Fair value measurement

12 Months Ended

Dec. 31, 2024

Fair Value Measurement [Abstract]

Fair value measurement

25. Fair value measurement

Assets and liabilities that are measured at fair value on a recurring basis

The following table shows the fair value hierarchy, based on observable and unobservable inputs, for financial assets

and liabilities measured at fair value on a recurring basis:

		At December 31,
		2024				2023
	Note	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
		(€ million)
Financial securities and equity instruments measured at FVOCI	13	€119	€29	€267	€415	€110	€23	€282	€415
Financial securities and equity instruments measured at FVPL	13	1,205	—	655	1,860	1,041	—	883	1,924
Derivative financial assets	17	—	380	—	380	—	40	—	40
Derivative operating assets	17	—	273	—	273	—	208	—	208
Collateral deposits	13	53	—	—	53	108	—	—	108
Receivables from financing activities	16	—	—	—	—	—	—	117	117
Trade receivables	16	—	27	—	27	—	49	—	49
Other receivables	16	—	—	66	66	—	—	76	76
Money market securities	18	19,127	—	—	19,127	17,691	—	—	17,691
Total Assets		€20,504	€709	€988	€22,201	€18,950	€320	€1,358	€20,628
Derivative financial liabilities	17	—	24	—	24	—	39	—	39
Derivative operating liabilities	17	—	656	1	657	—	1,005	40	1,045
Total Liabilities		€—	€680	€1	€681	€—	€1,044	€40	€1,084

The fair value of derivative financial assets and liabilities was measured by taking into consideration market

parameters at the balance sheet date and using valuation techniques widely accepted in the financial business environment, as

described below:

•the fair value of forward contracts, swaps and options hedging currency risk was determined by using valuation

techniques common in the financial markets and taking market parameters at the balance sheet date (in

particular, exchange rates, interest rates and volatility rates);

•the fair value of interest rate swaps and forward rate agreements was determined by taking the prevailing

interest rates at the balance sheet date and using the discounted expected cash flow method;

•the fair value of combined interest rate and currency swaps was determined using the exchange and interest

rates prevailing at the balance sheet date and the discounted expected cash flow method; and

•the fair value of swaps and options hedging commodity price risk was determined by using valuation techniques

common in the financial markets and taking market parameters at the balance sheet date (in particular,

underlying prices, interest rates and volatility rates).

The fair value of money market securities was also based on available market quotations.

The fair value of Receivables from financing activities, which are classified in Level 3 of the fair value hierarchy,

was estimated using discounted cash flow models. The most significant inputs used in this measurement were market

discount rates that reflected conditions applied in various reference markets on receivables with similar characteristics,

adjusted in order to take into account the credit risk of the counterparties.

The fair value of Other receivables is classified in Level 3 of the fair value hierarchy and was estimated using

discounted cash flow models. The most significant inputs used in this measurement were market discount rates.

For assets and liabilities recognized in the financial statements at fair value on a recurring basis, the Company

determined whether transfers occurred between levels in the hierarchy by re-assessing categorization at the end of each

reporting period.

The following table provides a reconciliation of the changes in items measured at fair value and categorized within

Level 3:

	Receivables from financing activities	Financial securities	Derivative  financial assets/ (liabilities)	Money market securities	Other receivables
	(€ million)
At January 1, 2024	€117	€1,165	€(40)	€—	€76
Change in scope of consolidation	—	(7)	—	—	—
Gains/(Losses) recognized in Consolidated Income Statement	—	(34)	—	—	(10)
Gains/(Losses) recognized in Other comprehensive income	—	(26)	39	—	—
Issues/Settlements	(117)	—	—	—	—
Purchases/Sales	—	(176)	—	—	—
At December 31, 2024	€—	€922	€(1)	€—	€66

