DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Ferrari N.V. |
Entity Central Index Key | 1,648,416 |
Document Type | 20-F |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Entity Common Stock, Shares Outstanding | 188,953,874 |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit or loss [abstract] | |||
Net revenues | € 3,416,890 | € 3,105,084 | € 2,854,369 |
Cost of sales | 1,650,860 | 1,579,690 | 1,498,806 |
Selling, general and administrative costs | 329,065 | 295,242 | 338,626 |
Research and development costs | 657,119 | 613,635 | 561,582 |
Other expenses, net | 6,867 | 24,501 | 11,035 |
Result from investments | 2,437 | 3,066 | 0 |
EBIT | 775,416 | 595,082 | 444,320 |
Net financial expenses | 29,260 | 27,729 | 10,151 |
Profit before taxes | 746,156 | 567,353 | 434,169 |
Income tax expense | 208,760 | 167,635 | 144,115 |
Net profit | 537,396 | 399,718 | 290,054 |
Net profit attributable to: | |||
Owners of the parent | 535,393 | 398,762 | 287,816 |
Non-controlling interests | € 2,003 | € 956 | € 2,238 |
Basic earnings per common share (in € per share) | € 2.83 | € 2.11 | € 1.52 |
Diluted earnings per common share (in € per share) | € 2.82 | € 2.11 | € 1.52 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of comprehensive income [abstract] | |||
Net profit | € 537,396 | € 399,718 | € 290,054 |
Items that will not be reclassified to the consolidated income statement in subsequent periods: | |||
(Losses)/Gains on remeasurement of defined benefit plans | (730) | (1,448) | 898 |
Related tax impact | 203 | (18) | (308) |
Total items that will not be reclassified to the consolidated income statement in subsequent periods | (527) | (1,466) | 590 |
Items that may be reclassified to the consolidated income statement in subsequent periods: | |||
Gains on cash flow hedging instruments | 34,971 | 51,086 | 8,234 |
Exchange differences on translating foreign operations | (15,346) | 4,118 | 13,344 |
Related tax impact | (9,757) | (16,943) | (2,600) |
Total items that may be reclassified to the consolidated income statement in subsequent periods | 9,868 | 38,261 | 18,978 |
Total other comprehensive income, net of tax | 9,341 | 36,795 | 19,568 |
Total comprehensive income | 546,737 | 436,513 | 309,622 |
Comprehensive income attributable to [abstract] | |||
Owners of the parent | 545,071 | 435,691 | 306,699 |
Non-controlling interests | € 1,666 | € 822 | € 2,923 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Goodwill | € 785,182 | € 785,182 |
Intangible assets | 440,456 | 354,394 |
Property, plant and equipment | 710,260 | 669,283 |
Investments and other financial assets | 30,038 | 33,935 |
Deferred tax assets | 94,091 | 119,357 |
Total non-current assets | 2,060,027 | 1,962,151 |
Inventories | 393,765 | 323,998 |
Trade receivables | 239,410 | 243,977 |
Receivables from financing activities | 732,947 | 790,377 |
Current tax receivables | 6,125 | 1,312 |
Other current assets | 45,441 | 53,729 |
Current financial assets | 15,683 | 16,276 |
Cash and cash equivalents | 647,706 | 457,784 |
Total current assets | 2,081,077 | 1,887,453 |
Total assets | 4,141,104 | 3,849,604 |
Equity and liabilities | ||
Equity attributable to owners of the parent | 778,678 | 324,995 |
Non-controlling interests | 5,258 | 4,810 |
Total equity | 783,936 | 329,805 |
Employee benefits | 84,159 | 91,024 |
Provisions | 197,392 | 215,227 |
Deferred tax liabilities | 10,977 | 13,111 |
Debt | 1,806,181 | 1,848,041 |
Other liabilities | 620,350 | 656,275 |
Other financial liabilities | 1,444 | 39,638 |
Trade payables | 607,505 | 614,888 |
Current tax payables | 29,160 | 41,595 |
Total equity and liabilities | € 4,141,104 | € 3,849,604 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of cash flows [abstract] | |||
Cash and cash equivalents at beginning of the year | € 457,784 | € 182,753 | € 134,278 |
Cash flows from operating activities: | |||
Profit before taxes | 746,156 | 567,353 | 434,169 |
Amortization and depreciation | 260,606 | 247,717 | 274,757 |
Provision accruals | 13,473 | 82,418 | 50,873 |
Result from investments | (2,437) | (3,066) | 0 |
Net finance costs | 29,260 | 27,729 | 10,151 |
Other non-cash expenses/(income) | 43,453 | (38,465) | 38,813 |
Net gains on disposal of property, plant and equipment and intangible assets | (2,585) | (2,652) | (6,964) |
Change in inventories | (88,483) | (33,187) | (2,885) |
Change in trade receivables | (1,745) | (88,847) | 15,693 |
Change in trade payables | 29,333 | 106,163 | (45,792) |
Change in receivables from financing activities | (44,123) | 404,568 | 120,902 |
Change in other operating assets and liabilities | (72,803) | 7,149 | (24,698) |
Finance income received | 4,402 | 2,684 | 5,347 |
Finance costs paid | (36,222) | (22,239) | (18,081) |
Income tax paid | (215,486) | (252,026) | (145,017) |
Total | 662,799 | 1,005,299 | 707,268 |
Cash flows used in investing activities: | |||
Investments in property, plant and equipment | (188,904) | (175,647) | (184,910) |
Investments in intangible assets | (202,506) | (166,340) | (171,033) |
Proceeds from the sale of property, plant and equipment and intangible assets | 3,663 | 2,931 | 1,370 |
Proceeds from exercising the Delta Topco option | 8,307 | 0 | 0 |
Proceeds from the sale of a majority stake in FFS GmbH | 0 | 18,595 | 0 |
Proceeds from the sale of assets and liabilities related to investment properties | 0 | 0 | 37,130 |
Change in investments and other financial assets | 0 | 0 | 377 |
Total | (379,440) | (320,461) | (317,066) |
Cash flows used in financing activities: | |||
Proceeds from bonds | 694,172 | 490,729 | 0 |
Proceeds from securitizations, net of repayments | 141,115 | 462,700 | 0 |
Proceeds from Term Loan and Bridge Loan | 0 | 0 | 1,994,712 |
Repayment of Term Loan | (795,254) | (700,846) | 0 |
Repayment of Bridge Loan | 0 | (500,000) | 0 |
Net change in other bank borrowings | 4,385 | (211,832) | 123,993 |
Cash distribution of reserves | (8,280) | 15,847 | (11,114) |
Net change in deposits in FCA Group cash management pools and financial liabilities with FCA Group | 0 | 135,094 | (2,396,422) |
Cash distribution of reserves | (119,985) | (86,905) | 0 |
Dividends paid to non-controlling interest | (1,218) | (17,207) | (53,942) |
Acquisition of non-controlling interest | 0 | 0 | (8,500) |
Change in equity | 0 | 1,384 | 0 |
Total | (85,065) | (411,036) | (351,273) |
Translation exchange differences | (8,372) | 1,229 | 9,546 |
Total change in cash and cash equivalents | 189,922 | 275,031 | 48,475 |
Cash and cash equivalents at end of the year | € 647,706 | € 457,784 | € 182,753 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - EUR (€) € in Thousands | Total | Share capital | Retained earnings and other reserves | Cash flow hedge reserve | Currency translation differences | Remeasurement of defined benefit plans | Equity attributable to owners of the parent | Non-controlling interests | |
Equity at beginning of period at Dec. 31, 2014 | € 2,478,313 | € 3,778 | € 2,503,614 | € (58,557) | € 29,912 | € (9,129) | € 2,469,618 | € 8,695 | |
Transaction with non-controlling interest | (8,500) | (2,602) | (2,602) | (5,898) | |||||
Net profit | 290,054 | 287,816 | 287,816 | 2,238 | |||||
Other comprehensive income/(loss) | 19,568 | 5,634 | 12,659 | 590 | 18,883 | 685 | |||
Restructuring | [1] | (2,800,000) | (2,800,000) | (2,800,000) | |||||
Share premium contribution | [2] | 1,162 | 1,162 | 1,162 | |||||
Reclassification | [3] | (2,117) | 2,117 | ||||||
Equity at end of period at Dec. 31, 2015 | (19,403) | 3,778 | (12,127) | (52,923) | 42,571 | (6,422) | (25,123) | 5,720 | |
Net profit | 399,718 | 398,762 | 398,762 | 956 | |||||
Other comprehensive income/(loss) | 36,795 | 34,143 | 4,252 | (1,466) | 36,929 | (134) | |||
Cash distribution of reserves | (86,905) | (86,905) | (86,905) | ||||||
Dividends to non-controlling interests | (1,732) | (1,732) | |||||||
Share-based compensation | [4] | 1,110 | 1,110 | 1,110 | |||||
Separation | [5] | 222 | (1,274) | 1,496 | 222 | ||||
Equity at end of period at Dec. 31, 2016 | 329,805 | 2,504 | 302,336 | (18,780) | 46,823 | (7,888) | 324,995 | 4,810 | |
Net profit | 537,396 | 535,393 | 535,393 | 2,003 | |||||
Other comprehensive income/(loss) | 9,341 | 25,214 | (15,009) | (527) | 9,678 | (337) | |||
Cash distribution of reserves | (119,985) | (119,985) | (119,985) | ||||||
Dividends to non-controlling interests | (1,218) | (1,218) | |||||||
Share-based compensation | [4] | 28,597 | 28,597 | 28,597 | |||||
Equity at end of period at Dec. 31, 2017 | € 783,936 | € 2,504 | € 746,341 | € 6,434 | € 31,814 | € (8,415) | € 778,678 | € 5,258 | |
[1] | Relates to the remaining principal amount of the note issued by the Company to FCA (“FCA Note”) recognized in connection with the Restructuring. | ||||||||
[2] | Relates to the effect of a share premium contribution made by FCA N.V. in connection with the Restructuring. | ||||||||
[3] | Relates to the reclassification of the actuarial gain recognized on the remeasurement of the defined benefit pension plan of the former Chairman of the Group. | ||||||||
[4] | Relates to the equity-settled Non-Executive Directors’ compensation and from 2017 also the equity incentive plan. See Note 21 “Equity” and Note 22 “Share-based Compensation” for additional details. | ||||||||
[5] | Reflects the effects of the Separation. |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2017 | |
Background and Basis of Presentation [Abstract] | |
BACKGROUND AND BASIS OF PRESENTATION | BACKGROUND AND BASIS OF PRESENTATION Background Ferrari is among the world’s leading luxury brands. The activities of Ferrari N.V. (herein referred to as “Ferrari” or the “Company” and together with its subsidiaries the “Group”) and its subsidiaries are focused on the design, engineering, production and sale of luxury performance sports cars. The cars are designed, engineered and produced in Maranello and Modena, Italy and sold in more than 60 markets worldwide through a network of 164 authorized dealers operating 185 points of sale. The Ferrari brand is licensed to a selected number of producers and retailers of luxury and lifestyle goods, with Ferrari branded merchandise also sold through a network of 18 Ferrari-owned stores and 30 franchised stores (including 8 Ferrari Store Junior), as well as on the Group’s website. To facilitate the sale of new and used cars, the Group provides various forms of financing, through cooperation and other agreements, to both clients and dealers. Ferrari also participates in the Formula 1 World Championship through Scuderia Ferrari. The activities of Scuderia Ferrari are the core element of Ferrari marketing and promotional activities and an important source of innovation supporting the technological advancement of Ferrari sports and street cars. Fiat S.p.A. (merged with and into Fiat Chrysler Automobiles N.V. in October 2014 , Fiat S.p.A. and Fiat Chrysler Automobiles are defined as “FCA” as the context requires and together with their subsidiaries the “FCA Group”) acquired 50 percent of Ferrari S.p.A. in 1969, and over time expanded its shareholding to 90 percent ownership, while the remaining 10 percent non-controlling interest was owned by Piero Ferrari. On October 29, 2014 , Fiat Chrysler Automobiles N.V. (“FCA”) announced its intention to separate Ferrari S.p.A. from FCA. The separation was completed on January 3, 2016 and occurred through a series of transactions (together defined as the “Separation”) including (i) an intra-group restructuring which resulted in the Company’s acquisition of the assets and business of Ferrari North Europe Limited and the transfer by FCA of its 90 percent shareholding in Ferrari S.p.A. to the Company, (ii) the transfer of Piero Ferrari’s 10 percent shareholding in Ferrari S.p.A. to the Company, (iii) the initial public offering of common shares of the Company on the New York Stock Exchange, and (iv) the distribution, following the initial public offering, of FCA’s remaining interest in the Company to FCA’s shareholders. Following the Separation, Ferrari operates as an independent, publicly traded company. The transactions described above in (i) and (ii) (referred to collectively as the “Restructuring”) were completed in October 2015. The Restructuring comprised: (i) a capital reorganization of the group under the Company, which has been accounted for in the consolidated financial statements as though it had occurred effective January 1, 2015 using FCA’s basis of accounting, and (ii) the issuance of the FCA Note, which has been reflected in the consolidated financial statements only from the date on which it occurred. The remaining steps of the Separation, which were completed between January 1 and January 3, 2016 through two consecutive demergers followed by a merger under Dutch law, have been reflected in these consolidated financial statements only from the date on which the related transactions occurred and had no impact on the Company’s results of operations or financial position. As part of the Separation a new entity, FE New N.V., was created. Pursuant to the demergers the shares in the Company held by FCA were ultimately transferred to FE New N.V., with FE New N.V. issuing shares in its capital to the shareholders of FCA. In connection with the demergers, the mandatory convertible security holders of FCA also received shares in FE New N.V. On completion of the Separation the Company was merged with and into FE New N.V. and FE New N.V. was renamed Ferrari N.V. Following the Separation, the cash pooling and financial liabilities with the FCA Group were settled and the relevant agreements were terminated. The derivative contracts that were previously held by FCA were novated to Ferrari S.p.A. On January 4, 2016 the Company also completed the listing of its common shares on the Mercato Telematico Azionario, the stock exchange managed by Borsa Italiana, under the ticker symbol RACE. At December 31, 2017, the fully paid up share capital of the Company amounted to €2,504 thousand , comprising common shares and special voting shares all with nominal value of €0.01 per share. At December 31, 2017, the Company had 188,953,874 common shares and 56,493,519 special voting shares issued and outstanding. References to the Company in these consolidated financial statements refer to Ferrari N.V. (formerly named FE New N.V.) following the Separation and to Ferrari N.V.’s predecessor (formerly named New Business Netherlands N.V.), prior to the completion of the Separation. Basis of preparation Authorization of consolidated financial statements and compliance with International Financial Reporting Standards These consolidated financial statements of Ferrari N.V. were authorized for issuance on February 23, 2018. The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The designation IFRS also includes International Accounting Standards (“IAS”) as well as all the interpretations of the International Financial Reporting Interpretations Committee (“IFRIC” and “SIC”). The consolidated financial statements are prepared under the historical cost method, modified as required for the measurement of certain financial instruments, as well as on a going concern basis. The Group’s presentation currency is the Euro, which is also the functional currency of the Company, and unless otherwise stated information is presented in thousands of Euro. Transactions with FCA The Group generates a portion of its net revenues from sale of goods to other FCA Group companies. In particular, net revenues generated from FCA Group companies amounted to €324,033 thousand , € 248,685 thousand and € 194,506 thousand for the years ended December 31, 2017 , 2016 and 2015 , respectively. See Note 29 for further details. The Group enters into commercial transactions with the FCA Group in the ordinary course of business. Receivables and payables are settled in the ordinary course of business and are recorded as assets and liabilities on the consolidated statement of financial position. Historically the Group received various services, including human resources, payroll, financial reporting and tax, customs, accounting and treasury, institutional and industrial relations, procurement of insurance coverage, internal audit, IT and systems, risk, corporate security, executive compensation, legal and corporate affairs from the FCA Group. Following the Separation, the Group has been gradually internalizing these services. The costs for the recharge of services received, including costs for termination packages, totaled €8,548 thousand , €15,021 thousand and €11,559 thousand for the years ended December 31, 2017 , 2016 and 2015 , respectively. These costs were recharged by the FCA Group based on the actual costs incurred for the services provided to the Group and are reflected as expenses according to their nature in the consolidated financial statements. Prior to the Separation the Group participated in a group-wide cash management system at FCA Group, where the operating cash management, main funding operations and liquidity investment of the Group were centrally coordinated by dedicated treasury companies. The Group accessed funds deposited in these accounts on a daily basis, had the contractual right to withdraw these funds on demand and terminate these cash management arrangements depending on FCA’s ability to pay at the relevant time. The deposits with FCA Group relating to the cash management system were recorded in the consolidated statement of financial position as “Deposits in FCA Group cash management pools” and the finance income earned on such deposits was recorded as net financial income/expenses in the consolidated income statement. Prior to the Separation, certain entities of the Group also entered into credit lines with FCA Group entities. These financial liabilities were provided primarily to finance the activities of the Group’s financial services portfolio in North America and were recorded as “Debt” in the consolidated statement of financial position. The finance expense associated with such financial liabilities was recorded in “Cost of sales” in the consolidated income statement. The deposits with FCA Group relating to the cash management and the credit lines with FCA Group entities were settled and terminated following the Separation. Management believes that the assumptions underlying the consolidated financial statements for the periods prior to the Separation, including the recharges of expenses from FCA, are reasonable. Nevertheless, for the periods prior to the Separation, the consolidated financial statements may not include all of the actual expenses that would have been incurred by the Group and may not reflect the consolidated results of operations, financial position and cash flows had Ferrari been a stand-alone company during those periods. Actual costs that would have been incurred if Ferrari had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Format of the financial statements The consolidated financial statements include the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of cash flows, consolidated statement of changes in equity and notes thereto, (the “Consolidated Financial Statements”). For presentation of the consolidated income statement, the Group uses a classification based on the function of expenses, as it is more representative of the format used for internal reporting and management purposes and is consistent with international practice. In the consolidated income statement, the Group also presents a subtotal for Earnings Before Interest and Taxes (EBIT). EBIT distinguishes between the profit before taxes arising from operating items and those arising from financing activities. EBIT is the primary measure used by the Group’s Chief Operating Decision Maker (“CODM”) to assess performance. For the consolidated statement of financial position, a mixed format has been selected to present current and non-current assets and liabilities, as permitted by IAS 1 paragraph 60. More specifically, the Consolidated Financial Statements include both industrial companies and financial services companies. The investment portfolios of the financial services companies are included in current assets as the investments will be realized in their normal operating cycle. However, the financial services companies obtain only a portion of their funding from the market; the remainder has historically been obtained mainly through funding from certain of the Group’s operating companies and, to a lesser extent, prior to the Separation, intercompany funding from FCA Group, which provided funding to the financial services entities as the need arose. This financial service structure within the Group does not allow the separation of financial liabilities funding the financial services operations (whose assets are reported within current assets) and those funding the industrial operations. Presentation of financial liabilities as current or non-current based on their date of maturity would not facilitate a meaningful comparison with financial assets, which are categorized on the basis of their normal operating cycle. Disclosure as to the due date of the debt is provided in Note 25. The consolidated statement of cash flows is presented using the indirect method. Starting from 2017, the Group has disclosed separately finance income received and finance costs paid on the consolidated statement of cash flows. The comparative information for the years ended December 31, 2016 and 2015 has been reclassified accordingly. This did not affect any of the subtotals presented on the consolidated statement of cash flows. New standards and amendments effective from January 1, 2017 The following new standards and amendments that are applicable from January 1, 2017 were adopted by the Group for the preparation of these Consolidated Financial Statements. • The Group adopted the amendments to IAS 12 - Income taxes. The amendments clarify how to account for deferred tax assets related to debt instruments measured at fair value. Specifically, the amendments clarify the requirements on recognition of deferred tax assets for unrealized losses in order to address diversity in practice. There was no effect from the adoption of these amendments. • The Group adopted the amendments to IAS 7 - Statement of Cash Flows, which requires companies to provide information about changes in their financing liabilities. The amendments are aimed at improving disclosures so that users of financial statements are better able to understand the changes in a company’s debt, including changes from cash flows and non-cash changes. There was no effect from the adoption of these amendments. • The Group adopted the amendments to IFRS 12 - Disclosure of Interests in Other Entities which were included in the Annual Improvements to IFRSs 2014 - 2016 Cycle . The amendments relate to disclosures of an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale in accordance with IFRS 5. There was no effect from the adoption of these amendments. New standards, amendments and interpretations not yet effective The standards, amendments and interpretations issued by the International Accounting Standards Board (“IASB”) that will have mandatory application in 2018 or subsequent years are listed below: In May 2014 , the IASB issued IFRS 15 - Revenue from Contracts with Customers . The standard requires a company to recognize revenue upon transfer of control of goods or services to a customer at an amount that reflects the consideration it expects to receive. This new revenue recognition model defines a five step process to achieve this objective. The updated guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In April 2016, the IASB issued amendments to the standard which do not change the underlying principles of the standard, but clarify how those principles should be applied. The amendments clarify how to identify a performance obligation in a contract, determine whether a company is a principal or an agent and determine whether the revenue from granting a license should be recognized at a point in time or over time. The amendments also provide two additional reliefs to reduce cost and complexity. The standard and amendments are effective for annual periods beginning on or after January 1, 2018, with earlier adoption permitted. The Group will adopt the standard and amendments for its annual period beginning on January 1, 2018. The Group has completed its analysis of the impact of adoption, including an analysis of each of the Group’s revenue streams by applying the five-step model provided under IFRS 15. In performing the analysis, the Group identified the main revenue streams (please refer to Note 4), and as permitted under the standard, applied the guidance in IFRS 15 to portfolios of contracts (or performance obligations) with similar characteristics in situations where the Group reasonably expects that the effects on the financial statements of applying the standard to the portfolio would not differ materially from applying the standard to the individual contracts (or performance obligations) within that portfolio. Based on the analysis performed, the Group concluded that the current accounting treatment of revenue from contracts with customers is in accordance with the requirements of IFRS 15. The Group will not apply any of the practical expedients permitted upon transition under the guidance in appendix C of IFRS 15. As permitted under IFRS 15, the Group will adopt the standard and amendments retrospectively with the cumulative effect of initial adoption recognized at the date of initial application (the “modified retrospective approach”), which has been determined to be January 1, 2018 and there will be no material impact on the Group’s consolidated financial statements upon initial adoption of the standard and amendments. In July 2014 the IASB issued IFRS 9 - Financial Instruments . The improvements introduced by the new standard includes a logical approach for classification and measurement of financial instruments driven by cash flow characteristics and the business model in which an asset is held, a single “expected loss” impairment model for financial assets and a substantially reformed approach for hedge accounting. The standard is effective, retrospectively with limited exceptions, for annual periods beginning on or after January 1, 2018 with earlier application permitted. In October 2017 the IASB issued amendments to IFRS 9 that allow, under certain conditions, for a prepayable financial asset with negative compensation payments to be measured at amortized cost or at fair value through other comprehensive income. The final amendments also contain a clarification relating to the accounting for a modification or exchange of a financial liability measured at amortized cost that does not result in the derecognition of the financial liability. The amendments are effective on or after January 1, 2019. The Group has completed its analysis of the impact of adoption, including an analysis of each of the Group’s classes of financial assets, financial liabilities and derivative instruments by applying the requirements provided by the new standard. Based on the analysis performed, the Group concluded that the current accounting treatment of financial assets, financial liabilities and derivative instruments is in accordance with the requirements of IFRS 9 and, therefore, there will be no material impact on the Group’s consolidated financial statements upon initial adoption of the standard and related amendments. In January 2016, the IASB issued IFRS 16 - Leases which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract and replaces the previous leases standard, IAS 17 - Leases. IFRS 16, which is not applicable to service contracts, but only applicable to leases or lease components of a contract, defines a lease as a contract that conveys to the customer (lessee) the right to use an asset for a period of time in exchange for consideration. IFRS 16 eliminates the classification of leases for the lessee as either operating leases or finance leases as required by IAS 17 and, instead, introduces a single lessee accounting model whereby a lessee is required to recognize assets and liabilities for all leases with a term that is greater than 12 months, unless the underlying asset is of low value, and to recognize depreciation of lease assets separately from interest on lease liabilities in the income statement. As IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17, a lessor will continue to classify its leases as operating leases or finance leases and to account for those two types of leases differently. IFRS 16 is effective from January 1, 2019 with early adoption allowed only if IFRS 15 - Revenue from Contracts with Customers is also applied. The Group will not early adopt the standard and is currently evaluating the method of implementation and impact of adoption. In June 2016, the IASB issued amendments to IFRS 2 - Share-Based Payment , which provide requirements on the accounting for (i) the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments; (ii) share-based payment transactions with a net settlement feature for withholding tax obligations; and (iii) a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled. The amendments are effective for annual periods beginning on or after January 1, 2018 with early application permitted. The Group will apply the amendments to share-based payment transactions under the Group’s equity incentive plan that contains a net settlement feature for withholding tax obligations, resulting in such transactions being classified in their entirety as equity-settled. The Group does not expect any additional impact from the adoption of these amendments. In December 2016, the IASB issued Annual Improvements to IFRSs 2014 - 2016 Cycle , which has amendments to three Standards: IFRS 12 - Disclosure of Interests in Other Entities (effective date of January 1, 2017) , IFRS 1- First-time Adoption of International Financial Reporting Standards (effective date of January 1, 2018) and IAS 28 - Investments in Associates and Joint Ventures (effective date of January 1, 2018). The amendments clarify, correct or remove redundant wording in the related IFRS Standard and are not expected to have a material impact upon adoption. In December 2016, the IASB issued IFRIC Interpretation 22 - Foreign Currency Transactions and Advance Consideration which addresses the exchange rate to use in transactions that involve advance consideration paid or received in a foreign currency. The interpretation is effective on or after January 1, 2018. The Group is currently evaluating the impact of adoption of this interpretation. In May 2017, the IASB issued IFRS 17 - Insurance Contracts which establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued as well as guidance relating to reinsurance contracts held and investment contracts with discretionary participation features issued. IFRS 17 is effective on or after January 1, 2021 with early adoption allowed if IFRS 15 - Revenue from Contracts with Customers and IFRS 9 - Financial Instruments are also applied. The Group does not expect any impact from the adoption of this standard. In June 2017, the IASB issued IFRIC Interpretation 23 - Uncertainty over Income Tax Treatments which provides requirements regarding how to reflect uncertainties in accounting for income taxes. The interpretation is effective on or after January 1, 2019. The Group is currently evaluating the impact of adoption of this interpretation. In October 2017 the IASB issued amendments to IAS 28 - Long Term Interests in Associates and Joint Ventures to clarify that an entity applies IFRS 9 to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied. The amendment is effective on or after January 1, 2019. The Group does not expect a material impact from the adoption of these amendments. In December 2017, the IASB issued Annual Improvements to IFRSs 2015 - 2017 Cycle , which has amendments to the following four Standards: IFRS 3 - Business Combinations, in relation to obtaining control of a business which was previously accounted for as an interest in a joint operation, IFRS 11- Joint Arrangements, in relation to obtaining joint control of a business which was previously accounted for as a joint operation, IAS 12 - Income Taxes, clarifying the treatment of taxes in relation to dividend payments and IAS 23 - Borrowing Costs, clarifying the treatment of borrowings which were previously capitalized when the related asset is ready for its intended use or sale. The amendments are effective on or after January 1, 2019. The Group is currently evaluating the impact of adoption of these amendments. In February 2018, the IASB issued amendments to IAS 19 - Employee Benefits . When there is a change to a defined benefit plan (an amendment, curtailment or settlement) the amendments require that a company use the updated assumptions from the remeasurement of a net defined benefit liability or asset to determine current service cost and net interest for the remainder of the reporting period after the change to the plan. These amendments are effective on or after January 1, 2019. The Group does not expect a material impact from the adoption of these amendments. 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 on which the Group achieves control. 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 any non-controlling interests (“NCI”) in the acquiree on an acquisition-by-acquisition 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 the owners of the parent and to the non-controlling interests. Total comprehensive income/(loss) of subsidiaries is attributed to owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. All significant intra-group balances and transactions and any unrealized gains and losses arising from intra-group transactions are eliminated in preparing the Consolidated Financial Statements. Subsidiaries are deconsolidated from the date when 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. In 2016 the Group sold a majority stake in Ferrari Financial Services GmbH. From such date, the Group’s remaining interest has been remeasured at fair value and accounted for using the equity method. Interests in associates 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 without having control or joint control over those policies. Associates are accounted for using the equity method of accounting from the date significant influence is obtained. Under the equity method, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit/(loss) and other comprehensive income/(loss) of the investee. The Group’s share of the investee’s profit/(loss) is recognized in the consolidated income statement. Distributions received from an investee reduce the carrying amount of the investment. Post-acquisition movements in other comprehensive income/(loss) are recognized in other comprehensive income/(loss) with a corresponding adjustment to the carrying amount of the investment. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the 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 an associate exceeds the Group’s interest in that 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 associate. The Group discontinues the use of the equity method from the date the investment ceases to be an associate or when it is classified as available-for-sale. Interests in joint operations A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. When the Group undertakes its activities under joint operations, it recognizes in relation to its interest in the joint operation: (i) its assets, including its share of any assets held jointly, (ii) its liabilities, including its share of any liabilities incurred jointly, (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. Foreign currency transactions The functional currency of the Group’s entities is the currency of their primary economic environment. In individual companies, transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the foreign currency exchange rate prevailing at that date. Exchange differences arising on the settlement of monetary items or on reporting monetary items at rates different from those at which they were initially recorded during the period or in previous financial statements are recognized in the consolidated income statement. Consolidation of foreign entities All assets and liabilities of foreign consolidated companies with a functional currency other than the Euro are translated using the closing rates at the date of the consolidated statement of financial position. Income and expenses are translated into Euro at the average foreign currency exchange rate for the period. Translation differences resulting from the application of this method are classified as currency translation differences within other comprehensive income/(loss) until the disposal of the investment. Average foreign currency exchange rates for the period are used to translate the cash flows of foreign subsidiaries in preparing the consolidated statement of cash flows. Goodwill, assets acquired and liabilities assumed arising from the acquisition of entities with a functional currency other than the Euro are recognized in the Consolidated Financial Statements in the functional currency and translated at the foreign currency exchange rate at the acquisition date. These balances are translated at subsequent balance sheet dates at the relevant foreign currency exchange rate. The principal foreign currency exchange rates used to translate other currencies into Euro were as follows: 2017 2016 2015 Average At December 31, Average At December 31, Average At December 31, U.S. Dollar 1.1297 1.1993 1.1069 1.0541 1.1094 1.0887 Pound Sterling 0.8767 0.8872 0.8194 0.8562 0.7259 0.7340 Swiss Franc 1.1117 1.1702 1.0901 1.0739 1.0677 1.0835 Japanese Yen 126.7112 135.0100 120.2169 123.4000 134.2956 131.0700 Chinese Yuan 7.6290 7.8044 7.3519 7.3202 6.9723 7.0608 Australian Dollar 1.4732 1.5346 1.4883 1.4596 1.4775 1.4897 Canadian Dollar 1.4647 1.5039 1.4659 1.4188 1.4184 1.5116 Singapore Dollar 1.5588 1.6024 1.5275 1.5234 1.5253 1.5417 Hong Kong Dollar 8.8045 9.3720 8.5924 8.1751 8.6014 8.4376 Intangible assets Goodwill 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. Development costs Development costs for car project production and related components, engines and systems are recognized as an asset if, and only if, both of the following conditions under IAS 38 - Intangible Assets are met: that development costs can be measured reliably and that the technical feasibility of the product, volumes and pricing support the view that the development expenditure will generate future economic benefits. Capitalized development costs include all direct and indirect costs that may be directly attributed to the development process. Capitalized development costs are amortized on a straight-line basis from the start of production over the estimated lifecycle of the model and the useful life of the components (generally between four and eight years). All other research and development costs are expensed as incurred. In particular the Group incurs significant research and development costs through the Formula 1 racing activities. These costs are considered fundamental to the development of the sports and street car models and prototypes. The model for the Formula 1 racing activities continually evolves and as such these costs are expensed as incurred. Patents, concessions and licenses Separately acquired patents, concessions and licenses are initially recognized at cost. Patents, concessions and licenses acquired in a business combination are initially recognized at fair value. Patents, concessions and licenses are amortized on a straight-line basis over their useful economic lives, which is generally between three and five years. Other intangible assets Other intangible assets mainly relate to the registration of trademarks and have been recognized in accordance with IAS 38 - Intangible Assets , where it is probable that the use of the asset will generate future economic benefits for the Group and where the cost of the asset can be measured reliably. Other intangible assets are measured at cost less any impairment losses and amortized on a straight-line basis over their estimated life, which is generally between three and five years. Property, plant and equipment Cost Property, plant and equipment is initially recognized at cost which comprises 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, capitalized borrowing costs and any initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Self-constructed assets are initially recognized at production cost. Subsequent expenditures and the cost of replacing parts of an asset are capitalized only if they increase the future economic benefits embodied in that asset. All other expenditures are expensed as incurred. When such replacement costs are capitalized, the carrying amount of the parts that are replaced is recognized as a loss in the period of replacement in the consolidated income statement. Depreciation Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Depreciation rates Industrial buildings 3% - 20% Plant, machinery and equipment 5% - 22% Other assets 12% - 25% Land is not depreciated. If the asset being depreciated consists of separately identifiable components whose useful lives differ from that of the other parts making up the asset, depreciation is charged separately for each of its component parts through application of the ‘component approach’. Borrowing costs General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use. All other borrowing costs are expensed in net financial expenses if related to the Group’s industrial activities or cost of sales if related to the Group’s financial services activities in the consolidated income statement, as incurred. Impairment of assets The Group continuously monitors its operations to assess whether there is any indication that its intangible assets (including development costs) and its property, plant and equipment may be impaired. Goodwill is tested for impairment annually or more frequently, if there is an indication that an asset 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. Where an impairment loss for assets other than goodwill, subsequently 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 immediately. Financial instruments Presentation Financial instruments held by the Group are presented in the Consolidated Financial Statements as described in the following paragraphs. Investments and other financial assets include investment properties, investments in unconsolidated companies and other non-current financial assets. Current financial assets, as defined in IAS 39 - Financial Instruments: Recognition and Measurement , include trade receivables, receivables from financing activities and current financial assets (which include derivative financial instruments stated at fair value), deposits in FCA Group cash management pools and cash and cash equivalents. Financial liabilities comprise debt (which include bank borrowings and financial liabilities with FCA Group) and other financial liabilities (which mainly include derivative financial instruments stated at fair value), trade payables and other liabilities. Measurement Non-current financial assets other than investments, as well as current financial assets and financial liabilities, are accounted for in accordance with IAS 39 - Financial Instruments: Recognition and Measurement . Current financial assets are recognized on the basis of the settlement date and, on initial recognition, are measured at acquisition cost. Subsequent to initial recognition, current financial assets are measured at fair value. When market prices are not directly available, the fair value of current financial assets are measured using appropriate valuation techniques (e.g. discounted cash flow analysis based on market information available at the balance sheet date). Loans and receivables which are not held by the Group for trading (loans and receivables originating in the ordinary course of business) and equity investments whose fair value cannot be determined reliably, are measured, to the extent that they have a fixed term, at amortized cost, using the effective interest rate method. When the financial assets do not have a fixed term, they are measured at acquisition cost. Receivables with maturities of over one year which bear no interest or an interest rate significantly lower than market rates are discounted using market rates. Assessments are made regularly as to whether there is any objective evidence that a financial asset or group of assets may be impaired. If any such evidence exists, an impairment loss is included in the consolidated income statement for the period within net financial income/(expenses). Except for derivative instruments, financial liabilities are measured at amortized cost using the effective interest rate method. Derivative financial instruments Derivative financial instruments are used for economic hedging purposes, in order to reduce currency risks. In accordance with IAS 39, derivative financial instruments qualify for hedge accounting only when at the inception of the hedge there is formal designation and documentation of the hedging relationship, the hedge is expected to be highly effective, its effectiveness can be reliably measured and it is highly effective throughout the financial reporting periods for which it is designated. All derivative financial instruments are measured at fair value. When derivative financial instruments qualify for hedge accounting, the following accounting treatments apply: • Cash flow hedges - Where a derivative financial instrument is designated as a hedge of the exposure to variability in future cash flows of a recognized asset or liability or a highly probable forecasted transaction and could affect the consolidated income statement, the effective portion of any gain or loss on the derivative financial instrument is recognized directly in other comprehensive income/(loss). The cumulative gain or loss is reclassified from other comprehensive income/(loss) to the consolidated income statement at the same time as the economic effect arising from the hedged item affects the consolidated |
SCOPE OF CONSOLIDATION
SCOPE OF CONSOLIDATION | 12 Months Ended |
Dec. 31, 2017 | |
Scope of Consolidation [Abstract] | |
