Thorn-EMI 1995 Annual Report

Notes to the accountr
2. Analysis of profit and loss a(count
Cortinuirs Di.continuGd
Total Continuinr Discontinu€d
Cost of sales
Cost ofsales are analysed as:
- normal
- exceptional
Net operating expenses:
Distribution costs
Administration expenses
Other operating (income) expenses
Utilisation of provisions by
discontinued operations
Net operating expenses are analysed as;
- normal 594.5
- exceptional 30,0
Share of profrts of
associated undertakings
Net operating expenses for continuing operations include the following amounts relating to
acquisitions: cost ofsales 1248.2m, distribution costs fl0.0m, administration expenses f21.2m
and other operating expenses of f2.7m.
Operating profit is stated after charging:
Depreciation of tangible flxed assets
Operating lease rentals:
Property
Plant, equipment and vehicles
Research and development expenditure
Other operating income principally comprises realised exchange gains on trading transactions,
property income and net patent income less goodwill written offon closure ofRumbelows.
4. Fees to audltots
EMI Music is developing and has implemented several new management information systems
in the year and other fees paid to Ernst &Young include f6.5m for information technology
consultancy services. Other fees also include fl.5m for tax consultancy and f1.1m for due
diligence and other services in relation to acquisitions and disposals.