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Financial risk management and derivative financial instruments (Tables)
 12 Months Ended
Dec. 31, 2023
Text Block [Abstract]  
Summary of Derivative Financial Instruments
Derivatives are recorded in the Group statement of financial position at fair value (see note 25) as follows:
 
Derivatives
          
  2023
$m
           
  2022
$m
  
Currency swaps
      
 
(20
) 
     
 
(4
) 
Currency forwards
      
 
15
 
     
 
–
 
Analysed as:
      
 
 
 
     
 
 
 
Non-current
assets
      
 
20
 
     
 
7
 
Current liabilities
      
 
(25
) 
     
 
–
 
Non-current
liabilities
      
 
–
 
     
 
(11
) 
 
      
 
(5
) 
     
 
(4
) 
Disclosure of Detailed Information About Hedging Instruments
Currency swaps and forwards have been transacted as follows:
 
Date of designation
       
Hedge type
   
Pay leg 
   
Interest rate 
  
Receive leg  
   
Interest rate  
  
Maturity
   
Risk
   
Hedged item
November 2018
     
Cash flow
   
£436m 
   
3.5%
  
€
500m
   
2.125%
  
May 2027
   
Foreign exchange 
   
€
500m 2.125% bonds 2027
October 2020
     
Cash flow
   
£454m
   
2.7%
  
€
500m
   
1.625%
  
October 2024
   
Foreign exchange
   
€
500m 1.625% bonds 2024
November 2023
     
Cash flow
   
$657m
   
6.0%
  
€
600m
   
4.375%
  
November 2029 
   
Foreign exchange
   
€
600m 4.375% bonds 2029
October 2023
     
Net investment 
   
$425m
   
n/a
  
£344m
   
n/a
  
October 2028
    Spot foreign  exchange   
Net assets of specified subsidiaries
with US dollar foreign currency
Summary of Interest and Foreign Exchange Risk Sensitivities
 
      
 
  2023
$m
 
 
     
 
  2022
$m
 
 
     
 
  2021
$m
 
 
(Decrease)/increase in profit before tax
  
 
   
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
Sterling: US dollar exchange rate
  
$0.05 fall
      
 
(14
) 
     
 
(3
) 
     
 
7
 
Euro: US dollar exchange rate
  
$0.05 fall
      
 
(3
) 
     
 
–
 
     
 
–
 
US dollar interest rates
  
1% increase
      
 
2
 
     
 
4
 
     
 
7
 
Sterling interest rates
  
1% increase
      
 
9
 
     
 
4
 
     
 
5
 
(Increase)/decrease in net liabilities
  
 
      
 
 
 
     
 
 
 
     
 
 
 
Sterling: US dollar exchange rate
  
$0.05 fall
      
 
(12
) 
     
 
27
 
     
 
29
 
Euro: US dollar exchange rate
  
$0.05 fall
      
 
49
 
     
 
50
 
     
 
50
 
Sterling: euro exchange rate
  
€
0.05 fall
      
 
64
 
     
 
60
 
     
 
67
 
Summary of amended covenant test levels for syndicated and bilateral facilities
 
      
 
31 December
    2023 and 2022
 
 
   
 
         
 
   
 
31 December
2021
 
 
Covenant test levels for RCF
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Leverage
      
 
<4.0x
 
   
 
 
 
   
 
waived
 
Interest cover
      
 
>3.5x
 
   
 
 
 
   
 
waived
 
Liquidity
      
 
n/a
 
   
 
 
 
   
 
$400m
a
 
 
a
 
Defined as unrestricted cash and cash equivalents (net of bank overdrafts) plus undrawn facilities with a remaining term of at least six months.
Summary of covenant tests
 
      
 
  2023
 
     
 
  2022
 
     
 
  2021
a 
 
Covenant measures
   
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
  
 
 
 
   
 
 
 
Covenant EBITDA ($m)
      
 
1,086
  
     
 
896
  
     
 
601
 
Covenant net debt ($m)
      
 
2,328
 
     
 
1,898
 
     
 
1,801
 
Covenant interest payable ($m)
      
 
88
 
     
 
109
 
     
 
133
 
Leverage
      
 
2.14
 
     
 
2.12
 
     
 
3.00
 
Interest cover
      
 
12.34
 
     
 
8.22
 
     
 
4.52
 
Liquidity ($m)
      
 
n/a
 
     
 
n/a
 
     
 
2,655
 
 
a
At 31 December 2021, the leverage and interest covenants under the previous facilities were waived and replaced with a liquidity requirement of $400m.
Summary of Undiscounted Contractual Cash Flows of Non-Derivative Financial Liabilities
31 December 2023
          
 Less than
1 year
$m
    
  Between
1 and 2
years
$m
    
  Between
2 and 5
years
$m
    
 More than
5 years
$m
    
     Total
$m
  
Non-derivative
financial liabilities:
      
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Bank overdrafts
      
 
44
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
44
 
€
500m 1.625% bonds 2024
      
 
563
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
563
 
£300m 3.75% bonds 2025
      
 
14
 
  
 
397
 
  
 
–
 
  
 
–
 
  
 
411
 
£350m 2.125% bonds 2026
      
 
9
 
  
 
9
 
  
 
456
 
  
 
–
 
  
 
474
 
€
500m 2.125% bonds 2027
      
 
12
 
  
 
12
 
  
 
577
 
  
 
–
 
  
 
601
 
£400m 3.375% bonds 2028
      
 
17
 
  
 
17
 
  
 
561
 
  
 
–
 
  
 
595
 
€
600m 4.375% bonds 2029
      
 
29
 
  
 
29
 
  
 
87
 
  
 
694
 
  
 
839
 
Lease liabilities
      
 
57
 
  
 
