Chrysler 2005 Annual Report Download - page 96

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Fiat Group Consolidated Financial Statements at December 31, 2005 - N otes to the Consolidated Financial Statements
6. Gains (losses) on the disposal of equity investments
This item, amounting to 905 million euros in 2005, consists of the net gain of 878 million euros arising from the sale to EDF of the investment
held by Fiat in Italenergia Bis S.p.A. In particular, as a consequence of the notification received from EDF of its intention to withdraw its
arbitration claim, Fiat sold its holding of 24.6% of the share capital of Italenergia Bis S.p.A. to EDF on September 9, 2005 at a price of 1,147
million euros. O n the same date, the Citigroup loan granted in September 2002 for the same amount was reimbursed, and the banks that had
acquired 14% of Italenergia Bis from Fiat in 2002, signing simultaneous agreements for a series of put and call options, sold their stake to ED F.
As a result, the possibility that Fiat be required to repurchase the 14% holding has been eliminated (a possibility that led to the derecognition
in the IFRS financial statements of the sale of the 14% carried out in 2002 and the recognition of a liability of approximately 600 million euros
to the banks who acquired that holding).As a result of these transactions, Group net debt decreased by approximately 1.8 billion euros (see
N ote 28).
The item also includes a gain of 23 million euros on the disposal of Palazzo Grassi S.p.A.
In 2004 the gain of 150 million euros included, amongst others, the gains on the following sales:81 million euros relating to Fiat Engineering
S.p.A., 31 million euros relating to the Midas Group, 2 million euros relating to Edison S.p.A. shares and 30 million euros relating to Edison
S.p.A. warrants.
7. Restructuring costs
Restructuring costs amount to 502 million euros in 2005 (542 million euros in 2004) and have been incurred by Fiat Auto for 162 million
euros (355 million euros in 2004), mostly in relation to the restructuring of the Sector’s central organisations and certain foreign operations, as
well as the activities of Fiat-GM Powertrain (the joint venture wound up at the beginning of May);by Iveco for 103 million euros (24 million
euros in 2004), essentially due to a reorganisation process of the entire Sector and in particular of its staff structure;by CN H for 87 million
euros (68 million euros in 2004), regarding the reorganisation in progress of its activities and the restructuring of certain of its foreign
operations;and by Comau for 46 million euros (10 million euros in 2004), Components for 33 million euros (48 million euros in 2004),
Business Solutions for 22 million euros (9 million euros in 2004), and other Sectors for minor amounts.
8. O ther unusual income (expenses)
O ther unusual income (expenses) amounts to 812 million euros in 2005 and comprises the following items:the gain for the settlement of the
Master Agreement with General Motors for 1,134 million euros (net of related expenses); a gain of 117 million euros realised on the final
disposal of the real estate properties that had been securitised in 1998; additional costs connected with the process of reorganisation and
streamlining of relationships with Group suppliers, initiated in 2004, and with Fiat Auto dealers, for a total of 187 million euros; costs of 141
million euros incurred by Fiat Auto, as a consequence of the rationalisation process of the platforms and the reallocation of production;costs
of 71 million euros for an indemnity to Global Value S.p.A. for unwinding the joint venture with IBM; 30 million euros from indemnities paid to
settle contractual guarantees granted on the sale of businesses in previous years and other minor items.
The unusual expenses of 243 million euros in 2004 related to the process of reorganisation and streamlining of relationships with Group
suppliers.