CSL Ltd Annual Report 2019

CSL Limited Annual Report 2019 115 Note 13: Commitments and Contingencies 7 (a) Commitments Operating leases entered into relate predominantly to leased land and rental properties. The leases have varying terms and renewal rights. Rental payments under the leases are predominantly fixed, but generally contain inflation escalation clauses. Finance leases entered into relate predominantly to leased plant and equipment. The leases have varying terms but lease payments are generally fixed for the life of the agreement. In some instances, at the end of the lease term the Group has the option to purchase the equipment. No operating or finance lease contains restrictions on financing or other leasing activities. Commitments in relation to non-cancellable operating leases, finance leases and capital expenditure contracted but not provided for in the financial statements are payable as follows: Operating Leases US$m Finance Leases US$m Capital Commitments US$m Total US$m 2019 2018 2019 2018 2019 2018 2019 2018 Not later than one year 77.1 64.5 3.8 3.7 802.0 532.2 882.9 600.4 Later than one year but not later than five years 288.6 242.5 10.9 10.4 148.4 151.5 447.9 404.4 Later than five years 369.3 466.5 12.1 14.5 – – 381.4 481.0 Sub-total 735.0 773.5 26.8 28.6 950.4 683.7 1,712.2 1,485.8 Future finance charges – – (4.2) (5.1) – – (4.2) (5.1) Total 735.0 773.5 22.6 23.5 950.4 683.7 1,708.0 1,480.7 The present value of finance lease liabilities is as follows: 2019 US$m 2018 US$m Not later than one year 3.1 3.0 Later than one year but not later than five years 8.7 7.9 Later than five years 10.8 12.6 Total 22.6 23.5 (b) Contingent assets and liabilities Litigation The Group is involved in litigation in the ordinary course of business, including litigation for breach of contract and other claims. In certain cases, the Group has recognized a legal provision (see Note 16) which would be utilised should any settlements be required. The Group remains subject to certain patent infringement actions brought by competitors. CSL is highly confident in our intellectual property positions which are the product of more than a decade of innovative research by the Group. The Company is vigorously defending against the claims. 7 Commitments and contingencies are disclosed net of the amount of GST (or equivalent) recoverable from, or payable to, a taxation authority.