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Capital disclosures and analysis of changes in net debt (Tables)
 12 Months Ended
Dec. 31, 2017
Subclassifications of assets, liabilities and equities [abstract]  
Disclosure of the net debt ratio
We aim to manage the net debt ratio within a 20-30% band and maintain a significant liquidity buffer. At 31 December 2017, the net debt ratio was 27.4% (2016 26.8%).
 
 
 
$ million

At 31 December
 
2017

2016

Gross debt
 
63,230

58,300

Less: fair value asset (liability) of hedges related to finance debta
 
(175
)
(697
)
 
 
63,405

58,997

Less: cash and cash equivalents
 
25,586

23,484

Net debt
 
37,819

35,513

Equity
 
100,404

96,843

Net debt ratio
 
27.4
%
26.8
%
a 
Derivative financial instruments entered into for the purpose of managing interest rate and foreign currency exchange risk associated with net debt with a fair value liability position of $634 million (2016 liability of $1,962 million, 2015 liability of $1,617 million) are not included in the calculation of net debt shown above as hedge accounting was not applied for these instruments. The movement in the year is attributable to a net cash outflow of $242 million (2016 net cash outflow $299 million) and fair value gains of $1,086 million (2016 fair value losses of $644 million).
Disclosure of changes in net debt
An analysis of changes in net debt is provided below. Amendments have been made to the presentation of this analysis to eliminate movements related to non-hedge accounted derivatives.
 
 
 
 
 
 
 
 
 
$ million

 
 
 
 
 
2017

 
 
 
2016

Movement in net debt
 
Finance
debt

Hedge-
accounted
derivatives

Cash and
cash
equivalents

Net debt

Finance
debt

Hedge-
accounted
derivatives

Cash and
cash
equivalents

Net debt

At 1 January
 
(58,300
)
(697
)
23,484

(35,513
)
(53,168
)
(379
)
26,389

(27,158
)
Exchange adjustments
 
(1,324
)
—

544

(780
)
380

—

(820
)
(440
)
Net financing cash flow
 
(2,236
)
(284
)
1,558

(962
)
(6,363
)
256

(2,085
)
(8,192
)
Fair value gains (losses)
 
(1,314
)
1,282

—

(32
)
805

(896
)
—

(91
)
Other movements
 
(56
)
(476
)
—

(532
)
46

322

—

368

At 31 December
 
(63,230
)
(175
)
25,586

(37,819
)
(58,300
)
(697
)
23,484

(35,513
)