Chrysler 2010 Annual Report Download - page 340

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At 31 December 2010, this reserve was a negative €2,028 thousand, representing a decrease of €4,468 thousand over 31 December 2009 attributable to
fair value adjustments on the investments in Fin. Priv. S.r.l. and Assicurazioni Generali S.p.A.
Stock option reserve
At 31 December 2010, the stock option reserve totaled €112,513 thousand, an increase of €17,241 thousand over 31 December 2009, due to the cost
recognized in the income statement for the year related to stock option and stock grant plans for the Chief Executive Officer that are based on Fiat S.p.A.
shares (see Note 6).
Other reserves
At 31 December 2010, other reserves amounted to €89,829 thousand and were unchanged from 31 December 2009. The amount includes:
Reserves pursuant to Law 413/1991: a total of €22,591 thousand corresponding to the compulsory revaluation of property (net of substitute tax) pursuant
to Law 413 of 30 December 1991 and allocated to a specific reserve, as required by Law.
Extraordinary reserve: a total of €28,044 thousand corresponding to the value approved by Shareholders on 11 May 2004.
Reserve for Spin-off difference: a total of €39,194 thousand and includes the positive difference arising from the spin-off executed by Fiat Partecipazioni
S.p.A. on 29 December 2008.
Effects of the Demerger on Share Capital and Reserves
As a consequence of the Demerger, from 1 January 2011 the equity of Fiat S.p.A. will be proportionally reduced by €3,750,346 thousand through a
reduction in share capital of €1,913,179 thousand and in reserves of €1,837,167 thousand. Specifically:
share capital will be reduced by €1,913,179 thousand to €4,464,084 thousand;
the legal reserve will be reduced by €214,937 thousand to €501,521 thousand;
the share premium reserve will be reduced by €462,266 thousand to €1,078,619 thousand;
the retained profit reserve will be reduced by €1,159,964 thousand to €1,724,170 thousand.
Fiat S.p.A.’s share capital will be reduced through a reduction in par value per share (from €5.00 to €3.50) for all classes, rather than through the cancellation
of shares.
The €1.50 per share reduction in par value for Fiat S.p.A. shares (which corresponds pro rata to the reduction in net assets resulting from the Demerger)
was fully offset by the issue of one new share in Fiat Industrial S.p.A. for every share in Fiat S.p.A., at a par value of €1.50 each. The newly issued shares in
Fiat Industrial S.p.A. have identical rights and privileges to the corresponding class of shares in Fiat S.p.A.
A portion of the distribution entitlement of each class of shares in Fiat S.p.A. was reallocated, on a pro rata basis, to the corresponding class of shares in Fiat
Industrial S.p.A. such as to ensure that the priority and level of entitlement, as a percentage of par value, remain unchanged.
Following the introduction of amendments to the By-laws, subsequent to approval of the allocation of 2010 profit, Fiat S.p.A.’s annual profit will be allocated
as follows:
to the legal reserve, 5% of net profit until the amount of the reserve is equal to one-fifth of share capital;
to savings shares, a dividend of up to €0.217 per share;
further allocations to the legal reserve, allocations to the extraordinary reserve and/or to retained profit reserve as may be resolved by Shareholders;
to preference shares, a dividend of up to €0.217 per share;