Chrysler 2005 Annual Report Download - page 92

91
Fiat Group Consolidated Financial Statements at December 31, 2005 - N otes to the Consolidated Financial Statements
Interests in joint ventures (20 companies) are accounted for using
the equity method, except for one investment accounted for using
proportionate consolidation, although the amounts involved in this
case are not significant.The main aggregate amounts related to the
Group interests in joint ventures accounted for using the equity
method are as follows:
At
December
(in millions of euros) 31, 2005
N on-current assets 1,064
Current assets 1,413
Total assets 2,477
Financial debt 710
O ther liabilities 1,062
(in millions of euros) 2005
N et revenues 3,464
Trading profit 59
O perating result 59
Result before taxes 56
N et result 34
Thirty six associates are accounted for using the equity method,
while 43 associates, that in aggregate are of minor importance, are
stated at cost.The main aggregate amounts related to the Fiat Group
interests in associates are as follows:
At
December
(in millions of euros) 31, 2005
Total assets 7,482
Liabilities 6,432
(in millions of euros) 2005
N et revenues 1,280
N et result 71
The following acquisitions were made in 2005:
In the first quarter of 2005, Magneti Marelli increased its equity
investment in the automotive light manufacturer Mako Elektrik
Sanayi Ve Ticaret A.S., thus acquiring control from the Turkish group
Koç.As a result, the company, previously accounted for using the
equity method, is now consolidated on a line-by-line basis.
As of May 2005, the operations that had previously been
transferred to the Fiat-GM Powertrain joint venture were
consolidated in Fiat Powertrain Technologies. Fiat re-acquired
full control of these operations upon termination of the Master
Agreement with General Motors, with the sole exception of
the Polish operations that continue to be jointly managed with
General Motors.The Powertrain businesses of Iveco, C.R.F. (Fiat
Research Centre) and Elasis will subsequently be transferred to
Fiat Powertrain Technologies.
At the end of 2005, the Fiat Group acquired Enel’s share of
the joint venture Leasys S.p.A., whose activity is the hire and
management of company car fleets, thereby obtaining 100%
control.The balance sheet of this company has been consolidated
from D ecember 31, 2005.
The following divestitures, the proceeds of which totalled 159 million
euros, were made in 2005:
In the first quarter of 2005, 65% of the investment in the
temporary employment agency W orkN et was sold.
O n June 1, 2005, Iveco sold to Barclays Mercantile Business
Finance Ltd a 51% stake in Iveco Finance Holdings Limited, a
company comprising certain financial services companies of Iveco
operating in France, Germany, Italy, Switzerland and the United
Kingdom.As of that date, Iveco Finance Holdings Limited was no
longer consolidated on a line-by-line basis, but accounted for using
the equity method.
Acquisitions and divestitures of businesses affected the Group’s
assets and liabilities as of the dates of acquisition or divestiture as
follows:
(in millions of euros) Acquisitions Divestitures
N on-current assets 742 125
Cash and cash equivalents 459 2,085
O ther current assets 495 (3,099)
Total assets 1,696 (889)
Debt 354 (368)
O ther liabilities 1,342 (534)
Total liabilities 1,696 (902)
Comments are provided in the following notes of the main effects of
these operations on the single items concerned.