|
|
|
2017 |
|
2016 |
|
2015 |
|
|
|
|
$ million |
|
$ million |
|
$ million |
|
|
Revenue |
|
4,765 |
|
4,669 |
|
4,634 |
|
|
Cost of goods sold |
|
(1,248) |
|
(1,272) |
|
(1,143) |
|
|
Gross profit |
|
3,517 |
|
3,397 |
|
3,491 |
|
|
Research and development expenses |
|
(223) |
|
(230) |
|
(222) |
|
|
Selling, general and administrative expenses: |
|
|
|
|
|
|
|
|
Marketing, selling and distribution expenses |
|
(1,781) |
|
(1,712) |
|
(1,735) |
|
|
Administrative expenses1,2,3,4 |
|
(579) |
|
(654) |
|
(906) |
|
|
|
|
(2,360) |
|
(2,366) |
|
(2,641) |
|
|
Operating profit |
|
934 |
|
801 |
|
628 |
|
|
1 |
2017 includes $62m of amortisation of software and other intangible assets (2016: $61m, 2015: $66m). |
|
2 |
2017 includes $140m of amortisation and impairment of acquisition intangibles (2016: $62m of restructuring and rationalisation expenses and $178m of amortisation and impairment of acquisition intangibles, 2015: $65m of restructuring and rationalisation expenses and $204m of amortisation and impairment of acquisition intangibles). |
|
3 |
2017 includes $16m credit relating to legal and other items (2016: $30m credit, 2015: $190m charge). |
|
4 |
2017 includes $10m credit of acquisition-related costs (2016: $9m charge, 2015: $12m charge). |
Note that items detailed in 2, 3, 4 are excluded from the calculation of trading profit, the segment profit measure.
Operating profit is stated after charging/(crediting) the following items:
|
|
|
2017 |
|
2016 |
|
2015 |
|
|
|
|
$ million |
|
$ million |
|
$ million |
|
|
Other operating income |
|
(66) |
|
(25) |
|
(41) |
|
|
Amortisation of intangibles |
|
192 |
|
191 |
|
219 |
|
|
Impairment of intangible assets |
|
10 |
|
48 |
|
51 |
|
|
Depreciation of property, plant and equipment |
|
243 |
|
224 |
|
226 |
|
|
Loss on disposal of property, plant and equipment and intangible assets |
|
13 |
|
15 |
|
15 |
|
|
Operating lease payments for land and buildings |
|
36 |
|
39 |
|
37 |
|
|
Operating lease payments for other assets |
|
21 |
|
19 |
|
20 |
|
|
Advertising costs |
|
102 |
|
88 |
|
91 |
|
In 2017 other operating income primarily relates to a gain relating to patent litigation (2016: insurance recovery relating to metal-on-metal claims, 2015: net gain relating to patent litigation).
3 OPERATING PROFIT continued
3.1 Staff costs and employee numbers
Staff costs during the year amounted to:
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
|
|
|
|
Notes |
|
$ million |
|
$ million |
|
$ million |
|
|
Wages and salaries |
|
|
|
1,157 |
|
1,227 |
|
1,193 |
|
|
Social security costs |
|
|
|
178 |
|
129 |
|
135 |
|
|
Pension costs (including retirement healthcare)1 |
|
18 |
|
64 |
|
23 |
|
58 |
|
|
Share-based payments |
|
23 |
|
31 |
|
27 |
|
30 |
|
|
|
|
|
|
1,430 |
|
1,406 |
|
1,416 |
|
1 In 2016, pension costs include the past service cost credit of $49m arising primarily from the closure of the UK defined benefit scheme to future accrual.
During the year ended 31 December 2017, the average number of employees was 16,333 (2016: 15,584, 2015: 14,686).
3.2 Audit Fees – information about the nature and cost of services provided by the auditor
|
|
|
2017 |
|
2016 |
|
2015 |
|
|
|
|
$ million |
|
$ million |
|
$ million |
|
|
Audit services: |
|
|
|
|
|
|
|
|
Group accounts |
|
2.4 |
|
2.0 |
|
2.1 |
|
|
Local statutory audit pursuant to legislation |
|
2.0 |
|
2.0 |
|
2.0 |
|
|
Other services: |
|
|
|
|
|
|
|
|
Non-audit services |
|
0.1 |
|
0.5 |
|
0.5 |
|
|
Taxation services: |
|
|
|
|
|
|
|
|
Compliance services |
|
– |
|
0.1 |
|
0.5 |
|
|
Advisory services |
|
– |
|
– |
|
– |
|
|
Total auditor’s remuneration |
|
4.5 |
|
4.6 |
|
5.1 |
|
|
Arising: |
|
|
|
|
|
|
|
|
In the UK |
|
2.5 |
|
2.5 |
|
2.5 |
|
|
Outside the UK |
|
2.0 |
|
2.1 |
|
2.6 |
|
|
|
|
4.5 |
|
4.6 |
|
5.1 |
|