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Financial risk management (Tables)
 12 Months Ended
Jun. 30, 2020
Text block [abstract]  
Summary of Financial Assets and Liabilities by Class
The financial assets and liabilities are presented by class in the table below at their carrying amounts.
 
 
 
IFRS 13

Fair value

hierarchy

Level
 (1)
 
IFRS 9 Classification
 
2020

US$M
 
 
2019
US$M
 
Current cross currency and interest rate swaps
 (2)
 
2
 
Fair value through profit or loss
 
 
3
 
 
 
15
 
Current other derivative contracts
 (3)
 
2,3
 
Fair value through profit or loss
 
 
45
 
 
 
57
 
Current other investments
 (4)
 
1,2
 
Fair value through profit or loss
 
 
36
 
 
 
15
 
Non-current
cross currency and interest rate swaps
 (2)
 
2
 
Fair value through profit or loss
 
 
2,009
 
 
 
739
 
Non-current
other derivative contracts
 (3)
 
2,3
 
Fair value through profit or loss
 
 
159
 
 
 
180
 
Non-current
investment in shares
 
3
 
Fair value through other comprehensive income
 
 
32
 
 
 
34
 
Non-current
investment in shares
 
3
 
Fair value through profit or loss
 
 
–
 
 
 
6
 
Non-current
other investments
 (4)(5)
 
1,2,3
 
Fair value through profit or loss
 
 
322
 
 
 
344
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total other financial assets
 
 
 
 
 
 
2,606
 
 
 
1,390
 
Cash and cash equivalents
 
 
 
Amortised cost
 
 
13,426
 
 
 
15,613
 
Trade and other receivables
 (6)
 
 
 
Amortised cost
 
 
1,633
 
 
 
1,929
 
Provisionally priced trade receivables
 
2
 
Fair value through profit or loss
 
 
1,480
 
 
 
1,446
 
Loans to equity accounted investments
 
 
 
Amortised cost
 
 
40
 
 
 
33
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total financial assets
 
 
 
 
 
 
19,185
 
 
 
20,411
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-financial
assets
 
 
 
 
 
 
85,598
 
 
 
80,450
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
 
 
 
 
 
104,783
 
 
 
100,861
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current cross currency and interest rate swaps
 (2)
 
2
 
Fair value through profit or loss
 
 
165
 
 
 
63
 
Current other derivative contracts
 (3)
 
2,3
 
Fair value through profit or loss
 
 
60
 
 
 
64
 
Non-current
cross currency and interest rate swaps
 (2)
 
2
 
Fair value through profit or loss
 
 
1,414
 
 
 
895
 
Non-current
other derivative contracts
 (3)
 
2,3
 
Fair value through profit or loss
 
 
–
 
 
 
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total other financial liabilities
 
 
 
 
 
 
1,639
 
 
 
1,023
 
Trade and other payables
 (7)
 
 
 
Amortised cost
 
 
5,354
 
 
 
6,283
 
Provisionally priced trade payables
 
2
 
Fair value through profit or loss
 
 
269
 
 
 
277
 
Bank overdrafts and short-term borrowings
 (8)
 
 
 
Amortised cost
 
 
–
 
 
 
20
 
Bank loans
 (8)
 
 
 
Amortised cost
 
 
2,492
 
 
 
2,498
 
Notes and debentures
 (8)
 
 
 
Amortised cost
 
 
21,045
 
 
 
21,529
 
Leases liabilities
 
 
 
Amortised cost
 
 
3,443
 
 
 
715
 
Other
 (8)
 
 
 
Amortised cost
 
 
68
 
 
 
66
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total financial liabilities
 
 
 
 
 
 
34,310
 
 
 
32,411
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-financial
liabilities
 
 
 
 
 
 
18,227
 
 
 
16,626
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
 
 
 
 
 
52,537
 
 
 
49,037
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
 
All of the Group’s financial assets and financial liabilities recognised at fair value were valued using market observable inputs categorised as Level 2 with the exception of the specified items in the following footnotes.
 
