DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Ferrari N.V. |
Entity Central Index Key | 0001648416 |
Document Annual Report | true |
Document Type | 20-F |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Common Stock, Shares Outstanding | 185,283,323 |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | |||
Net revenues | € 3,766,615 | € 3,420,321 | € 3,416,890 |
Cost of sales | 1,805,310 | 1,622,905 | 1,650,860 |
Selling, general and administrative costs | 343,179 | 327,341 | 329,065 |
Research and development costs | 699,211 | 643,038 | 657,119 |
Other expenses, net | 4,991 | 3,195 | 6,867 |
Result from investments | 3,522 | 2,665 | 2,437 |
EBIT | 917,446 | 826,507 | 775,416 |
Net financial expenses | 42,082 | 23,563 | 29,260 |
Profit before taxes | 875,364 | 802,944 | 746,156 |
Income tax expense | 176,656 | 16,317 | 208,760 |
Net profit | 698,708 | 786,627 | 537,396 |
Net profit attributable to: | |||
Owners of the parent | 695,818 | 784,678 | 535,393 |
Non-controlling interests | € 2,890 | € 1,949 | € 2,003 |
Basic earnings per common share (in € per share) | € 3.73 | € 4.16 | € 2.83 |
Diluted earnings per common share (in € per share) | € 3.71 | € 4.14 | € 2.82 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
Net profit | € 698,708 | € 786,627 | € 537,396 |
Items that will not be reclassified to the consolidated income statement in subsequent periods: | |||
(Losses)/Gains on remeasurement of defined benefit plans | (2,078) | 385 | (730) |
Related tax impact | 456 | (88) | 203 |
Total items that will not be reclassified to the consolidated income statement in subsequent periods | (1,622) | 297 | (527) |
Total items that will not be reclassified to the consolidated income statement in subsequent periods | |||
(Losses)/Gains on cash flow hedging instruments | (2,272) | (13,034) | 34,971 |
Exchange differences on translating foreign operations | 2,652 | 5,986 | (15,346) |
Related tax impact | 610 | 3,608 | (9,757) |
Total items that may be reclassified to the consolidated income statement in subsequent periods | 990 | (3,440) | 9,868 |
Total other comprehensive (loss)/income, net of tax | (632) | (3,143) | 9,341 |
Total comprehensive income | 698,076 | 783,484 | 546,737 |
Total comprehensive income attributable to: | |||
Owners of the parent | 695,075 | 781,585 | 545,071 |
Non-controlling interests | € 3,001 | € 1,899 | € 1,666 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Goodwill | € 785,182 | € 785,182 |
Intangible assets | 837,938 | 645,797 |
Property, plant and equipment | 1,069,652 | 850,550 |
Investments and other financial assets | 38,716 | 32,134 |
Deferred tax assets | 73,683 | 60,744 |
Total non-current assets | 2,805,171 | 2,374,407 |
Inventories | 420,051 | 391,064 |
Trade receivables | 231,439 | 211,399 |
Receivables from financing activities | 966,448 | 878,496 |
Current tax receivables | 21,078 | 128,234 |
Other current assets | 92,830 | 64,295 |
Current financial assets | 11,409 | 10,174 |
Cash and cash equivalents | 897,946 | 793,664 |
Total current assets | 2,641,201 | 2,477,326 |
Total assets | 5,446,372 | 4,851,733 |
Equity and liabilities | ||
Equity attributable to owners of the parent | 1,481,290 | 1,348,722 |
Non-controlling interests | 5,998 | 5,117 |
Total equity | 1,487,288 | 1,353,839 |
Employee benefits | 88,116 | 86,575 |
Provisions | 165,572 | 182,539 |
Deferred tax liabilities | 82,208 | 39,142 |
Debt | 2,089,737 | 1,927,167 |
Other liabilities | 800,015 | 589,743 |
Other financial liabilities | 14,791 | 11,342 |
Trade payables | 711,539 | 653,751 |
Current tax payables | 7,106 | 7,635 |
Total equity and liabilities | € 5,446,372 | € 4,851,733 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of cash flows [abstract] | |||
Cash and cash equivalents at beginning of the year | € 793,664 | € 647,706 | € 457,784 |
Cash flows from operating activities: | |||
Profit before taxes | 875,364 | 802,944 | 746,156 |
Amortization and depreciation | 351,946 | 288,748 | 260,606 |
Provision accruals | 14,253 | 15,573 | 13,473 |
Result from investments | (3,522) | (2,665) | (2,437) |
Net finance costs | 42,082 | 23,563 | 29,260 |
Other non-cash expenses, net | 38,563 | 33,012 | 43,453 |
Net gains on disposal of property, plant and equipment and intangible assets | 424 | (283) | (2,585) |
Change in inventories | (40,627) | (4,638) | (88,483) |
Change in trade receivables | (22,377) | 26,890 | (1,745) |
Change in trade payables | 53,940 | 40,317 | 29,333 |
Change in receivables from financing activities | (76,694) | (107,353) | (44,123) |
Change in other operating assets and liabilities | 145,547 | (83,013) | (72,803) |
Finance income received | 3,274 | 2,657 | 4,402 |
Finance costs paid | (42,600) | (13,966) | (36,222) |
Income tax paid | (33,480) | (87,745) | (215,486) |
Total | 1,306,093 | 934,041 | 662,799 |
Cash flows used in investing activities: | |||
Investments in property, plant and equipment | (352,154) | (300,794) | (188,904) |
Investments in intangible assets | (353,458) | (337,542) | (202,506) |
Proceeds from the sale of property, plant and equipment and intangible assets | 4,539 | 1,392 | 3,663 |
Proceeds from exercising the Delta Topco option | 0 | 0 | 8,307 |
Total | (701,073) | (636,944) | (379,440) |
Cash flows used in financing activities: | |||
Proceeds from the issuance of bonds and notes | 298,316 | 0 | 694,172 |
Repayment of bonds and notes | (315,395) | 0 | 0 |
Net change in bank borrowings | (3,516) | (3,584) | (790,869) |
Proceeds from securitizations, net of repayments | 92,173 | 94,709 | 141,115 |
Net change in lease liabilities | (3,896) | 0 | 0 |
Net change in other debt | 12,322 | (7,988) | (8,280) |
Dividends paid to owners of the parent | (192,664) | (133,095) | 0 |
Cash distribution of reserves | 0 | 0 | (119,985) |
Share repurchases | (386,749) | (100,093) | 0 |
Dividends paid to non-controlling interest | (2,120) | (2,040) | (1,218) |
Total | (501,529) | (152,091) | (85,065) |
Translation exchange differences | 791 | 952 | (8,372) |
Total change in cash and cash equivalents | 104,282 | 145,958 | 189,922 |
Cash and cash equivalents at end of the year | € 897,946 | € 793,664 | € 647,706 |
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, 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 (loss)/income | 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 | 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 | |
Net profit | 786,627 | 784,678 | 784,678 | 1,949 | |||||
Other comprehensive (loss)/income | (3,143) | (9,426) | 6,036 | 297 | (3,093) | (50) | |||
Dividends to owners of the parent | (133,939) | (133,939) | (133,939) | ||||||
Dividends to non-controlling interests | (2,040) | (2,040) | |||||||
Share repurchases | (100,093) | (100,093) | (100,093) | ||||||
Share-based compensation | 22,491 | 22,491 | 22,491 | ||||||
Equity at end of period at Dec. 31, 2018 | 1,353,839 | 2,504 | 1,319,478 | (2,992) | 37,850 | (8,118) | 1,348,722 | 5,117 | |
Net profit | 698,708 | 695,818 | 695,818 | 2,890 | |||||
Other comprehensive (loss)/income | (632) | (1,662) | 2,541 | (1,622) | (743) | 111 | |||
Dividends to owners of the parent | (193,238) | (193,238) | (193,238) | ||||||
Dividends to non-controlling interests | (2,120) | (2,120) | |||||||
Share repurchases | (386,749) | (386,749) | (386,749) | ||||||
Share-based compensation | 17,480 | 17,480 | 17,480 | ||||||
Special voting shares issuance | [1] | 0 | 69 | (69) | 0 | ||||
Equity at end of period at Dec. 31, 2019 | € 1,487,288 | € 2,573 | € 1,452,720 | € (4,654) | € 40,391 | € (9,740) | € 1,481,290 | € 5,998 | |
[1] | See Note 20 “Equity” for additional details. |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
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 166 authorized dealers operating 187 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 20 Ferrari-owned stores and 24 franchised stores (including 15 Ferrari Store Junior), as well as on the Group’s website. To facilitate the sale of new and pre-owned cars, the Group provides various forms of financing to clients and dealers, including through cooperation and other agreements. 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 to support the technological advancement of Ferrari range models. 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 18, 2020. The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”), as well as IFRS as adopted by the European Union. There is no effect on these consolidated financial statements resulting from differences between IFRS as issued by the IASB and IFRS as adopted by the European Union. The designation IFRS also includes International Accounting Standards (“IAS”) as well as all the interpretations of the International Financial Reporting Interpretations Committee (“IFRIC” and “SIC”). The consolidated financial statements are prepared under a going concern basis and applying the historical cost method, modified as required for the measurement of certain financial instruments. 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. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
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 the accompanying notes (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 one of the primary measures 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 and financial services activities. Receivables from financing activities are included in current assets as the investments will be realized in their normal operating cycle. The funding for financial services activities is primarily obtained through securitization programs and funding from certain of the Group’s operating companies. 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 various components of debt is provided in Note 24. The consolidated statement of cash flows is presented using the indirect method. New standards and amendments effective from January 1, 2019 The following new standards and amendments that are applicable from January 1, 2019 were adopted by the Group for the preparation of these Consolidated Financial Statements. IFRS 16 - Leases Transition impact The Group applied the simplified transition approach and has therefore recognized the impacts of adoption at January 1, 2019 without restating comparative figures for the period prior to adoption. The Group elected to use the exemptions permitted on transition for short term leases (contracts in which the lease terms ends within 12 months of the date of initial application) and lease contracts for which the underlying asset is of low value. Upon adoption, the Group recognized right-of-use assets and corresponding lease liabilities in relation to leases which had previously been classified as operating lease under IAS 17, measured at the present value of the remaining lease payments over the lease term that have not been paid at the date of adoption, discounted using the Group’s incremental borrowing rate as of January 1, 2019, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. At January 1, 2019 this rate ranged from 1 percent to 5 percent based primarily on the country of the lessee and the remaining lease term of the underlying leased assets. The lease term includes both the non-cancellable periods for which the Group has the right to use the underlying assets and also any renewal periods if the Group is reasonably certain to exercise the related renewal option. As of January 1, 2019, after considering the exemptions mentioned above, the Group had non-cancellable operating lease commitments of approximately €74,930 thousand . Of these commitments, the Group recognized right-of-use assets and related lease liabilities of €63,535 thousand . The main contracts within the scope of IFRS 16 for which the Group is lessee primarily relate to Ferrari stores (included within other assets) and industrial buildings. At December 31, At January 1, (€ thousand) Industrial buildings 15,834 17,226 Plant, machinery and equipment 7,612 10,011 Other assets 34,319 36,298 Right-of-use assets 57,765 63,535 At January 1, (€ thousand) Non-cancellable operating lease commitments 74,930 Lease contracts for which the underlying asset is of low value (1,008 ) Lease contracts for which the lease terms ends within 12 months (2,420 ) Discount of remaining lease payments (7,967 ) Lease liabilities 63,535 Upon adoption the Group did not recognize any deferred tax assets or liabilities in respect of temporary differences arising on initial recognition of right-of-use assets and lease liabilities as the initial recognition does not affect accounting profit or taxable profit. For the year ended December 31, 2019 the impact of adopting the new standard resulted in the recognition of €17,067 thousand of depreciation of right-of-use assets and €1,172 thousand of financial expenses. Lease expenses that would have been recognized in the income statement under the previous lease standard, IAS 17, would have been €17,380 thousand . There were no impacts arising on the application of IFRS 16 from the Group’s activities as lessor. See “Leases” below for a description of the Group’s accounting policy with respect to leases. IFRIC Interpretation 23 - Uncertainty over Income Tax Treatments The Group adopted IFRIC Interpretation 23 - Uncertainty over Income Tax Treatments . The interpretation provides provides specific guidance to recognise and measure the accounting impact of tax uncertainties which IAS 12 did not address. Particularly, IFRIC 23 specifies how to determine the unit of account and the recognition and measurement guidance to be applied to that unit, as well as when to reconsider the accounting for a tax uncertainty. The interpretation is effective on or after January 1, 2019. The Group has reviewed its previously designed model to account for tax uncertainties and assessed that it is consistent with the more specific IFRIC 23 requirements. Amendments to IFRS 9 - Financial Instruments The Group adopted Amendments to IFRS 9 - Financial Instruments . These amendments 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 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. There was no effect from the adoption of these amendments. Amendments to IAS 28 - Long-term Interests in Associates and Joint Ventures The Group adopted Amendments to IAS 28 - Long-term Interests in Associates and Joint Ventures . These amendments 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 amendments are effective on or after January 1, 2019. There was no effect from the adoption of these amendments. Amendments to IAS 19 - Employee Benefits The Group adopted Amendments to IAS 19 - Employee Benefits . These amendments require that when there is a change to a defined benefit plan (an amendment, curtailment or settlement) the company use the adopted 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. The amendments are effective on or after January 1, 2019. There was no effect from the adoption of these amendments. Annual Improvements to IFRSs 2015-2017 Cycle The Group adopted Annual Improvements to IFRSs 2015-2017 Cycle . The improvements have amended four standards with effective date of January 1, 2019: i) IFRS 3 - Business Combinations , in relation to obtaining control of a business which was previously accounted for as an interest in a joint operation; ii) IFRS 11 - Joint Arrangements , in relation to obtaining joint control of a business which was previously accounted for as a joint operation; iii) IAS 12 - Income Taxes , clarifying the treatment of taxes in relation to dividend payments; and iv) 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. 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 2020 or subsequent years are listed below: 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 October 2018 the IASB issued narrow scope amendments to IFRS 3 - Business Combinations to improve the definition of a business. The amendments aim to help companies determine whether an acquisition made is of a business or a group of assets. The amended definition emphasizes that the output of a business is to provide goods and services to customers, whereas the previous definition focused on returns in the form of dividends, lower costs or other economic benefits to investors and others. In addition to amending the definition of a business, supplementary guidance is provided. These amendments are effective on or after January 1, 2020. The Group does not expect any material impact from the adoption of these amendments. In October 2018 the IASB issued amendments to IAS 1 - Presentation of Financial Statements and IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors to clarify the definition of ‘material’, as well as how materiality should be applied by including in the definition guidance that is included elsewhere in IFRS standards. In addition, the explanations accompanying the definition have been improved and the amendments ensure that the definition of material is consistent across all IFRS standards. These amendments are effective on or after January 1, 2020. The Group does not expect any material impact from the adoption of these amendments. In September 2019 the IASB issued amendments to IFRS 9 - Financial Instruments, IAS 39 - Financial Instruments: Recognition and Measurement and IFRS 7 - Financial Instruments: Disclosures , collectively the “Interest Rate Benchmark Reform”. These amendments modify certain hedge accounting requirements in order to provide relief from potential effects of the uncertainty caused by the interbank offered rates (IBOR) reform and require companies to provide additional information to investors about their hedging relationships that are directly affected by these uncertainties. These amendments are effective on or after January 1, 2020. The Group does not expect any material impact from the adoption of these amendments. In January 2020 the IASB issued amendments to IAS 1 - Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current to clarify how to classify debt and other liabilities as current or non-current, and in particular how to classify liabilities with an uncertain settlement date and liabilities that may be settled by converting to equity. These amendments are effective on or after January 1, 2022. The Group does not expect any material impact from the adoption of these amendments. Review of the Conceptual Framework for Financial Reporting In March 2018 the IASB revised the Conceptual Framework for Financial Reporting, effective immediately for the IASB and the IFRS Interpretations Committee when setting future standards, and effective for annual reporting periods on or after January 1, 2020 for companies that use the Conceptual Framework to develop accounting policies when no IFRS Standard applies to a particular transaction, with early application permitted. Key changes include (i) increasing the prominence of stewardship in the objective of financial reporting; (ii) reinstating prudence as a component of neutrality, defined as the exercise of caution when making judgements under conditions of uncertainty; (iii) defining a reporting entity; (iv) revising the definitions of an asset and a liability; (v) removing the probability threshold for recognition, and adding guidance on derecognition; (vi) adding guidance on the information provided by different measurement bases, and explaining factors to consider when selecting a measurement basis; and (vii) stating that profit or loss is the primary performance indicator and income and expenses in other comprehensive income should be recycled where the relevance or faithful representation of the financial statements would be enhanced. The Group does not expect a material impact from the adoption of the revised Conceptual Framework . 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: 2019 2018 2017 Average At December 31, Average At December 31, Average At December 31, U.S. Dollar 1.1195 1.1234 1.1810 1.1450 1.1297 1.1993 Pound Sterling 0.8778 0.8508 0.8847 0.8945 0.8767 0.8872 Swiss Franc 1.1124 1.0854 1.1550 1.1269 1.1117 1.1702 Japanese Yen 122.0058 121.9400 130.3959 125.8500 126.7112 135.0100 Chinese Yuan 7.7355 7.8205 7.8081 7.8751 7.6290 7.8044 Australian Dollar 1.6109 1.5995 1.5797 1.6220 1.4732 1.5346 Canadian Dollar 1.4855 1.4598 1.5294 1.5605 1.4647 1.5039 Singapore Dollar 1.5273 1.5111 1.5926 1.5591 1.5588 1.6024 Hong Kong Dollar 8.7715 8.7473 9.2559 8.9675 8.8045 9.3720 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 or 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’. Leases With the adoption of IFRS 16, the Group recognizes a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use. Each lease payment is allocated between the principal liability and finance costs. Finance costs are charged to the income statement over the lease period using the effective interest rate method. The right-of-use asset is depreciated on a straight-line basis over the lease term. Right-of-use assets are measured at cost comprising the following: (i) the amount of the initial measurement of lease liability; (ii) any lease payments made at or before the commencement date less any lease incentives received; (iii) any initial direct costs and, if applicable, (iv) restoration costs. Payments associated with short-term leases and leases of low-value assets are recognized as an expense in the income statement on a straight-line basis. Lease liabilities are measured at the net present value of the following: (i) fixed lease payments, (ii) variable lease payments that are based on an index or a rate and, if applicable, (iii) amounts expected to be payable by the lessee under residual value guarantees, and (iv) the exercise price of a purchase option if the lessee is reasonably certain to exercise that option. Lease liabilities do not include any non-lease components that may be included in the related contracts. Lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group’s incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Some lease contracts contain variable payment terms that are linked to sales generated from Ferrari stores. Variable lease payments that depend on sales are recognized in the income statement in the period in which the condition that triggers those payments occurs. Extension and termination options are included in a number of leases related to Ferrari stores, warehouses and machinery and equipment of the Group. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). 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 Current financial assets include trade receivables, receivables from financing activities, derivative financial instruments, other current financial assets and cash and cash equivalents. Investments and other financial assets include investments accounted for using the equity method as well as other securities and non-current financial assets. Financial liabilities include debt (which primarily includes bonds, notes, asset-backed financing (securitizations) and borrowings from banks), trade payables and other financial liabilities, which mainly include derivative financial instruments. Measurement Financial assets, other than investments accounted for using the equity method, and financial liabilities are measured in accordance with IFRS 9. Except for investments accounted for using the equity method, the Group initially measures financial assets at fair value plus, in the case of financial assets not measured at fair value through profit or loss, transaction costs. Equity instruments held by the Group are recognized at fair value through profit or loss. When market prices are not directly available, the fair value is measured using appropriate valuation techniques (e.g. discounted cash flow analysis based on market information available at the balance sheet date). As permitted by IFRS 9, equity investments for which there is no quoted market price in an active market and there is insufficient financial information in order to determine fair value may be measured at cost as an estimate of fair value. Trade receivables and receivables from financing activities are originated in the ordinary course of business and held within a business model with the objective to hold the receivables in order to collect contractual cash flows that meet the ‘solely payments of principal and interest’ criterion under IFRS 9, therefore they are measured at amortized cost using the effective interest rate method. Receivables with maturities greater than one year are discounted to present value. Assessments are made regularly as to whether there is any objective evidence that a financial asset or group of financial assets may be impaired. Under IFRS 9, a forward-looking expected credit loss model must be applied when assessing impairment. In making impairment assessments, the Group applies the standard simplified approach to estimate the lifetime expected credit losses and considers its historical credit loss experience, adjusted for forward-looking factors specific to the nature of the Group’s receivables and economic environment. If any such evidence exists, an impairment loss is recognized within financial expenses. Financial liabilities, with the exception of derivative financial instruments, are measured at amortized cost u |
SCOPE OF CONSOLIDATION
SCOPE OF CONSOLIDATION | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 was as follows: At December 31, 2019 At December 31, 2018 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 Europe GmbH (1) Germany Service company 100 % — % 100 % — % G.S.A. S.A. Switzerland Service company 100 % — % 100 % — % Mugello Circuit S.p.A. Italy Racetrack management 100 % — % 100 % — % Ferrari Financial Services Inc. USA Financial services 100 % — % 100 % — % Indirectly held through other Group entities Ferrari Auto Securitization Transaction, LLC (2) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction - Lease, LLC (2) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction - Select, LLC (2) USA Financial services 100 % — % 100 % — % Ferrari Financial Services Titling Trust (2) USA Financial services 100 % — % 100 % — % 410, Park Display Inc. (3) USA Retail 100 % — % 100 % — % _____________________________ (1) Changed its name from Ferrari Central East Europe GmbH to Ferrari Central Europe GmbH, effective December 2, 2019. (2) Shareholding held by Ferrari Financial Services Inc. (3) Shareholding held by Ferrari North America Inc. Non-controlling interests The non-controlling interests at December 31, 2019 and 2018 and the net profit attributable to non-controlling interests for the years ended December 31, 2019 , 2018 and 2017 relate to Ferrari International Cars Trading (Shanghai) Co. L.t.d. (“FICTS”), in which the Group holds an 80 percent interest. At December 31, 2019 2018 (€ thousand) Equity attributable to non-controlling interests 5,998 5,117 For the years ended December 31, 2019 2018 2017 (€ thousand) Net profit attributable to non-controlling interests 2,890 1,949 2,003 The non-controlling interests in FICTS 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. The Group 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, 2019 amounted to €115,182 thousand ( €77,790 thousand at December 31, 2018 ). 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 related funding. Such cash amounted to €27,524 thousand at December 31, 2019 ( €26,497 thousand at December 31, 2018 ). 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 the 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 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. For the period covered by these Consolidated Financial Statements, the Group has not recognized any impairment charges for goodwill. 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 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 affected 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, 2019 | |
Analysis of income and expense [abstract] | |
NET REVENUES | NET REVENUES Net revenues are as follows: For the years ended December 31, 2019 2018 2017 (€ thousand) Cars and spare parts 2,925,721 2,535,245 2,455,955 Engines 198,308 284,546 373,313 Sponsorship, commercial and brand 538,238 505,701 494,082 Other 104,348 94,829 93,540 Total net revenues 3,766,615 3,420,321 3,416,890 Other net revenues primarily relate to financial services activities and management of the Mugello racetrack. |
COST OF SALES
COST OF SALES | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
COST OF SALES | COST OF SALES Cost of sales in 2019 , 2018 and 2017 amounted to €1,805,310 thousand , €1,622,905 thousand and €1,650,860 thousand , respectively, consisting mainly of the cost of materials, components and labor expenses related to the manufacturing and distribution of cars and spare parts, engines sold to Maserati and engines rented to other Formula 1 racing teams. The remaining costs principally includes depreciation, insurance and transportation costs. Cost of sales also includes warranty and product-related costs, which are estimated and recorded at the time of shipment. Interest and other financial expenses from financial services companies included within cost of sales in 2019 , 2018 and 2017 amounted to €45,083 thousand , €33,828 thousand and €30,945 thousand , respectively. Cost of sales in 2018 included €1,451 thousand related to a partial release of the provision for charges to Takata airbag inflator recalls. See Note 23 “Provisions” for additional details. |
SELLING, GENERAL AND ADMINISTRA
SELLING, GENERAL AND ADMINISTRATIVE COSTS | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
SELLING, GENERAL AND ADMINISTRATIVE COSTS | SELLING, GENERAL AND ADMINISTRATIVE COSTS Selling costs in 2019 , 2018 and 2017 amounted to €173,512 thousand , €167,819 thousand and €173,484 thousand , respectively, consisting mainly of costs for sales personnel, marketing and events, 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. General and administrative costs in 2019 , 2018 and 2017 amounted to €169,667 thousand , €159,522 thousand and €155,581 thousand , respectively, consisting mainly of administration and other general expenses that are not directly attributable to manufacturing, sales or research and development activities. |
RESEARCH AND DEVELOPMENT COSTS
RESEARCH AND DEVELOPMENT COSTS | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 (€ thousand) Research and development costs expensed during the year 559,582 527,847 556,617 Amortization of capitalized development costs 139,629 115,191 100,502 Total research and development costs 699,211 643,038 657,119 Research and development costs expensed during the period primarily relate to Formula 1 activities and research and development activities to support the innovation of our product range and components, and in particular, in relation to hybrid and electric technology. Research and development costs also include amortization of capitalized development costs. |
RESULT FROM INVESTMENTS
RESULT FROM INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
RESULT FROM INVESTMENTS | RESULT FROM INVESTMENTS Result from investments of €3,522 thousand , €2,665 thousand and €2,437 thousand in 2019 , 2018 and 2017 , respectively, related to the Group’s proportionate share of the net profit of Ferrari Financial Services GmbH ( “ FFS GmbH ” ) for the relevant year. |
NET FINANCIAL EXPENSES
