets held for sale | (512) | (3,092) | |
Other changes | (24) | 67 | |
Depreciation | 3,613 | 3,848 | |
Impairment losses and asset write-offs | (636) | (144) | |
Property, plant and equipment | (40,178) | (37,294) | |
Land | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | 819 | ||
Property, plant and equipment | 869 | 819 | |
Property, plant and equipment | 869 | 819 | |
Land | Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | 851 | 885 | |
increase (decrease) through adoption of IFRS 16, property plant and equipment | 26 | ||
Property, plant and equipment | 899 | 851 | 877 |
Additions | 33 | 7 | |
Divestitures | (40) | (11) | |
Changes In Scope Of Consolidation | 0 | ||
Translation differences | 8 | (10) | |
Transfer to Assets held for sale | 15 | 21 | |
Other changes | 36 | 1 | |
Property, plant and equipment | 899 | 851 | |
Land | Accumulated amortization and impairment losses | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | (32) | (37) | |
increase (decrease) through adoption of IFRS 16, property plant and equipment | 0 | ||
Property, plant and equipment | (30) | (32) | (32) |
Divestitures | 2 | 5 | |
Changes In Scope Of Consolidation | 0 | ||
Translation differences | 0 | 0 | |
Transfer to Assets held for sale | (3) | 0 | |
Other changes | 0 | 0 | |
Depreciation | 3 | 0 | |
Impairment losses and asset write-offs | 0 | 0 | |
Property, plant and equipment | (30) | (32) | |
Industrial buildings | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | 4,974 | ||
Property, plant and equipment | 5,750 | 4,974 | |
Property, plant and equipment | 5,750 | 4,974 | |
Industrial buildings | Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | 8,339 | 8,494 | |
increase (decrease) through adoption of IFRS 16, property plant and equipment | 888 | ||
Property, plant and equipment | 9,427 | 8,339 | 9,227 |
Additions | 274 | 183 | |
Divestitures | (46) | (16) | |
Changes In Scope Of Consolidation | 0 | ||
Translation differences | 96 | (34) | |
Transfer to Assets held for sale | 149 | 401 | |
Other changes | 25 | 113 | |
Property, plant and equipment | 9,427 | 8,339 | |
Industrial buildings | Accumulated amortization and impairment losses | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | (3,365) | (3,298) | |
increase (decrease) through adoption of IFRS 16, property plant and equipment | 0 | ||
Property, plant and equipment | (3,677) | (3,365) | (3,365) |
Divestitures | 32 | 0 | |
Changes In Scope Of Consolidation | 0 | ||
Translation differences | (29) | 1 | |
Transfer to Assets held for sale | (107) | (204) | |
Other changes | (9) | 11 | |
Depreciation | 411 | 283 | |
Impairment losses and asset write-offs | (2) | 0 | |
Property, plant and equipment | (3,677) | (3,365) | |
Plant, machinery and equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | 17,985 | ||
Property, plant and equipment | 17,092 | 17,985 | |
Property, plant and equipment | 17,092 | 17,985 | |
Plant, machinery and equipment | Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | 50,017 | 51,053 | |
increase (decrease) through adoption of IFRS 16, property plant and equipment | 77 | ||
Property, plant and equipment | 51,471 | 50,017 | 50,094 |
Additions | 1,587 | 1,976 | |
Divestitures | (1,135) | (872) | |
Changes In Scope Of Consolidation | 63 | ||
Translation differences | 507 | 123 | |
Transfer to Assets held for sale | 502 | 3,870 | |
Other changes | 857 | 1,607 | |
Property, plant and equipment | 51,471 | 50,017 | |
Plant, machinery and equipment | Accumulated amortization and impairment losses | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | (32,032) | (32,082) | |
increase (decrease) through adoption of IFRS 16, property plant and equipment | 0 | ||
Property, plant and equipment | (34,379) | (32,032) | (32,032) |
Divestitures | 1,098 | 851 | |
Changes In Scope Of Consolidation | 11 | ||
Translation differences | (305) | (89) | |
Transfer to Assets held for sale | (384) | (2,663) | |
Other changes | (19) | 68 | |
Depreciation | 2,876 | 3,303 | |
Impairment losses and asset write-offs | (618) | (140) | |
Property, plant and equipment | (34,379) | (32,032) | |
Other assets | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | 1,011 | ||
Property, plant and equipment | 983 | 1,011 | |
Property, plant and equipment | 983 | 1,011 | |
Other assets | Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | 2,866 | 3,003 | |
increase (decrease) through adoption of IFRS 16, property plant and equipment | 78 | ||
Property, plant and equipment | 3,066 | 2,866 | 2,944 |
Additions | 222 | 84 | |
Divestitures | (124) | (40) | |
Changes In Scope Of Consolidation | 0 | ||
Translation differences | 45 | 57 | |
Transfer to Assets held for sale | 17 | 294 | |
Other changes | (4) | 56 | |
Property, plant and equipment | 3,066 | 2,866 | |
Other assets | Accumulated amortization and impairment losses | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | (1,855) | (1,800) | |
increase (decrease) through adoption of IFRS 16, property plant and equipment | 0 | ||
Property, plant and equipment | (2,083) | (1,855) | (1,855) |
Divestitures | 115 | 34 | |
Changes In Scope Of Consolidation | 0 | ||
Translation differences | (25) | (30) | |
Transfer to Assets held for sale | (17) | (223) | |
Other changes | 4 | (20) | |
Depreciation | 323 | 262 | |
Impairment losses and asset write-offs | (16) | 0 | |
Property, plant and equipment | (2,083) | (1,855) | |
Advances and tangible assets in progress | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | 1,518 | ||
Property, plant and equipment | 3,914 | 1,518 | |
Property, plant and equipment | 3,914 | 1,518 | |
Advances and tangible assets in progress | Gross carrying amount | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | 1,528 | 2,812 | |
increase (decrease) through adoption of IFRS 16, property plant and equipment | 0 | ||
Property, plant and equipment | 3,923 | 1,528 | 1,528 |
Additions | 3,287 | 811 | |
Divestitures | (3) | (5) | |
Changes In Scope Of Consolidation | 1 | ||
Translation differences | 19 | 47 | |
Transfer to Assets held for sale | 23 | 299 | |
Other changes | (886) | (1,838) | |
Property, plant and equipment | 3,923 | 1,528 | |
Advances and tangible assets in progress | Accumulated amortization and impairment losses | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment | (10) | (16) | |
increase (decrease) through adoption of IFRS 16, property plant and equipment | 0 | ||
Property, plant and equipment | (9) | (10) | € (10) |
Divestitures | 0 | 0 | |
Changes In Scope Of Consolidation | 0 | ||
Translation differences | 0 | 0 | |
Transfer to Assets held for sale | (1) | (2) | |
Other changes | 0 | 8 | |
Depreciation | 0 | 0 | |
Impairment losses and asset write-offs | 0 | (4) | |
Property, plant and equipment | € (9) | € (10) |
Property, plant and equipment_2
Property, plant and equipment - property, plant & equipment, owned and leased (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Property, plant and equipment | € 28,608 | € 26,307 |
Right-of-use assets | 1,621 | € 1,395 |
Property, plant and equipment not subject to operating leases [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Property, plant and equipment | 26,987 | |
Right-of-use assets [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Property, plant and equipment | € 1,621 |
Property, plant and equipment_3
Property, plant and equipment - right of use assets (Details) € in Millions | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | € 1,395 |
Right-of-use assets | 1,621 |
Depreciation, right-of-use assets | 346 |
Additions to right-of-use assets | 577 |
Change in scope of consolidation, right-of-use assets | 44 |
Translation differences, right-of-use assets | 28 |
Other changes, right-of-use assets | (77) |
Right-of-use assets | 1,621 |
Land | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 26 |
Right-of-use assets | 7 |
Depreciation, right-of-use assets | 3 |
Additions to right-of-use assets | 11 |
Change in scope of consolidation, right-of-use assets | 0 |
Translation differences, right-of-use assets | 1 |
Other changes, right-of-use assets | (28) |
Right-of-use assets | 7 |
Industrial buildings | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 1,085 |
Right-of-use assets | 1,120 |
Depreciation, right-of-use assets | 150 |
Additions to right-of-use assets | 167 |
Change in scope of consolidation, right-of-use assets | 18 |
Translation differences, right-of-use assets | 24 |
Other changes, right-of-use assets | (24) |
Right-of-use assets | 1,120 |
Plant, machinery and equipment | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 206 |
Right-of-use assets | 349 |
Depreciation, right-of-use assets | 100 |
Additions to right-of-use assets | 236 |
Change in scope of consolidation, right-of-use assets | 26 |
Translation differences, right-of-use assets | 2 |
Other changes, right-of-use assets | (21) |
Right-of-use assets | 349 |
Other assets | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 78 |
Right-of-use assets | 145 |
Depreciation, right-of-use assets | 93 |
Additions to right-of-use assets | 163 |
Change in scope of consolidation, right-of-use assets | 0 |
Translation differences, right-of-use assets | 1 |
Other changes, right-of-use assets | (4) |
Right-of-use assets | 145 |
Previously stated | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 326 |
Right-of-use assets | 326 |
Previously stated | Land | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 0 |
Right-of-use assets | 0 |
Previously stated | Industrial buildings | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 197 |
Right-of-use assets | 197 |
Previously stated | Plant, machinery and equipment | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 129 |
Right-of-use assets | 129 |
Previously stated | Other assets | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 0 |
Right-of-use assets | 0 |
Increase (decrease) due to changes in accounting policy | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 1,069 |
Right-of-use assets | 1,069 |
Increase (decrease) due to changes in accounting policy | Land | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 26 |
Right-of-use assets | 26 |
Increase (decrease) due to changes in accounting policy | Industrial buildings | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 888 |
Right-of-use assets | 888 |
Increase (decrease) due to changes in accounting policy | Plant, machinery and equipment | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 77 |
Right-of-use assets | 77 |
Increase (decrease) due to changes in accounting policy | Other assets | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Right-of-use assets | 78 |
Right-of-use assets | € 78 |
Property, plant and equipment_4
Property, plant and equipment - pledged as security for debt (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, pledged as security | € 1,637 | € 2,214 |
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 | 777 | 892 |
Plant, machinery and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, pledged as security | 855 | 1,241 |
Other assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment, pledged as security | € 5 | € 81 |
Property, plant and equipment_5
Property, plant and equipment - narrative (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Contractual commitments for acquisition of property, plant and equipment | € 1,255 | € 539 |
Translation differences | 316 | 65 |
Accumulated amortization and impairment losses | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses and asset write-offs | (636) | (144) |
Translation differences | (359) | € (118) |
Rationalization of product portfolio plans | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment losses and asset write-offs | € 563 |
Investments accounted for usi_3
Investments accounted for using the equity method - summary of investments (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Investments in joint ventures accounted for using equity method | € 1,871 | € 1,866 |
Investments in associates accounted for using equity method | 94 | 96 |
Investments in other entities accounted for using equity method | 44 | 40 |
Investments accounted for using the equity method | 2,009 | 2,002 |
FCA Bank S.p.A. | ||
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Investments in joint ventures accounted for using equity method | € 1,501 | € 1,360 |
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 | € 240 | € 233 |
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 | € 107 | € 216 |
Ownership percentage | 50.00% | 50.00% |
Others | ||
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Investments in joint ventures accounted for using equity method | € 23 | € 57 |
Investments accounted for usi_4
Investments accounted for using the equity method - financial information of FCA Bank (Details) - EUR (€) € in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Joint Ventures And Associates [Line Items] | |||||
Cash and cash equivalents | € 15,014 | € 12,450 | |||
Equity | 28,675 | 24,903 | € 21,008 | € 19,353 | |
Net assets attributable to owners of the parent | 28,537 | 24,702 | |||
Carrying amount of interest in FCA Bank(1) | 1,871 | 1,866 | |||
Interest and similar expenses | (784) | (929) | (1,084) | ||
Income tax expense | (1,321) | (778) | (2,588) | ||
Profit from continuing operations | 2,700 | 3,330 | 3,291 | ||
Profit (loss) | 6,630 | 3,632 | 3,510 | ||
Owners of the parent | 6,676 | 3,763 | 1,491 | ||
Group’s share of net profit | 200 | 221 | 381 | ||
FCA Bank S.p.A. | |||||
Disclosure Of Joint Ventures And Associates [Line Items] | |||||
Financial assets | € 26,995 | 26,180 | |||
Cash and cash equivalents | 767 | 363 | |||
Other assets | 4,889 | 4,356 | |||
Financial liabilities | 27,133 | 26,265 | |||
Other liabilities | 1,643 | 1,393 | |||
Equity | 3,108 | 2,878 | |||
Net assets attributable to owners of the parent | 3,058 | 2,829 | |||
Group's share of net assets | 1,529 | 1,415 | |||
Elimination of unrealized profits and other adjustments | (28) | (55) | |||
Carrying amount of interest in FCA Bank(1) | 1,501 | 1,360 | |||
Interest and similar income | 466 | 903 | 855 | ||
Interest and similar expenses | (117) | (242) | (266) | ||
Income tax expense | (75) | (159) | (139) | ||
Profit from continuing operations | 238 | 388 | 383 | ||
Profit (loss) | 238 | 388 | 383 | ||
Net profit attributable to owners of the parent | 236 | 383 | 378 | ||
Other comprehensive income/(loss) attributable to owners of the parent | (8) | (5) | (8) | ||
Owners of the parent | € 228 | 378 | 370 | ||
Group’s share of net profit | € 229 | € 192 | € 189 |
Investments accounted for usi_5
Investments accounted for using the equity method - narrative (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
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 | € 764 | € 531 |
Investments accounted for usi_6
Investments accounted for using the equity method - share of earnings of investments (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interests In Other Entities [Abstract] | |||
Joint Ventures | € 200 | € 221 | € 381 |
Associates | (2) | 6 | 9 |
Other | 10 | 13 | 10 |
Net profit (loss) | € 208 | € 240 | € 400 |
Investments accounted for usi_7
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Net profit (loss) | € 208 | € 240 | € 400 |
Other comprehensive loss | (20) | (103) | (119) |
Aggregated individually immaterial associates | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
(Loss)/income from continuing operations | (2) | 6 | 9 |
Net profit (loss) | (2) | 6 | 9 |
Other comprehensive loss | 0 | (3) | (3) |
Total Other comprehensive (loss)/income | (2) | 3 | 6 |
Aggregated individually immaterial joint ventures | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
(Loss)/income from continuing operations | (28) | 27 | 192 |
Net profit (loss) | (28) | 27 | 192 |
Other comprehensive loss | (19) | (91) | (105) |
Total Other comprehensive (loss)/income | € (47) | € (64) | € 87 |
Other financial assets - financ
Other financial assets - financial assets (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [abstract] | ||
Current derivative financial assets | € 93 | € 283 |
Non-current derivative financial assets | 5 | 14 |
Derivative financial assets | 98 | 297 |
Current debt securities measured at fair value through profit or loss | 233 | 230 |
Non-current debt securities measured at fair value through profit or loss | 0 | 0 |
Debt securities measured at fair value through profit or loss | 233 | 230 |
Current equity instruments measured at fair value through other comprehensive income | 0 | 0 |
Non-current equity instruments measured at fair value through other comprehensive income | 37 | 31 |
Equity instruments measured at fair value through other comprehensive income | 37 | 31 |
Current equity instruments measured at fair value through profit or loss | 47 | 41 |
Non-current equity instruments measured at fair value through profit or loss | 12 | 2 |
Equity instruments measured at fair value through profit or loss | 59 | 43 |
Current financial receivables | 0 | 0 |
Non-current financial receivables | 242 | 252 |
Financial receivables | 242 | 252 |
Current collateral deposits | 0 | 0 |
Non-current collateral deposits | 42 | 61 |
Collateral deposits | 42 | 61 |
Current debt securities measured at amortized cost | 297 | 61 |
Non-current debt securities measured at amortized cost | 2 | 2 |
Debt securities measured at amortized cost | 299 | 63 |
Total current other financial assets | 670 | 615 |
Total non-current other financial assets | 340 | 362 |
Other financial assets | € 1,010 | € 977 |
Inventories - summary of invent
Inventories - summary of inventories (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Finished goods and goods for resale | € 5,600 | € 6,776 |