(2)
 
Cross currency and interest rate swaps are measured at forward rate and swap models and present value calculations.
 
(3)
 
Includes other derivative contracts of US$179 million (2019: US$200 million) categorised as Level 3. Significant items are derivatives embedded in physical commodity purchase and sales contracts of gas in Trinidad and Tobago with net assets fair value of US$180 million (2019: US$202 million).
 
(4)
 
Includes investments held by BHP Billiton Foundation which are restricted and not available for general use by the Group of US$296 million (2019: US$309 million) of which other investment (US Treasury Notes) of US$87 million categorised as Level 1 (2019: US$128 million).
 
(5)
 
Includes other investments of US$47 million (2019: US$47 million) categorised as Level 3.
 
(6)
 
Excludes input taxes of US$478 million (2019: US$367 million) included in other receivables.
 
(7)
 
Excludes input taxes of US$145 million (2019: US$162 million) included in other payables.
 
(8)
 
All interest bearing liabilities, excluding leases, are unsecured.
Summary of Carrying Amounts of Group's Notes and Debentures by Currency and Derivatives Which Hedge
The table below shows the carrying amounts of the Group’s notes and debentures by currency and the derivatives which hedge them:
 
•
 
The carrying amount of the notes and debentures includes foreign exchange remeasurement to period end rates and fair value adjustments when included in a fair value hedge.
 
•
 
The breakdown of the hedging derivatives includes remeasurement of foreign currency notional values at period end rates, fair value movements due to interest rate risk, foreign currency cash flows designated into cash flow hedges, costs of hedging recognised in other comprehensive income, ineffectiveness recognised in the income statement and accruals or prepayments.
 
•
 
The hedged value of notes and debentures includes their carrying amounts adjusted for the offsetting derivative fair value movements due to foreign currency and interest rate risk remeasurement.
 
 
 
 
 
 
Fair value of derivatives
 
 
 
 
2020
US$M                                     
 
Carrying
amount of
notes and
debentures
 
 
Foreign
exchange
notional

at spot

rates
 
 
Interest

rate risk
 
 
Recognised

in cash flow
hedging
reserve
 
 
Recognised
in cost of
hedging
reserve
 
 
Recognised
in the
income
statement
 (1)
 
 
Accrued

cash

flows
 
 
Total
 
 
Hedged
value of
notes and
debentures
 (2)
 
 
 
A
 
 
B
 
 
C
 
 
D
 
 
E
 
 
F
 
 
G
 
 
B to G
 
 
A + B + C
 
USD
 
 
9,926
 
 
 
–
 
 
 
(742
) 
 
 
–
 
 
 
–
 
 
 
29
 
 
 
74
 
 
 
(639
) 
 
 
9,184
 
GBP
 
 
3,245
 
 
 
764
 
 
 
(730
) 
 
 
(16
) 
 
 
13
 
 
 
(18
) 
 
 
47
 
 
 
60
 
 
 
3,279
 
EUR
 
 
7,294
 
 
 
500
 
 
 
(576
) 
 
 
(55
) 
 
 
21
 
 
 
65
 
 
 
32
 
 
 
(13
) 
 
 
7,218
 
CAD
 
 
580
 
 
 
199
 
 
 
(32
) 
 
 
–
 
 
 
(2
) 
 
 
(4
) 
 
 
(2
) 
 
 
159
 
 
 
747
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
21,045
 
 
 
1,463
 
 
 
(2,080
) 
 
 
(71
) 
 
 
32
 
 
 
72
 
 
 
151
 
 
 
(433
) 
 
 
20,428
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
 
 
Fair value of derivatives
 
 
 
 
2019
US$M
 
Carrying
amount of
notes and
debentures
 
 
Foreign
exchange
notional
at spot
rates
 
 
Interest
rate risk
 
 
Recognised
in cash flow
hedging
reserve
 
 
Recognised
in cost of
hedging
reserve
 
 
Recognised
in the
income
statement
 (1)
 
