annual report - FIAT SpA

26. Other payables
At 31 December 2010, other payables amounted to €368,408 thousand, a net increase of €78,350 thousand over 31
December 2009, and included the following:
(€ thousand) 31 December 2010 31 December 2009 Change
Advances
Other payables:
Intercompany payables:
2,009 5,865 (3,856)
Consolidated VAT 131,408 124,348 7,060
Consolidated IRES tax 211,576 133,806 77,770
Other intercompany payables 104 - 104
Total intercompany payables 343,088 258,154 84,934
Social security payables 1,837 1,803 34
Current amounts payable to employees, directors and statutory auditors
Payables to shareholders of Toro Assicurazioni S.p.A., Magneti Marelli S.p.A.
13,038 5,629 7,409
and Comau S.p.A. for public offerings 642 860 (218)
Dividends payable 330 290 40
Other 295 1,871 (1,576)
Total other payables
Tax payables:
359,230 268,607 90,623
VAT payable 2,388 13,034 (10,646)
Taxes withheld on payments to employees and independent contractors 4,245 2,022 2,223
Other 432 433 (1)
Total tax payables 7,065 15,489 (8,424)
Accrued expenses and deferred income 104 97 7
Total other payables 368,408 290,058 78,350
Advances
This item consists of the difference between inventories and progress payments and contractual advances received
from the customer Treno Alta Velocità – T.A.V. S.p.A. (merged into Rete Ferroviaria Italiana S.p.A. as of 31 December
2010) for contract work in progress and is made up as follows:
(€ thousand) 31 December 2010 31 December 2009 Change
Contract work in progress 242,709 237,254 5,455
Less: Progress payments for work completed 244,479 242,370 2,109
Gross amount due to the customer 1,770 5,116 (3,346)
Net contractual advances 239 749 (510)
Total advances 2,009 5,865 (3,856)
The item relates to contracts for the high speed railway project between Fiat S.p.A. and Treno Alta Velocità - T.A.V.
S.p.A. (which was in turn engaged by F.S. S.p.A.), for the operational engineering and construction of two lines
(Bologna-Florence and Turin-Milan, the latter divided into two sub-lines: Turin-Novara and Novara-Milan). At 31
December 2010, the contractual amounts (including for additional work, monetary adjustments and other contractual
amounts) totaled €5,190 million for the Bologna-Florence line and €2,278 million for the Milan-Novara sub-line. The
contractual amount for the Turin-Novara sub-line (project completed and accounting closed at the end of 2009) was
€4,669 million.
As part of such project, Fiat S.p.A., as the general contractor, engaged CAV.E.T. and CAV.TO.MI. for the engineering
and construction activities, retaining all work coordination, organizational and management activities. Contract work in
progress therefore reflects the fees earned by Fiat S.p.A. in the form of a percentage (approximately 3.5%) of the
contractual amounts, for the activities directly carried out. The work is paid through progress payments made by T.A.V.
S.p.A. to Fiat S.p.A. based on the stage of completion of the works and advance payments, which Fiat S.p.A. then pays
over to CAV.E.T. and CAV.TO.MI. net of its contractual percentage earned.
Fiat S.p.A. – Statutory Financial Statements at 31 December 2010 301