Chrysler 2004 Annual Report Download - page 181

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Financial Statements at December 31, 2004 – Notes to the Financial Statements
The following items are included under Inventories:
■Contract work in progress
This item, which totaled 91,262 thousand euros at December 31, 2004, includes cumulative costs for coordination, organization,
and project management work. This item refers for 54,316 thousand euros (48,346 thousand euros at December 31, 2003) to the
Florence-Bologna line, for 35,124 thousand euros (26,056 thousand euros at December 31, 2003) to the Turin-Novara line and for
1,822 thousand euros to the Novara-Milan line. The item presents an increase in contract work in progress totaling 16,860 thousand
euros with respect to the end of 2003.
■Advances to suppliers
Advances totaled 7,053,457 thousand euros and include disbursements made to the Alta Velocità Emilia Toscana - CAV.E.T.
(3,083,502 thousand euros) and Alta Velocità Torino-Milano - CAV.TO.MI. Consortia (3,495,604 thousand euros for the Turin-Novara
line and 474,253 thousand euros for the Novara-Milan line), and to engineering companies commissioned to supervise work (98
thousand euros) mainly progress payments due for work completed and contractual advances. Work completed as at December
31, 2004 totaled 6,413,023 thousand euros. Of this amount, the Bologna-Florence line accounted for 2,835,931 thousand euros
(2,491,634 thousand euros at December 31, 2003), the Turin-Novara line for 3,355,210 thousand euros (2,091,650 thousand euros at
December 31, 2003), and the Novara-Milan line for 221,882 thousand euros.
This item shows an increase of 1,890,942 thousand euros from December 31, 2003, as a result of the advances paid to CAV.E.T.
for 317,438 thousand euros, to CAV.TO.MI. for 1,573,406 thousand euros (1,099,153 thousand euros for the Turin-Novara line and
474,253 thousand euros for the Novara-Milan line) and to engineering companies for 98 thousand euros.
As explained later, the item Advances on the liabilities side of the balance sheet includes contractual advances totaling 7,336,406
thousand euros paid by the bidder company Treno Alta Velocità - T.A.V. S.p.A.
Fiat S.p.A. provided T.A.V. S.p.A. with bank suretyships totaling 1,971,807 thousand euros (642,342 thousand euros for the Bologna-
Florence line, 816,516 thousand euros for the Turin-Novara line, and 512,949 thousand euros for the Novara-Milan line) as security for
contractual advances received and proper execution of work. Conversely, the CAV.E.T. Consortium provided Fiat S.p.A. with bank
suretyships totaling 617,638 thousand euros, as envisaged by contract. The CAV.TO.MI. Consortium issued suretyships totaling
785,687 thousand euros for the Turin-Novara line and 493, 221 thousand euros for the Novara-Milan line.
5 Receivables
Receivables amounted to 974,552 thousand euros at December 31, 2004. A breakdown of the net increase of 279,986 thousand euros
from the figure at the end of 2003 is provided in the following table:
(in thousands of euros) 12/31/04 12/31/03 Change
Trade receivables 350,861 199,162 151,699
Allowance for doubtful accounts (258) (258) –
Total trade receivables 350,603 198,904 151,699
Subsidiaries 25,251 16,438 8,813
Due from Tax Authorities 288,902 404,211 (115,309)
Deferred tax assets 277,000 – 277,000
Other (mainly factoring companies) 32,796 75,013 (42,217)
Total receivables 974,552 694,566 279,986
Compared with December 31, 2003, trade receivables increased by 151,699 thousand euros. These receivables are mainly the result
of corresponding amounts owed by T.A.V. S.p.A. for works completed in 2004, net of receivables sold.
The liabilities include, under trade payables, the amounts owed to CAV.E.T. and CAV.TO.MI.
The receivables from subsidiaries at December 31, 2004 consist primarily of the provision of services (4,779 thousand euros) and
credits for IRES calculated on the taxable income contributed by the Italian companies participating in the national tax consolidation
program (18,286 thousand euros). They show a net increase of 8,813 thousand euros with respect to December 31, 2003.
At the end of 2004, tax credits totaled 288,902 thousand euros and included credits for consolidated Group VAT of 45,976 thousand
euros (of which 20,025 thousand euros were requested for reimbursement, net of conversion into cash, and 25,951 thousand euros
were carried forward), credits for IRPEG (mainly for 2003) of 183,439 thousand euros, 55,848 thousand euros for advances and other
credits for IRES transferred to Fiat S.p.A. by Italian companies that participate in the national tax consolidation program, and other
minor amounts for 3,639 thousand euros.