2007 Annual Report - Sappi

US$ million 2007 2006
4.1 Operating profit continued
(Profit) loss on sale and write-off of property, plant and equipment (24) 13
Government grants towards environmental expenditure – (1)
Research and development costs 34 34
Amortisation 1 2
Cost on derecognition of loans and receivables* 15 12
4.2 Employee cost
Wages and salaries 816 813
Defined contribution plan expense (refer note 28) 18 10
Pension costs (refer note 28) 20 (1)
Post-employment benefit other than pensions expense (refer note 29) 13 12
Share-based payment expense 5 6
Other 53 38
4.3 Special items
Special items cover those items which management believe are material by nature
or amount to the year’s results and require separate disclosure in accordance with
IAS 1 paragraph 86. Such items would generally include profit and loss on disposal
of property, investments and businesses, asset impairments, restructuring charges,
natural disasters and non-cash gains or losses on the price fair value adjustment
of plantations.
925 878
Special items:
Plantation price fair value adjustment (54) (34)
Net asset impairment reversal – (31)
Restructuring provisions (released)/raised and closure costs (refer note 23) (7) 50
Pension restructuring gain – (28)
Profit on sale of assets (refer note 9) (26) –
Fire, flood, storm and related events 17 9
(70) (34)
* The cost on sale of trade receivables relates to the derecognition of trade receivables in terms of the securitisation programme in South Africa and to the sale
of letters of credit in Hong Kong.
sappi limited | 07 | annual report 97