Chrysler 2007 Annual Report Download - page 242

Personnel and operating costs net of other revenues totalled 98 million euros, compared with 120 million euros in 2006.
Specifically:
■Personnel and operating costs, totalling 218 million euros, comprised 56 million euros in personnel costs (49 million euros in
2006), and 162 million euros in other operating costs (150 million euros in 2006), which included the costs for services,
amortisation and depreciation and other operating costs. The increase of 19 million euros over the figure for the previous year was
attributable for 33 million euros to the recognition of higher notional costs for stock options linked to the most recently approved
plan, net of non-recurring costs recorded in 2006 and not in 2007.
There was an average headcount in 2007 of 143 employees compared with an average of 140 employees in 2006.
■Other revenues, totalling 120 million euros (79 million euros in 2006), principally referred to royalties for the use of the Fiat
trademark, calculated as a percentage of the revenues generated by the Group companies that use it, the services provided, also
through executives, at the premises of the principal companies of the Group, as well as to the change in contract work in progress
(agreements between Fiat S.p.A. and Treno Alta Velocità – T.A.V. S.p.A.), which is measured by applying the percentage of
completion to the total contractual value of the work. The increase of 41 million euros from 2006 was mainly attributable to higher
charges for the use of the trademark.
In 2007, there were net financial expenses of 149 million euros (24 million euros in 2006), arising from the interest charges on the
Company’s debt, which were partially offset by the gains resulting from equity swaps on Fiat S.p.A. shares entered into to hedge
stock option plans.
The increase of 125 million euros in net expenses was attributable mostly to the interest income on the liquid funds held by the
Company in the first half of 2006 which was subsequently utilised to recapitalise subsidiaries.
The income tax revenue of 128 million euros (26 million euros in 2006) was essentially the remuneration for the tax loss related to
the 2007 fiscal year brought into the Fiat Group Italian tax consolidation by Fiat S.p.A. to offset taxable income reported by other
Group’s Italian companies.
Financial Review of Fiat S.p.A. 241