Chrysler 2012 Annual Report Download - page 268

267
Fiat S.p.A. - Statutory
Financial Statements
at 31 December 2012
The average number of employees increased to 219 from 104 in 2011. On 1 December 2011, headcount increased by 120 people following the
acquisition – from Fiat-Revisione Interna S.c.p.A. and Fiat Finance S.p.A. – of units that provide internal audit and financial advisory services to Fiat S.p.A.
and Group companies. As described in Note 4, certain of the Company’s managers carried out their activities at the Group’s principal subsidiaries and
the related costs were recharged to those companies.
The costs associated with defined contribution plans consisted of amounts paid by the Company to the Italian state social security organization (INPS) and
other social security and assistance organizations for post-employment defined contribution plans (pension and healthcare) on behalf of employees in all
categories. Following the introduction of Law 296/06, leaving entitlements in Italy (trattamento di fine rapporto) accrued from 1 January 2007 and paid in
to supplementary pension funds or the fund established by INPS are recognized under “Defined contribution plans and social security contributions”, while
adjustments to the provision for leaving entitlement accrued before 1 January 2007 are recognized under “Leaving entitlement and other defined benefit
plans” (see also Note 19).
Social security contributions represent amounts paid by the Company to social security agencies in relation to short-term benefits for situations such as
illness, injury and compulsory maternity leave.
Other personnel costs related mainly to accruals for variable compensation, leaving incentives and insurance.
For 2012, compensation to executives with strategic responsibilities was €9,543 thousand (€7,162 thousand of which was charged back to the Group
companies where they carried out their activities). The total cost for the year includes provisions for leaving entitlements accrued during the year, as well as
company contributions to state and company defined contribution schemes and other social security contributions totaling €2,650 thousand.
6. Other operating costs
Following is a breakdown of other operating costs:
(€ thousand) 2012 2011
Costs for services rendered by Group companies and other related parties 27,207 32,707
Costs for services rendered by third parties 26,965 23,922
Compensation component from stock option and stock grant plans 8,689 12,014
Leases and rentals 4,017 3,051
Purchase of goods 744 702
Depreciation of property, plant and equipment 1,856 1,788
Amortization of intangible assets 148 132
Misc. operating costs 6,633 6,157
Total other operating costs 76,259 80,473
Costs for services rendered by Group companies primarily consisted of support and consulting services in the administrative area, as well as IT systems,
public relations, payroll, security, real estate and internal audit services (see Note 29).
Costs for services rendered by third parties principally included legal, administrative, financial and IT services.
For 2012, compensation for the directors and statutory auditors of Fiat S.p.A. totaled €6,071 thousand and €238 thousand, respectively. For directors, that
compensation includes fees approved by shareholders, as well as compensation set by the Board of Directors for directors with specific responsibilities.
The compensation component from stock option and stock grant plans represents the notional cost of options granted to the Chief Executive Officer (see
Note 18).
Miscellaneous operating costs consist of membership fees and contributions to trade associations, indirect taxes and duties (property tax, non-deductible
sales tax, etc.), prior year expenses and other minor charges.