Chrysler 2007 Annual Report Download - page 286

This reserve has its origin in the restrictions imposed by law (Article 2357 ter of the Italian Civil Code). The change in this reserve is
the net result of an increase of 426,023 thousand euros arising from the transfer of this amount from the Reserve available for the
purchase of treasury stock in connection with the treasury shares purchased and a decrease of 30,852 thousand euros resulting
from the sale of treasury stock.
Extraordinary reserve
At December 31, 2007, the extraordinary reserve totals 28,044 thousand euros, with an increase of 21,909 thousand euros from
December 31, 2006.
This reserve has been brought to the original amount of 28,044 thousand euros, determined by stockholders in the general meeting
held on May 11, 2004, following the proceeds of the sale of treasury shares.
Retained earnings (losses)
Retained earnings at December 31, 2007 of 56,535 thousand euros represent an increase of 609,947 thousand euros over
December 31, 2006 as the result of the following:
■the allocation of the net profit of the prior year as resolved by stockholders in general meeting on April 5, 2007 (an amount of
553,412 thousand euros was used to fully offset accumulated retained losses, and 1,426,523 thousand euros was transferred to
retained earnings following the distribution of dividends);
■the establishment of the Reserve available for the purchase of treasury stock (in the amount of 1,378,602 thousand euros as
described earlier) as a consequence of the introduction of the treasury stock buy-back Programme authorised by stockholders in
general meeting on April 5, 2007;
■the receipt of the proceeds of 8,614 thousand euros from the sale of treasury stock following the reconstitution of the
Extraordinary reserve discussed previously.
Gains (losses) recognised directly in equity
The reserve includes gains and losses recognised directly in equity and in particular those arising from the fair value adjustment of
investments in other companies, as described previously (see Note 11). At December 31, 2007, the reserve amounted to 14,922
thousand euros and it refers to the investments in Fin.Priv. S.r.l. and in Assicurazioni Generali S.p.A.
The decrease of 147,842 thousand euros from December 31, 2006 arises from a reduction of 161,871 thousand euros, being the
balance on the reserve at December 31, 2006 relating to the investment in Mediobanca S.p.A., of which 115,662 thousand euros
were reclassified to the income statement following the sale, net of an increase of 14,029 thousand euros resulting from the fair
value remeasurement at December 31, 2007 of the investments in Fin.Priv. S.r.l. and Assicurazioni Generali S.p.A.
Stock option reserve
This reserve amounted to 93,267 thousand euros at December 31, 2007, an increase of 65,867 thousand euros over December 31, 2006,
arising from the counter-entries to the following:
■the recognition in the income statement of the total cost of 43,988 thousand euros in 2007 (11,297 thousand euros in 2006), of
which 7,235 thousand euros arising from stock option plans based on Fiat S.p.A. shares and relating to managers employed by
Fiat S.p.A. (see Note 5) and 36,753 thousand euros arising from stock option plans based on Fiat S.p.A. shares and relating to the
Chief Executive Officer (see Note 6);
Fiat S.p.A. Financial Statements at December 31, 2007 - Notes to the Financial Statements 285