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v3.19.3.a.u2

Post-employment benefits for associates (Tables) | 12 Months Ended
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Dec. 31, 2019
Employee Benefits [Abstract] |
Summary of funded and unfunded Defined Benefit Obligations and Reconciliation of net liability | The reconciliation of the net liability from January 1 to December 31 is as follows:
| Pension plans |  | Other post-employment benefit plans
($ millions) | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Net liability at January 1 | (242 | ) |  | (232 | ) |  | (345 | ) |  | (317 | )
Current service cost | (22 | ) |  | (28 | ) |  | (8 | ) |  | (11 | )
Net interest expense | (5 | ) |  | (6 | ) |  | (14 | ) |  | (11 | )
Administrative expenses | (1 | ) |  | (1 | ) |  | — |  |  | — |
Past service costs and settlements | (2 | ) |  | (1 | ) |  | — |  |  | — |
Remeasurements | (36 | ) |  | 1 |  |  | (28 | ) |  | 5 |
Currency translation effects | 6 |  |  | 6 |  |  | — |  |  | — |
Employer contributions | 21 |  |  | 19 |  |  | (28 | ) |  | (11 | )
Effect of acquisitions, divestments or transfers | 5 |  |  | (2 | ) |  | — |  |  | — |
Change in limitation on recognition of fund surplus | (2 | ) |  | 2 |  |  | — |  |  | — |
Net liability at December 31 | (278 | ) |  | (242 | ) |  | (423 | ) |  | (345 | )
Amounts recognized in the balance sheet |  |  |  |  |  |  |
Prepaid benefit cost | 13 |  |  | 12 |  |  | — |  |  | — |
Accrued benefit liability | (291 | ) |  | (254 | ) |  | (423 | ) |  | (345 | )
The following tables summarize the funded and unfunded DBO for pension and other post-employment benefit plans of Alcon associates at December 31, 2019 and 2018:
| Pension plans |  | Other post-employment benefit plans
($ millions) | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Benefit obligation at January 1 | 662 |  |  | 671 |  |  | 385 |  |  | 382 |
Current service cost | 22 |  |  | 28 |  |  | 8 |  |  | 11 |
Interest cost | 13 |  |  | 15 |  |  | 15 |  |  | 13 |
Past service costs and settlements | 2 |  |  | — |  |  | — |  |  | — |
Administrative expenses | 1 |  |  | 1 |  |  | — |  |  | — |
Remeasurement losses/(gains) arising from changes in financial assumptions | 71 |  |  | (17 | ) |  | 52 |  |  | (3 | )
Remeasurement losses/(gains) arising from changes in demographic assumptions | 6 |  |  | 1 |  |  | (1 | ) |  | 6 |
Experience-related remeasurement (gains)/losses | (5 | ) |  | 2 |  |  | (20 | ) |  | (11 | )
Currency translation effects | 1 |  |  | (15 | ) |  | — |  |  | — |
Benefit payments | (15 | ) |  | (29 | ) |  | (16 | ) |  | (13 | )
Contributions of associates | 5 |  |  | 4 |  |  | — |  |  | — |
Effect of acquisitions, divestments or transfers | (40 | ) |  | 1 |  |  | — |  |  | — |
Benefit obligation at December 31 | 723 |  |  | 662 |  |  | 423 |  |  | 385 |
Fair value of plan assets at January 1 | 424 |  |  | 445 |  |  | 40 |  |  | 65 |
Interest income | 8 |  |  | 9 |  |  | 1 |  |  | 2 |
Return on plan assets excluding interest income | 36 |  |  | (13 | ) |  | 3 |  |  | (3 | )
Currency translation effects | 7 |  |  | (9 | ) |  | — |  |  | — |
