Chrysler 2007 Annual Report Download - page 285

Additional paid-in capital
This reserve amounts to 1,540,885 thousand euros at December 31, 2007 an increase of 29 thousand euros over December 31, 2006,
which arises from the increase in capital stock which took place on February 1, 2007 following the exercising of the 4,676 Warrants
“Fiat Ordinary Share 2007” discussed earlier.
Legal reserve
This reserve totals 536,060 thousand euros at December 31, 2007 an increase of 89,498 thousand euros over December 31, 2006,
which arises from the allocation of profits from the previous year attributable to this reserve, as resolved by stockholders in
general meeting on April 5, 2007.
Reserve under Law no. 413/1991
This reserve amounted to 22,591 thousand euros at December 31, 2007, unchanged with respect to December 31, 2006. It reflects
the mandatory revaluation of property (net of the related substitute tax) made pursuant to Law no. 413 of December 30, 1991 taken
to this specific reserve in accordance with that law.
Reserve available for the purchase of treasury stock
This reserve was established during the year through a transfer from “Retained earnings (losses)” made on the basis of a
resolution adopted by stockholders in general meeting on April 5, 2007, which authorised the purchase of a maximum number of
treasury shares from the three classes such as not to exceed in total 10% of the capital stock and an amount of maximum 1.4 billion
euros, including the restricted reserve for treasury stock in portfolio (which at that date amounted to 21,398 thousand euros). This
authorisation is valid for a term of eighteen months and accordingly expires on October 5, 2008. The residual amount at that date,
if any, will be re-allocated to retained earnings.
On the same day, the Board of Directors, following the authorisation given by the stockholders meeting pursuant to laws that
require that a treasury stock buy-back programme (the “Programme”) be announced to the market, communicated the details of the
Programme aimed at servicing the stock option plans and investing surplus funds and which are as follows:
■the Programme will end on April 30, 2008, or once the maximum amount of 1.4 billion euros or a number of shares equal to 10%
of the capital stock is reached;
■the maximum purchase price may not be higher/lower than 10% of the reference price reported on the Stock Exchange on the day
before the purchase is made;
■the maximum number of shares purchased daily may not exceed 20% of the total daily trading volume for each class of shares.
At February 15, 2008, the total number of ordinary shares purchased from the beginning of the programme amounted to
31.54 million, for a total invested amount of 603.4 million euros. The Group intends to continue its share buy-back programme
throughout 2008 and it is the intention of the Board of Directors to request stockholders to renew their authorisation at their next
general meeting.
At December 31, 2007 the Reserve available for the purchase of treasury stock amounted to 952,579 thousand euros, made up of
the initial amount on establishment of 1,378,602 thousand euros less transfers totalling 426,023 thousand euros made to the
Reserve for treasury stock in portfolio when purchases of ordinary Fiat S.p.A. shares were made as part of the Programme.
Reserve for treasury stock in portfolio
This reserve totalled 419,310 thousand euros at December 31, 2007, an increase of 395,171 thousand euros over December 31, 2006.
Fiat S.p.A. Financial Statements at December 31, 2007 - Notes to the Financial Statements284