ARD Finance 20-F 16 Mar 18 2017 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2017shares
Document and Entity Information [Abstract]
Entity Registrant Name	ARD Finance S.A.
Entity Central Index Key	1,698,039
Document Type	20-F
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	0
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED INCOME STATEMENT - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated 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	(602)	(693)	(527)
Finance income		78
Profit/(loss) before tax	(1)	(95)	(77)
Income tax (charge)/credit	35	(60)	(43)
Profit/(loss) for the year	34	(155)	(120)
Profit/(loss) attributable to:
Owners of the parent	31	(155)	(120)
Non‑controlling interests	3
Before exceptional items
Consolidated 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	(479)	(528)	(514)
Profit/(loss) before tax	250	123	17
Income tax (charge)/credit	(87)	(103)	(75)
Profit/(loss) for the year	163	20	(58)
Exceptional items
Consolidated 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)

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Profit/(loss) for the year	€ 34	€ (155)	€ (120)
Foreign currency translation adjustments:
Arising in the year	(1)	(55)	(139)
Foreign currency translation adjustments	(1)	(55)	(139)
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 income/(expense) for the year	41	(191)	(93)
Total comprehensive income/(expense) for the year	75	(346)	(213)
Attributable to:
Owners of the parent	69	(346)	(213)
Non‑controlling interests	6
Total comprehensive income/(expense) for the year	€ 75	€ (346)	€ (213)

CONSOLIDATED STATEMENT OF FINAN

CONSOLIDATED STATEMENT OF FINANCIAL POSITION - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Non-current assets
Intangible assets	€ 3,422	€ 3,904
Property, plant and equipment	2,808	2,911
Derivative financial instruments	6	124
Deferred tax assets	184	259
Other non-current assets	21	20
Total non-current assets	6,441	7,218
Current assets
Inventories	1,128	1,125
Trade and other receivables	1,062	1,164
Derivative financial instruments	13	11
Cash and cash equivalents	686	776
Total current assets	2,889	3,076
TOTAL ASSETS	9,330	10,294
Equity attributable to owners of the parent
Other reserves	(325)	(329)
Retained earnings	(2,204)	(2,661)
Total equity attributable to owners of the parent	(2,529)	(2,990)
Non-controlling interest	(92)	2
TOTAL EQUITY	(2,621)	(2,988)
Non-current liabilities
Borrowings	8,400	9,699
Employee benefit obligations	831	905
Derivative financial instruments	251	0
Deferred tax liabilities	486	694
Provisions	37	57
Total non-current liabilities	10,005	11,355
Current liabilities
Borrowings	2	8
Interest payable	89	112
Derivative financial instruments	2	8
Trade and other payables	1,660	1,548
Income tax payable	135	182
Provisions	58	69
Total current liabilities	1,946	1,927
TOTAL LIABILITIES	11,951	13,282
TOTAL EQUITY and LIABILITIES	€ 9,330	€ 10,294

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - EUR (€) € in Millions	Total	Foreign currency translation reserve	Cash flow hedges	Retained earnings	Non-controlling interests	Total
Beginning balance at Dec. 31, 2014	€ (2,146)	€ (102)	€ (3)	€ (2,041)	€ 2	€ (2,144)
Profit/(loss) for the year	(120)			(120)		(120)
Other comprehensive (expense)/income	(93)	(139)	1	45		(93)
Return of capital to parent company	(15)			(15)		(15)
Ending balance at Dec. 31, 2015	(2,374)	(241)	(2)	(2,131)	2	(2,372)
Profit/(loss) for the year	(155)			(155)		(155)
Other comprehensive (expense)/income	(191)	(55)	(31)	(105)		(191)
Dividends paid	(270)			(270)		(270)
Ending balance at Dec. 31, 2016	(2,990)	(296)	(33)	(2,661)	2	(2,988)
Profit/(loss) for the year	31			31	3	34
Other comprehensive (expense)/income	38	(1)	5	34	3	41
Share issuance by subsidiary	395			395	(92)	303
Dividends paid	(3)			(3)	(7)	(10)
Non-controlling interest in disposed business					(1)	(1)
Ending balance at Dec. 31, 2017	€ (2,529)	€ (297)	€ (28)	€ (2,204)	€ (92)	€ (2,621)

