Focus and vision for 150 years..... - Thomson Reuters

NOTES ON THE CONSOLIDATED PROFIT AND LOSS ACCOUNT continued
2. OPERATING COSTS
2000 % 1999 % 1998
Costs by type £M CHANGE £M CHANGE £M
Wages, salaries, commission and allowances 1,081 24% 869 8% 805
Social security costs 81 17% 69 (5%) 73
Other pension costs (see note 23) 56 12% 49 (2%) 50
Staff 1,218 23% 987 6% 928
Services 895 40% 641 10% 586
Depreciation 276 (11%) 310 (6%) 331
Data 296 30% 227 (6%) 242
Communications 245 38% 178 (1%) 178
Space 202 17% 172 9% 158
Cost of sales and other 31 (21%) 39 (23%) 52
Goodwill amortisation 59 26% 47 2% 46
Reimbursement of costs (39) 105% (19) – –
Currency hedging activities – net gain (5) (44%) (9) (80%) (45)
Foreign currency translation – net loss 3 – 3 (44%) 6
3,181 23% 2,576 4% 2,482
Services include equipment hire and bought-in services, including consultancy and contractors, advertising and publicity, professional fees and staffrelated
expenses. Reimbursement of costs comprises amounts received from joint ventures in respect of costs incurred by Reuters on their behalf.
2000 % 1999 % 1998
Costs by function £M CHANGE £M CHANGE £M
Production and communications 1,731 11% 1,556 (1%) 1,571
Selling and marketing 621 21% 513 7% 479
Support services and administration 633 36% 466 10% 425
Business transformation 139 – – – –
Goodwill amortisation 59 26% 47 2% 46
Net currency gain (2) (67%) (6) (85%) (39)
3,181 23% 2,576 4% 2,482
Costs include:
Development expenditure 323 64% 197 (2%) 200
Operating lease expenditure:
Hire of equipment 10 11% 9 (18%) 11
Other, principally property 83 5% 79 8% 73
Advertising 50 76% 29 19% 24
Reversal of third party data feed accrual – – (25) – –
Fees payable to PricewaterhouseCoopers were as follows:
Audit fees:
United Kingdom 0.9 (10%) 1.0 11% 0.9
Overseas 0.9 – 0.9 – 0.9
1.8 (5%) 1.9 6% 1.8
Non-audit services:
United Kingdom 5.9 26% 4.7 24% 3.8
Overseas 7.2 22% 5.9 (3%) 6.1
13.1 24% 10.6 7% 9.9
14.9 19% 12.5 7% 11.7
42 Reuters Group PLC Annual Report and Form 20-F 2000