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Financial risk management (Tables)
 12 Months Ended
Dec. 31, 2019
Financial Instruments [Abstract]  
Schedule of outstanding foreign currency derivative contracts and interest rate risk repricing profile
The following table provides the detail of outstanding commodity derivative contracts as of December 31, 2019:
Type
 
Unit of measure
 
Contracted volume
 
Contracted price range
 
Contracted date of maturity
High density polyethylene swaps
 
pound
 
8,250,000
 
$0.79 - $0.79
 
Jan 2020 - Nov 2020
Aluminum swaps
 
metric tonne
 
111
 
$1,953.50 - $1,953.50
 
Jan 2020 - Jan 2020
Aluminum Midwest Premium swaps
 
metric tonne
 
111
 
$395.36 - $395.36
 
Jan 2020 - Jan 2020
Natural gas swaps
 
million BTU
 
4,334,903
 
$2.33 - $2.86
 
Feb 2020 - Dec 2020
Ethylene
 
pound
 
2,152,533
 
$0.29 - $0.29
 
Jan 2020 - Apr 2020
Polymer-grade propylene swaps
 
pound
 
52,015,428
 
$0.36 - $0.41
 
Jan 2020 - Jul 2020
Benzene swaps
 
U.S. liquid gallon
 
9,065,148
 
$2.23 - $2.55
 
Feb 2020 - Sep 2020
Diesel swaps
 
U.S. liquid gallon
 
4,865,790
 
$3.00 - $3.30
 
Jan 2020 - Dec 2020
Low-density polyethylene swaps
 
pound
 
12,000,000
 
$0.84 - $0.84
 
Jan 2020 - Dec 2020

The following table sets out the Group's interest rate risk repricing profile:
(In $ million)
 
Total
 
Less than one year
 
One to three years
 
Three to five years
 
Greater than five years
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
Fixed rate instruments
 
 
 
 
 
 
 
 
 
 
Borrowings
 
(6,013
)
 
(3,137
)
 
—

 
(2,400
)
 
(476
)
Total fixed rate instruments
 
(6,013
)
 
(3,137
)
 
—

 
(2,400
)
 
(476
)
Floating rate instruments
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
1,291

 
1,291

 
—

 
—

 
—

Related party receivables
 
339

 
339

 
—

 
—

 
—

Borrowings
 
(4,657
)
 
(4,657
)
 
—

 
—

 
—

Total floating rate instruments
 
(3,027
)
 
(3,027
)
 
—

 
—

 
—

Total
 
(9,040
)
 
(6,164
)
 
—

 
(2,400
)
 
(476
)

(In $ million)
 
Total
 
Less than one year
 
One to three years
 
Three to five years
 
Greater than five years
As of December 31, 2018
 
 
 
 
 
 
 
 
 
 
Fixed rate instruments
 
 
 
 
 
 
 
 
 
 
Borrowings
 
(6,377
)
 
(2
)
 
(3,488
)
 
(1,604
)
 
(1,283
)
Total fixed rate instruments
 
(6,377
)
 
(2
)
 
(3,488
)
 
(1,604
)
 
(1,283
)
Floating rate instruments
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
783

 
783

 
—

 
—

 
—

Related party receivables
 
328

 
328

 
—

 
—

 
—

Borrowings
 
(4,699
)
 
(4,699
)
 
—

 
—

 
—

Total floating rate instruments
 
(3,588
)
 
(3,588
)
 
—

 
—

 
—

Total
 
(9,965
)
 
(3,590
)
 
(3,488
)
 
(1,604
)
 
(1,283
)
Schedule of contractual cash flows for non-derivative financial liabilities
The following table sets out contractual cash flows for all financial liabilities including commodity and foreign currency derivatives:
(In $ million)
 
Carrying amount
 
Total
 
Less than one year
 
One to three years
 
Three to five years
 
Greater than five years
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Non-derivative financial liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables
 
(975
)
 
(839
)
 
(839
)
 
—

 
—

 
—

Lease liabilities
 
(376
)
 
(453
)
 
(105
)
 
(168
)
 
(102
)
 
(78
)
Borrowings, including interest
 
(10,640
)
 
(12,127
)
 
(4,043
)
 
(1,513
)
 
(6,031
)
 
(540
)
 
 
(11,991
)
 
(13,419
)
 
