The Benetton Group Annual Report 1996

COMMENTS ON THE PRINCIPAL LIABILITY AND EQUITY CAPTIONS
(in millions of Lire)
STOCKHOLDERS' EQUITY
14. Capital stock
The capital stock of Benetton Group S.p.A. is represented by 174,553,725 issued and fully-paid ordinary
shares, par value Lire 500 each. The 1980 spinoff reserve and part of the monetary revaluation reserves
were capitalized by Benetton Group S.p.A. in prior years by the issue of stock dividends.
Capital stock, issued and fully-paid, amounts to Lire 87,276,862,500.
15. Additional paid-in capital
This caption is unchanged with respect to the prior year.
16. Revaluation reserves
This caption reflects the residual amount of revaluation reserves established in accordance with the
provisions of Law 72 of March 19, 1983, together with the net surplus following the revaluation in
accordance with Law 413/91 of December 30, 1991, and the monetary revaluation of tangible fixed
assets by a Spanish subsidiary, in accordance with local legislation (Royal Decree 2607/96).
Taxation has not been provided in respect of these reserves or of those capitalized, since, at this time,
the conditions which would give rise to such taxation are not expected to occur.
17. Legal reserve
This caption is unchanged with respect to the prior year.
18. Reserve for treasury shares held
This balance, Lire 719 million, derives from the reclassification pursuant to article 2357-ter of the Italian
Civil Code of part of the extraordinary reserve, following the 1996 acquisition of treasury shares during
the year by Benetton Group S.p.A..
19. Other reserves
As of December 31, 1996, this caption amounts to Lire 950,880 million (Lire 814,282 million as of
December 31, 1995) and includes:
– Lire 174,877 million relating to other reserves of the parent company (Lire 112,947 million as of
December 31, 1995);
– Lire 6,947 million relating to the cumulative translation adjustment generated by translating the foreign
currency financial statements of companies consolidated on a line-by-line basis;
– Lire 769,056 million representing the additional equity of consolidated companies with respect to their
carrying value, together with other consolidation entries.
The first of the schedules which follow reconciles the stockholders' equity and net income of Benetton
Group S.p.A. with the corresponding consolidated amounts; the second lists the equity in consolidated
subsidiaries attributable to minority stockholders.