XML 233 R71.htm IDEA: XBRL DOCUMENT v3.22.0.1
Retirement Benefit Obligations (Tables)
 12 Months Ended
Dec. 31, 2021
Text block [abstract]  
Summary of Major Long-Term Assumptions Used By Actuaries in the Computation of Scheme Liabilities and Post-Retirement Obligations
The major long-term assumptions used by the Group’s actuaries in the computation of scheme liabilities and post-retirement healthcare obligations are as follows:
 
    
Eurozone
            
United States
and Canada
            
Switzerland
  
    
2021
%
      2020
%		      2019
%		            
2021
%
      2020
%		      2019
%		            
2021
%
      2020
%		      2019
%		  
Rate of increase in:
                                                                                                   
                       
- salaries
   
 
2.92
 
      2.52        3.37              
 
3.03
 
      3.37        3.37              
 
1.25
 
      1.00        1.50  
                       
- pensions in payment
   
 
1.90
 
      1.45        1.46              
 
-
 
      -        -              
 
-
 
      -        -  
                       
Inflation
   
 
1.90
 
      1.50        1.50              
 
2.00
 
      2.00        2.00              
 
0.75
 
      0.50        1.00  
                       
Discount rate
   
 
1.43
 
      1.14        1.43              
 
2.82
 
      2.34        3.14              
 
0.30
 
      0.20        0.30  
                       
Medical cost trend rate
   
 
n/a
 
      n/a        n/a              
 
5.91
 
      5.97        5.18              
 
n/a
 
      n/a        n/a  
Summary of Future Life Expectations Based on Retirement at 65 years of Age for Current and Future Retirees For the Group’s most material schemes, the future life expectations factored into the relevant valuations, based on retirement at 65 years of age for current and future retirees, are as follows:
 
    
Republic of Ireland
            
United States
and Canada
            
Switzerland
  
    
2021
      2020      2019            
2021
      2020      2019            
2021
      2020      2019  
Current retirees
                                                                                                   
                       
- male
   
 
22.6
 
      22.5        23.0              
 
20.5
 
      20.1        20.2              
 
22.6
 
      22.6        22.6  
                       
- female
   
 
24.5
 
      24.4        24.5              
 
22.4
 
      22.2        22.3              
 
24.4
 
      24.7        24.7  
                       
Future retirees
                                                                                                   
                       
- male
   
 
24.9
 
      24.8        25.4              
 
22.2
 
      22.0        22.1              
 
25.4
 
      24.8        24.8  
                       
- female
   
 
26.8
 
      26.7        26.8              
 
24.1
 
      23.9        24.2              
 
26.9
 
      26.8        26.8  
Summary of Retirement Benefit Expense in Consolidated Income Statement
The total retirement benefit expense from continuing operations in the Consolidated Income Statement is as follows:
 
    
2021
$m
      2020
$m		      2019
$m		  
       
Total defined contribution expense (i)
   
 
309
 
      289        290  
       
Total defined benefit expense (i)
   
 
72
 
      70        51  
Total expense in Consolidated Income Statement
   
 
381
 
      359        341  
Analysis of Defined Benefit Expense/(Credit)
Analysis of defined benefit expense
Charged in arriving at Group profit before finance costs:
Current service cost
   
 
55
 
      53        48  
Administration expenses
   
 
4
 
      5        8  
Past service (credit)/cost net
   
 
(3)
 
      1        (20)  
Loss on settlements
   
 
6
 
      -        -  
Subtotal
   
 
62
 
      59        36  
Included in finance income and finance costs respectively:
Interest income on scheme assets
   
 
(46)
 
      (56)        (72)  
Interest cost on scheme liabilities
   
 
56
 
      67        87  
Net interest expense
   
 
10
 
      11        15  
                            
Net expense to Consolidated Income Statement
   
 
72
 
      70        51  
Summary of Net Charge to Consolidated Income Statement
The composition of the net expense to the Consolidated Income Statement is as follows:
 
