|
5. Operating
costs
| |
2004 |
|
2003 |
|
2002 |
|
| Total Group |
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
| Staff costs: |
|
|
|
|
|
|
| Wages and salaries |
3,672 |
|
3,621 |
|
4,013 |
|
| Social security
costs |
316 |
|
275 |
|
304 |
|
| Pension costs
(note 31) |
404 |
|
322 |
|
382 |
|
| Employee share
ownershipa |
20 |
|
36 |
|
25 |
|
|
|
|
|
|
|
|
| Total staff costs |
4,412 |
|
4,254 |
|
4,724 |
|
| Own work capitalised |
(677 |
) |
(583 |
) |
(659 |
) |
| Depreciation
(note 21) |
2,921 |
|
3,011 |
|
3,680 |
|
| Amortisation and
impairment of goodwill and other intangibles (note
20) |
15 |
|
24 |
|
2,321 |
|
| Payments to telecommunications
operators |
3,963 |
|
3,940 |
|
4,299 |
|
| Other operating costs |
5,189 |
|
5,724 |
|
7,035 |
|
|
|
|
|
|
|
|
| Total operating costs |
15,823 |
|
16,370 |
|
21,400 |
|
|
|
|
|
|
|
|
| Operating costs included the
following: |
|
|
|
|
|
|
| Early leaver costsb |
202 |
|
276 |
|
252 |
|
| Research and development |
334 |
|
380 |
|
362 |
|
| Rental costs relating to operating
leases, including plant and equipment hire of £25 million (2003 £34 million,
2002 £51 million) |
370 |
|
395 |
|
283 |
|
| Foreign currency gains |
(5 |
) |
(12 |
) |
(1 |
) |
|
|
|
|
|
|
|
| Amortisation of goodwill and
exceptional items comprising: |
|
|
|
|
|
|
| Rectification
costs |
30 |
|
|
|
|
|
| Property
rationalisation provision |
|
|
198 |
|
|
|
| Goodwill
impairment in subsidiary undertakings |
|
|
|
|
1,955 |
|
| Asset impairments |
|
|
|
|
324 |
|
| Costs relating to
the Concert unwind |
|
|
|
|
172 |
|
| Costs relating to
the demerger of mmO2 |
|
|
|
|
109 |
|
| BT Retail call
centre rationalisation costs |
|
|
|
|
68 |
|
| BT Wholesale bad
debt (release) costs |
(23 |
) |
|
|
79 |
|
|
|
|
|
|
|
|
| Total exceptional items |
7 |
|
198 |
|
2,707 |
|
| Goodwill amortisation |
12 |
|
20 |
|
352 |
|
|
|
|
|
|
|
|
| Total amortisation of goodwill and
exceptional items |
19 |
|
218 |
|
3,059 |
|
|
|
|
|
|
|
|
| a
|
Amount set aside for the year for
allocation of ordinary shares in the company to eligible employees. |
| b |
Includes £61 million of leaver costs
associated with the rationalisation of the BT Retail call centres in the year
ended 31 March 2002. |
The directors believe that the nature
of the groups business is such that the analysis of operating costs required
by the Companies Act 1985 is not appropriate. As required by the Act, the
directors have therefore adapted the prescribed format so that operating costs
are disclosed in a manner appropriate to the groups principal activity.
