Chrysler 2005 Annual Report Download - page 132

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Fiat Group Consolidated Financial Statements at December 31, 2005 - N otes to the Consolidated Financial Statements
Plan assets may be summarised as follows:
In % At D ecember 31, 2005 At D ecember 31, 2004
Third party equity instruments 54 47
Third party debt instruments 42 48
Properties occupied by third parties 1–
O ther assets 35
Assumed healthcare cost trend rates have a significant effect on the amount recognised in the income statement.A one percentage point
change in assumed healthcare cost trend rates would have the following effects:
O ne percentage O ne percentage
(in millions of euros) point increase point decrease
Effect on the aggregate of the service costs and interest cost 21 17
Effect on defined benefit obligation 143 119
27. O ther provisions
Changes in O ther provisions for the year ended December 31, 2005 are as follows:
At At
December Release to O ther D ecember
(in millions of euros) 31, 2004 Charge Utilisation income changes 31, 2005
W arranty provision 893 1,033 (953) (8) 81 1,046
Restructuring provision 347 378 (217) (13) 24 519
Investment provision – 51 – – 20 71
O ther risks 2,368 2,318 (1,548) (83) 88 3,143
Total O ther provisions 3,608 3,780 (2,718) (104) 213 4,779
The effect of discounting provisions amounts to 9 million euros in 2005 and has been included in the O ther changes as has the effect of
exchange rate differences amounting to 180 million euros.
The warranty provision represents management’s best estimate of commitments given by the Group for contractual, legal or constructive
obligations arising from product warranties given for a specified period of time which begins at the date of delivery to the customer.This
estimate has been calculated considering, past experience and specific contractual terms.
The restructuring provision comprises the estimated amount of benefits payable to employees on termination in connection with restructuring
plans amounting to 245 million euros at December 31, 2005 (148 million euros at December 31, 2004), other costs for exiting activities
amounting to 7 million euros at D ecember 31, 2005 (13 million euros at December 31, 2004) and other costs totalling 267 million euros at
December 31, 2005 (186 million euros at D ecember 31, 2004).
The total balance at D ecember 31, 2005 relates to corporate restructuring programs of the following Sectors (in millions of euros): Fiat Auto
175 (160 at December 31, 2004);Agricultural and Construction Equipment 72 (36 at D ecember 31, 2004); Commercial Vehicles 109 (43 at
December 31, 2004); Metallurgical Products 19 (8 at December 31, 2004);Components 59 (66 at December 31, 2004);Production Systems
48 (17 at D ecember 31, 2004); Services 16 (6 at D ecember 31, 2004);O ther sectors 21 (11 at D ecember 31, 2004).
The provision for other risks represents the amounts set aside by the individual companies of the Group principally in connection with
contractual and commercial risks and disputes.