Chrysler 2004 Annual Report Download - page 193

191
Financial Statements at December 31, 2004 – Notes to the Financial Statements
Service revenues also include 12,081 thousand euros for services rendered by management personnel of Fiat S.p.A. at the main
Group companies.
Overall, they decreased by 13,497 thousand euros over 2003, due to less bills to Group companies in consequence of the divestiture
of activities.
Change in contract work in progress
This item represents mainly 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 16,859 thousand euros in 2004, or 3,179 thousand euros less than in 2003, it mainly consists of services provided by suppliers
outside the Group (16,486 thousand euros).
Other income and revenues
Other income and revenues amounted to 11,852 thousand euros in 2004 and include 2,337 thousand euros in rental income from
buildings owned by Fiat S.p.A. and leased to Group companies; 3,562 thousand euros in fees paid by miscellaneous companies
for services performed by employees of Fiat S.p.A. in the capacity of Directors; 706 thousand euros in miscellaneous income and
expense reimbursements; 5,247 thousand euros in prior period income, largely represented by provisions for early retirement
incentives not owed following the premature severance of employees and bonuses to employees that were ascertained upon audit
to be less than what was paid. They show a decrease of 7,366 thousand euros compared with 2003 mainly in consequence of lower
fees paid to Directors performed by employees.
16 Costs of production
Raw materials, supplies and merchandise
This item totaled 423 thousand euros in 2004, against 385 thousand euros in 2003.
It consists mainly of the cost of research publications, office supplies and printed forms.
Services
Service costs amounted to 109,849 thousand euros in 2004, an increase of 10,028 thousand euros compared with 2003 due to higher
expenses for services related to projects in the administrative area of interest to the Group.
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 46,916 thousand euros and include
support and administrative and financial consulting services in Italy (3,244 thousand euros to Fiat Gesco S.p.A., 1,073 thousand euros
to Fiat Ge.Va. S.p.A., and 3,258 thousand euros to KeyG Consulting S.p.A.) and abroad (900 thousand euros to Fiat do Brasil S.A.);
external relations services (1,056 thousand euros to Fiat I&CS S.c.p.A.); personnel training services (3,460 thousand euros to Isvor Fiat
S.c.p.A.); office management, maintenance (9,922 thousand euros to Ingest Facility S.p.A.); personnel management and similar
services (6,543 thousand euros to Fiat Se.p.In. S.c.p.A.); information technology services (3,045 thousand euros to Global Value S.p.A.,
1,892 thousand euros to eSPIN S.p.A.); security services (3,266 thousand euros to Consorzio Orione and 1,180 thousand euros to
Consorzio Sirio), and accounting and internal audit services (5,087 thousand euros to Fiat Revisione Interna S.c.r.l.).
It also includes consulting, research and professional fees of 48,645 thousand euros.
Leases and rentals
Leases and rentals totaled 949 thousand euros in 2004, or 214 thousand euros more than in 2003.
Personnel
This item amounted to 52,879 thousand euros in 2004 and includes provisions to the Reserve for pensions and similar obligations for
bonuses and severance incentives (2,190 thousand euros). This item shows a decrease of 44,656 thousand euros with respect to 2003