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4. Operating profit from subsidiaries and joint ventures

US$ million 2008 2007
Group revenue 26,311 25,470
Cost of sales(1) (15,551) (14,095)
Gross profit – continuing operations 10,760 11,375
Selling and distribution costs (1,631) (1,453)
Administrative expenses (1,643) (1,510)
Other gains and losses (see below) (424) 17
Exploration expenditure (see note 5) (212) (157)
Operating profit from subsidiaries and joint ventures –
continuing operations
6,850 8,272
(1)
Includes special items of $352 million (2007: $251 million), see note 7.
US$ million 2008 2007
Operating profit is stated after charging:
Depreciation of tangible assets (see note 14) 1,505 1,396
Amortisation of intangible assets (see note 13) 4 2
Rentals under operating leases 210 183
Research and development expenditure 36 41
Operating special items(1) 352 251
Employee costs (see note 6) 3,281 3,691
Adjustment due to provisional pricing(2) 764 4
 
Other gains and losses comprise:
Fair value (losses)/gains on derivatives – unrealised (698) 5
Fair value losses on derivatives relating to capital expenditure –
realised
(120)
Other fair value losses on derivatives – realised (108)
Foreign currency gains/(losses) on other monetary items 501 (4)
Gains on valuation of biological assets 1 16
On initial recognition
Change in fair value less estimated point of sale costs 1 16
 
Total other gains and losses (424) 17
(1)
For further information on special items and remeasurements see note 7.
(2)
Provisionally priced contracts resulted in a total (realised and unrealised) loss in revenue of $865 million (2007: $38 million gain) and gain in operating costs of $101 million (2007: $34 million loss).
US$ million 2008 2007
Auditors' remuneration – continuing operations
Audit
United Kingdom 3 3
Overseas 7 7
Other services provided by Deloitte(1)
United Kingdom 2 2
Overseas 2 2
(1)
'Other services provided by Deloitte' includes charges incurred in respect of the interim review.

A more detailed analysis of auditors' remuneration for the total Group is provided below:

  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 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. Other services to these schemes amounted to nil.
  2007
 

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


4.8

4.8

0.1
Subsidiary entities – additional local
statutory requirements
0.5 4.6 5.1
Subsidiary entities – total 0.5 9.4 9.9 0.1
Total 2.7 9.4 12.1 0.1
Other services(1)
Other services pursuant to legislation 0.7 0.5 1.2
Tax services 0.4 0.7 1.1 0.1
Corporate finance 0.1 0.1
Other 0.9 1.1 2.0 0.2
Total 2.0 2.4 4.4 0.3
(1)
$0.1 million was paid/payable in respect of the audit of Group pension schemes. Other services to these schemes amounted to $0.1 million.

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