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Expenses and other income (Tables)
 12 Months Ended
Jun. 30, 2020
Text block [abstract]  
Summary of Expenses and Other Income
   
2020
  2019  2018 
   
US$M
  US$M  US$M 
Employee benefits expense:
    
Wages, salaries and redundancies
  
 
3,706
 
  3,683   3,653 
Employee share awards
  
 
129
 
  138   123 
Social security costs
  
 
2
 
  4   4 
Pension and other post-retirement obligations
  
 
283
 
  292   292 
Less employee benefits expense classified as exploration and evaluation expenditure
  
 
(65
) 
  (85)   (82) 
Changes in inventories of finished goods and work in progress
  
 
(326
) 
  496   (142) 
Raw materials and consumables used
  
 
5,509
 
  4,591   4,389 
Freight and transportation
  
 
1,981
 
  2,378   2,294 
External services
  
 
4,404
 
  4,745   4,786 
Third party commodity purchases
  
 
1,139
 
  1,069   1,374 
Net foreign exchange gains
  
 
(603
) 
  (147)   (93) 
Fair value change on derivatives
(1)
  
 
422
 
  8   208 
Government royalties paid and payable
  
 
2,362
 
  2,538   2,168 
Exploration and evaluation expenditure incurred and expensed in the current period
  
 
517
 
  516   641 
Depreciation and amortisation expense
  
 
6,112
 
  5,829   6,288 
Net impairments:
    
Property, plant and equipment
  
 
494
 
  250   318 
Goodwill and other intangible assets
  
 
–
 
  14   14 
Available for sale financial assets
  
 
–
 
  –   1 
Lease costs
(2)
  
 
675
 
  405   421 
All other operating expenses
  
 
2,034
 
  1,298   870 
  
 
 
  
 
 
  
 
 
 
Total expenses
  
 
28,775
 
 
 
28,022
 
 
 
27,527
 
  
 
 
  
 
 
  
 
 
 
Insurance recoveries
(3)
  
 
(489
) 
  (57)   – 
Other income
(4)
  
 
(288
) 
  (336)   (247) 
  
 
 
  
 
 
  
 
 
 
Total other income
  
 
(777
) 
 
 
(393)
 
 
 
(247)
 
  
 
 
  
 
 
  
 
 
 
 
(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)
 
Lease costs for FY2020 represent short-term,
low-value
and variable lease costs that continue to be charged against profit from operations under IFRS 16. Refer to note 20 ‘Leases’ for details. Lease costs for FY2019 and FY2018 represent the operating lease rentals under IAS 17.
 
(3)
 
Insurance recoveries is principally related to claims received from Samarco dam failure. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.
 
(4)
 
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.