Lendlease Annual Report 2024

Financial Statements 137 June 2024 June 2023 Note $m $m Current Trade and accrued creditors 2,436 2,616 Construction contract liabilities 22.a 997 1,148 Related parties 108 145 Retentions 344 379 Deferred land payments 38 16 Unearned income 22.a 125 85 Lease liabilities 85 79 Other payables - PLLACes 1 612 - Other 124 178 Total current 4,869 4,646 Non Current Trade and accrued creditors - 306 Retentions 53 74 Deferred land payments 353 337 Unearned income 22.a 26 66 Lease liabilities 248 305 Other payables - PLLACes 1 - 562 Other 471 683 Total non current 1,151 2,333 Total trade and other payables 6,020 6,979 1. PLLACes transactions involve selling the presold apartment cash flows for a specific development project to a third party for cash consideration. This amount relates to $498 million (June 2023: $457 million non current) and $114 million (June 2023: $105 million non current) of proceeds received from PLLACes transactions for One Sydney Harbour R2 Trust and One Sydney Harbour R3 project, respectively. Refer to Note 4 ‘Revenue from Contracts with Customers’ for further detail. As at 30 June 2024, the Group recognised right-of-use assets of $123 million (30 June 2023: $161 million) within Property, Plant and Equipment. June 2024 June 2023 22.a. Contract Liabilities $m $m Current Unearned income 1 125 85 Construction contract liabilities 2 997 1,148 Total current 1,122 1,233 Non Current Unearned income 1 26 66 Total non current 26 66 Total contract liabilities 1,148 1,299 1. Movements in Unearned income relates primarily to residential presales settled during the financial year and deposits received for development properties. 2. Movements in Construction contract liabilities relate primarily to revenue recognised during the period in excess of billings raised on construction contracts with customers. This balance also contains provisions previously incurred on retained Engineering projects that are in progress. During the year, the Group recognised $894 million in revenue from contracts that held a contract liability balance at the beginning of the financial year. The total transaction price relating to the Group’s Unearned income on the Group’s development contracts at June 2024 is $395 million relating primarily to various UK and Australian projects. The difference between the Unearned income amount noted in the table above and this amount primarily relates to the remaining development value of apartments versus the deposit amount received. Revenue from these contracts is expected to be realised as control over each asset is transferred to the customer. The total transaction price allocated to unsatisfied performance obligations on the Group’s construction contracts as at June 2024 is $10.8 billion. This includes new work secured during the financial year. Of the total construction backlog, 62 per cent is expected to be realised within the next 12 months to June 2025 (June 2023: 55 per cent to June 2024), 26 per cent to June 2026 (June 2023: 30 per cent to June 2025) and the remaining 12 per cent realised post June 2026 (June 2023: 15 per cent post June 2025).