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Expenses and other income
 12 Months Ended
Jun. 30, 2023
Text block [abstract]  
Expenses and other income
5    Expenses and other income
 
    
2023
     2022     2021  
    
US$M
     US$M     US$M  
Employee benefits expense:
       
Wages and salaries
    
4,539
      
 
    4,197		      
 
    4,018		  
Employee share awards
     
97
       109       88  
Social security costs
     
4
       4       3  
Pension and other post-retirement obligations
     
339
       338       274  
Less employee benefits expense classified as exploration and evaluation expenditure
     
(35
)
 		     (30 )      (26 ) 
Changes in inventories of finished goods and work in progress
     
301
       (774 )      (321 ) 
Raw materials and consumables used
     
6,710
       5,991       4,899  
Freight and transportation
     
2,299
       2,319       1,900  
External services
     
4,768
       4,525       4,640  
Third-party commodity purchases
     
1,878
       2,959       2,220  
Net foreign exchange (gains)/losses
     
(197
)
 		     (326 )      293  
Fair value change on derivatives
1
     
135
       (29 )      87  
Government royalties paid and payable
     
3,841
      
 
    4,014		      
 
    3,080		  
Exploration and evaluation expenditure incurred and expensed in the current period
     
294
       199       134  
Depreciation and amortisation expense
     
5,061
       5,683       5,084  
Net impairments:
       
Property, plant and equipment
     
73
       515       2,474  
Goodwill and other intangible assets
     
2
       –       33  
All other operating expenses
     
1,764
       2,677       1,991  
  
 
 
    
 
 
    
 
 
  
Total expenses
     
31,873
       32,371       30,871  
  
 
 
    
 
 
    
 
 
  
Insurance recoveries
     
–
       (4 )      (46 ) 
(Gain)/loss on disposal of subsidiaries and operations
2
     
(8
)
 		     (840 )      2  
Dividend income
3
     
(19
)
 		     (241 )      (2 ) 
Other income
4
     
(367
)
 		     (313 )      (334 ) 
  
 
 
    
 
 
    
 
 
  
Total other income
     
(394
)
 		     (1,398 )      (380 ) 
  
 
 
    
 
 
    
 
 
  
 
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
 
Mainly relates to the divestment of BMC in FY2022. Refer to note 3 ‘Exceptional items’ for further information.
 
3
 
During FY2022, the Group received dividends of US$238 million from Cerrejón, which reduced completion proceeds net of transaction costs to US$50 million. On 11 January 2022, BHP completed the sale of its 33.33 per cent interest in Cerrejón to joint venture partner, Glencore plc.
 
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, royalties and commission income.
 
Recognition and measurement
Other 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. Dividend income is recognised upon declaration.