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Segment reporting

12 Months Ended

Jun. 30, 2020

1 Segment reporting

Reportable segments

The Group operated four reportable segments during FY2020, which are aligned with the commodities that are extracted and marketed and reflect the structure used by the Group’s management to assess the performance of the Group.


Reportable segment		Principal activities

Petroleum		Exploration, development and production of oil and gas

Copper		Mining of copper, silver, zinc, molybdenum, uranium and gold

Iron Ore		Mining of iron ore

Coal		Mining of metallurgical coal and energy coal

Unless otherwise noted, the segment reporting information for the years ended 30 June 2019 and 30 June 2018 excludes Discontinued operations, being the Petroleum Onshore US operations comprising the Eagle Ford, Haynesville, Permian and Fayetteville oil and gas assets.

Group and unallocated items includes functions, other unallocated operations including Potash, Nickel West and legacy assets (previously disclosed as closed mines in the Petroleum reportable segment), and consolidation adjustments. Comparative information for the years ended 30 June 2019 and 30 June 2018 have been restated to reflect the inclusion of legacy assets in Group and unallocated items. Revenue not attributable to reportable segments comprises the sale of freight and fuel to third parties, as well as revenues from unallocated operations. Exploration and technology activities are recognised within relevant segments.


Year ended 30 June 2020 US$M	Petroleum			Copper			Iron Ore			Coal			Group and unallocated items/ eliminations			Group total
Revenue		4,008			10,666			20,797			6,241			1,219			42,931
Inter-segment revenue		62			–			–			1			(63	)		–

Total revenue		4,070			10,666			20,797			6,242			1,156			42,931

Underlying EBITDA		2,207			4,347			14,554			1,632			(669	)		22,071

Depreciation and amortisation		(1,445	)		(1,740	)		(1,608	)		(807	)		(512	)		(6,112	)
Impairment losses (1)		(12	)		(17	)		(22	)		(14	)		(20	)		(85	)

Underlying EBIT		750			2,590			12,924			811			(1,201	)		15,874

Exceptional items (2)		(6	)		(1,228	)		(614	)		(18	)		413			(1,453	)
Net finance costs																	(911	)

Profit before taxation																	13,510

Capital expenditure (cash basis)		909			2,434			2,328			603			626			6,900

(Loss)/profit from equity accounted investments, related impairments and expenses		(4	)		67			(508	)		(68	)		1			(512	)

Investments accounted for using the equity method		245			1,558			–			776			6			2,585

Total assets		13,071			27,942			23,841			12,110			27,819			104,783

Total liabilities		4,824			3,535			5,441			2,601			36,136			52,537


Year ended 30 June 2019 US$M Restated	Petroleum			Copper			Iron Ore			Coal			Group and unallocated items/ eliminations			Group total
Revenue		5,853			10,838			17,251			9,121			1,225			44,288
Inter-segment revenue		77			–			4			–			(81	)		–

Total revenue		5,930			10,838			17,255			9,121			1,144			44,288

Underlying EBITDA		4,061			4,550			11,129			4,067			(649	)		23,158

Depreciation and amortisation		(1,560	)		(1,835	)		(1,653	)		(632	)		(149	)		(5,829	)
Impairment losses (1)		(21	)		(128	)		(79	)		(35	)		(1	)		(264	)

Underlying EBIT		2,480			2,587			9,397			3,400			(799	)		17,065

Exceptional items (2)		–			–			(971	)		–			19			(952	)
Net finance costs																	(1,064	)

Profit before taxation																	15,049

Capital expenditure (cash basis)		645			2,735			1,611			655			604			6,250

(Loss)/profit from equity accounted investments, related impairments and expenses		(2	)		303			(945	)		103			(5	)		(546	)

Investments accounted for using the equity method		239			1,472			–			853			5			2,569

