Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Ardagh Group S.A. |
Entity Central Index Key | 1,689,662 |
Document Type | 6-K |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | true |
Amendment Description | Change in presentation currency from euro to U.S. dollar pursuant to a change in accounting policy. |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($)$ / shares | |
Consolidated income statement | ||||||
Revenue | $ 8,596 | $ 7,014 | $ 5,795 | |||
Cost of sales | (7,210) | (5,786) | (4,817) | |||
Gross profit/(loss) | 1,386 | 1,228 | 978 | |||
Sales, general and administration expenses | (450) | (462) | (353) | |||
Intangible amortization | (264) | (191) | (122) | |||
Operating profit/(loss) | 672 | 575 | 503 | |||
Finance expense | (649) | (682) | (590) | |||
Finance income | 88 | |||||
Profit/(loss) before tax | 23 | (19) | (87) | |||
Income tax (charge)/credit | 40 | (55) | (70) | |||
Profit/(loss) for the year | € 54 | 63 | € (67) | (74) | € (140) | (157) |
Profit/(loss) attributable to: | ||||||
Owners of the parent | $ 63 | $ (74) | $ (157) | |||
Profit/(loss) per share: | ||||||
Basic profit/(loss) for the year attributable to equity holders | $ / shares | $ 0.27 | $ (0.37) | $ (0.78) | |||
Before exceptional items | ||||||
Consolidated income statement | ||||||
Revenue | $ 8,596 | $ 7,014 | $ 5,795 | |||
Cost of sales | (7,110) | (5,771) | (4,776) | |||
Gross profit/(loss) | 1,486 | 1,243 | 1,019 | |||
Sales, general and administration expenses | (401) | (332) | (305) | |||
Intangible amortization | (264) | (191) | (122) | |||
Operating profit/(loss) | 821 | 720 | 592 | |||
Finance expense | (517) | (497) | (575) | |||
Profit/(loss) before tax | 304 | 223 | 17 | |||
Income tax (charge)/credit | (98) | (104) | (106) | |||
Profit/(loss) for the year | 206 | 119 | (89) | |||
Exceptional items | ||||||
Consolidated income statement | ||||||
Cost of sales | (100) | (15) | (41) | |||
Gross profit/(loss) | (100) | (15) | (41) | |||
Sales, general and administration expenses | (49) | (130) | (48) | |||
Operating profit/(loss) | (149) | (145) | (89) | |||
Finance expense | (132) | (185) | (15) | |||
Finance income | 88 | |||||
Profit/(loss) before tax | (281) | (242) | (104) | |||
Income tax (charge)/credit | 138 | 49 | 36 | |||
Profit/(loss) for the year | $ (143) | $ (193) | $ (68) |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||||
Profit/(loss) for the year | € 54 | $ 63 | € (67) | $ (74) | € (140) | $ (157) |
Foreign currency translation adjustments: | ||||||
Arising in the year | (178) | 18 | 80 | |||
Foreign currency translation adjustments | (178) | 18 | 80 | |||
Effective portion of changes in fair value of cash flow hedges: | ||||||
New fair value adjustments into reserve | (254) | 54 | 45 | |||
Movement out of reserve | 258 | (85) | (44) | |||
Movement in deferred tax | 1 | (4) | ||||
Effective portion of changes in fair value of cash flow hedges | 5 | (35) | 1 | |||
Items that will not be reclassified to income statement | ||||||
Remeasurements of employee benefit obligations | 49 | (139) | 74 | |||
Deferred tax movement on employee benefit obligations | (6) | 18 | (28) | |||
Total of items that will not be reclassified to income statement | 43 | (121) | 46 | |||
Total other comprehensive (expense)/income for the year | (130) | (138) | 127 | |||
Total comprehensive expense for the year | (67) | (212) | (30) | |||
Attributable to: | ||||||
Equity owners | (67) | (212) | (30) | |||
Total comprehensive expense for the year | $ (67) | $ (212) | $ (30) |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION € in Millions, $ in Millions | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Non-current assets | |||||||
Intangible assets | $ 4,104 | $ 4,115 | $ 1,971 | $ 2,139 | |||
Property, plant and equipment | 3,368 | 3,068 | 2,512 | 2,699 | |||
Derivative financial instruments | 7 | 131 | 49 | ||||
Deferred tax assets | 221 | 273 | 194 | 223 | |||
Other non-current assets | 25 | 21 | 15 | 12 | |||
Total non-current assets | 7,725 | 7,608 | 4,692 | 5,122 | |||
Current assets | |||||||
Inventories | 1,353 | 1,186 | 898 | 935 | |||
Trade and other receivables | 1,274 | 1,227 | 709 | 840 | |||
Related party receivables | 440 | 490 | |||||
Derivative financial instruments | 16 | 12 | 2 | ||||
Cash and cash equivalents | 784 | 813 | 602 | 503 | |||
Total current assets | 3,427 | 3,238 | 2,649 | 2,770 | |||
TOTAL ASSETS | 11,152 | 10,846 | 7,341 | 7,892 | |||
Equity attributable to owners of the parent | |||||||
Issued capital | 23 | ||||||
Share premium | 1,290 | 274 | 571 | 571 | |||
Capital contribution | 485 | 485 | |||||
Other reserves | (21) | 152 | 169 | 88 | |||
Retained earnings | (3,152) | (3,093) | (2,898) | (2,787) | |||
Total equity attributable to owners of the parent | € (1,148) | (1,375) | € (2,070) | (2,182) | € (1,982) | (2,158) | (2,128) |
Non-controlling interests | 1 | 3 | 3 | 3 | |||
TOTAL EQUITY | (1,374) | (2,179) | (2,155) | (2,125) | |||
Non-current liabilities | |||||||
Borrowings | 8,306 | 8,582 | 6,964 | 7,326 | |||
Employee benefit obligations | 997 | 954 | 784 | 878 | |||
Derivative financial instruments | 301 | 0 | |||||
Deferred tax liabilities | 583 | 732 | 502 | 510 | |||
Related party borrowings | 0 | € 709 | 709 | ||||
Provisions | 44 | 60 | 52 | 40 | |||
Total non-current liabilities | 10,231 | 11,037 | 8,302 | 8,754 | |||
Current liabilities | |||||||
Borrowings | 2 | 8 | 8 | 5 | |||
Interest payable | 71 | 85 | 86 | 101 | |||
Derivative financial instruments | 2 | 8 | 8 | 8 | |||
Trade and other payables | 1,988 | 1,622 | 957 | 976 | |||
Income tax payable | 162 | 192 | 83 | 112 | |||
Provisions | 70 | 73 | 52 | 61 | |||
Total current liabilities | 2,295 | 1,988 | 1,194 | 1,263 | |||
TOTAL LIABILITIES | 12,526 | 13,025 | 9,496 | 10,017 | |||
TOTAL EQUITY and LIABILITIES | $ 11,152 | $ 10,846 | $ 7,341 | $ 7,892 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY € in Millions, $ in Millions | TotalUSD ($) | Share capitalUSD ($) | Share premiumUSD ($) | Capital contributionUSD ($) | Foreign currency translation reserveUSD ($) | Cash flow reserveUSD ($) | Retained earningsUSD ($) | Non-controlling interestsUSD ($) | EUR (€) | USD ($) |
Beginning balance at Dec. 31, 2014 | $ (2,128) | $ 571 | $ 91 | $ (3) | $ (2,787) | $ 3 | $ (2,125) | |||
Profit/(loss) for the year | (157) | (157) | € (140) | (157) | ||||||
Other comprehensive (expense)/income | 127 | 80 | 1 | 46 | 127 | |||||
Ending balance at Dec. 31, 2015 | (2,158) | 571 | 171 | (2) | (2,898) | 3 | (2,155) | |||
Profit/(loss) for the year | (74) | (74) | (67) | (74) | ||||||
Other comprehensive (expense)/income | (138) | 18 | (35) | (121) | (138) | |||||
Contribution from parent | 485 | $ 485 | 485 | |||||||
Share issuance | 7 | 7 | 7 | |||||||
Reduction in share premium | (304) | 304 | ||||||||
Dividend payment | (304) | (304) | (304) | |||||||
Ending balance at Dec. 31, 2016 | (2,182) | 274 | 485 | 189 | (37) | (3,093) | 3 | (2,179) | ||
Profit/(loss) for the year | 63 | 63 | € 54 | 63 | ||||||
Other comprehensive (expense)/income | (130) | (178) | 5 | 43 | (130) | |||||
Share re-organization | $ 23 | (23) | ||||||||
Share issuance | 323 | 323 | 323 | |||||||
Conversion of related party loan | 716 | 716 | 716 | |||||||
Dividend payment | (165) | (165) | (165) | |||||||
Non-controlling interest in disposed business | (2) | (2) | ||||||||
Ending balance at Dec. 31, 2017 | $ (1,375) | $ 23 | $ 1,290 | $ 485 | $ 11 | $ (32) | $ (3,152) | $ 1 | $ (1,374) |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Cash generated from operations | $ 1,523 | $ 1,225 | $ 1,059 |
Interest - paid excluding cumulative PIK interest paid | (458) | (412) | (360) |
Cumulative PIK interest paid | (205) | ||
Income tax paid | (103) | (93) | (66) |
Net cash from operating activities | 962 | 515 | 633 |
Cash flows from investing activities | |||
Purchase of business net of cash acquired | (3,036) | ||
Purchase of property, plant and equipment | (476) | (343) | (339) |
Purchase of intangible assets | (22) | (12) | (9) |
Proceeds from disposal of property, plant and equipment | 6 | 4 | 9 |
Net cash used in investing activities | (492) | (3,387) | (339) |
Cash flows from financing activities | |||
Proceeds from borrowings | 3,730 | 4,469 | |
Repayment of borrowings | (4,385) | (2,604) | (221) |
Proceeds from borrowings with related party | 748 | ||
Proceeds from share issuance | 326 | 7 | |
Contribution from parent | 485 | ||
Repayment of borrowings issued to related party | 441 | ||
Dividends paid | (165) | (304) | |
Early redemption premium paid | (91) | (121) | (9) |
Deferred debt issue costs paid | (38) | (68) | (1) |
Proceeds from the termination of derivative financial instruments | 46 | 90 | |
Net cash (outflow)/inflow from financing activities | (577) | 3,053 | (141) |
Net (decrease)/increase in cash and cash equivalents | (107) | 181 | 153 |
Cash and cash equivalents at the beginning of the year | 813 | 602 | 503 |
Exchange gains/(losses) on cash and cash equivalents | 78 | 30 | (54) |
Cash and cash equivalents at the end of the year | $ 784 | $ 813 | $ 602 |
CONSOLIDATED STATEMENT OF CASH7
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENT OF CASH FLOWS | |||
Interest paid | $ 458 | $ 617 | $ 360 |
General information
General information | 12 Months Ended |
Dec. 31, 2017 | |
General information | |
General information | 1. General information Ardagh Group S.A. (the “Company”) was incorporated in Luxembourg on May 6, 2011. An extraordinary general meeting of the shareholders of the Company on February 22, 2017 resolved to change the Company’s name from Ardagh Finance Holdings S.A. to Ardagh Group S.A. The name change became effective on the same day. The Company’s registered office is 56, rue Charles Martel, L‑2134 Luxembourg, Luxembourg. On March 20, 2017, the Company closed its initial public offering (“IPO”) of 18,630,000 Class A common shares on the New York Stock Exchange (“NYSE”). Ardagh Group S.A. and its subsidiaries (together the “Group” or “Ardagh”) are a leading supplier of innovative, value‑added rigid packaging solutions. The Group’s products include metal and glass containers primarily for food and beverage markets. End‑use categories include beer, wine, spirits, carbonated soft drinks, energy drinks, juices and flavored waters, as well as food, seafood and nutrition. Ardagh also supplies the paints & coatings, chemicals, personal care, pharmaceuticals and general household end‑use categories. These consolidated financial statements reflect the consolidation of the legal entities forming the Group for the periods presented. The principal operating legal entities forming the Group are listed in Note 26. The principal accounting policies that have been applied to the consolidated financial statements are described in Note 2. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies Basis of preparation The consolidated financial statements of the Group have been prepared in accordance with, and are in compliance with, International Financial Reporting Standards (“IFRS”) and related interpretations as adopted by the International Accounting Standards Board (“IASB”). IFRS is comprised of standards and interpretations approved by the IASB and IFRS and interpretations approved by the predecessor International Accounting Standards Committee that have been subsequently approved by the IASB and remain in effect. References to IFRS hereafter should be construed as references to IFRS as adopted by the IASB. The consolidated financial statements, are presented in U.S. dollar, rounded to the nearest million and have been prepared under the historical cost convention except for the following: · derivative financial instruments are stated at fair value; and · employee benefit obligations are measured at the present value of the future estimated cash flows related to benefits earned and pension assets valued at fair value. The preparation of consolidated financial information in conformity with IFRS requires the use of critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and income and expenses. It also requires management to exercise judgment in the process of applying Group accounting policies. These estimates, assumptions and judgments are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances and are subject to continual re‑evaluation. However, actual outcomes may differ from these estimates. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are discussed in the critical accounting estimates, assumptions and judgments. The consolidated financial statements for the Group were authorized for issue by the Board of Directors of Ardagh Group S.A. (the “Board”) on April 25, 2018. Change in presentation currency With effect from January 1, 2018, the Group changed the currency in which it presents its financial statements from euro to U.S. dollar. This is principally as a result of the Board of Directors’ assessment that this change will help provide a clearer understanding of the Group’s financial performance and improve comparability of our performance following the Group’s IPO on the NYSE. The change in accounting policy impacts all financial statement line items whereby amounts previously reported in euro have been re-presented in U.S. dollar. To illustrate the effect of the re-presentation the previously reported euro consolidated statements of financial position as at December 31, 2017, 2016, 2015 and 2014, consolidated income statements, consolidated statements of comprehensive income and consolidated statements of cash flows for the years ended December 31, 2017, 2016 and 2015 have been set out in Note 29. Recent accounting pronouncements The impact of new standards, amendments to existing standards and interpretations issued and effective for annual periods beginning on or after January 1, 2017 has been assessed by the Board. Amendments to IAS 7, “Statement of cash flows”, effective from January 1, 2017 do not have a material effect on the consolidated financial statements. Other new standards or amendments to existing standards effective January 1, 2017 are not currently relevant for the Group. The Directors’ assessment of the impact of new standards, as listed below, which are not yet effective and which have not been early adopted by the Group, on the consolidated financial statements and disclosures is on-going, unless otherwise stated. IFRS 15, “Revenue from contracts with customers” replaces IAS 18, “Revenue” and IAS 11, “Construction contracts” and related interpretations. The standard is effective for annual periods beginning on or after January 1, 2018 and earlier application is permitted. IFRS 15 deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognized when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. During 2017 the Group completed its assessment of the potential impact of the new standard, including performing a review of revenue streams and customer contracts in order to evaluate the effects that this standard may have on the consolidated income statement and consolidated statement of financial position. Under current standards the Group recognizes revenue primarily on dispatch of goods. Upon adoption of IFRS 15, where the Group manufactures products for customers that have no alternative use and for which the group has an enforceable right to payment for production completed to date, the standard will require the Group to recognize revenue earlier than current standards such that, for certain contracts, a portion of revenue will be recognized prior to dispatch of goods. Based on the analysis performed to date, the Group does not expect that the adoption of the new standard will have a material impact on the amount of revenue recognized, when compared to the previous accounting guidance. The Group will recognize a contract asset as opposed to inventory as of the date of adoption of the new standard representing revenue that is accelerated as of that date under the new guidance. The Group expects that the adoption of the standard will not have any other material impact on the consolidated statement of financial position. The new guidance will have no impact on the consolidated statement of cash flows. The Group has determined that it shall report under the new standard on a modified retrospective basis upon adoption in the first quarter of 2018 which results in the Group retaining prior period figures as reported under the previous standards and recognising the cumulative effect of applying IFRS 15 as an adjustment to the opening balance of retained earnings as at the date of initial adoption. IFRS 9, “Financial instruments”, replaces IAS 39 “Financial instruments: Recognition and measurement” (“IAS 39”). IFRS 9 has been completed in a number of phases and includes requirements on the classification and measurement of financial instruments, impairment of financial instruments and hedge accounting. It also includes an expected credit loss model that replaces the incurred impairment loss model currently used as well as hedge accounting amendments. This standard becomes effective for annual periods commencing on or after January 1, 2018 and the Group will adopt the new standard from the effective date. The Group does not expect there to be a significant impact on the consolidated income statement, the consolidated statement of comprehensive income and the consolidated statement of financial position in respect of the classification of financial assets and liabilities, the adoption of the new hedge accounting model and the introduction of an expected credit loss model. IFRS 16, “Leases”, sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective is to ensure that lessees and lessors provide relevant information in a manner that appropriately represents those transactions. This information provides a basis for users of financial statements to assess the effect that leases have on the financial position, financial performance and cash flows of the entity. IFRS 16 replaces IAS 17, “Leases”, and later interpretations and will result in most operating leases being recorded on the consolidated statement of financial position. IFRS 16 is effective for annual periods beginning on or after January 1, 2019, with early adoption permitted. The Group is continuing to assess the effects that the adoption of IFRS 16 will have on the Group’s consolidated financial statements. The IFRS Interpretations Committee issued IFRIC 23 “Uncertainty over income tax treatments”, which clarifies how the recognition and measurement requirements of IAS 12 “Income taxes”, are applied where there is uncertainty over income tax treatments. IFRIC 23 is effective for annual periods beginning on or after January 1, 2019. The Group’s assessment of the impact of IFRIC 23 is on-going and it is not expected that the application of this interpretation will have a material impact on the consolidated financial statements of the Group. Basis of consolidation (i) Subsidiaries Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are de‑consolidated from the date on which control ceases. Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is the consideration given in exchange for control of the identifiable assets, liabilities and contingent liabilities of the acquired legal entities. Directly attributable transaction costs are expensed and included as exceptional items within sales, general and administration expenses. The acquired net assets are initially measured at fair value. The excess of the cost of acquisition over the fair value of the identifiable net assets acquired is recorded as goodwill. Any goodwill and fair value adjustments are recorded as assets and liabilities of the acquired legal entity in the currency of the primary economic environment in which the legal entity operates (the “functional currency”). If the cost of acquisition is less than the fair value of the Group’s share of the net assets of the legal entity acquired, the difference is recognized directly in the consolidated income statement. The Group considers obligations of the acquiree in a business combination that arise as a result of the change in control, to be cash flows arising from obtaining control of the controlled entity, and classifies these obligations as investing activities in the consolidated statement of cash flows. (ii) Non-controlling interests Non-controlling interests represent the portion of the equity of a subsidiary which is not attributable to the Group. Non-controlling interests are presented separately in the consolidated financial statements. Changes in ownership of a subsidiary which do not result in a change in control are treated as equity transactions. (iii) Transactions eliminated on consolidation Transactions, balances and unrealized gains or losses on transactions between Group companies are eliminated. Subsidiaries’ accounting policies have been changed where necessary to ensure consistency with the policies adopted by the Group. Foreign currency (i) Functional and presentation currency The functional currency of the Company is euro. The consolidated financial statements are presented in U.S. dollar which is the Group’s presentation currency as set out above. (ii) Foreign currency transactions Items included in the financial statements of each of the Group’s entities are measured using the functional currency of that entity. Transactions in foreign currencies are translated into the functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognized in the consolidated income statement, except: (i) differences on foreign currency borrowings that provide an effective hedge against a net investment in a foreign entity (“net investment hedges”), which are taken to other comprehensive income until the disposal of the net investment, at which time they are recognized in the consolidated income statement; and (ii) differences on certain derivative financial instruments discussed under “Derivative financial instruments” below. Net investment hedges are accounted for in a similar manner to cash flow hedges. The gain or loss relating to the ineffective portion of a net investment hedge is recognized immediately in the consolidated income statement within finance income or expense. (iii) Financial statements of foreign operations The assets and liabilities of foreign operations are translated into euro at foreign exchange rates ruling at the reporting date. The revenues and expenses of foreign operations are translated to euro at average exchange rates for the year. Foreign exchange differences arising on retranslation and settlement of such transactions are recognized in other comprehensive income. Gains or losses accumulated in other comprehensive income are recycled to the consolidated income statement when the foreign operation is disposed of. Non‑monetary items measured at fair value in foreign currency are translated using the exchange rates as at the date when the fair value is determined. Business combinations and goodwill All business combinations are accounted for by applying the acquisition method of accounting. This involves measuring the cost of the business combination and allocating, at the acquisition date, the cost of the business combination to the assets acquired and liabilities assumed. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non‑controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non‑controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition‑related costs are expensed as incurred and included in sales, general and administration expenses. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. Any contingent consideration is recognized at fair value at the acquisition date. Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to those groups of cash‑generating units (“CGUs”) that are expected to benefit from the business combination in which the goodwill arose for the purpose of assessing impairment. Goodwill is tested annually for impairment. Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash‑generating unit retained. Intangible assets Intangible assets are initially recognized at cost. Intangible assets acquired as part of a business combination are capitalized separately from goodwill if the intangible asset is separable or arises from contractual or other legal rights. They are initially recognized at cost which, for intangible assets arising in a business combination, is their fair value at the date of acquisition. Subsequent to initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The carrying values of intangible assets with finite useful lives are reviewed for indicators of impairment at each reporting date and are subject to impairment testing when events or changes in circumstances indicate that the carrying values may not be recoverable. The amortization of intangible assets is calculated to write off the book value of finite lived intangible assets over their useful lives on a straight‑line basis on the assumption of zero residual value as follows: Computer software 2 - 7 years Customer relationships 5 - 15 years Technology 8 - 15 years (i) Computer software Computer software development costs are recognized as assets. Costs associated with maintaining computer software programs are recognized as an expense as incurred. (ii) Customer relationships Customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Customer relationships have a finite useful economic life and are carried at cost less accumulated amortization. (iii) Technology Technology based intangibles acquired in a business combination are recognized at fair value at the acquisition date and reflect the Group’s ability to add value through accumulated technological expertise surrounding product and process development. (iv) Research and development costs Research costs are expensed as incurred. Development costs relating to new products are capitalized if the new product is technically and commercially feasible. All other development costs are expensed as incurred. Property, plant and equipment (i) Owned assets Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, except for land which is shown at cost less impairment. Spare parts which form an integral part of plant and machinery and which have an estimated useful economic life greater than one year are capitalized. Spare parts which do not form an integral part of plant and machinery and which have an estimated useful economic life less than one year are included as consumables within inventory and expensed when utilized. Where components of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. (ii) Leased assets The determination of whether an arrangement is, or contains a lease, is based on the substance of the arrangement and requires an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets, and the arrangement conveys a right to use the asset. Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the consolidated income statement on a straight‑line basis over the period of the lease. (iii) Subsequent costs The Group recognizes in the carrying amount of an item of property, plant and equipment, the cost of replacing the component of such an item when that cost is incurred, if it is probable that the future economic benefits embodied with the item will flow to the Group and the cost of the item can be measured reliably. When a component is replaced the old component is de‑recognized in the period. All other costs are recognized in the consolidated income statement as an expense as incurred. When a major overhaul is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria above are met. (iv) Depreciation Depreciation is charged to the consolidated income statement on a straight‑line basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated. The estimated useful lives are as follows: Buildings 30 - 40 years Plant and machinery 3 - 40 years Molds 2 - 3 years Office equipment and vehicles 3 - 10 years Assets’ useful lives and residual values are adjusted if appropriate, at each balance sheet date. Impairment of non‑financial assets Assets that have an indefinite useful economic life are not subject to amortization and are tested annually for impairment or whenever indicators suggest that impairment may have occurred. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. For the purposes of assessing impairment, assets excluding goodwill and long lived intangible assets, are grouped at the lowest levels at which cash flows are separately identifiable. Goodwill and long lived intangible assets are allocated to groups of CGUs. The groupings represent the lowest level at which the related assets are monitored for internal management purposes. Non‑financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date. The recoverable amount of other assets is the greater of their value in use and fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value, using a pre‑tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the CGU to which the asset belongs. Inventories Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the first‑in, first‑out basis and includes expenditure incurred in acquiring the inventories and bringing them to their current location and condition. In the case of finished goods and work‑in‑progress, cost includes direct materials, direct labor and attributable overheads based on normal operating capacity. Net realizable value is the estimated proceeds of sale less all further costs to completion, and less all costs to be incurred in marketing, selling and distribution. Spare parts which are deemed to be of a consumable nature, are included within inventories and expensed when utilized. Non‑derivative financial instruments Non‑derivative financial instruments comprise trade and other receivables, cash and cash equivalents, restricted cash, borrowings and trade and other payables. Non‑derivative financial instruments are recognized initially at fair value plus any directly attributable transaction costs, except as described below. Subsequent to initial recognition, non‑derivative financial instruments are measured as described below. (i) Trade and other receivables Trade and other receivables are recognized initially at fair value and are thereafter measured at amortized cost using the effective interest rate method less any provision for impairment. A provision for impairment of trade receivables is recognized when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. (ii) Securitized assets The Group previously entered into a series of securitization transactions involving certain of its trade receivables. The securitized assets are recognized on the consolidated statement of financial position, until all of the rights to the cash flows from those assets have expired or have been fully transferred outside the Group, or until substantially all of the related risks, rewards and control of the related assets have been transferred to a third party. On December 7, 2017 the Group closed its securitization facility. The Group entered into a Global Asset Based Loan transaction (“ABL”) involving certain of its trade receivables and inventory. The lenders under the ABL have security over those receivables, inventory and the bank accounts where the associated cash flows are received. The risks, rewards and control of these assets are still retained by the Group and are, therefore, recognized on the statement of financial position. (iii) Cash and cash equivalents Cash and cash equivalents include cash in hand and call deposits held with banks. Cash and cash equivalents are carried at amortized cost. Short term bank deposits of greater than three months’ maturity which do not meet the definition of cash and cash equivalents are classified as financial assets within current assets and stated at amortized cost. (iv) Restricted cash Restricted cash comprises cash held by the Group but which is ring‑fenced or used as security for specific financing arrangements, and to which the Group does not have unfettered access. Restricted cash is measured at amortized cost. (v) Borrowings (including related party debt) Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the Group’s consolidated income statement over the period of the borrowings using the effective interest rate method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. (vi) Trade and other payables Trade and other payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method. Derivative financial instruments Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re‑measured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The fair values of various derivative instruments used for hedging purposes are disclosed in Note 18. The full fair value of a hedging derivative is classified as a non‑current asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability. (i) Cash flow hedges The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in other comprehensive income. Amounts accumulated in other comprehensive income are recycled to the consolidated income statement in the periods when the hedged item will affect profit or loss. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated income statement. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing at that time remains in equity and is recognized in the consolidated income statement when the forecast cash flow arises. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the consolidated income statement. (ii) Net investment hedges Derivative financial instruments are classified as net investment hedges when they hedge changes in the Group’s net investments in its subsidiaries due to exposure to foreign currency. Net investment hedges are accounted for in a similar manner to cash flow hedges. (iii) Fair value hedges Derivative financial instruments are classified as fair value hedges when they hedge the Group’s exposure to changes in the fair value of a recognized asset or liability. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the Group’s consolidated income statement, together with any changes in the fair value of the hedged item that is attributable to the hedged risk. The gain or loss relating to the effective portion of derivatives with fair value hedge accounting is recognized in the consolidated income statement within “finance income/(expense)”. The gain or loss relating to the ineffective portion is also recognized in the consolidated income statement within “finance income/(expense)”. If a hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest rate method is used is amortized to profit or loss over the period to maturity. Fair value measurement The Group measures financial instruments such as derivatives and pension assets at fair value at each balance sheet date. Fair value related disclosures for financial instruments, related party convertible borrowings and pension assets that are measured at fair value or where fair values are disclosed, are summarized in the following notes: · Disclosures for valuation methods, significant estimates and assumptions (Notes 18 and 19) · Contingent consideration · Quantitative disclosures of fair value measurement hierarchy (Note 18) · Financial instruments (including those carried at amortized cost) (Note 18) Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: · in the principal market for the asset or liability; or · in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non‑financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Employee benefits (i) Defined benefit pension plans Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the consolidated statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. Past service costs are recognized immediately in the consolidated income statement. (ii) Multi‑employer pension plans Multi‑employer craft or industry based pension schemes (“multi‑employer schemes”) have arrangements similar to those of defined benefit schemes. In each case it is not possible to identify the Group’s share of the underlying assets and liabilities of the multi‑employer schemes and therefore in accordance with IAS 19(R), the Group has taken the exemption for multi‑employer pension schemes to account for them as defined contribution schemes recognizing the contributions payable in each period in the consolidated income statement. (iii) Other end of service employee benefits In a number of |
Segment analysis
Segment analysis | 12 Months Ended |
Dec. 31, 2017 | |
Segment analysis | |
Segment analysis | 3. Segment analysis The Group’s four operating and reportable segments are Metal Packaging Europe, Metal Packaging Americas, Glass Packaging Europe and Glass Packaging North America. This reflects the basis on which the Group performance is reviewed by management and presented to the CODM. Net finance expense is not allocated to segments as these are reviewed by the CODM on a group‑wide basis. Performance of the segments is assessed based on Adjusted EBITDA. Adjusted EBITDA consists of profit/(loss) before income tax (credit)/charge, net finance expense, depreciation and amortization and exceptional operating items. Segment revenues are derived from sales to external customers. Inter‑segmental revenue is not material. Segment assets consist of intangible assets, property, plant and equipment, derivative financial instrument assets, deferred tax assets, other non‑current assets, inventories, trade and other receivables and cash and cash equivalents and restricted cash. The accounting policies of the segments are the same as those in the consolidated financial statements of the Group as set out in Note 2. Reconciliation of profit/(loss) for the year to Adjusted EBITDA Year ended December 31, 2017 2016 2015 $m $m $m Profit/(loss) for the year 63 (74) (157) Income tax (credit)/charge (Note 6) (40) 55 70 Net finance expense (Note 5) 649 594 590 Depreciation and amortization (Notes 9, 10) 687 561 449 Exceptional operating items (Note 4) 149 145 89 Adjusted EBITDA 1,508 1,281 1,041 The segment results for the year ended December 31, 2017 are: Metal Metal Glass Glass Packaging Packaging Packaging Packaging Europe Americas Europe North America Group $m $m $m $m $m Revenue 3,339 1,931 1,549 1,777 8,596 Adjusted EBITDA 554 265 340 349 1,508 Capital expenditure 176 80 110 126 492 Segment assets 4,485 1,858 2,187 2,622 11,152 The segment results for the year ended December 31, 2016 are: Metal Metal Glass Glass Packaging Packaging Packaging Packaging Europe Americas Europe North America Group $m $m $m $m $m Revenue 2,470 1,168 1,541 1,835 7,014 Adjusted EBITDA 404 154 328 395 1,281 Capital expenditure 80 39 99 133 351 Segment assets 4,159 1,934 1,998 2,755 10,846 The segment results for the year ended December 31, 2015 are: Metal Metal Glass Glass Packaging Packaging Packaging Packaging Europe Americas Europe North America Group $m $m $m $m $m Revenue 1,839 435 1,619 1,902 5,795 Adjusted EBITDA 289 49 318 385 1,041 Capital expenditure 51 17 122 149 339 Segment assets 2,028 441 1,923 2,509 6,901 Capital expenditure is the sum of purchases of property, plant and equipment and software and other intangibles, net of proceeds from disposal of property, plant and equipment, as per the consolidated statement of cash flows. No customer accounted for greater than 10% of total revenue in 2017 (2016: none; 2015: one customer). Total revenue and non‑current assets, excluding derivative financial instruments, taxes, pensions and goodwill arising on acquisitions, in countries which account for more than 10% of total revenue or non‑current assets, in the current or prior years presented, are as follows: Year ended December 31, 2017 2016 2015 Revenue $m $m $m U.S. 3,261 2,695 2,227 United Kingdom 879 801 738 Germany 801 726 639 At December 31, 2017 2016 Non-current assets $m $m U.S. 2,218 2,307 Germany 1,025 801 United Kingdom 676 556 The revenue above is attributed to countries on a destination basis. The Company is domiciled in Luxembourg. During the year the Group had revenues of $3 million (2016: $2 million, 2015: $2 million) with customers in Luxembourg. Non‑current assets located in Luxembourg were $nil (2016: $nil). Within each reportable segment our packaging containers have similar production processes and classes of customers. Further, they have similar economic characteristics as evidenced by similar profit margins, similar degrees of risk and similar opportunities for growth. Based on the foregoing, we do not consider that they constitute separate product lines and therefore additional disclosures relating to product lines is not necessary. |
Exceptional items
Exceptional items | 12 Months Ended |
Dec. 31, 2017 | |
Exceptional items | |
