Pensions (Tables)

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Schedule of significant weighted average assumptions

The significant weighted-average assumptions used to determine net periodic costs of the plan during the year were as follows:

	2018	2017	2016
Year ended December 31,	%	%	%
Discount rate	2.50	2.70	3.85
Expected long-term rate of return on plan assets	3.96	3.87	4.90

The significant weighted-average assumptions used to determine benefit obligations of the plan at year end were as follows:

	2018	2017
December 31,	%	%
Discount rate	2.80	2.50

Schedule of fair value of plan assets

The fair value of Belmond’s pension plan assets at December 31, 2018 and 2017 by asset category is as follows:

	Total	Level 1	Level 2	Level 3
December 31, 2018	$’000	$’000	$’000	$’000
Cash	733	733	—	—
Equity securities:
U.K. managed funds	3,800	3,800	—	—
Overseas managed funds	7,437	7,437	—	—
Fixed income securities:
U.K. government bonds	3,701	3,701	—	—
Corporate bonds	3,910	3,910	—	—
Other types of investments:
Quoted hedge funds	4,091	4,091	—	—
Annuities	1,892	—	—	1,892
	25,564	23,672	—	1,892

	Total	Level 1	Level 2	Level 3
December 31, 2017	$’000	$’000	$’000	$’000
Cash	1,908	1,908	—	—
Equity securities:
U.K. managed funds	4,529	4,529	—	—
Overseas managed funds	8,486	8,486	—	—
Fixed income securities:
U.K. government bonds	3,058	3,058	—	—
Corporate bonds	3,437	3,437	—	—
Other types of investments:
Quoted hedge funds	4,635	4,635	—	—
Annuities	2,179	—	—	2,179
	28,232	26,053	—	2,179

Schedule of fair value measurements using significant unobservable inputs (Level 3)

Reconciliations of fair value measurements using significant unobservable inputs (Level 3) at December 31, 2018 and 2017 are as follows:

	Annuities
Year ended December 31, 2018	$’000
Beginning balance at January 1, 2018	2,179
Foreign exchange	(129	)
Actual return on plan assets:
Assets still held at the reporting date	(88	)
Purchases, sales and settlements, net	(70	)
Ending balance at December 31, 2018	1,892

	Annuities
Year ended December 31, 2017	$’000
Beginning balance at January 1, 2017	1,942
Foreign exchange	190
Actual return on plan assets:
Assets still held at the reporting date	120
Purchases, sales and settlements, net	(73	)
Ending balance at December 31, 2017	2,179

Schedule of changes in the benefit obligation, the plan assets and funded status of the plan

The changes in the benefit obligation, the plan assets and the funded status for the plan were as follows:

	2018		2017		2016
Year ended December 31,	$’000		$’000		$’000
Change in benefit obligation:
Benefit obligation at beginning of year	28,882		25,465		24,556
Interest cost	705		713		861
Actuarial loss/(gain)	(2,027	)	663		5,259
Benefits paid	(556	)	(485	)	(529	)
Foreign currency translation	(1,627	)	2,526		(4,682	)
Benefit obligation at end of year	25,377		28,882		25,465
Change in plan assets:
Fair value of plan assets at beginning of year	28,232		24,018		24,202
Actual return on plan assets	(1,013	)	1,264		3,116
Employer contributions	527		1,009		1,730
Benefits paid	(556	)	(485	)	(529	)
Foreign currency translation	(1,626	)	2,426		(4,501	)
Fair value of plan assets at end of year	25,564		28,232		24,018
Funded status at end of year	187		(650	)	(1,447	)
Net actuarial (gain)/loss recognized in other comprehensive loss	(689	)	(383	)	2,649

Schedule of amounts recognized in the consolidated balance sheets

Amounts recognized in the consolidated balance sheets consist of the following:

	2018	2017
December 31,	$’000	$’000
Non-current assets	187	—
Non-current liabilities	—	650

Schedule of amounts recognized in other comprehensive income/(loss)

Amounts recognized in accumulated other comprehensive loss gross of tax consist of the following:

	2018		2017
December 31,	$’000		$’000
Net loss	(11,511	)	(12,200	)
Prior service cost	—		—
Net transitional obligation	—		—
Total amount recognized in accumulated other comprehensive loss	(11,511	)	(12,200	)

Schedule of accumulated benefit obligations in excess of fair value of plan assets

The following table details certain information with respect to Belmond’s U.K. defined benefit pension plan:

	2018	2017
Year ended December 31,	$’000	$’000
Projected benefit obligation	25,377	28,882
Accumulated benefit obligation	25,377	28,882
Fair value of plan assets	25,564	28,232

Schedule of components of net periodic pension benefit cost

Components of net periodic benefit cost are as follows:

	2018		2017		2016
Year ended December 31,	$’000		$’000		$’000
Service cost	—		—		—
Interest cost on projected benefit obligation	705		713		861
Expected return on assets	(1,081	)	(997	)	(1,121	)
Net amortization and deferrals	756		780		615
Net periodic benefit cost	380		496		355

Schedule of future benefit payments

The following benefit payments, which reflect assumed future service, are expected to be paid:

Year ended December 31,	$’000
2019	629
2020	504
2021	648
2022	549
2023	652
Next five years	5,032

Schedule of contributions to defined contribution pension plans

Total contributions to the plans were as follows:

	2018	2017	2016
Year ended December 31,	$’000	$’000	$’000
Employers’ contributions	2,304	2,030	2,052