Chrysler 2007 Annual Report Download - page 163

162 Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
Changes during the period are as follows:
rights on GM $1 2/3 shares rights on Fiat S.p.A. shares
Outstanding at the beginning of the year 176,747 705,402
Granted during the year ––
Forfeited during the year ––
Exercised during the year – (307,582)
Expired during the year ––
Outstanding at December 31, 2007 176,747 397,820
Exercisable at December 31, 2007 176,747 397,820
Exercisable at December 31, 2006 176,747 705,402
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, 2007 and 2006, 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, 2007 At December 31, 2006
GM $1 2/3 Fiat S.p.A. GM $1 2/3 Fiat S.p.A.
share ordinary share share ordinary share
Closing price $ 24.89 € 17.695 $ 30.72 € 14.425
Expected volatility (%) 51.90 36.27 42.67 28.33
Expected dividend yield (%) 4.07 – 3.26 –
The dividends expected to be paid on the ordinary shares of Fiat S.p.A. and used in the binomial model for 2006 and 2007 are
those referred to in 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, 2007 and at December 31, 2006 amounts to:
Fair value at December 31, 2007 Fair value at December 31, 2006
GM $1 2/3 Fiat S.p.A. GM $1 2/3 Fiat S.p.A.
(in euros) share ordinary share share ordinary share
2001 Plan 0.61 3.85 2.33 2.18
2002 Plan 1.57 4.60 3.44 2.64
2003 Plan 3.65 9.81 6.37 6.95
2004 Plan 3.17 11.67 5.22 8.59
The liability arising on this plan at December 31, 2007 amounted to 3 million euros (5 million euros at December 31, 2006). The
intrinsic value of these plans at December 31, 2007, amounted to 2 million euros.
Treasury Stock
Treasury stock consists of 21,851,458 Fiat S.p.A. ordinary shares for an amount of 419 million euros (3,773,458 ordinary shares for
an amount of 24 million euros at December 31, 2006).