Chrysler 2007 Annual Report Download - page 267

6. Other operating costs
Other operating costs can be analysed as follows:
(in thousands of euros) 2007 2006
Costs for services rendered by Group companies 35,272 41,345
Costs for services rendered by third parties 77,745 56,352
Compensation component of stock option plans 36,753 9,100
Leases and rentals 2,812 1,561
Purchase of goods 846 488
Depreciation of property, plant and equipment 2,338 2,761
Amortisation of intangible assets 169 121
Sundry operating costs 7,168 38,378
Total Other operating costs 163,103 150,106
Costs for services rendered by Group companies consist of assistance and consultancy of an administrative and financial nature
(Fiat Services S.p.A. 7,805 thousand euros, Fiat Finance S.p.A. 2,170 thousand euros, KeyG Consulting S.p.A. 501 thousand euros),
public relations (Fiat I.&C.S. S.c.p.A. 2,163 thousand euros), payroll services (Fiat Sepin S.c.p.A. 2,726 thousand euros), information
systems services (eSPIN S.p.A. 117 thousand euros), security services (Orione S.c.p.A. 3,279 thousand euros, Sirio S.c.p.A. 1,205
thousand euros), sponsorship, advertising and promotion services (Ferrari S.p.A. 2,066 thousand euros, Fiat France S.A. 1,377
thousand euros) and internal auditing services (Fiat-Revisione Interna S.c.r.l. 10,898 thousand euros).
Costs for services rendered by third parties include, among others, professional services and studies in the technical field (the high
speed train T.A.V.) and the legal, administrative and financial fields for a total of 21,806 thousand euros, sponsorship and
advertising services for 8,036 thousand euros and information systems services for 9,409 thousand euros. The increase with respect
to December 31, 2006 is mainly due to higher costs for the support of the brand and for information systems services in relation to
the significant projects underway. Costs for services also include the fees paid to the directors and statutory auditors of Fiat S.p.A.
amounting to 10,383 thousand euros and 147 thousand euros respectively. The amount of directors’ fees includes fees resolved by
stockholders as well as compensation established by the Board of Directors for directors having particular duties.
The compensation component of stock option plans is connected with the options granted to the Chief Executive Officer and is
represented by the notional cost, with the offsetting credit recognised directly in equity reserve (see Note 18). The balances for
2006 have been reclassified accordingly in presenting the comparative figures, reporting such notional cost in the same group
where compensations are classified.
Sundry operating costs consist of subscriptions to trade associations, indirect taxes and duties (local taxes on real estate
properties, un-deductible VAT, etc.), prior year expenses and other more minor costs. In 2006 sundry operating costs also included
the costs reimbursed to Group companies for their initiatives in supporting the Group’s brand and image and accruals for
provisions.
Fiat S.p.A. Financial Statements at December 31, 2007 - Notes to the Financial Statements266