Retirement benefits (Tables)

12 Months Ended

Dec. 31, 2017

The movement in the pension liabilities is shown below:



	2017		2016
	$M		$M
Balance at January 1	66.5		58.9
(Credited) / charged to the consolidated income statement:
Past service credit	—		—
Curtailment credit	—		(0.6	)
Current service cost	0.1		0.4
Net interest on net liability	1.8		2.0
Administrative costs	0.7		0.9
Total charge for defined contribution plans	4.0		3.7
Cash contributions	(12.9	)	(10.9	)
(Credited) / charged to the consolidated statement of comprehensive income	(9.5	)	21.7
Exchange difference	4.6		(9.6	)
Balance at December 31	55.3		66.5

Analysis of movement in the present value of the fair value of plan assets:



	2017		2017		2017		2016		2016		2016
	U.K.		Non-U.K.		Total		U.K.		Non-U.K.		Total
	$M		$M		$M		$M		$M		$M
At January 1	280.3		36.6		316.9		287.1		49.4		336.5
Interest on plan assets	7.5		1.5		9.0		9.4		2.1		11.5
Actuarial gains	20.4		3.8		24.2		43.7		1.2		44.9
Exchange difference	27.4		—		27.4		(49.8	)	—		(49.8	)
Contributions from employer	7.0		1.9		8.9		6.0		1.2		7.2
Contributions from plan members	—		—		—		0.1		—		0.1
Administrative expenses	(0.2	)	(0.5	)	(0.7	)	(0.4	)	(0.5	)	(0.9	)
Benefits paid	(16.1	)	(2.1	)	(18.2	)	(15.8	)	(2.6	)	(18.4	)
Settlement credit	—		—		—		—		(14.2	)	(14.2	)
At December 31	326.3		41.2		367.5		280.3		36.6		316.9

Analysis of movement in the present value of the defined benefit obligations:



	2017		2017		2017		2016		2016		2016
	U.K.		Non-U.K.		Total		U.K.		Non-U.K.		Total
	$M		$M		$M		$M		$M		$M
At January 1	334.8		48.6		383.4		334.4		61.0		395.4
Service cost	—		0.1		0.1		0.3		0.1		0.4
Interest on obligation	8.9		1.9		10.8		10.9		2.6		13.5
Contributions from plan members	—		—		—		0.1		—		0.1
Actuarial gains on financial assumptions	6.9		3.8		10.7		67.5		2.6		70.1
Actuarial gains on plan experience	3.5		0.5		4.0		(3.3	)	(0.2	)	(3.5	)
Exchange difference	31.7		0.3		32.0		(59.3	)	(0.1	)	(59.4	)
Benefits paid	(16.1	)	(2.1	)	(18.2	)	(15.8	)	(2.6	)	(18.4	)
Curtailment credit	—		—		—		—		(14.8	)	(14.8	)
At December 31	369.7		53.1		422.8		334.8		48.6		383.4

The financial assumptions used in the calculations were:



	Projected Unit Credit Valuation
	U.K.			Non-U.K.
	2017	2016	2015	2017	2016	2015
	%	%	%	%	%	%
Discount rate	2.40	2.60	3.70	3.60	4.20	4.50
Retail Price Inflation	3.10	3.20	3.00	—	—	—
Inflation related assumptions:
Salary inflation	n/a	n/a	4.00	—	—	—
Consumer Price Inflation	2.10	2.20	2.00	—	—	—
Pension increases—pre 6 April 1997	1.90	2.00	1.80	—	—	—
—1997 - 2005	2.10	2.20	2.10	—	—	—
—post 5 April 2005	1.70	1.80	1.70	—	—	—



	2017	2016
Other principal actuarial assumptions:	Years	Years
Life expectancy of male / female in the U.K. aged 65 at accounting date	21.6 / 24.6	21.5 / 24.5
Life expectancy of male / female in the U.K. aged 65 at 20 years after accounting date	23.3 / 26.5	23.2 / 26.4

The amounts recognized in the consolidated income statement in respect of the pension plans were as follows:



	2017	2017	2017	2016	2016		2016		2015		2015	2015
	U.K.	Non-U.K.	Total	U.K.	Non-U.K.		Total		U.K.		Non-U.K.	Total
	$M	$M	$M	$M	$M		$M		$M		$M	$M
In respect of defined benefit plans:
Current service cost	—	0.1	0.1	0.3	0.1		0.4		1.4		0.1	1.5
Net interest on net liability	1.4	0.4	1.8	1.5	0.5		2.0		2.5		0.5	3.0
Administrative expenses	0.2	0.5	0.7	0.4	0.5		0.9		1.0		0.3	1.3
Past service credit	—	—	—	—	—		—		(14.9	)	—	(14.9	)
Curtailment credit	—	—	—	—	(0.6	)	(0.6	)	(3.3	)	—	(3.3	)
Total charge / (credit) for defined benefit plans	1.6	1.0	2.6	2.2	0.5		2.7		(13.3	)	0.9	(12.4	)
In respect of defined contribution plans:
Total charge for defined contribution plans	1.9	2.1	4.0	1.6	2.1		3.7		1.3		1.8	3.1
Total charge / (credit) for pension plans	3.5	3.1	6.6	3.8	2.6		6.4		(12.0	)	2.7	(9.3	)

The value of the plans assets were:



	2017		2017		2017		2016		2016		2016
	U.K.		Non-U.K.		Total		U.K.		Non-U.K.		Total
	$M		$M		$M		$M		$M		$M
Assets in active markets:
Equities and growth funds	203.4		22.9		226.3		171.6		20.6		192.2
Government bonds	49.9		—		49.9		44.3		—		44.3
Corporate bonds	72.7		18.3		91.0		64.5		16.0		80.5
Cash	0.3		—		0.3		(0.1	)	—		(0.1	)
Total market value of assets	326.3		41.2		367.5		280.3		36.6		316.9
Present value of plan liabilities	(369.7	)	(53.1	)	(422.8	)	(334.8	)	(48.6	)	(383.4	)
Deficit in the plans	(43.4	)	(11.9	)	(55.3	)	(54.5	)	(12.0	)	(66.5	)
Related deferred income tax assets	7.8		3.1		10.9		10.2		4.4		14.6
Net pension liabilities	(35.6	)	(8.8	)	(44.4	)	(44.3	)	(7.6	)	(51.9	)

The sensitivities regarding the principal assumptions used to measure the present value of the defined benefit obligations are set out below:

Assumption

Change in assumption

Impact on total defined
benefit obligations

Discount rate

Increase/decrease by 1.0%

Decrease/increase by 18%

CPI inflation (and related increases)

Increase/decrease by 1.0%

Increase/decrease by 10%

Post retirement mortality

Increase by 1 year

Increase by 4%