Vodafone 2002 Annual Report Download - page 88

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Vodafone Group Plc Annual Report & Accounts and Form 20-F Notes to the Consolidated Financial Statements86
Notes to the Consolidated Financial Statements continued
5. Operating profit
Continuing 2001 2000
operations Acquisitions 2002 as restated as restated
£m £m £m £m £m
Group turnover 17,940 4,905 22,845 15,004 7,873
Cost of sales 9,892 3,554 13,446 8,702 4,359
8,048 1,351 9,399 6,302 3,514
Selling and distribution costs 1,196 261 1,457 1,162 869
Administrative expenses 16,798 1,521 18,319 11,579 1,662
Amortisation of goodwill 10,429 533 10,962 9,585 672
Exceptional operating items 4,086 400 4,486 176 30
Other administration costs 2,283 588 2,871 1,818 960
Total operating expenses 17,994 1,782 19,776 12,741 2,531
Operating (loss)/profit (9,946) (431) (10,377) (6,439) 983
Operating (loss)/profit has been arrived at after charging:
2001 2000
2002 as restated as restated
£m £m £m
Depreciation of tangible fixed assets:
Owned assets 2,702 1,568 698
Leased assets 178 25 48
Amortisation of goodwill 10,962 9,585 672
Amortisation of other intangible fixed assets 34 24 12
Research and development 110 72 46
Bad debt expense 196 127 71
Payments under operating leases:
Plant and machinery 38 19 76
Other assets 307 229 278
Auditors’ remuneration:
Audit work 431
Other fees:
United Kingdom –23
Overseas 564
Auditors’ other fees incurred on acquisitions and specific capital projects and business acquisitions and disposals during the year totalling £17m (2001:
£14m) have been excluded from the above analysis, of which £2m (2001: £4m) was incurred by overseas operations. The total amount charged by Deloitte
& Touche for non-audit assignments of £22m (2001: £22m) includes £18m for IT consultancy (2001: £10m), £1m for taxation services (2001: £3m) and
£3m for other services including due diligence reviews (2001: £9m). Fees for IT consultancy include £14m in respect of a contract awarded in 2000 and
completed in 2002.