Chrysler 2005 Annual Report Download - page 232

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Fiat S.p.A. Financial Statements at D ecember 31, 2005 - N otes to the Financial Statements
(* ) Broken down as follows: At 12.31.2005 At 12.31.2004 At 12.31.2003
Extraordinary reserve 0.3 1.6 112.3
O ut-of-period income reserve under Article 55
of Presidential Decree N o. 917 of 12/22/1986 ––1.9
Reserve for capital grants under Article 102
of Presidential Decree N o. 1523 of 6/30/1967 ––17.7
Reserve for capital grants under Regional Law N o. 19/84 ––0.1
Reserve for purchase of treasury shares –– 971.9
To t al 0.3 1.6 1,103.9
10. Reserves for risks and charges
Reserve for pensions and similar obligations
This reserve amounted to 21,666 thousand euros at December 31, 2005 and covered severance indemnities and payments and bonuses
accrued vis-à-vis employees and retired employees as a result of supplemental collective or individual agreements determined on the basis
of actuarial computations.
The net increase of 2,393 thousand euros compared with the end of 2004, may be broken down as follows:
(in thousands of euros)
Provisions for the fiscal year charged to income 4,391
Utilisation for the fiscal year (1,998)
N et change 2,393
Other reserves
This item amounted to 31,038 thousand euros at D ecember 31, 2005 and consisted of contractual commissions (23,256 thousand euros) for
the listing on the stock market of Ferrari S.p.A. shares which were sold to Mediobanca in 2002, expenses for bonuses to be paid to employees
for the achievement of objectives (3,620 thousand euros), expenses for the retirement of personnel in consequence of corporate restructuring
plans (4,115 thousand euros) and scholarships (47 thousand euros).
The net increase of 1,299 thousand euros with respect to D ecember 31, 2004 resulted from the following:
(in thousands of euros)
Provision for the fiscal year charged to income 7,736
Utilisation for the fiscal year, mainly for bonuses granted to employees (4,599)
Release to income of excess reserve (1,838)
N et change 1,299
Fiat S.p.A. is still subject to pending lawsuits for damages mainly related to real estate properties that were sold in prior fiscal years. Given the
pending nature of these actions, as well as their specific conditions, no reasonable prediction can be made as to their outcome and, as a
consequence, the costs that the company might incur.