GSK Annual Report 2002

7 Merger items, restructuring costs and divested businesses continued
Notes to the financial statements GlaxoSmithKline 89
Restruc- Disposal of Total
Merger turing Block Drug subsidiaries (restated)
2001 £m £m £m £m £m
Manufacturing and other restructuring – (162) – – (162)
Merger integration costs (1,069) – – – (1,069)
Block Drug integration costs – – (125) – (125)
Effect on operating profit (1,069) (162) (125) – (1,356)
Loss on disposal of businesses – – – (296) (296)
Effect on profit before tax (1,069) (162) (125) (296) (1,652)
Effect on taxation – operating items 355
Effect on taxation – non-operating items (33)
Effect on taxation 322
Effect on earnings (1,330)
Restruc- Disposal of Total
Merger turing Associate subsidiaries (restated)
2000 £m £m £m £m £m
Manufacturing and other restructuring – (171) – – (171)
Merger integration costs (400) – – – (400)
Effect on operating profit (400) (171) – – (571)
Share of associate – – (8) – (8)
Product divestments 1,416 – – – 1,416
Merger transaction costs (121) – – – (121)
Loss on disposal of business – – – (14) (14)
Effect on profit before tax 895 (171) (8) (14) 702
Effect on taxation – operating items 120
Effect on taxation – non-operating items (370)
Effect on taxation (250)
Effect on earnings 452
8 Other operating income/(expense)
2002 2001 2000
£m £m £m
Royalties and other income 75 34 43
Other operating expense (209) (126) (58)
(134) (92) (15)
Income from equity investments and other disposals 23 129 289
(111) 37 274
Royalties and other income is principally a core of recurring income in the form of royalties from the out-licensing of intellectual property.
Other operating expense comprises non-recurring costs related to product liability and other claims and other costs in respect of product
withdrawals. Income from equity investments and other disposals arises from equity investment sales and equity investment write-downs
due to adverse market conditions, product and property disposals.