4. Explanatory notes to the statement of profit or loss

in PLN millions, unless otherwise stated

Note 4.1 Expenses by nature

Note		2017	2016
9.3	Depreciation of property, plant and equipment and amortisation of intangible assets	1 684	1 718
11.1	Employee benefits expenses	4 956	4 672
	Materials and energy	7 460	7 035
	External services	2 156	2 192
5.2	Minerals extraction tax	1 765	1 338
	Other taxes and charges	506	499
	Reversal of impairment losses on property, plant and equipment and intangible assets	(344)	(2)
	Advertising costs and representation expenses	57	61
	Property and personal insurance	34	30
4.4	Impairment losses on non-current and intangible assets	92	269
	Other costs	157	185
	Total expenses by nature	18 523	17 997
	Cost of merchandise and materials sold (+)	571	436
	Change in inventories of finished goods and work in progress (+/-)	(1 079)	( 225)
	Cost of manufacturing products for internal use of the Group (-) (mainly stripping costs of surface mines)	(1 468)	(1 596)
	Costs of sales, selling costs and administrative expenses, including:	16 547	16 612
	Cost of sales	15 204	15 242
	Selling costs	371	410
	Administrative expenses	972	960

Note		2017	2016
7.1	Measurement and realisation of derivatives	231	167
7.1	Foreign exchange gains on assets and liabilities other than borrowings	-	511
	Write-off of the not yet due tax liability	-	185
	Release of unused provisions	132	43
	Other	199	169
	Total other operating income	562	1 075
7.1	Measurement and realisation of derivatives	(492)	( 371)
7.1	Exchange differences on assets and liabilities other than borrowings	(1 466)	-
4.4	Impairment loss on available-for-sale assets	-	( 57)
4.4	Impairment loss on fixed assets under construction and intangible assets not yet available for use	( 773)	(1 209)
	Other	(208)	( 240)
	Total other operating costs	(2 939)	(1 877)
	Other operating income and (costs)	(2 377)	( 802)

Note		2017	2016
7.1	Exchange differences on borrowings	1 251	-
7.1	Measurement of derivatives	-	26
	Total income	1 251	26

7.1	Interest on borrowings	(96)	( 85)
	Bank fees and charges on borrowings	(44)	( 61)
7.1	Measurement of derivatives	(30)	( 9)
7.1	Exchange differences on borrowings	-	(401)
	Unwinding of the discount effect	(50)	( 46)
	Other	( 11)	( 6)
	Total costs	(231)	( 608)

	Finance income and (costs)	(1 020)	( 582)

Note		2017	2016
	Impairment losses on assets recognised in:
	cost of sales, of which:	150	357
	impairment loss on property, plant and equipment and intangible assets	92	269
	write-down of inventories	37	83
	allowance for impairment of trade receivables	21	5
6.2	allowance for impairment of loans granted to joint ventures	-	4 394
	other operating costs, of which:	798	1 271
	impairment losses on available-for-sale financial assets	-	57
	impairment losses on fixed assets under construction and intangible assets not yet available for use	773	1 209
	allowance for impairment of loans	23	-
	allowance for impairment of other receivables	2	5
	Impairment losses, total	948	6 022

	Reversal of impairment losses on assets, recognised in:
	cost of sales, of which:	351	11
	impairment loss on property, plant and equipment and intangible assets	344	2
	write-down of inventories	5	7
	allowance for impairment of trade receivables	2	2
	other operating income, of which:	44	3
	impairment losses on fixed assets under construction and intangible assets not yet available for use	41	-
	impairment losses on available-for-sale financial assets	-	1
	allowance for impairment of other receivables	3	2
	Reversal of impairment losses, total	395	14

Financial statements