Non-underlying items charged/(credited) comprise:
| 2019
£m | 2018
£m |
|---|
| Amortisation of acquired intangibles | | |
| – classified within selling, general and administrative expenses | 70.0 | 46.1 |
| – classified within research and development expenses | 6.8 | 8.0 |
| Remeasurement of contingent consideration | (0.1) | (0.1) |
| Fair value uplift of inventory acquired through business combinations | 5.1 | 5.1 |
| Expenses relating to Brexit | 0.9 | – |
| Expenses relating to acquisitions and subsequent integration activities | 3.7 | 3.1 |
| Rationalisation of manufacturing organisation | 2.0 | 2.9 |
| Non-underlying operating profit items | 88.4 | 65.1 |
| | | |
| Amortisation in relation to Medical Ethics Pty Ltd | 0.2 | 0.2 |
| Loss on extinguishment of debt | – | 0.4 |
| Fair value and other movements on deferred and contingent consideration | 1.0 | (0.9) |
| Non-underlying profit before tax items | 89.6 | 64.8 |
| | | |
| Tax on non-underlying profit before tax items | (20.0) | (16.4) |
| Revaluation of deferred tax balances following the change in Dutch tax rates/US tax rates | (8.0) | (10.0) |
| Non-underlying profit after tax items | 61.6 | 38.4 |
Amortisation of acquired intangibles reflects the amortisation of the fair values of future cash flows recognised on acquisition in relation to the identifiable intangible assets acquired, including a full year impact in 2019 of the amortisation of the acquired intangible relating to AST Farma and Le Vet Beheer BV.
The remeasurement of the contingent consideration balance relates to the net credit to the income statement on the reassessment of future milestone and royalty payments on a licensing agreement.
The fair value uplift of inventory acquired through business combinations is recognised in accordance with IFRS 3 'Business Combinations' to record the inventory acquired at fair value and its subsequent release into the income statement.
Expenses relating to Brexit represents regulatory and technology transfer costs incurred in advance of Brexit that are not expected to be recurring.
Expenses relating to acquisitions and subsequent integration activities represents costs incurred during the acquisition and integration of Venco (£1.3 million), Caledonian (£0.1 million), and AST Farma and Le Vet (£2.1 million).
Rationalisation of manufacturing organisation relates to the income statement cost associated with this strategic programme. Costs since the inception of the programme have been £4.9 million. The total planned spend on this project is now £7.6 million.