SCOPE OF CONSOLIDATION | SCOPE OF CONSOLIDATION Ferrari N.V. is the parent company of the Group and it holds, directly and indirectly, interests in the Group’s main operating companies. The Group’s scope of consolidation at December 31, 2017 and 2016 was as follows: At December 31, 2017 At December 31, 2016 Name Country Nature of business Shares held by the Group Shares held by NCI Shares held by the Group Shares held by NCI Directly held interests Ferrari S.p.A. Italy Manufacturing 100 % — % 100 % — % Indirectly held through Ferrari S.p.A. Ferrari North America Inc. USA Importer and distributor 100 % — % 100 % — % Ferrari Japan KK Japan Importer and distributor 100 % — % 100 % — % Ferrari Australasia Pty Limited Australia Importer and distributor 100 % — % 100 % — % Ferrari (HK) Limited Hong Kong Importer and distributor 100 % — % 100 % — % Ferrari International Cars Trading (Shanghai) Co. L.t.d. China Importer and distributor 80 % 20 % 80 % 20 % Ferrari Far East Pte Limited Singapore Service company 100 % — % 100 % — % Ferrari Management Consulting (Shanghai) Co. L.t.d. China Service company 100 % — % 100 % — % Ferrari South West Europe S.a.r.l. France Service company 100 % — % 100 % — % Ferrari Central East Europe GmbH Germany Service company 100 % — % 100 % — % G.S.A. S.A. Switzerland Service company 100 % — % 100 % — % Ferrari North Europe Limited (1) UK Service company n.a. n.a. 100 % — % Mugello Circuit S.p.A. Italy Racetrack management 100 % — % 100 % — % Ferrari Financial Services S.p.A. Italy Financial services 100 % — % 100 % — % Indirectly held through other Group entities Ferrari Financial Services Inc. (2) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction, LLC (3) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction - Lease, LLC (3) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction - Select, LLC (3) USA Financial services 100 % — % 100 % — % Ferrari Financial Services Titling Trust (3) USA Financial services 100 % — % 100 % — % 410, Park Display Inc. (4) USA Retail 100 % — % 100 % — _____________________________ (1) On June 30, 2017, the liquidation process of Ferrari North Europe Limited was completed (2) Shareholding held by Ferrari Financial Services S.p.A. (3) Shareholding held by Ferrari Financial Services Inc. (“FFS Inc”). (4) Shareholding held by Ferrari North America Inc. On April 30, 2016, the liquidation process of Ferrari Financial Services Japan KK was completed. At December 31, 2015 Ferrari Financial Services Japan KK was a wholly owned subsidiary. Ferrari Financial Services GmbH (“FFS GmbH”) was a subsidiary of the Group until November 7, 2016 when the Group sold a majority stake in FFS GmbH to FCA bank. Upon completion of the transaction, FFS GmbH was deconsolidated and the 49.9 percent interest in FFS GmbH retained by the Group was accounted for using the equity method. See Note 17. As permitted by IFRS, certain subsidiaries (mainly dormant companies or entities with insignificant operations) are excluded from consolidation on a line-by-line basis and are accounted for at cost. Their aggregate assets and revenues represent less than 1 percent of the Group’s respective amounts for each period and at each date presented by these Consolidated Financial Statements. Non-controlling interests The non-controlling interests at December 31, 2017 and 2016 relate to Ferrari International Cars Trading (Shanghai) Co. L.t.d. (“FICTS”), in which the Group holds an 80 percent interest. The net profit attributable to non-controlling interests for the years ended December 31, 2017 , 2016 and 2015 relates to the non-controlling interest in FICTS and for the year ended December 31, 2015 also the non-controlling interest in Ferrari Financial Services S.p.A.: At December 31, 2017 2016 (€ thousand) Equity attributable to non-controlling interests - FICTS 5,258 4,810 For the years ended December 31, 2017 2016 2015 (€ thousand) Net profit attributable to non-controlling interests 2,003 956 2,238 Of which attributable to FICTS 2,003 956 1,351 Of which attributable to Ferrari Financial Services S.p.A. — — 887 In July 2015 the Group acquired the remaining 10 percent of non-controlling interest of its subsidiary Ferrari Financial Services S.p.A. from Aldasa GmbH, and as a result from such date the Group owns 100 percent of the share capital of Ferrari Financial Services S.p.A. The non-controlling interests in FICTS and Ferrari Financial Services S.p.A. are not considered to be significant to the Group for the relevant periods. Restrictions The Group may be subject to restrictions which limit its ability to use cash in relation to its interest in FICTS. In particular, cash held in China is subject to certain repatriation restrictions (and may only be repatriated as dividends). Based on the Group’s review, it does not believe that such transfer restrictions have any adverse impacts on its ability to meet liquidity requirements. Cash held in China at December 31, 2017 amounted to €66,456 thousand ( €47,555 thousand at December 31, 2016 ). Cash collected from the settlement of receivables or lines of credit pledged as collateral is subject to certain restrictions regarding its use and is principally applied to repay principal and interest of the funding. Such cash amounted to €28,230 thousand at December 31, 2017 ( €19,411 thousand at December 31, 2016 ). Segment reporting The Group has determined that it has one operating and one reportable segment based on the information reviewed by its CODM in making decisions regarding allocation of resources and to assess performance. Use of estimates The Consolidated Financial Statements are prepared in accordance with IFRS which require the use of estimates, judgments and assumptions that affect the carrying amount of assets and liabilities, the disclosure of contingent assets and liabilities and the amounts of income and expenses recognized. The estimates and associated assumptions are based on elements that are known when the financial statements are prepared, on historical experience and on any other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed periodically and continuously by the Group. If the items subject to estimates do not perform as assumed, then the actual results could differ from the estimates, which would require adjustment accordingly. The effects of any changes in estimate are recognized in the consolidated income statement in the period in which the adjustment is made, or prospectively in future periods. The items requiring estimates for which there is a risk that a material difference may arise in respect of the carrying amounts of assets and liabilities in the future are discussed below. Recoverability of non-current assets with definite useful lives Non-current assets with definite useful lives include property, plant and equipment and intangible assets. Intangible assets with definite useful lives mainly consist of capitalized development costs. The Group periodically reviews the carrying amount of non-current assets with definite useful lives when events and circumstances indicate that an asset may be impaired. Impairment tests are performed by comparing the carrying amount and the recoverable amount of the cash-generating unit (“CGU”). The recoverable amount is the higher of the CGU’s fair value less costs of disposal and its value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU. For the period covered by these Consolidated Financial Statements, the Group has not recognized any impairment charges for non-current assets with definite useful lives. Recoverability of goodwill The Group’s goodwill at December 31, 2017 amounted to €785,182 thousand and primarily relates to the Separation, as a result of which the Company recorded goodwill of €780,542 thousand reflecting FCA’s recorded goodwill relating to Ferrari S.p.A. In accordance with IAS 36 - Impairment of Assets , goodwill is not amortized and is tested for impairment annually or more frequently if facts or circumstances indicate that the asset may be impaired. As the Group is composed of one operating segment, goodwill is tested at the Group level, which represents the lowest level within the Group at which goodwill is monitored for internal management purposes in accordance with IAS 36. The impairment test is performed by comparing the carrying amount (which mainly comprises property, plant and equipment, goodwill and capitalized development costs) and the recoverable amount of the CGU. The recoverable amount of the CGU is the higher of its fair value less costs of disposal and its value in use. Development costs Development costs are capitalized if the conditions under IAS 38 - Intangible Assets have been met. The starting point for capitalization is based upon the technological and commercial feasibility of the project, which is usually when a product development project has reached a defined milestone according to the Group’s established product development model. Feasibility is based on management’s judgment which is formed on the basis of estimated future cash flows. Capitalization ceases and amortization of capitalized development costs begins on start of production of the relevant project. The amortization of development costs requires management to estimate the lifecycle of the related model. Any changes in such assumptions would impact the amortization charge recorded and the carrying amount of capitalized development costs. The periodic amortization charge is derived after determining the expected lifecycle of the related model and, if applicable any expected residual value at the end of its life. Increasing an asset’s expected lifecycle or its residual value would result in a reduced amortization charge in the consolidated income statement. The useful lives and residual values of the Group’s models are determined by management at the time of capitalization and reviewed annually for appropriateness and recoverability. The lives are based on historical experience with similar assets as well as anticipation of future events which may impact their life such as changes in technology. Historically changes in useful lives and residual values have not resulted in material changes to the Group’s amortization charge or estimated recoverability of the related assets. For the year ended December 31, 2017 , the Group capitalized development costs of €185,115 thousand ( €141,396 thousand for the year ended December 31, 2016 ). Product warranties liabilities The Group establishes reserves for product warranties at the time the sale is recognized. The Group issues various types of product warranties under which the performance of products delivered is generally guaranteed for a certain period or term, which is generally defined by the legislation in the country where the car is sold. The reserve for product warranties includes the expected costs of warranty obligations imposed by law or contract, as well as the expected costs for policy coverage. The estimated future costs of these actions are principally based on assumptions regarding the lifetime warranty costs of each car line and each model year of that car line, as well as historical claims experience for the Group’s cars. 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 actions to address various client satisfaction, safety and emissions issues related to cars sold. Included in the reserve is the estimated cost of these services and recall actions. The estimated future costs of these actions are based primarily on historical claims experience for the Group’s cars and the cost of parts and services to be incurred in the specified activities, and are recognized at the time when they are probable and reasonably estimable. Estimates of the future costs of these actions are inevitably imprecise due to several uncertainties, including the number of cars affected by a service or recall 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. The estimate of warranty and additional service obligations is periodically reviewed during the year. 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. 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. Share-based compensation The Group accounts for its equity incentive plan in accordance with IFRS 2 - Share-based Payment, which requires the recognition of share-based compensation expense based on the fair value of the awards granted. Share-based compensation for equity-settled awards containing market performance conditions is measured at the grant date of the awards using the Monte Carlo simulation model, which requires the input of subjective assumptions, including the expected volatility of our common stock, the dividend yield, interest rates and the correlation coefficient between our common stock and the relevant market index. The probability that the Group will achieve a certain level of Total Shareholder Return performance compared to the defined peer group is also considered. As a result, at the grant date management is required to make key assumptions and estimates regarding conditions that will occur in the future, which inherently involves uncertainty. Therefore, the amount of share-based compensation recognized has been effected by the significant assumptions and estimates used. Other contingent liabilities The Group makes provisions in connection with pending or threatened disputes or legal proceedings when it is considered probable that there will be an outflow of funds and when the amount can be reasonably estimated. If an outflow of funds becomes possible but the amount cannot be estimated, the matter is disclosed in the notes to the Consolidated Financial Statements. The Group is the subject of legal and tax proceedings covering a wide range of matters in various jurisdictions. Due to the uncertainty inherent in such matters, it is difficult to predict the outflow of funds that could result from such disputes with any certainty. Moreover, the cases and claims against the Group often derive from complex legal issues which are subject to a differing degree of uncertainty, including the facts and circumstances of each particular case and the manner in which applicable law is likely to be interpreted and applied to such fact and circumstances, and the jurisdiction and the different laws involved. The Group monitors the status of pending legal proceedings and consults with experts on legal and tax matters on a regular basis. It is therefore possible that the provisions for the Group’s legal proceedings and litigation may vary as the result of future developments in pending matters. Litigation Various legal proceedings, claims and governmental investigations are pending against the Group on a wide range of topics, including car safety, emissions and fuel economy, early warning reporting, dealer, supplier and other contractual relationships, intellectual property rights and product warranties matters. Some of these proceedings allege defects in specific component parts or systems (including airbags, seatbelts, brakes, transmissions, engines and fuel systems) in various car models or allege general design defects relating to car 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 could 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. An accrual is established in connection with pending or threatened litigation if a loss is probable and a reliable estimate can be made. Since these accruals represent estimates, it is reasonably possible that the resolution of some of these matters could require the Group to make payments in excess of the amounts accrued. It is also reasonably possible that the resolution of some of the matters for which accruals could not be made may require the Group to make payments in an amount or range of amounts that could not be reasonably estimated. The term “reasonably possible” is used herein to mean that the chance of a future transaction or event occurring is more than remote but less than probable. Although the final resolution of any such matters could have a material effect on the Group’s operating results for the particular reporting period in which an adjustment of the estimated reserve is recorded, it is believed that any resulting adjustment would not materially affect the consolidated financial position of the Group. |
NET REVENUES
NET REVENUES | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
NET REVENUES | NET REVENUES Net revenues are as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Cars and spare parts 2,455,955 2,180,045 2,080,228 Engines 373,313 337,924 218,657 Sponsorship, commercial and brand 494,082 488,514 441,128 Other 93,540 98,601 114,356 Total net revenues 3,416,890 3,105,084 2,854,369 Other net revenues primarily include interest income generated by financial service activities and net revenues from the management of the Mugello racetrack. |
COST OF SALES
COST OF SALES | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
COST OF SALES | COST OF SALES Cost of sales in 2017 , 2016 and 2015 amounted to €1,650,860 thousand , €1,579,690 thousand and €1,498,806 thousand , respectively, comprising mainly of expenses incurred in the manufacturing and distribution of cars and spare parts, including the engines sold to Maserati and engines rented to other Formula 1 racing teams, of which the cost of materials, components and labor are the most significant elements. The remaining costs principally include depreciation, amortization, insurance and transportation costs. Cost of sales also includes warranty and product-related costs, which are estimated and recorded at the time of shipment of the car. Cost of sales in 2016 included €36,994 thousand related to the charges for Takata airbag inflator recalls. See Note 24 “Provisions” for additional details. Interest and other financial expenses from financial services companies included within cost of sales in 2017 , 2016 and 2015 amounted to €30,945 thousand , €21,307 thousand and €23,702 thousand , respectively. |
SELLING, GENERAL AND ADMINISTRA
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | SELLING, GENERAL AND ADMINISTRATIVE COSTS General and administrative costs in 2017 , 2016 and 2015 amounted to €155,581 thousand , €148,812 thousand and €174,451 thousand , respectively, and mainly consist of administration expenses and other general expenses that are not directly attributable to sales, manufacturing or research and development functions. In 2015 , general and administrative costs include €15,789 thousand in costs related to the initial public offering process and €19,106 thousand related to the one off extra bonus paid to employees for the initial public offering. Selling costs in 2017 , 2016 and 2015 amounted to €173,484 thousand , €146,430 thousand and €164,175 thousand , respectively, and mainly consist of costs for marketing and events, sales personnel, and retail stores. Marketing and events expenses consist primarily of costs in connection with trade and auto shows, media and client events for the launch of new models as well as sponsorship and indirect marketing costs incurred through the Formula 1 racing team, Scuderia Ferrari. |
RESEARCH AND DEVELOPMENT COSTS
RESEARCH AND DEVELOPMENT COSTS | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
RESEARCH AND DEVELOPMENT COSTS | RESEARCH AND DEVELOPMENT COSTS Research and development costs are as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Research and development costs expensed during the year 556,617 509,580 446,726 Amortization of capitalized development costs 100,502 104,055 114,856 Total research and development costs 657,119 613,635 561,582 The main component of research and development costs expensed during the period relate to research and development expenses to support the innovation of our product range and components, in particular, in relation to hybrid technology and Formula 1 developments. Research and development costs also include amortization of capitalized development costs. In 2016 , the U.S. National Highway Traffic Safety Administration (“NHTSA”) published new Visual-Manual Driver Distraction Phase II draft guidelines. These guidelines focus, among other things, on the need to modify the design of car devices and other driver interfaces to minimize driver distraction. The Group is evaluating these guidelines and their potential impact on the Group’s results of operations and financial position and determining what steps and/or countermeasures, if any, the Group will need to make. |
OTHER EXPENSES, NET
OTHER EXPENSES, NET | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
OTHER EXPENSES, NET | OTHER EXPENSES, NET Other expenses, net are as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Other expenses 11,830 30,249 33,137 Other income (4,963 ) (5,748 ) (22,102 ) Other expenses, net 6,867 24,501 11,035 Other expenses in 2017 include €5,593 thousand related to indirect taxes and €6,237 thousand related to miscellaneous expenses. Other income in 2017 includes €2,585 thousand of gain on the disposal of property plant and equipment, €1,747 thousand related to rental income and €631 thousand related to miscellaneous income. Other expenses in 2016 include €15,469 thousand related to provisions, primarily related to disputes with a distributor, €5,628 thousand related to indirect taxes and €9,152 thousand related to miscellaneous expenses. Other income in 2016 includes €2,903 thousand of gain on the disposal of property plant and equipment, €1,569 thousand related to rental income and €1,276 thousand related to miscellaneous income. Other expenses in 2015 include €12,933 thousand related to provisions, of which €8,822 thousand related to legal proceedings and disputes and €4,111 thousand primarily related to disputes with suppliers, employees and other parties relating to contracts. The most significant accruals to the provision for legal proceedings and disputes recognized in 2015 relate to litigation with a former distributor. Other income in 2015 includes €5,802 thousand for the gain on the sale of a group of assets related to the investment properties in Modena, Italy, which the Group sold to the tenant, Maserati S.p.A., an FCA Group company. The total sale price (as determined by an independent valuation) amounted to €37,130 thousand and was received in the third quarter of 2015 . At the transaction date the net book value of the assets and liabilities disposed of was €31,328 thousand . |
RESULT FROM INVESTMENTS
RESULT FROM INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Investments Schedule [Abstract] | |
RESULT FROM INVESTMENTS | RESULT FROM INVESTMENTS Result from investments of €2,437 thousand in 2017 related to the Group’s proportionate share of FFS GmbH’s net profit. Result from investments of €3,066 thousand in 2016 includes €660 thousand related to the gain on the sale of a majority stake in FFS GmbH to FCA Bank on November 7, 2016 , €1,489 thousand related to the gain on the fair value measurement of the non-controlling interest retained in FFS GmbH and €917 thousand related to the Group’s proportionate share of FFS GmbH’s net profit for the period from November 7, 2016 to December 31, 2016 . See Note 17 for additional details. |
NET FINANCIAL EXPENSES
NET FINANCIAL EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Net financial (expenses)/income [Abstract] | |
NET FINANCIAL EXPENSES | NET FINANCIAL EXPENSES The following table sets out details of financial income and expenses, including the amounts reported in the consolidated income statement within the net financial expenses line item, as well as interest income from financial services activities, recognized under net revenues, and interest expenses and other financial charges from financial services activities, recognized under cost of sales. For the years ended December 31, 2017 2016 2015 Financial income: (€ thousand) Interest income from bank deposits 1,153 843 54 Other interest income and financial income 5,284 1,841 6,473 Interest income and other financial income 6,437 2,684 6,527 Finance income from financial services companies 50,254 58,236 61,587 Total financial income 56,691 60,920 68,114 Total financial income relating to: Industrial companies (A) 6,437 2,684 6,527 Financial services companies (reported in net revenues) 50,254 58,236 61,587 Financial expenses: Interest expenses on financial liabilities with FCA Group — — (15,745 ) Capitalized borrowing costs 1,578 1,519 1,530 Other interest cost and financial expenses (3,775 ) (4,090 ) (3,163 ) Interest expenses and other financial expenses (2,197 ) (2,571 ) (17,378 ) Interest expenses from banks (23,057 ) (27,042 ) (3,357 ) Interest on bonds (9,231 ) (6,937 ) — Write-downs of financial receivables (3,530 ) (3,864 ) (9,607 ) Net interest expenses on employee benefits provisions — (389 ) (79 ) Other financial expenses (12,008 ) (5,831 ) (5,029 ) Total financial expenses (50,023 ) (46,634 ) (35,450 ) Net expenses from derivative financial instruments and foreign currency exchange rate differences (16,619 ) (5,086 ) (4,930 ) Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences (66,642 ) (51,720 ) (40,380 ) Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences relating to: Industrial companies (B) (35,697 ) (30,413 ) (16,678 ) Financial services companies (reported in cost of sales) (30,945 ) (21,307 ) (23,702 ) Net financial expenses relating to industrial companies (A+B) (29,260 ) (27,729 ) (10,151 ) Interest expenses from banks for the year ended December 31, 2017 and 2016 includes interest expenses on the Term Loan, which was fully repaid in November 2017, and for the year ended December 31, 2016 also includes interest expenses on the Bridge Loan, which was fully repaid in March 2016 . Interest expenses from banks for all years presented also includes interest expenses related to financial services activities, which are reported within cost of sales, as well as interest expenses on other bank borrowings. Interest on bonds includes interest expenses on the bonds issued in November 2017 (“2021 Bond”) and March 2016 (“2023 Bond”). See Note 25 “Debt” for additional details. Financial income for the year ended December 31, 2017 includes amounts recognized in relation to the Delta Topco option and a gain on the fair value measurement of the Series C Liberty Formula One shares (“Liberty Shares”) subsequent to initial recognition at cost. Interest expenses on financial liabilities with FCA Group for the year ended December 31, 2015 included €9,333 thousand related to the FCA Note. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income taxes [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense is as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Current tax expense 201,274 189,492 153,739 Deferred tax expense/(income) 8,718 (18,290 ) (9,410 ) Taxes relating to prior periods (1,232 ) (3,567 ) (214 ) Total income tax expense 208,760 167,635 144,115 The reconciliation between actual income tax expense and the theoretical income tax expense, calculated on the basis of the theoretical tax rates in effect in Italy, is as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Theoretical income tax expense, net of IRAP 179,077 156,022 119,396 Tax effect on: Permanent differences (7,061 ) (10,219 ) 5,846 Effect of changes in tax rate and tax regulations 4,862 1,280 4,005 Differences between foreign tax rates and the theoretical Italian tax rate and tax holidays 2,344 853 1,631 Taxes relating to prior years (1,232 ) (3,567 ) (214 ) Withholding tax on earnings 2,420 2,017 (384 ) Total income tax expense, net of IRAP 180,410 146,386 130,280 Effective tax rate, net of IRAP 24.2 % 25.8 % 30.0 % IRAP (current and deferred) 28,350 21,249 13,835 Total income tax expense 208,760 167,635 144,115 Theoretical income taxes have been calculated at the corporate income tax rate in Italy for the respective years, which was 24.0 percent for the year ended December 31, 2017 and 27.5 percent for the years ended December 31, 2016 and 2015 . During 2015 a change in Italian tax law approved a reduction in the corporate income tax rate from 27.5 percent to 24.0 percent , effective from 2017 . In order to facilitate the understanding of the tax rate reconciliation presented above, income tax expense has been presented net of Italian Regional Income Tax (“IRAP”). IRAP is calculated on a measure of income defined by the Italian Civil Code as the difference between operating revenues and costs, before financial income and expense, and in particular before the cost of fixed-term employees, credit losses and any interest included in lease payments. IRAP is applied on the tax base at 3.9 percent for each of the years ended December 31, 2017 , 2016 and 2015 . The decrease in the effective tax rate net of IRAP from 25.8 percent in 2016 to 24.2 percent in 2017 was primarily attributable to the combined effects of a reduction in the Italian corporate income tax rate from 27.5 percent to 24.0 percent (effective from 2017), deductions related to eligible research and development costs and depreciation of fixed assets in accordance with tax regulations in Italy, partially offset by a decrease in net deferred tax assets due to the Tax Cuts and Jobs Act that was enacted into law in the U.S. The Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law in the U.S. on December 22, 2017. The Tax Act includes various changes to the tax law, including a reduction in the corporate income tax rate from 35% to 21% effective January 1, 2018. The Group recognized the effects of the changes in the tax rate and laws resulting from the Tax Act in 2017, which resulted in a €4,646 thousand decrease in net deferred tax assets, recorded through the income statement, related to adjusting deferred tax assets and liabilities to reflect the new corporate tax rate. The accounting for the effects of the rate change on deferred tax balances is complete and no provisional amounts were recorded for this item. The decrease in the effective tax rate net of IRAP from 30.0 percent in 2015 to 25.8 percent in 2016 was primarily attributable to the combined effects of the previously mentioned adjustments to deferred taxes due to the reduction in the Italian corporate income tax rate and additional tax deductions in 2016 on eligible research and development costs and on investments and other expenses, in accordance with changes in tax regulations in Italy. The analysis of deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 , is as follows: At December 31, 2017 2016 (€ thousand) Deferred tax assets: To be recovered after 12 months 63,286 72,142 To be recovered within 12 months 30,805 47,215 94,091 119,357 Deferred tax liabilities: To be realized after 12 months (9,885 ) (10,517 ) To be realized within 12 months (1,092 ) (2,594 ) (10,977 ) (13,111 ) Net deferred tax assets 83,114 106,246 The movements in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, are as follows: At December 31, 2016 Recognized in consolidated income statement Charged to equity Translation At December 31, 2017 (€ thousand) Deferred tax assets arising on: Provisions 111,321 (6,959 ) — (2,119 ) 102,243 Deferred income 43,549 2,649 — — 46,198 Employee benefits 2,370 (11 ) 203 — 2,562 Cash flow hedge reserve 7,325 — (9,757 ) — (2,432 ) Foreign currency exchange rate differences 3,028 (2,288 ) — — 740 Inventory obsolescence 24,569 13,515 — (469 ) 37,615 Allowances for doubtful accounts 4,107 (94 ) — (14 ) 3,999 Depreciation 19,853 (3,283 ) — — 16,570 Other 13,833 2,007 — (3,457 ) 12,383 Total deferred tax assets 229,955 5,536 (9,554 ) (6,059 ) 219,878 Deferred tax liabilities arising on: Depreciation (17,592 ) 7,408 — 1,254 (8,930 ) Capitalization of development costs (90,480 ) (24,295 ) — — (114,775 ) Employee benefits (1,745 ) (123 ) — — (1,868 ) Exchange rate differences (3,547 ) 2,900 — — (647 ) Cash flow hedge reserve (1 ) — — — (1 ) Lease accounting (11,004 ) 352 — — (10,652 ) Withholding tax on undistributed earnings (1,150 ) 1,150 — — — Total deferred tax liabilities (125,519 ) (12,608 ) — 1,254 (136,873 ) Deferred tax asset arising on tax loss carry-forward 1,810 (1,646 ) — (55 ) 109 Total net deferred tax assets 106,246 (8,718 ) (9,554 ) (4,860 ) 83,114 At December 31, 2015 Recognized in consolidated income statement Charged to equity Changes in the scope of consolidation Translation At December 31, 2016 (€ thousand) Deferred tax assets arising on: Provisions 77,915 29,461 — (78 ) 4,023 111,321 Deferred income 39,318 4,231 — — — 43,549 Employee benefits 2,242 (54 ) (18 ) — 200 2,370 Cash flow hedge reserve 24,267 — (16,943 ) — 1 7,325 Foreign currency exchange rate differences 343 2,685 — — — 3,028 Inventory obsolescence 25,075 (626 ) — — 120 24,569 Allowances for doubtful accounts 3,633 485 — — (11 ) 4,107 Depreciation 21,682 (1,783 ) — — (46 ) 19,853 Other 10,838 (1,808 ) — 6,989 (2,186 ) 13,833 Total deferred tax assets 205,313 32,591 (16,961 ) 6,911 2,101 229,955 Deferred tax liabilities arising on: Depreciation (14,571 ) (2,591 ) — — (430 ) (17,592 ) Capitalization of development costs (79,531 ) (10,949 ) — — — (90,480 ) Employee benefits (1,713 ) (32 ) — — — (1,745 ) Exchange rate differences (1,970 ) (1,577 ) — — — (3,547 ) Cash flow hedge reserve (1 ) — — — — (1 ) Lease accounting (11,457 ) 453 — — — (11,004 ) Withholding tax on undistributed earnings (1,150 ) — — — — (1,150 ) Total deferred tax liabilities (110,393 ) (14,696 ) — — (430 ) (125,519 ) Deferred tax asset arising on tax loss carry-forward 4,357 395 — (2,949 ) 7 1,810 Total net deferred tax assets 99,277 18,290 (16,961 ) 3,962 1,678 106,246 The decision to recognize deferred tax assets is made for each company in the Group by assessing whether the conditions exist for the future recoverability of such assets by taking into account the basis of the most recent forecasts from budgets and business plans. Deferred taxes 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. Starting in 2016 following the completion of the Separation, the Group’s entities participate in a group Italian tax consolidation under Ferrari N.V. Previously, the Group participated in the FCA Group Italian tax consolidation. |
OTHER INFORMATION BY NATURE
OTHER INFORMATION BY NATURE | 12 Months Ended |
Dec. 31, 2017 | |
Other information by nature [Abstract] | |
OTHER INFORMATION BY NATURE | OTHER INFORMATION BY NATURE Personnel costs in 2017 , 2016 and 2015 amounted to €305,584 thousand , €294,047 thousand and €284,947 thousand , respectively. These amounts include costs that were capitalized mainly in connection to product development activities. In 2017 , 2016 and 2015 the Group had an average number of employees of 3,336 , 3,115 and 2,954 , respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE For the purpose of calculating earnings per share for the year ended December 31, 2015 , the weighted average number of common shares outstanding retrospectively reflects the effects of the Separation. Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of common shares in issue. The following table provides the amounts used in the calculation of basic earnings per share for the years ended December 31, 2017 , 2016 and 2015 : For the years ended December 31, 2017 2016 2015 Profit attributable to owners of the Company € thousand 535,393 398,762 287,816 Weighted average number of common shares thousand 188,951 188,923 188,923 Basic earnings per common share € 2.83 2.11 1.52 Diluted earnings per share For the year ended December 31, 2017 the weighted average number of common shares for diluted earnings per share was increased to take into consideration the theoretical effect of (i) the potential common shares that would be issued under the equity incentive plan (see Note 22 for additional details of the equity incentive plan) and (ii) the potential common shares that would have been issued for the Non-Executive Directors’ compensation agreement. For the year ended December 31, 2016 the weighted average number of common shares for diluted earnings per share was increased to take into consideration the theoretical effect of the potential common shares that would have been issued for the Non-Executive Directors’ compensation agreement. For the year ended December 31, 2015 there were no potentially dilutive instruments. The following table provides the amounts used in the calculation of diluted earnings per share for the years ended December 31, 2017 , 2016 and 2015 : For the years ended December 31, 2017 2016 2015 Profit attributable to owners of the Company € thousand 535,393 398,762 287,816 Weighted average number of common shares for diluted earnings per common share thousand 189,759 188,946 188,923 Diluted earnings per common share € 2.82 2.11 1.52 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill [Abstract] | |
GOODWILL | GOODWILL At December 31, 2017 and 2016 goodwill amounted to €785,182 thousand . In accordance with IAS 36, goodwill is not amortized and is tested for impairment annually, or more frequently if facts or circumstances indicate that the asset may be impaired. Impairment testing is performed by comparing the carrying amount and the recoverable amount of the CGU. The recoverable amount of the CGU is the higher of its fair value less costs of disposal and its value in use. The assumptions used in this process represent management’s best estimate for the period under consideration. The estimate of the value in use of the CGU for purposes of performing the annual impairment test was based on the following assumptions: • The expected future cash flows covering the period from 2018 through 2022 have been derived from the Ferrari business plan. In particular the estimate considers expected EBITDA adjusted to reflect the expected capital expenditure. These cash flows relate to the CGU in its 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 flows are based on assumptions that are considered reasonable and sustainable and represent the best estimate of expected conditions regarding market trends for the CGU over the period considered. • The expected future cash flows include a normalized terminal period used to estimate the future results beyond the time period explicitly considered, which were calculated by using the specific medium/long-term growth rate for the sector equal to 2.0 percent in 2017 ( 2.0 percent in 2016 and 2.1 percent in 2015 ). • The expected future cash flows have been estimated in Euro, and discounted using a post-tax discount rate appropriate for that currency, determined by using a base WACC of 7.0 percent in 2017 ( 7.0 percent in 2016 and 7.6 percent in 2015 ). The WACC used reflects the current market assessment of the time value of money for the period being considered and the risks specific to the CGU under consideration. The recoverable amount of the CGU was significantly higher than its carrying amount. Furthermore, the exclusivity of the business, its historical profitability and its future earnings prospects indicate that the carrying amount of the goodwill will continue to be recoverable, even in the event of difficult economic and market conditions. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Externally Development Patents, Other Total (€ thousand) Gross carrying amount at 834,483 437,254 131,237 45,470 1,448,444 Additions 104,009 37,387 12,110 12,834 166,340 Reclassification — — 4,369 (4,369 ) — Change in scope of consolidation — — (3,458 ) — (3,458 ) Translation differences — — (66 ) (93 ) (159 ) Balance at December 31, 2016 938,492 474,641 144,192 53,842 1,611,167 Additions 142,795 42,320 12,416 4,975 202,506 Reclassification — — 12,289 (12,289 ) — Translation differences — — (1,011 ) (1,443 ) (2,454 ) Balance at December 31, 2017 1,081,287 516,961 167,886 45,085 1,811,219 Accumulated amortization at January 1, 2016 696,911 289,009 117,766 36,948 1,140,634 Amortization 77,240 26,815 11,628 2,419 118,102 Reclassification — — 3,317 (3,317 ) — Change in scope of consolidation — — (1,766 ) — (1,766 ) Translation differences — — (144 ) (53 ) (197 ) Balance at December 31, 2016 774,151 315,824 130,801 35,997 1,256,773 Amortization 72,978 27,524 14,312 2,308 117,122 Translation differences — — (3,307 ) 175 (3,132 ) Balance at December 31, 2017 847,129 343,348 141,806 38,480 1,370,763 Carrying amount at: January 1, 2016 137,572 148,245 13,471 8,522 307,810 December 31, 2016 164,341 158,817 13,391 17,845 354,394 December 31, 2017 234,158 173,613 26,080 6,605 440,456 Additions of €202,506 thousand in 2017 ( €166,340 thousand in 2016 ) primarily relate to externally acquired and internally generated costs for the development of new and existing models. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Land Industrial Plant, machinery and equipment Other Advances and assets under construction Total (€ thousand) Gross carrying amount at 22,671 331,177 1,691,482 131,627 35,763 2,212,720 Additions — 5,596 81,678 7,322 81,051 175,647 Divestitures — (1,021 ) (9,902 ) (7,631 ) — (18,554 ) Reclassification — 1,578 22,898 1,441 (28,341 ) (2,424 ) Change in scope of consolidation — — — (613 ) — (613 ) Translation differences 10 173 — 476 — 659 Balance at December 31, 2016 22,681 337,503 1,786,156 132,622 88,473 2,367,435 Additions 892 4,691 131,981 11,855 39,485 188,904 Divestitures — (77 ) (31,877 ) (3,101 ) (368 ) (35,423 ) Reclassification — 355 73,160 (2,685 ) (70,830 ) — Translation differences (36 ) (723 ) 42 (1,700 ) — (2,417 ) Balance at December 31, 2017 23,537 341,749 1,959,462 136,991 56,760 2,518,499 Accumulated amortization at January 1, 2016 — 123,099 1,364,471 99,020 — 1,586,590 Depreciation — 9,995 109,939 9,681 — 129,615 Divestitures — (608 ) (11,628 ) (6,039 ) — (18,275 ) Reclassification — 177 (1,786 ) 1,609 — — Change in scope of consolidation — — — (312 ) — (312 ) Translation differences — 159 (1 ) 376 — 534 Balance at December 31, 2016 — 132,822 1,460,995 104,335 — 1,698,152 Depreciation — 9,860 124,629 8,995 — 143,484 Divestitures — (69 ) (29,761 ) (2,469 ) — (32,299 ) Translation differences — (353 ) (94 ) (651 ) — (1,098 ) Balance at December 31, 2017 — 142,260 1,555,769 110,210 — 1,808,239 Carrying amount at: January 1, 2016 22,671 208,078 327,011 32,607 35,763 626,130 December 31, 2016 22,681 204,681 325,161 28,287 88,473 669,283 December 31, 2017 23,537 199,489 403,693 26,781 56,760 710,260 Additions of €188,904 thousand in 2017 were mainly comprised of additions of €131,981 thousand to plant, machinery and equipment and additions of €39,485 thousand related to advances and assets under construction. Additions to plant, machinery and equipment in 2017 mainly related to investments in cars production lines, personalization programs and engine assembly lines. Additions to advances and assets under construction in 2017 mainly related to car production lines of models to be launched in future years. Additions of €175,647 thousand in 2016 were mainly comprised of additions of €81,678 thousand to plant, machinery and equipment and additions of €81,051 thousand related to advances and assets under construction. Additions to plant, machinery and equipment in 2016 mainly related to investments in cars production lines, engine assembly lines and personalization programs. Additions to advances and assets under construction in 2016 mainly related to car production lines of models to be launched in future years. At December 31, 2017 , the Group had contractual commitments for the purchase of property, plant and equipment amounting to €37,844 thousand ( €49,614 thousand at December 31, 2016 ). |
INVESTMENTS AND OTHER FINANCIAL
INVESTMENTS AND OTHER FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Investments and other financial assets [Abstract] | |
INVESTMENTS AND OTHER FINANCIAL ASSETS | INVESTMENTS AND OTHER FINANCIAL ASSETS At December 31, 2017 2016 (€ thousand) Investments accounted for using the equity method 23,340 20,948 Delta Topco option — 11,967 Other securities and financial assets 6,698 1,020 Total investments and other financial assets 30,038 33,935 Investments accounted for using the equity method Investments accounted for using the equity method relates to the Group’s investment in FFS GmbH. In particular, on November 7, 2016 , Ferrari and FCA Bank finalized an agreement to provide financial services in Europe, under which FCA Bank acquired a majority stake in FFS GmbH from Ferrari for a purchase price of €18,595 thousand , which was received upon sale. In addition to the purchase price, as a result of the funding of FFS GmbH being directly provided by FCA Bank, which is the consolidating entity of FFS GmbH following the transaction, the Group also received cash of €431,958 thousand . Upon completion of the transaction, FFS GmbH was deconsolidated and the 49.9 percent interest in FFS GmbH retained by Ferrari is accounted for using the equity method. Changes in the investments accounted for using the equity method during the years ended December 31, 2017 and 2016 were as follows: (€ thousand) Balance at January 1, 2016 — Change in scope of consolidation 18,542 Fair value measurement of interest retained by the Group 1,489 Proportionate share of net profit for the period from November 7 to December 31, 2016 917 Balance at December 31, 2016 20,948 Proportionate share of net profit for the year ended December 31, 2017 2,437 Proportionate share of remeasurement of defined benefit plans (45 ) Balance at December 31, 2017 23,340 Summarized financial information relating to FFS GmbH at and for the years ended December 31, 2017 and 2016 were as follows: At December 31, 2017 2016 (€ thousand) Assets Intangible assets 647 1,133 Property, plant and equipment 66 119 Deferred tax assets 1,977 2,736 Total non-current assets 2,690 3,988 Inventories 259 412 Trade receivables 1,461 472 Receivables from financing activities 493,985 463,108 Other current assets 8,292 3,543 Cash and cash equivalents 8,109 29,087 Total current assets 512,106 496,622 Total assets 514,796 500,610 Equity and liabilities Equity 44,705 39,921 Non-current liabilities and provisions 8,903 7,920 Debt 457,787 447,272 Trade payables 457 123 Other liabilities 2,944 5,374 Total equity and liabilities 514,796 500,610 For the year ended December 31, 2017 2016 (€ thousand) Net revenues 26,505 27,471 Cost of sales 11,525 9,563 Selling, general and administrative costs 8,173 8,432 Other expenses, net 245 180 Profit before taxes 6,562 9,296 Income tax expense 1,689 2,070 Net profit 4,873 7,226 Delta Topco option The Group was granted an option to purchase a fixed number of shares in Delta Topco for a fixed price on the occurrence of certain events. Delta Topco is a company belonging to the Formula 1 Group (the group responsible for the promotion of the Formula 1 World Championship). The Group exercised the Delta Topco option as a result of the sale of Delta Topco to Liberty Media Corporation, which was completed on January 23, 2017. On February 22, 2017, the Group received (i) € 10,878 thousand in cash (including € 2,571 thousand of previously undistributed dividends), (ii) approximately 145 thousand Liberty Shares, which were initially recognized at cost of € 2,887 thousand (based on the original underlying agreement), and (iii) € 851 thousand of Liberty Media exchangeable notes in relation to the Delta Topco option. The Liberty Media exchangeable notes were subsequently converted into Liberty Media shares in November 2017. Other securities and financial assets Other securities and financial assets primarily include the Liberty Shares obtained as a result of exercising the Delta Topco option and the subsequent conversion of Liberty Media exchangeable notes into Liberty Shares. The Liberty Shares are measured at fair value which amounted to € 5,705 thousand at December 31, 2017 . |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
