Intercompany and related-party transactions

Intercompany and related-party transactions for Fiat S.p.A. consist for the most part of transactions carried out with the Company’s subsidiaries on commercial terms that are normal in the respective markets, considering the characteristics of the goods or services involved.

The effects of these transactions on the single items of the 2013 and 2012 financial statements, which may also be found in the supplementary financial statements and in the explanatory Notes, is summarized in the following tables: 

Counterparty
(€ thousand)
Other operating IncomePersonnel costsOther operating costsFinancial income/(expense)
20132012201320122013201220132012
Abarth & C. S.p.A. 223 316 - - - - - 1
Chrysler Group LLC 372 379 - - 290 299 - -
Comau S.p.A. 2,690 2,606 - - 22 - (4) (5)
C.R.F. S.c.p.A. - - - - 219 157 - 4
Deposito Avogadro S.p.A. 158 171 - - - - (5) (5)
Editrice La Stampa S.p.A. 284 50 - - 50 30 (5) (5)
Ferrari S.p.A. 6,541 6,467 - - 9 4 4 9
Fiat (China) Business Co. Ltd. - - - - 1,058 845 - -
Fiat do Brasil S.A. - - - - 1,068 1,049 - -
Fiat Group Automobiles S.p.A. 48,382 45,005 - - 516 372 434 320
Fiat Group Automobiles Belgium S.A. - - - - 117 118 - -
Fiat Automoveis S.A. – FIASA - - - - - - 187 203
Fiat Finance S.p.A. 689 676 - - - 117 (209,768) (216,802)
Fiat Finance and Trade Ltd. S.A. 7 - - - 1 - 3,006 2,702
Fiat Finance North America Inc. - - - - - - 321 338
Fiat France  - - - - 21 18 - -
Fiat North America LLC 218 - - - - - - -
Fiat Services S.p.A. 885 1,204 - - 2,085 2,197 (5) (5)
Fiat Services Polska Sp. z o.o. - - - - 373 495 - -
Fiat Finance et Services S.A. - - - - 274 527 31 -
Fiat Group Marketing & Corporate Comm. S.p.A. 492 691 - - 4,554 4,491 (5) (5)
Fiat Group Purchasing S.r.l. 145 194 - - 12 4 - (5)
Fiat Partecipazioni S.p.A. 647 740 - - 3,593 3,631 (4) -
Fiat Servizi per l’Industria S.c.p.A. 133 67 - - 1,412 1,426 (5) (5)
Fiat I.T.E.M. S.p.A. 379 368 - - 3,002 2,546 (5) (5)
FGA Capital S.p.A. 139 37 - - 109 52 4 3
Fidis S.p.A. 374 304 - - - - (5,975) (1,765)
Leasys S.p.A. - - - - 1,676 1,558 - -
Maserati S.p.A. 2,813 1,102 - - - - 41 20
Magneti Marelli S.p.A. 8,583 8,198 - - - - - -
Orione S.c.p.A. 3 3 - - 3,202 3,167 (5) (5)
Risk Management S.p.A. - 5 - - 21 29 (5) (5)
Sirio S.c.p.A. 171 173 - - 1,747 1,714 (5) (5)
Sisport Fiat S.p.A. 23 35 - - 45 39 - -
Teksid S.p.A. 1,431 1,541 - - - - (5) (5)
Other Group companies 61 7 - - 242 307 134 154
Total Group companies 75,843 70,339 - - 25,718 25,192 (211,639) (214,873)
Other related parties 4,019 4,406 10,459 9,543 11,346 16,021 (20) (15)
Total Group companies and other related parties 79,862 74,745 10,459 9,543 37,064 41,213 (211,659) (214,888)
Total  82,824 77,374 38,683 36,054 72,195 76,259 (210,087) (216,080)
% of total line item 1 1 0 0 1 1 1 1

In addition to the intercompany and related-party transactions having an impact on the income statement, as reported in the previous table, there was also a €971 thousand gain on the sale of the investments in Fiat Revisione Interna S.c.p.A. and Isvor Fiat S.c.p.A. to Fiat Partecipazioni S.p.A., a wholly-owned subsidiary (see Note 3). 

