2006 Annual Report - Fiat SpA

4. Other operating income
Other operating income can be analysed as follows:
(in thousands of euros) 2006 2005
Revenues from services rendered to Group companies 29,513 20,170
Changes in construction contract work in progress 44,376 40,977
Other revenues and income from Group companies 3,687 4,086
Other revenues and income from third parties 1,662 7,621
Total Other operating income 79,238 72,854
Revenues from services rendered to Group companies refer to managerial services provided by Fiat S.p.A. personnel at the
premises of various Group companies and fee income for the use of the Fiat trademark for licences granted to Fiat Auto S.p.A.
and Fiat Automoveis S.A. – FIASA.
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 27).
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 the recovery of expenses, prior year income and sundry income.
5. Personnel costs
Personnel costs can be analysed as follows:
(in thousands of euros) 2006 2005
Wages and salaries 22,589 22,993
Defined contribution plans and social security contributions 8,094 7,315
Employee severance indemnity and other defined benefit plans 1,821 2,847
Other long-term employee benefits 314 44
Compensation component of stock option plans 11,297 10,041
Restructuring costs 4,255 10,940
Other personnel costs 9,530 5,847
Total Personnel costs 57,900 60,027
The average number of employees for the year rose from 133 in 2005 (63 managers, 65 white-collar workers and 5 blue-collar
workers) to 140 in 2006 (63 managers, 70 white-collar workers and 7 blue-collar workers).
254 Fiat S.p.A. Financial Statements at December 31, 2006 - Notes to the Financial Statements
As described in Note 4, certain of the company’s managers performed their duties at the premises of Group’s principal subsidiaries
with their costs then being recharged to those companies.
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 employee. Social security contributions consist of the amount paid by the company to the Italian
insurance and assistance bodies (INPS and INAIL) for short-term benefits on behalf of employees such as sickness benefits,
industrial injury benefits and compulsory maternity leave.
The compensation component of stock option plans refers to stock option plans with underlying Fiat S.p.A. shares, as described
in detail in Note 20.
Restructuring costs consist of employee leaving incentives paid.
Other personnel costs consist mainly of accruals for employee annual target bonuses, leaving incentives and insurance.
The aggregate expense incurred in 2006 and accrued at year end for the compensation of key management personnel of the
Group amounts to approximately 19,774 thousand euros. This amount is inclusive of the following:
■ the provision charged by the company in respect of mandatory severance indemnity, amounting to 945 thousand euros
(including the amount recognised in financial expenses);
■ the amount contributed by the company to a defined contribution pension fund amounting to 536 thousand euros in 2006;
■ the amount contributed by the company to a special defined benefit plan for certain senior executives amounting to 711
thousand euros in 2006.
6. Other operating costs
Other operating costs can be analysed as follows:
(in thousands of euros) 2006 2005
Costs for services rendered by Group companies 41,345 32,669
Costs for services rendered by third parties 56,352 53,483
Costs for the use of third party assets 1,561 988
Purchase of goods 488 407
Depreciation of property, plant and equipment 2,761 2,816
Amortisation of intangible assets 121 95
Sundry operating costs 38,378 30,902
Total Other operating costs 141,006 121,360
Fiat S.p.A. Financial Statements at December 31, 2006 - Notes to the Financial Statements 255