BT 2003 Annual Report Download - page 94

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5. Operating costs continued
Discontinued activities 2003
£m
2002
£m
2001
£m
Staff costs:
Wages and salaries –354 489
Social security costs –34 40
Pension costs
a
(note 31) –15 27
Total staff costs –403 556
Own work capitalised –(36) (51)
Depreciation (note 21) –414 356
Amortisation and impairment of goodwill and other intangibles (note 20) –242 3,095
Payments to telecommunications operators –10 66
Other operating costs –1,513 2,237
Total operating costs – 2,546 6,259
Operating costs included the following:
Early leaver costs –59
Research and development ––3
Rental costs relating to operating leases, including plant and equipment hire of £nil
(2002 – £nil million, 2001 – £2 million) –610
Amortisation of goodwill and exceptional items comprising:
Goodwill impairment in subsidiary undertakings –– 2,800
Costs relating to the demerger of mmO
2
–11 –
Write off of subscriber acquisition costs
b
––7
Write off of Viag Interkom IT systems ––43
Total exceptional items –11 2,850
Goodwill amortisation –231 285
Total amortisation of goodwill and exceptional items – 242 3,135
a
No charge for the cost of providing incremental pension benefits for employees taking early retirement was made in the year ended 31 March 2001 in
view of the combined surplus in the BT Pension Scheme and the amount provided for pension costs within provisions for liabilities and charges.
b
The accounting of all the mmO
2
operating units was aligned; this resulted in a write off of previously capitalised costs in certain non-UK operations.
Notes to the financial statements
BT Annual Report and Form 20-F 2003 93