Chrysler 2011 Annual Report Download - page 311

Fiat S.p.A.
Statutory
Financial
Statements
at 31 December
2011
Notes
310
Provisions for stock option and stock grant plans
At 31 December 2011, this item totaled €121,604 thousand and represented the liability arising from the obligation, following the Demerger, to deliver Fiat
Industrial S.p.A. shares to cover a portion of the stock option and stock grant plans.
Changes in provisions for stock option and stock grant plans for the year were as follows:
(€ thousand)
Opening
balance Accruals Utilizations
Fair value
adjustments
31 December
2011
Provisions for stock option and stock grant plans 164,252 6,728 (3,483) (45,893) 121,604
As indicated previously, in accordance with IFRS 2 and IAS 39 the portion of the plans covered by Fiat Industrial S.p.A. shares was initially reclassified from
the stock option reserve and measured based on the pro rata book value of that reserve, determined on the basis of the relative market price of Fiat and Fiat
Industrial shares on the date Fiat Industrial S.p.A. shares commenced trading. The liability was immediately remeasured at fair value (€164,252 thousand)
and a corresponding entry made to retained profit (see Note 19). For the stock grant plan, the fair value of the liability is equivalent to the market value of
Fiat Industrial shares. For the stock option plans, the calculation assumed that the exercise price of the options was equal to the par value of Fiat Industrial
shares. Following initial recognition, the notional cost of the stock grants vested (€6,728 thousand) and the decrease in fair value of the liability (-€45,893
thousand) were recognized through the income statement. Finally, utilizations during the year (€3,483 thousand) were essentially due to the sale of Fiat
Industrial shares following the exercise of 433,125 options under the November 2006 stock option plan for managers.
Other non-current provisions
At 31 December 2011, this item totaled €929 thousand (€1,021 thousand at 31 December 2010) and mainly relates to future amounts to be paid to
employees who left the Company in previous years under a long-term benefit program which bridges the period prior to retirement.
During 2010, changes in provisions for employee benefits and other non-current provisions were as follows:
(€ thousand)
31 December
2009 Accruals Utilizations
Other
changes
31 December
2010
Provisions for employee benefits and similar 24,196 1,623 (5,217) (1,551) 19,051
Other non-current provisions 1,245 - (224) - 1,021
Total provisions for employee benefits and
other non-current provisions 25,441 1,623 (5,441) (1,551) 20,072