Chrysler 2003 Annual Report Download - page 158

157 Fiat S.p.A. Financial Statements at December 31, 2003
Notes to the Financial Statements
In particular, decreases include:
(in thousands of euros)
Disposals
Subsidiaries
0.06% of the preference shares of Toro Assicurazioni S.p.A. to DeAgostini Invest S.A. 420
Associated companies
20% of GPWC Holdings B.V. to Ferrari S.p.A. 500
Total 920
Contributions
Subsidiaries
shares of CNH Global N.V. contributed to Fiat Netherlands Holding N.V. 1,381,990
shares of Comau S.p.A. contributed to Comau B.V. 100,000
Total 1,481,990
Mergers
Subsidiaries
Cancellation of shares following merger in Fiat Partecipazioni S.p.A. (formerly Sicind S.p.A.)
of Fiat Partecipazioni S.p.A. (727,821 thousand euros), of FiatAvio Partecipazioni S.p.A.
(formerly FiatAvio S.p.A.) (161,109 thousand euros) and of Fiat Gestione Partecipazioni S.p.A.
(formerly Business Solutions S.p.A. until June 30, 2003) (229,559 thousand euros) 1,118,489
Cancellation of shares following merger in Fiat Netherlands Holding N.V.
(formerly Iveco N.V.) of Fiat Netherlands Holding N.V. (2,548,603 thousand euros)
and of Comau B.V. (133,372 thousand euros) 2,681,975
Total 3,800,464
Writedowns of carrying value
Subsidiaries
Fiat Partecipazioni S.p.A. (mainly due to the negative performance of the Automobile Sector) 1,210,084
Fiat Netherlands Holding N.V. (due to the losses of the Iveco and CNH subsidiaries) 1,000,425
Magneti Marelli Holding S.p.A. 144,221
Fiat USA Inc. 9,747
Isvor Fiat S.c.p.A. 268
Fiat International S.p.A. 1,279
Fiat Se.p.In. S.c.p.A. 569
Fiat Revi S.c.r.l. 41
Total subsidiaries 2,366,634
Other companies
Istituto Europeo di Oncologia S.r.l. 2,939
Total 2,369,573
Total decreases 7,652,947
The table at the end of these Notes to the Financial Statements contains a list of equity investments and the additional information
required under Article 2427 of the Italian Civil Code and the supplemental data recommended by CONSOB, including changes in
quantity and value of subsidiaries and associated companies and, for publicly traded companies, a comparison between the book
value and the market value.
As required by Article 2426, Section 3, of the Italian Civil Code, we wish to emphasize that certain investments are carried at an
amount that exceeds the value of the corresponding portion of the underlying stockholders’ equity in the latest approved financial
statements, after deducting dividends and after the adjustments required for consolidation purposes.
In particular, the values of the investments in Magneti Marelli Holding S.p.A., Fiat Partecipazioni S.p.A., Ferrari S.p.A., and Fiat
Finance North America Inc. that are reported on the balance sheet of Fiat S.p.A. are higher that the corresponding shares of
stockholders’ equity in the companies (123 million euros, 271 million euros, 55 million euros, and 3 million euros, respectively)
because these investments have objectively higher inherent values than what is documented by accounting records.
The higher values for the investment in Magneti Marelli Holding S.p.A. are confirmed by the external appraisal performed at the
end of 2002 when the Company was formed; those for Fiat Partecipazioni S.p.A. by the contractually agreed gain on the indirect
investment in Italenergia Bis S.p.A. that can be realized at the beginning of 2005 upon exercise of the put option for sale to EDF;
those for Ferrari S.p.A. by the current values recently realized upon sale of 34% of the investment to Mediobanca in 2002 (see Note
14 hereunder for an updated disclosure of the mutual commitments assumed at that time).