NET FINANCIAL EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Financial income: (€ thousand) Interest income from bank deposits 1,690 1,445 1,153 Other interest income and financial income 4,116 677 5,284 Interest income and other financial income 5,806 2,122 6,437 Finance income from financial services activities 66,386 52,702 50,254 Total financial income 72,192 54,824 56,691 Total financial income relating to: Industrial activities (A) 5,806 2,122 6,437 Financial services activities (reported in net revenues) 66,386 52,702 50,254 Financial expenses: Capitalized borrowing costs 2,671 2,884 1,578 Other interest cost and financial expenses (2,427 ) (1,046 ) (3,775 ) Interest expenses and other financial expenses 244 1,838 (2,197 ) Interest expenses from banks (27,432 ) (21,486 ) (23,057 ) Interest and other finance costs on bonds and notes (20,703 ) (12,386 ) (9,231 ) Write-downs of financial receivables (4,739 ) (3,326 ) (3,530 ) Other financial expenses (13,949 ) (8,494 ) (12,008 ) Total financial expenses (66,579 ) (43,854 ) (50,023 ) Net expenses from derivative financial instruments and foreign currency exchange rate differences (26,392 ) (15,659 ) (16,619 ) Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences (92,971 ) (59,513 ) (66,642 ) Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences relating to: Industrial activities (B) (47,888 ) (25,685 ) (35,697 ) Financial services activities (reported in cost of sales) (45,083 ) (33,828 ) (30,945 ) Net financial expenses relating to industrial activities (A+B) (42,082 ) (23,563 ) (29,260 ) Interest and other finance costs on bonds and notes for the year ended December 31, 2019 includes costs of €8,142 thousand for the partial repurchase of bonds following a cash tender offer in July (in particular the repurchase price and premium incurred, as well as previously unamortized issuance costs). |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income taxes [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense is as follows: For the years ended December 31, 2019 2018 2017 (€ thousand) Current tax expense 137,303 95,076 201,274 Deferred tax expense 32,145 66,325 8,718 Taxes relating to prior periods 7,208 (145,084 ) (1,232 ) Total income tax expense 176,656 16,317 208,760 The Group’s entities participate in a group Italian tax consolidation under Ferrari N.V.. In September 2018, the Group signed an agreement with the Italian Revenue Agency in relation to the Patent Box tax regime, which provides tax benefits for companies that generate income through the use, both direct and indirect, of copyrights, patents, trademarks, designs and know-how. The agreement relates to the five-year period from 2015 to 2019. The Group applied the Patent Box tax regime for the calculation of income taxes starting in the third quarter of 2018. The Patent Box tax benefit relating to the years 2015 to 2017 was recorded within taxes relating to prior periods in 2018 and amounted to €141 million . The table below provides a reconciliation between actual income tax expense and the theoretical income tax expense, calculated on the basis of the applicable corporate tax rate in effect in Italy, which was 24.0 percent for each of the years ended December 31, 2019 , 2018 and 2017 . For the years ended December 31, 2019 2018 2017 (€ thousand) Theoretical income tax expense, net of IRAP 210,088 192,706 179,077 Tax effect on: Permanent and other differences (76,187 ) (58,877 ) (7,061 ) Effect of changes in tax rate and tax regulations 733 — 4,862 Differences between foreign tax rates and the theoretical Italian tax rate and tax holidays 3,457 1,216 2,344 Taxes relating to prior years 7,208 (145,084 ) (1,232 ) Withholding tax on earnings 3,360 1,514 2,420 Total income tax expense/(benefit), net of IRAP 148,659 (8,525 ) 180,410 Effective tax rate, net of IRAP 17.0 % (1.1 )% 24.2 % IRAP (current and deferred) 27,997 24,842 28,350 Total income tax expense 176,656 16,317 208,760 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, the cost of fixed-term employees, credit losses and any interest included in lease payments. The applicable IRAP rate was 3.9 percent for each of the years ended December 31, 2019 , 2018 and 2017 . The increase in the effective tax rate net of IRAP from (1.1) percent in 2018 to 17.0 percent in 2019 was primarily attributable to the Group’s application of the Patent Box tax regime starting in the third quarter of 2018, which resulted in the recognition in 2018 of the positive impact of the Patent Box relating to the years 2015 to 2017. The Patent Box benefit relating to the years 2015 to 2017 is included within “taxes relating to prior years” in 2018 and the Patent Box benefit relating to 2019 and 2018 is included within “permanent and other differences” for the respective years in the tax rate reconciliation above. Taxes relating to prior years recognized in 2019 are primarily attributable to agreements reached with the Italian Revenue Agency for the settlement of previous years’ claims. The analysis of deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 , is as follows: At December 31, 2019 2018 (€ thousand) Deferred tax assets: To be recovered after 12 months 16,445 27,297 To be recovered within 12 months 57,238 33,447 73,683 60,744 Deferred tax liabilities: To be realized after 12 months (77,334 ) (14,497 ) To be realized within 12 months (4,874 ) (24,645 ) (82,208 ) (39,142 ) Net deferred tax (liabilities)/assets (8,525 ) 21,602 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, 2018 Recognized in consolidated income statement Charged to equity Translation At December 31, 2019 (€ thousand) Deferred tax assets arising on: Provisions 108,147 (8,181 ) — 332 100,298 Deferred income 51,578 2,265 — — 53,843 Employee benefits 2,474 — 456 — 2,930 Cash flow hedge reserve 1,176 — 610 — 1,786 Foreign currency exchange rate differences 859 578 — — 1,437 Inventory obsolescence 38,275 13,626 — 71 51,972 Allowances for doubtful accounts 4,301 1,104 — 2 5,407 Depreciation 17,241 321 — 2 17,564 Other 11,147 5,858 690 17,695 Total deferred tax assets 235,198 15,571 1,066 1,097 252,932 Deferred tax liabilities arising on: Depreciation (9,303 ) 572 — (150 ) (8,881 ) Capitalization of development costs (171,707 ) (53,144 ) — — (224,851 ) Employee benefits (670 ) (80 ) — — (750 ) Exchange rate differences (149 ) (251 ) — 1 (399 ) Cash flow hedge reserve (1 ) 1 — — — Tax on undistributed earnings (16,371 ) 2,388 — — (13,983 ) Other (15,395 ) 2,798 — 4 (12,593 ) Total deferred tax liabilities (213,596 ) (47,716 ) — (145 ) (261,457 ) Total net deferred tax assets/(liabilities) 21,602 (32,145 ) 1,066 952 (8,525 ) At December 31, 2017 Recognized in consolidated income statement Charged to equity Translation At December 31, 2018 (€ thousand) Deferred tax assets arising on: Provisions 102,243 5,249 — 655 108,147 Deferred income 46,198 3,131 — 2,249 51,578 Employee benefits 2,562 — (88 ) — 2,474 Cash flow hedge reserve (2,432 ) — 3,608 — 1,176 Foreign currency exchange rate differences 740 119 — — 859 Inventory obsolescence 37,615 521 — 139 38,275 Allowances for doubtful accounts 3,999 303 — (1 ) 4,301 Depreciation 16,570 399 — 272 17,241 Other 12,383 1,876 — (3,112 ) 11,147 Total deferred tax assets 219,878 11,598 3,520 202 235,198 Deferred tax liabilities arising on: Depreciation (8,930 ) (24 ) — (349 ) (9,303 ) Capitalization of development costs (114,775 ) (56,932 ) — — (171,707 ) Employee benefits (1,868 ) (161 ) — 1,359 (670 ) Exchange rate differences (647 ) 501 — (3 ) (149 ) Cash flow hedge reserve (1 ) — — — (1 ) Tax on undistributed earnings — (16,371 ) — — (16,371 ) Other (10,652 ) (4,936 ) — 193 (15,395 ) Total deferred tax liabilities (136,873 ) (77,923 ) — 1,200 (213,596 ) Deferred tax assets arising on tax loss carry-forward 109 — — (109 ) — Total net deferred tax assets 83,114 (66,325 ) 3,520 1,293 21,602 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. For additional information, at December 31, 2019, the aggregate amount of temporary differences related to remaining distributable earnings of the Group’s subsidiaries where deferred tax liabilities have not been recognized amounted to €151,990 thousand . |
OTHER INFORMATION BY NATURE
OTHER INFORMATION BY NATURE | 12 Months Ended |
Dec. 31, 2019 | |
Other information by nature [Abstract] | |
OTHER INFORMATION BY NATURE | OTHER INFORMATION BY NATURE Personnel costs in 2019 , 2018 and 2017 amounted to €385,182 thousand , €323,936 thousand and €313,471 thousand , respectively. These amounts include costs that were capitalized mainly in connection with product development activities. In 2019 , 2018 and 2017 the Group had an average number of employees of 4,164 , 3,651 and 3,336 , respectively. Depreciation amounted to €191,482 thousand , €156,384 thousand and €143,484 thousand for the years ended December 31, 2019 , 2018 and 2017 , respectively. Amortization amounted to €160,464 thousand , €132,364 thousand and €117,122 thousand for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE 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, 2019 , 2018 and 2017 : For the years ended December 31, 2019 2018 2017 Profit attributable to owners of the Company € thousand 695,818 784,678 535,393 Weighted average number of common shares for basic earnings per common share thousand 186,767 188,606 188,951 Basic earnings per common share € 3.73 4.16 2.83 Diluted earnings per share 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 have been issued under the equity incentive plans for the years ended December 31, 2019, 2018 and 2017 (assuming 100 percent of the related awards vested), and (ii) the potential common shares that would have been issued under the Non-Executive Directors’ compensation agreement for the year ended December 31, 2017. See Note 21 for additional details relating to the equity incentive plan. The following table provides the amounts used in the calculation of diluted earnings per share for the years ended December 31, 2019 , 2018 and 2017 : For the years ended December 31, 2019 2018 2017 Profit attributable to owners of the Company € thousand 695,818 784,678 535,393 Weighted average number of common shares (1) for diluted earnings per common share thousand 187,535 189,394 189,759 Diluted earnings per common share € 3.71 4.14 2.82 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill [Abstract] | |
GOODWILL | GOODWILL At December 31, 2019 and 2018 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 2020 through 2023 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 2019 ( 2.0 percent in 2018 and 2017 ). • 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 6.8 percent in 2019 ( 7.0 percent in 2018 and 2017 ). 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, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Externally Development Patents, Other Total (€ thousand) Gross carrying amount at 1,081,287 516,961 167,886 45,085 1,811,219 Additions 242,753 75,109 14,052 5,628 337,542 Reclassification — — 508 (508 ) — Translation differences and other movements — — 1,168 143 1,311 Balance at December 31, 2018 1,324,040 592,070 183,614 50,348 2,150,072 Additions 243,040 86,919 17,606 5,893 353,458 Reclassification — — 6,950 (6,950 ) — Translation differences and other movements — — (679 ) (688 ) (1,367 ) Balance at December 31, 2019 1,567,080 678,989 207,491 48,603 2,502,163 Accumulated amortization at January 1, 2018 847,129 343,348 141,806 38,480 1,370,763 Amortization 83,427 31,764 14,914 2,259 132,364 Translation differences and other movements — — 1,196 (48 ) 1,148 Balance at December 31, 2018 930,556 375,112 157,916 40,691 1,504,275 Amortization 103,812 35,817 18,677 2,158 160,464 Translation differences and other movements — — (292 ) (222 ) (514 ) Balance at December 31, 2019 1,034,368 410,929 176,301 42,627 1,664,225 Carrying amount at: January 1, 2018 234,158 173,613 26,080 6,605 440,456 December 31, 2018 393,484 216,958 25,698 9,657 645,797 December 31, 2019 532,712 268,060 31,190 5,976 837,938 Additions of €353,458 thousand in 2019 ( €337,542 thousand in 2018 ) 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, 2019 | |
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 23,537 341,749 1,959,462 136,991 56,760 2,518,499 Additions 25 14,710 81,936 9,679 194,444 300,794 Divestitures — (641 ) (16,684 ) (2,740 ) (238 ) (20,303 ) Reclassification — 17,225 16,853 1,137 (35,215 ) — Translation differences and other movements 12 330 (3,130 ) (593 ) (560 ) (3,941 ) Balance at December 31, 2018 23,574 373,373 2,038,437 144,474 215,191 2,795,049 Impact of IFRS adoption at January 1, 2019 — 17,226 10,011 36,298 — 63,535 Additions 30 15,560 176,235 18,102 142,227 352,154 Divestitures — (884 ) (11,281 ) (7,673 ) (459 ) (20,297 ) Reclassification — 5,937 148,102 1,524 (155,563 ) — Translation differences and other movements 5 (2,554 ) 16 (197 ) — (2,730 ) Balance at December 31, 2019 23,609 408,658 2,361,520 192,528 201,396 3,187,711 Accumulated amortization at January 1, 2018 — 142,260 1,555,769 110,210 — 1,808,239 Depreciation — 10,407 136,793 9,184 — 156,384 Divestitures — (627 ) (15,976 ) (2,621 ) — (19,224 ) Translation differences and other movements — 2,864 (1,050 ) (2,714 ) — (900 ) Balance at December 31, 2018 — 154,904 1,675,536 114,059 — 1,944,499 Depreciation — 15,443 159,302 16,737 — 191,482 Divestitures — (417 ) (11,001 ) (3,917 ) — (15,335 ) Translation differences and other movements — (2,798 ) 2 209 — (2,587 ) Balance at December 31, 2019 — 167,132 1,823,839 127,088 — 2,118,059 Carrying amount at: January 1, 2018 23,537 199,489 403,693 26,781 56,760 710,260 December 31, 2018 23,574 218,469 362,901 30,415 215,191 850,550 December 31, 2019 23,609 241,526 537,681 65,440 201,396 1,069,652 of which right-of use assets under IFRS 16 — 15,834 7,612 34,319 — 57,765 Additions for the periods presented mainly relate to car production and engine assembly lines (including those for models to be launched in future years), industrial tools used for the production of cars, and our personalization programs. As a result of adopting IFRS 16 - Leases on January 1, 2019, the Group recognized right-of-use assets of €63,535 thousand (and related lease liabilities) in relation to leases which had previously been classified as operating leases under IAS 17. For further details of the impact of adoption, see Note 2 “ Significant Accounting Policies - New standards and amendments effective from January 1, 2019 - IFRS 16-Leases ”. The following table summarizes the changes in the carrying amount of right-of-use assets for the year ended December 31, 2019: Industrial buildings Plant, machinery and equipment Other assets Total (€ thousand) Balance at December 31, 2018 (*) 9 — 765 774 Impact of IFRS 16 adoption 17,226 10,011 36,298 63,535 Balance at January 1, 2019 17,235 10,011 37,063 64,309 Additions 3,532 2,800 6,428 12,760 Depreciation (4,664 ) (5,023 ) (7,380 ) (17,067 ) Translation differences and other movements (269 ) (176 ) (1,792 ) (2,237 ) Balance at December 31, 2019 15,834 7,612 34,319 57,765 ___________________________ (*) Relates to lease assets that were previously recognized as ‘finance leases’ under IAS 17 - Leases. Amounts recognized in the income statement in relation to leases for the year ended December 31, 2019 were as follows: For the year ended December 31, 2019 (€ thousand) Depreciation of right-of-use assets 17,067 Interest expense on lease liabilities 1,172 Variable lease payments not included in the measurement of lease liabilities 1,143 Expenses relating to short-term leases and leases of low-value assets 4,635 Total expenses recognized 24,017 At December 31, 2019 , the Group had contractual commitments for the purchase of property, plant and equipment amounting to €105,335 thousand ( €146,281 thousand at December 31, 2018 ). |
INVESTMENTS AND OTHER FINANCIAL
INVESTMENTS AND OTHER FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Investments and other financial assets [Abstract] | |
INVESTMENTS AND OTHER FINANCIAL ASSETS | INVESTMENTS AND OTHER FINANCIAL ASSETS At December 31, 2019 2018 (€ thousand) Investments accounted for using the equity method 30,012 25,972 Other securities and financial assets 8,704 6,162 Total investments and other financial assets 38,716 32,134 Investments accounted for using the equity method Investments accounted for using the equity method relates to the Group’s investment in FFS GmbH. Changes in the investments accounted for using the equity method were as follows: (€ thousand) Balance at January 1, 2018 23,340 Proportionate share of net profit for the year ended December 31, 2018 2,665 Proportionate share of remeasurement of defined benefit plans (33 ) Balance at December 31, 2018 25,972 Proportionate share of net profit for the year ended December 31, 2019 4,043 Proportionate share of remeasurement of defined benefit plans (3 ) Balance at December 31, 2019 30,012 Summarized financial information relating to FFS GmbH at and for the years ended December 31, 2019 and 2018 were as follows: At December 31, 2019 2018 (€ thousand) Assets Non-current assets 2,436 1,402 Receivables from financing activities 660,883 591,482 Other current assets 8,565 12,630 Cash and cash equivalents 6,471 5,957 Total assets 678,355 611,471 Equity and liabilities Equity 58,049 49,969 Debt 604,643 546,595 Other liabilities 15,663 14,907 Total equity and liabilities 678,355 611,471 For the year ended December 31, 2019 2018 (€ thousand) Net revenues 34,680 29,446 Cost of sales 15,655 12,183 Selling, general and administrative costs 8,892 8,720 Other (income)/expenses, net (963 ) 239 Profit before taxes 11,096 8,304 Income tax expense 3,010 2,974 Net profit 8,086 5,330 Other securities and financial assets Other securities and financial assets primarily include Series C Liberty Formula One shares (the “Liberty Media Shares”) of Liberty Media Corporation (the group responsible for the promotion of the Formula 1 World Championship), which are measured at fair value and amounted to €7,674 thousand at December 31, 2019 ( €5,142 thousand at December 31, 2018). |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
INVENTORIES | INVENTORIES At December 31, 2019 2018 (€ thousand) Raw materials 85,155 74,053 Semi-finished goods 91,119 84,576 Finished goods 243,777 232,435 Total inventories 420,051 391,064 Finished goods primarily includes cars and spare parts. The accrual to the provision for slow moving and obsolete inventories recognized within cost of sales during 2019 was €14,512 thousand ( €11,062 thousand in 2018 and €10,140 thousand in 2017 ). Changes in the provision for slow moving and obsolete inventories were as follows: 2019 2018 (€ thousand) At January 1, 73,426 66,989 Provision 14,512 11,062 Use and other changes (4,265 ) (4,625 ) At December 31, 83,673 73,426 |
CURRENT RECEIVABLES AND OTHER C
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 (€ thousand) Trade receivables 231,439 211,399 Receivables from financing activities 966,448 878,496 Current tax receivables 21,078 128,234 Other current assets 92,830 64,295 Total 1,311,795 1,282,424 Trade receivables The following table sets forth a breakdown of trade receivables by nature: At December 31, 2019 2018 (€ thousand) Trade receivables due from: Dealers 74,589 64,739 FCA Group companies 49,782 47,882 Sponsorship and commercial activities 46,375 43,500 Brand activities 24,937 26,247 Other 35,756 29,031 Total 231,439 211,399 Trade receivables due from dealers relate to receivables for the sale of cars across the dealer network and are generally settled within 30 to 40 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 28, “ Related Party Transactions ”. Trade receivables due from sponsorship and commercial activities mainly relate to amounts receivable from sponsorship agreements and commercial activities relating to the Group’s participation in the Formula 1 World Championship. Trade receivables due from brand activities relate to amounts receivable for licensing and merchandising activities. The Group is not exposed to significant concentration of third party credit risk. The following table sets forth a breakdown of trade receivables by currency: At December 31, 2019 2018 (€ thousand) Trade receivables denominated in: Euro 127,226 128,396 U.S. Dollar 75,138 68,410 Pound Sterling 7,238 3,440 Chinese Yuan 2,101 1,777 Japanese Yen 11,018 1,571 Other 8,718 7,805 Total 231,439 211,399 Trade receivables are shown net of an allowance for doubtful accounts determined on the basis of insolvency risk and historical experience, adjusted for forward-looking factors specific to the receivables and economic environment. 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 of trade receivables during the year were as follows: 2019 2018 (€ thousand) At January 1, 24,346 21,993 Provision 2,976 2,737 Use and other changes (151 ) (384 ) At December 31, 27,171 24,346 Receivables from financing activities Receivables from financing activities relate entirely to the financial services portfolio in the United States and are detailed as follows: At December 31, 2019 2018 (€ thousand) Client financing 950,842 851,209 Dealer financing 15,606 27,287 Total receivables from financing activities 966,448 878,496 Receivables from financing activities are shown net of an allowance for doubtful accounts determined on the basis of insolvency risks, adjusted for forward-looking factors specific to the receivables and economic environment. 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: 2019 2018 (€ thousand) At January 1, 6,457 6,948 Provision 4,739 2,687 Use and other changes (3,716 ) (3,178 ) At December 31, 7,480 6,457 Client financing Client financing relates to financing provided by the Group to Ferrari clients to finance their car acquisitions. During 2019 the average contractual duration at inception of such contracts was approximately 67 months (in line with 2018) and the weighted average interest rate was approximately 6.0 percent (approximately 5.7 percent in 2018). Receivables for client financing are generally secured on the titles of the related cars or other personal guarantees. Client financing relates entirely to financial services 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 financial services activities. In 2019 these receivables were interest bearing at a rate between 4.5 percent and 7.0 percent (between 4.1 percent and 7.0 percent in 2018 ), with the exception of an initial limited, non-interest bearing period. The contractual terms governing the relationships with the dealer network may vary, although payment terms generally range from 1 to 6 months. Receivables on dealer financing are generally secured by the titles of the related cars or other collateral. In November 2019 the Group exited one of the remaining dealer financing arrangements. Current tax receivables The decrease in current tax receivables primarily related to the Patent Box benefit recognized in 2018. Other current assets Other current assets are detailed as follows: At December 31, 2019 2018 (€ thousand) Italian and foreign VAT credits 48,719 20,466 Prepayments 39,856 35,758 Other 4,255 8,071 Total other current assets 92,830 64,295 Other includes security deposits, amounts due from personnel and other receivables. At December 31, 2019 , the Group had provided guarantees through third parties amounting to €95,304 thousand ( €133,175 thousand at December 31, 2018 ), principally to banks and relevant tax authorities for (i) a U.S. Dollar denominated credit facility of FFS Inc, and (ii) the VAT related to the temporary import of classic cars for restoration activities which would become due if the car is not exported. The analysis of receivables and other current assets by due date (excluding prepayments) is as follows: At December 31, 2019 Due within one year Due between one and five years Due beyond five years Overdue Total (€ thousand) Trade receivables 184,613 48 — 46,778 231,439 Receivables from financing activities 165,164 683,096 58,740 59,448 966,448 Client financing 161,753 670,901 58,740 59,448 950,842 Dealer financing 3,411 12,195 — — 15,606 Current tax receivables 20,397 681 — — 21,078 Other current assets 52,449 346 179 — 52,974 Total 422,623 684,171 58,919 106,226 1,271,939 At December 31, 2018 Due within one year Due between one and five years Due beyond five years Overdue Total (€ thousand) Trade receivables 174,627 — — 36,772 211,399 Receivables from financing activities 172,049 600,615 52,032 53,800 878,496 Client financing 144,762 600,615 52,032 53,800 851,209 Dealer financing 27,287 — — — 27,287 Current tax receivables 127,573 661 — — 128,234 Other current receivables 28,036 494 7 — 28,537 Total 502,285 601,770 52,039 90,572 1,246,666 |
CURRENT FINANCIAL ASSETS AND OT
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES | CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES At December 31, 2019 2018 (€ thousand) Financial derivatives 9,423 6,788 Other financial assets 1,986 3,386 Current financial assets 11,409 10,174 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, 2019 and 2018. At December 31, 2019 2018 Positive fair Negative fair Positive fair Negative fair (€ thousand) Cash flow hedge: Foreign currency derivatives 8,039 (14,547 ) 3,240 (10,853 ) Interest rate caps 87 — 555 — Total cash flow hedges 8,126 (14,547 ) 3,795 (10,853 ) Other foreign currency derivatives 1,294 (244 ) 1,023 (489 ) Interest rate caps 3 — 1,970 — Total 9,423 (14,791 ) 6,788 (11,342 ) Foreign currency derivatives which do not meet the requirements to be recognized as cash flow hedges are presented as other foreign currency derivatives. Interest rate caps relate to derivative instruments required as part of certain of the funding from securitization programs. The following tables provide an analysis by foreign currency of outstanding derivative financial instruments based on their fair value and notional amounts: At December 31, 2019 At December 31, 2018 Fair Value Notional Amount Fair Value Notional Amount (€ thousand) Currencies: U.S. Dollar 2,826 1,338,800 (1,324 ) 487,336 Pound Sterling (4,639 ) 175,247 613 138,609 Japanese Yen 923 272,183 (2,901 ) 113,596 Swiss Franc (1,716 ) 87,632 (1,182 ) 64,229 Chinese Yuan 55 57,094 (82 ) 45,434 Other (1) (2,817 ) 106,491 322 116,476 Total amount (5,368 ) 2,037,447 (4,554 ) 965,680 ______________________________ (1) Other mainly includes the Australian Dollar, the Hong Kong Dollar and the Canadian Dollar. At December 31, 2019 and 2018, all derivative financial instruments had a maturity of twelve months or less. 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, 2019 2018 2017 (€ thousand) Net (costs)/revenues (22,055 ) 3,777 19,724 Income tax benefit/(expense) 6,153 (1,054 ) (5,503 ) Total recognized in the consolidated income statement (15,902 ) 2,723 14,221 The ineffectiveness of cash flow hedges was not material for the years 2019 , 2018 and 2017 . |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Share Capital Reserves and Other Equity Interests [Abstract] | |
EQUITY | EQUITY Share capital At December 31, 2019 the fully paid up share capital of the Company was €2,573 thousand , consisting of 193,923,499 common shares and 63,349,111 special voting shares, all with a nominal value of €0.01 ( €2,504 thousand at December 31, 2018 consisting of 193,923,499 common shares and 56,497,618 special voting shares, all with a nominal value of €0.01 ). At December 31, 2019, the Company had 8,640,176 common shares and 2,190 special voting shares held in treasury, while at December 31, 2018, the Company had 6,002,843 common shares and 4,744 special voting shares held in treasury. The increase in common shares held in treasury primarily reflects the repurchase of shares by the Company through its share repurchase program, partially offset by shares assigned under equity incentive plans. As per the resolution of the Annual General Meeting of Shareholders on April 12, 2019 which approved to cancel all special voting shares in the share capital of the Company held in treasury as of that date, on August 29, 2019 the Company completed the cancellation process of 3,902 special voting shares. The following table summarizes the changes in the number of outstanding common shares and outstanding special voting shares of the Company for the year ended December 31, 2019: Common Shares Special Voting Shares Total Outstanding shares at December 31, 2018 187,920,656 56,492,874 244,413,530 Common shares repurchased under share repurchase program (1) (2,907,702 ) — (2,907,702 ) Common shares assigned under equity incentive plans (2) 270,369 — 270,369 Special voting shares allocation (3) — 6,854,047 6,854,047 Outstanding shares at December 31, 2019 185,283,323 63,346,921 248,630,244 _______________________________________ (1) Includes shares repurchased between January 1, 2019 and December 31, 2019 based on the transaction trade date, for a total consideration of €386,094 thousand , including transaction costs. (2) During 2019, approximately 230 thousand performance share units and 40 thousand retention restricted share units vested under the Equity Incentive Plan 2016-2020 as a result of certain performance or retention requirements being achieved. As a result, a corresponding number of common shares, which were previously held in treasury, were assigned to participants of the plan. See Note 21 “Share-Based Compensation” for additional details. (3) Relates to the issuance, allocation and deregistration of certain special voting shares under the Company’s special voting shares terms and conditions. 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 purchase common shares 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 affected 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: • a share premium reserve of €5,768,544 thousand at December 31, 2019 ( €5,768,544 thousand at December 31, 2018 ), which primarily originated from the issuance of common shares pursuant to the restructuring activities undertaken as part of the Separation. • a legal reserve of €65 thousand at December 31, 2019 and €29 thousand at December 31, 2018 , determined in accordance with Dutch law. • a treasury reserve of €486,892 thousand at December 31, 2019 and €100,143 thousand at December 31, 2018. • a share-based compensation reserve of €46,539 thousand at December 31, 2019 and €52,198 thousand at December 31, 2018. Following approval of the annual accounts by the shareholders at the Annual General Meeting of the Shareholders on April 12, 2019, a dividend distribution of €1.03 per common share was approved, corresponding to a total distribution of €193,328 thousand (of which €192,664 thousand was paid in 2019). The distribution was made from the retained earnings reserve. Following approval of the annual accounts by the shareholders at the Annual General Meeting of the Shareholders on April 13, 2018, a dividend distribution of €0.71 per common share was approved, corresponding to a total distribution of €133,939 thousand (of which €133,095 thousand was paid in 2018). The distribution was made from the retained earnings reserve. 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 . The distribution was made from the share premium reserve which is a distributable reserve under Dutch law. During the year ended December 31, 2019 the Company repurchased 2,907,702 common shares for a total consideration of €386,749 thousand under the multi-year Euro 1.5 billion total share repurchase program announced in December 2018 ( 1,033,218 common shares for a total consideration of €100,093 thousand were repurchased during the year ended December 31, 2018 under a previous share repurchase program). Shares repurchased may be used to meet the Company’s obligations arising from the equity incentive plans. Other comprehensive income The following table presents other comprehensive income: For the years ended December 31, 2019 2018 2017 (€ thousand) Items that will not be reclassified to the consolidated income statement in subsequent periods: (Losses)/Gains on remeasurement of defined benefit plans (1) (2,078 ) 385 (730 ) Total items that will not be reclassified to the consolidated income statement in subsequent periods (2,078 ) 385 (730 ) Items that may be reclassified to the consolidated income statement in subsequent periods: (Losses)/Gains on cash flow hedging instruments arising during the period (24,327 ) (9,257 ) 54,695 Losses/(Gains) on cash flow hedging instruments reclassified to the consolidated income statement 22,055 (3,777 ) (19,724 ) (Losses)/Gains on cash flow hedging instruments (2,272 ) (13,034 ) 34,971 Exchange differences on translating foreign operations arising during the period 2,652 5,986 (15,346 ) Total items that may be reclassified to the consolidated income statement in subsequent periods 380 (7,048 ) 19,625 Total other comprehensive income (1,698 ) (6,663 ) 18,895 Related tax impact 1,066 3,520 (9,554 ) Total other comprehensive income, net of tax (632 ) (3,143 ) 9,341 __________________________ (1) For the year ended December 31, 2019 includes €3 thousand ( €33 thousand for the year ended December 31, 2018) related to the Group’s proportionate share of the loss on remeasurement of defined benefit plans of FFS GmbH, for which the Group holds a 49.9 percent interest. Gains and losses on the remeasurement of defined benefit plans include actuarial gains and losses arising during the period and are offset against the related net defined benefit liabilities. The tax effects relating to other comprehensive income/(loss) are summarized in the following table: For the years ended December 31, 2019 2018 2017 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 (2,078 ) 456 (1,622 ) 385 (88 ) 297 (730 ) 203 (527 ) (Losses)/Gains on cash flow hedging instruments (2,272 ) 610 (1,662 ) (13,034 ) 3,608 (9,426 ) 34,971 (9,757 ) 25,214 Exchange gains/(losses) on translating foreign operations 2,652 — 2,652 5,986 — 5,986 (15,346 ) — (15,346 ) Total other comprehensive (loss)/income (1,698 ) 1,066 (632 ) (6,663 ) 3,520 (3,143 ) 18,895 (9,554 ) 9,341 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, 2019 , 2018 or 2017 . 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, 2019 | |
