Chrysler 2008 Annual Report Download - page 295

On 31 December 2008, the Reserve available for the purchase of treasury shares totalled €1,142,740 thousand, representing a
€190,161 thousand increase over 31 December 2007 attributable to:
a net increase of €428,692 thousand following the resolution passed by Shareholders on 31 March 2008 revoking the existing
authorisation for share buy-backs to the extent not already exercised, equivalent to €775,234 thousand, and, contemporaneously,
renewing the authorisation to make share buy-backs for a maximum of €1.8 billion which, in consideration of the reserves already
utilised for share buy-backs at that date (i.e., 32,877,458 shares having a carrying value of €596,074 thousand), resulted in the
reserve available being increased to €1,203,926 thousand;
the €238,531 thousand decrease due to transfers to the “Reserve for treasury shares in portfolio” concurrent with buy-backs of
Fiat S.p.A. ordinary shares made under the Programme.
Reserve for treasury shares in portfolio
This reserve totalled €656,553 thousand at 31 December 2008, an increase of €237,243 thousand over 31 December 2007.
This reserve has its origin in the restrictions imposed by law (Article 2357-ter of the Civil Code). The change in this reserve is the
net result of an increase of €238,531 thousand arising from the transfer of this amount from the Reserve available for the purchase
of treasury shares in connection with the treasury shares purchased and a decrease of €1,288 thousand resulting from the sale of
treasury shares.
Retained profit/(loss)
At 31 December 2008, Retained profit totalled €1,084,578 thousand, an increase of €1,028,043 thousand over 31 December 2007 as
the result of the following:
allocation of €1,455,997 thousand from the prior year’s profit to retained profit/(loss), as approved by Shareholders on 31 March
2008, following allocations to the Legal reserve and distributions to Shareholders;
an addition of €428,692 thousand to the “Reserve available for the purchase of treasury shares”, as described above, following
renewal of the share buy-back Programme;
proceeds from the sale of treasury shares in the amount of €738 thousand following the exercise of options in relation to
employee stock option plans.
Gains/(losses) recognised directly in equity
This reserve includes gains and losses recognised directly in equity and in particular those arising from fair value adjustments on
investments in other companies, as described previously (see Note 12).
At 31 December 2008, this reserve was a negative €631 thousand, representing a decrease of €15,553 thousand over 31 December
2007 attributable to fair value adjustments on the investments in Fin. Priv. S.r.l. and Assicurazioni Generali S.p.A.
Stock option reserve
This reserve amounted to €96,431 thousand at 31 December 2008, an increase of €3,164 thousand over 31 December 2007, arising
from the counter-entries to the following:
the recognition in the income statement of the total cost of €9,123 thousand in 2008 (€43,988 thousand in 2007), of which €1,447
thousand arising from stock option plans based on Fiat S.p.A. shares and relating to managers employed by Fiat S.p.A. (see Note
Fiat S.p.A. Statutory Financial Statements at 31 December 2008294