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Cash generated from operations	€ 1,330	€ 1,109	€ 950
Interest - paid excluding cumulative PIK interest paid	(510)	(372)	(323)
Cumulative PIK interest paid		(184)
Income tax paid	(90)	(84)	(59)
Net cash from operating activities	730	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 software and other intangibles	(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	5,479
Repayment of borrowings	(4,061)	(2,322)	(198)
Return of capital to parent company			(15)
Net proceeds from share issuance by subsidiary	306
Dividends paid to parent company	(3)	(270)
Dividends paid by subsidiary to non-controlling interest	(7)
Early redemption premium costs paid	(85)	(108)	(8)
Deferred debt issue costs paid	(39)	(72)	(2)
Proceeds from the termination of derivative financial instruments	42		81
Net cash (outflow)/inflow from financing activities	(350)	2,707	(142)
Net (decrease)/increase in cash and cash equivalents	(56)	173	122
Cash and cash equivalents at the beginning of the year	776	554	433
Exchange (losses)/gains on cash and cash equivalents	(34)	49	(1)
Cash and cash equivalents at the end of the year	€ 686	€ 776	€ 554

CONSOLIDATED STATEMENT OF CASH7

CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENT OF CASH FLOWS
Interest paid	€ 510	€ 556	€ 323

General information

General information	12 Months Ended
	Dec. 31, 2017
General information
General information	ARD FINANCE S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. General information ARD Finance S.A. (the “Company”) was incorporated in Luxembourg on May 6, 2011. The Company’s registered office is 56, rue Charles Martel, L-2134 Luxembourg. On March 20, 2017 a subsidiary of the Company, Ardagh Group S.A. (“Ardagh”), closed its initial public offering (“IPO”) of 18,630,000 Class A common shares on the New York Stock Exchange (“NYSE”). Following the IPO, the Company recognized a non-controlling interest of €92 million. All of the business of the group of companies controlled by this company (the “Group”) is conducted by Ardagh and its subsidiaries (together the “Ardagh Group”). All of the financing of the Group other than the 7.125%/7.875% $770 million Senior Secured Toggle Notes due 2023, and the 6.625%/7.375% €845 million Senior Secured Toggle Notes due 2023 (the “Toggle Notes”, as described in Note 17) are liabilities of the Ardagh Group. Any description of the business of the Group is a description of the business of the Ardagh Group. The Company and those of its subsidiaries who are above Ardagh Group S.A. in the corporate structure are referred to as the “ARD Finance Group”. 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 euro which is the functional currency of the Company, 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 ARD Finance S.A. (the “Board”) on February 21, 2018. Re-presentation of prior year comparatives In accordance with IFRS 3R ‘Business Combinations’, a number of fair value adjustments were made in relation to the net assets acquired as part of the acquisition of certain beverage can manufacturing assets from Ball Corporation and Rexam PLC (the “Beverage Can Acquisition”) completed on June 30, 2016. The measurement period in respect of the Beverage Can Acquisition during which the Group may adjust the provisional amounts recognized for the assets and liabilities acquired closed on June 30, 2017. The purchase price allocation in respect of the Beverage Can Acquisition was completed on June 30, 2017. Accordingly, the consolidated income statement and consolidated statement of comprehensive income for the year ended December 31, 2016, the consolidated statement of financial position at December 31, 2016, and the consolidated statement of changes in equity for the year ended December 31, 2016 were re-presented to reflect the revised fair values and related tax consequences. This re-presentation has no impact on the consolidated statement of cash flows as previously reported. Please refer to Note 22 for details of the final fair value of assets acquired and liabilities assumed as part of the Beverage Can Acquisition. 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) 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. (ii) 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 (“CGU”) 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 - 7 years Customer relationships - 15 years Technology - 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 - 40 years Plant and machinery - 40 years Molds - 3 years Office equipment and vehicles - 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 CGU. 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 17. 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 17 and 18) · Contingent consideration · Quantitative disclosures of fair value measurement hierarchy (Note 17) · Financial instruments (including those carried at amortized cost) (Note 17) 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 c

