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| All figures in £ millions | 2005 | 2004 | 2003 |
|---|---|---|---|
| By function: | |||
| Cost of goods sold | 2,022 | 1,789 | 1,846 |
| Operating expenses | |||
| Distribution costs | 249 | 201 | 206 |
| Administrative and other expenses | 1,384 | 1,365 | 1,439 |
| Other income | (41) | (46) | (51) |
| Total operating expenses | 1,592 | 1,520 | 1,594 |
| Total | 3,614 | 3,309 | 3,440 |
By nature: |
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| Utilisation of inventory | 768 | 700 | 710 |
| Depreciation of property, plant and equipment (note 11) | 80 | 78 | 79 |
| Amortisation of intangible assets - pre-publication (note 17) | 192 | 168 | 158 |
| Amortisation of intangible assets - other (note 12) | 29 | 25 | 32 |
| Employee benefit expense (note 6) | 1,273 | 1,154 | 1,156 |
| Operating lease rentals | 119 | 126 | 148 |
| Other property costs | 88 | 73 | 61 |
| Royalties expensed | 363 | 331 | 354 |
| Advertising, promotion and marketing | 202 | 181 | 193 |
| Information technology costs | 84 | 76 | 85 |
| Other costs | 457 | 443 | 515 |
| Other income | (41) | (46) | (51) |
| Total | 3,614 | 3,309 | 3,440 |
During the year the Group obtained the following services from the Group's auditor: |
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| All figures in £ millions | 2005 | 2004 | 2003 |
| Statutory audit | 4 | 3 | 3 |
| Audit-related regulatory reporting services | 1 | 1 | – |
| Non-audit services: | |||
| Tax compliance | 1 | 1 | 1 |
| Tax advisory | – | 1 | 1 |
| Other non-audit services | 1 | – | – |
Audit-related regulatory reporting services were £700,000 (2004: £600,000; 2003: £nil). This relates to services in respect of the transition to IFRS and Sarbanes-Oxley section 404 compliance services. Other non-audit services were £700,000 (2004: £100,000; 2003: £400,000) and mainly relate to due diligence work performed at IDC.
Non-audit fees in the UK were £1.0m (2004: £1.0m; 2003: £300,000) and were in respect of tax advisory, tax compliance and other advisory services. The remainder of the non-audit fees related to overseas subsidiaries.
