Leases (Tables)

12 Months Ended

Jun. 30, 2022

Summary of Movements in Lease Liabilities

Movements in the Group’s lease liabilities during the year are as follows:


	2022			2021
	US$M			US$M
At the beginning of the financial year		3,896			3,443
Additions		866			1,223
Remeasurements of index-linked freight contracts		(369	)		(59	)
Lease payments 1		(1,288	)		(879	)
Foreign exchange movement		(126	)		115
Amortisation of discounting		125			109
Divestment and demerger of subsidiaries and operations 2		(492	)		–
Transfers and other movements		(36	)		(56	)

At the end of the financial year		2,576			3,896

Comprising:
Current liabilities		519			889
Non-current liabilities		2,057			3,007

1	Includes US$39 million (2021: US$45 million) related to Discontinued operations.

2	Relates to the divestment of BMC and merger of Petroleum with Woodside. Refer to notes 3 ‘Exceptional items’ and 27 ‘Discontinued operations’ for more information.

Summary of Maturity Profile of Lease Liabilities

The maturity profile of lease liabilities based on the undiscounted contractual amounts is as follows:


Lease liability	2022		2021
	US$M		US$M
Due for payment:
In one year or less or on demand		579		980
In more than one year but not more than two years		443		680
In more than two years but not more than five years		936		1,397
In more than five years 1		1,470		1,842

Total		3,428		4,899

Carrying amount		2,576		3,896

1	Includes US$707 million (2021: US$878 million) due for payment in more than ten years.

Summary of Movements in Right of Use Assets

Movements in the Group’s

right-of-use

assets during the year are as follows:


	2022									2021
	Land and buildings			Plant and equipment			Total			Land and buildings			Plant and equipment			Total
	US$M			US$M			US$M			US$M			US$M			US$M
Net book value
At the beginning of the financial year		638			2,712			3,350			689			2,358			3,047
Additions		41			825			866			25			1,227			1,252
Remeasurements of index-linked freight contracts		–			(369	)		(369	)		–			(59	)		(59	)
Depreciation expensed during the period		(103	)		(872	)		(975	)		(111	)		(670	)		(781	)
Depreciation classified as exploration		–			(3	)		(3	)		–			(19	)		(19	)
Impairments for the year		(7	)		–			(7	)		(30	)		(2	)		(32	)
Divestment and demerger of subsidiaries and operations 1		(116	)		(313	)		(429	)		–			–			–
Transfers and other movements		(1	)		(71	)		(72	)		65			(123	)		(58	)

At the end of the financial year		452			1,909			2,361			638			2,712			3,350

– Cost		745			4,307			5,052			897			4,393			5,290
– Accumulated depreciation and impairments		(293	)		(2,398	)		(2,691	)		(259	)		(1,681	)		(1,940	)

1	Relates to the divestment of BMC and merger of Petroleum with Woodside. Refer to notes 3 ‘Exceptional items’ and 27 ‘Discontinued operations’ for more information.

Summary of Amounts Recorded in Income Statement and Cash Flow Statements

Amounts recorded in the income statement and the cash flow statement for the year were:


	2022		2021		2020
	US$M		US$M Restated		US$M Restated		Included within

Income statement
Depreciation of right-of-use assets		964		753		623	Profit from operations
Short-term, low-value and variable lease costs 1		847		834		637	Profit from operations
Interest on lease liabilities		119		102		82	Financial expenses
Cash flow statement
Principal lease payments		1,130		732		632	Cash flows from financing activities
Lease interest payments		119		102		82	Cash flows from operating activities

Relates to US$585 million of variable lease costs (2021: US$510 million; 2020: US$415 million), US$222 million of short-term lease costs (2021: US$294 million; 2020: US$201 million) and US$40 million of

low-value

lease costs (2021: US$30 million; 2020: US$21 million). Variable lease costs include contracts for hire of mining service equipment, drill rigs and transportation services. These contracts contain variable lease payments based on usage and asset performance.