Chrysler 2007 Annual Report Download - page 119

118 Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
Composition and principal changes
Income Statement
1. Net revenues
Net revenues can be analysed as follows:
(in millions of euros) 2007 2006
Sales of goods 53,742 46,105
Rendering of services 2,512 2,827
Contract revenues 669 917
Rents on operating leases 120 519
Rents on assets sold with a buy-back commitment 314 311
Interest income from customers and other financial income of financial services companies 979 1,077
Other 193 76
Total Net revenues 58,529 51,832
2. Cost of sales
Cost of sales comprises the following:
(in millions of euros) 2007 2006
Cost of sales attributable to the industrial business 48,168 42,991
Interest cost and other financial charges from financial services companies 756 897
Total Cost of sales 48,924 43,888
3. Selling, general and administrative costs
Selling costs amount to 2,795 million euros in 2007 (2,627 million euros in 2006) and comprise mainly marketing, advertising and
sales personnel costs.
General and administrative costs amount to 2,129 million euros in 2007 (2,070 million euros in 2006) and comprise mainly
expenses for administration which are not attributable to sales, production and research and development functions.
4. Research and development costs
In 2007, Research and development costs of 1,536 million euros (1,401 million euros in 2006) comprise all the research and
development costs not recognised as assets in the year, amounting to 809 million euros (778 million euros in 2006), the write-down
of costs previously capitalized of 42 million euros (7 million euros in 2006) and the amortisation of capitalised development costs
of 685 million euros (616 million euros in 2006). During 2007, the Group incurred new expenditure for capitalised development
costs of 932 million euros (813 million euros in 2006).