Eurozone
   
 
29
 
      30        28  
United States and Canada
   
 
21
 
      16        6  
Switzerland
   
 
10
 
      12        8  
Other
   
 
12
 
      12        9  
Total
   
 
72
 
      70        51  
Summary of Reconciliation of Assets and Liabilities
Reconciliation of scheme assets (bid value)
   
2021
$m
      2020
$m		  
At 1 January
   
 
3,321
 
      3,013  
Movement in year
                  
Interest income on scheme assets
   
 
46
 
      56  
Remeasurement adjustments
                  
- return on scheme assets excluding interest income
   
 
165
 
      174  
Employer contributions paid
   
 
43
 
      46  
Contributions paid by plan participants
   
 
7
 
      7  
Benefit and settlement payments
   
 
(258)
 
      (158)  
Administration expenses
   
 
(4)
 
      (5)  
Translation adjustment
   
 
(146)
 
      188  
At 31 December
   
 
3,174
 
      3,321  
Reconciliation of actuarial value of liabilities
              
At 1 January
   
 
(3,877)
 
      (3,493)  
Movement in year
                  
Current service cost
   
 
(55)
 
      (53)  
Past service credit/(cost) net
   
 
3
 
      (1)  
Loss on settlements
   
 
(6)
 
      -  
Interest cost on scheme liabilities
   
 
(56)
 
      (67)  
Disposals
   
 
1
 
      1  
Remeasurement adjustments
                  
- experience variations
   
 
(7)
 
      32  
- actuarial gain/(loss) from changes in financial assumptions
   
 
70
 
      (251)  
- actuarial gain from changes in demographic assumptions
   
 
36
 
      12  
Contributions paid by plan participants
   
 
(7)
 
      (7)  
Benefit and settlement payments
   
 
258
 
      158  
Translation adjustment
   
 
157
 
      (208)  
At 31 December
   
 
(3,483)
 
      (3,877)  
Summary of Scheme Assets
The composition of scheme assets is as follows:
 
Eurozone
   
 
1,563
 
      1,603  
United States and Canada
   
 
873
 
      1,018  
Switzerland
   
 
460
 
      444  
Other
   
 
278
 
      256  
Total
   
 
3,174
 
      3,321  
Summary of Actuarial Value of Liabilities
The composition of the actuarial value of liabilities is as follows:
 
Eurozone
   
 
(1,671)
 
      (1,769)  
United States and Canada
   
 
(1,093)
 
      (1,293)  
Switzerland
   
 
(394)
 
      (425)  
Other
   
 
(325)
 
      (390)  
Total
   
 
(3,483)
 
      (3,877)  
     
Net pension deficit (i)
   
 
(309)
 
      (556)  
Related deferred income tax asset
   
 
89
 
      128  
Net pension liability
   
 
(220)
 
      (428)  
Summary of Composition of Net Pension Liabilities
The composition of the net pension liability is as follows:
 
Eurozone
   
 
(87)
 
      (138)  
United States and Canada
   
 
(164)
 
      (206)  
Switzerland
   
 
66
 
      22  
Other
   
 
(35)
 
      (106)  
Total
   
 
(220)
 
      (428)  
 
(i)   Reconciliation to
Consolidated
Balance Sheet

                  
Retirement benefit assets
   
 
166
 
      -  
Retirement benefit obligations
   
 
(475)
 
      (556)  
Net pension deficit
   
 
(309)
 
      (556)  
Summary of Impact of Movement in Principal Actuarial Assumptions
The revised liabilities due to the impact of a reasonably possible change (as indicated below) in the principal actuarial assumptions would be as follows:
 
        
Eurozone
2021
$m
    
United States
and Canada
2021
$m
    
Switzerland
2021
$m
    
Other
2021
$m
    
Total Group
2021
$m
  
Scheme liabilities at 31 December
       
 
(1,671
) 
  
