Discontinued operations (Tables)

12 Months Ended

Jun. 30, 2019

Exceptional items are those gains or losses where their nature, including the expected frequency of the events giving rise to them, and amount is considered material to the Financial Statements. Such items included within the Group’s profit from Continuing operations for the year are detailed below. Exceptional items attributable to Discontinued operations are detailed in note 27 ‘Discontinued operations’:

Year ended 30 June 2019

Gross

Tax

Net

US$M

Exceptional items by category

Samarco dam failure

(1,060

)

–

(1,060

)

Global taxation matters

–

242

Total

(1,060

)

242

(818

)

Attributable to non-controlling interests

–

Attributable to BHP shareholders

(1,060

)

242

(818

)


Year ended 30 June 2018	Gross			Tax			Net
	US$M			US$M			US$M

Exceptional items by category
Samarco dam failure		(650	)		–		(650)
US tax reform		–			(2,320	)	(2,320)

Total		(650	)		(2,320	)	(2,970)

Attributable to non-controlling interests		–			–		–
Attributable to BHP shareholders		(650	)		(2,320	)	(2,970)


Year ended 30 June 2017	Gross			Tax			Net
	US$M			US$M			US$M

Exceptional items by category
Samarco dam failure		(381	)		–			(381	)
Escondida industrial action		(546	)		179			(367	)
Cancellation of the Caroona exploration licence		164			(49	)		115
Withholding tax on Chilean dividends		–			(373	)		(373	)

Total		(763	)		(243	)		(1,006	)

Attributable to non-controlling interests – Escondida industrial action		(232	)		68			(164	)
Attributable to BHP shareholders		(531	)		(311	)		(842	)

Summary of Income Statement - Discontinued Operations

Income statement – Discontinued operations


	2019			2018			2017
	US$M			US$M			US$M
Revenue		851			2,171			2,150
Other income		94			34			74
Expenses excluding net finance costs		(729	)		(5,790	)		(3,025	)

Profit/(loss) from operations		216			(3,585	)		(801	)

Financial expenses		(8	)		(22	)		(14	)

Net finance costs		(8	)		(22	)		(14	)

Profit/(loss) before taxation		208			(3,607	)		(815	)

Income tax (expense)/benefit		(33	)		686			343

Profit/(loss) after taxation from operating activities		175			(2,921	)		(472	)

Net loss on disposal		(510	)		–			–

Loss after taxation		(335	)		(2,921	)		(472	)

Attributable to non-controlling interests		7			26			13
Attributable to BHP shareholders		(342	)		(2,947	)		(485	)

Basic loss per ordinary share (cents)		(6.6	)		(55.4	)		(9.1	)
Diluted loss per ordinary share (cents)		(6.6	)		(55.4	)		(9.1	)

Summary of Cash Flows from Discontinued Operations

Cash flows from Discontinued operations


	2019			2018			2017
	US$M			US$M			US$M
Net operating cash flows		474			900			928
Net investing cash flows ⁽¹⁾		(443	)		(861	)		(437	)
Net financing cash flows ⁽²⁾		(13	)		(40	)		(28	)

Net increase/(decrease) in cash and cash equivalents from Discontinued operations		18			(1	)		463

Net proceeds received from the sale of Onshore US		10,531			–			–
Less Cash and cash equivalents		(104	)		–			–

Proceeds from divestment of Onshore US, net of its cash		10,427			–			–

Total cash impact		10,445			(1	)		463

⁽¹⁾	Includes purchases of property, plant and equipment of US$443 million (2018: US$900 million; 2017: US$555 million) less proceeds from sale of assets of US$ nil (2018: US$39 million; 2017: US$118 million).

⁽²⁾

Includes net repayment of interest bearing liabilities of US$6 million (2018: US$4 million; 2017: US$6 million), distribution to non-controlling interests of US$ nil (2018: US$14 million; 2017: US$16 million) and dividends paid to non-controlling interests of US$7 million (2018: US$22 million; 2017: US$6 million).

