Chrysler 2010 Annual Report Download - page 322

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Impairment losses recognized on the shareholdings in Fiat Powertrain Technologies S.p.A., Comau S.p.A. and Teksid Aluminum S.r.l. were substantially
attributable to losses for the year and other changes in equity reported by those subsidiaries for the period and the adjusted carrying amounts are deemed
representative of their estimated recoverable amount.
The writedown on the shareholding in Fiat Industrial S.p.A. (incorporated in 2010 to become the holding company for the demerged activities) reflects costs
incurred by the subsidiary during 2010, primarily in relation to incorporation and admission of its shares to listing on the Mercato Telematico Azionario (MTA)
managed by Borsa Italiana S.p.A.
With regard to the shareholding in Fiat Group Automobiles S.p.A., the estimates and assumptions used for preparation of the financial statements, as
described in the section “Use of Estimates”, provided reasonable support for maintaining the carrying amount recognized in the 2009 financial statements
unchanged, except for the capital increase undertaken during the year. This shareholding, which in 2005 and prior years was 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 2010,
the carrying amount of the shareholding was €5,524 million.
For the remaining significant shareholdings, in particular, the parent companies of the Group’s industrial Sectors – Fiat Netherlands Holding N.V. (which
holds a controlling interest in CNH Global N.V.), Magneti Marelli S.p.A. and Ferrari S.p.A. (all recognized at historic cost) – no indications of impairment were
identified. This also takes into consideration the carrying amounts of equity recognized in the consolidated statement of financial position, for which the
recoverability of assets has already been adequately assessed.
3. Gains/(losses) on disposals
For 2010, there was a €6 thousand gain on the sale of the 0.17% direct interest held in Elasis–Società Consortile per Azioni to Fiat Group Automobiles
S.p.A. and Fiat Partecipazioni S.p.A.
No gains or losses were reported for 2009.
4. Other operating income
The following table provides a breakdown of other operating income:
(€ thousand) 2010 2009
Revenues from services rendered to Group companies 45,137 45,229
Revenues from services rendered to third parties - 182,049
Changes in construction contract work in progress 5,456 (164,254)
Other revenues and income from Group companies 6,986 6,028
Other revenues and income from third parties 4,183 6,380
Total other operating income 61,762 75,432
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 2009, revenues from services rendered to third parties related to fees payable to Fiat S.p.A. for activities carried out directly by the Company (management,
coordination and organization) in relation to the contract with Treno Alta Velocità – T.A.V. S.p.A. for the Turin-Novara line. These revenues were recognized
following the closure of the project from an accounting perspective upon completion of the residual portion of work 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 organization) in relation to contracts with Treno Alta Velocità – T.A.V. S.p.A. (merged into Rete Ferroviaria Italiana S.p.A.
from 31 December 2010) that were still in progress at the end of the year (the Florence-Bologna line and Novara-Milan line). In 2009, this value was shown
net of fees relating to the Turin-Novara line that were no longer recognized under contract work in progress but instead under revenues.