Chrysler 2008 Annual Report Download - page 275

6. Other operating costs
A breakdown of Other operating costs is provided in the following table:
(€ thousands) 2008 2007
Costs for services rendered by Group companies 32,017 35,272
Costs for services rendered by third parties 61,158 77,745
Compensation component from stock option plans 7, 6 7 6 36,753
Leases and rentals 3,245 2,812
Purchase of goods 960 846
Depreciation of property, plant and equipment 1,752 2,338
Amortisation of intangible assets 110 169
Misc. operating costs 7,515 7, 1 6 8
Total Other operating costs 114,433 163,103
Costs for services rendered by Group companies consisted of assistance and consultancy of an administrative and financial nature,
public relations, payroll services, security services, sponsorship, advertising and promotion services and internal auditing services.
Costs for services rendered by third parties included, 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 €16,366 thousand, sponsorship and
advertising services for €9,670 thousand and IT systems services for €7,229 thousand. The decrease with respect to 31 December
2007 was mainly due to lower costs for professional advisory fees and information systems services as well as lower technical
advisory fees due to a decrease in activity related to contracts with T.A.V. S.p.A. Costs for services also include fees paid to the
directors and statutory auditors of Fiat S.p.A. amounting to €5,945 thousand and €152 thousand respectively. The amount of
directors’ fees includes fees resolved by shareholders as well as compensation established by the Board of Directors for directors
vested with specific responsibilities.
The compensation component from 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 19).
Miscellaneous 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.
7. Gains from non-recurring transactions
This item totalled €879,483 thousand in 2008. No gains were reported for 2007.
This figures represents the net gain in December from the transfer of the FIAT brand to the indirect subsidiary Fiat Group
Marketing & Corporate Communication S.p.A. (formerly Fiat Information & Communication Services S.c.p.A.), which is responsible
for brand management. Consideration for the transfer of €880 million was based on a valuation conducted by a leading
independent advisor, using internationally accepted valuation methodologies.
Fiat S.p.A. Statutory Financial Statements at 31 December 2008274