Note 8: Property, Plant and Equipment Land Buildings Leasehold improvements Plant and Equipment Right-of-use assets Capital work in progress Total 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 Cost 65 65 2,376 2,284 685 666 5,274 4,900 2,164 2,134 2,981 2,771 13,545 12,820 Accumulated depreciation — — (359) (305) (239) (206) (2,635) (2,378) (654) (579) — — (3,887) (3,468) Net carrying amount 65 65 2,017 1,979 446 460 2,639 2,522 1,510 1,555 2,981 2,771 9,658 9,352 Net carrying amount at the start of the year 65 36 1,979 1,522 460 415 2,522 1,962 1,555 1,292 2,771 3,082 9,352 8,309 Transfers — — 124 502 25 79 469 789 — — (618) (1,370) — — Additions — — — 10 — 1 9 24 67 372 830 1,065 906 1,472 Acquisition of CSL Vifor — 42 — 48 — 3 — 68 — 40 — 18 — 219 Disposals — (13) — (31) — (9) (21) (11) — (26) — — (21) (90) Depreciation for the year — — (63) (61) (35) (30) (323) (297) (107) (102) — — (528) (490) Transferred to assets held for sale (Note 15) — — (23) — (3) — (20) — (3) — (4) — (53) — Currency translation differences — — — (11) (1) 1 3 (13) (2) (21) 2 (24) 2 (68) Net carrying amount at the end of the year 65 65 2,017 1,979 446 460 2,639 2,522 1,510 1,555 2,981 2,771 9,658 9,352 Property, plant and equipment Land, buildings, capital work in progress and plant and equipment assets are recorded at historical cost less, where applicable, depreciation. Right-of-use assets are measured at cost, less accumulated depreciation, impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities and restoration obligations recognised less any lease incentives received and initial direct costs. Depreciation is recognised on a systematic basis over the estimated useful life of the asset, generally on a straight-line basis. Buildings 5 – 50 years Plant and equipment 3 – 40 years Leasehold improvements 3 – 25 years Right-of-use assets – Plasma centres 5 – 40 years – Office and warehouses 1 – 39 years – Land 40 – 101 years The unit-of-production depreciation method, based on the expected use or output as the asset is being used, may be applied during the early stages of operation of manufacturing facilities, as a substantial period of time may be required to ramp up the production and operate at intended capacity. This method is to be applied consistently from period to period unless there is a change in the expected pattern of consumption of those future economic benefits. Assets’ residual values and useful lives are reviewed and adjusted if appropriate at each reporting date. Items of property, plant and equipment are derecognised upon disposal or when no further economic benefits are expected from their use or disposal. Impairment testing for property, plant and equipment will be performed if an impairment trigger is identified. Leasehold improvements The cost of improvements to leasehold properties is amortised over the unexpired period of the lease or the estimated useful life of the improvement, whichever is the shorter. Right-of-use assets The Group principally has leases for plasma centres, office buildings, land, manufacturing facilities and warehouses. The recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Further details about the Group's leases are contained in Note 10(d). Other arrangements CSL has leased a recombinant protein facility in Lengnau to Thermo Fisher Scientific (TFS), which has a 20 year term with two five year extension options. The lease has been accounted for as an operating lease and the leased property, plant and equipment continue to be presented in the balance sheet. The total future operating lease payments due from TFS (excluding extension options and variable lease payments) were $434m as at 30 June 2024 (2023: $448m). 124 Notes to the Financial Statements Limited Annual Report 2023/24
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