 
(1,093
) 
  
 
(394
) 
  
 
(325
) 
  
 
(3,483
) 
             
Revised liabilities
                                             
             
Discount rate
  
Increase by 0.25%
   
 
(1,597
) 
  
 
(1,060
) 
  
 
(378
) 
  
 
(310
) 
  
 
(3,345
) 
             
   
Decrease by 0.25%
   
 
(1,750
) 
  
 
(1,127
) 
  
 
(411
) 
  
 
(341
) 
  
 
(3,629
) 
             
Inflation rate
  
Increase by 0.25%
   
 
(1,745
) 
  
 
(1,096
) 
  
 
(395
) 
  
 
(334
) 
  
 
(3,570
) 
             
   
Decrease by 0.25%
   
 
(1,602
) 
  
 
(1,090
) 
  
 
(393
) 
  
 
(319
) 
  
 
(3,404
) 
             
Mortality assumption
  
Increase by 1 year
   
 
(1,607
) 
  
 
(1,059
) 
  
 
(380
) 
  
 
(314
) 
  
 
(3,360
) 
             
   
Decrease by 1 year
   
 
(1,736
) 
  
 
(1,127
) 
  
 
(408
) 
  
 
(335
) 
  
 
(3,606
) 
Summary of Split of Scheme Assets by Asset Type
The above sensitivity analysis are derived through changing the individual assumption while holding all other assumptions constant.
 
Split of scheme assets
       
2021
$m
      2020
$m		  
Investments quoted in active markets
                      
Equity instruments (i)
       
 
752
 
      862  
Debt instruments (ii)
       
 
1,874
 
      2,025  
Property
       
 
128
 
      106  
Cash and cash equivalents
       
 
40
 
      56  
Investment funds
       
 
129
 
      166  
       
Unquoted investments
                      
Equity instruments
       
 
2
 
      2  
Debt instruments (iii)
       
 
14
 
      12  
Property
       
 
71
 
      69  
Cash and cash equivalents
       
 
9
 
      6  
Assets held by insurance company
       
 
155
 
      17  
Total assets
       
 
3,174
 
      3,321  
 
(i)
Equity instruments primarily relate to developed markets.
 
 
(ii)
Quoted debt instruments are made up of $1,317 million (2020: $1,288 million) and $557 million (2020: $737 million) of government and
non-government
instruments respectively.
 
 
(iii)
Unquoted debt instruments primarily relate to government debt instruments.
 
Summary of Maturity Profile of the Group's Contracted Payments (On a Discounted Basis)
The maturity profile of the Group’s contracted payments (on a discounted basis) is as follows:
 
   
2021
$m
      2020
$m		      2019
$m		  
Within one year
  
 
2
 
      2        2  
Between one and two years
  
 
2
 
      2        2  
Between two and three years
  
 
2
 
      2        2  
Between three and four years
  
 
2
 
      2        2  
Between four and five years
  
 
2
 
      2        2  
       
After five years
  
 
7
 
      10        11  
Total
  
 
17
 
      20        21  
Summary of Average Duration and Scheme Composition
Average duration and scheme composition
 
   
Eurozone
    
United States and Canada
          
Switzerland
  
   
2021
     2020     2019          
2021
     2020     2019          
2021
     2020     2019  
Average duration of defined benefit obligation (years)
  
 
18.3
 
     18.3       18.1            
 
12.3
 
     12.9       12.5            
 
17.0
 
     17.6       17.8  
                       
Allocation of defined benefit obligation by participant:
                                                                                        
                       
Active plan participants
  
 
69%
 
     70%       74%            
 
49%
 
     43%       44%            
 
74%
 
     74%       74%  
                       
Deferred plan participants
  
 
10%
 
     10%       8%            
 
15%
 
     12%       12%            
 
-
 
     -       -  
                       
Retirees
  
 
21%
 
     20%       18%            
 
36%
 
     45%       44%            
 
26%
 
     26%       26%