3. Profit/(loss) on ordinary activities before taxation

	Year ended 31 December 2003 £m	Year ended 31 December 2002 £m
Profit/(loss) on ordinary activities before taxation is stated after charging/(crediting):
Depreciation of tangible fixed assets	108	111
Amortisation of intangible fixed assets	–	(1)
Other amortisation	1	2
Development costs net of recoveries and amounts capitalised	14	8
Operating exceptional items (note 8)	369	103
Property lease rentals payable (net of recoveries)	3	2
Foreign exchange (gains)/losses (net)	(19)	7
Auditors’ remuneration – statutory audit:
Fees due to the lead auditors, KPMG (including audit of the Company £0.5 m (2002: £0.4m))	1.0	0.7
Fees due to other auditors	0.1	0.1
	1.1	0.8
Auditors’ remuneration – other fees paid to the lead auditors and their associates for services:
Accounting consultations (including services to the Company £0.3m (2002: £0.3m))	0.3	0.4
Due diligence assistance (including services to the Company £0.1m (2002: £0.2m))	0.1	0.2


The Audit Committee and the firm of external auditors have safeguards to avoid the possibility that the auditors' objectivity and independence could be compromised. These safeguards include the implementation of a policy on the use of the external auditor for non-audit related services. This policy has been revised during the year to incorporate the provisions of the Sarbanes-Oxley Act 2002 and subsequent Securities and Exchange Commission (SEC) rules. Where it is deemed that the work to be undertaken is of a nature that is generally considered reasonable to be completed by the auditor of the Group for sound commercial and practical reasons, the conduct of such work will be permissible provided that it has been pre-approved by the Audit Committee. Examples of pre-approved services include the completion of regulatory audits, provision of taxation and regulatory advice, reporting to the SEC and the completion of certain financial due diligence work. All these services are also subject to a pre-defined fee limit. Any work performed in excess of this limit must be approved by the Chief Financial Officer and the Audit Committee.