Chrysler 2005 Annual Report Download - page 97

96 Fiat Group Consolidated Financial Statements at December 31, 2005 - N otes to the Consolidated Financial Statements
02 Fiat Group
9. Financial income (expenses) and Unusual financial income
Financial income (expenses)
In addition to the items included in the specific line of the income statement, N et financial income (expenses) also includes the income from
financial services companies included in N et revenues for 1,088 million euros (1,018 million euros in 2004) and the costs incurred by financial
services companies included in Interest cost and other financial charges from financial services companies included in Cost of sales for 726
million euros (758 million euros in 2004).A reconciliation to the income statement is provided at the foot of the following table.
(in millions of euros) 2005 2004
Financial income
Interest earned and other financial income 376 367
Interest income from customers 968 913
Gains on disposal of securities 12 –
Total Financial income 1,356 1,280
of which:
Financial income, excluding financial services companies 268 262
Interest and other financial expenses
Interest expense and other financial expenses 1,695 1,730
W rite-downs of financial assets 126 262
Losses on disposal of securities 2–
Interest costs on employee benefits 146 127
Total Interest and other financial expenses 1,969 2,119
N et income (expenses) from derivative financial instruments and exchange differences 132 (80)
of which:
Interest and other financial expenses, effects resulting from derivative financial instruments
and exchange differences, excluding financial services companies 1,111 1,441
N et financial income (expenses) excluding financial services companies (843) (1.179)
N et financial expenses in 2005 (excluding financial services companies) totalled 843 million euros, decreasing from the amount of 1,179 million
euros in 2004, which included the unwinding of the equity swap agreement on General Motors shares resulting in a net loss of around
150 million euros.
The increase of 55 million euros in interest income from customers in 2005 arises from the increase in the level of activities, partially
compensated by an effect of 69 million euros resulting from the sale in the fourth quarter of 2004 of the holding in the financial
company operating in the United Kingdom, which formed part of the overall sale to Fidis Retail Italia of the European operations of Fiat
Auto Holdings B.V., and by an effect of 79 million euros resulting from the sale, of 51% of the interest in Iveco Finance Holdings Limited
to Barclays Mercantile Business Finance Ltd. in 2004.