 
Accrued
cash
flows
 
 
Total
 
 
Hedged
value of
notes and
debentures
 (2)
 
 
 
A
 
 
B
 
 
C
 
 
D
 
 
E
 
 
F
 
 
G
 
 
B to G
 
 
A + B + C
 
USD
 
 
9,433
 
 
 
–
 
 
 
(253
) 
 
 
–
 
 
 
–
 
 
 
20
 
 
 
111
 
 
 
(122
) 
 
 
9,180
 
GBP
 
 
3,118
 
 
 
678
 
 
 
(517
) 
 
 
(57
) 
 
 
70
 
 
 
(2
) 
 
 
62
 
 
 
234
 
 
 
3,279
 
EUR
 
 
7,680
 
 
 
378
 
 
 
(566
) 
 
 
(100
) 
 
 
33
 
 
 
54
 
 
 
82
 
 
 
(119
) 
 
 
7,492
 
CAD
 
 
594
 
 
 
175
 
 
 
(22
) 
 
 
(5
) 
 
 
3
 
 
 
(4
) 
 
 
1
 
 
 
148
 
 
 
747
 
AUD
 
 
704
 
 
 
73
 
 
 
(4
) 
 
 
(1
) 
 
 
–
 
 
 
–
 
 
 
(5
) 
 
 
63
 
 
 
773
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
21,529
 
 
 
1,304
 
 
 
(1,362
) 
 
 
(163
) 
 
 
106
 
 
 
68
 
 
 
251
 
 
 
204
 
 
 
21,471
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
 
Predominantly related to ineffectiveness.
 
(2)
 
Includes US$3,019 million (2019: US$3,019 million) of fixed rate debt not swapped to floating rate that is not in a hedging relationship.
Summary of Reconciliation of Components of Equity and Analysis of Movements in Reserves for all Hedges
The following table show
s
a reconciliation of the components of equity and an analysis of the movements in reserves for all hedges. For a description of these reserves, refer to note 16 ‘Other equity’.
 
2020
US$M
  
Cash flow hedging

reserve
  
Cost of hedging

reserve
  
Total
 
   
Gross
  
Tax
  
Net
  
Gross
  
Tax
  
Net
    
At the beginning of the financial year
  
 
163
 
 
 
(49
) 
 
 
114
 
 
 
(106
) 
 
 
32
 
 
 
(74
) 
 
 
40
 
Add: Change in fair value of hedging instrument recognised in OCI
  
 
(315
) 
 
 
94
 
 
 
(221
) 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(221
) 
Less: Reclassified from reserves to interest expense – recognised through OCI
  
 
223
 
 
 
(66
) 
 
 
157
 
 
 
74
 
 
 
(23
) 
 
 
51
 
 
 
208
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
At the end of the financial year
  
 
71
 
 
 
(21
) 
 
 
50
 
 
 
(32
) 
 
 
9
 
 
 
(23
) 
 
 
27
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
2019
US$M
  Cash flow hedging
reserve		  Cost of hedging
reserve		  Total 
   Gross  Tax  Net  Gross  Tax  Net    
At the beginning of the financial year
   85   (27)   58   –   –   –   58 
Impact of adoption of IFRS 9
   176   (52)   124   (176)   52   (124)   – 
Add: Change in fair value of hedging instrument recognised in OCI
   (327)   98   (229)   –   –   –   (229) 
Less: Reclassified from reserves to interest expense – recognised through OCI
   229   (68)   161   70   (20)   50   211 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
At the end of the financial year
   163   (49)   114   (106)   32   (74)   40 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Summary of Movement of Interest Bearing Liabilities and Related Derivatives
The movement in the year in the Group’s interest bearing liabilities and related derivatives are as follows:
 
2020
US$M
 
Interest bearing liabilities
 
 
Derivatives

(assets)/

liabilities
 
 
 
