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VTech Holdings Ltd Annual Report 2010 47
2010 2009
Note US$ million US$ million
Auditors' remuneration
– audit services 0.8 0.8
– audit related services 0.1 0.1
– tax and other services 0.4 0.4
Operating leases charges:
minimum lease payments
– land and buildings 11.2 12.0
– others 2.0 2.6
Impairment loss for
doubtful debts 12 3.6 1.7
Royalty expenses 18.3 22.5
Provision for defective
goods returns 16 34.1 35.0
Net foreign exchange loss – 28.2
Net gain on forward foreign
exchange contracts – (0.6)
Net realised and
unrealised gains on
financial assets at fair
value through profit or loss – (0.2)
1 Segment Information (Continued)
Year ended 31 March 2010
North America Europe Asia Pacific Others Total
US$ million US$ million US$ million US$ million US$ million
Reportable segment revenue 872.6 528.9 81.5 49.3 1,532.3
Reportable segment profit 116.0 89.7 9.0 9.4 224.1
Depreciation and amortisation 1.0 1.8 33.9 – 36.7
Impairment loss on construction in progress – – 6.9 – 6.9
Reportable segment assets 121.1 75.5 642.3 0.7 839.6
Reportable segment liabilities (47.5) (19.9) (247.7) (0.2) (315.3)
Year ended 31 March 2009
North America Europe Asia Pacific Others Total
US$ million US$ million US$ million US$ million US$ million
Reportable segment revenue 772.8 570.5 55.2 49.7 1,448.2
Reportable segment profit 59.6 78.0 10.2 6.5 154.3
Depreciation and amortisation 1.6 0.8 29.4 – 31.8
Reportable segment assets 124.9 65.1 521.2 2.8 714.0
Reportable segment liabilities (50.1) (23.6) (200.7) (0.3) (274.7)
(c) Reconciliations of reportable segment assets and liabilities
2010 2009
Note US$ million US$ million
Assets
Reportable segment assets 839.6 714.0
Investments 10 0.2 0.2
Taxation recoverable 0.7 3.1
Deferred tax assets 9 5.6 5.2
Consolidated total assets 846.1 722.5
Liabilities
Reportable segment liabilities (315.3) (274.7)
Taxation payable (9.6) (3.3)
Deferred tax liabilities 9 (3.7) (4.3)
Consolidated total liabilities (328.6) (282.3)
For the year ended 31 March 2010, approximately 17% (2009: 17%) of the Group’s revenue is derived from a single external customer.
This revenue is attributable to the North America segment.
2 Operating Profit
Operating profit is arrived at after charging/(crediting) the following:
2010 2009
Note US$ million US$ million
Staff related costs
– salaries and wages 164.5 161.9
– pension costs:
defined contribution
schemes 17 5.4 4.9
– pension costs: defined
benefit scheme 17 2.1 1.3
– severance payments 0.9 1.6
– equity-settled
share-based
payment expenses 0.8 1.8
173.7 171.5
Cost of inventories 972.9 920.7
Depreciation of
tangible assets 7 36.6 31.7
Amortisation of leasehold
land payments 8 0.1 0.1
Loss on disposal of
tangible assets – 0.4
Impairment loss on
construction in progress 7 6.9 –