Chrysler 2005 Annual Report Download - page 243

242 Fiat S.p.A. Financial Statements at December 31, 2005 - N otes to the Financial Statements
03 Fiat S.p.A.
W ritedowns of equity investments
In 2005 this item totalled 957,542 thousand euros, for a decrease of 681,611 thousand euros with respect to 2004. It refers to the writedowns
of the equity investments held in Fiat Partecipazioni S.p.A. (810,700 thousand euros),Teksid S.p.A. (52,986 thousand euros), Comau S.p.A.
(41,800 thousand euros) and Business Solutions S.p.A. (52,056 thousand euros), which are discussed at N ote 3.
In 2004 writedowns included Fiat Partecipazioni S.p.A. (1,623,973 thousand euros), Isvor Fiat S.c.p.A. (9,547 thousand euros), Fiat Finance
N orth America Inc. (3,976 thousand euros), and Fiat USA Inc. (1,657 thousand euros).
W ritedowns of securities included as current assets which do not represent equity investments
This item amounted to 1,631 thousand euros in 2004 and consists of the writedown of treasury stock.
19. Extraordinary income and expenses
Extraordinary income
Extraordinary income totalled 1,135,689 thousand euros in 2005 and consisted mainly of the extraordinary income of 1,135,000 thousand
euros received under the settlement for termination of the Master Agreement with General Motors. It also included the adjustment to the
sale price of the investment held in the Istituto Europeo di O ncologia S.r.l., which was sold at the end of 2004, and sundry items.
In 2004, it mainly consisted of lower tax expenses with respect to those determined in previous years.
Extraordinary expenses
In 2005 extraordinary expenses totalled 14,745 thousand euros and consisted of expenses connected to the transaction with General Motors
(legal expenses and other expenses for 1,890 thousand euros), incentives and expenses for the retirement of personnel in consequence of
corporate restructuring plans (10,939 thousand euros) and the adjustment of the sale price of the investment held in the Istituto per la Ricerca
e Cura del Cancro S.p.A. sold at the end of the prior fiscal year.
In 2004 these mainly referred to incentives and expenses for the retirement of personnel in consequence of corporate restructuring plans
(14,704 thousand euros) and losses on the disposal of investments.
20. Income taxes, current and deferred tax assets and liabilities
Income taxes totalled 278,828 thousand euros in 2005 and include:
current income taxes (IRES) for 1,828 thousand euros, payable on the income generated by some subsidiaries outside Italy (Article 167
T.U.I.R.) and on the national tax consolidation program (balance of taxes filed for fiscal 2004, net of a benefit for fiscal 2005, for tax losses
used to offset taxable income contributed by other subsidiaries);and
deferred taxes of 277,000 thousand euros stemming from realisation of deferred tax assets reported in the financial statements at
December 31, 2004.
O n the other hand, in 2004 there was a net tax credit of 278,442 thousand euros, mainly due to the recognition of deferred tax assets
of 277,000 thousand euros, as previously discussed at N ote 5.