Chrysler 2013 Annual Report Download - page 116

115
Report on
Operations
Personnel and operating costs, net of other income totaled €28 million, compared with €35 million for 2012.
Personnel and operating costs totaled €111 million, compared with €112 million in 2012. A reduction in costs for services and lower
notional charges for stock options offset an increase in personnel costs attributable to a higher average headcount (236 employees,
compared with 219 in 2012). That increase was primarily due to the acquisition of a business unit from the subsidiary Fiat Services S.p.A. in
early 2013.
Other income of €83 million (€77 million in 2012) mainly related to services rendered, including by senior management personnel, to
the principal Group companies. The €6 million increase over the prior year was mainly due to the increase in services rendered to Group
companies, including services provided by the newly-acquired business unit, as well as an increase in reimbursements for the cost of
seconded personnel.
Net financial expense, of €210 million, included €241 million in financial charges, relating primarily to interest expense on debt, partially offset
by a €31 million gain at expiration on the stock-option related equity swaps on Fiat and CNH Industrial shares. For 2012, net financial expense
of €216 million included a €250 million in financial charges offset by the €34 million gain in the mark-to-market of the above equity swaps.
The €6 million year-over-year decrease was attributable to a more favorable mix of liquidity/debt/interest rates (€9 million), net of the negative
difference in the gain on the equity swaps (€3 million).
For income taxes, the Company recognized a €14 million credit for the year (€31 million credit in 2012), which primarily reflected compensation
received for losses contributed by Fiat S.p.A. to the domestic tax consolidation for the Group’s Italian companies.