Chrysler 2007 Annual Report Download - page 265

Revenues from services rendered to Group companies refer to managerial services and other services provided by Fiat S.p.A. at
the premises of various Group companies and fee income for the use of the Fiat trademark for licences granted to Fiat Group
Automobiles S.p.A. and Fiat Automoveis S.A. – FIASA. The increase is mainly due to higher fees on the use of the trademark.
Changes in construction contract work in progress relate to the portion attributable to the year of the fees due to Fiat S.p.A. for the
activities performed directly by the company (management, coordination and organisation) as part of the agreements signed with
Treno Alta Velocità - T.A.V. S.p.A. (see Note 25).
Other revenues and income from Group companies mostly relates to rental income from real estate properties and to directors’
fees paid by companies for duties performed by Fiat S.p.A. employees.
Other revenues and income from third parties refers to sundry income, the recovery of expenses and prior year income. In 2007
this item also includes the reversal of accruals made to provisions during the previous year for 18,000 thousand euros since the
contingent liability no longer existed at the balance sheet date, as reported in Note 22.
5. Personnel costs
Personnel costs can be analysed as follows:
(in thousands of euros) 2007 2006
Wages and salaries 31,560 22,589
Defined contribution plans and social security contributions 13,039 8,094
Employee severance indemnity and other defined benefit plans 2,477 1,821
Other long-term employee benefits 211 314
Compensation component of stock option plans 7,235 2,197
Restructuring costs –4,255
Other personnel costs 1,461 9,530
Total Personnel costs 55,983 48,800
The average number of employees for the year rose from 140 in 2006 (63 managers, 70 white-collar workers and 7 blue-collar
workers) to 143 in 2007 (64 managers, 69 white-collar workers and 10 blue-collar workers).
As described in Note 4, certain of the company’s managers (an average of 13 managers in 2007 and 10 in 2006) performed their
duties at the premises of Group’s principal subsidiaries with their costs then being recharged to those companies.
The increase in costs for wages and salaries and for social security contributions is mainly due to the allocation to these line items
in 2007 of variable components of compensation previously reported under the item Other personnel costs, with a counter entry to
the Provision for employee bonuses as discussed in Note 22.
Defined contribution plans consist of the amounts paid by the company to the Italian insurance bodies (INPS) and other social
security and assistance organisations for post-employment benefit defined contribution plans (pension plans and medical care) on
behalf of all categories of employees. Following the introduction of Law no. 296/06, the employee severance indemnity accruing
from January 1, 2007 and paid over to complementary pension funds or the treasury fund established by the Italian State social
security organisation INPS is treated as a cost for a defined contribution plan, while the adjustments to the employee severance
indemnity accruing before January 1, 2007 are recognized in the income statement under “Employee severance indemnity and
other defined benefit plans” (see Note 19).
Fiat S.p.A. Financial Statements at December 31, 2007 - Notes to the Financial Statements264