Work-in-progress, raw materials and manufacturing supplies | 3,928 | 3,783 |
Amount due from customers for contract work | 194 | 135 |
Total Inventories | € 9,722 | € 10,694 |
Inventories - narrative (Detail
Inventories - narrative (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory Write-Down [Line Items] | |||
Inventory write-down | € 647 | € 669 | € 626 |
China Inventory impairment | 129 | ||
APAC | |||
Inventory Write-Down [Line Items] | |||
China Inventory impairment | € 129 |
Inventories - details of amount
Inventories - details of amounts due from customers for contract work (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Aggregate amount of costs incurred and recognized profits (less recognized losses) to date | € 826 | € 954 |
Less: Progress billings | 715 | 912 |
Construction contracts, net asset/(liability) | 111 | 42 |
Construction contract assets | 194 | 135 |
Construction contract liabilities | € 83 | € 93 |
Inventories - changes in Group'
Inventories - changes in Group's construction contracts net asset/(liability) (Details) € in Millions | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Disclosure of changes in Summarized Recognized Revenue from Construction Contracts [Line Items] | |
Receivables from contracts with customers at beginning of period | € 42 |
Receivables from contracts with customers at end of period | 111 |
construction contract net asset (liability) [Domain] | |
Disclosure of changes in Summarized Recognized Revenue from Construction Contracts [Line Items] | |
Receivables from contracts with customers at beginning of period | 42 |
Advances received from customers | (603) |
Revenue from construction contracts | 672 |
Receivables from contracts with customers at end of period | € 111 |
Inventories - expected timing o
Inventories - expected timing of recognition of construction contract net asset/(liability) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of change in construction contracts net asset (liability) [Abstract] | |
Expected recognition of construction contract net asset/(liability) | 12 months |
Trade, other receivables and _3
Trade, other receivables and tax receivables - analysis by due date (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Current trade receivables | € 2,064 | € 2,048 |
Non-current trade receivables | 0 | 0 |
Trade receivables | 2,064 | 2,048 |
Current receivables from financing activities | 2,855 | 3,304 |
Non-current receivables from financing activities | 300 | 310 |
Receivables from financing activities | 3,155 | 3,614 |
Current other receivables | 1,709 | 1,836 |
Non-current other receivables | 2,076 | 1,174 |
Other receivables | 3,785 | 3,010 |
Current trade and other receivables | 6,628 | 7,188 |
Non-current trade and other receivables | 2,376 | 1,484 |
Total Trade and other receivables | 9,004 | 8,672 |
Tax receivables | 372 | 419 |
Non-current tax receivables | 94 | 71 |
Tax receivables | 466 | 490 |
Due between one and five years | ||
Disclosure of financial assets [line items] | ||
Non-current trade receivables | 0 | 0 |
Non-current receivables from financing activities | 294 | 297 |
Non-current other receivables | 695 | 1,086 |
Non-current trade and other receivables | 989 | 1,383 |
Non-current tax receivables | 51 | 53 |
Due beyond five years | ||
Disclosure of financial assets [line items] | ||
Non-current trade receivables | 0 | 0 |
Non-current receivables from financing activities | 6 | 13 |
Non-current other receivables | 1,381 | 88 |
Non-current trade and other receivables | 1,387 | 101 |
Non-current tax receivables | € 43 | € 18 |
Trade, other receivables and _4
Trade, other receivables and tax receivables - allowance for trade receivables (Details) - Trade receivables € in Millions | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |
Allowance, beginning balance | € 247 |
Provision | 32 |
Use and other changes | (42) |
Decrease through classified as held for sale, trade receivables | 0 |
Allowance, ending balance | € 237 |
Trade, other receivables and _5
Trade, other receivables and tax receivables - receivables measured at fair value through profit or loss (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Trade receivables | ||
Disclosure of financial assets [line items] | ||
Current financial assets at fair value through profit or loss | € 19 | € 65 |
Financing receivables | ||
Disclosure of financial assets [line items] | ||
Current financial assets at fair value through profit or loss | € 580 | € 973 |
Trade, other receivables and _6
Trade, other receivables and tax receivables - exposure to credit risk and ECLs for trade receivables (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of credit risk exposure [line items] | ||
Trade receivables and other receivables | € 2,064 | € 2,048 |
Trade receivables | ||
Disclosure of credit risk exposure [line items] | ||
Trade receivables, gross | 2,282 | 2,230 |
Allowance account for credit losses of financial assets | (237) | (247) |
Trade receivables and other receivables | 2,045 | 1,983 |
Current and less than 90 days past due [Member] | Trade receivables | ||
Disclosure of credit risk exposure [line items] | ||
Trade receivables, gross | 1,989 | 1,920 |
Allowance account for credit losses of financial assets | (53) | (65) |
Trade receivables and other receivables | 1,936 | 1,855 |
90 days or more past due [Member] | Trade receivables | ||
Disclosure of credit risk exposure [line items] | ||
Trade receivables, gross | 293 | 310 |
Allowance account for credit losses of financial assets | (184) | (182) |
Trade receivables and other receivables | € 109 | € 128 |
Trade, other receivables and _7
Trade, other receivables and tax receivables - receivables from financing activities (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other receivables [abstract] | ||
Dealer financing | € 2,317 | € 2,654 |
Retail financing | 613 | 601 |
Finance leases | 3 | 3 |
Other | 222 | 356 |
Receivables from financing activities | € 3,155 | € 3,614 |
Trade, other receivables and _8
Trade, other receivables and tax receivables - allowance for financing receivables (Details) - Financing receivables € in Millions | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |
Allowance, beginning balance | € 27 |
Provision | 68 |
Use and other changes | (72) |
Allowance, ending balance | € 23 |
Trade, other receivables and _9
Trade, other receivables and tax receivables - exposure to credit risk and ECLs for receivables from financing (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of credit risk exposure [line items] | ||
Receivables from financing activities | € 3,155 | € 3,614 |
Receivables From Financing Activities | ||
Disclosure of credit risk exposure [line items] | ||
Receivables from financing, gross | 2,598 | 2,668 |
Allowance account for credit losses of financial assets | (23) | (27) |
Receivables from financing activities | 2,575 | 2,641 |
Receivables From Financing Activities | Stage 1 | ||
Disclosure of credit risk exposure [line items] | ||
Receivables from financing, gross | 2,369 | 2,465 |
Allowance account for credit losses of financial assets | (10) | (13) |
Receivables from financing activities | 2,359 | 2,452 |
Receivables From Financing Activities | Stage 2 | ||
Disclosure of credit risk exposure [line items] | ||
Receivables from financing, gross | 194 | 168 |
Allowance account for credit losses of financial assets | (2) | (2) |
Receivables from financing activities | 192 | 166 |
Receivables From Financing Activities | Stage 3 | ||
Disclosure of credit risk exposure [line items] | ||
Receivables from financing, gross | 35 | 35 |
Allowance account for credit losses of financial assets | (11) | (12) |
Receivables from financing activities | € 24 | € 23 |
Trade, other receivables and_10
Trade, other receivables and tax receivables - narrative (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of continuing involvement in derecognised financial assets [line items] | |||
Value added and other indirect tax receivables | € 2,866 | € 2,149 | |
Brazil indirect tax - reversal of liability/recognition of credits | 164 | 72 | € 895 |
Fair Value of Assets Representing Derecognised Financial Assets | 7,301 | 8,523 | |
FCA Bank S.p.A. | |||
Disclosure of continuing involvement in derecognised financial assets [line items] | |||
Fair Value of Assets Representing Derecognised Financial Assets | 4,686 | 5,517 | |
Financing receivables | |||
Disclosure of continuing involvement in derecognised financial assets [line items] | |||
Current financial assets at fair value through profit or loss | 580 | 973 | |
Trade receivables | |||
Disclosure of continuing involvement in derecognised financial assets [line items] | |||
Current financial assets at fair value through profit or loss | € 19 | € 65 |
Trade, other receivables and_11
Trade, other receivables and tax receivables - carrying amount of assets not derecognised (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | ||
Fair Value of Assets Representing Derecognised Financial Assets | € 7,301 | € 8,523 |
Carrying amount of assets transferred and not derecognized | 151 | 457 |
Carrying amount of the related liabilities | 151 | 457 |
Trade receivables | ||
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | ||
Carrying amount of assets transferred and not derecognized | 11 | 30 |
Carrying amount of the related liabilities | 11 | 30 |
Financing receivables | ||
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | ||
Carrying amount of assets transferred and not derecognized | 140 | 427 |
Carrying amount of the related liabilities | 140 | 427 |
Financing receivables | ||
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | ||
Fair Value of Assets Representing Derecognised Financial Assets | 1,524 | 1,676 |
FCA Bank S.p.A. | ||
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | ||
Fair Value of Assets Representing Derecognised Financial Assets | € 4,686 | € 5,517 |
Derivative financial assets a_3
Derivative financial assets and liabilities - fair value of derivative assets and liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about hedging instruments [line items] | ||
Derivative financial assets | € 98 | € 297 |
Financial derivative assets - current | 93 | 283 |
Financial derivative assets - non-current | 5 | 14 |
Derivative financial liabilities | (318) | (207) |
Financial derivative liabilities - current | (194) | (204) |
Financial derivative liabilities - non-current | (124) | (3) |
Fair value hedges | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 0 | 0 |
Hedging derivative, liabilities | 0 | 0 |
Fair value hedges | Interest rate risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 0 | 0 |
Hedging derivative, liabilities | 0 | 0 |
Cash flow hedges | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 55 | 229 |
Hedging derivative, liabilities | (267) | (150) |
Cash flow hedges | Currency risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 34 | 149 |
Hedging derivative, liabilities | (81) | (75) |
Cash flow hedges | Interest rate risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 0 | 22 |
Hedging derivative, liabilities | (180) | (16) |
Cash flow hedges | Interest rate and currency risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 0 | 17 |
Hedging derivative, liabilities | 0 | 0 |
Cash flow hedges | Commodity price risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 21 | 41 |
Hedging derivative, liabilities | (6) | (59) |
Hedges of net investment in foreign operations | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 0 | 0 |
Hedging derivative, liabilities | 0 | 0 |
Hedges of net investment in foreign operations | Currency risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedging derivative assets | 0 | 0 |
Hedging derivative, liabilities | 0 | 0 |
Derivatives for trading | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Derivatives assets for trading | 43 | 68 |
Derivatives liabilities for trading | € (51) | € (57) |
Derivative financial assets a_4
Derivative financial assets and liabilities - summary of notional amounts of derivative financial instruments (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | € 14,689 | € 16,862 |
Currency risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 11,289 | 12,857 |
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 | 2,805 | 2,774 |
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 | 31 | 270 |
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 | 550 | 947 |
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 |
2020 | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 12,896 | 15,567 |
2020 | Currency risk | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative, notional amount | 11,259 | 12,782 |
2020 | 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 | 1,105 | 1,630 |
2020 | 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 | 9 | 236 |
2020 | 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 | 523 | 919 |
2020 | 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 | 1,793 | 1,295 |
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 | 30 | 75 |
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 | 1,700 | 1,144 |
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 | 22 | 34 |
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 | 27 | 28 |
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 | 0 | 0 |
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 | 0 | 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 | 0 | 0 |
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 a_5
Derivative financial assets and liabilities - fair value hedges (Details) - Fair value hedges - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about hedges [line items] | |||
Net gains/(losses) | € 0 | € 0 | € 1 |
Currency risk | |||
Disclosure of detailed information about hedges [line items] | |||
Net gains/(losses) on qualifying hedges | 0 | 0 | 104 |
Fair value changes in hedged items | 0 | 0 | (104) |
Interest rate risk | |||
Disclosure of detailed information about hedges [line items] | |||
Net gains/(losses) on qualifying hedges | 0 | (2) | (9) |
Fair value changes in hedged items | € 0 | € 2 | € 10 |
Derivative financial assets a_6
Derivative financial assets and liabilities - cash flow hedges (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Gains (losses) on cash flow hedges | € (167) | € 31 | € 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 | (33) | (5) | 4 |
Tax (benefit)/expense | (3) | (36) | 27 |
Items relating to discontinued operations, net of tax | 2 | 9 | 1 |
Total recognized in the Consolidated Income Statement | (80) | 107 | (26) |
Gain (loss) on hedge ineffectiveness recognised in profit or loss | (17) | 5 | 0 |
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 | (27) | 100 | 8 |
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 | (29) | (17) | (96) |
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 | 4 | 2 | (22) |
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 | 1 | 24 | 28 |
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 | 0 | 0 | (3) |
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 | (2) | 1 | (1) |
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 | € 7 | € 29 | € 28 |
Derivative financial assets a_7
Derivative financial assets and liabilities - net investment hedges (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Gains (losses) on hedges of net investments in foreign operations, net of tax | € 50,000,000 | € 17,000,000 | € 15,000,000 |
Outstanding net investment hedges | 0 | ||
Hedges of net investment in foreign operations | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Ineffectiveness of net investment hedges | € 0 | € 0 | € 0 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents [abstract] | ||
Cash at banks | € 5,166 | € 4,774 |
Money market securities | 2,293 | 4,352 |
Other cash and cash equivalents | 7,555 | 3,324 |
Total Cash and cash equivalents | € 15,014 | € 12,450 |
Share-based compensation - addi
Share-based compensation - additional information (Details) € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Jan. 31, 2017 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2019EUR (€)shares | Dec. 31, 2018EUR (€)shares | Dec. 31, 2017EUR (€)shares | Dec. 31, 2016shares | Dec. 31, 2015shares | Dec. 01, 2019 | Jan. 31, 2018 | Jan. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Description of vesting requirements for share-based payment arrangement | 0.3333333333 | 0.3333333333 | 0.3333333333 | |||||||||||||||
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% | |||||||||||||||||
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) | 9,500,000 | |||||||||||||||||
Cumulative vesting percent | 100.00% | |||||||||||||||||
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) | 0 | 71,136 | 1,136,250 | |||||||||||||||
Requisite service period | 3 years | |||||||||||||||||
Performance share units, adjusted ebit | ||||||||||||||||||
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) | 5,182,071 | |||||||||||||||||
Percent of units subject to certain criteria | 50.00% | |||||||||||||||||
Requisite service period | 3 years | |||||||||||||||||
Performance share units, adjusted ebit | Bottom of range | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Payout scale percent | 0.00% | |||||||||||||||||
Performance share units, adjusted ebit | Top of range | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Payout scale percent | 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) | 5,189,237 | 2,473,637 | 1,136,250 | |||||||||||||||
Requisite service period | 3 years | |||||||||||||||||
Measurement term of expected volatility | 3 years | |||||||||||||||||
