BT 2000 Annual Report Download - page 68
Download and view the complete annual report
Please find page 68 of the 2000 BT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58 -
59 -
60 -
61 -
62 -
63 -
64 -
65 -
66 -
67 -
68 -
69 -
70 -
71 -
72 -
73 -
74 -
75 -
76 -
77 -
78 -
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
 |
 |
Annual report and Form 20-F 67
3. Other operating income
2000
£m
1999
£m
1998
£m
Seconded staff and administration and other services provided to Concert 79 ± ±
Merger agreement break up fee (a) ±± 273
Merger expenses written off ±± (35)
Other 163 168 134
Total other operating income 242 168 372
(a) The company received US$465 million on 12 November 1997 from WorldCom, Inc as a break up fee and partial reimbursement of expenses (the MCI
merger break up fee) following the termination of the BT/MCI merger agreement on 9 November 1997 (note 18(i)). This income and the associated
merger expenses were exceptional items in the year ended 31 March 1998.
4. Operating costs
2000
£m
1999
£m
1998
£m
Staff costs:
Wages and salaries 3,754 3,366 3,290
Social security costs 316 275 266
Pension costs (note 27) 167 176 177
Employee share ownership scheme (a) 59 64 64
Employee share option scheme compensation for special dividend (b) ±± 120
Total staff costs 4,296 3,881 3,917
Own work capitalised (498) (428) (424)
Depreciation (note 17) 2,752 2,581 2,395
Goodwill amortisation (note 16) 89 ± ±
Payments to telecommunications operators 3,086 2,120 1,600
Other operating costs (c) 5,634 5,151 4,867
Total operating costs 15,359 13,305 12,355
Operating costs included the following:
Research and development 345 268 307
Rental costs relating to operating leases, including plant and equipment hire £12 million
(1999 ± £9 million, 1998 ± £19 million) 189 185 192
Foreign currency gains (26) (88) (9)
Year 2000 computer issue costs 67 138 76
Exceptional costs relating to the proposed closure of the BT Cellnet analogue network:
Depreciation 37 ± ±
Other operating costs 10 ± ±
47 ± ±
Exceptional costs relating to the disengagement from MCI:
Staff costs 13 10 ±
Depreciation 11 13 ±
Payments to telecommunication operators 18 14 ±
Other operating costs 22 32 ±
64 69 ±
(a) Amount set aside for the year for allocation of ordinary shares in the company to eligible employees.
(b) Compensation for employees holding share options on 15 August 1997 in respect of the September 1997 special dividend.
(c) Includes redundancy charges of £59 million (1999 ± £124 million, 1998 ± £106 million). No charge for the cost of providing incremental pension
bene®ts for employees taking early retirement was made in the years ended 31 March 2000, 1999 and 1998 in view of the combined surplus in the
BT Pension Scheme disclosed by the actuarial valuation as at 31 December 1996 and the amount provided for pension costs within provisions for
liabilities and charges.
The directors believe that the nature of the group's 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 group's principal activity.