Disclosure of Share-based Compensation [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Equity Incentive Plan 2016 - 2020 Following the approval of the equity incentive plan by the Board of Directors in March 2017, the Shareholders approved in April 2017 an award to the former Chief Executive Officer under the Company’s equity incentive plan, which is applicable to members of the Senior Management Team (“SMT”) and key leaders of the Group (“Equity Incentive Plan 2016-2020”). The grants of the performance share units (“PSUs”) and the retention restricted share unites (“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. In 2018, additional PSU and RSU awards were granted to the current Chief Executive Officer and certain key employees of the Group under this plan. Performance Share Units 2016-2020 The Company awarded members of the SMT and key leaders a total target of approximately 237 thousand PSUs and 450 thousand PSUs to its former Chief Executive Officer in 2017, and an additional total of approximately 21 thousand PSUs were awarded to the current Chief Executive Officer in 2018. The PSUs vest in three equal tranches in 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 total number of shares that will eventually be issued upon vesting of the PSUs may vary from the original award. The target amount of PSUs vests as follows based on the Company’s TSR performance compared to an industry specific peer group of eight , including the Company, (“Peer Group”): Ferrari TSR Ranking % of Target Awards that Vest CEO SMT and Key Leaders 1 150% 150% 2 120% 120% 3 100% 100% 4 75% — 5 50% — >5 0% — The defined Peer Group, which is applicable for the Performance Share Units 2016-2020, is as follows: Ferrari Brunello Cucinelli Burberry Ferragamo Hermes LVMH Moncler Richemont 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 in 2017 is €59.36 to €72.06 per share and the range of the fair value of the PSUs that were awarded in 2018 is €61.30 and €111.92 . The key assumptions utilized to calculate the grant-date fair values for these awards are summarized below: Key assumptions PSU Awards Granted in 2017 PSU Awards Granted in 2018 Grant date share price €66.85 €113.70 Expected volatility 17.4% 16.7% Dividend yield 1.2% 0.9% Risk-free rate 0% 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. For the first tranche of the PSU awards under the Equity Incentive Plan 2016-2020, which cover the performance period from 2016 to 2018, Ferrari ranked third in TSR within the defined industry-specific peer group applicable to the plan, resulting in the vesting of 100 percent of the target PSUs awarded. As a result, 230,282 PSU awards vested in 2019. Retention Restricted Share Units The Company awarded members of the SMT and key leaders a total of approximately 119 thousand RSUs in 2017, and an additional 10 thousand RSUs were awarded in 2018, including to the new Chief Executive Officer. The RSU awards granted 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 2019, 2020 and 2021, subject to continued employment with the Company at the time of vesting. For the first tranche of the RSU awards under the Equity Incentive Plan 2016-2020, 40,087 RSU awards vested in 2019. 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 in 2017 is €63.00 to €64.64 per share and the range of the fair value of the RSUs awarded in 2018 is €110.76 to €112.99 . Equity Incentive Plan 2019-2021 Under a new equity incentive plan approved in 2019, approximately 174 thousand PSUs and 111 thousand RSUs, which each represent the right to receive one Ferrari common share, were awarded to the Executive Chairman, the Chief Executive Officer, all members of the SMT and other key employees of the Group (“Equity Incentive Plan 2019-2021”). These PSUs and RSUs cover a three -year performance period from 2019 to 2021. Performance Share Units 2019-2021 The vesting of the PSUs is based on the achievement of defined key performance indicators relating to: i) TSR ranking, ii) an EBITDA target, and iii) innovation targets, which will each be settled independently of the others targets. The total number of shares that will be assigned upon vesting of the PSUs will depend on the level of achievement of the targets. The PSUs vest in 2022, except for the PSUs awarded to the Chief Executive Officer which will vest in three tranches of 12 percent , 12 percent and 76 percent in 2020, 2021 and 2022, respectively. Of the total number of PSU awards, 50 percent vest based on the achievement of the TSR ranking of Ferrari compared to an industry specific peer group of eight , including the Company, (“New Peer Group”): Ferrari TSR Rating % of Awards that Vest 1 150% 2 120% 3 100% 4 75% 5 50% >5 0% The defined New Peer Group (*) , which is applicable to the Performance Share Units 2019-2021, is as follows: Ferrari Aston Martin Burberry Hermes Kering LVMH Moncler Richemont ____________________________ (*) Tiffany was removed from the New Peer Group as a consequence of its recently announced acquisition by LVMH in November 2019. Of the total number of PSU awards, 30 percent vest based on the achievement of an EBITDA target determined by comparing Adjusted EBITDA to the Adjusted EBITDA targets derived from the business plan: Actual Adjusted EBITDA Compared to Business Plan % of Awards that Vest +10% 140% +5% 120% Business Plan Target 100% -5% 80% <-5% 0% Of the total number of PSU awards, 20 percent vest based on the achievement of defined objectives for technological innovation and the development of the new model pipeline over the performance period. The performance period for the PSUs commenced on January 1, 2019. 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 €110.57 - €111.64 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 122.60 Expected volatility 26.50% Dividend yield 0.83% Risk-free rate 0% The expected volatility was based on the observed volatility of the New Peer Group. The risk-free rate was based on the iBoxx sovereign Eurozone yield. Retention Restricted Share Units (RSUs) The vesting of the RSUs is conditional on the recipients continued employment with the Company at the time of vesting. The RSUs vest in 2022, except for the RSUs awarded to the Chief Executive Officer which vest in three equal tranches in 2020, 2021 and 2022. The range of the fair value of the RSUs awarded is €119.54 - €120.56 per share. Outstanding share awards Changes during 2019, 2018 and 2017 to the outstanding number of PSU and RSU share awards under both the Equity Incentive Plan 2016-2020 and Equity Incentive Plan 2019-2021 are as follows: Outstanding PSU Awards Outstanding RSU Awards Balance at January 1, 2017 — — Granted (1) 686,933 118,467 Forfeited — — Vested — — Balance at December 31, 2017 686,933 118,467 Granted (1) 20,793 10,397 Forfeited (21,200 ) (10,600 ) Vested — — Balance at December 31, 2018 686,526 118,264 Granted (2) 175,307 110,968 Forfeited (32,832 ) (18,000 ) Vested (230,282 ) (40,087 ) Balance at December 31, 2019 598,719 171,145 _______________________________________ (1) Granted under the Equity Incentive Plan 2016-2020 (2) Granted under the Equity Incentive Plan 2019-2021 Share-based compensation expense For the years ended December 31, 2019, 2018 and 2017, the Company recognized €17,480 thousand , €22,491 thousand and €28,179 thousand , respectively, as share-based compensation expense and an increase to other reserves in equity for the PSU awards and RSU awards. At December 31, 2019, unrecognized compensation expense amounted to €19,298 thousand and will be recognized over the remaining vesting periods through 2021. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2019 | |
Employee benefits [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS The Group’s provisions for employee benefits are as follows: At December 31, 2019 2018 (€ thousand) Present value of defined benefit obligations: Italian employee severance indemnity (TFR) 21,795 21,195 Pension plans 134 485 Total present value of defined benefit obligations 21,929 21,680 Other provisions for employees 66,187 64,895 Total provisions for employee benefits 88,116 86,575 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, 2019 , 2018 and 2017 was €13,650 thousand , €11,930 thousand and €11,987 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) 2020 1,396 2 2021 1,677 2 2022 1,808 2 2023 1,531 2 2024 1,599 2 Beyond 2024 6,086 611 Total 14,097 621 The following table summarizes the changes in the defined benefit obligations: TFR liability Pension plans Total (€ thousand) Amounts at December 31, 2017 22,641 604 23,245 Included in the consolidated income statement — 55 55 Included in other comprehensive income/(loss) (*) (390 ) (28 ) (418 ) Other (1,056 ) (146 ) (1,202 ) Benefits paid (1,620 ) (169 ) (1,789 ) Other changes 564 23 587 Amounts at December 31, 2018 21,195 485 21,680 Included in the consolidated income statement — (492 ) (492 ) Included in other comprehensive income/(loss) (*) 1,899 176 2,075 Other (1,299 ) (35 ) (1,334 ) Benefits paid (1,490 ) (24 ) (1,514 ) Other changes 191 (11 ) 180 Amounts at December 31, 2019 21,795 134 21,929 ______________________________ (*) Relates to actuarial losses/(gains) from financial assumptions. Amounts recognized in the consolidated income statement are as follows: For the years ended December 31, 2019 2018 2017 TFR Pension plans Total TFR Pension plans Total TFR Pension plans Total (€ thousand) Current service cost — 26 26 — 55 55 — 141 141 Interest expense — — — — — — — 1 1 Past service adjustments — (518 ) (518 ) — — — — — — Total recognized in the consolidated income statement — (492 ) (492 ) — 55 55 — 142 142 Past service credit relates to gains recognized in the consolidated income statement due to plan amendments and curtailments. 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 2019 is equal to 0.7 percent ( 1.7 percent in 2018 and 1.5 percent in 2017 ). 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 2019 was equal to approximately zero percent ( 0.8 percent 2018 and 0.7 percent in 2017 ). The average duration of the obligations is approximately 14 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, 2019 2018 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 (1,695 ) 1,951 (1,647 ) 1,891 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, 2019 , other provisions for employees comprised long term bonus benefits amounting to €62,890 thousand ( €61,940 thousand at December 31, 2018 ) and jubilee benefits granted to certain employees by the Group in the event of achieving 30 years of service amounting to €3,297 thousand ( €2,955 thousand at December 31, 2018 ). |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2019 | |
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 111,129 28,131 (32,584 ) 1,135 107,811 Legal proceedings and disputes 37,154 3,037 (14,280 ) 1,186 27,097 Other risks 34,256 12,393 (18,553 ) 2,568 30,664 Total provisions 182,539 43,561 (65,417 ) 4,889 165,572 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. Due to an industry wide recall relating to Takata airbags manufactured using non-desiccated Phase Stabilized Ammonium Nitrate (“PSAN”), in 2016 the Group initiated a global recall campaign on cars mounted with such airbags. Due to the uncertainty of recoverability of the costs from Takata, the Group recognized an aggregate provision of € 36,994 thousand in 2016 (within cost of sales). At December 31, 2019, the provision amounted to €15,519 thousand ( €24,513 thousand at December 31, 2018), reflecting the current best estimate for future costs of the Group related to the recall campaign. The decrease in the provision relates to ongoing recall activities as well as a partial release in 2018. 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 2020 or beyond, 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 of the provision for legal proceedings and disputes includes a release for a change in the estimate of the risk and related provision associated with a legal dispute based on developments in the first quarter of 2019. 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, as well as environmental risks. The utilization of the provision for other risks includes a release of provisions related to favorable developments in emissions regulations that occurred in the third quarter of 2019. The following table sets forth additional provisions to other risks recognized for the years ended December 31, 2019 , 2018 and 2017 . For the years ended December 31, 2019 2018 2017 (€ thousand) Recorded in the consolidated income statement within: Cost of sales 9,563 11,420 8,065 Selling, general and administrative costs 2,830 — 274 Total 12,393 11,420 8,339 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
DEBT | DEBT Balance at December 31, 2018 Impact of IFRS 16 adoption Balance at January 1, 2019 Proceeds from borrowings Repayments of borrowings Interest accrued and other Translation differences Balance at December 31, 2019 (€ thousand) Bonds and notes 1,198,109 — 1,198,109 298,316 (315,395 ) 4,440 — 1,185,470 Asset-backed financing (Securitizations) 682,581 — 682,581 282,113 (189,940 ) (82 ) 13,597 788,269 Lease liabilities 673 63,535 64,208 14,788 (18,684 ) — 184 60,496 Borrowings from banks 35,984 — 35,984 — (3,516 ) (71 ) 549 32,946 Other debt 9,820 — 9,820 33,801 (21,479 ) — 414 22,556 Total debt 1,927,167 63,535 1,990,702 629,018 (549,014 ) 4,287 14,744 2,089,737 The breakdown of debt by nature and by maturity is as follows: At December 31, 2019 2018 Due within one year Due between Due beyond five years Total Due within one year Due between Due beyond five years Total (€ thousand) Bonds and notes 7,260 879,834 298,376 1,185,470 7,616 1,190,493 — 1,198,109 Asset-backed financing (Securitizations) 338,366 449,903 — 788,269 300,051 382,530 — 682,581 Lease liabilities 20,195 — 25,894 14,407 60,496 673 — — 673 Borrowings from banks 32,946 — — 32,946 34,249 1,735 — 35,984 Other debt 22,556 — — 22,556 9,820 — — 9,820 Total debt 421,323 1,355,631 312,783 2,089,737 352,409 1,574,758 — 1,927,167 Bonds and notes 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 a €500 million bank loan. The bond is unrated and was admitted to trading on the regulated market of the Irish Stock Exchange. Following a cash tender offer, on July 16, 2019 the Company executed the repurchase of these notes for an aggregate nominal amount of €115,395 thousand . The amount outstanding at December 31, 2019 of €385,776 thousand includes accrued interest of €4,567 thousand ( €500,197 thousand including accrued interest of €5,938 thousand at December 31, 2018). 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 a bank loan. The bond is unrated and was admitted to trading on the regulated market of the Irish Stock Exchange. Following a cash tender offer, on July 16, 2019 the Company executed the repurchase of these notes for an aggregate nominal amount of €200,000 thousand . The amount outstanding at December 31, 2019 of €499,824 thousand includes accrued interest of €1,199 thousand ( €697,912 thousand including accrued interest of €1,678 thousand at December 31, 2018). 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, 2019 and 2018, Ferrari was in compliance with the covenants of the notes. 2029 and 2031 Notes On July 31, 2019, the Company issued 1.12 percent senior notes due August 2029 (“2029 Notes”) and 1.27 percent senior notes due August 2031 (“2031 Notes”) through a private placement to certain US institutional investors, each having a principal of €150 million . The net proceeds from the issuances amounted to €298,316 thousand and are to be primarily used towards general corporate purposes, including the funding of capital expenditures. The amounts outstanding of the 2029 Notes and 2031 Notes at December 31, 2019 were €149,891 thousand and €149,979 thousand , including accrued interest of €700 thousand and €794 thousand , respectively. Asset-backed financing (Securitizations) As a means of diversifying its sources of funds, the Group sells certain of its receivables originated by its financial services activities in the US through asset-backed financing or securitization programs (the terms asset-backed financing and securitization programs are used synonymously throughout this document), without transferring the risks typically associated with such receivables. As a result, the receivables sold through securitization programs are still consolidated until collection from the customer. As of December 31, 2019, the following revolving securitization programs were in place: • revolving securitization program for funding of up to $600 million by pledging retail financial receivables in the United States as collateral. 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, 2019 total proceeds net of repayments from the sales of financial receivables under the program were $ 547 million ( $424 million at December 31, 2018). The securitization agreement requires the maintenance of an interest rate cap. • revolving securitization program for funding of up to $250 million by pledging leasing financial receivables in the United States as collateral. 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, 2019 total proceeds net of repayments from the sales of financial receivables under the program were $ 238 million ( $223 million at December 31, 2018). The securitization agreement requires the maintenance of an interest rate cap. • revolving securitization program for funding of up to $135 million by pledging credit lines to Ferrari customers secured by personal vehicle collections and personal guarantees in the United States as collateral. The notes bear interest at a rate per annum equal to the aggregate of LIBOR plus a margin of 115 basis points. As of December 31, 2019 total proceeds net of repayments from the sales of financial receivables under the program were $ 101 million ( $134 million at December 31, 2018). The funding limits of the revolving securitization programs have been progressively increased since inception as the related receivables portfolios have finished. Cash collected from the settlement of receivables or credit lines pledged as collateral under securitization programs is subject to certain restrictions regarding its use and is primarily applied to repay principal and interest of the related funding. Such cash amounted to € 27,524 thousand at December 31, 2019 (€ 26,497 thousand at December 31, 2018 ). Lease liabilities As a result of adopting IFRS 16 - Leases on January 1, 2019, the Group recognized right-of-use assets and related lease liabilities of €63,535 thousand in relation to leases which had previously been classified as operating leases under IAS 17. For further details please refer to Note 2 “ Significant Accounting Policies - New standards and amendments effective from January 1, 2019 - IFRS 16 - Leases ”. As of December 31, 2019 lease liabilities amount to €60,496 thousand . Borrowings from banks Borrowings from banks at December 31, 2019 mainly relate to financial liabilities of FFS Inc to support the financial services operations, and in particular (i) €31,211 thousand ( €30,694 thousand at December 31, 2018 ) relating to a U.S. Dollar denominated credit facility for up to $50 million (drawn down for $35 million at December 31, 2019) and bearing interest at LIBOR plus a range of between 65 and 75 basis points; (ii) other borrowings from banks of €1,735 thousand ( €5,290 thousand at December 31, 2018 ) relating to various short and medium term credit facilities. Revolving Credit Facility At December 31, 2018 the Company had a revolving credit facility of €500 million which was undrawn and due to mature in November 2020. This revolving credit facility was cancelled in December 2019 and replaced with a new €350 million unsecured committed revolving credit facility (the “RCF”), which is intended for general corporate and working capital purposes. The RCF has a 5 year-tenor with two further one -year extension options, exercisable on the first and second anniversary of the signing date on the Company’s request and the approval of each participating bank. At December 31, 2019 the RCF was undrawn. Other debt Other debt primarily relates to other funding for financing activities of the Group. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES An analysis of other liabilities is as follows: At December 31, 2019 2018 (€ thousand) Deferred income 275,439 271,817 Advances and security deposits 348,899 145,394 Accrued expenses 85,965 81,408 Payables to personnel 28,272 25,434 Social security payables 20,334 18,209 Other 41,106 47,481 Total other liabilities 800,015 589,743 Deferred income primarily includes amounts received under maintenance and power warranty programs of €219,209 thousand at December 31, 2019 and €204,987 thousand at December 31, 2018 , which are deferred and recognized as revenues over the length of the related program term. Of the total liability related to maintenance and power warranty programs as of December 31, 2019, the Group expects to recognize in net revenues approximately €61 million i n 2020, €44 million i n 2021, €35 million in 2022 and €79 million afterwards. 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, 2019 and at December 31, 2018 primarily include advances received from clients for the purchase of our hypercars and limited edition cars, and at December 31, 2019 also our Icona cars. Upon shipment of such cars, the advances are recognized as revenue. The increase primarily relates to advances received for the Ferrari Monza SP1 and SP2. Of the total contract liability related to advances as of December 31, 2019, the Group expects to recognize the entire amount within net revenues in 2020 and 2021. Changes in the Group’s contract liabilities for maintenance and power warranties, and advances from customers, were as follows: At January 1, 2019 Additional amounts arising during the period Amounts recognized within revenue Other changes At December 31, 2019 (€ thousand) Maintenance and power warranty programs 204,987 90,998 (76,776 ) — 219,209 Advances from customers 139,852 377,950 (176,623 ) 44 341,223 An analysis of other liabilities (excluding accrued expenses and deferred income) by due date is as follows: At December 31, 2019 2018 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) 422,462 10,083 6,066 438,611 223,138 6,960 6,420 236,518 |
TRADE PAYABLES
TRADE PAYABLES | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE PAYABLES | TRADE PAYABLES Trade payables of €711,539 thousand at December 31, 2019 ( €653,751 thousand at December 31, 2018 ) are entirely due within one year. The carrying amount of trade payables is considered to be equivalent to their fair value. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 : At December 31, 2019 Note Level 1 Level 2 Level 3 Total (€ thousand) Cash and cash equivalents 897,946 — — 897,946 Investments and other financial assets - Liberty Media Shares 16 7,674 — — 7,674 Current financial assets 19 — 9,423 — 9,423 Total assets 905,620 9,423 — 915,043 Other financial liabilities 19 — 14,791 — 14,791 Total liabilities — 14,791 — 14,791 At December 31, 2018 Note Level 1 Level 2 Level 3 Total (€ thousand) Cash and cash equivalents 793,664 — — 793,664 Investments and other financial assets - Liberty Media Shares 16 5,142 — — 5,142 Current financial assets 19 — 6,788 — 6,788 Total assets 798,806 6,788 — 805,594 Other financial liabilities 19 — 11,342 — 11,342 Total liabilities — 11,342 — 11,342 There were no transfers between fair value hierarchy levels between 2018 and 2019. The fair value of current financial assets and other financial liabilities relates 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 foreign currency derivatives (forward contracts, currency swaps and options) 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 par 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, 2019 2018 Note Carrying amount Fair value Carrying amount Fair value (€ thousand) Receivables from financing activities 966,448 966,448 878,496 878,496 Client financing 950,842 950,842 851,209 851,209 Dealer financing 18 15,606 15,606 27,287 27,287 Total 966,448 966,448 878,496 878,496 Debt 24 2,089,737 2,103,871 1,927,167 1,921,937 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
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 other companies controlled by the Exor Group (including CNH Industrial N.V. and its subsidiaries), unconsolidated subsidiaries of the Group, associates and joint ventures. In addition, members of the Ferrari 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; • a technical cooperation, starting from November 2019, between the Group and FCA Group with the aim to enhance the quality and competitiveness of their respective products, while reducing costs and investments; • 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 were controlled by the FCA Group until May 2, 2019 when FCA completed the sale of Magneti Marelli. Following the sale, Magneti Marelli (which subsequently operates under the name “Marelli”) is no longer a related party; • transactions with 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. Transactions with Exor Group companies (excluding FCA 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. In accordance with IAS 24, transactions with related parties also include compensation to Directors and managers with strategic responsibilities. The amounts of transactions with related parties recognized in the consolidated income statement are as follows: For the years ended December 31, 2019 2018 2017 Net revenues Costs (1) Net financial expenses Net revenues Costs (1) Net financial expenses Net revenues Costs (1) Net financial expenses (€ thousand) FCA Group companies Maserati 143,091 6,275 — 217,922 3,982 — 315,407 4,698 — FCA US LLC — 17,954 — — 28,486 — 6 44,882 — Magneti Marelli (2) 352 10,444 — 1,589 40,343 — 1,866 36,670 — Other FCA Group companies 8,637 8,028 1,965 12,106 7,193 1,370 6,754 7,007 1,191 Total FCA Group companies 152,080 42,701 1,965 231,617 80,004 1,370 324,033 93,257 1,191 Exor Group companies (excluding the FCA Group) 281 368 4 311 179 — 283 492 — Other related parties 610 13,906 31 1,707 12,651 — 2,159 13,666 — Total transactions with related parties 152,971 56,975 2,000 233,635 92,834 1,370 326,475 107,415 1,191 Total for the Group 3,766,615 2,153,480 42,082 3,420,321 1,953,441 23,563 3,416,890 1,986,792 29,260 ______________________________ (1) Costs include cost of sales, selling, general and administrative costs and other expenses, net. (2) FCA completed the sale of Magneti Marelli on May 2, 2019, following which Magneti Marelli (which subsequently operates under the name “Marelli”) is no longer a related party. Assets and liabilities originating from related party transactions are summarized in the table below: At December 31, 2019 2018 Trade receivables Trade payables Other current assets Other liabilities Trade receivables Trade payables Other current assets Other liabilities (€ thousand) FCA Group companies Maserati 48,617 5,449 — 21,821 39,077 6,099 — 30,594 FCA US LLC — 4,636 — — 135 6,332 — — Magneti Marelli (1) — — — — 2,774 9,427 — — Other FCA Group companies 1,165 3,598 203 581 5,896 4,689 1,481 44 Total FCA Group companies 49,782 13,683 203 22,402 47,882 26,547 1,481 30,638 Exor Group companies (excluding the FCA Group) 350 9 237 207 377 13 — 4 Other related parties 147 2,565 1,295 1,835 208 1,999 5 — Total transactions with related parties 50,279 16,257 1,735 24,444 48,467 28,559 1,486 30,642 Total for the Group 231,439 711,539 92,830 800,015 211,399 653,751 64,295 589,743 ______________________________ (1) FCA completed the sale of Magneti Marelli on May 2, 2019, following which Magneti Marelli (which subsequently operates under the name “Marelli”) is no longer a related party. There were no financial assets or financial liabilities originating from related party transactions at December 31, 2019 or December 31, 2018. Emoluments to Directors and Key Management The fees of the Directors of Ferrari N.V. are as follows: For the years ended December 31, 2019 2018 2017 (€ thousand) Directors of Ferrari N.V. 10,260 17,043 17,767 The aggregate compensation to Directors of Ferrari N.V. for year ended December 31, 2019 was €10,260 thousand ( €17,043 thousand in 2018 and €17,767 thousand in 2017), inclusive of the following: • €1,786 thousand for salary and other short-term benefits ( €1,080 thousand in 2018 and € 1,277 thousand in 2017); and • €8,474 thousand for share-based compensation awarded under the Company’s equity incentive plans, ( €15,963 thousand in 2018, including an acceleration of the costs relating to the equity incentive plan of the former Chairman and Chief Executive Officer (Mr. Sergio Marchionne) and €16,490 thousand in 2017). See Note 21 “Share-based compensation” for additional information related to the equity incentive plans. For the year ended December 31, 2017 only, Non-Executive Directors’ compensation also included €418 thousand that was settled in common shares of the Company. There was no equity-settled compensation for Non-Executive Directors for the years ended December 31, 2019 and 2018. The aggregate compensation for members of the Senior Management Team (excluding the CEO) in 2019 was €19,839 thousand ( €16,674 thousand in 2018 and €16,015 thousand in 2017), inclusive of the following: • €14,671 thousand for salary and short-term incentives ( €13,915 thousand in 2018 and €10,964 thousand in 2017); • €5,168 thousand for share-based compensation awarded under the Company’s equity incentive plans ( €2,759 thousand in 2018 and €4,737 thousand in 2017); and • for the year ended December 31, 2017 only, €314 thousand of other long-term benefits. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2019 | |
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 supplier and sponsorship arrangements at December 31, 2019 were as follows: At December 31, 2019 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 72,352 16,208 4,403 — 92,963 Non-cancellable lease agreements The future aggregate minimum lease payments under non-cancellable leases, mainly relating to the lease of property and cars, are as follows: At December 31, 2019 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 lease agreements 20,899 17,242 10,577 14,885 63,603 |
QUALITATIVE AND QUANTITATIVE IN
QUALITATIVE AND QUANTITATIVE INFORMATION ON FINANCIAL RISKS | 12 Months Ended |
Dec. 31, 2019 | |
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 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. Derivative financial instruments can only be executed for hedging purposes. In particular, the Group used derivative financial instruments as cash flow hedges for the purpose of limiting the negative impact of foreign currency exchange rate fluctuation on forecasted transactions denominated in foreign currencies. 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 19. 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 2019 , the total trade flows exposed to foreign currency exchange rate risk amounted to the equivalent of 53 percent of the Group’s net revenues ( 49 percent in 2018 ). • 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 2019 , the value of commercial activity exposed to fluctuations in the Euro/U.S. Dollar exchange rate accounted for approximately 53 percent ( 57 percent in 2018 ) of the total currency risk from commercial activity. In 2019, the commercial activities exposed to the Euro/Pound Sterling exchange rate and to the Euro/Japanese Yen exchange rate exceeded 10 percent (in 2018 only Euro/Pound Sterling exceeded 10 percent ) of the total currency risk from commercial activity. Other significant exposures included the exchange rate between the Euro and the following currencies: Swiss Franc, Chinese Renminbi, 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 2019 . It is the Group’s policy to use derivative financial instruments (primarily forward currency contracts, currency swaps and currency options) to hedge up to 90 percent of certain exposures 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 (branch), Switzerland, Mainland China, Hong Kong, Japan, Australia and Singapore. As the Group’s reporting currency is the Euro, the income statements of those companies are translated 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 translation 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 Group uses specific financial derivatives to hedge certain of these exposures. The impact of foreign currency exchange rate differences recorded within financial income/(expenses) for the year ended December 31, 2019 , except for those arising on financial instruments measured at fair value, amounted to net losses of €24,237 thousand (net losses of €13,293 thousand and €18,059 thousand for the years ended December 31, 2018 and 2017 , respectively). All of the Group’s financial services activities are conducted in the functional currency of the related financial services companies, therefore the impact of foreign currency exchange rate differences arising from financial services activities is nil in all periods presented. Except as noted above, there have been no substantial changes in 2019 in the nature or structure of exposure to foreign currency exchange rate risk or in the Group’s hedging policies. The potential decrease in fair value of derivative financial instruments held by the Group at December 31, 2019 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 €74,700 thousand ( €106,400 thousand at December 31, 2018 ). 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. The sensitivity analysis is based on currency hedging in place at the end of the period, which can vary during the period and assumes unchanged market conditions other than exchange rates, such as volatility and interest rates. For this reason, it is purely indicative. 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, 2019 were cash and cash equivalents and certain receivables from financing activities (related to client and dealer financing), while 39 percent of the Group’s gross debt bears floating rates of interest. At December 31, 2019 , a decrease of 10 basis points 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 €205 thousand on an annual basis (a decrease of €251 thousand at December 31, 2018 ). 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 19 and 25. Details of the repayment of derivative financial instruments are provided in Note 19. The Group has a revolving credit facility of €350 million at December 31, 2019 which was entirely undrawn ( €500 million and entirely undrawn at December 31, 2018). The Group believes that its total available liquidity (defined as cash and cash equivalents plus undrawn committed credit lines), in addition to funds 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, 2019 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 €966,448 thousand at December 31, 2019 ( €878,496 thousand at December 31, 2018 ) are shown net of the allowance for doubtful accounts amounting to €7,480 thousand ( €6,457 thousand at December 31, 2018 ). After considering the allowance for doubtful accounts, €59,448 thousand of receivables were overdue (€ 53,800 thousand at December 31, 2018 ). Therefore, overdue receivables represent a minor portion of receivables from financing activities. Receivables from financing activities relate entirely to the financial services portfolio in the United States and such receivables are generally secured on the titles of cars or other guarantees. Trade receivables amounting to €231,439 thousand at December 31, 2019 ( €211,399 thousand at December 31, 2018 ) are shown net of the allowance for doubtful accounts amounting to €27,171 thousand ( €24,346 thousand at December 31, 2018 ). After considering the allowance for doubtful accounts, €46,778 thousand of receivables were overdue (€ 36,772 thousand at December 31, 2018 ). |
