Geographical areas of operation The Group operates predominantly in Australia, the USA, Germany, the United Kingdom, Switzerland and China (including Hong Kong). The rest of the Group’s operations are spread across many countries and are collectively disclosed as "Rest of World". Intersegment sales are carried out on an arm’s length basis. Geographic areas Australia United States Germany UK Switzerland China and Hong Kong Rest of World Total US$m US$m US$m US$m US$m US$m US$m US$m 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Total operating revenue 900 1,045 7,294 6,563 873 869 744 717 318 488 747 779 3,924 2,849 14,800 13,310 PPE, right-of-use assets and intangible assets (excluding goodwill) 2,147 1,918 4,350 4,284 1,309 1,273 332 329 9,420 9,478 17 80 350 357 17,925 17,719 Note 2: Revenue and Expenses Recognition and measurement of revenue and other income Revenue is recognised when the Group satisfies a performance obligation by transferring control of the promised good or service to a customer at an amount that reflects the consideration to which an entity expects to be entitled in exchange for the goods or services. Revenue from contracts with customers includes amounts in total operating revenue. Further information about each source of revenue from contracts with customers and the revenue recognition criteria follows. Sales: Revenue is earned (constrained by variable considerations, which include returns, discounts, rebates and allowances) from the sale of products and services. Sales are recognised when performance obligations are either satisfied over time or at a point in time. Generally the supply of product under a contract with a customer will represent the satisfaction of a performance obligation at a point in time, which is when control of the product passes to the customer. Key Judgements and Estimates Significant estimates on CSL Seqirus sales returns are performed in respect of the influenza season expected to be subject to return. The estimate is performed with inputs including historical returns and customer sales data amongst other factors. Royalties: Revenue from licensees of CSL intellectual property (included within 'other' revenue in the product and service table below) reflect a right to use the intellectual property as it exists at the point in time in which the license is granted. Where consideration is based on sales of product by the licensee, it is recognised when the customer’s subsequent sales of product occurs. License revenue: Revenue from licensees of CSL intellectual property (included within 'other' revenue in the product and service table below) reflects the transfer of a right to use the intellectual property as it exists at the point in time in which the license is transferred to the customer. Consideration is highly variable and estimated using the most likely amount method. Subsequently, the estimate is constrained until it is highly probable that a significant revenue reversal will not occur when the uncertainty is resolved. Revenue is recognised as or when the performance obligations are satisfied. Influenza pandemic facility reservation fees: Revenue from governments (included within 'pandemic' revenue in the product and service table below) in return for access to influenza manufacturing facilities in the event of a pandemic. Contracts are timebased and revenue is recognised progressively over the life of the relevant contract, which aligns to the performance obligations being satisfied. Other income: Other income is realised from activities that are outside of the ordinary business, such as the disposal of property, plant and equipment and rental income. Revenue from contracts with customers includes amounts in total operating revenue except other income. 115
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