Pension and similar obligations (Tables)

12 Months Ended

Dec. 31, 2023

The company’s net liability for post-employment and long-term employee benefit plans comprises the following as at 31 December 2023 and 2022:



Million US dollar	2023		2022
Present value of funded obligations		(4 784)		(4 604)
Fair value of plan assets		3 882		3 807
Present value of net obligations for funded plans		(902)		(797)
Present value of unfunded obligations		(619)		(587)
Present value of net obligations		(1 521)		(1 384)

Unrecognized asset		(38)		(43)
Net liability		(1 559)		(1 427)

Other long term employee benefits		(102)		(96)
Total employee benefits		(1 661)		(1 523)

Employee benefits amounts in the statement of financial position:
Liabilities		(1 673)		(1 534)
Assets		12		11
Net liability		(1 661)		(1 523)

The changes in the present value of the defined benefit obligations are as follows:



Million US dollar	2023		2022		2021
Defined benefit obligation at 1 January		(5 191)		(7 478)		(8 496)
Current service costs		(50)		(69)		(80)
Interest cost		(302)		(229)		(212)
Past service gain/(cost)		4		-		(5)
Settlements		99		114		176
Benefits paid		469		549		553
Contribution by plan participants		(2)		(2)		(3)
Actuarial gains/(losses) – demographic assumptions		17		(2)		(41)
Actuarial gains/(losses) – financial assumptions		(220)		1 854		460
Experience adjustments		(44)		(116)		16
Exchange differences		(182)		243		154
Transfers and other movements		-		(55)		-
Defined benefit obligation at 31 December		(5 403)		(5 191)		(7 478)

The changes in the fair value of plan assets are as follows:



Million US dollar	2023		2022		2021
Fair value of plan assets at 1 January		3 807		5 381		5 649
Interest income		217		157		137
Administration costs		(17)		(17)		(19)
Return on plan assets exceeding interest income		94		(1 084)		197
Contributions by AB InBev		218		220		241
Contributions by plan participants		2		2		3
Benefits paid net of administration costs		(469)		(551)		(553)
Assets distributed on settlements		(97)		(112)		(172)
Exchange differences		127		(188)		(102)
Transfers and other movements		-		(2)		-
Fair value of plan assets at 31 December		3 882		3 807		5 381

The changes in the unrecognized asset are as follows:



Million US dollar	2023		2022		2021
Irrecoverable surplus impact at 1 January		(43)		(32)		(31)
Interest expense		(4)		(3)		(2)
Changes excluding amounts included in interest expense		9		(8)		1
Irrecoverable surplus impact at 31 December		(38)		(43)		(32)

The expense recognized in the income statement with regards to defined benefit plans can be detailed as follows:



Million US dollar	2023		2022		2021
Current service costs		(50)		(66)		(80)
Administration costs		(17)		(17)		(19)
Past service cost due to plan amendments, curtailments or settlements		6		2		(2)
(Losses)/gains due to experience and demographic assumption changes		(1)		-		1
Profit from operations		(61)		(81)		(100)
Net finance cost		(88)		(73)		(76)
Total employee benefit expense		(150)		(154)		(176)

The employee benefit expense is included in the following line items of the income statement:



Million US dollar	2023		2022		2021
Cost of sales		(18)		(25)		(30)
Distribution expenses		(9)		(11)		(11)
Sales and marketing expenses		(14)		(17)		(24)
Administrative expenses		(21)		(28)		(34)
Other operating (expense)/income		-		-		(1)
Net finance cost		(88)		(73)		(76)
Total employee benefit expense		(150)		(154)		(176)

Weighted average assumptions used in computing the benefit obligations of the company’s significant plans at the reporting date are as follows:



	2023

	United States		Canada		Mexico		Brazil		United Kingdom		AB InBev

Discount rate		5.3%		4.6%		9.3%		9.2%		4.7%		5.6%
Price inflation		2.0%		2.0%		3.5%		3.5%		3.2%		2.6%
Future salary increases		-		1.0%		4.3%		6.7%-3.9%		-		3.7%
Future pension increases		-		2.0%		3.5%		3.5%		3.1%		2.8%
Medical cost trend rate		6.8%-4.5%		4.5%		-		7.1%		-		6.7%-6.2%
Life expectation for a 65-year old male		86		87		85		85		87		85
Life expectation for a 65-year old female		88		90		88		87		89		88



	2022

	United States		Canada		Mexico		Brazil		United Kingdom		AB InBev

Discount rate		5.5%		5.1%		9.5%		10.0%		4.9%		5.9%
Price inflation		2.5%		2.0%		3.5%		3.5%		3.2%		2.7%
Future salary increases		-		1.0%		4.5%-4.0%		7.1%-5.3%		-		4.0%
Future pension increases		-		2.0%		3.5%		3.5%		3.0%		2.7%
Medical cost trend rate		7.0%-4.5%		4.5%		-		7.1%		-		6.8%-6.1%
Life expectation for a 65-year old male		86		87		85		85		87		85
Life expectation for a 65-year old female		88		90		88		87		89		88

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

The fair value of plan assets at 31 December consists of the following:



	2023						2022

Million US dollar	Quoted		Unquoted		Total		Quoted		Unquoted		Total

Government bonds		38%		-		38%		34%		-		34%
Corporate bonds		27%		1%		28%		30%		-		30%
Equity instruments		22%		-		22%		24%		-		24%
Property		-		6%		6%		-		7%		7%
Insurance contracts and others		3%		3%		6%		4%		1%		5%
		90%		10%		100%		91%		8%		100%