Notes to the consolidated financial statements – analysis of items in the primary statements

1. Segmental analysis	10. Earnings per share	19. Trade and other receivables
2. Other operating income	11. Goodwill	20. Cash and cash equivalents
3. Operating costs	12. Other intangible assets	21. Borrowings
4. Exceptional items, remeasurements and stranded cost recoveries	13. Property, plant and equipment	22. Trade and other payables
5. Pensions and other post-retirement benefits	14. Other non-current assets	23. Other non-current liabilities
6. Finance income and costs	15. Financial and other investments	24. Provisions
7. Taxation	16. Deferred tax assets and liabilities	25. Share capital
8. Discontinued operations	17. Derivative financial instruments	26. Reconciliation of movements in total equity
9. Dividends	18. Inventories and current intangible assets	27. Consolidated cash flow statement

13. Property, plant and equipment

	Land and buildings £m	Plant and machinery £m	Assets in the course of construction £m	Motor vehicles and office equipment £m	Total £m
Cost at 1 April 2006	974	25,702	1,716	677	29,069
Exchange adjustments	(53)	(841)	(27)	(1)	(922)
Additions	16	604	1,611	112	2,343
Acquisition of subsidiary undertakings	12	157	1	–	170
Reclassification to assets of businesses held for sale	(152)	(1,292)	(2)	(22)	(1,468)
Disposals	(57)	(112)	–	(36)	(205)
Other reclassifications	38	1,248	(1,327)	41	–
Cost at 31 March 2007	778	25,466	1,972	771	28,987
Exchange adjustments	3	17	1	–	21
Additions	39	599	2,307	64	3,009
Acquisition of subsidiary undertakings (note 28)	353	2,793	129	7	3,282
Disposals	(40)	(135)	–	(56)	(231)
Reclassifications	25	1,840	(1,783)	57	139
Cost at 31 March 2008	1,158	30,580	2,626	843	35,207
Depreciation at 1 April 2006	284	9,400	–	450	10,134
Exchange adjustments	(10)	(311)	–	(1)	(322)
Depreciation charge for the year (i)	18	801	–	70	889
Reclassification to assets of businesses held for sale	(97)	(350)	–	(18)	(465)
Disposals	(3)	(107)	–	(34)	(144)
Depreciation at 31 March 2007	192	9,433	–	467	10,092
Exchange adjustments	1	6	–	–	7
Depreciation charge for the year (i)	26	853	–	75	954
Disposals	(17)	(113)	–	(49)	(179)
Depreciation at 31 March 2008	202	10,179	–	493	10,874
Net book value at 31 March 2008	956	20,401	2,626	350	24,333
Net book value at 31 March 2007	586	16,033	1,972	304	18,895

(i) Includes amounts in respect of discontinued operations of £nil (2007: £59m) and capitalised depreciation of £14m (2007: £nil).

The net book value of land and buildings comprised:

	2008 £m	2007 £m
Freehold	910	540
Long leasehold (over 50 years)	5	13
Short leasehold (under 50 years)	41	33
	956	586

The cost of property, plant and equipment at 31 March 2008 included £674m (2007: £565m) relating to interest capitalised.

Included within trade and other payables and other non-current liabilities at 31 March 2008 are contributions to the cost of property, plant and equipment amounting to £31m (2007: £28m) and £1,228m (2007: £1,079m) respectively.

Reclassifications for 2007/08 include an amount of £139m transferred to trade and other payables, and other non-current liabilities.

The carrying value of property, plant and equipment held under finance leases at 31 March 2008 was £193m (2007: £107m). Additions during the year include £26m (2007: £1m) of property, plant and equipment held under finance leases.

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