Page 268 - Annual Report 2020

6.1 Alternative Performance Measures continued
Net operating assets
The following table reconciles Net operating assets for the Group to Net assets on the Consolidated Balance Sheet:

2020 2019
Year ended 30 June US$M US$M
Net assets 52,246 51,824
Less: Non-operating assets
Cash and cash equivalents (13,426) (15,613)
Trade and other receivables (1) (194) (222)
Other financial assets (2) (2,425) (1,188)
Current tax assets (366) (124)
Deferred tax assets (3,688) (3,764)
Add: Non-operating liabilities
Trade and other payables (3) 310 328
Interest bearing liabilities 27,048 24,828
Other financial liabilities (4) 1,618 1,020
Current tax payable 913 1,546
Non-current tax payable 109 187
Deferred tax liabilities 2,758 3,234
Net operating assets 64,903 62,056
Net operating assets
Petroleum 8,247 8,332
Copper 24,407 24,088
Iron Ore 18,400 17,486
Coal 9,509 9,674
Group and unallocated items (5) 4,340 2,476
Total 64,903 62,056
(1) Represents loans to associates of US$40 million (FY2019: US$33 million), external finance receivable and accrued interest receivable of US$144 million (FY2019:
US$51 million) included within other receivables.
(2) Represents cross currency and interest rate swaps, forward exchange contracts of US$24 million (FY2019: US$35 million) and investment in shares and other
investments (refer to note 22 ‘Financial risk management’ in section 5.1) included in other financial assets.
(3) Represents accrued interest payable included within other payables.
(4) Represents cross currency and interest rate swaps (refer to note 22 ‘Financial risk management’ in section 5.1) and forward exchange contracts included in other
financial liabilities.
(5) Group and unallocated items include functions, other unallocated operations including Potash, Nickel West and legacy assets (previously disclosed as closed mines
in the Petroleum reportable segment), and consolidation adjustments. Comparative information for the year ended 30 June 2019 has been restated to reflect the
inclusion of legacy assets in Group and unallocated items.
Other APM
Underlying Return on Capital Employed (ROCE)
2019 2018
2020 US$M US$M
Year ended 30 June US$M Restated Restated
Profit after taxation from Continuing and Discontinued operations 8,736 9,185 4,823
Exceptional items (1) 1,305 818 5,228
Subtotal 10,041 10,003 10,051
Adjusted for:
Net finance costs 911 1,072 1,267
Exceptional items included within net finance costs (1) (93) (108) (84)
Income tax expense on net finance costs (267) (319) (405)
Profit after taxation excluding net finance costs and exceptional items 10,592 10,648 10,829

Net assets at the beginning of the period 51,824 60,670 62,726
Net debt at the beginning of the period (2) 9,446 11,605 17,201
Capital employed at the beginning of the period 61,270 72,275 79,927
Net assets at the end of the period 52,246 51,824 60,670
Net debt at the end of the period (2) 12,044 9,446 11,605
Capital employed at the end of the period 64,290 61,270 72,275
Average capital employed 62,780 66,773 76,101

Underlying Return on Capital Employed 16.9% 15.9% 14.2%
(1) For more information, refer to note 3 ‘Exceptional items’ in section 5.1.
(2) The Underlying ROCE calculation uses the restated net debt calculation for the comparative periods.

266 BHP Annual Report 2020