BT 2002 Annual Report Download - page 93

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5. Operating costs continued
Discontinued activities 2002
£m
2001
£m
2000
£m
Staff costs:
Wages and salaries 354 489 282
Social security costs 34 40 26
Pension costs (note 31) 15 27 16
Total staff costs 403 556 324
Own work capitalised (36) (51) (23)
Depreciation (note 21) 414 356 295
Amortisation and impairment of goodwill and other intangibles (note 20) 242 3,095 79
Payments to telecommunications operators 10 66 76
Other operating costs
a
1,513 2,237 1,623
Total operating costs 2,546 6,259 2,374
Operating costs included the following:
Redundancy charges and early leaver payments 59 ±
Research and development ±3 7
Rental costs relating to operating leases, including plant and equipment hire £nil
(2001 ± £2 million, 2000 ± £nil) 610 34
Foreign currency gains ±± ±
Amortisation of goodwill and exceptional items comprising:
Goodwill impairment in subsidiary undertakings ±2,800 ±
Costs relating to the demerger of mmO2 11 ± ±
Write off of subscriber acquisition costs
b
±7 ±
Write off of Viag Interkom IT systems ±43 ±
BT Cellnet analogue network closure costs ±± 47
Total exceptional items 11 2,850 47
Goodwill amortisation 231 285 79
Total amortisation of goodwill and exceptional items 242 3,135 126
a
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.
b
The accounting of all the mmO2 operating units was aligned; this resulted in a write off of previously capitalised costs in certain non-UK operations.
Notes to the financial statements
92 BT Group Annual Report and Form 20-F 2002