Chrysler 2013 Annual Report Download - page 307

306 Fiat S.p.A.
Statutory Financial
Statements
at 31 December 2013
Notes
Reserve available for the purchase of own shares
This reserve was created through a transfer from the retained profit reserve, following shareholder approval for share repurchases.
At 31 December 2013, the reserve available for the purchase of own shares totaled €941,042 thousand, a decrease of approximately €1 thousand
over 31 December 2012 resulting from a transfer to the reserve for own shares.
On 9 April 2013, shareholders renewed the authorization for the purchase and disposal of own shares, including through subsidiaries, while
at the same time revoking the authorization of 4 April 2012. The renewed authorization was for the purchase of a maximum number of shares,
not to exceed the legally established percentage of share capital or, in any event, a total of €1.2 billion, including the €259 million in own
shares already held. As announced, the buy-back program is currently on hold and buy-backs are not obligatory under the authorization. The
shareholder authorization is valid for a period of 18 months and any buy-backs must be executed in the manner established by law and at a
price which is within 10% of the reference price published by Borsa Italiana on the date prior to the purchase.
On 27 February 2014, the Board of Directors voted to submit a proposal to shareholders to revoke the shareholder authorization for the
purchase and disposal of own shares given on 9 April 2013, to the extent not already utilized, and renew the authorization, for a period of
18 months, to purchase a maximum number of shares not to exceed the legally-established percentage of share capital or an aggregate
amount of €1.2 billion, including existing reserves of €259 million for own shares already held. Should the renewal be approved, the
Company would be under no obligation to buy back shares. The authorization is being requested to ensure the Company the flexibility to
pursue any strategic opportunities that may arise for all purposes permitted by law.
Reserve for own shares
At 31 December 2013, the reserve for own shares totaled €258,958 thousand, an increase of approximately €1 thousand over 31 December 2012.
The reserve is subject to certain restrictions imposed by Article 2357-ter of the Civil Code and the change for the period, reflecting changes in the
book value of own shares held, was attributable to the transfer from the reserve available for the purchase of own shares in relation to the purchase
of residual fractions of shares following the conversion of Fiat S.p.A. preference and savings shares into ordinary shares in 2012.
Retained profit
At 31 December 2013, retained profit totaled €1,763,783 thousand, a decrease of €151,233 thousand over 31 December 2012 resulting
from:
allocation of the reported loss of €152,302 thousand for the prior year (net of the effects of the amendment to IAS 19), following shareholder
approval on 9 April 2013, and
the transfer of €1,069 thousand from the stock option reserve, which represented the fair value of options exercised or expiring during the
year in relation to the portion of the November 2006 stock option plan for managers serviced by Fiat S.p.A. shares
Gains/(losses) recognized directly in equity
At 31 December 2013, the reserve had a negative balance of €16,936 thousand, representing a positive difference of €5,590 thousand over
31 December 2012.
The reserve includes actuarial gains and losses from remeasurement of defined benefit plans that will not be reclassified to the income
statement, as well as gains and losses arising from fair value adjustments on investments in other companies that were recognized directly in
equity, as described previously (see Note 11).