National Grid 2010 Annual Report Download - page 47

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National Grid Gas plc Annual Report and Accounts 2009/10 45
3. Operating costs
Before exceptional items Exceptional items Total
2010 2009 2010 2009 2010 2009
£m £m £m £m £m £m
Depreciation of property, plant and equipment 413 400 --413 400
A
mortisation of intangible assets 19 15 --19 15
Payroll costs 255 266 16 12 271 278
Other operating charges:
Purchases of gas 156 172 --156 172
Rates 247 236 --247 236
Other 374 421 171 312 545 733
1,464 1,510 187 324 1,651 1,834
Operating costs include:
Consumption of inventories 34
Research expenditure 10 4
Operating lease rentals:
Plant and machinery 65
Other 10 11
(a) Payroll costs
2010 2009
£m £m
Wages and salaries 267 258
Social security costs 24 23
Other pension costs 45 54
Share-based payments 86
Severance costs (excluding pension costs) 13 5
357 346
Less: payroll costs capitalised (86) (68)
271 278
(b) Number of employees, including Director
s
31 March Average Average
2010 2010 2009
Number Number Number
U
K
Continuing operations 6,302 6,311 6,650
(c) Key management compensatio
n
2010 2009
£m £m
Salaries and short-term employee benefits 33
Post-employment benefits 21
Share-based payments 21
75
The vast majority of employees are either directly or indirectly employed in the transmission and distribution of gas.
Key management comprises the Board of Directors of the Company together with those Executive Directors of National Grid plc who have
managerial responsibility for any of the businesses of NGG and who are not also Directors of the Company.