Discontinued operations (Tables)

6 Months Ended

Dec. 31, 2018

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 for the half year are detailed below. Exceptional items attributable to Discontinued operations are detailed in note 13 Discontinued operations:

Half year ended 31 December 2018

Gross
US$M

Tax
US$M

Net
US$M

Exceptional items by category

Samarco dam failure

(210

)

–

(210

)

Global taxation matters

–

242

Total

(210

)

242

Attributable to non-controlling interests

–

Attributable to BHP shareholders

(210

)

242

Global taxation matters

Global taxation matters includes amounts released from provisions for tax matters and other claims resolved during the period.


Half year ended 31 December 2017 Restated	Gross US$M			Tax US$M			Net US$M
Exceptional items by category
Samarco dam failure		(210	)		–			(210	)
US tax reform		–			(2,320	)		(2,320	)

Total		(210	)		(2,320	)		(2,530	)

Attributable to non-controlling interests		–			–			–
Attributable to BHP shareholders		(210	)		(2,320	)		(2,530	)


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

Summary of Income Statement - Discontinued Operations

Income statement – Discontinued operations


	Half year ended 31 Dec 2018 US$M			Half year ended 31 Dec 2017 US$M			Year ended 30 June 2018 US$M
Revenue		850			1,002			2,171
Other income		28			14			34
Expenses excluding net finance costs		(608	)		(1,445	)		(5,790	)

Profit/(loss) from operations		270			(429	)		(3,585	)

Financial expenses		(8	)		(12	)		(22	)

Net finance costs		(8	)		(12	)		(22	)

Profit/(loss) before taxation		262			(441	)		(3,607	)

Income tax (expense)/benefit		(58	)		609			686

Profit/(loss) after taxation from operating activities		204			168			(2,921	)

Net loss on disposal		(497	)		–			–

(Loss)/profit after taxation		(293	)		168			(2,921	)

Attributable to non-controlling interests		7			22			26
Attributable to BHP shareholders		(300	)		146			(2,947	)

Basic (loss)/earnings per ordinary share (cents)		(5.6	)		2.7			(55.4	)
Diluted (loss)/earnings per ordinary share (cents)		(5.6	)		2.7			(55.4	)

Summary of Cash Flows from Discontinued Operations

Cash flows from Discontinued operations


	Half year ended 31 Dec 2018 US$M			Half year ended 31 Dec 2017 US$M			Year ended 30 June 2018 US$M
Net operating cash flows		565			350			900
Net investing cash flows⁽¹⁾		(443	)		(301	)		(861	)
Net financing cash flows⁽²⁾		(13	)		(27	)		(40	)

Net increase/(decrease) in cash and cash equivalents from Discontinued operations		109			22			(1	)

Net proceeds received from the sale of Onshore US		7,028			–			–
Less Cash and cash equivalents		(104	)		–			–

Proceeds from divestment of Onshore US, net of its cash		6,924			–			–

Total cash impact		7,033			22			(1	)

(1)

Includes purchases of property, plant and equipment of US$443 million related to drilling and development expenditure (31 December 2017: US$335 million; 30 June 2018: US$900 million) less proceeds from sale of assets of US$ nil (31 December 2017: US$35 million; 30 June 2018: US$39 million), and other investing outflows of US$ nil (31 December 2017: US$1 million; 30 June 2018: US$ nil).

(2)

Includes net repayment of interest bearing liabilities of US$6 million (31 December 2017: US$2 million; 30 June 2018: US$4 million), distribution to non-controlling interests of US$ nil (31 December 2017: US$6 million; 30 June 2018: US$14 million) and dividends paid to non-controlling interests of US$7 million (31 December 2017: US$19 million; 30 June 2018: US$22 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 in the table below:


	2018 US$M
Assets
Cash and cash equivalents		104
Trade and other receivables		562
Other financial assets		32
Inventories		34
Property, plant and equipment		10,998
Intangible assets		667

Total assets		12,397

Liabilities
Trade and other payables		796
Provisions		493

Total liabilities		1,289

Net assets		11,108

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

BHP Share of net assets disposed		10,940

Gross consideration		10,590
Less transaction costs		(60	)
Income tax expense		(87	)

Net loss on disposal		(497	)

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.

Half year ended 31 December 2018

There were no exceptional items related to Discontinued operations for the half year ended 31 December 2018.

Items related to Discontinued operations included within the Group’s profit for the half year ended 31 December 2017 are detailed below:

Half year ended 31 December 2017

Gross
US$M

Tax
US$M

Net
US$M

Exceptional items by category

US tax reform

–

492

Total

–

492

Attributable to non-controlling interests

–

Attributable to BHP shareholders

–

492

Items related to Discontinued operations included within the Group’s profit for the year ended 30 June 2018 are detailed below:


Year ended 30 June 2018	Gross US$M			Tax US$M		Net 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 exceptional loss of US$210 million related to the Samarco dam failure in November 2015 comprises the following:


Half year ended 31 December 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		(33	)
Loss from equity accounted investments, related impairments and expenses:
Share of loss relating to the Samarco dam failure		(47	)
Samarco dam failure provision		(70	)
Net finance costs		(60	)

Total⁽¹⁾		(210	)

(1)	Refer to note 12 Significant events – Samarco dam failure for further information.