Chrysler 2003 Annual Report Download - page 163

162 Fiat S.p.A. Financial Statements at December 31, 2003
Notes to the Financial Statements
Again with reference to the “FIAT ordinary share warrants 2007”, Fiat reserved the right to pay the warrant holders in cash, starting on
January 2, 2007, in lieu of the shares to be issued (shares in exchange for warrants), for the difference between the arithmetic average
of the official market price of Fiat ordinary shares in December 2006 and the warrant exercise price, unless this difference exceeds the
maximum amount set and previously communicated by Fiat, in which case the holder of the warrants may opt to subscribe to the
shares in exchange for warrants.
The resolutions regarding capital increases to service the stock option plans (27,530 thousand euros) have been revoked since the
Board of Directors decided on June 26, 2003 to use ordinary treasury stock to be bought back for this purpose.
Additional paid-in capital
Additional paid-in capital totaled 278,962 thousand euros at December 31, 2003, reflecting a net decrease of 2,048,157 thousand
euros compared with December 31, 2002, in consequence of its being used to cover the loss for fiscal 2002 (2,052,621 thousand
euros), as resolved by the stockholders’ meeting of May 13, 2003. The decrease was partly compensated by the proceeds from the
sale of the option rights of the 2003 capital increase that were not exercised and which were sold on the stock market pursuant to
Article 2441, paragraph 3 Italian Civil Code, net of the amount paid for the option rights and warrants purchased to execute the
Board of Directors resolution of June 26, 2003.
Treasury stock valuation reserve
The treasury stock valuation reserve totaled 28,045 thousand euros at December 31, 2003, with a net increase of 7,670 thousand
euros from the prior year. The change comes from the difference between the increase of 12,746 thousand euros equal to the
countervalue of the stock purchased during 2003 and a decrease of 5,076 thousand euros for the writedown of the stock to market
value during the last month of the fiscal year.
Other reserves
Reserve for purchase of treasury shares
The reserve for purchase of treasury shares totaled 971,955 thousand euros at December 31, 2003, with a net decrease of 7,670
thousand euros from the prior year as a result of the transfer to the treasury stock valuation reserve of the equivalent amount of the
purchased shares (12,746 thousand euros), net of the transfer from the treasury stock valuation reserve of the amount corresponding
to the writedown of the stock to market value (5,076 thousand euros).
The table appearing at the end of the Notes to the Financial Statements provides a detailed breakdown of the tax status of the
various components of stockholders’ equity.