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 | 225.00% | 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) | 7,160,764 | 627,081 | 2,293,940 | |||||||||||||||
Restricted share units | Key employees LTIP | ||||||||||||||||||
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) | 5,900,000 | |||||||||||||||||
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) | 800,000 | |||||||||||||||||
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 | 1.107723 | 1.003733 | 1.5440 | ||||||||||||||
Expense from share-based payment transactions with employees | € | € 92 | € 54 | € 85 | |||||||||||||||
Unrecognized expense from share-based payment transactions with employees | € | € 112 | |||||||||||||||||
Unrecognized expense from share-based payment transactions with employees, period of recognition | 1 year 7 months | |||||||||||||||||
2019-2021 LTIP - Cliff Vest | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Description of vesting requirements for share-based payment arrangement | 1 | |||||||||||||||||
2019-2021 LTIP - Cliff Vest | 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) | 900,000 | |||||||||||||||||
2019-2021 LTIP - Cliff Vest | 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) | 400,000 | |||||||||||||||||
2017-2021 LTIP | Performance share units | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Description of vesting requirements for share-based payment arrangement | 0.3333333333 | 0.3333333333 | ||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement (in shares) | 2,400,000 | |||||||||||||||||
Cumulative vesting percent | 100.00% | |||||||||||||||||
2017-2021 LTIP | Performance share units, total shareholder return | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Requisite service period | 5 years | |||||||||||||||||
2017-2021 LTIP | Restricted share units | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Description of vesting requirements for share-based payment arrangement | 0.3333333333 | 0.3333333333 | 0.3333333333 | |||||||||||||||
Number of other equity instruments granted in share-based payment arrangement (in shares) | 580,000 | |||||||||||||||||
2016-2018 LTIP | Performance share units | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Description of vesting requirements for share-based payment arrangement | 0.5 | 0.5 | ||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement (in shares) | 2,260,000 | |||||||||||||||||
2016-2018 LTIP | Performance share units, net income | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Percent of units subject to certain criteria | 50.00% | |||||||||||||||||
2016-2018 LTIP | 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% | |||||||||||||||||
2016-2018 LTIP | 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% | |||||||||||||||||
2016-2018 LTIP | Performance share units, total shareholder return | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Requisite service period | 2 years | |||||||||||||||||
2016-2018 LTIP | Restricted share units | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Description of vesting requirements for share-based payment arrangement | 1 | |||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement (in shares) | 2,290,000 | |||||||||||||||||
2014-2018 LTIP | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Description of vesting requirements for share-based payment arrangement | 0.3333333333 | 0.3333333333 | 0.3333333333 | |||||||||||||||
2014-2018 LTIP | Key employees | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Description of vesting requirements for share-based payment arrangement | 1 | |||||||||||||||||
2014-2018 LTIP | 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) | 100,000 | 14,710,000 | ||||||||||||||||
Cumulative vesting percent | 100.00% | |||||||||||||||||
2014-2018 LTIP | Performance share units, net income | ||||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||||
Percent of units subject to certain criteria | 50.00% | |||||||||||||||||
Performance measurement period | 5 years | |||||||||||||||||
2014-2018 LTIP | 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% | |||||||||||||||||
2014-2018 LTIP | 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% | |||||||||||||||||
2014-2018 LTIP | 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% | |||||||||||||||||
2014-2018 LTIP | 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% | |||||||||||||||||
2014-2018 LTIP | 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) | 50,000 | 90,000 | 5,200,000 |
Share-based compensation - chan
Share-based compensation - change in PSUs and RSUs (Details) | 12 Months Ended | ||
Dec. 31, 2019EUR (€)shares | Dec. 31, 2018EUR (€)shares | Dec. 31, 2017EUR (€)shares | |
Performance share units, adjusted ebit | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding shares unvested (in shares) | shares | 0 | ||
Outstanding shares unvested (in euros per share) | € | € 0 | ||
Anti-dilution adjustment (in shares) | shares | 524,308 | ||
Anti-dilution adjustment (in euros per share) | € | € 10.18 | ||
Granted (in shares) | shares | 5,182,071 | ||
Granted (in euros per share) | € | € 11.26 | ||
Vested (in shares) | shares | 0 | ||
Vested (in euros per share) | € | € 0 | ||
Canceled (in shares) | shares | 0 | ||
Canceled (in euros per share) | € | € 0 | ||
Forfeited (in shares) | shares | 145,740 | ||
Forfeited (in euros per share) | € | € (11.28) | ||
Outstanding shares unvested (in shares) | shares | 5,560,639 | 0 | |
Outstanding shares unvested (in euros per share) | € | € 10.19 | € 0 | |
Performance share units, net income | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding shares unvested (in shares) | shares | 4,568,830 | 8,803,826 | 11,379,445 |
Outstanding shares unvested (in euros per share) | € | € 6.14 | € 5.89 | € 5.65 |
Anti-dilution adjustment (in shares) | shares | 25,516 | 32,855 | 65,751 |
Anti-dilution adjustment (in euros per share) | € | € 4.91 | € 5.87 | € 5.62 |
Granted (in shares) | shares | 0 | 71,136 | 1,136,250 |
Granted (in euros per share) | € | € 0 | € 9.73 | € 7.91 |
Vested (in shares) | shares | 4,295,593 | 3,857,502 | 3,758,870 |
Vested (in euros per share) | € | € (6.24) | € (5.58) | € (5.65) |
Canceled (in shares) | shares | 0 | 0 | 0 |
Canceled (in euros per share) | € | € 0 | € 0 | € 0 |
Forfeited (in shares) | shares | 36,369 | 481,485 | 18,750 |
Forfeited (in euros per share) | € | € (6.62) | € (6.27) | € (7.91) |
Outstanding shares unvested (in shares) | shares | 262,384 | 4,568,830 | 8,803,826 |
Outstanding shares unvested (in euros per share) | € | € 4.91 | € 6.14 | € 5.89 |
Performance share units, total shareholder return | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding shares unvested (in shares) | shares | 6,926,413 | 8,803,827 | 11,379,446 |
Outstanding shares unvested (in euros per share) | € | € 11.42 | € 10.58 | € 10.64 |
Anti-dilution adjustment (in shares) | shares | 644,588 | 32,855 | 65,750 |
Anti-dilution adjustment (in euros per share) | € | € 10.60 | € 10.54 | € 10.58 |
Granted (in shares) | shares | 5,189,237 | 2,473,637 | 1,136,250 |
Granted (in euros per share) | € | € 11.58 | € 13.15 | € 10.84 |
Vested (in shares) | shares | 4,295,594 | 3,857,502 | 3,758,869 |
Vested (in euros per share) | € | € (10.67) | € (10.51) | € (10.63) |
Canceled (in shares) | shares | 1,385,046 | 0 | 0 |
Canceled (in euros per share) | € | € (12.99) | € 0 | € 0 |
Forfeited (in shares) | shares | 282,107 | 526,404 | 18,750 |
Forfeited (in euros per share) | € | € (11.94) | € (11.50) | € (10.84) |
Outstanding shares unvested (in shares) | shares | 6,797,491 | 6,926,413 | 8,803,827 |
Outstanding shares unvested (in euros per share) | € | € 10.61 | € 11.42 | € 10.58 |
Restricted share units | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding shares unvested (in shares) | shares | 4,290,986 | 7,600,313 | 7,969,623 |
Outstanding shares unvested (in euros per share) | € | € 10.47 | € 9.17 | € 8.69 |
Anti-dilution adjustment (in shares) | shares | 761,529 | 28,299 | 46,189 |
Anti-dilution adjustment (in euros per share) | € | € 10.49 | € 9.12 | € 8.64 |
Granted (in shares) | shares | 7,160,764 | 627,081 | 2,293,940 |
Granted (in euros per share) | € | € 11.35 | € 18.54 | € 10.43 |
Vested (in shares) | shares | 3,347,345 | 3,690,050 | 2,671,939 |
Vested (in euros per share) | € | € (9.93) | € (9.09) | € (8.64) |
Canceled (in shares) | shares | 0 | 0 | 0 |
Canceled (in euros per share) | € | € 0 | € 0 | € 0 |
Forfeited (in shares) | shares | 712,895 | 274,657 | 37,500 |
Forfeited (in euros per share) | € | € (10.05) | € (10.28) | € (10.39) |
Outstanding shares unvested (in shares) | shares | 8,153,039 | 4,290,986 | 7,600,313 |
Outstanding shares unvested (in euros per share) | € | € 10.51 | € 10.47 | € 9.17 |
Share-based compensation - anti
Share-based compensation - anti-dilutive securities (Details) - € / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | 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) | 12,620,514 | 17,673,363 | 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) | € 8.79 | € 5.71 | € 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) | € 16.96 | € 10.35 | € 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) | 8,153,039 | 7,628,612 | 8,015,812 | 8,023,472 |
Share-based compensation - key
Share-based compensation - key assumptions (Details) - € / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | |
Performance share units, total shareholder return | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Grant date stock price, non-options granted (in euros per share) | € 13.10 | |||
Expected volatility, non-options granted | 39.00% | |||
Dividend yield, non-options granted | 5.00% | |||
Risk free interest rate, non-options granted | (0.70%) | |||
2017-2021 LTIP | Performance share units, total shareholder return | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Grant date stock price, non-options granted (in euros per share) | € 18.79 | |||
Expected volatility, non-options granted | 41.00% | |||
Dividend yield, non-options granted | 0.00% | |||
Risk free interest rate, non-options granted | (0.30%) | |||
2016-2018 LTIP | Performance share units, net income | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Expected volatility, non-options granted | 40.00% | |||
Risk free interest rate, non-options granted | (0.80%) | |||
2016-2018 LTIP | 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 | |||
2016-2018 LTIP | 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 | |||
2016-2018 LTIP | 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%) | |||
2016-2018 LTIP | 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 | |||
2016-2018 LTIP | 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 | |||
2014-2018 LTIP | Performance share units, net income | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Expected volatility, non-options granted | 40.00% | |||
Risk free interest rate, non-options granted | 0.70% | |||
2014-2018 LTIP | 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) | € 13.44 | |||
2014-2018 LTIP | 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) | € 15.21 | |||
2014-2018 LTIP | Performance share units, total shareholder return | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Dividend yield, non-options granted | 0.00% | |||
2014-2018 LTIP | 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) | € 13.44 | |||
Expected volatility, non-options granted | 37.00% | |||
Risk free interest rate, non-options granted | 0.70% | |||
2014-2018 LTIP | 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) | € 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, 2019 | Dec. 31, 2018 |
Disclosure of defined benefit plans [line items] | ||
Current employee benefit liability | € 544 | € 595 |
Non-current employee benefit liability | 8,507 | 7,875 |
Employee benefit liability | 9,051 | 8,470 |
Other provisions for employees | ||
Disclosure of defined benefit plans [line items] | ||
Current employee benefit liability | 311 | 345 |
Non-current employee benefit liability | 596 | 581 |
Employee benefit liability | 907 | 926 |
Pension benefits | ||
Disclosure of defined benefit plans [line items] | ||
Current employee benefit liability | 38 | 34 |
Non-current employee benefit liability | 5,024 | 4,475 |
Employee benefit liability | 5,062 | 4,509 |
Health care and life insurance plans | ||
Disclosure of defined benefit plans [line items] | ||
Current employee benefit liability | 132 | 134 |
Non-current employee benefit liability | 2,157 | 2,082 |
Employee benefit liability | 2,289 | 2,216 |
Other post-employment benefits | ||
Disclosure of defined benefit plans [line items] | ||
Current employee benefit liability | 63 | 82 |
Non-current employee benefit liability | 730 | 737 |
Employee benefit liability | € 793 | € 819 |
Employee benefits liabilities_2
Employee benefits liabilities - summarized fair value of the defined benefit obligations and fair value of plan assets (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | € 7,395 | € 6,996 | |
Employee benefit liability | 9,051 | 8,470 | |
Other provisions for employees | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefit liability | 907 | 926 | |
Defined Benefit Plans1 [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefit liability | 8,144 | 7,544 | |
Net defined benefit asset | (749) | (548) | |
Pension benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | 4,313 | 3,961 | € 4,324 |
Employee benefit liability | 5,062 | 4,509 | |
Health care and life insurance plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefit liability | 2,289 | 2,216 | |
Other post-employment benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefit liability | 793 | 819 | |
Obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | 28,106 | 25,802 | |
Obligation | Pension benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | 25,024 | 22,767 | 25,528 |
Obligation | Health care and life insurance plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | 2,289 | 2,216 | 2,279 |
Obligation | Other post-employment benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | 793 | 819 | 987 |
Fair value of plan assets | Pension benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | (20,729) | (18,819) | (21,218) |
Asset ceiling | Pension benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) | € 18 | € 13 | € 14 |
Employee benefits liabilities_3
Employee benefits liabilities - schedule of future payments (Details) € in Millions | Dec. 31, 2019EUR (€) |
2020 | Pension benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | € 1,524 |
2020 | Health care and life insurance plans | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 132 |
2021 | Pension benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 1,483 |
2021 | Health care and life insurance plans | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 131 |
2022 | Pension benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 1,472 |
2022 | Health care and life insurance plans | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 129 |
2023 | Pension benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 1,460 |
2023 | Health care and life insurance plans | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 129 |
2024 | Pension benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 1,465 |
2024 | Health care and life insurance plans | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 128 |
2024-2028 | Pension benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | 7,282 |
2024-2028 | Health care and life insurance plans | |
Defined Benefit Plan, Estimated Future Benefit Payments1 [Abstract] | |
Expected benefit payments | € 633 |
Employee benefits liabilities_4
Employee benefits liabilities - changes in the benefit obligations and fair value of plan assets (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | € 6,996 | ||
Other: | |||
Net defined benefit liability (asset), end of period | 7,395 | € 6,996 | |
Obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | 25,802 | ||
Other: | |||
Net defined benefit liability (asset), end of period | 28,106 | 25,802 | |
Pension benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | 3,961 | 4,324 | |
Included in the Consolidated Income Statement | 398 | 509 | € 442 |
Actuarial (gains)/losses from: | |||
Demographic assumptions | (359) | (196) | |
Financial assumptions | 2,773 | (1,530) | |
Return on assets | (2,454) | 1,530 | |
Changes in the effect of limiting net assets | 3 | (1) | |
Changes in exchange rates | 56 | 208 | |
Other: | |||
Employer contributions | (48) | (756) | |
Plan participant contributions | 0 | 0 | |
Benefits paid | (14) | (12) | |
Settlements paid | 0 | 0 | |
Transfer to Liabilities held for sale | 0 | (142) | |
Other changes | (3) | 27 | |
Net defined benefit liability (asset), end of period | 4,313 | 3,961 | 4,324 |
Pension benefits | Obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | 22,767 | 25,528 | |
Included in the Consolidated Income Statement | 1,111 | 1,189 | |
Actuarial (gains)/losses from: | |||
Demographic assumptions | (359) | (196) | |
Financial assumptions | 2,773 | (1,530) | |
Return on assets | 0 | 0 | |
Changes in the effect of limiting net assets | 0 | 0 | |
Changes in exchange rates | 618 | 792 | |
Other: | |||
Employer contributions | 0 | 0 | |
Plan participant contributions | 2 | 2 | |
Benefits paid | (1,520) | (1,568) | |
Settlements paid | (394) | (1,187) | |
Transfer to Liabilities held for sale | 0 | (268) | |
Other changes | 26 | 5 | |
Net defined benefit liability (asset), end of period | 25,024 | 22,767 | 25,528 |
Pension benefits | Fair value of plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | (18,819) | (21,218) | |
Included in the Consolidated Income Statement | (713) | (680) | |
