Notes to the financial statements

for the year ended 31 March 2012

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05 Operating expenses

Consolidated Notes 2012
£’000
2011
£’000
Staff costs 83,224 83,225
Restructuring costs relating to employees 1,249
Total staff costs 8 83,224 84,474
Own work capitalised 8 (4,899) (2,285)
Costs relating to Network Build contract 11,701 20,188
Other external charges* 200,510 202,843
Non-employee related pension charges (1,619) 245
Operating lease rentals:
– hire of plant and machinery 1,118 1,105
– other operating leases 3,813 4,171
Auditors' remuneration 6 287 455
Cost of inventories recognised as an expense 14,272 14,207
Foreign exchange gain (1,244) (348)
Depreciation of property, plant and equipment 17,591 18,464
Amortisation of intangible assets 2,514 8,868
(Profit)/loss on disposal of property, plant and equipment (913) 145
Employee share schemes 3,191 2,586
Total 329,546 355,118

* Other external charges mainly relate to costs from key partners, such as BT wholsale costs.

Non-employee related pension charges are the total of interest costs and expected return on assets as set out in note 30.