XML 228 R71.htm IDEA: XBRL DOCUMENT v3.19.1
Capital disclosures and analysis of changes in net debt (Tables)
 12 Months Ended
Dec. 31, 2018
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 2018, the net debt ratio was 30.3% (2017 27.4%).
 
 
 
$ million

At 31 December
 
2018

2017

Gross debt
 
65,799

63,230

Less: fair value asset (liability) of hedges related to finance debta
 
(813
)
(175
)
 
 
66,612

63,405

Less: cash and cash equivalents
 
22,468

25,586

Net debt
 
44,144

37,819

Equity
 
101,548

100,404

Net debt ratio
 
30.3
%
27.4
%
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 $827 million (2017 liability of $634 million, 2016 liability of $1,962 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 flow of $nil (2017 net cash outflow $242 million) and fair value losses of $193 million (2017 fair value gains of $1,086 million).
Disclosure of changes in net debt
An analysis of changes in net debt is provided below.
 
 
 
 
 
 
 
 
 
$ million

 
 
 
 
 
2018

 
 
 
2017

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
 
(63,230
)
(175
)
25,586

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

(35,513
)
Adjustment on adoption of IFRS 9
 
—

—

(11
)
(11
)
—

—

—

—

Exchange adjustments
 
259

—

(330
)
(71
)
(1,324
)
—

544

(780
)
Net financing cash flow
 
(3,505
)
360

(2,777
)
(5,922
)
(2,236
)
(284
)
1,558

(962
)
Fair value gains (losses)
 
856

(998
)
—

(142
)
(1,314
)
1,282

—

(32
)
Other movements
 
(179
)
—

—

(179
)
(56
)
(476
)
—

(532
)
At 31 December
 
(65,799
)
(813
)
22,468

(44,144
)
(63,230
)
(175
)
25,586

(37,819
)