Chrysler 2004 Annual Report Download - page 186

FIAT S.P.A.
03
184
(*) Broken down as follows 12/31/2004 12/31/2003 12/31/2002
Extraordinary reserve 1.6 112.3 112.3
Out-of-period income reserve under Article 55
of Presidential Decree No. 917 of 12/22/86 –1.9 1.9
Reserve for capital grants under Article 102
of Presidential Decree No. 1523 of 6/30/67 –17.7 17.7
Reserve for capital grants under Regional Law No. 19/84 –0.1 0.1
Reserve for purchase of treasury shares –971.9 979.6
Total 1.6 1,103.9 1,111.6
10 Reserves for risks and charges
Reserve for pensions and similar obligations
This reserve covers early retirement incentives and payments and bonuses due to retired employees. It was established as a result
of supplemental collective and individual agreements, the latter being determined on the basis of actuarial computations.
At December 31, 2004, it totaled 19,273 thousand euros, for a net decrease of 4,691 thousand euros compared with the end of 2003,
broken down as follows:
(in thousands of euros)
Provisions for the fiscal year charged to income 2,525
Cash conversion of reserve for early retirement incentives (3,130)
Utilization for the fiscal year (4,086)
Net change (4,691)
Other reserves
This item consists of contractually envisaged commissions owed for future listing of Ferrari S.p.A. shares (23,256 thousand euros)
on the stock market, expenses for employee bonuses (6,423 thousand euros) and scholarships (60 thousand euros). It totaled 29,739
thousand euros at December 31, 2004, a net decrease of 1,279 thousand euros compared with December 31, 2003.
The change resulted from the following:
(in thousands of euros)
Provision for the fiscal year charged to income 6,443
Utilization for the fiscal year, mainly for bonuses granted to employees (6,405)
Cash conversion of excess reserve (1,317)
Net change (1,279)
Fiat S.p.A. is still subject to a pending lawsuit for damages resulting from alleged violation of an agreement granting the pre-emption
right on the sale of land located at Via Rivalta 15 in Turin.
Given the pending nature of this action, as well as its specific conditions, no reasonable prediction can be made as to its outcome
or the costs that the company might sustain.
11 Reserves for employee severance indemnities
At December 31, 2004, this reserve totaled 11,616 thousand euros, a net decrease of 2,496 thousand euros from the end of 2003.
A breakdown of the change is as follows:
(in thousands of euros)
Provision for the fiscal year charged to income 4,088
Utilization for the fiscal year (6,584)
Net change (2,496)