Fair value measurement (Tables)

12 Months Ended

Dec. 31, 2017

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Summary of Carrying Amounts and Fair Values of Financial Assets and Liabilities

The following table compares carrying amounts and fair values of the Group’s financial assets and liabilities:

			2017						2016
	Note		Carrying value $m			Fair value $m			Carrying value $m			Fair value $m
Financial assets
Cash and cash equivalents		17		168			168			206			206
Equity securities available-for-salea		15		127			127			156			156
Loans and receivables:
Other financial assets		15		117			117			112			112
Trade and other receivables, excluding prepayments		16		477			477			403			403
				889			889			877			877
Financial liabilities
£400m 3.875% bonds 2022		20		(538	)		(593	)		(489	)		(541	)
£300m 3.75% bonds 2025		20		(406	)		(441	)		(370	)		(408	)
£350m 2.125% bonds 2026		20		(472	)		(454	)		(430	)		(411	)
Finance lease obligations		20		(231	)		(318	)		(227	)		(297	)
Unsecured bank loans		20		(262	)		(262	)		(107	)		(107	)
Bank overdrafts		20		(110	)		(110	)		(89	)		(89	)
Loyalty programme liability		32		(760	)		(760	)		(685	)		(685	)
Trade and other payables		18		(889	)		(889	)		(881	)		(881	)
Derivativesa				—			—			(3	)		(3	)
Provisions		19		(8	)		(8	)		(8	)		(8	)
				(3,676	)		(3,835	)		(3,289	)		(3,430	)

^a  Financial assets and liabilities which are measured at fair value.

Summary of Fair Value Measurement Hierarchy of Assets and Liabilities

	2017											2016
	Level 1 $m			Level 2 $m			Level 3 $m		Total $m			Level 1 $m			Level 2 $m			Level 3 $m		Total $m
Assets
Equity securities available-for-sale:
Quoted equity shares		10			—			—		10			14			—			—		14
Unquoted equity shares		—			—			117		117			—			—			142		142
Liabilities
£400m 3.875% bonds 2022		(593	)		—			—		(593	)		(541	)		—			—		(541	)
£300m 3.75% bonds 2025		(441	)		—			—		(441	)		(408	)		—			—		(408	)
£350m 2.125% bonds 2026		(454	)		—			—		(454	)		(411	)		—			—		(411	)
Finance lease obligations		—			(318	)		—		(318	)		—			(297	)		—		(297	)
Derivatives		—			—			—		—			—			(3	)		—		(3	)

Summary of Reconciliation of Movements in the Fair Values of Investments Classified as Level 3

The following table reconciles the movements in the fair values of investments classified as Level 3 during the year:

	2017 $m			2016 $m
At 1 January		142			136
Additions		2			2
Disposals		(3	)		(15	)
Reclassification of associate (note 14)		—			14
Valuation gains recognised in other comprehensive income		48			5
Valuation gains reclassified to the income statement on disposal		(73	)		—
Exchange and other adjustments		1			—
At 31 December		117			142