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’s performance is reviewed 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 34 (155) (120) Income tax (credit)/charge (Note 6) (35) 60 43 Net finance expense (Note 5) 602 615 527 Depreciation and amortization (Notes 8, 9) 611 507 403 Exceptional operating items (Note 4) 128 131 81 Adjusted EBITDA 1,340 1,158 934 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 2,967 1,714 1,376 1,587 7,644 Adjusted EBITDA 491 235 301 313 1,340 Capital expenditure 156 71 98 111 436 Segment assets 3,740 1,549 1,855 2,186 9,330 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 2,235 1,059 1,392 1,659 6,345 Adjusted EBITDA 366 139 296 357 1,158 Capital expenditure 72 35 90 121 318 Segment assets 3,946 1,835 1,899 2,614 10,294 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 1,650 390 1,452 1,707 5,199 Adjusted EBITDA 260 44 284 346 934 Capital expenditure 46 15 109 134 304 Segment assets 1,863 405 1,766 2,305 6,339 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. 2,899 2,437 1,997 United Kingdom 781 724 662 Germany 712 656 573 At December 31, 2017 2016 Non-current assets €m €m U.S. 1,849 2,189 Germany 855 760 United Kingdom 564 527 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 46 8 — Restructuring costs 32 14 12 Start-up costs 7 5 27 Exceptional impairment - working capital — — (2) Non-cash inventory adjustment — 9 — Past service credit — (21) — Exceptional items - cost of sales 85 15 37 Transaction related costs - acquisition, integration and IPO 43 114 41 Restructuring and other costs — 2 3 Exceptional items - SGA expenses 43 116 44 Debt refinancing and settlement costs 109 140 13 Exceptional loss on derivative financial instruments 14 10 — Interest payable on acquisition notes — 15 — Exceptional items - finance expense 123 165 13 Exceptional gain on derivative financial instruments — (78) — Exceptional items - finance income — (78) — Total exceptional items 251 218 94 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 €251 million have been recognized for the year ending December 31, 2017, primarily comprising: · €109 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. · €46 million property, plant and equipment impairment charges arising principally from capacity realignment in Glass Packaging North America and Metal Packaging Europe. · €43 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. · €14 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 €11 million relates to cumulative losses recycled from other comprehensive income. · €32 million relating to capacity realignment and restructuring costs in Metal Packaging Europe. · €7 million of start-up costs in Metal Packaging Americas and Glass Packaging North America. 2016 Exceptional items of €218 million have been recognized in the year ended December 31, 2016, primarily comprising: · €21 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 €7 million in Metal Packaging Europe, €2 million in Metal Packaging Americas and €4 million in Glass Packaging North America. · €114 million transaction related costs primarily attributable to the IPO and Beverage Can Acquisition. · €140 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. · €15 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. · €8 million plant, property and equipment impairment charges, of which €5 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. · €78 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 €10 million exceptional loss on derivative financial instruments relating to hedge ineffectiveness on the Group’s CCIRS. 2015 Exceptional items of €94 million have been incurred in the year ended December 31, 2015, primarily comprising: · €38 million transaction costs, largely associated with the Group’s withdrawn initial public offering of its Metal Packaging business. · €27 million start‑up costs related to two plants in Metal Packaging Americas. · Restructuring costs of €9 million in Metal Packaging Europe and €5 million in Glass Packaging North America. · €3 million acquisition and disposal costs. · €2 million reversal of impairment of assets in Metal Packaging Europe. · €13 million finance costs comprised of €8 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 492 447 378 Term loan 5 26 26 Other interest expense 6 7 8 Interest expense 503 480 412 Net pension interest cost (Note 18) 22 24 23 Loss on derivative financial instruments 24 — — Foreign currency translation (gains)/losses (68) 29 77 Other finance (income)/expense (2) (5) 2 Finance expense before exceptional items 479 528 514 Exceptional finance expense (Note 4) 123 165 13 Total finance expense 602 693 527 Exceptional finance income (Note 4) — (78) — Net finance expense 602 615 527