Actuarial (gains)/losses from: | |||
Demographic assumptions | 0 | 0 | |
Financial assumptions | 0 | 0 | |
Return on assets | (2,454) | 1,530 | |
Changes in the effect of limiting net assets | 0 | 0 | |
Changes in exchange rates | (564) | (584) | |
Other: | |||
Employer contributions | (48) | (756) | |
Plan participant contributions | (2) | (2) | |
Benefits paid | 1,506 | 1,556 | |
Settlements paid | 394 | 1,187 | |
Transfer to Liabilities held for sale | 0 | 126 | |
Other changes | (29) | 22 | |
Net defined benefit liability (asset), end of period | (20,729) | (18,819) | (21,218) |
Pension benefits | Asset ceiling | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | 13 | 14 | |
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 | (1) | |
Changes in exchange rates | 2 | 0 | |
Other: | |||
Employer contributions | 0 | 0 | |
Plan participant contributions | 0 | 0 | |
Benefits paid | 0 | 0 | |
Settlements paid | 0 | 0 | |
Transfer to Liabilities held for sale | 0 | 0 | |
Other changes | 0 | 0 | |
Net defined benefit liability (asset), end of period | 18 | 13 | 14 |
Health care and life insurance plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Included in the Consolidated Income Statement | 115 | 110 | 120 |
Health care and life insurance plans | Obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | 2,216 | 2,279 | |
Included in the Consolidated Income Statement | 115 | 110 | |
Actuarial (gains)/losses from: | |||
Demographic assumptions | (215) | 37 | |
Financial assumptions | 251 | (161) | |
Changes in exchange rates | 57 | 81 | |
Other: | |||
Benefits paid | (135) | (128) | |
Transfer to Liabilities held for sale | 0 | (2) | |
Net defined benefit liability (asset), end of period | 2,289 | 2,216 | 2,279 |
Other post-employment benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Included in the Consolidated Income Statement | 20 | 23 | 23 |
Other post-employment benefits | Obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset), beginning of period | 819 | 987 | |
Included in the Consolidated Income Statement | 20 | 23 | |
Actuarial (gains)/losses from: | |||
Demographic assumptions | 11 | 2 | |
Financial assumptions | 41 | (5) | |
Changes in exchange rates | 3 | (3) | |
Other: | |||
Benefits paid | (90) | (50) | |
Transfer to Liabilities held for sale | 20 | 98 | |
Other changes | 9 | (37) | |
Net defined benefit liability (asset), end of period | € 793 | € 819 | € 987 |
Employee benefits liabilities_5
Employee benefits liabilities - recognized In consolidated income statement (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | € 156 | € 172 | € 169 |
Other administration costs | 82 | 79 | 94 |
Past service costs/(credits) and (gains)/losses arising from settlements/curtailments | (14) | 92 | (3) |
Items relating to discontinued operations, net defined liability | 0 | 0 | 6 |
Total recognized in the Consolidated Income Statement | 398 | 509 | 442 |
Pension benefits | Interest expense | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Interest (income) expense | 969 | 925 | 1,083 |
Total recognized in the Consolidated Income Statement | 1,111 | 1,189 | |
Pension benefits | Interest income | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Interest (income) expense | (795) | (759) | (907) |
Total recognized in the Consolidated Income Statement | (713) | (680) | |
Health care and life insurance plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 20 | 22 | 22 |
Interest (income) expense | 96 | 88 | 98 |
Past service costs/(credits) and (gains)/losses arising from settlements/curtailments | (1) | 0 | 0 |
Total recognized in the Consolidated Income Statement | 115 | 110 | 120 |
Health care and life insurance plans | Interest expense | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Total recognized in the Consolidated Income Statement | 115 | 110 | |
Other post-employment benefits | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 6 | 9 | 9 |
Interest (income) expense | 12 | 14 | 11 |
Past service costs/(credits) and (gains)/losses arising from settlements/curtailments | 1 | 0 | 0 |
Items relating to discontinued operations, net defined liability | 1 | 0 | 3 |
Total recognized in the Consolidated Income Statement | 20 | 23 | € 23 |
Other post-employment benefits | Interest expense | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Total recognized in the Consolidated Income Statement | € 20 | € 23 |
Employee benefits liabilities_6
Employee benefits liabilities - fair value of plan assets (Details) - Pension benefits - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | € 699 | € 672 |
Equity instruments | 3,784 | 3,903 |
Fixed income securities | 10,268 | 8,968 |
Investment funds | 5,783 | 5,190 |
Insurance contracts and other | 195 | 86 |
Total fair value of plan assets | 20,729 | 18,819 |
U.S. equity securities | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 1,407 | 1,286 |
Non-U.S. equity securities | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 781 | 784 |
Commingled funds | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 1,596 | 1,833 |
Investment funds | 65 | 56 |
Government securities | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income securities | 3,179 | 2,717 |
Corporate bonds (including convertible and high yield bonds) | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income securities | 5,553 | 4,944 |
Other fixed income | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income securities | 1,536 | 1,307 |
Private equity funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | 2,297 | 2,066 |
Real estate funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | 1,349 | 1,392 |
Hedge funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | 2,072 | 1,676 |
Level 1 | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | 681 | 615 |
Equity instruments | 2,608 | 2,647 |
Fixed income securities | 1,365 | 1,002 |
Investment funds | 103 | 82 |
Insurance contracts and other | 66 | 12 |
Total fair value of plan assets | 4,823 | 4,358 |
Level 1 | U.S. equity securities | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 1,405 | 1,284 |
Level 1 | Non-U.S. equity securities | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 781 | 757 |
Level 1 | Commingled funds | ||
Disclosure of fair value of plan assets [line items] | ||
Equity instruments | 422 | 606 |
Investment funds | 62 | 53 |
Level 1 | Government securities | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income securities | 1,191 | 916 |
Level 1 | Corporate bonds (including convertible and high yield bonds) | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income securities | 0 | 0 |
Level 1 | Other fixed income | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income securities | 174 | 86 |
Level 1 | Private equity funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | 0 | 0 |
Level 1 | Real estate funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | 3 | 3 |
Level 1 | Hedge funds | ||
Disclosure of fair value of plan assets [line items] | ||
Investment funds | € 38 | € 26 |
Employee benefits liabilities_7
Employee benefits liabilities - weighted average assumptions (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Pension benefits | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3.30% | 4.30% |
U.S. | Pension benefits | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3.30% | 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 | 3.40% | 4.40% |
Future salary increase rate | 1.50% | 1.50% |
Weighted average ultimate healthcare cost trend rate | 4.40% | 4.40% |
Canada | Pension benefits | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3.10% | 3.80% |
Future salary increase rate | 3.50% | 3.50% |
Canada | Health care and life insurance plans | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3.10% | 3.80% |
Future salary increase rate | 1.00% | 1.00% |
Weighted average ultimate healthcare cost trend rate | 4.00% | 4.00% |
Japan | Pension benefits | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 2.00% | 2.80% |
Future salary increase rate | 2.70% | 3.00% |
Employee benefits liabilities_8
Employee benefits liabilities - narrative (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019EUR (€)year | Dec. 31, 2019USD ($)year | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
Disclosure of defined benefit plans [line items] | ||||
Defined benefit plan cost | € 1,508 | € 1,518 | € 1,472 | |
Gains (losses) arising from settlements | 92 | |||
Net defined benefit liability (asset) | 7,395 | 6,996 | ||
Obligation | ||||
Disclosure of defined benefit plans [line items] | ||||
Net defined benefit liability (asset) | 28,106 | 25,802 | ||
Pension benefits | ||||
Disclosure of defined benefit plans [line items] | ||||
Discretionary credit balance | 2,100 | |||
Employer contributions | 48 | 756 | ||
Estimate of contributions expected to be paid to plan for next annual reporting period | 970 | |||
Payments in respect of settlements | 0 | 0 | ||
Gains (losses) arising from settlements | (12) | (1) | ||
Payments from plan, net defined benefit liability (asset) | 14 | 12 | ||
Net defined benefit liability (asset) | € 4,313 | € 3,961 | 4,324 | |
Discount rate | 3.30% | 4.30% | ||
Pension benefits | Obligation | ||||
Disclosure of defined benefit plans [line items] | ||||
Employer contributions | € 0 | € 0 | ||
Payments in respect of settlements | 394 | 1,187 | ||
Payments from plan, net defined benefit liability (asset) | 1,520 | 1,568 | ||
Net defined benefit liability (asset) | 25,024 | 22,767 | 25,528 | |
Health care and life insurance plans | Obligation | ||||
Disclosure of defined benefit plans [line items] | ||||
Payments from plan, net defined benefit liability (asset) | 135 | 128 | ||
Net defined benefit liability (asset) | € 2,289 | € 2,216 | 2,279 | |
Other post-employment benefits | ||||
Disclosure of defined benefit plans [line items] | ||||
Discount rate | 0.60% | 1.40% | ||
Other post-employment benefits | Obligation | ||||
Disclosure of defined benefit plans [line items] | ||||
Payments from plan, net defined benefit liability (asset) | € 90 | € 50 | ||
Net defined benefit liability (asset) | 793 | 819 | 987 | |
United States And Canada | Pension benefits | ||||
Disclosure of defined benefit plans [line items] | ||||
Employer contributions | 48 | € 724 | 124 | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 940 | |||
Estimate of discretionary contributions expected to be paid to plan for next annual reporting period | 895 | |||
Estimate of minimum funding contributions expected to be paid to plan in next annual reporting period | € 45 | |||
U.S. | Pension benefits | ||||
Disclosure of defined benefit plans [line items] | ||||
Weighted average duration of defined benefit obligation | year | 11 | 11 | ||
Discount rate | 3.30% | 4.40% | ||
U.S. | Health care and life insurance plans | ||||
Disclosure of defined benefit plans [line items] | ||||
Weighted average duration of defined benefit obligation | year | 12 | 12 | ||
Health care cost trend rate assumed for next annual reporting period | 5.30% | 6.40% | ||
Defined Benefit Plan Health Car Cost Trend Rate Assumed, Future Years | 3.90% | |||
Weighted average ultimate healthcare cost trend rate | 4.40% | 4.40% | ||
Discount rate | 3.40% | 4.40% | ||
Canada | Pension benefits | ||||
Disclosure of defined benefit plans [line items] | ||||
Weighted average duration of defined benefit obligation | year | 13 | 13 | ||
Discount rate | 3.10% | 3.80% | ||
Canada | Health care and life insurance plans | ||||
Disclosure of defined benefit plans [line items] | ||||
Weighted average duration of defined benefit obligation | year | 17 | 17 | ||
Health care cost trend rate assumed for next annual reporting period | 4.40% | 4.40% | ||
Weighted average ultimate healthcare cost trend rate | 4.00% | 4.00% | ||
Discount rate | 3.10% | 3.80% | ||
Japan | Pension benefits | ||||
Disclosure of defined benefit plans [line items] | ||||
Weighted average duration of defined benefit obligation | year | 17 | 17 | ||
Discount rate | 2.00% | 2.80% | ||
United States [Member] | Pension benefits | ||||
Disclosure of defined benefit plans [line items] | ||||
Estimate of discretionary contributions expected to be paid to plan for next annual reporting period | € 670 | $ 800 | ||
Italy | Health care and life insurance plans | ||||
Disclosure of defined benefit plans [line items] | ||||
Weighted average duration of defined benefit obligation | year | 8 | 8 | ||
Italy | Other post-employment benefits | ||||
Disclosure of defined benefit plans [line items] | ||||
Net defined benefit liability (asset) | € 584 | |||
Italy | Other post-employment benefits | Obligation | ||||
Disclosure of defined benefit plans [line items] | ||||
Net defined benefit liability (asset) | € 664 | |||
North America | Obligation | ||||
Disclosure of defined benefit plans [line items] | ||||
Refund of excess assets from settlement of supplemental retirement benefit plan | 22 | |||
North America | Pension benefits | ||||
Disclosure of defined benefit plans [line items] | ||||
Gains (losses) arising from settlements | (78) | |||
Annuity buyout [Member] | Pension benefits | ||||
Disclosure of defined benefit plans [line items] | ||||
Gains (losses) arising from settlements | (6) | |||
Annuity buyout [Member] | Pension benefits | Obligation | ||||
Disclosure of defined benefit plans [line items] | ||||
Payments in respect of settlements | 325 | € 841 | € 563 | |
Terminated vested [Member] | Pension benefits | ||||
Disclosure of defined benefit plans [line items] | ||||
Gains (losses) arising from settlements | 20 | |||
Terminated vested [Member] | Pension benefits | Obligation | ||||
Disclosure of defined benefit plans [line items] | ||||
Payments in respect of settlements | € 69 |
Provisions - summary of provisi
Provisions - summary of provisions (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of other provisions [line items] | ||||
Current provisions | € 8,978 | € 10,394 | € 8,970 | € 9,299 |
Non-current provisions | 5,027 | 5,413 | € 5,530 | € 6,326 |
Provisions | 14,005 | 15,807 | ||
Product warranty and recall campaigns | ||||
Disclosure of other provisions [line items] | ||||
Current provisions | 2,406 | 2,745 | ||
Non-current provisions | 3,900 | 4,015 | ||
Provisions | 6,306 | 6,760 | ||
Sales incentives | ||||
Disclosure of other provisions [line items] | ||||
Current provisions | 5,479 | 5,999 | ||
Non-current provisions | 0 | 0 | ||
Provisions | 5,479 | 5,999 | ||
Legal proceedings and disputes(1) | ||||
Disclosure of other provisions [line items] | ||||
Current provisions | 303 | 760 | ||
Non-current provisions | 222 | 280 | ||
Provisions | 525 | 1,040 | ||
Commercial risks | ||||
Disclosure of other provisions [line items] | ||||
Current provisions | 441 | 442 | ||
Non-current provisions | 120 | 272 | ||
Provisions | 561 | 714 | ||
Restructuring | ||||
Disclosure of other provisions [line items] | ||||
Current provisions | 72 | 134 | ||
Non-current provisions | 34 | 31 | ||
Provisions | 106 | 165 | ||
Other risks | ||||
Disclosure of other provisions [line items] | ||||
Current provisions | 277 | 314 | ||
Non-current provisions | 751 | 815 | ||
Provisions | € 1,028 | € 1,129 |
Provisions - changes in provisi
Provisions - changes in provisions (Details) € in Millions | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | € 15,807 |
Additional provisions | 18,916 |
Settlements | (20,761) |
Unused amounts | (102) |
Translation differences | 312 |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | 54 |
Other changes | (113) |
Provisions, at end of period | 14,005 |
Product warranty and recall campaigns | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | 6,760 |
Additional provisions | 3,059 |
Settlements | (3,655) |
Unused amounts | 0 |
Translation differences | 145 |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | 0 |
Other changes | (3) |
Provisions, at end of period | 6,306 |
Sales incentives | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | 5,999 |
Additional provisions | 14,864 |
Settlements | (15,573) |
Unused amounts | 63 |
Translation differences | 131 |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | 0 |
Other changes | (5) |
Provisions, at end of period | 5,479 |
Legal proceedings and disputes(1) | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | 1,040 |
Additional provisions | 167 |
Settlements | (680) |
Unused amounts | (24) |
Translation differences | 16 |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | 18 |
Other changes | 24 |
Provisions, at end of period | 525 |
Commercial risks | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | 714 |
Additional provisions | 353 |
Settlements | (408) |
Unused amounts | (28) |
Translation differences | 12 |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | 18 |
Other changes | (64) |
Provisions, at end of period | 561 |
Restructuring costs | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | 165 |
Additional provisions | 118 |
Settlements | (111) |
Unused amounts | (50) |
Translation differences | 1 |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | 1 |
Other changes | (16) |
Provisions, at end of period | 106 |
Other risks | |
Reconciliation of changes in other provisions [abstract] | |
Provisions, at beginning of period | 1,129 |
Additional provisions | 355 |
Settlements | (334) |
Unused amounts | (63) |
Translation differences | 7 |
Decrease through transfer to liabilities included in disposal groups classified as held for sale, other provisions | 17 |
Other changes | (49) |
Provisions, at end of period | € 1,028 |
Provisions - narrative (Details
Provisions - narrative (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
U.S. Diesel Emissions Provision [Domain] | ||