ENTITY-WIDE DISCLOSURES
ENTITY-WIDE DISCLOSURES | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 (€ thousand) Italy 363,779 449,312 563,921 Rest of EMEA 1,636,831 1,400,443 1,308,261 Americas (1) 1,010,204 922,639 920,858 Mainland China, Hong Kong and Taiwan 350,330 274,268 282,550 Rest of APAC (2) 405,471 373,659 341,300 Total net revenues 3,766,615 3,420,321 3,416,890 ______________________________ (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, South Korea, Thailand and Malaysia. The following table presents an analysis of non-current assets other than financial instruments and deferred tax assets by geographic location: At December 31, 2019 2018 Property, plant and equipment Goodwill Intangible assets Property, plant and equipment Goodwill Intangible assets (€ thousand) Italy 1,043,821 785,182 837,682 844,218 785,182 644,689 Rest of EMEA 6,309 — — 2,251 — — Americas (1) 14,803 — — 3,327 — 850 Mainland China, Hong Kong and Taiwan 1,574 — — 351 — — Rest of APAC (2) 3,145 — 256 403 — 258 Total 1,069,652 785,182 837,938 850,550 785,182 645,797 ______________________________ (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, South Korea, Thailand and Malaysia. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Group has evaluated subsequent events through February 18, 2020, which is the date the Consolidated Financial Statements were authorized for issuance. Under the common share repurchase program, from January 1, 2020 to February 14, 2020, the Company has repurchased an additional 209,326 common shares for a total consideration of €153.2 million . At February 14, 2020 the Company held in treasury an aggregate of 8,849,502 common shares. On February 18, 2020, the Board of Directors of Ferrari N.V. recommended to the Company’s shareholders that the Company declare a dividend of €1.13 per common share, totaling approximately €210 million . The proposal is subject to the approval of the Company’s shareholders at the Annual General Meeting to be held on April 16, 2020. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
New standards and amendments | New standards and amendments effective from January 1, 2019 The following new standards and amendments that are applicable from January 1, 2019 were adopted by the Group for the preparation of these Consolidated Financial Statements. IFRS 16 - Leases Transition impact The Group applied the simplified transition approach and has therefore recognized the impacts of adoption at January 1, 2019 without restating comparative figures for the period prior to adoption. The Group elected to use the exemptions permitted on transition for short term leases (contracts in which the lease terms ends within 12 months of the date of initial application) and lease contracts for which the underlying asset is of low value. Upon adoption, the Group recognized right-of-use assets and corresponding lease liabilities in relation to leases which had previously been classified as operating lease under IAS 17, measured at the present value of the remaining lease payments over the lease term that have not been paid at the date of adoption, discounted using the Group’s incremental borrowing rate as of January 1, 2019, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. At January 1, 2019 this rate ranged from 1 percent to 5 percent based primarily on the country of the lessee and the remaining lease term of the underlying leased assets. The lease term includes both the non-cancellable periods for which the Group has the right to use the underlying assets and also any renewal periods if the Group is reasonably certain to exercise the related renewal option. As of January 1, 2019, after considering the exemptions mentioned above, the Group had non-cancellable operating lease commitments of approximately €74,930 thousand . Of these commitments, the Group recognized right-of-use assets and related lease liabilities of €63,535 thousand . The main contracts within the scope of IFRS 16 for which the Group is lessee primarily relate to Ferrari stores (included within other assets) and industrial buildings. At December 31, At January 1, (€ thousand) Industrial buildings 15,834 17,226 Plant, machinery and equipment 7,612 10,011 Other assets 34,319 36,298 Right-of-use assets 57,765 63,535 At January 1, (€ thousand) Non-cancellable operating lease commitments 74,930 Lease contracts for which the underlying asset is of low value (1,008 ) Lease contracts for which the lease terms ends within 12 months (2,420 ) Discount of remaining lease payments (7,967 ) Lease liabilities 63,535 Upon adoption the Group did not recognize any deferred tax assets or liabilities in respect of temporary differences arising on initial recognition of right-of-use assets and lease liabilities as the initial recognition does not affect accounting profit or taxable profit. For the year ended December 31, 2019 the impact of adopting the new standard resulted in the recognition of €17,067 thousand of depreciation of right-of-use assets and €1,172 thousand of financial expenses. Lease expenses that would have been recognized in the income statement under the previous lease standard, IAS 17, would have been €17,380 thousand . There were no impacts arising on the application of IFRS 16 from the Group’s activities as lessor. See “Leases” below for a description of the Group’s accounting policy with respect to leases. IFRIC Interpretation 23 - Uncertainty over Income Tax Treatments The Group adopted IFRIC Interpretation 23 - Uncertainty over Income Tax Treatments . The interpretation provides provides specific guidance to recognise and measure the accounting impact of tax uncertainties which IAS 12 did not address. Particularly, IFRIC 23 specifies how to determine the unit of account and the recognition and measurement guidance to be applied to that unit, as well as when to reconsider the accounting for a tax uncertainty. The interpretation is effective on or after January 1, 2019. The Group has reviewed its previously designed model to account for tax uncertainties and assessed that it is consistent with the more specific IFRIC 23 requirements. Amendments to IFRS 9 - Financial Instruments The Group adopted Amendments to IFRS 9 - Financial Instruments . These amendments 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 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. There was no effect from the adoption of these amendments. Amendments to IAS 28 - Long-term Interests in Associates and Joint Ventures The Group adopted Amendments to IAS 28 - Long-term Interests in Associates and Joint Ventures . These amendments 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 amendments are effective on or after January 1, 2019. There was no effect from the adoption of these amendments. Amendments to IAS 19 - Employee Benefits The Group adopted Amendments to IAS 19 - Employee Benefits . These amendments require that when there is a change to a defined benefit plan (an amendment, curtailment or settlement) the company use the adopted 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. The amendments are effective on or after January 1, 2019. There was no effect from the adoption of these amendments. Annual Improvements to IFRSs 2015-2017 Cycle The Group adopted Annual Improvements to IFRSs 2015-2017 Cycle . The improvements have amended four standards with effective date of January 1, 2019: i) IFRS 3 - Business Combinations , in relation to obtaining control of a business which was previously accounted for as an interest in a joint operation; ii) IFRS 11 - Joint Arrangements , in relation to obtaining joint control of a business which was previously accounted for as a joint operation; iii) IAS 12 - Income Taxes , clarifying the treatment of taxes in relation to dividend payments; and iv) 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. 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 2020 or subsequent years are listed below: 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 October 2018 the IASB issued narrow scope amendments to IFRS 3 - Business Combinations to improve the definition of a business. The amendments aim to help companies determine whether an acquisition made is of a business or a group of assets. The amended definition emphasizes that the output of a business is to provide goods and services to customers, whereas the previous definition focused on returns in the form of dividends, lower costs or other economic benefits to investors and others. In addition to amending the definition of a business, supplementary guidance is provided. These amendments are effective on or after January 1, 2020. The Group does not expect any material impact from the adoption of these amendments. In October 2018 the IASB issued amendments to IAS 1 - Presentation of Financial Statements and IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors to clarify the definition of ‘material’, as well as how materiality should be applied by including in the definition guidance that is included elsewhere in IFRS standards. In addition, the explanations accompanying the definition have been improved and the amendments ensure that the definition of material is consistent across all IFRS standards. These amendments are effective on or after January 1, 2020. The Group does not expect any material impact from the adoption of these amendments. In September 2019 the IASB issued amendments to IFRS 9 - Financial Instruments, IAS 39 - Financial Instruments: Recognition and Measurement and IFRS 7 - Financial Instruments: Disclosures , collectively the “Interest Rate Benchmark Reform”. These amendments modify certain hedge accounting requirements in order to provide relief from potential effects of the uncertainty caused by the interbank offered rates (IBOR) reform and require companies to provide additional information to investors about their hedging relationships that are directly affected by these uncertainties. These amendments are effective on or after January 1, 2020. The Group does not expect any material impact from the adoption of these amendments. In January 2020 the IASB issued amendments to IAS 1 - Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current to clarify how to classify debt and other liabilities as current or non-current, and in particular how to classify liabilities with an uncertain settlement date and liabilities that may be settled by converting to equity. These amendments are effective on or after January 1, 2022. The Group does not expect any material impact from the adoption of these amendments. Review of the Conceptual Framework for Financial Reporting In March 2018 the IASB revised the Conceptual Framework for Financial Reporting, effective immediately for the IASB and the IFRS Interpretations Committee when setting future standards, and effective for annual reporting periods on or after January 1, 2020 for companies that use the Conceptual Framework to develop accounting policies when no IFRS Standard applies to a particular transaction, with early application permitted. Key changes include (i) increasing the prominence of stewardship in the objective of financial reporting; (ii) reinstating prudence as a component of neutrality, defined as the exercise of caution when making judgements under conditions of uncertainty; (iii) defining a reporting entity; (iv) revising the definitions of an asset and a liability; (v) removing the probability threshold for recognition, and adding guidance on derecognition; (vi) adding guidance on the information provided by different measurement bases, and explaining factors to consider when selecting a measurement basis; and (vii) stating that profit or loss is the primary performance indicator and income and expenses in other comprehensive income should be recycled where the relevance or faithful representation of the financial statements would be enhanced. The Group does not expect a material impact from the adoption of the revised Conceptual Framework . |
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 | 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 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 and 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 or 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. |
Leases | Leases With the adoption of IFRS 16, the Group recognizes a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use. Each lease payment is allocated between the principal liability and finance costs. Finance costs are charged to the income statement over the lease period using the effective interest rate method. The right-of-use asset is depreciated on a straight-line basis over the lease term. Right-of-use assets are measured at cost comprising the following: (i) the amount of the initial measurement of lease liability; (ii) any lease payments made at or before the commencement date less any lease incentives received; (iii) any initial direct costs and, if applicable, (iv) restoration costs. Payments associated with short-term leases and leases of low-value assets are recognized as an expense in the income statement on a straight-line basis. Lease liabilities are measured at the net present value of the following: (i) fixed lease payments, (ii) variable lease payments that are based on an index or a rate and, if applicable, (iii) amounts expected to be payable by the lessee under residual value guarantees, and (iv) the exercise price of a purchase option if the lessee is reasonably certain to exercise that option. Lease liabilities do not include any non-lease components that may be included in the related contracts. Lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group’s incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Some lease contracts contain variable payment terms that are linked to sales generated from Ferrari stores. Variable lease payments that depend on sales are recognized in the income statement in the period in which the condition that triggers those payments occurs. Extension and termination options are included in a number of leases related to Ferrari stores, warehouses and machinery and equipment of the Group. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). |
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 Current financial assets include trade receivables, receivables from financing activities, derivative financial instruments, other current financial assets and cash and cash equivalents. Investments and other financial assets include investments accounted for using the equity method as well as other securities and non-current financial assets. Financial liabilities include debt (which primarily includes bonds, notes, asset-backed financing (securitizations) and borrowings from banks), trade payables and other financial liabilities, which mainly include derivative financial instruments. Measurement Financial assets, other than investments accounted for using the equity method, and financial liabilities are measured in accordance with IFRS 9. Except for investments accounted for using the equity method, the Group initially measures financial assets at fair value plus, in the case of financial assets not measured at fair value through profit or loss, transaction costs. Equity instruments held by the Group are recognized at fair value through profit or loss. When market prices are not directly available, the fair value is measured using appropriate valuation techniques (e.g. discounted cash flow analysis based on market information available at the balance sheet date). As permitted by IFRS 9, equity investments for which there is no quoted market price in an active market and there is insufficient financial information in order to determine fair value may be measured at cost as an estimate of fair value. Trade receivables and receivables from financing activities are originated in the ordinary course of business and held within a business model with the objective to hold the receivables in order to collect contractual cash flows that meet the ‘solely payments of principal and interest’ criterion under IFRS 9, therefore they are measured at amortized cost using the effective interest rate method. Receivables with maturities greater than one year are discounted to present value. Assessments are made regularly as to whether there is any objective evidence that a financial asset or group of financial assets may be impaired. Under IFRS 9, a forward-looking expected credit loss model must be applied when assessing impairment. In making impairment assessments, the Group applies the standard simplified approach to estimate the lifetime expected credit losses and considers its historical credit loss experience, adjusted for forward-looking factors specific to the nature of the Group’s receivables and economic environment. If any such evidence exists, an impairment loss is recognized within financial expenses. Financial liabilities, with the exception of derivative financial instruments, 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 only in order to reduce currency risks. 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/expenses. 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 does not use fair value hedges or hedges of a net investment. If hedge accounting cannot be applied, the gains or losses from the fair value measurement of derivative financial instruments are recognized immediately within financial expenses. |
Transfers of financial assets | Transfers of financial assets The Group sells certain of its receivables from financing activities under securitization programs. Securitization transactions involve the sale 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 receivables sold as part of securitization programs are still consolidated until collection from the customer. The Group may also sell certain of its trade receivables through factoring transactions without recourse. 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 within cost of sales in the consolidated income statement. |
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. |
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 equity incentive plans that provide for the granting of share-based compensation to the Chairman, the Chief Executive Officer, all other members of the Senior Management Team (“SMT”) and other key employees of the Group. The equity incentive plans are 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 plans 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. 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 affected 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, Icona, 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 Revenue is recognized when control over a product or service is transferred to a customer. Revenue is measured at the transaction price which is based on the amount of consideration that the Group expects to receive in exchange for transferring the promised goods or services to the customer and excludes any sales incentives as well as taxes collected from customers that are remitted to government authorities. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. The Group enters into contracts that may include both products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The Group generates revenue from the sale of cars, spare parts and engines as well as from sponsorship, commercial and brand activities. The Group accounts for a contract with a customer when there is a legally enforceable contract between the Group and the customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. Payments from customers are typically due within 30 and 40 days of invoicing. The Group does not recognize any assets associated with the incremental costs of obtaining a contract with a customer that are expected to be recovered. The majority of revenue is recognized at a point-in-time or over a period of one year or less, and the Group applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would otherwise be recognized is one year or less. Cars, spare parts and engines The sales of cars, spare parts and engines have multiple performance obligations that include products, services, or a combination of products and services as contracts may include maintenance programs and extended warranties that are separately priced or not separately priced. Contracts may also include variable consideration for discounts such as sales incentives and performance based bonuses and product returns. The cost of incentives is estimated at the inception of a contract at the expected amount that will ultimately be paid and is recognized as a reduction to revenue at the time of the sale. Revenues recognized are limited to the amount of consideration the Group expects to receive. The Group allocates the transaction price to the performance obligations based on the stand alone selling prices (SSP) for each obligation. When the SSP does not exist, the Group estimates the SSP based on the adjusted market approach. Revenues for the sale of cars, spare parts and engines are recognized at a point in time when control of the cars, spare parts or engines is transferred to the customer based on shipping terms, which generally corresponds to the date when the cars, spare parts and engines are released to the carrier responsible for transportation to dealers or Maserati. Revenues relating to the maintenance program or extended warranty are recognized over time as the maintenance program or extended warranty is provided. Revenues from the supply of engines and related services to other Formula 1 racing teams are recognized over time on a time and materials basis when the services are provided. Management has exercised judgment in determining performance obligations, variable consideration, allocation of transaction price and the timing of revenue recognition. Sponsorship, commercial and brand activities Revenues from sponsorship agreements are generally recognized ratably over the contract term as the customer benefits from the service throughout the service period. For sponsorship agreements that contain variable consideration based on performance of the racing team, the related revenues are estimated and recognized over the relevant period to the extent that it is highly probable that a significant reversal in the amount of the cumulative revenue recognized will not occur, which is typically when it is considered highly probable that the related conditions associated with the variable consideration will be achieved. Revenues from commercial activities primarily relate to the revenues 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 ratably over the contract term. Revenues from brand licensing agreements where the customer has a right to access the Group’s brands or the contract includes minimum guaranteed payments are recognized on a straight-line basis over the contract term. Licensing revenues in excess of the minimum guaranteed payments are recognized when the related conditions are satisfied. Revenues from sales-based licensing agreements are recognized when the sales occur. Management has exercised judgment in determining variable consideration. Other revenues Interest income generated by our financial service activities from the provision of client and dealer financing is reported within revenues using the effective interest rate method and not within net financial income/expenses. |
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. |
Other expenses and other income | Other expenses and other income Other expenses consist of miscellaneous costs which cannot be allocated to specific functional areas, such as indirect taxes, accruals for provisions not attributable to cost of sales or selling, general and administrative costs, and other miscellaneous expenses. Other income consists of miscellaneous income that is not directly attributable to the sale of goods or services, such as gains on the disposal of property plant and equipment, the release of certain provisions originally recognized as other expenses, rental income and other miscellaneous income. |
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. |
Other taxes not based on income | Other taxes not based on income, such as property taxes and capital taxes, are included in other expenses, 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. |
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 the 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 warranty 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. |
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. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Disclosure of quantitative information about right-of-use assets | The main contracts within the scope of IFRS 16 for which the Group is lessee primarily relate to Ferrari stores (included within other assets) and industrial buildings. At December 31, At January 1, (€ thousand) Industrial buildings 15,834 17,226 Plant, machinery and equipment 7,612 10,011 Other assets 34,319 36,298 Right-of-use assets 57,765 63,535 The following table summarizes the changes in the carrying amount of right-of-use assets for the year ended December 31, 2019: Industrial buildings Plant, machinery and equipment Other assets Total (€ thousand) Balance at December 31, 2018 (*) 9 — 765 774 Impact of IFRS 16 adoption 17,226 10,011 36,298 63,535 Balance at January 1, 2019 17,235 10,011 37,063 64,309 Additions 3,532 2,800 6,428 12,760 Depreciation (4,664 ) (5,023 ) (7,380 ) (17,067 ) Translation differences and other movements (269 ) (176 ) (1,792 ) (2,237 ) Balance at December 31, 2019 15,834 7,612 34,319 57,765 ___________________________ (*) Relates to lease assets that were previously recognized as ‘finance leases’ under IAS 17 - Leases. |
Disclosure of quantitative information about lease liabilities | At January 1, (€ thousand) Non-cancellable operating lease commitments 74,930 Lease contracts for which the underlying asset is of low value (1,008 ) Lease contracts for which the lease terms ends within 12 months (2,420 ) Discount of remaining lease payments (7,967 ) Lease liabilities 63,535 |
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: 2019 2018 2017 Average At December 31, Average At December 31, Average At December 31, U.S. Dollar 1.1195 1.1234 1.1810 1.1450 1.1297 1.1993 Pound Sterling 0.8778 0.8508 0.8847 0.8945 0.8767 0.8872 Swiss Franc 1.1124 1.0854 1.1550 1.1269 1.1117 1.1702 Japanese Yen 122.0058 121.9400 130.3959 125.8500 126.7112 135.0100 Chinese Yuan 7.7355 7.8205 7.8081 7.8751 7.6290 7.8044 Australian Dollar 1.6109 1.5995 1.5797 1.6220 1.4732 1.5346 Canadian Dollar 1.4855 1.4598 1.5294 1.5605 1.4647 1.5039 Singapore Dollar 1.5273 1.5111 1.5926 1.5591 1.5588 1.6024 Hong Kong Dollar 8.7715 8.7473 9.2559 8.9675 8.8045 9.3720 |
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, 2019 | |
Scope of Consolidation [Abstract] | |
Disclosure of scope of consolidation | At December 31, 2019 2018 (€ thousand) Equity attributable to non-controlling interests 5,998 5,117 For the years ended December 31, 2019 2018 2017 (€ thousand) Net profit attributable to non-controlling interests 2,890 1,949 2,003 The Group’s scope of consolidation at December 31, 2019 and 2018 was as follows: At December 31, 2019 At December 31, 2018 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 Europe GmbH (1) Germany Service company 100 % — % 100 % — % G.S.A. S.A. Switzerland Service company 100 % — % 100 % — % Mugello Circuit S.p.A. Italy Racetrack management 100 % — % 100 % — % Ferrari Financial Services Inc. USA Financial services 100 % — % 100 % — % Indirectly held through other Group entities Ferrari Auto Securitization Transaction, LLC (2) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction - Lease, LLC (2) USA Financial services 100 % — % 100 % — % Ferrari Auto Securitization Transaction - Select, LLC (2) USA Financial services 100 % — % 100 % — % Ferrari Financial Services Titling Trust (2) USA Financial services 100 % — % 100 % — % 410, Park Display Inc. (3) USA Retail 100 % — % 100 % — % _____________________________ (1) Changed its name from Ferrari Central East Europe GmbH to Ferrari Central Europe GmbH, effective December 2, 2019. (2) Shareholding held by Ferrari Financial Services Inc. (3) Shareholding held by Ferrari North America Inc. |
NET REVENUES (Tables)
NET REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Disclosure of net revenues | Net revenues are as follows: For the years ended December 31, 2019 2018 2017 (€ thousand) Cars and spare parts 2,925,721 2,535,245 2,455,955 Engines 198,308 284,546 373,313 Sponsorship, commercial and brand 538,238 505,701 494,082 Other 104,348 94,829 93,540 Total net revenues 3,766,615 3,420,321 3,416,890 |
RESEARCH AND DEVELOPMENT COSTS
RESEARCH AND DEVELOPMENT COSTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Disclosure of research and development costs | Research and development costs are as follows: For the years ended December 31, 2019 2018 2017 (€ thousand) Research and development costs expensed during the year 559,582 527,847 556,617 Amortization of capitalized development costs 139,629 115,191 100,502 Total research and development costs 699,211 643,038 657,119 |
NET FINANCIAL EXPENSES (Tables)
NET FINANCIAL EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Financial income: (€ thousand) Interest income from bank deposits 1,690 1,445 1,153 Other interest income and financial income 4,116 677 5,284 Interest income and other financial income 5,806 2,122 6,437 Finance income from financial services activities 66,386 52,702 50,254 Total financial income 72,192 54,824 56,691 Total financial income relating to: Industrial activities (A) 5,806 2,122 6,437 Financial services activities (reported in net revenues) 66,386 52,702 50,254 Financial expenses: Capitalized borrowing costs 2,671 2,884 1,578 Other interest cost and financial expenses (2,427 ) (1,046 ) (3,775 ) Interest expenses and other financial expenses 244 1,838 (2,197 ) Interest expenses from banks (27,432 ) (21,486 ) (23,057 ) Interest and other finance costs on bonds and notes (20,703 ) (12,386 ) (9,231 ) Write-downs of financial receivables (4,739 ) (3,326 ) (3,530 ) Other financial expenses (13,949 ) (8,494 ) (12,008 ) Total financial expenses (66,579 ) (43,854 ) (50,023 ) Net expenses from derivative financial instruments and foreign currency exchange rate differences (26,392 ) (15,659 ) (16,619 ) Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences (92,971 ) (59,513 ) (66,642 ) Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences relating to: Industrial activities (B) (47,888 ) (25,685 ) (35,697 ) Financial services activities (reported in cost of sales) (45,083 ) (33,828 ) (30,945 ) Net financial expenses relating to industrial activities (A+B) (42,082 ) (23,563 ) (29,260 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income taxes [Abstract] | |
