Chrysler 2011 Annual Report Download - page 204

203
Consolidated
Financial Statements
at 31 December 2011
Other provisions for employees and liabilities for share based payments
Other provisions for employees and liabilities for share based payments consist of the best estimate at the balance sheet date of other employee benefits.
At 31 December 2011, liabilities for share-based payments include €122 million relating to the alignment of the underlying of the stock option and stock
grant plans resulting from the Demerger and discussed in Note 24 and 25. In accordance with IFRS 2 and IAS 39 the component of the plans which will
be serviced by Fiat Industrial S.p.A. shares was initially reclassified from the reserve for share-based payments in equity and measured on the basis of the
pro-rata proportion of the book value of that reserve, calculated by taking into account the weighting of the stock market prices of Fiat and Fiat Industrial
shares on the day on which the Fiat Industrial S.p.A. shares were first quoted. At the same time the liability was adjusted to fair value (€164 million) with a
corresponding entry made to Earning reserves. For the stock grant plan, the fair value of the liability is equal to the market price (stock exchange price) of
the Fiat Industrial shares. For the stock option plans it was considered appropriate to calculate this amount by allocating a strike price to the options equal
to the nominal value of the Fiat Industrial shares. After initial recognition any changes in the fair value of this liability and the notional charge still to vest for
the stock grants are recognised in profit or loss.
Other long-term employee benefits
Other long-term employee benefits represent the obligation for those benefits paid during employment generally after providing a certain period of service in
the company or when a specified event occurs; the liability incorporates the probability of payment and the time period over which the payment will be made.
In 2011 and in 2010 changes in Other provisions for employees and in Other long-term employee benefits were as follows:
(€ million)
At 31 December
2010 (*) Provision
Utilisation
and release
to income
Change in the
scope of
consolidation
Exchange rate
differences and
other differences
At 31 December
2011
Other provisions for employees 491 566 (557) 351 155 1,006
Other long-term employee benefits 124 17 (33) 173 16 297
Total 615 583 (590) 524 171 1,303
(€ million)
At 31 December
2009 Provision Utilisation
Change in
the scope of
consolidation and
other changes
Reclassified to
Discontinued
Operations
At 31 December
2010 (*)
Other provisions for employees 504 542 (269) (1) (285) 491
Other long-term employee benefits 160 32 (15) 6 (59) 124
Total 664 574 (284) 5 (344) 615
(*) The amounts relate to Continuing Operations.