CSL Ltd Annual Report 2020

CSL Limited Annual Report 2020 123 The following table categorises the financial liabilities into relevant maturity periods, taking into account the remaining period at the reporting date and the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows and hence will not necessarily reconcile with the amounts disclosed in the balance sheet. Contractual payments due 1 year or less US$m Between 1 year and 5 years US$m Over 5 years US$m Total US$m Average interest Rate % 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Trade and other payables (non-interest bearing) 1,525.4 1,407.7 – – – – 1,525.4 1,407.7 – – Bank loans – unsecured (floating rates) 39.9 77.4 426.8 533.6 – – 466.7 611.0 1.3% 3.1% Bank loans – unsecured (fixed rates) 36.3 28.4 141.7 180.1 73.1 73.9 251.1 282.4 1.0% 1.0% Bank overdraft – unsecured (floating rates) 43.1 – – – – – 43.1 – – – Commercial Paper Program (floating rates) 10.0 184.3 – – – – 10.0 184.3 0.4% 2.6% Senior unsecured notes (fixed rates) 104.9 238.7 1,498.9 1,503.0 2,924.1 2,041.5 4,527.9 3,783.2 2.8% 2.9% Senior unsecured notes (floating rate) 4.5 14.6 502.3 521.9 – – 506.8 536.5 0.9% 3.0% Other liabilities (fixed rates) 5.2 3.3 6.8 13.8 7.8 9.3 19.8 26.4 5.2% 4.7% 1,769.3 1,954.4 2,576.5 2,752.4 3,005.0 2,124.7 7,350.8 6,831.5 – – Floating interest rates represent the most recently determined rate applicable to the instrument at balance sheet date. All interest rates on floating rate financial assets and liabilities are subject to reset within the next six months. Fair value of financial assets and financial liabilities The carrying value of financial assets and liabilities is materially the same as the fair value. The following methods and assumptions were used to determine the net fair values of financial assets and liabilities. Cash The carrying value of cash equals fair value, due to the liquid nature of cash. Trade and other receivables/payables The carrying value of trade and other receivables/payables with a remaining life of less than one year is deemed to be equal to its fair value. Interest bearing liabilities Fair value is calculated based on the discounted expected principal and interest cash flows, using rates currently available for debt of similar terms, credit risk and remaining maturities. The Group also has external loans payable that have been designated as a hedge of its investment in foreign subsidiaries (known as a net investment hedge). An effective hedge is one that meets certain criteria. Gains or losses on the net investment hedge that relate to the effective portion of the hedge are recognised in equity. Gains or losses relating to the ineffective portion, if any, are recognised in the consolidated statement of comprehensive income. Valuation of financial instruments For financial instruments measured and carried at fair value, the Group uses the following to categorise the method used: • Level 1: Items traded with quoted prices in active markets for identical liabilities • Level 2: Items with significantly observable inputs other than quoted prices in active markets • Level 3: Items with unobservable inputs (not based on observable market data) There were no derivatives outstanding as of 30 June 2020 (30 June 2019 – nil). There were no transfers between Level 1 and 2 during the year.