Disclosure of income taxes | Income tax expense is as follows: For the years ended December 31, 2019 2018 2017 (€ thousand) Current tax expense 137,303 95,076 201,274 Deferred tax expense 32,145 66,325 8,718 Taxes relating to prior periods 7,208 (145,084 ) (1,232 ) Total income tax expense 176,656 16,317 208,760 |
Income tax reconciliation | The table below provides a reconciliation between actual income tax expense and the theoretical income tax expense, calculated on the basis of the applicable corporate tax rate in effect in Italy, which was 24.0 percent for each of the years ended December 31, 2019 , 2018 and 2017 . For the years ended December 31, 2019 2018 2017 (€ thousand) Theoretical income tax expense, net of IRAP 210,088 192,706 179,077 Tax effect on: Permanent and other differences (76,187 ) (58,877 ) (7,061 ) Effect of changes in tax rate and tax regulations 733 — 4,862 Differences between foreign tax rates and the theoretical Italian tax rate and tax holidays 3,457 1,216 2,344 Taxes relating to prior years 7,208 (145,084 ) (1,232 ) Withholding tax on earnings 3,360 1,514 2,420 Total income tax expense/(benefit), net of IRAP 148,659 (8,525 ) 180,410 Effective tax rate, net of IRAP 17.0 % (1.1 )% 24.2 % IRAP (current and deferred) 27,997 24,842 28,350 Total income tax expense 176,656 16,317 208,760 |
Disclosure of deferred tax liabilities | The analysis of deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 , is as follows: At December 31, 2019 2018 (€ thousand) Deferred tax assets: To be recovered after 12 months 16,445 27,297 To be recovered within 12 months 57,238 33,447 73,683 60,744 Deferred tax liabilities: To be realized after 12 months (77,334 ) (14,497 ) To be realized within 12 months (4,874 ) (24,645 ) (82,208 ) (39,142 ) Net deferred tax (liabilities)/assets (8,525 ) 21,602 |
Disclosure of deferred tax assets | The analysis of deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 , is as follows: At December 31, 2019 2018 (€ thousand) Deferred tax assets: To be recovered after 12 months 16,445 27,297 To be recovered within 12 months 57,238 33,447 73,683 60,744 Deferred tax liabilities: To be realized after 12 months (77,334 ) (14,497 ) To be realized within 12 months (4,874 ) (24,645 ) (82,208 ) (39,142 ) Net deferred tax (liabilities)/assets (8,525 ) 21,602 |
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, 2018 Recognized in consolidated income statement Charged to equity Translation At December 31, 2019 (€ thousand) Deferred tax assets arising on: Provisions 108,147 (8,181 ) — 332 100,298 Deferred income 51,578 2,265 — — 53,843 Employee benefits 2,474 — 456 — 2,930 Cash flow hedge reserve 1,176 — 610 — 1,786 Foreign currency exchange rate differences 859 578 — — 1,437 Inventory obsolescence 38,275 13,626 — 71 51,972 Allowances for doubtful accounts 4,301 1,104 — 2 5,407 Depreciation 17,241 321 — 2 17,564 Other 11,147 5,858 690 17,695 Total deferred tax assets 235,198 15,571 1,066 1,097 252,932 Deferred tax liabilities arising on: Depreciation (9,303 ) 572 — (150 ) (8,881 ) Capitalization of development costs (171,707 ) (53,144 ) — — (224,851 ) Employee benefits (670 ) (80 ) — — (750 ) Exchange rate differences (149 ) (251 ) — 1 (399 ) Cash flow hedge reserve (1 ) 1 — — — Tax on undistributed earnings (16,371 ) 2,388 — — (13,983 ) Other (15,395 ) 2,798 — 4 (12,593 ) Total deferred tax liabilities (213,596 ) (47,716 ) — (145 ) (261,457 ) Total net deferred tax assets/(liabilities) 21,602 (32,145 ) 1,066 952 (8,525 ) At December 31, 2017 Recognized in consolidated income statement Charged to equity Translation At December 31, 2018 (€ thousand) Deferred tax assets arising on: Provisions 102,243 5,249 — 655 108,147 Deferred income 46,198 3,131 — 2,249 51,578 Employee benefits 2,562 — (88 ) — 2,474 Cash flow hedge reserve (2,432 ) — 3,608 — 1,176 Foreign currency exchange rate differences 740 119 — — 859 Inventory obsolescence 37,615 521 — 139 38,275 Allowances for doubtful accounts 3,999 303 — (1 ) 4,301 Depreciation 16,570 399 — 272 17,241 Other 12,383 1,876 — (3,112 ) 11,147 Total deferred tax assets 219,878 11,598 3,520 202 235,198 Deferred tax liabilities arising on: Depreciation (8,930 ) (24 ) — (349 ) (9,303 ) Capitalization of development costs (114,775 ) (56,932 ) — — (171,707 ) Employee benefits (1,868 ) (161 ) — 1,359 (670 ) Exchange rate differences (647 ) 501 — (3 ) (149 ) Cash flow hedge reserve (1 ) — — — (1 ) Tax on undistributed earnings — (16,371 ) — — (16,371 ) Other (10,652 ) (4,936 ) — 193 (15,395 ) Total deferred tax liabilities (136,873 ) (77,923 ) — 1,200 (213,596 ) Deferred tax assets arising on tax loss carry-forward 109 — — (109 ) — Total net deferred tax assets 83,114 (66,325 ) 3,520 1,293 21,602 |
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, 2018 Recognized in consolidated income statement Charged to equity Translation At December 31, 2019 (€ thousand) Deferred tax assets arising on: Provisions 108,147 (8,181 ) — 332 100,298 Deferred income 51,578 2,265 — — 53,843 Employee benefits 2,474 — 456 — 2,930 Cash flow hedge reserve 1,176 — 610 — 1,786 Foreign currency exchange rate differences 859 578 — — 1,437 Inventory obsolescence 38,275 13,626 — 71 51,972 Allowances for doubtful accounts 4,301 1,104 — 2 5,407 Depreciation 17,241 321 — 2 17,564 Other 11,147 5,858 690 17,695 Total deferred tax assets 235,198 15,571 1,066 1,097 252,932 Deferred tax liabilities arising on: Depreciation (9,303 ) 572 — (150 ) (8,881 ) Capitalization of development costs (171,707 ) (53,144 ) — — (224,851 ) Employee benefits (670 ) (80 ) — — (750 ) Exchange rate differences (149 ) (251 ) — 1 (399 ) Cash flow hedge reserve (1 ) 1 — — — Tax on undistributed earnings (16,371 ) 2,388 — — (13,983 ) Other (15,395 ) 2,798 — 4 (12,593 ) Total deferred tax liabilities (213,596 ) (47,716 ) — (145 ) (261,457 ) Total net deferred tax assets/(liabilities) 21,602 (32,145 ) 1,066 952 (8,525 ) At December 31, 2017 Recognized in consolidated income statement Charged to equity Translation At December 31, 2018 (€ thousand) Deferred tax assets arising on: Provisions 102,243 5,249 — 655 108,147 Deferred income 46,198 3,131 — 2,249 51,578 Employee benefits 2,562 — (88 ) — 2,474 Cash flow hedge reserve (2,432 ) — 3,608 — 1,176 Foreign currency exchange rate differences 740 119 — — 859 Inventory obsolescence 37,615 521 — 139 38,275 Allowances for doubtful accounts 3,999 303 — (1 ) 4,301 Depreciation 16,570 399 — 272 17,241 Other 12,383 1,876 — (3,112 ) 11,147 Total deferred tax assets 219,878 11,598 3,520 202 235,198 Deferred tax liabilities arising on: Depreciation (8,930 ) (24 ) — (349 ) (9,303 ) Capitalization of development costs (114,775 ) (56,932 ) — — (171,707 ) Employee benefits (1,868 ) (161 ) — 1,359 (670 ) Exchange rate differences (647 ) 501 — (3 ) (149 ) Cash flow hedge reserve (1 ) — — — (1 ) Tax on undistributed earnings — (16,371 ) — — (16,371 ) Other (10,652 ) (4,936 ) — 193 (15,395 ) Total deferred tax liabilities (136,873 ) (77,923 ) — 1,200 (213,596 ) Deferred tax assets arising on tax loss carry-forward 109 — — (109 ) — Total net deferred tax assets 83,114 (66,325 ) 3,520 1,293 21,602 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 2018 and 2017 : For the years ended December 31, 2019 2018 2017 Profit attributable to owners of the Company € thousand 695,818 784,678 535,393 Weighted average number of common shares for basic earnings per common share thousand 186,767 188,606 188,951 Basic earnings per common share € 3.73 4.16 2.83 The following table provides the amounts used in the calculation of diluted earnings per share for the years ended December 31, 2019 , 2018 and 2017 : For the years ended December 31, 2019 2018 2017 Profit attributable to owners of the Company € thousand 695,818 784,678 535,393 Weighted average number of common shares (1) for diluted earnings per common share thousand 187,535 189,394 189,759 Diluted earnings per common share € 3.71 4.14 2.82 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 1,081,287 516,961 167,886 45,085 1,811,219 Additions 242,753 75,109 14,052 5,628 337,542 Reclassification — — 508 (508 ) — Translation differences and other movements — — 1,168 143 1,311 Balance at December 31, 2018 1,324,040 592,070 183,614 50,348 2,150,072 Additions 243,040 86,919 17,606 5,893 353,458 Reclassification — — 6,950 (6,950 ) — Translation differences and other movements — — (679 ) (688 ) (1,367 ) Balance at December 31, 2019 1,567,080 678,989 207,491 48,603 2,502,163 Accumulated amortization at January 1, 2018 847,129 343,348 141,806 38,480 1,370,763 Amortization 83,427 31,764 14,914 2,259 132,364 Translation differences and other movements — — 1,196 (48 ) 1,148 Balance at December 31, 2018 930,556 375,112 157,916 40,691 1,504,275 Amortization 103,812 35,817 18,677 2,158 160,464 Translation differences and other movements — — (292 ) (222 ) (514 ) Balance at December 31, 2019 1,034,368 410,929 176,301 42,627 1,664,225 Carrying amount at: January 1, 2018 234,158 173,613 26,080 6,605 440,456 December 31, 2018 393,484 216,958 25,698 9,657 645,797 December 31, 2019 532,712 268,060 31,190 5,976 837,938 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | Land Industrial Plant, machinery and equipment Other Advances and assets under construction Total (€ thousand) Gross carrying amount at 23,537 341,749 1,959,462 136,991 56,760 2,518,499 Additions 25 14,710 81,936 9,679 194,444 300,794 Divestitures — (641 ) (16,684 ) (2,740 ) (238 ) (20,303 ) Reclassification — 17,225 16,853 1,137 (35,215 ) — Translation differences and other movements 12 330 (3,130 ) (593 ) (560 ) (3,941 ) Balance at December 31, 2018 23,574 373,373 2,038,437 144,474 215,191 2,795,049 Impact of IFRS adoption at January 1, 2019 — 17,226 10,011 36,298 — 63,535 Additions 30 15,560 176,235 18,102 142,227 352,154 Divestitures — (884 ) (11,281 ) (7,673 ) (459 ) (20,297 ) Reclassification — 5,937 148,102 1,524 (155,563 ) — Translation differences and other movements 5 (2,554 ) 16 (197 ) — (2,730 ) Balance at December 31, 2019 23,609 408,658 2,361,520 192,528 201,396 3,187,711 Accumulated amortization at January 1, 2018 — 142,260 1,555,769 110,210 — 1,808,239 Depreciation — 10,407 136,793 9,184 — 156,384 Divestitures — (627 ) (15,976 ) (2,621 ) — (19,224 ) Translation differences and other movements — 2,864 (1,050 ) (2,714 ) — (900 ) Balance at December 31, 2018 — 154,904 1,675,536 114,059 — 1,944,499 Depreciation — 15,443 159,302 16,737 — 191,482 Divestitures — (417 ) (11,001 ) (3,917 ) — (15,335 ) Translation differences and other movements — (2,798 ) 2 209 — (2,587 ) Balance at December 31, 2019 — 167,132 1,823,839 127,088 — 2,118,059 Carrying amount at: January 1, 2018 23,537 199,489 403,693 26,781 56,760 710,260 December 31, 2018 23,574 218,469 362,901 30,415 215,191 850,550 December 31, 2019 23,609 241,526 537,681 65,440 201,396 1,069,652 of which right-of use assets under IFRS 16 — 15,834 7,612 34,319 — 57,765 |
Disclosure of quantitative information about right-of-use assets | The main contracts within the scope of IFRS 16 for which the Group is lessee primarily relate to Ferrari stores (included within other assets) and industrial buildings. At December 31, At January 1, (€ thousand) Industrial buildings 15,834 17,226 Plant, machinery and equipment 7,612 10,011 Other assets 34,319 36,298 Right-of-use assets 57,765 63,535 The following table summarizes the changes in the carrying amount of right-of-use assets for the year ended December 31, 2019: Industrial buildings Plant, machinery and equipment Other assets Total (€ thousand) Balance at December 31, 2018 (*) 9 — 765 774 Impact of IFRS 16 adoption 17,226 10,011 36,298 63,535 Balance at January 1, 2019 17,235 10,011 37,063 64,309 Additions 3,532 2,800 6,428 12,760 Depreciation (4,664 ) (5,023 ) (7,380 ) (17,067 ) Translation differences and other movements (269 ) (176 ) (1,792 ) (2,237 ) Balance at December 31, 2019 15,834 7,612 34,319 57,765 ___________________________ (*) Relates to lease assets that were previously recognized as ‘finance leases’ under IAS 17 - Leases. |
Disclosure of amounts recognized in Income Statement in relation to leases | Amounts recognized in the income statement in relation to leases for the year ended December 31, 2019 were as follows: For the year ended December 31, 2019 (€ thousand) Depreciation of right-of-use assets 17,067 Interest expense on lease liabilities 1,172 Variable lease payments not included in the measurement of lease liabilities 1,143 Expenses relating to short-term leases and leases of low-value assets 4,635 Total expenses recognized 24,017 |
INVESTMENTS AND OTHER FINANCI_2
INVESTMENTS AND OTHER FINANCIAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments and other financial assets [Abstract] | |
Disclosure of investments | At December 31, 2019 2018 (€ thousand) Investments accounted for using the equity method 30,012 25,972 Other securities and financial assets 8,704 6,162 Total investments and other financial assets 38,716 32,134 Changes in the investments accounted for using the equity method were as follows: (€ thousand) Balance at January 1, 2018 23,340 Proportionate share of net profit for the year ended December 31, 2018 2,665 Proportionate share of remeasurement of defined benefit plans (33 ) Balance at December 31, 2018 25,972 Proportionate share of net profit for the year ended December 31, 2019 4,043 Proportionate share of remeasurement of defined benefit plans (3 ) Balance at December 31, 2019 30,012 Summarized financial information relating to FFS GmbH at and for the years ended December 31, 2019 and 2018 were as follows: At December 31, 2019 2018 (€ thousand) Assets Non-current assets 2,436 1,402 Receivables from financing activities 660,883 591,482 Other current assets 8,565 12,630 Cash and cash equivalents 6,471 5,957 Total assets 678,355 611,471 Equity and liabilities Equity 58,049 49,969 Debt 604,643 546,595 Other liabilities 15,663 14,907 Total equity and liabilities 678,355 611,471 For the year ended December 31, 2019 2018 (€ thousand) Net revenues 34,680 29,446 Cost of sales 15,655 12,183 Selling, general and administrative costs 8,892 8,720 Other (income)/expenses, net (963 ) 239 Profit before taxes 11,096 8,304 Income tax expense 3,010 2,974 Net profit 8,086 5,330 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Disclosure of inventories | At December 31, 2019 2018 (€ thousand) Raw materials 85,155 74,053 Semi-finished goods 91,119 84,576 Finished goods 243,777 232,435 Total inventories 420,051 391,064 |
Disclosure of slow moving and obsolete inventory | Changes in the provision for slow moving and obsolete inventories were as follows: 2019 2018 (€ thousand) At January 1, 73,426 66,989 Provision 14,512 11,062 Use and other changes (4,265 ) (4,625 ) At December 31, 83,673 73,426 |
CURRENT RECEIVABLES AND OTHER_2
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 (€ thousand) Trade receivables 231,439 211,399 Receivables from financing activities 966,448 878,496 Current tax receivables 21,078 128,234 Other current assets 92,830 64,295 Total 1,311,795 1,282,424 |
Disclosure of trade receivables by nature | The following table sets forth a breakdown of trade receivables by nature: At December 31, 2019 2018 (€ thousand) Trade receivables due from: Dealers 74,589 64,739 FCA Group companies 49,782 47,882 Sponsorship and commercial activities 46,375 43,500 Brand activities 24,937 26,247 Other 35,756 29,031 Total 231,439 211,399 |
Disclosure of trade receivables by currency | The following table sets forth a breakdown of trade receivables by currency: At December 31, 2019 2018 (€ thousand) Trade receivables denominated in: Euro 127,226 128,396 U.S. Dollar 75,138 68,410 Pound Sterling 7,238 3,440 Chinese Yuan 2,101 1,777 Japanese Yen 11,018 1,571 Other 8,718 7,805 Total 231,439 211,399 |
Disclosure of changes in allowance for doubtful accounts | Changes in the allowance for doubtful accounts of trade receivables during the year were as follows: 2019 2018 (€ thousand) At January 1, 24,346 21,993 Provision 2,976 2,737 Use and other changes (151 ) (384 ) At December 31, 27,171 24,346 |
Disclosure of receivables from financing activities | Receivables from financing activities relate entirely to the financial services portfolio in the United States and are detailed as follows: At December 31, 2019 2018 (€ thousand) Client financing 950,842 851,209 Dealer financing 15,606 27,287 Total receivables from financing activities 966,448 878,496 |
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: 2019 2018 (€ thousand) At January 1, 6,457 6,948 Provision 4,739 2,687 Use and other changes (3,716 ) (3,178 ) At December 31, 7,480 6,457 |
Disclosure of other current assets | Other current assets are detailed as follows: At December 31, 2019 2018 (€ thousand) Italian and foreign VAT credits 48,719 20,466 Prepayments 39,856 35,758 Other 4,255 8,071 Total other current assets 92,830 64,295 |
Disclosure of current receivables and other current assets by due date | The analysis of receivables and other current assets by due date (excluding prepayments) is as follows: At December 31, 2019 Due within one year Due between one and five years Due beyond five years Overdue Total (€ thousand) Trade receivables 184,613 48 — 46,778 231,439 Receivables from financing activities 165,164 683,096 58,740 59,448 966,448 Client financing 161,753 670,901 58,740 59,448 950,842 Dealer financing 3,411 12,195 — — 15,606 Current tax receivables 20,397 681 — — 21,078 Other current assets 52,449 346 179 — 52,974 Total 422,623 684,171 58,919 106,226 1,271,939 At December 31, 2018 Due within one year Due between one and five years Due beyond five years Overdue Total (€ thousand) Trade receivables 174,627 — — 36,772 211,399 Receivables from financing activities 172,049 600,615 52,032 53,800 878,496 Client financing 144,762 600,615 52,032 53,800 851,209 Dealer financing 27,287 — — — 27,287 Current tax receivables 127,573 661 — — 128,234 Other current receivables 28,036 494 7 — 28,537 Total 502,285 601,770 52,039 90,572 1,246,666 |
CURRENT FINANCIAL ASSETS AND _2
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Disclosure of financial assets | At December 31, 2019 2018 (€ thousand) Financial derivatives 9,423 6,788 Other financial assets 1,986 3,386 Current financial assets 11,409 10,174 |
Disclosure of derivative financial instruments | The following table sets further the analysis of derivative assets and liabilities at December 31, 2019 and 2018. At December 31, 2019 2018 Positive fair Negative fair Positive fair Negative fair (€ thousand) Cash flow hedge: Foreign currency derivatives 8,039 (14,547 ) 3,240 (10,853 ) Interest rate caps 87 — 555 — Total cash flow hedges 8,126 (14,547 ) 3,795 (10,853 ) Other foreign currency derivatives 1,294 (244 ) 1,023 (489 ) Interest rate caps 3 — 1,970 — Total 9,423 (14,791 ) 6,788 (11,342 ) Foreign currency derivatives which do not meet the requirements to be recognized as cash flow hedges are presented as other foreign currency derivatives. Interest rate caps relate to derivative instruments required as part of certain of the funding from securitization programs. The following tables provide an analysis by foreign currency of outstanding derivative financial instruments based on their fair value and notional amounts: At December 31, 2019 At December 31, 2018 Fair Value Notional Amount Fair Value Notional Amount (€ thousand) Currencies: U.S. Dollar 2,826 1,338,800 (1,324 ) 487,336 Pound Sterling (4,639 ) 175,247 613 138,609 Japanese Yen 923 272,183 (2,901 ) 113,596 Swiss Franc (1,716 ) 87,632 (1,182 ) 64,229 Chinese Yuan 55 57,094 (82 ) 45,434 Other (1) (2,817 ) 106,491 322 116,476 Total amount (5,368 ) 2,037,447 (4,554 ) 965,680 ______________________________ (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, 2019 2018 2017 (€ thousand) Net (costs)/revenues (22,055 ) 3,777 19,724 Income tax benefit/(expense) 6,153 (1,054 ) (5,503 ) Total recognized in the consolidated income statement (15,902 ) 2,723 14,221 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Share Capital Reserves and Other Equity Interests [Abstract] | |
Disclosure of classes of share capital | The following table summarizes the changes in the number of outstanding common shares and outstanding special voting shares of the Company for the year ended December 31, 2019: Common Shares Special Voting Shares Total Outstanding shares at December 31, 2018 187,920,656 56,492,874 244,413,530 Common shares repurchased under share repurchase program (1) (2,907,702 ) — (2,907,702 ) Common shares assigned under equity incentive plans (2) 270,369 — 270,369 Special voting shares allocation (3) — 6,854,047 6,854,047 Outstanding shares at December 31, 2019 185,283,323 63,346,921 248,630,244 _______________________________________ (1) Includes shares repurchased between January 1, 2019 and December 31, 2019 based on the transaction trade date, for a total consideration of €386,094 thousand , including transaction costs. (2) During 2019, approximately 230 thousand performance share units and 40 thousand retention restricted share units vested under the Equity Incentive Plan 2016-2020 as a result of certain performance or retention requirements being achieved. As a result, a corresponding number of common shares, which were previously held in treasury, were assigned to participants of the plan. See Note 21 “Share-Based Compensation” for additional details. (3) Relates to the issuance, allocation and deregistration of certain special voting shares under the Company’s special voting shares terms and conditions. |
Disclosure of other comprehensive income/(loss) | The tax effects relating to other comprehensive income/(loss) are summarized in the following table: For the years ended December 31, 2019 2018 2017 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 (2,078 ) 456 (1,622 ) 385 (88 ) 297 (730 ) 203 (527 ) (Losses)/Gains on cash flow hedging instruments (2,272 ) 610 (1,662 ) (13,034 ) 3,608 (9,426 ) 34,971 (9,757 ) 25,214 Exchange gains/(losses) on translating foreign operations 2,652 — 2,652 5,986 — 5,986 (15,346 ) — (15,346 ) Total other comprehensive (loss)/income (1,698 ) 1,066 (632 ) (6,663 ) 3,520 (3,143 ) 18,895 (9,554 ) 9,341 The following table presents other comprehensive income: For the years ended December 31, 2019 2018 2017 (€ thousand) Items that will not be reclassified to the consolidated income statement in subsequent periods: (Losses)/Gains on remeasurement of defined benefit plans (1) (2,078 ) 385 (730 ) Total items that will not be reclassified to the consolidated income statement in subsequent periods (2,078 ) 385 (730 ) Items that may be reclassified to the consolidated income statement in subsequent periods: (Losses)/Gains on cash flow hedging instruments arising during the period (24,327 ) (9,257 ) 54,695 Losses/(Gains) on cash flow hedging instruments reclassified to the consolidated income statement 22,055 (3,777 ) (19,724 ) (Losses)/Gains on cash flow hedging instruments (2,272 ) (13,034 ) 34,971 Exchange differences on translating foreign operations arising during the period 2,652 5,986 (15,346 ) Total items that may be reclassified to the consolidated income statement in subsequent periods 380 (7,048 ) 19,625 Total other comprehensive income (1,698 ) (6,663 ) 18,895 Related tax impact 1,066 3,520 (9,554 ) Total other comprehensive income, net of tax (632 ) (3,143 ) 9,341 __________________________ (1) For the year ended December 31, 2019 includes €3 thousand ( €33 thousand for the year ended December 31, 2018) related to the Group’s proportionate share of the loss on remeasurement of defined benefit plans of FFS GmbH, for which the Group holds a 49.9 percent interest. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 PSU Awards Granted in 2017 PSU Awards Granted in 2018 Grant date share price €66.85 €113.70 Expected volatility 17.4% 16.7% Dividend yield 1.2% 0.9% Risk-free rate 0% 0% The target amount of PSUs vests as follows based on the Company’s TSR performance compared to an industry specific peer group of eight , including the Company, (“Peer Group”): Ferrari TSR Ranking % of Target Awards that Vest CEO SMT and Key Leaders 1 150% 150% 2 120% 120% 3 100% 100% 4 75% — 5 50% — >5 0% — The defined Peer Group, which is applicable for the Performance Share Units 2016-2020, is as follows: Ferrari Brunello Cucinelli Burberry Ferragamo Hermes LVMH Moncler Richemont Of the total number of PSU awards, 50 percent vest based on the achievement of the TSR ranking of Ferrari compared to an industry specific peer group of eight , including the Company, (“New Peer Group”): Ferrari TSR Rating % of Awards that Vest 1 150% 2 120% 3 100% 4 75% 5 50% >5 0% The defined New Peer Group (*) , which is applicable to the Performance Share Units 2019-2021, is as follows: Ferrari Aston Martin Burberry Hermes Kering LVMH Moncler Richemont ____________________________ (*) Tiffany was removed from the New Peer Group as a consequence of its recently announced acquisition by LVMH in November 2019. Of the total number of PSU awards, 30 percent vest based on the achievement of an EBITDA target determined by comparing Adjusted EBITDA to the Adjusted EBITDA targets derived from the business plan: Actual Adjusted EBITDA Compared to Business Plan % of Awards that Vest +10% 140% +5% 120% Business Plan Target 100% -5% 80% <-5% 0% The key assumptions utilized to calculate the grant-date fair values for these awards are summarized below: Key Assumptions Grant date share price 122.60 Expected volatility 26.50% Dividend yield 0.83% Risk-free rate 0% |
Outstanding number of PSUs and RSUs | Changes during 2019, 2018 and 2017 to the outstanding number of PSU and RSU share awards under both the Equity Incentive Plan 2016-2020 and Equity Incentive Plan 2019-2021 are as follows: Outstanding PSU Awards Outstanding RSU Awards Balance at January 1, 2017 — — Granted (1) 686,933 118,467 Forfeited — — Vested — — Balance at December 31, 2017 686,933 118,467 Granted (1) 20,793 10,397 Forfeited (21,200 ) (10,600 ) Vested — — Balance at December 31, 2018 686,526 118,264 Granted (2) 175,307 110,968 Forfeited (32,832 ) (18,000 ) Vested (230,282 ) (40,087 ) Balance at December 31, 2019 598,719 171,145 _______________________________________ (1) Granted under the Equity Incentive Plan 2016-2020 (2) Granted under the Equity Incentive Plan 2019-2021 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee benefits [Abstract] | |
Group's provision for employee benefits | The Group’s provisions for employee benefits are as follows: At December 31, 2019 2018 (€ thousand) Present value of defined benefit obligations: Italian employee severance indemnity (TFR) 21,795 21,195 Pension plans 134 485 Total present value of defined benefit obligations 21,929 21,680 Other provisions for employees 66,187 64,895 Total provisions for employee benefits 88,116 86,575 |
Disclosure of defined benefit plans | The expected benefit payments for the defined benefit obligations are as follows: Expected benefit payments TFR Pension plans (€ thousand) 2020 1,396 2 2021 1,677 2 2022 1,808 2 2023 1,531 2 2024 1,599 2 Beyond 2024 6,086 611 Total 14,097 621 The following table summarizes the changes in the defined benefit obligations: TFR liability Pension plans Total (€ thousand) Amounts at December 31, 2017 22,641 604 23,245 Included in the consolidated income statement — 55 55 Included in other comprehensive income/(loss) (*) (390 ) (28 ) (418 ) Other (1,056 ) (146 ) (1,202 ) Benefits paid (1,620 ) (169 ) (1,789 ) Other changes 564 23 587 Amounts at December 31, 2018 21,195 485 21,680 Included in the consolidated income statement — (492 ) (492 ) Included in other comprehensive income/(loss) (*) 1,899 176 2,075 Other (1,299 ) (35 ) (1,334 ) Benefits paid (1,490 ) (24 ) (1,514 ) Other changes 191 (11 ) 180 Amounts at December 31, 2019 21,795 134 21,929 ______________________________ (*) Relates to actuarial losses/(gains) from financial assumptions. |
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, 2019 2018 2017 TFR Pension plans Total TFR Pension plans Total TFR Pension plans Total (€ thousand) Current service cost — 26 26 — 55 55 — 141 141 Interest expense — — — — — — — 1 1 Past service adjustments — (518 ) (518 ) — — — — — — Total recognized in the consolidated income statement — (492 ) (492 ) — 55 55 — 142 142 |
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, 2019 2018 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 (1,695 ) 1,951 (1,647 ) 1,891 |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Provisions [abstract] | |
Disclosure of other provisions | The following table sets forth additional provisions to other risks recognized for the years ended December 31, 2019 , 2018 and 2017 . For the years ended December 31, 2019 2018 2017 (€ thousand) Recorded in the consolidated income statement within: Cost of sales 9,563 11,420 8,065 Selling, general and administrative costs 2,830 — 274 Total 12,393 11,420 8,339 Changes in provisions were as follows: At Additional provisions Utilization Translation differences and other At (€ thousand) Warranty and recall campaigns provision 111,129 28,131 (32,584 ) 1,135 107,811 Legal proceedings and disputes 37,154 3,037 (14,280 ) 1,186 27,097 Other risks 34,256 12,393 (18,553 ) 2,568 30,664 Total provisions 182,539 43,561 (65,417 ) 4,889 165,572 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Disclosure of debt instruments | Balance at December 31, 2018 Impact of IFRS 16 adoption Balance at January 1, 2019 Proceeds from borrowings Repayments of borrowings Interest accrued and other Translation differences Balance at December 31, 2019 (€ thousand) Bonds and notes 1,198,109 — 1,198,109 298,316 (315,395 ) 4,440 — 1,185,470 Asset-backed financing (Securitizations) 682,581 — 682,581 282,113 (189,940 ) (82 ) 13,597 788,269 Lease liabilities 673 63,535 64,208 14,788 (18,684 ) — 184 60,496 Borrowings from banks 35,984 — 35,984 — (3,516 ) (71 ) 549 32,946 Other debt 9,820 — 9,820 33,801 (21,479 ) — 414 22,556 Total debt 1,927,167 63,535 1,990,702 629,018 (549,014 ) 4,287 14,744 2,089,737 |
Disclosure of debt maturity | The breakdown of debt by nature and by maturity is as follows: At December 31, 2019 2018 Due within one year Due between Due beyond five years Total Due within one year Due between Due beyond five years Total (€ thousand) Bonds and notes 7,260 879,834 298,376 1,185,470 7,616 1,190,493 — 1,198,109 Asset-backed financing (Securitizations) 338,366 449,903 — 788,269 300,051 382,530 — 682,581 Lease liabilities 20,195 — 25,894 14,407 60,496 673 — — 673 Borrowings from banks 32,946 — — 32,946 34,249 1,735 — 35,984 Other debt 22,556 — — 22,556 9,820 — — 9,820 Total debt 421,323 1,355,631 312,783 2,089,737 352,409 1,574,758 — 1,927,167 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 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) 422,462 10,083 6,066 438,611 223,138 6,960 6,420 236,518 An analysis of other liabilities is as follows: At December 31, 2019 2018 (€ thousand) Deferred income 275,439 271,817 Advances and security deposits 348,899 145,394 Accrued expenses 85,965 81,408 Payables to personnel 28,272 25,434 Social security payables 20,334 18,209 Other 41,106 47,481 Total other liabilities 800,015 589,743 |
Explanation of significant changes in contract liabilities | Changes in the Group’s contract liabilities for maintenance and power warranties, and advances from customers, were as follows: At January 1, 2019 Additional amounts arising during the period Amounts recognized within revenue Other changes At December 31, 2019 (€ thousand) Maintenance and power warranty programs 204,987 90,998 (76,776 ) — 219,209 Advances from customers 139,852 377,950 (176,623 ) 44 341,223 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 : At December 31, 2019 Note Level 1 Level 2 Level 3 Total (€ thousand) Cash and cash equivalents 897,946 — — 897,946 Investments and other financial assets - Liberty Media Shares 16 7,674 — — 7,674 Current financial assets 19 — 9,423 — 9,423 Total assets 905,620 9,423 — 915,043 Other financial liabilities 19 — 14,791 — 14,791 Total liabilities — 14,791 — 14,791 At December 31, 2018 Note Level 1 Level 2 Level 3 Total (€ thousand) Cash and cash equivalents 793,664 — — 793,664 Investments and other financial assets - Liberty Media Shares 16 5,142 — — 5,142 Current financial assets 19 — 6,788 — 6,788 Total assets 798,806 6,788 — 805,594 Other financial liabilities 19 — 11,342 — 11,342 Total liabilities — 11,342 — 11,342 |