Disclosure of other provisions [line items] | ||
Increase (decrease) in other provisions | € (748) | |
Settlement, other provisions | € 500 | |
Warranty provision, recall of airbag inflators | ||
Disclosure of other provisions [line items] | ||
Increase (decrease) in other provisions | € (114) | |
CAFE provision [Domain] | ||
Disclosure of other provisions [line items] | ||
Increase (decrease) in other provisions | 158 | |
Restructuring costs | ||
Disclosure of other provisions [line items] | ||
Increase (decrease) in other provisions | (118) | |
North America | Restructuring costs | ||
Disclosure of other provisions [line items] | ||
Increase (decrease) in other provisions | (23) | |
LATAM | Restructuring costs | ||
Disclosure of other provisions [line items] | ||
Increase (decrease) in other provisions | (56) | |
EMEA | Restructuring costs | ||
Disclosure of other provisions [line items] | ||
Increase (decrease) in other provisions | € (36) |
Debt - summary of short-term an
Debt - summary of short-term and long-term debt (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||||
Short-term debt and current portion of long-term debt | € 4,876 | € 5,861 | ||
Long-term debt | 8,025 | 8,667 | ||
Borrowings | 12,901 | € 15,597 | 14,528 | € 17,971 |
Due between one and five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term debt | 7,362 | 7,140 | ||
Due beyond five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term debt | 663 | 1,527 | ||
Notes | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Short-term debt and current portion of long-term debt | 1,450 | 1,598 | ||
Long-term debt | 4,942 | 6,227 | ||
Borrowings | 6,392 | 7,825 | ||
Notes | Due between one and five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term debt | 4,942 | 4,977 | ||
Notes | Due beyond five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term debt | 0 | 1,250 | ||
Borrowings from banks(1) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Short-term debt and current portion of long-term debt | 2,097 | 2,928 | ||
Long-term debt | 1,599 | 2,177 | ||
Borrowings | 3,696 | 5,105 | ||
Borrowings from banks(1) | Due between one and five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term debt | 1,511 | 1,987 | ||
Borrowings from banks(1) | Due beyond five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term debt | 88 | 190 | ||
Asset-backed financing | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Short-term debt and current portion of long-term debt | 151 | 457 | ||
Long-term debt | 0 | 0 | ||
Borrowings | 151 | 457 | ||
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 | ||
Lease liabilities | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Short-term debt and current portion of long-term debt | 360 | 56 | ||
Long-term debt | 1,280 | 205 | ||
Borrowings | 1,640 | 261 | ||
Lease liabilities | Due between one and five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term debt | 705 | 131 | ||
Lease liabilities | Due beyond five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term debt | 575 | 74 | ||
Other debt(1) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Short-term debt and current portion of long-term debt | 818 | 822 | ||
Long-term debt | 204 | 58 | ||
Borrowings | 1,022 | 880 | ||
Other debt(1) | Due between one and five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term debt | 204 | 45 | ||
Other debt(1) | Due beyond five years | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term debt | € 0 | € 13 |
Debt - summary of outstanding n
Debt - summary of outstanding notes (Details) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019CHF (SFr) | Jan. 01, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | € 12,901,000,000 | € 15,597,000,000 | € 14,528,000,000 | € 17,971,000,000 | ||||
Notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | € 6,392,000,000 | 7,825,000,000 | ||||||
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 | |||||||
Coupon % | 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 | |||||||
Coupon % | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | |||
Borrowings | € 1,400,000,000 | $ 1,500,000,000 | ||||||
Other Notes Due April 15, 2023 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Face value of outstanding notes (million) | $ | $ 1,500,000,000 | |||||||
Coupon % | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | |||
Borrowings | € 1,400,000,000 | $ 1,500,000,000 | ||||||
Gross amount | Medium Term Notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | € 3,607,000,000 | 5,079,000,000 | ||||||
Gross amount | Medium Term Note Due September 30, 2019 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | 0 | 222,000,000 | ||||||
Gross amount | Medium Term Note Due October 14, 2019 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | 0 | 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 | 2,670,000,000 | 2,620,000,000 | ||||||
Gross amount | Other Notes Due April 15, 2020 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | 1,335,000,000 | 1,310,000,000 | ||||||
Gross amount | Other Notes Due April 15, 2023 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | 1,335,000,000 | 1,310,000,000 | ||||||
Hedging effect, accrued interest and amortized cost valuation | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | € 115,000,000 | € 126,000,000 |
Debt - notes issued through the
Debt - notes issued through the medium term note programme and other notes (Details) | 1 Months Ended | 12 Months Ended | |||||||||||
Oct. 31, 2019EUR (€) | Sep. 30, 2019CHF (SFr) | Jul. 31, 2018EUR (€) | Mar. 31, 2018EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2017CHF (SFr) | Dec. 31, 2015EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019CHF (SFr) | Jan. 01, 2019EUR (€) | Dec. 31, 2015USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt and Other | € 14,528,000,000 | € 17,971,000,000 | € 12,901,000,000 | € 15,597,000,000 | |||||||||
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 Note Due September 30, 2019 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Extinguishment of debt principal amount | SFr | SFr 250,000,000 | ||||||||||||
Coupon % | 3.125% | 3.125% | 3.125% | ||||||||||
Face amount | SFr | SFr 250,000,000 | ||||||||||||
Medium Term Note Due September 30, 2019 | Gross amount | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt and Other | 222,000,000 | € 0 | |||||||||||
Medium Term Note Due October 14, 2019 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Extinguishment of debt principal amount | € 1,250,000,000 | ||||||||||||
Coupon % | 6.75% | 6.75% | 6.75% | ||||||||||
Face amount | € 1,250,000,000 | ||||||||||||
Medium Term Note Due October 14, 2019 | Gross amount | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt and Other | 1,250,000,000 | 0 | |||||||||||
Medium Term Notes | Gross amount | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt and Other | 5,079,000,000 | € 3,607,000,000 | |||||||||||
Medium Term Note Due March 15, 2018 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Extinguishment of debt principal amount | € 1,250,000,000 | 1,250,000,000 | |||||||||||
Medium Term Note Due July 9, 2018 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Extinguishment of debt principal amount | € 600,000,000 | 600,000,000 | |||||||||||
Medium Term Note Due March 23, 2017 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Extinguishment of debt principal amount | 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 | ||||||||||||
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 | |||||||||||
Medium Term Note Due March 29, 2024 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Coupon % | 3.75% | 3.75% | 3.75% | ||||||||||
Face amount | € 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 | |||||||||||
Other Notes Due April 15, 2020 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt and Other | € 1,400,000,000 | $ 1,500,000,000 | |||||||||||
Coupon % | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | ||||||||
Face amount | $ | $ 1,500,000,000 | ||||||||||||
Other Notes Due April 15, 2020 | Gross amount | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt and Other | 1,310,000,000 | € 1,335,000,000 | |||||||||||
Other Notes Due April 15, 2023 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt and Other | € 1,400,000,000 | $ 1,500,000,000 | |||||||||||
Coupon % | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | ||||||||
Face amount | $ | $ 1,500,000,000 | ||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | ||||||||||||
Other Notes Due April 15, 2023 | Gross amount | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt and Other | € 1,310,000,000 | € 1,335,000,000 |
Debt - Fiat Chrysler Finance US
Debt - Fiat Chrysler Finance US Inc (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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 | Nov. 13, 2018EUR (€) | Nov. 13, 2018USD ($) | Feb. 24, 2017EUR (€) | Feb. 24, 2017USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2019EUR (€) | Jan. 01, 2019EUR (€) | Apr. 12, 2017 |
Disclosure of detailed information about borrowings [line items] | |||||||||
Debt and Other | € 14,528 | € 17,971 | € 12,901 | € 15,597 | |||||
FCA Trance B Term Loans | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Gain (loss) on extinguishment of debt | € (1) | (3) | |||||||
FCA US Tranche B Term Loan Due 2018 | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Repayments of borrowings | € 893 | $ 1,009 | € 1,721 | $ 1,826 | |||||
Debt and Other | € 836 | ||||||||
Adjustment to interest rate basis | 0.50% | ||||||||
FCA US Tranche B Term Loan Due 2018 | LIBOR | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings, adjustment to interest rate floor | 0.75% | ||||||||
Interest rate basis floor | 0.00% |
Debt - european investment bank
Debt - european investment bank borrowings (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 29, 2018 | Dec. 31, 2017 | May 31, 2011 |
Disclosure of detailed information about borrowings [line items] | ||||||
Debt and Other | € 12,901 | € 15,597 | € 14,528 | € 17,971 | ||
European Investment Bank Borrowings | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Debt and Other | € 400 | € 700 | ||||
European Investment Bank Maturing, 500 Million Facility | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount | € 500 | |||||
European Investment Bank Maturing, 420 Million Facility [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount | € 420 |
Debt - brazil (Details)
Debt - brazil (Details) € in Millions, R$ in Billions | 12 Months Ended | ||||
Dec. 31, 2019EUR (€) | Dec. 31, 2019BRL (R$) | Jan. 01, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
Disclosure of detailed information about borrowings [line items] | |||||
Debt and Other | € 12,901 | € 15,597 | € 14,528 | € 17,971 | |
Undrawn borrowing facilities | 7,600 | 7,700 | |||
Brazil Loans | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt and Other | € 1,800 | 2,300 | |||
Long-term Brazil Credit Facilities | Bottom of range | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings maturity term | 1 year | ||||
Long-term Brazil Credit Facilities | Top of range | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings maturity term | 2 years | ||||
Subsidized Brazil Loans | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt and Other | € 1,100 | 1,400 | |||
Subsidized Brazil Loans, Construction Of Plant In Pernambuco | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Debt and Other | 800 | 1,000 | |||
Maximum amount available under credit facility | 1,500 | R$ 6.5 | |||
Undrawn borrowing facilities | € 100 | € 100 |
Debt - revolving credit facilit
Debt - revolving credit facilities (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | |||
Undrawn borrowing facilities | € 7,600,000,000 | € 7,700,000,000 | |
Revolving Credit Facilities | |||
Disclosure of detailed information about borrowings [line items] | |||
Maximum amount available under credit facility | 6,250,000,000 | 6,250,000,000 | € 5,000,000,000 |
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 | € 1,500,000,000 |
Debt - mexico bank loan (Detail
Debt - mexico bank loan (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||||
Debt and Other | € 12,901 | € 15,597 | € 14,528 | € 17,971 |
Mexico Bank Loan | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Debt and Other | € 200 | € 300 | ||
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, 2019 | Dec. 31, 2018 |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Trade and other receivables | € 9,004 | € 8,672 |
Asset-backed financing | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Trade and other receivables | € 151 | € 457 |
Debt - other debt (Details)
Debt - other debt (Details) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||||
Debt and Other | € 17,971 | € 12,901 | € 15,597 | € 14,528 |
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 |
Debt - lease liabilities (Detai
Debt - lease liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of leases [Abstract] | ||
Non-current lease liabilities | € 1,280 | |
Current lease liabilities | 360 | |
Commitments for leases entered and not yet commenced | 399 | |
Lease commitments for short-term leases for which recognition exemption has been used | € 28 | € 102 |
Debt - contractual maturities o
Debt - contractual maturities of lease liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Gross lease liabilities | € 2,146 | € 1,513 |
Due within one year | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Gross lease liabilities | 430 | |
Due between one and five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Gross lease liabilities | 905 | |
Due beyond five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Gross lease liabilities | € 811 |
Debt - debt secured by assets (
Debt - debt secured by assets (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||||
Debt and Other | € 12,901 | € 15,597 | € 14,528 | € 17,971 |
Property, plant and equipment, pledged as security | 1,637 | 2,214 | ||
Secured Debt Excluding FCA US | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Debt and Other | € 674 | € 834 |
Other liabilities and tax pay_3
Other liabilities and tax payable - other liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current | ||
Payables for buy-back agreements, current | € 2,210 | € 2,362 |
Accrued expenses and deferred income, current | 769 | 783 |
Indirect tax payables, current | 501 | 681 |
Payables to personnel, current | 1,008 | 956 |
Social security payables, current | 258 | 265 |
Amounts due to customers for contract work, current | 83 | 93 |
Service contract liability, current | 621 | 568 |
Other, current | 1,338 | 1,349 |
Total Other liabilities, current | 6,788 | 7,057 |
Non-current | ||
Payables for buy-back agreements, non-current | 0 | 0 |
Accrued expenses and deferred income, non-current | 674 | 697 |
Indirect tax payables, non-current | 14 | 16 |
Payables to personnel, non-current | 15 | 16 |
Social security payables, non-current | 4 | 4 |
Amounts due to customers for contract work, non-current | 0 | 0 |
Service contract liability, non-current | 1,530 | 1,521 |
Other, non-current | 189 | 198 |
Total Other liabilities, non-current | 2,426 | 2,452 |
Total | ||
Payables for GDP and buy-back agreements | 2,210 | 2,362 |
Accrued expenses and deferred income | 1,443 | 1,480 |
Indirect tax payables | 515 | 697 |
Payables to personnel | 1,023 | 972 |
Social security payables | 262 | 269 |
Construction contract liabilities | 83 | 93 |
Service contract liability | 2,151 | 2,089 |
Other | 1,527 | 1,547 |
Total Other liabilities | € 9,214 | € 9,509 |
Other liabilities and tax pay_4
Other liabilities and tax payable - other liabilities by due date (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other liabilities (excluding Accrued expenses, deferred income and service contract liability) | € 5,620 | € 5,940 |
Due within one year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other liabilities (excluding Accrued expenses, deferred income and service contract liability) | 5,398 | 5,706 |
Due between one and five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other liabilities (excluding Accrued expenses, deferred income and service contract liability) | 201 | 221 |
Due beyond five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other liabilities (excluding Accrued expenses, deferred income and service contract liability) | 21 | 13 |
Total due after one year (non-current) | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other liabilities (excluding Accrued expenses, deferred income and service contract liability) | € 222 | € 234 |
Other liabilities and tax pay_5
Other liabilities and tax payable - narrative (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Brazil indirect tax - reversal of liability/recognition of credits | € 164 | € 72 | € 895 |
Net revenues | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Brazil indirect tax - reversal of liability/recognition of credits | 547 | ||
Net financial income (expense) | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Brazil indirect tax - reversal of liability/recognition of credits | 348 | ||
LATAM | Operating segments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Brazil indirect tax - reversal of liability/recognition of credits | € 164 | € 54 | € 0 |
Other liabilities and tax pay_6
Other liabilities and tax payable - changes in group service contract liability (Details) € in Millions | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Other liabilities [Line Items] | |
Service contract liability at start of period | € 2,089 |
Service contract liability at end of period | 2,151 |
service contract liability | |
Other liabilities [Line Items] | |