INVENTORIES | INVENTORIES At December 31, 2017 2016 (€ thousand) Raw materials 99,225 95,594 Semi-finished goods 87,678 72,472 Finished goods 206,862 155,932 Total inventories 393,765 323,998 The accrual to the provision for slow moving and obsolete inventories recognized within cost of sales during 2017 was €10,140 thousand ( €2,120 thousand in 2016 and €11,610 thousand in 2015 ). Changes in the provision for slow moving and obsolete inventories were as follows: 2017 2016 (€ thousand) At January 1, 60,548 60,588 Provision 10,140 2,120 Use and other changes (3,699 ) (2,160 ) At December 31, 66,989 60,548 |
CURRENT RECEIVABLES AND OTHER C
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Current Receivables, Other Current Assets, And Deposits in FCA Group Cash Management Pools [Abstract] | |
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS | CURRENT RECEIVABLES AND OTHER CURRENT ASSETS At December 31, 2017 2016 (€ thousand) Trade receivables 239,410 243,977 Receivables from financing activities 732,947 790,377 Current tax receivables 6,125 1,312 Other current assets 45,441 53,729 Total 1,023,923 1,089,395 Trade receivables The following table sets forth a breakdown of trade receivables by nature: At December 31, 2017 2016 (€ thousand) Trade receivables due from: FCA Group companies 75,245 75,694 Dealers 48,166 47,208 Sponsors 30,058 42,789 Brand activities 33,283 15,650 Other 52,658 62,636 Total 239,410 243,977 Trade receivables due from dealers relate to receivables for the sale of cars across the dealer network and are generally settled within 15 to 60 days from the date of invoice. Trade receivables due from FCA Group companies mainly relate to the sale of engines and car bodies to Maserati S.p.A. and Officine Maserati Grugliasco S.p.A. (together “Maserati”) which are controlled by the FCA Group. For additional information, see Note 29. Trade receivables due from sponsors relate to amounts receivable from sponsors of the Group’s Formula 1 activities. Trade receivables due from brand activities relate to amounts receivable for licensing and merchandising activities. The Group is not exposed to concentration of third party credit risk. The following table sets forth a breakdown of trade receivables by currency: At December 31, 2017 2016 (€ thousand) Trade receivables denominated in: Euro 172,492 155,545 U.S. Dollar 53,618 62,701 Pound Sterling 2,915 1,222 Chinese Yuan 2,947 3,819 Japanese Yen 3,151 16,310 Other 4,287 4,380 Total 239,410 243,977 Trade receivables are shown net of an allowance for doubtful accounts determined on the basis of insolvency risk and historical experience. Accruals to the allowance for doubtful accounts are recorded in selling, general and administrative costs in the consolidated income statement. Changes in the allowance for doubtful accounts during the year were as follows: 2017 2016 (€ thousand) At January 1, 19,174 18,371 Provision 3,231 3,504 Use and other changes (412 ) (2,701 ) At December 31, 21,993 19,174 Receivables from financing activities Receivables from financing activities are as follows: At December 31, 2017 2016 (€ thousand) Client financing 704,014 758,679 Dealer financing 28,933 31,698 Total receivables from financing activities 732,947 790,377 Receivables from financing activities are shown net of an allowance for doubtful accounts determined on the basis of insolvency risks. Accruals to the allowance for doubtful accounts are recorded in cost of sales in the consolidated income statement. Changes in the allowance for doubtful accounts of receivables from financing activities during the year are as follows: 2017 2016 (€ thousand) At January 1, 11,556 18,671 Provision 3,530 2,455 Change in scope of consolidation — (8,409 ) Use and other changes (8,138 ) (1,161 ) At December 31, 6,948 11,556 Client financing Client financing relates to financing provided by the Group to Ferrari clients to finance their car acquisition. During 2017 the average contractual duration at inception of such contracts was approximately 66 months and the weighted average interest rate was approximately 5.1 percent . Receivables for client financing are generally secured on the titles of cars or other personal guarantees. Following the sale of a majority stake in FFS GmbH to FCA Bank and the deconsolidation of FFS GmbH on November 7, 2016 , client financing mainly relates to activities in the United States and is denominated in U.S. Dollars. Dealer financing The Group provides dealer financing in the United States. Receivables for dealer financing are typically generated by sales of cars managed under dealer network financing programs as a component of the portfolio of the financial services companies. In 2017 these receivables were interest bearing at a rate between 3.3 percent and 6.0 percent (between 2.9 percent and 5.2 percent in 2016 ), with the exception of an initial limited, non-interest bearing period. The contractual terms governing the relationships with the dealer network vary from country to country, although payment terms generally range from 1 to 6 months. Receivables on dealer financing are generally secured by the title of the car or other collateral. Other current assets Other current assets are as follows: At December 31, 2017 2016 (€ thousand) Prepayments 27,980 31,611 Italian and foreign VAT credits 11,988 12,032 Due from personnel 959 747 Security deposits 1,014 932 Other receivables 3,500 8,407 Total other current assets 45,441 53,729 At December 31, 2017 , the Group had provided guarantees through third parties amounting to €132,014 thousand ( €89,014 thousand at December 31, 2016 ), principally to banks and relevant tax authorities in relation to (i) a U.S. Dollar denominated credit facility of FFS Inc, (ii) the validity of value added tax (“VAT”) and duties for which the Group requested reimbursement from the relevant tax authorities, (iii) the VAT related to temporary import of classic cars for restoration activities which would become due if the car is not exported. The analysis of current receivables and other current assets by due date (excluding prepayments) is as follows: At December 31, 2017 Due within one year Due between one and five years Due beyond five years Overdue Total (€ thousand) Trade receivables 207,074 — — 32,336 239,410 Receivables from financing activities 144,621 529,489 46,894 11,943 732,947 Client financing 134,972 513,079 44,020 11,943 704,014 Dealer financing 9,649 16,410 2,874 — 28,933 Current tax receivables 5,667 458 — — 6,125 Other current receivables 16,767 682 7 5 17,461 Total 374,129 530,629 46,901 44,284 995,943 At December 31, 2016 Due within one year Due between one and five years Due beyond five years Overdue Total (€ thousand) Trade receivables 225,402 8 — 18,567 243,977 Receivables from financing activities 146,412 554,030 48,341 41,594 790,377 Client financing 136,602 536,954 43,529 41,594 758,679 Dealer financing 9,810 17,076 4,812 — 31,698 Current tax receivables 690 622 — — 1,312 Other current receivables 21,572 539 7 — 22,118 Total 394,076 555,199 48,348 60,161 1,057,784 Receivables from financing activities at December 31, 2017 and 2016 relate entirely to the financial services portfolio and are generally secured on the titles of cars or other guarantees. |
CURRENT FINANCIAL ASSETS AND OT
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES | CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES At December 31, 2017 2016 (€ thousand) Financial derivatives 11,686 10,388 Other financial assets 3,997 5,888 Current financial assets 15,683 16,276 Current financial assets and other financial liabilities mainly relates to foreign exchange derivatives. The following table sets further the analysis of derivative assets and liabilities at December 31, 2017 and 2016. At December 31, 2017 2016 Positive fair Negative fair Positive fair Negative fair (€ thousand) Cash flow hedge: Foreign currency forwards 8,848 (1,136 ) 8,160 (39,580 ) Total cash flow hedges 8,848 (1,136 ) 8,160 (39,580 ) Other foreign exchange derivatives 1,729 (308 ) 1,548 (58 ) Interest rate caps 1,109 — 680 — Total 11,686 (1,444 ) 10,388 (39,638 ) Other foreign exchange derivatives relate to foreign currency forwards which do not meet the requirements to be recognized as cash flow hedges. Interest rate caps relate to derivative instruments we are required to enter into as part of certain of our securitization agreements. The following tables provide an analysis by foreign currency and due date of outstanding derivative financial instruments based on their fair value and notional amounts: At December 31, 2017 Fair value due within one year Total fair value Notional amount due within one year Total notional amount (€ thousand) Currencies: U.S. Dollar 2,637 2,637 114,317 114,317 Pound Sterling 510 510 110,032 110,032 Chinese Yuan (97 ) (97 ) 18,095 18,095 Swiss Franc 1,999 1,999 43,552 43,552 Japanese Yen 4,402 4,402 81,890 81,890 Other (1) 791 791 95,738 95,738 Total amount 10,242 10,242 463,624 463,624 ______________________________ (1) Other mainly includes the Australian Dollar, the Hong Kong Dollar and the Canadian Dollar. At December 31, 2016 Fair value due within one year Total fair value Notional amount due within one year Total notional amount (€ thousand) Currencies: U.S. Dollar (33,758 ) (33,758 ) 788,274 788,274 Pound Sterling 3,668 3,668 106,056 106,056 Chinese Yuan (125 ) (125 ) 19,917 19,917 Swiss Franc (476 ) (476 ) 47,923 47,923 Japanese Yen 2,835 2,835 91,854 91,854 Other (1) (1,394 ) (1,394 ) 74,822 74,822 Total amount (29,250 ) (29,250 ) 1,128,846 1,128,846 ______________________________ (1) Other mainly includes the Australian Dollar, the Hong Kong Dollar and the Canadian Dollar Cash flow hedges The effects recognized in the consolidated income statement mainly relate to currency risk management and in particular the exposure to fluctuations in the Euro/U.S. Dollar exchange rate for sales in U.S. Dollars. The policy of the Group for managing foreign currency risk normally requires hedging of a portion of projected future cash flows from trading activities and orders acquired (or contracts in progress) in foreign currencies which will occur within the following 12 months. It is considered reasonable that the hedging effect arising from this and recorded in the cash flow hedge reserve will be recognized in the consolidated income statement, mainly during the following 12 months. Derivatives relating to currency risk management are treated as cash flow hedges where the derivative qualifies for hedge accounting. The amount recorded in the cash flow hedge reserve will be recognized in the consolidated income statement according to the timing of the flows of the underlying transaction. The Group reclassified gains and losses, net of the tax effect, from other comprehensive income/(loss) to the consolidated income statement as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Net revenues/(costs) 19,724 (69,368 ) (145,095 ) Net financial expenses — — (23,745 ) Income tax (expense)/benefit (5,503 ) 19,354 53,016 Total recognized in the consolidated income statement 14,221 (50,014 ) (115,824 ) The ineffectiveness of cash flow hedges was not material for the years 2017 , 2016 and 2015 . |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Share Capital Reserves and Other Equity Interests [Abstract] | |
EQUITY | EQUITY Share capital At December 31, 2017 and 2016, the fully paid up share capital of the Company was €2,504 thousand , consisting of 193,923,499 common shares and 56,497,618 special voting shares, all with a nominal value of €0.01 per share. At December 31, 2017, the Company had 4,969,625 common shares and 4,099 special voting shares held in treasury, while at December 31, 2016, the Company had 5,000,000 common shares and 2,930 special voting shares held in treasury. The decrease in common shares held in treasury primarily reflects the granting of shares to Non-Executive Directors as part of their directors’ compensation. The Company did not issue new common shares or special voting shares in the initial public offering and did not receive any of the proceeds. The loyalty voting structure The purpose of the loyalty voting structure is to reward ownership of the Company’s common shares and to promote stability of the Company’s shareholder base by granting long-term shareholders of the Company with special voting shares. Following the Separation, Exor N.V. (“Exor”) and Piero Ferrari participate in the Company’s loyalty voting program and, therefore, effectively hold two votes for each of the common shares they hold. Investors who purchased common shares in the initial public offering may elect to participate in the loyalty voting program by registering their common shares in the loyalty share register and holding them for three years. The loyalty voting program will be effected by means of the issue of special voting shares to eligible holders of common shares. Each special voting share entitles the holder to exercise one vote at the Company’s shareholders meeting. Only a minimal dividend accrues to the special voting shares allocated to a separate special dividend reserve, and the special voting shares do not carry any entitlement to any other reserve of the Group. The special voting shares have only immaterial economic entitlements and, as a result, do not impact the Company’s earnings per share calculation. Retained earnings and other reserves Retained earnings and other reserves includes: • the share premium reserve of €5,768,544 thousand at December 31, 2017 ( €5,888,529 thousand at December 31, 2016 ). The share premium reserve originated from the issuance of common shares pursuant to the Restructuring and from a share premium contribution of €1,162 thousand made by FCA in 2015 and received in 2016. As explained below, the movements in 2017 and 2016 relate to cash distributions made from this reserve; • the legal reserve of €8 thousand at December 31, 2017 and €14 thousand at December 31, 2016 , determined in accordance with Dutch law. Following approval of the annual accounts by the shareholders at the Annual General Meeting of the Shareholders on April 14, 2017, a cash distribution of €0.635 per common share was approved, corresponding to a total distribution of €119,985 thousand . In May 2017 the Company paid €114,738 thousand of the distribution and the remainder was paid in July 2017. Following approval of the annual accounts by the shareholders at the Annual General Meeting of the Shareholders on April 15, 2016 , the Company paid a cash distribution of €0.46 per common share in May 2016 , corresponding to a total distribution of €86,905 thousand . Both distributions were made from the share premium reserve which is a distributable reserve under Dutch law. At December 31, 2017 a cumulative amount of €28,179 thousand was recognized as an increase to other reserves for the PSU and RSU awards under the Group’s equity incentive plan. See Note 22 for additional details. Equity-settled Non-Executive Directors’ compensation amounted to €418 thousand and €1,110 thousand for the years ended December 31, 2017 and 2016 and was recognized as an increase to other reserves. See Note 29 for additional details. Other comprehensive income The following table presents other comprehensive income: For the years ended December 31, 2017 2016 2015 (€ thousand) Items that will not be reclassified to the consolidated income statement in subsequent periods: (Losses)/Gains on remeasurement of defined benefit plans (1) (730 ) (1,448 ) 898 Total items that will not be reclassified to the consolidated income statement in subsequent periods (730 ) (1,448 ) 898 Items that may be reclassified to the consolidated income statement in subsequent periods: Gains/(Losses) on cash flow hedging instruments arising during the period 54,695 (18,282 ) (160,606 ) (Gains)/Losses on cash flow hedging instruments reclassified to the consolidated income statement (19,724 ) 69,368 168,840 Gains on cash flow hedging instruments 34,971 51,086 8,234 Exchange differences on translating foreign operations arising during the period (15,346 ) 4,118 13,344 Total items that may be reclassified to the consolidated income statement in subsequent periods 19,625 55,204 21,578 Total other comprehensive income 18,895 53,756 22,476 Related tax impact (9,554 ) (16,961 ) (2,908 ) Total other comprehensive income, net of tax 9,341 36,795 19,568 __________________________ (1) For the year ended December 31, 2017 includes €45 thousand related to the Group ’ s proportionate share of the remeasurement of defined benefit plans of FFS GmbH, for which the Group holds a 49.9 percent interest. Losses on remeasurement of defined benefit plans mainly include actuarial gains and losses arising during the period. These gains and losses are offset against the related net defined benefit liabilities. The tax effect relating to other comprehensive income are as follows: For the years ended December 31, 2017 2016 2015 Pre-tax balance Related tax impact Net balance Pre-tax balance Related tax impact Net balance Pre-tax balance Related tax impact Net balance (€ thousand) (Losses)/Gains on remeasurement of defined benefit plans (730 ) 203 (527 ) (1,448 ) (18 ) (1,466 ) 898 (308 ) 590 Gains on cash flow hedging instruments 34,971 (9,757 ) 25,214 51,086 (16,943 ) 34,143 8,234 (2,600 ) 5,634 Exchange gains on translating foreign operations (15,346 ) — (15,346 ) 4,118 — 4,118 13,344 — 13,344 Total other comprehensive income 18,895 (9,554 ) 9,341 53,756 (16,961 ) 36,795 22,476 (2,908 ) 19,568 Transactions with non-controlling interests With the exception of dividends paid to non-controlling interests, there were no transactions with non-controlling interests for the years ended December 31, 2017 or 2016 . Transactions with non-controlling interests for the year ended December 31, 2015 relate to the purchase of the remaining 10 percent of NCI of the subsidiary FFS from Aldasa GmbH. The purchase price for the FFS shares was €8,500 thousand (based on an independent valuation) and the carrying value of the 10 percent interest at the time of purchase was €5,898 thousand . In accordance with IAS 27, the difference of €2,602 thousand was recorded as a reduction to equity. Policies and processes for managing capital The Group’s objectives when 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 a satisfactory economic return for its shareholders and guarantee economic access to external sources of funds. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of share-based payment arrangements [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION Following the approval of the equity incentive plan by the Board of Directors on March 1, 2017, on April 14, 2017 the Shareholders approved an award to the Chief Executive Officer under the Company’s equity incentive plan, which is applicable to all Group Executive Council (“GEC”) members and key leaders of the Company. Under the Company’s equity incentive plan, an aggregate of approximately 687 thousand performance share units (“PSUs”) and an aggregate of approximately 119 thousand restricted share units (“RSUs”) have been awarded. The grants of the PSUs and the RSUs, each representing the right to receive one common share of the Company, cover a five -year performance period from 2016 to 2020, consistent with the Company’s strategic horizon. At December 31, 2017, the Company has recognized a cumulative amount of €28,179 thousand as an increase to other reserves in equity for the PSU awards and RSU awards and had unrecognized compensation expense of approximately €26,051 thousand , which will be recognized over the remaining vesting period until 2020. Performance Share Units The Company awarded members of the GEC and key leaders a total target of approximately 237 thousand PSUs and 450 thousand PSUs to its Chief Executive Officer. The PSUs vest in three equal tranches in March 2019, 2020 and 2021, subject to the achievement of a market performance condition related to Total Shareholder Return (“TSR”). The interim partial vesting periods are independent of one another and any under-achievement in one period can be offset by over-achievement in subsequent periods. The target amount of PSUs vests as follows based on the Company’s TSR ranking compared to an industry specific peer group of eight, including the Company, (“Peer Group”): Ferrari TSR Ranking % of Target Awards that Vest CEO GEC and Key Leaders 1 150% 150% 2 120% 120% 3 100% 100% 4 75% — 5 50% — The defined Peer Group is as follows: Hermes Burberry Brunello Cucinelli Ferragamo LVMH Moncler Richemont The total number of shares that will eventually be issued upon vesting of the PSUs may vary from the original award of 687 thousand , depending on the level of TSR performance achieved compared to the Peer Group. None of the PSU awards were forfeited and none of the outstanding PSUs had vested at December 31, 2017. The performance period for the PSUs commenced on January 1, 2016. The fair value of the awards used for accounting purposes was measured at the grant date using a Monte Carlo Simulation model. The range of the fair value of the PSUs that were awarded is €59.36 - €72.06 per share. The key assumptions utilized to calculate the grant-date fair values for these awards are summarized below: Key assumptions Grant date share price €66.85 Expected volatility 17.4% Dividend yield 1.2% Risk-free rate 0% The expected volatility was based on the observed volatility of the Peer Group. The risk-free rate was based on the iBoxx sovereign Eurozone yield. Retention Restricted Share Units The Company awarded members of the GEC and key leaders a total of approximately 119 thousand RSUs. The Chief Executive Officer has not received any RSUs. The RSU awards granted to GEC members and key leaders are conditional on a recipient’s continued service to the Company, as described below. The RSUs, each of which represents the right to receive one common share of the Company, will vest in three equal tranches in March 2019, 2020 and 2021, subject to continued employment with the Company at the time of vesting. None of the RSU awards were forfeited and none of the RSU awards had vested at December 31, 2017. The performance period for the RSUs commenced on January 1, 2016. The fair value of the awards was measured using the share price at the grant date adjusted for the present value of future distributions which employees will not receive during the vesting period. The range of the fair value of the RSUs awarded is €63.00 - €64.64 per share. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
Employee benefits [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS The Group’s provisions for employee benefits are as follows: At December 31, 2017 2016 (€ thousand) Present value of defined benefit obligations: Italian employee severance indemnity (TFR) 22,641 23,783 Pension plans 604 828 Total present value of defined benefit obligations 23,245 24,611 Other provisions for employees 60,914 66,413 Total provisions for employee benefits 84,159 91,024 Defined contribution plan The Group recognizes the cost for defined contribution plans over the period in which the employee renders service and classifies this by function in cost of sales, selling, general and administrative costs and research and development costs. The total income statement expense for defined contributions plans in the years ended December 31, 2017 , 2016 and 2015 was €3,149 thousand , €9,719 thousand and €2,990 thousand , respectively. Defined benefit obligations Italian employee severance indemnity (TFR) Trattamento di fine rapporto or “TFR” relates to the amounts that employees in Italy are entitled to receive when they leave the company 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 the employee’s working life. The Italian legislation regarding this scheme was amended by Law 296 of 27 December 2006 and subsequent decrees and regulations issued in the first part of 2007. Under these amendments, companies with at least 50 employees are obliged to transfer the TFR to the “Treasury fund” managed by the Italian state-owned social security body (“INPS”) or to supplementary pension funds. Prior to the amendments, accruing TFR for employees of all Italian companies could be managed by the company itself. Consequently, the Italian companies’ obligation to INPS and the contributions to supplementary pension funds take the form, under IAS 19 revised, of “Defined contribution plans” 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 consists of the residual obligation for TFR until December 31, 2006. This is an unfunded defined benefit plan as the benefits have already been almost 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, being the required contributions to the pension funds, over the period in which the employee renders service. Pension plans Group companies, primarily in Germany sponsor non-contributory defined benefit pension plans, for which the Group meets the benefit payment obligation when it falls due. Benefits provided depends on the employee’s length of service and their salary in the final years leading up to retirement. The expected benefit payments for the defined benefit obligations are as follows: Expected benefit payments TFR Pension plans (€ thousand) 2018 1,350 41 2019 1,401 41 2020 1,596 42 2021 1,960 42 2022 1,725 3,262 Beyond 2022 7,089 597 Total 15,121 4,025 The following table summarizes the changes in the defined benefit obligations: TFR liability Pension plans Total (€ thousand) Amounts at December 31, 2015 23,119 805 23,924 Included in the consolidated income statement 391 (37 ) 354 Included in other comprehensive income/loss Actuarial losses from financial assumptions 1,580 232 1,812 Other Benefits paid (1,337 ) (172 ) (1,509 ) Other changes 30 — 30 Amounts at December 31, 2016 23,783 828 24,611 Included in the consolidated income statement — 142 142 Included in other comprehensive income/loss Actuarial losses/(gains) from financial assumptions 820 (135 ) 685 Other Benefits paid (1,964 ) (164 ) (2,128 ) Other changes 2 (67 ) (65 ) Amounts at December 31, 2017 22,641 604 23,245 Amounts recognized in the consolidated income statement are as follows: For the years ended December 31, 2017 2016 2015 TFR Pension plans Total TFR Pension plans Total TFR Pension plans Total (€ thousand) Current service cost — 141 141 31 (41 ) (10 ) 8 72 80 Interest (income)/expense — 1 1 360 4 364 74 — 74 Total recognized in the consolidated income statement — 142 142 391 (37 ) 354 82 72 154 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 payments match the timing and amounts of the projected benefit payments. For this plan, the single weighted average discount rate that reflects the estimated timing and amount of the scheme future benefit payments for 2017 is equal to 1.5 percent ( 1.3 percent in 2016 and 1.6 percent in 2015 ). The average duration of the Italian TFR is approximately 9 years. Retirement or employee leaving rates are developed to reflect actual and projected Group experience and legal requirements for retirement in Italy. The discount rates used for the measurement of the pension plan obligation (excluding TFR) and the interest expense/(income) of net period cost, are based on the rate of return on high-quality (AA rated) fixed income investments for which the timing and amounts of payments match the timing and amounts of the projected pension defined benefit plan which for 2017 was equal to approximately 0.7 percent ( 1.3 percent 2016 and 1.6 percent in 2015 ). The average duration of the obligations is approximately 13 years . Current service cost is recognized by function in cost of sales, selling, general and administrative costs or research and development costs. The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is: At December 31, 2017 2016 Changes in assumption of +1% discount rate Changes in assumption of -1% discount rate Changes in assumption of +1% discount rate Changes in assumption of -1% discount rate (€ thousand) Impact on defined benefit obligation (1,771 ) 2,036 (1,909 ) 2,201 The above sensitivity analysis on TFR is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method has been applied as when calculating the defined benefit liability recognized in the statement of the financial position. Other provisions for employees Other provisions for employees consist of the expected future amounts payable to employees in connection with other remuneration schemes, which are not subject to actuarial valuation, including long-term bonus plans. At December 31, 2017 , other provisions for employees comprised long term bonus benefits amounting to €58,090 thousand ( €64,432 thousand at December 31, 2016 ), jubilee benefits granted to certain employees by the Group in the event of achieving 30 years of service amounting to €2,745 thousand ( €1,905 thousand at December 31, 2016 ), and other provisions for employees benefits amounting to €79 thousand ( €76 thousand at December 31, 2016 ). |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2017 | |
Provisions [abstract] | |
PROVISIONS | PROVISIONS Changes in provisions were as follows: At Additional provisions Utilization Translation differences and other At (€ thousand) Warranty and recall campaigns provision 122,411 16,705 (15,328 ) (652 ) 123,136 Legal proceedings and disputes 45,336 6,670 (1,271 ) (360 ) 50,375 Other risks 47,480 8,339 (30,320 ) (1,618 ) 23,881 Total provisions 215,227 31,714 (46,919 ) (2,630 ) 197,392 Warranty and recall campaigns provision The warranty and recall campaigns provision represents the best estimate of commitments given by the Group for contractual, legal, or constructive obligations arising from product warranties given for a specified period of time. Such provisions are recognized on shipment of the car to the dealer. The warranty and recall campaigns provision is estimated on the basis of the Group’s past experience and contractual terms. Related costs are recognized within cost of sales. Takata airbag inflator recalls On May 4, 2016, the United States National Highway Traffic Safety Administration (“NHTSA”) published an amendment (the “Amendment”) to the November 3, 2015 Takata Consent Order regarding Takata airbags manufactured using non-desiccated Phase Stabilized Ammonium Nitrate (“PSAN”), expanding the scope of a prior recall under the Takata Consent Order. The recall is industry wide and replacement parts are limited as Takata is the single supplier. In compliance with the Amendment to the Takata Consent Order, on May 16, 2016, Takata submitted a defect information report (“DIR”) to NHTSA declaring the non-desiccated PSAN airbag inflators, including those sold by Takata to the Group, defective. Although the Group was not aware of any confirmed incidents or warranty claims relating to such airbag inflators mounted in its cars or that the airbag inflators were not performing as designed, as a result of the Amendment issued by NHTSA and the DIR issued by Takata, the Group initiated a global recall relating to certain cars produced between 2008 and 2011. Following a Third Amendment to the Coordinated Remedy Order (“ACRO”) published by NHTSA in December 2016 and an additional Takata DIR filed on January 3, 2017, the Group filed an additional DIR on January 10, 2017 to also include certain cars produced in 2012. As a result of internal assessments, in 2016 Ferrari decided to extend the recall campaign to include all cars produced in all model years based on priority groups and the timeline set by NHTSA. As a result of these developments and due to the uncertainty of recoverability of the costs from Takata, an aggregate provision of € 36,994 thousand was recognized within cost of sales in the year ended December 31, 2016. At December 31, 2017, the provision amounted to €34,567 thousand . Such provision reflects the current best estimate for future costs related to the entire recall campaign to be carried out by the Group. Legal proceedings and disputes The provision for legal proceedings and disputes represents management’s best estimate of the expenditures expected to be required to settle or otherwise resolve legal proceedings and disputes. This class of claims relate to allegations by contractual counterparties that the Group has violated the terms of the arrangements, including by terminating the applicable relationships. Judgments in these proceedings may be issued in 2018, although any such judgment may remain subject to judicial review. While the outcome of such proceedings is uncertain, any losses in excess of the provisions recorded are not expected to be material to the Group’s financial condition or results of operations. The utilization related to the reversal of accruals for legal proceedings and disputes resolved in 2017. Accruals to the provision for legal proceedings and disputes are recognized within other expenses, net. Other risks The provision for other risks are related to disputes and matters which are not subject to legal proceedings, including disputes with suppliers, distributors, employees and other parties. The utilization in 2017 primarily relates to a dispute with a distributor as well as various contractual risks. The following table sets forth additional provisions to other risks recognized for the years ended December 31, 2017 , 2016 and 2015 . For the years ended December 31, 2017 2016 2015 (€ thousand) Recorded in the consolidated income statement within: Cost of sales 8,065 4,499 3,847 Other expenses, net — 14,559 4,111 Selling, general and administrative costs 274 2,604 8 Income tax expense — — 569 8,339 21,662 8,535 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
DEBT | DEBT Balance at December 31, 2016 Proceeds from borrowings Repayments of borrowings Interest accrued and other Translation differences Balance at December 31, 2017 (€ thousand) Borrowings from banks 836,886 10,074 (800,943 ) 264 (8,222 ) 38,059 Bonds 497,614 694,172 — 1,731 — 1,193,517 Securitizations 485,670 232,520 (91,405 ) 178 (70,687 ) 556,276 Other debt 27,871 34,804 (43,084 ) — (1,262 ) 18,329 Total debt 1,848,041 971,570 (935,432 ) 2,173 (80,171 ) 1,806,181 The breakdown of debt by nature and by maturity is as follows: At December 31, 2017 2016 Due within one year Due between one and five years Due beyond five years Total Due within one year Due between one and five years Due beyond five years Total (€ thousand) Bonds — 694,623 498,894 1,193,517 — — 497,614 497,614 Securitizations 254,891 301,385 — 556,276 144,597 341,073 — 485,670 Borrowings from banks 32,811 5,248 — 38,059 227,408 609,478 — 836,886 Other debt 18,329 — — 18,329 27,871 — — 27,871 Total debt 306,031 1,001,256 498,894 1,806,181 399,876 950,551 497,614 1,848,041 Borrowings from banks Borrowings from banks at December 31, 2017 mainly relate to financial liabilities of FFS Inc to support the financial services operations, and in particular (i) €29,189 thousand ( €23,745 thousand at December 31, 2016 ) relating to a U.S. Dollar denominated credit facility for up to $50 million (drawn down for $35 million at December 31, 2017) and bearing interest at LIBOR plus a range of between 65 and 75 basis points; (ii) other borrowings from banks of €8,870 thousand ( €12,707 thousand at December 31, 2016 ) relating to various short and medium term credit facilities. Borrowings from banks at December 31, 2016 also included €800,383 thousand relating to the Term Loan, which was fully repaid in 2017, primarily with proceeds from the 2021 Bond issued in November 2017. See “The Facility” below. The Facility On November 30, 2015, the Company, as borrower and guarantor, and certain other members of the Group, as borrowers, entered into a €2.5 billion facility with a syndicate of banks (the “Facility”). At inception, the Facility comprised a bridge loan of €500 million (the “Bridge Loan”), a term loan of €1,500 million (the “Term Loan”) and a revolving credit facility of €500 million (the “RCF”). In December 2015 the Bridge Loan and Term Loan were fully drawn down for the purposes of repaying financial liabilities with FCA, including the FCA Note that originated as a result of the Restructuring. In March 2016, the Bridge Loan was fully repaid, primarily using the proceeds from the 2023 Bond (see “Bonds” below). In 2016 and 2017 the Company made scheduled payments and voluntary prepayments, funded in part with the proceeds of the 2021 Bond described under “Bonds” below, to fully repay the Term Loan. At December 31, 2017 and 2016 the RCF was undrawn. Proceeds of the RCF may be used from time to time for general corporate and working capital purposes of the Group. The RCF has a maturity of five years from inception of the Facility. Bonds 2023 Bond On March 16, 2016, the Company issued 1.5 percent coupon notes due March 2023, having a principal of €500 million . The bond was issued at a discount for an issue price of 98.977 percent , resulting in net proceeds of €490,729 thousand after the debt discount and issuance costs. The net proceeds were used, together with additional cash held by the Company, to fully repay the €500 million Bridge Loan under the Facility. The bond is unrated and was admitted to trading on the regulated market of the Irish Stock Exchange. The amount outstanding at December 31, 2017 of €498,894 thousand includes accrued interest of €5,938 thousand . 2021 Bond On November 16, 2017, the Company issued 0.25 percent coupon notes due January 2021, having a principal of €700 million . The bond was issued at a discount for an issue price of 99.557 percent , resulting in net proceeds of €694,172 thousand after the debt discount and issuance costs. The net proceeds were primarily used to repay the Term Loan. The bond is unrated and was admitted to trading on the regulated market of the Irish Stock Exchange. The amount outstanding at December 31, 2017 of €694,623 thousand includes accrued interest of €221 thousand . The notes for both the 2023 Bond and the 2021 Bond impose covenants on Ferrari including: (i) negative pledge clauses which require that, in case any security interest upon assets of Ferrari is granted in connection with other notes or debt securities with the consent of Ferrari are, or are intended to be, listed, such security should be equally and ratably extended to the outstanding notes, subject to certain permitted exceptions; (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 Ferrari; (iii) events of default for failure to pay principal or interest or comply with other obligations under the notes with specified cure periods or in the event of a payment default or acceleration of indebtedness or in the case of certain bankruptcy events; and (iv) other clauses that are customarily applicable to debt securities of issuers with a similar credit standing. A breach of these covenants may require the early repayment of the notes. As of December 31, 2017 and 2016, Ferrari was in compliance with the covenants of the notes. Securitizations In 2016 and 2017 FFS Inc has pursued a strategy of self-financing, further reducing dependency on intercompany funding and increasing the portion of self-liquidating debt with various securitization transactions. On January 19, 2016, FFS Inc entered into a revolving securitization program for funding of up to $250 million by pledging retail financial receivables in the United States as collateral. In 2016, proceeds from the first sale of financial receivables were $242 million and were primarily used to repay intercompany loans. The funding limit of the program has been progressively increased over time, including to $275 million on December 16, 2016, to $325 million on July 14, 2017, and to $350 million on December 15, 2017. The notes bear interest at a rate per annum equal to the aggregate of LIBOR plus a margin of 65 basis points. As of December 31, 2017 total proceeds from the sales of financial receivables under the program were $ 325 million . The securitization agreement requires the maintenance of an interest rate cap. On October 20, 2016, FFS Inc entered into a revolving securitization program for funding of up to $200 million by pledging leasing financial receivables in the United States as collateral. In 2016, proceeds from the first sale of financial receivables were $175 million and were primarily used to repay U.S. Dollar denominated bank borrowings. On April 21, 2017 the funding limit of the program was increased to $225 million and this amount remained unchanged in the renewal of the program in September 2017. The notes bear interest at a rate per annum equal to the aggregate of LIBOR plus a margin of 65 basis points. As of December 31, 2017 total proceeds from the sales of financial receivables under the program were $ 222 million . The securitization agreement requires the maintenance of an interest rate cap. On December 28, 2016, FFS Inc entered into a revolving securitization program for funding of up to $120 million by pledging credit lines to Ferrari customers secured by personal vehicle collections and personal guarantees in the United States as collateral. In 2016, proceeds from the first sale of financial receivables were $64 million and were primarily used to repay U.S. Dollar denominated bank borrowings. On December 20, 2017 the funding limit of the program was increased to $135 million . The notes bear interest at a rate per annum equal to the aggregate of LIBOR plus a margin of 120 basis points. As of December 31, 2017 total proceeds from the sales of financial receivables under the program were $ 120 million . The securitization agreement does not require an interest rate cap. Cash collected from the settlement of receivables or lines of credit pledged as collateral is subject to certain restrictions regarding its use and is principally applied to repay principal and interest of the funding. Such cash amounted to € 28,230 thousand at December 31, 2017 (€ 19,411 thousand at December 31, 2016 ). Other debt Other debt primarily relates to funding for operating activities of the Group’s U.S. subsidiaries. |
TRADE PAYABLES
TRADE PAYABLES | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE PAYABLES | TRADE PAYABLES Trade payables of €607,505 thousand at December 31, 2017 ( €614,888 thousand at December 31, 2016 ) are entirely due within one year. The carrying amount of trade payables is considered to be equivalent to their fair value. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES An analysis of other liabilities is as follows: At December 31, 2017 2016 (€ thousand) Deferred income 274,186 273,069 Advances and security deposits 167,293 229,975 Accrued expenses 77,024 61,403 Payables to personnel 38,488 36,843 Social security payables 20,553 18,559 Other 42,806 36,426 Total other liabilities 620,350 656,275 Deferred income primarily includes amounts received under the scheduled maintenance program of €173,646 thousand at December 31, 2017 and €155,121 thousand at December 31, 2016 , which are deferred and recognized as net revenues over the length of the maintenance program term. Deferred income also includes amounts collected under various other agreements, which are dependent upon the future performance of a service or other act of the Group. Advances and security deposits at December 31, 2017 and at December 31, 2016 primarily include advances received from clients for the purchase of special series, limited edition and supercars. Upon shipment of such cars, the advances are recognized as revenue. The decrease in 2017 primarily related to a reduction in advances received for the LaFerrari Aperta, which was partially offset by advances received for the Ferrari J50. An analysis of other liabilities (excluding accrued expenses and deferred income) by due date is as follows: At December 31, 2017 2016 Due within one year Due between one and five years Due beyond five years Total Due within one year Due between one and five years Due beyond five years Total (€ thousand) Total other liabilities (excluding accrued expenses and deferred income) 264,380 4,760 — 269,140 309,864 4,913 7,026 321,803 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2017 | |