Summary of Net Loss on Disposal of Discontinued Operations

Net loss on disposal of Discontinued operations

Details of the net loss on disposal is presented below:


	2019
	US$M
Assets
Cash and cash equivalents		104
Trade and other receivables		562
Other financial assets		31
Inventories		34
Property, plant and equipment		10,998
Intangible assets		667

Total assets		12,396

Liabilities
Trade and other payables		794
Provisions		491

Total liabilities		1,285

Net assets		11,111

Less non-controlling interest share of net assets disposed		(168	)

BHP Share of net assets disposed		10,943

Gross consideration		10,555
Less transaction costs		(54	)
Income tax expense		(68	)

Net loss on disposal		(510	)

Summary of Impairment of Non-current Assets


Cash generating unit	Property, plant and equipment			Goodwill			Total
	US$M			US$M			US$M
Petrohawk		–			(2,253	)		(2,253	)
Fayetteville		(520	)		(86	)		(606	)

Total impairment of non-current assets		(520	)		(2,339	)		(2,859	)

Discontinued operations [member]

Statement [LineItems]

Summary of Exceptional Items

Exceptional items – Discontinued operations

Exceptional items are those gains or losses where their nature, including the expected frequency of the events giving rise to them, and amount is considered material to the Financial Statements.

There were no exceptional items related to Discontinued operations for the year ended 30 June 2019 and 30 June 2017.

Items related to Discontinued operations included within profit for the year ended 30 June 2018 are detailed below.


Year ended 30 June 2018	Gross			Tax		Net
	US$M			US$M		US$M
Exceptional items by category
US tax reform		–			492		492
Impairment of Onshore US assets		(2,859	)		109		(2,750	)

Total		(2,859	)		601		(2,258	)

Attributable to non-controlling interests		–			–		–
Attributable to BHP shareholders		(2,859	)		601		(2,258	)

Samarco dam failure [member]

Statement [LineItems]

Summary of Exceptional Items

The FY2019 exceptional loss of US$1,060 million related to the Samarco dam failure in November 2015 and comprises the following:


Year ended 30 June 2019	US$M
Other income		50
Expenses excluding net finance costs:
Costs incurred directly by BHP Billiton Brasil Ltda and other BHP entities in relation to the Samarco dam failure		(57	)
Loss from equity accounted investments, related impairments and expenses:
Share of loss relating to the Samarco dam failure		(96	)
Samarco Germano dam decommissioning		(263	)
Samarco dam failure provision		(586	)
Net finance costs		(108	)

Total⁽¹⁾		(1,060	)

⁽¹⁾	Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.

The FY2018 exceptional loss of US$650 million related to the Samarco dam failure in November 2015 and comprises the following:


Year ended 30 June 2018	US$M
Expenses excluding net finance costs:
Costs incurred directly by BHP Billiton Brasil Ltda and other BHP entities in relation to the Samarco dam failure		(57	)
Loss from equity accounted investments, related impairments and expenses:
Share of loss relating to the Samarco dam failure		(80	)
Samarco dam failure provision		(429	)
Net finance costs		(84	)

Total⁽¹⁾		(650	)

⁽¹⁾	Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.

The FY2017 exceptional loss of US$381 million (before tax) related to the Samarco dam failure in November 2015 and comprises the following:


Year ended 30 June 2017	US$M
Expenses excluding net finance costs:
Costs incurred directly by BHP Billiton Brasil Ltda and other BHP entities in relation to the Samarco dam failure		(82	)
Loss from equity accounted investments, related impairments and expenses:
Share of loss relating to the Samarco dam failure		(134	)
Samarco dam failure provision		(38	)
Net finance costs		(127	)

Total⁽¹⁾		(381	)

⁽¹⁾	Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.

US tax reform [member]

Statement [LineItems]

Summary of Exceptional Items


Year ended 30 June 2018	US$M
Re-measurement of deferred taxes as a result of reduced US corporate income tax rate		(1,390	)
Impairment of foreign tax credits		(834	)
Net impact of tax charges on deemed repatriation of accumulated earnings of non-US subsidiaries		(194	)
Recognition of Alternative Minimum Tax Credits		95
Other impacts		3

Total ⁽¹⁾		(2,320	)

⁽¹⁾	Refer to note 6 ‘Income tax expense’ for further information.