Chrysler 2003 Annual Report Download - page 80

79 Fiat Group Consolidated Financial Statements at December 31, 2003
Notes to the Consolidated Financial Statements
COMPOSITION, PRINCIPAL CHANGES AND OTHER INFORMATION
Fixed assets
1 Intangible fixed assets
Net of Change in Foreign Disposals Net of
amortization the scope of Reclassi- exchange and Other amortization
(in millions of euros) 12/31/2002 Additions Amortization consolidation fications effects changes 12/31/2003
Start-up and expansion costs 77 107 (37) 3 3 (4) (5) 144
Research, development and advertising expenses 18 16 (8) 1 (2) – (3) 22
Industrial patents and intellectual property rights 416 44 (106) (11) 100 (44) 7 406
Concessions, licenses, trademarks and similar rights 467 45 (85) (52) 44 (46) (26) 347
Goodwill 229 14 (17) (41) – (22) (12) 151
Intangible assets in progress and advances 263 160 – (3) (153) – (21) 246
Other intangible assets 359 116 (91) (218) 8 (1) (16) 157
Differences on consolidation 3,371 25 (175) (529) – (409) (32) 2,251
Total Intangible fixed assets 5,200 527 (519) (850) – (526) (108) 3,724
Intangible fixed assets are shown net of writedowns of 614 million euros (559 million euros at December 31, 2002) of which 579 million
euros (545 million euros at December 31, 2002) relate to Goodwill and Differences on consolidation. Writedowns made in 2003
amount to 55 million euros (559 million euros in 2002) and are included in the Disposals and Other changes column.
Start-up and expansion costs at December 31, 2003 consist of deferred plant start-up costs and corporate formation costs of 60
million euros (53 million euros at December 31, 2002) and capital increase costs of 84 million euros (24 million euros at December 31,
2002). Additions during the year include 88 millions euro for the capital increase costs of Fiat S.p.A. for 57 million euros, Fiat Auto
Holdings B.V. for 17 million euros, CNH Global N.V. for 12 million euros and other minor companies for 2 million euros.
Other intangible assets include additions during the year mainly for the capitalization of license acquisition costs for the development
of technologies and products incurred by FiatAvio S.p.A. for 68 million euros (relating to the first six months of the year) and other
deferred charges benefiting future periods by Fiat Auto for 27 million euros.
Differences on consolidation amount to 2,251 million euros at December 31, 2003, and include the net goodwill (net of amortization
and writedowns, as described below) on the acquisition of the Case Group and other CNH Group companies for 2,013 million euros,
the Irisbus Group for 46 million euros, Meridian Technologies Inc. for 25 million euros, certain Components Sector companies for
20 million euros, certain Production Systems Sector companies for 46 million euros and other minor companies for 32 million euros.
Differences on consolidation also include goodwill deriving from Tender Offers for the shares of Magneti Marelli Holding S.p.A. for
18 million euros, as well as goodwill from the CNH Global N.V. capital increase effected in 2000 for 51 million euros.
As regards the amounts recorded in Goodwill and Differences on consolidation, amortization is charged over periods ranging from
five to twenty years, on the basis of the expected recoverability of these amounts. At the end of the year, however, specific reviews
were conducted to verify whether such amounts are recoverable by considering the existing prospects of earnings. From the
analyses performed, taking into consideration the changed market conditions, the restructuring plans initiated by certain Sectors
of the Group and the consequent impact on the business plans of various Sectors, permanent impairments in value were identified
at December 31, 2003 that gave rise to writedowns totaling 38 million euros (533 million euros at December 31, 2002).