Exceptional items | 4 . Exceptional items Year ended December 31, 2017 2016 2015 $m $m $m Exceptional impairment - property, plant and equipment 54 9 — Restructuring costs 38 15 13 Start-up costs 8 5 30 Exceptional impairment - working capital — — (2) Non-cash inventory adjustment — 10 — Past service credit — (24) — Exceptional items - cost of sales 100 15 41 Transaction related costs - acquisition, integration and IPO 49 128 45 Restructuring and other costs — 2 3 Exceptional items - SGA expenses 49 130 48 Debt refinancing and settlement costs 117 157 15 Exceptional loss on derivative financial instruments 15 11 — Interest payable on acquisition notes — 17 — Exceptional items - finance expense 132 185 15 Exceptional gain on derivative financial instruments — (88) — Exceptional items - finance income — (88) — Total exceptional items 281 242 104 Exceptional items are those that in management’s judgment need to be disclosed by virtue of their size, nature or incidence. 2017 Exceptional items of $281 million have been recognized for the year ending December 31, 2017, primarily comprising: · $117 million debt refinancing and settlement costs relating to the notes and loans redeemed and repaid in January, March, April, June, and August 2017, principally comprising premiums payable on the early redemption of the notes and accelerated amortization of deferred finance costs and issue discounts. · $54 million plant, property and equipment impairment charges arising principally from capacity realignment in Glass Packaging North America and Metal Packaging Europe. · $49 million transaction related costs, primarily comprised of costs directly attributable to the acquisition and integration of the Beverage Can Acquisition and other IPO and transaction related costs. · $15 million exceptional loss on the termination in June 2017, of $500 million of the Group’s U.S. dollar to British pound cross currency interest rate swaps (“CCIRS”), of which $12 million relates to cumulative losses recycled from other comprehensive income. · $38 million relating to capacity realignment and restructuring costs in Metal Packaging Europe. · $8 million of start-up costs in Metal Packaging Americas and Glass Packaging North America. 2016 Exceptional items of $242 million have been recognized in the year ended December 31, 2016, primarily comprising: · $24 million pension service credit in Glass Packaging North America, following the amendment of certain defined benefit pension schemes during the period. · Restructuring costs relate principally to $9 million in Metal Packaging Europe, $2 million in Metal Packaging Americas and $5 million in Glass Packaging North America. · $128 million transaction related costs attributable primarily to the IPO and Beverage Can Acquisition. · $157 million debt refinancing and settlement costs related to the notes repaid in May, September, and November 2016 including premiums payable on the early redemption of the notes, accelerated amortization of deferred finance costs, debt issuance premium and discounts and interest charges incurred in lieu of notice. · $17 million net interest charged in respect of notes held in escrow for the period between their issuance and the completion of the Beverage Can Acquisition. · $9 million plant, property and equipment impairment charges, of which $6 million relates to impairment of plant and machinery in Metal Packaging Europe and $3 million relates to the impairment of a plant in Metal Packaging Americas. · $88 million exceptional gain on derivative financial instruments relating to the gain on fair value of the CCIRS which were entered into during the second quarter and for which hedge accounting had not been applied until the third quarter. · The $11 million exceptional loss on derivative financial instruments relating to hedge ineffectiveness on the Group’s CCIRS. 2015 Exceptional items of $104 million have been incurred in the year ended December 31, 2015, primarily comprising: · $42 million transaction costs, largely associated with the Group’s withdrawn initial public offering of its Metal Packaging business. · $30 million start‑up costs related to two plants in Metal Packaging Americas. · Restructuring costs of $10 million in Metal Packaging Europe and $6 million in Glass Packaging North America. · $3 million acquisition and disposal costs. · $2 million reversal of impairment of assets in Metal Packaging Europe. · $15 million finance costs comprised of $9 million premium on redemption of the €180 million 8¾% Senior notes due 2020 and repaid in February 2015, $3 million accelerated amortization of deferred finance costs relating to the €180 million 8¾% Senior notes and $2 million other finance costs. |
Finance income and expense
Finance income and expense | 12 Months Ended |
Dec. 31, 2017 | |
Finance income and expense | |
Finance income and expense | 5. Finance income and expense Year ended December 31, 2017 2016 2015 $m $m $m Senior secured and senior notes 431 460 421 Term loan 5 30 29 Other interest expense 6 7 9 Interest expense 442 497 459 Net pension interest cost (Note 19) 24 28 26 Loss on derivative financial instruments 28 — — Foreign currency translation losses/(gains) 24 (23) 88 Other finance (income)/expense (1) (5) 2 Finance expense before exceptional items 517 497 575 Exceptional finance expense (Note 4) 132 185 15 Total finance expense 649 682 590 Exceptional finance income (Note 4) — (88) — Net finance expense 649 594 590 |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2017 | |
Income tax | |
Income tax | 6 . Income tax Year ended December 31, 2017 2016 2015 $m $m $m Current tax: Current tax for the year 99 69 60 Adjustments in respect of prior years 1 (20) 9 Total current tax 100 49 69 Deferred tax: Deferred tax for the year (134) (11) 19 Adjustments in respect of prior years (6) 17 (18) Total deferred tax (140) 6 1 Income tax (credit)/charge (40) 55 70 Reconciliation of income tax (credit)/charge and the accounting loss multiplied by the Group’s domestic tax rate for 2017, 2016 and 2015 is as follows: Year ended December 31, 2017 2016 2015 $m $m $m Profit/(loss) before tax 23 (19) (87) Profit/(loss) before tax multiplied by the standard rate of Luxembourg corporation tax: 27.08% (2016: 29.22%; 2015: 29.22%) 6 (6) (25) Tax losses for which no deferred income tax asset was recognized — 1 2 Re-measurement of deferred taxes (79) (6) (6) Adjustment in respect of prior years (4) (3) (9) Income subject to state and other local income taxes 17 10 12 Income taxed at rates other than standard tax rates (19) 21 30 Non-deductible items 31 41 70 Other 8 (3) (4) Income tax (credit)/charge (40) 55 70 The total income tax (credit)/charge outlined above for each year includes tax credits of $138 million in 2017 (2016: $49 million; 2015: $36 million) in respect of exceptional items. This includes a credit of $78 million on remeasurement of deferred tax positions following the enactment of the Tax Cuts and Jobs Act of 2017 (“TCJA”) in the United States of America. On December 22, 2017, the TCJA was signed into US law. On re-measurement of Ardagh Group’s deferred tax positions following the enactment of the TCJA, a one-time non-cash benefit of $78 million was recorded to the income statement. This credit reflects a reduction in Ardagh Group’s US net deferred tax liability due to the reduction in the US federal corporate tax rate, which will apply when the existing temporary differences reverse, from the existing rate of 35% to 21% with effect from January 1, 2018. The additional tax credit on re-measurement of deferred tax positions of $1 million is attributable to the progressive reduction in the French corporate income tax rate, which will apply when the existing temporary differences reverse, from 28% to 25%. Non‑deductible items principally relate to non‑deductible interest expense in Ireland and Luxembourg and income taxed at non‑standard rates takes account of foreign tax rate differences (versus the Luxembourg standard 27.08% rate) on earnings. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share | |
Earnings per share | 7 . Earnings per share Basic earnings per share (EPS) is calculated by dividing the profit/(loss) for the year attributable to equity holders by the weighted average number of ordinary shares outstanding during the year. The following table reflects the income statement profit/(loss) and share data used in the basic EPS computations: Year ended December 31, 2017 2016 2015 $m $m $m Profit/(loss) attributable to equity holders 63 (74) (157) 2017 2016 2015 Weighted average number of ordinary shares for basic EPS (millions of shares) 229.6 202.0 202.0 Profit/(loss) per share $ 0.27 $ (0.37) $ (0.78) The weighted average number of ordinary shares at December 31, 2016 and 2015 has been re-presented to adjust for the share reorganization completed in March 2017 as set out in Note 16 (i). Please refer to Note 16 for details of transactions involving ordinary shares for the year ended December 31, 2017. There have been no transactions involving ordinary shares or potential ordinary shares between the reporting date and the authorization of these financial statements. |
Employee costs
Employee costs | 12 Months Ended |
Dec. 31, 2017 | |
Employee costs | |
Employee costs | 8. Employee costs Year ended December 31, 2017 2016 2015 $m $m $m Wages and salaries 1,345 1,190 1,034 Social security costs 209 167 148 Defined benefit plan pension costs (Note 19) 46 46 50 Defined benefit past service credit (Note 19) (10) (43) — Defined contribution plan pension costs (Note 19) 35 34 16 1,625 1,394 1,248 At December 31, Employees 2017 2016 2015 Production 20,793 20,823 17,068 Administration 2,698 2,711 1,789 23,491 23,534 18,857 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets | |
Intangible assets | 9 . Intangible assets Customer Technology Goodwill relationships and other Software Total $m $m $m $m $m Cost At January 1, 2016 1,140 926 197 53 2,316 Acquisitions (Note 24) 1,004 1,385 34 12 2,435 Additions — — 8 3 11 Impairment — — — (2) (2) Exchange (56) (53) (5) (2) (116) At December 31, 2016 2,088 2,258 234 64 4,644 Amortization At January 1, 2016 (254) (56) (37) (347) Charge for the year (159) (25) (7) (191) Exchange 14 (6) 1 9 At December 31, 2016 (399) (87) (43) (529) Net book value At December 31, 2016 2,088 1,859 147 21 4,115 Cost At January 1, 2017 2,088 2,258 234 64 4,644 Additions — — 5 16 21 Derecognition of fully amortized assets — (42) — — (42) Exchange 113 139 12 8 272 At December 31, 2017 2,201 2,355 251 88 4,895 Amortization At January 1, 2017 (399) (87) (43) (529) Charge for the year (225) (31) (8) (264) Derecognition of fully amortized assets 42 — — 42 Exchange (25) (8) (7) (40) At December 31, 2017 (607) (126) (58) (791) Net book value At December 31, 2017 2,201 1,748 125 30 4,104 In the year ended December 31, 2017 an intangible asset relating to an acquired customer relationship in Glass Packaging North America was derecognised. This asset had reached the end of its estimated useful life and had a net book value of $nil at the date of derecognition. Goodwill Allocation of goodwill Goodwill has been allocated to groups of CGUs for the purpose of impairment testing. The groupings represent the lowest level at which the related goodwill is monitored for internal management purposes. Goodwill acquired through business combination activity is allocated to CGUs that are expected to benefit from synergies arising from that combination. The allocation of goodwill arising from the Beverage Can Acquisition was finalized on June 30, 2017. The lowest level within the Group at which the goodwill is monitored for internal management purposes and consequently the CGUs to which goodwill is allocated, is set out below: At December 31, 2017 2016 $m $m Metal Packaging Europe - excluding the Beverage Can Business ('Metal Europe') 320 282 Metal Packaging Americas - excluding the Beverage Can Business ('Metal Americas') 29 30 Metal Packaging Europe - Beverage Can Business ('Beverage Europe') 604 534 Metal Packaging Americas - Beverage Can Business ('Beverage Americas') 437 436 Glass Packaging Europe 65 60 Glass Packaging North America 746 746 Total Goodwill 2,201 2,088 Impairment tests for goodwill The Group performs its impairment test of goodwill annually following approval of the annual budget. Recoverable amount and carrying amount The Group used the value in use (“VIU”) model for the purposes of the goodwill impairment testing as this reflects the Group’s intention to hold and operate the assets. The VIU model used the 2018 budget approved by the Board (2016: 2017 two‑year budget). The budget was then extended for a further four‑year period (2016: 2017 three‑year period) making certain assumptions including that long - term capital expenditure equals depreciation and that any increase in input cost will be passed through to customers, in line with historic practice and contractual terms. The terminal value assumed long term growth in line with long term inflation. Cash flows considered in the VIU model included the cash inflows and outflows related to the continuing use of the assets over their remaining useful lives, expected earnings, required maintenance capital expenditure, depreciation, tax and working capital. The discount rate applied to cash flows in the VIU model was estimated using the Capital Asset Pricing Model with regard to the risks associated with the cash flows being considered (country, market and specific risks of the asset). The modelled cash flows take into account the Group’s established history of earnings, cash flow generation and the nature of the markets in which we operate, where product obsolescence is low. The key assumptions employed in modelling estimates of future cash flows are subjective and include projected Adjusted EBITDA, discount rates and growth rates, replacement capital expenditure requirements, rates of customer retention and the ability to maintain margin through the pass through of input cost inflation. A sensitivity analysis was performed reflecting potential variations in terminal growth rate and discount rate assumptions. In all cases the recoverable values calculated were in excess of the carrying values of the CGUs. The variation applied to terminal value growth rates and discount rates was a 50 basis points decrease and increase respectively and represents a reasonably possible change to the key assumptions of the VIU model. Further, a reasonably possible change to the operating cash flows would not reduce the recoverable amounts below the carrying values of the CGUs. The additional disclosures required under IAS 36 in relation to significant goodwill amounts arising in the groups of CGUs are as follows: Glass Glass Packaging Metal Metal Beverage Beverage Packaging North Europe Americas Europe Americas Europe America $m/% $m/% $m/% $m/% $m/% $m/% 2017 Carrying amount of goodwill Excess of recoverable amount Pre-tax discount rate applied Growth rate for terminal value 2016 Carrying amount of goodwill 282 30 534 436 60 746 Excess of recoverable amount 2,296 392 613 289 2,186 1,718 Pre-tax discount rate applied 8.3 9.8 8.9 11.9 8.7 10.3 Growth rate for terminal value 1.5 2.0 1.5 2.0 1.5 2.0 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment | |
Property, plant and equipment | 10. Property, plant and equipment Plant, Office Land and machinery equipment buildings and other and vehicles Total $m $m $m $m Cost At January 1, 2016 829 3,108 56 3,993 Acquisitions (Note 24) 190 512 — 702 Additions 3 345 6 354 Impairment — (9) — (9) Disposals (7) (211) (11) (229) Transfers 14 (32) 18 — Exchange (46) (172) (5) (223) At December 31, 2016 983 3,541 64 4,588 Depreciation At January 1, 2016 (189) (1,264) (27) (1,480) Charge for the year (28) (332) (10) (370) Disposals 4 211 10 225 Exchange 13 90 2 105 At December 31, 2016 (200) (1,295) (25) (1,520) Net book value At December 31, 2016 783 2,246 39 3,068 Cost At January 1, 2017 983 3,541 64 4,588 Additions 8 508 6 522 Impairment (Note 4) — (54) — (54) Disposals (4) (160) (10) (174) Transfers 11 (9) 7 9 Exchange 96 316 4 416 At December 31, 2017 1,094 4,142 71 5,307 Depreciation At January 1, 2017 (200) (1,295) (25) (1,520) Charge for the year (35) (378) (10) (423) Disposals 2 156 10 168 Transfers 1 (2) 1 — Exchange (26) (137) (1) (164) At December 31, 2017 (258) (1,656) (25) (1,939) Net book value At December 31, 2017 836 2,486 46 3,368 Depreciation expense of $415 million (2016: $363 million; 2015: $321 million) has been charged in cost of sales and $8 million (2016: $6 million; 2015: $6 million) in sales, general and administration expenses. Transfers primarily relate to the reclassification of construction in progress to the applicable classification within property, plant and equipment and the reclassification of certain consumables with an estimated useful life of greater than one year, from inventory to property, plant and equipment. Construction in progress at December 31, 2017 was $241 million (2016: $120 million). Included in property, plant and equipment is an amount for land of $225 million (2016: $206 million). Substantially all of the Group’s property, plant and equipment is pledged as security under the terms and conditions of the Group’s financing arrangements. No interest was capitalized in the year (2016: $nil). Impairment The Board has considered the carrying value of the Group’s property, plant and equipment and assessed the indicators of impairment as at December 31, 2017 in accordance with IAS 36. In the year ended December 31, 2017 an impairment charge of $54 million (2016: $9 million) has been recognized, of which $38 million (2016: $nil) relates to the impairment of plant and machinery in Glass Packaging North America and $16 million (2016: $6 million) relates to the impairment of plant and machinery in Metal Packaging Europe, arising principally from capacity realignment . Finance leases The depreciation charge for capitalized leased assets was $1 million (2016: $1 million; 2015: $1 million) and the related finance charges were $nil (2016: $nil; 2015: $nil). The net carrying amount is $12 million (2016: $11 million). Operating lease commitments During the year, the expense in respect of operating lease commitments was as follows: Year ended December 31, 2017 2016 2015 $m $m $m Plant and machinery 6 6 6 Land and buildings 21 27 23 Office equipment and vehicles 11 10 9 38 43 38 At December 31, the Group had total commitments under non‑cancellable operating leases which expire: At December 31, 2017 2016 2015 $m $m $m Not later than one year 35 32 29 Later than one year and not later than five years 77 73 75 Later than five years 80 72 73 192 177 177 Capital commitments The following capital commitments in relation to property, plant and equipment were authorized by management, but have not been provided for in the consolidated financial statements: At December 31, 2017 2016 2015 $m $m $m Contracted for 101 116 33 Not contracted for 14 20 7 115 136 40 |
Other non-current assets
Other non-current assets | 12 Months Ended |
Dec. 31, 2017 | |
Other non-current assets | |
Other noncurrent assets | 11 . Other non‑current assets At December 31, 2017 other non‑current assets of $25 million (2016: $21 million) include $10 million (2016: $6 million) relating to the Group’s investment in its joint ventures. |
Deferred income tax
Deferred income tax | 12 Months Ended |
Dec. 31, 2017 | |
Deferred income tax | |
Deferred income tax | 12. Deferred income tax The movement in deferred tax assets and liabilities during the year was as follows: Assets Liabilities Total $m $m $m At January 1, 2016 432 (740) (308) Acquisition (Note 24) 81 (243) (162) (Charged)/credited to the income statement (Note 6) (46) 40 (6) Credited/(charged) to other comprehensive income 20 (6) 14 Reclassification 3 (3) — Exchange (21) 24 3 At December 31, 2016 469 (928) (459) (Charged)/credited to the income statement (Note 6) (67) 207 140 (Charged)/credited to other comprehensive income (6) 1 (5) Reclassification 4 (4) — Exchange 28 (66) (38) At December 31, 2017 428 (790) (362) The components of deferred income tax assets and liabilities are as follows: At December 31, 2017 2016 $m $m Tax losses 34 34 Employee benefit obligations 187 181 Depreciation timing differences 90 86 Provisions 70 99 Other 47 69 428 469 Available for offset (207) (196) Deferred tax assets 221 273 Intangible assets (395) (508) Accelerated depreciation and other fair value adjustments (369) (378) Other (26) (42) (790) (928) Available for offset 207 196 Deferred tax liabilities (583) (732) The tax credit/(charge) recognized in the consolidated income statement is analyzed as follows: Year ended December 31, 2017 2016 2015 $m $m $m Tax losses (2) (3) (20) Employee benefit obligations (21) (13) 14 Depreciation timing differences (6) (13) (2) Provisions (26) — (8) Other deferred tax assets (12) (17) (8) Intangible assets 155 42 33 Accelerated depreciation and other fair value adjustments 29 7 2 Other deferred tax liabilities 23 (9) (12) 140 (6) (1) Deferred tax assets are only recognized on tax loss carry‑forwards to the extent that the realization of the related tax benefit through future taxable profits is probable based on management’s forecasts. The Group did not recognize deferred tax assets of $62 million (2016: $45 million) in respect of tax losses amounting to $373 million (2016: $235 million) that can be carried forward against future taxable income due to uncertainty regarding their utilization. In addition, the Group did not recognize deferred tax assets of $50 million (2016: $74 million) in respect of capital losses amounting to $239 million (2016: $212 million) that can be carried forward against future taxable income due to uncertainty regarding their utilization. No provision has been made for temporary differences applicable to investments in subsidiaries as the Group is in a position to control the timing of reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Given that exemptions and tax credits would be available in the context of the Group’s investments in subsidiaries in the majority of jurisdictions in which it operates, the aggregate amount of temporary differences in respect of which deferred tax liabilities have not been recognized would not be material. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | |
Inventories | 13. Inventories At December 31, 2017 2016 $m $m Raw materials and consumables 369 305 Mold parts 52 46 Work-in-progress 85 72 Finished goods 847 763 1,353 1,186 Certain inventories held by the Group have been pledged as security under the Group’s Global Asset Based Loan facility (Note 18). The amount recognized as a write down in inventories or as a reversal of a write down in the year ended December 31, 2017 was not material. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables | |
Trade and other receivables | 14. Trade and other receivables At December 31, 2017 2016 $m $m Trade receivables 1,015 970 Other receivables and prepayments 259 257 1,274 1,227 The fair values of trade and other receivables approximate the amounts shown above. Movements on the provision for impairment of trade receivables are as follows: 2017 2016 2015 $m $m $m At January 1, 15 15 17 Provision for receivables impairment 6 1 2 Receivables written off during the year as uncollectible — (1) (2) Exchange 2 — (2) At December 31, 23 15 15 The majority of the provision above relates to balances which are more than six months past due. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable set out above. Provisions against specific balances Significant balances are assessed for evidence that the customer is experiencing financial difficulty. Examples of factors considered are high probability of bankruptcy, breaches of contract or major concession being sought by the customer. Instances of significant single customer related bad debts are rare and there is no significant concentration of risk associated with particular customers. Providing against the remaining population of customers Historic data is monitored and applied as the primary source of evidence to assess the level of losses incurred, although impairments cannot yet be identified with individual receivables. Adverse changes in the payment status of customers of the Group, or national or local economic conditions that correlate with defaults on receivables owing to the Group, may also provide a basis for increase of the level of provision above historic loss experience. However, the fact that payments are made late by customers does not automatically provide evidence that a provision should be recognized. As of December 31, 2017, trade receivables of $62 million (2016: $48 million) were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default. The ageing analysis of these trade receivables is as follows: At December 31, 2017 2016 $m $m Up to three months past due 46 42 Three to six months past due 5 Over six months past due 11 62 48 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Cash, cash equivalents and restricted cash | |
Cash and cash equivalents | 15. Cash and cash equivalents At December 31, 2017 2016 $m $m Cash at bank and in hand 641 768 Short term bank deposits 130 17 Restricted cash 13 28 784 813 Within cash and cash equivalents, the Group had $13 million of restricted cash at December 31, 2017 (2016: $28 million), which includes bank guarantees in the United States and early retirement plans in Germany. |
Issued capital and reserves
Issued capital and reserves | 12 Months Ended |
Dec. 31, 2017 | |
Issued capital and reserves | |
Issued capital and reserves | 16. Issued capital and reserves Share capital Issued and fully paid shares: At December 31, 2016 Number of shares (millions) $m - Ordinary shares (par value €0.01) 11.1 Cancellation of ordinary shares (i) (11.1) — Issue of shares: - Class A common shares (par value €0.01) (ii) 18.6 — - Class B common shares (par value €0.10) (i) 217.7 23 At December 31, 2017 236.3 23 2017 (i) Share reorganization In March 2017, the Company completed a reorganization of its capital structure. The authorized share capital of the Company was set at €55 million, divided into 1 billion Class A common shares at a par value of €0.01 and 450 million Class B common shares at a par value of €0.10 per share. The 11,111,200 outstanding ordinary shares of the Company were cancelled and the existing shareholders were issued, on a pro rata basis, 1,111,120 Class B common shares with an equivalent total par value to the cancelled shares. In addition, the Company converted its $716 million related party loan payable to ARD Group Finance Holdings S.A. (a subsidiary of its intermediate parent and a shareholder of the Company), into 86,154 Class B common shares, and issued 216,498,726 Class B common shares on a pro rata basis to existing shareholders, for no additional consideration. The par value was satisfied by a reallocation of existing share premium. Consequently, there was a total of 217,696,000 Class B common shares in issue prior to the Company’s IPO, as described below. (ii) Share issuance On March 20, 2017, the Company closed its IPO of 18,630,000 Class A common shares on the NYSE at $19.00 per share. The net proceeds of the IPO were $323 million, after deducting underwriting discounts of $21 million and estimated directly attributable transaction costs of $10 million. 2016 (i) Share premium On September 21, 2016 the Company issued 1,111,200 ordinary shares to ARD Group Finance Holdings S.A. at a par value of €0.01 per share with a share premium of $7 million. On the same date, the Board approved the reclassification of an element of the Company’s share premium to retained earnings, thereby realizing a distributable reserve, and subsequently paid a dividend to its parent company. (ii) Capital contribution On September 21, 2016 the Company received a contribution of $485 million in cash from its parent company. There were no terms and conditions associated with the contribution. The proceeds from this contribution were mainly used to redeem part of the principal amount outstanding of its $841 million 8.625% Senior PIK Notes due 2019 and €295 million 8.375% Senior PIK Notes due 2019. All other reserves are as stated in the consolidated statement of changes in equity. |
Financial risk factors
Financial risk factors | 12 Months Ended |
Dec. 31, 2017 | |
Financial risk factors | |
Financial risk factors | 17. Financial risk factors The Group’s activities expose it to a variety of financial risks: capital risk, interest rate risk, currency exchange risk, commodity price risk, credit risk, and liquidity risk. Capital structure and risk The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern and provide returns to its shareholders. The Group funds its operations primarily from the following sources of capital: borrowings, cash flow and shareholders’ capital. The Group aims to achieve a capital structure that results in an appropriate cost of capital to accommodate material investments or acquisitions, while providing flexibility in short and medium term funding. The Group also aims to maintain a strong balance sheet and to provide continuity of financing by having a range of maturities and borrowing from a variety of sources. The Group’s overall treasury objectives are to ensure sufficient funds are available for the Group to carry out its strategy and to manage certain financial risks to which the Group is exposed, details of which are provided below. Financial risks are managed on the advice of Group Treasury and senior management. The Group does not permit the use of treasury instruments for speculative purposes, under any circumstances. Group Treasury regularly reviews the level of cash and debt facilities required to fund the Group’s activities, plans for repayments and refinancing of debt, and identifies an appropriate amount of headroom to provide a reserve against unexpected funding requirements. Additionally, financial instruments, including derivative financial instruments, are used to hedge exposure to interest rate, currency exchange risk and commodity price risk. One of the Group’s key metrics has been the ratio of consolidated external net debt as a multiple of Adjusted EBITDA. Adjusted EBITDA consists of profit/(loss) before income tax (credit)/charge, net finance expense, depreciation and amortization and exceptional operating items. As at December 31, 2017 the ratio for the Group was 5.19x (2016: 5.98x; 2015: 6.12x). Interest rate risk The Board’s policy, in the management of interest rate risk, is to strike the right balance between the Group’s fixed and floating rate financial instruments, which occasionally includes the use of CCIRS. The balance struck by the Board is dependent on prevailing interest rate markets at any point in time. At December 31, 2017, the Group’s external borrowings were 91.7% (2016: 73.8%) fixed with a weighted average interest rate of 5.5% (2016: 5.4%; 2015: 6.2%). The weighted average interest rate of the Group for the year ended December 31,2017 was 4.9% (2016: 5.2%; 2015 6.2%). The Group has related party borrowings of $nil as at December 31, 2017 (2016: $709 million). Holding all other variables constant, including levels of the Group’s external indebtedness, at December 31, 2017 a one percentage point increase in variable interest rates would increase interest payable by approximately $7 million (2016: $22 million). Currency exchange risk The Group’s functional currency is the euro however the Group presents its financial information in U.S. dollar. The functional currency of the Company will continue to be the euro. As a result, the Group’s presented results are impacted as a result of fluctuations in the U.S. dollar exchange rate versus the euro. The Group operates in 22 countries, across five continents and its main currency exposure in the year to December 31, 2017, from the euro functional currency, was in relation to the U.S. dollar, British pound, Swedish krona, Polish zloty, Danish krone and Brazilian real. Currency exchange risk arises from future commercial transactions, recognized assets and liabilities, and net investments in foreign operations. The Group has a limited level of transactional currency exposure arising from sales or purchases by operating units in currencies other than their functional currencies. The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through borrowings and swaps denominated in the Group’s principal foreign currencies. Fluctuations in the value of these currencies with respect to the Group’s euro functional currency may have a significant impact on the Group’s financial condition and results of operations. When considering the Group’s position, the Group believes that a strengthening of the euro exchange rate (the Group’s functional currency) by 1% against all other foreign currencies from the December 31, 2017 rate would decrease shareholders’ equity by approximately $4 million (2016: $7 million increase). Commodity price risk The Group is exposed to changes in prices of our main raw materials, primarily energy, aluminum and steel. Production costs in our Metal Packaging division are exposed to changes in prices of our main raw materials, primarily aluminum and steel. Aluminum ingot is traded daily as a commodity (priced in U.S. dollars) on the London Metal Exchange, which has historically been subject to significant price volatility. Because aluminum is priced in U.S. dollars, fluctuations in the U.S. dollar/ euro rate also affect the euro cost of aluminum ingot. The price and foreign currency risk on the aluminum purchases in Metal Packaging Europe and Metal Packaging Americas are hedged by entering into swaps under which we pay fixed euro and U.S. dollar prices, respectively. In contrast, the hedging market for steel, and in particular that for coking coal, is a new market which does not have the depth of the aluminum market and as a consequence, there might be limitations to placing hedges in the market. The majority of our steel purchases are obtained under one-year contracts with prices that are usually fixed in advance. When such contracts are renewed in the future, our steel costs under such contracts will be subject to prevailing global steel and/or tinplate prices at the time of renewal, which may be different from historical prices. Furthermore, the relative price of oil and its by‑products may materially impact our business, affecting our transport, lacquer and ink costs. Where we do not have pass through contracts in relation to the underlying metal raw material cost the Group uses derivative agreements to manage this risk. The Group depends on an active liquid market and available credit lines with counterparty banks to cover this risk. The use of derivative contracts to manage our risk is dependent on robust hedging procedures. Increasing raw material costs over time has the potential, if we are unable to pass on price increases, to reduce sales volume and could therefore have a significant impact on our financial condition. The Group is also exposed to possible interruptions of supply of aluminum and steel or other raw materials and any inability to purchase raw materials could negatively impact our operations. Production costs in our Glass Packaging division are sensitive to the price of energy. Our main energy exposure is to the cost of gas and electricity. These energy costs have experienced significant volatility in recent years with a corresponding effect on our production costs. In terms of gas, which represents 50% of our energy costs, there is a continuous de‑coupling between the cost of gas and oil, whereby now only significant changes in the price of oil have an impact on the price of gas. The volatility in gas pricing is driven by shale gas development (United States only), the availability of liquefied natural gas in Europe, as both Europe and Asia compete for shipments, and storage levels. Volatility in the price of electricity is caused by the German Renewable Energy policy, the phasing out of nuclear generating capacity, fluctuations in the price of gas and coal and the influence of carbon dioxide costs on electricity prices. As a result of the volatility of gas and electricity prices, the Group has either included energy pass‑through clauses in our sales contracts or developed an active hedging strategy to fix a significant proportion of our energy costs through contractual arrangements directly with our suppliers, where there is no energy clause in the sales contract. Where pass through contracts do not exist the Group policy is to purchase gas and electricity by entering into forward price‑fixing arrangements with suppliers for the bulk of our anticipated requirements for the year ahead. Such contracts are used exclusively to obtain delivery of our anticipated energy supplies. The Group does not net settle, nor do we sell within a short period of time after taking delivery. The Group avails of the own use exemption and, therefore, these contracts are treated as executory contracts. The Group typically builds up these contractual positions in tranches of approximately 10% of the anticipated volumes. Any gas and electricity which is not purchased under forward price‑fixing arrangements is purchased under index tracking contracts or at spot prices. We have 72% and 73% of our energy risk covered for 2018 and 2019, respectively. Credit risk Credit risk is managed on a Group basis. Credit risk arises from derivative contracts, cash and deposits held with banks and financial institutions, as well as credit exposures to the Group’s customers, including outstanding receivables. Group policy is to place excess liquidity on deposit, only with recognized and reputable financial institutions. For banks and financial institutions, only independently rated parties with a minimum rating of “BBB+” from at least two credit rating agencies are accepted, where possible. The credit ratings of banks and financial institutions are monitored to ensure compliance with Group policy. Group policy is to extend credit to customers of good credit standing. Credit risk is managed on an on‑going basis, by experienced people within the Group. The Group’s policy for the management of credit risk in relation to trade receivables involves periodically assessing the financial reliability of customers, taking into account their financial position, past experience and other factors. Provisions are made, where deemed necessary, and the utilization of credit limits is regularly monitored. Management does not expect any significant counterparty to fail to meets its obligations. The maximum exposure to credit risk is represented by the carrying amount of each asset. For the year ended December 31, 2017, the Group’s ten largest customers accounted for approximately 36% of total revenues (2016: 33%; 2015: 32%). There is no recent history of default with these customers. Liquidity risk The Group is exposed to liquidity risk which arises primarily from the maturing of short term and long term debt obligations. The Group’s policy is to ensure that sufficient resources are available either from cash balances, cash flows or undrawn committed bank facilities, to ensure all obligations can be met as they fall due. To effectively manage liquidity risk, the Group: · has committed borrowing facilities that it can access to meet liquidity needs; · maintains cash balances and liquid investments with highly‑rated counterparties; · limits the maturity of cash balances; · borrows the bulk of its debt needs under long term fixed rate debt securities; and · has internal control processes and contingency plans for managing liquidity risk. Cash flow forecasting is performed in the operating entities of the Group and is aggregated by Group Treasury. Group Treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans and covenant compliance and internal balance sheet ratio targets. Surplus cash held by the operating entities over and above the balance required for working capital management is transferred to Group Treasury. Group Treasury invests surplus cash in interest‑bearing current accounts and time deposits with appropriate maturities to provide sufficient headroom as determined by the above‑mentioned forecasts. |
Financial assets and liabilitie
Financial assets and liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Financial assets and liabilities | |