Service contract liability at start of period | 2,089 |
Advances received from customers | 839 |
Amounts recognized in revenue | (721) |
Decrease through transfer to liabilities held for sale, service contract liability | 0 |
Other changes to service contract liabilities | (56) |
Service contract liability at end of period | € 2,151 |
Other liabilities and tax pay_7
Other liabilities and tax payable - expected recognition of service contract liability (Details) € in Millions | Dec. 31, 2019EUR (€) |
2020 | |
Other liabilities [Line Items] | |
Expected recognition of Service Contract Liability | € 514 |
2021 | |
Other liabilities [Line Items] | |
Expected recognition of Service Contract Liability | 483 |
2022 | |
Other liabilities [Line Items] | |
Expected recognition of Service Contract Liability | 403 |
Thereafter | |
Other liabilities [Line Items] | |
Expected recognition of Service Contract Liability | € 751 |
Other liabilities and tax pay_8
Other liabilities and tax payable - taxes payable by due date (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Tax liabilities | € 122 | € 203 | € 348 | € 180 |
Tax liabilities | 278 | 149 | € 314 | € 219 |
Tax liabilities(1) | 400 | 352 | ||
Due between one and five years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Tax liabilities | 276 | 149 | ||
Due beyond five years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Tax liabilities | € 2 | € 0 |
Fair value measurements - asset
Fair value measurements - assets and liabilities measured at fair value on recurring basis (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | € 98,044 | € 96,873 | |
Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 3,430 | 6,052 | |
Liabilities | 318 | 207 | |
Recurring fair value measurement | Derivatives | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Liabilities | 318 | 207 | |
Recurring fair value measurement | Debt securities and equity instruments measured at FVOCI | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 37 | 31 | |
Recurring fair value measurement | Debt securities and equity instruments measured at FVPL | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 292 | 273 | |
Recurring fair value measurement | Derivatives | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 98 | 297 | |
Recurring fair value measurement | Collateral deposits | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 42 | 61 | |
Recurring fair value measurement | Receivables From Financing Activities | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 580 | 973 | |
Recurring fair value measurement | Trade receivables | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 19 | 65 | |
Recurring fair value measurement | Other receivables | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 69 | 0 | |
Recurring fair value measurement | Money market securities | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 2,293 | 4,352 | |
Recurring fair value measurement | Level 1 | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 2,615 | 4,686 | |
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 FVOCI | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 3 | 3 | |
Recurring fair value measurement | Level 1 | Debt securities and equity instruments measured at FVPL | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 277 | 270 | |
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 | Collateral deposits | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 42 | 61 | |
Recurring fair value measurement | Level 1 | Receivables From Financing Activities | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 0 | 0 | |
Recurring fair value measurement | Level 1 | Trade receivables | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 0 | 0 | |
Recurring fair value measurement | Level 1 | Other receivables | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 0 | 0 | |
Recurring fair value measurement | Level 1 | Money market securities | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 2,293 | 4,352 | |
Recurring fair value measurement | Level 2 | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 138 | 336 | |
Liabilities | 318 | 205 | |
Recurring fair value measurement | Level 2 | Derivatives | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Liabilities | 318 | 205 | |
Recurring fair value measurement | Level 2 | Debt securities and equity instruments measured at FVOCI | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 21 | 15 | |
Recurring fair value measurement | Level 2 | Debt securities and equity instruments measured at FVPL | |||
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 | 98 | 256 | |
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 | Receivables From Financing Activities | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 0 | 0 | |
Recurring fair value measurement | Level 2 | Trade receivables | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 19 | 65 | |
Recurring fair value measurement | Level 2 | Other receivables | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 0 | 0 | |
Recurring fair value measurement | Level 2 | Money market securities | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 0 | 0 | |
Recurring fair value measurement | Level 3 | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 677 | 1,030 | |
Liabilities | 0 | 2 | |
Recurring fair value measurement | Level 3 | Derivatives | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Liabilities | 0 | 2 | |
Recurring fair value measurement | Level 3 | Debt securities and equity instruments measured at FVOCI | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 13 | 13 | |
Recurring fair value measurement | Level 3 | Debt securities and equity instruments measured at FVPL | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 15 | 3 | |
Recurring fair value measurement | Level 3 | Derivatives | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 0 | 41 | |
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 | Receivables From Financing Activities | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 580 | 973 | € 700 |
Recurring fair value measurement | Level 3 | Trade receivables | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 0 | 0 | |
Recurring fair value measurement | Level 3 | Other receivables | |||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | |||
Assets | 69 | 0 | € 0 |
Recurring fair value measurement | Level 3 | Money market securities | |||
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, 2019 | Dec. 31, 2018 | |
Fair Value of Assets (Liabilities) | ||
Assets, beginning | € 96,873 | |
Assets, ending | 98,044 | € 96,873 |
Recurring fair value measurement | ||
Fair Value of Assets (Liabilities) | ||
Assets, beginning | 6,052 | |
Assets, ending | 3,430 | 6,052 |
Recurring fair value measurement | Other receivables | ||
Fair Value of Assets (Liabilities) | ||
Assets, beginning | 0 | |
Assets, ending | 69 | 0 |
Recurring fair value measurement | Receivables From Financing Activities | ||
Fair Value of Assets (Liabilities) | ||
Assets, beginning | 973 | |
Assets, ending | 580 | 973 |
Recurring fair value measurement | Derivatives | ||
Fair Value of Assets (Liabilities) | ||
Assets, beginning | 297 | |
Assets, ending | 98 | 297 |
Recurring fair value measurement | Level 3 | ||
Fair Value of Assets (Liabilities) | ||
Assets, beginning | 1,030 | |
Assets, ending | 677 | 1,030 |
Recurring fair value measurement | Level 3 | Cash flow hedge reserve | ||
Fair Value of Assets (Liabilities) | ||
Gains (Losses) Recognised In Other Comprehensive Income, Fair Value Measurement, Assets (Liabilities) | 15 | |
Recurring fair value measurement | Level 3 | Other receivables | ||
Fair Value of Assets (Liabilities) | ||
Assets, beginning | 0 | 0 |
Gains/(Losses) recognized in Consolidated Income Statement | (1) | 0 |
Gains/(Losses) recognized in Other comprehensive income | ||
Issues/Settlements | 70 | 0 |
Net purchases and sales, fair value measurement, assets | 0 | |
Decrease through transfer to assets held for sale | 0 | |
Transfers out of Level 3 of fair value hierarchy, assets | 0 | |
Assets, ending | 69 | 0 |
Recurring fair value measurement | Level 3 | Receivables From Financing Activities | ||
Fair Value of Assets (Liabilities) | ||
Assets, beginning | 973 | 700 |
Gains/(Losses) recognized in Consolidated Income Statement | 0 | 0 |
Issues/Settlements | (393) | 273 |
Net purchases and sales, fair value measurement, assets | 0 | |
Decrease through transfer to assets held for sale | 0 | |
Assets, ending | 580 | 973 |
Recurring fair value measurement | Level 3 | Available-for-sale securities | ||
Fair Value of Assets (Liabilities) | ||
Assets, beginning | 16 | 45 |
Gains/(Losses) recognized in Consolidated Income Statement | 1 | (1) |
Net purchases and sales, fair value measurement, assets | 11 | |
Decrease through transfer to assets held for sale | (28) | |
Assets, ending | 28 | 16 |
Recurring fair value measurement | Level 3 | Derivatives | ||
Fair Value of Assets (Liabilities) | ||
Assets, beginning | 41 | |
Assets, ending | 0 | 41 |
Recurring fair value measurement | Level 3 | Derivatives | Derivatives | ||
Fair Value of Assets (Liabilities) | ||
Assets (liabilities), beginning | 39 | 29 |
Gains/(Losses) recognized in Consolidated Income Statement | 56 | 30 |
Gains/(Losses) recognized in Other comprehensive income | (15) | 9 |
Issues/Settlements | (66) | (29) |
Net purchases and sales, fair value measurement, assets | 0 | |
Transfers out of Level 3 of fair value hierarchy, assets | (14) | |
Assets (liabilities), ending | € 0 | € 39 |
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, 2019 | Dec. 31, 2018 |
Borrowings [Member] | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities | € 12,901 | € 14,528 |
Financial liabilities, at fair value | 13,415 | 14,838 |
Asset-backed financing | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities | 151 | 457 |
Financial liabilities, at fair value | 151 | 457 |
Notes | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities | 6,392 | 7,825 |
Financial liabilities, at fair value | 6,900 | 8,152 |
Notes | Level 1 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities, at fair value | 6,893 | 8,145 |
Notes | Level 2 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities, at fair value | 7 | 7 |
Other debt(1) | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities | 4,718 | 5,985 |
Financial liabilities, at fair value | 4,724 | 5,968 |
Other debt(1) | Level 2 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities, at fair value | 3,865 | 5,241 |
Other debt(1) | Level 3 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities, at fair value | 859 | 988 |
Lease liabilities | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities | 1,640 | 261 |
Financial liabilities, at fair value | 1,640 | 261 |
Lease liabilities | Level 2 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities, at fair value | 75 | |
Lease liabilities | Level 3 | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial liabilities, at fair value | 1,640 | 186 |
Receivables From Financing Activities | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial assets | 2,575 | 2,641 |
Financial assets, at fair value | 2,569 | 2,624 |
Dealer financing | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial assets | 1,737 | 1,681 |
Financial assets, at fair value | 1,736 | 1,682 |
Retail financing | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial assets | 613 | 601 |
Financial assets, at fair value | 608 | 584 |
Finance lease | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial assets | 3 | 3 |
Financial assets, at fair value | 3 | 3 |
Other receivables from financing activities | ||
Disclosure Of Fair Value Measurement of Assets And Liabiltiies [Line Items] | ||
Financial assets | 222 | 356 |
Financial assets, at fair value | € 222 | € 355 |
Related party transactions - ad
Related party transactions - additional information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Provision of guarantees or collateral by entity, related party transactions | € 3,000 | € 3,000 | |
Key management personnel compensation | € 23,050 | 18,830 | € 29,861 |
Sevel S.p.A. | |||
Disclosure of transactions between related parties [line items] | |||
Proportion of ownership interest in joint operation | 50.00% | ||
FCA Bank S.p.A. | |||
Disclosure of transactions between related parties [line items] | |||
Provision of guarantees or collateral by entity, related party transactions | € 19,000 | ||
Key employees | |||
Disclosure of transactions between related parties [line items] | |||
Key management personnel compensation | 59,000 | 58,000 | 81,000 |
Key management personnel compensation, share-based payment | 30,000 | 28,000 | 49,000 |
Short-term employee benefits expense | 6,000 | 7,000 | 8,000 |
Post-employment benefit expense, defined benefit plans | € 7,000 | € 10,000 | € 9,000 |
Exor N.V. | Largest shareholder | |||
Disclosure of transactions between related parties [line items] | |||
Shareholder ownership percentage | 28.66% | ||
Shareholder voting interest ownership | 41.74% |
Related party transactions - si
Related party transactions - significant transactions with related parties (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Net revenues | € 108,187 | € 110,412 | € 105,730 |
Cost of revenues | 93,164 | 95,011 | 89,710 |
Selling, general and other costs | 6,455 | 7,318 | 7,177 |
Net financial expenses | 1,005 | 1,056 | 1,345 |
Trade and other receivables | 9,004 | 8,672 | |
Trade payables | 21,616 | 19,229 | |
Debt | 12,750 | 14,071 | |
Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 2,774 | 3,387 | 4,023 |
Cost of revenues | 2,110 | 2,618 | 2,808 |
Selling, general and other costs | (41) | (63) | (115) |
Net financial expenses | 51 | 57 | 38 |
Trade and other receivables | 387 | 508 | |
Trade payables | 321 | 457 | |
Other liabilities | 199 | 281 | |
Secured bank loans received | 141 | 449 | |
Debt | 194 | 39 | |
Associates | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 17 | 30 | 73 |
Cost of revenues | 186 | 229 | 52 |
Selling, general and other costs | (1) | (2) | (3) |
Net financial expenses | 0 | (1) | 1 |
Trade and other receivables | 45 | 34 | |
Trade payables | 41 | 33 | |
Other liabilities | 8 | 10 | |
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 | 392 | 567 | 609 |
Cost of revenues | 476 | 544 | 649 |
Selling, general and other costs | 131 | 113 | 143 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 65 | 80 | |
Trade payables | 149 | 118 | |
Other liabilities | 11 | 15 | |
Secured bank loans received | 0 | 0 | |
Debt | 0 | 0 | |
Unconsolidated subsidiaries | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 6 | 7 | 61 |
Cost of revenues | 7 | 8 | 8 |
Selling, general and other costs | 4 | 4 | 3 |
Net financial expenses | 0 | 1 | (1) |
Trade and other receivables | 16 | 17 | |
Trade payables | 9 | 7 | |
Other liabilities | 1 | 1 | |
Secured bank loans received | 0 | 0 | |
Debt | 22 | 26 | |
Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 3,189 | 3,991 | 4,766 |
Cost of revenues | 2,779 | 3,399 | 3,517 |
Selling, general and other costs | 93 | 52 | 28 |
Net financial expenses | 51 | 57 | 38 |
Trade and other receivables | 513 | 639 | |
Trade payables | 520 | 615 | |
Other liabilities | 219 | 307 | |
Secured bank loans received | 141 | 449 | |
Debt | 216 | 65 | |
Tofas | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 728 | 926 | 1,287 |
Cost of revenues | 2,086 | 2,572 | 2,779 |
Selling, general and other costs | 9 | 7 | 9 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 18 | 11 | |
Trade payables | 171 | 176 | |
Other liabilities | 39 | 40 | |
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 | 205 | 402 | 392 |
Cost of revenues | 1 | 1 | 0 |
Selling, general and other costs | 5 | 4 | 5 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 28 | 20 | |
Trade payables | 0 | 0 | |
Other liabilities | 1 | 2 | |
Secured bank loans received | 0 | 0 | |
Debt | 13 | 11 | |
FCA Bank S.p.A. | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 1,686 | 1,611 | 1,715 |
Cost of revenues | 23 | 28 | 26 |
Selling, general and other costs | (19) | (21) | (20) |
Net financial expenses | 52 | 56 | 36 |
Trade and other receivables | 278 | 395 | |
Trade payables | 139 | 258 | |
Other liabilities | 151 | 232 | |
Secured bank loans received | 141 | 449 | |
Debt | 181 | 28 | |
GAC FCA JV | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 151 | 419 | 569 |
Cost of revenues | 0 | 11 | 0 |
Selling, general and other costs | (36) | (49) | (105) |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 62 | 63 | |
Trade payables | 11 | 22 | |
Other liabilities | 0 | 1 | |
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 | 2 | 2 | 25 |
Cost of revenues | 0 | 0 | 1 |
Selling, general and other costs | 0 | 0 | 0 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 1 | 0 | |
Trade payables | 0 | 0 | |
Other liabilities | 8 | 6 | |
Secured bank loans received | 0 | 0 | |
Debt | 0 | 0 | |
Other related parties | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 2 | 27 | 35 |
Cost of revenues | 0 | 6 | 2 |
Selling, general and other costs | 0 | (4) | (4) |
Net financial expenses | (1) | 1 | 2 |
Trade and other receivables | 0 | 19 | |
Trade payables | 0 | 1 | |
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 | 5 | 2 | 1 |
Cost of revenues | 0 | 0 | 0 |
Selling, general and other costs | 37 | 26 | 26 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 4 | 2 | |
Trade payables | 13 | 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 | 357 | 501 | 526 |
Cost of revenues | 332 | 326 | 329 |
Selling, general and other costs | 11 | 6 | 2 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 49 | 53 | |