	Receivables from financing activities	Financial securities	Derivative  financial assets/ (liabilities)	Money market securities	Other receivables
	(€ million)
At January 1, 2023	€259	€254	€(48)	€1	€89
Change in scope of consolidation	—	(28)	—	—	—
Gains/(Losses) recognized in Consolidated Income Statement	—	1	—	—	(13)
Gains/(Losses) recognized in Other comprehensive income	—	(151)	8	—	—
Issues/Settlements	(142)	—	—	—	—
Purchases/Sales	—	1,089	—	—	—
Transfers from Level 3	—	—	—	(1)	—
At December 31, 2023	€117	€1,165	€(40)	€—	€76

The gains/(losses) included in the Consolidated Income Statements were recognized within Net financial expenses/

(income). Of the total gains/(losses) recognized in Other comprehensive income, €39 million were recognized within Cash

flow reserves (€8 million at December 31, 2023), €(11) million were recognized within Currency translation differences

(€230 million at December 31, 2023) and €(15) million were recognized within Gains and losses from remeasurement of

financial assets (€79 million at December 31, 2023).

Assets and liabilities not measured at fair value on recurring basis

The carrying value of debt securities measured at amortized cost, current receivables and payables was a reasonable

approximation of fair value as the present value of future cash flows did not differ significantly from the carrying amount.

The carrying value of Cash at banks and Other cash equivalents usually approximated fair value due to the short

maturity of these instruments (refer to Note 18, Cash and cash equivalents for additional information).

The following table provides the carrying amount and fair value of financial assets and liabilities not measured at

fair value on a recurring basis:

		At December 31,
		2024		2023
	Note	Carrying amount	Fair Value	Carrying amount	Fair Value
		(€ million)
Dealer financing		€2,330	€2,329	€2,188	€2,184
Retail financing		8,494	7,855	5,505	5,364
Finance lease		299	325	133	133
Other receivables from financing activities		1,408	1,499	1,051	1,063
Total Receivables from financing activities(1)	16	€12,531	€12,008	€8,877	€8,744
Asset-backed financing		€10,016	€10,037	€4,778	€4,772
Notes		19,117	18,302	18,215	17,391
Borrowings from banks & Other debt		5,538	5,539	4,312	4,274
Total Debt, excluding Lease liabilities	22	€34,671	€33,878	€27,305	€26,437

______________________________________________________________________________________________________________________________

(1) Amount excludes receivables measured at FVPL

The carrying value of financial securities measured at amortized cost was a reasonable approximation of fair value

as the present value of future cash flows did not differ significantly from the carrying amount. Refer to Note 13, Financial

assets for additional information.

The carrying value of financial receivables at amortized cost was a reasonable approximation of fair value as the

present value of future cash flows did not differ significantly from the carrying amount. Refer to Note 13, Financial assets for

additional information.

Notes that were traded in active markets for which close or last trade pricing was available are classified within

Level 1 of the fair value hierarchy. Notes for which such prices were not available were valued at the last available price or

based on quotes received from independent pricing services or from dealers who trade in such securities and are categorized

as Level 2. At December 31, 2024, €17,985 million and €317 million of notes were classified within Level 1 and Level 2,

respectively. At December 31, 2023, €17,073 million of notes were classified within Level 1 and €318 million of notes were

classified within Level 2.

The fair value of Borrowings from banks and Other debt included in Level 2 of the fair value hierarchy was

estimated using discounted cash flow models. The main inputs used were year-end market interest rates, adjusted for market

expectations of the Company’s non-performance risk implied in quoted prices of traded securities issued by the Company and

existing credit derivatives on Company liabilities. The fair value of Borrowings from banks and Other debt that requires

significant adjustment using unobservable inputs is categorized within Level 3. At December 31, 2024, €5,209 million and

€330 million of Borrowings from banks and Other Debt was classified within Level 2 and Level 3, respectively. At

December 31, 2023, €4,041 million and €233 million of Borrowings from banks and Other Debt were classified within

Level 2 and Level 3, respectively.