Financial assets and liabilities | 18. Financial assets and liabilities The Group’s net external debt was as follows: At December 31, 2017 2016 $m $m Loan notes 8,296 7,919 Term loan — 661 Other borrowings 12 10 Total borrowings 8,308 8,590 Cash and cash equivalents (784) (813) Derivative financial instruments used to hedge foreign currency and interest rate risk 301 (131) Net debt 7,825 7,646 At December 31, 2017, the Group’s net debt and available liquidity was as follows: Maximum Final amount maturity Facility Undrawn Facility Currency drawable date type Amount drawn amount Local Local $m $m currency currency m m 2.750% Senior Secured Notes EUR 15-Mar-24 Bullet 899 — 4.625% Senior Secured Notes USD 15-May-23 Bullet 1,000 — 4.125% Senior Secured Notes EUR 15-May-23 Bullet 528 — 4.250% Senior Secured Notes USD 15-Sep-22 Bullet 715 — 4.750% Senior Notes GBP 15-Jul-27 Bullet 541 — 6.000% Senior Notes USD 15-Feb-25 Bullet 1,696 — 7.250% Senior Notes USD 15-May-24 Bullet 1,650 — 6.750% Senior Notes EUR 15-May-24 Bullet 899 — 6.000% Senior Notes USD 30-Jun-21 Bullet 440 — Global Asset Based Loan Facility USD 07-Dec-22 Revolving — — 813 Finance Lease Obligations GBP/EUR Amortizing 8 — Other borrowings/credit lines EUR Rolling Amortizing 4 Total borrowings / undrawn facilities 8,380 814 Deferred debt issue costs and bond premium (72) — Net borrowings / undrawn facilities 8,308 814 Cash and cash equivalents (784) 784 Derivative financial instruments used to hedge foreign currency and interest rate risk 301 — Net debt / available liquidity 7,825 1,598 Net debt includes the fair value of associated derivative financial instruments that are used to hedge foreign exchange and interest rate risks relating to finance debt. Certain of the Group’s borrowing agreements contain certain covenants that restrict the Group’s flexibility in certain areas such as incurrence of additional indebtedness (primarily maximum borrowings to Adjusted EBITDA and a minimum Adjusted EBITDA to interest expense), payment of dividends and incurrence of liens. The Global Asset Based Loan Facility is subject to a number of financial covenants including a fixed charge coverage ratio. The facility also includes cash dominion, representations, warranties, events of default and other covenants that are generally of a nature customary for such facilities. At December 31, 2016, the Group’s net debt and available liquidity was as follows: Maximum Final amount maturity Facility Undrawn Facility Currency drawable date type Amount drawn amount Local Local $m $m currency currency m m 4.250% First Priority Senior Secured Notes EUR 1,155 15-Jan-22 Bullet 1,155 1,217 — 4.625% Senior Secured Notes USD 1,000 15-May-23 Bullet 1,000 1,000 — 4.125% Senior Secured Notes EUR 440 15-May-23 Bullet 440 464 — First Priority Senior Secured Floating Rate Notes USD 1,110 15-Dec-19 Bullet 1,110 1,110 — Senior Secured Floating Rate Notes USD 500 15-May-21 Bullet 500 500 — 6.000% Senior Notes USD 440 30-Jun-21 Bullet 440 440 — 6.250% Senior Notes USD 415 31-Jan-19 Bullet 415 415 — 6.750% Senior Notes USD 415 31-Jan-21 Bullet 415 415 — 7.250% Senior Notes USD 1,650 15-May-24 Bullet 1,650 1,650 — 6.750% Senior Notes EUR 750 15-May-24 Bullet 750 790 — Term Loan B Facility USD 663 17-Dec-21 Amortizing 663 663 — HSBC Securitization Program EUR 102 14-Jun-18 Revolving — — 108 Bank of America Facility USD 155 11-Apr-18 Revolving — — 155 Finance lease obligations GBP/EUR Amortizing 7 7 — Other borrowings/credit lines EUR 4 Rolling Amortizing 3 3 1 Total borrowings / undrawn facilities 8,674 264 Deferred debt issue costs and bond discount (84) — Net borrowings / undrawn facilities 8,590 264 Cash and cash equivalents (813) 813 Derivative financial instruments used to hedge foreign currency and interest rate risk (131) — Net debt / available liquidity 7,646 1,077 The following table summarizes the Group’s movement in net debt: 2017 2016 $m $m Net (increase)/decrease in cash and cash equivalents per consolidated statement of cash flows (30) 211 Increase in net borrowings and derivative financial instruments 209 1,065 Increase in net debt 179 1,276 Net debt at January 1, 7,646 6,370 Net debt at December 31, 7,825 7,646 The increase in net borrowings and derivative financial instruments includes proceeds from borrowings of $3.7 billion (2016: $4.5 billion), repayments of borrowings of $4.4 billion (2016: $2.6 billion), a fair value loss on derivative financial instruments used to hedge foreign currency and interest rate risk of $0.4 billion (2016: gain of $0.1 billion) in addition to a corresponding foreign exchange loss on borrowings of $0.4 billion (2016: gain of $0.1 billion), with the net foreign exchange loss on borrowings impacting net debt by approximately $0.8 billion (2016: gain of $0.2 billion). The maturity profile of the Group’s borrowings is as follows: At December 31, 2017 2016 $m $m Within one year or on demand 2 8 Between one and two years 1 8 Between two and five years 1,154 3,512 Greater than five years 7,151 5,062 8,308 8,590 The table below analyzes the Group’s financial liabilities (including interest payable) into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contracted undiscounted cash flows. Derivative Trade and financial other Borrowings instruments payables At December 31, 2017 $m $m $m Within one year or on demand 456 2 1,988 Between one and two years 455 84 — Between two and five years 2,480 66 — Greater than five years 7,877 151 — Derivative Trade and financial other Borrowings instruments payables At December 31, 2016 $m $m $m Within one year or on demand 471 8 1,622 Between one and two years 471 — — Between two and five years 4,638 — — Greater than five years 5,628 — — The carrying amount and fair value of the Group’s borrowings are as follows: Carrying value Deferred debt Amount issue costs and drawn premium Total Fair value At December 31, 2017 $m $m $m $m Loan notes 8,368 (72) 8,296 8,796 Finance leases 8 — 8 8 Bank loans, overdrafts and revolving credit facilities 4 — 4 4 8,380 (72) 8,308 8,808 Carrying value Deferred debt Amount issue costs and drawn bond discount Total Fair value At December 31, 2016 $m $m $m $m Loan notes 8,001 (82) 7,919 8,240 Term loan 663 (2) 661 669 Finance leases 7 — 7 7 Bank loans, overdrafts and revolving credit facilities 3 — 3 3 8,674 (84) 8,590 8,919 Financing activity 2017 On January 30, 2017, the Group issued $1,000 million 6.000% Senior Notes due 2025. The proceeds, together with certain cash, were used to partially redeem, on the same day, $845 million First Priority Senior Secured Floating Rate Notes due 2019, to redeem in full on March 2, 2017, $415 million 6.250% Senior Notes due 2019 and to pay applicable redemption premiums and accrued interest. On March 8, 2017, the Group issued €750 million 2.750% Senior Secured Notes due 2024, $715 million 4.250% Senior Secured Notes due 2022 and $700 million 6.000% Senior Notes due 2025. On March 9, 2017, using the proceeds from the notes issued on March 8, 2017, the Group redeemed €750 million 4.250% First Priority Senior Secured Notes due 2022, redeemed in full the $265 million First Priority Senior Secured Floating Rate Notes due 2019 and repaid in full the $663 million Term Loan B Facility, together with applicable redemption premiums and accrued interest. On March 21, 2017, Ardagh Group S.A. replaced its wholly owned subsidiary, Ardagh Packaging Holdings Limited, as the parent guarantor under the then outstanding notes issued by Ardagh Holdings USA Inc. and Ardagh Packaging Finance plc. On April 10, 2017, using the proceeds of the notes issued on March 8, 2017, the Group redeemed in full $415 million 6.750% Senior Notes due 2021 and paid applicable redemption premiums and accrued interest. On June 12, 2017, the Group issued £400 million 4.750% Senior Notes due 2027. The proceeds, together with certain cash, were used to redeem, on June 12, 2017, the Group’s $500m Senior Secured Floating Rate Notes due 2021, and to pay applicable redemption premiums and accrued interest. On August 1, 2017, the Group redeemed in full the 4.250% First Priority Senior Secured Notes due 2022, together with applicable redemption premiums and accrued interest. On December 7, 2017, the Group closed a committed five year $850 million Global Asset Based Loan facility. This facility, secured by trade receivables and inventories, replaces the HSBC Securitization Program and the Bank of America Facility. It will provide funding for working capital and general corporate purposes. On December 31, 2017, the Group has $813 million available under this facility. 2016 On May 16, 2016 the Group issued the following notes: · $1,000 million aggregate principal amount of 4.625% Senior Secured Notes due 2023; · $500 million aggregate principal amount of Senior Secured Floating Rate Notes due 2021 at a coupon of LIBOR plus 3.250%; · €440 million aggregate principal amount of 4.125% Senior Secured Notes due 2023; · $1,650 million aggregate principal amount of 7.250% Senior Notes due 2024; and · €750 million aggregate principal amount of 6.750% Senior Notes due 2024. The net proceeds from the issuance and sale of these notes were used to finance the Beverage Can Acquisition and to repay the following notes: · €475 million aggregate principal amount of 9.250% Senior Notes due 2020; · $920 million aggregate principal amount of 9.125% Senior Notes due 2020; and · $15 million aggregate principal amount of $150 million 7.000% Senior Notes due 2020. These notes were repaid on May 16, 2016. The notes issued to finance the Beverage Can Acquisition were held in escrow from the issuance date to the acquisition completion date. Interest charged during this period has been classified as an exceptional finance expense (see Note 4). On September 16, 2016, the Group repaid in full the principal amount outstanding of its $841 million 8.625% Senior PIK Notes due 2019 and €295 million 8.375% Senior PIK Notes due 2019. Costs associated with the early redemption have been classified as exceptional in the consolidated income statement. On October 3, 2016 the Group agreed to extend the maturity of the Term Loan B Facility by two years to December 2021. On November 15, 2016, the Group repaid in full the principal amount outstanding of its $135 million 7.000% Senior Notes due 2020. Costs associated with the early redemption have been classified as exceptional in the consolidated income statement. Effective interest rates The effective interest rates of borrowings at the reporting date are as follows: 2017 2016 USD EUR GBP USD EUR GBP 2.750% Senior Secured Notes due 2024 — 2.92 % — — — — 4.625% Senior Secured Notes due 2023 5.16 % — — 5.18 % — — 4.125% Senior Secured Notes due 2023 — 4.63 % — — 4.66 % — 4.250% Senior Secured Notes due 2022 4.51 % — — — — — 4.250% First Priority Senior Secured Notes due 2022 — — — — 4.52 % — First Priority Senior Secured Floating Rate Notes due 2019 — — — 3.49 % — — Senior Secured Floating Rate Notes due 2022 — — — 4.26 % — — 4.750% Senior Notes due 2027 — — 4.99 % — — — 6.000% Senior Notes due 2025 6.14 % — — — — — 7.250% Senior Notes due 2024 7.72 % — — 7.74 % — — 6.750% Senior Notes due 2024 — 7.00 % — — 7.01 % — 6.000% Senior Notes due 2021 6.38 % — — 6.38 % — — 6.750% Senior Notes due 2021 — — — 7.45 % — — 6.250% Senior Notes due 2019 — — — 7.25 % — — USD Term Loan B Facility due 2021 — — — 4.16 % — — The carrying amounts of the Group’s net borrowings are denominated in the following currencies: At December 31, 2017 2016 $m $m Euro 2,319 2,458 U.S. dollar 5,452 6,130 British pound 537 2 8,308 8,590 The Group has the following undrawn borrowing facilities: At December 31, 2017 2016 $m $m Expiring within one year 1 1 Expiring beyond one year 813 263 814 264 Derivative financial instruments The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and Level 3 Inputs for the asset or liability that are not based on observable market data (unobservable inputs). There were no transfers between Level 1 and Level 2 during the year. Fair values are calculated as follows: (i) Senior secured and senior notes - The fair value of debt securities in issue is based on quoted market prices and represent Level 1 inputs. (ii) Loan notes - The fair values are based on quoted market prices; however, these quoted market prices represent Level 2 inputs because the markets in which the loan notes trade are not active. (iii) Bank loans, overdrafts and revolving credit facilities - The estimated value of fixed interest bearing deposits is based on discounted cash flows using prevailing money-market interest rates for debts with similar credit risk and remaining maturity. (iv) Finance leases - The carrying amount of finance leases is assumed to be a reasonable approximation of fair value. (v) CCIRS - The fair values of the CCIRS are valued using Level 2 valuation inputs. (vi) Commodity and foreign exchange derivatives - The fair value of these derivatives are based on quoted market prices and represent Level 2 inputs. Assets Liabilities Contractual Contractual or notional or notional Fair values amounts Fair values amounts $m $m $m $m Fair Value Derivatives Metal forward contracts 17 197 — — Cross currency interest rate swaps — — 301 3,107 Forward foreign exchange contracts 4 179 1 52 NYMEX gas swaps — — 1 20 Carbon futures 2 10 — — At December 31, 2017 23 386 303 3,179 Assets Liabilities Contractual Contractual or notional or notional Fair values amounts Fair values amounts $m $m $m $m Fair Value Derivatives Metal forward contracts 9 197 — — Cross currency interest rate swap 131 1,580 — — Forward foreign exchange contracts — — 8 206 NYMEX gas swaps 2 16 — — Carbon Futures 1 2 — — At December 31, 2016 143 1,795 8 206 Derivative instruments with a fair value of $7 million (2016: $131 million) are classified as non-current assets and $16 million (2016: $12 million) as current assets in the consolidated statement of financial position at December 31, 2017. Derivative instruments with a fair value of $301 million (2016: $nil) are classified as non-current liabilities and $2 million (2016: $8 million) as current liabilities in the consolidated statement of financial position at December 31, 2017. The majority of derivative assets and liabilities mature within one year with the exception of the cross currency interest rate swaps (“CCIRS”) which mature at dates between February 2019 and February 2023 and certain metal forward contracts which mature at dates between October 2019 and October 2020. With the exception of interest on the CCIRS, all cash payments in relation to derivative instruments are paid or received when they mature. Bi‑annual interest cash payments and receipts are made and received in relation to the CCIRS. The Group mitigates the counterparty risk for derivatives by contracting with major financial institutions which have high credit ratings. Cross currency interest rate swaps 2017 The Group hedges certain of its external borrowings and interest payable thereon using CCIRS, with a net liability at December 31, 2017 of $301 million (December 31, 2016: net asset of $131 million). In the year ended December 31, 2017 the Group executed a number of CCIRS to swap (i) the U.S. dollar principal and interest repayments on $1,250 million of its U.S. dollar-denominated borrowings into euro, and (ii) the euro principal and interest repayments on €332 million of its euro denominated borrowings into British pounds. In June 2017, as a result of the issuance of the £400 million 4.750% Senior Notes due 2027, the Group terminated $500 million of its existing U.S. dollar to British pound CCIRS, due for maturity in May 2022. The Group received net proceeds of $46 million in consideration and recognized an exceptional loss of $15 million on the termination (see Note 4). 2016 In June 2016 the Group entered into cross currency interest rate swaps totaling $1,300 million. These swaps were entered into in order to partially swap the US dollar principal and interest repayments on the Group’s $1,650 million 7.250% Senior Notes due 2024 equally into euro and British pounds. The Group also hedges a further $440 million of its external debt and interest thereon into euro using a CCIRS. An exceptional gain of $88 million was recognised in the consolidated income statement for the year relating to the gain on fair value of the CCIRS which were entered into during the second quarter and for which hedge accounting had not been applied until the third quarter. Further an exceptional loss of $11 million was incurred relating to cross currency interest rate swaps for which hedge accounting did not apply (see Note 4). In December 2015, the Group terminated its existing CCIRS due for maturity in June 2019, and replaced it with a new CCIRS with a maturity date of June 2019. The Group received proceeds of $90 million in consideration of the termination. Net investment hedge in foreign operations The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through borrowings denominated in the relevant foreign currencies. Hedges of net investments in foreign operations are accounted for whereby any gain or loss on the hedging instruments relating to the effective portion of the hedge is recognized in other comprehensive income. The gain or loss relating to an ineffective portion is recognized immediately in the consolidated income statement within finance income or expense respectively. Gains and losses accumulated in other comprehensive eincome are recycled to the consolidated income statement when the foreign operation is disposed of. The amount that has been recognised in the consolidated income statement due to ineffectiveness is $nil (2016: $nil; 2015: $nil). Metal forward contracts The Group hedges a substantial portion of its anticipated metal purchases. Excluding conversion and freight costs, the physical metal deliveries are priced based on the applicable indices agreed with the suppliers for the relevant month. Fair values have been based on quoted market prices and are valued using Level 2 valuation inputs. The fair value of these contracts when initiated is $nil; no premium is paid or received. Forward foreign exchange contracts The Group operates in a number of countries and, accordingly, hedges a portion of its currency transaction risk. The fair values are based on Level 2 valuation techniques and observable inputs including the contract prices. The fair value of these contracts when initiated is $nil; no premium is paid or received. NYMEX gas swaps The Group hedges a portion of its Glass Packaging North America anticipated energy purchases on the New York Mercantile Exchange (“NYMEX”). Fair values have been based on NYMEX‑quoted market prices and Level 2 valuation inputs have been applied. The fair value of these contracts when initiated is $nil; no premium is paid or received. Carbon futures The Group hedges a portion of its carbon purchases using European Union Allowance (“EUA”) futures contracts. The fair values are based on Level 2 valuation techniques and observable inputs including the contract prices. |
Employee benefit obligations
Employee benefit obligations | 12 Months Ended |
Dec. 31, 2017 | |
Employee benefit obligations | |
Employee benefit obligations | 19. Employee benefit obligations The Group operates defined benefit and defined contribution pension schemes in most of its countries of operation and the assets are held in separately administered funds. The principal funded defined benefit schemes, which are funded by contributions to separately administered funds, are in the U.S and the United Kingdom. Other defined benefit schemes are unfunded and the provision is recognized in the consolidated statement of financial position. The principal unfunded schemes are in Germany. The contribution rates to the funded plans are agreed with the Trustee boards, plan actuaries and the local pension regulators periodically. The contributions paid in 2017 were those recommended by the actuaries. In addition, the Group has other employee benefit obligations in certain territories. Total employee obligations recognized in the consolidated statement of financial position of $997 million (2016: $954 million) include other employee benefit obligations of $132 million (2016: $129 million). The employee obligations and assets of the defined benefit schemes included in the consolidated statement of financial position are analyzed below: U.S. Germany UK Netherlands Other Total 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 $m $m $m $m $m $m $m $m $m $m $m $m Obligations (1,313) (1,198) (405) (364) (1,000) (947) (19) (569) (25) (23) (2,762) (3,101) Assets 1,179 1,067 — — 706 660 — 541 12 8 1,897 2,276 Net obligations (134) (131) (405) (364) (294) (287) (19) (28) (13) (15) (865) (825) Defined benefit pension schemes The amounts recognized in the consolidated income statement are: Year ended December 31, 2017 2016 2015 $m $m $m Current service cost and administration costs: Cost of sales - current service cost (43) (40) (45) Cost of sales - past service credit 8 32 — SGA - current service cost (3) (6) (6) SGA - past service credit 2 11 — (36) (3) (51) Finance expense (Note 5) (24) (28) (26) (60) (31) (77) The amounts recognized in the consolidated statement of comprehensive income are: Year ended December 31, 2017 2016 2015 $m $m $m Re-measurement of defined benefit obligation: Actuarial (loss)/gain arising from changes in demographic assumptions (6) 26 9 Actuarial (loss)/gain arising from changes in financial assumptions (104) (280) 107 Actuarial gain/(loss) arising from changes in experience 2 (11) 32 (108) (265) 148 Re-measurement of plan assets: Actual return/(loss) less expected return on plan assets 158 122 (92) Actuarial gain/(loss) for the year on defined benefit pension schemes 50 (143) 56 Actuarial (loss)/gain on other long term and end of service employee benefits (1) 4 18 49 (139) 74 The actual return on plan assets resulted in a gain of $228 million in 2017 (2016: $206 million gain; 2015: $10 million loss). Movement in the defined benefit obligations and assets: At December 31, Obligations Assets 2017 2016 2017 2016 $m $m $m $m At January 1, (3,101) (2,846) 2,276 2,151 Interest income — — 71 82 Acquired — (393) — 301 Current service cost (46) (46) — — Past service credit 10 43 — — Interest cost (92) (105) — — Administration expenses paid from plan assets — — (2) (3) Re-measurements (108) (265) 158 122 Obligations/(assets) extinguished on reclassification 602 207 (602) (207) Employer contributions — — 51 48 Employer contributions—acquisition related — — — 8 Employee contributions (2) (6) 2 6 Benefits paid 163 131 (163) (131) Exchange (188) 179 106 (101) At December 31, (2,762) (3,101) 1,897 2,276 The defined benefit obligations above include $455 million (2016: $401 million) of unfunded obligations. Employer contributions above include $7 million contributed under schemes extinguished during the year (2016: $12 million). Interest income and interest cost in the table above does not include interest cost of $3 million (2016: $3 million; 2015: $2 million) relating to other employee benefit obligations. During the year ended December 31, 2017 a defined benefit pension scheme in the Netherlands was transferred to a multi-employer scheme. Prior to the date of transfer, a past service credit of $10 million was recognised such that on the date of transfer the defined benefit obligation and asset were both $602 million (December 31, 2016: $552 million and $541 million respectively). The Group has taken the exemption under IAS 19 (R) to account for multi-employer schemes as defined contribution schemes. As a result, the scheme is no longer accounted for as a defined benefit obligation scheme at December 31, 2017. During the year ended December 31, 2016 the Group recognized a past service credit of $23 million following the amendment of certain defined benefit pension schemes in Glass Packaging North America. This was classified as an exceptional gain (Note 4). The remaining past service credit of $20 million was recognized following the transfer of a Netherlands defined benefit pension scheme to a multi‑employer scheme as outlined hereafter, and following other defined benefit pension scheme amendments in Glass Packaging North America. During the year ended December 31, 2016 a defined benefit pension scheme in the Netherlands was transferred to a multi‑employer scheme. Prior to the date of transfer, a past service credit of $9 million was recognized such that on the date of transfer, the defined benefit obligation and asset were both $207 million (December 31, 2015: $189 million and $183 million respectively). The net obligations and assets acquired as part of the Beverage Can Acquisition exclude $37 million other employee benefit obligations mainly relating to a post‑retirement medical scheme in North America. The Group was required to make a once‑off contribution of $8 million in respect of the acquired defined benefit schemes. Plan assets comprise: At December 31, 2017 2017 2016 2016 $m % $m % Equities 1,177 62 1,215 53 Target return funds 297 16 290 13 Bonds 249 13 588 26 Cash/other 174 9 183 8 1,897 100 2,276 100 The pension assets do not include any of the Company’s ordinary shares, other securities or other Group assets. Investment strategy The choice of investments takes account of the expected maturity of the future benefit payments. The plans invest in diversified portfolios consisting of an array of asset classes that attempt to maximize returns while minimizing volatility. The asset classes include national and international equities, fixed income government and non‑government securities and real estate, as well as cash. Characteristics and associated risks Glass Packaging North America and Metal Packaging Americas each sponsor a defined benefit pension plan which is subject to Federal law (ERISA), reflecting regulations issued by the Internal Revenue Service (IRS) and the Department of Labor. The Glass Packaging North America plan covers both hourly and salaried employees. The plan benefits are determined using a formula which reflects an employee’s years of service and either their final average salary or a dollar per month benefit level. The plan is governed by a Fiduciary Benefits Committee (“the Committee”) which is appointed by the Company and contains only employees of Ardagh Group. The Committee is responsible for the investment of the plan’s assets, which are held in a trust for the benefit of employees, retirees and their beneficiaries, and which can only be used to pay plan benefits and expenses. The defined benefit pension plan is subject to IRS funding requirements with actuaries calculating the minimum and maximum allowable contributions each year. The defined benefit pension plan currently has no cash contribution requirement due to the existence of a credit balance following a contribution of approximately $200 million made in 2014 in connection with the VNA Acquisition. The Pension Benefit Guaranty Corporation (“PBGC”) protects the pension benefits of employees and retirees when a plan sponsor becomes insolvent and can no longer meet its obligation. All plan sponsors pay annual PBGC premiums that have two components: a fixed rate based on participant count and a variable rate which is determined based on the amount by which the plan is underfunded. The Metal Packaging Americas plan covers hourly employees only. Plan benefits are determined using a formula which reflects the employees’ years of service and is based on a final average pay formula. The UK pension plans are trust‑based UK funded final salary defined benefit schemes providing pensions and lump sum benefits to members and dependents. There are two pension plans in place relating to Metal Packaging Europe, one of which relates to the Beverage Can Business. There are two pension plans in place in Glass Packaging Europe. One of the pension plans in the Metal Packaging Europe division has been closed to future accrual from July 1, 2014. For this plan, pensions are calculated based on service to the point of closure, but with members’ benefits retaining a final salary link while employed by the Company. The other Metal Packaging Europe pension plan, relating to the Beverage Can Business, is closed to new entrants. For this plan, pensions are calculated based on service to retirement with members’ benefits based on final career earnings. The pension plans relating to the Glass Packaging Europe division have been closed to future accrual from March 31, 2013 and September 30, 2015 respectively. The UK pension plans are each governed by a board of trustees which is independent of the Company. The trustees are responsible for managing the operation, funding and investment strategy. The UK pension plans are subject to the UK regulatory framework, the requirements of the Pensions Regulator and are subject to a statutory funding objective. The Group operates a number of defined benefit pension schemes in Germany including three relating to the Beverage Can Business. The pension plans in Germany operate under the framework of German Company Pension Law (BetrAVG) and general regulations based on German Labor Law. The entitlements of the plan members depend on years of service and final salary. Furthermore, the plans provide lifelong pensions. No separate assets are held in trust, i.e. the plans are unfunded defined benefit plans. Assumptions and sensitivities The principal pension assumptions used in the preparation of the financial statements take account of the different economic circumstances in the countries of operations and the different characteristics of the respective plans, including the duration of the obligations. The ranges of the principal assumptions applied in estimating defined benefit obligations were: U.S. Germany UK 2017 2016 2017 2016 2017 2016 % % % % % % Rates of inflation 2.50 2.50 1.50 1.50 3.10 3.20 Rates of increase in salaries 2.00 - 3.00 2.00 - 3.00 2.50 2.50 2.60 2.20 Discount rates 3.80 4.45 1.68 - 2.24 1.57 - 2.06 2.70 2.80 Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience. These assumptions translate into the following average life expectancy in years for a pensioner retiring at age 65. The mortality assumptions for the countries with the most significant defined benefit plans are set out below: U.S. Germany UK 2017 2016 2017 2016 2017 2016 Years Years Years Years Years Years Life expectancy, current pensioners 22 22 21 21 21 21 Life expectancy, future pensioners 23 23 24 24 22 22 If the discount rate were to decrease by 50 basis points from management estimates, the carrying amount of the pension obligations would increase by an estimated $216 million (2016: $256 million). If the discount rate were to increase by 50 basis points, the carrying amount of the pension obligations would decrease by an estimated $230 million (2016: $255 million). If the inflation rate were to decrease by 50 basis points from management estimates, the carrying amount of the pension obligations would decrease by an estimated $96 million (2016: $98 million). If the inflation rate were to increase by 50 basis points, the carrying amount of the pension obligations would increase by an estimated $91 million (2016: $98 million). If the salary increase rate were to decrease by 50 basis points from management estimates, the carrying amount of the pension obligations would decrease by an estimated $103 million (2016: $98 million). If the salary increase rate were to increase by 50 basis points, the carrying amount of the pension obligations would increase by an estimated $97 million (2016: $97 million). The impact of increasing the life expectancy by one year would result in an increase in the Group’s liability of $55 million at December 31, 2017 (2016: $66 million), holding all other assumptions constant. The Group’s best estimate of contributions expected to be paid to defined benefit plans in 2018 is $36 million (2017: $39 million). The principal defined benefit schemes are described briefly below: - Metal Packaging Glass Packaging Europe Europe North Europe Europe North UK Germany America UK Germany America Nature of the schemes Funded Unfunded Funded Funded Unfunded Funded 2017 Active members 467 1,694 943 — 1,011 4,137 Deferred members 954 706 139 1,527 759 2,697 Pensioners including dependents 756 1,081 150 744 762 6,379 Weighted average duration (years) 21 17 17 23 18 13 2016 Active members 467 1,803 970 — 1,032 4,043 Deferred members 954 664 115 1,527 732 2,648 Pensioners including dependents 756 1,011 133 744 786 6,302 Weighted average duration (years) 20 18 20 23 19 12 The expected total benefit payments over the next five years are: Subsequent 2018 2019 2020 2021 2022 five years $m $m $m $m $m $m Benefits 116 114 118 121 125 672 The Group also has defined contribution plans; the contribution expense associated with these plans for 2017 was $35 million (2016: $34 million; 2015: $16 million). The Group’s best estimate of the contributions expected to be paid to these plans in 2018 is $43 million. Other employee benefits At December 31, 2017 2016 $m $m End of service employee benefits 25 24 Long term employee benefits 107 105 132 129 End of service employee benefits comprise principally amounts due to be paid to employees leaving the Group’s service in France and Italy. Long term employee benefit obligations comprise amounts due to be paid under post‑retirement medical schemes in Glass Packaging North America and Metal Packaging Beverage Americas, partial retirement contracts in Germany and other obligations to pay benefits primarily related to long service awards. |
Related party borrowings and re
Related party borrowings and receivables | 12 Months Ended |
Dec. 31, 2017 | |
Related party borrowings and receivables | |
Related party receivables and borrowings | 20. Related party borrowings and receivables During the year ended December 31, 2017, a related party loan of $716 million, payable to ARD Group Finance Holdings S.A. (a subsidiary of the Group’s intermediate parent company), was converted into 86,154 Class B common shares in accordance with the terms of the loan agreement (Note 16). Following the conversion, the related party borrowings at December 31, 2017 were $nil (December 31, 2016: $709 million). During the year ended December 31, 2016, a related party loan of $441 million, was repaid in full, owed by the Group’s immediate parent, ARD Finance S.A. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2017 | |
Provisions | |
Provisions | 21 . Provisions At December 31, 2017 2016 $m $m Current 70 73 Non-current 44 60 114 133 Other Total Restructuring provisions provisions $m $m $m At January 1, 2016 20 85 105 Acquisitions (Note 24) — 42 42 Provided 28 32 60 Released (12) (17) (29) Paid (11) (31) (42) Exchange (2) (1) (3) At December 31, 2016 23 110 133 Provided 12 26 38 Released (2) (31) (33) Paid (10) (21) (31) Exchange 2 5 7 At December 31, 2017 25 89 114 The restructuring provision relates to redundancy and other restructuring costs. Other provisions relate to probable environmental claims, customer quality claims, workers’ compensation provisions in Glass Packaging North America, and onerous leases. The provisions classified as current are expected to be paid in the next twelve months. The majority of the restructuring provision is expected to be paid in 2018. The remaining balance contains longer term provisions for which the timing of the related payments is subject to uncertainty. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other payables | |
Trade and other payables | 22. Trade and other payables At December 31, 2017 2016 $m $m Trade payables 1,469 1,112 Other payables and accruals 436 441 Amounts owed to parent company — 3 Other tax and social security payable 49 34 Payables and accruals for exceptional items 34 32 1,988 1,622 The fair values of trade and other payables approximate the amounts shown above. Other payables and accruals mainly comprise accruals for operating expenses, deferred income and value added tax payable. |
Cash generated from operating a
Cash generated from operating activities | 12 Months Ended |
Dec. 31, 2017 | |
Cash generated from operating activities | |
Cash generated from operating activities | 23. Cash generated from operating activities Year ended December 31, 2017 2016 2015 $m $m $m Profit/(loss) for the year 63 (74) (157) Income tax (credit)/charge (Note 6) (40) 55 70 Net finance expense (Note 5) 649 594 590 Depreciation and amortization (Notes 9, 10) 687 561 449 Exceptional operating items (Note 4) 149 145 89 Movement in working capital 99 131 100 Acquisition-related, IPO, start-up and other exceptional costs paid (74) (176) (60) Exceptional restructuring paid (10) (11) (22) Cash generated from operations 1,523 1,225 1,059 |
Business combinations and dispo
Business combinations and disposals | 12 Months Ended |
Dec. 31, 2017 | |
Business combinations and disposals | |
Business combinations and disposals | 24. Business combinations and disposals On April 22, 2016 the Group entered into an agreement with Ball Corporation and Rexam PLC to acquire Beverage Can. The acquisition was completed on June 30, 2016. The acquired business comprises ten beverage can manufacturing plants and two end plants in Europe, seven beverage can manufacturing plants and one end plant in the United States, two beverage can manufacturing plants in Brazil and certain innovation and support functions in Germany, the UK, Switzerland and the United States. The acquired business has annual revenue of approximately $3.0 billion. This was a strategically important acquisition which was highly complementary to the Group's existing metal and glass packaging businesses. The following table summarizes the consideration paid for the Beverage Can Business and the fair value of assets acquired and liabilities assumed. $m Cash and cash equivalents 11 Property, plant and equipment 702 Intangible assets 1,431 Inventories 294 Trade and other receivables 367 Trade and other payables (484) Net deferred tax liability (162) Employee benefit obligations (129) Provisions (42) Total identifiable net assets 1,988 Goodwill 1,004 Total consideration 2,992 The allocations above are based on the fair values at the acquisition date. The purchase price allocation was completed on June 30, 2017. Goodwill arising from the acquisition reflects the anticipated synergies from integrating the acquired business into the Group and the skills and the technical talent of the acquired workforce. Goodwill of $298 million which relates to the North American Beverage Can Business is expected to be deductible for tax purposes. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2017 | |
Dividends | |
Dividends | 25. Dividends Year ended December 31, 2017 2016 2015 $m $m $m Cash dividends on ordinary shares declared and paid: Interim dividend for 2017: $0.33 per share (2016: $nil per share) (67) — — Interim dividend for 2017: $0.14 per share (2016: $nil per share) (33) — — Interim dividend for 2017: $0.14 per share (2016: $1.50 per share) (32) (304) — Interim dividend for 2017: $0.14 per share (2016: $nil per share) (33) — — (165) (304) — · On March 1, 2017 the Board declared and paid a dividend of $67 million to its parent company. · On April 27, 2017 the Board declared a cash dividend of $0.14 per common share. The dividend of $33 million was paid on May 31, 2017 to shareholders of record on May 17, 2017. · On July 26, 2017 the Board declared a cash dividend of $0.14 per common share. The dividend of $32 million was paid on August 31, 2017 to the shareholders of record on August 17, 2017. · On October 25, 2017 the Board declared a cash dividend of $0.14 per common share. The dividend of $33 million was paid on November 30, 2017 to the shareholders of record on November 16, 2017. |
Related party information
Related party information | 12 Months Ended |
Dec. 31, 2017 | |
Related party information | |
Related party information | 26. Related party information (i) Interests of Mr. Paul Coulson As of February 21, 2018, the approval date of these financial statements, companies owned by Paul Coulson own approximately 25% of the issued share capital of ARD Holdings S.A., the ultimate parent company. Through its investment in the Yeoman group of companies, one of these companies has an interest in a further approximate 34% of the issued share capital of ARD Holdings S.A.. (ii) Yeoman Capital S.A. At December 31, 2017, Yeoman Capital S.A. owned approximately 34% of the ordinary shares of ARD Holdings S.A.. During 2017, the Group incurred costs of $nil (2016: $nil; 2015: $nil) for fees charged by the Yeoman group of companies. The amount outstanding at year end was $nil (2016: $nil; 2015: $nil). (iii) Common directorships Five of the ARD Holdings S.A. directors (Paul Coulson, Brendan Dowling, Wolfgang Baertz, Gerald Moloney and Herman Troskie) also serve as directors in the Yeoman group of companies. All of the existing directors of Ardagh Group S.A. with the exception of Edward White and Damien O’Brien, are members of the Board of Directors of ARD Holdings S.A.. (iv) Joint ventures At December 31, 2017, the Group’s investment in joint ventures is $10 million (2016: $6 million). Transactions and balances outstanding with joint ventures are not material for the year ended and as at December 31, 2017 (2016: not material, 2015: not material). (v) Key management compensation Key management are those persons who have the authority and responsibility for planning, directing and controlling the activities of the Group. Key management is comprised of the members who served on the Board and the Group’s executive leadership team during the reporting period. The composition of key management was re-defined during 2017. As a result, amounts previously reported for the years ended December 31, 2016 and 2015 have been re-presented in order to improve comparability. The amount outstanding at year end was $7 million (2016: $4 million, 2015: $4 million). Year ended December 31, 2017 2016 2015 $m $m $m Salaries and other short term employee benefits 12 12 10 Post-employment benefits 1 1 1 13 13 11 Transaction related and other compensation 7 29 — 20 42 11 (vi) Pension schemes The Group’s pension schemes are related parties. For details of all transactions during the year, please see Note 19. (vii) Related party balances With the exception of the balances outlined in (i) to (vi) above, there are no material balances outstanding with related parties at December 31, 2017. Please refer to Note 20 for details of related party loan transactions for the year ended of December 31, 2017. (viii) Subsidiaries The following table provides information relating to our principal operating subsidiaries, all of which are wholly owned, at December 31, 2017 and 2016. Company Country of incorporation Activity Ardagh Metal Beverage Manufacturing Austria GmbH Austria Metal Packaging Ardagh Metal Beverage Trading Austria GmbH Austria Metal Packaging Latas Indústria de Embalagens de Alumínio do Brasil Ltda Brazil Metal Packaging Ardagh Metal Packaging Czech Republic s.r.o. Czech Republic Metal Packaging Ardagh Glass Holmegaard A/S Denmark Glass Packaging Ardagh Aluminium Packaging France SAS France Metal Packaging Ardagh MP West France SAS France Metal Packaging Ardagh Metal Packaging France SAS France Metal Packaging Ardagh Metal Beverage Trading France SAS France Metal Packaging Ardagh Metal Beverage France SAS France Metal Packaging Ardagh Glass GmbH Germany Glass Packaging Heye International GmbH Germany Glass Engineering Ardagh Metal Packaging Germany GmbH Germany Metal Packaging Ardagh Germany MP GmbH Germany Metal Packaging Ardagh Metal Beverage Trading Germany GmbH Germany Metal Packaging Ardagh Metal Beverage Germany GmbH Germany Metal Packaging Ardagh Glass Sales Limited Ireland Glass Packaging Ardagh Packaging Holdings Limited Ireland Glass and Metal Packaging Ardagh Group Italy S.r.l. Italy Glass and Metal Packaging Ardagh Aluminium Packaging Netherlands B.V. Netherlands Metal Packaging Ardagh Glass Dongen B.V. Netherlands Glass Packaging Ardagh Glass Moerdijk B.V. Netherlands Glass Packaging Ardagh Metal Packaging Netherlands B.V. Netherlands Metal Packaging Ardagh Metal Beverage Trading Netherlands B.V. Netherlands Metal Packaging Ardagh Metal Beverage Netherlands B.V. Netherlands Metal Packaging Ardagh Glass S.A. Poland Glass Packaging Ardagh Metal Packaging Poland Sp. z o.o. Poland Metal Packaging Ardagh Metal Beverage Trading Poland Sp. z o.o. Poland Metal Packaging Ardagh Metal Beverage Poland Sp. z o.o. Poland Metal Packaging Ardagh Metal Beverage Trading Spain SL Spain Metal Packaging Ardagh Metal Beverage Spain SL Spain Metal Packaging Ardagh Metal Packaging Iberica S.A. Spain Metal Packaging Ardagh Glass Limmared AB Sweden Glass Packaging Ardagh Metal Beverage Europe GmbH Switzerland Metal Packaging Ardagh Glass Limited United Kingdom Glass Packaging Ardagh Metal Beverage Trading UK Limited United Kingdom Metal Packaging Ardagh Metal Beverage UK Limited United Kingdom Metal Packaging Ardagh Metal Packaging UK Limited United Kingdom Metal Packaging Ardagh Metal Packaging USA Inc. United States Metal Packaging Ardagh Glass Inc. United States Glass Packaging Ardagh Metal Beverage USA Inc. United States Metal Packaging |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Contingencies | |
