BT 2005 Annual Report Download - page 85

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2. Segmental analysis continued
2005 2004
Net
operating
assets
£m
Interest in
associates
and joint
ventures
£m
Total
£m
Net
operating
assets
£m
Interest in
associates
and joint
ventures
£m
Total
£m
UK 11,599 3 11,602 11,444 7 11,451
Europe, excluding the UK 1,600 – 1,600 1,742 24 1,766
Americas 532 1 533 199 – 199
Asia and Pacific 15 104 119 19 90 109
Total 13,746 108 13,854 13,404 121 13,525
Net operating assets (liabilities) comprise tangible and intangible fixed assets, stocks, debtors less creditors (excluding
loans and other borrowings), and provisions for liabilities and charges (excluding deferred tax).
3. Turnover
Group’s share of associates’ and joint ventures’ turnover comprised:
2005
£m
2004
£m
2003
£m
Joint ventures 355 352 425
Associates 53 43 1,030
Total 408 395 1,455
4. Operating costs
2005
£m
2004
£m
a
2003
£m
a
Staff costs:
Wages and salaries 3,656 3,675 3,617
Social security costs 319 316 275
Pension costs (note 28) 465 404 322
Employee share ownership
b
11 20 36
Total staff costs 4,451 4,415 4,250
Own work capitalised (722) (677) (583)
Depreciation (note 18) 2,834 2,921 3,011
Amortisation and impairment of goodwill and other intangibles (note 17) 22 15 24
Payments to telecommunications operators 3,725 3,963 3,940
Other operating costs 5,695 5,189 5,724
Total operating costs 16,005 15,826 16,366
Operating costs included the following:
Early leaver costs 166 202 276
Research and development 257 334 380
Rental costs relating to operating leases, including plant and equipment hire of
£14 million (2004 – £25 million, 2003 – £34 million) 326 370 395
Foreign currency losses (gains) 3(5) (12)
Amortisation of goodwill and exceptional items comprising:
Property rationalisation provision 59 – 198
Rectification costs –30 –
BT Wholesale bad debt release –(23) –
Total exceptional items 59 7 198
Goodwill amortisation 16 12 20
Total amortisation of goodwill and exceptional items 75 19 218
a
Restated – see note 1
b
Amount set aside for the year for allocation of ordinary shares in the company to eligible employees
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.
84 BT Group plc Annual Report and Form 20-F 2005 Notes to the financial statements