4. Explanatory notes to the statement of profit or loss
in PLN millions, unless otherwise stated
Note 4.1. Expenses by nature
| from 1 January 2018 to 31 December 2018 | from 1 January 2017 to 31 December 2017 | ||
|---|---|---|---|
| Note 9.3 | Depreciation of property, plant and equipment and amortisation of intangible assets | 1 173 | 1 072 |
| Note 11.1 | Employee benefits expenses | 3 324 | 3 210 |
| Materials and energy, including: | 5 312 | 5 831 | |
| Purchased metal-bearing materials | 3 040 | 3 750 | |
| Electrical and other energy | 803 | 775 | |
| External services, including: | 1 649 | 1 531 | |
| Transport | 216 | 215 | |
| Repairs, maintenance and servicing | 511 | 446 | |
| Mine preparatory work | 477 | 437 | |
| Note 5.2 | Minerals extraction tax | 1 671 | 1 765 |
| Note 5.2 | Other taxes and charges | 412 | 389 |
| Advertising costs and representation expenses | 43 | 37 | |
| Property and personal insurance | 23 | 21 | |
| Other costs | 26 | 68 | |
| Total expenses by nature | 13 633 | 13 924 | |
| Cost of merchandise and materials sold (+) | 177 | 182 | |
| Change in inventories of products and work in progress (+/-) | (236) | ( 1 097) | |
| Cost of products for internal use (-) | (114) | (110) | |
| Total cost of sales, selling costs and administrative expenses, including: | 13 460 | 12 899 | |
| Cost of sales | 12 537 | 12 022 | |
| Selling costs | 115 | 112 | |
| Administrative expenses | 808 | 765 |
Note 4.2. Other operating income/(costs)
| from 1 January 2018 to 31 December 2018 | from 1 January 2017 to 31 December 2017 | ||
|---|---|---|---|
| Note 7.2 | Measurement and realisation of derivatives | 167 | 226 |
| Exchange differences on assets and liabilities other than borrowings | 386 | - | |
| Interest on loans granted and other financial receivables | 244 | 310 | |
| Fees and charges on re-invoicing of bank guarantees costs securing payments of liabilities | 53 | 51 | |
| Reversal of allowances for impairment of loans due to restructuring of intra-group financing | 778 | N/A* | |
| Reversal of allowances for impairment of loans measured at amortised cost | 183 | N/A* | |
| Reversal of impairment losses on shares in subsidiaries | 402 | - | |
| Reversal of allowances for impairment of loans recognised at the moment of initial recognition | 85 | N/A* | |
| Fair value gains on financial assets measured at fair value through profit or loss | 184 | N/A* | |
| Dividends income | 239 | 4 | |
| Other | 78 | 89 | |
| Total other operating income | 2 799 | 680 | |
| Note 7.2 | Measurement and realisation of derivatives | (303) | ( 439) |
| Losses due to initial recognition of POCI loans due to restructuring of intra-group financing | (763) | N/A* | |
| Allowance for impairment of loans under IFRS 9 | (4) | N/A* | |
| Allowance for impairment of loans under IAS 39 | N/A* | (606) | |
| Fair value losses on financial assets measured at fair value through profit or loss | (247) | N/A* | |
| Exchange differences on assets and liabilities other than borrowings | - | (1 179) | |
| Impairment losses on shares and investment certificates in subsidiaries | (47) | (330) | |
| Provisions recognised | (162) | (23) | |
| Other | ( 124) | ( 107) | |
| Total other operating costs | (1 650) | (2 684) | |
| Other operating income and (costs) | 1 149 | (2 004) | |
* N/A – not applicable – items which were not measured in accordance with principles arising from the application, from 1 January 2018, of IFRS 9
Note 4.3. Finance income/(costs)
| from 1 January 2018 to 31 December 2018 | from 1 January 2017 to 31 December 2017 | ||
|---|---|---|---|
| Exchange differences on borrowings | - | 1 247 | |
| Note 7.2 | Measurement of derivatives | 11 | - |
| Total income | 11 | 1 247 | |
| Interest on borrowings | ( 127) | (113) | |
| Bank fees and charges on borrowings | ( 23) | ( 28) | |
| Exchange differences on borrowings | (592) | - | |
| Unwinding of the discount | ( 43) | ( 43) | |
| Note 7.2 | Measurement and realisation of derivatives | - | ( 30) |
| Total costs | (785) | ( 214) | |
| Finance income and (costs) | (774) | ( 1 033) | |
Note 4.4 Recognition / reversal of impairment losses on assets recognised in the statement of profit or loss
| | from 1 January 2018 to 31 December 2018 | from 1 January 2017 to 31 December 2017 |
|---|---|---|
| Impairment losses on assets recognised in: | ||
| cost of sales, of which: | 5 | 25 |
| write-down of inventories | 5 | 24 |
| allowance for impairment of trade receivables | - | 1 |
| other operating costs, of which: | 836 | 941 |
| initial recognition of POCI loans as a result of restructurisation of intra-group financing | 763 | N/A* |
| impairment losses on fixed assets under construction and intangible assets not yet available for use | 11 | 4 |
| impairment losses on shares and investment certificates in subsidiaries | 47 | 330 |
| allowance for impairment of loans under IFRS 9 | 4 | N/A* |
| allowance for impairment of loans under IAS 39 | N/A* | 606 |
| allowance for impairment of trade receivables | 8 | - |
| allowance for impairment of other financial receivables | 3 | 1 |
| Impairment losses, total | 841 | 966 |
| | | |
| Reversal of impairment losses on assets recognised in: | ||
| cost of sales, of which: | 28 | - |
| write-down of inventories | 28 | - |
| other operating income, of which: | 1 452 | 2 |
| impairment loss on shares in subsidiaries | 402 | - |
| allowance for impairment of loans as result of restructurisation of intra-group financing | 778 | N/A* |
| allowances for impairment of loans measured at amortised cost | 183 | N/A* |
| allowance for impairment of loans recognised at the moment of initial recognition (POCI) | 85 | N/A* |
| allowance for impairment of other financial receivables | 2 | - |
| allowance for impairment of other non-financial receivables | 2 | 2 |
| Reversal of impairment losses, total | 1 480 | 2 |
* N/A – not applicable – items which were not measured in accordance with principles arising from the application, from 1 January 2018,
of IFRS 9.