Chrysler 2003 Annual Report Download - page 171

170 Fiat S.p.A. Financial Statements at December 31, 2003
Notes to the Financial Statements
15 Value of production
Service revenues
Service revenues, which amounted to 73,272 thousand euros in 2003, are mainly the result of transactions with Group companies.
The main component of this item (47,748 thousand euros) is fees paid for the use of the Fiat trademark. The amounts paid by
the individual companies, which are determined as a percentage of sales, are: 44,803 thousand euros from Fiat Auto S.p.A., 2,899
thousand euros from Iveco S.p.A. (only for the January 1 – May 7, 2003 period as a result of the name of the company changing
from Iveco Fiat S.p.A. to Iveco S.p.A.), 43 thousand euros from FiatAvio S.p.A., until its activities were sold to third parties. The
percentages are as follows: Fiat Auto S.p.A. and FiatAvio S.p.A. 0.5% and Iveco S.p.A. 0.2%.
Service revenues also include 25,524 thousand euros for services rendered by management personnel of Fiat S.p.A. at the main
Group companies. Overall, they increased by 4,345 thousand euros over a year earlier.
Change in contract work in progress
This item represents mainly direct costs incurred during the fiscal year for project management, coordination, and organization
in connection with the High-Speed Railway Project and capitalized as part of inventories.
Totaling 20,038 thousand euros in 2003, or 3,818 thousand euros more than in 2002, it mainly consists of services provided by
suppliers outside the Group (19,676 thousand euros).
Other income and revenues
These amounted to 19,218 thousand euros in 2003 and include 2,237 thousand euros in rental income from buildings owned by Fiat
S.p.A. and leased to Group companies; 9,110 thousand euros in fees paid by subsidiaries for services performed by employees of
Fiat S.p.A. in the capacity of Directors; 1,557 thousand euros deriving from the capital gain on the sale of the building located in
Corso Dante 102, 999 thousand euros in miscellaneous income and expense reimbursements and 5,315 thousand euros in prior
period income, largely represented by provisions for early retirement incentives not owed following the premature severance of
employees. They show an increase of 8,987 thousand euros compared with 2002.
16 Costs of production
Raw materials, supplies and merchandise
This item totaled 385 thousand euros in 2003, against 428 thousand euros in 2002.
It consists mainly of the cost of research publications, office supplies and printed forms.
Services
Service costs amounted to 99,821 thousand euros in 2003, a decrease of 16,056 thousand euros compared with 2002 due to lower
expenses for financial and legal consulting services, general services and travel.
This item represents expenses for consulting services and research studies, as well as for travel, financial, administrative, tax and
external relations services. It also includes ordinary and extraordinary maintenance and general expenses (security, cleaning, EDP,
telephone, insurance, etc.). Amounts paid to Group companies for services provided totaled 38,663 thousand euros and include
support and consulting services in Italy (3,067 thousand euros to Fiat Gesco S.p.A., 1,137 thousand euros to Fiat Ge.Va. S.p.A., 1,230
thousand euros to Fiat International S.p.A. and 448 thousand euros to KeyG Consulting S.p.A.) and abroad (708 thousand euros to
Fiat do Brasil S.A.); external relations services (2,778 thousand euros to Fiat I&CS S.r.l.); personnel training services (866 thousand
euros to Isvor Fiat S.c.p.A.); office management, maintenance (7,481 thousand euros to Ingest Facility S.p.A.); personnel management
and similar services (6,016 thousand euros to Fiat Se.p.In. S.c.p.A.); information technology services (3,234 thousand euros to Global
Value S.p.A.); security services (5,285 thousand euros to Consorzio Orione and 1,161 thousand euros to Consorzio Sirio), and
accounting and internal audit services (1,830 thousand euros to Fiat Revi S.c.r.l.).
It also includes consulting, research and professional fees of 43,174 thousand euros.