31 December 2013 
Counterparty
(€ thousand)
Other fin. AssetsTrade recs. Current financial receivablesOther current recs.Non-current employee provisionsNon-current debtOther non-current liabilitiesTrade pags. Current debtOther debt
Chrysler Group LLC -    372 - - - - - 290 - -
Fiat Group Automobiles S.p.A. -    33 - - - - - 341 - -
Fiat Finance S.p.A. -    23 - - - 400,000 - - 3,755,742 -
Fiat Group Marketing & C.C. S.p.A. -    - - - - - - 792 - -
Fiat Servizi per l’Industria S.c.p.A. - - - - - - - 622 - -
Fiat Service S.p.A. - 4 - - - - - 200 - -
Fiat I.T.E.M. S.p.A. -    - - - - - - 202 - -
Fiat Partecipazioni S.p.A. -    - - - - - - 1,154 - -
Fiat (China) Business Co. Ltd -    - - - - - - 1,058 - -
Fiat North America LLC  -    218 - - - - - - - -
Leasys S.p.A. - - - - - - - 997 - -
Magneti Marelli S.p.A. -    21 - - - - - - - -
Sirio S.c.p.A. -    - - - - - - 35 - -
Other Group companies - 108 - 220 - - - 204 - -
IRES tax consolidation -    - - 119,298 - - - - - 106,996
VAT consolidation -    - - - - - - - - 92,098
Financial guarantees 13,953 - - - - 13,953 - - - -
Total Group companies 13,953 779 - 119,518 - 413,953 - 5,895 3,755,742 199,094
Other related parties - 320 - - 127,519 - - 1 - 239
Total Group companies and other related parties 13,953 1,099 - 119,518 127,519 413,953 - 5,896 3,755,742 199,333
Total  14,028 7,214 - 188,835 142,741 413,953 16,078 18,977 3,780,428 214,351
% of total line item 99% 15% - 63% 89% 100% 0% 31% 99% 93%

31 December 2012 
Counterparty
(€ thousand)
Other fin.  assets Trade recs.Current financial receivables Other current  recs. Non-current employee provisionsNon-current debt Other non-current liabilities Trade pays.Current debt Other debt
Chrysler Group LLC - 379 - - - - - 1,311 - -
Ferrari S.p.A. - 159 - - - - - 5 - -
Fiat Group Automobiles S.p.A. - 724 - - - - - 180 - 6
Fiat Finance S.p.A. - - 58,281 - - 1,400,000 - - 1,266,774 -
Fiat Group Marketing & C.C. S.p.A. - - - - - - - 1,683 - -
Fiat Servizi per l’Industria S.c.p.A. - - - - - - - 667 - -
Fiat Service S.p.A. - - - - - - - 267 - -
Fiat I.T.E.M. S.p.A. - - - - - - - 139 - -
Fiat Partecipazioni S.p.A. - 2 - - - - - 1,379 - -
Leasys S.p.A. - - - - - - - 302 - -
Maserati S.p.A. - 161 - - - - - - - -
Sirio S.c.p.A. - - - - - - - 124 - -
Other Group companies - 151 - - - - - 467 - -
IRES tax consolidation - - - 134,652 - - - - - 137,891
VAT consolidation - - - - - - - -   205,989
Financial guarantees 12,035 - - - - 12,035 - - - -
Total Group companies 12,035 1,576 58,281 134,652 - 1,412,035 - 6,524 1,266,774 343,886
Other related parties - 409 - 1,566 126,173 - - 284 - 6,744
Total Group companies and other related parties 12,035 1,985 58,281 136,218 126,173 1,412,035 - 6,808 1,266,774 350,630
Total  12,109 4,756 58,281 302,707 140,851 1,412,035 17,165 17,301 1,294,074 364,460
% of total line item 99% 42% 100% 45% 90% 100% 0% 39% 98% 96%

Items arising from the domestic tax consolidation (see Notes 16 and 25) and the consolidated VAT settlement (see Note 25) are not reported in the above tables, as they do not represent actual commercial transactions between Group companies but relate only to the financial treatment provided under the Italian tax code for relationships between Italian Group companies and the tax authorities. Similarly, balances relating to financial guarantees (offsetting assets and liabilities) are not broken down by counterparty, as they only represent the present value of estimated fees to be earned in future years and are considered not material (see Notes 12 and 20).