 
 
 
Bank
loans
 
 
Notes and
debentures
 
 
Lease
liabilities
 
 
Bank
overdraft
and short-
term
borrowings
 
 
Other
 
 
Cross
currency
and

interest
rate swaps
 
 
Total
 
At the beginning of the financial year
 
 
2,498
 
 
 
21,529
 
 
 
715
 
 
 
20
 
 
 
66
 
 
 
204
 
 
   
Proceeds from interest bearing liabilities
 
 
514
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
514
 
Settlements of debt related instruments
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(157
) 
 
 
(157
) 
Repayment of interest bearing liabilities
 
 
(522
) 
 
 
(859
) 
 
 
(671
) 
 
 
–
 
 
 
5
 
 
 
–
 
 
 
(2,047
) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change from Net financing cash flows
 
 
(8
) 
 
 
(859
) 
 
 
(671
) 
 
 
–
 
 
 
5
 
 
 
(157
) 
 
 
(1,690
) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other movements:
 
   
 
   
 
   
 
   
 
   
 
   
 
   
Interest rate impacts
 
 
–
 
 
 
720
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(788
) 
 
   
Foreign exchange impacts
 
 
–
 
 
 
(354
) 
 
 
(43
) 
 
 
–
 
 
 
(4
) 
 
 
316
 
 
   
Leases recognised on IFRS 16 transition
 
 
–
 
 
 
–
 
 
 
2,301
 
 
 
–
 
 
 
–
 
 
 
–
 
 
   
Lease additions
 
 
–
 
 
 
–
 
 
 
436
 
 
 
–
 
 
 
–
 
 
 
–
 
 
   
Remeasurement of index-linked freight contracts
 
 
–
 
 
 
–
 
 
 
733
 
 
 
–
 
 
 
–
 
 
 
–
 
 
   
Other interest bearing liabilities/derivative related changes
 
 
2
 
 
 
9
 
 
 
(28
) 
 
 
(20
) 
 
 
1
 
 
 
(8
) 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
At the end of the financial year
 
 
2,492
 
 
 
21,045
 
 
 
3,443
 
 
 
–
 
 
 
68
 
 
 
(433
) 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
    
2019
US$M
 
Interest bearing liabilities
 
 
Derivatives
(assets)/
liabilities
 
 
 
 
 
 
Bank
loans
 
 
Notes and
debentures
 
 
Lease
liabilities
 
 
Bank
overdraft
and short-
term
borrowings
 
 
Other
 
 
Cross
currency
and
interest
rate swaps
 
 
Total
 
At the beginning of the financial year
 
 
2,555
 
 
 
23,298
 
 
 
802
 
 
 
58
 
 
 
92
 
 
 
805
 
 
   
Proceeds from interest bearing liabilities
 
 
250
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
250
 
Settlements of debt related instruments
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(160
) 
 
 
(160
) 
Repayment of interest bearing liabilities
 
 
(308
) 
 
 
(2,198
) 
 
 
(75
) 
 
 
–
 
 
 
(23
) 
 
 
–
 
 
 
(2,604
) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change from Net financing cash flows
 
 
(58
) 
 
 
(2,198
) 
 
 
(75
) 
 
 
–
 
 
 
(23
) 
 
 
(160
) 
 
 
(2,514
) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other movements:
 
   
 
   
 
   
 
   
 
   
 
   
 
   
Interest rate impacts
 
 
–
 
 
 
729
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(809
) 
 
   
Foreign exchange impacts
 
 
–
 
 
 
(311
) 
 
 
(11
) 
 
 
–
 
 
 
–
 
 
 
319
 
 
   
Other interest bearing liabilities/derivative related changes
 
 
1
 
 
 
11
 
 
 
(1
) 
 
 
(38
) 
 
 
(3
) 
 
 
49
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
At the end of the financial year
 
 
2,498
 
 
 
21,529
 
 
 
715
 
 
 
20
 
 
 
66
 
 
 
204