The Benetton Group Annual Report 1996

Payroll and related costs
The decrease in payroll and related costs, Lire 15,600 million, is mainly due to the reorganization of
production and commercial activities. This includes the closure of the Cosmetics group and the disposal
of a number of Japanese marketing companies that were no longer considered strategic.
Group personnel are listed below, by category:
1996
Average
for the year
Managerial personnel 98 109
Clerical personnel 2,120 2,134
Factory personnel 3,501 3,542
Part-time personnel 254 211
Total 5,973 5,996
The fall in the number of employees (6,018 as of December 31, 1995) is primarily due to reorganizing the
activities of Japanese companies and the resulting deconsolidation of a number of these companies.
Amortization, depreciation and writedowns
Amortization and depreciation are analyzed below, by asset category:
Amortization of intangible fixed assets
Amortization of start-up and expansion
expenses
Amortization of research, development and
advertising expenses
Amortization of industrial patents and
intellectual property rights
Amortization of licenses, trademarks and
similar rights
1995 1996
Amortization of goodwill 147 313
Amortization of consolidation differences 1,616 2,760
Amortization of costs for the purchase and
development of software
Amortization of other charges 3,236 3,125
Total 19,248 18,461
Depreciation of tangible fixed assets
7,219
273
82
1,775
4,900
6,205
251
496
1,771
3,540
1995 1996
Depreciation of real estate 12,259 12,725
Depreciation of plant and machinery 51,125 46,926
Depreciation of equipment 2,250 1,977
Depreciation of other assets 14,093 12,998
Depreciation of assets acquired under
finance leases
Total 81,741 76,451
2,014
1,825