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Notes to the financial statements

4. Operating profit from subsidiaries and joint ventures

US$ million 2009 2008
Group revenue 20,858 26,311
Cost of sales(1) (15,280) (15,551)
Gross profit 5,578 10,760
Selling and distribution costs (1,590) (1,631)
Administrative expenses (1,603) (1,643)
Other gains and losses (see below) 527 (424)
Exploration expenditure (see note 5) (172) (212)
Operating profit from subsidiaries and joint ventures 2,740 6,850
(1)
Includes operating special items of $2,275 million (2008: $352 million), see note 7.
US$ million 2009 2008
Operating profit is stated after charging:    
Depreciation of tangible assets (see note 14) 1,711 1,505
Amortisation of intangible assets (see note 13) 14 4
Rentals under operating leases 114 210
Research and development expenditure 34 36
Operating special items(1) 2,275 352
Employee costs (see note 6) 3,734 3,281
Adjustment due to provisional pricing(2) (507) 764

   
Other gains and losses comprise:    
Operating remeasurements(1) 638 (779)
  Net gain/(loss) on non-hedge derivatives 757 (696)
  Realised loss on derivatives relating to capital expenditure (105) (120)
  Other remeasurements (14) 37
Other fair value gains/(losses) on derivatives - realised 83 (147)
Foreign currency (losses)/gains on other monetary items (195) 501
Gains on valuation of biological assets 1 1
Total other gains and losses 527 (424)
(1)
Special items and remeasurements are set out in note 7.
(2)
Provisionally priced contracts resulted in a total (realised and unrealised) gain in revenue of $563 million (2008: $865 million loss) and total (realised and unrealised) loss in operating costs of $56 million (2008: $101 million gain).
US$ million 2009 2008
Auditors' remuneration    
Audit    
United Kingdom 3 3
Overseas 8 7
Other services provided by Deloitte(1)    
United Kingdom 8 2
Overseas 2 2
(1)
'Other services provided by Deloitte' includes charges incurred in respect of the interim review, $6.5 million for services relating to bid defence and $0.4 million for services required to be undertaken by Deloitte in their capacity as auditors.

A more detailed analysis of auditors' remuneration is provided below:

  2009
  Paid/payable to Deloitte   Paid/payable to auditor (if not Deloitte)
US$ million United Kingdom Overseas Total   Overseas
Statutory audit services(1)          
Anglo American plc Annual Report paid to the Company's auditor 1.9 - 1.9   -
           
Subsidiary entities - for purposes of Anglo American plc Annual Report - 3.7 3.7   0.1
Subsidiary entities - additional local statutory requirements 0.8 4.1 4.9   0.5
Subsidiary entities - total 0.8 7.8 8.6   0.6
Total 2.7 7.8 10.5   0.6
Other services(1)          
Other services pursuant to legislation 0.7 0.6 1.3   -
Tax services 0.2 0.4 0.6   0.3
Internal audit services - - -   0.4
Other 6.9(2) 0.9 7.8   0.6
Total 7.8 1.9 9.7   1.3
(1)
$0.1 million was paid/payable in respect of the audit of Group pension schemes.
(2)
Includes $6.5 million for services relating to bid defence and $0.4 million for services required to be undertaken by Deloitte in their capacity as auditors.
  2008
  Paid/payable to Deloitte   Paid/payable to auditor (if not Deloitte)
US$ million United Kingdom Overseas Total   Overseas
Statutory audit services(1)          
Anglo American plc Annual Report paid to the Company's auditor 2.2 - 2.2   -
           
Subsidiary entities - for purposes of Anglo American plc Annual Report - 3.6 3.6   0.1
Subsidiary entities - additional local statutory requirements 0.6 3.8 4.4   0.5
Subsidiary entities - total 0.6 7.4 8.0   0.6
Total 2.8 7.4 10.2   0.6
Other services(1)          
Other services pursuant to legislation 0.6 0.5 1.1   -
Tax services 0.2 0.6 0.8   -
Internal audit services - - -   0.4
Corporate finance 0.1 - 0.1   -
Other 0.5(2) 1.2 1.7   0.2
Total 1.4 2.3 3.7   0.6
(1)
$0.1 million was paid/payable in respect of the audit of Group pension schemes.
(2)
Includes $0.4 million for services required to be undertaken by Deloitte in their capacity as auditors.

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Annual Report 2009