Contingencies | 27. Contingencies Environmental issues The Group is regulated under various national and local environmental, occupational health and safety and other governmental laws and regulations relating to: · the operation of installations for manufacturing of metal packaging and surface treatment using solvents; · the generation, storage, handling, use and transportation of hazardous materials; · the emission of substances and physical agents into the environment; · the discharge of waste water and disposal of waste; · the remediation of contamination; and · the design, characteristics, and recycling of its products. The Group believes, based on current information that it is in substantial compliance with applicable environmental laws and regulations and permit requirements. It does not believe it will be required, under both existing or anticipated future environmental laws and regulations, to expend amounts, over and above the amount accrued, which will have a material effect on its business, financial condition or results of operations or cash flows. In addition, no material proceedings against the Group arising under environmental laws are pending. Legal matters In 2015, the German competition authority (the Federal Cartel Office) initiated an investigation of the practices in Germany of metal packaging manufacturers, including Ardagh. The investigation is ongoing, and there is at this stage no certainty as to the extent of any charge which may arise. Accordingly, no provision has been recognized. On April 21, 2017, a jury in the United States awarded $50 million in damages against the Ardagh Group's U.S. glass business, formerly Verallia North America (“VNA”), in respect of one of two asserted patents alleged to have been infringed by VNA. Ardagh disagrees with the decision of the jury, both as to liability and quantum of damages, and strongly believes that the case is without merit. Ardagh will vigorously pursue all options, including appeal. The case was filed before Ardagh acquired VNA and customary indemnifications are in place between Ardagh and the seller of VNA. Unaudited update subsequent to the original issuance of the financial statements on February 21, 2018 In relation to the aforementioned German competition authority (the Federal Cartel Office) investigation of the practices in Germany of metal packaging manufacturers, including Ardagh, the European Commission has very recently taken over this investigation and the German investigation is as a result at an end. The European Commission’s investigation is ongoing, and there is at this stage no certainty as to the extent of any charge which may arise. Accordingly, no provision has been recognized. In relation to the aforementioned jury award in the United States, on March 8, 2018, the trial judge confirmed the jury verdict. Ardagh notes the Court’s award of pre-judgement interest to the Plaintiffs, its refusal to enhance the damages award in favour of the Plaintiffs and its refusal to award legal costs to the Plaintiffs. Ardagh will vigorously appeal the verdict to the Federal Appeals Court. On March 23, 2018, the Company filed its appeal notice and posted a surety bond with the Court. Plaintiffs filed a notice of cross-appeal on April 4, 2018. With the exception of the above legal matters, the Group is involved in certain other legal proceedings arising in the normal course of its business. The Group believes that none of these proceedings, either individually or in aggregate, are expected to have a material adverse effect on its business, financial condition, results of operations or cash flows. |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2017 | |
Events after the reporting period | |
Events after the reporting period | 28. Events after the reporting period On February 8, 2018, the Board declared a dividend of $0.14 per common share, payable on March 13, 2018 to shareholders of record on February 27, 2018. |
Effect of change in presentatio
Effect of change in presentation currency | 12 Months Ended |
Dec. 31, 2017 | |
Effect of change in presentation currency | |
Effect of change in presentation currency | 29. Effect of change in presentation currency As set out in Note 2, the Group has elected to change its presentation currency to U.S. dollar from January 1, 2018. This change in presentation currency constitutes a change in accounting policy with retrospective application in accordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” and is affected in these consolidated financial statements by applying the procedures outlined below, in accordance with the reqirements set out in IAS 21 “The Effects of Changes in Foreign Exchange Rates”. · the consolidated statements of financial position have been translated at the foreign exchange rate at the balance sheet dates; · the consolidated income statements, consolidated statements of comprehensive income and consolidated statements of cash flows were translated at average exchange rates for the respective periods; · historic equity transactions were translated at the foreign exchange rate on the date of the transactions and were subsequently carried at historical value; · foreign exchange differences arising on translation to presentation currency are recognised in other comprehensive income; and · all foreign exchange rates used were extracted from the Group’s underlying financial records. The exchange rates used in translation were as follows: Year ended December 31, Closing rate Average rate The Group’s previously reported euro consolidated statements of financial position, consolidated income statements, consolidated statements of comprehensive income and consolidated statements of cash flows as at and for the years ended December 31, 2017, 2016 and 2015 are set out below to illustrate the effect of the change in accounting policy. ARDAGH GROUP S.A. CONSOLIDATED INCOME STATEMENT Year ended December 31, 2017 Year ended December 31, 2016 Year ended December 31, 2015 Before Before Before exceptional Exceptional exceptional Exceptional exceptional Exceptional items Items Total items Items Total items Items Total €m €m €m €m €m €m €m €m €m Revenue 7,644 — 7,644 6,345 — 6,345 5,199 — 5,199 Cost of sales (6,321) (85) (6,406) (5,221) (15) (5,236) (4,285) (37) (4,322) Gross profit/(loss) 1,323 (85) 1,238 1,124 (15) 1,109 914 (37) 877 Sales, general and administration expenses (359) (43) (402) (300) (116) (416) (274) (44) (318) Intangible amortization (235) — (235) (173) — (173) (109) — (109) Operating profit/(loss) 729 (128) 601 651 (131) 520 531 (81) 450 Finance expense (459) (123) (582) (450) (165) (615) (514) (13) (527) Finance income — — — — 78 78 — — — Profit/(loss) before tax 270 (251) 19 201 (218) (17) 17 (94) (77) Income tax (charge)/credit (87) 122 35 (93) 43 (50) (95) 32 (63) Profit/(loss) for the year 183 (129) 54 108 (175) (67) (78) (62) (140) Profit/(loss) attributable to: Owners of the parent 54 (67) (140) Non-controlling interests — — — Profit/(loss) for the year 54 (67) (140) Profit/(loss) per share: Basic profit/(loss) for the year attributable to equity holders € 0.24 € (0.33) € CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year ended December 31, 2017 2016 2015 € m € m € m Profit/(loss) for the year 54 (67) (140) Other comprehensive income/(expense) Items that may subsequently be reclassified to income statement Foreign currency translation adjustments: —Arising in the year (2) (52) (137) (2) (52) (137) Effective portion of changes in fair value of cash flow hedges: —New fair value adjustments into reserve (226) 50 44 —Movement out of reserve 230 (77) (43) —Movement in deferred tax 1 (4) — 5 (31) 1 Items that will not be reclassified to income statement —Re-measurements of employee benefit obligations 43 (121) 72 —Deferred tax movement on employee benefit obligations (6) 16 (27) 37 (105) 45 Total other comprehensive income/(expense) for the year 40 (188) (91) Total comprehensive income/(expense) for the year 94 (255) (231) Attributable to: Equity holders 94 (255) (231) Non-controlling interests — — — Total comprehensive income/(expense) for the year 94 (255) (231) CONSOLIDATED STATEMENT OF FINANCIAL POSITION At December 31, 2017 2016 2015 2014 € m € m € m €m Non-current assets Intangible assets 3,422 3,904 1,810 1,762 Property, plant and equipment 2,808 2,911 2,307 2,223 Derivative financial instruments 6 124 — 40 Deferred tax assets 184 259 178 184 Other non-current assets 21 20 14 10 6,441 7,218 4,309 4,219 Current assets Inventories 1,128 1,125 825 770 Trade and other receivables 1,062 1,164 651 692 Related party receivables — — 404 404 Derivative financial instruments 13 11 — 2 Cash and cash equivalents 654 772 553 414 2,857 3,072 2,433 2,282 TOTAL ASSETS 9,298 10,290 6,742 6,501 Equity attributable to owners of the parent Issued capital 22 — — — Share premium 1,090 136 400 400 Capital contribution 431 431 — — Other reserves (321) (324) (241) (105) Retained earnings (2,370) (2,313) (2,141) (2,046) (1,148) (2,070) (1,982) (1,751) Non-controlling interests 1 2 2 2 TOTAL EQUITY (1,147) (2,068) (1,980) (1,749) Non-current liabilities Borrowings 6,926 8,142 6,397 6,034 Employee benefit obligations 831 905 720 723 Derivative financial instruments 251 — — — Deferred tax liabilities 486 694 461 420 Related party borrowings — 673 — — Provisions 37 57 48 33 8,531 10,471 7,626 7,210 Current liabilities Borrowings 2 8 7 4 Interest payable 59 81 79 83 Derivative financial instruments 2 8 7 7 Trade and other payables 1,658 1,539 879 804 Income tax payable 135 182 76 92 Provisions 58 69 48 50 1,914 1,887 1,096 1,040 TOTAL LIABILITIES 10,445 12,358 8,722 8,250 TOTAL EQUITY and LIABILITIES 9,298 10,290 6,742 6,501 CONSOLIDATED STATEMENT OF CASH FLOWS Year ended December 31, 2017 2016 2015 € m € m € m Cash flows from operating activities Cash generated from operations 1,330 1,109 950 Interest paid - excluding cumulative PIK interest paid (406) (372) (323) Cumulative PIK interest paid — (184) — Income tax paid (90) (84) (59) Net cash from operating activities 834 469 568 Cash flows from investing activities Purchase of business net of cash acquired — (2,685) — Purchase of property, plant and equipment (422) (310) (304) Purchase of intangible assets (19) (12) (8) Proceeds from disposal of property, plant and equipment 5 4 8 Net cash used in investing activities (436) (3,003) (304) Cash flows from financing activities Proceeds from borrowings 3,497 3,950 — Repayment of borrowings (4,061) (2,322) (198) Proceeds from borrowings with related party — 673 — Proceeds from share issuance 306 6 — Contribution from parent — 431 — Repayment of borrowings issued to related party — 404 — Dividends paid (148) (270) — Early redemption premium paid (85) (108) (8) Deferred debt issue costs paid (35) (60) (1) Proceeds from the termination of derivative financial instruments 42 — 81 Net cash (outflow)/inflow from financing activities (484) 2,704 (126) Net (decrease)/increase in cash and cash equivalents (86) 170 138 Cash and cash equivalents at the beginning of the year 772 553 414 Exchange (losses)/gains on cash and cash equivalents (32) 49 1 Cash and cash equivalents at the end of the year 654 772 553 |
Company financial information
Company financial information | 12 Months Ended |
Dec. 31, 2017 | |
Company financial information | |
Company financial information | 30. Company financial information This note has been included in these financial statements in accordance with the requirements of Regulation S‑X rule 12.04 Condensed financial information of registrant . The financial information provided below relates to the individual company financial statements for Ardagh Group S.A. as presented in accordance with IFRS as issued by the IASB. Certain information and footnote disclosures normally included in financial statements prepared in accordance with International Financial Reporting Standards have been condensed or omitted. The footnote disclosures contain supplemental information only and, as such, these statements should be read in conjunction with the notes to the accompanying consolidated financial statements. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements, except that investments in subsidiaries are included at cost less any provision for impairment in value. The functional currency of the Company is euro. i) Statement of financial position At December 31, 2017 2016 €m €m Non-current assets Investments in subsidiary undertakings 1,809 1,510 1,809 1,510 Current assets Amounts receivable from subsidiary undertakings 10 — Cash and cash equivalents 1 — Other receivables — 2 11 2 Total assets 1,820 1,512 Equity attributable to owners of the parent Issued capital 22 — Share premium 1,090 136 Legal reserve 2 — Capital contribution 431 431 Retained earnings 267 270 Total equity 1,812 837 Non-current liabilities Amounts payable to related parties — 673 — 673 Current liabilities Amounts payable to subsidiary undertakings 4 — Other payables 4 2 8 2 Total liabilities 8 675 Total equity and liabilities 1,820 1,512 ii) Statement of comprehensive income Year ended December 31, 2017 2016 2015 ` €m €m €m Dividend income 150 267 — Other external charges (1) — — Finance expense (1) (64) (84) Finance income — 112 85 Profit before exceptional items 148 315 1 Exceptional finance costs — (47) — Profit before tax 148 268 1 Income tax — — — Profit and total comprehensive income for the year 148 268 1 iii) Statement of cash flows Year ended December 31, 2017 2016 2015 €m €m €m Cash flows from operating activities Cash generated from operations (1) — — Increase in receivables (10) — — Cumulative PIK interest paid — (184) — Net cash used in operating activities (11) (184) — Cash flows from investing activities Repayment of loans from subsidiary undertakings — 1,112 — Contribution to subsidiary undertaking (299) (1,110) — Dividends received 150 267 — Net cash received (used in)/from investing activities (149) 269 — Cash flows from financing activities Repayment of borrowings — (880) — Net proceeds from borrowings with related parties — 671 — Contribution from parent — 431 — Proceeds from share issuance 309 6 — Dividends paid (148) (270) — Early redemption premium costs — (45) — Net cash inflow/(outflow) from financing activities 161 (87) — Net increase/(decrease) in cash and cash equivalents 1 (2) — Cash and cash equivalents at the beginning of the year — 2 2 Cash and cash equivalents at the end of the year 1 — 2 iv) Maturity analysis of the Company’s borrowings At December 31, 2017, the Company had € nil borrowings (2016: € 673 million). Borrowings of € 673 million at December 31, 2016 had a maturity of greater than five years. v) Distributions paid and received During the year ended December 31, 2017 the Company received a dividend of € 150 million (2016: € 267 million, 2015: € nil) from a subsidiary company. The Company also paid a dividend to its equity holders of € 148 million (2016: € 270 million, 2015: € nil). vi) Commitments and contingencies The Company has guaranteed certain liabilities of a number of its subsidiaries for year ended December 31, 2017. With exception of the above guarantee the Company had no commitments and contingencies at December 31, 2017 (2016: € nil). vii) Additional information The following reconciliations are provided as additional information to satisfy the Schedule I SEC Requirements for parent‑only financial information. Year ended December 31, 2017 2016 2015 €m €m €m IFRS profit/(loss) reconciliation: Parent only—IFRS profit for the year 148 268 1 Additional loss if subsidiaries had been accounted for using the equity method of accounting as opposed to cost (94) (335) (141) Consolidated IFRS profit/(loss) for the year 54 (67) (140) At December 31, 2017 2016 2015 €m €m €m IFRS equity reconciliation: Parent only—IFRS equity 1,812 837 402 Additional loss if subsidiaries had been accounted for using the equity method of accounting as opposed to cost (2,960) (2,907) (2,384) Consolidated—IFRS equity (1,148) (2,070) (1,982) |
Summary of significant accoun38
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of significant accounting policies | |
Basis of preparation | Basis of preparation The consolidated financial statements of the Group have been prepared in accordance with, and are in compliance with, International Financial Reporting Standards (“IFRS”) and related interpretations as adopted by the International Accounting Standards Board (“IASB”). IFRS is comprised of standards and interpretations approved by the IASB and IFRS and interpretations approved by the predecessor International Accounting Standards Committee that have been subsequently approved by the IASB and remain in effect. References to IFRS hereafter should be construed as references to IFRS as adopted by the IASB. The consolidated financial statements, are presented in U.S. dollar, rounded to the nearest million and have been prepared under the historical cost convention except for the following: · derivative financial instruments are stated at fair value; and · employee benefit obligations are measured at the present value of the future estimated cash flows related to benefits earned and pension assets valued at fair value. The preparation of consolidated financial information in conformity with IFRS requires the use of critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and income and expenses. It also requires management to exercise judgment in the process of applying Group accounting policies. These estimates, assumptions and judgments are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances and are subject to continual re‑evaluation. However, actual outcomes may differ from these estimates. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are discussed in the critical accounting estimates, assumptions and judgments. The consolidated financial statements for the Group were authorized for issue by the Board of Directors of Ardagh Group S.A. (the “Board”) on April 25, 2018. |
Change in presentation currency | Change in presentation currency With effect from January 1, 2018, the Group changed the currency in which it presents its financial statements from euro to U.S. dollar. This is principally as a result of the Board of Directors’ assessment that this change will help provide a clearer understanding of the Group’s financial performance and improve comparability of our performance following the Group’s IPO on the NYSE. The change in accounting policy impacts all financial statement line items whereby amounts previously reported in euro have been re-presented in U.S. dollar. To illustrate the effect of the re-presentation the previously reported euro consolidated statements of financial position as at December 31, 2017, 2016, 2015 and 2014, consolidated income statements, consolidated statements of comprehensive income and consolidated statements of cash flows for the years ended December 31, 2017, 2016 and 2015 have been set out in Note 29. |
Recent accounting pronouncements | Recent accounting pronouncements The impact of new standards, amendments to existing standards and interpretations issued and effective for annual periods beginning on or after January 1, 2017 has been assessed by the Board. Amendments to IAS 7, “Statement of cash flows”, effective from January 1, 2017 do not have a material effect on the consolidated financial statements. Other new standards or amendments to existing standards effective January 1, 2017 are not currently relevant for the Group. The Directors’ assessment of the impact of new standards, as listed below, which are not yet effective and which have not been early adopted by the Group, on the consolidated financial statements and disclosures is on-going, unless otherwise stated. IFRS 15, “Revenue from contracts with customers” replaces IAS 18, “Revenue” and IAS 11, “Construction contracts” and related interpretations. The standard is effective for annual periods beginning on or after January 1, 2018 and earlier application is permitted. IFRS 15 deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognized when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. During 2017 the Group completed its assessment of the potential impact of the new standard, including performing a review of revenue streams and customer contracts in order to evaluate the effects that this standard may have on the consolidated income statement and consolidated statement of financial position. Under current standards the Group recognizes revenue primarily on dispatch of goods. Upon adoption of IFRS 15, where the Group manufactures products for customers that have no alternative use and for which the group has an enforceable right to payment for production completed to date, the standard will require the Group to recognize revenue earlier than current standards such that, for certain contracts, a portion of revenue will be recognized prior to dispatch of goods. Based on the analysis performed to date, the Group does not expect that the adoption of the new standard will have a material impact on the amount of revenue recognized, when compared to the previous accounting guidance. The Group will recognize a contract asset as opposed to inventory as of the date of adoption of the new standard representing revenue that is accelerated as of that date under the new guidance. The Group expects that the adoption of the standard will not have any other material impact on the consolidated statement of financial position. The new guidance will have no impact on the consolidated statement of cash flows. The Group has determined that it shall report under the new standard on a modified retrospective basis upon adoption in the first quarter of 2018 which results in the Group retaining prior period figures as reported under the previous standards and recognising the cumulative effect of applying IFRS 15 as an adjustment to the opening balance of retained earnings as at the date of initial adoption. IFRS 9, “Financial instruments”, replaces IAS 39 “Financial instruments: Recognition and measurement” (“IAS 39”). IFRS 9 has been completed in a number of phases and includes requirements on the classification and measurement of financial instruments, impairment of financial instruments and hedge accounting. It also includes an expected credit loss model that replaces the incurred impairment loss model currently used as well as hedge accounting amendments. This standard becomes effective for annual periods commencing on or after January 1, 2018 and the Group will adopt the new standard from the effective date. The Group does not expect there to be a significant impact on the consolidated income statement, the consolidated statement of comprehensive income and the consolidated statement of financial position in respect of the classification of financial assets and liabilities, the adoption of the new hedge accounting model and the introduction of an expected credit loss model. IFRS 16, “Leases”, sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective is to ensure that lessees and lessors provide relevant information in a manner that appropriately represents those transactions. This information provides a basis for users of financial statements to assess the effect that leases have on the financial position, financial performance and cash flows of the entity. IFRS 16 replaces IAS 17, “Leases”, and later interpretations and will result in most operating leases being recorded on the consolidated statement of financial position. IFRS 16 is effective for annual periods beginning on or after January 1, 2019, with early adoption permitted. The Group is continuing to assess the effects that the adoption of IFRS 16 will have on the Group’s consolidated financial statements. The IFRS Interpretations Committee issued IFRIC 23 “Uncertainty over income tax treatments”, which clarifies how the recognition and measurement requirements of IAS 12 “Income taxes”, are applied where there is uncertainty over income tax treatments. IFRIC 23 is effective for annual periods beginning on or after January 1, 2019. The Group’s assessment of the impact of IFRIC 23 is on-going and it is not expected that the application of this interpretation will have a material impact on the consolidated financial statements of the Group. |
Basis of consolidation | Basis of consolidation (i) Subsidiaries Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are de‑consolidated from the date on which control ceases. Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is the consideration given in exchange for control of the identifiable assets, liabilities and contingent liabilities of the acquired legal entities. Directly attributable transaction costs are expensed and included as exceptional items within sales, general and administration expenses. The acquired net assets are initially measured at fair value. The excess of the cost of acquisition over the fair value of the identifiable net assets acquired is recorded as goodwill. Any goodwill and fair value adjustments are recorded as assets and liabilities of the acquired legal entity in the currency of the primary economic environment in which the legal entity operates (the “functional currency”). If the cost of acquisition is less than the fair value of the Group’s share of the net assets of the legal entity acquired, the difference is recognized directly in the consolidated income statement. The Group considers obligations of the acquiree in a business combination that arise as a result of the change in control, to be cash flows arising from obtaining control of the controlled entity, and classifies these obligations as investing activities in the consolidated statement of cash flows. (ii) Non-controlling interests Non-controlling interests represent the portion of the equity of a subsidiary which is not attributable to the Group. Non-controlling interests are presented separately in the consolidated financial statements. Changes in ownership of a subsidiary which do not result in a change in control are treated as equity transactions. (iii) Transactions eliminated on consolidation Transactions, balances and unrealized gains or losses on transactions between Group companies are eliminated. Subsidiaries’ accounting policies have been changed where necessary to ensure consistency with the policies adopted by the Group. |
Foreign currency | Foreign currency (i) Functional and presentation currency The functional currency of the Company is euro. The consolidated financial statements are presented in U.S. dollar which is the Group’s presentation currency as set out above. (ii) Foreign currency transactions Items included in the financial statements of each of the Group’s entities are measured using the functional currency of that entity. Transactions in foreign currencies are translated into the functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognized in the consolidated income statement, except: (i) differences on foreign currency borrowings that provide an effective hedge against a net investment in a foreign entity (“net investment hedges”), which are taken to other comprehensive income until the disposal of the net investment, at which time they are recognized in the consolidated income statement; and (ii) differences on certain derivative financial instruments discussed under “Derivative financial instruments” below. Net investment hedges are accounted for in a similar manner to cash flow hedges. The gain or loss relating to the ineffective portion of a net investment hedge is recognized immediately in the consolidated income statement within finance income or expense. (iii) Financial statements of foreign operations The assets and liabilities of foreign operations are translated into euro at foreign exchange rates ruling at the reporting date. The revenues and expenses of foreign operations are translated to euro at average exchange rates for the year. Foreign exchange differences arising on retranslation and settlement of such transactions are recognized in other comprehensive income. Gains or losses accumulated in other comprehensive income are recycled to the consolidated income statement when the foreign operation is disposed of. Non‑monetary items measured at fair value in foreign currency are translated using the exchange rates as at the date when the fair value is determined. |
Business combinations and goodwill | Business combinations and goodwill All business combinations are accounted for by applying the acquisition method of accounting. This involves measuring the cost of the business combination and allocating, at the acquisition date, the cost of the business combination to the assets acquired and liabilities assumed. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non‑controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non‑controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition‑related costs are expensed as incurred and included in sales, general and administration expenses. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. Any contingent consideration is recognized at fair value at the acquisition date. Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to those groups of cash‑generating units (“CGUs”) that are expected to benefit from the business combination in which the goodwill arose for the purpose of assessing impairment. Goodwill is tested annually for impairment. Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash‑generating unit retained. |
Intangible assets | Intangible assets Intangible assets are initially recognized at cost. Intangible assets acquired as part of a business combination are capitalized separately from goodwill if the intangible asset is separable or arises from contractual or other legal rights. They are initially recognized at cost which, for intangible assets arising in a business combination, is their fair value at the date of acquisition. Subsequent to initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The carrying values of intangible assets with finite useful lives are reviewed for indicators of impairment at each reporting date and are subject to impairment testing when events or changes in circumstances indicate that the carrying values may not be recoverable. The amortization of intangible assets is calculated to write off the book value of finite lived intangible assets over their useful lives on a straight‑line basis on the assumption of zero residual value as follows: Computer software 2 - 7 years Customer relationships 5 - 15 years Technology 8 - 15 years (i) Computer software Computer software development costs are recognized as assets. Costs associated with maintaining computer software programs are recognized as an expense as incurred. (ii) Customer relationships Customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Customer relationships have a finite useful economic life and are carried at cost less accumulated amortization. (iii) Technology Technology based intangibles acquired in a business combination are recognized at fair value at the acquisition date and reflect the Group’s ability to add value through accumulated technological expertise surrounding product and process development. (iv) Research and development costs Research costs are expensed as incurred. Development costs relating to new products are capitalized if the new product is technically and commercially feasible. All other development costs are expensed as incurred. |
Property, plant and equipment | Property, plant and equipment (i) Owned assets Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, except for land which is shown at cost less impairment. Spare parts which form an integral part of plant and machinery and which have an estimated useful economic life greater than one year are capitalized. Spare parts which do not form an integral part of plant and machinery and which have an estimated useful economic life less than one year are included as consumables within inventory and expensed when utilized. Where components of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. (ii) Leased assets The determination of whether an arrangement is, or contains a lease, is based on the substance of the arrangement and requires an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets, and the arrangement conveys a right to use the asset. Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the consolidated income statement on a straight‑line basis over the period of the lease. (iii) Subsequent costs The Group recognizes in the carrying amount of an item of property, plant and equipment, the cost of replacing the component of such an item when that cost is incurred, if it is probable that the future economic benefits embodied with the item will flow to the Group and the cost of the item can be measured reliably. When a component is replaced the old component is de‑recognized in the period. All other costs are recognized in the consolidated income statement as an expense as incurred. When a major overhaul is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria above are met. (iv) Depreciation Depreciation is charged to the consolidated income statement on a straight‑line basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated. The estimated useful lives are as follows: Buildings 30 - 40 years Plant and machinery 3 - 40 years Molds 2 - 3 years Office equipment and vehicles 3 - 10 years Assets’ useful lives and residual values are adjusted if appropriate, at each balance sheet date. |
Impairment of non-financial assets | Impairment of non‑financial assets Assets that have an indefinite useful economic life are not subject to amortization and are tested annually for impairment or whenever indicators suggest that impairment may have occurred. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. For the purposes of assessing impairment, assets excluding goodwill and long lived intangible assets, are grouped at the lowest levels at which cash flows are separately identifiable. Goodwill and long lived intangible assets are allocated to groups of CGUs. The groupings represent the lowest level at which the related assets are monitored for internal management purposes. Non‑financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date. The recoverable amount of other assets is the greater of their value in use and fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value, using a pre‑tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the CGU to which the asset belongs. |
Inventories | Inventories Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the first‑in, first‑out basis and includes expenditure incurred in acquiring the inventories and bringing them to their current location and condition. In the case of finished goods and work‑in‑progress, cost includes direct materials, direct labor and attributable overheads based on normal operating capacity. Net realizable value is the estimated proceeds of sale less all further costs to completion, and less all costs to be incurred in marketing, selling and distribution. Spare parts which are deemed to be of a consumable nature, are included within inventories and expensed when utilized. |
Non-derivative financial instruments | Non‑derivative financial instruments Non‑derivative financial instruments comprise trade and other receivables, cash and cash equivalents, restricted cash, borrowings and trade and other payables. Non‑derivative financial instruments are recognized initially at fair value plus any directly attributable transaction costs, except as described below. Subsequent to initial recognition, non‑derivative financial instruments are measured as described below. (i) Trade and other receivables Trade and other receivables are recognized initially at fair value and are thereafter measured at amortized cost using the effective interest rate method less any provision for impairment. A provision for impairment of trade receivables is recognized when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. (ii) Securitized assets The Group previously entered into a series of securitization transactions involving certain of its trade receivables. The securitized assets are recognized on the consolidated statement of financial position, until all of the rights to the cash flows from those assets have expired or have been fully transferred outside the Group, or until substantially all of the related risks, rewards and control of the related assets have been transferred to a third party. On December 7, 2017 the Group closed its securitization facility. The Group entered into a Global Asset Based Loan transaction (“ABL”) involving certain of its trade receivables and inventory. The lenders under the ABL have security over those receivables, inventory and the bank accounts where the associated cash flows are received. The risks, rewards and control of these assets are still retained by the Group and are, therefore, recognized on the statement of financial position. (iii) Cash and cash equivalents Cash and cash equivalents include cash in hand and call deposits held with banks. Cash and cash equivalents are carried at amortized cost. Short term bank deposits of greater than three months’ maturity which do not meet the definition of cash and cash equivalents are classified as financial assets within current assets and stated at amortized cost. (iv) Restricted cash Restricted cash comprises cash held by the Group but which is ring‑fenced or used as security for specific financing arrangements, and to which the Group does not have unfettered access. Restricted cash is measured at amortized cost. (v) Borrowings (including related party debt) Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the Group’s consolidated income statement over the period of the borrowings using the effective interest rate method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. (vi) Trade and other payables Trade and other payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method. |
