Chrysler 2009 Annual Report Download - page 296

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The carrying amount of Fiat Group Automobiles S.p.A., which distributed a dividend of €700 million in 2009, was higher than the value of equity reflected in
the consolidated financial statements. The estimates and assumptions used for preparation of the financial statements, as described in the section “Use of
Estimates”, provided reasonable support for recognising an impairment of €200 million. This investment, which in 2005 and prior years had already been
subject to writedowns that have not been fully reversed, includes total impairment losses of €2,907 million which could potentially be reversed in future
periods. At 31 December 2009, the carrying amount of the investment was €4,474 million.
Impairment losses recognised on the investments in Comau S.p.A., Teksid Aluminum S.r.l. and Fiat Partecipazioni S.p.A. are substantially attributable
to losses reported by those subsidiaries for the period and represent an alignment of the carrying amount of those investments with their estimated
recoverable value.
For other investments having a significant book value, in particular, parent companies of the Group’s industrial Sectors - Fiat Netherlands Holding N.V. (which
holds a controlling interest in CNH Global N.V.), Fiat Powertrain Technologies S.p.A., Magneti Marelli S.p.A. and Ferrari S.p.A. (all recognised at historic
cost) - no indications of impairment were identified. This also takes into consideration the carrying amounts of equity recognised in the Group consolidated
statement of financial position, for which the recoverability of assets has already been adequately assessed.
3. Gains/(losses) on disposals
There were no gains or losses on disposals of investments in 2009. The € 181 thousand gain for 2008 related to the sale of a 51% interest in Fiat Group
Marketing & Corporate Communication S.p.A. to Fiat Partecipazioni S.p.A.
4. Other operating income
The following table provides a breakdown of other operating income:
(€ thousand) 2009 2008
Revenues from services rendered to Group companies 45,229 45,337
Revenues from services rendered to third parties 182,049 -
Changes in construction contract work in progress (164,254) 19,860
Other revenues and income from Group companies 6,028 2,782
Other revenues and income from third parties 6,380 2,070
Total other operating income 75,432 70,049
Revenues from services rendered to Group companies relate to services rendered by Fiat S.p.A. and management personnel to the principal companies in
the Group (see Note 30). For 2008, this item also included royalties received from Fiat Group Automobiles S.p.A. and Fiat Automoveis S.A. – FIASA for use
of the FIAT trademark, which was sold to the subsidiary Fiat Group Marketing & Corporate Communication S.p.A. at the end of 2008.
Revenues from services rendered to third parties relate to fees payable to Fiat S.p.A. for activities carried out directly by the Company (management,
coordination and organisation) in relation to the contract with Treno Alta Velocità – T.A.V. S.p.A. for the Turin-Novara line. These revenues were recognised
following completion of the residual portion of work during the year and formal acceptance by the customer as stipulated in the contract (see Note 26).
Changes in construction contract work in progress relate to the current portion of fees payable to Fiat S.p.A. for activities carried out directly by the Company
(management, coordination and organisation) in relation to contracts with Treno Alta Velocità - T.A.V. S.p.A. that were still in progress at the end of the year
(the Florence-Bologna line and Novara-Milan line), net of fees relating to the Turin-Novara line that were no longer recognised under contract work in progress
but instead under revenues, due to the closure of the project from an accounting perspective (see Note 26).
Other revenues and income from Group companies mostly related to the recovery of costs, rental income from real estate properties and to directors’ fees
paid by companies for duties performed by Fiat S.p.A. employees.
Other revenues and income from third parties relate to miscellaneous income, recovery of costs and other prior year income.