Note 18: Detailed Information – People Costs continued Movements in accrued benefits and assets During the financial year the value of accrued benefits increased by $516m, mainly attributable to: • CSL Vifor accrued benefits assumed on acquisition date of $424m; • Service costs charged to the profit and loss of $53m; • Interest costs of $24m, from the discount rate on benefit obligations and anticipated benefit payments; • Employee contributions of $24m; • Unfavourable foreign currency movements of $68m taken directly to the Foreign Currency Translation Reserve; • Offsetting these movements were decreases from: – Benefits paid by the plans of $48m; – Actuarial adjustments, generating a decrease in accrued benefits of $33m. During the financial year, plan assets increased by $502m, mainly attributable to: • CSL Vifor plan assets acquired on acquisition date of $424m; • Employer and employee contributions of $69m and investment returns that increased plan assets by $21m; • Favourable foreign currency movements of $56m taken directly to the Foreign Currency Translation Reserve; • Favourable asset ceiling movements of $9m; • Offsetting these movements were decreases from: – Benefits paid by the plans of $44m; – Actuarial adjustments, generating a decrease in plan assets of $34m. The major categories of total plan assets are as follows: 2023 US$m 2022 US$m Cash 9 27 Instruments quoted in active markets: Equity instruments 551 252 Bonds 354 246 Unquoted investments – property 341 200 Other assets 103 32 Asset ceiling adjustment25 (175) (76) Total Plan Assets 1,183 681 The actuarial assumptions, expressed as weighted averages, at the reporting dates are: 2023 % 2022 % Discount rate 2.3% 2.0% Future salary increases 2.7% 2.3% Future pension increases 0.3% 0.4% The variable with the most significant impact on the defined benefit obligation is the discount rate applied in the calculation of accrued benefits. A decrease in the average discount rate applied to the calculation of accrued benefits of 0.25% would increase the defined benefit obligation by $43m. An increase in the average discount rate of 0.25% would reduce the defined benefit obligation by $41m. The defined benefit obligation will be discharged over an extended period as members exit the plans. The plan actuaries have estimated that the following payments will be required to satisfy the obligation. The actual payments will depend on the pattern of employee exits from the Group’s plans. Estimated defined benefit plan payments (actuarial assumption) as at 30 June: 2023 US$m 2022 US$m Within one year 76 48 Between two and five years 293 175 Between five and ten years 360 84 Beyond ten years 652 558 CSL Limited Annual Report 2022/23 153
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