Chrysler 2004 Annual Report Download - page 197

195
Financial Statements at December 31, 2004 – Notes to the Financial Statements
19 Extraordinary income and expenses
Extraordinary income
Extraordinary income totaled 1,579 thousand euros in 2004, for an increase of 1,384 thousand euros from the previous year. It consists
of 1,464 thousand euros for tax expenses determined in previous years in an amount exceeding what was owed upon payment and
115 thousand euros in other income.
Extraordinary expenses
Extraordinary expenses in 2004 totaled 15,151 thousand euros and consisted of 429 thousand euros from losses on the disposal
of investments, 14,704 thousand euros on incentives and expenses for the retirement of personnel in consequence of corporate
restructuring and reorganization plans, and 18 thousand euros for other costs.
The losses on disposals refer to the sale to Fiat Partecipazioni S.p.A. of 100% of Fiat International S.p.A. (84 thousand euros),
of 19.35% of the Istituto per la Ricerca e la Cura del Cancro S.p.A. (197 thousand euros), and 10.90% of the Istituto Europeo
di Oncologia S.r.l. (148 thousand euros).
In 2003 they essentially referred to bank commissions paid to Mediobanca S.p.A. for the postponement of the commitments
undertaken in connection with the “Ferrari” contract (15,504 thousand euros) and expenses connected with the valuation of the
Insurance Sector headed by Toro Assicurazioni S.p.A. (1,617 thousand euros), and IRPEG (corporate income taxes) for fiscal 2002
(2,441 thousand euros).
20 Income taxes
In 2004, there was income for 278,442 thousand euros. In particular, they include current income taxes (IRES) (credit 1,442 thousand
euros) stemming mainly from the income owed to Fiat S.p.A. for the tax loss used in connection with the consolidated tax return to
set off taxable income contributed by other companies, as well as deferred tax assets of 277,000 thousand euros, which were
previously commented on at note 5.
On the other hand, in 2003 there was a net tax liability of 60,664 thousand euros following cancellation of the deferred tax assets
determined in previous fiscal years when it became unlikely that they could be recovered and thus posted on the financial
statements.
In 2004, taxes represented 22.7% of income before taxes, and the difference with the theoretical IRES rate of 33% is due mainly to the
negative effect of writedowns of the investments carried out in the fiscal year that are no longer deductible according to current tax
norms, but partially balanced by the positive effect of deferred tax assets posted in consequence of temporary differences that arose
in previous years and tax losses carried forward.