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, 2019 and 2018 : At December 31, 2019 Note Level 1 Level 2 Level 3 Total (€ thousand) Cash and cash equivalents 897,946 — — 897,946 Investments and other financial assets - Liberty Media Shares 16 7,674 — — 7,674 Current financial assets 19 — 9,423 — 9,423 Total assets 905,620 9,423 — 915,043 Other financial liabilities 19 — 14,791 — 14,791 Total liabilities — 14,791 — 14,791 At December 31, 2018 Note Level 1 Level 2 Level 3 Total (€ thousand) Cash and cash equivalents 793,664 — — 793,664 Investments and other financial assets - Liberty Media Shares 16 5,142 — — 5,142 Current financial assets 19 — 6,788 — 6,788 Total assets 798,806 6,788 — 805,594 Other financial liabilities 19 — 11,342 — 11,342 Total liabilities — 11,342 — 11,342 |
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, 2019 2018 Note Carrying amount Fair value Carrying amount Fair value (€ thousand) Receivables from financing activities 966,448 966,448 878,496 878,496 Client financing 950,842 950,842 851,209 851,209 Dealer financing 18 15,606 15,606 27,287 27,287 Total 966,448 966,448 878,496 878,496 Debt 24 2,089,737 2,103,871 1,927,167 1,921,937 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
Disclosure of transactions between related parties | The amounts of transactions with related parties recognized in the consolidated income statement are as follows: For the years ended December 31, 2019 2018 2017 Net revenues Costs (1) Net financial expenses Net revenues Costs (1) Net financial expenses Net revenues Costs (1) Net financial expenses (€ thousand) FCA Group companies Maserati 143,091 6,275 — 217,922 3,982 — 315,407 4,698 — FCA US LLC — 17,954 — — 28,486 — 6 44,882 — Magneti Marelli (2) 352 10,444 — 1,589 40,343 — 1,866 36,670 — Other FCA Group companies 8,637 8,028 1,965 12,106 7,193 1,370 6,754 7,007 1,191 Total FCA Group companies 152,080 42,701 1,965 231,617 80,004 1,370 324,033 93,257 1,191 Exor Group companies (excluding the FCA Group) 281 368 4 311 179 — 283 492 — Other related parties 610 13,906 31 1,707 12,651 — 2,159 13,666 — Total transactions with related parties 152,971 56,975 2,000 233,635 92,834 1,370 326,475 107,415 1,191 Total for the Group 3,766,615 2,153,480 42,082 3,420,321 1,953,441 23,563 3,416,890 1,986,792 29,260 ______________________________ (1) Costs include cost of sales, selling, general and administrative costs and other expenses, net. (2) FCA completed the sale of Magneti Marelli on May 2, 2019, following which Magneti Marelli (which subsequently operates under the name “Marelli”) is no longer a related party. Assets and liabilities originating from related party transactions are summarized in the table below: At December 31, 2019 2018 Trade receivables Trade payables Other current assets Other liabilities Trade receivables Trade payables Other current assets Other liabilities (€ thousand) FCA Group companies Maserati 48,617 5,449 — 21,821 39,077 6,099 — 30,594 FCA US LLC — 4,636 — — 135 6,332 — — Magneti Marelli (1) — — — — 2,774 9,427 — — Other FCA Group companies 1,165 3,598 203 581 5,896 4,689 1,481 44 Total FCA Group companies 49,782 13,683 203 22,402 47,882 26,547 1,481 30,638 Exor Group companies (excluding the FCA Group) 350 9 237 207 377 13 — 4 Other related parties 147 2,565 1,295 1,835 208 1,999 5 — Total transactions with related parties 50,279 16,257 1,735 24,444 48,467 28,559 1,486 30,642 Total for the Group 231,439 711,539 92,830 800,015 211,399 653,751 64,295 589,743 ______________________________ (1) FCA completed the sale of Magneti Marelli on May 2, 2019, following which Magneti Marelli (which subsequently operates under the name “Marelli”) is no longer a related party. |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities | The fees of the Directors of Ferrari N.V. are as follows: For the years ended December 31, 2019 2018 2017 (€ thousand) Directors of Ferrari N.V. 10,260 17,043 17,767 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments [Abstract] | |
Disclosure of future minimum purchase obligations under arrangements | Future minimum purchase obligations under these supplier and sponsorship arrangements at December 31, 2019 were as follows: At December 31, 2019 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 72,352 16,208 4,403 — 92,963 |
Disclosure of future aggregate minimum lease payments under non-cancellable operating leases | The future aggregate minimum lease payments under non-cancellable leases, mainly relating to the lease of property and cars, are as follows: At December 31, 2019 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 lease agreements 20,899 17,242 10,577 14,885 63,603 |
ENTITY-WIDE DISCLOSURES (Tables
ENTITY-WIDE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 (€ thousand) Italy 363,779 449,312 563,921 Rest of EMEA 1,636,831 1,400,443 1,308,261 Americas (1) 1,010,204 922,639 920,858 Mainland China, Hong Kong and Taiwan 350,330 274,268 282,550 Rest of APAC (2) 405,471 373,659 341,300 Total net revenues 3,766,615 3,420,321 3,416,890 ______________________________ (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, South Korea, Thailand and Malaysia. The following table presents an analysis of non-current assets other than financial instruments and deferred tax assets by geographic location: At December 31, 2019 2018 Property, plant and equipment Goodwill Intangible assets Property, plant and equipment Goodwill Intangible assets (€ thousand) Italy 1,043,821 785,182 837,682 844,218 785,182 644,689 Rest of EMEA 6,309 — — 2,251 — — Americas (1) 14,803 — — 3,327 — 850 Mainland China, Hong Kong and Taiwan 1,574 — — 351 — — Rest of APAC (2) 3,145 — 256 403 — 258 Total 1,069,652 785,182 837,938 850,550 785,182 645,797 ______________________________ (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, South Korea, Thailand and Malaysia. |
BACKGROUND AND BASIS OF PRESE_2
BACKGROUND AND BASIS OF PRESENTATION - Narrative (Details) | Dec. 31, 2019dealerpoint_of_salemarketstore |
Background and Basis of Presentation [Abstract] | |
Number of worldwide markets | market | 60 |
Number of authorized dealers | dealer | 166 |
Number of points of sale | point_of_sale | 187 |
Number of Ferrari-owned stores | 20 |
Number of franchised stores | 24 |
Number of Ferrari Store Junior | 15 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - IFRS 16 NARRATIVE (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Disclosure of maturity analysis of operating lease payments [line items] | |||
Non-cancellable operating lease commitments | € 74,930 | ||
Lease liabilities | 63,535 | ||
Right-of-use assets | € 57,765 | 64,309 | € 774 |
Depreciation of right-of-use assets | 17,067 | ||
Interest expense on lease liabilities | 1,172 | ||
Impact of IFRS 16 adoption | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Non-cancellable operating lease commitments | 74,930 | ||
Lease liabilities | 63,535 | ||
Right-of-use assets | € 63,535 | ||
Depreciation of right-of-use assets | 17,067 | ||
Interest expense on lease liabilities | 1,172 | ||
Impact Under Previous Lease Standard, IAS 17 | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Lease expense that would have been recognized under previous lease standard | € 17,380 | ||
Bottom of range | Impact of IFRS 16 adoption | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Lessee's incremental borrowing rate (percent) | 1.00% | ||
Top of range | Impact of IFRS 16 adoption | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Lessee's incremental borrowing rate (percent) | 5.00% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - RIGHT-OF-USE ASSETS and LEASE LIABILITIES (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | € 57,765 | € 64,309 | € 774 |
Lease liabilities [abstract] | |||
Non-cancellable operating lease commitments | 74,930 | ||
Lease contracts for which the underlying asset is of low value | (1,008) | ||
Lease contracts for which the lease terms ends within 12 months | (2,420) | ||
Discount of remaining lease payments | (7,967) | ||
Lease liabilities | 63,535 | ||
Industrial buildings | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | 15,834 | ||
Plant, machinery and equipment | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | 7,612 | ||
Other assets | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | € 34,319 | ||
Impact of IFRS 16 adoption | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | 63,535 | ||
Lease liabilities [abstract] | |||
Non-cancellable operating lease commitments | 74,930 | ||
Lease liabilities | 63,535 | ||
Impact of IFRS 16 adoption | Industrial buildings | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | 17,226 | ||
Impact of IFRS 16 adoption | Plant, machinery and equipment | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | 10,011 | ||
Impact of IFRS 16 adoption | Other assets | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right-of-use assets | € 36,298 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - FOREIGN EXCHANGE RATES (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.1195 | 1.1810 | 1.1297 |
Closing exchange rate (per Euro) | 1.1234 | 1.1450 | 1.1993 |
Pound Sterling | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 0.8778 | 0.8847 | 0.8767 |
Closing exchange rate (per Euro) | 0.8508 | 0.8945 | 0.8872 |
Swiss Franc | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.1124 | 1.1550 | 1.1117 |
Closing exchange rate (per Euro) | 1.0854 | 1.1269 | 1.1702 |
Japanese Yen | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 122.0058 | 130.3959 | 126.7112 |
Closing exchange rate (per Euro) | 121.9400 | 125.8500 | 135.0100 |
Chinese Yuan | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 7.7355 | 7.8081 | 7.6290 |
Closing exchange rate (per Euro) | 7.8205 | 7.8751 | 7.8044 |
Australian Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.6109 | 1.5797 | 1.4732 |
Closing exchange rate (per Euro) | 1.5995 | 1.6220 | 1.5346 |
Canadian Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.4855 | 1.5294 | 1.4647 |
Closing exchange rate (per Euro) | 1.4598 | 1.5605 | 1.5039 |
Singapore Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 1.5273 | 1.5926 | 1.5588 |
Closing exchange rate (per Euro) | 1.5111 | 1.5591 | 1.6024 |
Hong Kong Dollar | |||
Currency [Line Items] | |||
Average exchange rate (per Euro) | 8.7715 | 9.2559 | 8.8045 |
Closing exchange rate (per Euro) | 8.7473 | 8.9675 | 9.3720 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - DEPRECIATION RATES (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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 | Capitalized development costs | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 4 years |
Bottom of range | Patents, concessions and licenses | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
Bottom of range | Other intangible assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 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 | Capitalized development costs | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 8 years |
Top of range | Patents, concessions and licenses | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 5 years |
Top of range | Other intangible assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 5 years |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - REVENUE RECOGNITION (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Typical duration of payments due from customers | 30 days |
Top of range | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Typical duration of payments due from customers | 40 days |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - TAXES (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Collected From Settlements of Receivables or Collateral | |||
Disclosure of subsidiaries [line items] | |||
Restricted cash and cash equivalents | € 27,524 | € 26,497 | |
CHINA | |||
Disclosure of subsidiaries [line items] | |||
Restricted cash and cash equivalents | € 115,182 | € 77,790 | |
Ferrari International Cars Trading (Shanghai) Co. L.t.d. | |||
Disclosure of subsidiaries [line items] | |||
Shares held by the Group (percent) | 80.00% | 80.00% | 80.00% |
SCOPE OF CONSOLIDATION - Scope
SCOPE OF CONSOLIDATION - Scope of Consolidation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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% | 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 Europe GmbH (1) | |||
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% | |
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 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | |||
Equity attributable to non-controlling interests | € 5,998 | € 5,117 | |
Net profit attributable to non-controlling interests | € 2,890 | € 1,949 | € 2,003 |
SCOPE OF CONSOLIDATION - Segmen
SCOPE OF CONSOLIDATION - Segment Reporting (Details) | Dec. 31, 2019segment |
Scope of Consolidation [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
SCOPE OF CONSOLIDATION - Recove
SCOPE OF CONSOLIDATION - Recoverability of Goodwill (Details) | Dec. 31, 2019segment |
Scope of Consolidation [Abstract] | |
Number of operating segments | 1 |
NET REVENUES (Details)
NET REVENUES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Total net revenues | € 3,766,615 | € 3,420,321 | € 3,416,890 |
Cars and spare parts | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenues | 2,925,721 | 2,535,245 | 2,455,955 |
Engines | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenues | 198,308 | 284,546 | 373,313 |
Sponsorship, commercial and brand | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenues | 538,238 | 505,701 | 494,082 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenues | € 104,348 | € 94,829 | € 93,540 |
COST OF SALES (Details)
COST OF SALES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [line items] | |||
Cost of sales | € 1,805,310 | € 1,622,905 | € 1,650,860 |
Interest and other financial expense | € 45,083 | 33,828 | € 30,945 |
Takata Airbag Inflators | Warranty and recall campaigns provision | |||
Disclosure of other provisions [line items] | |||
New provisions, other provisions | € 1,451 |
SELLING, GENERAL AND ADMINIST_2
SELLING, GENERAL AND ADMINISTRATIVE COSTS (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |||
Selling costs | € 173,512 | € 167,819 | € 173,484 |
General and administrative costs | € 169,667 | € 159,522 | € 155,581 |
RESEARCH AND DEVELOPMENT COST_2
RESEARCH AND DEVELOPMENT COSTS (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Finite-Lived Intangible Assets [Line Items] | |||
Research and development costs expensed during the year | € 559,582 | € 527,847 | € 556,617 |
Total research and development costs | 699,211 | 643,038 | 657,119 |
Development costs | |||
Schedule of Finite-Lived Intangible Assets [Line Items] | |||
Amortization of capitalized development costs | € 139,629 | € 115,191 | € 100,502 |
RESULT FROM INVESTMENTS - Narra
RESULT FROM INVESTMENTS - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments [Abstract] | |||
Other income from subsidiaries, jointly controlled entities and associates | € 3,522 | € 2,665 | € 2,437 |
NET FINANCIAL EXPENSES (Details
NET FINANCIAL EXPENSES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | |||
Interest income from bank deposits | € 1,690 | € 1,445 | € 1,153 |
Other interest income and financial income | 4,116 | 677 | 5,284 |
Interest income and other financial income | 5,806 | 2,122 | 6,437 |
Total financial income | 72,192 | 54,824 | 56,691 |
Capitalized borrowing costs | 2,671 | 2,884 | 1,578 |
Other interest cost and financial expenses | (2,427) | (1,046) | (3,775) |
Interest expenses and other financial expenses | 244 | 1,838 | (2,197) |
Interest expenses from banks | (27,432) | (21,486) | (23,057) |
Interest and other finance costs on bonds and notes | (20,703) | (12,386) | (9,231) |
Write-downs of financial receivables | (4,739) | (3,326) | (3,530) |
Other financial expenses | (13,949) | (8,494) | (12,008) |
Total financial expenses | (66,579) | (43,854) | (50,023) |
Net expenses from derivative financial instruments and foreign currency exchange rate differences | (26,392) | (15,659) | (16,619) |
Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences relating to: | (92,971) | (59,513) | (66,642) |
Net financial expenses | (42,082) | (23,563) | (29,260) |
Repurchase price and premium incurred, as well as previously unamortized issuance costs | 8,142 | ||
Industrial companies | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total financial income | 5,806 | 2,122 | 6,437 |
Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences relating to: | (47,888) | (25,685) | (35,697) |
Net financial expenses | (42,082) | (23,563) | (29,260) |
Financial services companies | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total financial income | 66,386 | 52,702 | 50,254 |
Total financial expenses and net expenses from derivative financial instruments and foreign currency exchange rate differences relating to: | € (45,083) | € (33,828) | € (30,945) |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Expense (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income taxes [Abstract] | |||
Current tax expense | € 137,303 | € 95,076 | € 201,274 |
Deferred tax expense | 32,145 | 66,325 | 8,718 |
Taxes relating to prior periods | 7,208 | (145,084) | (1,232) |
Total income tax expense | € 176,656 | € 16,317 | € 208,760 |
INCOME TAXES - Schedule of In_2
INCOME TAXES - Schedule of Income Tax Rate Reconciliation (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income taxes [Abstract] | |||
Theoretical income tax expense, net of IRAP | € 210,088 | € 192,706 | € 179,077 |
Permanent and other differences | (76,187) | (58,877) | (7,061) |
Effect of changes in tax rate and tax regulations | 733 | 0 | 4,862 |
Differences between foreign tax rates and the theoretical Italian tax rate and tax holidays | 3,457 | 1,216 | 2,344 |
Taxes relating to prior years | 7,208 | (145,084) | (1,232) |
Withholding tax on earnings | 3,360 | 1,514 | 2,420 |
Total income tax expense/(benefit), net of IRAP | € 148,659 | € (8,525) | € 180,410 |
Effective tax rate, net of IRAP (percent) | 17.00% | (1.10%) | 24.20% |
IRAP (current and deferred) | € 27,997 | € 24,842 | € 28,350 |
Total income tax expense | € 176,656 | € 16,317 | € 208,760 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - EUR (€) € in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||
Tax benefit arising from previously unrecognised tax loss, tax credit or temporary difference of prior period used to reduce deferred tax expense | € 141,000 | |||
Applicable tax rate (percent) | 24.00% | 24.00% | 24.00% | |
IRAP applicable tax rate (percent) | 3.90% | 3.90% | 3.90% | |
Effective tax rate, net of IRAP (percent) | 17.00% | (1.10%) | 24.20% | |
Aggregate amount of temporary differences related to remaining distributable earnings of subsidiaries | € 151,990 |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | € 73,683 | € 60,744 | |
Deferred tax liabilities | (82,208) | (39,142) | |
Net deferred tax assets | (8,525) | 21,602 | € 83,114 |
To be recovered after 12 months | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 16,445 | 27,297 | |
Deferred tax liabilities | (77,334) | (14,497) | |
To be recovered within 12 months | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 57,238 | 33,447 | |
Deferred tax liabilities | € (4,874) | € (24,645) |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Asset and Liability Rollforward (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | € 60,744 | ||
Deferred tax liabilities | (39,142) | ||
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (32,145) | € (66,325) | |
Charged to equity | 1,066 | 3,520 | |
Translation differences and other changes | 952 | 1,293 | |
Deferred tax assets | 73,683 | 60,744 | |
Deferred tax liabilities | (82,208) | (39,142) | |
Net deferred tax assets | (8,525) | 21,602 | € 83,114 |
Provisions | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 108,147 | 102,243 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (8,181) | 5,249 | |
Translation differences and other changes | 332 | 655 | |
Deferred tax assets | 100,298 | 108,147 | |
Deferred income | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 51,578 | 46,198 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 2,265 | 3,131 | |
Translation differences and other changes | 0 | 2,249 | |
Deferred tax assets | 53,843 | 51,578 | |
Employee benefits | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 2,474 | 2,562 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 0 | 0 | |
Charged to equity | 456 | (88) | |
Translation differences and other changes | 0 | ||
Deferred tax assets | 2,930 | 2,474 | |
Cash flow hedge reserve | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 1,176 | (2,432) | |
Deferred tax liabilities | (1) | (1) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 1 | ||
Charged to equity | 610 | 3,608 | |
Translation differences and other changes | 0 | 0 | |
Deferred tax assets | 1,786 | 1,176 | |
Deferred tax liabilities | 0 | (1) | |
Foreign currency exchange rate differences | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 859 | 740 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 578 | 119 | |
Deferred tax assets | 1,437 | 859 | |
Inventory obsolescence | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 38,275 | 37,615 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 13,626 | 521 | |
Translation differences and other changes | 71 | 139 | |
Deferred tax assets | 51,972 | 38,275 | |
Allowances for doubtful accounts | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 4,301 | 3,999 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 1,104 | 303 | |
Translation differences and other changes | 2 | (1) | |
Deferred tax assets | 5,407 | 4,301 | |
Depreciation | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 17,241 | 16,570 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 321 | 399 | |
Translation differences and other changes | 2 | 272 | |
Deferred tax assets | 17,564 | 17,241 | |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 11,147 | 12,383 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 5,858 | 1,876 | |
Translation differences and other changes | 690 | (3,112) | |
Deferred tax assets | 17,695 | 11,147 | |
Total deferred tax assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 235,198 | 219,878 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 15,571 | 11,598 | |
Charged to equity | 1,066 | 3,520 | |
Translation differences and other changes | 1,097 | 202 | |
Deferred tax assets | 252,932 | 235,198 | |
Depreciation | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (9,303) | (8,930) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 572 | (24) | |
Translation differences and other changes | (150) | (349) | |
Deferred tax liabilities | (8,881) | (9,303) | |
Capitalization of development costs | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (171,707) | (114,775) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (53,144) | (56,932) | |
Deferred tax liabilities | (224,851) | (171,707) | |
Employee benefits | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (670) | (1,868) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (80) | (161) | |
Translation differences and other changes | 0 | 1,359 | |
Deferred tax liabilities | (750) | (670) | |
Exchange rate differences | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (149) | (647) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (251) | 501 | |
Translation differences and other changes | 1 | (3) | |
Deferred tax liabilities | (399) | (149) | |
Tax on undistributed earnings | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (16,371) | 0 | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 2,388 | (16,371) | |
Deferred tax liabilities | (13,983) | (16,371) | |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (15,395) | (10,652) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 2,798 | (4,936) | |
Translation differences and other changes | 4 | 193 | |
Deferred tax liabilities | (12,593) | (15,395) | |
Total deferred tax liabilities | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liabilities | (213,596) | (136,873) | |
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | (47,716) | (77,923) | |
Translation differences and other changes | (145) | 1,200 | |
Deferred tax liabilities | € (261,457) | (213,596) | |
Deferred tax assets arising on tax loss carry-forward | |||
Changes in deferred tax liability (asset) [abstract] | |||
Recognized in consolidated income statement | 0 | ||
Translation differences and other changes | (109) | ||
Net deferred tax assets | € 0 | € 109 |
OTHER INFORMATION BY NATURE - N
OTHER INFORMATION BY NATURE - Narrative (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019EUR (€)employee | Dec. 31, 2018EUR (€)employee | Dec. 31, 2017EUR (€)employee | |
Disclosure of detailed information about intangible assets [line items] | |||
Compensation related to product development | € 385,182 | € 323,936 | € 313,471 |
Average number of employees | employee | 4,164 | 3,651 | 3,336 |
Depreciation expense | € 191,482 | € 156,384 | € 143,484 |
Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amortization | € 160,464 | € 132,364 | € 117,122 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - EUR (€) € / shares in Units, € in Thousands, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic earnings per share [abstract] | |||
Profit attributable to owners of the Company | € 695,818 | € 784,678 | € 535,393 |
Weighted average number of common shares for basic earnings per common share (shares) | 186,767 | 188,606 | 188,951 |
Basic earnings per common share (in Euros per share) | € 3.73 | € 4.16 | € 2.83 |
Diluted earnings per share [abstract] | |||
Owners of the parent | € 695,818 | € 784,678 | € 535,393 |
Weighted average number of common shares for diluted earnings per common share (shares) | 187,535 | 189,394 | 189,759 |
Diluted earnings per common share (in Euros per share) | € 3.71 | € 4.14 | € 2.82 |
GOODWILL (Details)
GOODWILL (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Goodwill | € 785,182 | € 785,182 | |
Specific medium/ long-term growth rate (percent) | 2.00% | 2.00% | 2.00% |
Weighted average cost of capital | Discounted cash flow | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||
Base WACC (percent) | 0.068 | 0.070 | 0.070 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | € 645,797 | € 440,456 | |
Intangible assets, ending balance | 837,938 | 645,797 | € 440,456 |
Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 2,150,072 | 1,811,219 | |
Additions | 353,458 | 337,542 | |
Reclassification | 0 | 0 | |
Translation differences and other movements | (1,367) | 1,311 | |
Intangible assets, ending balance | 2,502,163 | 2,150,072 | 1,811,219 |
Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 1,504,275 | 1,370,763 | |
Amortization | 160,464 | 132,364 | 117,122 |
Translation differences and other movements | (514) | 1,148 | |
Intangible assets, ending balance | 1,664,225 | 1,504,275 | 1,370,763 |
Development costs | Externally acquired | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 393,484 | 234,158 | |
Intangible assets, ending balance | 532,712 | 393,484 | 234,158 |
Development costs | Externally acquired | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 1,324,040 | 1,081,287 | |
Additions | 243,040 | 242,753 | |
Reclassification | 0 | 0 | |
Translation differences and other movements | 0 | 0 | |
Intangible assets, ending balance | 1,567,080 | 1,324,040 | 1,081,287 |
Development costs | Externally acquired | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 930,556 | 847,129 | |
Amortization | 103,812 | 83,427 | |
Translation differences and other movements | 0 | 0 | |
Intangible assets, ending balance | 1,034,368 | 930,556 | 847,129 |
Development costs | Internally acquired | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 216,958 | 173,613 | |
Intangible assets, ending balance | 268,060 | 216,958 | 173,613 |
Development costs | Internally acquired | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 592,070 | 516,961 | |
Additions | 86,919 | 75,109 | |
Reclassification | 0 | 0 | |
Translation differences and other movements | 0 | 0 | |
Intangible assets, ending balance | 678,989 | 592,070 | 516,961 |
Development costs | Internally acquired | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 375,112 | 343,348 | |
Amortization | 35,817 | 31,764 | |
Translation differences and other movements | 0 | 0 | |
Intangible assets, ending balance | 410,929 | 375,112 | 343,348 |
Patents, concessions and licenses | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 25,698 | 26,080 | |
Intangible assets, ending balance | 31,190 | 25,698 | 26,080 |
Patents, concessions and licenses | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 183,614 | 167,886 | |
Additions | 17,606 | 14,052 | |
Reclassification | 6,950 | 508 | |
Translation differences and other movements | (679) | 1,168 | |
Intangible assets, ending balance | 207,491 | 183,614 | 167,886 |
Patents, concessions and licenses | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 157,916 | 141,806 | |
Amortization | 18,677 | 14,914 | |
Translation differences and other movements | (292) | 1,196 | |
Intangible assets, ending balance | 176,301 | 157,916 | 141,806 |
Other intangible assets | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 9,657 | 6,605 | |
Intangible assets, ending balance | 5,976 | 9,657 | 6,605 |
Other intangible assets | Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 50,348 | 45,085 | |
Additions | 5,893 | 5,628 | |
Reclassification | (6,950) | (508) | |
Translation differences and other movements | (688) | 143 | |
Intangible assets, ending balance | 48,603 | 50,348 | 45,085 |
Other intangible assets | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Intangible assets, beginning balance | 40,691 | 38,480 | |
Amortization | 2,158 | 2,259 | |
Translation differences and other movements | (222) | (48) | |
Intangible assets, ending balance | € 42,627 | € 40,691 | € 38,480 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | € 850,550 | € 710,260 | ||
Depreciation expense | 191,482 | 156,384 | € 143,484 | |
Property, plant and equipment, ending balance | 1,069,652 | 850,550 | 710,260 | |
Right-of-use assets | 57,765 | 774 | € 64,309 | |
Gross carrying amount | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 2,795,049 | 2,518,499 | ||
Additions | 352,154 | 300,794 | ||
Divestitures | (20,297) | (20,303) | ||
Reclassification | 0 | 0 | ||
Translation differences and other movements | (2,730) | (3,941) | ||
Property, plant and equipment, ending balance | 3,187,711 | 2,795,049 | 2,518,499 | |
Accumulated amortization | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 1,944,499 | 1,808,239 | ||
Divestitures | (15,335) | (19,224) | ||
Translation differences and other movements | (2,587) | (900) | ||
Property, plant and equipment, ending balance | 2,118,059 | 1,944,499 | 1,808,239 | |
Land | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 23,574 | 23,537 | ||
Property, plant and equipment, ending balance | 23,609 | 23,574 | 23,537 | |
Right-of-use assets | 0 | |||
Land | Gross carrying amount | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 23,574 | 23,537 | ||
Additions | 30 | 25 | ||
Divestitures | 0 | 0 | ||
Reclassification | 0 | 0 | ||
Translation differences and other movements | 5 | 12 | ||
Property, plant and equipment, ending balance | 23,609 | 23,574 | 23,537 | |
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 | ||
Translation differences and other movements | 0 | 0 | ||
Property, plant and equipment, ending balance | 0 | 0 | 0 | |
Industrial buildings | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 218,469 | 199,489 | ||
Property, plant and equipment, ending balance | 241,526 | 218,469 | 199,489 | |
Right-of-use assets | 15,834 | 9 | 17,235 | |
Industrial buildings | Gross carrying amount | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 373,373 | 341,749 | ||
Additions | 15,560 | 14,710 | ||
Divestitures | (884) | (641) | ||
Reclassification | 5,937 | 17,225 | ||
Translation differences and other movements | (2,554) | 330 | ||
Property, plant and equipment, ending balance | 408,658 | 373,373 | 341,749 | |
Industrial buildings | Accumulated amortization | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 154,904 | 142,260 | ||
Depreciation | 15,443 | 10,407 | ||
Divestitures | (417) | (627) | ||
Translation differences and other movements | (2,798) | 2,864 | ||
Property, plant and equipment, ending balance | 167,132 | 154,904 | 142,260 | |
Plant, machinery and equipment | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 362,901 | 403,693 | ||
Property, plant and equipment, ending balance | 537,681 | 362,901 | 403,693 | |
Right-of-use assets | 7,612 | 0 | 10,011 | |
Plant, machinery and equipment | Gross carrying amount | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 2,038,437 | 1,959,462 | ||
Additions | 176,235 | 81,936 | ||
Divestitures | (11,281) | (16,684) | ||
Reclassification | 148,102 | 16,853 | ||
Translation differences and other movements | 16 | (3,130) | ||
Property, plant and equipment, ending balance | 2,361,520 | 2,038,437 | 1,959,462 | |
Plant, machinery and equipment | Accumulated amortization | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 1,675,536 | 1,555,769 | ||