Fair value measurement [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT IFRS 13 establishes a hierarchy that categorizes into three levels the inputs to the valuation techniques used to measure fair value by giving 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 are quoted prices (unadjusted) in active markets for identical assets and liabilities that the Group can access at the measurement date. • Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the assets or liabilities, either directly or indirectly. • Level 3 inputs are unobservable inputs for the assets and liabilities. Assets and liabilities that are measured at fair value on a recurring basis The following table shows the fair value hierarchy for financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2017 and 2016 : At December 31, 2017 Note Level 1 Level 2 Level 3 Total (€ thousand) Cash and cash equivalents 647,706 — — 647,706 Investments and other financial assets - Liberty Shares 17 5,705 — — 5,705 Current financial assets 20 — 11,686 — 11,686 Total assets 653,411 11,686 — 665,097 Other financial liabilities 20 — 1,444 — 1,444 Total liabilities — 1,444 — 1,444 At December 31, 2016 Note Level 1 Level 2 Level 3 Total (€ thousand) Cash and cash equivalents 457,784 — — 457,784 Investments and other financial assets - Delta Topco option 17 — 11,967 — 11,967 Current financial assets 20 — 10,388 — 10,388 Total assets 457,784 22,355 — 480,139 Other financial liabilities 20 — 39,638 — 39,638 Total liabilities — 39,638 — 39,638 There were no transfers between fair value hierarchy levels between 2016 and 2017. In 2017, the Group exercised the Delta Topco option as a result of the sale of Delta Topco to Liberty Media Corporation, which was completed on January 23, 2017. Therefore the Delta Topco option was derecognized and the Group’s investment in the Liberty Shares and exchangeable notes were recognized. In November 2017 the Liberty exchangeable notes were converted into Liberty Shares. The fair value of current financial assets and other financial liabilities is related to derivative financial instruments and is measured by taking into consideration market parameters at the balance sheet date, using valuation techniques widely accepted in the financial business environment. In particular, the fair value of forward contracts, currency swaps and interest rate caps is determined by taking the prevailing foreign currency exchange rate and interest rates, as applicable, at the balance sheet date. The fair value of cash and cash equivalents usually approximates fair value due to the short maturity of these instruments, which consist primarily of bank current accounts. Assets and liabilities not measured at fair value on a recurring basis For financial instruments represented by short-term receivables and payables, for which the present value of future cash flows does not differ significantly from carrying value, the Group assumes that carrying value is a reasonable approximation of the fair value. In particular, the carrying amount of current receivables and other current assets and of trade payables and other liabilities approximates their fair value. The following table represents carrying amount and fair value for the most relevant categories of financial assets and liabilities not measured at fair value on a recurring basis: At December 31, 2017 2016 Note Carrying amount Fair value Carrying amount Fair value (€ thousand) Receivables from financing activities 732,947 732,947 790,377 790,377 Client financing 704,014 704,014 758,679 758,679 Dealer financing 19 28,933 28,933 31,698 31,698 Total 732,947 732,947 790,377 790,377 Debt 25 1,806,181 1,819,337 1,848,041 1,849,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions [abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Pursuant to IAS 24, the related parties of the Group are entities and individuals capable of exercising control, joint control or significant influence over the Group and its subsidiaries, companies belonging to the FCA Group and Exor Group, unconsolidated subsidiaries of the Group, associates and joint ventures. In addition, members of Ferrari Group Board of Directors, Board of Statutory Auditors and executives with strategic responsibilities and their families are also considered related parties. The Group carries out transactions with related parties on commercial terms that are normal in the respective markets, considering the characteristics of the goods or services involved. Transactions carried out by the Group with these related parties are primarily of a commercial nature and, in particular, these transactions relate to: Transactions with FCA Group companies • the sale of engines and car bodies to Maserati S.p.A. (“Maserati”) which is controlled by the FCA Group; • the purchase of engine components for the use in the production of Maserati engines from FCA US LLC, which is controlled by FCA Group; • the purchase of automotive lighting and automotive components from Magneti Marelli S.p.A., Automotive Lighting Italia S.p.A., Sistemi Sospensioni S.p.A. and Magneti Marelli Powertrain Slovakia s.r.o. (which form part of “Magneti Marelli”), which are controlled by the FCA Group; • transactions with other FCA Group companies, mainly relating to the services provided by FCA Group companies, including human resources, payroll, tax, customs and procurement of insurance coverage and sponsorship revenues for the display of FCA Group company logos on the Formula 1 cars; • in 2016, the Group sold a portion of its trade and financial receivables to the FCA Bank Group, which is a joint venture between FCA Group and Credit Agricole. On derecognition of the asset, the difference between the carrying amount and the consideration received or receivable was recognized in cost of sales; • in November 2016 , the Group finalized an agreement with FCA Bank to provide financial services in Europe. Under such agreement FCA Bank acquired from the Group a majority stake in FFS GmbH for a purchase price of €18,595 thousand , which the Group received upon sale. In addition to the purchase price, as a result of the funding of FFS GmbH being directly provided by FCA Bank, the Group also received cash of €431,958 thousand . Transactions with Exor Group companies • the Group incurs rental costs from Iveco Group companies related to the rental of trucks used by the Formula 1 racing team; • the Group earns sponsorship revenue from Iveco S.p.A. Transactions with other related parties • the purchase of components for Formula 1 racing cars from COXA S.p.A., controlled by Piero Ferrari; • consultancy services provided by HPE S.r.l., controlled by Piero Ferrari; • sponsorship agreement relating to Formula 1 activities with Ferretti S.p.A.; • sale of cars to certain members of the Board of Directors of Ferrari N.V. and Exor. Pursuant to the charter of the Audit Committee, the Audit Committee reviews and approves related party transactions in order ensure that they are entered into on arm’s length terms. In accordance with IAS 24, transactions with related parties also include compensation to Directors, the Audit Committee and managers with strategic responsibilities. The amounts of the transactions with related parties recognized in the consolidated income statement are as follows: For the years ended December 31, 2017 2016 2015 Net revenues Costs (1) Net financial expenses/(income) Net revenues Costs (1) Net financial expenses/(income) Net revenues Costs (1) Net financial expenses/(income) (€ thousand) FCA Group companies Maserati 315,407 4,698 — 241,478 1,933 — 184,444 2,250 67 FCA US LLC 6 44,882 — — 37,612 — 1,253 23,562 — Magneti Marelli 1,866 36,670 — 1,735 29,663 — 1,397 29,746 — Other FCA Group companies 6,754 7,007 (1,191 ) 5,472 9,163 (471 ) 7,412 42,768 (11,601 ) Total FCA Group companies 324,033 93,257 (1,191 ) 248,685 78,371 (471 ) 194,506 98,326 (11,534 ) Exor Group companies (excluding the FCA Group) 283 492 — 192 173 — 277 338 — Other related parties COXA S.p.A. 48 6,141 — 121 7,096 — 174 7,561 — HPE S.r.l. — 7,525 — — 6,447 — 11 5,518 — Other related parties 2,111 — — 1,950 24 — 1,024 6 — Total other related parties 2,159 13,666 — 2,071 13,567 — 1,209 13,085 — Total transactions with related parties 326,475 107,415 (1,191 ) 250,948 92,111 (471 ) 195,992 111,749 (11,534 ) Total for the Group 3,416,890 1,986,792 29,260 3,105,084 1,899,433 27,729 2,854,369 1,848,467 10,151 ______________________________ (1) Costs include cost of sales, selling, general and administrative costs and other expenses/(income). Non-financial assets and liabilities originating from related party transactions are as follows: At December 31, 2017 2016 Trade receivables Trade payables Other current assets (1) Other liabilities (2) Trade receivables Trade payables Other current assets (1) Other liabilities (2) (€ thousand) FCA Group companies Maserati 71,560 3,028 — 37,496 73,532 4,462 — 32,379 FCA US LLC 129 6,848 — — 166 12,529 — — Magneti Marelli 899 8,103 — — 1,739 6,702 — — Other FCA Group companies 2,657 4,646 2,097 27 257 3,291 1,439 12 Total FCA Group companies 75,245 22,625 2,097 37,523 75,694 26,984 1,439 32,391 Exor Group companies (excluding the FCA Group) 345 202 — — 235 41 — — Other related parties COXA S.p.A. 3 1,142 — — 16 1,194 — — HPE S.r.l. — 1,150 — — — 1,162 — — Other related parties 268 — — — 554 68 — 4 Total other related parties 271 2,292 — — 570 2,424 — 4 Total transactions with related parties 75,861 25,119 2,097 37,523 76,499 29,449 1,439 32,395 Total for the Group 239,410 607,505 51,566 649,510 243,977 614,888 55,041 697,870 ______________________________ (1) Other current assets include other current assets and current tax receivables. (2) Other liabilities include other liabilities and current tax payables. Financial assets and liabilities originating from related party transactions are as follows: 2017 2016 Receivables from financing activities Current financial assets Debt Receivables from financing activities Current financial assets Debt FCA Global Finance — — — 861 — Total transactions with related parties — — — — 861 — Total for the Group 732,947 15,683 1,806,181 790,377 16,276 1,848,041 Emoluments to Directors, Statutory Auditors and Key Management The fees of the Directors and Statutory Auditors of Ferrari N.V. (and for 2015 also Ferrari S.p.A.) for carrying out their respective functions, including those in other consolidated companies, are as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Directors of Ferrari N.V. 17,767 8,617 243 Directors of Ferrari S.p.A. — — 2,904 Statutory auditors 112 105 105 Total emoluments 17,879 8,722 3,252 The aggregate compensation to Directors of Ferrari N.V. for year ended December 31, 2017 was €17,767 thousand , inclusive of the following: • €1,277 thousand for salary; and • €16,490 thousand for share-based compensation recognized for the performance period 2016 and 2017 in relation to 450 thousand PSUs awarded to the CEO under the equity incentive plan, which covers a five -year performance period from 2016 to 2020, consistent with the Company’s strategic horizon. The PSU awards vest in three equal tranches in March 2019, 2020 and 2021, subject to the achievement of a market performance condition related to Total Shareholder Return, therefore at December 31, 2017 none of the PSU awards had vested. See Note 22 “Share-based compensation” for information related to the equity incentive plan. The aggregate compensation to Directors of Ferrari N.V. for year ended December 31, 2016 was €8,617 thousand and for the year ended December 31, 2015, including Ferrari S.p.A., was €3,147 thousand , inclusive of the following: • € 2,827 thousand in 2016 and € 2,372 thousand in 2015 for salary; • €290 thousand in 2016 and €775 thousand in 2015 as the Group’s contribution to defined benefit obligations and long-term bonus plans; and • €5,500 thousand in 2016 for compensation costs related to the retirement of the former CEO of the Group. Non-Executive Directors’ compensation for the years ended December 31, 2017 and 2016 included €418 thousand and €1,110 thousand , respectively, that was settled in treasury shares in 2017. Following the election of the Board of Directors at the Annual General Meeting of Shareholders on April 15, 2016, Non-Executive Directors had the option to receive the board retainer fee component of their Directors’ compensation in 50% cash and 50% Ferrari common shares, or alternatively, to receive 100% in Ferrari common shares. Following the Annual General Meeting of Shareholders on April 14, 2017, Non-Executive Directors’ compensation is fully settled in cash. The amounts settled in Ferrari common shares were accounted for as equity-settled share-based compensation and recognized as increases to equity in the relevant year. The aggregate compensation for remaining key management in 2017 was €16,015 thousand ( €12,290 thousand in 2016 ), inclusive of the following: • €10,964 thousand for salary ( €11,059 thousand in 2016); • €314 thousand for long-term benefits ( €1,231 thousand in 2016 ); and • €4,737 thousand for share-based compensation in relation to PSUs and RSUs awarded to key management under the equity incentive plan for the performance period covering 2016 and 2017. The PSU and RSU awards vest in three equal tranches in March 2019, 2020 and 2021, subject to the achievement of a market performance condition related to Total Shareholder Return, therefore at December 31, 2017 none of the PSU or RSU awards had vested. See Note 22 “Share-based compensation” for information related to the equity incentive plan. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Commitments [Abstract] | |
COMMITMENTS | COMMITMENTS Arrangements with key suppliers From time to time, in the ordinary course of 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. Arrangements with sponsors Certain of the Group’s sponsorship contracts include terms whereby the Group is obligated to purchase a minimum quantity of goods and/or services from its sponsors. Future minimum purchase obligations under these arrangements at December 31, 2017 were as follows: At December 31, 2017 Due within one year Due between one and three years Due between three and five years Due beyond five years Total (€ thousand) Minimum purchase obligations 137,250 101,988 5,760 4,372 249,370 Operating lease agreements The future aggregate minimum lease payments under non-cancellable operating leases, mainly relating to the lease of property and cars, are as follows: At December 31, 2017 Due within one year Due between one and three years Due between three and five years Due beyond five years Total (€ thousand) Future minimum lease payments under operating lease agreements 694 1,353 105 — 2,152 During 2017 , the Group’s operating lease expenses amounted to € 16,964 thousand (€ 14,820 thousand in 2016 and € 19,612 thousand in 2015 ). |
QUALITATIVE AND QUANTITATIVE IN
QUALITATIVE AND QUANTITATIVE INFORMATION ON FINANCIAL RISKS | 12 Months Ended |
Dec. 31, 2017 | |
Qualitative and quantitative information on financial risks [Abstract] | |
QUALITATIVE AND QUANTITATIVE INFORMATION ON FINANCIAL RISKS | QUALITATIVE AND QUANTITATIVE INFORMATION ON FINANCIAL RISKS The Group is exposed to the following financial risks connected with its operations: • financial market risk (principally relating to foreign currency exchange rates, and to a much lesser extent, interest rates), as the Group operates internationally in different currencies; • liquidity risk, with particular reference to the availability of funds and access to the credit market, should the Group require, and to financial instruments in general; • credit risk, arising both from its normal commercial relations with final clients and dealers, and its financing activities. These risks could significantly affect the Group’s financial position, results of operations and cash flows, and for this reason the Group 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. 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 section 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. Financial market risks Due to the nature of the Group’s business, the Group is exposed to a variety of market risks, including foreign currency exchange rate risk and to a lesser extent, interest rate risk. The Group’s exposure to foreign currency exchange rate risk arises from the geographic distribution of the Group’s shipments, as the Group generally sells its models in the currencies of the various markets in which the Group operates, while the Group’s industrial activities are all based in Italy, and primarily denominated in Euro. The Group’s exposure to interest rate risk arises from the need to fund certain 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/(loss), thereby indirectly affecting the costs and returns of financing and investing transactions. These risks could significantly affect the Group’s financial position, results of operations and cash flows, and for this reason these risks are identified and monitored, in order to detect potential negative effects in advance and take the necessary actions to mitigate them, primarily through the Group’s operating and financing activities, and if required, through the use of derivative financial instruments. The Group has in place various risk management policies, which primarily relate to foreign exchange, interest rate and liquidity risks. The Group’s risk management policies permit derivatives to be used for managing exposures to foreign exchange rates and interest rates. Counterparties to these agreements are major financial institutions. Derivatives cannot be entered into for speculative purposes. In particular, the Group used derivative financial instruments as cash flow hedges for the purpose of fixing the foreign currency exchange rate at which a predetermined proportion of forecasted transactions denominated in foreign currencies will be accounted for. Accordingly, as a result of applying risk management policies with respect to foreign currency exchange exposure, the Group’s results of operations have not been fully exposed to fluctuations in foreign currency exchange rates. However, despite these risk management policies and hedging transactions, sudden adverse movements in foreign currency exchange rates could have a significant effect on the Group’s earnings and cash flows. The Group also enters into interest rate caps as requested by certain of its securitization agreements. Information on the fair value of derivative financial instruments held is provided in Note 20. 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 foreign currency exchange rates can affect the operating results of that company. In 2017 , the total trade flows exposed to foreign currency exchange rate risk amounted to the equivalent of 51 percent of the Group’s turnover ( 57 percent in 2016 ). • The main foreign currency exchange rate to which the Group is exposed is the Euro/U.S. Dollar for sales in U.S. Dollar in the United States and other markets where the U.S. Dollar is the reference currency. In 2017 , the value of commercial activity exposed to fluctuations in the Euro/U.S. Dollar exchange rate accounted for approximately 62 percent ( 60 percent in 2016 ) of the total currency risk from commercial activity. In 2017, the commercial activity exposed to the Euro/Pound Sterling exchange rate exceeded 10 percent while in 2016 such exposure was below 10 percent. Other significant exposures included the exchange rate between the Euro and the following currencies: Japanese Yen, Chinese Renminbi, Swiss Franc, Canadian Dollar and Australian Dollar. None of these exposures, taken individually, exceeded 10 percent of the Group’s total foreign currency exchange rate exposure for commercial activity in 2017 . It is the Group’s policy to use derivative financial instruments to hedge between 50 and 90 percent of certain exposures subject to foreign currency exchange risk for up to twelve months. • Several subsidiaries are located in countries that are outside the Eurozone, in particular the United States, the United Kingdom, Switzerland, China, Hong Kong, Japan, Australia and Singapore. As the Group’s reporting currency is the Euro, the income statements of those companies are converted into Euro using the average exchange rate for the period and, even if revenues and margins are unchanged in local currency, changes in exchange rates can impact the amount of revenues, costs and profit as restated in Euro. • The amount of assets and liabilities of consolidated companies that report in a currency other than the Euro may vary from period to period as a result of changes in exchange rates. The effects of these changes are recognized directly in equity as a component of other comprehensive income/(loss) under gains/(losses) from currency translation differences. The Group monitors its principal exposure to conversion exchange risk, although there was no specific hedging in this respect at the reporting date. Exchange differences arising on the settlement of monetary items or on reporting monetary items at rates different from those at which they were initially recorded during the period or in previous financial statements, are recognized in the consolidated income statement within the net financial income/(expenses) line item or as cost of sales for charges arising from financial services companies. The impact of foreign currency exchange rate differences recorded within financial income/(expenses) for the year ended December 31, 2017 , except for those arising on financial instruments measured at fair value, amounted to net losses of €18,059 thousand (net gains of €8,335 thousand and €10,794 thousand for the years ended December 31, 2016 and 2015 , respectively). The impact of foreign currency exchange rate differences arising from financial services companies recognized under cost of sales, except for those arising on financial instruments measured at fair value, amounted to net losses of €58,808 thousand in 2016 (net gains of €20,908 thousand in 2015 ). Following the deconsolidation of FFS GmbH in November 2016, all of the Group’s financial services activities are conducted in the functional currency of the related financial services companies, therefore, such impact in 2017 was nil. Except as noted above, there have been no substantial changes in 2017 in the nature or structure of exposure to foreign currency exchange rate risk or in the Group’s hedging policies. The potential decrease in fair value of derivative financial instruments held by the Group at December 31, 2017 to hedge against foreign currency exchange rate risk, which would arise in the case of a hypothetical, immediate and adverse change of 10 percent in the exchange rates of the major foreign currencies with the Euro, would be approximately €45,439 thousand ( €128,753 thousand at December 31, 2016 ). Receivables, payables and future trade flows for which hedges have been put in place were not included in the analysis. It is reasonable to assume that changes in foreign currency exchange rates will produce the opposite effect, of an equal or greater amount, on the underlying transactions that have been hedged. Information on interest rate risk The Group’s exposure to interest rate risk, though less significant, arises from the need to fund financial services 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/(loss), thereby indirectly affecting the costs and returns of financing and investing transactions. The Group’s most significant floating rate financial assets at December 31, 2017 were cash and cash equivalents and certain receivables from financing activities (related to client and dealer financing) while 32 percent of our total debt bears floating rates of interest. At December 31, 2017 , a 10 basis point decrease in interest rates on floating rate financial assets and debt, with all other variables held constant, would have resulted in a decrease in profit before taxes of €225 thousand on an annual basis (an increase of €367 thousand at December 31, 2016 ). The analysis is based on the assumption that floating rate financial assets and debt which expires during the projected 12 -month period will be renewed or reinvested in similar instruments, bearing the hypothetical short-term interest rates. Liquidity risk Liquidity risk arises if the Group is unable to obtain the funds needed to carry out its operations under economic conditions. The main determinant of the Group’s liquidity position is the cash generated by or used in operating and investing activities. From an operating point of view, the Group manages liquidity risk by monitoring cash flows and keeping an adequate level of funds at its disposal. The main funding operations and investments in cash and marketable securities of the Group are centrally managed or supervised by the treasury department with the aim of ensuring effective and efficient management of the Group’s liquidity. The Group has established series of policies which are managed or supervised centrally by the treasury department with the purpose of optimizing the management of funds and reducing liquidity risk which include: • centralizing liquidity management through the use of cash pooling arrangement • maintaining a conservative level of available liquidity • diversifying sources of funding • obtaining adequate credit lines • monitoring future liquidity requirements on the basis of business planning Intercompany financing between Group entities is not restricted other than through the application of covenants requiring that transactions with related parties be conducted at arm’s length terms. Details on the maturity profile of the Group’s financial assets and liabilities and on the structure of derivative financial instruments are provided in Notes 20 and 26. Details of the repayment of derivative financial instruments are provided in Note 20. During 2015 the Group entered into a new revolving credit facility of €500 million . This facility was entirely undrawn at December 31, 2016 and 2017 . The Group believes that the funds currently available to it, in addition to those that will be generated from operating activities, will enable Ferrari to satisfy the requirements of its investing activities and working capital needs, fulfill its obligations to repay its debt and ensure an appropriate level of operating and strategic flexibility. The Group, therefore believes there is no significant risk of a lack of liquidity. Credit risk Credit risk is the risk of economic loss arising from the failure to collect a receivable. Credit risk encompasses the direct risk of default and the risk of a deterioration of the creditworthiness of the counterparty. The maximum credit risk to which the Group is theoretically exposed at December 31, 2017 is represented by the carrying amounts of the financial assets stated in the consolidated statement of financial position sheet and the nominal value of the guarantees provided. Dealers and clients are subject to a specific evaluation of their creditworthiness. Additionally, it is Group practice to obtain financial guarantees against risks associated with credit granted for the purchase of cars and parts. These guarantees are further strengthened, where possible, by retaining title on cars subject to financing agreement. Credit positions of material significance are evaluated on an individual basis. Where objective evidence exists that they are uncollectible, in whole or in part, specific write-downs are recognized. The amount of the write-down is based on an estimate of the recoverable cash flows, timing of those cash flows, the cost of recovery and the fair value of any guarantees received. Receivables from financing activities amounting to €732,947 thousand at December 31, 2017 ( €790,377 thousand at December 31, 2016 ) are shown net of the allowance for doubtful accounts amounting to €6,948 thousand ( €11,556 thousand at December 31, 2016 ). After considering the allowance for doubtful accounts, €11,943 thousand of receivables were overdue (€ 41,594 thousand at December 31, 2016 ). Therefore, overdue receivables represent a minor portion of receivables from financing activities. Receivables from financing activities relate entirely to the financial services portfolio and such receivables are generally secured on the titles of cars or other guarantees. Trade receivables amounting to €239,410 thousand at December 31, 2017 ( €243,977 thousand at December 31, 2016 ) are shown net of the allowance for doubtful accounts amounting to €21,993 thousand ( €19,174 thousand at December 31, 2016 ). After considering the allowance for doubtful accounts, €32,336 thousand of receivables were overdue (€ 18,567 thousand at December 31, 2016 ). |
ENTITY-WIDE DISCLOSURES
ENTITY-WIDE DISCLOSURES | 12 Months Ended |
Dec. 31, 2017 | |
Entity-wide disclosures [Abstract] | |
ENTITY-WIDE DISCLOSURES | ENTITY-WIDE DISCLOSURES The following table presents an analysis of net revenues by geographic location of the Group’s clients: For the years ended December 31, 2017 2016 2015 (€ thousand) Italy 563,921 387,184 238,532 Other EMEA 1,308,261 1,314,788 1,209,916 Americas (1) 920,858 835,045 884,971 China, Hong Kong and Taiwan (on a combined basis) 282,550 272,223 257,249 Rest of APAC (2) 341,300 295,844 263,701 Total net revenues 3,416,890 3,105,084 2,854,369 ______________________________ (1) Americas includes the United States of America, Canada, Mexico, the Caribbean and of Central and South America (2) Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia and South Korea The following table presents an analysis of non-current assets other than financial instruments and deferred tax assets by geographic location: At December 31, 2017 2016 Property, plant and equipment Goodwill Intangible assets Property, plant and equipment Goodwill Intangible assets (€ thousand) Italy 704,262 785,182 439,369 661,770 785,182 353,116 Other EMEA 2,368 — — 2,430 — — Americas (1) 2,760 — 812 3,877 — 988 China, Hong Kong and Taiwan (on a combined basis) 264 — — 258 — — Rest of APAC (2) 606 — 275 948 — 290 Total 710,260 785,182 440,456 669,283 785,182 354,394 ______________________________ (1) Americas includes the United States of America, Canada, Mexico, the Caribbean and of Central and South America (2) Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia and South Korea |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Group has evaluated subsequent events through February 23, 2018, which is the date the Consolidated Financial Statements were authorized for issuance. On February 9, 2018 the Company announced its intention to launch a share buyback program. The Company expects the program to involve the repurchase from time to time of up to €100 million in common shares. The program is intended to optimize the capital structure of the Company. Shares repurchased may be used to meet the Company’s obligations arising from the equity incentive plan approved in 2017. Under the program, as of February 20, 2018 the Company purchased an aggregate of 190,600 common shares on the New York Stock Exchange (NYSE) for an aggregate consideration of $ 22,838,301 . As of February 20, 2018 the Company held 5,160,225 common shares in treasury, and in total the Company held 2.06 percent of the total issued share capital in treasury, including the common shares and the special voting shares. On February 20, 2018, the Company announced that Scuderia Ferrari has extended its partnership agreement with Philip Morris International, continuing a collaboration of nearly five decades. On February 21, 2018, the Group announced that it has selected the 88th edition of the Geneva International Motor Show for the world premiere of the Ferrari 488 Pista, the Group’s successor to Ferrari’s V8-engined special series. The Ferrari 488 Pista marks a significant step forward from the previous special series in terms of both sporty dynamics and for the level of technological carryover from racing. On February 22, 2018, the Company presented the new car for the 2018 Formula 1 World Championship. On February 23, 2018, the Board of Directors of Ferrari N.V. recommended to the Company’s shareholders that the Company declare a dividend of €0.71 per common share, totaling approximately €134 million . The proposal is subject to the approval of the Company’s shareholders at the AGM to be held on April 13, 2018. |
SIGNIFICANT ACCOUNTING POLICI40
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
New Standards, Amendments and Interpretations | New standards and amendments effective from January 1, 2017 The following new standards and amendments that are applicable from January 1, 2017 were adopted by the Group for the preparation of these Consolidated Financial Statements. • The Group adopted the amendments to IAS 12 - Income taxes. The amendments clarify how to account for deferred tax assets related to debt instruments measured at fair value. Specifically, the amendments clarify the requirements on recognition of deferred tax assets for unrealized losses in order to address diversity in practice. There was no effect from the adoption of these amendments. • The Group adopted the amendments to IAS 7 - Statement of Cash Flows, which requires companies to provide information about changes in their financing liabilities. The amendments are aimed at improving disclosures so that users of financial statements are better able to understand the changes in a company’s debt, including changes from cash flows and non-cash changes. There was no effect from the adoption of these amendments. • The Group adopted the amendments to IFRS 12 - Disclosure of Interests in Other Entities which were included in the Annual Improvements to IFRSs 2014 - 2016 Cycle . The amendments relate to disclosures of an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale in accordance with IFRS 5. There was no effect from the adoption of these amendments. New standards, amendments and interpretations not yet effective The standards, amendments and interpretations issued by the International Accounting Standards Board (“IASB”) that will have mandatory application in 2018 or subsequent years are listed below: In May 2014 , the IASB issued IFRS 15 - Revenue from Contracts with Customers . The standard requires a company to recognize revenue upon transfer of control of goods or services to a customer at an amount that reflects the consideration it expects to receive. This new revenue recognition model defines a five step process to achieve this objective. The updated guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In April 2016, the IASB issued amendments to the standard which do not change the underlying principles of the standard, but clarify how those principles should be applied. The amendments clarify how to identify a performance obligation in a contract, determine whether a company is a principal or an agent and determine whether the revenue from granting a license should be recognized at a point in time or over time. The amendments also provide two additional reliefs to reduce cost and complexity. The standard and amendments are effective for annual periods beginning on or after January 1, 2018, with earlier adoption permitted. The Group will adopt the standard and amendments for its annual period beginning on January 1, 2018. The Group has completed its analysis of the impact of adoption, including an analysis of each of the Group’s revenue streams by applying the five-step model provided under IFRS 15. In performing the analysis, the Group identified the main revenue streams (please refer to Note 4), and as permitted under the standard, applied the guidance in IFRS 15 to portfolios of contracts (or performance obligations) with similar characteristics in situations where the Group reasonably expects that the effects on the financial statements of applying the standard to the portfolio would not differ materially from applying the standard to the individual contracts (or performance obligations) within that portfolio. Based on the analysis performed, the Group concluded that the current accounting treatment of revenue from contracts with customers is in accordance with the requirements of IFRS 15. The Group will not apply any of the practical expedients permitted upon transition under the guidance in appendix C of IFRS 15. As permitted under IFRS 15, the Group will adopt the standard and amendments retrospectively with the cumulative effect of initial adoption recognized at the date of initial application (the “modified retrospective approach”), which has been determined to be January 1, 2018 and there will be no material impact on the Group’s consolidated financial statements upon initial adoption of the standard and amendments. In July 2014 the IASB issued IFRS 9 - Financial Instruments . The improvements introduced by the new standard includes a logical approach for classification and measurement of financial instruments driven by cash flow characteristics and the business model in which an asset is held, a single “expected loss” impairment model for financial assets and a substantially reformed approach for hedge accounting. The standard is effective, retrospectively with limited exceptions, for annual periods beginning on or after January 1, 2018 with earlier application permitted. In October 2017 the IASB issued amendments to IFRS 9 that allow, under certain conditions, for a prepayable financial asset with negative compensation payments to be measured at amortized cost or at fair value through other comprehensive income. The final amendments also contain a clarification relating to the accounting for a modification or exchange of a financial liability measured at amortized cost that does not result in the derecognition of the financial liability. The amendments are effective on or after January 1, 2019. The Group has completed its analysis of the impact of adoption, including an analysis of each of the Group’s classes of financial assets, financial liabilities and derivative instruments by applying the requirements provided by the new standard. Based on the analysis performed, the Group concluded that the current accounting treatment of financial assets, financial liabilities and derivative instruments is in accordance with the requirements of IFRS 9 and, therefore, there will be no material impact on the Group’s consolidated financial statements upon initial adoption of the standard and related amendments. In January 2016, the IASB issued IFRS 16 - Leases which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract and replaces the previous leases standard, IAS 17 - Leases. IFRS 16, which is not applicable to service contracts, but only applicable to leases or lease components of a contract, defines a lease as a contract that conveys to the customer (lessee) the right to use an asset for a period of time in exchange for consideration. IFRS 16 eliminates the classification of leases for the lessee as either operating leases or finance leases as required by IAS 17 and, instead, introduces a single lessee accounting model whereby a lessee is required to recognize assets and liabilities for all leases with a term that is greater than 12 months, unless the underlying asset is of low value, and to recognize depreciation of lease assets separately from interest on lease liabilities in the income statement. As IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17, a lessor will continue to classify its leases as operating leases or finance leases and to account for those two types of leases differently. IFRS 16 is effective from January 1, 2019 with early adoption allowed only if IFRS 15 - Revenue from Contracts with Customers is also applied. The Group will not early adopt the standard and is currently evaluating the method of implementation and impact of adoption. In June 2016, the IASB issued amendments to IFRS 2 - Share-Based Payment , which provide requirements on the accounting for (i) the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments; (ii) share-based payment transactions with a net settlement feature for withholding tax obligations; and (iii) a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled. The amendments are effective for annual periods beginning on or after January 1, 2018 with early application permitted. The Group will apply the amendments to share-based payment transactions under the Group’s equity incentive plan that contains a net settlement feature for withholding tax obligations, resulting in such transactions being classified in their entirety as equity-settled. The Group does not expect any additional impact from the adoption of these amendments. In December 2016, the IASB issued Annual Improvements to IFRSs 2014 - 2016 Cycle , which has amendments to three Standards: IFRS 12 - Disclosure of Interests in Other Entities (effective date of January 1, 2017) , IFRS 1- First-time Adoption of International Financial Reporting Standards (effective date of January 1, 2018) and IAS 28 - Investments in Associates and Joint Ventures (effective date of January 1, 2018). The amendments clarify, correct or remove redundant wording in the related IFRS Standard and are not expected to have a material impact upon adoption. In December 2016, the IASB issued IFRIC Interpretation 22 - Foreign Currency Transactions and Advance Consideration which addresses the exchange rate to use in transactions that involve advance consideration paid or received in a foreign currency. The interpretation is effective on or after January 1, 2018. The Group is currently evaluating the impact of adoption of this interpretation. In May 2017, the IASB issued IFRS 17 - Insurance Contracts which establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued as well as guidance relating to reinsurance contracts held and investment contracts with discretionary participation features issued. IFRS 17 is effective on or after January 1, 2021 with early adoption allowed if IFRS 15 - Revenue from Contracts with Customers and IFRS 9 - Financial Instruments are also applied. The Group does not expect any impact from the adoption of this standard. In June 2017, the IASB issued IFRIC Interpretation 23 - Uncertainty over Income Tax Treatments which provides requirements regarding how to reflect uncertainties in accounting for income taxes. The interpretation is effective on or after January 1, 2019. The Group is currently evaluating the impact of adoption of this interpretation. In October 2017 the IASB issued amendments to IAS 28 - Long Term Interests in Associates and Joint Ventures to clarify that an entity applies IFRS 9 to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied. The amendment is effective on or after January 1, 2019. The Group does not expect a material impact from the adoption of these amendments. In December 2017, the IASB issued Annual Improvements to IFRSs 2015 - 2017 Cycle , which has amendments to the following four Standards: IFRS 3 - Business Combinations, in relation to obtaining control of a business which was previously accounted for as an interest in a joint operation, IFRS 11- Joint Arrangements, in relation to obtaining joint control of a business which was previously accounted for as a joint operation, IAS 12 - Income Taxes, clarifying the treatment of taxes in relation to dividend payments and IAS 23 - Borrowing Costs, clarifying the treatment of borrowings which were previously capitalized when the related asset is ready for its intended use or sale. The amendments are effective on or after January 1, 2019. The Group is currently evaluating the impact of adoption of these amendments. In February 2018, the IASB issued amendments to IAS 19 - Employee Benefits . When there is a change to a defined benefit plan (an amendment, curtailment or settlement) the amendments require that a company use the updated assumptions from the remeasurement of a net defined benefit liability or asset to determine current service cost and net interest for the remainder of the reporting period after the change to the plan. These amendments are effective on or after January 1, 2019. The Group does not expect a material impact from the adoption of these amendments. |
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 on which the Group achieves control. 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 any non-controlling interests (“NCI”) in the acquiree on an acquisition-by-acquisition 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 the owners of the parent and to the non-controlling interests. Total comprehensive income/(loss) of subsidiaries is attributed to owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. All significant intra-group balances and transactions and any unrealized gains and losses arising from intra-group transactions are eliminated in preparing the Consolidated Financial Statements. Subsidiaries are deconsolidated from the date when 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. In 2016 the Group sold a majority stake in Ferrari Financial Services GmbH. From such date, the Group’s remaining interest has been remeasured at fair value and accounted for using the equity method. |
Interest in Associates | Interests in associates 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 without having control or joint control over those policies. Associates are accounted for using the equity method of accounting from the date significant influence is obtained. Under the equity method, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit/(loss) and other comprehensive income/(loss) of the investee. The Group’s share of the investee’s profit/(loss) is recognized in the consolidated income statement. Distributions received from an investee reduce the carrying amount of the investment. Post-acquisition movements in other comprehensive income/(loss) are recognized in other comprehensive income/(loss) with a corresponding adjustment to the carrying amount of the investment. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the 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 an associate exceeds the Group’s interest in that 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 associate. The Group discontinues the use of the equity method from the date the investment ceases to be an associate or when it is classified as available-for-sale. |
Interests in Joint Operations | Interests in joint operations A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. When the Group undertakes its activities under joint operations, it recognizes in relation to its interest in the joint operation: (i) its assets, including its share of any assets held jointly, (ii) its liabilities, including its share of any liabilities incurred jointly, (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. |
Foreign Currency Transactions | Foreign currency transactions The functional currency of the Group’s entities is the currency of their primary economic environment. In individual companies, transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the foreign currency exchange rate prevailing at that date. Exchange differences arising on the settlement of monetary items or on reporting monetary items at rates different from those at which they were initially recorded during the period or in previous financial statements are recognized in the consolidated income statement. |
Consolidation of Foreign Entities | Consolidation of foreign entities All assets and liabilities of foreign consolidated companies with a functional currency other than the Euro are translated using the closing rates at the date of the consolidated statement of financial position. Income and expenses are translated into Euro at the average foreign currency exchange rate for the period. Translation differences resulting from the application of this method are classified as currency translation differences within other comprehensive income/(loss) until the disposal of the investment. Average foreign currency exchange rates for the period are used to translate the cash flows of foreign subsidiaries in preparing the consolidated statement of cash flows. Goodwill, assets acquired and liabilities assumed arising from the acquisition of entities with a functional currency other than the Euro are recognized in the Consolidated Financial Statements in the functional currency and translated at the foreign currency exchange rate at the acquisition date. These balances are translated at subsequent balance sheet dates at the relevant foreign currency exchange rate. |
