Notes to the Consolidated Financial Statements continuedfor the year ended 31 December 2007
3 Operating profit
|Operating profit is stated after charging/(crediting):|
|Hire of vehicles under repurchase contracts||222.8||199.1|
|Unwinding of discount on vehicle repurchase contracts||(37.0)||(27.7)|
|Net operating lease charge on manufacturer repurchase contracts||185.8||171.4|
|Hire of plant and equipment||1.3||1.1|
|Hire of motor vehicles||79.0||67.3|
|Net charge on hire of plant, equipment and motor vehicles||266.1||239.8|
|Depreciation on vehicles – owned (see Note 12)||111.4||118.5|
|Depreciation on vehicles – under finance lease (see Note 12)||20.9||45.1|
|Depreciation on other property, plant and equipment (see Note 13)||20.5||19.8|
|Depreciation on property, plant and equipment||152.8||183.4|
|Adjustments arising on differences between sales proceeds and depreciated amounts – fleet||(14.1)||(23.1)|
|Adjustments arising on differences between sales proceeds and depreciated amounts – non-fleet||(4.6)||(0.7)|
|Adjustments arising on differences between sales proceeds and depreciated amounts||(18.7)||(23.8)|
|Amortisation of other intangible assets||4.9||5.2|
|Non-exceptional goodwill impairment charge (see Note 10)||–||0.3|
|Contingent operating lease rentals3||53.9||51.8|
|Other operating lease rentals||52.8||51.5|
|Net amounts excluded from underlying2:|
|Re-measurement gains on non-debt related derivative financial instruments4||(3.5)||(2.2)|
|Re-measurement losses on non-debt related derivative financial instruments4||2.8||0.6|
|Economic hedging adjustment on foreign exchange||(1.0)||0.4|
|Total net exceptional items (see Note 5)||6.9||
|Total net exceptional items, certain re-measurement items and economic hedge adjustments||5.2||27.7|
Included within the analysis above are amounts in respect of the discontinued operation: Net operating lease charge on manufacturer repurchase contracts €9.0 million (2006: €15.2 million), depreciation on property, plant and equipment €9.7 million (2006: €16.3 million), adjustments arising on differences between sales proceeds and depreciated amounts €nil (2006: €1.1 million), amortisation of other intangible assets €nil (2006: €0.1 million), non-exceptional goodwill impairment charge €nil (2006: €nil), contingent operating lease rentals €0.2 million (2006: €0.4 million) and other operating lease rentals €0.9 million (2006: €1.5 million). There are no amounts excluded from underlying in 2006 and 2007.
- 1 Restated following the prior year adjustment regarding Avis Portugal (see Note 33).
- 2 see Basis of Preparation.
- 3 Contingent operating lease rentals primarily arise with respect to airport rental desk concessions, and are ordinarily based on the level of revenue generated by the individual concession.
- 4 Net re-measurement gains on non-debt related derivative financial instruments of €0.7 million (2006: gains of €1.6 million), comprises realised losses of €1.8 million (2006: gains of €1.0 million)
and unrealised gains of €2.5 million (2006: gains of €0.6 million).
|Auditors’ remuneration is analysed as follows:||€m||€m|
|Fees payable to the Company’s auditor for the audit of the Company’s annual accounts||0.7||0.6|
|Fees payable to the Company’s auditor and its associates for other services:|
|– the audit of the Company’s subsidiaries pursuant to legislation||0.9||0.9|
|–other services pursuant to legislation||0.1||0.1|
|– taxation services||0.8||0.5|
|– corporate finance transactions||0.1||0.5|
|Auditors’ remuneration – continuing||3.1||2.8|
|Auditors’ remuneration – discontinued operation||0.1||0.1|
|Auditors’ remuneration including discontinued operation||3.2||2.9|
- 1 Restated following the reclassification of the discontinued operation - Greece (see Note 39).