Depreciation | 159,302 | 136,793 | ||
Divestitures | (11,001) | (15,976) | ||
Translation differences and other movements | 2 | (1,050) | ||
Property, plant and equipment, ending balance | 1,823,839 | 1,675,536 | 1,555,769 | |
Other assets | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 30,415 | 26,781 | ||
Property, plant and equipment, ending balance | 65,440 | 30,415 | 26,781 | |
Right-of-use assets | 34,319 | 765 | 37,063 | |
Other assets | Gross carrying amount | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 144,474 | 136,991 | ||
Additions | 18,102 | 9,679 | ||
Divestitures | (7,673) | (2,740) | ||
Reclassification | 1,524 | 1,137 | ||
Translation differences and other movements | (197) | (593) | ||
Property, plant and equipment, ending balance | 192,528 | 144,474 | 136,991 | |
Other assets | Accumulated amortization | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 114,059 | 110,210 | ||
Depreciation | 16,737 | 9,184 | ||
Divestitures | (3,917) | (2,621) | ||
Translation differences and other movements | 209 | (2,714) | ||
Property, plant and equipment, ending balance | 127,088 | 114,059 | 110,210 | |
Advances and assets under construction | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 215,191 | 56,760 | ||
Property, plant and equipment, ending balance | 201,396 | 215,191 | 56,760 | |
Right-of-use assets | 0 | |||
Advances and assets under construction | Gross carrying amount | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 215,191 | 56,760 | ||
Additions | 142,227 | 194,444 | ||
Divestitures | (459) | (238) | ||
Reclassification | (155,563) | (35,215) | ||
Translation differences and other movements | 0 | (560) | ||
Property, plant and equipment, ending balance | 201,396 | 215,191 | 56,760 | |
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 | ||
Translation differences and other movements | 0 | 0 | ||
Property, plant and equipment, ending balance | € 0 | € 0 | € 0 | |
Impact of IFRS adoption at January 1, 2019 | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Right-of-use assets | 63,535 | |||
Impact of IFRS adoption at January 1, 2019 | Industrial buildings | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Right-of-use assets | 17,226 | |||
Impact of IFRS adoption at January 1, 2019 | Plant, machinery and equipment | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Right-of-use assets | 10,011 | |||
Impact of IFRS adoption at January 1, 2019 | Other assets | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Right-of-use assets | € 36,298 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | € 1,069,652 | € 850,550 | € 710,260 |
Contractual commitments for acquisition of property, plant and equipment | 105,335 | 146,281 | |
Gross carrying amount | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | € 3,187,711 | € 2,795,049 | € 2,518,499 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Changes in Carrying Amount of Right-of-use Assets (Details) - EUR (€) € in Thousands | Jan. 01, 2019 | Dec. 31, 2019 |
Disclosure Of Quantitative Information About Right-of-use Assets [Roll Forward] | ||
Right-of-use assets | € 774 | € 774 |
Additions | 12,760 | |
Depreciation | (17,067) | |
Translation differences and other movements | (2,237) | |
Right-of-use assets | 64,309 | 57,765 |
Industrial buildings | ||
Disclosure Of Quantitative Information About Right-of-use Assets [Roll Forward] | ||
Right-of-use assets | 9 | 9 |
Additions | 3,532 | |
Depreciation | (4,664) | |
Translation differences and other movements | (269) | |
Right-of-use assets | 17,235 | 15,834 |
Plant, machinery and equipment | ||
Disclosure Of Quantitative Information About Right-of-use Assets [Roll Forward] | ||
Right-of-use assets | 0 | 0 |
Additions | 2,800 | |
Depreciation | (5,023) | |
Translation differences and other movements | (176) | |
Right-of-use assets | 10,011 | 7,612 |
Other assets | ||
Disclosure Of Quantitative Information About Right-of-use Assets [Roll Forward] | ||
Right-of-use assets | 765 | 765 |
Additions | 6,428 | |
Depreciation | (7,380) | |
Translation differences and other movements | (1,792) | |
Right-of-use assets | 37,063 | 34,319 |
Impact of IFRS 16 adoption | ||
Disclosure Of Quantitative Information About Right-of-use Assets [Roll Forward] | ||
Additions | 63,535 | |
Depreciation | € (17,067) | |
Right-of-use assets | 63,535 | |
Impact of IFRS 16 adoption | Industrial buildings | ||
Disclosure Of Quantitative Information About Right-of-use Assets [Roll Forward] | ||
Right-of-use assets | 17,226 | |
Impact of IFRS 16 adoption | Plant, machinery and equipment | ||
Disclosure Of Quantitative Information About Right-of-use Assets [Roll Forward] | ||
Right-of-use assets | 10,011 | |
Impact of IFRS 16 adoption | Other assets | ||
Disclosure Of Quantitative Information About Right-of-use Assets [Roll Forward] | ||
Right-of-use assets | € 36,298 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT - Amounts Recognized in Income Statement Related to Leases (Details) € in Thousands | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Depreciation of right-of-use assets | € 17,067 |
Interest expense on lease liabilities | 1,172 |
Variable lease payments not included in the measurement of lease liabilities | 1,143 |
Expenses relating to short-term leases and leases of low-value assets | 4,635 |
Total expenses recognized | € 24,017 |
INVESTMENTS AND OTHER FINANCI_3
INVESTMENTS AND OTHER FINANCIAL ASSETS - Investments and Other Financial Assets (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investments and other financial assets [Abstract] | |||
Investments and other financial assets | € 30,012 | € 25,972 | € 23,340 |
Other securities and financial assets | 8,704 | 6,162 | |
Total investments and other financial assets | € 38,716 | € 32,134 |
INVESTMENTS AND OTHER FINANCI_4
INVESTMENTS AND OTHER FINANCIAL ASSETS - Changes in Equity Method Investments (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments and other financial assets [Abstract] | ||
Balance at January 1, | € 25,972 | € 23,340 |
Proportionate share of net profit for the period | 4,043 | 2,665 |
Proportionate share of remeasurement of defined benefit plans | (3) | (33) |
Balance at December 31, | € 30,012 | € 25,972 |
INVESTMENTS AND OTHER FINANCI_5
INVESTMENTS AND OTHER FINANCIAL ASSETS - Financial Information Relating to FFS GmbH (Details) - EUR (€) € in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Dec. 31, 2016 | |
Non-current assets [abstract] | |||||
Non-current assets | € 2,805,171 | € 2,374,407 | |||
Current assets [abstract] | |||||
Other current assets | 92,830 | 64,295 | |||
Cash and cash equivalents | 897,946 | 793,664 | € 647,706 | € 457,784 | |
Total assets | 5,446,372 | 4,851,733 | |||
Equity and liabilities [abstract] | |||||
Equity | 1,487,288 | 1,353,839 | 783,936 | € 329,805 | |
Debt | 2,089,737 | 1,927,167 | € 1,990,702 | ||
Other liabilities | 800,015 | 589,743 | |||
Total equity and liabilities | 5,446,372 | 4,851,733 | |||
Profit or loss [abstract] | |||||
Net revenues | 3,766,615 | 3,420,321 | 3,416,890 | ||
Cost of sales | 1,805,310 | 1,622,905 | 1,650,860 | ||
Selling, general and administrative costs | 343,179 | 327,341 | 329,065 | ||
Other (income)/expenses, net | 4,991 | 3,195 | 6,867 | ||
Profit before taxes | 875,364 | 802,944 | 746,156 | ||
Tax expense (income) | 176,656 | 16,317 | 208,760 | ||
Net profit | 698,708 | 786,627 | € 537,396 | ||
Ferrari Financial Services GmbH | |||||
Non-current assets [abstract] | |||||
Non-current assets | 2,436 | 1,402 | |||
Current assets [abstract] | |||||
Receivables from financing activities | 660,883 | 591,482 | |||
Other current assets | 8,565 | 12,630 | |||
Cash and cash equivalents | 6,471 | 5,957 | |||
Total assets | 678,355 | 611,471 | |||
Equity and liabilities [abstract] | |||||
Equity | 58,049 | 49,969 | |||
Debt | 604,643 | 546,595 | |||
Other liabilities | 15,663 | 14,907 | |||
Total equity and liabilities | 678,355 | 611,471 | |||
Profit or loss [abstract] | |||||
Net revenues | 34,680 | 29,446 | |||
Cost of sales | 15,655 | 12,183 | |||
Selling, general and administrative costs | 8,892 | 8,720 | |||
Other (income)/expenses, net | (963) | 239 | |||
Profit before taxes | 11,096 | 8,304 | |||
Tax expense (income) | 3,010 | 2,974 | |||
Net profit | € 8,086 | € 5,330 |
INVESTMENTS AND OTHER FINANCI_6
INVESTMENTS AND OTHER FINANCIAL ASSETS - Narrative (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of information about unconsolidated subsidiaries [line items] | ||
Other securities and financial assets | € 8,704 | € 6,162 |
Liberty Media | ||
Disclosure of information about unconsolidated subsidiaries [line items] | ||
Other securities and financial assets | € 7,674 | € 5,142 |
INVENTORIES (Details)
INVENTORIES (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [line items] | |||
Raw materials | € 85,155 | € 74,053 | |
Semi-finished goods | 91,119 | 84,576 | |
Finished goods | 243,777 | 232,435 | |
Current inventories | 420,051 | 391,064 | |
Reconciliation of changes in other provisions [abstract] | |||
Provisions, beginning balance | 182,539 | ||
Provision | (43,561) | ||
Use and other changes | (65,417) | ||
Provisions, ending balance | 165,572 | 182,539 | |
Provisions for slow moving and obsolete inventories | |||
Reconciliation of changes in other provisions [abstract] | |||
Provisions, beginning balance | 73,426 | 66,989 | |
Provision | 14,512 | 11,062 | € 10,140 |
Use and other changes | (4,265) | (4,625) | |
Provisions, ending balance | € 83,673 | € 73,426 | € 66,989 |
CURRENT RECEIVABLES AND OTHER_3
CURRENT RECEIVABLES AND OTHER CURRENT ASSETS (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | ||
Trade receivables | € 231,439 | € 211,399 |
Receivables from financing activities | 966,448 | 878,496 |
Current tax receivables | 21,078 | 128,234 |
Other current assets | 92,830 | 64,295 |
Total | 1,311,795 | 1,282,424 |
Reconciliation of changes in other provisions [abstract] | ||
Provisions, beginning balance | 24,346 | |
Provisions, ending balance | € 27,171 | € 24,346 |
Average contractual duration at inception of contracts | 67 months | |
Weighted average interest rate (percent) | 6.00% | 5.70% |
Italian and foreign VAT credits | € 48,719 | € 20,466 |
Prepayments | 39,856 | 35,758 |
Other | 4,255 | 8,071 |
Other current assets | 52,974 | 28,537 |
Total current receivables, excluding prepayments | 1,271,939 | 1,246,666 |
Dealers | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 74,589 | 64,739 |
FCA Group companies | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 49,782 | 47,882 |
Sponsorship and commercial activities | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 46,375 | 43,500 |
Brand activities | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 24,937 | 26,247 |
Other | ||
Disclosure of financial assets [line items] | ||
Trade receivables | € 35,756 | 29,031 |
Bottom of range | ||
Disclosure of financial assets [line items] | ||
Typical duration of payments due from customers | 30 days | |
Bottom of range | Dealers | ||
Disclosure of financial assets [line items] | ||
Typical duration of payments due from customers | 30 days | |
Top of range | ||
Disclosure of financial assets [line items] | ||
Typical duration of payments due from customers | 40 days | |
Top of range | Dealers | ||
Disclosure of financial assets [line items] | ||
Typical duration of payments due from customers | 40 days | |
Euro | ||
Disclosure of financial assets [line items] | ||
Trade receivables | € 127,226 | 128,396 |
U.S. Dollar | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 75,138 | 68,410 |
Pound Sterling | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 7,238 | 3,440 |
Chinese Yuan | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 2,101 | 1,777 |
Japanese Yen | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 11,018 | 1,571 |
Other | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 8,718 | 7,805 |
Overdue | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 46,778 | 36,772 |
Receivables from financing activities | 59,448 | 53,800 |
Current tax receivables | 0 | 0 |
Reconciliation of changes in other provisions [abstract] | ||
Other current assets | 0 | 0 |
Total current receivables, excluding prepayments | 106,226 | 90,572 |
Due within one year | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 184,613 | 174,627 |
Receivables from financing activities | 165,164 | 172,049 |
Current tax receivables | 20,397 | 127,573 |
Reconciliation of changes in other provisions [abstract] | ||
Other current assets | 52,449 | 28,036 |
Total current receivables, excluding prepayments | 422,623 | 502,285 |
Due between one and five years | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 48 | 0 |
Receivables from financing activities | 683,096 | 600,615 |
Current tax receivables | 681 | 661 |
Reconciliation of changes in other provisions [abstract] | ||
Other current assets | 346 | 494 |
Total current receivables, excluding prepayments | 684,171 | 601,770 |
Due beyond five years | ||
Disclosure of financial assets [line items] | ||
Trade receivables | 0 | 0 |
Receivables from financing activities | 58,740 | 52,032 |
Current tax receivables | 0 | 0 |
Reconciliation of changes in other provisions [abstract] | ||
Other current assets | 179 | 7 |
Total current receivables, excluding prepayments | 58,919 | 52,039 |
Payment Guarantee | ||
Reconciliation of changes in other provisions [abstract] | ||
Guarantees through third parties | 95,304 | 133,175 |
Client Financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 950,842 | 851,209 |
Client Financing | Overdue | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 59,448 | 53,800 |
Client Financing | Due within one year | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 161,753 | 144,762 |
Client Financing | Due between one and five years | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 670,901 | 600,615 |
Client Financing | Due beyond five years | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 58,740 | 52,032 |
Dealer Financing | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | € 15,606 | € 27,287 |
Dealer Financing | Bottom of range | ||
Disclosure of financial assets [line items] | ||
Typical duration of payments due from customers | 1 month | |
Reconciliation of changes in other provisions [abstract] | ||
Dealer financing receivables, interest rates (percent) | 4.50% | 4.10% |
Dealer Financing | Top of range | ||
Disclosure of financial assets [line items] | ||
Typical duration of payments due from customers | 6 months | |
Reconciliation of changes in other provisions [abstract] | ||
Dealer financing receivables, interest rates (percent) | 7.00% | 7.00% |
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 | 3,411 | 27,287 |
Dealer Financing | Due between one and five years | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 12,195 | 0 |
Dealer Financing | Due beyond five years | ||
Disclosure of financial assets [line items] | ||
Receivables from financing activities | 0 | 0 |
Trade receivables | ||
Reconciliation of changes in other provisions [abstract] | ||
Provisions, beginning balance | 24,346 | 21,993 |
Provision | 2,976 | 2,737 |
Use and other changes | (151) | (384) |
Provisions, ending balance | 27,171 | 24,346 |
Loans to consumers | ||
Reconciliation of changes in other provisions [abstract] | ||
Provisions, beginning balance | 6,457 | 6,948 |
Provision | 4,739 | 2,687 |
Use and other changes | (3,716) | (3,178) |
Provisions, ending balance | € 7,480 | € 6,457 |
CURRENT FINANCIAL ASSETS AND _3
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES - Current Financial Assets (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments [Abstract] | ||
Financial derivatives | € 9,423 | € 6,788 |
Other financial assets | 1,986 | 3,386 |
Current financial assets | € 11,409 | € 10,174 |
CURRENT FINANCIAL ASSETS AND _4
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES - Financial Derivatives (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | € 9,423 | € 6,788 |
Negative fair value | (14,791) | (11,342) |
Cash flow hedges | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 8,126 | 3,795 |
Negative fair value | (14,547) | (10,853) |
Currency risk | Other foreign exchange derivative | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 1,294 | 1,023 |
Negative fair value | (244) | (489) |
Currency risk | Cash flow hedges | Forward contract | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 8,039 | 3,240 |
Negative fair value | (14,547) | (10,853) |
Interest rate risk | Interest rate cap contract | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 3 | 1,970 |
Negative fair value | 0 | 0 |
Interest rate risk | Cash flow hedges | Interest rate cap contract | ||
Disclosure of detailed information about financial instruments [line items] | ||
Positive fair value | 87 | 555 |
Negative fair value | € 0 | € 0 |
CURRENT FINANCIAL ASSETS AND _5
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES - Analysis of Foreign Currency Derivatives (Details) - Currency risk - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | € 2,037,447 | € 965,680 |
Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | (5,368) | (4,554) |
U.S. Dollar | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 1,338,800 | 487,336 |
U.S. Dollar | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets | 2,826 | |
Derivative financial liabilities | (1,324) | |
Pound Sterling | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 175,247 | 138,609 |
Pound Sterling | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets | 613 | |
Derivative financial liabilities | (4,639) | |
Japanese Yen | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 272,183 | 113,596 |
Japanese Yen | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets | 923 | |
Derivative financial liabilities | (2,901) | |
Swiss Franc | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 87,632 | 64,229 |
Swiss Franc | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities | (1,716) | (1,182) |
Chinese Yuan | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 57,094 | 45,434 |
Chinese Yuan | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets | 55 | |
Derivative financial liabilities | (82) | |
Other | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 106,491 | 116,476 |
Other | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets | € 322 | |
Derivative financial liabilities | € (2,817) |
CURRENT FINANCIAL ASSETS AND _6
CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES - Reclassified Gains and Losses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | |||
Net (costs)/revenues | € (22,055) | € 3,777 | € 19,724 |
Income tax benefit/(expense) | 6,153 | (1,054) | (5,503) |
Total recognized in the consolidated income statement | (15,902) | 2,723 | 14,221 |
Net (costs)/revenues | |||
Disclosure of detailed information about financial instruments [line items] | |||
Net (costs)/revenues | € (22,055) | € 3,777 | € 19,724 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) € / shares in Units, € in Thousands | Aug. 29, 2019shares | Apr. 12, 2019EUR (€)€ / shares | Apr. 13, 2018EUR (€)€ / shares | Apr. 14, 2017EUR (€)€ / shares | Dec. 31, 2019EUR (€)vote€ / sharesshares | Dec. 31, 2018EUR (€)€ / sharesshares | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) |
Disclosure of reserves within equity [line items] | ||||||||
Equity | € 1,487,288 | € 1,353,839 | € 783,936 | € 329,805 | ||||
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 | 5,768,544 | ||||||
Legal reserve | 65 | 29 | ||||||
Reserve of share-based payments | 46,539 | 52,198 | ||||||
Cash distribution paid (in Euro per share) | € / shares | € 1.03 | € 0.71 | € 0.635 | |||||
Cash distribution of reserves | € 193,328 | € 133,939 | € 119,985 | |||||
Dividends paid to equity holders of parent, classified as financing activities | 192,664 | 133,095 | 0 | |||||
Loss on remeasurement of defined benefit plans | 2,078 | (385) | 730 | |||||
Payments from changes in ownership interests in subsidiaries that do not result in loss of control | 386,749 | € 100,093 | 0 | |||||
Authorized repurchase amount | € 1,500,000 | |||||||
Common Shares | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Number of shares issued (in shares) | shares | 193,923,499 | 193,923,499 | ||||||
Shares repurchased (in shares) | shares | 2,907,702 | 1,033,218 | ||||||
Special Voting Shares | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Number of shares issued (in shares) | shares | 63,349,111 | 56,497,618 | ||||||
Shares repurchased (in shares) | shares | (6,854,047) | |||||||
Share capital | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Equity | € 2,573 | € 2,504 | € 2,504 | € 2,504 | ||||
Nominal value of shares (in Euros per share) | € / shares | € 0.01 | € 0.01 | ||||||
Treasury shares | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Treasury reserve | € 486,892 | € 100,143 | ||||||
Treasury shares | Common Shares | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Number of shares issued (in shares) | shares | 8,640,176 | 6,002,843 | ||||||
Treasury shares | Special Voting Shares | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Number of shares issued (in shares) | shares | 2,190 | 4,744 | ||||||
Shares repurchased (in shares) | shares | 3,902 | |||||||
FFS | ||||||||
Disclosure of reserves within equity [line items] | ||||||||
Loss on remeasurement of defined benefit plans | € 3 | € 33 | ||||||
Ownership interest (percent) | 49.90% |
EQUITY - Changes in Outstanding
EQUITY - Changes in Outstanding Shares (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019EUR (€)shares | Dec. 31, 2018EUR (€)shares | Dec. 31, 2017shares | |
Disclosure of classes of share capital [line items] | |||
Share repurchases | € | € 386,749 | € 100,093 | |
Common Shares | |||
Disclosure of classes of share capital [line items] | |||
Balance at January 1, 2018 (in shares) | 187,920,656 | ||
Shares repurchased under share repurchase program and other changes (in shares) | (2,907,702) | (1,033,218) | |
Balance at December 31, 2018 (in shares) | 185,283,323 | 187,920,656 | |
Share repurchases | € | € 386,094 | ||
Special Voting Shares | |||
Disclosure of classes of share capital [line items] | |||
Balance at January 1, 2018 (in shares) | 56,492,874 | ||
Shares repurchased under share repurchase program and other changes (in shares) | 6,854,047 | ||
Balance at December 31, 2018 (in shares) | 63,346,921 | 56,492,874 | |
Total | |||
Disclosure of classes of share capital [line items] | |||
Balance at January 1, 2018 (in shares) | 244,413,530 | ||
Balance at December 31, 2018 (in shares) | 248,630,244 | 244,413,530 | |
PSU and RSU Awards Under Equity Incentive Plan | Common Shares | |||
Disclosure of classes of share capital [line items] | |||
Shares repurchased under share repurchase program and other changes (in shares) | 270,369 | ||
PSUs | |||
Disclosure of classes of share capital [line items] | |||
Number of outstanding awards that had vested (Shares) | 230,282 | 0 | 0 |
RSUs | |||
Disclosure of classes of share capital [line items] | |||
Number of outstanding awards that had vested (Shares) | 40,087 | 0 | 0 |
EQUITY - Other Comprehensive In
EQUITY - Other Comprehensive Income (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Items that will not be reclassified to the consolidated income statement in subsequent periods: | |||
(Losses)/Gains on remeasurement of defined benefit plans | € (2,078) | € 385 | € (730) |
Total items that will not be reclassified to the consolidated income statement in subsequent periods | (2,078) | 385 | (730) |
Items that may be reclassified to the consolidated income statement in subsequent periods: | |||
(Losses)/Gains on cash flow hedging instruments arising during the period | (24,327) | (9,257) | 54,695 |
Losses/(Gains) on cash flow hedging instruments reclassified to the consolidated income statement | 22,055 | (3,777) | (19,724) |
(Losses)/Gains on cash flow hedging instruments | (2,272) | (13,034) | 34,971 |
Exchange differences on translating foreign operations | 2,652 | 5,986 | (15,346) |
Total items that may be reclassified to the consolidated income statement in subsequent periods | 380 | (7,048) | 19,625 |
Total other comprehensive income | (1,698) | (6,663) | 18,895 |
Related tax impact | 1,066 | 3,520 | (9,554) |
Total other comprehensive (loss)/income, net of tax | € (632) | € (3,143) | € 9,341 |
EQUITY - Tax Effect Relating to
EQUITY - Tax Effect Relating to Other Comprehensive Income (Loss) (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Share Capital Reserves and Other Equity Interests [Abstract] | |||
(Losses)/Gains on remeasurement of defined benefit plans, before tax | € (2,078) | € 385 | € (730) |
(Losses)/Gains on remeasurement of defined benefit plans, tax | 456 | (88) | 203 |
(Losses)/Gains on remeasurement of defined benefit plans, net of tax | (1,622) | 297 | (527) |
(Losses)/Gains on cash flow hedging instruments, before tax | (2,272) | (13,034) | 34,971 |
(Losses)/Gains on cash flow hedging instruments, tax | 610 | 3,608 | (9,757) |
(Losses)/Gains on cash flow hedging instruments, net of tax | (1,662) | (9,426) | 25,214 |
Exchange differences on translating foreign operations, before tax | 2,652 | 5,986 | (15,346) |
Exchange gains on translating foreign operations, tax | 0 | 0 | 0 |
Exchange gains on translating foreign operations, net of tax | 2,652 | 5,986 | (15,346) |
Total other comprehensive income | (1,698) | (6,663) | 18,895 |
Total other comprehensive (loss)/income, tax | 1,066 | 3,520 | (9,554) |
Total other comprehensive (loss)/income, net of tax | € (632) | € (3,143) | € 9,341 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2017shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019EUR (€)sharesvesting_tranchecompany | Dec. 31, 2018EUR (€)shares | Dec. 31, 2017EUR (€)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Expense from share-based payment transactions with employees | € | € 17,480,000 | € 22,491,000 | € 28,179,000 | ||||
Unrecognized compensation expense | € | € 19,298,000 | ||||||
PSU and RSU Awards Under Equity Incentive Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Number of shares to be received for each PSU or RSU (shares) | 1 | 1 | |||||
Performance period | 5 years | ||||||
PSUs | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Vesting percentages (percent) | 100.00% | ||||||
Performance period | 3 years | ||||||
Number of instruments granted in share-based payment arrangement (shares) | 174,000 | ||||||
Number of equal vesting tranches | vesting_tranche | 3 | ||||||
Number of companies in industry specific peer group | company | 8 | ||||||
Number of outstanding awards that had vested (Shares) | 230,282 | 0 | 0 | ||||
Percentage of Target Awards that Vest (percent) | 76.00% | 12.00% | 12.00% | ||||
RSUs | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Number of shares to be received for each PSU or RSU (shares) | 1 | ||||||
Number of instruments granted in share-based payment arrangement (shares) | 111,000 | 10,000 | 119,000 | ||||
Number of equal vesting tranches | vesting_tranche | 3 | ||||||
Number of outstanding awards that had vested (Shares) | 40,087 | 0 | 0 | ||||
Members of SMT 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) | 21,000 | 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) | 450,000 | ||||||
Bottom of range | PSUs | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Fair value of awards (in Euro per share) | € | € 110.57 | € 61.30 | € 59.36 | ||||
Bottom of range | RSUs | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Fair value of awards (in Euro per share) | € | 119.54 | 110.76 | 63 | ||||
Top of range | PSUs | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Fair value of awards (in Euro per share) | € | 111.64 | 111.92 | 72.06 | ||||
Top of range | RSUs | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Fair value of awards (in Euro per share) | € | € 120.56 | € 112.99 | € 64.64 | ||||
Achievement of target TSR ranking | PSUs | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Number of companies in industry specific peer group | company | 8 | ||||||
Percentage of Target Awards that Vest (percent) | 50.00% | ||||||
Achievement of target EBITDA | PSUs | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Percentage of Target Awards that Vest (percent) | 30.00% | ||||||
Achievement of technological innovation and new model development | PSUs | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Percentage of Target Awards that Vest (percent) | 20.00% |
SHARE-BASED COMPENSATION - Targ
SHARE-BASED COMPENSATION - Target Vesting Percentages Based on Company's TSR Rankings (Details) - PSUs | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of Target Awards that Vest (percent) | 76.00% | 12.00% | 12.00% | |
Ferrari TSR Ranking 1 | ||||
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 | 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 SMT 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 | ||||
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 | 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 SMT 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 | ||||
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 | 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 SMT 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 | ||||
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 | 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 SMT 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 | ||||
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 | 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 SMT 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 6 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of Target Awards that Vest (percent) | 0.00% | |||
Ferrari TSR Ranking 6 | Chief Executive Officer | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of Target Awards that Vest (percent) | 0.00% | |||
Ferrari TSR Ranking 6 | Members of SMT and Key Leaders | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of Target Awards that Vest (percent) | 0.00% | |||
10% | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of Target Awards that Vest (percent) | 140.00% | |||
5% | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of Target Awards that Vest (percent) | 120.00% | |||
Business Plan Target | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of Target Awards that Vest (percent) | 100.00% | |||
-5% | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of Target Awards that Vest (percent) | 80.00% | |||
-5% | ||||
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 - € / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date share price (in Euros per share) | € 122.60 | € 113.70 | € 66.85 |
Expected volatility (percent) | 26.50% | 16.70% | 17.40% |
Dividend yield (percent) | 0.83% | 0.90% | 1.20% |
Risk-free rate (percent) | 0.00% | 0.00% | 0.00% |
SHARE-BASED COMPENSATION - Outs
SHARE-BASED COMPENSATION - Outstanding Number of PSUs and RSUs (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of other equity instruments outstanding at beginning of period (shares) | 686,526 | 686,933 | 0 |
Granted (shares) | 175,307 | 20,793 | 686,933 |
Forfeited (shares) | (32,832) | (21,200) | 0 |
Vested (shares) | (230,282) | 0 | 0 |
Number of other equity instruments outstanding at end of period (shares) | 598,719 | 686,526 | 686,933 |
RSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of other equity instruments outstanding at beginning of period (shares) | 118,264 | 118,467 | 0 |
Granted (shares) | 110,968 | 10,397 | 118,467 |
Forfeited (shares) | (18,000) | (10,600) | 0 |
Vested (shares) | (40,087) | 0 | 0 |
Number of other equity instruments outstanding at end of period (shares) | 171,145 | 118,264 | 118,467 |
EMPLOYEE BENEFITS - Group's Pro
EMPLOYEE BENEFITS - Group's Provision for Employee Benefits (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of defined benefit plans [line items] | ||
Total present value of defined benefit obligations | € 21,929 | € 21,680 |
Total provisions for employee benefits | 88,116 | 86,575 |
Other provisions for employees | ||
Disclosure of defined benefit plans [line items] | ||
Total provisions for employee benefits | 66,187 | 64,895 |
Italian employee severance indemnity (TFR) | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of defined benefit obligations | 21,795 | 21,195 |
Pension plans | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of defined benefit obligations | € 134 | € 485 |
EMPLOYEE BENEFITS - Expected Be
EMPLOYEE BENEFITS - Expected Benefit Payments (Details) € in Thousands | Dec. 31, 2019EUR (€) |
Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | € 14,097 |
Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 621 |
2020 | Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,396 |
2020 | Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 2 |
2021 | Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,677 |
