Note 13: Commitments and Contingencies a. Capital Commitments Commitments in relation to capital expenditure contracted but not recognised in the consolidated balance sheet are payable as follows: Capital Commitments 2025 2024 US$m US$m Not later than one year 245 301 Later than one year but not later than five years 22 67 Total 267 368 b. Contingent assets and liabilities Litigation In the ordinary course of business, the Group is exposed to contingent liabilities related to litigation for breach of contract and other claims. Contingent liabilities occur when the possibility of a future settlement of economic benefits is considered to be less than probable but more likely than remote. If the expected settlement of the liability becomes probable, a provision is recognised. Contingent liabilities recognised in connection with past business combinations are recorded within provisions at the higher of fair value and the amount recognised on acquisition date until the liability has been extinguished. Other contingent assets and liabilities The Group has entered into collaboration arrangements, including in-licensing arrangements with various companies. Such collaboration agreements may require the Group to make payments on achievement of stages of development, launch or revenue milestones and may include variable payments that are based on unit sales or profit (e.g. royalty and profit share payments). The amount of variable payments under the arrangements are inherently uncertain and difficult to predict, given the direct link to future sales, profit levels and the range of outcomes. The maximum potential unrecognised future milestone payments could amount to $7,749m in the event each related product reached its full commercial potential (2024: $7,835m). These amounts are undiscounted and are not risk-adjusted, which include all such possible payments that can arise assuming all products currently in development are successful and all possible performance objectives are met. The Group also has certain take or pay arrangements with contract manufacturers or service providers which serve as commercial manufacturers and suppliers for certain products. To the extent a commitment is determined to be onerous, these are provided for within provisions in the consolidated balance sheet. 117 117 CSL Limited Annual Report 2024/25
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