Employer contributions | 21 |  |  | 19 |  |  | (28 | ) |  | (11 | )
Contributions of associates | 5 |  |  | 4 |  |  | — |  |  | — |
Settlements | — |  |  | (1 | ) |  | — |  |  | — |
Benefit payments | (15 | ) |  | (29 | ) |  | (16 | ) |  | (13 | )
Effect of acquisitions, divestments or transfers | (35 | ) |  | (1 | ) |  | — |  |  | — |
Fair value of plan assets at December 31 | 451 |  |  | 424 |  |  | — |  |  | 40 |
Funded status | (272 | ) |  | (238 | ) |  | (423 | ) |  | (345 | )
Limitation on recognition of fund surplus at January 1 | (4 | ) |  | (6 | ) |  |  |  |  |  |
Change in limitation on recognition of fund surplus (including exchange rate differences) | (2 | ) |  | 2 |  |  |  |  |  |  |
Limitation on recognition of fund surplus at December 31 | (6 | ) |  | (4 | ) |  |  |  |  |  |
Net liability in the balance sheet at December 31 | (278 | ) |  | (242 | ) |  | (423 | ) |  | (345 | )
Breakdown of DBO for pension plans by geography and type of member | The following tables show a breakdown of the DBO for pension plans by geography and type of member and the breakdown of plan assets into the geographical locations in which they are held:
| 2019
($ millions) | Switzerland |  |  | United States |  |  | Germany |  |  | United Kingdom |  |  | Rest of the world |  |  | Total |
Benefit obligation at December 31 | 244 |  |  | 127 |  |  | 109 |  |  | 98 |  |  | 145 |  |  | 723 |
Thereof: unfunded plans | 47 |  |  | 29 |  |  | — |  |  | — |  |  | 23 |  |  | 99 |
Thereof: unfunded portion of funded plans(1) | 65 |  |  | 18 |  |  | 92 |  |  | — |  |  | 17 |  |  | 192 |
By type of member |  |  |  |  |  |  |  |  |  |  |
Active | 216 |  |  | 40 |  |  | 61 |  |  | — |  |  | 123 |  |  | 440 |
Deferred pensioners | 12 |  |  | 46 |  |  | 27 |  |  | 54 |  |  | 12 |  |  | 151 |
Pensioners | 16 |  |  | 41 |  |  | 21 |  |  | 44 |  |  | 10 |  |  | 132 |
Fair value of plan assets at December 31 | 132 |  |  | 80 |  |  | 17 |  |  | 109 |  |  | 113 |  |  | 451 |
Funded status | (112 | ) |  | (47 | ) |  | (92 | ) |  | 11 |  |  | (32 | ) |  | (272 | )
(1) Excludes $8 million of Prepaid benefit costs and the limitation on recognition of fund surplus.
| 2018
($ millions) | Switzerland |  |  | United States |  |  | Germany |  |  | United Kingdom |  |  | Rest of the world |  |  | Total |
Benefit obligation at December 31 | 201 |  |  | 111 |  |  | 94 |  |  | 86 |  |  | 170 |  |  | 662 |
Thereof: unfunded plans | 49 |  |  | 21 |  |  | — |  |  | — |  |  | 18 |  |  | 88 |
Thereof: unfunded portion of funded plans(1) | 46 |  |  | 23 |  |  | 78 |  |  | — |  |  | 19 |  |  | 166 |
By type of member |  |  |  |  |  |  |  |  |  |  |
Active | 166 |  |  | 36 |  |  | 56 |  |  | — |  |  | 148 |  |  | 406 |
Deferred pensioners | 18 |  |  | 32 |  |  | 22 |  |  | 69 |  |  | 9 |  |  | 150 |
Pensioners | 17 |  |  | 43 |  |  | 16 |  |  | 17 |  |  | 13 |  |  | 106 |
Fair value of plan assets at December 31 | 106 |  |  | 67 |  |  | 16 |  |  | 98 |  |  | 137 |  |  | 424 |
Funded status | (95 | ) |  | (44 | ) |  | (78 | ) |  | 12 |  |  | (33 | ) |  | (238 | )
(1) Excludes $4 million of Prepaid benefit cost and the limitation on recognition of fund surplus.