(4,987
)
 
(1,681
)
 
(6,133
)
 
(618
)
Derivative financial assets (liabilities)
 
 
 
 
 
 
 
 
 
 
 
 
Commodity and foreign currency derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
Inflows
 
—

 
1

 
1

 
—

 
—

 
—

Outflows
 
(4
)
 
(5
)
 
(5
)
 
—

 
—

 
—

 
 
(4
)
 
(4
)
 
(4
)
 
—

 
—

 
—

Total
 
(11,995
)
 
(13,423
)
 
(4,991
)
 
(1,681
)
 
(6,133
)
 
(618
)

(In $ million)
 
Carrying amount
 
Total
 
Less than one year
 
One to three years
 
Three to five years
 
Greater than five years
As of December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Non-derivative financial liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables
 
(1,163
)
 
(1,015
)
 
(1,015
)
 
—

 
—

 
—

Borrowings, including interest*
 
(11,035
)
 
(13,406
)
 
(1,087
)
 
(5,319
)
 
(5,556
)
 
(1,444
)
 
 
(12,198
)
 
(14,421
)
 
(2,102
)
 
(5,319
)
 
(5,556
)
 
(1,444
)
Derivative financial assets (liabilities)
 
 
 
 
 
 
 
 
 
 
 
 
Commodity and foreign currency derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
Inflows
 
—

 
8

 
8

 
—

 
—

 
—

Outflows
 
(17
)
 
(25
)
 
(25
)
 
—

 
—

 
—

 
 
(17
)
 
(17
)
 
(17
)
 
—

 
—

 
—

Total
 
(12,215
)
 
(14,438
)
 
(2,119
)
 
(5,319
)
 
(5,556
)
 
(1,444
)
Schedule of contractual cash flows for derivative financial assets (liabilities)
The following table sets out contractual cash flows for all financial liabilities including commodity and foreign currency derivatives:
(In $ million)
 
Carrying amount
 
Total
 
Less than one year
 
One to three years
 
Three to five years
 
Greater than five years
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Non-derivative financial liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables
 
(975
)
 
(839
)
 
(839
)
 
—

 
—

 
—

Lease liabilities
 
(376
)
 
(453
)
 
(105
)
 
(168
)
 
(102
)
 
(78
)
Borrowings, including interest
 
(10,640
)
 
(12,127
)
 
(4,043
)
 
(1,513
)
 
(6,031
)
 
(540
)
 
 
(11,991
)
 
(13,419
)
 
(4,987
)
 
(1,681
)
 
(6,133
)
 
(618
)
Derivative financial assets (liabilities)
 
 
 
 
 
 
 
 
 
 
 
 
Commodity and foreign currency derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
Inflows
 
—

 
1

 
1

 
—

 
—

 
—

Outflows
 
(4
)
 
(5
)
 
(5
)
 
—

 
—

 
—

 
 
(4
)
 
(4
)
 
(4
)
 
—

 
—

 
—

Total
 
(11,995
)
 
(13,423
)
 
(4,991
)
 
(1,681
)
 
(6,133
)
 
(618
)

(In $ million)
 
Carrying amount
 
Total
 
Less than one year
 
One to three years
 
Three to five years
 
Greater than five years
As of December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Non-derivative financial liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Trade and other payables
 
(1,163
)
 
(1,015
)
 
(1,015
)
 
—

 
—

 
—

Borrowings, including interest*
 
(11,035
)
 
(13,406
)
 
(1,087
)
 
(5,319
)
 
(5,556
)
 
(1,444
)
 
 
(12,198
)
 
(14,421
)
 
(2,102
)
 
(5,319
)
 
(5,556
)
 
(1,444
)
Derivative financial assets (liabilities)
 
 
 
 
 
 
 
 
 
 
 
 
Commodity and foreign currency derivatives:
 
 
 
 
 
 
 
 
 
 
 
 
Inflows
 
—

 
8

 
8

 
—

 
—

 
—

Outflows
 
(17
)
 
(25
)
 
(25
)
 
—

 
—

 
—

 
 
(17
)
 
(17
)
 
(17
)
 
—

 
—

 
—

Total
 
(12,215
)
 
(14,438
)
 
(2,119
)
 
(5,319
)
 
(5,556
)
 
(1,444
)