2021 | Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 2 |
2022 | Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,808 |
2022 | Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 2 |
2023 | Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,531 |
2023 | Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 2 |
2024 | Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 1,599 |
2024 | Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 2 |
Beyond 2024 | Italian employee severance indemnity (TFR) | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | 6,086 |
Beyond 2024 | Pension plans | |
Disclosure of net defined benefit liability (asset) [line items] | |
Expected benefit payments | € 611 |
EMPLOYEE BENEFITS - Changes in
EMPLOYEE BENEFITS - Changes in Defined Benefit Obligation (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit obligation | € 21,680 | € 23,245 |
Included in the consolidated income statement | (492) | 55 |
Included in other comprehensive income/(loss) | 2,075 | (418) |
Other | (1,334) | (1,202) |
Benefits paid | (1,514) | (1,789) |
Other changes | 180 | 587 |
Net defined benefit obligation | 21,929 | 21,680 |
Italian employee severance indemnity (TFR) | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit obligation | 21,195 | 22,641 |
Included in the consolidated income statement | 0 | 0 |
Included in other comprehensive income/(loss) | 1,899 | (390) |
Other | (1,299) | (1,056) |
Benefits paid | (1,490) | (1,620) |
Other changes | 191 | 564 |
Net defined benefit obligation | 21,795 | 21,195 |
Pension plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit obligation | 485 | 604 |
Included in the consolidated income statement | (492) | 55 |
Included in other comprehensive income/(loss) | 176 | (28) |
Other | (35) | (146) |
Benefits paid | (24) | (169) |
Other changes | (11) | 23 |
Net defined benefit obligation | € 134 | € 485 |
EMPLOYEE BENEFITS - Amounts Rec
EMPLOYEE BENEFITS - Amounts Recognized in Consolidated income Statement (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | |||
Current service cost | € 26 | € 55 | € 141 |
Interest expense | 0 | 0 | 1 |
Past service cost, net defined benefit liability (asset) | (518) | 0 | 0 |
Post-employment benefit expense, defined benefit plans | (492) | 55 | 142 |
Italian employee severance indemnity (TFR) | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Past service cost, net defined benefit liability (asset) | 0 | 0 | 0 |
Post-employment benefit expense, defined benefit plans | 0 | 0 | 0 |
Pension plans | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 26 | 55 | 141 |
Interest expense | 0 | 0 | 1 |
Past service cost, net defined benefit liability (asset) | (518) | 0 | 0 |
Post-employment benefit expense, defined benefit plans | € (492) | € 55 | € 142 |
EMPLOYEE BENEFITS - Sensitivity
EMPLOYEE BENEFITS - Sensitivity of Defined Benefit Obligation (Details) - Actuarial assumption of discount rates - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Changes in assumption of 1% discount rate | € (1,695) | € (1,647) |
Changes in assumption of -1% discount rate | € 1,951 | € 1,891 |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit expense, defined contribution plans | € 13,650 | € 11,930 | € 11,987 |
Employee benefits | € 88,116 | € 86,575 | |
Italian employee severance indemnity (TFR) | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Actuarial assumption of discount rates (percent) | 0.70% | 1.70% | 1.50% |
Average duration of benefit obligation | 9 years | ||
Pension plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Actuarial assumption of discount rates (percent) | 0.00% | 0.80% | 0.70% |
Average duration of benefit obligation | 14 years | ||
Long-term bonus benefit provision | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefits | € 62,890 | € 61,940 | |
Jubilee benefits provision | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employee benefits | € 3,297 | € 2,955 | |
Years of service achieved | 30 years |
PROVISIONS - Changes in provisi
PROVISIONS - Changes in provisions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [line items] | |||
Provisions, beginning balance | € 182,539 | ||
Additional provisions | 43,561 | ||
Use and other changes | (65,417) | ||
Translation differences and other | 4,889 | ||
Provisions, ending balance | 165,572 | € 182,539 | |
Warranty and recall campaigns provision | |||
Disclosure of other provisions [line items] | |||
Provisions, beginning balance | 111,129 | ||
Additional provisions | 28,131 | ||
Use and other changes | (32,584) | ||
Translation differences and other | 1,135 | ||
Provisions, ending balance | 107,811 | 111,129 | |
Legal proceedings and disputes | |||
Disclosure of other provisions [line items] | |||
Provisions, beginning balance | 37,154 | ||
Additional provisions | 3,037 | ||
Use and other changes | (14,280) | ||
Translation differences and other | 1,186 | ||
Provisions, ending balance | 27,097 | 37,154 | |
Other risks | |||
Disclosure of other provisions [line items] | |||
Provisions, beginning balance | 34,256 | ||
Additional provisions | 12,393 | 11,420 | € 8,339 |
Use and other changes | (18,553) | ||
Translation differences and other | 2,568 | ||
Provisions, ending balance | € 30,664 | € 34,256 |
PROVISIONS - Narrative (Details
PROVISIONS - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2018 | |
Disclosure of other provisions [line items] | |||
Additional provisions | € 43,561 | ||
Provision for estimate of future costs | 165,572 | € 182,539 | |
Cost of sales | Takata Airbag Inflators | |||
Disclosure of other provisions [line items] | |||
Additional provisions | € 36,994 | ||
Provision for estimate of future costs | € 15,519 | € 24,513 |
PROVISIONS - Other Risks Provis
PROVISIONS - Other Risks Provision (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [line items] | |||
Additional provisions | € 43,561 | ||
Other risks | |||
Disclosure of other provisions [line items] | |||
Additional provisions | 12,393 | € 11,420 | € 8,339 |
Cost of sales | Other risks | |||
Disclosure of other provisions [line items] | |||
Additional provisions | 9,563 | 11,420 | 8,065 |
Selling, general and administrative costs | Other risks | |||
Disclosure of other provisions [line items] | |||
Additional provisions | € 2,830 | € 0 | € 274 |
DEBT - Schedule of Borrowings (
DEBT - Schedule of Borrowings (Details) € in Thousands | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | € 1,927,167 |
Proceeds from borrowings | 629,018 |
Repayments of borrowings | (549,014) |
Interest accrued and other | 4,287 |
Translation differences | 14,744 |
Total debt, ending balance | 2,089,737 |
Bonds and notes | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 1,198,109 |
Proceeds from borrowings | 298,316 |
Repayments of borrowings | (315,395) |
Interest accrued and other | 4,440 |
Translation differences | 0 |
Total debt, ending balance | 1,185,470 |
Asset-backed financing (Securitizations) | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 682,581 |
Proceeds from borrowings | 282,113 |
Repayments of borrowings | (189,940) |
Interest accrued and other | (82) |
Translation differences | 13,597 |
Total debt, ending balance | 788,269 |
Lease liabilities | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 673 |
Proceeds from borrowings | 14,788 |
Repayments of borrowings | (18,684) |
Interest accrued and other | 0 |
Translation differences | 184 |
Total debt, ending balance | 60,496 |
Borrowings from banks | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 35,984 |
Proceeds from borrowings | 0 |
Repayments of borrowings | (3,516) |
Interest accrued and other | (71) |
Translation differences | 549 |
Total debt, ending balance | 32,946 |
Other debt | |
Disclosure of detailed information about borrowings [line items] | |
Total debt, beginning balance | 9,820 |
Proceeds from borrowings | 33,801 |
Repayments of borrowings | (21,479) |
Interest accrued and other | 0 |
Translation differences | 414 |
Total debt, ending balance | € 22,556 |
DEBT - Borrowings by Nature and
DEBT - Borrowings by Nature and Maturity (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | |||
Total debt | € 2,089,737 | € 1,990,702 | € 1,927,167 |
Bonds and notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 1,185,470 | 1,198,109 | 1,198,109 |
Asset-backed financing (Securitizations) | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 788,269 | 682,581 | 682,581 |
Lease liabilities | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 60,496 | 64,208 | 673 |
Borrowings from banks | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 32,946 | 35,984 | 35,984 |
Other debt | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 22,556 | € 9,820 | 9,820 |
Due within one year | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 421,323 | 352,409 | |
Due within one year | Bonds and notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 7,260 | 7,616 | |
Due within one year | Asset-backed financing (Securitizations) | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 338,366 | 300,051 | |
Due within one year | Lease liabilities | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 20,195 | 673 | |
Due within one year | Borrowings from banks | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 32,946 | 34,249 | |
Due within one year | Other debt | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 22,556 | 9,820 | |
Due between one and five years | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 1,355,631 | 1,574,758 | |
Due between one and five years | Bonds and notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 879,834 | 1,190,493 | |
Due between one and five years | Asset-backed financing (Securitizations) | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 449,903 | 382,530 | |
Due between one and five years | Lease liabilities | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 25,894 | 0 | |
Due between one and five years | Borrowings from banks | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 0 | 1,735 | |
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 | 312,783 | 0 | |
Due beyond five years | Bonds and notes | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 298,376 | 0 | |
Due beyond five years | Asset-backed financing (Securitizations) | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 0 | 0 | |
Due beyond five years | Lease liabilities | |||
Disclosure of detailed information about borrowings [line items] | |||
Total debt | 14,407 | 0 | |
Due beyond five years | Borrowings from banks | |||
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) | Dec. 31, 2019EUR (€)extension_option | Jul. 31, 2019EUR (€) | Jul. 16, 2019EUR (€) | Jan. 01, 2019EUR (€) | Nov. 16, 2017EUR (€) | Mar. 16, 2016EUR (€) | Dec. 31, 2019EUR (€)extension_option | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)extension_option | Dec. 31, 2018EUR (€) | Nov. 30, 2015EUR (€) |
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Debt | € 2,089,737,000 | € 1,990,702,000 | € 2,089,737,000 | € 1,927,167,000 | ||||||||
Right-of-use assets | 12,760,000 | |||||||||||
Lease liabilities | 63,535,000 | |||||||||||
1.5% Coupon Notes Due March 2023 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Borrowings, interest rate (percent) | 1.50% | |||||||||||
Principal amount of borrowings | € 500,000,000 | |||||||||||
Borrowings, issue price (percent) | 98.977% | |||||||||||
Proceeds from bonds | € 490,729,000 | |||||||||||
Voluntary prepayments made | € 115,395,000 | |||||||||||
Debt | 385,776,000 | 385,776,000 | 500,197,000 | |||||||||
Accrued interest | 4,567,000 | 4,567,000 | 5,938,000 | |||||||||
Bank loan | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Principal amount of borrowings | € 500,000,000 | |||||||||||
2.25% Coupon Notes Due January 2021 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Borrowings, interest rate (percent) | 0.25% | |||||||||||
Principal amount of borrowings | € 700,000,000 | |||||||||||
Borrowings, issue price (percent) | 99.557% | |||||||||||
Proceeds from bonds | € 694,172,000 | |||||||||||
Voluntary prepayments made | € 200,000,000 | |||||||||||
Debt | 499,824,000 | 499,824,000 | 697,912,000 | |||||||||
Accrued interest | 1,199,000 | 1,199,000 | 1,678,000 | |||||||||
2029 Notes | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Borrowings, interest rate (percent) | 1.12% | |||||||||||
Principal amount of borrowings | € 150,000,000 | |||||||||||
Debt | 149,891,000 | 149,891,000 | ||||||||||
Accrued interest | 700,000 | 700,000 | ||||||||||
2029 Notes and 2031 Notes | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Proceeds from bonds | € 298,316,000 | |||||||||||
2031 Notes | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Borrowings, interest rate (percent) | 1.27% | |||||||||||
Principal amount of borrowings | € 150,000,000 | |||||||||||
Debt | 149,979,000 | 149,979,000 | ||||||||||
Accrued interest | 794,000 | 794,000 | ||||||||||
U.S Dollar Denominated Credit Facility Entered in on November 17, 2015 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Principal amount of borrowings | $ | $ 50,000,000 | |||||||||||
Other borrowings from banks | 31,211,000 | 31,211,000 | $ 35,000,000 | 30,694,000 | ||||||||
Various Short and Medium Term Credit Facilities | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Other borrowings from banks | 1,735,000 | 1,735,000 | 5,290,000 | |||||||||
The Facility | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Principal amount of borrowings | 500,000,000 | |||||||||||
Unsecured Committed Revolving Credit Facility Entered Into December 2019 [Member] | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Principal amount of borrowings | € 350,000,000 | € 350,000,000 | ||||||||||
Borrowings maturity | 5 years | 5 years | ||||||||||
Number of term extension options | extension_option | 2 | 2 | 2 | |||||||||
Term of extension period | 1 year | |||||||||||
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 | 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 | 0.75% | 0.75% | 0.75% | |||||||||
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 | € 27,524,000 | € 27,524,000 | € 26,497,000 | |||||||||
Pledged retail financial receivables | FFS Inc. | Revolving Securitization Program | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Capacity under borrowing facility | $ | $ 600,000,000 | |||||||||||
Proceeds sale of financial receivables | $ | $ 547,000,000 | $ 424,000,000 | ||||||||||
Pledged retail financial receivables | LIBOR | FFS Inc. | Revolving Securitization Program | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Borrowings, adjustment to interest rate basis | 0.65% | 0.65% | 0.65% | |||||||||
Pledged leasing financial receivables | FFS Inc. | Revolving Securitization Program | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Capacity under borrowing facility | $ | $ 250,000,000 | |||||||||||
Proceeds sale of financial receivables | $ | 238,000,000 | 223,000,000 | ||||||||||
Pledged leasing financial receivables | LIBOR | FFS Inc. | Revolving Securitization Program | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Borrowings, adjustment to interest rate basis | 0.65% | 0.65% | 0.65% | |||||||||
Pledged credit lines | FFS Inc. | Revolving Securitization Program | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Capacity under borrowing facility | $ | $ 135,000,000 | |||||||||||
Proceeds sale of financial receivables | $ | $ 101,000,000 | $ 134,000,000 | ||||||||||
Pledged credit lines | LIBOR | FFS Inc. | Revolving Securitization Program | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Borrowings, adjustment to interest rate basis | 1.15% | 1.15% | 1.15% | |||||||||
Impact of IFRS 16 adoption | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Debt | 63,535,000 | |||||||||||
Right-of-use assets | 63,535,000 | |||||||||||
Lease liabilities | € 63,535,000 |
OTHER LIABILITIES - Analysis of
OTHER LIABILITIES - Analysis of Other Liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Other Liabilities [Line Items] | ||
Deferred income | € 275,439 | € 271,817 |
Advances and security deposits | 348,899 | 145,394 |
Accrued expenses | 85,965 | 81,408 |
Payables to personnel | 28,272 | 25,434 |
Social security payables | 20,334 | 18,209 |
Other | 41,106 | 47,481 |
Total other liabilities | 800,015 | 589,743 |
Maintenance and power warranty programs | ||
Disclosure of Other Liabilities [Line Items] | ||
Deferred income | € 219,209 | € 204,987 |
OTHER LIABILITIES - Narrative (
OTHER LIABILITIES - Narrative (Details) - Maintenance and power warranty programs € in Millions | Dec. 31, 2019EUR (€) |
2020 | |
Disaggregation of Revenue [Line Items] | |
Expected amounts to be recognized in revenue | € 61 |
2021 | |
Disaggregation of Revenue [Line Items] | |
Expected amounts to be recognized in revenue | 44 |
2022 | |
Disaggregation of Revenue [Line Items] | |
Expected amounts to be recognized in revenue | 35 |
Afterwards | |
Disaggregation of Revenue [Line Items] | |
Expected amounts to be recognized in revenue | € 79 |
OTHER LIABILITIES - Contract Li
OTHER LIABILITIES - Contract Liabilities (Details) € in Thousands | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Maintenance and power warranty programs | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
At January 1, 2019 | € 204,987 |
Additional amounts arising during the period | 90,998 |
Amounts recognized within revenue | (76,776) |
Other changes | 0 |
At December 31, 2019 | 219,209 |
Advances from customers | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
At January 1, 2019 | 139,852 |
Additional amounts arising during the period | 377,950 |
Amounts recognized within revenue | (176,623) |
Other changes | 44 |
At December 31, 2019 | € 341,223 |
OTHER LIABILITIES - Analysis _2
OTHER LIABILITIES - Analysis of Other Liabilities excluding Accrued Expenses and Deferred Income (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Other Liabilities [Line Items] | ||
Total other liabilities (excluding accrued expenses and deferred income) | € 438,611 | € 236,518 |
Due within one year | ||
Disclosure of Other Liabilities [Line Items] | ||
Total other liabilities (excluding accrued expenses and deferred income) | 422,462 | 223,138 |
Due between one and five years | ||
Disclosure of Other Liabilities [Line Items] | ||
Total other liabilities (excluding accrued expenses and deferred income) | 10,083 | 6,960 |
Due beyond five years | ||
Disclosure of Other Liabilities [Line Items] | ||
Total other liabilities (excluding accrued expenses and deferred income) | € 6,066 | € 6,420 |
TRADE PAYABLES (Details)
TRADE PAYABLES (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade payables | € 711,539 | € 653,751 |
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, 2019 | Dec. 31, 2018 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | € 5,446,372 | € 4,851,733 |
Recurring fair value measurement | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 915,043 | 805,594 |
Liabilities | 14,791 | 11,342 |
Recurring fair value measurement | Other financial liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | 14,791 | 11,342 |
Recurring fair value measurement | Cash and cash equivalents | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 897,946 | 793,664 |
Recurring fair value measurement | Investments and other financial assets - Liberty Media | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 7,674 | 5,142 |
Recurring fair value measurement | Current financial assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 9,423 | 6,788 |
Recurring fair value measurement | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 905,620 | 798,806 |
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 | 897,946 | 793,664 |
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 | 7,674 | 5,142 |
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 | 9,423 | 6,788 |
Liabilities | 14,791 | 11,342 |
Recurring fair value measurement | Level 2 | Other financial liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | 14,791 | 11,342 |
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 | 0 |
Recurring fair value measurement | Level 2 | Current financial assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 9,423 | 6,788 |
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 | 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, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Financial assets, at carrying amounts | € 966,448 | € 878,496 |
Investment | 966,448 | 878,496 |
Receivables from financing activities | ||
Disclosure of financial assets [line items] | ||
Financial assets, at carrying amounts | 966,448 | 878,496 |
Investment | 966,448 | 878,496 |
Client financing | ||
Disclosure of financial assets [line items] | ||
Financial assets, at carrying amounts | 950,842 | 851,209 |
Investment | 950,842 | 851,209 |
Dealer Financing | ||
Disclosure of financial assets [line items] | ||
Financial assets, at carrying amounts | 15,606 | 27,287 |
Investment | 15,606 | 27,287 |
Debt | ||
Disclosure of financial assets [line items] | ||
Financial liabilities, at carrying amount | 2,089,737 | 1,927,167 |
Financial liabilities, at fair value | € 2,103,871 | € 1,921,937 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - EUR (€) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Total emoluments | € 19,839,000 | € 16,674,000 | € 16,015,000 |
Compensation settled in treasury shares | 5,168,000 | 2,759,000 | 4,737,000 |
Wages and salaries | 385,182,000 | 323,936,000 | 313,471,000 |
Key management personnel compensation, other long-term employee benefits | 314,000 | ||
Non-executive Directors | |||
Disclosure of transactions between related parties [line items] | |||
Compensation settled in treasury shares | 0 | 0 | 418,000 |
Key management personnel of entity or parent | |||
Disclosure of transactions between related parties [line items] | |||
Wages and salaries | 14,671,000 | 13,915,000 | 10,964,000 |
Ferrari N.V. (Ferrari) | Directors | |||
Disclosure of transactions between related parties [line items] | |||
Total emoluments | 10,260,000 | 17,043,000 | 17,767,000 |
Compensation for salary | 1,786,000 | ||
Compensation settled in treasury shares | € 8,474,000 | 15,963,000 | 16,490,000 |
Ferrari N.V. and Ferrari S.p.A. | Directors | |||
Disclosure of transactions between related parties [line items] | |||
Total emoluments | 17,043,000 | 17,767,000 | |
Compensation for salary | € 1,080,000 | € 1,277,000 |
RELATED PARTY TRANSACTIONS - Ne
RELATED PARTY TRANSACTIONS - Net Revenues, Emoluments, Assets and Liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Net revenues | € 3,766,615 | € 3,420,321 | € 3,416,890 |
Costs | 2,153,480 | 1,953,441 | 1,986,792 |
Net financial expenses | 42,082 | 23,563 | 29,260 |
Trade receivables | 231,439 | 211,399 | |
Compensation payable to the former Chairman | 711,539 | 653,751 | |
Other current assets | 92,830 | 64,295 | |
Other liabilities | 800,015 | 589,743 | |
Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 152,971 | 233,635 | 326,475 |
Costs | 56,975 | 92,834 | 107,415 |
Net financial expenses | 2,000 | 1,370 | 1,191 |
Trade receivables | 50,279 | 48,467 | |
Compensation payable to the former Chairman | 16,257 | 28,559 | |
Other current assets | 1,735 | 1,486 | |
Other liabilities | 24,444 | 30,642 | |
Maserati | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 143,091 | 217,922 | 315,407 |
Costs | 6,275 | 3,982 | 4,698 |
Net financial expenses | 0 | 0 | 0 |
Trade receivables | 48,617 | 39,077 | |
Compensation payable to the former Chairman | 5,449 | 6,099 | |
Other current assets | 0 | 0 | |
Other liabilities | 21,821 | 30,594 | |
FCA US LLC | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 0 | 0 | 6 |
Costs | 17,954 | 28,486 | 44,882 |
Net financial expenses | 0 | 0 | 0 |
Trade receivables | 0 | 135 | |
Compensation payable to the former Chairman | 4,636 | 6,332 | |
Other current assets | 0 | 0 | |
Other liabilities | 0 | 0 | |
Magneti Marelli | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 352 | 1,589 | 1,866 |
Costs | 10,444 | 40,343 | 36,670 |
Net financial expenses | 0 | 0 | 0 |
Trade receivables | 0 | 2,774 | |
Compensation payable to the former Chairman | 0 | 9,427 | |
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 | 8,637 | 12,106 | 6,754 |
Costs | 8,028 | 7,193 | 7,007 |
Net financial expenses | 1,965 | 1,370 | 1,191 |
Trade receivables | 1,165 | 5,896 | |
Compensation payable to the former Chairman | 3,598 | 4,689 | |
Other current assets | 203 | 1,481 | |
Other liabilities | 581 | 44 | |
FCA Group Companies | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 152,080 | 231,617 | 324,033 |
Costs | 42,701 | 80,004 | 93,257 |
Net financial expenses | 1,965 | 1,370 | 1,191 |
Trade receivables | 49,782 | 47,882 | |
Compensation payable to the former Chairman | 13,683 | 26,547 | |
Other current assets | 203 | 1,481 | |
Other liabilities | 22,402 | 30,638 | |
Exor Group Companies (Excluding FCA Group) | Related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 281 | 311 | 283 |
Costs | 368 | 179 | 492 |
Net financial expenses | 4 | 0 | 0 |
Trade receivables | 350 | 377 | |
Compensation payable to the former Chairman | 9 | 13 | |
Other current assets | 237 | 0 | |
Other liabilities | 207 | 4 | |
Other Related Parties | Other related parties | |||
Disclosure of transactions between related parties [line items] | |||
Net revenues | 610 | 1,707 | 2,159 |
Costs | 13,906 | 12,651 | 13,666 |
Net financial expenses | 31 | 0 | 0 |
Trade receivables | 147 | 208 | |
Compensation payable to the former Chairman | 2,565 | 1,999 | |
Other current assets | 1,295 | 5 | |
Other liabilities | 1,835 | 0 | |
Ferrari N.V. (Ferrari) | Directors | |||
Disclosure of transactions between related parties [line items] | |||
Total emoluments | € 10,260 | € 17,043 | € 17,767 |
COMMITMENTS - Arrangements with
COMMITMENTS - Arrangements with sponsors (Details) € in Thousands | Dec. 31, 2019EUR (€) |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | € 92,963 |
Due within one year | |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | 72,352 |
Due between one and three years | |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | 16,208 |
Due between three and five years | |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | 4,403 |
Due beyond five years | |
Disclosure of commitments [Line Items] | |
Minimum purchase obligations | € 0 |
COMMITMENTS - Operating Leases
COMMITMENTS - Operating Leases (Details) € in Thousands | Dec. 31, 2019EUR (€) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum lease payments under lease agreements | € 63,603 |
Due within one year | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum lease payments under lease agreements | 20,899 |
Due between one and three years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum lease payments under lease agreements | 17,242 |
Due between three and five years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum lease payments under lease agreements | 10,577 |
Due beyond five years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum lease payments under lease agreements | € 14,885 |
QUALITATIVE AND QUANTITATIVE _2
QUALITATIVE AND QUANTITATIVE INFORMATION ON FINANCIAL RISKS (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of credit risk exposure [line items] | |||
Exchange gain (loss) on translating foreign operations | € 2,652 | € 5,986 | € (15,346) |
Group's gross debt that bears floating rates of interest (percent) | 39.00% | ||
Receivables from financing activities | € 966,448 | 878,496 | |
Allowance for doubtful accounts | 27,171 | 24,346 | |
Trade receivables | 231,439 | 211,399 | |
Overdue | |||
Disclosure of credit risk exposure [line items] | |||
Receivables from financing activities | 59,448 | 53,800 | |
Trade receivables | € 46,778 | 36,772 | |
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 | € 74,700 | 106,400 | |
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 | € 205 | € 251 | |
Revenue | Currency risk | |||
Disclosure of credit risk exposure [line items] | |||
Risk exposure percent | 53.00% | 49.00% | |
U.S. Dollar | |||
Disclosure of credit risk exposure [line items] | |||
Trade receivables | € 75,138 | € 68,410 | |
U.S. Dollar | Revenue | Currency risk | |||
Disclosure of credit risk exposure [line items] | |||
Risk exposure percent | 53.00% | 57.00% | |
Japanese Yen | |||
Disclosure of credit risk exposure [line items] | |||
Trade receivables | € 11,018 | € 1,571 | |
Japanese Yen | Revenue | Currency risk | |||
Disclosure of credit risk exposure [line items] | |||
Risk exposure percent | 10.00% | 10.00% | |
Financial Assets Excluding Assets Measured At Fair Value | |||
Disclosure of credit risk exposure [line items] | |||
Exchange gain (loss) on translating foreign operations | € (24,237) | € (13,293) | (18,059) |
Loans to consumers | |||
Disclosure of credit risk exposure [line items] | |||
Allowance for doubtful accounts | € 7,480 | 6,457 | € 6,948 |
Bottom of range | Revenue | Currency risk | |||
Disclosure of credit risk exposure [line items] | |||
Average risk exposure hedged (percent) | 90.00% | ||
Borrowings from banks | Bank loan | |||
Disclosure of credit risk exposure [line items] | |||
Capacity under borrowing facility | € 350,000 | € 500,000 |
ENTITY-WIDE DISCLOSURES - Net R
ENTITY-WIDE DISCLOSURES - Net Revenues by Geographic Location (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Entity Location [Line Items] | |||
Total net revenues | € 3,766,615 | € 3,420,321 | € 3,416,890 |
Italy | |||
Entity Location [Line Items] | |||
Total net revenues | 363,779 | 449,312 | 563,921 |
Rest of EMEA | |||
Entity Location [Line Items] | |||
Total net revenues | 1,636,831 | 1,400,443 | 1,308,261 |
Americas | |||
Entity Location [Line Items] | |||
Total net revenues | 1,010,204 | 922,639 | 920,858 |
China, Hong Kong and Taiwan (on a combined basis) | |||
Entity Location [Line Items] | |||
Total net revenues | 350,330 | 274,268 | 282,550 |
Rest of APAC | |||
Entity Location [Line Items] | |||
Total net revenues | € 405,471 | € 373,659 | € 341,300 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Entity Location [Line Items] | |||
Property, plant and equipment | € 1,069,652 | € 850,550 | € 710,260 |
Goodwill | 785,182 | 785,182 | |
Intangible assets | 837,938 | 645,797 | € 440,456 |
Italy | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 1,043,821 | 844,218 | |
Goodwill | 785,182 | 785,182 | |
Intangible assets | 837,682 | 644,689 | |
Rest of EMEA | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 6,309 | 2,251 | |
Goodwill | 0 | 0 | |
Intangible assets | 0 | 0 | |
Americas | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 14,803 | 3,327 | |
Goodwill | 0 | 0 | |
Intangible assets | 0 | 850 | |
China, Hong Kong and Taiwan (on a combined basis) | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 1,574 | 351 | |
Goodwill | 0 | 0 | |
Intangible assets | 0 | 0 | |
Rest of APAC | |||
Entity Location [Line Items] | |||
Property, plant and equipment | 3,145 | 403 | |
Goodwill | 0 | 0 | |
Intangible assets | € 256 | € 258 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - EUR (€) € / shares in Units, € in Millions | Feb. 18, 2020 | Feb. 14, 2020 |
Potential ordinary share transactions | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Dividends declared (in Euro per share) | € 1.13 | |
Dividends declared, aggregate amount | € 210 | |
Common Shares | Major ordinary share transactions | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Number of shares repurchased (shares) | 209,326 | |
Consideration paid to repurchase shares | € 153.2 | |
Treasury shares | 8,849,502 |
Uncategorized Items - race-2019
Label | Element | Value |
Gross carrying amount [member] | Transitional Impact of IFRS 16 Adoption [Member] | ||
Property, plant and equipment | ifrs-full_PropertyPlantAndEquipment | € 63,535,000 |
Gross carrying amount [member] | Buildings [member] | Transitional Impact of IFRS 16 Adoption [Member] | ||
Property, plant and equipment | ifrs-full_PropertyPlantAndEquipment | 17,226,000 |
Gross carrying amount [member] | Construction in progress [member] | Transitional Impact of IFRS 16 Adoption [Member] | ||
Property, plant and equipment | ifrs-full_PropertyPlantAndEquipment | 0 |
Gross carrying amount [member] | Land [member] | Transitional Impact of IFRS 16 Adoption [Member] | ||
Property, plant and equipment | ifrs-full_PropertyPlantAndEquipment | 0 |
Gross carrying amount [member] | Plant, Machinery and Equipment [Member] | Transitional Impact of IFRS 16 Adoption [Member] | ||
Property, plant and equipment | ifrs-full_PropertyPlantAndEquipment | 10,011,000 |
Gross carrying amount [member] | Other property, plant and equipment [member] | Transitional Impact of IFRS 16 Adoption [Member] | ||
Property, plant and equipment | ifrs-full_PropertyPlantAndEquipment | 36,298,000 |
Lease Liabilities1 [Member] | Transitional Impact of IFRS 16 Adoption [Member] | ||
Borrowings | ifrs-full_Borrowings | € 63,535,000 |