Vtech 2002 Annual Report Download - page 45

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Annual Report 2002 43
Notes to the Financial Statements
1. SEGMENT INFORMATION (continued)
Secondary reporting format – geographical segments
Although the Group’s two business segments are managed on a worldwide basis, they principally operate in the following geographical
areas:
USA and Mexico – the operations are principally the distribution of telecommunication and electronic consumer products.
Europe – the operations are principally the distribution of electronic consumer products.
Asia Pacific –the Group is headquartered in the Hong Kong Special Administrative Region (“HKSAR”) and the Group’s principal
manufacturing operations are located in mainland China.
Turnover represents the amounts received and receivable for sale of goods of US$957.7 million (2001:US$1,333.9 million) and rendering of
services of US$2.1 million (2001: US$1.0 million) to third parties.
Turnover Operating profit/(loss) Capital expenditure Total assets
2002 2001 2002 2001 2002 2001 2002 2001
US$ million US$ million US$ million US$ million US$ million US$ million US$ million US$ million
USA and Mexico 747.0 1,047.2 15.7 (156.9) 2.2 8.1 185.6 332.6
Europe 148.5 181.6 17.1 (10.0) 0.6 2.3 49.0 62.9
Asia Pacific 37.9 51.0 (7.2) (36.1) 10.1 20.3 174.4 227.3
Others 26.4 55.1 (2.6) 2.9 0.4 —7.3 18.0
Total 959.8 1,334.9 23.0 (200.1) 13.3 30.7 416.3 640.8
2. OPERATING PROFIT/(LOSS)
The operating profit/(loss) is arrived at after charging/(crediting) the following:
2002 2001
Note US$ million US$ million
Staff related costs:
— salaries and wages 93.4 139.3
— severance payments 1.6 1.1
— pension costs: defined contribution plans 18 1.3 1.5
— pension costs: defined benefit plan 18 1.3 1.4
Depreciation charges
— owned assets 33.6 44.5
— leased assets 0.2 —
Amortization of leasehold land payments 10 0.1 0.1
Restructuring and impairment charges 314.0 110.4
Provision for doubtful debts 9.5 3.6
Royalties 9.1 15.5
Operating leases on land and buildings 6.4 12.6
Provision for stock obsolescence 2.8 30.5
Loss on disposal of tangible assets 2.0 1.2
Repair and maintenance expenditure 1.1 3.0
Auditors’ remuneration 0.8 0.8
Impairment of investment properties 0.5 —
Exchange loss 0.2 0.7
Recognition of negative goodwill —(31.9)
Amortization of goodwill —0.3
Forward contracts: fair value gain on cash flow hedge transferred
from hedging reserve 21 (0.3) —