Details of the most significant transactions between Fiat S.p.A. and Group companies summarized in the above tables are as follows:

  • services provided by Fiat S.p.A. and management personnel at various Group companies (Fiat Group Automobiles S.p.A., Magneti Marelli S.p.A., Ferrari S.p.A., Maserati S.p.A., Comau S.p.A., Teksid S.p.A., Fiat Services S.p.A. and other minor companies)
  • lease of property or office space (to Fiat Finance S.p.A., Fiat Group Marketing & Corporate Communication S.p.A., Fiat Partecipazioni S.p.A., Fiat I.T.E.M. S.p.A. and other minor companies) and the recovery of directors’ fees and expenses
  • provision of sureties and other guarantees (see Note 26) on issues of bonds (Fiat Finance and Trade Ltd. S.A. and Fiat Finance North America Inc.), bank loans and credit facilities (Fiat Finance S.p.A., Fiat Automoveis S.A.- FIASA, Fiat Finance and Trade Ltd. S.A., Fiat Finance North America Inc. and other minor subsidiaries), property rental payments (Fiat Group Automobiles S.p.A. and its subsidiaries) and to tax authorities for Group company VAT credits
  • management of current accounts, obtaining short-term and long-term loans and management of derivative financial instruments (Fiat Finance S.p.A.)
  • purchases of administrative and tax consultancy services and related IT systems (Fiat Services S.p.A. and Fiat I.T.E.M. S.p.A.), public relations services (Fiat Group Marketing & Corporate Communication S.p.A.), personnel and other management services (Fiat Servizi per l’Industria S.c.p.A.), security services (Orione S.c.p.A. and Sirio S.c.p.A.), supervisory and internal audit services (Fiat China Business Co. Ltd., Fiat do Brasil S.A., Fiat Services Polska Sp. z o.o. and Fiat Finance et Service S.A.), vehicle leases (Leasys S.p.A.), management and maintenance services and office space (Fiat Partecipazioni S.p.A.) and expense recoveries 

During 2013, intercompany transactions also related to management of the portfolio of investments in subsidiaries, whose effects on the Company’s earnings and financial position were as described above, in particular:

  • dividends received from investees (see Note 1)
  • subscription to capital increases of €1,650 million for Fiat Group Automobiles S.p.A., €70 million for Editrice La Stampa S.p.A. and €18 million for Teksid Aluminum S.r.l. to strengthen their capital structure in consideration of their financial results (see Note 11)

Related-party transactions (as defined under IAS 24) not involving subsidiaries are reported above under “Other related parties”. Those transactions essentially related to:

  • personnel, internal audit, financial advisory and other services (to CNH Industrial Group companies)
  • lease of office space (to CNH Industrial Group companies, Exor S.p.A., Fondazione Giovanni Agnelli and Giovanni Agnelli & C. S.a.p.az.) and cost charge-backs
  • payment for services provided by management personnel from CNH Industrial Group companies, together with related cost charge-backs
  • fees for the directors and statutory auditors of Fiat S.p.A., as well as the compensation component arising from stock option and stock grant plans for the Chief Executive Officer based on Fiat S.p.A. shares
  • compensation due to Fiat S.p.A. executives with strategic responsibilities

Finally, there were also the following related party transactions described in more detail above:

  • dividends received from Fiat Industrial S.p.A. (see Note 1)
  • subscription to the capital increase of RCS MediaGroup S.p.A. (see Note 11)