XML 574 R94.htm IDEA: XBRL DOCUMENT v3.20.4
Post-retirement benefits (Tables)
 12 Months Ended
Dec. 31, 2020
Disclosure of information about defined benefit plans [abstract]  
Summary of fair value of plan assets
The proportions of the total fair value of assets in the pension plans for each asset class at the balance sheet date were:

20202019
Equities
21.1 %20.4 %
– Quoted
17.9 %17.0 %
– Private
3.2 %3.4 %
Bonds
55.8 %63.4 %
– Government fixed income
17.7 %18.4 %
– Government inflation-linked
9.6 %16.2 %
– Corporate and other publicly quoted
22.6 %24.1 %
– Private
5.9 %4.7 %
Property
7.5 %8.8 %
– Quoted property funds
3.1 %3.4 %
– Unquoted property funds
4.4 %5.4 %
Qualifying insurance policies
11.3 %3.1 %
Cash & other
4.3 %4.3 %
Total
100.0 %100.0 %
Summary of maturity of defined benefit obligations
An approximate analysis of the maturity of the obligations is given in the table below:

Pension
benefits		Other
benefits
2020
Total
2019
Total
2018
Total
Proportion relating to current employees
21 %19 %21 %20 %19 %
Proportion relating to former employees not yet retired
12 %0 %11 %12 %11 %
Proportion relating to retirees
67 %81 %68 %68 %70 %
Total
100 %100 %100 %100 %100 %
Average duration of obligations (years)
14.413.514.314.413.4
Summary of geographical distribution of defined benefit obligations
An approximate analysis of the geographic distribution of the obligations is given in the table below:
Pension
benefits		Other
benefits
2020
Total
2019
Total
2018
Total
Canada
54 %46 %53 %53 %48 %
UK
30 %2 %28 %28 %28 %
US
7 %50 %10 %10 %14 %
Switzerland
5 %0 %5 %5 %5 %
Other
4 %2 %4 %4 %5 %
Total
100 %100 %100 %100 %100 %
Summary of total expense recognised in the income statement
Total expense recognised in the income statement

Pension
benefits
US$m		Other
benefits
US$m
2020
Total
US$m
2019
Total
US$m
2018
Total
US$m
Current employer service cost for defined benefit plans
(131)(6)(137)(125)(165)
Past service cost(2)— (2)— (36)
Curtailment gains
— — — — 2 
Settlement (losses)/gains(1)— (1)51 5 
Net interest on net defined benefit liability
(22)(27)(49)(58)(79)
Non-investment expenses paid from the plans
(16)— (16)(14)(15)
Total defined benefit expense
(172)(33)(205)(146)(288)
Current employer service cost for defined contribution and industry-wide plans
(262)(2)(264)(238)(244)
Total expense recognised in the income statement
(434)(35)(469)(384)(532)
Summary of total amount recognised in other comprehensive income before tax
Total amount recognised in other comprehensive income before tax

2020
US$m
2019
US$m
2018
US$m
Actuarial (losses)/gains
(1,242)(1,295)1,382 
Return on assets, net of interest on assets
768 1,033 (527)
Gain on application of asset ceiling
— — 52 
Total (loss)/gain recognised in other comprehensive income
(474)(262)907 
Summary of amount recognised in balance sheet
The following amounts were measured in accordance with IAS 19 at 31 December:

Pension
benefits
US$m		Other
benefits
US$m
2020
Total
US$m
2019
Total
US$m
Total fair value of plan assets
14,905 — 14,905 13,923 
Present value of obligations – funded
(15,731)— (15,731)(14,311)
Present value of obligations – unfunded
(479)(968)(1,447)(1,342)
Present value of obligations – total
(16,210)(968)(17,178)(15,653)
Net deficit to be shown in the balance sheet
(1,305)(968)(2,273)(1,730)
Comprising:
– Deficits
(2,087)(968)(3,055)(2,714)
– Surpluses
782 — 782 984 
Net deficits on pension plans
(1,305)— (1,305)(831)
Unfunded post-retirement healthcare obligation
— (968)(968)(899)
Summary of funding policy and contributions to plans

Pension
benefits
US$m		Other
benefits
US$m
2020
Total
US$m
2019
Total
US$m
2018
Total
US$m
Contributions to defined benefit plans
169 32 201 257 248 
Contributions to defined contribution plans259 2 261 235 244 
Total428 34 462 492 492 
Summary of movement in net defined benefit liability
A summary of the movement in the net defined benefit liability is shown in the first table below. The subsequent tables provide a more detailed analysis of the movements in the present value of the obligations and the fair value of assets.