Defined benefit plans assumptions | The healthcare cost trend rate assumptions used for other post-employment benefits are as follows:
| 2019 |  |  | 2018 |  |  | 2017 |
Healthcare cost trend rate assumed for next year | 6.5 | % |  | 7.0 | % |  | 6.5 | %
Rate to which the cost trend rate is assumed to decline | 4.5 | % |  | 4.5 | % |  | 4.5 | %
Year that the rate reaches the ultimate trend rate | 2028 |  |  | 2028 |  |  | 2025 |
The following table shows the principal weighted average actuarial assumptions used for calculating defined benefit plans and other post-employment benefits of Alcon associates:
| Pension plans |  | Other post-employment benefit plans
| 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Discount rate | 1.7 | % |  | 2.2 | % |  | 3.3 | % |  | 4.3 | %
Expected rate of pension increase | 1.2 | % |  | 1.1 | % |  |  |  |  |  |
Expected rate of salary increase | 3.3 | % |  | 2.8 | % |  |  |  |  |  |
Interest on savings account | 1.0 | % |  | 0.8 | % |  |  |  |  |  |
Current average life expectancy for a 65-year-old male (in years) | 21 |  |  | 21 |  |  | 21 |  |  | 21 |
Current average life expectancy for a 65-year-old female (in years) | 24 |  |  | 23 |  |  | 23 |  |  | 23 |
Disclosure of sensitivity analysis for actuarial assumptions | The following table shows the sensitivity of the defined benefit pension and other post-employment benefit obligations to the principal actuarial assumptions as of December 31, 2019:
($ millions) | Change in 2019 year-end |
25 basis point increase in discount rate | (43 | )
25 basis point decrease in discount rate | 46 |
1 year increase in life expectancy | 32 |
25 basis point increase in rate of pension increase | 15 |
25 basis point decrease in rate of pension increase | (27 | )
25 basis point increase of interest on savings account | 2 |
25 basis point decrease of interest on savings account | (2 | )
25 basis point increase in rate of salary increase | 6 |
25 basis point decrease in rate of salary increase | (6 | )
Fair value of plan assets and asset allocation | The following table shows the weighted average plan asset allocation of funded defined benefit pension plans at December 31, 2019, and 2018:
| Pension plans
(as a percentage) | Long-term target minimum |  | Long-term target maximum |  | 2019 |  | 2018
Equity securities | 15 |  | 40 |  | 32 |  | 28
Debt securities | 20 |  | 60 |  | 42 |  | 43
Real estate | 5 |  | 20 |  | 7 |  | 9
Alternative investments | 0 |  | 20 |  | 15 |  | 17
Cash and other investments | 0 |  | 15 |  | 4 |  | 3
Total |  |  |  |  | 100 |  | 100
Schedule of expected future cash flows for benefit plans | The following table summarizes expected future cash flows for pension and other post-employment benefit plans as of December 31, 2019:
($ millions) | Pension plans |  |  | Other post-employment benefit plans |
Employer contributions |  |  |  |  |
2020 (estimated) | 14 |  |  | — |
Expected future benefit payments |  |  |  |  |
2020 | 41 |  |  | 21 |
2021 | 26 |  |  | 22 |
2022 | 27 |  |  | 24 |
2023 | 27 |  |  | 25 |
2024 | 32 |  |  | 26 |
2025-2029 | 169 |  |  | 133 |

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- Definition The disclosure of an analysis of the present value of a defined benefit obligation that distinguishes the nature, characteristics and risks of the obligation. Such a disclosure could distinguish: (a) between amounts owing to active members, deferred members, and pensioners; (b) between vested benefits and accrued but not vested benefits; and (c) between conditional benefits, amounts attributable to future salary increases and other benefits. [Refer: Defined benefit obligation, at present value] + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Name IAS -Number 19 -IssueDate 2019-01-01 -Paragraph 137 -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=19&code=ifrs-tx-2019-en-r&anchor=para_137&doctype=Standard -URIDate 2019-03-27 + Details
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- Definition The disclosure of defined benefit plans. [Refer: Defined benefit plans [member]] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 19 -IssueDate 2019-01-01 -Paragraph 138 -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=19&code=ifrs-tx-2019-en-r&anchor=para_138&doctype=Standard -URIDate 2019-03-27 + Details
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- Definition The disclosure of the fair value of defined benefit plan assets. [Refer: Plan assets [member]; Defined benefit plans [member]] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 19 -IssueDate 2019-01-01 -Paragraph 142 -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=19&code=ifrs-tx-2019-en-r&anchor=para_142&doctype=Standard -URIDate 2019-03-27 + Details
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- Definition The disclosure of information about the maturity profile of a defined benefit obligation. This will include the weighted average duration of the defined benefit obligation and may include other information about the distribution of the timing of benefit payments, such as a maturity analysis of the benefit payments. [Refer: Defined benefit obligation, at present value] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 19 -IssueDate 2019-01-01 -Paragraph 147 -Subparagraph c -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=19&code=ifrs-tx-2019-en-r&anchor=para_147_c&doctype=Standard -URIDate 2019-03-27 + Details
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- Definition The disclosure of a net defined benefit liability (asset). [Refer: Net defined benefit liability (asset)] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 19 -IssueDate 2019-01-01 -Paragraph 140 -Subparagraph a -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=19&code=ifrs-tx-2019-en-r&anchor=para_140_a&doctype=Standard -URIDate 2019-03-27 + Details
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- Definition The disclosure of a sensitivity analysis for significant actuarial assumptions used to determine the present value of a defined benefit obligation. [Refer: Actuarial assumptions [member]; Defined benefit obligation, at present value] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 19 -IssueDate 2019-01-01 -Paragraph 145 -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=19&code=ifrs-tx-2019-en-r&anchor=para_145&doctype=Standard -URIDate 2019-03-27 + Details
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