Goodwill | Intangible assets Goodwill 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. Recoverability of goodwill The Group’s goodwill at December 31, 2017 amounted to €785,182 thousand and primarily relates to the Separation, as a result of which the Company recorded goodwill of €780,542 thousand reflecting FCA’s recorded goodwill relating to Ferrari S.p.A. In accordance with IAS 36 - Impairment of Assets , goodwill is not amortized and is tested for impairment annually or more frequently if facts or circumstances indicate that the asset may be impaired. As the Group is composed of one operating segment, goodwill is tested at the Group level, which represents the lowest level within the Group at which goodwill is monitored for internal management purposes in accordance with IAS 36. The impairment test is performed by comparing the carrying amount (which mainly comprises property, plant and equipment, goodwill and capitalized development costs) and the recoverable amount of the CGU. The recoverable amount of the CGU is the higher of its fair value less costs of disposal and its value in use. |
Development Costs, Patents, Concessions, Licenses and Other Intangible Assets | Development costs Development costs for car project production and related components, engines and systems are recognized as an asset if, and only if, both of the following conditions under IAS 38 - Intangible Assets are met: that development costs can be measured reliably and that the technical feasibility of the product, volumes and pricing support the view that the development expenditure will generate future economic benefits. Capitalized development costs include all direct and indirect costs that may be directly attributed to the development process. Capitalized development costs are amortized on a straight-line basis from the start of production over the estimated lifecycle of the model and the useful life of the components (generally between four and eight years). All other research and development costs are expensed as incurred. In particular the Group incurs significant research and development costs through the Formula 1 racing activities. These costs are considered fundamental to the development of the sports and street car models and prototypes. The model for the Formula 1 racing activities continually evolves and as such these costs are expensed as incurred. Patents, concessions and licenses Separately acquired patents, concessions and licenses are initially recognized at cost. Patents, concessions and licenses acquired in a business combination are initially recognized at fair value. Patents, concessions and licenses are amortized on a straight-line basis over their useful economic lives, which is generally between three and five years. Other intangible assets Other intangible assets mainly relate to the registration of trademarks and have been recognized in accordance with IAS 38 - Intangible Assets , where it is probable that the use of the asset will generate future economic benefits for the Group and where the cost of the asset can be measured reliably. Other intangible assets are measured at cost less any impairment losses and amortized on a straight-line basis over their estimated life, which is generally between three and five years. |
Property, Plant and Equipment | Property, plant and equipment Cost Property, plant and equipment is initially recognized at cost which comprises 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, capitalized borrowing costs and any initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Self-constructed assets are initially recognized at production cost. Subsequent expenditures and the cost of replacing parts of an asset are capitalized only if they increase the future economic benefits embodied in that asset. All other expenditures are expensed as incurred. When such replacement costs are capitalized, the carrying amount of the parts that are replaced is recognized as a loss in the period of replacement in the consolidated income statement. Depreciation Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Depreciation rates Industrial buildings 3% - 20% Plant, machinery and equipment 5% - 22% Other assets 12% - 25% Land is not depreciated. If the asset being depreciated consists of separately identifiable components whose useful lives differ from that of the other parts making up the asset, depreciation is charged separately for each of its component parts through application of the ‘component approach’. Recoverability of non-current assets with definite useful lives Non-current assets with definite useful lives include property, plant and equipment and intangible assets. Intangible assets with definite useful lives mainly consist of capitalized development costs. The Group periodically reviews the carrying amount of non-current assets with definite useful lives when events and circumstances indicate that an asset may be impaired. Impairment tests are performed by comparing the carrying amount and the recoverable amount of the cash-generating unit (“CGU”). The recoverable amount is the higher of the CGU’s fair value less costs of disposal and its value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU. For the period covered by these Consolidated Financial Statements, the Group has not recognized any impairment charges for non-current assets with definite useful lives. |
Borrowing Costs | Borrowing costs General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use. All other borrowing costs are expensed in net financial expenses if related to the Group’s industrial activities or cost of sales if related to the Group’s financial services activities in the consolidated income statement, as incurred. |
Impairment of Assets | Impairment of assets The Group continuously monitors its operations to assess whether there is any indication that its intangible assets (including development costs) and its property, plant and equipment may be impaired. Goodwill is tested for impairment annually or more frequently, if there is an indication that an asset 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. Where an impairment loss for assets other than goodwill, subsequently 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 immediately. |
Financial Instruments | Financial instruments Presentation Financial instruments held by the Group are presented in the Consolidated Financial Statements as described in the following paragraphs. Investments and other financial assets include investment properties, investments in unconsolidated companies and other non-current financial assets. Current financial assets, as defined in IAS 39 - Financial Instruments: Recognition and Measurement , include trade receivables, receivables from financing activities and current financial assets (which include derivative financial instruments stated at fair value), deposits in FCA Group cash management pools and cash and cash equivalents. Financial liabilities comprise debt (which include bank borrowings and financial liabilities with FCA Group) and other financial liabilities (which mainly include derivative financial instruments stated at fair value), trade payables and other liabilities. Measurement Non-current financial assets other than investments, as well as current financial assets and financial liabilities, are accounted for in accordance with IAS 39 - Financial Instruments: Recognition and Measurement . Current financial assets are recognized on the basis of the settlement date and, on initial recognition, are measured at acquisition cost. Subsequent to initial recognition, current financial assets are measured at fair value. When market prices are not directly available, the fair value of current financial assets are measured using appropriate valuation techniques (e.g. discounted cash flow analysis based on market information available at the balance sheet date). Loans and receivables which are not held by the Group for trading (loans and receivables originating in the ordinary course of business) and equity investments whose fair value cannot be determined reliably, are measured, to the extent that they have a fixed term, at amortized cost, using the effective interest rate method. When the financial assets do not have a fixed term, they are measured at acquisition cost. Receivables with maturities of over one year which bear no interest or an interest rate significantly lower than market rates are discounted using market rates. Assessments are made regularly as to whether there is any objective evidence that a financial asset or group of assets may be impaired. If any such evidence exists, an impairment loss is included in the consolidated income statement for the period within net financial income/(expenses). Except for derivative instruments, financial liabilities are measured at amortized cost using the effective interest rate method. |
Derivative financial instruments | Derivative financial instruments Derivative financial instruments are used for economic hedging purposes, in order to reduce currency risks. In accordance with IAS 39, derivative financial instruments qualify for hedge accounting only when at the inception of the hedge there is formal designation and documentation of the hedging relationship, the hedge is expected to be highly effective, its effectiveness can be reliably measured and it is highly effective throughout the financial reporting periods for which it is designated. All derivative financial instruments are measured at fair value. When derivative financial instruments qualify for hedge accounting, the following accounting treatments apply: • Cash flow hedges - Where a derivative financial instrument is designated as a hedge of the exposure to variability in future cash flows of a recognized asset or liability or a highly probable forecasted transaction and could affect the consolidated income statement, the effective portion of any gain or loss on the derivative financial instrument is recognized directly in other comprehensive income/(loss). The cumulative gain or loss is reclassified from other comprehensive income/(loss) to the consolidated income statement at the same time as the economic effect arising from the hedged item 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 within net financial income/(expense). When a hedging instrument or hedge relationship is terminated but the hedged transaction is still expected to occur, the cumulative gain or loss realized to the point of termination remains in other comprehensive income/(loss) and is recognized in the consolidated income statement at the same time as the underlying transaction occurs. If the hedged transaction is no longer probable, the cumulative unrealized gain or loss held in other comprehensive income/(loss) is recognized in the consolidated income statement immediately. The Group did not use fair value hedges or hedges of a net investment in the period covered by these Consolidated Financial Statements. For further information on the effects reflected on the consolidated income statement from derivative financial instruments refer to Note 20. 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 within net financial income/(expenses). |
Trade Receivables | Trade receivables Trade receivables are amounts due from clients for goods sold or services provided in the ordinary course of business. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method, less any provision for allowances. |
Inventories | Inventories Inventories of raw materials, semi-finished products and finished goods are stated at the lower of cost and net realizable value, cost being determined on a first-in first-out (FIFO) basis. The measurement of inventories includes the direct costs of materials, labor and indirect costs (variable and fixed). Purchase costs include ancillary costs. Prototypes are recognized at their estimated realizable value, if lower than production cost. 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. |
Transfers of Financial Assets | Transfers of financial assets The Group sells certain of its trade receivables through factoring transactions without recourse. In addition, the Group sells certain of its receivables from financing activities under securitization programs. Securitization transactions involve the sale, on a non-recourse basis, of a financial receivables portfolio to a special purpose vehicle, which in turn finances the purchase of such financial receivables by issuing asset-backed securities in the form of notes whose repayment of principal and interest depends on the cash flows generated by the related financial receivables. The Group derecognizes the financial assets when, and only when, the contractual rights and risks to the cash flows arising from the related financial assets are no longer held or the Group has transferred the financial assets. In the case of a transfer of financial assets, if the Group transfers substantially all the risks and rewards of ownership of the financial assets, it derecognizes such assets and separately recognizes as assets or liabilities any rights and obligations created or retained in the transfer. On derecognition of financial assets, the difference between the carrying amount of the assets and the consideration received or receivable for the transfer of the assets is recognized in the consolidated income statement in cost of sales. |
Cash and Cash Equivalents | Cash and cash equivalents Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. |
Employee Benefits | Employee benefits Defined contribution plans Costs arising from defined contribution plans are expensed as incurred. Defined benefit plans The Group’s net obligations are determined separately for each plan by estimating the present value of future benefits that employees have earned in the current and prior periods, and deducting the fair value of any plan assets. The present value of the defined benefit obligation is measured using actuarial techniques and actuarial assumptions that are unbiased and mutually compatible and attributes benefits to periods in which the obligation to provide post-employment benefits arise by using the Projected Unit Credit Method. The components of the defined benefit cost are recognized as follows: • the service costs are recognized in the consolidated income statement by function and presented in the relevant line items (cost of sales, selling, general and administrative costs, research and development costs, etc.); • the net interest on the defined benefit liability is recognized in the consolidated income statement as net financial income /(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 • the remeasurement components of the net obligations, which comprise actuarial gains and losses and any change in the effect of the asset ceiling are recognized immediately in other comprehensive income/(loss). These remeasurement components are not reclassified in the consolidated income statement in a subsequent period. 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 during the current and prior periods. 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 implemented an equity incentive plan that provides for the granting of share-based compensation to the Chief Executive Officer, all other members of the Group Executive Council (“GEC”) and key leaders. The equity incentive plan is accounted for in accordance with IFRS 2 - Share-based Payment , which requires the Company to recognize share-based compensation expense based on fair value of awards granted. Compensation expense for the equity-settled awards containing market performance conditions is measured at the grant date fair value of the award using the Monte Carlo simulation model, which requires the input of subjective assumptions, including the expected volatility of the Company’s common stock, the dividend yield, interest rates and a correlation coefficient between the common stock and the relevant market index. The fair value of the awards which are conditional only on a recipient’s continued service to the Company is measured using the share price at the grant date adjusted for the present value of future distributions which employees will not receive during the vesting period. Share-based compensation expense relating to the equity incentive plan is recognized over the service period within selling, general and administrative costs or cost of sales in the consolidated income statement depending on the function of the employee, with an offsetting increase to equity. Non-Executive Directors’ compensation settled in common shares of the Company is accounted for as equity-settled share-based compensation and measured at the fair value of the related compensation, which is recognized as an expense over the service period with an offsetting increase to equity. Share-based compensation The Group accounts for its equity incentive plan in accordance with IFRS 2 - Share-based Payment, which requires the recognition of share-based compensation expense based on the fair value of the awards granted. Share-based compensation for equity-settled awards containing market performance conditions is measured at the grant date of the awards using the Monte Carlo simulation model, which requires the input of subjective assumptions, including the expected volatility of our common stock, the dividend yield, interest rates and the correlation coefficient between our common stock and the relevant market index. The probability that the Group will achieve a certain level of Total Shareholder Return performance compared to the defined peer group is also considered. As a result, at the grant date management is required to make key assumptions and estimates regarding conditions that will occur in the future, which inherently involves uncertainty. Therefore, the amount of share-based compensation recognized has been effected by the significant assumptions and estimates used. |
Provisions | Provisions Provisions are recognized when the Group has a present obligation, legal or constructive, as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Warranty and recall campaigns provision All cars are sold with warranty coverage. The warranty coverage generally applies to defects that may become apparent within a certain period from the purchase of the car. The warranty provision is recognized at the time of the sale of the car, based on the present value of management’s estimate of the expected cost to fulfill the obligations over the contractual warranty period. Estimates are principally based on the Group’s historical claims or costs experience and the cost of parts and services to be incurred in the activities. The costs related to these provisions are recognized within cost of sales at the time when they are probable and reasonably estimable. |
Deferred Income, Advances and Revenue Recognition | Deferred income Deferred income relates to amounts received by the Group under various agreements, which are reliant on the future performance of a service or other act of the Group. Deferred income is recognized as net revenues when the Group has fulfilled its obligations under the terms of the various agreements. Range models (models belonging to the Ferrari product portfolio, excluding special series, limited edition and one-off ( fuori serie) models) are sold with a scheduled maintenance program to ensure that the cars are maintained to the highest standards to meet the Group’s strict requirements for performance and safety. Amounts attributable to the maintenance program are not recognized as income immediately, but are deferred over the maintenance program term. The amount of the deferred income related to this program, is based on the estimated fair value of the service to be provided. Advances Advances relate to amounts received from or billed to customers in advance of having delivered the related cars or provided the related services. Revenue recognition Revenues from shipments of cars are recognized if it is probable that the economic benefits associated with a transaction will flow to the Group and the revenue can be reliably measured. Revenues are recognized when the risks and rewards of ownership are transferred to the Group’s dealers, the sales price is agreed or determinable and collectability is reasonably assured; for cars this generally corresponds to the date when the cars are released to the carrier responsible for transporting cars to dealers. Revenues are recognized net of discounts including but not limited to, sales incentives and performance based bonuses. Revenues from separately-priced extended warranty contracts are recognized over the contract period in proportion to the costs expected to be incurred based on historical information. A loss on these contracts is recognized if the sum of the expected costs for services under the contract exceeds unearned revenues. The Group offers a scheduled maintenance program on range models, which is not separately priced. The Group allocates revenue between the car and the maintenance program based on their relative estimated fair values. Amounts paid and attributed to the maintenance program are deferred and recognized as net revenues over the maintenance program period. Revenues from sponsorship and licensing agreements are recognized on a straight-line basis over the contract term. Certain of the sponsorship agreements contain performance related conditions while certain of the licensing agreements contain minimum guaranteed payments. Performance related sponsorship revenues and licensing revenues in excess of the minimum guaranteed payment are recognized when certain, which is typically when the related conditions have been achieved. Revenues also include operating lease rentals in conjunction with the rental of engines to other Formula 1 racing teams. Revenues from operating leases are recognized on a straight-line basis over the relevant term of the lease. Interest income earned in conjunction with the provision of client and dealer financing are reported within the line item “Finance income from financial services companies” using the effective interest rate method. Revenues from commercial activities relate to the revenues received from participating in the Formula 1 World Championship. The revenues attributable to each racing team are governed by a specific agreement and depend upon, among other factors, the prior year ranking of each of the racing teams. Revenues of the commercial activities are recognized pro-rata over the year. |
Cost of Sales | Cost of sales Cost of sales comprises expenses incurred in the manufacturing and distribution of cars and parts, including the engines rented to other Formula 1 racing teams, of which, cost of materials, components and labor costs are the most significant portion. The remaining costs principally include depreciation, amortization, insurance and transportation costs. Cost of sales also includes warranty and product-related costs, which are estimated and recorded at the time of sale of the car. Expenses which are directly attributable to the financial services companies, including the interest expenses related to their financing as a whole and provisions for risks and write-downs of assets, are also reported in cost of sales. |
Taxes | Taxes Income taxes include all taxes based upon the taxable profits of the Group. Current and deferred taxes are recognized as income or expense and are included in the consolidated income statement for the period, except tax arising from (i) a transaction or event which is recognized, in the same or a different period, either in other comprehensive income/(loss) or directly in equity, or (ii) a business combination. Deferred taxes are accounted using 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. Any remeasurements to deferred tax assets and liabilities as a result of changes in substantially enacted tax rates are recognized in the income statement. The recoverability of deferred tax assets is dependent on the Group’s ability to generate sufficient future taxable income in the period in which it is assumed that the deductible temporary differences reverse and tax losses carried forward can be utilized. In making this assessment, the Group considers future taxable income arising on the most recent budgets and plans, prepared by using the same criteria described for testing the impairment of assets and goodwill, moreover, it estimates the impact of the reversal of taxable temporary differences on earnings and it also considers the period over which these assets could be recovered. The carrying amount of deferred tax assets is reduced to the extent that it is not 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 Group recognizes deferred tax liabilities associated with the existence of a subsidiary’s undistributed profits, except when it is able to control the timing of the reversal of the temporary difference; and it is probable that this temporary difference will not reverse in the foreseeable future. The Group recognizes deferred tax assets associated with the deductible temporary differences on investments in subsidiaries only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized. Deferred tax assets relating to the carry-forward of unused tax losses and tax credits, as well as those arising from deductible temporary differences, are recognized to the extent that it is probable that future profits will be available against which they can be utilized. Current income taxes and deferred taxes are offset when they relate to the same taxation authority and there is a legally enforceable right of offset. Italian Regional Income Tax (“IRAP”) is recognized within income tax expense. IRAP is calculated on a measure of income defined by the Italian Civil Code as the difference between operating revenues and costs, before financial income and expense, and in particular before the cost of fixed-term employees, credit losses and any interest included in lease payments. IRAP is applied on the tax base at 3.9 percent for the years ended December 31, 2017 , 2016 and 2015 . |
Other Taxes Not Based on Income | Other taxes not based on income, such as property taxes and capital taxes, are included in other expenses/(income), net. |
Dividends | Dividends Dividends payable by the Group are reported as a change in equity in the period in which they are approved by shareholders or the Board of Directors as applicable under local rules and regulations. |
Rounding of Amounts | Rounding of amounts All amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand Euro unless otherwise stated. |
Cash Flow Hedges | The policy of the Group for managing foreign currency risk normally requires hedging of a portion of projected future cash flows from trading activities and orders acquired (or contracts in progress) in foreign currencies which will occur within the following 12 months. It is considered reasonable that the hedging effect arising from this and recorded in the cash flow hedge reserve will be recognized in the consolidated income statement, mainly during the following 12 months. Derivatives relating to currency risk management are treated as cash flow hedges where the derivative qualifies for hedge accounting. The amount recorded in the cash flow hedge reserve will be recognized in the consolidated income statement according to the timing of the flows of the underlying transaction. |
Segment Reporting | Segment reporting The Group has determined that it has one operating and one reportable segment based on the information reviewed by its CODM in making decisions regarding allocation of resources and to assess performance. |
Use of Estimates | Use of estimates The Consolidated Financial Statements are prepared in accordance with IFRS which require the use of estimates, judgments and assumptions that affect the carrying amount of assets and liabilities, the disclosure of contingent assets and liabilities and the amounts of income and expenses recognized. The estimates and associated assumptions are based on elements that are known when the financial statements are prepared, on historical experience and on any other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed periodically and continuously by the Group. If the items subject to estimates do not perform as assumed, then the actual results could differ from the estimates, which would require adjustment accordingly. The effects of any changes in estimate are recognized in the consolidated income statement in the period in which the adjustment is made, or prospectively in future periods. |
Development Costs | Development costs Development costs are capitalized if the conditions under IAS 38 - Intangible Assets have been met. The starting point for capitalization is based upon the technological and commercial feasibility of the project, which is usually when a product development project has reached a defined milestone according to the Group’s established product development model. Feasibility is based on management’s judgment which is formed on the basis of estimated future cash flows. Capitalization ceases and amortization of capitalized development costs begins on start of production of the relevant project. The amortization of development costs requires management to estimate the lifecycle of the related model. Any changes in such assumptions would impact the amortization charge recorded and the carrying amount of capitalized development costs. The periodic amortization charge is derived after determining the expected lifecycle of the related model and, if applicable any expected residual value at the end of its life. Increasing an asset’s expected lifecycle or its residual value would result in a reduced amortization charge in the consolidated income statement. The useful lives and residual values of the Group’s models are determined by management at the time of capitalization and reviewed annually for appropriateness and recoverability. The lives are based on historical experience with similar assets as well as anticipation of future events which may impact their life such as changes in technology. Historically changes in useful lives and residual values have not resulted in material changes to the Group’s amortization charge or estimated recoverability of the related assets. |
Product Warranty Liabilities | Product warranties liabilities The Group establishes reserves for product warranties at the time the sale is recognized. The Group issues various types of product warranties under which the performance of products delivered is generally guaranteed for a certain period or term, which is generally defined by the legislation in the country where the car is sold. The reserve for product warranties includes the expected costs of warranty obligations imposed by law or contract, as well as the expected costs for policy coverage. The estimated future costs of these actions are principally based on assumptions regarding the lifetime warranty costs of each car line and each model year of that car line, as well as historical claims experience for the Group’s cars. 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 actions to address various client satisfaction, safety and emissions issues related to cars sold. Included in the reserve is the estimated cost of these services and recall actions. The estimated future costs of these actions are based primarily on historical claims experience for the Group’s cars and the cost of parts and services to be incurred in the specified activities, and are recognized at the time when they are probable and reasonably estimable. Estimates of the future costs of these actions are inevitably imprecise due to several uncertainties, including the number of cars affected by a service or recall 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. The estimate of warranty and additional service obligations is periodically reviewed during the year. 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. 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. |
Other Contingent Liabilities | Other contingent liabilities The Group makes provisions in connection with pending or threatened disputes or legal proceedings when it is considered probable that there will be an outflow of funds and when the amount can be reasonably estimated. If an outflow of funds becomes possible but the amount cannot be estimated, the matter is disclosed in the notes to the Consolidated Financial Statements. The Group is the subject of legal and tax proceedings covering a wide range of matters in various jurisdictions. Due to the uncertainty inherent in such matters, it is difficult to predict the outflow of funds that could result from such disputes with any certainty. Moreover, the cases and claims against the Group often derive from complex legal issues which are subject to a differing degree of uncertainty, including the facts and circumstances of each particular case and the manner in which applicable law is likely to be interpreted and applied to such fact and circumstances, and the jurisdiction and the different laws involved. The Group monitors the status of pending legal proceedings and consults with experts on legal and tax matters on a regular basis. It is therefore possible that the provisions for the Group’s legal proceedings and litigation may vary as the result of future developments in pending matters. |
Litigation | Litigation Various legal proceedings, claims and governmental investigations are pending against the Group on a wide range of topics, including car safety, emissions and fuel economy, early warning reporting, dealer, supplier and other contractual relationships, intellectual property rights and product warranties matters. Some of these proceedings allege defects in specific component parts or systems (including airbags, seatbelts, brakes, transmissions, engines and fuel systems) in various car models or allege general design defects relating to car 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 could 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. An accrual is established in connection with pending or threatened litigation if a loss is probable and a reliable estimate can be made. Since these accruals represent estimates, it is reasonably possible that the resolution of some of these matters could require the Group to make payments in excess of the amounts accrued. It is also reasonably possible that the resolution of some of the matters for which accruals could not be made may require the Group to make payments in an amount or range of amounts that could not be reasonably estimated. The term “reasonably possible” is used herein to mean that the chance of a future transaction or event occurring is more than remote but less than probable. Although the final resolution of any such matters could have a material effect on the Group’s operating results for the particular reporting period in which an adjustment of the estimated reserve is recorded, it is believed that any resulting adjustment would not materially affect the consolidated financial position of the Group. |
SIGNIFICANT ACCOUNTING POLICI41
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
Disclosure of foreign currency exchange rates used to translate other currencies into Euro | The principal foreign currency exchange rates used to translate other currencies into Euro were as follows: 2017 2016 2015 Average At December 31, Average At December 31, Average At December 31, U.S. Dollar 1.1297 1.1993 1.1069 1.0541 1.1094 1.0887 Pound Sterling 0.8767 0.8872 0.8194 0.8562 0.7259 0.7340 Swiss Franc 1.1117 1.1702 1.0901 1.0739 1.0677 1.0835 Japanese Yen 126.7112 135.0100 120.2169 123.4000 134.2956 131.0700 Chinese Yuan 7.6290 7.8044 7.3519 7.3202 6.9723 7.0608 Australian Dollar 1.4732 1.5346 1.4883 1.4596 1.4775 1.4897 Canadian Dollar 1.4647 1.5039 1.4659 1.4188 1.4184 1.5116 Singapore Dollar 1.5588 1.6024 1.5275 1.5234 1.5253 1.5417 Hong Kong Dollar 8.8045 9.3720 8.5924 8.1751 8.6014 8.4376 |
Disclosure of straight line depreciation rates | Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Depreciation rates Industrial buildings 3% - 20% Plant, machinery and equipment 5% - 22% Other assets 12% - 25% |
SCOPE OF CONSOLIDATION (Tables)
SCOPE OF CONSOLIDATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Scope of Consolidation [Abstract] | |
Disclosure of scope of consolidation | The Group’s scope of consolidation at December 31, 2017 and 2016 was as follows: At December 31, 2017 At December 31, 2016 Name Country Nature of business Shares held by the Group Shares held by NCI Shares held by the Group Shares held by NCI Directly held interests Ferrari S.p.A. Italy Manufacturing 100 % — % 100 % — % Indirectly held through Ferrari S.p.A. Ferrari North America Inc. USA Importer and distributor 100 % — % 100 % — % Ferrari Japan KK Japan Importer and distributor 100 % — % 100 % — % Ferrari Australasia Pty Limited Australia Importer and distributor 100 % — % 100 % — % Ferrari (HK) Limited Hong Kong Importer and distributor 100 % — % 100 % — % Ferrari International Cars Trading (Shanghai) Co. L.t.d. China Importer and distributor 80 % 20 % 80 % 20 % Ferrari Far East Pte Limited Singapore Service company 100 % — % 100 % — % Ferrari Management Consulting (Shanghai) Co. L.t.d. China Service company 100 % — % 100 % — % Ferrari South West Europe S.a.r.l. France Service company 100 % — % 100 % — % Ferrari Central East Europe GmbH Germany Service company 100 % — % 100 % — % G.S.A. S.A. Switzerland Service company 100 % — % 100 % — % Ferrari North Europe Limited (1) UK Service company n.a. n.a. 100 % — % Mugello Circuit S.p.A. Italy Racetrack management 100 % — % 100 % — % Ferrari Financial Services S.p.A. Italy Financial services 100 % — % 100 % — % Indirectly held through other Group entities Ferrari Financial Services Inc. (2) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction, LLC (3) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction - Lease, LLC (3) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction - Select, LLC (3) USA Financial services 100 % — % 100 % — % Ferrari Financial Services Titling Trust (3) USA Financial services 100 % — % 100 % — % 410, Park Display Inc. (4) USA Retail 100 % — % 100 % — _____________________________ (1) On June 30, 2017, the liquidation process of Ferrari North Europe Limited was completed (2) Shareholding held by Ferrari Financial Services S.p.A. (3) Shareholding held by Ferrari Financial Services Inc. (“FFS Inc”). (4) Shareholding held by Ferrari North America Inc. The net profit attributable to non-controlling interests for the years ended December 31, 2017 , 2016 and 2015 relates to the non-controlling interest in FICTS and for the year ended December 31, 2015 also the non-controlling interest in Ferrari Financial Services S.p.A.: At December 31, 2017 2016 (€ thousand) Equity attributable to non-controlling interests - FICTS 5,258 4,810 For the years ended December 31, 2017 2016 2015 (€ thousand) Net profit attributable to non-controlling interests 2,003 956 2,238 Of which attributable to FICTS 2,003 956 1,351 Of which attributable to Ferrari Financial Services S.p.A. — — 887 |
NET REVENUES (Tables)
NET REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
Disclosure of net revenues | Net revenues are as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Cars and spare parts 2,455,955 2,180,045 2,080,228 Engines 373,313 337,924 218,657 Sponsorship, commercial and brand 494,082 488,514 441,128 Other 93,540 98,601 114,356 Total net revenues 3,416,890 3,105,084 2,854,369 |
RESEARCH AND DEVELOPMENT COSTS
RESEARCH AND DEVELOPMENT COSTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
Disclosure of research and development costs | Research and development costs are as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Research and development costs expensed during the year 556,617 509,580 446,726 Amortization of capitalized development costs 100,502 104,055 114,856 Total research and development costs 657,119 613,635 561,582 |
OTHER EXPENSES, NET (Tables)
OTHER EXPENSES, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
Schedule of other expenses, net | Other expenses, net are as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Other expenses 11,830 30,249 33,137 Other income (4,963 ) (5,748 ) (22,102 ) Other expenses, net 6,867 24,501 11,035 |
NET FINANCIAL EXPENSES (Tables)
NET FINANCIAL EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net financial (expenses)/income [Abstract] | |
Disclosure of financial income and expenses | The following table sets out details of financial income and expenses, including the amounts reported in the consolidated income statement within the net financial expenses line item, as well as interest income from financial services activities, recognized under net revenues, and interest expenses and other financial charges from financial services activities, recognized under cost of sales. For the years ended December 31, 2017 2016 2015 Financial income: (€ thousand) Interest income from bank deposits 1,153 843 54 Other interest income and financial income 5,284 1,841 6,473 Interest income and other financial income 6,437 2,684 6,527 Finance income from financial services companies 50,254 58,236 61,587 Total financial income 56,691 60,920 68,114 Total financial income relating to: Industrial companies (A) 6,437 2,684 6,527 Financial services companies (reported in net revenues) 50,254 58,236 61,587 Financial expenses: Interest expenses on financial liabilities with FCA Group — — (15,745 ) Capitalized borrowing costs 1,578 1,519 1,530 Other interest cost and financial expenses (3,775 ) (4,090 ) (3,163 ) Interest expenses and other financial expenses (2,197 ) (2,571 ) (17,378 ) Interest expenses from banks (23,057 ) (27,042 ) (3,357 ) Interest on bonds (9,231 ) (6,937 ) — Write-downs of financial receivables (3,530 ) (3,864 ) (9,607 ) Net interest expenses on employee benefits provisions — (389 ) (79 ) Other financial expenses (12,008 ) (5,831 ) (5,029 ) Total financial expenses (50,023 ) (46,634 ) (35,450 ) Net expenses from derivative financial instruments and foreign currency exchange rate differences (16,619 ) (5,086 ) (4,930 ) Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences (66,642 ) (51,720 ) (40,380 ) Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences relating to: Industrial companies (B) (35,697 ) (30,413 ) (16,678 ) Financial services companies (reported in cost of sales) (30,945 ) (21,307 ) (23,702 ) Net financial expenses relating to industrial companies (A+B) (29,260 ) (27,729 ) (10,151 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income taxes [Abstract] | |
Disclosure of income taxes | Income tax expense is as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Current tax expense 201,274 189,492 153,739 Deferred tax expense/(income) 8,718 (18,290 ) (9,410 ) Taxes relating to prior periods (1,232 ) (3,567 ) (214 ) Total income tax expense 208,760 167,635 144,115 |
Disclosure of the reconciliation between actual income tax expense and the theoretical income tax expense | The reconciliation between actual income tax expense and the theoretical income tax expense, calculated on the basis of the theoretical tax rates in effect in Italy, is as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Theoretical income tax expense, net of IRAP 179,077 156,022 119,396 Tax effect on: Permanent differences (7,061 ) (10,219 ) 5,846 Effect of changes in tax rate and tax regulations 4,862 1,280 4,005 Differences between foreign tax rates and the theoretical Italian tax rate and tax holidays 2,344 853 1,631 Taxes relating to prior years (1,232 ) (3,567 ) (214 ) Withholding tax on earnings 2,420 2,017 (384 ) Total income tax expense, net of IRAP 180,410 146,386 130,280 Effective tax rate, net of IRAP 24.2 % 25.8 % 30.0 % IRAP (current and deferred) 28,350 21,249 13,835 Total income tax expense 208,760 167,635 144,115 |
Disclosure of deferred tax liabilities | The analysis of deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 , is as follows: At December 31, 2017 2016 (€ thousand) Deferred tax assets: To be recovered after 12 months 63,286 72,142 To be recovered within 12 months 30,805 47,215 94,091 119,357 Deferred tax liabilities: To be realized after 12 months (9,885 ) (10,517 ) To be realized within 12 months (1,092 ) (2,594 ) (10,977 ) (13,111 ) Net deferred tax assets 83,114 106,246 |
Disclosure of deferred tax assets | The analysis of deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 , is as follows: At December 31, 2017 2016 (€ thousand) Deferred tax assets: To be recovered after 12 months 63,286 72,142 To be recovered within 12 months 30,805 47,215 94,091 119,357 Deferred tax liabilities: To be realized after 12 months (9,885 ) (10,517 ) To be realized within 12 months (1,092 ) (2,594 ) (10,977 ) (13,111 ) Net deferred tax assets 83,114 106,246 |
