Chrysler 2007 Annual Report Download - page 171

170 Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
Assumed health care cost trend rates have a significant effect on the amount recognised in the 2007 income statement. A one
percentage point change in assumed health care cost trend rates would have the following effects:
One percentage One percentage
(in millions of euros) point increase point decrease
Effect on the aggregate of the service costs and interest cost 22 18
Effect on defined benefit obligation 76 65
The present value of the defined benefit obligations in 2007 and at the end of the four previous years is as follows:
At At At At At
December 31, December 31, December 31, December 31, December 31,
(in millions of euros) 2007 2006 2005 2004 2003
Present value of obligation:
- Employee severance indemnity 1,133 1,362 1,417 1,243 1,265
- Pension plans 2,730 3,107 3,186 2,830 2,713
- Health care plans 817 1,109 1,417 1,186 1,095
- Others 279 278 323 278 275
Total 4,959 5,856 6,343 5,537 5,348
The best estimate of expected contribution to pension and health care plan for 2008 is as follows:
(in millions of euros) 2008
Pension plans 54
Health care plans 123
Total expected contribution 177
27. Other provisions
Changes in Other provisions are as follows:
At At
December 31, Release to December 31,
(in millions of euros) 2006 Charge Utilisation income Other changes 2007
Warranty provision 1,254 1,254 (1,085) (58) (31) 1,334
Restructuring provision 561 115 (313) (13) (42) 308
Investment provision 67 – – – 23 90
Other risks 2,968 2,928 (2,434) (221) (8) 3,233
Total Other provisions 4,850 4,297 (3,832) (292) (58) 4,965
The effect of discounting provisions amounts to 7 million euros in 2007 and has been included in the Other changes as the
negative effect of exchange rate differences amounting to 29 million euros.
The warranty provision represents management’s best estimate of commitments given by the Group for contractual, legal or
constructive obligations arising from product warranties given for a specified period of time which begins at the date of delivery to
the customer. This estimate has been calculated considering, past experience and specific contractual terms.