Chrysler 2006 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2006 Chrysler annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 174

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174

In accordance with IFRS 2, the Group measures the liability arising from cash-settled share-based payment transactions at fair value
at each reporting date and at the date of settlement; the changes in the fair value of these liabilities are recognised in the income
statement for the period. At December 31, 2006 and 2005, the Group measured the fair value of the liabilities generated by these
plans using the binomial method based on the following assumptions:
At December 31, 2006 At December 31, 2005
Fiat S.p.A. Fiat S.p.A.
GM $1 2/3 share ordinary share GM $1 2/3 share ordinary share
Closing price $30.72 €14.425 $19.42 €7.36
Expected volatility (%) 42.67 28.33 77.56 28.39
Expected dividend yield (%) 3.26 –10.30 0.00
The dividends expected to be paid on the ordinary shares of Fiat S.p.A. and used in the binomial model for 2006 are those referred
to in recent statements made by the Group, consistent with the approach taken for the stock options granted by Fiat S.p.A. in 2006.
The fair value of the above mentioned rights at December 31, 2006 and at December 31, 2005 amounts to:
Fair value at December 31, 2006 Fair value at December 31, 2005
Fiat S.p.A. Fiat S.p.A.
(in euros) GM $1 2/3 share ordinary share GM $1 2/3 share ordinary share
2001 Plan 2.33 2.18 3.28 0.23
2002 Plan 3.44 2.64 3.99 0.41
2003 Plan 6.37 6.95 5.37 2.10
2004 Plan 5.22 8.59 4.92 3.15
Aloss of 2 million euros from the total change in the fair value of these cash-settled share-based payment plans was recognised
by the Group in 2006 income (a loss of 2 million euros in 2005).
Treasury Stock
Treasury stock consists of 3,773,458 Fiat S.p.A. ordinary shares for an amount of 24 million euros (4,331,708 ordinary shares for an
amount of 28 million euros at December 31, 2005).
Capital reserve
At December 31, 2006, the Capital reserve includes 682 million euros of additional paid-in capital for a total amount of 1,541
million euros consisting of the share premium paid by the subscribers of the capital increase made after the extinguishment of the
Mandatory Convertible Facility on September 20, 2005 described at the paragraph Capital stock; 859 million euros are in to Earning
reserves.
Earning reserves
The principal earning reserves are as follows:
■The legal reserve of Fiat S.p.A. of 447 million euros at December 31, 2006 (447 million euros at December 31, 2005);
■Retained earnings totalling 262 million euros at December 31, 2006 (retained losses totalling 1,055 million euros at December 31, 2005);
Fiat Group Consolidated Financial Statements at December 31, 2006 -Notes 157
■The net result before minority interest of 1,065 million euros for the year ended December 31, 2006 (net result of 1,331 million
euros for the year ended December 31, 2005);
■The share based payments reserve of 27 million euros at December 31, 2006 (16 million euros at December 31, 2005).
Income (expense) recognised directly in equity
This item consists of accumulated other comprehensive income at December 31, 2006; changes for the two years then ended are as
follows:
Available- Cumulative Income (expense)
Cash flow for-sale translation recognised
(in millions of euros) hedge reserve reserve differences directly in equity
Balances at January 1, 2005 33 75 (75) 33
Gains (losses) recognised directly in the cash flow hedge reserve (16) – – (16)
Gains (losses) recognised directly in the available-for-sale reserve – 61 – 61
Gains (losses) on translation differences –– 921 921
(Net profit) loss (44) – – (44)
Balances at December 31, 2005 (27) 136 846 955
Gains (losses) recognised directly in the cash flow hedge reserve 109 – – 109
Gains (losses) recognised directly in the available-for-sale reserve –46 –46
Gains (losses) on translation differences – – (551) (551)
(Net profit) loss (6) (12) (1) (19)
Balances at December 31, 2006 76 170 294 540
Minority interest
The minority interest in stockholders’ equity of 674 million euros (732 million euros at December 31, 2005) refers mainly to the
following companies consolidated on a line-by-line basis:
%held by minority stockholders
At December 31, 2006 At December 31, 2005
Italian companies:
Ferrari S.p.A. 15.0 44.0
Teksid S.p.A. 15.2 15.2
Foreign companies:
CNH Global N.V.10.3 16.1
Fiat Group Consolidated Financial Statements at December 31, 2006 -Notes 156