Disclosure of deferred income tax liabilities | The movements in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, are as follows: At December 31, 2016 Recognized in consolidated income statement Charged to equity Translation At December 31, 2017 (€ thousand) Deferred tax assets arising on: Provisions 111,321 (6,959 ) — (2,119 ) 102,243 Deferred income 43,549 2,649 — — 46,198 Employee benefits 2,370 (11 ) 203 — 2,562 Cash flow hedge reserve 7,325 — (9,757 ) — (2,432 ) Foreign currency exchange rate differences 3,028 (2,288 ) — — 740 Inventory obsolescence 24,569 13,515 — (469 ) 37,615 Allowances for doubtful accounts 4,107 (94 ) — (14 ) 3,999 Depreciation 19,853 (3,283 ) — — 16,570 Other 13,833 2,007 — (3,457 ) 12,383 Total deferred tax assets 229,955 5,536 (9,554 ) (6,059 ) 219,878 Deferred tax liabilities arising on: Depreciation (17,592 ) 7,408 — 1,254 (8,930 ) Capitalization of development costs (90,480 ) (24,295 ) — — (114,775 ) Employee benefits (1,745 ) (123 ) — — (1,868 ) Exchange rate differences (3,547 ) 2,900 — — (647 ) Cash flow hedge reserve (1 ) — — — (1 ) Lease accounting (11,004 ) 352 — — (10,652 ) Withholding tax on undistributed earnings (1,150 ) 1,150 — — — Total deferred tax liabilities (125,519 ) (12,608 ) — 1,254 (136,873 ) Deferred tax asset arising on tax loss carry-forward 1,810 (1,646 ) — (55 ) 109 Total net deferred tax assets 106,246 (8,718 ) (9,554 ) (4,860 ) 83,114 At December 31, 2015 Recognized in consolidated income statement Charged to equity Changes in the scope of consolidation Translation At December 31, 2016 (€ thousand) Deferred tax assets arising on: Provisions 77,915 29,461 — (78 ) 4,023 111,321 Deferred income 39,318 4,231 — — — 43,549 Employee benefits 2,242 (54 ) (18 ) — 200 2,370 Cash flow hedge reserve 24,267 — (16,943 ) — 1 7,325 Foreign currency exchange rate differences 343 2,685 — — — 3,028 Inventory obsolescence 25,075 (626 ) — — 120 24,569 Allowances for doubtful accounts 3,633 485 — — (11 ) 4,107 Depreciation 21,682 (1,783 ) — — (46 ) 19,853 Other 10,838 (1,808 ) — 6,989 (2,186 ) 13,833 Total deferred tax assets 205,313 32,591 (16,961 ) 6,911 2,101 229,955 Deferred tax liabilities arising on: Depreciation (14,571 ) (2,591 ) — — (430 ) (17,592 ) Capitalization of development costs (79,531 ) (10,949 ) — — — (90,480 ) Employee benefits (1,713 ) (32 ) — — — (1,745 ) Exchange rate differences (1,970 ) (1,577 ) — — — (3,547 ) Cash flow hedge reserve (1 ) — — — — (1 ) Lease accounting (11,457 ) 453 — — — (11,004 ) Withholding tax on undistributed earnings (1,150 ) — — — — (1,150 ) Total deferred tax liabilities (110,393 ) (14,696 ) — — (430 ) (125,519 ) Deferred tax asset arising on tax loss carry-forward 4,357 395 — (2,949 ) 7 1,810 Total net deferred tax assets 99,277 18,290 (16,961 ) 3,962 1,678 106,246 |
Disclosure of deferred income tax assets | The movements in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, are as follows: At December 31, 2016 Recognized in consolidated income statement Charged to equity Translation At December 31, 2017 (€ thousand) Deferred tax assets arising on: Provisions 111,321 (6,959 ) — (2,119 ) 102,243 Deferred income 43,549 2,649 — — 46,198 Employee benefits 2,370 (11 ) 203 — 2,562 Cash flow hedge reserve 7,325 — (9,757 ) — (2,432 ) Foreign currency exchange rate differences 3,028 (2,288 ) — — 740 Inventory obsolescence 24,569 13,515 — (469 ) 37,615 Allowances for doubtful accounts 4,107 (94 ) — (14 ) 3,999 Depreciation 19,853 (3,283 ) — — 16,570 Other 13,833 2,007 — (3,457 ) 12,383 Total deferred tax assets 229,955 5,536 (9,554 ) (6,059 ) 219,878 Deferred tax liabilities arising on: Depreciation (17,592 ) 7,408 — 1,254 (8,930 ) Capitalization of development costs (90,480 ) (24,295 ) — — (114,775 ) Employee benefits (1,745 ) (123 ) — — (1,868 ) Exchange rate differences (3,547 ) 2,900 — — (647 ) Cash flow hedge reserve (1 ) — — — (1 ) Lease accounting (11,004 ) 352 — — (10,652 ) Withholding tax on undistributed earnings (1,150 ) 1,150 — — — Total deferred tax liabilities (125,519 ) (12,608 ) — 1,254 (136,873 ) Deferred tax asset arising on tax loss carry-forward 1,810 (1,646 ) — (55 ) 109 Total net deferred tax assets 106,246 (8,718 ) (9,554 ) (4,860 ) 83,114 At December 31, 2015 Recognized in consolidated income statement Charged to equity Changes in the scope of consolidation Translation At December 31, 2016 (€ thousand) Deferred tax assets arising on: Provisions 77,915 29,461 — (78 ) 4,023 111,321 Deferred income 39,318 4,231 — — — 43,549 Employee benefits 2,242 (54 ) (18 ) — 200 2,370 Cash flow hedge reserve 24,267 — (16,943 ) — 1 7,325 Foreign currency exchange rate differences 343 2,685 — — — 3,028 Inventory obsolescence 25,075 (626 ) — — 120 24,569 Allowances for doubtful accounts 3,633 485 — — (11 ) 4,107 Depreciation 21,682 (1,783 ) — — (46 ) 19,853 Other 10,838 (1,808 ) — 6,989 (2,186 ) 13,833 Total deferred tax assets 205,313 32,591 (16,961 ) 6,911 2,101 229,955 Deferred tax liabilities arising on: Depreciation (14,571 ) (2,591 ) — — (430 ) (17,592 ) Capitalization of development costs (79,531 ) (10,949 ) — — — (90,480 ) Employee benefits (1,713 ) (32 ) — — — (1,745 ) Exchange rate differences (1,970 ) (1,577 ) — — — (3,547 ) Cash flow hedge reserve (1 ) — — — — (1 ) Lease accounting (11,457 ) 453 — — — (11,004 ) Withholding tax on undistributed earnings (1,150 ) — — — — (1,150 ) Total deferred tax liabilities (110,393 ) (14,696 ) — — (430 ) (125,519 ) Deferred tax asset arising on tax loss carry-forward 4,357 395 — (2,949 ) 7 1,810 Total net deferred tax assets 99,277 18,290 (16,961 ) 3,962 1,678 106,246 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share [abstract] | |
Earnings per share | The following table provides the amounts used in the calculation of basic earnings per share for the years ended December 31, 2017 , 2016 and 2015 : For the years ended December 31, 2017 2016 2015 Profit attributable to owners of the Company € thousand 535,393 398,762 287,816 Weighted average number of common shares thousand 188,951 188,923 188,923 Basic earnings per common share € 2.83 2.11 1.52 The following table provides the amounts used in the calculation of diluted earnings per share for the years ended December 31, 2017 , 2016 and 2015 : For the years ended December 31, 2017 2016 2015 Profit attributable to owners of the Company € thousand 535,393 398,762 287,816 Weighted average number of common shares for diluted earnings per common share thousand 189,759 188,946 188,923 Diluted earnings per common share € 2.82 2.11 1.52 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of detailed information about intangible assets | Externally Development Patents, Other Total (€ thousand) Gross carrying amount at 834,483 437,254 131,237 45,470 1,448,444 Additions 104,009 37,387 12,110 12,834 166,340 Reclassification — — 4,369 (4,369 ) — Change in scope of consolidation — — (3,458 ) — (3,458 ) Translation differences — — (66 ) (93 ) (159 ) Balance at December 31, 2016 938,492 474,641 144,192 53,842 1,611,167 Additions 142,795 42,320 12,416 4,975 202,506 Reclassification — — 12,289 (12,289 ) — Translation differences — — (1,011 ) (1,443 ) (2,454 ) Balance at December 31, 2017 1,081,287 516,961 167,886 45,085 1,811,219 Accumulated amortization at January 1, 2016 696,911 289,009 117,766 36,948 1,140,634 Amortization 77,240 26,815 11,628 2,419 118,102 Reclassification — — 3,317 (3,317 ) — Change in scope of consolidation — — (1,766 ) — (1,766 ) Translation differences — — (144 ) (53 ) (197 ) Balance at December 31, 2016 774,151 315,824 130,801 35,997 1,256,773 Amortization 72,978 27,524 14,312 2,308 117,122 Translation differences — — (3,307 ) 175 (3,132 ) Balance at December 31, 2017 847,129 343,348 141,806 38,480 1,370,763 Carrying amount at: January 1, 2016 137,572 148,245 13,471 8,522 307,810 December 31, 2016 164,341 158,817 13,391 17,845 354,394 December 31, 2017 234,158 173,613 26,080 6,605 440,456 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | Land Industrial Plant, machinery and equipment Other Advances and assets under construction Total (€ thousand) Gross carrying amount at 22,671 331,177 1,691,482 131,627 35,763 2,212,720 Additions — 5,596 81,678 7,322 81,051 175,647 Divestitures — (1,021 ) (9,902 ) (7,631 ) — (18,554 ) Reclassification — 1,578 22,898 1,441 (28,341 ) (2,424 ) Change in scope of consolidation — — — (613 ) — (613 ) Translation differences 10 173 — 476 — 659 Balance at December 31, 2016 22,681 337,503 1,786,156 132,622 88,473 2,367,435 Additions 892 4,691 131,981 11,855 39,485 188,904 Divestitures — (77 ) (31,877 ) (3,101 ) (368 ) (35,423 ) Reclassification — 355 73,160 (2,685 ) (70,830 ) — Translation differences (36 ) (723 ) 42 (1,700 ) — (2,417 ) Balance at December 31, 2017 23,537 341,749 1,959,462 136,991 56,760 2,518,499 Accumulated amortization at January 1, 2016 — 123,099 1,364,471 99,020 — 1,586,590 Depreciation — 9,995 109,939 9,681 — 129,615 Divestitures — (608 ) (11,628 ) (6,039 ) — (18,275 ) Reclassification — 177 (1,786 ) 1,609 — — Change in scope of consolidation — — — (312 ) — (312 ) Translation differences — 159 (1 ) 376 — 534 Balance at December 31, 2016 — 132,822 1,460,995 104,335 — 1,698,152 Depreciation — 9,860 124,629 8,995 — 143,484 Divestitures — (69 ) (29,761 ) (2,469 ) — (32,299 ) Translation differences — (353 ) (94 ) (651 ) — (1,098 ) Balance at December 31, 2017 — 142,260 1,555,769 110,210 — 1,808,239 Carrying amount at: January 1, 2016 22,671 208,078 327,011 32,607 35,763 626,130 December 31, 2016 22,681 204,681 325,161 28,287 88,473 669,283 December 31, 2017 23,537 199,489 403,693 26,781 56,760 710,260 |
INVESTMENTS AND OTHER FINANCI51
INVESTMENTS AND OTHER FINANCIAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments and other financial assets [Abstract] | |
Disclosure of investments | At December 31, 2017 2016 (€ thousand) Investments accounted for using the equity method 23,340 20,948 Delta Topco option — 11,967 Other securities and financial assets 6,698 1,020 Total investments and other financial assets 30,038 33,935 Changes in the investments accounted for using the equity method during the years ended December 31, 2017 and 2016 were as follows: (€ thousand) Balance at January 1, 2016 — Change in scope of consolidation 18,542 Fair value measurement of interest retained by the Group 1,489 Proportionate share of net profit for the period from November 7 to December 31, 2016 917 Balance at December 31, 2016 20,948 Proportionate share of net profit for the year ended December 31, 2017 2,437 Proportionate share of remeasurement of defined benefit plans (45 ) Balance at December 31, 2017 23,340 Summarized financial information relating to FFS GmbH at and for the years ended December 31, 2017 and 2016 were as follows: At December 31, 2017 2016 (€ thousand) Assets Intangible assets 647 1,133 Property, plant and equipment 66 119 Deferred tax assets 1,977 2,736 Total non-current assets 2,690 3,988 Inventories 259 412 Trade receivables 1,461 472 Receivables from financing activities 493,985 463,108 Other current assets 8,292 3,543 Cash and cash equivalents 8,109 29,087 Total current assets 512,106 496,622 Total assets 514,796 500,610 Equity and liabilities Equity 44,705 39,921 Non-current liabilities and provisions 8,903 7,920 Debt 457,787 447,272 Trade payables 457 123 Other liabilities 2,944 5,374 Total equity and liabilities 514,796 500,610 For the year ended December 31, 2017 2016 (€ thousand) Net revenues 26,505 27,471 Cost of sales 11,525 9,563 Selling, general and administrative costs 8,173 8,432 Other expenses, net 245 180 Profit before taxes 6,562 9,296 Income tax expense 1,689 2,070 Net profit 4,873 7,226 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Disclosure of inventories | At December 31, 2017 2016 (€ thousand) Raw materials 99,225 95,594 Semi-finished goods 87,678 72,472 Finished goods 206,862 155,932 Total inventories 393,765 323,998 |
Disclosure of slow moving and obsolete inventory | Changes in the provision for slow moving and obsolete inventories were as follows: 2017 2016 (€ thousand) At January 1, 60,548 60,588 Provision 10,140 2,120 Use and other changes (3,699 ) (2,160 ) At December 31, 66,989 60,548 |
CURRENT RECEIVABLES AND OTHER53
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Current Receivables, Other Current Assets, And Deposits in FCA Group Cash Management Pools [Abstract] | |
Disclosure of current receivables, other current assets and deposits in FCA Group cash management pools | At December 31, 2017 2016 (€ thousand) Trade receivables 239,410 243,977 Receivables from financing activities 732,947 790,377 Current tax receivables 6,125 1,312 Other current assets 45,441 53,729 Total 1,023,923 1,089,395 |
Disclosure of trade receivables by nature | The following table sets forth a breakdown of trade receivables by nature: At December 31, 2017 2016 (€ thousand) Trade receivables due from: FCA Group companies 75,245 75,694 Dealers 48,166 47,208 Sponsors 30,058 42,789 Brand activities 33,283 15,650 Other 52,658 62,636 Total 239,410 243,977 |
Disclosure of trade receivables by currency | The following table sets forth a breakdown of trade receivables by currency: At December 31, 2017 2016 (€ thousand) Trade receivables denominated in: Euro 172,492 155,545 U.S. Dollar 53,618 62,701 Pound Sterling 2,915 1,222 Chinese Yuan 2,947 3,819 Japanese Yen 3,151 16,310 Other 4,287 4,380 Total 239,410 243,977 |
Disclosure of changes in allowance for doubtful accounts | Changes in the allowance for doubtful accounts during the year were as follows: 2017 2016 (€ thousand) At January 1, 19,174 18,371 Provision 3,231 3,504 Use and other changes (412 ) (2,701 ) At December 31, 21,993 19,174 |
Disclosure of receivables from financing activities | Receivables from financing activities are as follows: At December 31, 2017 2016 (€ thousand) Client financing 704,014 758,679 Dealer financing 28,933 31,698 Total receivables from financing activities 732,947 790,377 |
Disclosure of changes in allowance for doubtful accounts from financing activities | Changes in the allowance for doubtful accounts of receivables from financing activities during the year are as follows: 2017 2016 (€ thousand) At January 1, 11,556 18,671 Provision 3,530 2,455 Change in scope of consolidation — (8,409 ) Use and other changes (8,138 ) (1,161 ) At December 31, 6,948 11,556 |
Disclosure of other current assets | Other current assets are as follows: At December 31, 2017 2016 (€ thousand) Prepayments 27,980 31,611 Italian and foreign VAT credits 11,988 12,032 Due from personnel 959 747 Security deposits 1,014 932 Other receivables 3,500 8,407 Total other current assets 45,441 53,729 |
Disclosure of current receivables and other current assets by due date | The analysis of current receivables and other current assets by due date (excluding prepayments) is as follows: At December 31, 2017 Due within one year Due between one and five years Due beyond five years Overdue Total (€ thousand) Trade receivables 207,074 — — 32,336 239,410 Receivables from financing activities 144,621 529,489 46,894 11,943 732,947 Client financing 134,972 513,079 44,020 11,943 704,014 Dealer financing 9,649 16,410 2,874 — 28,933 Current tax receivables 5,667 458 — — 6,125 Other current receivables 16,767 682 7 5 17,461 Total 374,129 530,629 46,901 44,284 995,943 At December 31, 2016 Due within one year Due between one and five years Due beyond five years Overdue Total (€ thousand) Trade receivables 225,402 8 — 18,567 243,977 Receivables from financing activities 146,412 554,030 48,341 41,594 790,377 Client financing 136,602 536,954 43,529 41,594 758,679 Dealer financing 9,810 17,076 4,812 — 31,698 Current tax receivables 690 622 — — 1,312 Other current receivables 21,572 539 7 — 22,118 Total 394,076 555,199 48,348 60,161 1,057,784 |
CURRENT FINANCIAL ASSETS AND 54
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Disclosure of financial assets | At December 31, 2017 2016 (€ thousand) Financial derivatives 11,686 10,388 Other financial assets 3,997 5,888 Current financial assets 15,683 16,276 |
Disclosure of derivative financial instruments | The following table sets further the analysis of derivative assets and liabilities at December 31, 2017 and 2016. At December 31, 2017 2016 Positive fair Negative fair Positive fair Negative fair (€ thousand) Cash flow hedge: Foreign currency forwards 8,848 (1,136 ) 8,160 (39,580 ) Total cash flow hedges 8,848 (1,136 ) 8,160 (39,580 ) Other foreign exchange derivatives 1,729 (308 ) 1,548 (58 ) Interest rate caps 1,109 — 680 — Total 11,686 (1,444 ) 10,388 (39,638 ) Other foreign exchange derivatives relate to foreign currency forwards which do not meet the requirements to be recognized as cash flow hedges. Interest rate caps relate to derivative instruments we are required to enter into as part of certain of our securitization agreements. The following tables provide an analysis by foreign currency and due date of outstanding derivative financial instruments based on their fair value and notional amounts: At December 31, 2017 Fair value due within one year Total fair value Notional amount due within one year Total notional amount (€ thousand) Currencies: U.S. Dollar 2,637 2,637 114,317 114,317 Pound Sterling 510 510 110,032 110,032 Chinese Yuan (97 ) (97 ) 18,095 18,095 Swiss Franc 1,999 1,999 43,552 43,552 Japanese Yen 4,402 4,402 81,890 81,890 Other (1) 791 791 95,738 95,738 Total amount 10,242 10,242 463,624 463,624 ______________________________ (1) Other mainly includes the Australian Dollar, the Hong Kong Dollar and the Canadian Dollar. At December 31, 2016 Fair value due within one year Total fair value Notional amount due within one year Total notional amount (€ thousand) Currencies: U.S. Dollar (33,758 ) (33,758 ) 788,274 788,274 Pound Sterling 3,668 3,668 106,056 106,056 Chinese Yuan (125 ) (125 ) 19,917 19,917 Swiss Franc (476 ) (476 ) 47,923 47,923 Japanese Yen 2,835 2,835 91,854 91,854 Other (1) (1,394 ) (1,394 ) 74,822 74,822 Total amount (29,250 ) (29,250 ) 1,128,846 1,128,846 ______________________________ (1) Other mainly includes the Australian Dollar, the Hong Kong Dollar and the Canadian Dollar |
Disclosure of reclassified gain/loss from other comprehensive income/(loss) to the consolidated income statement | The Group reclassified gains and losses, net of the tax effect, from other comprehensive income/(loss) to the consolidated income statement as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Net revenues/(costs) 19,724 (69,368 ) (145,095 ) Net financial expenses — — (23,745 ) Income tax (expense)/benefit (5,503 ) 19,354 53,016 Total recognized in the consolidated income statement 14,221 (50,014 ) (115,824 ) |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Share Capital Reserves and Other Equity Interests [Abstract] | |
Disclosure of other comprehensive income/(loss) | The following table presents other comprehensive income: For the years ended December 31, 2017 2016 2015 (€ thousand) Items that will not be reclassified to the consolidated income statement in subsequent periods: (Losses)/Gains on remeasurement of defined benefit plans (1) (730 ) (1,448 ) 898 Total items that will not be reclassified to the consolidated income statement in subsequent periods (730 ) (1,448 ) 898 Items that may be reclassified to the consolidated income statement in subsequent periods: Gains/(Losses) on cash flow hedging instruments arising during the period 54,695 (18,282 ) (160,606 ) (Gains)/Losses on cash flow hedging instruments reclassified to the consolidated income statement (19,724 ) 69,368 168,840 Gains on cash flow hedging instruments 34,971 51,086 8,234 Exchange differences on translating foreign operations arising during the period (15,346 ) 4,118 13,344 Total items that may be reclassified to the consolidated income statement in subsequent periods 19,625 55,204 21,578 Total other comprehensive income 18,895 53,756 22,476 Related tax impact (9,554 ) (16,961 ) (2,908 ) Total other comprehensive income, net of tax 9,341 36,795 19,568 __________________________ (1) For the year ended December 31, 2017 includes €45 thousand related to the Group ’ s proportionate share of the remeasurement of defined benefit plans of FFS GmbH, for which the Group holds a 49.9 percent interest. The tax effect relating to other comprehensive income are as follows: For the years ended December 31, 2017 2016 2015 Pre-tax balance Related tax impact Net balance Pre-tax balance Related tax impact Net balance Pre-tax balance Related tax impact Net balance (€ thousand) (Losses)/Gains on remeasurement of defined benefit plans (730 ) 203 (527 ) (1,448 ) (18 ) (1,466 ) 898 (308 ) 590 Gains on cash flow hedging instruments 34,971 (9,757 ) 25,214 51,086 (16,943 ) 34,143 8,234 (2,600 ) 5,634 Exchange gains on translating foreign operations (15,346 ) — (15,346 ) 4,118 — 4,118 13,344 — 13,344 Total other comprehensive income 18,895 (9,554 ) 9,341 53,756 (16,961 ) 36,795 22,476 (2,908 ) 19,568 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Share-based Compensation [Abstract] | |
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 these awards are summarized below: Key assumptions Grant date share price €66.85 Expected volatility 17.4% Dividend yield 1.2% Risk-free rate 0% The target amount of PSUs vests as follows based on the Company’s TSR ranking compared to an industry specific peer group of eight, including the Company, (“Peer Group”): Ferrari TSR Ranking % of Target Awards that Vest CEO GEC and Key Leaders 1 150% 150% 2 120% 120% 3 100% 100% 4 75% — 5 50% — The defined Peer Group is as follows: Hermes Burberry Brunello Cucinelli Ferragamo LVMH Moncler Richemont |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Employee benefits [Abstract] | |
Group's provision for employee benefits | The Group’s provisions for employee benefits are as follows: At December 31, 2017 2016 (€ thousand) Present value of defined benefit obligations: Italian employee severance indemnity (TFR) 22,641 23,783 Pension plans 604 828 Total present value of defined benefit obligations 23,245 24,611 Other provisions for employees 60,914 66,413 Total provisions for employee benefits 84,159 91,024 |
Disclosure of defined benefit plans | The following table summarizes the changes in the defined benefit obligations: TFR liability Pension plans Total (€ thousand) Amounts at December 31, 2015 23,119 805 23,924 Included in the consolidated income statement 391 (37 ) 354 Included in other comprehensive income/loss Actuarial losses from financial assumptions 1,580 232 1,812 Other Benefits paid (1,337 ) (172 ) (1,509 ) Other changes 30 — 30 Amounts at December 31, 2016 23,783 828 24,611 Included in the consolidated income statement — 142 142 Included in other comprehensive income/loss Actuarial losses/(gains) from financial assumptions 820 (135 ) 685 Other Benefits paid (1,964 ) (164 ) (2,128 ) Other changes 2 (67 ) (65 ) Amounts at December 31, 2017 22,641 604 23,245 The expected benefit payments for the defined benefit obligations are as follows: Expected benefit payments TFR Pension plans (€ thousand) 2018 1,350 41 2019 1,401 41 2020 1,596 42 2021 1,960 42 2022 1,725 3,262 Beyond 2022 7,089 597 Total 15,121 4,025 |
Disclosure of amounts recognized in the consolidated income statement | Amounts recognized in the consolidated income statement are as follows: For the years ended December 31, 2017 2016 2015 TFR Pension plans Total TFR Pension plans Total TFR Pension plans Total (€ thousand) Current service cost — 141 141 31 (41 ) (10 ) 8 72 80 Interest (income)/expense — 1 1 360 4 364 74 — 74 Total recognized in the consolidated income statement — 142 142 391 (37 ) 354 82 72 154 |
Disclosure of the sensitivity of defined benefit plan to changes in principle assumptions | The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is: At December 31, 2017 2016 Changes in assumption of +1% discount rate Changes in assumption of -1% discount rate Changes in assumption of +1% discount rate Changes in assumption of -1% discount rate (€ thousand) Impact on defined benefit obligation (1,771 ) 2,036 (1,909 ) 2,201 |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Provisions [abstract] | |
Disclosure of other provisions | The following table sets forth additional provisions to other risks recognized for the years ended December 31, 2017 , 2016 and 2015 . For the years ended December 31, 2017 2016 2015 (€ thousand) Recorded in the consolidated income statement within: Cost of sales 8,065 4,499 3,847 Other expenses, net — 14,559 4,111 Selling, general and administrative costs 274 2,604 8 Income tax expense — — 569 8,339 21,662 8,535 Changes in provisions were as follows: At Additional provisions Utilization Translation differences and other At (€ thousand) Warranty and recall campaigns provision 122,411 16,705 (15,328 ) (652 ) 123,136 Legal proceedings and disputes 45,336 6,670 (1,271 ) (360 ) 50,375 Other risks 47,480 8,339 (30,320 ) (1,618 ) 23,881 Total provisions 215,227 31,714 (46,919 ) (2,630 ) 197,392 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Disclosure of debt instruments | Balance at December 31, 2016 Proceeds from borrowings Repayments of borrowings Interest accrued and other Translation differences Balance at December 31, 2017 (€ thousand) Borrowings from banks 836,886 10,074 (800,943 ) 264 (8,222 ) 38,059 Bonds 497,614 694,172 — 1,731 — 1,193,517 Securitizations 485,670 232,520 (91,405 ) 178 (70,687 ) 556,276 Other debt 27,871 34,804 (43,084 ) — (1,262 ) 18,329 Total debt 1,848,041 971,570 (935,432 ) 2,173 (80,171 ) 1,806,181 |
Disclosure of debt maturity | The breakdown of debt by nature and by maturity is as follows: At December 31, 2017 2016 Due within one year Due between one and five years Due beyond five years Total Due within one year Due between one and five years Due beyond five years Total (€ thousand) Bonds — 694,623 498,894 1,193,517 — — 497,614 497,614 Securitizations 254,891 301,385 — 556,276 144,597 341,073 — 485,670 Borrowings from banks 32,811 5,248 — 38,059 227,408 609,478 — 836,886 Other debt 18,329 — — 18,329 27,871 — — 27,871 Total debt 306,031 1,001,256 498,894 1,806,181 399,876 950,551 497,614 1,848,041 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of other liabilities | An analysis of other liabilities (excluding accrued expenses and deferred income) by due date is as follows: At December 31, 2017 2016 Due within one year Due between one and five years Due beyond five years Total Due within one year Due between one and five years Due beyond five years Total (€ thousand) Total other liabilities (excluding accrued expenses and deferred income) 264,380 4,760 — 269,140 309,864 4,913 7,026 321,803 An analysis of other liabilities is as follows: At December 31, 2017 2016 (€ thousand) Deferred income 274,186 273,069 Advances and security deposits 167,293 229,975 Accrued expenses 77,024 61,403 Payables to personnel 38,488 36,843 Social security payables 20,553 18,559 Other 42,806 36,426 Total other liabilities 620,350 656,275 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair value measurement [Abstract] | |
Disclosure of fair value measurement of liabilities | The following table shows the fair value hierarchy for financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2017 and 2016 : At December 31, 2017 Note Level 1 Level 2 Level 3 Total (€ thousand) Cash and cash equivalents 647,706 — — 647,706 Investments and other financial assets - Liberty Shares 17 5,705 — — 5,705 Current financial assets 20 — 11,686 — 11,686 Total assets 653,411 11,686 — 665,097 Other financial liabilities 20 — 1,444 — 1,444 Total liabilities — 1,444 — 1,444 At December 31, 2016 Note Level 1 Level 2 Level 3 Total (€ thousand) Cash and cash equivalents 457,784 — — 457,784 Investments and other financial assets - Delta Topco option 17 — 11,967 — 11,967 Current financial assets 20 — 10,388 — 10,388 Total assets 457,784 22,355 — 480,139 Other financial liabilities 20 — 39,638 — 39,638 Total liabilities — 39,638 — 39,638 |
Disclosure of fair value measurement of assets | The following table shows the fair value hierarchy for financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2017 and 2016 : At December 31, 2017 Note Level 1 Level 2 Level 3 Total (€ thousand) Cash and cash equivalents 647,706 — — 647,706 Investments and other financial assets - Liberty Shares 17 5,705 — — 5,705 Current financial assets 20 — 11,686 — 11,686 Total assets 653,411 11,686 — 665,097 Other financial liabilities 20 — 1,444 — 1,444 Total liabilities — 1,444 — 1,444 At December 31, 2016 Note Level 1 Level 2 Level 3 Total (€ thousand) Cash and cash equivalents 457,784 — — 457,784 Investments and other financial assets - Delta Topco option 17 — 11,967 — 11,967 Current financial assets 20 — 10,388 — 10,388 Total assets 457,784 22,355 — 480,139 Other financial liabilities 20 — 39,638 — 39,638 Total liabilities — 39,638 — 39,638 |
Disclosure of carrying amount and fair value of financial assets and liabilities | The following table represents carrying amount and fair value for the most relevant categories of financial assets and liabilities not measured at fair value on a recurring basis: At December 31, 2017 2016 Note Carrying amount Fair value Carrying amount Fair value (€ thousand) Receivables from financing activities 732,947 732,947 790,377 790,377 Client financing 704,014 704,014 758,679 758,679 Dealer financing 19 28,933 28,933 31,698 31,698 Total 732,947 732,947 790,377 790,377 Debt 25 1,806,181 1,819,337 1,848,041 1,849,000 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions [abstract] | |
Disclosure of transactions between related parties | The amounts of the transactions with related parties recognized in the consolidated income statement are as follows: For the years ended December 31, 2017 2016 2015 Net revenues Costs (1) Net financial expenses/(income) Net revenues Costs (1) Net financial expenses/(income) Net revenues Costs (1) Net financial expenses/(income) (€ thousand) FCA Group companies Maserati 315,407 4,698 — 241,478 1,933 — 184,444 2,250 67 FCA US LLC 6 44,882 — — 37,612 — 1,253 23,562 — Magneti Marelli 1,866 36,670 — 1,735 29,663 — 1,397 29,746 — Other FCA Group companies 6,754 7,007 (1,191 ) 5,472 9,163 (471 ) 7,412 42,768 (11,601 ) Total FCA Group companies 324,033 93,257 (1,191 ) 248,685 78,371 (471 ) 194,506 98,326 (11,534 ) Exor Group companies (excluding the FCA Group) 283 492 — 192 173 — 277 338 — Other related parties COXA S.p.A. 48 6,141 — 121 7,096 — 174 7,561 — HPE S.r.l. — 7,525 — — 6,447 — 11 5,518 — Other related parties 2,111 — — 1,950 24 — 1,024 6 — Total other related parties 2,159 13,666 — 2,071 13,567 — 1,209 13,085 — Total transactions with related parties 326,475 107,415 (1,191 ) 250,948 92,111 (471 ) 195,992 111,749 (11,534 ) Total for the Group 3,416,890 1,986,792 29,260 3,105,084 1,899,433 27,729 2,854,369 1,848,467 10,151 ______________________________ (1) Costs include cost of sales, selling, general and administrative costs and other expenses/(income). Non-financial assets and liabilities originating from related party transactions are as follows: At December 31, 2017 2016 Trade receivables Trade payables Other current assets (1) Other liabilities (2) Trade receivables Trade payables Other current assets (1) Other liabilities (2) (€ thousand) FCA Group companies Maserati 71,560 3,028 — 37,496 73,532 4,462 — 32,379 FCA US LLC 129 6,848 — — 166 12,529 — — Magneti Marelli 899 8,103 — — 1,739 6,702 — — Other FCA Group companies 2,657 4,646 2,097 27 257 3,291 1,439 12 Total FCA Group companies 75,245 22,625 2,097 37,523 75,694 26,984 1,439 32,391 Exor Group companies (excluding the FCA Group) 345 202 — — 235 41 — — Other related parties COXA S.p.A. 3 1,142 — — 16 1,194 — — HPE S.r.l. — 1,150 — — — 1,162 — — Other related parties 268 — — — 554 68 — 4 Total other related parties 271 2,292 — — 570 2,424 — 4 Total transactions with related parties 75,861 25,119 2,097 37,523 76,499 29,449 1,439 32,395 Total for the Group 239,410 607,505 51,566 649,510 243,977 614,888 55,041 697,870 ______________________________ (1) Other current assets include other current assets and current tax receivables. (2) Other liabilities include other liabilities and current tax payables. Financial assets and liabilities originating from related party transactions are as follows: 2017 2016 Receivables from financing activities Current financial assets Debt Receivables from financing activities Current financial assets Debt FCA Global Finance — — — 861 — Total transactions with related parties — — — — 861 — Total for the Group 732,947 15,683 1,806,181 790,377 16,276 1,848,041 |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities | The fees of the Directors and Statutory Auditors of Ferrari N.V. (and for 2015 also Ferrari S.p.A.) for carrying out their respective functions, including those in other consolidated companies, are as follows: For the years ended December 31, 2017 2016 2015 (€ thousand) Directors of Ferrari N.V. 17,767 8,617 243 Directors of Ferrari S.p.A. — — 2,904 Statutory auditors 112 105 105 Total emoluments 17,879 8,722 3,252 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments [Abstract] | |
Disclosure of future minimum purchase obligations under arrangements | Future minimum purchase obligations under these arrangements at December 31, 2017 were as follows: At December 31, 2017 Due within one year Due between one and three years Due between three and five years Due beyond five years Total (€ thousand) Minimum purchase obligations 137,250 101,988 5,760 4,372 249,370 |
Disclosure of future aggregate minimum lease payments under non-cancellable operating leases | The future aggregate minimum lease payments under non-cancellable operating leases, mainly relating to the lease of property and cars, are as follows: At December 31, 2017 Due within one year Due between one and three years Due between three and five years Due beyond five years Total (€ thousand) Future minimum lease payments under operating lease agreements 694 1,353 105 — 2,152 |
ENTITY-WIDE DISCLOSURES (Tables
ENTITY-WIDE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Entity-wide disclosures [Abstract] | |
Disclosure of net revenue by geographic location | The following table presents an analysis of net revenues by geographic location of the Group’s clients: For the years ended December 31, 2017 2016 2015 (€ thousand) Italy 563,921 387,184 238,532 Other EMEA 1,308,261 1,314,788 1,209,916 Americas (1) 920,858 835,045 884,971 China, Hong Kong and Taiwan (on a combined basis) 282,550 272,223 257,249 Rest of APAC (2) 341,300 295,844 263,701 Total net revenues 3,416,890 3,105,084 2,854,369 ______________________________ (1) Americas includes the United States of America, Canada, Mexico, the Caribbean and of Central and South America (2) Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia and South Korea The following table presents an analysis of non-current assets other than financial instruments and deferred tax assets by geographic location: At December 31, 2017 2016 Property, plant and equipment Goodwill Intangible assets Property, plant and equipment Goodwill Intangible assets (€ thousand) Italy 704,262 785,182 439,369 661,770 785,182 353,116 Other EMEA 2,368 — — 2,430 — — Americas (1) 2,760 — 812 3,877 — 988 China, Hong Kong and Taiwan (on a combined basis) 264 — — 258 — — Rest of APAC (2) 606 — 275 948 — 290 Total 710,260 785,182 440,456 669,283 785,182 354,394 ______________________________ (1) Americas includes the United States of America, Canada, Mexico, the Caribbean and of Central and South America (2) Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia and South Korea |
BACKGROUND AND BASIS OF PRESE65
BACKGROUND AND BASIS OF PRESENTATION - Narrative (Details) € / shares in Units, € in Thousands | 12 Months Ended | 538 Months Ended | ||||
Dec. 31, 2017EUR (€)dealerpoint_of_salemarketstore€ / sharesshares | Dec. 31, 2016EUR (€)shares | Dec. 31, 2015EUR (€) | Dec. 31, 1969 | Oct. 28, 2014 | Oct. 31, 2015shares | |
Disclosure of transactions between related parties [line items] | ||||||
Number of worldwide markets | market | 60 | |||||
Number of authorized dealers | dealer | 164 | |||||
Number of points of sale | point_of_sale | 185 | |||||
Number of Ferrari-owned stores | store | 18 | |||||
Number of franchised stores | store | 30 | |||||
Number of Ferrari Store Junior | store | 8 | |||||
Share capital | € | € 2,504 | |||||
Net revenues | € | € 3,416,890 | € 3,105,084 | € 2,854,369 | |||
Ferrari S.p.A. | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Ownership interest (percent) | 100.00% | 100.00% | ||||
Noncontrolling interest (percent) | 0.00% | 0.00% | ||||
Ferrari S.p.A. | Fiat S.p.A. | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Ownership interest (percent) | 50.00% | 90.00% | ||||
FCA Group companies | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Change in equity | € | € 1,162 | |||||
Piero Ferrari | Ferrari S.p.A. | Fiat S.p.A. | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Noncontrolling interest (percent) | 10.00% | |||||
Common shares | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Number of shares issued (in shares) | 193,923,499 | |||||
Number of shares outstanding (in shares) | 188,953,874 | |||||
Special Voting Shares | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Number of shares issued (in shares) | 56,497,618 | |||||
Number of shares outstanding (in shares) | 56,493,519 | 188,921,600 | ||||
Nominal value of shares (in Euros per share) | € / shares | € 0.01 | |||||
Special Voting Shares | Piero Ferrari | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Number of shares issued (in shares) | 27,003,873 | |||||
Share capital | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Nominal value of shares (in Euros per share) | € / shares | € 0.01 | |||||
Treasury shares | Common shares | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Number of shares issued (in shares) | 4,969,625 | 5,000,000 | ||||
Treasury shares | Special Voting Shares | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Number of shares issued (in shares) | 4,099 | 2,930 | ||||
Related parties | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Net revenues | € | € 326,475 | € 250,948 | 195,992 | |||
Related parties | FCA Group companies | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Net revenues | € | 324,033 | 248,685 | 194,506 | |||
Costs incurred for the recharge of services received | € | € 8,548 | € 15,021 | € 11,559 |
SIGNIFICANT ACCOUNTING POLICI66
SIGNIFICANT ACCOUNTING POLICIES - FOREIGN EXCHANGE RATES (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.1297 | 1.1069 | 1.1094 |
Closing exchange rate (per Euro) | 1.1993 | 1.0541 | 1.0887 |
Pound Sterling | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 0.8767 | 0.8194 | 0.7259 |
Closing exchange rate (per Euro) | 0.8872 | 0.8562 | 0.7340 |
Swiss Franc | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.1117 | 1.0901 | 1.0677 |
Closing exchange rate (per Euro) | 1.1702 | 1.0739 | 1.0835 |
Japanese Yen | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 126.7112 | 120.2169 | 134.2956 |
Closing exchange rate (per Euro) | 135.0100 | 123.4000 | 131.0700 |
Chinese Yuan | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 7.6290 | 7.3519 | 6.9723 |
Closing exchange rate (per Euro) | 7.8044 | 7.3202 | 7.0608 |
Australian Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.4732 | 1.4883 | 1.4775 |
Closing exchange rate (per Euro) | 1.5346 | 1.4596 | 1.4897 |
Canadian Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.4647 | 1.4659 | 1.4184 |
Closing exchange rate (per Euro) | 1.5039 | 1.4188 | 1.5116 |
Singapore Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.5588 | 1.5275 | 1.5253 |
Closing exchange rate (per Euro) | 1.6024 | 1.5234 | 1.5417 |
Hong Kong Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 8.8045 | 8.5924 | 8.6014 |
Closing exchange rate (per Euro) | 9.3720 | 8.1751 | 8.4376 |
SIGNIFICANT ACCOUNTING POLICI67
SIGNIFICANT ACCOUNTING POLICIES - DEPRECIATION RATES (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Bottom of range | Industrial buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life depreciation rates (percent) | 3.00% |
Bottom of range | Plant, machinery and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life depreciation rates (percent) | 5.00% |
Bottom of range | Other assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life depreciation rates (percent) | 12.00% |
Bottom of range | Other intangible assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Amortization, useful life | 3 years |
Top of range | Industrial buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life depreciation rates (percent) | 20.00% |
Top of range | Plant, machinery and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life depreciation rates (percent) | 22.00% |
Top of range | Other assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life depreciation rates (percent) | 25.00% |
Top of range | Other intangible assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Amortization, useful life | 5 years |
SIGNIFICANT ACCOUNTING POLICI68
SIGNIFICANT ACCOUNTING POLICIES - TAXES (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Significant Accounting Policies [Abstract] | |||
IRAP applicable tax rate (percent) | 3.90% | 3.90% | 3.90% |
SCOPE OF CONSOLIDATION - Narrat
SCOPE OF CONSOLIDATION - Narrative (Details) - EUR (€) € in Thousands | Nov. 07, 2016 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of subsidiaries [line items] | ||||
Goodwill | € 785,182 | € 785,182 | ||
Cash Collected From Settlements of Receivables or Collateral | ||||
Disclosure of subsidiaries [line items] | ||||
Restricted cash and cash equivalents | 28,230 | 19,411 | ||
CHINA | ||||
Disclosure of subsidiaries [line items] | ||||
Goodwill | 0 | 0 | ||
Restricted cash and cash equivalents | € 66,456 | € 47,555 | ||
Ferrari International Cars Trading (Shanghai) Co. L.t.d. | ||||
Disclosure of subsidiaries [line items] | ||||
Shares held by the Group (percent) | 80.00% | 80.00% | ||
Noncontrolling interest (percent) | 20.00% | 20.00% | ||
Ferrari Financial Services S.p.A. | ||||
Disclosure of subsidiaries [line items] | ||||
Shares held by the Group (percent) | 100.00% | 100.00% | ||
Noncontrolling interest (percent) | 10.00% | 0.00% | 0.00% | |
Ferrari Financial Services GmbH | ||||
Disclosure of subsidiaries [line items] | ||||
Shares held by the Group (percent) | 49.90% | |||
Loans to consumers [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Provision | € 3,530 | € 2,455 | ||
Trade receivables | ||||
Disclosure of subsidiaries [line items] | ||||
Provision | € 3,231 | € 3,504 | ||
Ferrari Financial Services GmbH | Ferrari Financial Services GmbH | ||||
Disclosure of subsidiaries [line items] | ||||
Interest retained by Ferrari (percent) | 49.90% | 49.90% | ||
FCA Group companies | ||||
Disclosure of subsidiaries [line items] | ||||
Goodwill | € 780,542 |
SCOPE OF CONSOLIDATION - Scope
SCOPE OF CONSOLIDATION - Scope of Consolidation (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Ferrari S.p.A. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari North America Inc. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari Japan KK | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari Australasia Pty Limited | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari (HK) Limited | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari International Cars Trading (Shanghai) Co. L.t.d. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 80.00% | 80.00% | |
Shares held by NCI (percent) | 20.00% | 20.00% | |
Ferrari Far East Pte Limited | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari Management Consulting (Shanghai) Co. L.t.d. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari South West Europe S.a.r.l. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari Central East Europe GmbH | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
G.S.A. S.A. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari North Europe Limited | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | ||
Shares held by NCI (percent) | 0.00% | ||
Mugello Circuit S.p.A. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari Financial Services S.p.A. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 10.00% | 0.00% | 0.00% |
Ferrari Financial Services GmbH | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 49.90% | ||
FFS Inc. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari Auto Securitization Transaction, LLC | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari Auto Securitization Transaction - Lease, LLC | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari Auto Securitization Transaction - Select, LLC | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
Ferrari Financial Services Titling Trust | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% | |
410, Park Display Inc. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 100.00% | 100.00% | |
Shares held by NCI (percent) | 0.00% | 0.00% |
SCOPE OF CONSOLIDATION - Noncon
SCOPE OF CONSOLIDATION - Noncontrolling Interests (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of subsidiaries [line items] | |||
Equity attributable to non-controlling interests - FICTS | € 5,258 | € 4,810 | |
Net profit attributable to non-controlling interests | 2,003 | 956 | € 2,238 |
Ferrari International Cars Trading (Shanghai) Co. L.t.d. | |||
Disclosure of subsidiaries [line items] | |||
Net profit attributable to non-controlling interests | 2,003 | 956 | 1,351 |
Ferrari Financial Services S.p.A. | |||
Disclosure of subsidiaries [line items] | |||
Net profit attributable to non-controlling interests | € 0 | € 0 | € 887 |
SCOPE OF CONSOLIDATION - Segmen
SCOPE OF CONSOLIDATION - Segment Reporting (Details) | Dec. 31, 2017segment |
Scope of Consolidation [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
SCOPE OF CONSOLIDATION - Allowa
SCOPE OF CONSOLIDATION - Allowance for Doubtful Accounts (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial assets [line items] | |||
Allowance account for credit losses of financial assets | € 21,993 | € 19,174 | |
Cost of sales | 1,650,860 | 1,579,690 | € 1,498,806 |
Selling, general and administrative costs | 329,065 | 295,242 | 338,626 |
Trade receivables | |||
Disclosure of financial assets [line items] | |||
Allowance account for credit losses of financial assets | 21,993 | 19,174 | 18,371 |
Provision | 3,231 | 3,504 | |
Loans to consumers [member] | |||
Disclosure of financial assets [line items] | |||
Allowance account for credit losses of financial assets | 6,948 | 11,556 | € 18,671 |
Provision | € 3,530 | € 2,455 |
SCOPE OF CONSOLIDATION - Recove
SCOPE OF CONSOLIDATION - Recoverability of Goodwill (Details) € in Thousands | Dec. 31, 2017EUR (€)segment | Dec. 31, 2016EUR (€) |
Scope of Consolidation [Abstract] | ||
Goodwill | € | € 785,182 | € 785,182 |
Number of operating segments | segment | 1 |
SCOPE OF CONSOLIDATION - Use of
SCOPE OF CONSOLIDATION - Use of Estimates (Details) € in Thousands | Dec. 31, 2017EUR (€)segment | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) |
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | € 785,182 | € 785,182 | |
Number of operating segments | segment | 1 | ||
Capitalized development costs | € 440,456 | 354,394 | € 307,810 |
Gross carrying amount | |||
Disclosure of detailed information about intangible assets [line items] | |||
Capitalized development costs | 1,811,219 | 1,611,167 | € 1,448,444 |
Gross carrying amount | Development costs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Capitalized development costs | 185,115 | € 141,396 | |
FCA Group companies | |||
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | € 780,542 |