*
Contractual cash flows presented as of December 31, 2018 have been adjusted to correct for an overstatement of borrowings as previously reported.
Classification and fair value summary of financial liabilities
Classification and fair values
(In $ million)
 
Fair value through profit or loss
 
Cash, loans and receivables
 
Other liabilities
 
Total carrying amount
 
Fair value
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
—

 
1,291

 
—

 
1,291

 
1,291

Current and non-current receivables
 
—

 
1,408

 
—

 
1,408

 
1,408

Derivative financial assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
1

 
—

 
—

 
1

 
1

Interest rate swap derivatives
 
7

 
—

 
—

 
7

 
7

Embedded derivatives
 
149

 
—

 
—

 
149

 
149

Total assets
 
157

 
2,699

 
—

 
2,856

 
2,856

Liabilities
 
 
 
 
 
 
 
 
 
 
Trade and other payables
 
—

 
—

 
(975
)
 
(975
)
 
(975
)
Non-current payables
 
—

 
—

 
(36
)
 
(36
)
 
(36
)
Derivative financial liabilities:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
(5
)
 
—

 
—

 
(5
)
 
(5
)
Lease liabilities
 
—

 
—

 
(376
)
 
(376
)
 
(376
)
Borrowings
 
—

 
—

 
(10,640
)
 
(10,640
)
 
(10,804
)
Total liabilities
 
(5
)
 
—

 
(12,027
)
 
(12,032
)
 
(12,196
)

(In $ million)
 
Fair value through profit or loss
 
Cash, loans and receivables
 
Other liabilities
 
Total carrying amount
 
Fair value
As of December 31, 2018
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
—

 
783

 
—

 
783

 
783

Current and non-current receivables
 
—

 
1,469

 
—

 
1,469

 
1,469

Derivative financial assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
1

 
—

 
—

 
1

 
1

Interest rate swap derivatives
 
28

 
—

 
—

 
28

 
28

Embedded derivatives
 
12

 
—

 
—

 
12

 
12

Total assets
 
41

 
2,252

 
—

 
2,293

 
2,293

Liabilities
 
 
 
 
 
 
 
 
 
 
Trade and other payables
 
—

 
—

 
(1,163
)
 
(1,163
)
 
(1,163
)
Non-current payables
 
—

 
—

 
(45
)
 
(45
)
 
(45
)
Derivative financial liabilities:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
(18
)
 
—

 
—

 
(18
)
 
(18
)
Borrowings
 
—

 
—

 
(11,035
)
 
(11,035
)
 
(10,933
)
Total liabilities
 
(18
)
 
—

 
(12,243
)
 
(12,261
)
 
(12,159
)
Classification and fair value summary of financial assets
Classification and fair values
(In $ million)
 
Fair value through profit or loss
 
Cash, loans and receivables
 
Other liabilities
 
Total carrying amount
 
Fair value
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
—

 
1,291

 
—

 
1,291

 
1,291

Current and non-current receivables
 
—

 
1,408

 
—

 
1,408

 
1,408

Derivative financial assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
1

 
—

 
—

 
1

 
1

Interest rate swap derivatives
 
7

 
—

 
—

 
7

 
7

Embedded derivatives
 
149

 
—

 
—

 
149

 
149

Total assets
 
157

 
2,699

 
—

 
2,856

 
2,856

Liabilities
 
 
 
 
 
 
 
 
 
 
Trade and other payables
 
—

 
—

 
(975
)
 
(975
)
 
(975
)
Non-current payables
 
—

 
—

 
(36
)
 
(36
)
 
(36
)
Derivative financial liabilities:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
(5
)
 
—

 
—

 
(5
)
 
(5
)
Lease liabilities
 
—

 
—

 
(376
)
 
(376
)
 
(376
)
Borrowings
 
—

 
—

 
(10,640
)
 
(10,640
)
 
(10,804
)
Total liabilities
 
(5
)
 
—

 
(12,027
)
 
(12,032
)
 
(12,196
)

(In $ million)
 
Fair value through profit or loss
 
Cash, loans and receivables
 
Other liabilities
 
Total carrying amount
 
Fair value
As of December 31, 2018
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
—

 
783

 
—

 
783

 
783

Current and non-current receivables
 
—

 
1,469

 
—

 
1,469

 
1,469

Derivative financial assets:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
1

