CSL Ltd Annual Report 2021

The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognised as an expense in the period in which the event or condition that triggers the payment occurs. Subsequent to initial recognition, lease liabilities are measured at amortised cost. Lease liabilities are remeasured if there is a modification, such as a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. The Group’s lease liabilities are inclusive of extension options the Group is reasonably certain to exercise based upon our judgement as of the reporting date. Lease extension options that the Group is not reasonably certain to exercise as of the reporting date are appropriately excluded from the lease liabilities. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew (e.g., a change in business strategy). Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemption to leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption, which relates to leases such as office photocopiers, gas storage cylinders, and other miscellaneous low value assets. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term. 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 % 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Trade and other payables (non-interest bearing) 2,039.7 1,525.4 – – – – 2,039.7 1,525.4 – – Bank loans – unsecured (floating rates) 31.2 39.9 36.4 426.8 – – 67.6 466.7 1.8% 1.3% Bank loans – unsecured (fixed rates) 38.1 36.3 148.7 141.7 40.8 73.1 227.6 251.1 1.0% 1.0% Bank overdraft – unsecured (floating rates) 78.7 43.1 – – – – 78.7 43.1 – – Commercial paper (floating rates) – 10.0 – – – – – 10.0 0.4% 0.4% Senior unsecured notes (fixed rates) 350.7 104.9 1,343.6 1,498.9 2,768.7 2,924.1 4,463.0 4,527.9 2.8% 2.8% Senior unsecured notes (floating rates) 5.0 4.5 507.6 502.3 – – 512.6 506.8 1.0% 0.9% Lease liabilities (fixed rates) 108.7 91.0 365.1 331.7 1,095.6 891.0 1,569.4 1,313.7 2.9% 2.5% Other borrowings (fixed rates) 7.4 5.2 5.6 6.8 6.1 7.8 19.1 19.8 5.2% 5.2% 2,659.5 1,860.3 2,407.0 2,908.2 3,911.2 3,896.0 8,977.7 8,664.5 CSL Limited Annual Report 2020/21 131