Derivative financial instruments | Derivative financial instruments Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re‑measured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The fair values of various derivative instruments used for hedging purposes are disclosed in Note 18. The full fair value of a hedging derivative is classified as a non‑current asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability. (i) Cash flow hedges The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in other comprehensive income. Amounts accumulated in other comprehensive income are recycled to the consolidated income statement in the periods when the hedged item will affect profit or loss. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated income statement. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing at that time remains in equity and is recognized in the consolidated income statement when the forecast cash flow arises. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the consolidated income statement. (ii) Net investment hedges Derivative financial instruments are classified as net investment hedges when they hedge changes in the Group’s net investments in its subsidiaries due to exposure to foreign currency. Net investment hedges are accounted for in a similar manner to cash flow hedges. (iii) Fair value hedges Derivative financial instruments are classified as fair value hedges when they hedge the Group’s exposure to changes in the fair value of a recognized asset or liability. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the Group’s consolidated income statement, together with any changes in the fair value of the hedged item that is attributable to the hedged risk. The gain or loss relating to the effective portion of derivatives with fair value hedge accounting is recognized in the consolidated income statement within “finance income/(expense)”. The gain or loss relating to the ineffective portion is also recognized in the consolidated income statement within “finance income/(expense)”. If a hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest rate method is used is amortized to profit or loss over the period to maturity. |
Fair value measurement | Fair value measurement The Group measures financial instruments such as derivatives and pension assets at fair value at each balance sheet date. Fair value related disclosures for financial instruments, related party convertible borrowings and pension assets that are measured at fair value or where fair values are disclosed, are summarized in the following notes: · Disclosures for valuation methods, significant estimates and assumptions (Notes 18 and 19) · Contingent consideration · Quantitative disclosures of fair value measurement hierarchy (Note 18) · Financial instruments (including those carried at amortized cost) (Note 18) Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: · in the principal market for the asset or liability; or · in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non‑financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. |
Employee benefits | Employee benefits (i) Defined benefit pension plans Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the consolidated statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. Past service costs are recognized immediately in the consolidated income statement. (ii) Multi‑employer pension plans Multi‑employer craft or industry based pension schemes (“multi‑employer schemes”) have arrangements similar to those of defined benefit schemes. In each case it is not possible to identify the Group’s share of the underlying assets and liabilities of the multi‑employer schemes and therefore in accordance with IAS 19(R), the Group has taken the exemption for multi‑employer pension schemes to account for them as defined contribution schemes recognizing the contributions payable in each period in the consolidated income statement. (iii) Other end of service employee benefits In a number of countries, the Group pays lump sums to employees leaving service. These arrangements are accounted in the same manner as defined benefit pension plans. (iv) Other long term employee benefits The Group’s obligation in respect of other long term employee benefits plans represents the amount of future benefit that employees have earned in return for service in the current and prior periods for post‑retirement medical schemes, partial retirement contracts and long service awards. These are included in the category of employee benefit obligations on the consolidated statement of financial position. The obligation is computed on the basis of the projected unit credit method and is discounted to present value using a discount rate equating to the market yield at the reporting date on high quality corporate bonds of a currency and term consistent with the currency and estimated term of the obligations. Actuarial gains and losses are recognized in full in the Group’s consolidated statement of comprehensive income in the period in which they arise. (v) Defined contribution plans A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The contributions are recognized as employee benefit expense when they are due. |
Provisions | Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre‑tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. |
Revenue recognition | Revenue recognition Revenue from the sale of goods is recognized in the consolidated income statement when the significant risks and rewards of ownership have been transferred to the buyer, primarily on dispatch of the goods. Allowances for customer rebates are provided for in the same period as the related revenues are recorded. Revenue is presented net of such rebates as well as cash discounts and value added tax. |
Exceptional items | Exceptional items The Group’s consolidated income statement, cash flow and segmental analysis separately identify results before specific items. Specific items are those that in management’s judgment need to be disclosed by virtue of their size, nature or incidence to provide additional information. Such items include, where significant, restructuring, redundancy and other costs relating to permanent capacity realignment or footprint reorganization, directly attributable acquisition costs and acquisition integration costs, profit or loss on disposal or termination of operations, start‑up costs incurred in relation and associated with plant builds, significant new line investments or furnaces, major litigation costs and settlements and impairment of non‑current assets. In this regard the determination of “significant” as included in our definition uses qualitative and quantitative factors. Judgment is used by the Group in assessing the particular items, which by virtue of their scale and nature, are disclosed in the Group’s consolidated income statement, and related notes as exceptional items. Management considers columnar presentation to be appropriate in the consolidated income statement as it provides useful additional information and is consistent with the way that financial performance is measured by management and presented to the Board. Exceptional restructuring costs are classified as restructuring provisions and all other exceptional costs when outstanding at the balance sheet date are classified as exceptional items payable. |
Finance income and expense | Finance income and expense Finance income comprises interest income on funds invested, gains on disposal of financial assets, ineffective portions of derivative instruments designated as hedging instruments and gains on derivative instruments that are not designated as hedging instruments and are recognized in profit or loss. Finance expense comprises interest expense on borrowings (including amortization of deferred debt issuance costs), finance lease expenses, certain net foreign currency translation related to financing, net interest cost on net pension plan liabilities, losses on extinguishment of borrowings, ineffective portions of derivative instruments designated as hedging instruments, losses on derivative instruments that are not designated as hedging instruments and are recognized in profit or loss, and other finance expense. The Group capitalizes borrowing costs directly attributable to the acquisition, construction or production of manufacturing plants that require a substantial period of time to build that would have been avoided if the expenditure on the qualifying asset had not been made. Costs related to the issuance of new debt are deferred and amortized within finance expense over the expected terms of the related debt agreements by using the effective interest rate method. |
Income Tax | Income tax Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognized in the consolidated income statement except to the extent that it relates to items recognized in other comprehensive income. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years. Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. |
Segment reporting | Segment reporting The Board has been identified as the Chief Operating Decision Maker (“CODM”) for the Group. Operating segments are identified on the basis of the internal reporting provided to the Board in order to allocate resources to the segment and assess its performance. |
Critical accounting estimates, assumptions and judgments | Critical accounting estimates, assumptions and judgments Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (i) (ii) Estimated impairment of goodwill and other long lived assets In accordance with IAS 36 “Impairment of assets” (“IAS 36”), the Group tests whether goodwill and other long lived assets have suffered any impairment in accordance with the accounting policies stated. The determination of recoverable amounts requires the use of estimates as outlined in Note 9. The Group’s judgments relating to the impairment of goodwill and other long lived assets are included in Notes 9 and 10. (iii) Establishing lives for the purposes of depreciation and amortization of property, plant and equipment and intangibles Long lived assets, consisting primarily of property, plant and equipment, customer intangibles and technology intangibles, comprise a significant portion of the Group’s total assets. The annual depreciation and amortization charges depend primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of fair values and residual values. The Board regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of technological change, prospective economic utilization and physical condition of the assets concerned. Changes in asset lives can have a significant impact on the depreciation and amortization charges for the period. It is not practical to quantify the impact of changes in asset lives on an overall basis, as asset lives are individually determined and there are a significant number of asset lives in use. (iv) Income taxes The Group is subject to income taxes in numerous jurisdictions and judgment is therefore required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognizes liabilities for anticipated tax audit matters based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. (v) Measurement of employee benefit obligations The Group follows guidance of IAS 19(R) to determine the present value of its obligations to current and past employees in respect of defined benefit pension obligations, other long term employee benefits, and other end of service employee benefits which are subject to similar fluctuations in value in the long term. The Group with the assistance of professional actuaries, values such liabilities designed to ensure consistency in the quality of the key assumptions underlying the valuations. The critical assumptions and estimates applied are discussed in detail in Note 19. (vi) Exceptional items The consolidated income statement and segment analysis separately identify results before exceptional items. Exceptional items are those that in our judgment need to be disclosed by virtue of their size, nature or incidence. The Group believes that this presentation provides additional analysis as it highlights exceptional items. The determination of “significant” as included in our definition uses qualitative and quantitative factors which remain consistent from period to period. Management uses judgment in assessing the particular items, which by virtue of their scale and nature, are disclosed in the consolidated income statement and related notes as exceptional items. Management considers the consolidated income statement presentation of exceptional items to be appropriate as it provides useful additional information and is consistent with the way that financial information is measured by management and presented to the Board. In that regard, management believes it to be consistent with paragraph 85 of IAS 1 “Presentation of financial statements” (“IAS 1”), which permits the inclusion of line items and subtotals that improve the understanding of performance. (vii) Business combinations and goodwill Goodwill only arises in business combinations. The amount of goodwill initially recognized is dependent on the allocation of the purchase price to the fair value of the identifiable assets acquired and the liabilities assumed. The determination of the fair value of the assets and liabilities is based, to a considerable extent, on management’s judgment. Allocation of the purchase price affects the results of the Group as finite lived intangible assets are amortized, whereas indefinite lived intangible assets, including goodwill, are not amortized and could result in differing amortization charges based on the allocation to indefinite lived and finite lived intangible assets. |
Summary of significant accoun39
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of significant accounting policies | |
Schedule of useful lives of intangible finite lived intangible assets on a straight-line basis | Computer software 2 - 7 years Customer relationships 5 - 15 years Technology 8 - 15 years |
Schedule useful lives of property, plant and equipment on a straight-line basis | Buildings 30 - 40 years Plant and machinery 3 - 40 years Molds 2 - 3 years Office equipment and vehicles 3 - 10 years |
Segment analysis (Tables)
Segment analysis (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment analysis | |
Schedule of reconciliation of profit (loss) to Adjusted EBITDA | Year ended December 31, 2017 2016 2015 $m $m $m Profit/(loss) for the year 63 (74) (157) Income tax (credit)/charge (Note 6) (40) 55 70 Net finance expense (Note 5) 649 594 590 Depreciation and amortization (Notes 9, 10) 687 561 449 Exceptional operating items (Note 4) 149 145 89 Adjusted EBITDA 1,508 1,281 1,041 |
Schedule of segment results | The segment results for the year ended December 31, 2017 are: Metal Metal Glass Glass Packaging Packaging Packaging Packaging Europe Americas Europe North America Group $m $m $m $m $m Revenue 3,339 1,931 1,549 1,777 8,596 Adjusted EBITDA 554 265 340 349 1,508 Capital expenditure 176 80 110 126 492 Segment assets 4,485 1,858 2,187 2,622 11,152 The segment results for the year ended December 31, 2016 are: Metal Metal Glass Glass Packaging Packaging Packaging Packaging Europe Americas Europe North America Group $m $m $m $m $m Revenue 2,470 1,168 1,541 1,835 7,014 Adjusted EBITDA 404 154 328 395 1,281 Capital expenditure 80 39 99 133 351 Segment assets 4,159 1,934 1,998 2,755 10,846 The segment results for the year ended December 31, 2015 are: Metal Metal Glass Glass Packaging Packaging Packaging Packaging Europe Americas Europe North America Group $m $m $m $m $m Revenue 1,839 435 1,619 1,902 5,795 Adjusted EBITDA 289 49 318 385 1,041 Capital expenditure 51 17 122 149 339 Segment assets 2,028 441 1,923 2,509 6,901 |
Schedule of total revenue and non-current assets, excluding derivative financial instruments, taxes, pensions and goodwill arising on acquisitions, in countries | Year ended December 31, 2017 2016 2015 Revenue $m $m $m U.S. 3,261 2,695 2,227 United Kingdom 879 801 738 Germany 801 726 639 At December 31, 2017 2016 Non-current assets $m $m U.S. 2,218 2,307 Germany 1,025 801 United Kingdom 676 556 |
Exceptional items (Tables)
Exceptional items (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Exceptional items | |
Schedule of exceptional items | Year ended December 31, 2017 2016 2015 $m $m $m Exceptional impairment - property, plant and equipment 54 9 — Restructuring costs 38 15 13 Start-up costs 8 5 30 Exceptional impairment - working capital — — (2) Non-cash inventory adjustment — 10 — Past service credit — (24) — Exceptional items - cost of sales 100 15 41 Transaction related costs - acquisition, integration and IPO 49 128 45 Restructuring and other costs — 2 3 Exceptional items - SGA expenses 49 130 48 Debt refinancing and settlement costs 117 157 15 Exceptional loss on derivative financial instruments 15 11 — Interest payable on acquisition notes — 17 — Exceptional items - finance expense 132 185 15 Exceptional gain on derivative financial instruments — (88) — Exceptional items - finance income — (88) — Total exceptional items 281 242 104 |
Finance income and expense (Tab
Finance income and expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Finance income and expense | |
Schedule of finance income and expense | Year ended December 31, 2017 2016 2015 $m $m $m Senior secured and senior notes 431 460 421 Term loan 5 30 29 Other interest expense 6 7 9 Interest expense 442 497 459 Net pension interest cost (Note 19) 24 28 26 Loss on derivative financial instruments 28 — — Foreign currency translation losses/(gains) 24 (23) 88 Other finance (income)/expense (1) (5) 2 Finance expense before exceptional items 517 497 575 Exceptional finance expense (Note 4) 132 185 15 Total finance expense 649 682 590 Exceptional finance income (Note 4) — (88) — Net finance expense 649 594 590 |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income tax | |
Schedule of current and deferred tax | Year ended December 31, 2017 2016 2015 $m $m $m Current tax: Current tax for the year 99 69 60 Adjustments in respect of prior years 1 (20) 9 Total current tax 100 49 69 Deferred tax: Deferred tax for the year (134) (11) 19 Adjustments in respect of prior years (6) 17 (18) Total deferred tax (140) 6 1 Income tax (credit)/charge (40) 55 70 |
Schedule of reconciliation of tax expense and the accounting loss multiplied by the Group's domestic tax rate | Year ended December 31, 2017 2016 2015 $m $m $m Profit/(loss) before tax 23 (19) (87) Profit/(loss) before tax multiplied by the standard rate of Luxembourg corporation tax: 27.08% (2016: 29.22%; 2015: 29.22%) 6 (6) (25) Tax losses for which no deferred income tax asset was recognized — 1 2 Re-measurement of deferred taxes (79) (6) (6) Adjustment in respect of prior years (4) (3) (9) Income subject to state and other local income taxes 17 10 12 Income taxed at rates other than standard tax rates (19) 21 30 Non-deductible items 31 41 70 Other 8 (3) (4) Income tax (credit)/charge (40) 55 70 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share | |
Schedule of Basic and Diluted Earning per share | Year ended December 31, 2017 2016 2015 $m $m $m Profit/(loss) attributable to equity holders 63 (74) (157) 2017 2016 2015 Weighted average number of ordinary shares for basic EPS (millions of shares) 229.6 202.0 202.0 Profit/(loss) per share $ 0.27 $ (0.37) $ (0.78) |
Employee costs (Tables)
Employee costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Employee costs | |
Schedule of component of employee costs | Year ended December 31, 2017 2016 2015 $m $m $m Wages and salaries 1,345 1,190 1,034 Social security costs 209 167 148 Defined benefit plan pension costs (Note 19) 46 46 50 Defined benefit past service credit (Note 19) (10) (43) — Defined contribution plan pension costs (Note 19) 35 34 16 1,625 1,394 1,248 |
Schedule of number of employees | At December 31, Employees 2017 2016 2015 Production 20,793 20,823 17,068 Administration 2,698 2,711 1,789 23,491 23,534 18,857 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets | |
Schedule of reconciliation of changes in intangible assets | Customer Technology Goodwill relationships and other Software Total $m $m $m $m $m Cost At January 1, 2016 1,140 926 197 53 2,316 Acquisitions (Note 24) 1,004 1,385 34 12 2,435 Additions — — 8 3 11 Impairment — — — (2) (2) Exchange (56) (53) (5) (2) (116) At December 31, 2016 2,088 2,258 234 64 4,644 Amortization At January 1, 2016 (254) (56) (37) (347) Charge for the year (159) (25) (7) (191) Exchange 14 (6) 1 9 At December 31, 2016 (399) (87) (43) (529) Net book value At December 31, 2016 2,088 1,859 147 21 4,115 Cost At January 1, 2017 2,088 2,258 234 64 4,644 Additions — — 5 16 21 Derecognition of fully amortized assets — (42) — — (42) Exchange 113 139 12 8 272 At December 31, 2017 2,201 2,355 251 88 4,895 Amortization At January 1, 2017 (399) (87) (43) (529) Charge for the year (225) (31) (8) (264) Derecognition of fully amortized assets 42 — — 42 Exchange (25) (8) (7) (40) At December 31, 2017 (607) (126) (58) (791) Net book value At December 31, 2017 2,201 1,748 125 30 4,104 |
Summary of goodwill allocation | At December 31, 2017 2016 $m $m Metal Packaging Europe - excluding the Beverage Can Business ('Metal Europe') 320 282 Metal Packaging Americas - excluding the Beverage Can Business ('Metal Americas') 29 30 Metal Packaging Europe - Beverage Can Business ('Beverage Europe') 604 534 Metal Packaging Americas - Beverage Can Business ('Beverage Americas') 437 436 Glass Packaging Europe 65 60 Glass Packaging North America 746 746 Total Goodwill 2,201 2,088 |
Schedule of significant goodwill amounts arising in the groups of CGUs | Glass Glass Packaging Metal Metal Beverage Beverage Packaging North Europe Americas Europe Americas Europe America $m/% $m/% $m/% $m/% $m/% $m/% 2017 Carrying amount of goodwill Excess of recoverable amount Pre-tax discount rate applied Growth rate for terminal value 2016 Carrying amount of goodwill 282 30 534 436 60 746 Excess of recoverable amount 2,296 392 613 289 2,186 1,718 Pre-tax discount rate applied 8.3 9.8 8.9 11.9 8.7 10.3 Growth rate for terminal value 1.5 2.0 1.5 2.0 1.5 2.0 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment | |
Schedule of property plant and equipment | Plant, Office Land and machinery equipment buildings and other and vehicles Total $m $m $m $m Cost At January 1, 2016 829 3,108 56 3,993 Acquisitions (Note 24) 190 512 — 702 Additions 3 345 6 354 Impairment — (9) — (9) Disposals (7) (211) (11) (229) Transfers 14 (32) 18 — Exchange (46) (172) (5) (223) At December 31, 2016 983 3,541 64 4,588 Depreciation At January 1, 2016 (189) (1,264) (27) (1,480) Charge for the year (28) (332) (10) (370) Disposals 4 211 10 225 Exchange 13 90 2 105 At December 31, 2016 (200) (1,295) (25) (1,520) Net book value At December 31, 2016 783 2,246 39 3,068 Cost At January 1, 2017 983 3,541 64 4,588 Additions 8 508 6 522 Impairment (Note 4) — (54) — (54) Disposals (4) (160) (10) (174) Transfers 11 (9) 7 9 Exchange 96 316 4 416 At December 31, 2017 1,094 4,142 71 5,307 Depreciation At January 1, 2017 (200) (1,295) (25) (1,520) Charge for the year (35) (378) (10) (423) Disposals 2 156 10 168 Transfers 1 (2) 1 — Exchange (26) (137) (1) (164) At December 31, 2017 (258) (1,656) (25) (1,939) Net book value At December 31, 2017 836 2,486 46 3,368 |
Schedule of operating lease commitments | Year ended December 31, 2017 2016 2015 $m $m $m Plant and machinery 6 6 6 Land and buildings 21 27 23 Office equipment and vehicles 11 10 9 38 43 38 |
Schedule of commitments under non cancellable operating leases | At December 31, 2017 2016 2015 $m $m $m Not later than one year 35 32 29 Later than one year and not later than five years 77 73 75 Later than five years 80 72 73 192 177 177 |
Schedule of capital commitments | At December 31, 2017 2016 2015 $m $m $m Contracted for 101 116 33 Not contracted for 14 20 7 115 136 40 |
Deferred income tax (Tables)
Deferred income tax (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred income tax | |
The movement in deferred tax assets and liabilities | Assets Liabilities Total $m $m $m At January 1, 2016 432 (740) (308) Acquisition (Note 24) 81 (243) (162) (Charged)/credited to the income statement (Note 6) (46) 40 (6) Credited/(charged) to other comprehensive income 20 (6) 14 Reclassification 3 (3) — Exchange (21) 24 3 At December 31, 2016 469 (928) (459) (Charged)/credited to the income statement (Note 6) (67) 207 140 (Charged)/credited to other comprehensive income (6) 1 (5) Reclassification 4 (4) — Exchange 28 (66) (38) At December 31, 2017 428 (790) (362) |
The components of deferred income tax assets and liabilities | At December 31, 2017 2016 $m $m Tax losses 34 34 Employee benefit obligations 187 181 Depreciation timing differences 90 86 Provisions 70 99 Other 47 69 428 469 Available for offset (207) (196) Deferred tax assets 221 273 Intangible assets (395) (508) Accelerated depreciation and other fair value adjustments (369) (378) Other (26) (42) (790) (928) Available for offset 207 196 Deferred tax liabilities (583) (732) |
The tax (charge)/credit recognized in the consolidated income statement | Year ended December 31, 2017 2016 2015 $m $m $m Tax losses (2) (3) (20) Employee benefit obligations (21) (13) 14 Depreciation timing differences (6) (13) (2) Provisions (26) — (8) Other deferred tax assets (12) (17) (8) Intangible assets 155 42 33 Accelerated depreciation and other fair value adjustments 29 7 2 Other deferred tax liabilities 23 (9) (12) 140 (6) (1) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | |
Schedule of inventories | At December 31, 2017 2016 $m $m Raw materials and consumables 369 305 Mold parts 52 46 Work-in-progress 85 72 Finished goods 847 763 1,353 1,186 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables | |
Schedule of trade, other current receivables and prepayments | At December 31, 2017 2016 $m $m Trade receivables 1,015 970 Other receivables and prepayments 259 257 1,274 1,227 |
Schedule of movements on the provision for impairment of current trade receivables | 2017 2016 2015 $m $m $m At January 1, 15 15 17 Provision for receivables impairment 6 1 2 Receivables written off during the year as uncollectible — (1) (2) Exchange 2 — (2) At December 31, 23 15 15 |
Schedule of ageing analysis of current trade receivables were past due but not impaired | At December 31, 2017 2016 $m $m Up to three months past due 46 42 Three to six months past due 5 Over six months past due 11 62 48 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash, cash equivalents and restricted cash | |
Schedule of cash and cash equivalents | At December 31, 2017 2016 $m $m Cash at bank and in hand 641 768 Short term bank deposits 130 17 Restricted cash 13 28 784 813 |
Issued capital and reserves (Ta
Issued capital and reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Issued capital and reserves | |
Schedule of share capital | At December 31, 2016 Number of shares (millions) $m - Ordinary shares (par value €0.01) 11.1 Cancellation of ordinary shares (i) (11.1) — Issue of shares: - Class A common shares (par value €0.01) (ii) 18.6 — - Class B common shares (par value €0.10) (i) 217.7 23 At December 31, 2017 236.3 23 |
Financial assets and liabilit53
Financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial assets and liabilities | |
Schedule of net external debt | At December 31, 2017 2016 $m $m Loan notes 8,296 7,919 Term loan — 661 Other borrowings 12 10 Total borrowings 8,308 8,590 Cash and cash equivalents (784) (813) Derivative financial instruments used to hedge foreign currency and interest rate risk 301 (131) Net debt 7,825 7,646 |
Schedule of net debt and available liquidity | At December 31, 2017, the Group’s net debt and available liquidity was as follows: Maximum Final amount maturity Facility Undrawn Facility Currency drawable date type Amount drawn amount Local Local $m $m currency currency m m 2.750% Senior Secured Notes EUR 15-Mar-24 Bullet 899 — 4.625% Senior Secured Notes USD 15-May-23 Bullet 1,000 — 4.125% Senior Secured Notes EUR 15-May-23 Bullet 528 — 4.250% Senior Secured Notes USD 15-Sep-22 Bullet 715 — 4.750% Senior Notes GBP 15-Jul-27 Bullet 541 — 6.000% Senior Notes USD 15-Feb-25 Bullet 1,696 — 7.250% Senior Notes USD 15-May-24 Bullet 1,650 — 6.750% Senior Notes EUR 15-May-24 Bullet 899 — 6.000% Senior Notes USD 30-Jun-21 Bullet 440 — Global Asset Based Loan Facility USD 07-Dec-22 Revolving — — 813 Finance Lease Obligations GBP/EUR Amortizing 8 — Other borrowings/credit lines EUR Rolling Amortizing 4 Total borrowings / undrawn facilities 8,380 814 Deferred debt issue costs and bond premium (72) — Net borrowings / undrawn facilities 8,308 814 Cash and cash equivalents (784) 784 Derivative financial instruments used to hedge foreign currency and interest rate risk 301 — Net debt / available liquidity 7,825 1,598 At December 31, 2016, the Group’s net debt and available liquidity was as follows: Maximum Final amount maturity Facility Undrawn Facility Currency drawable date type Amount drawn amount Local Local $m $m currency currency m m 4.250% First Priority Senior Secured Notes EUR 1,155 15-Jan-22 Bullet 1,155 1,217 — 4.625% Senior Secured Notes USD 1,000 15-May-23 Bullet 1,000 1,000 — 4.125% Senior Secured Notes EUR 440 15-May-23 Bullet 440 464 — First Priority Senior Secured Floating Rate Notes USD 1,110 15-Dec-19 Bullet 1,110 1,110 — Senior Secured Floating Rate Notes USD 500 15-May-21 Bullet 500 500 — 6.000% Senior Notes USD 440 30-Jun-21 Bullet 440 440 — 6.250% Senior Notes USD 415 31-Jan-19 Bullet 415 415 — 6.750% Senior Notes USD 415 31-Jan-21 Bullet 415 415 — 7.250% Senior Notes USD 1,650 15-May-24 Bullet 1,650 1,650 — 6.750% Senior Notes EUR 750 15-May-24 Bullet 750 790 — Term Loan B Facility USD 663 17-Dec-21 Amortizing 663 663 — HSBC Securitization Program EUR 102 14-Jun-18 Revolving — — 108 Bank of America Facility USD 155 11-Apr-18 Revolving — — 155 Finance lease obligations GBP/EUR Amortizing 7 7 — Other borrowings/credit lines EUR 4 Rolling Amortizing 3 3 1 Total borrowings / undrawn facilities 8,674 264 Deferred debt issue costs and bond discount (84) — Net borrowings / undrawn facilities 8,590 264 Cash and cash equivalents (813) 813 Derivative financial instruments used to hedge foreign currency and interest rate risk (131) — Net debt / available liquidity 7,646 1,077 |
Schedule of movement in net debt | 2017 2016 $m $m Net (increase)/decrease in cash and cash equivalents per consolidated statement of cash flows (30) 211 Increase in net borrowings and derivative financial instruments 209 1,065 Increase in net debt 179 1,276 Net debt at January 1, 7,646 6,370 Net debt at December 31, 7,825 7,646 |
Schedule of maturity analysis of borrowings | At December 31, 2017 2016 $m $m Within one year or on demand 2 8 Between one and two years 1 8 Between two and five years 1,154 3,512 Greater than five years 7,151 5,062 8,308 8,590 |
Schedule of contracted undiscounted cash flows | Derivative Trade and financial other Borrowings instruments payables At December 31, 2017 $m $m $m Within one year or on demand 456 2 1,988 Between one and two years 455 84 — Between two and five years 2,480 66 — Greater than five years 7,877 151 — Derivative Trade and financial other Borrowings instruments payables At December 31, 2016 $m $m $m Within one year or on demand 471 8 1,622 Between one and two years 471 — — Between two and five years 4,638 — — Greater than five years 5,628 — — |
Schedule of carrying amount and fair value of borrowings | Carrying value Deferred debt Amount issue costs and drawn premium Total Fair value At December 31, 2017 $m $m $m $m Loan notes 8,368 (72) 8,296 8,796 Finance leases 8 — 8 8 Bank loans, overdrafts and revolving credit facilities 4 — 4 4 8,380 (72) 8,308 8,808 Carrying value Deferred debt Amount issue costs and drawn bond discount Total Fair value At December 31, 2016 $m $m $m $m Loan notes 8,001 (82) 7,919 8,240 Term loan 663 (2) 661 669 Finance leases 7 — 7 7 Bank loans, overdrafts and revolving credit facilities 3 — 3 3 8,674 (84) 8,590 8,919 |
Schedule of effective interest rates | 2017 2016 USD EUR GBP USD EUR GBP 2.750% Senior Secured Notes due 2024 — 2.92 % — — — — 4.625% Senior Secured Notes due 2023 5.16 % — — 5.18 % — — 4.125% Senior Secured Notes due 2023 — 4.63 % — — 4.66 % — 4.250% Senior Secured Notes due 2022 4.51 % — — — — — 4.250% First Priority Senior Secured Notes due 2022 — — — — 4.52 % — First Priority Senior Secured Floating Rate Notes due 2019 — — — 3.49 % — — Senior Secured Floating Rate Notes due 2022 — — — 4.26 % — — 4.750% Senior Notes due 2027 — — 4.99 % — — — 6.000% Senior Notes due 2025 6.14 % — — — — — 7.250% Senior Notes due 2024 7.72 % — — 7.74 % — — 6.750% Senior Notes due 2024 — 7.00 % — — 7.01 % — 6.000% Senior Notes due 2021 6.38 % — — 6.38 % — — 6.750% Senior Notes due 2021 — — — 7.45 % — — 6.250% Senior Notes due 2019 — — — 7.25 % — — USD Term Loan B Facility due 2021 — — — 4.16 % — — |
Schedule of net borrowings in denominated currencies | At December 31, 2017 2016 $m $m Euro 2,319 2,458 U.S. dollar 5,452 6,130 British pound 537 2 8,308 8,590 |
Schedule of undrawn borrowing facilities | At December 31, 2017 2016 $m $m Expiring within one year 1 1 Expiring beyond one year 813 263 814 264 |
Schedule of fair value of financial instruments | Assets Liabilities Contractual Contractual or notional or notional Fair values amounts Fair values amounts $m $m $m $m Fair Value Derivatives Metal forward contracts 17 197 — — Cross currency interest rate swaps — — 301 3,107 Forward foreign exchange contracts 4 179 1 52 NYMEX gas swaps — — 1 20 Carbon futures 2 10 — — At December 31, 2017 23 386 303 3,179 Assets Liabilities Contractual Contractual or notional or notional Fair values amounts Fair values amounts $m $m $m $m Fair Value Derivatives Metal forward contracts 9 197 — — Cross currency interest rate swap 131 1,580 — — Forward foreign exchange contracts — — 8 206 NYMEX gas swaps 2 16 — — Carbon Futures 1 2 — — At December 31, 2016 143 1,795 8 206 |
Employee benefit obligations (T
Employee benefit obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined benefit plan | |
Schedule of employee benefit obligations and assets included in consolidated statement of financial position | U.S. Germany UK Netherlands Other Total 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 $m $m $m $m $m $m $m $m $m $m $m $m Obligations (1,313) (1,198) (405) (364) (1,000) (947) (19) (569) (25) (23) (2,762) (3,101) Assets 1,179 1,067 — — 706 660 — 541 12 8 1,897 2,276 Net obligations (134) (131) (405) (364) (294) (287) (19) (28) (13) (15) (865) (825) |
Schedule of current service cost and administration costs of defined benefit pension schemes recognized in the consolidated income statement | Year ended December 31, 2017 2016 2015 $m $m $m Current service cost and administration costs: Cost of sales - current service cost (43) (40) (45) Cost of sales - past service credit 8 32 — SGA - current service cost (3) (6) (6) SGA - past service credit 2 11 — (36) (3) (51) Finance expense (Note 5) (24) (28) (26) (60) (31) (77) |
Schedule of re-measurement of defined benefit obligations and assets recognized in consolidated statement of comprehensive income | Year ended December 31, 2017 2016 2015 $m $m $m Re-measurement of defined benefit obligation: Actuarial (loss)/gain arising from changes in demographic assumptions (6) 26 9 Actuarial (loss)/gain arising from changes in financial assumptions (104) (280) 107 Actuarial gain/(loss) arising from changes in experience 2 (11) 32 (108) (265) 148 Re-measurement of plan assets: Actual return/(loss) less expected return on plan assets 158 122 (92) Actuarial gain/(loss) for the year on defined benefit pension schemes 50 (143) 56 Actuarial (loss)/gain on other long term and end of service employee benefits (1) 4 18 49 (139) 74 |
Schedule of movement in defined benefit obligations and assets | At December 31, Obligations Assets 2017 2016 2017 2016 $m $m $m $m At January 1, (3,101) (2,846) 2,276 2,151 Interest income — — 71 82 Acquired — (393) — 301 Current service cost (46) (46) — — Past service credit 10 43 — — Interest cost (92) (105) — — Administration expenses paid from plan assets — — (2) (3) Re-measurements (108) (265) 158 122 Obligations/(assets) extinguished on reclassification 602 207 (602) (207) Employer contributions — — 51 48 Employer contributions—acquisition related — — — 8 Employee contributions (2) (6) 2 6 Benefits paid 163 131 (163) (131) Exchange (188) 179 106 (101) At December 31, (2,762) (3,101) 1,897 2,276 |
Schedule of plan assets | At December 31, 2017 2017 2016 2016 $m % $m % Equities 1,177 62 1,215 53 Target return funds 297 16 290 13 Bonds 249 13 588 26 Cash/other 174 9 183 8 1,897 100 2,276 100 |
Schedule of ranges of principal assumptions applied in estimating defined benefit obligations | U.S. Germany UK 2017 2016 2017 2016 2017 2016 % % % % % % Rates of inflation 2.50 2.50 1.50 1.50 3.10 3.20 Rates of increase in salaries 2.00 - 3.00 2.00 - 3.00 2.50 2.50 2.60 2.20 Discount rates 3.80 4.45 1.68 - 2.24 1.57 - 2.06 2.70 2.80 |
Schedule of mortality assumptions | U.S. Germany UK 2017 2016 2017 2016 2017 2016 Years Years Years Years Years Years Life expectancy, current pensioners 22 22 21 21 21 21 Life expectancy, future pensioners 23 23 24 24 22 22 |
Schedule of principal defined benefit schemes | - Metal Packaging Glass Packaging Europe Europe North Europe Europe North UK Germany America UK Germany America Nature of the schemes Funded Unfunded Funded Funded Unfunded Funded 2017 Active members 467 1,694 943 — 1,011 4,137 Deferred members 954 706 139 1,527 759 2,697 Pensioners including dependents 756 1,081 150 744 762 6,379 Weighted average duration (years) 21 17 17 23 18 13 2016 Active members 467 1,803 970 — 1,032 4,043 Deferred members 954 664 115 1,527 732 2,648 Pensioners including dependents 756 1,011 133 744 786 6,302 Weighted average duration (years) 20 18 20 23 19 12 |
Schedule of expected defined benefit payment | Subsequent 2018 2019 2020 2021 2022 five years $m $m $m $m $m $m Benefits 116 114 118 121 125 672 |
Other employee benefit obligations | |
Schedule of other employee benefits | At December 31, 2017 2016 $m $m End of service employee benefits 25 24 Long term employee benefits 107 105 132 129 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Provisions | |
Schedule of current and non current provisions | At December 31, 2017 2016 $m $m Current 70 73 Non-current 44 60 114 133 |
Schedule of restructuring and other Provisions | Other Total Restructuring provisions provisions $m $m $m At January 1, 2016 20 85 105 Acquisitions (Note 24) — 42 42 Provided 28 32 60 Released (12) (17) (29) Paid (11) (31) (42) Exchange (2) (1) (3) At December 31, 2016 23 110 133 Provided 12 26 38 Released (2) (31) (33) Paid (10) (21) (31) Exchange 2 5 7 At December 31, 2017 25 89 114 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other payables | |
Schedule of trade and other payables | At December 31, 2017 2016 $m $m Trade payables 1,469 1,112 Other payables and accruals 436 441 Amounts owed to parent company — 3 Other tax and social security payable 49 34 Payables and accruals for exceptional items 34 32 1,988 1,622 |
Cash generated from operating57
Cash generated from operating activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash generated from operating activities | |
Schedule of cash generated from operating activities | Year ended December 31, 2017 2016 2015 $m $m $m Profit/(loss) for the year 63 (74) (157) Income tax (credit)/charge (Note 6) (40) 55 70 Net finance expense (Note 5) 649 594 590 Depreciation and amortization (Notes 9, 10) 687 561 449 Exceptional operating items (Note 4) 149 145 89 Movement in working capital 99 131 100 Acquisition-related, IPO, start-up and other exceptional costs paid (74) (176) (60) Exceptional restructuring paid (10) (11) (22) Cash generated from operations 1,523 1,225 1,059 |
Business combinations and dis58
Business combinations and disposals (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business combinations and disposals | |
Schedule of provisional consideration and fair value of assets acquired and liabilities assumed. | $m Cash and cash equivalents 11 Property, plant and equipment 702 Intangible assets 1,431 Inventories 294 Trade and other receivables 367 Trade and other payables (484) Net deferred tax liability (162) Employee benefit obligations (129) Provisions (42) Total identifiable net assets 1,988 Goodwill 1,004 Total consideration 2,992 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Dividends | |
Schedule of cash dividends on ordinary shares declared and paid | Year ended December 31, 2017 2016 2015 $m $m $m Cash dividends on ordinary shares declared and paid: Interim dividend for 2017: $0.33 per share (2016: $nil per share) (67) — — Interim dividend for 2017: $0.14 per share (2016: $nil per share) (33) — — Interim dividend for 2017: $0.14 per share (2016: $1.50 per share) (32) (304) — Interim dividend for 2017: $0.14 per share (2016: $nil per share) (33) — — (165) (304) — |
Related party information (Tabl
Related party information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related party information | |
Schedule of information about key management personnel | Year ended December 31, 2017 2016 2015 $m $m $m Salaries and other short term employee benefits 12 12 10 Post-employment benefits 1 1 1 13 13 11 Transaction related and other compensation 7 29 — 20 42 11 |
