6.3.5Expenses by Nature

Year-on-year, expenses on construction contracts sharply decreased as a result from the market slowdown and the lower activity on the Company’s finance lease project under construction, which are nearing completion FPSOs Cidade de Maricá, Cidade de Saquarema and Turritella.

The table below sets out expenses by nature for all items included in EBIT for the years 2015 and 2014:

Information on the nature of expenses




Expenses on construction contracts



Employee benefit expenses




Depreciation, amortisation and impairment



Selling expenses



Other costs



Total expenses



Employee benefit expenses came down during the period following the workforce reduction which ranged 2,000 positions over the period 2014 to 2015, including 700 positions on subsidiaries consolidated using the full consolidation method and 1300 positions on joint ventures and associates accounted for using the equity method.

The line ‘Other costs’ includes US$ 245 million for non-recurring provision for settlement in Brazil and US$ 89 million release of accruals for sales consultancy fees (please refer to 6.3.1).

In 2014, the line ‘Other costs’ includes the US$ 240 million settlement cost with the Dutch Public Prosecutor’s Office.