Trade payables | 87 | 71 | |
Other liabilities | 11 | 12 | |
Secured bank loans received | 0 | 0 | |
Debt | 0 | 0 | |
Ferrari N.V. | Key management personnel of entity or parent | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 30 | 64 | 82 |
Cost of revenues | 144 | 218 | 320 |
Selling, general and other costs | 1 | 4 | 1 |
Net financial expenses | 0 | 0 | 0 |
Trade and other receivables | 12 | 25 | |
Trade payables | 49 | 45 | |
Other liabilities | 0 | 3 | |
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 | 82 | 77 | 114 |
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, 2019EUR (€) |
2020 | |
Disclosure of transactions between related parties [line items] | |
Related party, future minimum expected obligation | € 280 |
2021 | |
Disclosure of transactions between related parties [line items] | |
Related party, future minimum expected obligation | 257 |
2022 | |
Disclosure of transactions between related parties [line items] | |
Related party, future minimum expected obligation | € 153 |
Related party transactions - co
Related party transactions - compensation to directors (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Compensation | € 23,050 | € 18,830 | € 29,861 |
Director | |||
Disclosure of transactions between related parties [line items] | |||
Compensation | € 23,050 | € 18,830 | € 29,861 |
Guarantees granted, commitmen_3
Guarantees granted, commitments and contingent liabilities - additional information (Details) | Dec. 27, 2019EUR (€)employee | Dec. 27, 2019USD ($)employee | Jun. 28, 2019EUR (€) | Jun. 28, 2019USD ($) | Nov. 04, 2016EUR (€) | Nov. 04, 2016CAD ($) | Oct. 16, 2016 | Mar. 31, 2019employee | Dec. 31, 2015 | Apr. 30, 2015 | May 31, 2013EUR (€) | Feb. 28, 2013 | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2019USD ($) | May 31, 2013USD ($) |
Disclosure of contingent liabilities [line items] | |||||||||||||||||||
Financial assets pledged as collateral for liabilities or contingent liabilities | € 8,000,000 | € 7,000,000 | |||||||||||||||||
Provision of guarantees or collateral by entity, related party transactions | 3,000,000 | 3,000,000 | |||||||||||||||||
Financing agreement, term (in years) | 10 years | ||||||||||||||||||
Deferred income | 224,000,000 | 200,000,000 | |||||||||||||||||
Amortization period | 10 years | ||||||||||||||||||
Ownership period limit for repurchase obligation (in years) | 1 year | ||||||||||||||||||
Repurchase obligation, term (in years) | 10 years | ||||||||||||||||||
Refunds provision | 188,000,000 | $ 211,000,000 | |||||||||||||||||
Labor agreement, total lump sum payment to employees | € 446,000,000 | $ 499,000,000 | |||||||||||||||||
Warranty and recall expense, recall of airbag inflators | 114,000,000 | € 102,000,000 | |||||||||||||||||
Charge recognized for U.S. diesel emission matters | 748,000,000 | ||||||||||||||||||
Charge for U.S. diesel emission matters, civil claims accrual | € 350,000,000 | ||||||||||||||||||
Charge for U.S. diesel emission matters, average price per eligible vehicle | $ | $ 2,800 | ||||||||||||||||||
Charge for U.S. diesel emission matters, estimate number of eligible vehicles | 3,200 | 3,200 | |||||||||||||||||
U.S. import duties, historic rate for Ram ProMaster City vehicles | 2.50% | 2.50% | |||||||||||||||||
U.S. import duties, rate for Cargo Vans | 25.00% | 25.00% | |||||||||||||||||
Contingent liabilities | |||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||
Estimated financial effect of contingent liabilities | € 5,000,000 | € 160,000,000 | |||||||||||||||||
Provisions | 3,000,000 | 50,000,000 | |||||||||||||||||
SCUSA - May 2013 | |||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||
Deferred income | € 109,000,000 | 45,000,000 | $ 50,000,000 | $ 150,000,000 | |||||||||||||||
SCUSA - June 2019 | |||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||
Other income | € 53,000,000 | $ 60,000,000 | |||||||||||||||||
Regulatory emission credits | |||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||
Contractual capital commitments | 1,200,000,000 | ||||||||||||||||||
UAW Labor Agreement | |||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||
Contractual capital commitments | € 9,000,000,000 | ||||||||||||||||||
Labor agreement, number of new or secured jobs committed | employee | 7,900 | 7,900 | |||||||||||||||||
Labor agreement, number of eligible employees | employee | 49,200 | 49,200 | |||||||||||||||||
Labor agreement, term of agreement (in years) | 4 years | 4 years | |||||||||||||||||
Labor agreement, lump sum payment per traditional employee | € 9,000 | ||||||||||||||||||
Labor agreement, lump sum payment per temporary employee | 3,500 | ||||||||||||||||||
Labor agreement, total lump sum payment to employees | € 446,000,000 | $ 499,000,000 | |||||||||||||||||
Italian Labor Agreement | |||||||||||||||||||
Disclosure of contingent liabilities [line items] | |||||||||||||||||||
Labor agreement, number of eligible employees | employee | 66,000 | ||||||||||||||||||
Labor agreement, annual wage increase | 2.00% | ||||||||||||||||||
Labor agreement, term of agreement (in years) | 4 years | ||||||||||||||||||
Labor agreement, compensation expense | € 75,000,000 | € 72,000,000 | € 105,000,000 | ||||||||||||||||
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 | € 38,000,000 | $ 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 | $ | $ 6,000 |
Guarantees granted, commitmen_4
Guarantees granted, commitments and contingent liabilities - repurchase obligation (Details) € in Millions | Dec. 31, 2019EUR (€) |
2020 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum purchase obligation payable | € 982 |
2021 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum purchase obligation payable | 594 |
2022 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum purchase obligation payable | 216 |
2023 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum purchase obligation payable | 27 |
2024 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum purchase obligation payable | 45 |
2025 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum purchase obligation payable | € 0 |
Equity - additional information
Equity - additional information (Details) - EUR (€) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 18, 2018 | Dec. 31, 2016 | Oct. 29, 2014 | |
Disclosure of classes of share capital [line items] | ||||||
Value of shares authorised | € 40,000,000 | |||||
Number of shares reserved for issue under options and contracts for sale of shares | 50,000,000 | 90,000,000 | ||||
Par value per share (in euros per shares) | € 0.01 | € 0.01 | ||||
Equity | € 28,675,000,000 | € 24,903,000,000 | € 21,008,000,000 | € 19,353,000,000 | ||
Number of shares outstanding (in shares) | 1,976,461,041 | 1,959,559,330 | ||||
Statutory reserve | € 14,206,000,000 | € 13,842,000,000 | ||||
Capital reserve | 6,034,000,000 | 5,920,000,000 | ||||
Retained earnings (accumulated deficit) | 2,286,000,000 | 1,836,000,000 | ||||
Net profit attributable to owners of the parent | 6,622,000,000 | 3,608,000,000 | 3,491,000,000 | |||
Share capital | ||||||
Disclosure of classes of share capital [line items] | ||||||
Equity | € 20,000,000 | € 19,000,000 | € 19,000,000 | € 19,000,000 | ||
Common shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares authorised (in shares) | 2,000,000,000 | |||||
Par value per share (in euros per shares) | € 0.01 | |||||
Number of shares outstanding (in shares) | 1,567,519,274 | 1,550,617,563 | ||||
Special voting shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares authorised (in shares) | 2,000,000,000 | |||||
Par value per share (in euros per shares) | € 0.01 | |||||
Number of shares outstanding (in 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, 2019shares | |
Reconciliation of number of shares outstanding [abstract] | |
Number of shares outstanding (in shares) | 1,959,559,330 |
Number of shares outstanding (in shares) | 1,976,461,041 |
Common shares | |
Reconciliation of number of shares outstanding [abstract] | |
Number of shares outstanding (in shares) | 1,550,617,563 |
Number of shares outstanding (in shares) | 1,567,519,274 |
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 |
Key employees | |
Reconciliation of number of shares outstanding [abstract] | |
Shares issued to Directors (compensation) (in shares) | 16,901,711 |
Key employees | Common shares | |
Reconciliation of number of shares outstanding [abstract] | |
Shares issued to Directors (compensation) (in shares) | 16,901,711 |
Key employees | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Items that will not be reclassified to the Consolidated Income Statement in subsequent periods: | |||
(Losses)/gains on remeasurement of defined benefit plans | € (63) | € 317 | € (72) |
Share of gains/(losses) on remeasurement of defined benefit plans for equity method investees | (5) | 0 | 2 |
Items relating to discontinued operations | (9) | 1 | 8 |
Total Items that will not be reclassified to the Consolidated Income Statement | (71) | 314 | (48) |
Items that may be reclassified to the Consolidated Income Statement in subsequent periods: | |||
Other comprehensive income, before tax, hedges of net investments in foreign operations | 0 | 0 | 0 |
Gains/(losses) on cash flow hedging instruments arising during the period | (269) | 99 | 47 |
Gains/(losses) on cash flow hedging instruments reclassified to the Consolidated Income Statement | 78 | (108) | 82 |
Total Gains/(losses) on cash flow hedging instruments | (191) | (9) | 129 |
Other comprehensive income, before tax, financial assets measured at fair value through other comprehensive income | 6 | (4) | 14 |
Exchange gains/(losses) on translating foreign operations | 268 | 126 | (1,982) |
Share of Other comprehensive income/(loss) for equity method investees arising during the period | (16) | (77) | (94) |
Share of Other comprehensive income/(loss) for equity method investees reclassified to the Consolidated Income Statement | 1 | (26) | (27) |
Total Share of Other comprehensive (loss)/income for equity method investees | (15) | (103) | (121) |
Items relating to discontinued operations | 9 | (91) | 58 |
Total Items that may be reclassified to the Consolidated Income Statement | 71 | (77) | (1,916) |
Total Other comprehensive income | 0 | 237 | (1,964) |
Tax effect | (57) | 82 | 30 |
Tax effect - discontinued operations | 0 | 1 | (1) |
Total Other comprehensive income/(loss), net of tax (B1)(B2)(B) | € 57 | € 156 | € (1,995) |
Equity - tax effect relating to
Equity - tax effect relating to other comprehensive income (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |||
Gains/(Losses) on re-measurement of defined benefit plans, pre-tax balance | € (63) | € 317 | € (72) |
Gains/(Losses) on re-measurement of defined benefit plans, tax income/(expense) | 7 | (76) | (18) |
Gains/(Losses) on re-measurement of defined benefit plans, net balance | (56) | 241 | (90) |
Gains/(losses) on cash flow hedging instruments arising during the period | (269) | 99 | 47 |
Other comprehensive income, before tax, hedges of net investments in foreign operations | 0 | 0 | 0 |
Gains/(Losses) on cash flow hedging instruments, pre-tax balance | (191) | (9) | 129 |
Gains/(Losses) on cash flow hedging instruments, tax income/(expense) | 50 | (6) | (12) |
Gains/(Losses) on cash flow hedging instruments, net balance | (141) | (15) | 117 |
Other comprehensive income, before tax, financial assets measured at fair value through other comprehensive income | 6 | (4) | 14 |
Gains/(Losses) on available- for-sale financial assets, tax income/(expense) | 0 | 0 | 0 |
Other comprehensive income, net of tax, financial assets measured at fair value through other comprehensive income | 6 | (4) | 14 |
Exchange gains/(losses) on translating foreign operations, pre-tax balance | 268 | 126 | (1,982) |
Exchange gains/(losses) on translating foreign operations, tax income/(expense) | 0 | 0 | 0 |
Exchange gains/(losses) on translating foreign operations, net balance | 268 | 126 | (1,982) |
Share of Other comprehensive income/(loss) for equity method investees, pre-tax balance | (20) | (103) | (119) |
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 | (20) | (103) | (119) |
Items relating to discontinued operations, pre-tax balance | 0 | (90) | 66 |
Items relating to discontinued operations, tax income/(expense) | 0 | 1 | (1) |
Items relating to discontinued operations, net balance | 0 | (89) | 65 |
Total Other comprehensive income | 0 | 237 | (1,964) |
Total Other comprehensive income, tax income/(expense) | 57 | (81) | (31) |
Total Other comprehensive income/(loss), net of tax (B1)(B2)(B) | € 57 | € 156 | € (1,995) |
Equity - dividends (Details)
Equity - dividends (Details) - Ordinary Dividend [Member] - EUR (€) € / shares in Units, € in Billions | May 02, 2019 | Apr. 12, 2019 | Dec. 31, 2019 |
Dividend type [Line Items] | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | € 0.70 | ||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | € 1.1 | ||
Dividends paid, ordinary shares per share | € 1.30 | € 0.65 | |
Dividends paid, ordinary shares | € 2 | € 1 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [abstract] | |||
Net profit attributable to owners of the parent | € 6,622 | € 3,608 | € 3,491 |
Weighted average number of shares outstanding (in shares) | 1,564,114 | 1,548,439 | 1,535,988 |
Basic earnings per share (in EUR per share) | € 4.23 | € 2.33 | € 2.27 |
Net profit from continuing operations attributable to owners of the parent | € 2,694 | € 3,323 | € 3,281 |
Basic earnings per share from continuing operations (in EUR per share) | € 1.72 | € 2.15 | € 2.14 |
Net profit from discontinued operations attributable to owners of the parent | € 3,928 | € 285 | € 210 |
Basic earnings per share from discontinued operations (in EUR per share) | € 2.51 | € 0.18 | € 0.14 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [abstract] | |||
Net profit attributable to owners of the parent | € 6,622 | € 3,608 | € 3,491 |
Weighted average number of shares outstanding (in shares) | 1,564,114 | 1,548,439 | 1,535,988 |
Number of shares deployable for share-based compensation (in shares) | 6,736 | 19,400 | 20,318 |
Weighted average number of shares outstanding for diluted earnings per share (in shares) | 1,570,850 | 1,567,839 | 1,556,306 |
Diluted earnings per share (in EUR per share) | € 4.22 | € 2.30 | € 2.24 |
Net profit from continuing operations attributable to owners of the parent | € 2,694 | € 3,323 | € 3,281 |
Diluted earnings per share from continuing operations (in EUR per share) | € 1.71 | € 2.12 | € 2.11 |
Net profit from discontinued operations attributable to owners of the parent | € 3,928 | € 285 | € 210 |
Diluted earnings per share from discontinued operations (in EUR per share) | € 2.50 | € 0.18 | € 0.13 |
Segment reporting - selected fi
Segment reporting - selected financial information by segment (Details) € in Millions | Jan. 11, 2018USD ($)employee | Dec. 31, 2019EUR (€)segment | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) |
Disclosure of operating segments [line items] | ||||
Number of reportable regional operating segments | segment | 4 | |||
Revenue | € 108,187 | € 110,412 | € 105,730 | |
Net profit from continuing operations | 2,700 | 3,330 | 3,291 | |
Tax expense | 1,321 | 778 | 2,588 | |
Net financial expenses | 1,005 | 1,056 | 1,345 | |
Adjustments: | ||||
Charge recognized for U.S. diesel emission matters | 748 | |||
Impairment expense and supplier obligations | 1,542 | 353 | 219 | |
China Inventory impairment | 129 | |||
Warranty and recall expense, recall of airbag inflators | 114 | 102 | ||
Warranty And Recall Expense, Contested With Supplier | (50) | |||
North America capacity realignment | (60) | |||
Losses from catastrophes, net of insurance recoveries, port of Tianjin | (68) | |||
Losses from catastrophes, net of insurance recoveries, port of Savona | 43 | |||
U.S. special bonus payment | 111 | |||
Restructuring costs, net of reversals | 154 | 103 | 86 | |
Employee benefits settlement losses | 92 | |||
Deconsolidation of Venezuela | 42 | |||
Brazil indirect tax - reversal of liability/recognition of credits | 164 | 72 | 895 | |
Gains on disposal of investments | (15) | 0 | (76) | |
Other(4)(5) | 125 | 63 | 13 | |
Adjusted EBIT | 6,668 | 6,738 | 6,609 | |
Share of the profit of equity method investees | 208 | 240 | 400 | |
Impairment loss | 1,589 | 297 | 219 | |
Supplier obligations | 56 | |||
Write-down of property, plant and equipment classified as restructuring costs | 76 | |||
Unused provision reversed, other provisions | 102 | |||
Announced bonus amount per employee | $ | $ 2,000 | |||
Number of employees eligible for bonus | employee | 60,000 | |||
North America | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 73,337 | 72,353 | 66,047 | |
Adjustments: | ||||
Impairment loss | 16 | |||
LATAM | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 8,449 | 8,142 | 7,994 | |
Adjustments: | ||||
Impairment loss | 8 | 56 | ||
APAC | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 2,762 | 2,646 | 3,218 | |
Adjustments: | ||||
China Inventory impairment | 129 | |||
Impairment loss | 11 | |||
EMEA | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 20,466 | 22,714 | 22,584 | |
Adjustments: | ||||
Impairment loss | 262 | 142 | ||
Maserati | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 1,592 | 2,645 | 4,037 | |
Other activities | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 1,581 | 1,912 | 1,850 | |
Operating segments | North America | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 73,357 | 72,384 | 66,094 | |
Adjustments: | ||||
Charge recognized for U.S. diesel emission matters | 0 | |||
Impairment expense and supplier obligations | 98 | 16 | 0 | |
