ArcelorMittal South Africa 2007 Annual Report Page 104 Group Company
2007
Rm
2006
Rm
2007
Rm
2006
Rm
 7.     REVENUE Sale of goods
29 330
25 363
25 753
22 574
 Gains/(losses) on derivative instruments in designated cash flow hedge accounting relationships
3
(13)
1
(7)
29 333
25 350
25 754
22 567
 8. PROFIT FROM OPERATIONS Profit from operations has been arrived at after charging: Amortisation of intangible assets
11
16
9
14
 Depreciation
1 088
1 080
743
758
 – Buildings and infrastructure
52
42
35
36
 – Machinery, plant and equipment
977
951
659
644
 – Site preparation, mining development and exploration
5
5
5
4
 – Asset retirement obligations
20
54
20
54
 – Leased asset under finance leases
34
28
24
20
 Consultancy fees
18
30
15
26
 Employee costs
2 210
2 243
2 210
2 243
 – Salaries and wages
1 971
1 917
1 971
1 917
 – Termination benefits
3
142
3
142
 – Pension and medical costs
201
167
201
167
 – Share-based payment expense
35
17
35
17
 Loss on disposal or scrapping of property, plant and equipment
31
48
31
46
 Operating lease rentals
146
151
143
151
 – Property
75
75
 – Equipment and vehicles
146
76
143
76
 Railage and transport
1 685
1 642
1 618
1 582
 Repairs and maintenance
1 847
1 699
1 515
1 344
 Research and development costs
58
54
58
54
 Reconditionable spares usage
13
23
11
19
 Write-down of inventory to net realisable value
26
22
27
22
 Auditors’ remuneration
11
10
10
9
 – Audit fees
10
9
9
8
 – Other services
1
1
1
1
 Management fees
(153)
(190)
 Directors’ remuneration
11
9
 Fair value gains transferred from equity on effective derivative instruments designated as cash flow hedges (note 32), included in(1) – Raw materials and consumables used
(5)
(48)
(6)
(47)
 – Ineffectiveness arising from effective cash flow hedges
0(2)
0(2)
0(2)
0(2)
 Impairment losses on financial assets –  Allowance for doubtful debts (reversed)/recognised on trade and other receivables (note 23)
0(2)
(3)
0(2)  
(3)
 –  Other allowances recognised on trade and other receivables (note 23)
47
3
49
5
 (Gains)/losses on derivative financial instruments designated at fair value through profit and loss, not held for trading –  Losses/(gains) on changes in the fair value of embedded derivative instruments
33
(145)
33
(145)
 (1) Excludes adjustments relating to hedge ineffectiveness that are separately disclosed. (2) Rounding to zero due to the use of numeric reporting scale format of one million. Notes to the group and company annual financial statements continued for the year ended 31 December 2007