NET REVENUES (Details)
NET REVENUES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disaggregation of Revenue [Line Items] | |||
Net revenues | € 3,416,890 | € 3,105,084 | € 2,854,369 |
Cars and spare parts | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 2,455,955 | 2,180,045 | 2,080,228 |
Engines | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 373,313 | 337,924 | 218,657 |
Sponsorship, commercial and brand | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 494,082 | 488,514 | 441,128 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | € 93,540 | € 98,601 | € 114,356 |
COST OF SALES (Details)
COST OF SALES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of other provisions [line items] | |||
Cost of sales | € 1,650,860 | € 1,579,690 | € 1,498,806 |
Interest and other financial expense | € 30,945 | 21,307 | € 23,702 |
Takata Airbag Inflators | Warranty and recall campaigns provision | |||
Disclosure of other provisions [line items] | |||
New provisions, other provisions | € 36,994 |
SELLING, GENERAL AND ADMINIST78
SELLING, GENERAL AND ADMINISTRATIVE COSTS (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [line items] | |||
General and administrative costs | € 155,581 | € 148,812 | € 174,451 |
Selling costs | € 173,484 | € 146,430 | 164,175 |
IPO [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Share issue related cost | 15,789 | ||
Employee extra bonus paid | € 19,106 |
RESEARCH AND DEVELOPMENT COST79
RESEARCH AND DEVELOPMENT COSTS (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Finite-Lived Intangible Assets [Line Items] | |||
Research and development costs expensed during the year | € 556,617 | € 509,580 | € 446,726 |
Research and development expense | 657,119 | 613,635 | 561,582 |
Development costs | |||
Schedule of Finite-Lived Intangible Assets [Line Items] | |||
Amortization of capitalized development costs | € 100,502 | € 104,055 | € 114,856 |
OTHER EXPENSES, NET - Schedule
OTHER EXPENSES, NET - Schedule of Other Expenses, net (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Other expenses | € 11,830 | € 30,249 | € 33,137 |
Other income | (4,963) | (5,748) | (22,102) |
Other expenses, net | € 6,867 | € 24,501 | € 11,035 |
OTHER EXPENSES, NET - Narrative
OTHER EXPENSES, NET - Narrative (Details) - EUR (€) € in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Disclosure of other provisions [line items] | |||||
Indirect taxes | € 5,593 | € 5,628 | |||
Miscellaneous expenses | 6,237 | 9,152 | |||
Gains on disposals of property, plant and equipment | 2,585 | 2,903 | |||
Rental income | 1,747 | 1,569 | |||
Miscellaneous income | 631 | 1,276 | |||
Provisions | 15,469 | € 12,933 | |||
Sale price of group assets | € 0 | € 0 | 37,130 | ||
Legal proceedings and disputes | |||||
Disclosure of other provisions [line items] | |||||
Provisions | 8,822 | ||||
Provision for disputes with suppliers, employees and other parties | |||||
Disclosure of other provisions [line items] | |||||
Provisions | 4,111 | ||||
Investment properties in Modena, Italy | |||||
Disclosure of other provisions [line items] | |||||
Gains on sale of group assets | € 5,802 | ||||
Sale price of group assets | € 37,130 | ||||
Net book value of assets and liabilities disposed of | € 31,328 |
RESULT FROM INVESTMENTS - Narra
RESULT FROM INVESTMENTS - Narrative (Details) - EUR (€) € in Thousands | Nov. 07, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Investment [Line Items] | |||||
Other income from subsidiaries, jointly controlled entities and associates | € 2,437 | € 3,066 | € 0 | ||
Ferrari Financial Services GmbH | |||||
Investment [Line Items] | |||||
Other income from subsidiaries, gain on sale of majority stake | € 660 | ||||
Other income from subsidiaries, gain on fair value measurement of non-controlling interest | € 1,489 | ||||
Other income from subsidiaries, proportionate share of net profits | € 917 |
NET FINANCIAL EXPENSES (Details
NET FINANCIAL EXPENSES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about financial instruments [line items] | |||
Interest income from bank deposits | € 1,153 | € 843 | € 54 |
Other interest income and financial income | 5,284 | 1,841 | 6,473 |
Interest income and other financial income | 6,437 | 2,684 | 6,527 |
Total financial income | 56,691 | 60,920 | 68,114 |
Interest expenses on financial liabilities with FCA Group | 0 | 0 | (15,745) |
Capitalized borrowing costs | 1,578 | 1,519 | 1,530 |
Other interest cost and financial expenses | (3,775) | (4,090) | (3,163) |
Interest expenses and other financial expenses | (2,197) | (2,571) | (17,378) |
Interest expenses from banks | (23,057) | (27,042) | (3,357) |
Interest on bonds | (9,231) | (6,937) | 0 |
Write-downs of financial receivables | (3,530) | (3,864) | (9,607) |
Net interest expenses on employee benefits provisions | 0 | (389) | (79) |
Other financial expenses | (12,008) | (5,831) | (5,029) |
Total financial expenses | (50,023) | (46,634) | (35,450) |
Net expenses from derivative financial instruments and foreign currency exchange rate differences | (16,619) | (5,086) | (4,930) |
Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences relating to: | (66,642) | (51,720) | (40,380) |
Net financial expenses | (29,260) | (27,729) | (10,151) |
Interest expense on financial liabilities | 9,333 | ||
Industrial companies | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total financial income | 6,437 | 2,684 | 6,527 |
Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences relating to: | (35,697) | (30,413) | (16,678) |
Net financial expenses | (29,260) | (27,729) | (10,151) |
Financial services companies | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total financial income | 50,254 | 58,236 | 61,587 |
Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences relating to: | € (30,945) | € (21,307) | € (23,702) |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Expense (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income taxes [Abstract] | |||
Current tax expense | € 201,274 | € 189,492 | € 153,739 |
Deferred tax expense/(income) | 8,718 | (18,290) | (9,410) |
Taxes relating to prior periods | (1,232) | (3,567) | (214) |
Total income tax expense | € 208,760 | € 167,635 | € 144,115 |
INCOME TAXES - Schedule of In85
INCOME TAXES - Schedule of Income Tax Rate Reconciliation (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income taxes [Abstract] | |||
Theoretical income tax expense, net of IRAP | € 179,077 | € 156,022 | € 119,396 |
Permanent differences | (7,061) | (10,219) | 5,846 |
Effect of changes in tax rate and tax regulations | 4,862 | 1,280 | 4,005 |
Differences between foreign tax rates and the theoretical Italian tax rate and tax holidays | 2,344 | 853 | 1,631 |
Taxes relating to prior years | (1,232) | (3,567) | (214) |
Withholding tax on earnings | 2,420 | 2,017 | (384) |
Total income tax expense, net of IRAP | € 180,410 | € 146,386 | € 130,280 |
Effective tax rate, net of IRAP (percent) | 24.20% | 25.80% | 30.00% |
IRAP (current and deferred) | € 28,350 | € 21,249 | € 13,835 |
Total income tax expense | € 208,760 | € 167,635 | € 144,115 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - EUR (€) € in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||||
Applicable tax rate (percent) | 24.00% | 27.50% | 27.50% | ||
IRAP applicable tax rate (percent) | 3.90% | 3.90% | 3.90% | ||
Effective tax rate, net of IRAP (percent) | 24.20% | 25.80% | 30.00% | ||
Decrease in deferred tax asset | € 4,646 | ||||
UNITED STATES | |||||
Income Taxes [Line Items] | |||||
Applicable tax rate (percent) | 35.00% | ||||
UNITED STATES | Changes in tax rates and tax laws enacted | |||||
Income Taxes [Line Items] | |||||
Applicable tax rate (percent) | 21.00% |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | € 94,091 | € 119,357 | |
Deferred tax liabilities | (10,977) | (13,111) | |
Net deferred tax assets | 83,114 | 106,246 | € 99,277 |
To be recovered after 12 months | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 63,286 | 72,142 | |
Deferred tax liabilities | (9,885) | (10,517) | |
To be recovered within 12 months | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 30,805 | 47,215 | |
Deferred tax liabilities | € (1,092) | € (2,594) |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Asset and Liability Rollforward (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | € 119,357 | ||
Deferred tax liabilities | 13,111 | ||
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (8,718) | € 18,290 | |
Charged to equity | (9,554) | (16,961) | |
Changes in scope of consolidation | 3,962 | ||
Translation differences and other changes | (4,860) | 1,678 | |
Deferred tax assets | 94,091 | 119,357 | |
Deferred tax liabilities | 10,977 | 13,111 | |
Net deferred tax assets | 83,114 | 106,246 | € 99,277 |
Provisions | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 111,321 | 77,915 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (6,959) | 29,461 | |
Changes in scope of consolidation | (78) | ||
Translation differences and other changes | (2,119) | 4,023 | |
Deferred tax assets | 102,243 | 111,321 | |
Deferred income | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 43,549 | 39,318 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 2,649 | 4,231 | |
Deferred tax assets | 46,198 | 43,549 | |
Employee benefits | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 2,370 | 2,242 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (11) | (54) | |
Charged to equity | 203 | (18) | |
Translation differences and other changes | 200 | ||
Deferred tax assets | 2,562 | 2,370 | |
Cash flow hedge reserve | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 7,325 | 24,267 | |
Deferred tax liabilities | (1) | (1) | |
Changes in deferred tax liability (asset) [abstract] | |||
Charged to equity | (9,757) | (16,943) | |
Translation differences and other changes | 1 | ||
Deferred tax assets | (2,432) | 7,325 | |
Deferred tax liabilities | (1) | (1) | |
Foreign currency exchange rate differences | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 3,028 | 343 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (2,288) | 2,685 | |
Deferred tax assets | 740 | 3,028 | |
Inventory obsolescence | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 24,569 | 25,075 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 13,515 | (626) | |
Translation differences and other changes | (469) | 120 | |
Deferred tax assets | 37,615 | 24,569 | |
Allowances for doubtful accounts | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 4,107 | 3,633 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (94) | 485 | |
Translation differences and other changes | (14) | (11) | |
Deferred tax assets | 3,999 | 4,107 | |
Depreciation | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 19,853 | 21,682 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (3,283) | (1,783) | |
Translation differences and other changes | (46) | ||
Deferred tax assets | 16,570 | 19,853 | |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 13,833 | 10,838 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 2,007 | (1,808) | |
Changes in scope of consolidation | 6,989 | ||
Translation differences and other changes | (3,457) | (2,186) | |
Deferred tax assets | 12,383 | 13,833 | |
Total deferred tax assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 229,955 | 205,313 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 5,536 | 32,591 | |
Charged to equity | (9,554) | (16,961) | |
Changes in scope of consolidation | 6,911 | ||
Translation differences and other changes | (6,059) | 2,101 | |
Deferred tax assets | 219,878 | 229,955 | |
Depreciation | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (17,592) | (14,571) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 7,408 | (2,591) | |
Translation differences and other changes | 1,254 | (430) | |
Deferred tax liabilities | (8,930) | (17,592) | |
Capitalization of development costs | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (90,480) | (79,531) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (24,295) | (10,949) | |
Deferred tax liabilities | (114,775) | (90,480) | |
Employee benefits | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (1,745) | (1,713) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (123) | (32) | |
Deferred tax liabilities | (1,868) | (1,745) | |
Exchange rate differences | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (3,547) | (1,970) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 2,900 | (1,577) | |
Deferred tax liabilities | (647) | (3,547) | |
Lease accounting | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (11,004) | (11,457) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 352 | 453 | |
Deferred tax liabilities | (10,652) | (11,004) | |
Withholding tax on undistributed earnings | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (1,150) | (1,150) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 1,150 | ||
Deferred tax liabilities | 0 | (1,150) | |
Total deferred tax liabilities | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (125,519) | (110,393) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (12,608) | (14,696) | |
Translation differences and other changes | 1,254 | (430) | |
Deferred tax liabilities | (136,873) | (125,519) | |
Deferred tax asset arising on tax loss carry-forward | |||
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (1,646) | 395 | |
Changes in scope of consolidation | (2,949) | ||
Translation differences and other changes | (55) | 7 | |
Net deferred tax assets | € 109 | € 1,810 | € 4,357 |
OTHER INFORMATION BY NATURE - N
OTHER INFORMATION BY NATURE - Narrative (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | |
Other information by nature [Abstract] | |||
Compensation related to product development | € 305,584 | € 294,047 | € 284,947 |
Average number of employees | 3,336 | 3,115 | 2,954 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - EUR (€) € / shares in Units, € in Thousands, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic earnings per share [abstract] | |||
Profit attributable to owners of the Company | € 535,393 | € 398,762 | € 287,816 |
Weighted average number of common shares (shares) | 188,951 | 188,923 | 188,923 |
Basic earnings per common share (in Euros per share) | € 2.83 | € 2.11 | € 1.52 |
Diluted earnings per share [abstract] | |||
Owners of the parent | € 535,393 | € 398,762 | € 287,816 |
Weighted average number of common shares for diluted earnings per common share (shares) | 189,759 | 188,946 | 188,923 |
Diluted earnings per common share (in Euros per share) | € 2.82 | € 2.11 | € 1.52 |
GOODWILL (Details)
GOODWILL (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Abstract] | |||
Goodwill | € 785,182 | € 785,182 | |
Specific medium/ long-term growth rate (percent) | 2.00% | 2.00% | 2.10% |
Base WACC (percent) | 7.00% | 7.00% | 7.60% |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | € 354,394 | € 307,810 |
Intangible assets, ending balance | 440,456 | 354,394 |
Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 1,611,167 | 1,448,444 |
Additions | 202,506 | 166,340 |
Reclassification | 0 | 0 |
Change in scope of consolidation | (3,458) | |
Translation differences | (2,454) | (159) |
Intangible assets, ending balance | 1,811,219 | 1,611,167 |
Accumulated amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 1,256,773 | 1,140,634 |
Amortization | 117,122 | 118,102 |
Reclassification | 0 | |
Change in scope of consolidation | (1,766) | |
Translation differences | (3,132) | (197) |
Intangible assets, ending balance | 1,370,763 | 1,256,773 |
Development costs | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 141,396 | |
Intangible assets, ending balance | 185,115 | 141,396 |
Development costs | Externally acquired | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 164,341 | 137,572 |
Intangible assets, ending balance | 234,158 | 164,341 |
Development costs | Externally acquired | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 938,492 | 834,483 |
Additions | 142,795 | 104,009 |
Reclassification | 0 | 0 |
Change in scope of consolidation | 0 | |
Translation differences | 0 | 0 |
Intangible assets, ending balance | 1,081,287 | 938,492 |
Development costs | Externally acquired | Accumulated amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 774,151 | 696,911 |
Amortization | 72,978 | 77,240 |
Reclassification | 0 | |
Change in scope of consolidation | 0 | |
Translation differences | 0 | 0 |
Intangible assets, ending balance | 847,129 | 774,151 |
Development costs | Internally acquired | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 158,817 | 148,245 |
Intangible assets, ending balance | 173,613 | 158,817 |
Development costs | Internally acquired | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 474,641 | 437,254 |
Additions | 42,320 | 37,387 |
Reclassification | 0 | 0 |
Change in scope of consolidation | 0 | |
Translation differences | 0 | 0 |
Intangible assets, ending balance | 516,961 | 474,641 |
Development costs | Internally acquired | Accumulated amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 315,824 | 289,009 |
Amortization | 27,524 | 26,815 |
Reclassification | 0 | |
Change in scope of consolidation | 0 | |
Translation differences | 0 | 0 |
Intangible assets, ending balance | 343,348 | 315,824 |
Patents, concessions and licenses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 13,391 | 13,471 |
Intangible assets, ending balance | 26,080 | 13,391 |
Patents, concessions and licenses | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 144,192 | 131,237 |
Additions | 12,416 | 12,110 |
Reclassification | 12,289 | 4,369 |
Change in scope of consolidation | (3,458) | |
Translation differences | (1,011) | (66) |
Intangible assets, ending balance | 167,886 | 144,192 |
Patents, concessions and licenses | Accumulated amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 130,801 | 117,766 |
Amortization | 14,312 | 11,628 |
Reclassification | 3,317 | |
Change in scope of consolidation | (1,766) | |
Translation differences | (3,307) | (144) |
Intangible assets, ending balance | 141,806 | 130,801 |
Other intangible assets | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 17,845 | 8,522 |
Intangible assets, ending balance | 6,605 | 17,845 |
Other intangible assets | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 53,842 | 45,470 |
Additions | 4,975 | 12,834 |
Reclassification | (12,289) | (4,369) |
Change in scope of consolidation | 0 | |
Translation differences | (1,443) | (93) |
Intangible assets, ending balance | 45,085 | 53,842 |
Other intangible assets | Accumulated amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 35,997 | 36,948 |
Amortization | 2,308 | 2,419 |
Reclassification | (3,317) | |
Change in scope of consolidation | 0 | |
Translation differences | 175 | (53) |
Intangible assets, ending balance | € 38,480 | € 35,997 |
PROPERTY, PLANT AND EQUIPMENT93
PROPERTY, PLANT AND EQUIPMENT (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | € 669,283 | € 626,130 |
Property, plant and equipment, ending balance | 710,260 | 669,283 |
Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 2,367,435 | 2,212,720 |
Additions | 188,904 | 175,647 |
Divestitures | (35,423) | (18,554) |
Reclassification | 0 | (2,424) |
Change in scope of consolidation | (613) | |
Translation differences | (2,417) | 659 |
Property, plant and equipment, ending balance | 2,518,499 | 2,367,435 |
Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 1,698,152 | 1,586,590 |
Depreciation | 143,484 | 129,615 |
Divestitures | (32,299) | (18,275) |
Reclassification | 0 | |
Change in scope of consolidation | (312) | |
Translation differences | (1,098) | 534 |
Property, plant and equipment, ending balance | 1,808,239 | 1,698,152 |
Land | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 22,681 | 22,671 |
Property, plant and equipment, ending balance | 23,537 | 22,681 |
Land | Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 22,681 | 22,671 |
Additions | 892 | 0 |
Divestitures | 0 | 0 |
Reclassification | 0 | 0 |
Change in scope of consolidation | 0 | |
Translation differences | (36) | 10 |
Property, plant and equipment, ending balance | 23,537 | 22,681 |
Land | Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 0 | 0 |
Depreciation | 0 | 0 |
Divestitures | 0 | 0 |
Reclassification | 0 | |
Change in scope of consolidation | 0 | |
Translation differences | 0 | 0 |
Property, plant and equipment, ending balance | 0 | 0 |
Industrial buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 204,681 | 208,078 |
Property, plant and equipment, ending balance | 199,489 | 204,681 |
Industrial buildings | Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 337,503 | 331,177 |
Additions | 4,691 | 5,596 |
Divestitures | (77) | (1,021) |
Reclassification | 355 | 1,578 |
Change in scope of consolidation | 0 | |
Translation differences | (723) | 173 |
Property, plant and equipment, ending balance | 341,749 | 337,503 |
Industrial buildings | Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 132,822 | 123,099 |
Depreciation | 9,860 | 9,995 |
Divestitures | (69) | (608) |
Reclassification | (177) | |
Change in scope of consolidation | 0 | |
Translation differences | (353) | 159 |
Property, plant and equipment, ending balance | 142,260 | 132,822 |
Plant, machinery and equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 325,161 | 327,011 |
Property, plant and equipment, ending balance | 403,693 | 325,161 |
Plant, machinery and equipment | Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 1,786,156 | 1,691,482 |
Additions | 131,981 | 81,678 |
Divestitures | (31,877) | (9,902) |
Reclassification | 73,160 | 22,898 |
Change in scope of consolidation | 0 | |
Translation differences | 42 | 0 |
Property, plant and equipment, ending balance | 1,959,462 | 1,786,156 |
Plant, machinery and equipment | Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 1,460,995 | 1,364,471 |
Depreciation | 124,629 | 109,939 |
Divestitures | (29,761) | (11,628) |
Reclassification | 1,786 | |
Change in scope of consolidation | 0 | |
Translation differences | (94) | (1) |
Property, plant and equipment, ending balance | 1,555,769 | 1,460,995 |
Other assets | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 28,287 | 32,607 |
Property, plant and equipment, ending balance | 26,781 | 28,287 |
Other assets | Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 132,622 | 131,627 |
Additions | 11,855 | 7,322 |
Divestitures | (3,101) | (7,631) |
Reclassification | (2,685) | 1,441 |
Change in scope of consolidation | (613) | |
Translation differences | (1,700) | 476 |
Property, plant and equipment, ending balance | 136,991 | 132,622 |
Other assets | Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 104,335 | 99,020 |
Depreciation | 8,995 | 9,681 |
Divestitures | (2,469) | (6,039) |
Reclassification | (1,609) | |
Change in scope of consolidation | (312) | |
Translation differences | (651) | 376 |
Property, plant and equipment, ending balance | 110,210 | 104,335 |
Advances and assets under construction | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 88,473 | 35,763 |
Property, plant and equipment, ending balance | 56,760 | 88,473 |
Advances and assets under construction | Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 88,473 | 35,763 |
Additions | 39,485 | 81,051 |
Divestitures | (368) | 0 |
Reclassification | (70,830) | (28,341) |
Change in scope of consolidation | 0 | |
Translation differences | 0 | 0 |
Property, plant and equipment, ending balance | 56,760 | 88,473 |
Advances and assets under construction | Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 0 | 0 |
Depreciation | 0 | 0 |
Divestitures | 0 | 0 |
Reclassification | 0 | |
Change in scope of consolidation | 0 | |
Translation differences | 0 | 0 |
Property, plant and equipment, ending balance | € 0 | € 0 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Contractual commitments for acquisition of property, plant and equipment | € 37,844 | € 49,614 |
Gross carrying amount | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Additions | 188,904 | 175,647 |
Plant, machinery and equipment | Gross carrying amount | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Additions | 131,981 | 81,678 |
Advances and assets under construction | Gross carrying amount | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Additions | € 39,485 | € 81,051 |
INVESTMENTS AND OTHER FINANCI95
INVESTMENTS AND OTHER FINANCIAL ASSETS - Narrative (Details) - EUR (€) € in Thousands, shares in Thousands | Feb. 22, 2017 | Nov. 07, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of information about unconsolidated subsidiaries [line items] | ||||
Proceeds from the sale of assets and liabilities related to investment properties | € 10,878 | |||
Dividends received from investments accounted for using equity method, classified as investing activities | € 2,571 | |||
Investments in associates | € 732,947 | € 790,377 | ||
Other securities and financial assets | 6,698 | € 1,020 | ||
FCA Bank | ||||
Disclosure of information about unconsolidated subsidiaries [line items] | ||||
Cash received as funding for FFS GmbH | € 431,958 | |||
Liberty Media | ||||
Disclosure of information about unconsolidated subsidiaries [line items] | ||||
Number of shares in entity held by entity or by its subsidiaries or associates (shares) | 145 | |||
Investments in associates | € 2,887 | |||
Debt instruments held | € 851 | |||
Other securities and financial assets | € 5,705 |
INVESTMENTS AND OTHER FINANCI96
INVESTMENTS AND OTHER FINANCIAL ASSETS - Investments and Other Financial Assets (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Investment [Line Items] | |||
Investments and other financial assets | € 23,340 | € 20,948 | € 0 |
Other securities and financial assets | 6,698 | 1,020 | |
Total investments and other financial assets | 30,038 | 33,935 | |
Option contract | |||
Investment [Line Items] | |||
Delta Topco option | € 0 | € 11,967 |
INVESTMENTS AND OTHER FINANCI97
INVESTMENTS AND OTHER FINANCIAL ASSETS - Changes in Equity Method Investments (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investments and other financial assets [Abstract] | ||
Balance at January 1, | € 20,948 | € 0 |
Change in scope of consolidation | 18,542 | |
Fair value measurement of interest retained by the Group | 1,489 | |
Proportionate share of net profit for the period | 2,437 | 917 |
Proportionate share of remeasurement of defined benefit plans | (45) | |
Balance at December 31, | € 23,340 | € 20,948 |
INVESTMENTS AND OTHER FINANCI98
INVESTMENTS AND OTHER FINANCIAL ASSETS - Financial Information Relating to FFS GmbH(Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Non-current assets [abstract] | ||||
Intangible assets | € 440,456 | € 354,394 | € 307,810 | |
Property, plant and equipment | 710,260 | 669,283 | 626,130 | |
Deferred tax assets | 94,091 | 119,357 | ||
Total non-current assets | 2,060,027 | 1,962,151 | ||
Current assets [abstract] | ||||
Current inventories | 393,765 | 323,998 | ||
Trade receivables | 239,410 | 243,977 | ||
Other current assets | 45,441 | 53,729 | ||
Cash and cash equivalents | 647,706 | 457,784 | 182,753 | € 134,278 |
Total current assets | 2,081,077 | 1,887,453 | ||
Total assets | 4,141,104 | 3,849,604 | ||
Equity and liabilities [abstract] | ||||
Equity | 783,936 | 329,805 | (19,403) | € 2,478,313 |
Debt | 1,806,181 | 1,848,041 | ||
Trade payables | 607,505 | 614,888 | ||
Other liabilities | 620,350 | 656,275 | ||
Total equity and liabilities | 4,141,104 | 3,849,604 | ||
Profit or loss [abstract] | ||||
Net revenues | 3,416,890 | 3,105,084 | 2,854,369 | |
Cost of sales | 1,650,860 | 1,579,690 | 1,498,806 | |
Selling, general and administrative costs | 329,065 | 295,242 | 338,626 | |
Other expenses, net | 6,867 | 24,501 | 11,035 | |
Profit before taxes | 746,156 | 567,353 | 434,169 | |
Tax expense (income), continuing operations | 208,760 | 167,635 | 144,115 | |
Net profit | 537,396 | 399,718 | € 290,054 | |
Ferrari Financial Services GmbH | ||||
Non-current assets [abstract] | ||||
Intangible assets | 647 | 1,133 | ||
Property, plant and equipment | 66 | 119 | ||
Deferred tax assets | 1,977 | 2,736 | ||
Total non-current assets | 2,690 | 3,988 | ||
Current assets [abstract] | ||||
Current inventories | 259 | 412 | ||
Trade receivables | 1,461 | 472 | ||
Current loans and receivables | 493,985 | 463,108 | ||
Other current assets | 8,292 | 3,543 | ||
Cash and cash equivalents | 8,109 | 29,087 | ||
Total current assets | 512,106 | 496,622 | ||
Total assets | 514,796 | 500,610 | ||
Equity and liabilities [abstract] | ||||
Equity | 44,705 | 39,921 | ||
Non-current liabilities and provisions | 8,903 | 7,920 | ||
Debt | 457,787 | 447,272 | ||
Trade payables | 457 | 123 | ||
Other liabilities | 2,944 | 5,374 | ||
Total equity and liabilities | 514,796 | 500,610 | ||
Profit or loss [abstract] | ||||
Net revenues | 26,505 | 27,471 | ||
Cost of sales | 11,525 | 9,563 | ||
Selling, general and administrative costs | 8,173 | 8,432 | ||
Other expenses, net | 245 | 180 | ||
Profit before taxes | 6,562 | 9,296 | ||
Tax expense (income), continuing operations | 1,689 | 2,070 | ||
Net profit | € 4,873 | € 7,226 |
INVENTORIES (Details)
INVENTORIES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of other provisions [line items] | |||
Raw materials | € 99,225 | € 95,594 | |
Semi-finished goods | 87,678 | 72,472 | |
Finished goods | 206,862 | 155,932 | |
Current inventories | 393,765 | 323,998 | |
Reconciliation of changes in other provisions [abstract] | |||
Provisions, beginning balance | 215,227 | ||
Provision | (31,714) | ||
Use and other changes | (46,919) | ||
Provisions, ending balance | 197,392 | 215,227 | |
Provisions for slow moving and obsolete inventories | |||
Reconciliation of changes in other provisions [abstract] | |||
Provisions, beginning balance | 60,548 | 60,588 | |
Provision | 10,140 | 2,120 | € 11,610 |
Use and other changes | (3,699) | (2,160) | |
Provisions, ending balance | € 66,989 | € 60,548 | € 60,588 |
CURRENT RECEIVABLES AND OTHE100
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial assets [line items] | |||
Trade receivables | € 239,410 | € 243,977 | |
Receivables from financing activities | 732,947 | 790,377 | |
Current tax receivables | 6,125 | 1,312 | |
Other current assets | 45,441 | 53,729 | |
Total | 1,023,923 | 1,089,395 | |
Reconciliation of changes in other provisions [abstract] | |||
Provisions, beginning balance | 19,174 | ||
Provisions, ending balance | € 21,993 | 19,174 | |
Averege contractual duration at inception of contracts | 66 months | ||
Weighted average interest rate (percent) | 5.10% | ||
Prepayments | € 27,980 | 31,611 | |
Italian and foreign VAT credits | 11,988 | 12,032 | |
Due from personnel | 959 | 747 | |
Security deposits | 1,014 | 932 | |
Other receivables | 3,500 | 8,407 | |
Other current receivables | 17,461 | 22,118 | |
Total current receivables, excluding prepayments | 995,943 | 1,057,784 | |
FCA Group companies | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 75,245 | 75,694 | |
Dealers | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 48,166 | 47,208 | |
Sponsors | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 30,058 | 42,789 | |
Brand activities | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 33,283 | 15,650 | |
Other | |||
Disclosure of financial assets [line items] | |||
Trade receivables | € 52,658 | 62,636 | |
Bottom of range | |||
Reconciliation of changes in other provisions [abstract] | |||
Trade receivables settlement period | 15 days | ||
Top of range | |||
Reconciliation of changes in other provisions [abstract] | |||
Trade receivables settlement period | 60 days | ||
Other | |||
Disclosure of financial assets [line items] | |||
Trade receivables | € 4,287 | 4,380 | |
Japanese Yen | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 3,151 | 16,310 | |
Chinese Yuan | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 2,947 | 3,819 | |
Pound Sterling | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 2,915 | 1,222 | |
U.S. Dollar | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 53,618 | 62,701 | |
Euro Member Countries, Euro | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 172,492 | 155,545 | |
Overdue | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 32,336 | 18,567 | |
Receivables from financing activities | 11,943 | 41,594 | |
Current tax receivables | 0 | 0 | |
Reconciliation of changes in other provisions [abstract] | |||
Other current receivables | 5 | 0 | |
Total current receivables, excluding prepayments | 44,284 | 60,161 | |
Due within one year | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 207,074 | 225,402 | |
Receivables from financing activities | 144,621 | 146,412 | |
Current tax receivables | 5,667 | 690 | |
Reconciliation of changes in other provisions [abstract] | |||
Other current receivables | 16,767 | 21,572 | |
Total current receivables, excluding prepayments | 374,129 | 394,076 | |
Due between one and five years | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 0 | 8 | |
Receivables from financing activities | 529,489 | 554,030 | |
Current tax receivables | 458 | 622 | |
Reconciliation of changes in other provisions [abstract] | |||
Other current receivables | 682 | 539 | |
Total current receivables, excluding prepayments | 530,629 | 555,199 | |
Due beyond five years | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 0 | 0 | |
Receivables from financing activities | 46,894 | 48,341 | |
Current tax receivables | 0 | 0 | |
Reconciliation of changes in other provisions [abstract] | |||
Other current receivables | 7 | 7 | |
Total current receivables, excluding prepayments | 46,901 | 48,348 | |
Payment Guarantee | |||
Reconciliation of changes in other provisions [abstract] | |||
Guarantees through third parties | 132,014 | 89,014 | |
Client Financing | |||
Disclosure of financial assets [line items] | |||
Receivables from financing activities | 704,014 | 758,679 | |
Client Financing | Overdue | |||
Disclosure of financial assets [line items] | |||
Receivables from financing activities | 11,943 | 41,594 | |
Client Financing | Due within one year | |||
Disclosure of financial assets [line items] | |||
Receivables from financing activities | 134,972 | 136,602 | |
Client Financing | Due between one and five years | |||
Disclosure of financial assets [line items] | |||
Receivables from financing activities | 513,079 | 536,954 | |
Client Financing | Due beyond five years | |||
Disclosure of financial assets [line items] | |||
Receivables from financing activities | 44,020 | 43,529 | |
Dealer Financing | |||
Disclosure of financial assets [line items] | |||
Receivables from financing activities | € 28,933 | € 31,698 | |
Dealer Financing | Bottom of range | |||
Reconciliation of changes in other provisions [abstract] | |||
Dealer financing receivables, interest rates (percent) | 6.00% | 5.20% | |
Dealer Financing | Top of range | |||
Reconciliation of changes in other provisions [abstract] | |||
Dealer financing receivables, interest rates (percent) | 3.30% | 2.90% | |
Dealer Financing | Overdue | |||
Disclosure of financial assets [line items] | |||
Receivables from financing activities | € 0 | € 0 | |
Dealer Financing | Due within one year | |||
Disclosure of financial assets [line items] | |||
Receivables from financing activities | 9,649 | 9,810 | |
Dealer Financing | Due between one and five years | |||
Disclosure of financial assets [line items] | |||
Receivables from financing activities | 16,410 | 17,076 | |
Dealer Financing | Due beyond five years | |||
Disclosure of financial assets [line items] | |||
Receivables from financing activities | 2,874 | 4,812 | |
Loans to consumers [member] | |||
Reconciliation of changes in other provisions [abstract] | |||
Provisions, beginning balance | 11,556 | 18,671 | |
Provision | 3,530 | 2,455 | |
Change in scope of consolidation | 0 | (8,409) | |
Use and other changes | (8,138) | (1,161) | |
Provisions, ending balance | 6,948 | 11,556 | € 18,671 |
Trade receivables | |||
Reconciliation of changes in other provisions [abstract] | |||
Provisions, beginning balance | 19,174 | 18,371 | |
Provision | 3,231 | 3,504 | |
Use and other changes | (412) | (2,701) | |
Provisions, ending balance | € 21,993 | € 19,174 | € 18,371 |
ITALY | Factoring of receivables | Floating interest rate | EURIBOR | |||
Reconciliation of changes in other provisions [abstract] | |||
Basis spread on variable rate (percent) | 3.50% | ||
UNITED STATES | Factoring of receivables | Floating interest rate | LIBOR | |||
Reconciliation of changes in other provisions [abstract] | |||
Basis spread on variable rate (percent) | 3.50% | 3.50% |
CURRENT FINANCIAL ASSETS AND101
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES - Current Financial Assets (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Instruments [Abstract] | ||
Financial derivatives | € 11,686 | € 10,388 |
Other financial assets | 3,997 | 5,888 |
Current financial assets | € 15,683 | € 16,276 |
CURRENT FINANCIAL ASSETS AND102
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES - Financial Derivatives (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | € 11,686 | € 10,388 |
Negative fair value | (1,444) | (39,638) |
Cash flow hedges | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 8,848 | 8,160 |
Negative fair value | (1,136) | (39,580) |
Currency risk | Other foreign exchange derivative | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 1,729 | 1,548 |
Negative fair value | (308) | (58) |
Currency risk | Cash flow hedges | Forward contract | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 8,848 | 8,160 |
Negative fair value | (1,136) | (39,580) |
Interest rate risk | Interest rate cap contract | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 1,109 | 680 |
Negative fair value | € 0 | € 0 |
CURRENT FINANCIAL ASSETS AND103
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES - Analysis of Foreign Currency Derivatives (Details) - Currency risk - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | € 463,624 | € 1,128,846 |
Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | (29,250) | |
Derivative financial assets | 10,242 | |
U.S. Dollar | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 114,317 | 788,274 |
U.S. Dollar | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | (33,758) | |
Derivative financial assets | 2,637 | |
Pound Sterling | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 110,032 | 106,056 |
Pound Sterling | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets | 510 | 3,668 |
Chinese Yuan | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 18,095 | 19,917 |
Chinese Yuan | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | (97) | (125) |
Swiss Franc | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 43,552 | 47,923 |
Swiss Franc | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | (476) | |
Derivative financial assets | 1,999 | |
Japanese Yen | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 81,890 | 91,854 |
Japanese Yen | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets | 4,402 | 2,835 |
Other | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 95,738 | 74,822 |
Other | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | (1,394) | |
Derivative financial assets | 791 | |
Due within one year | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 463,624 | 1,128,846 |
Due within one year | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | (29,250) | |
Derivative financial assets | 10,242 | |
Due within one year | U.S. Dollar | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 114,317 | 788,274 |
Due within one year | U.S. Dollar | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | (33,758) | |
Derivative financial assets | 2,637 | |
Due within one year | Pound Sterling | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 110,032 | 106,056 |
Due within one year | Pound Sterling | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets | 510 | 3,668 |
Due within one year | Chinese Yuan | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 18,095 | 19,917 |
Due within one year | Chinese Yuan | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | (97) | (125) |
Due within one year | Swiss Franc | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 43,552 | 47,923 |
Due within one year | Swiss Franc | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | (476) | |
Derivative financial assets | 1,999 | |
Due within one year | Japanese Yen | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 81,890 | 91,854 |
Due within one year | Japanese Yen | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets | 4,402 | 2,835 |
Due within one year | Other | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative notional amount | 95,738 | 74,822 |
Due within one year | Other | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | € (1,394) | |
Derivative financial assets | € 791 |
CURRENT FINANCIAL ASSETS AND104
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES - Reclassified Gains and Losses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about financial instruments [line items] | |||
Net (expenses) revenues | € 19,724 | € (69,368) | € (168,840) |
Total recognized in the consolidated income statement | (5,503) | 19,354 | 53,016 |
Total recognized in the consolidated income statement | 14,221 | (50,014) | (115,824) |
Net revenues/(costs) | |||
Disclosure of detailed information about financial instruments [line items] | |||
Net (expenses) revenues | 19,724 | (69,368) | (145,095) |
Net financial expenses | |||
Disclosure of detailed information about financial instruments [line items] | |||
Net (expenses) revenues | € 0 | € 0 | € (23,745) |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) € / shares in Units, € in Thousands | Apr. 14, 2017EUR (€) | May 31, 2017EUR (€)€ / shares | May 31, 2016EUR (€)€ / shares | Jun. 30, 2015 | Dec. 31, 2017EUR (€)vote€ / sharesshares | Dec. 31, 2016EUR (€)shares | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) | |
Disclosure of reserves within equity [line items] | |||||||||
Equity | € 783,936 | € 329,805 | € (19,403) | € 2,478,313 | |||||
Share capital | € 2,504 | ||||||||
Number of votes held for each common share under loyalty voting structure | vote | 2 | ||||||||
Required holding period of special voting shares in order to participate in program | 3 years | ||||||||
Number of votes that can be exercised for each voting share | vote | 1 | ||||||||
Share premium reserve | € 5,768,544 | 5,888,529 | |||||||
Legal reserve | 8 | 14 | |||||||
Cash distribution paid (in Euro per share) | € / shares | € 0.635 | € 0.46 | |||||||
Cash distribution of reserves | € 119,985 | € 114,738 | € 86,905 | ||||||
Share-based compensation | [1] | 28,597 | 1,110 | ||||||
(Losses)/Gains on remeasurement of defined benefit plans | 730 | 1,448 | (898) | ||||||
Non-controlling interests | 5,258 | 4,810 | |||||||
Reduction to equity | (8,500) | ||||||||
Dividends to non-controlling interests | 1,218 | 1,732 | |||||||
Dividends paid to non-controlling interests, classified as financing activities | € 1,218 | 17,207 | 53,942 | ||||||
Common shares | |||||||||
Disclosure of reserves within equity [line items] | |||||||||
Number of shares issued (in shares) | shares | 193,923,499 | ||||||||
Special Voting Shares | |||||||||
Disclosure of reserves within equity [line items] | |||||||||
Nominal value of shares (in Euros per share) | € / shares | € 0.01 | ||||||||
Number of shares issued (in shares) | shares | 56,497,618 | ||||||||
Share capital | |||||||||
Disclosure of reserves within equity [line items] | |||||||||
Equity | € 2,504 | € 2,504 | € 3,778 | € 3,778 | |||||
Nominal value of shares (in Euros per share) | € / shares | € 0.01 | ||||||||
Treasury shares | Common shares | |||||||||
Disclosure of reserves within equity [line items] | |||||||||
Number of shares issued (in shares) | shares | 4,969,625 | 5,000,000 | |||||||
Treasury shares | Special Voting Shares | |||||||||
Disclosure of reserves within equity [line items] | |||||||||
Number of shares issued (in shares) | shares | 4,099 | 2,930 | |||||||
FCA Group companies | |||||||||
Disclosure of reserves within equity [line items] | |||||||||
Share premium contribution | € 1,162 | ||||||||
Ferrari International Cars Trading (Shanghai) Co. L.t.d. | |||||||||
Disclosure of reserves within equity [line items] | |||||||||
Noncontrolling interest (percent) | 20.00% | 20.00% | |||||||
Ownership interest (percent) | 80.00% | 80.00% | |||||||
FFS | |||||||||
Disclosure of reserves within equity [line items] | |||||||||
(Losses)/Gains on remeasurement of defined benefit plans | € 45 | ||||||||
Ownership interest (percent) | 49.90% | ||||||||
Ferrari Financial Services S.p.A. | |||||||||
Disclosure of reserves within equity [line items] | |||||||||
Noncontrolling interest (percent) | 10.00% | 0.00% | 0.00% | ||||||
Ownership interest (percent) | 100.00% | 100.00% | |||||||
Ferrari Financial Services S.p.A. | Aldasa GmbH | |||||||||
Disclosure of reserves within equity [line items] | |||||||||
Noncontrolling interest (percent) | 10.00% | ||||||||
Purchase price of FFS shares | € 8,500 | ||||||||
Non-controlling interests | 5,898 | ||||||||
Reduction to equity | 2,602 | ||||||||
PSU and RSU Awards Under Equity Incentive Plan | Reserve of share-based payments | |||||||||
Disclosure of reserves within equity [line items] | |||||||||
Cumulative increase to other reserves | € 28,179 | ||||||||
Non-executive Directors | |||||||||
Disclosure of reserves within equity [line items] | |||||||||
Share-based compensation | € 418 | € 1,110 | |||||||
[1] | Relates to the equity-settled Non-Executive Directors’ compensation and from 2017 also the equity incentive plan. See Note 21 “Equity” and Note 22 “Share-based Compensation” for additional details. |
EQUITY - Other Comprehensive In
EQUITY - Other Comprehensive Income (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Items that will not be reclassified to the consolidated income statement in subsequent periods: | |||
(Losses)/Gains on remeasurement of defined benefit plans | € (730) | € (1,448) | € 898 |
Total items that will not be reclassified to the consolidated income statement in subsequent periods | (730) | (1,448) | 898 |
Items that may be reclassified to the consolidated income statement in subsequent periods: | |||
Gains/(losses) on cash flow hedging instruments | 54,695 | (18,282) | (160,606) |
(Gains)/Losses on cash flow hedging instruments reclassified to the consolidated income statement | (19,724) | 69,368 | 168,840 |
