Note 3: Restructuring and Impairment Expenses The table below outlines the nature of costs associated with restructuring programs and other impairment expenses incurred during the year ended 30 June 2026. 2026 US$m Employee-benefit expenses 346 Impairment of PPE and right-of-use assets related to restructuring activities 198 Loss on disposal and other charges related to PPE and right-of-use assets 51 Other costs related to restructuring activities 204 Total restructuring expenses (a) 799 Impairment of CSL Vifor Goodwill 1,700 Impairment of Ferinject IP 1,548 Impairment of Venofer IP 738 Impairment of Mircera IP 301 Impairment of Velphoro IP 175 Impairment of Tavneos IP and associated expenses 166 Impairment of sa-mRNA IP and associated expenses 590 Impairment of other intangible assets 274 Impairment of Lengnau PPE 931 Impairment of other PPE 499 Impairment of other assets 54 Onerous contract costs 148 Impairment and associated expenses unrelated to restructuring activities (b) 7,124 Total restructuring and impairment expenses 7,923 (a) Restructuring expenses During the year ended 30 June 2026, the Group incurred restructuring costs of $799m as part of a broader global strategic realignment. These activities relate to several transformational initiatives that will reshape and simplify the business, renew the Group’s focus on its core strengths, and ultimately deliver greater returns to stakeholders. Restructuring costs consist of employee termination payments, impairment charges, loss on disposal related to PPE and right-of-use assets, decommissioning costs, consultancy fees and other expenses. The Group recognised impairment charges of $198m relating to assets impacted by restructuring initiatives, including the rationalisation of the R&D geographic footprint and the closure of selected plasma centres. These charges primarily reflect changes in the use of certain right-of-use assets and PPE. The cash flow impact associated with restructuring activities for the year ended 30 June 2026 is approximately $339m. Refer also to Note 15, which includes restructuring-related provisions expected to be substantially utilised during the year ending 30 June 2027. (b) Impairment and associated expenses unrelated to restructuring activities During the year ended 30 June 2026, the Group identified impairment indicators for certain goodwill and other intangible assets, property, plant and equipment, right-of-use assets and other non-current assets. These indicators principally related to adverse changes in commercial outlook, timing of the entry of generic competition, regulatory developments, market conditions and site utilisation assumptions. Where impairment indicators were identified, the recoverable amount was estimated as the higher of value in use and fair value less costs of disposal. Impairment losses were recognised where carrying amounts exceeded recoverable amounts. Valuation methodology and key assumptions: Recoverable amounts were determined primarily using value-in-use models, based on forecast cash flows for the relevant asset or cash generating unit (CGU). The forecast cash flows are based on Boardapproved budgets and the latest long-range planning (LRP) assumptions, considering competitive pricing dynamics, generic entry, regulatory factors, reimbursement arrangements and other asset-specific risks. Forecast cash flows and discount rates are applied on a post-tax basis. Property, plant and equipment: Recoverable amounts for property, plant and equipment were generally determined as part of the relevant CGU impairment assessment using value-in-use models based on forecast cash flows. Where impairment indicators were identified for specific assets, recoverable amounts were determined at the lowest level of identifiable cash inflows associated with those assets. Impairment losses were recognised where carrying values exceeded recoverable amounts. Identifiable intangible assets: For commercialised and in-progress product intellectual property (IP), recoverable amounts were primarily determined using value-in-use models based on forecast cash flows over the expected economic life of the asset. Where development or commercialisation activities were terminated during the year and the asset has no material future economic benefits or recoverable value, the related IP assets were fully impaired. 99 Notes to the Financial Statements 99 CSL Limited Annual Report 2025/26
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