Chrysler 2003 Annual Report Download - page 95

94 Fiat Group Consolidated Financial Statements at December 31, 2003
Notes to the Consolidated Financial Statements
10 Reserves for risks and charges
(in millions of euros) At 12/31/2003 At 12/31/2002 Change
Reserve for pensions and similar obligations 1,503 1,459 44
Income tax reserves:
Current income tax reserve 98 199 (101)
Deferred income tax reserve 211 1,236 (1,025)
Total Income tax reserves 309 1,435 (1,126)
Other reserves:
Warranty reserve 791 841 (50)
Restructuring reserves 471 731 (260)
Various liabilities and risk reserves 2,216 2,555 (339)
Total Other reserves 3,478 4,127 (649)
Insurance policy liabilities and accruals 89 9,605 (9,516)
Policy liabilities and accruals where the investment risk is borne
by policyholders and those related to pension plan management –7,000 (7,000)
Total Reserves for risks and charges 5,379 23,626 (18,247)
Reserve for pensions and similar obligations
The reserve includes provisions for pensions and similar obligations determined on an actuarial basis, where applicable, and payable
to employees and former employees according to contractual agreements or by law.
Income tax reserves
The Deferred income tax reserve at December 31, 2003 includes deferred tax liabilities, net of deferred tax assets, which have been
offset where possible by the individual companies. The Deferred income tax reserve, net of Deferred tax assets recorded under
Other receivables from others, is composed as follows:
(in millions of euros) At 12/31/2003 At 12/31/2002 Change
Deferred income tax reserve 211 1,236 (1,025)
Deferred tax assets (1,879) (3,499) 1,620
Total (1,668) (2,263) 595
The net change of 595 million euros compared to December 31, 2002 derives mainly from the reversal of deferred tax assets for
which the recovery was mainly connected to the realization of gains on the sales of investments that took place during 2003.
The Deferred income tax reserve, net of Deferred tax assets recorded under Other receivables from others, can be analyzed as follows:
(in millions of euros) At 12/31/2003 At 12/31/2002
Deferred tax liabilities for:
Accelerated depreciation 492 682
Deferred tax on gains 493 382
Capital investment grants 18 13
Other 684 896
Total Deferred tax liabilities 1,687 1,973
Deferred tax assets for:
Taxed reserves for risks and charges (1,021) (1,301)
Inventories (126) (158)
Taxed allowances for doubtful accounts (86) (189)
Pension funds (289) (221)
Adjustments to financial assets (2,056) (1,062)
Other (680) (804)
Total Deferred tax assets (4,258) (3,735)
Theoretical tax benefit connected to tax loss carryforwards (4,313) (3,646)
Adjustments for assets whose recoverability is not reasonably certain 5,216 3,145
Total Deferred income tax reserve, net of Deferred tax assets (1,668) (2,263)