Chrysler 2011 Annual Report Download - page 294

293
Fiat S.p.A. - Statutory
Financial Statements
at 31 December 2011
A breakdown of investments in associates and changes during the year is as follows:
(€ thousand)
%
interest
31 December
2010 Additions Decreases
Impairment
(losses)/reversals
31 December
2011
RCS MediaGroup S.p.A. 10.09 131,785 - - - 131,785
Total investments in associates 131,785 - - - 131,785
The carrying amount of the interest in RCS MediaGroup S.p.A. (a listed company) was €79.8 million higher than its corresponding stock market value at
the balance sheet date (compared to a €52.7 million difference at year-end 2010), with the company continuing to trade at a discount to book value. In
consideration of the relative stake held, for which the current stock market price (influenced by uncertainty in the eurozone and weak economic conditions
in Italy) is not representative – and in anticipation of the final results for 2011, as well as confirmation of the near-term outlook – it was deemed reasonable
to make no adjustments to the carrying amount of the investment.
Investments in other companies and changes during the year were as follows:
(€ thousand)
%
interest
31 December
2010
Reclassifications
and increases Decreases
Fair value
adjustments
31 December
2011
Fiat Industrial S.p.A. 3.00 - 347,295 (3,898) (90,221) 253,176
Fin.Priv. S.r.l. 14.28 14,340 - - (4,545) 9,795
Assicurazioni Generali S.p.A. 0.01 2,668 - - (484) 2,184
Total investments in other companies 17,008 347,295 (3,898) (95,250) 265,155
Pursuant to the Demerger, on 1 January 2011 Fiat S.p.A. was allotted 38,568,458 Fiat Industrial S.p.A. ordinary shares, without consideration, in relation
to own shares held. Subsequent to that allotment, the portion of the value of own shares recognized in equity (see Note 19) attributable to the Fiat
Industrial S.p.A. shares received, totaling €367.7 million, was reclassified under assets. The initial amount recognized was based on the relative weighting
of the market value of Fiat and Fiat Industrial shares on the date Fiat Industrial S.p.A. shares commenced trading. In accordance with IAS 39 and related
interpretations, the investment was immediately remeasured at fair value (totaling €347.1 million), with a balancing entry in retained profit (see Note 19).
Subsequent measurement of investments is at fair value.
In addition, following amendments to the stock option and stock grant plans existing at 31 December 2010 (see Note 19), 23,021,250 of the Fiat Industrial
ordinary shares allotted to Fiat S.p.A. were allocated to servicing those plans and, therefore, are linked to the liability for share-based compensation (i.e.,
provisions for stock option and stock grant plans) recognized in the statement of financial position in relation to those amendments (see Note 20). As a
consequence, fair value adjustments for the Fiat Industrial S.p.A. shares allocated to servicing those plans are recognized through profit and loss consistent
with changes in value of the associated liability. The remaining Fiat Industrial shares (15,627,208 shares at 1 January 2011) were recognized at fair value
with a corresponding adjustment to equity.
At 31 December 2011, the Company held a total of 38,215,333 Fiat Industrial ordinary shares valued at €253.2 million. Of those shares, 22,556,875 (valued
at €149.5 million) were allocated to servicing the stock option and stock grant plans and recognized at fair value through profit or loss, while the remaining
15,658,458 shares (valued at €103.7 million) were classified as available-for-sale and recognized at fair value directly in equity. Fair value measurement
resulted in a €90.2 million decrease in the investment during the year, of which €53.6 million was recognized through profit and loss (partially offset by a
€45.9 million reduction in the related liability – see Note 7) and €36.6 million directly in equity (see Note 19). Finally, the €3.9 million decrease shown above
related to Fiat Industrial shares sold during 2011 following the exercise of 433,125 options under the November 2006 stock option plan for managers.