THE FIAT GROUP IN - Fiat SpA

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In particular, with respect to the aforementioned net goodwill relating to the CNH Group (3,230 million euros), specific reviews
were conducted, also to conform to the United States accounting standard SFAS 121 (the accounting standard applied by CNH
Global NV in its consolidated financial statements which are prepared in accordance with US GAAP). These reviews revealed that
the values are recoverable at the Sector level expressed in the financial statements. Moreover, CNH Global is also conducting
new more detailed reviews at the level of each single business unit under the new United States accounting standard SFAS 142,
which is applicable from January 1, 2002. At this time, it is not possible to anticipate the conclusions of such reviews, nor if
these reviews will have a significant impact on the valuation of such goodwill also in relation to Italian accounting principles.
2 Property, plant and equipment
Net of Change in Foreign Disposals Net of Accumulated
depreciation the scope of Reclassi- exchange and Other depreciation depreciation
(in millions of euros) 12/31/2000 Additions Depreciation consolidation fications effects changes 12/31/2001 12/31/2001
Land and buildings 4,891 144 (203) (82) 26 21 (394) 4,403 1,955
Plant and machinery 6,264 521 (819) (1,559) 229 (45) (189) 4,402 8,306
Industrial and commercial equipment 1,823 439 (672) (15) 220 (45) (106) 1,644 5,992
Other assets 2,547 1,362 (593) (12) 12 25 (1,131) 2,210 2,412
Construction in progress and advances 1,152 972 – (209) (487) 3 (203) 1,228 –
Total Property, plant and equipment 16,677 3,438 (2,287) (1,877) – (41) (2,023) 13,887 18,665
Property, plant and equipment include revaluations, which, net of depreciation recorded in previous years, are 388 million euros
at December 31, 2001 and 481 million euros at December 31, 2000.
No interest expenses were capitalized in 2001 and in 2000.
Change in the scope of consolidation shows a total decrease of 1,877 million euros, being the result of the sale of Fenice
(459 million euros), the deconsolidation of the Powertrain and Purchasing businesses of Fiat Auto which were contributed to
the joint-ventures with General Motors that are now accounted for using the equity method (1,559 million euros), as well as
the inclusion and exclusion of other minor companies in consolidation (141 million euros).
Reclassifications primarily refer to a reduction in construction in progress and advances for the purchase of property, plant and
equipment existing at the end of the prior year, which were reclassified at the time they were effectively acquired and put into
operation.
Disposals and other changes show a total reduction of 2,023 million euros and include, with respect to land and buildings,
394 million euros partly related to the sale of non-strategic properties sold with the intent to reduce net invested capital.
Other assets include vehicles on operating leases for 1,599 million euros at December 31, 2001 (1,874 million euros at
December 31, 2000), mainly related to long-term leases. The decrease of 275 million euros from December 31, 2000 mainly
refers to the Automobile Sector in respect of the transfer of part of the vehicle rental business to the joint venture Leasys S.p.A.,
which is accounted for using the equity method.
The depreciation rates used are determined on the basis of the estimated useful lives of the assets and are listed below:
Depreciation rates
Land and buildings 3% – 9%
Plant and machinery 8% – 21%
Industrial and commercial equipment 16% – 28%
Other assets 11% – 25%