China Inventory impairment | 0 | |||
Warranty and recall expense, recall of airbag inflators | 114 | 29 | ||
Warranty And Recall Expense, Contested With Supplier | (50) | |||
North America capacity realignment | (60) | (38) | ||
Losses from catastrophes, net of insurance recoveries, port of Tianjin | 0 | |||
Losses from catastrophes, net of insurance recoveries, port of Savona | 0 | |||
U.S. special bonus payment | 109 | |||
Restructuring costs, net of reversals | 23 | 0 | (1) | |
Employee benefits settlement losses | 92 | |||
Deconsolidation of Venezuela | 0 | |||
Brazil indirect tax - reversal of liability/recognition of credits | 0 | 0 | 0 | |
Gains on disposal of investments | 0 | 0 | ||
Other(4)(5) | 45 | 1 | (1) | |
Adjusted EBIT | 6,690 | 6,230 | 5,227 | |
Share of the profit of equity method investees | 0 | 0 | 0 | |
Operating segments | LATAM | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 8,461 | 8,152 | 8,004 | |
Adjustments: | ||||
Charge recognized for U.S. diesel emission matters | 0 | |||
Impairment expense and supplier obligations | 0 | 8 | 77 | |
China Inventory impairment | 0 | |||
Warranty and recall expense, recall of airbag inflators | 0 | 73 | ||
Warranty And Recall Expense, Contested With Supplier | 0 | |||
North America capacity realignment | 0 | 0 | ||
Losses from catastrophes, net of insurance recoveries, port of Tianjin | 0 | |||
Losses from catastrophes, net of insurance recoveries, port of Savona | 0 | |||
U.S. special bonus payment | 0 | |||
Restructuring costs, net of reversals | 127 | (28) | 75 | |
Employee benefits settlement losses | 0 | |||
Deconsolidation of Venezuela | 42 | |||
Brazil indirect tax - reversal of liability/recognition of credits | 164 | 54 | 0 | |
Gains on disposal of investments | 0 | 0 | ||
Other(4)(5) | 4 | 0 | 0 | |
Adjusted EBIT | 501 | 359 | 151 | |
Share of the profit of equity method investees | 0 | 0 | 0 | |
Operating segments | APAC | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 2,814 | 2,703 | 3,250 | |
Adjustments: | ||||
Charge recognized for U.S. diesel emission matters | 0 | |||
Impairment expense and supplier obligations | 0 | 11 | 0 | |
China Inventory impairment | 129 | |||
Warranty and recall expense, recall of airbag inflators | 0 | 0 | ||
Warranty And Recall Expense, Contested With Supplier | 0 | |||
North America capacity realignment | 0 | 0 | ||
Losses from catastrophes, net of insurance recoveries, port of Tianjin | (68) | |||
Losses from catastrophes, net of insurance recoveries, port of Savona | 0 | |||
U.S. special bonus payment | 0 | |||
Restructuring costs, net of reversals | 0 | 0 | 0 | |
Employee benefits settlement losses | 0 | |||
Deconsolidation of Venezuela | 0 | |||
Brazil indirect tax - reversal of liability/recognition of credits | 0 | 0 | 0 | |
Gains on disposal of investments | 0 | 0 | ||
Other(4)(5) | (4) | 0 | 1 | |
Adjusted EBIT | (36) | (296) | 172 | |
Share of the profit of equity method investees | (126) | (67) | 75 | |
Operating segments | EMEA | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 20,571 | 22,815 | 22,700 | |
Adjustments: | ||||
Charge recognized for U.S. diesel emission matters | 0 | |||
Impairment expense and supplier obligations | 441 | 307 | 142 | |
China Inventory impairment | 0 | |||
Warranty and recall expense, recall of airbag inflators | 0 | 0 | ||
Warranty And Recall Expense, Contested With Supplier | 0 | |||
North America capacity realignment | 0 | 0 | ||
Losses from catastrophes, net of insurance recoveries, port of Tianjin | 0 | |||
Losses from catastrophes, net of insurance recoveries, port of Savona | 2 | |||
U.S. special bonus payment | 0 | |||
Restructuring costs, net of reversals | (9) | 123 | 0 | |
Employee benefits settlement losses | 0 | |||
Deconsolidation of Venezuela | 0 | |||
Brazil indirect tax - reversal of liability/recognition of credits | 0 | 0 | 0 | |
Gains on disposal of investments | 0 | 0 | ||
Other(4)(5) | (7) | 30 | 0 | |
Adjusted EBIT | (6) | 406 | 735 | |
Share of the profit of equity method investees | 318 | 284 | 306 | |
Operating segments | Maserati | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 1,603 | 2,663 | 4,058 | |
Adjustments: | ||||
Charge recognized for U.S. diesel emission matters | 0 | |||
Impairment expense and supplier obligations | 210 | 0 | 0 | |
China Inventory impairment | 0 | |||
Warranty and recall expense, recall of airbag inflators | 0 | 0 | ||
Warranty And Recall Expense, Contested With Supplier | 0 | |||
North America capacity realignment | 0 | 0 | ||
Losses from catastrophes, net of insurance recoveries, port of Tianjin | 0 | |||
Losses from catastrophes, net of insurance recoveries, port of Savona | 11 | |||
U.S. special bonus payment | 0 | |||
Restructuring costs, net of reversals | 3 | 0 | 0 | |
Employee benefits settlement losses | 0 | |||
Deconsolidation of Venezuela | 0 | |||
Brazil indirect tax - reversal of liability/recognition of credits | 0 | 0 | 0 | |
Gains on disposal of investments | 0 | 0 | ||
Other(4)(5) | 8 | 0 | 0 | |
Adjusted EBIT | (199) | 151 | 560 | |
Share of the profit of equity method investees | 0 | 0 | 0 | |
Operating segments | Other activities | ||||
Adjustments: | ||||
North America capacity realignment | 0 | |||
Other Activities | Other activities | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 3,009 | 2,888 | 3,248 | |
Adjustments: | ||||
Charge recognized for U.S. diesel emission matters | 0 | |||
Impairment expense and supplier obligations | 0 | 0 | 0 | |
China Inventory impairment | 0 | |||
Warranty and recall expense, recall of airbag inflators | 0 | 0 | ||
Warranty And Recall Expense, Contested With Supplier | 0 | |||
North America capacity realignment | 0 | 0 | ||
Losses from catastrophes, net of insurance recoveries, port of Tianjin | 0 | |||
Losses from catastrophes, net of insurance recoveries, port of Savona | 30 | |||
U.S. special bonus payment | 2 | |||
Restructuring costs, net of reversals | 0 | 8 | 11 | |
Employee benefits settlement losses | 0 | |||
Deconsolidation of Venezuela | 0 | |||
Brazil indirect tax - reversal of liability/recognition of credits | 0 | 18 | 0 | |
Gains on disposal of investments | (15) | 27 | ||
Other(4)(5) | 7 | 12 | 12 | |
Adjusted EBIT | (173) | (40) | (98) | |
Share of the profit of equity method investees | 15 | 22 | 18 | |
Unallocated items & eliminations | ||||
Disclosure of operating segments [line items] | ||||
Revenue | (1,628) | (1,193) | (1,624) | |
Adjustments: | ||||
Charge recognized for U.S. diesel emission matters | 748 | |||
Impairment expense and supplier obligations | 793 | 11 | 0 | |
China Inventory impairment | 0 | |||
Warranty and recall expense, recall of airbag inflators | 0 | 0 | ||
Warranty And Recall Expense, Contested With Supplier | 0 | |||
North America capacity realignment | 0 | (38) | ||
Losses from catastrophes, net of insurance recoveries, port of Tianjin | 0 | |||
Losses from catastrophes, net of insurance recoveries, port of Savona | 0 | |||
U.S. special bonus payment | 0 | |||
Restructuring costs, net of reversals | 10 | 0 | 1 | |
Employee benefits settlement losses | 0 | |||
Deconsolidation of Venezuela | 0 | |||
Brazil indirect tax - reversal of liability/recognition of credits | 0 | 0 | 0 | |
Gains on disposal of investments | 0 | 49 | ||
Other(4)(5) | 72 | 20 | 1 | |
Adjusted EBIT | (109) | (72) | (138) | |
Share of the profit of equity method investees | 1 | 1 | 1 | |
Elimination of intersegment amounts | North America | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 20 | 31 | 47 | |
Elimination of intersegment amounts | LATAM | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 12 | 10 | 10 | |
Elimination of intersegment amounts | APAC | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 52 | 57 | 32 | |
Elimination of intersegment amounts | EMEA | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 105 | 101 | 116 | |
Elimination of intersegment amounts | Maserati | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 11 | 18 | 21 | |
Elimination of intersegment amounts | Other activities | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 1,428 | € 976 | 1,398 | |
Non-current assets with definite useful lives | ||||
Adjustments: | ||||
Gains on disposal of investments | € 76 | |||
Restructuring costs | ||||
Adjustments: | ||||
Increase (decrease) in other provisions | 118 | |||
Unused provision reversed, other provisions | 50 | |||
Restructuring costs | North America | ||||
Adjustments: | ||||
Increase (decrease) in other provisions | 23 | |||
Restructuring costs | LATAM | ||||
Adjustments: | ||||
Increase (decrease) in other provisions | 56 | |||
Restructuring costs | EMEA | ||||
Adjustments: | ||||
Unused provision reversed, other provisions | 46 | |||
Supplier obligations | Operating segments | EMEA | ||||
Adjustments: | ||||
Impairment expense and supplier obligations | € 6 |
Segment reporting - selected _2
Segment reporting - selected financial information by geographic region (Details) - EUR (€) € in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | € 57,371 | € 54,060 |
North America(1) | ||
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | 40,097 | 35,493 |
Italy | ||
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | 10,711 | 11,478 |
Brazil | ||
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | 4,064 | 4,125 |
Poland | ||
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | 684 | 937 |
Serbia | ||
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | 495 | 571 |
Other countries | ||
Disclosure of geographical areas [line items] | ||
Total Non-current assets (other than financial instruments, deferred tax assets and post-employment benefits assets) | € 1,320 | € 1,456 |
Explanatory notes to the cons_3
Explanatory notes to the consolidated statements of cash flows - additional information (Details) $ in Millions | Nov. 13, 2018EUR (€) | Nov. 13, 2018USD ($) | Feb. 24, 2017EUR (€) | Feb. 24, 2017USD ($) | Jul. 31, 2018EUR (€) | Mar. 31, 2018EUR (€) | May 02, 2019EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2017CHF (SFr) |
Cash flows from operating activities: | ||||||||||||
Cash flows from (used in) operating activities | € 10,462,000,000 | € 9,948,000,000 | € 10,385,000,000 | |||||||||
Net profit from continuing operations | 2,700,000,000 | 3,330,000,000 | 3,291,000,000 | |||||||||
Amortization and depreciation | 5,445,000,000 | 5,507,000,000 | 5,474,000,000 | |||||||||
Impairment loss | 1,589,000,000 | 297,000,000 | 219,000,000 | |||||||||
Adjustments for deferred tax expense | 864,000,000 | 457,000,000 | 1,075,000,000 | |||||||||
Change in provisions | (1,744,000,000) | 842,000,000 | 464,000,000 | |||||||||
Charge recognized for U.S. diesel emission matters | 748,000,000 | |||||||||||
Cash flows (used in)/from operating activities - discontinued operations | (308,000,000) | 484,000,000 | 705,000,000 | |||||||||
Increase (decrease) in working capital | 1,869,000,000 | 1,035,000,000 | 458,000,000 | |||||||||
Change in trade payables | (2,020,000,000) | 1,240,000,000 | (937,000,000) | |||||||||
Change in inventories | (1,017,000,000) | (1,399,000,000) | 1,596,000,000 | |||||||||
Change in trade receivables | 100,000,000 | 19,000,000 | (157,000,000) | |||||||||
Net change in other receivables and payables | 1,268,000,000 | 1,213,000,000 | (358,000,000) | |||||||||
Other non-cash items | 1,541,000,000 | 129,000,000 | (197,000,000) | |||||||||
Dividends received | 156,000,000 | 75,000,000 | 102,000,000 | |||||||||
Interest paid | 860,000,000 | 1,024,000,000 | 1,190,000,000 | |||||||||
Interest received | 325,000,000 | 308,000,000 | 299,000,000 | |||||||||
Income taxes paid (refund) | 341,000,000 | 750,000,000 | 533,000,000 | |||||||||
Investments accounted for using equity method, revaluation | 240,000,000 | 400,000,000 | ||||||||||
Labor agreement, total lump sum payment to employees | 446,000,000 | $ 499 | ||||||||||
Cash outflow for leases | 381,000,000 | |||||||||||
Cash flows used in investing activities: | ||||||||||||
Cash flows from (used in) investing activities | (2,985,000,000) | (6,738,000,000) | (9,296,000,000) | |||||||||
Purchase of property, plant and equipment, intangible assets other than goodwill, investment property and other non-current assets | 8,385,000,000 | 5,392,000,000 | 8,105,000,000 | |||||||||
Cash flows used in investing activities - discontinued operations | (155,000,000) | (632,000,000) | (570,000,000) | |||||||||
Portion of consideration paid (received) consisting of cash and cash equivalents | € (5,774,000,000) | |||||||||||
Cash and cash equivalents | 15,014,000,000 | 12,450,000,000 | ||||||||||
Net change in receivables from financing activities | 336,000,000 | (676,000,000) | (836,000,000) | |||||||||
Proceeds from sales of investments other than investments accounted for using equity method | 144,000,000 | |||||||||||
Cash flows used in financing activities: | ||||||||||||
Cash flows from (used in) financing activities | 5,827,000,000 | 2,785,000,000 | 4,473,000,000 | |||||||||
Dividends paid, classified as financing activities | 3,056,000,000 | 1,000,000 | 1,000,000 | |||||||||
Brazil Loans | ||||||||||||
Cash flows used in financing activities: | ||||||||||||
Repayments of borrowings | € 684,000,000 | |||||||||||
FCA US Tranche B Term Loan Due 2018 | ||||||||||||
Cash flows used in financing activities: | ||||||||||||
Repayments of borrowings | € 893,000,000 | $ 1,009 | 1,721,000,000 | $ 1,826 | ||||||||
Medium Term Note Due March 15, 2018 | ||||||||||||
Cash flows used in financing activities: | ||||||||||||
Extinguishment of debt principal amount | € 1,250,000,000 | 1,250,000,000 | ||||||||||
Medium Term Note Due July 9, 2018 | ||||||||||||
Cash flows used in financing activities: | ||||||||||||
Extinguishment of debt principal amount | € 600,000,000 | 600,000,000 | ||||||||||
Other long-term debt | ||||||||||||
Cash flows used in financing activities: | ||||||||||||
Repayments of borrowings | € 889,000,000 | |||||||||||
Medium Term Note Due March 23, 2017 | ||||||||||||
Cash flows used in financing activities: | ||||||||||||
Extinguishment of debt principal amount | 850,000,000 | |||||||||||
Medium Term Note Due June 12, 2017 | ||||||||||||
Cash flows used in financing activities: | ||||||||||||
Extinguishment of debt principal amount | 1,000,000,000 | |||||||||||
Medium Term Note Due November 22, 2017 | ||||||||||||
Cash flows used in financing activities: | ||||||||||||
Extinguishment of debt principal amount | 385,000,000 | SFr 450,000,000 | ||||||||||
Two notes issued under MTN Programme | ||||||||||||
Cash flows used in financing activities: | ||||||||||||
Extinguishment of debt principal amount | 1,480,000,000 | |||||||||||
U.S. Diesel Emissions Provision [Domain] | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Settlement, other provisions | 500,000,000 | |||||||||||
North America | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Impairment loss | 16,000,000 | |||||||||||
Financing activities [Member] | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Cash outflow for leases | 299,000,000 | |||||||||||
Operating activities [Member] | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Cash outflow for leases | 82,000,000 | |||||||||||
Extraordinary Dividend [Domain] | ||||||||||||
Cash flows used in financing activities: | ||||||||||||
Dividends paid, classified as financing activities | 2,038,000,000 | |||||||||||
Capitalised development expenditure | ||||||||||||
Cash flows used in investing activities: | ||||||||||||
Additions other than through business combinations, intangible assets other than goodwill | € 2,889,000,000 | € 2,079,000,000 | € 2,431,000,000 |
Explanatory notes to the cons_4
Explanatory notes to the consolidated statements of cash flows - financing activities (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Changes in liabilities arising from financing activities [abstract] | |||
Total Debt at January 1(1) | € 15,597 | € 17,971 | |
Add: Derivative (assets)/liabilities and collateral at January 1 | (151) | (206) | |
Total Liabilities from financing activities at January 1 | 15,446 | 17,765 | |
Present value of lease liabilities, excluding finance leases under IAS 17 | € 1,069 | ||
Cash flows | (3,096) | (2,795) | |
Foreign exchange effects | 9 | (226) | |
Fair value changes | 327 | (136) | |
Changes in scope of consolidation | 43 | (3) | |
Transfer to liabilities held for sale | (82) | (177) | |
Other changes | 432 | (51) | |
Total Liabilities from financing activities at December 31 | 13,079 | 14,377 | |
Less: Derivative (assets)/liabilities and collateral at December 31 | 178 | (151) | |
Total Debt at December 31 | € 12,901 | € 14,528 |
Qualitative and quantitative _2
Qualitative and quantitative information on financial risk (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of credit risk exposure [line items] | ||
Receivables from financing activities | € 3,155 | € 3,614 |
Trade and other receivables | € 9,004 | 8,672 |
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 | € 991 | 704 |
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 | € 68 | 83 |
Interest rate risk | Floating interest rate | ||
Disclosure of credit risk exposure [line items] | ||
Potential loss from 10 percent change in exchange rates | € 23 | 25 |
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 | € 55 | € 91 |
Uncategorized Items - fcagroup-
Label | Element | Value |
Trade receivables [member] | ||
Fair Value of Assets Representing Derecognised Financial Assets | fcagroup_FairValueofAssetsRepresentingDerecognisedFinancialAssets | € 6,847,000,000 |
Fair Value of Assets Representing Derecognised Financial Assets | fcagroup_FairValueofAssetsRepresentingDerecognisedFinancialAssets | € 5,777,000,000 |