Financial risk management and derivatives (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Derivative Financial Instruments

These derivative financial instruments are recorded in the Group statement of financial position at their fair values (see note 23) as follows:


	2018 $m		2017 $m
Currency swaps^a		7		—
Forward foreign exchange contracts^b		1		—

		8		—

Analysed as:
Non-current assets		7		—
Current assets		1		—

		8		—

^a	Designated as a cash flow hedge.

^b	Designated as net investment hedges.

Summary of Interest and Foreign Exchange Risk Sensitivities


		2018 $m			2017 $m			2016 $m
Increase/(decrease) in profit before tax
Sterling: US dollar exchange rate	5¢ fall		4.1			4.0			5.2
Euro: US dollar exchange rate	5¢ fall		(2.4	)		(2.1	)		(2.2	)
US dollar interest rates	1% increase		(0.9	)		(2.9	)		(1.8	)
Sterling interest rates	1% increase		5.5			0.3			1.3
Decrease/(increase) in net liabilities
Sterling: US dollar exchange rate	5¢ fall		25.8			44.1			47.2
Euro: US dollar exchange rate	5¢ fall		23.1			(4.1	)		(5.5	)
Sterling: euro exchange rate	5¢ fall		31.9			—			—

Summary of Undiscounted Contractual Cash Flows of Financial Liabilities

The following are the undiscounted contractual cash flows of financial liabilities, including interest payments. The payment profile of contingent consideration has been based on management’s forecasts and could in reality be different from expectations.


	Less than 1 year $m			Between 1 and 2 years $m			Between 2 and 5 years $m			More than 5 years $m			Total $m
31 December 2018
Non-derivative financial liabilities:
Deferred and contingent consideration		7			8			37			262			314
Bank overdrafts		104			0			0			0			104
£400m 3.875% bonds 2022		20			20			550			0			590
£300m 3.75% bonds 2025		14			14			43			412			483
£350m 2.125% bonds 2026		10			10			28			475			523
€500m 2.125% bonds 2027		6			12			37			621			676
Finance lease obligations		16			16			56			3,212			3,300
Trade and other payables		611			5			9			20			645
Derivative financial liabilities:
Forward foreign exchange contracts		(1	)		0			0			0			(1	)
Currency swaps hedging €500m 2.125% bonds 2027 outflows		20			20			58			625			723
Currency swaps hedging €500m 2.125% bonds 2027 inflows		(6	)		(12	)		(37	)		(621	)		(676	)


	Less than 1 year $m			Between 1 and 2 years $m			Between 2 and 5 years $m			More than 5 years $m			Total $m
31 December 2017
Non-derivative financial liabilities:
Bank overdrafts		110			—			—			—			110
Unsecured bank loans		264			—			—			—			264
£400m 3.875% bonds 2022		21			21			601			—			643
£300m 3.75% bonds 2025		15			15			46			445			521
£350m 2.125% bonds 2026		10			10			30			510			560
Finance lease obligations		16			16			51			3,234			3,317
Trade and other payables		597			5			11			20			633

Disclosure of Short-term Deposits by Counterparty Credit Rating

The table below analyses the Group’s short-term deposits at 31 December 2018 by counterparty credit rating.


	AAA		AA-		A		Total
Short term deposits		76		70		88		234

Summary of information about collateral held as security

The table below contains information about the collateral held as security at 31 December 2018.


Collateral by type	2018
Government bonds		60
Supranational bonds		208

		268


Collateral by credit rating	2018
AAA		207
AA		34
AA-		27

		268

Summary of Financial Assets Represents Maximum Exposure to Credit Risk

The carrying amount of financial assets represents the maximum exposure to credit risk.


	Note			2018 $m		2017 $m
Cash and cash equivalents		(17	)		704		168
Derivative financial instruments		(22	)		8		—
Financial assets measured at amortised cost:
Other financial assets		(15	)		145		117
Trade and other receivables, excluding prepayments		(16	)		502		477

					1,359		762