Pension
benefits
US$m		Other
benefits
US$m
2020
Total
US$m
2019
Total
US$m
Change in the net defined benefit liability
Net defined benefit liability at the start of the year
(831)(899)(1,730)(1,551)
Amounts recognised in income statement(172)(33)(205)(146)
Amounts recognised in other comprehensive income(416)(58)(474)(262)
Employer contributions
169 32 201 257 
Arrangements added/divested
— — — (5)
Assets transferred to defined contribution section
(3)— (3)(3)
Currency exchange rate (loss)(52)(10)(62)(20)
Net defined benefit liability at the end of the year
(1,305)(968)(2,273)(1,730)


Pension
benefits
US$m		Other
benefits
US$m
2020
Total
US$m
2019
Total
US$m
Change in present value of obligation
Present value of obligation at the start of the year
(14,754)(899)(15,653)(14,754)
Current employer service costs
(131)(6)(137)(125)
Past service cost
(2)— (2)— 
Settlements
6 — 6 638 
Interest on obligation
(357)(27)(384)(476)
Contributions by plan participants
(22)— (22)(23)
Benefits paid
746 32 778 862 
Experience gains
46 15 61 111 
Changes in financial assumptions (loss)(1,357)(85)(1,442)(1,447)
Changes in demographic assumptions gain
127 12 139 41 
Arrangements (added)— — — (5)
Currency exchange rate (loss)(512)(10)(522)(475)
Present value of obligation at the end of the year
(16,210)(968)(17,178)(15,653)
42 Post-retirement benefits continued

Pension
benefits
US$m		Other
benefits
US$m
2020
Total
US$m
2019
Total
US$m
Change in plan assets
Fair value of plan assets at the start of the year
13,923 — 13,923 13,203 
Settlements
(7)— (7)(587)
Interest on assets
335 — 335 418 
Contributions by plan participants
22 — 22 23 
Contributions by employer
169 32 201 257 
Benefits paid
(746)(32)(778)(862)
Non-investment expenses
(16)— (16)(14)
Return on plan assets, net of interest on assets768 — 768 1,033 
Assets transferred to defined contribution section
(3)— (3)(3)
Currency exchange rate gain460 — 460 455 
Fair value of plan assets at the end of the year
14,905 — 14,905 13,923 
Summary of main assumptions rate for valuations of plans and sensitivity analysis
The main assumptions for the valuations of the plans under IAS 19 are set out below. Where there are multiple plans in a country the rates below are weighted-average figures.
CanadaUKUSSwitzerland
At 31 December 2020
Discount rate
2.5 %1.2 %2.2 %0.1 %
Inflation(a)
1.6 %2.9 %2.1 %0.9 %
Rate of increase in pensions
0.1 %2.5 %— %0.5 %
Rate of increase in salaries
2.8 %3.6 %3.6 %1.9 %
At 31 December 2019
Discount rate
3.1 %2.0 %3.1 %0.2 %
Inflation(a)
1.6 %2.9 %2.0 %1.1 %
Rate of increase in pensions
0.1 %2.5 %— %0.2 %
Rate of increase in salaries
2.8 %3.5 %3.5 %2.1 %
(a)The inflation assumption shown for the UK is for the Retail Price Index. The assumption for the Consumer Price Index at 31 December 2020 was 2.1% (2019: 2.0%).
20202019
Approximate
(increase)/decrease in obligations		Approximate
(increase)/decrease in obligations
AssumptionChange in assumptionPensions
US$m		Other
US$m		Pensions
US$m		Other
US$m
Discount rateIncrease of 0.5 percentage points988 62 894 56 
Decrease of 0.5 percentage points(1,186)(66)(1,057)(60)
InflationIncrease of 0.5 percentage points(484)(19)(447)(17)
Decrease of 0.5 percentage points450 17 422 15 
Salary increasesIncrease of 0.5 percentage points(81)(1)(55)(1)
Decrease of 0.5 percentage points72 1 54 1 
Demographic – allowance for future improvements in longevityParticipants assumed to have the mortality rates of individuals who are one year older520 19 443 18 
Participants assumed to have the mortality rates of individuals who are one year younger(562)(19)(465)(18)