Chrysler 2005 Annual Report Download - page 240

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Fiat S.p.A. Financial Statements at D ecember 31, 2005 - N otes to the Financial Statements
of 11,174 thousand euros with respect to 2004 mainly due to lower wage and salary and social security contributions and lower provisions set
aside for employee bonuses.The Company’s average number of staff decreased from 151 employees in 2004 (83 managers, 63 clerical staff,
and 5 blue collar workers) to 133 employees in 2005 (63 managers, 65 clerical staff and 5 blue collar workers).
During 2005, 11 managers were seconded to the Group’s main subsidiaries (12 in 2004), which were billed for the respective costs.
Amortisation and depreciation
This item totalled 27,031 thousand euros in 2005 and refers for 23,746 thousand euros to the amortisation of intangible fixed assets and for
3,285 thousand euros to the depreciation of property, plant and equipment.The 2,686 thousand euro decrease with respect to 2004 is mainly
due to the lower depreciation rate, with respect to 2004, connected to commissions and costs for organisation of the Mandatory Convertible
Facility, which was extinguished in 2005.
Other operating costs
These costs totalled 40,701 thousand euros in 2005.The increase over 2004 is mainly due to the indemnity paid for the unwinding
of the agreements with IBM and to contributions made to Group companies for initiatives to enhance the image of the Group.
The item includes fees paid to the D irectors, Statutory Auditors and External Auditors. D irectors’ fees included compensation awarded
by the Stockholders Meeting as well as fees set by the Board of D irectors for D irectors vested with particular offices.
17. Financial income and expenses
Investment income
Income from investments came to 7,714 thousand euros in 2005, a decrease of 674,843 thousand euros compared with 2004.
A breakdown is as follows:
(in thousands of euros) 2005 2004
Subsidiaries
Dividends distributed by:
Fiat Ge.Va. S.p.A. –70,000
Reimbursements of capital (portion in excess of the reduction of the book value)
IHF-Internazionale Holding Fiat S.A. –606,124
Total subsidiaries –676,124
O ther companies
Dividends distributed by:
Mediobanca S.p.A. 6,777 5,647
Fin. Priv. S.r.l. 937 786
Total other companies 7,714 6,433
Total investment income 7,714 682,557
Other financial income
From securities held as fixed assets other than equity investments
This item consists of interest earned on securities pledged to fund scholarship grants.
Income from these securities totalled 2 thousand euros in 2005, in line with 2004.