Notes to the financial statements
4 Operating profit
| 2008 £m |
2007 £m |
||
|---|---|---|---|
| Operating profit is stated after charging/(crediting) the following items: | |||
| Employee costs (note 6) | 1,957 | 1,785 | |
| Depreciation expense | 463 | 479 | |
| Amortisation expense (included within cost of sales) | 18 | 21 | |
| Profit on sale of properties (note 7) | (7) | (7) | |
| Profit on part disposal of Sainsbury’s Bank | - | (10) | |
| Costs relating to approach from Delta Two (note 7) | 7 | – | |
| Costs associated with Office of Fair Trading dairy inquiry (note 7) | 27 | – | |
| Fair value gain on other financial asset (note 7) | (22) | – | |
| Impairment of amounts due from Sainsbury’s Bank customers (included within administrative expenses) | - | 89 | |
| Reversal of impairment of receivables | (1) | – | |
| Operating lease rentals | - land and buildings | 304 | 287 |
| - other leases | 51 | 45 | |
| - sublease payments received | (35) | (30) | |
| Foreign exchange (gains)/losses | (2) | 6 | |
| Group | 2008 £m |
2007 £m |
|---|---|---|
| Auditors’ remuneration | ||
Audit services |
||
| Fees payable to the Company auditor for the audit of the Group and the Company financial statements | 0.3 | 0.4 |
Non-audit services |
||
| Fees payable to the Company auditor and its associates for other services as detailed below: | ||
| Audit of the Company’s subsidiaries pursuant to legislation | 0.4 | 0.4 |
| Other services pursuant to legislation | 0.1 | 0.1 |
| Tax services | 0.5 | 0.3 |
| All other services | 0.2 | 0.2 |
| 1.5 | 1.4 |