BT 2002 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 of the 2002 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.

Page out of 160

  • 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
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

5. Operating costs continued
Continuing activities 2002
£m
2001
£m
2000
£m
Staff costs:
Wages and salaries 3,680 3,465 3,472
Social security costs 270 273 290
Pension costs (note 31) 346 299 151
Employee share ownership
a
25 32 59
Total staff costs 4,321 4,069 3,972
Own work capitalised (623) (642) (475)
Depreciation (note 21) 3,266 2,689 2,457
Amortisation and impairment of goodwill and other intangibles (note 20) 2,079 291 10
Payments to telecommunications operators 4,289 3,736 3,010
Other operating costs
b
5,522 4,357 4,011
Total operating costs 18,854 14,500 12,985
Operating costs included the following:
Redundancy charges and early leaver payments 247 109 59
Research and development 362 361 338
Rental costs relating to operating leases, including plant and equipment hire £51 million
(2001 ± £13 million, 2000 ± £12 million) 277 156 155
Foreign currency gains (1) (50) (26)
Amortisation of goodwill and exceptional items comprising:
Goodwill impairment in subsidiary undertakings 1,955 200 ±
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 costs 79 ± ±
Credit for rates refunds, relating to prior years ±(193) ±
Costs relating to the disengagement from MCI ±± 64
Total exceptional items 2,696 7 64
Goodwill amortisation 121 88 10
Total amortisation of goodwill and exceptional items 2,817 95 74
a
Amount set aside for the year for allocation of ordinary shares in the company to eligible employees.
b
No charge for the cost of providing incremental pension bene®ts for employees taking early retirement was made in the years ended 31 March 2001 and 2000
in view of the combined surplus in the BT Pension Scheme disclosed by the actuarial valuations as at 31 December 1999 and 1996, and the amount provided
for pension costs within provisions for liabilities and charges.
Notes to the financial statements
BT Group Annual Report and Form 20-F 2002 91