Chrysler 2003 Annual Report Download - page 172

171 Fiat S.p.A. Financial Statements at December 31, 2003
Notes to the Financial Statements
Leases and rentals
Leases and rentals totaled 735 thousand euros in 2003, or 247 thousand euros less than in 2002.
Personnel
This item amounted to 97,535 thousand euros in 2003 and includes provisions to the Reserve for pensions and similar obligations for
bonuses and severance incentives (5,102 thousand euros). This item shows an increase of 31,340 thousand euros with respect to 2002
due to higher retirement incentives and increased wage and salary and social security contributions. The Company’s average number
of staff decreased from 210 employees in 2002, including 108 managers, 96 clerical staff, and 6 blue collar workers, to 167 employees
in 2003, including 87 managers, 75 clerical staff, and 5 blue collar workers.
During 2003, 15 managers were seconded to the Group’s main subsidiaries (16 in 2002), which were billed for the respective costs.
Amortization and depreciation
This item totaled 29,774 thousand euros in 2003, with a net increase of 19,639 thousand euros from the previous year. This change
is largely attributable to amortization, determined on a pro-rated basis for the entire fiscal year, of the expenses for the convertible
facility, and the amortization of costs incurred in connection with the capital increase which are capitalized in the fiscal year.
Amortization of intangible fixed assets totaled 26,523 thousand euros, and depreciation of property, plant and equipment amounted
to 3,251 thousand euros.
Other operating costs
At 14,492 thousand euros, this item was 13,714 thousand euros less than in 2002.
It includes indirect taxes and fees (45 thousand euros for municipal property taxes, 237 thousand euros for nondeductible VAT, etc.);
contributions and association fees (1,149 thousand euros); costs connected to contributions to fund the automotive engineering
degree course (2,606 thousand euros); losses on sales of vehicles and office equipment (231 thousand euros), prior period expenses
for employee bonuses (2,379 thousand euros) that were ascertained upon audit to be less than what was paid and sundry items.
It also includes fees paid to the Statutory Auditors and Directors of Fiat S.p.A. amounting to 147 thousand euros and 4,763 thousand
euros, respectively.
Directors’ fees included 4,132 thousand euros in compensation awarded by the Stockholders’ Meeting as well as annual fees
approved by the Board of Directors for Directors vested with particular offices, and 631 thousand euros for compensation provided
in kind, which was booked under services.