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VTech Holdings Ltd Annual Report 2008 37
2 OPERATING PROFIT
The operating pro t is arrived at after charging/(crediting) the
following:
Note
2008
US$ million
2007
US$ million
Sta related costs
– salaries and wages 153.0 135.0
– pension costs: de ned
contribution schemes 16 3.3 2.1
– pension costs: de ned
bene t scheme 16 1.0 1.1
– severance payments 0.7 1.5
– equity-settled share-
based payment
expenses 0.8 1.2
Depreciation of tangible
assets 7 29.0 24.2
Amortisation of leasehold
land payments 8 0.1 0.1
Loss on disposal of tangible
assets 0.5 1.3
3 DIRECTORS’ AND INDIVIDUALS’ EMOLUMENTS
Directors’ emoluments
Fees
Salaries,
allowances
and bene ts
in kind Bonuses
Contributions
to retirement
bene t
schemes
Share-based
payments
2008
Total
US$ million US$ million US$ million US$ million US$ million US$ million
Executive directors (Note 1)
Allan WONG Chi Yun – 0.8 2.5 0.1 0.5 3.9
Edwin YING Lin Kwan – 0.3 0.6 0.1 – 1.0
PANG King Fai – 0.3 0.6 0.1 – 1.0
Independent non-executive directors
(Note 2)
Raymond CH’IEN Kuo Fung ––––––
William FUNG Kwok Lun ––––––
Michael TIEN Puk Sun ––––––
Patrick WANG Shui Chung ––––––
– 1.4 3.7 0.3 0.5 5.9
Fees
Salaries,
allowances
and bene ts
in kind Bonuses
Contributions
to retirement
bene t
schemes
Share-based
payments
2007
Total
US$ million US$ million US$ million US$ million US$ million US$ million
Executive directors (Note 1)
Allan WONG Chi Yun – 0.8 2.4 0.1 0.5 3.8
Albert LEE Wai Kuen – 0.7 6.8 0.1 0.2 7.8
Independent non-executive directors
(Note 2)
Raymond CH’IEN Kuo Fung ––––––
William FUNG Kwok Lun ––––––
Michael TIEN Puk Sun ––––––
Patrick WANG Shui Chung ––––––
– 1.5 9.2 0.2 0.7 11.6
Note 1: The directors’ fee paid to each executive director of the Company was US$20,000 (2007: US$20,000) per annum.
Note 2: The emoluments paid to each independent non-executive director of the Company was US$20,000 (2007: US$20,000) per annum, being wholly in
the form of directors’ fees.
Note
2008
US$ million
2007
US$ million
Auditors’ remuneration
– audit services 0.7 0.6
– tax services 0.5 0.5
– other services 0.2 0.2
Operating leases charges:
minimum lease payments
– land and buildings 12.2 11.6
– others 3.1 2.6
Cost of inventories 969.0 923.8
Provision for stock
obsolescence 15.2 14.4
Provision for doubtful debts 12 (2.6) 8.2
Royalties 28.9 30.4
Exchange gain (20.5) (7.2)
Forward contracts: fair value
losses on cash  ow
hedges transferred from
hedging reserve 18 9.8 4.1