Chrysler 2003 Annual Report Download - page 162

161 Fiat S.p.A. Financial Statements at December 31, 2003
Notes to the Financial Statements
8 Accrued income and prepaid expenses
Accrued income
At 3,322 thousand euros, accrued income showed an increase of 3,243 thousand euros from the amount at December 31, 2002.
Of this amount, 3,191 thousand euros represent accrued interest on the loan granted to the subsidiary Fiat Ge.Va. S.p.A.
Prepaid expenses
These total 8,238 thousand euros at December 31, 2003, for a net increase of 7,303 thousand euros compared with December 31,
2002, mainly connected to the consideration that is contractually owed to TOROC for sponsorship of the XX Winter Olympic Games
in 2006, applicable to future fiscal years.
They include:
(in thousands of euros) 12/31/03 12/31/02 Change
Interest on the sale of receivables due from Tax Authorities 502 254 248
Other operating costs 7,736 681 7,055
Total prepaid expenses 8,238 935 7,303
9 Stockholders’ Equity
Capital stock
Capital stock, fully paid-in, amounts to 4,918,114 million euros at December 31, 2003 and consists of 983,622,708 shares as follows:
❚800,417,598 ordinary shares;
❚103,292,310 preference shares;
❚79,912,800 savings shares;
all with a par value of 5 euros each.
Compared to December 31, 2002, capital stock increased by 1,835,986 thousand euros, corresponding to 367,197,108 ordinary shares.
Such shares were issued in a ratio of three new ordinary shares for every five shares of any class of stock outstanding, at the price of
5 euros, following the execution in August 2003 of the capital stock increase voted by the Board of Directors on June 26, 2003.
The capital stock increase was effected on the basis of the mandate given by the Extraordinary Stockholders’ Meeting on September
12, 2002. This Meeting authorized the Board of Directors to increase capital stock, by September 11, 2007, in one or more times, up
to a maximum of 8 billion euros, of which 3 billion euros is to be reserved, with reference to the mandatory convertible facility (Note
12), according to Paragraph 7 of Article 2441 of the Italian Civil Code, to the banks identified in the same resolution, in the event the
facility is not paid at an earlier date, with subscription and payment of the newly issued ordinary shares to be achieved exclusively by
compensating the Banks’ receivables for principal up to a maximum total of 3 billion euros.
It should be pointed out that when the capital increase voted by the Board of Directors on December 10, 2001 was perfected in
February 2002, 65,820,600 warrants were issued for the purchase in January 2007 of one ordinary share, always with a par value of 5
euros, at the price of euro 29.448 each, for every four warrants. In execution of the resolution passed on June 26, 2003, up to the
limits established in the mandate by the stockholders’ meeting, in order to implement the capital increase, the Company purchased
311,432 “FIAT ordinary share warrants 2007” and 2,100,000 “option rights” for cancellation. Accordingly, on the basis of the
resolutions passed by the Board of Directors Meetings on December 10, 2001 and June 26, 2003, the capital stock could ultimately
be increased against payment for a maximum of 81,886 thousand euros, thus reaching 5 billion euros, through the issue of a
maximum of 16,377,292 ordinary shares of par value 5 euros each, on February 1, 2007, following the exercise of outstanding “FIAT
ordinary share warrants 2007”.