BT 2007 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 of the 2007 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 178

  • 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
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178

3. OPERATING COSTS
2007 2006 2005
£m £m £m
Costs by nature
Staff costs:
Wages and salaries 4,099 3,910 3,645
Social security costs 388 377 319
Pension costs 643 603 540
Share based payments 93 76 50
Total staff costs 5,223 4,966 4,554
Own work capitalised (718) (674) (620)
Net staff costs 4,505 4,292 3,934
Depreciation of property, plant and equipment:
Owned assets 2,420 2,500 2,536
Under finance leases 116 134 158
Amortisation of intangible assets 384 250 150
Payments to telecommunications operators 4,162 4,045 3,725
Other operating costs 6,159 5,887 5,426
Total operating costs before specific items 17,746 17,108 15,929
Specific items (note 4) 169 138 59
Total operating costs 17,915 17,246 15,988
Operating costs include the following:
Early leaver costs 147 133 166
Research and development expenditurea692 487 352
Rental costs relating to operating leases 389 413 419
Foreign currency losses 512 3
aResearch and development expenditure includes amortisation of £314 million (2006: £161 million, 2005: £95 million) in respect of internally developed computer software.
Consolidated financial statements Notes to the consolidated financial statements
96 BT Group plc Annual Report & Form 20-F