52
 
  
 
130
 
  
 
3,164
 
  
 
3,403
 
Trade and other payables (excluding deferred and contingent purchase consideration)
      
 
651
 
  
 
1
 
  
 
3
 
  
 
2
 
  
 
657
 
Deferred and contingent purchase consideration
      
 
13
 
  
 
–
 
  
 
81
 
  
 
–
 
  
 
94
 
Financial guarantee contracts
      
 
50
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
50
 
Derivative financial liabilities:
      
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Currency swaps hedging
€
500m 1.625% bonds 2024 outflows
      
 
594
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
594
 
Currency swaps hedging
€
500m 1.625% bonds 2024 inflows
      
 
(563
) 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(563
) 
Currency swaps hedging
€
500m 2.125% bonds 2027 outflows
      
 
19
 
  
 
19
 
  
 
585
 
  
 
–
 
  
 
623
 
Currency swaps hedging
€
500m 2.125% bonds 2027 inflows
      
 
(12
) 
  
 
(12
) 
  
 
(577
) 
  
 
–
 
  
 
(601
) 
Currency swaps hedging
€
600m 4.375% bonds 2029 outflows
      
 
40
 
  
 
40
 
  
 
119
 
  
 
696
 
  
 
895
 
Currency swaps hedging
€
600m 4.375% bonds 2029 inflows
      
 
(29
) 
  
 
(29
) 
  
 
(87
) 
  
 
(694
) 
  
 
(839
) 
Forward currency contract 2028 inflows
      
 
–
 
  
 
–
 
  
 
(438
) 
  
 
–
 
  
 
(438
) 
Forward currency contract 2028 outflows
      
 
–
 
  
 
–
 
  
 
425
 
  
 
–
 
  
 
425
 
 
31 December 2022
a
         
    Less than
1 year
$m
    
    Between
1 and 2
years
$m
    
   Between
2 and 5
years
$m
    
  More than
5 years
$m
     
        Total
$m
  
Non-derivative
financial liabilities:
      
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
Bank overdrafts
      
 
55
 
  
 
–
 
  
 
–
 
  
 
–
 
   
 
55
 
€
500m 1.625% bonds 2024
      
 
9
 
  
 
543
 
  
 
–
 
  
 
–
 
   
 
552
 
£300m 3.75% bonds 2025
      
 
14
 
  
 
14
 
  
 
375
 
  
 
–
 
   
 
403
 
£350m 2.125% bonds 2026
      
 
9
 
  
 
9
 
  
 
439
 
  
 
–
 
   
 
457
 
€
500m 2.125% bonds 2027
      
 
11
 
  
 
11
 
  
 
568
 
  
 
–
 
   
 
590
 
£400m 3.375% bonds 2028
      
 
16
 
  
 
16
 
  
 
49
 
  
 
498
 
   
 
579
 
Lease liabilities
      
 
53
 
  
 
50
 
  
 
126
 
  
 
3,201
 
   
 
3,430
 
Trade and other payables (excluding deferred and contingent purchase consideration)
      
 
660
 
  
 
1
 
  
 
1
 
  
 
2
 
   
 
664
 
Deferred and contingent purchase consideration
      
 
–
 
  
 
13
 
  
 
39
 
  
 
42
 
   
 
94
 
Financial guarantee contracts
      
 
50
 
  
 
–
 
  
 
–
 
  
 
–
 
   
 
50
 
Derivative financial liabilities:
      
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
 
 
Currency swaps hedging
€
500m 1.625% bonds 2024 outflows
      
 
14
 
  
 
561
 
  
 
–
 
  
 
–
 
   
 
575
 
Currency swaps hedging
€
500m 1.625% bonds 2024 inflows
      
 
(9
) 
  
 
(543
) 
  
 
–
 
  
 
–
 
   
 
(552
) 
Currency swaps hedging
€
500m 2.125% bonds 2027 outflows
      
 
18
 
  
 
18
 
  
 
571
 
  
 
–
 
   
 
607
 
Currency swaps hedging
€
500m 2.125% bonds 2027 inflows
      
 
(11
) 
  
 
(11
) 
  
 
(568
) 
  
 
–
 
   
 
(590
) 
 
a
 
Re-presented
for the application of IFRS 9 ‘Financial Instruments’ to financial guarantee contracts.
Disclosure of Short-term Deposits by Counterparty Credit Rating
The table below analyses the Group’s short-term deposits, money market funds and repurchase agreement collateral classified as cash and cash equivalents by counterparty credit rating:
 
31 December 2023
          
  AAA 
$m 
     
     AA+
$m
     
    AA
$m
     
    AA-
$m
     
    A+
$m
     
    A
$m
     
    A-
$m
     
   BBB+ and
below
$m
     
    Total
$m
  
Short-term deposits
      
 
–
 
   
 
–
 
   
 
–
 
   
 
129
 
   
 
147
 
   
 
258
 
   
 
77
 
   
 
21
 
   
 
632
 
Money market funds
      
 
375
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
375
 
Repurchase agreement collateral
      
 
110
 
   
 
6
 
   
 
–
 
   
 
20
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
136
 
 
31 December 2022
          
   AAA
$m
     
      AA+ 
$m 
     
    AA
$m
     
    AA-
$m
     
    A+
$m
     
    A
$m
     
    A-
$m
     
    BBB+ and
below
$m
     
     Total
$m
  
Short-term deposits
      
 
–
 
   
 
–
 
   
 
–
 
   
 
66
 
   
 
127
 
   
 
141
 
   
 
50
 
   
 
37
 
   
 
421
 
Money market funds
      
 
360
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
360
 
Repurchase agreement collateral
      
 
22
 
   
 
2
 
   
 
6
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
30