Chrysler 2006 Annual Report Download - page 66

Fiat Group Consolidated Financial Statements at December 31, 2006 -Notes 129
The column Other changes includes the reversal of impairment losses of 5 million euros in 2006 (16 million euros in 2005).
The column Change in the scope of consolidation shows an overall net reduction of 74 million euros which mainly reflects the
disposal of B.U.C. (24 million euros), the disposal of Sestrieres S.p.A. (23 million euros), the disposal of business Autodie business
of Comau Pico (21 million euros) and the deconsolidation of subsidiaries transferred to FAFS joint venture (10 million euros).
The column Reclassification to assets held for sale comprises the book value of the assets of Meridian Technologies Inc. and Ingest
Facility S.p.A., for which sales agreements reached in December 2006 were still subject to all the necessary authorisations at the
balance sheet date, of Fiat Auto in India and that of certain properties of the Iveco Sector.
Exchange losses of 95 million euros (gains of 422 million euros in 2005) principally reflect changes in the Euro/U.S. dollar
exchange rate.
The column Other changes represents the reclassification of the prior year balance of Advances and tangible assets in progress to
the appropriate categories at the time the assets were effectively acquired and put into operation.
In 2005, changes in the gross carrying amount of Property,plant and equipment were as follows:
At Change in At
December the scope of Translation Other December
(in millions of euros) 31, 2004 Additions Divestitures consolidation differences changes 31, 2005
Land 500 1 (25) 26 24 7 533
-Owned industrial buildings 4,088 76 (143) 93 189 49 4,352
-Industrial buildings leased under finance leases 48 – – – – 25 73
Total Industrial buildings 4,136 76 (143) 93 189 74 4,425
-Owned plant, machinery and equipment 19,119 1,148 (1,081) 3,839 711 477 24,213
-Plant, machinery and equipment leased under finance leases 29 7––41353
Total Plant, machinery and equipment 19,148 1,155 (1,081) 3,839 715 490 24,266
Assets sold with a buy-back commitment 1,495 468 (396) – 7 8 1,582
-Owned other tangible assets 1,812 170 (187) 81 79 (1) 1,954
-Other tangible assets leased under finance leases 5 5 – – – 2 12
Total Other tangible assets 1,817 175 (187) 81 79 1 1,966
Advances and tangible assets in progress 677 400 – 49 30 (541) 615
Total gross carrying amount of Property, plant and equipment 27,773 2,275 (1,832) 4,088 1,044 39 33,387
The net carrying amount of Property, plant and equipment at December 31, 2006 can be analysed as follows:
At Change in Reclassified At
December Impairment the scope of Translation to Assets Other December
(in millions of euros) 31, 2005 Additions Depreciation losses Divestitures consolidation differences held for sale changes 31, 2006
Land 526 2 – – (7) (9) (12) (57) 4 447
-Owned industrial buildings 2,230 119 (139) (1) (3) (36) (8) – 58 2,220
-Industrial buildings leased
under finance leases 63 – (2) – – – – – (2) 59
Total Industrial buildings 2,293 119 (141) (1) (3) (36) (8) – 56 2,279
-Owned plant, machinery
and equipment 5,948 952 (1,541) (14) (40) (14) (59) (58) 423 5,597
-Plant, machinery and equipment
leased under finance leases 25 – (5) – – (2) (1) (14) 4 7
Total Plant, machinery
and equipment 5,973 952 (1,546) (14) (40) (16) (60) (72) 427 5,604
Assets sold with a buy-back
commitment 1,176 523 (152) (36) (360) – 3 – 3 1,157
-Owned other tangible assets 424 194 (140) – (99) (11) (5) (10) 47 400
-Other tangible assets leased
under finance leases 8 2 (1) – (1) – – – (4) 4
Total Other tangible assets 432 196 (141) – (100) (11) (5) (10) 43 404
Advances and tangible
assets in progress 606 642 – – (17) (2) (13) (34) (533) 649
Total net carrying amount of
Property,plant and equipment 11,006 2,434 (1,980) (51) (527) (74) (95) (173) – 10,540
Additions of 2,434 million euros in 2006 mainly relate to the Automotive Sectors (Fiat Auto, Iveco, and CNH) and to the Powertrain
and Magneti Marelli Sector and do not include capitalised borrowing costs.
During 2006 the Group recognised impairment losses on Assets sold with a buy-back commitment from Trucks and Commercial
Vehicles for an amount of 36 million euros (24 million euros in 2005) in order to align their carrying amount to market value.
These losses are recognised in Cost of sales. In addition, the Group reviewed the recoverable amount of certain machinery and
equipment in order to determine whether there was any reduction in value arising from technical obsolescence. This assessment
led to the recognition of an impairment loss of 15 million euros, all of which was recorded in Trading profit.
Fiat Group Consolidated Financial Statements at December 31, 2006 -Notes 128