TomTom 2015 Annual Report Download - page 82

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CONSOLIDATED FINANCIAL STATEMENTS
TOMTOM / ANNUAL REPORT AND ACCOUNTS 2015 / 81
DEFERRED REVENUE BALANCE BY SEGMENT
Deferred revenue amounted to €187 million at the end of the year (2014: €146 million). The year on year increase mainly related to the
increase of deferred revenue from the lifetime maps and traffic services bundled in our PND ranges as well as an increased deferred
revenue position related to Licensing and Automotive contracts with upfront payments.
(€ in thousands) 2015 2014
Consumer 130,385 104,807
Automotive 22,614 12,575
Licensing 31,180 25,646
Telematics 2,694 2,652
TOTAL 186,873 145,680
5. COST OF SALES
The group's cost of sales consists of material costs for goods sold to customers, royalty and license expenses and fulfillment costs
incurred on inventory sold during the year as well as amortisation and impairment of certain technologies specifically
developed/used for particular customers.
6. PERSONNEL EXPENSES
Included in the operating expenses are, amongst others, the following items:
(€ in thousands) 2015 2014
Salaries 178,776 155,771
Social security costs 34,257 26,478
Pensions 9,415 7,758
Share-based compensation120,511 8,742
Other228,661 49,596
PERSONNEL EXPENSES 271,620 248,345
1. Share-based compensation increased mainly due to an increase of the share price over 2015 (31 Dec 2015: €11.6, 31 Dec 2014: €5.5)
2. Other personnel expenses include costs of secondary benefits such as health insurance, vehicle lease costs, sales commissions and bonuses offset by capitalised personnel
expenses in an amount of €60.0 million (2014: €47.9 million).
The average number of employees (in FTE equivalents) in 2015 was 4,301 (2014: 3,888) spread across the following functional areas:
2015 2014
Research and development 2,913 2,602
Marketing 114 97
Sales, general and administrative 1,274 1,189
TOTAL 4,301 3,888
At 31 December 2015, the group had 4,666 (2014: 4,172) employees. During 2015, 3,169 of employees worked outside the Netherlands
(2014: 2,797). The increase in our average employees is mainly driven by increased headcount in our R&D departments as well as in
Telematics sales force.
PENSIONS
The group's pension plans primarily comprise of defined contribution plans, limiting the employer's legal obligation to the amount it
agrees to contribute during the period of employment and a defined benefit plan for a German subsidiary. This defined benefit plan is
unfunded and has no plan asset. Management is of the opinion that the plan has limited risks to the group as it was frozen in 2007. In
the extraordinary event that the group is unable to meet its obligations, the participants will receive (partial) payments from a state-
owned pension protection fund.
The total pension costs of €9.4 million (2014: €7.8 million) consist of the costs of the defined contribution plans of €9.2 million (2014:
€7.5 million) and of the German-defined benefit plan of €0.2 million (2014: €0.3 million).