| |
2004 |
|
2003 |
|
2002 |
|
| Continuing activities |
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
| Staff costs: |
|
|
|
|
|
|
| Wages and salaries |
3,672 |
|
3,621 |
|
3,659 |
|
| Social security
costs |
316 |
|
275 |
|
270 |
|
| Pension
costs (note 31) |
404 |
|
322 |
|
367 |
|
| Employee share
ownershipa |
20 |
|
36 |
|
25 |
|
|
|
|
|
|
|
|
| Total staff costs |
4,412 |
|
4,254 |
|
4,321 |
|
| Own work capitalised |
(677 |
) |
(583 |
) |
(623 |
) |
| Depreciation
(note 21) |
2,921 |
|
3,011 |
|
3,266 |
|
Amortisation and impairment of
goodwill and other intangibles
(note 20) |
15 |
|
24 |
|
2,079 |
|
| Payments to telecommunications
operators |
3,963 |
|
3,940 |
|
4,289 |
|
| Other operating costs |
5,189 |
|
5,724 |
|
5,522 |
|
|
|
|
|
|
|
|
| Total operating costs |
15,823 |
|
16,370 |
|
18,854 |
|
|
|
|
|
|
|
|
| Operating costs included the
following: |
|
|
|
|
|
|
| Early leaver costsb |
202 |
|
276 |
|
247 |
|
| Research and development |
334 |
|
380 |
|
362 |
|
| Rental costs relating to operating
leases, including plant and equipment hire of |
|
|
|
|
|
|
| £25 million (2003 £34
million, 2002 £51 million) |
370 |
|
395 |
|
277 |
|
| Foreign currency gains |
(5 |
) |
(12 |
) |
(1 |
) |
|
|
|
|
|
|
|
| Amortisation of goodwill and
exceptional items comprising: |
|
|
|
|
|
|
| Rectification costs |
30 |
|
|
|
|
|
| Property rationalisation
provision |
|
|
198 |
|
|
|
| Goodwill impairment in
subsidiary undertakings |
|
|
|
|
1,955 |
|
| Asset impairments |
|
|
|
|
324 |
|
| Costs relating to the Concert
unwind |
|
|
|
|
172 |
|
| Costs relating to the demerger
of mmO2 |
|
|
|
|
98 |
|
| BT Retail call centre
rationalisation costs |
|
|
|
|
68 |
|
| BT Wholesale bad debt
(release) costs |
(23 |
) |
|
|
79 |
|
|
|
|
|
|
|
|
| Total exceptional items |
7 |
|
198 |
|
2,696 |
|
| Goodwill amortisation |
12 |
|
20 |
|
121 |
|
|
|
|
|
|
|
|
| Total amortisation of goodwill and
exceptional items |
19 |
|
218 |
|
2,817 |
|
|
|
|
|
|
|
|
| a |
Amount set aside for the year for
allocation of ordinary shares in the company to eligible employees. |
| b |
Includes £61 million of leaver costs
associated with the rationalisation of the BT Retail call centres in the year
ended 31 March 2002. |
| |
|
|
|
|
|
|
| |
2004 |
|
2003 |
|
2002 |
|
| Discontinued activities |
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
| Staff costs: |
|
|
|
|
|
|
| Wages and salaries |
|
|
|
|
354 |
|
| Social security
costs |
|
|
|
|
34 |
|
| Pension costs |
|
|
|
|
15 |
|
|
|
|
|
|
|
|
| Total staff costs |
|
|
|
|
403 |
|
| Own work capitalised |
|
|
|
|
(36 |
) |
| Depreciation |
|
|
|
|
414 |
|
| Amortisation and impairment of
goodwill and other intangibles |
|
|
|
|
242 |
|
| Payments to telecommunications
operators |
|
|
|
|
10 |
|
| Other operating costs |
|
|
|
|
1,513 |
|
|
|
|
|
|
|
|
| Total operating costs |
|
|
|
|
2,546 |
|
|
|
|
|
|
|
|
| Operating costs included the
following: |
|
|
|
|
|
|
| Early leaver costs |
|
|
|
|
5 |
|
| Rental costs relating to operating
leases |
|
|
|
|
6 |
|
|
|
|
|
|
|
|
| Amortisation of goodwill and
exceptional items comprising: |
|
|
|
|
|
|
| Costs relating to the demerger of mmO2 |
|
|
|
|
11 |
|
| Goodwill amortisation |
|
|
|
|
231 |
|
|
|
|
|
|
|
|
| Total amortisation of goodwill and
exceptional items |
|
|
|
|
242 |
|
|
|
|
|
|
|
|
|
