Chrysler 2013 Annual Report Download - page 288

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Fiat S.p.A. Statutory
Financial Statements
at 31 December 2013
An impairment charge of €74 million on the investment in the listed associate RCS MediaGroup S.p.A. (€35 million impairment charge
recognized in 2012) was primarily attributable to the significant losses reported in the fourth quarter of 2012 and first half of 2013 (attributable
in large part to restructuring measures) and the financial difficulties experienced by the company prior to its recapitalization in July 2013. Both
factors also had a significant influence on the company’s share price performance. The adjustment, which reduced the carrying value of the
investment to €117 million (€1.34 per ordinary share), was based on a prudent valuation that took into account the earnings estimates in
the 2013-2015 Development Plan presented at the beginning of 2013, as well as share price performance from the capital increase through
year end. At the beginning of December 2013, the company presented the first phase of implementation of the above Development Plan to
the financial community, indicating that results up to that moment had been in line with the Plan and, with regard to cost actions and debt
reduction, had actually outperformed targets. For the first two months of 2014, the company’s share price was above December 2013 levels.
The €17 million writedown on the investment in Teksid Aluminum S.r.l. was primarily based on the reported loss for the year. The current
carrying amount is considered representative of the investee’s estimated recoverable value.
For Fiat Partecipazioni S.p.A. (now FGA Real Estate Services S.p.A.), the €16 million impairment reversal reflected alignment of the carrying
amount of the investment to the value of net assets transferred to Fiat Group Automobiles S.p.A. as a contribution to capital (see Note 11).
3. Gains/(losses) on disposals
For 2013, gains on disposals of €971 thousand related to the sale to Fiat Partecipazioni S.p.A. of a 71% interest in Fiat Revisione Interna S.c.p.A.
(gain of €925 thousand) and a 3% interest in Isvor Fiat S.c.p.A. (gain of €46 thousand). Neither company is operational. No equity investments
were sold in 2012.
4. Other operating income
Other operating income consisted of the following:
(€ thousand) 2013 2012
Revenues from services rendered to Group companies and other related parties 75,667 70,529
Changes in construction contract work in progress 1,769 527
Other revenues and income from Group companies and other related parties 4,195 4,215
Other revenues and income from third parties 1,193 2,103
Total Other operating income 82,824 77,374
Revenues from services rendered to Group companies and other related parties relate to services rendered by Fiat S.p.A. and management
personnel to the principal companies in the Group (see Note 29).
Changes in construction contract work in progress relate to the current portion of fees payable to Fiat S.p.A. for activities carried out directly by
the Company (management, coordination and organization) in relation to contracts with Treno Alta Velocità – TAV S.p.A. (now Rete Ferroviaria
Italiana S.p.A.) that were still in progress at the end of the year (the Florence-Bologna and Novara-Milan lines – see Note 25).