Fair value measurement (Tables)

12 Months Ended

Dec. 31, 2018

The following table compares carrying amounts and fair values of the Group’s financial assets and liabilities:


			2018						2017
	Note		Carrying value $m			Fair value $m			Carrying value $m			Fair value $m
Financial assets
Financial assets measured at fair value:
Equity securities		15		116			116			127			127
Derivatives		22		8			8			—			—

				124			124			127			127
Financial assets measured at amortised cost:
Cash and cash equivalents		17		704			704			168			168
Loans and other receivables:
Other financial assets		15		145			145			117			117
Trade and other receivables, excluding prepayments		16		502			502			477			477
				1,351			1,351			762			762

				1,475			1,475			889			889

Financial liabilities
Financial liabilities measured at fair value:
Deferred and contingent purchase consideration		18		(131	)		(131	)		—			—

Financial liabilities measured at amortised cost:
£400m 3.875% bonds 2022		20		(509	)		(543	)		(538	)		(593	)
£300m 3.75% bonds 2025		20		(385	)		(399	)		(406	)		(441	)
£350m 2.125% bonds 2026		20		(447	)		(417	)		(472	)		(454	)
€500m 2.125% bonds 2027		20		(569	)		(566	)		—			—
Finance lease obligations		20		(235	)		(313	)		(231	)		(318	)
Unsecured bank loans		20		0			0			(262	)		(262	)
Bank overdrafts		20		(104	)		(104	)		(110	)		(110	)
Trade and other payables		18		(645	)		(645	)		(633	)		(633	)
Provisions		19		(27	)		(27	)		(8	)		(8	)

				(2,921	)		(3,014	)		(2,660	)		(2,819	)

				(3,052	)		(3,145	)		(2,660	)		(2,819	)


	2018												2017
	Level 1 $m			Level 2 $m			Level 3 $m			Total $m			Level 1 $m			Level 2 $m			Level 3 $m		Total $m
Assets
Equity securities measured at fair value:
Quoted equity shares		8			0			0			8			10			—			—		10
Unquoted equity shares		0			0			108			108			—			—			117		117
Derivatives		0			8			0			8			—			—			—		—

Liabilities
Deferred and contingent purchase consideration		0			0			(131	)		(131	)		—			—			—		—
£400m 3.875% bonds 2022		(543	)		0			0			(543	)		(593	)		—			—		(593	)
£300m 3.75% bonds 2025		(399	)		0			0			(399	)		(441	)		—			—		(441	)
£350m 2.125% bonds 2026		(417	)		0			0			(417	)		(454	)		—			—		(454	)
€500m 2.125% bonds 2027		(566	)		0			0			(566	)		—			—			—		—
Finance lease obligations		0			(313	)		0			(313	)		—			(318	)		—		(318	)

The following table reconciles the movements in the fair values of financial instruments classified as Level 3 during the year:


	Equity securities $m			Deferred and contingent purchase consideration $m
At 1 January 2017		142			—
Additions		2			—
Disposals		(3	)		—
Valuation gains recognised in other comprehensive income		48			—
Valuation gains reclassified to the income statement on disposal		(73	)		—
Exchange and other adjustments		1			—

At 1 January 2018		117			0
Additions		4			0
Acquisition of businesses (note 11)		0			131
Disposals		(1	)		0
Valuation losses recognised in other comprehensive income		(10	)		0
Contingent consideration paid		0			(4	)
Change in fair value recorded in finance costs		0			5
Exchange and other adjustments		(2	)		(1	)

At 31 December 2018		108			131