Expenses and other income
 12 Months Ended
Jun. 30, 2021
Text block [abstract]  
Expenses and other income
5    Expenses and other income
 
    
2021
     2020     2019  
    
US$M
     US$M     US$M  
Employee benefits expense:
                         
Wages, salaries and redundancies
   
 
4,399
 
     3,706       3,683  
Employee share awards
   
 
124
 
     129       138  
Social security costs
   
 
3
 
     2       4  
Pension and other post-retirement obligations
   
 
316
 
     283       292  
Less employee benefits expense classified as exploration and evaluation expenditure
   
 
(119
) 
     (65 )      (85 ) 
Changes in inventories of finished goods and work in progress
   
 
(334
) 
     (326 )      496  
Raw materials and consumables used
   
 
4,940
 
     5,509       4,591  
Freight and transportation
   
 
2,037
 
     1,981       2,378  
External services
   
 
5,260
 
     4,404       4,745  
Third-party commodity purchase
s
   
 
2,230
 
     1,139       1,069  
Net foreign exchange losses/(gains)
   
 
310
 
     (603 )      (147 ) 
Fair value change on derivatives
(1)
   
 
145
 
     422       8  
Government royalties paid and payable
   
 
3,217
 
     2,362       2,538  
Exploration and evaluation expenditure incurred and expensed in the current period
   
 
430
 
     517       516  
Depreciation and amortisation expense
   
 
6,824
 
     6,112       5,829  
Net impairments:
                         
Property, plant and equipment
   
 
2,583
 
     494       250  
Goodwill and other intangible assets
   
 
52
 
     –       14  
All other operating expenses
   
 
2,083
 
     2,709       1,703  
    
 
 
    
 
 
    
 
 
  
Total expenses
   
 
34,500
 
     28,775       28,022  
    
 
 
    
 
 
    
 
 
  
Insurance recoveries
(2)
   
 
(46
) 
     (489 )      (57 ) 
Other income
(3)
   
 
(464
) 
     (288 )      (336 ) 
    
 
 
    
 
 
    
 
 
  
Total other income
   
 
(510
) 
     (777 )      (393 ) 
    
 
 
    
 
 
    
 
 
  
 
(1)
 
Fair value change on derivatives is principally related to commodity price contracts, foreign exchange contracts and embedded derivatives used in the ordinary course of business as well as derivatives used as part of the funding of dividends.
 
(2)
 
Insurance recoveries is principally related to claims received from Samarco dam failure. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.
 
(3)
Other income is generally income earned from transactions outside the course of the Group’s ordinary activities and may include certain management fees from
non-controlling
interests and joint arrangements, dividend income, royalties, commission income and gains or losses on divestment of subsidiaries or operations.
Recognition and measurement
Income is recognised when it is probable that the economic benefits associated with a transaction will flow to the Group and can be reliably measured. Dividends are recognised upon declaration.