Chrysler 2011 Annual Report Download - page 303

Fiat S.p.A.
Statutory
Financial
Statements
at 31 December
2011
Notes
302
Reserve for own shares
At 31 December 2011, the reserve for own shares totaled €288,883 thousand, a decrease of €367,670 thousand resulting from the transfer to retained
profit associated with the decrease in book value of own shares held following the Demerger and reclassification of the Fiat Industrial S.p.A. ordinary shares
allotted to Fiat S.p.A under Investments.
The reserve is subject to certain restrictions imposed by Article 2357-ter of the Civil Code. Changes in the reserve represent increases for own shares
purchased (through transfers from the reserve available for the purchase of own shares) and decreases for own shares sold.
On 22 February 2012, following the grant of shares to the Chief Executive Officer which vested under the 2009 plan (see following paragraphs), the reserve
totaled €259 million.
Retained profit
At 31 December 2011, retained profit totaled €1,873,082 thousand, a decrease of €1,011,052 thousand over 31 December 2010, as a result of the:
reduction of €1,159,964 thousand relating to the Demerger
decrease of €20,554 thousand due to the initial measurement at fair value of the Fiat Industrial S.p.A. ordinary shares allotted to Fiat S.p.A., in relation
to own shares held, and recognized under Investments (see Note 11)
transfer from the reserve for own shares of €367,670 thousand, as described above, following reduction in the value of own shares resulting from the
Demerger and the related allotment of Fiat Industrial S.p.A. ordinary shares to Fiat S.p.A., which were recognized under Investments
reduction of €100,217 thousand relating to initial measurement at fair value of the liability arising from the obligation to cover a portion of stock option
and stock grant plans through delivery of Fiat Industrial S.p.A. shares (see Note 20, provisions for stock option and stock grant plans)
allocation of €268,210 thousand from the prior year’s profit to retained profit, as approved by Shareholders on 30 March 2011, following allocations to
the Legal reserve and distributions to Shareholders
transfer of €367,670 thousand to the reserve available for the purchase of own shares, following the renewed authorization for the purchase of own
shares, approved by Shareholders on 30 March 2011, already referred to above
transfer of €1,473 thousand from the stock option reserve, representing the fair value of options on Fiat S.p.A. shares that either were exercised or
expired during the year in relation to the November 2006 stock option plan for managers
Gains/(losses) recognized directly in equity
This reserve includes gains and losses recognized directly in equity and in particular those arising from fair value adjustments on investments in other
companies, as described previously (see Note 11).
At 31 December 2011, the balance of this reserve was a negative €43,705 thousand, reflecting the additional loss of €41,677 thousand for the year
attributable to fair value measurement of investments in Fiat Industrial S.p.A. (for shares not allocated to servicing the stock option and stock grant plans),
Fin.Priv. S.r.l. and Assicurazioni Generali S.p.A.
Stock option reserve
At 31 December 2011, the stock option reserve totaled €52,291 thousand, a net decrease of €60,222 thousand over 31 December 2010 attributable to:
a €64,035 thousand reduction resulting from recognition of the liability arising from the obligation to cover a portion of the stock option and stock grant
plans through delivery of Fiat Industrial S.p.A. shares (see Note 20, provisions for stock option and stock grant plans)
a €1,473 thousand reduction resulting from a transfer to the retained profit reserve, representing the fair value of options on newly-issued Fiat S.p.A.
shares that either were exercised or expired during the year in relation to the November 2006 stock option plan for managers
a €5,286 thousand increase recognized through the income statement in 2011 in relation to the portion of the stock option and stock grant plans for the
Chief Executive Officer serviced by Fiat S.p.A. shares (see Note 6)