Segment reporting
 12 Months Ended
Jun. 30, 2021
Text block [abstract]  
Segment reporting
1    Segment reporting
Reportable segments
The Group operated four reportable segments during FY2021, 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 year ended 30 June 2019 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, and consolidation adjustments. 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.
Total assets and total liabilities for FY2020 and FY2019 have been restated to reflect changes to the Group’s accounting policy following a decision by the IFRS Interpretations Committee on IAS 12/AASB 112 ‘Income Taxes’ (IAS 12), resulting in the retrospective recognition of US$950 million of Goodwill at Olympic Dam (included in the Copper Segment) and an offsetting US$1,021 million increase in Deferred tax liabilities (included in Group and unallocated). Refer to note 39 ‘New and amended accounting standards and interpretations and changes to accounting policies’ for further information.
 
Year ended 30 June 2021
US$M
   
Petroleum
    
Copper
    
Iron Ore
    
Coal
    
Group and
unallocated
items/
eliminations
    
Group
total
  
Revenue
      3,895       15,726       34,475       5,154       1,567       60,817  
Inter-segment revenue
      51       –       –       –       (51 )      –  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total revenue
   
 
3,946
 
  
 
15,726
 
  
 
34,475
 
  
 
5,154
 
  
 
1,516
 
  
 
60,817
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Underlying EBITDA
   
 
2,300
 
  
 
8,489
 
  
 
26,278
 
  
 
288
 
  
 
24
 
  
 
37,379
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Depreciation and amortisation
      (1,739 )      (1,608 )      (1,971 )      (845 )      (661 )      (6,824 ) 
Impairment losses
(1)
      (128 )      (72 )      (13 )      (20 )      (31 )      (264 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Underlying EBIT
   
 
433
 
  
 
6,809
 
  
 
24,294
 
  
 
(577
) 
  
 
(668
) 
  
 
30,291
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Exceptional items
(2)
      (47 )      (144 )      (1,319 )      (1,567 )      (1,308 )      (4,385 ) 
Net finance costs
                                              (1,305 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Profit before taxation
                                           
 
24,601
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Capital expenditure (cash basis)
   
 
994
 
  
 
2,180
 
  
 
2,188
 
  
 
579
 
  
 
665
 
  
 
6,606
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
(Loss)/profit from equity accounted investments, related impairments and expenses
   
 
(6
) 
  
 
692
 
  
 
(1,126
) 
  
 
(480
) 
  
 
(1
) 
  
 
(921
) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Investments accounted for using the equity method
   
 
253
 
  
 
1,482
 
  
 
–
 
  
 
–
 
  
 
7
 
  
 
1,742
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total assets
   
 
13,775
 
  
 
31,517
 
  
 
26,171
 
  
 
11,030
 
  
 
26,434
 
  
 
108,927
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total liabilities
   
 
5,811
 
  
 
4,589
 
  
 
7,508
 
  
 
3,518
 
  
 
31,896
 
  
 
53,322
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Year ended 30 June 2020
US$M
Restated
    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
 (3)
  
 
 13,071
 
 
 
 28,892
 
 
 
 23,841
 
 
 
 12,110
 
 
 
 27,819
 
 
 
 105,733
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 (3)
  
 
 4,824
 
 
 
 3,535
 
 
 
 5,441
 
 
 
 2,601
 
 
 
 37,157
 
 
 
 53,558
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
             
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 amortisatio
n
  
 
 (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
 (3)
  
 
 12,434
 
 
 
 28,378
 
 
 
 22,592
 
 
 
 12,124
 
 
 
 26,283
 
 
 
 101,811  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 (3)
  
 
 4,102
 
 
 
 3,340
 
 
 
 5,106
 
 
 
 2,450
 
 
 
 35,060
 
 
 
 50,058  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
 
Impairment losses exclude exceptional items of US$2,371 million (2020: US$409 million; 2019: US$ nil).
 
(2)
 
Exceptional items reported in Group and unallocated include Samarco dam failure costs of US$(14) million (2020: US$(32) million; 2019: US$(31) million) and Samarco related other income of US$34 million (2020: US$489 million; 2019: US$50 million). Refer to note 3 ‘Exceptional items’ for further information.
 
(3)
 
Total assets and total liabilities of FY2020 and FY2019 have been restated to reflect changes to the Group’s accounting policy. Refer to note 39 ‘New and amended accounting standards and interpretations and changes to accounting policies’ for further information.
 
Geographical information
 
    
Revenue by location of customer
  
    
2021
      2020      2019  
    
US$M
      US$M      US$M  
Australia
   
 
2,951
 
      2,232        2,568  
Europe
   
 
1,050
 
      1,156        1,875  
China
   
 
39,727
 
      26,576        24,274  
Japan
   
 
4,808
 
      3,904        4,193  
India
   
 
2,189
 
      1,475        2,479  
South Korea
   
 
3,436
 
      2,666        2,550  
Rest of Asia
   
 
3,603
 
      2,583        2,940  
North America
   
 
2,432
 
      1,827        2,442  
South America
   
 
426
 
      315        662  
Rest of world
   
 
195
 
      197        305  
    
 
 
     
 
 
     
 
 
  
    
 
60,817
 
      42,931        44,288  
    
 
 
     
 
 
     
 
 
  
   
    
Non-current assets by location of assets
(1)
  
    
2021
      2020      2019  
    
US$M
      US$M      US$M  
    
 
     
Restated
     
Restated
  
Australia
   
 
48,612
 
      48,236        45,963  
North America
   
 
9,701
 
      9,682        8,633  
South America
   
 
18,548
 
      18,179        18,404  
Rest of world
   
 
1,851
 
      1,955        371  
Unallocated assets
(2)
   
 
3,522
 
      6,210        5,067  
    
 
 
     
 
 
     
 
 
  
    
 
82,234
 
      84,262        78,438  
    
 
 
     
 
 
     
 
 
  
 
(1)
FY2020 and FY2019 have been restated to reflect changes to the Group’s accounting policy following a decision by the IFRS Interpretations Committee on IAS 12 ‘Income Taxes’, resulting in the retrospective recognition of US$950 million of Goodwill at Olympic Dam. Refer to note 39 ‘New and amended accounting standards and interpretations and changes to accounting policies’ for further information.
 
(2)
 
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/(benefit).
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 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.