Schedule of information relating to wholly owned subsidiaries | Company Country of incorporation Activity Ardagh Metal Beverage Manufacturing Austria GmbH Austria Metal Packaging Ardagh Metal Beverage Trading Austria GmbH Austria Metal Packaging Latas Indústria de Embalagens de Alumínio do Brasil Ltda Brazil Metal Packaging Ardagh Metal Packaging Czech Republic s.r.o. Czech Republic Metal Packaging Ardagh Glass Holmegaard A/S Denmark Glass Packaging Ardagh Aluminium Packaging France SAS France Metal Packaging Ardagh MP West France SAS France Metal Packaging Ardagh Metal Packaging France SAS France Metal Packaging Ardagh Metal Beverage Trading France SAS France Metal Packaging Ardagh Metal Beverage France SAS France Metal Packaging Ardagh Glass GmbH Germany Glass Packaging Heye International GmbH Germany Glass Engineering Ardagh Metal Packaging Germany GmbH Germany Metal Packaging Ardagh Germany MP GmbH Germany Metal Packaging Ardagh Metal Beverage Trading Germany GmbH Germany Metal Packaging Ardagh Metal Beverage Germany GmbH Germany Metal Packaging Ardagh Glass Sales Limited Ireland Glass Packaging Ardagh Packaging Holdings Limited Ireland Glass and Metal Packaging Ardagh Group Italy S.r.l. Italy Glass and Metal Packaging Ardagh Aluminium Packaging Netherlands B.V. Netherlands Metal Packaging Ardagh Glass Dongen B.V. Netherlands Glass Packaging Ardagh Glass Moerdijk B.V. Netherlands Glass Packaging Ardagh Metal Packaging Netherlands B.V. Netherlands Metal Packaging Ardagh Metal Beverage Trading Netherlands B.V. Netherlands Metal Packaging Ardagh Metal Beverage Netherlands B.V. Netherlands Metal Packaging Ardagh Glass S.A. Poland Glass Packaging Ardagh Metal Packaging Poland Sp. z o.o. Poland Metal Packaging Ardagh Metal Beverage Trading Poland Sp. z o.o. Poland Metal Packaging Ardagh Metal Beverage Poland Sp. z o.o. Poland Metal Packaging Ardagh Metal Beverage Trading Spain SL Spain Metal Packaging Ardagh Metal Beverage Spain SL Spain Metal Packaging Ardagh Metal Packaging Iberica S.A. Spain Metal Packaging Ardagh Glass Limmared AB Sweden Glass Packaging Ardagh Metal Beverage Europe GmbH Switzerland Metal Packaging Ardagh Glass Limited United Kingdom Glass Packaging Ardagh Metal Beverage Trading UK Limited United Kingdom Metal Packaging Ardagh Metal Beverage UK Limited United Kingdom Metal Packaging Ardagh Metal Packaging UK Limited United Kingdom Metal Packaging Ardagh Metal Packaging USA Inc. United States Metal Packaging Ardagh Glass Inc. United States Glass Packaging Ardagh Metal Beverage USA Inc. United States Metal Packaging |
Effect of change in presentat61
Effect of change in presentation currency (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Consolidated financial statements | |
Schedule of exchange rates used in translation | Year ended December 31, Closing rate Average rate |
Previously stated | |
Consolidated financial statements | |
Income statement | CONSOLIDATED INCOME STATEMENT Year ended December 31, 2017 Year ended December 31, 2016 Year ended December 31, 2015 Before Before Before exceptional Exceptional exceptional Exceptional exceptional Exceptional items Items Total items Items Total items Items Total €m €m €m €m €m €m €m €m €m Revenue 7,644 — 7,644 6,345 — 6,345 5,199 — 5,199 Cost of sales (6,321) (85) (6,406) (5,221) (15) (5,236) (4,285) (37) (4,322) Gross profit/(loss) 1,323 (85) 1,238 1,124 (15) 1,109 914 (37) 877 Sales, general and administration expenses (359) (43) (402) (300) (116) (416) (274) (44) (318) Intangible amortization (235) — (235) (173) — (173) (109) — (109) Operating profit/(loss) 729 (128) 601 651 (131) 520 531 (81) 450 Finance expense (459) (123) (582) (450) (165) (615) (514) (13) (527) Finance income — — — — 78 78 — — — Profit/(loss) before tax 270 (251) 19 201 (218) (17) 17 (94) (77) Income tax (charge)/credit (87) 122 35 (93) 43 (50) (95) 32 (63) Profit/(loss) for the year 183 (129) 54 108 (175) (67) (78) (62) (140) Profit/(loss) attributable to: Owners of the parent 54 (67) (140) Non-controlling interests — — — Profit/(loss) for the year 54 (67) (140) Profit/(loss) per share: Basic profit/(loss) for the year attributable to equity holders € 0.24 € (0.33) € |
Statement of comprehensive income | CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year ended December 31, 2017 2016 2015 € m € m € m Profit/(loss) for the year 54 (67) (140) Other comprehensive income/(expense) Items that may subsequently be reclassified to income statement Foreign currency translation adjustments: —Arising in the year (2) (52) (137) (2) (52) (137) Effective portion of changes in fair value of cash flow hedges: —New fair value adjustments into reserve (226) 50 44 —Movement out of reserve 230 (77) (43) —Movement in deferred tax 1 (4) — 5 (31) 1 Items that will not be reclassified to income statement —Re-measurements of employee benefit obligations 43 (121) 72 —Deferred tax movement on employee benefit obligations (6) 16 (27) 37 (105) 45 Total other comprehensive income/(expense) for the year 40 (188) (91) Total comprehensive income/(expense) for the year 94 (255) (231) Attributable to: Equity holders 94 (255) (231) Non-controlling interests — — — Total comprehensive income/(expense) for the year 94 (255) (231) |
Statement of financial position | CONSOLIDATED STATEMENT OF FINANCIAL POSITION At December 31, 2017 2016 2015 2014 € m € m € m €m Non-current assets Intangible assets 3,422 3,904 1,810 1,762 Property, plant and equipment 2,808 2,911 2,307 2,223 Derivative financial instruments 6 124 — 40 Deferred tax assets 184 259 178 184 Other non-current assets 21 20 14 10 6,441 7,218 4,309 4,219 Current assets Inventories 1,128 1,125 825 770 Trade and other receivables 1,062 1,164 651 692 Related party receivables — — 404 404 Derivative financial instruments 13 11 — 2 Cash and cash equivalents 654 772 553 414 2,857 3,072 2,433 2,282 TOTAL ASSETS 9,298 10,290 6,742 6,501 Equity attributable to owners of the parent Issued capital 22 — — — Share premium 1,090 136 400 400 Capital contribution 431 431 — — Other reserves (321) (324) (241) (105) Retained earnings (2,370) (2,313) (2,141) (2,046) (1,148) (2,070) (1,982) (1,751) Non-controlling interests 1 2 2 2 TOTAL EQUITY (1,147) (2,068) (1,980) (1,749) Non-current liabilities Borrowings 6,926 8,142 6,397 6,034 Employee benefit obligations 831 905 720 723 Derivative financial instruments 251 — — — Deferred tax liabilities 486 694 461 420 Related party borrowings — 673 — — Provisions 37 57 48 33 8,531 10,471 7,626 7,210 Current liabilities Borrowings 2 8 7 4 Interest payable 59 81 79 83 Derivative financial instruments 2 8 7 7 Trade and other payables 1,658 1,539 879 804 Income tax payable 135 182 76 92 Provisions 58 69 48 50 1,914 1,887 1,096 1,040 TOTAL LIABILITIES 10,445 12,358 8,722 8,250 TOTAL EQUITY and LIABILITIES 9,298 10,290 6,742 6,501 |
Statement of cash flows | CONSOLIDATED STATEMENT OF CASH FLOWS Year ended December 31, 2017 2016 2015 € m € m € m Cash flows from operating activities Cash generated from operations 1,330 1,109 950 Interest paid - excluding cumulative PIK interest paid (406) (372) (323) Cumulative PIK interest paid — (184) — Income tax paid (90) (84) (59) Net cash from operating activities 834 469 568 Cash flows from investing activities Purchase of business net of cash acquired — (2,685) — Purchase of property, plant and equipment (422) (310) (304) Purchase of intangible assets (19) (12) (8) Proceeds from disposal of property, plant and equipment 5 4 8 Net cash used in investing activities (436) (3,003) (304) Cash flows from financing activities Proceeds from borrowings 3,497 3,950 — Repayment of borrowings (4,061) (2,322) (198) Proceeds from borrowings with related party — 673 — Proceeds from share issuance 306 6 — Contribution from parent — 431 — Repayment of borrowings issued to related party — 404 — Dividends paid (148) (270) — Early redemption premium paid (85) (108) (8) Deferred debt issue costs paid (35) (60) (1) Proceeds from the termination of derivative financial instruments 42 — 81 Net cash (outflow)/inflow from financing activities (484) 2,704 (126) Net (decrease)/increase in cash and cash equivalents (86) 170 138 Cash and cash equivalents at the beginning of the year 772 553 414 Exchange (losses)/gains on cash and cash equivalents (32) 49 1 Cash and cash equivalents at the end of the year 654 772 553 |
Company financial information (
Company financial information (Tables) - Ardagh Group S.A. | 12 Months Ended |
Dec. 31, 2017 | |
Condensed financial statements | |
Statement of financial position | At December 31, 2017 2016 €m €m Non-current assets Investments in subsidiary undertakings 1,809 1,510 1,809 1,510 Current assets Amounts receivable from subsidiary undertakings 10 — Cash and cash equivalents 1 — Other receivables — 2 11 2 Total assets 1,820 1,512 Equity attributable to owners of the parent Issued capital 22 — Share premium 1,090 136 Legal reserve 2 — Capital contribution 431 431 Retained earnings 267 270 Total equity 1,812 837 Non-current liabilities Amounts payable to related parties — 673 — 673 Current liabilities Amounts payable to subsidiary undertakings 4 — Other payables 4 2 8 2 Total liabilities 8 675 Total equity and liabilities 1,820 1,512 |
Statement of comprehensive income | Year ended December 31, 2017 2016 2015 ` €m €m €m Dividend income 150 267 — Other external charges (1) — — Finance expense (1) (64) (84) Finance income — 112 85 Profit before exceptional items 148 315 1 Exceptional finance costs — (47) — Profit before tax 148 268 1 Income tax — — — Profit and total comprehensive income for the year 148 268 1 |
Statement of cash flows | Year ended December 31, 2017 2016 2015 €m €m €m Cash flows from operating activities Cash generated from operations (1) — — Increase in receivables (10) — — Cumulative PIK interest paid — (184) — Net cash used in operating activities (11) (184) — Cash flows from investing activities Repayment of loans from subsidiary undertakings — 1,112 — Contribution to subsidiary undertaking (299) (1,110) — Dividends received 150 267 — Net cash received (used in)/from investing activities (149) 269 — Cash flows from financing activities Repayment of borrowings — (880) — Net proceeds from borrowings with related parties — 671 — Contribution from parent — 431 — Proceeds from share issuance 309 6 — Dividends paid (148) (270) — Early redemption premium costs — (45) — Net cash inflow/(outflow) from financing activities 161 (87) — Net increase/(decrease) in cash and cash equivalents 1 (2) — Cash and cash equivalents at the beginning of the year — 2 2 Cash and cash equivalents at the end of the year 1 — 2 |
Summary of IFRS loss reconciliation | Year ended December 31, 2017 2016 2015 €m €m €m IFRS profit/(loss) reconciliation: Parent only—IFRS profit for the year 148 268 1 Additional loss if subsidiaries had been accounted for using the equity method of accounting as opposed to cost (94) (335) (141) Consolidated IFRS profit/(loss) for the year 54 (67) (140) |
Summary of IFRS equity reconciliation | At December 31, 2017 2016 2015 €m €m €m IFRS equity reconciliation: Parent only—IFRS equity 1,812 837 402 Additional loss if subsidiaries had been accounted for using the equity method of accounting as opposed to cost (2,960) (2,907) (2,384) Consolidated—IFRS equity (1,148) (2,070) (1,982) |
General information (Details)
General information (Details) - shares | Dec. 31, 2017 | Mar. 20, 2017 | Dec. 31, 2016 |
Issued capital | |||
Shares issued in IPO | 236,300,000 | 11,100,000 | |
Class A common shares | |||
Issued capital | |||
Shares issued in IPO | 18,600,000 | 18,630,000 |
Summary of significant accoun64
Summary of significant accounting policies - Intangible assets (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Disclosure of detailed information about intangible assets [line items] | |
Residual value | $ 0 |
Computer software | Minimum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives on a straight-line basis | 2 years |
Computer software | Maximum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives on a straight-line basis | 7 years |
Customer relationships | Minimum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives on a straight-line basis | 5 years |
Customer relationships | Maximum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives on a straight-line basis | 15 years |
Technology | Minimum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives on a straight-line basis | 8 years |
Technology | Maximum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives on a straight-line basis | 15 years |
Summary of significant accoun65
Summary of significant accounting policies - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | Buildings | |
Property, plant and equipment | |
Estimated useful lives | 30 years |
Minimum | Plant and machinery | |
Property, plant and equipment | |
Estimated useful lives | 3 years |
Minimum | Moulds | |
Property, plant and equipment | |
Estimated useful lives | 2 years |
Minimum | Office equipment and vehicles | |
Property, plant and equipment | |
Estimated useful lives | 3 years |
Maximum | Buildings | |
Property, plant and equipment | |
Estimated useful lives | 40 years |
Maximum | Plant and machinery | |
Property, plant and equipment | |
Estimated useful lives | 40 years |
Maximum | Moulds | |
Property, plant and equipment | |
Estimated useful lives | 3 years |
Maximum | Office equipment and vehicles | |
Property, plant and equipment | |
Estimated useful lives | 10 years |
Segment analysis - Reconciliati
Segment analysis - Reconciliation of loss to Adjusted EBITDA (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017EUR (€)segment | Dec. 31, 2017USD ($)segment | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | |
Segment analysis | ||||||
Number of operating segment | segment | 4 | 4 | ||||
Number of reportable segments | segment | 4 | 4 | ||||
Reconciliation of loss to Adjusted EBITDA | ||||||
Profit/(loss) for the year | € 54 | $ 63 | € (67) | $ (74) | € (140) | $ (157) |
Income tax (credit)/expense | (40) | 55 | 70 | |||
Net finance expense | 649 | 594 | 590 | |||
Depreciation and amortization (Notes 9, 10) | 687 | 561 | 449 | |||
Exceptional operating items (Note 4) | 149 | 145 | 89 | |||
Adjusted EBITDA | $ 1,508 | $ 1,281 | $ 1,041 |
Segment analysis - Segment resu
Segment analysis - Segment results (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment analysis | ||||
Revenue | $ 8,596 | $ 7,014 | $ 5,795 | |
Adjusted EBITDA | 1,508 | 1,281 | 1,041 | |
Capital expenditure | 492 | 351 | 339 | |
Assets | 11,152 | 10,846 | 7,341 | $ 7,892 |
Segment assets | 6,901 | |||
Metal Packaging Europe | ||||
Segment analysis | ||||
Revenue | 3,339 | 2,470 | 1,839 | |
Adjusted EBITDA | 554 | 404 | 289 | |
Capital expenditure | 176 | 80 | 51 | |
Assets | 4,485 | 4,159 | ||
Segment assets | 2,028 | |||
Metal Packaging Americas | ||||
Segment analysis | ||||
Revenue | 1,931 | 1,168 | 435 | |
Adjusted EBITDA | 265 | 154 | 49 | |
Capital expenditure | 80 | 39 | 17 | |
Assets | 1,858 | 1,934 | ||
Segment assets | 441 | |||
Glass Packaging Europe | ||||
Segment analysis | ||||
Revenue | 1,549 | 1,541 | 1,619 | |
Adjusted EBITDA | 340 | 328 | 318 | |
Capital expenditure | 110 | 99 | 122 | |
Assets | 2,187 | 1,998 | ||
Segment assets | 1,923 | |||
Glass Packaging North America | ||||
Segment analysis | ||||
Revenue | 1,777 | 1,835 | 1,902 | |
Adjusted EBITDA | 349 | 395 | 385 | |
Capital expenditure | 126 | 133 | 149 | |
Assets | $ 2,622 | $ 2,755 | ||
Segment assets | $ 2,509 |
Segment analysis - Segment asse
Segment analysis - Segment assets and segment revenue (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)customer | Dec. 31, 2016USD ($)customer | Dec. 31, 2015USD ($)customer | Dec. 31, 2014USD ($) | |
Segment analysis | ||||
Number of customers with a percentage of total revenues greater than 10% | customer | 0 | 0 | 1 | |
TOTAL ASSETS | $ 11,152 | $ 10,846 | $ 7,341 | $ 7,892 |
Revenue | 8,596 | 7,014 | 5,795 | |
Non-current assets | 7,725 | 7,608 | 4,692 | $ 5,122 |
United States | ||||
Segment analysis | ||||
Revenue | 3,261 | 2,695 | 2,227 | |
Non-current assets | 2,218 | 2,307 | ||
United Kingdom | ||||
Segment analysis | ||||
Revenue | 879 | 801 | 738 | |
Non-current assets | 676 | 556 | ||
Germany | ||||
Segment analysis | ||||
Revenue | 801 | 726 | 639 | |
Non-current assets | 1,025 | 801 | ||
Luxembourg | ||||
Segment analysis | ||||
Revenue | 3 | 2 | $ 2 | |
Non-current assets | $ 0 | $ 0 |
Exceptional items (Details)
Exceptional items (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€)item | Dec. 31, 2015USD ($)item | |
Exceptional items | ||||
Past service credit | $ (10) | $ (43) | ||
Exceptional items-cost of sales | 7,210 | 5,786 | $ 4,817 | |
Total selling, general and administrative expense | 450 | 462 | 353 | |
Finance expense | 649 | 682 | 590 | |
Exceptional items-finance income | (88) | |||
Total exceptional items | (23) | 19 | 87 | |
Repayment of principal amount outstanding | 4,385 | 2,604 | $ 221 | |
8.75% Senior Notes due 2020 | ||||
Exceptional items | ||||
Repayment of principal amount outstanding | € | € 180 | |||
Stated interest rate | 8.75% | 8.75% | ||
Exceptional items | ||||
Exceptional items | ||||
Exceptional items-cost of sales | 100 | 15 | $ 41 | |
Transaction related costs - acquisition, integration and IPO | 49 | |||
Total selling, general and administrative expense | 49 | 130 | 48 | |
Finance expense | 132 | 185 | 15 | |
Exceptional items-finance income | (88) | |||
Total exceptional items | 281 | 242 | 104 | |
Exceptional items - cost of sales | ||||
Exceptional items | ||||
Exceptional impairment-property, plant and equipment | 54 | 9 | ||
Restructuring costs | 38 | 15 | 13 | |
Start-up costs | 8 | 5 | 30 | |
Exceptional impairment-working capital | (2) | |||
Non-cash inventory adjustment | 10 | |||
Past service credit | (24) | |||
Exceptional items-cost of sales | 100 | 15 | 41 | |
Exceptional items - SGA expenses | ||||
Exceptional items | ||||
Transaction related costs - acquisition, integration and IPO | 49 | 128 | 45 | |
Restructuring and other costs | 2 | 3 | ||
Total selling, general and administrative expense | 49 | 130 | 48 | |
Acquisition and disposal costs | 3 | |||
Exceptional items - finance expense | ||||
Exceptional items | ||||
Debt refinancing and settlement costs | 117 | 157 | 15 | |
Exceptional loss on derivative financial instruments | 15 | 11 | ||
Interest payable on acquisition notes | 17 | |||
Finance expense | 132 | 185 | 15 | |
Other finance costs | 2 | |||
Exceptional items - finance expense | 8.75% Senior Notes due 2020 | ||||
Exceptional items | ||||
Premium on redemption of debt | 9 | |||
Accelerated amortization of deferred finance costs | 3 | |||
Exceptional items - finance income | ||||
Exceptional items | ||||
Exceptional gain on derivative financial instruments | (88) | |||
Exceptional items-finance income | (88) | |||
Metal Packaging Europe | Exceptional items | ||||
Exceptional items | ||||
Restructuring costs | 10 | |||
Metal Packaging Europe | Exceptional items - cost of sales | ||||
Exceptional items | ||||
Exceptional impairment-property, plant and equipment | 6 | |||
Restructuring costs | 38 | 9 | ||
Reversal of impairment of assets | 2 | |||
Metal Packaging Americas and Glass Packaging North America | Exceptional items - cost of sales | ||||
Exceptional items | ||||
Start-up costs | 8 | |||
Glass Packaging North America | Exceptional items | ||||
Exceptional items | ||||
Restructuring costs | 6 | |||
Glass Packaging North America | Exceptional items - cost of sales | ||||
Exceptional items | ||||
Restructuring costs | 5 | |||
Past service credit | 24 | |||
Metal Packaging Americas | Exceptional items - cost of sales | ||||
Exceptional items | ||||
Exceptional impairment-property, plant and equipment | 3 | |||
Restructuring costs | 2 | |||
Start-up costs | $ 30 | |||
The number of plants incurring related start-up costs | item | 2 | 2 | ||
Metal Packaging | Exceptional items - SGA expenses | ||||
Exceptional items | ||||
Transaction related costs - acquisition, integration and IPO | $ 42 | |||
Cross currency interest rate swaps (CCIRS) | ||||
Exceptional items | ||||
Contract value | 500 | |||
Cross currency interest rate swaps (CCIRS) | Exceptional items | ||||
Exceptional items | ||||
Exceptional loss on derivative financial instruments | (11) | |||
Exceptional gain on derivative financial instruments | (88) | |||
Cross currency interest rate swaps (CCIRS) | Exceptional items - finance expense | ||||
Exceptional items | ||||
Exceptional loss on derivative financial instruments | 15 | |||
Cumulative losses recycled from other comprehensive income | 12 | |||
Loss on hedge ineffectiveness | 11 | |||
Cross currency interest rate swaps (CCIRS) | Exceptional items - finance income | ||||
Exceptional items | ||||
Exceptional gain on derivative financial instruments | (88) | |||
Beverage Can | Exceptional items - finance expense | ||||
Exceptional items | ||||
Interest payable on acquisition notes | $ 17 | |||
Plant, machinery and other | Metal Packaging Europe and Glass Packaging North America | Exceptional items - cost of sales | ||||
Exceptional items | ||||
Exceptional impairment-property, plant and equipment | $ 54 |
Finance income and expense (Det
Finance income and expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finance income and expense | |||
Finance expense | $ 649 | $ 682 | $ 590 |
Exceptional finance income | (88) | ||
Net finance expense | 649 | 594 | 590 |
Before exceptional items | |||
Finance income and expense | |||
Senior secured and senior notes | 431 | 460 | 421 |
Term loan | 5 | 30 | 29 |
Other interest expense | 6 | 7 | 9 |
Interest expense | 442 | 497 | 459 |
Net pension interest cost | 24 | 28 | 26 |
Loss on derivative instruments | 28 | ||
Foreign currency translation losses/(gains) | 24 | (23) | 88 |
Other finance (income)/expense | (1) | (5) | 2 |
Finance expense | 517 | 497 | 575 |
Exceptional items | |||
Finance income and expense | |||
Finance expense | $ 132 | 185 | $ 15 |
Exceptional finance income | $ (88) |
Income tax - Current and deferr
Income tax - Current and deferred tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax: | |||
Current tax for the year | $ 99 | $ 69 | $ 60 |
Adjustments in respect of prior years | 1 | (20) | 9 |
Total current tax | 100 | 49 | 69 |
Deferred tax: | |||
Deferred tax for the year | (134) | (11) | 19 |
Adjustments in respect of prior years | (6) | 17 | (18) |
Total deferred tax | (140) | 6 | 1 |
Income tax (credit)/charge | $ (40) | $ 55 | $ 70 |
Income tax - Reconciliation of
Income tax - Reconciliation of tax expense and accounting loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of tax expense and accounting loss | |||||
Accounting profit | $ 23 | $ (19) | $ (87) | ||
Profit/(loss) before tax multiplied by the standard rate of Luxembourg corporation tax | 6 | (6) | (25) | ||
Tax losses for which no deferred income tax asset was recognized | 1 | 2 | |||
Remeasurement of deferred taxes | (79) | (6) | (6) | ||
Adjustment in respect of prior years | (4) | (3) | (9) | ||
Income subject to state and other local income taxes | 17 | 10 | 12 | ||
Income taxed at rates other than standard tax rates | (19) | 21 | 30 | ||
Non-deductible items | 31 | 41 | 70 | ||
Other | 8 | (3) | (4) | ||
Income tax (credit)/charge | $ (40) | $ 55 | $ 70 | ||
Luxembourg | |||||
Reconciliation of tax expense and accounting loss | |||||
Standard tax rate | 27.08% | 29.22% | 29.22% | ||
United States | |||||
Reconciliation of tax expense and accounting loss | |||||
Standard tax rate | 35.00% | ||||
France | |||||
Reconciliation of tax expense and accounting loss | |||||
Remeasurement of deferred taxes | $ (1) | ||||
Standard tax rate | 28.00% | ||||
Exceptional items | |||||
Reconciliation of tax expense and accounting loss | |||||
Income tax (credit)/charge | $ (138) | $ (49) | $ (36) | ||
Exceptional items | United States | |||||
Reconciliation of tax expense and accounting loss | |||||
Remeasurement of deferred taxes | $ (78) | ||||
Estimate | United States | |||||
Reconciliation of tax expense and accounting loss | |||||
Standard tax rate | 21.00% | ||||
Estimate | France | |||||
Reconciliation of tax expense and accounting loss | |||||
Standard tax rate | 25.00% |
Earnings per share (Details)
Earnings per share (Details) $ / shares in Units, € in Millions, shares in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017EUR (€)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016EUR (€)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015EUR (€)shares | Dec. 31, 2015USD ($)$ / sharesshares | |
Earnings per share | ||||||
Profit/(loss) attributable to ordinary equity holders | € 54 | $ 63 | € (67) | $ (74) | € (140) | $ (157) |
Weighted average number of ordinary shares for basic EPS | shares | 229.6 | 229.6 | 202 | 202 | 202 | 202 |
Profit/(loss) per share | $ / shares | $ 0.27 | $ (0.37) | $ (0.78) |
Employee costs (Details)
Employee costs (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)employee | Dec. 31, 2016USD ($)employee | Dec. 31, 2015USD ($)employee | |
Employee costs | |||
Wages and salaries | $ 1,345 | $ 1,190 | $ 1,034 |
Social security costs | 209 | 167 | 148 |
Defined benefit plan pension costs (Note 19) | 46 | 46 | 50 |
Defined benefit past service credit (Note 19) | (10) | (43) | |
Defined contribution plan pension costs (Note 19) | 35 | 34 | 16 |
Total employee cost | $ 1,625 | $ 1,394 | $ 1,248 |
Production | employee | 20,793 | 20,823 | 17,068 |
Administration | employee | 2,698 | 2,711 | 1,789 |
Total number of employee | employee | 23,491 | 23,534 | 18,857 |
Intangible assets - Reconciliat
Intangible assets - Reconciliation of changes in intangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | |
Reconciliation of changes in intangible assets | |||
Beginning balance | $ 4,115 | $ 1,971 | |
Ending balance | 4,104 | 4,115 | |
Net book value | 4,115 | 1,971 | $ 2,139 |
Goodwill | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | 2,088 | ||
Ending balance | 2,201 | 2,088 | |
Net book value | 2,088 | 2,088 | |
Customer relationships | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | 1,859 | ||
Ending balance | 1,748 | 1,859 | |
Net book value | 1,859 | 1,859 | |
Technology and other | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | 147 | ||
Ending balance | 125 | 147 | |
Net book value | 147 | 147 | |
Computer software | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | 21 | ||
Ending balance | 30 | 21 | |
Net book value | 21 | 21 | |
Cost | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | 4,644 | 2,316 | |
Acquisitions | 2,435 | ||
Additions | 21 | 11 | |
Impairment | (2) | ||
Derecognition of fully amortized assets | (42) | ||
Exchange | 272 | (116) | |
Ending balance | 4,895 | 4,644 | |
Net book value | 4,644 | 2,316 | |
Cost | Goodwill | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | 2,088 | 1,140 | |
Acquisitions | 1,004 | ||
Exchange | 113 | (56) | |
Ending balance | 2,201 | 2,088 | |
Net book value | 2,088 | 1,140 | |
Cost | Customer relationships | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | 2,258 | 926 | |
Acquisitions | 1,385 | ||
Derecognition of fully amortized assets | (42) | ||
Exchange | 139 | (53) | |
Ending balance | 2,355 | 2,258 | |
Net book value | 2,258 | 926 | |
Cost | Technology and other | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | 234 | 197 | |
Acquisitions | 34 | ||
Additions | 5 | 8 | |
Exchange | 12 | (5) | |
Ending balance | 251 | 234 | |
Net book value | 234 | 197 | |
Cost | Computer software | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | 64 | 53 | |
Acquisitions | 12 | ||
Additions | 16 | 3 | |
Impairment | (2) | ||
Exchange | 8 | (2) | |
Ending balance | 88 | 64 | |
Net book value | 64 | 53 | |
Amortization | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | (529) | (347) | |
Charge for the year | (264) | (191) | |
Derecognition of fully amortized assets | 42 | ||
Exchange | (40) | 9 | |
Ending balance | (791) | (529) | |
Net book value | (529) | (347) | |
Amortization | Customer relationships | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | (399) | (254) | |
Charge for the year | (225) | (159) | |
Derecognition of fully amortized assets | 42 | ||
Exchange | (25) | 14 | |
Ending balance | (607) | (399) | |
Net book value | (399) | (254) | |
Amortization | Technology and other | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | (87) | (56) | |
Charge for the year | (31) | (25) | |
Exchange | (8) | (6) | |
Ending balance | (126) | (87) | |
Net book value | (87) | (56) | |
Amortization | Computer software | |||
Reconciliation of changes in intangible assets | |||
Beginning balance | (43) | (37) | |
Charge for the year | (8) | (7) | |
Exchange | (7) | 1 | |
Ending balance | (58) | (43) | |
Net book value | (43) | $ (37) | |
Glass Packaging North America | Customer relationships | |||
Reconciliation of changes in intangible assets | |||
Ending balance | 0 | ||
Net book value | $ 0 |
Intangible assets - Summary of
Intangible assets - Summary of goodwill allocation (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill | ||
Goodwill | $ 2,201 | $ 2,088 |
Metal Europe | ||
Goodwill | ||
Goodwill | 320 | 282 |
Metal Americas | ||
Goodwill | ||
Goodwill | 29 | 30 |
Beverage Europe | ||
Goodwill | ||
Goodwill | 604 | 534 |
Beverage Americas | ||
Goodwill | ||
Goodwill | 437 | 436 |
Glass Packaging Europe | ||
Goodwill | ||
Goodwill | 65 | 60 |
Glass Packaging North America | ||
Goodwill | ||
Goodwill | $ 746 | $ 746 |
Intangible assets - Sensitivity
Intangible assets - Sensitivity analysis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Recoverable amount and carrying amount | ||
2016 budget period | 2 years | |
2017 budget extended period | 4 years | |
2016 budget extended period | 3 years | |
Percentage variation increase (decrease) applied to terminal growth rate assumption | (0.50%) | |
Percentage variation increase (decrease) applied to discount rate assumption | 0.50% | |
Carrying amount of goodwill | $ 2,201 | $ 2,088 |
Metal Europe | ||
Recoverable amount and carrying amount | ||
Carrying amount of goodwill | 320 | 282 |
Excess of recoverable amount | $ 3,104 | $ 2,296 |
Pretax discount rate applied | 7.30% | 8.30% |
Growth rate for terminal value | 1.50% | 1.50% |
Metal Americas | ||
Recoverable amount and carrying amount | ||
Carrying amount of goodwill | $ 29 | $ 30 |
Excess of recoverable amount | $ 451 | $ 392 |
Pretax discount rate applied | 8.30% | 9.80% |
Growth rate for terminal value | 1.50% | 2.00% |
Beverage Europe | ||
Recoverable amount and carrying amount | ||
Carrying amount of goodwill | $ 604 | $ 534 |
Excess of recoverable amount | $ 1,650 | $ 613 |
Pretax discount rate applied | 7.40% | 8.90% |
Growth rate for terminal value | 1.50% | 1.50% |
Beverage Americas | ||
Recoverable amount and carrying amount | ||
Carrying amount of goodwill | $ 437 | $ 436 |
Excess of recoverable amount | $ 786 | $ 289 |
Pretax discount rate applied | 9.60% | 11.90% |
Growth rate for terminal value | 1.50% | 2.00% |
Glass Packaging Europe | ||
Recoverable amount and carrying amount | ||
Carrying amount of goodwill | $ 65 | $ 60 |
Excess of recoverable amount | $ 2,907 | $ 2,186 |
Pretax discount rate applied | 8.20% | 8.70% |
Growth rate for terminal value | 1.50% | 1.50% |
Glass Packaging North America | ||
Recoverable amount and carrying amount | ||
Carrying amount of goodwill | $ 746 | $ 746 |
Excess of recoverable amount | $ 859 | $ 1,718 |
Pretax discount rate applied | 9.10% | 10.30% |
Growth rate for terminal value | 1.50% | 2.00% |
Property, plant and equipment -
Property, plant and equipment - Net carrying amount (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, plant and equipment | |||
Beginning balance | $ 3,068 | $ 2,512 | $ 2,699 |
Ending balance | 3,368 | 3,068 | 2,512 |
Depreciation - Cost of sales | 415 | 363 | 321 |
Depreciation - Selling, general and administration expenses | 8 | 6 | 6 |
Construction in progress | 241 | 120 | |
Borrowing costs capitalised | 0 | 0 | |
Land and buildings | |||
Property, plant and equipment | |||
Beginning balance | 783 | ||
Ending balance | 836 | 783 | |
Plant, machinery and other | |||
Property, plant and equipment | |||
Beginning balance | 2,246 | ||
Ending balance | 2,486 | 2,246 | |
Office equipment and vehicles | |||
Property, plant and equipment | |||
Beginning balance | 39 | ||
Ending balance | 46 | 39 | |
Land | |||
Property, plant and equipment | |||
Land | 225 | 206 | |
Capital leased assets | |||
Property, plant and equipment | |||
Charge for the year | (1) | (1) | (1) |
Interest expense on finance leases | 0 | 0 | 0 |
Finance lease liabilities | 12 | 11 | |
Cost | |||
Property, plant and equipment | |||
Beginning balance | 4,588 | 3,993 | |
Acquisitions | 702 | ||
Additions | 522 | 354 | |
Impairment | (54) | (9) | |
Disposals | (174) | (229) | |
Transfers | 9 | ||
Exchange | 416 | (223) | |
Ending balance | 5,307 | 4,588 | 3,993 |
Cost | Land and buildings | |||
Property, plant and equipment | |||
Beginning balance | 983 | 829 | |
Acquisitions | 190 | ||
Additions | 8 | 3 | |
Disposals | (4) | (7) | |
Transfers | 11 | 14 | |
Exchange | 96 | (46) | |
Ending balance | 1,094 | 983 | 829 |
Cost | Plant, machinery and other | |||
Property, plant and equipment | |||
Beginning balance | 3,541 | 3,108 | |
Acquisitions | 512 | ||
Additions | 508 | 345 | |
Impairment | (54) | (9) | |
Disposals | (160) | (211) | |
Transfers | (9) | (32) | |
Exchange | 316 | (172) | |
Ending balance | 4,142 | 3,541 | 3,108 |
Cost | Plant, machinery and other | Exceptional items | |||
Property, plant and equipment | |||
Impairment | (54) | (9) | |
Cost | Plant, machinery and other | Metal Packaging Europe | Exceptional items | |||
Property, plant and equipment | |||
Impairment | (16) | (6) | |
Cost | Plant, machinery and other | Glass Packaging North America | Exceptional items | |||
Property, plant and equipment | |||
Impairment | (38) | 0 | |
Cost | Office equipment and vehicles | |||
Property, plant and equipment | |||
Beginning balance | 64 | 56 | |
Additions | 6 | 6 | |
Disposals | (10) | (11) | |
Transfers | 7 | 18 | |
Exchange | 4 | (5) | |
Ending balance | 71 | 64 | 56 |
Depreciation | |||
Property, plant and equipment | |||
Beginning balance | (1,520) | (1,480) | |
Charge for the year | (423) | (370) | |
Disposals | 168 | 225 | |
Exchange | (164) | 105 | |
Ending balance | (1,939) | (1,520) | (1,480) |
Depreciation | Land and buildings | |||
Property, plant and equipment | |||
Beginning balance | (200) | (189) | |
Charge for the year | (35) | (28) | |
Disposals | 2 | 4 | |
Transfers | 1 | ||
Exchange | (26) | 13 | |
Ending balance | (258) | (200) | (189) |
Depreciation | Plant, machinery and other | |||
Property, plant and equipment | |||
Beginning balance | (1,295) | (1,264) | |
Charge for the year | (378) | (332) | |
Disposals | 156 | 211 | |
Transfers | (2) | ||
Exchange | (137) | 90 | |
Ending balance | (1,656) | (1,295) | (1,264) |
Depreciation | Office equipment and vehicles | |||
Property, plant and equipment | |||
Beginning balance | (25) | (27) | |
Charge for the year | (10) | (10) | |
Disposals | 10 | 10 | |
Transfers | 1 | ||
Exchange | (1) | 2 | |
Ending balance | $ (25) | $ (25) | $ (27) |
Property, plant and equipment79
Property, plant and equipment - Operating leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, plant and equipment | |||
Operating lease commitments | $ 38 | $ 43 | $ 38 |
Plant and machinery | |||
Property, plant and equipment | |||
Operating lease commitments | 6 | 6 | 6 |
Land and buildings | |||
Property, plant and equipment | |||
Operating lease commitments | 21 | 27 | 23 |
Office equipment and vehicles | |||
Property, plant and equipment | |||
Operating lease commitments | $ 11 | $ 10 | $ 9 |
Property, plant and equipment80
Property, plant and equipment - Commitments under non-cancellable operating leases (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, plant and equipment | |||
Total commitments under noncancellable operating leases | $ 192 | $ 177 | $ 177 |
Not later than one year | |||
Property, plant and equipment | |||
Total commitments under noncancellable operating leases | 35 | 32 | 29 |
Later than one year and not later than five years | |||
Property, plant and equipment | |||
Total commitments under noncancellable operating leases | 77 | 73 | 75 |
Later than five years | |||
Property, plant and equipment | |||
Total commitments under noncancellable operating leases | $ 80 | $ 72 | $ 73 |
Property, plant and equipment81
Property, plant and equipment - Capital commitments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, plant and equipment | |||
Contracted for | $ 101 | $ 116 | $ 33 |
Not contracted for | 14 | 20 | 7 |
Total | $ 115 | $ 136 | $ 40 |
Other non-current assets - Join
Other non-current assets - Joint ventures (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Other non-current assets | ||||
Other non-current assets | $ 25 | $ 21 | $ 15 | $ 12 |
Joint ventures | $ 10 | $ 6 |
Deferred income tax - Movement
Deferred income tax - Movement in deferred tax assets and liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred income tax | |||
Deferred tax assets at beginning of year | $ 469 | $ 432 | |
Acquisition | 81 | ||
(Charged)/credited to the income statement | (67) | (46) | |
Credited/(charged) to other comprehensive income | (6) | 20 | |
Reclassification | 4 | 3 | |
Exchange | 28 | (21) | |
Deferred tax assets at end of year | 428 | 469 | $ 432 |
Deferred tax liabilities at beginning of year | (928) | (740) | |
Acquisition | (243) | ||
(Charged)/credited to the income statement | 207 | 40 | |
Credited/(charged) to other comprehensive income | 1 | (6) | |
Reclassification | (4) | (3) | |
Exchange | (66) | 24 | |
Deferred tax liabilities at end of year | (790) | (928) | (740) |
Net deferred tax liabilities at beginning of year | (459) | (308) | |
Acquisition | (162) | ||
(Charged)/credited to the income statement | 140 | (6) | (1) |
(Charged)/credited to other comprehensive income | (5) | 14 | |
Exchange | (38) | 3 | |
Net deferred tax liabilities at end of year | $ (362) | $ (459) | $ (308) |
Deferred income tax - Component
Deferred income tax - Components of deferred tax assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred income tax assets and liabilities | ||||
Deferred tax assets, gross | $ 428 | $ 469 | $ 432 | |
Available for offset | (207) | (196) | ||
Deferred tax assets | 221 | 273 | 194 | $ 223 |
Deferred tax liabilities, gross | (790) | (928) | (740) | |
Available for offset | 207 | 196 | ||
Deferred tax liabilities | (583) | (732) | $ (502) | $ (510) |
Tax losses | ||||
Deferred income tax assets and liabilities | ||||
Deferred tax assets, gross | 34 | 34 | ||
Employee benefit obligations | ||||
Deferred income tax assets and liabilities | ||||
Deferred tax assets, gross | 187 | 181 | ||
Depreciation timing differences | ||||
Deferred income tax assets and liabilities | ||||
Deferred tax assets, gross | 90 | 86 | ||
Provisions | ||||
Deferred income tax assets and liabilities | ||||
Deferred tax assets, gross | 70 | 99 | ||
Other | ||||
Deferred income tax assets and liabilities | ||||
Deferred tax assets, gross | 47 | 69 | ||
Deferred tax liabilities, gross | (26) | (42) | ||
Intangible assets | ||||
Deferred income tax assets and liabilities | ||||
Deferred tax liabilities, gross | (395) | (508) | ||
Accelerated depreciation and other fair value adjustments | ||||
Deferred income tax assets and liabilities | ||||
Deferred tax liabilities, gross | $ (369) | $ (378) |
Deferred income tax - Tax (char
Deferred income tax - Tax (charge)/credit recognized in income statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax charges and credits | |||
Tax (charge)/credit recognized in the income statement | $ 140 | $ (6) | $ (1) |
Deferred tax assets not recognized in respect of tax losses | 62 | 45 | |
Tax losses | 373 | 235 | |
Deferred tax assets not recognized in respect of capital losses | 50 | 74 | |
Capital losses | 239 | 212 | |
Tax losses | |||
Tax charges and credits | |||
Tax (charge)/credit recognized in the income statement | (2) | (3) | (20) |
Employee benefit obligations | |||
Tax charges and credits | |||
Tax (charge)/credit recognized in the income statement | (21) | (13) | 14 |
Depreciation timing differences | |||
Tax charges and credits | |||
Tax (charge)/credit recognized in the income statement | (6) | (13) | (2) |
Provisions | |||
Tax charges and credits | |||
Tax (charge)/credit recognized in the income statement | (26) | (8) | |
Temporary differences associated with investments in subsidiaries | 0 | ||
Other deferred tax assets | |||
Tax charges and credits | |||
Tax (charge)/credit recognized in the income statement | (12) | (17) | (8) |
Intangible assets | |||
Tax charges and credits | |||
Tax (charge)/credit recognized in the income statement | 155 | 42 | 33 |
Accelerated depreciation and other fair value adjustments | |||
Tax charges and credits | |||
Tax (charge)/credit recognized in the income statement | 29 | 7 | 2 |
Other deferred tax liabilities | |||
Tax charges and credits | |||
Tax (charge)/credit recognized in the income statement | $ 23 | $ (9) | $ (12) |
Inventories - Current (Details)
Inventories - Current (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories | ||||
Raw materials and consumables | $ 369 | $ 305 | ||
Mould parts | 52 | 46 | ||
Work-in-progress | 85 | 72 | ||
Finished goods | 847 | 763 | ||
