CSL Ltd Annual Report 2019

CSL Limited Annual Report 2019 116 Notes to the Financial Statements Efficiency of Operation Note 14: Cash and Cash Equivalents, Cash Flows 2019 US$m 2018 US$m Reconciliation of cash and cash equivalents Cash at bank and on hand 653.8 572.5 Cash deposits 4.0 242.2 Less bank overdrafts – (2.0) Total cash and cash equivalents 657.8 812.7 Reconciliation of Profit after tax to Cash Flows from Operations Profit after tax 1,918.7 1,728.9 Non-cash items in profit after tax: Depreciation, amortisation and impairment charges 375.5 296.7 Loss on disposal of property, plant and equipment (0.8) 3.4 Gain/(loss) on sale of assets – (3.8) Share-based payments expense 52.0 30.1 Changes in assets and liabilities: Increase in trade and other receivables (367.1) (304.8) Increase in inventories (367.0) (138.0) (Increase)/decrease in retirement benefit assets (2.1) 1.3 (Increase)/decrease in net tax assets (98.7) 127.7 Increase in trade and other payables 113.1 128.8 (Decrease)/increase in deferred government grants (1.4) 3.3 Increase in provisions 17.2 24.8 Increase in retirement benefit liabilities 5.0 3.7 Net cash inflow from operating activities 1,644.4 1,902.1 Non-cash financing activities Acquisition of plant and equipment by means of finance leases 3.4 1.6 Cash, cash equivalents and bank overdrafts Cash and cash equivalents are held for the purpose of meeting short term cash commitments rather than for investment or other purposes. They are made up of: • Cash on hand. • At call deposits with banks or financial institutions. • Investments in money market instruments with original maturities of six months or less, that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. For the purposes of the cash flow statement, cash at the end of the financial year is net of bank overdraft amounts. Cash flows are presented on a gross basis. The GST component of cash flows arising from investing and financing activities that are recoverable from or payable to a taxation authority are presented as part of operating cash flows.