2007 Financial statements

Note 3 - Net operating costs

	Note	2007 US$m	2006 US$m
Raw materials and consumables		6,096	3,207
Amortisation of intangible assets	12	114	27
Depreciation of property, plant & equipment	13	2,001	1,482
Employment costs	4	3,827	2,459
Repairs and maintenance		1,393	1,257
Shipping costs		1,874	1,149
Other freight costs		509	333
Decrease/(increase) in inventories		110	(139)
Royalties		1,093	1,004
Amounts charged by jointly controlled entities mainly for toll processing		1,362	1,196
Other external costs		2,346	1,936
Provisions	27	308	60
Research and development		69	15
Costs included above qualifying for capitalisation		(78)	(69)
Other operating income		(274)	(267)
Net operating costs (excluding items shown separately)		20,750	13,650


Notes	Expand
Total net operating costs includes the impact of Alcan for the period 24 October 2007 to 31 December 2007, totalling US$3,691 million. Information on auditors' remuneration is included in note 44.