Total current inventories | $ 1,353 | $ 1,186 | $ 898 | $ 935 |
Trade and other receivables - C
Trade and other receivables - Components (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Trade and other receivables | ||||
Trade receivables | $ 1,015 | $ 970 | ||
Other receivables and prepayments | 259 | 257 | ||
Total trade and other current receivables | $ 1,274 | $ 1,227 | $ 709 | $ 840 |
Trade and other receivables - M
Trade and other receivables - Movement in the provision for impairment of trade receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movements on the provision for impairment of trade receivables | |||
Balance at beginning of year | $ 15 | $ 15 | $ 17 |
Provision for receivable impairment | 6 | 1 | 2 |
Receivables written off during the year as uncollectible | (1) | (2) | |
Exchange | 2 | (2) | |
Balance at end of year | $ 23 | $ 15 | $ 15 |
Trade and other receivables - T
Trade and other receivables - Trade receivables past due but not impaired and receivables factoring and related programs (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets that are past due | ||
Trade receivables | $ 1,015 | $ 970 |
Trade receivables past due but not impaired | ||
Disclosure of financial assets that are past due | ||
Trade receivables | 62 | 48 |
Up to three months past due | Trade receivables past due but not impaired | ||
Disclosure of financial assets that are past due | ||
Trade receivables | 46 | 42 |
Three to six months past due | Trade receivables past due but not impaired | ||
Disclosure of financial assets that are past due | ||
Trade receivables | 5 | 4 |
Over six months past due | Trade receivables past due but not impaired | ||
Disclosure of financial assets that are past due | ||
Trade receivables | $ 11 | $ 2 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash, cash equivalents and restricted cash | ||||
Cash at bank and in hand | $ 641 | $ 768 | ||
Short term bank deposits | 130 | 17 | ||
Restricted cash | 13 | 28 | ||
Total cash and cash equivalents | $ 784 | $ 813 | $ 602 | $ 503 |
Issued capital and reserves - S
Issued capital and reserves - Share capital (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2017€ / sharesshares | Dec. 31, 2017€ / sharesshares | Dec. 31, 2017USD ($)shares | Mar. 20, 2017shares | Dec. 31, 2016€ / shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Issued capital and reserves | ||||||||
Ordinary shares issued | 236,300,000 | 11,100,000 | ||||||
Cancellation of ordinary shares | (11,111,200) | (11,100,000) | ||||||
Share capital | $ | $ 23 | |||||||
Par value per share | € / shares | € 0.01 | |||||||
Class A common shares | ||||||||
Issued capital and reserves | ||||||||
Ordinary shares issued | 18,600,000 | 18,630,000 | ||||||
Share capital | $ | ||||||||
Par value per share | € / shares | € 0.01 | € 0.01 | ||||||
Class B common shares | ||||||||
Issued capital and reserves | ||||||||
Ordinary shares issued | 217,696,000 | 217,700,000 | ||||||
Share capital | $ | $ 23 | |||||||
Par value per share | € / shares | € 0.10 | € 0.10 |
Issued capital and reserves -92
Issued capital and reserves - Share activity (Details) € / shares in Units, $ / shares in Units, € in Millions, $ in Millions | Mar. 20, 2017USD ($)$ / sharesshares | Sep. 21, 2016USD ($) | Mar. 31, 2017EUR (€)€ / sharesshares | Dec. 31, 2017€ / sharesshares | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($)shares | Mar. 31, 2017USD ($)shares | Dec. 31, 2016EUR (€)€ / sharesshares | Dec. 31, 2016USD ($)shares | Sep. 21, 2016€ / shares | Sep. 21, 2016USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Issued capital and reserves | |||||||||||||
Authorized share capital | € | € 55 | ||||||||||||
Par value per share | € / shares | € 0.01 | ||||||||||||
Cancellation of ordinary shares | shares | 11,111,200 | 11,100,000 | |||||||||||
Ordinary shares issued | shares | 236,300,000 | 11,100,000 | 11,100,000 | ||||||||||
Related party borrowings | $ 0 | € 709 | $ 709 | ||||||||||
Share capital | $ | 23 | ||||||||||||
Share premium | $ | 1,290 | 274 | $ 571 | $ 571 | |||||||||
Contribution from parent | $ | $ 485 | $ 485 | |||||||||||
Borrowings gross | $ | $ 8,380 | 8,674 | |||||||||||
8.625% Senior PIK Notes due 2019 | |||||||||||||
Issued capital and reserves | |||||||||||||
Borrowings gross | $ | $ 841 | ||||||||||||
Stated interest rate | 8.625% | 8.625% | |||||||||||
8.375% Senior PIK Notes due 2019 | |||||||||||||
Issued capital and reserves | |||||||||||||
Borrowings gross | € | € 295 | ||||||||||||
Stated interest rate | 8.375% | 8.375% | |||||||||||
ARD Group Finance Holding S.A. | |||||||||||||
Issued capital and reserves | |||||||||||||
Par value per share | € / shares | € 0.01 | ||||||||||||
Ordinary shares issued | shares | 1,111,200 | ||||||||||||
Related party borrowings | $ 716 | € 716 | |||||||||||
Share premium | $ | $ 7 | ||||||||||||
Class A common shares | |||||||||||||
Issued capital and reserves | |||||||||||||
Shares authorized | shares | 1,000,000,000 | ||||||||||||
Par value per share | € / shares | € 0.01 | € 0.01 | |||||||||||
Ordinary shares issued | shares | 18,630,000 | 18,600,000 | |||||||||||
Share capital | $ | |||||||||||||
Class A common shares | IPO | |||||||||||||
Issued capital and reserves | |||||||||||||
Ordinary shares issued | shares | 18,630,000 | ||||||||||||
Price per share | $ / shares | $ 19 | ||||||||||||
Net proceeds of IPO | $ | $ 323 | ||||||||||||
Underwriting discounts | $ | 21 | ||||||||||||
Transaction costs | $ | $ 10 | ||||||||||||
Class B common shares | |||||||||||||
Issued capital and reserves | |||||||||||||
Shares authorized | shares | 450,000,000 | ||||||||||||
Par value per share | € / shares | € 0.10 | € 0.10 | |||||||||||
Ordinary shares issued | shares | 217,700,000 | 217,696,000 | |||||||||||
Number of pro rata shares issued in share reorganization at equivalent total par value | shares | 1,111,120 | ||||||||||||
Number of additional pro-rata shares issued in share reorganization at no consideration. | shares | 216,498,726 | ||||||||||||
Share capital | $ | $ 23 | ||||||||||||
Class B common shares | ARD Group Finance Holding S.A. | |||||||||||||
Issued capital and reserves | |||||||||||||
Ordinary shares issued | shares | 86,154 | 86,154 |
Financial risk factors - Capita
Financial risk factors - Capital structure and interest rate risk (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015 | Dec. 31, 2016USD ($) | |
Financial risk factors | ||||
Weighted average interest rate | 4.90% | 5.20% | 6.20% | |
Related party borrowings | $ 0 | € 709 | $ 709 | |
Capital structure and risk | ||||
Financial risk factors | ||||
Ratio of net debt to Adjusted EBITDA | 5.19 | 5.98 | 6.12 | |
Interest rate risk | ||||
Financial risk factors | ||||
Related party borrowings | $ 0 | 709 | ||
Fixed interest rate | Interest rate risk | ||||
Financial risk factors | ||||
Percentage of fixed rate borrowings | 91.70% | 73.80% | ||
Weighted average interest rate | 5.50% | 5.40% | 6.20% | |
Variable interest rate | Interest rate risk | ||||
Financial risk factors | ||||
Percentage increase in currency exchange rate | 1.00% | |||
Increase in interest payable | $ 7 | $ 22 |
Financial risk factors - Curren
Financial risk factors - Currency exchange and commodity price risk (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017USD ($)countryitem | Dec. 31, 2016USD ($) | |
Currency exchange risk | ||||
Financial risk factors | ||||
Number of countries in which the Group operates | country | 22 | |||
Number of continents in which the Group operates | item | 5 | |||
Percentage increase in currency exchange rate | 1.00% | |||
Increase in shareholders' equity | $ | $ 4 | $ 7 | ||
Commodity price risk | ||||
Financial risk factors | ||||
Percentage of energy costs relating to gas | 50.00% | |||
Forward contracts | Commodity price risk | ||||
Financial risk factors | ||||
Contractual positions in tranches | 10.00% | |||
Forward contracts | Commodity price risk | Estimate | ||||
Financial risk factors | ||||
Energy risk revenue | 73.00% | 72.00% |
Financial risk factors - Credit
Financial risk factors - Credit risk (Details) - Credit risk | 12 Months Ended | ||
Dec. 31, 2017customeritem | Dec. 31, 2016 | Dec. 31, 2015 | |
Top ten customers | |||
Financial risk factors | |||
Largest customers | customer | 10 | ||
Total revenues | 36.00% | 33.00% | 32.00% |
Minimum | |||
Financial risk factors | |||
Credit rating agencies | item | 2 |
Financial assets and liabilit96
Financial assets and liabilities - Net external debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets and liabilities | ||||
Loan notes | $ 8,296 | $ 7,919 | ||
Term loan | 661 | |||
Other borrowings | 12 | 10 | ||
Net borrowings | 8,308 | 8,590 | ||
Cash and cash equivalents | 784 | 813 | $ 602 | $ 503 |
Derivative financial instruments used to hedge foreign currency and interest rate risk | 301 | 0 | ||
Derivative financial instruments used to hedge foreign currency and interest rate risk | (7) | (131) | $ (49) | |
Net debt | $ 7,825 | $ 7,646 | $ 6,370 |
Financial assets and liabilit97
Financial assets and liabilities - Net debt and available liquidity (Details) € in Millions, £ in Millions, $ in Millions | Dec. 31, 2017GBP (£) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 07, 2017USD ($) | Jun. 12, 2017 | Apr. 10, 2017 | Mar. 09, 2017 | Mar. 08, 2017 | Mar. 02, 2017 | Jan. 30, 2017 | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Nov. 15, 2016 | Sep. 16, 2016 | May 16, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Financial assets and liabilities | |||||||||||||||||
Amount drawn | $ 8,380 | $ 8,674 | |||||||||||||||
Undrawn amount | 814 | 264 | |||||||||||||||
Deferred debt issue costs and bond premium/discount | (72) | (84) | |||||||||||||||
Net borrowings | 8,308 | 8,590 | |||||||||||||||
Cash and cash equivalents | (784) | (813) | $ (602) | $ (503) | |||||||||||||
Derivative financial instruments used to hedge foreign currency and interest rate risk | 301 | 0 | |||||||||||||||
Derivative financial instruments used to hedge foreign currency and interest rate risk | (7) | (131) | $ (49) | ||||||||||||||
Net debt | 7,825 | 7,646 | $ 6,370 | ||||||||||||||
Available Liquidity | 1,598 | 1,077 | |||||||||||||||
2.750% Senior Secured Notes due 2024 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | € | € 750 | ||||||||||||||||
Amount drawn | € 750 | $ 899 | |||||||||||||||
Stated interest rate | 2.75% | 2.75% | 2.75% | 2.75% | |||||||||||||
4.250% First Priority Senior Secured Notes due 2022 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | € | € 1,155 | ||||||||||||||||
Amount drawn | € 1,155 | $ 1,217 | |||||||||||||||
Stated interest rate | 4.25% | 4.25% | 4.25% | ||||||||||||||
4.625% Senior Secured Notes due 2023 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | $ 1,000 | $ 1,000 | |||||||||||||||
Amount drawn | $ 1,000 | $ 1,000 | |||||||||||||||
Stated interest rate | 4.625% | 4.625% | 4.625% | 4.625% | 4.625% | 4.625% | |||||||||||
4.125% Senior Secured Notes due 2023 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | € | € 440 | € 440 | |||||||||||||||
Amount drawn | € 440 | $ 528 | € 440 | $ 464 | |||||||||||||
Stated interest rate | 4.125% | 4.125% | 4.125% | 4.125% | 4.125% | 4.125% | |||||||||||
First Priority Senior Secured Floating Rate Notes due 2019 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | $ 1,110 | ||||||||||||||||
Amount drawn | 1,110 | ||||||||||||||||
Senior Secured Floating Rate Notes due 2021 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | 500 | ||||||||||||||||
Amount drawn | 500 | ||||||||||||||||
4.250% Senior Secured Notes due 2022 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | $ 715 | ||||||||||||||||
Amount drawn | $ 715 | ||||||||||||||||
Stated interest rate | 4.25% | 4.25% | 4.25% | 4.25% | |||||||||||||
4.750% Senior Notes due 2027 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | £ | £ 400 | ||||||||||||||||
Amount drawn | £ 400 | $ 541 | |||||||||||||||
Stated interest rate | 4.75% | 4.75% | 4.75% | 4.75% | |||||||||||||
6.000% Senior Notes due 2025 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | $ 1,700 | ||||||||||||||||
Amount drawn | 1,700 | ||||||||||||||||
Amount drawn | $ 1,696 | ||||||||||||||||
Stated interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||||||||||||
6.250% Senior Notes due 2019 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | 415 | ||||||||||||||||
Amount drawn | $ 415 | ||||||||||||||||
Stated interest rate | 6.25% | 6.25% | 6.25% | ||||||||||||||
6.750% Senior Notes due 2021 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | $ 415 | ||||||||||||||||
Amount drawn | $ 415 | ||||||||||||||||
Stated interest rate | 6.75% | 6.75% | 6.75% | ||||||||||||||
7.250% Senior Notes due 2024 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | $ 1,650 | $ 1,650 | |||||||||||||||
Amount drawn | $ 1,650 | $ 1,650 | |||||||||||||||
Stated interest rate | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% | |||||||||||
6.750% Senior Notes due 2024 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | € | € 750 | € 750 | |||||||||||||||
Amount drawn | € 750 | $ 899 | € 750 | $ 790 | |||||||||||||
Stated interest rate | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | |||||||||||
6.000% Senior Notes due 2021 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | $ 440 | $ 440 | |||||||||||||||
Amount drawn | $ 440 | $ 440 | |||||||||||||||
Stated interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||||||||||||
Term Loan B Facility due 2021 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable | $ 663 | ||||||||||||||||
Amount drawn | 663 | ||||||||||||||||
Asset-based revolving credit facility | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable | $ 813 | $ 850 | |||||||||||||||
Undrawn amount | 813 | ||||||||||||||||
HSBC Securitization Program | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable | € | € 102 | ||||||||||||||||
Undrawn amount | 108 | ||||||||||||||||
Bank of America Facility | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable | 155 | ||||||||||||||||
Undrawn amount | 155 | ||||||||||||||||
Finance Lease Obligations | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Amount drawn | € 7 | 8 | 7 | 7 | |||||||||||||
Other borrowings | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable | € | 4 | 4 | |||||||||||||||
Amount drawn | € 3 | 4 | € 3 | 3 | |||||||||||||
Undrawn amount | $ 1 | $ 1 | |||||||||||||||
8.375% Senior PIK Notes due 2019 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Stated interest rate | 8.375% | ||||||||||||||||
8.625% Senior PIK Notes due 2019 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Stated interest rate | 8.625% | ||||||||||||||||
9.250% Senior Notes due 2020 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Stated interest rate | 9.25% | ||||||||||||||||
9.125% Senior Notes due 2020 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Stated interest rate | 9.125% | ||||||||||||||||
7.000% Senior Notes due 2020 | |||||||||||||||||
Financial assets and liabilities | |||||||||||||||||
Maximum amount drawable - Notes | $ 150 | ||||||||||||||||
Stated interest rate | 7.00% | 7.00% |
Financial assets and liabilit98
Financial assets and liabilities - Movement in net debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial assets and liabilities | |||
Net (increase)/decrease) in cash and cash equivalents per consolidated statements of cash flows | $ (30) | $ 211 | |
Increase in net borrowings and derivative financial instruments | 209 | 1,065 | |
Increase in net debt | 179 | 1,276 | |
Net debt, beginning balance | 7,646 | 6,370 | |
Net debt, ending balance | 7,825 | 7,646 | $ 6,370 |
Proceeds from borrowings | 3,730 | 4,469 | |
Repayments of borrowings | 4,385 | 2,604 | $ 221 |
Fair value gain (loss) on derivative financial instruments used to hedge foreign currency and interest rate risk | (400) | 100 | |
Gain (loss) on foreign exchange on borrowings | (400) | 100 | |
Net gain (loss) on foreign exchange on borrowings impacting net debt | $ (800) | $ 200 |
Financial assets and liabilit99
Financial assets and liabilities - Maturity analysis (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets and liabilities | ||
Borrowings | $ 8,308 | $ 8,590 |
Not later than one year | ||
Financial assets and liabilities | ||
Borrowings | 2 | 8 |
Between one and two years | ||
Financial assets and liabilities | ||
Borrowings | 1 | 8 |
Between two and five years | ||
Financial assets and liabilities | ||
Borrowings | 1,154 | 3,512 |
Later than five years | ||
Financial assets and liabilities | ||
Borrowings | $ 7,151 | $ 5,062 |
Financial assets and liabili100
Financial assets and liabilities - Contracted undiscounted cash flows (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Not later than one year | ||
Financial assets and liabilities | ||
Borrowings | $ 456 | $ 471 |
Derivative financial instruments | 2 | 8 |
Trade and other payables | 1,988 | 1,622 |
Between one and two years | ||
Financial assets and liabilities | ||
Borrowings | 455 | 471 |
Derivative financial instruments | 84 | |
Between two and five years | ||
Financial assets and liabilities | ||
Borrowings | 2,480 | 4,638 |
Derivative financial instruments | 66 | |
Later than five years | ||
Financial assets and liabilities | ||
Borrowings | 7,877 | $ 5,628 |
Derivative financial instruments | $ 151 |
Financial assets and liabili101
Financial assets and liabilities - Carrying amount and fair value of borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets and liabilities | ||
Amount drawn | $ 8,380 | $ 8,674 |
Deferred debt issue costs and bond premium/discount | (72) | (84) |
Net borrowings | 8,308 | 8,590 |
Not At Fair Value | ||
Financial assets and liabilities | ||
Amount drawn | 8,380 | 8,674 |
Deferred debt issue costs and bond premium/discount | (72) | (84) |
Net borrowings | 8,308 | 8,590 |
Not At Fair Value | Loan notes | ||
Financial assets and liabilities | ||
Amount drawn | 8,368 | 8,001 |
Deferred debt issue costs and bond premium/discount | (72) | (82) |
Net borrowings | 8,296 | 7,919 |
Not At Fair Value | Term loan | ||
Financial assets and liabilities | ||
Amount drawn | 663 | |
Deferred debt issue costs and bond premium/discount | (2) | |
Net borrowings | 661 | |
Not At Fair Value | Finance leases | ||
Financial assets and liabilities | ||
Amount drawn | 8 | 7 |
Net borrowings | 8 | 7 |
Not At Fair Value | Bank loans, overdrafts and revolving credit facilities | ||
Financial assets and liabilities | ||
Amount drawn | 4 | 3 |
Net borrowings | 4 | 3 |
Fair Value | ||
Financial assets and liabilities | ||
Fair value | 8,808 | 8,919 |
Fair Value | Term loan | ||
Financial assets and liabilities | ||
Fair value | 669 | |
Fair Value | Finance leases | ||
Financial assets and liabilities | ||
Fair value | 8 | 7 |
Fair Value | Bank loans, overdrafts and revolving credit facilities | ||
Financial assets and liabilities | ||
Fair value | 4 | 3 |
Fair Value | Level 2 | Loan notes | ||
Financial assets and liabilities | ||
Fair value | $ 8,796 | $ 8,240 |
Financial assets and liabili102
Financial assets and liabilities - Financing activity (Details) € in Millions, £ in Millions, $ in Millions | Dec. 07, 2017USD ($) | Jun. 12, 2017USD ($) | Apr. 10, 2017USD ($) | Mar. 09, 2017EUR (€) | Mar. 09, 2017USD ($) | Mar. 02, 2017USD ($) | Jan. 30, 2017USD ($) | Nov. 15, 2016USD ($) | Oct. 03, 2016 | Sep. 16, 2016EUR (€) | Sep. 16, 2016USD ($) | May 16, 2016EUR (€) | May 16, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Jun. 12, 2017GBP (£) | Mar. 08, 2017EUR (€) | Mar. 08, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | May 16, 2016USD ($) |
Financial assets and liabilities | ||||||||||||||||||||||||||
Issuance of notes | $ 8,296 | $ 7,919 | ||||||||||||||||||||||||
Repayment of principal amount outstanding | $ 4,385 | $ 2,604 | $ 221 | |||||||||||||||||||||||
Borrowing capacity available | $ 814 | 264 | ||||||||||||||||||||||||
6.000% Senior Notes due 2025 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Issuance of notes | $ 1,000 | $ 700 | ||||||||||||||||||||||||
Stated interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||||||||||||||||||||
Aggregate principal amount | $ 1,700 | |||||||||||||||||||||||||
First Priority Senior Secured Floating Rate Notes due 2019 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Repayment of principal amount outstanding | $ 265 | $ 845 | ||||||||||||||||||||||||
Aggregate principal amount | $ 1,110 | |||||||||||||||||||||||||
6.250% Senior Notes due 2019 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Stated interest rate | 6.25% | 6.25% | 6.25% | |||||||||||||||||||||||
Repayment of principal amount outstanding | $ 415 | |||||||||||||||||||||||||
Aggregate principal amount | $ 415 | |||||||||||||||||||||||||
2.750% Senior Secured Notes due 2024 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Issuance of notes | € | € 750 | |||||||||||||||||||||||||
Stated interest rate | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | |||||||||||||||||||||
Aggregate principal amount | € | € 750 | |||||||||||||||||||||||||
4.250% Senior Secured Notes due 2022 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Issuance of notes | $ 715 | |||||||||||||||||||||||||
Stated interest rate | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | |||||||||||||||||||||
Aggregate principal amount | $ 715 | |||||||||||||||||||||||||
4.250% First Priority Senior Secured Notes due 2022 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Stated interest rate | 4.25% | 4.25% | 4.25% | 4.25% | ||||||||||||||||||||||
Repayment of principal amount outstanding | € | € 750 | |||||||||||||||||||||||||
Aggregate principal amount | € | € 1,155 | |||||||||||||||||||||||||
Term Loan B Facility due 2019 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Repayment of principal amount outstanding | $ 663 | |||||||||||||||||||||||||
Debt instrument extended term | 2 years | |||||||||||||||||||||||||
6.750% Senior Notes due 2021 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Stated interest rate | 6.75% | 6.75% | 6.75% | |||||||||||||||||||||||
Repayment of principal amount outstanding | $ 415 | |||||||||||||||||||||||||
Aggregate principal amount | $ 415 | |||||||||||||||||||||||||
4.750% Senior Notes due 2027 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Issuance of notes | £ | £ 400 | |||||||||||||||||||||||||
Stated interest rate | 4.75% | 4.75% | 4.75% | 4.75% | ||||||||||||||||||||||
Aggregate principal amount | £ | £ 400 | |||||||||||||||||||||||||
Senior Secured Floating Rate Notes due 2021 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Issuance of notes | $ 500 | |||||||||||||||||||||||||
Repayment of principal amount outstanding | $ 500 | |||||||||||||||||||||||||
Aggregate principal amount | $ 500 | |||||||||||||||||||||||||
LIBOR | LIBOR | LIBOR | ||||||||||||||||||||||||
Variable Interest rate | 3.25% | 3.25% | ||||||||||||||||||||||||
Asset-based revolving credit facility | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Facility term | 5 years | |||||||||||||||||||||||||
Maximum borrowing capacity | $ 850 | $ 813 | ||||||||||||||||||||||||
Borrowing capacity available | $ 813 | |||||||||||||||||||||||||
4.625% Senior Secured Notes due 2023 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Issuance of notes | $ 1,000 | |||||||||||||||||||||||||
Stated interest rate | 4.625% | 4.625% | 4.625% | 4.625% | 4.625% | 4.625% | 4.625% | |||||||||||||||||||
Aggregate principal amount | $ 1,000 | $ 1,000 | ||||||||||||||||||||||||
4.125% Senior Secured Notes due 2023 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Issuance of notes | € | € 440 | |||||||||||||||||||||||||
Stated interest rate | 4.125% | 4.125% | 4.125% | 4.125% | 4.125% | 4.125% | 4.125% | |||||||||||||||||||
Aggregate principal amount | € | € 440 | € 440 | ||||||||||||||||||||||||
7.250% Senior Notes due 2024 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Issuance of notes | $ 1,650 | |||||||||||||||||||||||||
Stated interest rate | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% | |||||||||||||||||||
Aggregate principal amount | $ 1,650 | $ 1,650 | ||||||||||||||||||||||||
6.750% Senior Notes due 2024 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Issuance of notes | € | € 750 | |||||||||||||||||||||||||
Stated interest rate | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | |||||||||||||||||||
Aggregate principal amount | € | € 750 | € 750 | ||||||||||||||||||||||||
9.250% Senior Notes due 2020 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Stated interest rate | 9.25% | 9.25% | ||||||||||||||||||||||||
Repayment of principal amount outstanding | € | € 475 | |||||||||||||||||||||||||
9.125% Senior Notes due 2020 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Stated interest rate | 9.125% | 9.125% | ||||||||||||||||||||||||
Repayment of principal amount outstanding | $ 920 | |||||||||||||||||||||||||
7.000% Senior Notes due 2020 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Stated interest rate | 7.00% | 7.00% | 7.00% | |||||||||||||||||||||||
Repayment of principal amount outstanding | $ 135 | $ 15 | ||||||||||||||||||||||||
Aggregate principal amount | $ 150 | |||||||||||||||||||||||||
8.625% Senior PIK Notes due 2019 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Stated interest rate | 8.625% | 8.625% | ||||||||||||||||||||||||
Repayment of principal amount outstanding | $ 841 | |||||||||||||||||||||||||
8.375% Senior PIK Notes due 2019 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Stated interest rate | 8.375% | 8.375% | ||||||||||||||||||||||||
Repayment of principal amount outstanding | € | € 295 | |||||||||||||||||||||||||
8.75% Senior Notes due 2020 | ||||||||||||||||||||||||||
Financial assets and liabilities | ||||||||||||||||||||||||||
Stated interest rate | 8.75% | 8.75% | ||||||||||||||||||||||||
Repayment of principal amount outstanding | € | € 180 |
Financial assets and liabili103
Financial assets and liabilities - Effective interest rates (Details) | 12 Months Ended | ||||||||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 12, 2017 | Apr. 10, 2017 | Mar. 09, 2017 | Mar. 08, 2017 | Mar. 02, 2017 | Jan. 30, 2017 | May 16, 2016 | |
2.750% Senior Secured Notes due 2024 | |||||||||
Financial assets and liabilities | |||||||||
Stated interest rate | 2.75% | 2.75% | |||||||
2.750% Senior Secured Notes due 2024 | Euro | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 2.92% | ||||||||
4.625% Senior Secured Notes due 2023 | |||||||||
Financial assets and liabilities | |||||||||
Stated interest rate | 4.625% | 4.625% | 4.625% | ||||||
4.625% Senior Secured Notes due 2023 | U.S. dollar | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 5.16% | 5.18% | |||||||
4.125% Senior Secured Notes due 2023 | |||||||||
Financial assets and liabilities | |||||||||
Stated interest rate | 4.125% | 4.125% | 4.125% | ||||||
4.125% Senior Secured Notes due 2023 | Euro | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 4.63% | 4.66% | |||||||
4.250% Senior Secured Notes due 2022 | |||||||||
Financial assets and liabilities | |||||||||
Stated interest rate | 4.25% | 4.25% | |||||||
4.250% Senior Secured Notes due 2022 | U.S. dollar | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 4.51% | ||||||||
4.250% First Priority Senior Secured Notes due 2022 | |||||||||
Financial assets and liabilities | |||||||||
Stated interest rate | 4.25% | 4.25% | |||||||
4.250% First Priority Senior Secured Notes due 2022 | Euro | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 4.52% | ||||||||
First Priority Senior Secured Floating Rate Notes due 2019 | U.S. dollar | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 3.49% | ||||||||
Senior Secured Floating Rate Notes due 2022 | U.S. dollar | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 4.26% | ||||||||
4.750% Senior Notes due 2027 | |||||||||
Financial assets and liabilities | |||||||||
Stated interest rate | 4.75% | 4.75% | |||||||
4.750% Senior Notes due 2027 | British pounds | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 4.99% | ||||||||
6.000% Senior Notes due 2025 | |||||||||
Financial assets and liabilities | |||||||||
Stated interest rate | 6.00% | 6.00% | 6.00% | ||||||
6.000% Senior Notes due 2025 | U.S. dollar | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 6.14% | ||||||||
7.250% Senior Notes due 2024 | |||||||||
Financial assets and liabilities | |||||||||
Stated interest rate | 7.25% | 7.25% | 7.25% | ||||||
7.250% Senior Notes due 2024 | U.S. dollar | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 7.72% | 7.74% | |||||||
6.750% Senior Notes due 2024 | |||||||||
Financial assets and liabilities | |||||||||
Stated interest rate | 6.75% | 6.75% | 6.75% | ||||||
6.750% Senior Notes due 2024 | Euro | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 7.00% | 7.01% | |||||||
6.000% Senior Notes due 2021 | |||||||||
Financial assets and liabilities | |||||||||
Stated interest rate | 6.00% | 6.00% | |||||||
6.000% Senior Notes due 2021 | U.S. dollar | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 6.38% | 6.38% | |||||||
6.750% Senior Notes due 2021 | |||||||||
Financial assets and liabilities | |||||||||
Stated interest rate | 6.75% | 6.75% | |||||||
6.750% Senior Notes due 2021 | U.S. dollar | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 7.45% | ||||||||
6.250% Senior Notes due 2019 | |||||||||
Financial assets and liabilities | |||||||||
Stated interest rate | 6.25% | 6.25% | |||||||
6.250% Senior Notes due 2019 | U.S. dollar | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 7.25% | ||||||||
Term Loan B Facility due 2021 | U.S. dollar | |||||||||
Financial assets and liabilities | |||||||||
Effective interest rate | 4.16% |
Financial assets and liabili104
Financial assets and liabilities - Carrying amount and undrawn borrowing facilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets and liabilities | ||
Borrowings | $ 8,308 | $ 8,590 |
Undrawn amount | 814 | 264 |
Not later than one year | ||
Financial assets and liabilities | ||
Borrowings | 2 | 8 |
Undrawn amount | 1 | 1 |
Expiring beyond one year | ||
Financial assets and liabilities | ||
Undrawn amount | 813 | 263 |
Euro | ||
Financial assets and liabilities | ||
Borrowings | 2,319 | 2,458 |
U.S. dollar | ||
Financial assets and liabilities | ||
Borrowings | 5,452 | 6,130 |
British pounds | ||
Financial assets and liabilities | ||
Borrowings | $ 537 | $ 2 |
Financial assets and liabili105
Financial assets and liabilities - Derivative financial instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financial assets and liabilities | ||||
Fair value of assets | $ 23 | $ 143 | ||
Contractual or notional amounts of assets | 386 | 1,795 | ||
Fair value of liabilities | 303 | 8 | ||
Contractual or notional amounts of liabilities | 3,179 | 206 | ||
Financial assets transfer from Level 1 to Level 2 | 0 | |||
Financial assets transfer from Level 2 to Level 1 | 0 | |||
Derivative financial instruments | 7 | 131 | $ 49 | |
Derivative financial instruments | 16 | 12 | 2 | |
Derivative financial instruments | 301 | 0 | ||
Derivative financial instruments | 2 | 8 | $ 8 | $ 8 |
Metal forward contracts | ||||
Financial assets and liabilities | ||||
Fair value of assets | 17 | 9 | ||
Contractual or notional amounts of assets | 197 | 197 | ||
Cross currency interest rate swaps (CCIRS) | ||||
Financial assets and liabilities | ||||
Fair value of assets | 131 | |||
Contractual or notional amounts of assets | 1,580 | |||
Fair value of liabilities | 301 | |||
Contractual or notional amounts of liabilities | 3,107 | |||
Derivative financial instruments | 131 | |||
Derivative financial instruments | 301 | |||
Forward foreign exchange contracts | ||||
Financial assets and liabilities | ||||
Fair value of assets | 4 | |||
Contractual or notional amounts of assets | 179 | |||
Fair value of liabilities | 1 | 8 | ||
Contractual or notional amounts of liabilities | 52 | 206 | ||
NYMEX gas swaps | ||||
Financial assets and liabilities | ||||
Fair value of assets | 2 | |||
Contractual or notional amounts of assets | 16 | |||
Fair value of liabilities | 1 | |||
Contractual or notional amounts of liabilities | 20 | |||
Carbon futures | ||||
Financial assets and liabilities | ||||
Fair value of assets | 2 | 1 | ||
Contractual or notional amounts of assets | $ 10 | $ 2 |
Financial assets and liabili106
Financial assets and liabilities - LME aluminium futures, cross currency interest rate swaps and NYMEX gas swaps (Details) $ in Thousands, € in Millions, £ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) | Jun. 12, 2017GBP (£) | May 16, 2016USD ($) | Dec. 31, 2014USD ($) | |
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Derivative financial instruments used to hedge foreign currency and interest rate risk | $ 0 | $ 301,000 | ||||||||||
Derivative financial instruments used to hedge foreign currency and interest rate risk | 131,000 | 7,000 | $ 49,000 | |||||||||
Issuance of notes | 7,919,000 | 8,296,000 | ||||||||||
Derivative financial assets | 143,000 | 23,000 | ||||||||||
Gain (loss) recognized on hedge ineffectiveness of net investments in foreign operations | $ 0 | 0 | $ 0 | |||||||||
Cross currency interest rate swaps (CCIRS) | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Derivative financial instruments used to hedge foreign currency and interest rate risk | 301,000 | |||||||||||
Derivative financial instruments used to hedge foreign currency and interest rate risk | 131,000 | |||||||||||
Contract value | 500,000 | |||||||||||
Proceeds on termination | $ 90,000 | |||||||||||
Derivative financial assets | 131,000 | |||||||||||
Cross currency interest rate swaps (CCIRS) | Exceptional items | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Loss on derivative instruments | (11,000) | |||||||||||
Gain on derivative instruments | 88,000 | |||||||||||
Cross currency interest rate swaps (CCIRS) | CCIRS, US dollar to euro | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Contract value | 1,250,000 | 440,000 | ||||||||||
Cross currency interest rate swaps (CCIRS) | CCIRS, euro to British pounds | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Contract value | € | € 332 | |||||||||||
Cross currency interest rate swaps (CCIRS) | CCIRS, US dollar to British pounds | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Contract value | $ 500,000 | |||||||||||
Proceeds on termination | 46,000 | |||||||||||
Cross currency interest rate swaps (CCIRS) | CCIRS, US dollar to British pounds | Exceptional items | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Loss on derivative instruments | $ 15,000 | |||||||||||
Cross currency interest rate swaps (CCIRS) | CCIRS, US dollar to euro and British pounds | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Contract value | $ 1,300,000 | |||||||||||
Metal forward contracts | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Derivative financial assets | 9,000 | 17,000 | ||||||||||
Premium paid | 0 | |||||||||||
Premium received | 0 | |||||||||||
Metal forward contracts | Level 2 | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Derivative financial assets | 0 | |||||||||||
Forward foreign exchange contracts | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Derivative financial assets | 4,000 | |||||||||||
Premium paid | 0 | |||||||||||
Premium received | 0 | |||||||||||
Forward foreign exchange contracts | Level 2 | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Derivative financial assets | 0 | |||||||||||
NYMEX gas swaps | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Derivative financial assets | 2,000 | |||||||||||
Premium paid | 0 | |||||||||||
Premium received | $ 0 | |||||||||||
NYMEX gas swaps | Level 2 | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Derivative financial assets | $ 0 | |||||||||||
4.750% Senior Notes due 2027 | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Issuance of notes | £ | £ 400 | |||||||||||
Aggregate principal amount | £ | £ 400 | |||||||||||
Stated interest rate | 4.75% | 4.75% | 4.75% | |||||||||
7.250% Senior Notes due 2024 | ||||||||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||||||||
Issuance of notes | $ 1,650,000 | |||||||||||
Aggregate principal amount | $ 1,650,000 | $ 1,650,000 | ||||||||||
Stated interest rate | 7.25% | 7.25% | 7.25% | 7.25% |
Employee benefit obligations -
Employee benefit obligations - Defined benefit scheme (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Employee benefit obligations | ||||
Employee benefit obligations. | $ 997 | $ 954 | $ 784 | $ 878 |
Defined benefit plan | ||||
Employee benefit obligations | ||||
Obligations | (2,762) | (3,101) | ||
Assets | 1,897 | 2,276 | ||
Net | (865) | (825) | ||
Defined benefit plan | United States | ||||
Employee benefit obligations | ||||
Obligations | (1,313) | (1,198) | ||
Assets | 1,179 | 1,067 | ||
Net | (134) | (131) | ||
Defined benefit plan | Germany | ||||
Employee benefit obligations | ||||
Obligations | (405) | (364) | ||
Net | (405) | (364) | ||
Defined benefit plan | United Kingdom | ||||
Employee benefit obligations | ||||
Obligations | (1,000) | (947) | ||
Assets | 706 | 660 | ||
Net | (294) | (287) | ||
Defined benefit plan | Netherlands | ||||
Employee benefit obligations | ||||
Obligations | (19) | (569) | ||
Assets | 541 | |||
Net | (19) | (28) | ||
Defined benefit plan | Other | ||||
Employee benefit obligations | ||||
Obligations | (25) | (23) | ||
Assets | 12 | 8 | ||
Net | (13) | (15) | ||
Other employee benefit obligations | ||||
Employee benefit obligations | ||||
Employee benefit obligations. | $ 132 | $ 129 |
Employee benefit obligations108
Employee benefit obligations - Amounts recognized in consolidated income statement (Details) - Defined benefit plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee benefit obligations | |||
Cost of sales-current service cost | $ (43) | $ (40) | $ (45) |
Cost of sales-past service credit | 8 | 32 | |
SGA-current service cost | (3) | (6) | (6) |
SGA-past service credit | 2 | 11 | |
Current service cost and administration costs excluding finance expense | (36) | (3) | (51) |
Finance expense (Note 5) | (24) | (28) | (26) |
Current service cost and administration costs | $ (60) | $ (31) | $ (77) |
Employee benefit obligations109
Employee benefit obligations - Amounts recognized in consolidated statement of comprehensive income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee benefit obligations | |||
Actuarial gain/(loss) for the year on pension benefits | $ 49 | $ (139) | $ 74 |
Defined benefit plan | |||
Employee benefit obligations | |||
Actuarial (loss)/gain arising from changes in demographic assumptions | (6) | 26 | 9 |
Actuarial (loss)/gain arising from changes in financial assumptions | (104) | (280) | 107 |
Actuarial gain/(loss) arising from changes in experience | 2 | (11) | 32 |
Re-measurements of defined benefit obligations | (108) | (265) | 148 |
Actual return/(loss) less expected return on plan assets | 158 | 122 | (92) |
Actuarial gain/(loss) for the year on pension benefits | 50 | (143) | 56 |
Gain (loss) on plan assets | 228 | 206 | (10) |
Other employee benefit obligations | |||
Employee benefit obligations | |||
Actuarial gain/(loss) for the year on pension benefits | $ (1) | $ 4 | $ 18 |
Employee benefit obligations110
Employee benefit obligations - Movement in defined benefit obligations and assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee benefit obligations | ||
Past service credit | $ (20) | |
Defined benefit plan | Obligations | ||
Employee benefit obligations | ||
Balance at the beginning | $ (3,101) | (2,846) |
Acquired | (393) | |
Current service cost | (46) | (46) |
Past service credit | 10 | 43 |
Interest cost | (92) | (105) |
Remeasurements | (108) | (265) |
Liabilities/(assets) extinguished on reclassification | 602 | 207 |
Employee contributions | (2) | (6) |
Benefits paid | 163 | 131 |
Exchange | (188) | 179 |
Balance at the end | (2,762) | (3,101) |
Defined benefit plan | Assets. | ||
Employee benefit obligations | ||
Balance at the beginning | 2,276 | 2,151 |
Interest income | 71 | 82 |
Acquired | 301 | |
Administration expenses paid from plan assets | (2) | (3) |
Remeasurements | 158 | 122 |
Liabilities/(assets) extinguished on reclassification | (602) | (207) |
Employer contributions | 51 | 48 |
Employer contributions-acquisition related | 8 | |
Employee contributions | 2 | 6 |
Benefits paid | (163) | (131) |
Exchange | 106 | (101) |
Balance at the end | $ 1,897 | $ 2,276 |
Employee benefit obligations111
Employee benefit obligations - Defined benefit obligations and assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee benefit obligations | |||
Past service credit gain (loss) | $ 20 | ||
Beverage Can | |||
Employee benefit obligations | |||
Contribution from employer | $ 8 | ||
Defined benefit plan | |||
Employee benefit obligations | |||
Unfunded defined benefit obligations | 455 | 401 | |
Defined benefit obligation | 2,762 | 3,101 | |
Defined benefit assets | 1,897 | 2,276 | |
Other employee benefit obligations | |||
Employee benefit obligations | |||
Interest cost relating to employee benefit obligations | 3 | 3 | $ 2 |
Other employee benefit obligations | Beverage Can | |||
