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Notes to the financial statements

For the 52 weeks ended 1 March 2008

8. Net operating expenses

Expenses by function Before
exceptional
items
£m 		Exceptional
items
(note 10)
£m 		52 weeks
ended
1 March
2008
£m 		Before
exceptional
items
£m 		Exceptional
items
(note 10)
£m 		Short period
ended
3 March
2007
£m
Net operating expenses comprise:
Selling costs (1,405.8) – (1,405.8) (1,321.8) – (1,321.8)
Administrative costs (311.7) 0.8 (310.9) (276.5) (22.7) (299.2)
Total net operating expenses (1,717.5) 0.8 (1,716.7) (1,598.3) (22.7) (1,621.0)
Expenses by nature
Profit before tax is stated after (charging)/crediting 		Notes 52 weeks
ended
1 March
2008
£m 		Short period
ended
3 March
2007
£m
Operating lease rental expense
– Plant and equipment   (9.8) (9.4)
– Property   (335.0) (310.6)
Cost of inventories recognised as an expense in cost of sales   (3,758.0) (3,564.0)
Write down of inventories   (123.0) (116.5)
Exceptional items 10 0.8 (15.8)
Loss on sale of property, plant and equipment   (0.4) (0.9)
Depreciation of property, plant and equipment 17 (126.9) (130.0)
Amortisation of intangible assets 16 (24.7) (16.4)
Employee benefit costs 9 (768.1) (717.2)
Auditors’ remuneration
 52 weeks
ended
1 March
2008
£m 		Short period
ended
3 March
2007
£m
Audit services:
Fees payable for the audit of the Company and the consolidated financial statements (0.8) (0.8)
Other services:
Fees payable to the Company’s auditors and its associates for other services
– the audit of the Company’s subsidiaries pursuant to legislation (0.1) (0.1)
– services relating to taxation (0.2) (0.2)
– all other services (0.1) (0.2)
Total fees payable to PricewaterhouseCoopers LLP (1.2) (1.3)

The above disclosure is presented in accordance with SI 2005/2417, where audit fees in respect of the audit of the Company’s subsidiaries pursuant to legislation are included within other services.