 
—

 
—

 
1

 
1

Interest rate swap derivatives
 
28

 
—

 
—

 
28

 
28

Embedded derivatives
 
12

 
—

 
—

 
12

 
12

Total assets
 
41

 
2,252

 
—

 
2,293

 
2,293

Liabilities
 
 
 
 
 
 
 
 
 
 
Trade and other payables
 
—

 
—

 
(1,163
)
 
(1,163
)
 
(1,163
)
Non-current payables
 
—

 
—

 
(45
)
 
(45
)
 
(45
)
Derivative financial liabilities:
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
(18
)
 
—

 
—

 
(18
)
 
(18
)
Borrowings
 
—

 
—

 
(11,035
)
 
(11,035
)
 
(10,933
)
Total liabilities
 
(18
)
 
—

 
(12,243
)
 
(12,261
)
 
(12,159
)
Disclosure of financial assets through profit or loss
The following table sets out an analysis of the Group's financial instruments that are measured subsequent to initial recognition at fair value and are grouped into levels based on the degree to which the fair value is observable:

•
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets
•
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)
•
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(In $ million)
 
Level 1
 
Level 2
 
Level 3
 
Total
As of December 31, 2019
 
 
 
 
 
 
 
 
Financial assets at fair value through profit or loss:
 
 
 
 
 
 
 
 
Derivative financial assets (liabilities):
 
 
 
 
 
 
 
 
Commodity derivatives, net
 
—

 
(4
)
 
—

 
(4
)
Interest rate swap derivatives, net
 
—

 
7

 
—

 
7

Embedded derivatives
 
—

 
—

 
149

 
149

Total
 
—

 
3

 
149

 
152

 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
 
 
 
 
Financial assets at fair value through profit or loss:
 
 
 
 
 
 
 
 
Derivative financial assets (liabilities):
 
 
 
 
 
 
 
 
Commodity derivatives, net
 
—

 
(17
)
 
—

 
(17
)
Foreign currency derivatives, net
 
—

 
—

 
—

 
—

Interest rate swap derivatives, net
 
—

 
28

 
—

 
28

Embedded derivatives
 
—

 
12

 
—

 
12

Total
 
—

 
23

 
—

 
23
Disclosure of financial liabilities through profit or loss
The following table sets out an analysis of the Group's financial instruments that are measured subsequent to initial recognition at fair value and are grouped into levels based on the degree to which the fair value is observable:

•
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets
•
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)
•
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(In $ million)
 
Level 1
 
Level 2
 
Level 3
 
Total
As of December 31, 2019
 
 
 
 
 
 
 
 
Financial assets at fair value through profit or loss:
 
 
 
 
 
 
 
 
Derivative financial assets (liabilities):
 
 
 
 
 
 
 
 
Commodity derivatives, net
 
—

 
(4
)
 
—

 
(4
)
Interest rate swap derivatives, net
 
—

 
7

 
—

 
7

Embedded derivatives
 
—

 
—

 
149

 
149

Total
 
—

 
3

 
149

 
152

 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
 
 
 
 
Financial assets at fair value through profit or loss:
 
 
 
 
 
 
 
 
Derivative financial assets (liabilities):
 
 
 
 
 
 
 
 
Commodity derivatives, net
 
—

 
(17
)
 
—

 
(17
)
Foreign currency derivatives, net
 
—

 
—

 
—

 
—

Interest rate swap derivatives, net
 
—

 
28

 
—

 
28

Embedded derivatives
 
—

 
12

 
—

 
12

Total
 
—

 
23

 
—

 
23
Disclosure of significant unobservable inputs used in fair value measurement of liabilities
The table below presents changes in fair value for all assets and liabilities categorized as Level 3 as of December 31, 2019:
(In $ million)
 
Embedded derivatives
Balance as of January 1, 2019
 
—

Net transfers to Level 3
 
12

Net gains (losses) recognized in net financial income (expenses)
 
137

Balance as of December 31, 2019
 
149
Disclosure of significant unobservable inputs used in fair value measurement of assets
The table below presents changes in fair value for all assets and liabilities categorized as Level 3 as of December 31, 2019:
(In $ million)
 
Embedded derivatives
Balance as of January 1, 2019
 
—

Net transfers to Level 3
 
12

Net gains (losses) recognized in net financial income (expenses)
 
137

Balance as of December 31, 2019
 
149