Notes to the Accounts
3. Analysis of consolidated profit and loss account
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| 2001 | 2000 | |||
| all figures in £ millions | continuing total |
continuing | discontinued | total |
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| Cost of sales | (1,902) | (1,527) | (114) | (1,641) |
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| Gross profit | 2,323 | 2,162 | 71 | 2,233 |
| Distribution costs | (200) | (179) | (1) | (180) |
| Administration and other expenses | (2,176) | (1,868) | (45) | (1,913) |
| Other operating income | 66 | 79 | 3 | 82 |
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| Net operating expenses | (2,310) | (1,968) | (43) | (2,011) |
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| Analysed as: | ||||
| Net operating expenses – before exceptional items and goodwill amortisation | (1,879) | (1,749) | (42) | (1,791) |
| Net operating expenses – exceptional items: | ||||
| Integration costs | (74) | (32) | – | (32) |
| Goodwill impairment | (58) | – | – | – |
| Net operating expenses – goodwill amortisation | (299) | (187) | (1) | (188) |
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| Net operating expenses | (2,310) | (1,968) | (43) | (2,011) |
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note 
Of the exceptional expense of £132m in
2001 (2000: £40m), nil (2000: £8m) is included within cost of sales and
£132m (2000: £32m) is included within administration and other expenses.
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| all figures in £ millions | 2001 | 2000 |
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| Other operating income | ||
| Income from other investments: | ||
| Unlisted | 2 | 3 |
| Other operating income (mainly royalties, rights and commission income) | 64 | 79 |
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| 66 | 82 | |
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| (Loss)/profit before taxation is stated after charging: | ||
| Amortisation of pre-publication costs | 161 | 155 |
| Depreciation | 125 | 100 |
| Operating lease rentals: | ||
| Plant and machinery | 31 | 16 |
| Properties | 99 | 75 |
| Other | 17 | 14 |
| Auditors’ remuneration: | ||
| Audit (Company £20,000; 2000: £20,000) | 2 | 2 |
| Non-audit – UK (Company £nil; 2000: £nil) | 2 | 1 |
| Non-audit – Overseas | 3 | 5 |
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| Non-audit services were as follows: | ||
| US reporting, due diligence and other audit related work | 2 | 3 |
| Taxation advice | 1 | 2 |
| Other acquisition related work | 2 | 1 |
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| 5 | 6 | |
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note In addition fees of nil (2000: £2m) have
been incurred in respect of consulting projects and these fees have been
capitalised.
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