NOTES TO THE ACCOUNTS

2 COST OF SALES AND OTHER OPERATING EXPENSES

	2009 Existing operations £m	2009 Acquisitions £m	2009 Total £m	2008 Existing operations £m	2008 Acquisitions £m	2008 Total £m
Cost of sales	2,050.3	–	2,050.3	2,138.5	106.7	2,245.2
Other operating expenses:
– distribution costs	225.9	–	225.9	237.9	13.9	251.8
– selling and marketing costs	240.6	–	240.6	239.4	14.6	254.0
– administrative expenses	259.2	–	259.2	188.4	7.2	195.6
	725.7	–	725.7	665.7	35.7	701.4

The administrative expenses above include £113.4m (2008: £62.8m) of “Other items” which have been disclosed in a separate column within the Consolidated Income Statement in order to provide a better indication of the underlying earnings of the Group. Other operating expenses and net finance costs included within “Other items” are as follows:

	2009 £m	2008 £m
Amortisation of acquired intangibles (Note 12)	(28.6)	(26.4)
Goodwill impairment losses (Note 11)	(30.0)	(14.2)
Restructuring costs	(54.8)	(22.2)
Other operating expenses	(113.4)	(62.8)
Net losses on derivative financial instruments	(2.5)	(41.4)
Loss before tax	(115.9)	(104.2)
Income tax credit	28.2	13.9
Loss after tax	(87.7)	(90.3)

Annual Report and Accounts 2009

Investor contact

Richard Monro Company Secretary

NOTES TO THE ACCOUNTS

2 COST OF SALES AND OTHER OPERATING EXPENSES

Richard Monro
Company Secretary