Chrysler 2004 Annual Report Download - page 133

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Consolidated Financial Statements at December 31, 2004 – Notes to the Consolidated Financial Statements
Other financial income of 2,246 million euros in 2004 (2,809 million euros in 2003), when shown net of Interest and other financial
expenses of 2,320 million euros (3,157 million euros in 2003) and the net balance of foreign exchange gains of 25 million euros (47
million euros in 2003) results in a net negative balance of 49 million euros (a net negative balance of 301 million euros in 2003).
However, the result for fiscal 2003 had benefited from financial income, net of the relative financial expenses, on the businesses sold
(mainly the retail activities of Fiat Auto and the Toro Assicurazioni Group) for approximately 170 million euros. On a comparable
consolidation basis, the improvement is about 420 million euros and is the consequence of both nonrecurring transactions (mainly
the net amount of income of approximately 300 million euros from the termination of the Equity Swap on General Motors stock) and
lower average indebtedness during the year and generally more favorable market interest rates.
Foreign exchange gains, net, of 25 million euros (foreign exchange gains, net, of 47 million euros in 2003), represent the balance
between foreign exchange gains of 2,443 million euros in 2004 (2,519 million euros in 2003) and foreign exchange losses of 2,418
million euros in 2003 (2,472 million euros in 2003).
Discounts and other expenses include receivables discounting and securitization expenses of 195 million euros in 2004 (280 million
euros in 2003).
18 Adjustments to financial assets
(in millions of euros) 2004 2003 2002
Revaluations:
Equity investments 125 91 68
Financial fixed assets other than equity investments –––
Securities held in current assets other than equity investments –14 7
Total Revaluations 125 105 75
Writedowns:
Equity investments 126 263 809
Financial fixed assets other than equity investments 23 184
Securities held in current assets other than equity investments 2845
Financial receivables 71 518
Total Writedowns 222 277 956
Total Adjustments to financial assets (97) (172) (881)
Revaluations and writedowns of equity investments also include the share of the earnings and losses of companies accounted for
using the equity method.
Revaluations of equity investments of 125 million euros in 2004 include the results of following companies (in millions of euros): BUC –
Banca Unione Credito 9 (11 in 2003), various companies of CNH Global N.V. 28 (24 in 2003), companies of Automobiles Sector 56 (20
in 2003), other companies 32 (36 in 2003).
Writedowns of equity investments of 126 million euros in 2004 (263 million euros in 2003) include the share of the losses of the
companies valued using the equity method and the permanent impairments in value of the companies valued at cost, for the
following (in millions of euros): various companies of CNH Global N.V. 4 (9 in 2003), companies in the Automobile Sector 51(112 in
2003), companies of the Commercial Vehicles Sector 28 (3 in 2003), companies of the Service Sector 26 (7 in 2003), other companies
17 (4 in 2003). In 2003, the amount included writedowns in following companies (in millions of euros): Italenergia Bis S.p.A. 24, Atlanet
S.p.A. 56, and the first four months of Toro Assicurazioni Group 48.
Writedowns of financial receivables of 71 million euros (5 million euros in 2003) include provisions to the allowance for doubtful
financial accounts receivable to adjust certain items to realizable value after settlement for the partial collection of a receivable which
became known during the early months of 2005.