Chrysler 2005 Annual Report Download - page 230

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Fiat S.p.A. Financial Statements at D ecember 31, 2005 - N otes to the Financial Statements
each on February 1, 2007, following the exercise of the “FIAT ordinary share warrants 2007”. Fiat reserved the right to pay the warrant
holders in cash, starting on January 2, 2007, in lieu of the shares to be issued (shares in exchange for warrants), for the difference between
the average of the official market price of Fiat ordinary shares in December 2006 and the warrant exercise price, unless this difference
exceeds the maximum amount set and previously communicated by Fiat, in which case the warrant holder may opt to subscribe to the
shares in exchange for the warrants.
Pursuant to the resolution approved by the Extraordinary Stockholders Meeting on September 12, 2002, the Board of D irectors has the
right to increase the capital one or more times by September 11, 2007, up to a maximum of 8 billion euros.
The resolutions for the capital increases servicing the stock option plans (28 million euros) have been revoked, as the Board of D irectors
resolved on June 26, 2003 to use ordinary treasury stock to be purchased for this purpose.
Additional paid-in capital
At December 31, 2005, additional paid-in capital amounted to 1,540,857 thousand euros, representing an increase of the same amount with
respect to D ecember 31, 2004 as a result of the capital increase approved by the Board of D irectors on September 15, 2005 and previously
commented on.
Legal reserve
The legal reserve totalled 446,562 thousand euros at D ecember 31, 2005 and was unchanged with respect to December 31, 2004.
Treasury stock valuation reserve
The treasury stock valuation reserve totalled 27,710 thousand euros at December 31, 2005, reflecting a net increase of 1,297 thousand euros
from D ecember 31, 2004, following the revaluation for partial restoration of value and the reduction recorded following the disposal of
treasury shares during the year.
The value of this reserve at December 31, 2005 corresponded to the value approved by the Stockholders Meeting on May 11, 2004, in
proportion to treasury stock still owned by the Company.
Other reserves
Extraordinary reserve
At December 31, 2005, the extraordinary reserve totalled 334 thousand euros, with a net decrease of 1,297 thousand euros from the
previous year reflecting the counter entries to the aforementioned increase in the treasury stock valuation reserve.
Losses carried forward
This item totalled 949,101 thousand euros at D ecember 31, 2005. This is the exact amount of the change from the previous year and reflects
the net loss for fiscal 2004 that was carried forward following a resolution by the Stockholders Meeting on June 23, 2005.
In the tables at the end of the N otes to the Financial Statements the following are illustrated:
the tax treatment applicable to reserves and capital;
the origin, possibility of use, and possibility of distribution of items posted under stockholders’ equity.