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Operating costs
 12 Months Ended
Jun. 30, 2020
Analysis of income and expense [abstract]  
Operating costs
3. Operating costs
 
 
2020
£ million

 
2019
£ million

 
2018
£ million

Excise duties
 
5,945

 
6,427

 
6,269

Cost of sales
 
4,654

 
4,866

 
4,634

Marketing
 
1,841

 
2,042

 
1,882

Other operating items
 
3,120

 
1,917

 
1,956


 
15,560

 
15,252

 
14,741

Comprising:
 

 

 

Excise duties
 
 
 
 
 
 
Great Britain
 
930


898


853

United States
 
585


587


548

India
 
1,927


2,202

 
2,094

Other
 
2,503

 
2,740

 
2,774

Increase in inventories
 
(275
)
 
(446
)
 
(296
)
Raw materials and consumables
 
2,842

 
3,007

 
3,052

Marketing
 
1,841

 
2,042

 
1,882

Other external charges
 
2,044

 
2,285

 
1,849

Staff costs
 
1,404

 
1,580

 
1,509

Depreciation, amortisation and impairment
 
1,839

 
374

 
493

Gains on disposal of properties
 
(2
)
 
(5
)
 
(9
)
Net foreign exchange losses/(gains)
 
15

 
(7
)
 
6

Other operating income
 
(93
)
 
(5
)
 
(14
)
 
 
15,560

 
15,252

 
14,741

(a) Other external charges

Other external charges include research and development expenditure in respect of new drinks products and package design of £34 million (2019 – £35 million; 2018 – £36 million) and maintenance and repairs of £105 million (2019 – £103 million; 2018 – £117 million).
(b) Auditor fees

Other external charges include the fees of the principal auditor of the group, PricewaterhouseCoopers LLP and its affiliates (PwC) and are analysed below.
 
 
2020
£ million

 
2019
£ million

 
2018
£ million

Audit of these financial statements
 
5.3

 
3.8

 
3.3

Audit of financial statements of subsidiaries
 
3.6

 
3.4

 
3.3

Audit related assurance services(i)
 
2.4

 
1.6

 
1.6

Total audit fees (Audit fees)
 
11.3

 
8.8

 
8.2

Other services relevant to taxation (Tax fees)
 
—

 
—

 
0.1

Other assurance services (Audit related fees)(ii)
 
0.8

 
0.7

 
0.6

All other non-audit fees (All other fees)
 
—

 
0.2

 
1.0

 
 
12.1

 
9.7

 
9.9

(i)
Audit related assurance services are in respect of reporting under section 404 of the US Sarbanes-Oxley Act and the review of the interim financial information.
(ii)
Other assurance services comprise the aggregate fees for assurance and related services that are in respect of the performance of the audit or review of the financial statements and are not reported under ‘total audit fees’.

(1)
Disclosure requirements for auditor fees in the United States are different from those required in the United Kingdom. The terminology by category required in the United States is disclosed in brackets in the above table. All figures are the same for the disclosures in the United Kingdom and the United States apart from £0.4 million (2019 – £0.4 million; 2018 – £0.4 million) of the cost in respect of the review of the interim financial information which would be included in audit related fees in the United States rather than audit fees.

Audit services provided by firms other than PwC for the year ended 30 June 2020 were £0.1 million (2019 – £0.1 million; 2018 – £0.1 million). PwC fees for audit services in respect of employee pension plans were £0.3 million for the year ended 30 June 2020 (2019 – £0.3 million; 2018 – £0.3 million).
(c) Staff costs and average number of employees
 
 
2020
£ million

 
2019
£ million

 
2018
£ million

Aggregate remuneration
 
 
 
 
 
 
Wages and salaries
 
1,251

 
1,344

 
1,272

Share-based incentive plans
 
3

 
50

 
40

Employer’s social security
 
79

 
96

 
95

Employer’s pension
 
 
 
 
 
 
Defined benefit plans
 
37

 
61

 
73

Defined contribution plans
 
24

 
19

 
18

Other post employment plans
 
10

 
10

 
11

 
 
1,404

 
1,580

 
1,509



The average number of employees on a full time equivalent basis (excluding employees of associates and joint ventures) was as follows:
 
 
2020

 
2019

 
2018

North America
 
2,466

 
2,410

 
2,406

Europe and Turkey
 
3,350

 
3,609

 
3,747

Africa
 
4,003

 
4,338

 
4,625

Latin America and Caribbean
 
1,549

 
1,610

 
2,536

Asia Pacific
 
6,559

 
7,038

 
8,008

ISC
 
4,908

 
4,919

 
4,227

Corporate and other
 
4,940

 
4,496

 
4,368

 
 
27,775

 
28,420

 
29,917



At 30 June 2020 the group had, on a full time equivalent basis, 27,788 (2019 – 28,150; 2018 – 29,362) employees. The average number of employees of the group, including part time employees, for the year was 28,490 (2019 – 29,402; 2018 – 30,761).
(d) Exceptional operating items

Included in other operating items are the following:
 
 
2020
£ million

 
2019
£ million

 
2018
£ million

Staff costs
 


 


 


Guaranteed minimum pension equalisation charge
 
—

 
21

 
—

Other external charges
 
95

 
53

 
—

Other operating income
 
(83
)
 
—

 
—

Increase in inventories
 
—

 
—

 
3

Depreciation, amortisation and impairment
 
 
 
 
 
 
Brand, goodwill, tangible and other assets impairment
 
1,345

 
—

 
125

Total exceptional operating items (note 4)
 
1,357

 
74

 
128