Gains on cash flow hedging instruments | 34,971 | 51,086 | 8,234 |
Exchange differences on translating foreign operations | (15,346) | 4,118 | 13,344 |
Total items that may be reclassified to the consolidated income statement in subsequent periods | 19,625 | 55,204 | 21,578 |
Total other comprehensive income | 18,895 | 53,756 | 22,476 |
Related tax impact | (9,554) | (16,961) | (2,908) |
Total other comprehensive income, net of tax | € 9,341 | € 36,795 | € 19,568 |
EQUITY - Tax Effect Relating to
EQUITY - Tax Effect Relating to Other Comprehensive Income (Loss) (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Share Capital Reserves and Other Equity Interests [Abstract] | |||
(Losses)/Gains on remeasurement of defined benefit plans, before tax | € (730) | € (1,448) | € 898 |
(Losses)/Gains on remeasurement of defined benefit plans, tax | 203 | (18) | (308) |
(Losses)/Gains on remeasurement of defined benefit plans, net of tax | (527) | (1,466) | 590 |
Gains/(Losses) on cash flow hedging instruments, before tax | 34,971 | 51,086 | 8,234 |
Gains/(Losses) on cash flow hedging instruments, tax | (9,757) | (16,943) | (2,600) |
Gains/(Losses) on cash flow hedging instruments, net of tax | 25,214 | 34,143 | 5,634 |
Exchange differences on translating foreign operations, before tax | (15,346) | 4,118 | 13,344 |
Exchange gains on translating foreign operations, tax | 0 | 0 | 0 |
Exchange gains on translating foreign operations, net of tax | (15,346) | 4,118 | 13,344 |
Total other comprehensive income/(loss), before tax | 18,895 | 53,756 | 22,476 |
Total other comprehensive income/(loss), tax | (9,554) | (16,961) | (2,908) |
Total other comprehensive income, net of tax | € 9,341 | € 36,795 | € 19,568 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) | Apr. 14, 2017EUR (€)sharesvesting_tranche | Dec. 31, 2017EUR (€)shares |
PSU and RSU Awards Under Equity Incentive Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Performance period | 5 years | |
Unrecognized compensation expense | € | € 26,051,000 | |
PSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of instruments granted in share-based payment arrangement (shares) | shares | 687,000 | |
Number of equal vesting tranches | vesting_tranche | 3 | |
Number of awards forfeited (shares) | shares | 0 | |
Number of outstanding awards that had vested (Shares) | shares | 0 | |
RSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of instruments granted in share-based payment arrangement (shares) | shares | 119,000 | |
Number of equal vesting tranches | vesting_tranche | 3 | |
Members of GEC and Key Leaders | PSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of instruments granted in share-based payment arrangement (shares) | shares | 237,000 | |
Chief Executive Officer | PSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of instruments granted in share-based payment arrangement (shares) | shares | 450,000 | |
Performance period | 5 years | |
Number of equal vesting tranches | vesting_tranche | 3 | |
Bottom of range | PSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value of PSUs (per share) | € | € 59.36 | |
Bottom of range | RSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value of PSUs (per share) | € | 63 | |
Top of range | PSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value of PSUs (per share) | € | 72.06 | |
Top of range | RSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value of PSUs (per share) | € | € 64.64 | |
Reserve of share-based payments | PSU and RSU Awards Under Equity Incentive Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Cumulative increase to other reserves | € | € 28,179,000 |
SHARE-BASED COMPENSATION - Targ
SHARE-BASED COMPENSATION - Target Vesting Percentages Based on Company's TSR Rankings (Details) - PSUs | Apr. 14, 2017 |
Ferrari TSR Ranking 1 | Chief Executive Officer | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of Target Awards that Vest (percent) | 150.00% |
Ferrari TSR Ranking 1 | Members of GEC and Key Leaders | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of Target Awards that Vest (percent) | 150.00% |
Ferrari TSR Ranking 2 | Chief Executive Officer | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of Target Awards that Vest (percent) | 120.00% |
Ferrari TSR Ranking 2 | Members of GEC and Key Leaders | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of Target Awards that Vest (percent) | 120.00% |
Ferrari TSR Ranking 3 | Chief Executive Officer | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of Target Awards that Vest (percent) | 100.00% |
Ferrari TSR Ranking 3 | Members of GEC and Key Leaders | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of Target Awards that Vest (percent) | 100.00% |
Ferrari TSR Ranking 4 | Chief Executive Officer | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of Target Awards that Vest (percent) | 75.00% |
Ferrari TSR Ranking 4 | Members of GEC and Key Leaders | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of Target Awards that Vest (percent) | 0.00% |
Ferrari TSR Ranking 5 | Chief Executive Officer | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of Target Awards that Vest (percent) | 50.00% |
Ferrari TSR Ranking 5 | Members of GEC and Key Leaders | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of Target Awards that Vest (percent) | 0.00% |
SHARE-BASED COMPENSATION - Key
SHARE-BASED COMPENSATION - Key Assumptions Used to Calculate Grant-date Fair Values (Details) - PSUs | Apr. 14, 2017€ / shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grant date share price (in Euros per share) | € 66.85 |
Expected volatility (percent) | 17.40% |
Dividend yield (percent) | 1.20% |
Risk-free rate (percent) | 0.00% |
EMPLOYEE BENEFITS - Group's Pro
EMPLOYEE BENEFITS - Group's Provision for Employee Benefits (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [line items] | ||
Total present value of defined benefit obligations | € 23,245 | € 24,611 |
Total provisions for employee benefits | 84,159 | 91,024 |
Other provisions for employees | ||
Disclosure of defined benefit plans [line items] | ||
Total provisions for employee benefits | 60,914 | 66,413 |
Italian employee severance indemnity (TFR) | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of defined benefit obligations | 22,641 | 23,783 |
Pension plans | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of defined benefit obligations | € 604 | € 828 |
EMPLOYEE BENEFITS - Expected Be
EMPLOYEE BENEFITS - Expected Benefit Payments (Details) € in Thousands | Dec. 31, 2017EUR (€) |
Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | € 15,121 |
Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 4,025 |
2018 | Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,350 |
2018 | Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 41 |
2019 | Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,401 |
2019 | Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 41 |
2020 | Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,596 |
2020 | Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 42 |
2021 | Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,960 |
2021 | Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 42 |
2022 | Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,725 |
2022 | Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 3,262 |
Beyond 2022 | Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 7,089 |
Beyond 2022 | Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | € 597 |
EMPLOYEE BENEFITS - Changes in
EMPLOYEE BENEFITS - Changes in Defined Benefit Obligation (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit obligation | € 24,611 | € 23,924 |
Included in the consolidated income statement | 142 | 354 |
Actuarial losses/(gains) from financial assumptions | 685 | 1,812 |
Benefits paid | (2,128) | (1,509) |
Other changes | (65) | 30 |
Net defined benefit obligation | 23,245 | 24,611 |
Italian employee severance indemnity (TFR) | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit obligation | 23,783 | 23,119 |
Included in the consolidated income statement | 0 | 391 |
Actuarial losses/(gains) from financial assumptions | 820 | 1,580 |
Benefits paid | (1,964) | (1,337) |
Other changes | 2 | 30 |
Net defined benefit obligation | 22,641 | 23,783 |
Pension plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit obligation | 828 | 805 |
Included in the consolidated income statement | 142 | (37) |
Actuarial losses/(gains) from financial assumptions | (135) | 232 |
Benefits paid | (164) | (172) |
Other changes | (67) | 0 |
Net defined benefit obligation | € 604 | € 828 |
EMPLOYEE BENEFITS - Amounts Rec
EMPLOYEE BENEFITS - Amounts Recognized in Consolidated income Statement (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of defined benefit plans [line items] | |||
Current service cost | € 141 | € (10) | € 80 |
Interest (income)/expense | 1 | 364 | 74 |
Post-employment benefit expense, defined benefit plans | 142 | 354 | 154 |
Italian employee severance indemnity (TFR) | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 0 | 31 | 8 |
Interest (income)/expense | 0 | 360 | 74 |
Post-employment benefit expense, defined benefit plans | 0 | 391 | 82 |
Pension plans | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 141 | (41) | 72 |
Interest (income)/expense | 1 | 4 | 0 |
Post-employment benefit expense, defined benefit plans | € 142 | € (37) | € 72 |
EMPLOYEE BENEFITS - Sensitivity
EMPLOYEE BENEFITS - Sensitivity of Defined Benefit Obligation (Details) - Actuarial assumption of discount rates - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Changes in assumption of 1% discount rate | € (1,771) | € (1,909) |
Changes in assumption of -1% discount rate | € 2,036 | € 2,201 |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit expense, defined contribution plans | € 3,149 | € 9,719 | € 2,990 |
Payments from plan, net defined benefit liability (asset) | 2,128 | 1,509 | |
Employee benefits | 84,159 | 91,024 | |
Interest expense | 30,945 | 21,307 | € 23,702 |
Italian employee severance indemnity (TFR) | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Payments from plan, net defined benefit liability (asset) | € 1,964 | € 1,337 | |
Actuarial assumption of discount rates | 1.50% | 1.30% | 1.60% |
Average duration of benefit obligation | 9 years | ||
Pension plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Payments from plan, net defined benefit liability (asset) | € 164 | € 172 | |
Actuarial assumption of discount rates | 0.70% | 1.30% | 1.60% |
Average duration of benefit obligation | 13 years | ||
Long-term bonus benefit provision | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefits | € 58,090 | € 64,432 | |
Jubilee benefits provision | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefits | € 2,745 | 1,905 | |
Years of service achieved | 30 years | ||
Provision for miscellaneous expenses | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefits | € 79 | 76 | |
Other provisions for employees | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefits | € 60,914 | € 66,413 |
PROVISIONS - Changes in provisi
PROVISIONS - Changes in provisions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of other provisions [line items] | |||
Provisions, beginning balance | € 215,227 | ||
Additional provisions | 31,714 | ||
Use and other changes | (46,919) | ||
Translation differences and other | (2,630) | ||
Provisions, ending balance | 197,392 | € 215,227 | |
Warranty and recall campaigns provision | |||
Disclosure of other provisions [line items] | |||
Provisions, beginning balance | 122,411 | ||
Additional provisions | 16,705 | ||
Use and other changes | (15,328) | ||
Translation differences and other | (652) | ||
Provisions, ending balance | 123,136 | 122,411 | |
Legal proceedings and disputes | |||
Disclosure of other provisions [line items] | |||
Provisions, beginning balance | 45,336 | ||
Additional provisions | 6,670 | ||
Use and other changes | (1,271) | ||
Translation differences and other | (360) | ||
Provisions, ending balance | 50,375 | 45,336 | |
Other risks | |||
Disclosure of other provisions [line items] | |||
Provisions, beginning balance | 47,480 | ||
Additional provisions | 8,339 | 21,662 | € 8,535 |
Use and other changes | (30,320) | ||
Translation differences and other | (1,618) | ||
Provisions, ending balance | € 23,881 | € 47,480 |
PROVISIONS - Narrative (Details
PROVISIONS - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of other provisions [line items] | ||
Additional provisions | € 31,714 | |
Other provisions | 197,392 | € 215,227 |
Takata Airbag Inflators | ||
Disclosure of other provisions [line items] | ||
Other provisions | 34,567 | |
Cost Of Sales | Takata Airbag Inflators | ||
Disclosure of other provisions [line items] | ||
Additional provisions | € 36,994 |
PROVISIONS - Other Risks Provis
PROVISIONS - Other Risks Provision (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of other provisions [line items] | |||
Additional provisions | € 31,714 | ||
Other risks | |||
Disclosure of other provisions [line items] | |||
Additional provisions | 8,339 | € 21,662 | € 8,535 |
Cost Of Sales | Other risks | |||
Disclosure of other provisions [line items] | |||
Additional provisions | 8,065 | 4,499 | 3,847 |
Other expenses, net | Other risks | |||
Disclosure of other provisions [line items] | |||
Additional provisions | 0 | 14,559 | 4,111 |
Selling, general and administrative costs | Other risks | |||
Disclosure of other provisions [line items] | |||
Additional provisions | 274 | 2,604 | 8 |
Income tax expense | Other risks | |||
Disclosure of other provisions [line items] | |||
Additional provisions | € 0 | € 0 | € 569 |
DEBT - Schedule of Borrowings (
DEBT - Schedule of Borrowings (Details) € in Thousands | 12 Months Ended |
Dec. 31, 2017EUR (€) | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | € 1,848,041 |
Proceeds from borrowings | 971,570 |
Repayments of borrowings | (935,432) |
Interest accrued and other | 2,173 |
Translation differences | (80,171) |
Total debt, ending balance | 1,806,181 |
Borrowings from banks | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 836,886 |
Proceeds from borrowings | 10,074 |
Repayments of borrowings | (800,943) |
Interest accrued and other | 264 |
Translation differences | (8,222) |
Total debt, ending balance | 38,059 |
Bonds | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 497,614 |
Proceeds from borrowings | 694,172 |
Repayments of borrowings | 0 |
Interest accrued and other | 1,731 |
Translation differences | 0 |
Total debt, ending balance | 1,193,517 |
Securitizations | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 485,670 |
Proceeds from borrowings | 232,520 |
Repayments of borrowings | (91,405) |
Interest accrued and other | 178 |
Translation differences | (70,687) |
Total debt, ending balance | 556,276 |
Other debt | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 27,871 |
Proceeds from borrowings | 34,804 |
Repayments of borrowings | (43,084) |
Interest accrued and other | 0 |
Translation differences | (1,262) |
Total debt, ending balance | € 18,329 |
DEBT - Borrowings by Nature and
DEBT - Borrowings by Nature and Maturity (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [line items] | ||
Total debt | € 1,806,181 | € 1,848,041 |
Borrowings from banks | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 38,059 | 836,886 |
Bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 1,193,517 | 497,614 |
Securitizations | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 556,276 | 485,670 |
Other debt | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 18,329 | 27,871 |
Due within one year | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 306,031 | 399,876 |
Due within one year | Borrowings from banks | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 32,811 | 227,408 |
Due within one year | Bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 0 | 0 |
Due within one year | Securitizations | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 254,891 | 144,597 |
Due within one year | Other debt | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 18,329 | 27,871 |
Due between one and five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 1,001,256 | 950,551 |
Due between one and five years | Borrowings from banks | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 5,248 | 609,478 |
Due between one and five years | Bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 694,623 | 0 |
Due between one and five years | Securitizations | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 301,385 | 341,073 |
Due between one and five years | Other debt | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 0 | 0 |
Due beyond five years | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 498,894 | 497,614 |
Due beyond five years | Borrowings from banks | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 0 | 0 |
Due beyond five years | Bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 498,894 | 497,614 |
Due beyond five years | Securitizations | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | 0 | 0 |
Due beyond five years | Other debt | ||
Disclosure of detailed information about borrowings [line items] | ||
Total debt | € 0 | € 0 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Nov. 16, 2017EUR (€) | Dec. 31, 2016EUR (€) | Mar. 16, 2016EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 20, 2017EUR (€) | Dec. 15, 2017EUR (€) | Sep. 21, 2017 | Jul. 14, 2017EUR (€) | Apr. 21, 2017EUR (€) | Dec. 28, 2016EUR (€) | Dec. 16, 2016EUR (€) | Oct. 20, 2016EUR (€) | Jan. 19, 2016EUR (€) | Nov. 30, 2015EUR (€) |
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Debt | € 1,848,041,000 | € 1,848,041,000 | € 1,848,041,000 | € 1,806,181,000 | € 1,806,181,000 | € 1,848,041,000 | € 1,806,181,000 | € 1,806,181,000 | ||||||||||||||
Proceeds from bonds | 694,172,000 | 490,729,000 | € 0 | |||||||||||||||||||
Borrowings from banks | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Debt | 836,886,000 | 836,886,000 | 836,886,000 | 38,059,000 | 38,059,000 | 836,886,000 | 38,059,000 | 38,059,000 | ||||||||||||||
Term Loan | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Principal amount of borrowings | € 1,500,000,000 | |||||||||||||||||||||
U.S Dollar Denominated Credit Facility Entered in on November 17, 2015 | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Other borrowings from banks | 23,745,000 | 23,745,000 | 23,745,000 | 29,189,000 | 29,189,000 | 23,745,000 | 29,189,000 | 29,189,000 | $ 35,000,000 | |||||||||||||
Capacity under borrowing facility | $ | $ 50,000,000 | |||||||||||||||||||||
Bridge Loan | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Principal amount of borrowings | 500,000,000 | |||||||||||||||||||||
The Facility | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Principal amount of borrowings | 2,500,000,000 | |||||||||||||||||||||
Revolving Credit Facility Entered in on Nov 30, 2015 | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Principal amount of borrowings | € 500,000,000 | |||||||||||||||||||||
Various Short and Medium Term Credit Facilities | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Other borrowings from banks | 12,707,000 | 12,707,000 | 12,707,000 | 8,870,000 | 8,870,000 | 12,707,000 | 8,870,000 | 8,870,000 | ||||||||||||||
1.5% Coupon Notes Due March 2023 | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Principal amount of borrowings | € 500,000,000 | |||||||||||||||||||||
Borrowings, interest rate (percent) | 1.50% | |||||||||||||||||||||
Borrowings, issue price (percent) | 98.977% | |||||||||||||||||||||
Proceeds from bonds | € 490,729,000 | |||||||||||||||||||||
Accrued interest | 5,938,000 | 5,938,000 | 5,938,000 | 5,938,000 | ||||||||||||||||||
2.25% Coupon Notes Due January 2021 | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Principal amount of borrowings | € 700,000,000 | |||||||||||||||||||||
Borrowings, interest rate (percent) | 0.25% | |||||||||||||||||||||
Borrowings, issue price (percent) | 99.557% | |||||||||||||||||||||
Proceeds from bonds | € 694,172,000 | |||||||||||||||||||||
Accrued interest | 221,000 | 221,000 | 221,000 | 221,000 | ||||||||||||||||||
Securitizations | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Debt | 485,670,000 | 485,670,000 | 485,670,000 | 556,276,000 | € 556,276,000 | 485,670,000 | 556,276,000 | 556,276,000 | ||||||||||||||
FFS Inc. | Revolving Securitization Program | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Capacity under borrowing facility | € 135,000,000 | € 350,000,000 | € 325,000,000 | € 225,000,000 | € 120,000,000 | € 275,000,000 | € 200,000,000 | € 250,000,000 | ||||||||||||||
Proceeds sale of financial receivables | 64,000,000 | 175,000,000 | 242,000,000 | € 120,000,000 | € 222,000,000 | € 325,000,000 | ||||||||||||||||
EURIBOR | Term Loan | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Term loans | 800,383,000 | 800,383,000 | 800,383,000 | 800,383,000 | ||||||||||||||||||
EURIBOR | Revolving Credit Facility Entered in on Nov 30, 2015 | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings maturity | 5 years | |||||||||||||||||||||
EURIBOR | Bottom of range | Term Loan | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, adjustment to interest rate basis (percent) | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | |||||||||||||||||
EURIBOR | Bottom of range | Revolving Credit Facility Entered in on Nov 30, 2015 | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, adjustment to interest rate basis (percent) | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% | |||||||||||||||||
EURIBOR | Top of range | Term Loan | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, adjustment to interest rate basis (percent) | 1.05% | 1.05% | 1.05% | 1.05% | 1.05% | |||||||||||||||||
EURIBOR | Top of range | Revolving Credit Facility Entered in on Nov 30, 2015 | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, adjustment to interest rate basis (percent) | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | |||||||||||||||||
LIBOR | FFS Inc. | Revolving Securitization Program | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, adjustment to interest rate basis (percent) | 0.65% | 6500.00% | 1.20% | |||||||||||||||||||
LIBOR | Bottom of range | Various Short and Medium Term Credit Facilities | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, adjustment to interest rate basis (percent) | 0.65% | 0.65% | 0.65% | 0.65% | 0.65% | |||||||||||||||||
LIBOR | Top of range | Various Short and Medium Term Credit Facilities | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, adjustment to interest rate basis (percent) | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | |||||||||||||||||
Borrowings from banks | Revolving Credit Facility Entered in on Nov 30, 2015 | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Capacity under borrowing facility | 500,000,000 | 500,000,000 | 500,000,000 | € 500,000,000 | € 500,000,000 | 500,000,000 | € 500,000,000 | € 500,000,000 | ||||||||||||||
Cash Collected From Settlements of Receivables or Collateral | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Restricted cash received from settlement of receivables or pledged lines of credit | 19,411,000 | 19,411,000 | 19,411,000 | 28,230,000 | 28,230,000 | 19,411,000 | 28,230,000 | 28,230,000 | ||||||||||||||
Due beyond five years | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Debt | 497,614,000 | 497,614,000 | 497,614,000 | 498,894,000 | 498,894,000 | 497,614,000 | 498,894,000 | 498,894,000 | ||||||||||||||
Due beyond five years | Borrowings from banks | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Due beyond five years | 1.5% Coupon Notes Due March 2023 | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Other borrowings from banks | 498,894,000 | 498,894,000 | 498,894,000 | 498,894,000 | ||||||||||||||||||
Due beyond five years | Securitizations | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Due between one and five years | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Debt | 950,551,000 | 950,551,000 | 950,551,000 | 1,001,256,000 | 1,001,256,000 | 950,551,000 | 1,001,256,000 | 1,001,256,000 | ||||||||||||||
Due between one and five years | Borrowings from banks | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Debt | 609,478,000 | 609,478,000 | 609,478,000 | 5,248,000 | 5,248,000 | 609,478,000 | 5,248,000 | 5,248,000 | ||||||||||||||
Due between one and five years | 2.25% Coupon Notes Due January 2021 | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Other borrowings from banks | 694,623,000 | 694,623,000 | 694,623,000 | 694,623,000 | ||||||||||||||||||
Due between one and five years | Securitizations | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Debt | € 341,073,000 | € 341,073,000 | € 341,073,000 | € 301,385,000 | € 301,385,000 | € 341,073,000 | € 301,385,000 | € 301,385,000 |
OTHER LIABILITIES - Analysis of
OTHER LIABILITIES - Analysis of Other Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Other Liabilities [Line Items] | ||
Deferred income | € 274,186 | € 273,069 |
Advances and security deposits | 167,293 | 229,975 |
Accrued expenses | 77,024 | 61,403 |
Payables to personnel | 38,488 | 36,843 |
Social security payables | 20,553 | 18,559 |
Other | 42,806 | 36,426 |
Total other liabilities | 620,350 | 656,275 |
Maintenance program | ||
Disclosure of Other Liabilities [Line Items] | ||
Deferred income | € 173,646 | € 155,121 |
OTHER LIABILITIES - Analysis124
OTHER LIABILITIES - Analysis of Other Liabilities excluding Accrued Expenses and Deferred Income (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Other Liabilities [Line Items] | ||
Total other liabilities (excluding accrued expenses and deferred income) | € 269,140 | € 321,803 |
Due within one year | ||
Disclosure of Other Liabilities [Line Items] | ||
Total other liabilities (excluding accrued expenses and deferred income) | 264,380 | 309,864 |
Due between one and five years | ||
Disclosure of Other Liabilities [Line Items] | ||
Total other liabilities (excluding accrued expenses and deferred income) | 4,760 | 4,913 |
Due beyond five years | ||
Disclosure of Other Liabilities [Line Items] | ||
Total other liabilities (excluding accrued expenses and deferred income) | € 0 | € 7,026 |
TRADE PAYABLES (Details)
TRADE PAYABLES (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Amounts payable, related party transactions | € 607,505 | € 614,888 |
Trade payables | € 607,505 | € 614,888 |
FAIR VALUE MEASUREMENT - Fair V
FAIR VALUE MEASUREMENT - Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | € 4,141,104 | € 3,849,604 |
Recurring fair value measurement | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 665,097 | 480,139 |
Liabilities | 1,444 | 39,638 |
Recurring fair value measurement | Other financial liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | 1,444 | 39,638 |
Recurring fair value measurement | Cash and cash equivalents | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 647,706 | 457,784 |
Recurring fair value measurement | Investments and other financial assets - Liberty Media | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 5,705 | |
Recurring fair value measurement | Investments and other financial assets - Delta Topco option | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 11,967 | |
Recurring fair value measurement | Current financial assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 11,686 | 10,388 |
Recurring fair value measurement | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 653,411 | 457,784 |
Liabilities | 0 | 0 |
Recurring fair value measurement | Level 1 | Other financial liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | 0 | 0 |
Recurring fair value measurement | Level 1 | Cash and cash equivalents | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 647,706 | 457,784 |
Recurring fair value measurement | Level 1 | Investments and other financial assets - Liberty Media | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 5,705 | |
Recurring fair value measurement | Level 1 | Investments and other financial assets - Delta Topco option | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | |
Recurring fair value measurement | Level 1 | Current financial assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | 0 |
Recurring fair value measurement | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 11,686 | 22,355 |
Liabilities | 1,444 | 39,638 |
Recurring fair value measurement | Level 2 | Other financial liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | 1,444 | 39,638 |
Recurring fair value measurement | Level 2 | Cash and cash equivalents | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | 0 |
Recurring fair value measurement | Level 2 | Investments and other financial assets - Liberty Media | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | |
Recurring fair value measurement | Level 2 | Investments and other financial assets - Delta Topco option | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 11,967 | |
Recurring fair value measurement | Level 2 | Current financial assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 11,686 | 10,388 |
Recurring fair value measurement | Level 3 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Recurring fair value measurement | Level 3 | Other financial liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | 0 | 0 |
Recurring fair value measurement | Level 3 | Cash and cash equivalents | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | 0 |
Recurring fair value measurement | Level 3 | Investments and other financial assets - Liberty Media | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | |
Recurring fair value measurement | Level 3 | Investments and other financial assets - Delta Topco option | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | |
Recurring fair value measurement | Level 3 | Current financial assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | € 0 | € 0 |
FAIR VALUE MEASUREMENT - Carryi
FAIR VALUE MEASUREMENT - Carrying Amount and Fair Value for Categories of Financial Assets and Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Financial assets, at carrying amounts | € 732,947 | € 790,377 |
Investment | 732,947 | 790,377 |
Receivables from financing activities | ||
Disclosure of financial assets [line items] | ||
Financial assets, at carrying amounts | 732,947 | 790,377 |
Investment | 732,947 | 790,377 |
Client financing | ||
Disclosure of financial assets [line items] | ||
Financial assets, at carrying amounts | 704,014 | 758,679 |
Investment | 704,014 | 758,679 |
Dealer Financing | ||
Disclosure of financial assets [line items] | ||
Financial assets, at carrying amounts | 28,933 | 31,698 |
Investment | 28,933 | 31,698 |
Debt | ||
Disclosure of financial assets [line items] | ||
Financial liabilities, at carrying amount | 1,806,181 | 1,848,041 |
Financial liabilities, at fair value | € 1,819,337 | € 1,849,000 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) € in Thousands | Apr. 14, 2017sharesvesting_tranche | Nov. 07, 2016EUR (€) | Jan. 31, 2017 | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) |
Disclosure of transactions between related parties [line items] | ||||||
Total emoluments | € 17,879 | € 8,722 | € 3,252 | |||
Cash received as funding for FFS GmbH | 971,570 | |||||
Total emoluments | 16,015 | 12,290 | ||||
Compensation for benefit obligations and long-term bonus plans | 314 | 1,231 | ||||
Compensation payable to the former Chairman | 607,505 | 614,888 | ||||
Wages and salaries | 305,584 | 294,047 | 284,947 | |||
Compensation settled in treasury shares | 4,737 | |||||
Key management personnel of entity or parent | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Wages and salaries | 10,964 | 11,059 | ||||
Non-executive Directors | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Optional cash component of board retainer fee (percent) | 50.00% | |||||
Optional shares component of board retainer fee (percent) | 50.00% | |||||
Board retainer fee - shares only option (percent) | 100.00% | |||||
Compensation settled in treasury shares | 418 | 1,110 | ||||
FCA Bank | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Proceeds from Funding of Equity Method Investment | € 431,958 | |||||
FFS | FCA Bank | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Purchase price of FFS GmbH | 18,595 | |||||
Ferrari N.V. (Ferrari) | Directors | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Total emoluments | 17,767 | 8,617 | 243 | |||
Compensation for salary | 1,277 | |||||
Compensation settled in treasury shares | € 16,490 | |||||
Ferrari N.V. and Ferrari S.p.A. | Directors | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Total emoluments | 8,617 | 3,147 | ||||
Compensation for salary | 2,827 | 2,372 | ||||
Compensation for benefit obligations and long-term bonus plans | 290 | € 775 | ||||
Compensation costs for retirement of former key personnel | € 5,500 | |||||
PSUs | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Number of instruments granted in share-based payment arrangement (shares) | shares | 687,000 | |||||
Number of equal vesting tranches | vesting_tranche | 3 | |||||
PSUs | Chief Executive Officer | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Number of instruments granted in share-based payment arrangement (shares) | shares | 450,000 | |||||
Performance period | 5 years | |||||
Number of equal vesting tranches | vesting_tranche | 3 |
RELATED PARTY TRANSACTIONS - Ne
RELATED PARTY TRANSACTIONS - Net Revenues, Emoluments, Assets and Liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [line items] | |||
Net revenues | € 3,416,890 | € 3,105,084 | € 2,854,369 |
Costs | 1,986,792 | 1,899,433 | 1,848,467 |
Net financial expenses/(income) | 29,260 | 27,729 | 10,151 |
Trade receivables | 239,410 | 243,977 | |
Compensation payable to the former Chairman | 607,505 | 614,888 | |
Other current assets | 51,566 | 55,041 | |
Other liabilities | 649,510 | 697,870 | |
Receivables from financing activities | 0 | 0 | |
Current financial assets | 0 | 861 | |
Debt | 0 | 0 | |
Total emoluments | 17,879 | 8,722 | 3,252 |
Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 326,475 | 250,948 | 195,992 |
Costs | 107,415 | 92,111 | 111,749 |
Net financial expenses/(income) | (1,191) | (471) | (11,534) |
Trade receivables | 75,861 | 76,499 | |
Compensation payable to the former Chairman | 25,119 | 29,449 | |
Other current assets | 2,097 | 1,439 | |
Other liabilities | 37,523 | 32,395 | |
Other related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 2,159 | 2,071 | 1,209 |
Costs | 13,666 | 13,567 | 13,085 |
Net financial expenses/(income) | 0 | 0 | 0 |
Trade receivables | 271 | 570 | |
Compensation payable to the former Chairman | 2,292 | 2,424 | |
Other current assets | 0 | 0 | |
Other liabilities | 0 | 4 | |
Statutory Auditors | |||
Disclosure of transactions between related parties [line items] | |||
Total emoluments | 112 | 105 | 105 |
Maserati | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 315,407 | 241,478 | 184,444 |
Costs | 4,698 | 1,933 | 2,250 |
Net financial expenses/(income) | 0 | 0 | 67 |
Trade receivables | 71,560 | 73,532 | |
Compensation payable to the former Chairman | 3,028 | 4,462 | |
Other current assets | 0 | 0 | |
Other liabilities | 37,496 | 32,379 | |
FCA US LLC | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 6 | 0 | 1,253 |
Costs | 44,882 | 37,612 | 23,562 |
Net financial expenses/(income) | 0 | 0 | 0 |
Trade receivables | 129 | 166 | |
Compensation payable to the former Chairman | 6,848 | 12,529 | |
Other current assets | 0 | 0 | |
Other liabilities | 0 | 0 | |
Magneti Marelli | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 1,866 | 1,735 | 1,397 |
Costs | 36,670 | 29,663 | 29,746 |
Net financial expenses/(income) | 0 | 0 | 0 |
Trade receivables | 899 | 1,739 | |
Compensation payable to the former Chairman | 8,103 | 6,702 | |
Other current assets | 0 | 0 | |
Other liabilities | 0 | 0 | |
Other FCA Group Companies | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 6,754 | 5,472 | 7,412 |
Costs | 7,007 | 9,163 | 42,768 |
Net financial expenses/(income) | (1,191) | (471) | (11,601) |
Trade receivables | 2,657 | 257 | |
Compensation payable to the former Chairman | 4,646 | 3,291 | |
Other current assets | 2,097 | 1,439 | |
Other liabilities | 27 | 12 | |
FCA Group Companies | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 324,033 | 248,685 | 194,506 |
Costs | 93,257 | 78,371 | 98,326 |
Net financial expenses/(income) | (1,191) | (471) | (11,534) |
Trade receivables | 75,245 | 75,694 | |
Compensation payable to the former Chairman | 22,625 | 26,984 | |
Other current assets | 2,097 | 1,439 | |
Other liabilities | 37,523 | 32,391 | |
Exor Group Companies (Excluding FCA Group) | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 283 | 192 | 277 |
Costs | 492 | 173 | 338 |
Net financial expenses/(income) | 0 | 0 | 0 |
Trade receivables | 345 | 235 | |
Compensation payable to the former Chairman | 202 | 41 | |
Other current assets | 0 | 0 | |
Other liabilities | 0 | 0 | |
COXA S.p.A. | Other related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 48 | 121 | 174 |
Costs | 6,141 | 7,096 | 7,561 |
Net financial expenses/(income) | 0 | 0 | 0 |
Trade receivables | 3 | 16 | |
Compensation payable to the former Chairman | 1,142 | 1,194 | |
Other current assets | 0 | 0 | |
Other liabilities | 0 | 0 | |
HPE S.r.l. | Other related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 0 | 0 | 11 |
Costs | 7,525 | 6,447 | 5,518 |
Net financial expenses/(income) | 0 | 0 | 0 |
Trade receivables | 0 | 0 | |
Compensation payable to the former Chairman | 1,150 | 1,162 | |
Other current assets | 0 | 0 | |
Other liabilities | 0 | 0 | |
Other Related Parties | Other related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 2,111 | 1,950 | 1,024 |
Costs | 0 | 24 | 6 |
Net financial expenses/(income) | 0 | 0 | 0 |
Trade receivables | 268 | 554 | |
Compensation payable to the former Chairman | 0 | 68 | |
Other current assets | 0 | 0 | |
Other liabilities | 0 | 4 | |
FCA Global Finance | |||
Disclosure of transactions between related parties [line items] | |||
Receivables from financing activities | 0 | ||
Current financial assets | 0 | 861 | |
Debt | 0 | 0 | |
The Group | |||
Disclosure of transactions between related parties [line items] | |||
Receivables from financing activities | 732,947 | 790,377 | |
Current financial assets | 15,683 | 16,276 | |
Debt | 1,806,181 | 1,848,041 | |
Ferrari N.V. (Ferrari) | Directors | |||
Disclosure of transactions between related parties [line items] | |||
Total emoluments | 17,767 | 8,617 | 243 |
Ferrari S.p.A. | Directors | |||
Disclosure of transactions between related parties [line items] | |||
Total emoluments | € 0 | € 0 | € 2,904 |
COMMITMENTS - Arrangements with
COMMITMENTS - Arrangements with sponsors (Details) € in Thousands | Dec. 31, 2017EUR (€) |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | € 249,370 |
Due within one year | |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | 137,250 |
Due between one and three years | |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | 101,988 |
Due between three and five years | |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | 5,760 |
Due beyond five years | |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | € 4,372 |
COMMITMENTS - Operating Leases
COMMITMENTS - Operating Leases (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of maturity analysis of operating lease payments [line items] | |||
Future minimum lease payments under operating lease agreements | € 2,152 | ||
Lease expense | 16,964 | € 14,820 | € 19,612 |
Due within one year | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Future minimum lease payments under operating lease agreements | 694 | ||
Due between one and three years | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Future minimum lease payments under operating lease agreements | 1,353 | ||
Due between three and five years | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Future minimum lease payments under operating lease agreements | 105 | ||
Due beyond five years | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Future minimum lease payments under operating lease agreements | € 0 |
QUALITATIVE AND QUANTITATIVE132
QUALITATIVE AND QUANTITATIVE INFORMATION ON FINANCIAL RISKS (Details) - EUR (€) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 30, 2015 | |
Disclosure of credit risk exposure [line items] | ||||
Receivables from financing activities | € 732,947,000 | € 790,377,000 | ||
Allowance for doubtful accounts | 21,993,000 | 19,174,000 | ||
Trade receivables | 239,410,000 | 243,977,000 | ||
Exchange gain (loss) on translating foreign operations | € (15,346,000) | 4,118,000 | € 13,344,000 | |
Percentage of debt bearing floating rates (percent) | 32.00% | |||
Overdue | ||||
Disclosure of credit risk exposure [line items] | ||||
Receivables from financing activities | € 11,943,000 | 41,594,000 | ||
Trade receivables | 32,336,000 | 18,567,000 | ||
Loans to consumers [member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Allowance for doubtful accounts | 6,948,000 | 11,556,000 | 18,671,000 | |
Trade receivables | ||||
Disclosure of credit risk exposure [line items] | ||||
Allowance for doubtful accounts | 21,993,000 | 19,174,000 | 18,371,000 | |
Financial Assets Excluding Assets Measured At Fair Value | ||||
Disclosure of credit risk exposure [line items] | ||||
Exchange gain (loss) on translating foreign operations | (18,059,000) | 8,335,000 | 10,794,000 | |
Revolving Credit Facility Entered in on Nov 30, 2015 | ||||
Disclosure of credit risk exposure [line items] | ||||
Principal amount of borrowings | € 500,000,000 | |||
The Facility | ||||
Disclosure of credit risk exposure [line items] | ||||
Principal amount of borrowings | 2,500,000,000 | |||
Term Loan | ||||
Disclosure of credit risk exposure [line items] | ||||
Principal amount of borrowings | € 1,500,000,000 | |||
Borrowings from banks | Revolving Credit Facility Entered in on Nov 30, 2015 | ||||
Disclosure of credit risk exposure [line items] | ||||
Capacity under borrowing facility | € 500,000,000 | 500,000,000 | ||
Financial services companies | ||||
Disclosure of credit risk exposure [line items] | ||||
Exchange gain (loss) on translating foreign operations | 58,808,000 | € 20,908,000 | ||
Interest rate risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Reasonably possible change in risk variable, percent | (0.10%) | |||
Reasonably possible change in risk variable, impact on pre-tax earnings | € 225,000 | 367,000 | ||
Currency risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Reasonably possible change in risk variable, percent | 10.00% | |||
Reasonably possible change in risk variable, impact on fair value of derivative financial instruments | € 45,439,000 | € 128,753,000 | ||
Revenue | Currency risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure percent | 51.00% | 57.00% | ||
Euro Member Countries, Euro | Revenue | Currency risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure percent | 62.00% | 60.00% | ||
Bottom of range | Revenue | Currency risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Average risk exposure hedged, percent | 90.00% | |||
Top of range | Revenue | Currency risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Average risk exposure hedged, percent | 50.00% |
ENTITY-WIDE DISCLOSURES - Net R
ENTITY-WIDE DISCLOSURES - Net Revenues by Geographic Location (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Entity Location [Line Items] | |||
Total net revenues | € 3,416,890 | € 3,105,084 | € 2,854,369 |
Italy | |||
Entity Location [Line Items] | |||
Total net revenues | 563,921 | 387,184 | 238,532 |
Other EMEA | |||
Entity Location [Line Items] | |||
Total net revenues | 1,308,261 | 1,314,788 | 1,209,916 |
Americas | |||
Entity Location [Line Items] | |||
Total net revenues | 920,858 | 835,045 | 884,971 |
China, Hong Kong and Taiwan (on a combined basis) | |||
Entity Location [Line Items] | |||
Total net revenues | 282,550 | 272,223 | 257,249 |
Rest of APAC | |||
Entity Location [Line Items] | |||
Total net revenues | € 341,300 | € 295,844 | € 263,701 |
ENTITY-WIDE DISCLOSURES - Analy
ENTITY-WIDE DISCLOSURES - Analysis of Non-Current Assets other than Financial Instruments and Deferred Tax Assets by Geographic Location (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Entity Location [Line Items] | |||
Property, plant and equipment | € 710,260 | € 669,283 | € 626,130 |
Goodwill | 785,182 | 785,182 | |
Intangible assets | 440,456 | 354,394 | € 307,810 |
Italy | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 704,262 | 661,770 | |
Goodwill | 785,182 | 785,182 | |
Intangible assets | 439,369 | 353,116 | |
Rest of EMEA | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 2,368 | 2,430 | |
Goodwill | 0 | 0 | |
Intangible assets | 0 | 0 | |
Americas | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 2,760 | 3,877 | |
Goodwill | 0 | 0 | |
Intangible assets | 812 | 988 | |
China, Hong Kong and Taiwan (on a combined basis) | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 264 | 258 | |
Goodwill | 0 | 0 | |
Intangible assets | 0 | 0 | |
Rest of APAC | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 606 | 948 | |
Goodwill | 0 | 0 | |
Intangible assets | € 275 | € 290 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) | Feb. 23, 2018EUR (€)€ / shares | Feb. 20, 2018USD ($)shares | Feb. 19, 2018 | Feb. 09, 2018EUR (€) | Dec. 31, 2017shares | Dec. 31, 2016shares |
Major ordinary share transactions | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Authorized repurchase amount | € | € 100,000,000 | |||||
Number of shares repurchased (shares) | 190,600 | |||||
Consideration paid to repurchase shares | $ | $ 22,838,301 | |||||
Potential ordinary share transactions | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Dividends declared (in Euro per share) | € / shares | € 0.71 | |||||
Dividends declared, aggregate amount | € | € 134,000,000 | |||||
Common shares | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Number of shares issued (in shares) | 193,923,499 | |||||
Treasury shares | Common shares | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Number of shares issued (in shares) | 4,969,625 | 5,000,000 | ||||
Treasury shares | Common shares | Major ordinary share transactions | ||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||
Number of shares issued (in shares) | 5,160,225 | |||||
Percentage of issued capital (percent) | 2.06% |