Total assets		12,434			27,428			22,592			12,124			26,283			100,861

Total liabilities		4,102			3,340			5,106			2,450			34,039			49,037


Year ended 30 June 2018 US$M Restated	Petroleum			Copper			Iron Ore			Coal			Group and unallocated items/ eliminations (3)			Group total
Revenue		5,333			12,781			14,797			8,889			1,329			43,129
Inter-segment revenue		75			–			13			–			(88	)		–

Total revenue		5,408			12,781			14,810			8,889			1,241			43,129

Underlying EBITDA		3,393			6,522			8,930			4,397			(59	)		23,183

Depreciation and amortisation		(1,719	)		(1,920	)		(1,721	)		(686	)		(242	)		(6,288	)
Impairment losses (1)		(76	)		(213	)		(14	)		(29	)		(1	)		(333	)

Underlying EBIT		1,598			4,389			7,195			3,682			(302	)		16,562

Exceptional items (2)		–			–			(539	)		–			(27	)		(566	)
Net finance costs																	(1,245	)

Profit before taxation																	14,751

Capital expenditure (cash basis)		656			2,428			1,074			409			412			4,979

(Loss)/profit from equity accounted investments, related impairments and expenses		(4	)		467			(509	)		192			1			147

Investments accounted for using the equity method		249			1,335			–			883			6			2,473

Total assets		12,896			26,824			22,208			12,257			37,808			111,993

Total liabilities		3,977			3,145			3,888			2,404			37,909			51,323

(1)	Impairment losses exclude exceptional items of US$409 million (FY2019: US$ nil; FY2018: US$ nil).

(2)

Exceptional items reported in Group and unallocated include Samarco dam failure costs of US$(32) million (FY2019: US$(31) million; FY2018: US$(27) million) and Samarco related other income of US$489 million (FY2019: US$50 million; FY2018: US$ nil). Refer to note 3 ‘Exceptional items’ for further information.

(3)	Total assets and total liabilities include balances for the year ended 30 June 2018 relating to Onshore US assets.

Geographical information


	Revenue by location of customer
	2020		2019		2018
	US$M		US$M		US$M
Australia		2,232		2,568		2,304
Europe		1,156		1,875		1,886
China		26,576		24,274		22,660
Japan		3,904		4,193		4,628
India		1,475		2,479		2,439
South Korea		2,666		2,550		2,588
Rest of Asia		2,583		2,940		2,620
North America		1,827		2,442		2,715
South America		315		662		1,054
Rest of world		197		305		235

		42,931		44,288		43,129

	Non-current assets by location of assets
	2020		2019		2018
	US$M		US$M		US$M
Australia		47,286		45,013		45,157
North America		9,682		8,633		8,246
South Americ a		18,179		18,404		18,267
Rest of world		1,955		371		154
Unallocated assets (1)		6,210		5,067		5,039

		83,312		77,488		76,863

(1)	Unallocated assets comprise deferred tax assets and other financial assets.

Underlying EBITDA

Underlying EBITDA is earnings before net finance costs, depreciation, amortisation and impairments, taxation expense, Discontinued operations and any exceptional items. Underlying EBITDA includes BHP’s share of profit/(loss) from investments accounted for using the equity method including net finance costs, depreciation, amortisation and impairments and taxation expense.

Exceptional items are excluded from Underlying EBITDA in order to enhance the comparability of such measures from

period-to-period

and provide investors with further clarity in order to assess the underlying performance of the Group’s operations. Management monitors exceptional items separately. Refer to note 3 ‘Exceptional items’ for additional detail.

Segment assets and liabilities

Total segment assets and liabilities of reportable segments represents operating assets and operating liabilities, including the carrying amount of equity accounted investments and predominantly excludes cash balances, loans to associates, interest bearing liabilities and deferred tax balances. The carrying value of investments accounted for using the equity method represents the balance of the Group’s investment in equity accounted investments, with no adjustment for any cash balances, interest bearing liabilities or deferred tax balances of the equity accounted investment.