Employee benefit obligations | |||
Net defined benefit liability (asset) | 37 | ||
Extinguished defined benefit pension plans | |||
Employee benefit obligations | |||
Employer contributions | 7 | 12 | |
Exceptional items | Glass Packaging North America | |||
Employee benefit obligations | |||
Past service credit gain (loss) | 23 | ||
Netherlands | Defined benefit plan | |||
Employee benefit obligations | |||
Past service credit gain (loss) | 10 | 9 | |
Defined benefit obligation | 19 | 569 | |
Defined benefit assets | 541 | ||
Netherlands | Defined benefit plan transfer to multi-employer plan, plan one | |||
Employee benefit obligations | |||
Defined benefit obligation | 207 | 189 | |
Defined benefit assets | 207 | $ 183 | |
Netherlands | Defined benefit plan transfer to multi-employer plan, plan two [member] | |||
Employee benefit obligations | |||
Defined benefit obligation | 602 | 552 | |
Defined benefit assets | $ 602 | $ 541 |
Employee benefit obligations112
Employee benefit obligations - Plan asset (Details) - Defined benefit plan - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Employee benefit obligations | ||
Equities | $ 1,177 | $ 1,215 |
Target return funds | 297 | 290 |
Bonds | 249 | 588 |
Cash/other | 174 | 183 |
Total plan assets | $ 1,897 | $ 2,276 |
Equities (Percentage) | 62.00% | 53.00% |
Target return funds (Percentage) | 16.00% | 13.00% |
Bonds (Percentage) | 13.00% | 26.00% |
Cash/other (Percentage) | 9.00% | 8.00% |
Total plan assets (Percentage) | 100.00% | 100.00% |
Employee benefit obligations113
Employee benefit obligations - Characteristics and associated risks (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017item | Dec. 31, 2014USD ($) | |
Beverage Can | ||
Employee benefit obligations | ||
Number of pension plans | 3 | |
Defined benefit plan | VNA | ||
Employee benefit obligations | ||
Employer contributions | $ | $ 200 | |
Metal Packaging Europe | ||
Employee benefit obligations | ||
Number of pension plans | 2 | |
Glass Packaging Europe | ||
Employee benefit obligations | ||
Number of pension plans | 2 |
Employee benefit obligations114
Employee benefit obligations - Ranges of assumptions (Details) - Defined benefit plan | Dec. 31, 2017 | Dec. 31, 2016 |
United States | ||
Assumptions and sensitivities | ||
Rates of inflation | 2.50% | 2.50% |
Discount rates | 3.80% | 4.45% |
United States | Minimum | ||
Assumptions and sensitivities | ||
Rates of increase in salaries | 2.00% | 2.00% |
United States | Maximum | ||
Assumptions and sensitivities | ||
Rates of increase in salaries | 3.00% | 3.00% |
Germany | ||
Assumptions and sensitivities | ||
Rates of inflation | 1.50% | 1.50% |
Rates of increase in salaries | 2.50% | 2.50% |
Germany | Minimum | ||
Assumptions and sensitivities | ||
Discount rates | 1.68% | 1.57% |
Germany | Maximum | ||
Assumptions and sensitivities | ||
Discount rates | 2.24% | 2.06% |
United Kingdom | ||
Assumptions and sensitivities | ||
Rates of inflation | 3.10% | 3.20% |
Rates of increase in salaries | 2.60% | 2.20% |
Discount rates | 2.70% | 2.80% |
Employee benefit obligations115
Employee benefit obligations - Mortality assumptions (Details) - Defined benefit plan | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
United States | ||
Assumptions and sensitivities | ||
Life expectancy, current pensioners | 22 years | 22 years |
Life expectancy, future pensioners | 23 years | 23 years |
Germany | ||
Assumptions and sensitivities | ||
Life expectancy, current pensioners | 21 years | 21 years |
Life expectancy, future pensioners | 24 years | 24 years |
United Kingdom | ||
Assumptions and sensitivities | ||
Life expectancy, current pensioners | 21 years | 21 years |
Life expectancy, future pensioners | 22 years | 22 years |
Employee benefit obligations116
Employee benefit obligations - Sensitivity analysis (Details) - Defined benefit plan - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Assumptions and sensitivities | ||
Estimate of contributions expected to be paid | $ 36 | $ 39 |
Discount rates | ||
Assumptions and sensitivities | ||
Decrease in actuarial assumption (as a percent) | 0.50% | 0.50% |
Increase (decrease) in pension obligations due to decrease in actuarial assumption | $ 216 | $ 256 |
Increase in actuarial assumption (as a percent) | 0.50% | 0.50% |
Increase (decrease) in pension obligations due to increase in actuarial assumption | $ (230) | $ (255) |
Rates of inflation | ||
Assumptions and sensitivities | ||
Decrease in actuarial assumption (as a percent) | 0.50% | 0.50% |
Increase (decrease) in pension obligations due to decrease in actuarial assumption | $ (96) | $ (98) |
Increase in actuarial assumption (as a percent) | 0.50% | 0.50% |
Increase (decrease) in pension obligations due to increase in actuarial assumption | $ 91 | $ 98 |
Rates of increase in salaries | ||
Assumptions and sensitivities | ||
Decrease in actuarial assumption (as a percent) | 0.50% | 0.50% |
Increase (decrease) in pension obligations due to decrease in actuarial assumption | $ (103) | $ (98) |
Increase in actuarial assumption (as a percent) | 0.50% | 0.50% |
Increase (decrease) in pension obligations due to increase in actuarial assumption | $ 97 | $ 97 |
Expected longevity | ||
Assumptions and sensitivities | ||
Increase (decrease) in pension obligations due to increase in actuarial assumption | $ 55 | $ 66 |
Increase in actuarial assumption (in years) | 1 year | 1 year |
Employee benefit obligations117
Employee benefit obligations - Principal defined benefit schemes (Details) | 12 Months Ended | |
Dec. 31, 2017Yemployee | Dec. 31, 2016Yemployee | |
Metal Packaging | United Kingdom | ||
Employee benefit obligations | ||
Active members | 467 | 467 |
Deferred members | 954 | 954 |
Pensioners including dependents | 756 | 756 |
Weighted average duration (years) | Y | 21 | 20 |
Metal Packaging | Germany | ||
Employee benefit obligations | ||
Active members | 1,694 | 1,803 |
Deferred members | 706 | 664 |
Pensioners including dependents | 1,081 | 1,011 |
Weighted average duration (years) | Y | 17 | 18 |
Metal Packaging | North America | ||
Employee benefit obligations | ||
Active members | 943 | 970 |
Deferred members | 139 | 115 |
Pensioners including dependents | 150 | 133 |
Weighted average duration (years) | Y | 17 | 20 |
Glass Packaging | United Kingdom | ||
Employee benefit obligations | ||
Deferred members | 1,527 | 1,527 |
Pensioners including dependents | 744 | 744 |
Weighted average duration (years) | Y | 23 | 23 |
Glass Packaging | Germany | ||
Employee benefit obligations | ||
Active members | 1,011 | 1,032 |
Deferred members | 759 | 732 |
Pensioners including dependents | 762 | 786 |
Weighted average duration (years) | Y | 18 | 19 |
Glass Packaging | North America | ||
Employee benefit obligations | ||
Active members | 4,137 | 4,043 |
Deferred members | 2,697 | 2,648 |
Pensioners including dependents | 6,379 | 6,302 |
Weighted average duration (years) | Y | 13 | 12 |
Employee benefit obligations118
Employee benefit obligations - Expected benefit payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee benefit obligations | |||
Contribution expense | $ 35 | $ 34 | $ 16 |
Estimate of contributions expected to be paid | 43 | ||
Defined benefit plan | Not later than one year | |||
Employee benefit obligations | |||
Benefits | 116 | ||
Defined benefit plan | Between one and two years | |||
Employee benefit obligations | |||
Benefits | 114 | ||
Defined benefit plan | Between two and three years | |||
Employee benefit obligations | |||
Benefits | 118 | ||
Defined benefit plan | Between three and four years | |||
Employee benefit obligations | |||
Benefits | 121 | ||
Defined benefit plan | Between four and five years | |||
Employee benefit obligations | |||
Benefits | 125 | ||
Defined benefit plan | Later than five years | |||
Employee benefit obligations | |||
Benefits | $ 672 |
Employee benefit obligations119
Employee benefit obligations - Other employee benefits (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Employee benefit obligations | ||||
Other employee benefits | $ 997 | $ 954 | $ 784 | $ 878 |
Other employee benefit obligations | ||||
Employee benefit obligations | ||||
Other employee benefits | 132 | 129 | ||
End of service employee benefits | ||||
Employee benefit obligations | ||||
Other employee benefits | 25 | 24 | ||
Long term employee benefits | ||||
Employee benefit obligations | ||||
Other employee benefits | $ 107 | $ 105 |
Related party borrowings and120
Related party borrowings and receivables (Details) € in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2016EUR (€)shares | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($)shares | Mar. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Sep. 21, 2016shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Related party receivables and borrowings | ||||||||
Non-current payables to related parties | € 709 | $ 0 | $ 709 | |||||
Number of shares issued and fully paid | 11,100,000 | 236,300,000 | 11,100,000 | |||||
Related party receivable | $ | $ 440 | $ 490 | ||||||
Repayment of borrowings issued to related party | $ | $ 441 | |||||||
ARD Group Finance Holding S.A. | ||||||||
Related party receivables and borrowings | ||||||||
Non-current payables to related parties | € 716 | $ 716 | ||||||
Number of shares issued and fully paid | 1,111,200 | |||||||
ARD Finance S.A. | ||||||||
Related party receivables and borrowings | ||||||||
Repayment of borrowings issued to related party | € | € 441 | |||||||
Class B common shares | ||||||||
Related party receivables and borrowings | ||||||||
Number of shares issued and fully paid | 217,700,000 | 217,696,000 | ||||||
Class B common shares | ARD Group Finance Holding S.A. | ||||||||
Related party receivables and borrowings | ||||||||
Number of shares issued and fully paid | 86,154 | 86,154 |
Provisions - Current and non-cu
Provisions - Current and non-current (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Provisions | ||||
Current | $ 70 | $ 73 | $ 52 | $ 61 |
Noncurrent | 44 | 60 | 52 | $ 40 |
Total | $ 114 | $ 133 | $ 105 |
Provisions - Restructuring and
Provisions - Restructuring and other provisions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Provisions | ||
At beginning of year | $ 133 | $ 105 |
Acquisitions | 42 | |
Provided | 38 | 60 |
Utilization | (33) | (29) |
Paid | (31) | (42) |
Exchange | 7 | (3) |
At end of year | 114 | 133 |
Restructuring | ||
Provisions | ||
At beginning of year | 23 | 20 |
Provided | 12 | 28 |
Utilization | (2) | (12) |
Paid | (10) | (11) |
Exchange | 2 | (2) |
At end of year | 25 | 23 |
Other provisions | ||
Provisions | ||
At beginning of year | 110 | 85 |
Acquisitions | 42 | |
Provided | 26 | 32 |
Utilization | (31) | (17) |
Paid | (21) | (31) |
Exchange | 5 | (1) |
At end of year | $ 89 | $ 110 |
Trade and other payables (Detai
Trade and other payables (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Trade and other payables | ||||
Trade payables | $ 1,469 | $ 1,112 | ||
Other payables and accruals | 436 | 441 | ||
Amounts owed to parent company | 3 | |||
Other tax and social security payable | 49 | 34 | ||
Payables and accruals for exceptional items | 34 | 32 | ||
Total | $ 1,988 | $ 1,622 | $ 957 | $ 976 |
Cash generated from operatin124
Cash generated from operating activities (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | |
Cash generated from operating activities | ||||||
Profit/(loss) for the year | € 54 | $ 63 | € (67) | $ (74) | € (140) | $ (157) |
Income tax (credit)/expense | (40) | 55 | 70 | |||
Net finance expense | 649 | 594 | 590 | |||
Depreciation and amortization | 687 | 561 | 449 | |||
Exceptional operating items | 149 | 145 | 89 | |||
Movement in working capital | 99 | 131 | 100 | |||
Adjustments for acquisition related disposal and start up costs paid | (74) | (176) | (60) | |||
Exceptional restructuring paid | 10 | 11 | 22 | |||
Cash generated from operations | $ 1,523 | $ 1,225 | $ 1,059 |
Business combinations and di125
Business combinations and disposals - Beverage Can Business (Details) $ in Millions | Jun. 30, 2016USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business combinations | ||||
Annual revenue | $ 8,596 | $ 7,014 | $ 5,795 | |
Assets acquired and liabilities assumed | ||||
Goodwill | 2,201 | 2,088 | ||
Beverage Can | ||||
Business combinations | ||||
Annual revenue | $ 3,000 | |||
Assets acquired and liabilities assumed | ||||
Cash and cash equivalents | 11 | |||
Property, plant and equipment | 702 | |||
Intangible assets | 1,431 | |||
Inventories | 294 | |||
Trade and other receivables | 367 | |||
Trade and other payables | (484) | |||
Net deferred tax liability | (162) | |||
Employee benefit obligations | (129) | |||
Provisions | (42) | |||
Total identifiable net assets | 1,988 | |||
Goodwill | 1,004 | |||
Total consideration | 2,992 | |||
Beverage Can North America | ||||
Assets acquired and liabilities assumed | ||||
Goodwill expected to be deductible for tax purposes | $ 298 | |||
Europe | Beverage Can | ||||
Business combinations | ||||
Number of beverage can manufacturing plants acquired | item | 10 | |||
Number of end plants acquired | item | 2 | |||
United States | ||||
Business combinations | ||||
Annual revenue | $ 3,261 | $ 2,695 | $ 2,227 | |
United States | Beverage Can | ||||
Business combinations | ||||
Number of beverage can manufacturing plants acquired | item | 7 | |||
Number of end plants acquired | item | 1 | |||
Brazil | Beverage Can | ||||
Business combinations | ||||
Number of beverage can manufacturing plants acquired | item | 2 |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 30, 2017 | Oct. 25, 2017 | Aug. 31, 2017 | Jul. 26, 2017 | May 31, 2017 | Apr. 27, 2017 | Mar. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Dividends | |||||||||
Interim dividend paid | $ (165) | $ (304) | |||||||
Dividend One | |||||||||
Dividends | |||||||||
Interim dividend paid | $ (67) | (67) | |||||||
Interim dividend per share | $ 0.33 | $ 0 | |||||||
Dividend Two | |||||||||
Dividends | |||||||||
Interim dividend paid | $ (33) | (33) | |||||||
Interim dividend per share | $ 0.14 | $ 0 | |||||||
Interim dividend declared | $ 0.14 | ||||||||
Dividend Three | |||||||||
Dividends | |||||||||
Interim dividend paid | $ (32) | (32) | $ (304) | ||||||
Interim dividend per share | $ 0.14 | $ 1.50 | |||||||
Interim dividend declared | $ 0.14 | ||||||||
Dividend Four | |||||||||
Dividends | |||||||||
Interim dividend paid | $ (33) | $ (33) | |||||||
Interim dividend per share | $ 0.14 | $ 0 | |||||||
Interim dividend declared | $ 0.14 |
Related party information (Deta
Related party information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)director | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Feb. 21, 2018 | |
Related party borrowings and receivables | ||||
Investment in joint ventures | $ 10 | $ 6 | ||
Paul Coulson Ownership Interests | ARD Holdings S.A. | ||||
Related party borrowings and receivables | ||||
Percentage of issued share capital holding | 25.00% | |||
Yeoman Capital S.A. and subsidiaries | ARD Holdings S.A. | ||||
Related party borrowings and receivables | ||||
Percentage of issued share capital holding | 34.00% | |||
Yeoman Capital S.A. and subsidiaries | ||||
Related party borrowings and receivables | ||||
Fees charged for services provided | $ 0 | 0 | $ 0 | |
Amount payable | $ 0 | 0 | 0 | |
Yeoman Capital S.A. and subsidiaries | ARD Holdings S.A. | ||||
Related party borrowings and receivables | ||||
Number of common directors | director | 5 | |||
Key Management Personnel | ||||
Related party borrowings and receivables | ||||
Amount payable | $ 7 | 4 | 4 | |
Salaries and other short term employee benefits | 12 | 12 | 10 | |
Other employment benefits | 1 | 1 | 1 | |
Key management compensation excluding transaction cost | 13 | 13 | 11 | |
Transaction related and other compensation | 7 | 29 | ||
Key management compensation | $ 20 | $ 42 | $ 11 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Apr. 21, 2017USD ($)item | Dec. 31, 2017item |
Contingencies | ||
Damages awarded to plaintiff | $ | $ 50 | |
Number of asserted patent infringements awarded | 1 | |
Number of alleged patent infringements asserted | 2 |
Events after the reporting p129
Events after the reporting period (Details) | Feb. 08, 2018$ / shares |
Events after the reporting period | |
Dividend per share declared | $ 0.14 |
Effect of change in presenta130
Effect of change in presentation currency - Exchange rates (Details) - $ / € | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effect of change in presentation currency | ||||
Closing rate | 1.1993 | 1.0541 | 1.0887 | 1.2141 |
Average rate | 1.1249 | 1.1061 | 1.1150 | 1.3348 |
Effect of change in presenta131
Effect of change in presentation currency - CONSOLIDATED INCOME STATEMENT as previously reported (Details) € / shares in Units, $ / shares in Units, € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017EUR (€)€ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016EUR (€)€ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015EUR (€)€ / shares | Dec. 31, 2015USD ($)$ / shares | |
Income statement | ||||||
Revenue | $ | $ 8,596 | $ 7,014 | $ 5,795 | |||
Cost of sales | $ | (7,210) | (5,786) | (4,817) | |||
Gross profit/(loss) | $ | 1,386 | 1,228 | 978 | |||
Sales, general and administration expenses | $ | (450) | (462) | (353) | |||
Intangible amortization | $ | (264) | (191) | (122) | |||
Operating profit/(loss) | $ | 672 | 575 | 503 | |||
Finance expense | $ | (649) | (682) | (590) | |||
Finance income | $ | 88 | |||||
Profit/(loss) before tax | $ | 23 | (19) | (87) | |||
Income tax (charge)/credit | $ | 40 | (55) | (70) | |||
Profit/(loss) for the year | € 54 | 63 | € (67) | (74) | € (140) | (157) |
Profit/(loss) attributable to: | ||||||
Owners of the parent | $ | $ 63 | $ (74) | $ (157) | |||
Profit/(loss) per share: | ||||||
Basic profit/(loss) for the year attributable to equity holders | $ / shares | $ 0.27 | $ (0.37) | $ (0.78) | |||
Previously stated | ||||||
Income statement | ||||||
Revenue | 7,644 | 6,345 | 5,199 | |||
Cost of sales | (6,406) | (5,236) | (4,322) | |||
Gross profit/(loss) | 1,238 | 1,109 | 877 | |||
Sales, general and administration expenses | (402) | (416) | (318) | |||
Intangible amortization | (235) | (173) | (109) | |||
Operating profit/(loss) | 601 | 520 | 450 | |||
Finance expense | (582) | (615) | (527) | |||
Finance income | 78 | |||||
Profit/(loss) before tax | 19 | (17) | (77) | |||
Income tax (charge)/credit | 35 | (50) | (63) | |||
Profit/(loss) for the year | 54 | (67) | (140) | |||
Profit/(loss) attributable to: | ||||||
Owners of the parent | € 54 | € (67) | € (140) | |||
Profit/(loss) per share: | ||||||
Basic profit/(loss) for the year attributable to equity holders | € / shares | € 0.24 | € (0.33) | € (0.69) | |||
Before exceptional items | ||||||
Income statement | ||||||
Revenue | $ | $ 8,596 | $ 7,014 | $ 5,795 | |||
Cost of sales | $ | (7,110) | (5,771) | (4,776) | |||
Gross profit/(loss) | $ | 1,486 | 1,243 | 1,019 | |||
Sales, general and administration expenses | $ | (401) | (332) | (305) | |||
Intangible amortization | $ | (264) | (191) | (122) | |||
Operating profit/(loss) | $ | 821 | 720 | 592 | |||
Finance expense | $ | (517) | (497) | (575) | |||
Profit/(loss) before tax | $ | 304 | 223 | 17 | |||
Income tax (charge)/credit | $ | (98) | (104) | (106) | |||
Profit/(loss) for the year | $ | 206 | 119 | (89) | |||
Before exceptional items | Previously stated | ||||||
Income statement | ||||||
Revenue | € 7,644 | € 6,345 | € 5,199 | |||
Cost of sales | (6,321) | (5,221) | (4,285) | |||
Gross profit/(loss) | 1,323 | 1,124 | 914 | |||
Sales, general and administration expenses | (359) | (300) | (274) | |||
Intangible amortization | (235) | (173) | (109) | |||
Operating profit/(loss) | 729 | 651 | 531 | |||
Finance expense | (459) | (450) | (514) | |||
Profit/(loss) before tax | 270 | 201 | 17 | |||
Income tax (charge)/credit | (87) | (93) | (95) | |||
Profit/(loss) for the year | 183 | 108 | (78) | |||
Exceptional items | ||||||
Income statement | ||||||
Cost of sales | $ | (100) | (15) | (41) | |||
Gross profit/(loss) | $ | (100) | (15) | (41) | |||
Sales, general and administration expenses | $ | (49) | (130) | (48) | |||
Operating profit/(loss) | $ | (149) | (145) | (89) | |||
Finance expense | $ | (132) | (185) | (15) | |||
Finance income | $ | 88 | |||||
Profit/(loss) before tax | $ | (281) | (242) | (104) | |||
Income tax (charge)/credit | $ | 138 | 49 | 36 | |||
Profit/(loss) for the year | $ | $ (143) | $ (193) | $ (68) | |||
Exceptional items | Previously stated | ||||||
Income statement | ||||||
Cost of sales | (85) | (15) | (37) | |||
Gross profit/(loss) | (85) | (15) | (37) | |||
Sales, general and administration expenses | (43) | (116) | (44) | |||
Operating profit/(loss) | (128) | (131) | (81) | |||
Finance expense | (123) | (165) | (13) | |||
Finance income | 78 | |||||
Profit/(loss) before tax | (251) | (218) | (94) | |||
Income tax (charge)/credit | 122 | 43 | 32 | |||
Profit/(loss) for the year | € (129) | € (175) | € (62) |
Effect of change in presenta132
Effect of change in presentation currency - CONSOLIDATED STATEMENT OF COMPREHNSIVE INCOME as previously reported (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | |
Statement of comprehensive income | ||||||
Profit/(loss) for the year | € 54 | $ 63 | € (67) | $ (74) | € (140) | $ (157) |
Foreign currency translation adjustments: | ||||||
Arising in the year | $ | (178) | 18 | 80 | |||
Foreign currency translation adjustments | $ | (178) | 18 | 80 | |||
Effective portion of changes in fair value of cash flow hedges: | ||||||
New fair value adjustments into reserve | $ | (254) | 54 | 45 | |||
Movement out of reserve | $ | 258 | (85) | (44) | |||
Movement in deferred tax | $ | 1 | (4) | ||||
Effective portion of changes in fair value of cash flow hedges | $ | 5 | (35) | 1 | |||
Items that will not be reclassified to income statement | ||||||
Remeasurements of employee benefit obligations | $ | 49 | (139) | 74 | |||
Deferred tax movement on employee benefit obligations | $ | (6) | 18 | (28) | |||
Total of items that will not be reclassified to income statement | $ | 43 | (121) | 46 | |||
Total other comprehensive (expense)/income for the year | $ | (130) | (138) | 127 | |||
Total comprehensive expense for the year | $ | (67) | (212) | (30) | |||
Attributable to: | ||||||
Equity owners | $ | (67) | (212) | (30) | |||
Total comprehensive expense for the year | $ | $ (67) | $ (212) | $ (30) | |||
Previously stated | ||||||
Statement of comprehensive income | ||||||
Profit/(loss) for the year | 54 | (67) | (140) | |||
Foreign currency translation adjustments: | ||||||
Arising in the year | (2) | (52) | (137) | |||
Foreign currency translation adjustments | (2) | (52) | (137) | |||
Effective portion of changes in fair value of cash flow hedges: | ||||||
New fair value adjustments into reserve | (226) | 50 | 44 | |||
Movement out of reserve | 230 | (77) | (43) | |||
Movement in deferred tax | 1 | (4) | ||||
Effective portion of changes in fair value of cash flow hedges | 5 | (31) | 1 | |||
Items that will not be reclassified to income statement | ||||||
Remeasurements of employee benefit obligations | 43 | (121) | 72 | |||
Deferred tax movement on employee benefit obligations | (6) | 16 | (27) | |||
Total of items that will not be reclassified to income statement | 37 | (105) | 45 | |||
Total other comprehensive (expense)/income for the year | 40 | (188) | (91) | |||
Total comprehensive expense for the year | 94 | (255) | (231) | |||
Attributable to: | ||||||
Equity owners | 94 | (255) | (231) | |||
Total comprehensive expense for the year | € 94 | € (255) | € (231) |
Effect of change in presenta133
Effect of change in presentation currency - CONSOLIDATED STATEMENT OF FINANCIAL POSITION as previously reported (Details) € in Millions, $ in Millions | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) |
Non-current assets | ||||||||
Intangible assets | $ | $ 4,104 | $ 4,115 | $ 1,971 | $ 2,139 | ||||
Property, plant and equipment | $ | 3,368 | 3,068 | 2,512 | 2,699 | ||||
Derivative financial instruments | $ | 7 | 131 | 49 | |||||
Deferred tax assets | $ | 221 | 273 | 194 | 223 | ||||
Other non-current assets | $ | 25 | 21 | 15 | 12 | ||||
Total non-current assets | $ | 7,725 | 7,608 | 4,692 | 5,122 | ||||
Current assets | ||||||||
Inventories | $ | 1,353 | 1,186 | 898 | 935 | ||||
Trade and other receivables | $ | 1,274 | 1,227 | 709 | 840 | ||||
Related party receivables | $ | 440 | 490 | ||||||
Derivative financial instruments | $ | 16 | 12 | 2 | |||||
Cash and cash equivalents | $ | 784 | 813 | 602 | 503 | ||||
Total current assets | $ | 3,427 | 3,238 | 2,649 | 2,770 | ||||
TOTAL ASSETS | $ | 11,152 | 10,846 | 7,341 | 7,892 | ||||
Equity attributable to owners of the parent | ||||||||
Issued capital | $ | 23 | |||||||
Share premium | $ | 1,290 | 274 | 571 | 571 | ||||
Capital contribution | $ | 485 | 485 | ||||||
Other reserves | $ | (21) | 152 | 169 | 88 | ||||
Retained earnings | $ | (3,152) | (3,093) | (2,898) | (2,787) | ||||
Total equity attributable to owners of the parent | € (1,148) | (1,375) | € (2,070) | (2,182) | € (1,982) | (2,158) | (2,128) | |
Non-controlling interests | $ | 1 | 3 | 3 | 3 | ||||
TOTAL EQUITY | $ | (1,374) | (2,179) | (2,155) | (2,125) | ||||
Non-current liabilities | ||||||||
Borrowings | $ | 8,306 | 8,582 | 6,964 | 7,326 | ||||
Employee benefit obligations | $ | 997 | 954 | 784 | 878 | ||||
Derivative financial instruments | $ | 301 | 0 | ||||||
Deferred tax liabilities | $ | 583 | 732 | 502 | 510 | ||||
Related party borrowings | 0 | 709 | 709 | |||||
Provisions | $ | 44 | 60 | 52 | 40 | ||||
Total non-current liabilities | $ | 10,231 | 11,037 | 8,302 | 8,754 | ||||
Current liabilities | ||||||||
Borrowings | $ | 2 | 8 | 8 | 5 | ||||
Interest payable | $ | 71 | 85 | 86 | 101 | ||||
Derivative financial instruments | $ | 2 | 8 | 8 | 8 | ||||
Trade and other payables | $ | 1,988 | 1,622 | 957 | 976 | ||||
Income tax payable | $ | 162 | 192 | 83 | 112 | ||||
Provisions | $ | 70 | 73 | 52 | 61 | ||||
Total current liabilities | $ | 2,295 | 1,988 | 1,194 | 1,263 | ||||
TOTAL LIABILITIES | $ | 12,526 | 13,025 | 9,496 | 10,017 | ||||
TOTAL EQUITY and LIABILITIES | $ | $ 11,152 | $ 10,846 | $ 7,341 | $ 7,892 | ||||
Previously stated | ||||||||
Non-current assets | ||||||||
Intangible assets | 3,422 | 3,904 | 1,810 | € 1,762 | ||||
Property, plant and equipment | 2,808 | 2,911 | 2,307 | 2,223 | ||||
Derivative financial instruments | 6 | 124 | 40 | |||||
Deferred tax assets | 184 | 259 | 178 | 184 | ||||
Other non-current assets | 21 | 20 | 14 | 10 | ||||
Total non-current assets | 6,441 | 7,218 | 4,309 | 4,219 | ||||
Current assets | ||||||||
Inventories | 1,128 | 1,125 | 825 | 770 | ||||
Trade and other receivables | 1,062 | 1,164 | 651 | 692 | ||||
Related party receivables | 404 | 404 | ||||||
Derivative financial instruments | 13 | 11 | 2 | |||||
Cash and cash equivalents | 654 | 772 | 553 | 414 | ||||
Total current assets | 2,857 | 3,072 | 2,433 | 2,282 | ||||
TOTAL ASSETS | 9,298 | 10,290 | 6,742 | 6,501 | ||||
Equity attributable to owners of the parent | ||||||||
Issued capital | 22 | |||||||
Share premium | 1,090 | 136 | 400 | 400 | ||||
Capital contribution | 431 | 431 | ||||||
Other reserves | (321) | (324) | (241) | (105) | ||||
Retained earnings | (2,370) | (2,313) | (2,141) | (2,046) | ||||
Total equity attributable to owners of the parent | (1,148) | (2,070) | (1,982) | (1,751) | ||||
Non-controlling interests | 1 | 2 | 2 | 2 | ||||
TOTAL EQUITY | (1,147) | (2,068) | (1,980) | (1,749) | ||||
Non-current liabilities | ||||||||
Borrowings | 6,926 | 8,142 | 6,397 | 6,034 | ||||
Employee benefit obligations | 831 | 905 | 720 | 723 | ||||
Derivative financial instruments | 251 | |||||||
Deferred tax liabilities | 486 | 694 | 461 | 420 | ||||
Related party borrowings | 673 | |||||||
Provisions | 37 | 57 | 48 | 33 | ||||
Total non-current liabilities | 8,531 | 10,471 | 7,626 | 7,210 | ||||
Current liabilities | ||||||||
Borrowings | 2 | 8 | 7 | 4 | ||||
Interest payable | 59 | 81 | 79 | 83 | ||||
Derivative financial instruments | 2 | 8 | 7 | 7 | ||||
Trade and other payables | 1,658 | 1,539 | 879 | 804 | ||||
Income tax payable | 135 | 182 | 76 | 92 | ||||
Provisions | 58 | 69 | 48 | 50 | ||||
Total current liabilities | 1,914 | 1,887 | 1,096 | 1,040 | ||||
TOTAL LIABILITIES | 10,445 | 12,358 | 8,722 | 8,250 | ||||
TOTAL EQUITY and LIABILITIES | € 9,298 | € 10,290 | € 6,742 | € 6,501 |
Effect of change in presenta134
Effect of change in presentation currency - CONSOLIDATED STATEMENT OF CASH FLOWS as previously reported (Details) € in Millions, $ in Millions | Sep. 21, 2016USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) |
Cash flows from operating activities | |||||||
Cash generated from operations | $ | $ 1,523 | $ 1,225 | $ 1,059 | ||||
Interest - paid excluding cumulative PIK interest paid | $ | (458) | (412) | (360) | ||||
Cumulative PIK interest paid | $ | (205) | ||||||
Income tax paid | $ | (103) | (93) | (66) | ||||
Net cash from operating activities | $ | 962 | 515 | 633 | ||||
Cash flows from investing activities | |||||||
Purchase of business net of cash acquired | $ | (3,036) | ||||||
Purchase of property, plant and equipment | $ | (476) | (343) | (339) | ||||
Purchase of intangible assets | $ | (22) | (12) | (9) | ||||
Proceeds from disposal of property, plant and equipment | $ | 6 | 4 | 9 | ||||
Net cash used in investing activities | $ | (492) | (3,387) | (339) | ||||
Cash flows from financing activities | |||||||
Proceeds from borrowings | $ | 3,730 | 4,469 | |||||
Repayment of borrowings | $ | (4,385) | (2,604) | (221) | ||||
Proceeds from borrowings with related party | $ | 748 | ||||||
Proceeds from share issuance | $ | 326 | 7 | |||||
Contribution from parent | $ | $ 485 | 485 | |||||
Repayment of borrowings issued to related party | $ | 441 | ||||||
Dividends paid | $ | (165) | (304) | |||||
Early redemption premium paid | $ | (91) | (121) | (9) | ||||
Deferred debt issue costs paid | $ | (38) | (68) | (1) | ||||
Proceeds from the termination of derivative financial instruments | $ | 46 | 90 | |||||
Net cash (outflow)/inflow from financing activities | $ | (577) | 3,053 | (141) | ||||
Net (decrease)/increase in cash and cash equivalents | $ | (107) | 181 | 153 | ||||
Cash and cash equivalents at the beginning of the year | $ | 813 | 602 | 503 | ||||
Exchange gains/(losses) on cash and cash equivalents | $ | 78 | 30 | (54) | ||||
Cash and cash equivalents at the end of the year | $ | $ 784 | $ 813 | $ 602 | ||||
Previously stated | |||||||
Cash flows from operating activities | |||||||
Cash generated from operations | € | € 1,330 | € 1,109 | € 950 | ||||
Interest - paid excluding cumulative PIK interest paid | € | (406) | (372) | (323) | ||||
Cumulative PIK interest paid | € | (184) | ||||||
Income tax paid | € | (90) | (84) | (59) | ||||
Net cash from operating activities | € | 834 | 469 | 568 | ||||
Cash flows from investing activities | |||||||
Purchase of business net of cash acquired | € | (2,685) | ||||||
Purchase of property, plant and equipment | € | (422) | (310) | (304) | ||||
Purchase of intangible assets | € | (19) | (12) | (8) | ||||
Proceeds from disposal of property, plant and equipment | € | 5 | 4 | 8 | ||||
Net cash used in investing activities | € | (436) | (3,003) | (304) | ||||
Cash flows from financing activities | |||||||
Proceeds from borrowings | € | 3,497 | 3,950 | |||||
Repayment of borrowings | € | (4,061) | (2,322) | (198) | ||||
Proceeds from borrowings with related party | € | 673 | ||||||
Proceeds from share issuance | € | 306 | 6 | |||||
Contribution from parent | € | 431 | ||||||
Repayment of borrowings issued to related party | € | 404 | ||||||
Dividends paid | € | (148) | (270) | |||||
Early redemption premium paid | € | (85) | (108) | (8) | ||||
Deferred debt issue costs paid | € | (35) | (60) | (1) | ||||
Proceeds from the termination of derivative financial instruments | € | 42 | 81 | |||||
Net cash (outflow)/inflow from financing activities | € | (484) | 2,704 | (126) | ||||
Net (decrease)/increase in cash and cash equivalents | € | (86) | 170 | 138 | ||||
Cash and cash equivalents at the beginning of the year | € | 772 | 553 | 414 | ||||
Exchange gains/(losses) on cash and cash equivalents | € | (32) | 49 | 1 | ||||
Cash and cash equivalents at the end of the year | € | € 654 | € 772 | € 553 |
Company financial information -
Company financial information - Financial position (Details) € in Millions, $ in Millions | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) |
Non-current assets | ||||||||
Total non-current assets | $ | $ 7,725 | $ 7,608 | $ 4,692 | $ 5,122 | ||||
Current assets | ||||||||
Related party receivables | $ | 440 | 490 | ||||||
Cash and cash equivalents | $ | 784 | 813 | 602 | 503 | ||||
Total current assets | $ | 3,427 | 3,238 | 2,649 | 2,770 | ||||
TOTAL ASSETS | $ | 11,152 | 10,846 | 7,341 | 7,892 | ||||
Equity attributable to owners of the parent | ||||||||
Issued capital | $ | 23 | |||||||
Share Premium | $ | 1,290 | 274 | 571 | 571 | ||||
Capital contribution | $ | 485 | 485 | ||||||
Retained earnings | $ | (3,152) | (3,093) | (2,898) | (2,787) | ||||
Total equity attributable to owners of the parent | € (1,148) | (1,375) | € (2,070) | (2,182) | € (1,982) | (2,158) | (2,128) | |
Non-current liabilities | ||||||||
Borrowings | $ | 8,306 | 8,582 | 6,964 | 7,326 | ||||
Related party borrowings | 0 | 709 | 709 | |||||
Total non-current liabilities | $ | 10,231 | 11,037 | 8,302 | 8,754 | ||||
Current liabilities | ||||||||
Total current liabilities | $ | 2,295 | 1,988 | 1,194 | 1,263 | ||||
TOTAL LIABILITIES | $ | 12,526 | 13,025 | 9,496 | 10,017 | ||||
TOTAL EQUITY and LIABILITIES | $ | $ 11,152 | $ 10,846 | $ 7,341 | $ 7,892 | ||||
Ardagh Group S.A. | ||||||||
Non-current assets | ||||||||
Investments in subsidiary undertakings | 1,809 | 1,510 | ||||||
Total non-current assets | 1,809 | 1,510 | ||||||
Current assets | ||||||||
Related party receivables | 10 | |||||||
Cash and cash equivalents | 1 | € 2 | € 2 | |||||
Other receivables | 2 | |||||||
Total current assets | 11 | 2 | ||||||
TOTAL ASSETS | 1,820 | 1,512 | ||||||
Equity attributable to owners of the parent | ||||||||
Issued capital | 22 | |||||||
Share Premium | 1,090 | 136 | ||||||
Legal reserve | 2 | |||||||
Capital contribution | 431 | 431 | ||||||
Retained earnings | 267 | 270 | ||||||
Total equity attributable to owners of the parent | 1,812 | 837 | ||||||
Non-current liabilities | ||||||||
Related party borrowings | 673 | |||||||
Total non-current liabilities | 673 | |||||||
Current liabilities | ||||||||
Related party borrowings | 4 | |||||||
Other payables | 4 | 2 | ||||||
Total current liabilities | 8 | 2 | ||||||
TOTAL LIABILITIES | 8 | 675 | ||||||
TOTAL EQUITY and LIABILITIES | € 1,820 | € 1,512 |
Company financial informatio136
Company financial information - Comprehensive income (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | |
Statement of comprehensive income | ||||||
Finance expense | $ | $ (649) | $ (682) | $ (590) | |||
Finance income | $ | 88 | |||||
Profit/(loss) before tax | $ | 23 | (19) | (87) | |||
Income tax | $ | $ (40) | $ 55 | $ 70 | |||
Ardagh Group S.A. | ||||||
Statement of comprehensive income | ||||||
Dividend income | € 150 | € 267 | ||||
Other external charges | (1) | |||||
Finance expense | (1) | (64) | € (84) | |||
Finance income | 112 | 85 | ||||
Profit before exceptional items | 148 | 315 | 1 | |||
Exceptional finance costs | (47) | |||||
Profit/(loss) before tax | 148 | 268 | 1 | |||
Profit and total comprehensive income for the year | € 148 | € 268 | € 1 |
Company financial informatio137
Company financial information - Cash flows (Details) € in Millions, $ in Millions | Sep. 21, 2016USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) |
Cash flows from operating activities | |||||||
Cash generated from operations | $ | $ 1,523 | $ 1,225 | $ 1,059 | ||||
Cumulative PIK interest paid | $ | (205) | ||||||
Net cash from operating activities | $ | 962 | 515 | 633 | ||||
Cash flows from investing activities | |||||||
Net cash used in investing activities | $ | (492) | (3,387) | (339) | ||||
Cash flows from financing activities | |||||||
Repayment of borrowings | $ | (4,385) | (2,604) | (221) | ||||
Proceeds from borrowings with related party | $ | 748 | ||||||
Contribution from parent | $ | $ 485 | 485 | |||||
Proceeds from share issuance | $ | 326 | 7 | |||||
Dividends paid | $ | (165) | (304) | |||||
Early redemption premium costs paid | $ | 91 | 121 | 9 | ||||
Deferred debt issue costs paid | $ | (38) | (68) | (1) | ||||
Net cash (outflow)/inflow from financing activities | $ | (577) | 3,053 | (141) | ||||
Net (decrease)/increase in cash and cash equivalents | $ | 30 | (211) | |||||
Cash and cash equivalents at the beginning of the year | $ | 813 | 602 | 503 | ||||
Cash and cash equivalents at the end of the year | $ | $ 784 | $ 813 | $ 602 | ||||
Ardagh Group S.A. | |||||||
Cash flows from operating activities | |||||||
Cash generated from operations | € (1) | ||||||
Increase in receivables | (10) | ||||||
Cumulative PIK interest paid | € (184) | ||||||
Net cash from operating activities | (11) | (184) | |||||
Cash flows from investing activities | |||||||
Repayment of loans from subsidiary undertakings | 1,112 | ||||||
Contribution to subsidiary undertaking | (299) | (1,110) | |||||
Dividends received | 150 | 267 | |||||
Net cash used in investing activities | (149) | 269 | |||||
Cash flows from financing activities | |||||||
Repayment of borrowings | (880) | ||||||
Proceeds from borrowings with related party | 671 | ||||||
Contribution from parent | 431 | ||||||
Proceeds from share issuance | 309 | 6 | |||||
Dividends paid | (148) | (270) | € 0 | ||||
Early redemption premium costs paid | 45 | ||||||
Net cash (outflow)/inflow from financing activities | 161 | (87) | |||||
Net (decrease)/increase in cash and cash equivalents | 1 | (2) | |||||
Cash and cash equivalents at the beginning of the year | € 2 | 2 | |||||
Cash and cash equivalents at the end of the year | € 1 | € 2 |
Company financial informatio138
Company financial information - Maturity analysis of borrowings (Details) € in Millions, $ in Millions | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) |
Maturity analysis of borrowings including related party borrowings | ||||
Borrowings | $ 8,308 | $ 8,590 | ||
Not later than one year | ||||
Maturity analysis of borrowings including related party borrowings | ||||
Borrowings | 2 | 8 | ||
Between one and two years | ||||
Maturity analysis of borrowings including related party borrowings | ||||
Borrowings | 1 | 8 | ||
Between two and five years | ||||
Maturity analysis of borrowings including related party borrowings | ||||
Borrowings | 1,154 | 3,512 | ||
Later than five years | ||||
Maturity analysis of borrowings including related party borrowings | ||||
Borrowings | $ 7,151 | $ 5,062 | ||
Ardagh Group S.A. | ||||
Maturity analysis of borrowings including related party borrowings | ||||
Borrowings | € | € 0 | € 673 | ||
Ardagh Group S.A. | Later than five years | ||||
Maturity analysis of borrowings including related party borrowings | ||||
Borrowings | € | € 673 |
Company financial informatio139
Company financial information - Distributions paid and received and commitments and contingencies (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | |
Distributions paid and received | |||||
Dividend paid to shareholders | $ | $ 165 | $ 304 | |||
Ardagh Group S.A. | |||||
Distributions paid and received | |||||
Dividend received from subsidiary | € 150 | € 267 | € 0 | ||
Dividend paid to shareholders | € 148 | 270 | € 0 | ||
Commitments and contingencies | |||||
Commitments and contingencies | € 0 |
Company financial informatio140
Company financial information - Additional information (Details) € in Millions, $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
IFRS profit/(loss) reconciliation: | ||||||||||
Profit/(loss) for the year | € 54 | $ 63 | € (67) | $ (74) | € (140) | $ (157) | ||||
IFRS equity reconciliation: | ||||||||||
Equity attributable to owners of parent | (1,148) | (2,070) | (1,982) | $ (1,375) | $ (2,182) | $ (2,158) | $ (2,128) | |||
Ardagh Group S.A. | ||||||||||
IFRS profit/(loss) reconciliation: | ||||||||||
Parent only - IFRS profit for the year | 148 | 268 | 1 | |||||||
IFRS equity reconciliation: | ||||||||||
Equity attributable to owners of parent | 1,812 | 837 | ||||||||
Reportable Legal Entities | Ardagh Group S.A. | ||||||||||
IFRS profit/(loss) reconciliation: | ||||||||||
Parent only - IFRS profit for the year | 148 | 268 | 1 | |||||||
IFRS equity reconciliation: | ||||||||||
Equity attributable to owners of parent | 1,812 | 837 | 402 | |||||||
Consolidation Adjustments | ||||||||||
IFRS profit/(loss) reconciliation: | ||||||||||
Additional loss if subsidiaries had been accounted for on the equity method of accounting as opposed to cost | (94) | (335) | (141) | |||||||
IFRS equity reconciliation: | ||||||||||
Additional loss if subsidiaries had been accounted for on the equity method of accounting as opposed to cost | € (2,960) | € (2,907) | € (2,384) |