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 88 63 54 Adjustments in respect of prior years 1 (18) 33 Total current tax 89 45 87 Deferred tax: Deferred tax for the year (119) (10) 7 Adjustments in respect of prior years (5) 25 (51) Total deferred tax (124) 15 (44) Income tax (credit)/charge (35) 60 43 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 Loss before tax (1) (95) (77) Loss before tax multiplied by the standard rate of Luxembourg corporation tax: 27.08% (2016: 29.22%; 2015: 29.22%) — (28) (22) Tax losses for which no deferred income tax asset was recognized — 1 2 Re-measurement of deferred taxes (69) (5) (5) Adjustment in respect of prior years (4) 7 (18) Income subject to state and other local income taxes 15 9 11 Income taxed at rates other than standard tax rates (17) 19 27 Non-deductible items 33 60 52 Other 7 (3) (4) Income tax (credit)/charge (35) 60 43 The total income tax (credit)/charge outlined above for each year includes tax credits of €122 million in 2017 (2016: €43 million; 2015: €32 million) in respect of exceptional items. This includes a credit of €68 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 €68 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.

Employee costs

Employee costs	12 Months Ended
	Dec. 31, 2017
Employee costs
Employee costs	7 . Employee costs Year ended December 31, 2017 2016 2015 €m €m €m Wages and salaries 1,196 1,076 927 Social security costs 186 151 133 Defined benefit plan pension costs (Note 18) 41 42 45 Defined benefit past service credit (Note 18) (9) (39) — Defined contribution plan pension costs (Note 18) 31 31 14 1,445 1,261 1,119 At December 31, Employees 2017 2016 2015 Production 20,793 20,823 17,068 Administration 2,699 2,712 1,790 23,492 23,535 18,858

Intangible assets

Intangible assets	12 Months Ended
	Dec. 31, 2017
Intangible assets
Intangible assets	8 . Intangible assets Customer Technology Goodwill relationships and other Software Total €m €m €m €m €m Cost At January 1, 2016 1,047 851 181 49 2,128 Acquisitions 904 1,247 31 11 2,193 Additions — — 8 3 11 Impairment — — — (2) (2) Exchange 30 44 2 — 76 At December 31, 2016 1,981 2,142 222 61 4,406 Amortization At January 1, 2016 (233) (51) (34) (318) Charge for the year (143) (23) (7) (173) Exchange (2) (9) — (11) At December 31, 2016 (378) (83) (41) (502) Net book value At December 31, 2016 1,981 1,764 139 20 3,904 Cost At January 1, 2017 1,981 2,142 222 61 4,406 Additions — — 5 14 19 Derecognition of fully amortized assets — (36) — — (36) Exchange (146) (142) (18) (2) (308) At December 31, 2017 1,835 1,964 209 73 4,081 Amortization At January 1, 2017 (378) (83) (41) (502) Charge for the year (199) (28) (8) (235) Derecognition of fully amortized assets 36 — — 36 Exchange 35 6 1 42 At December 31, 2017 (506) (105) (48) (659) Net book value At December 31, 2017 1,835 1,458 104 25 3,422 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') 267 268 Metal Packaging Americas - excluding the Beverage Can Business ('Metal Americas') 24 28 Metal Packaging Europe - Beverage Can Business ('Beverage Europe') 504 507 Metal Packaging Americas - Beverage Can Business ('Beverage Americas') 364 414 Glass Packaging Europe 54 57 Glass Packaging North America 622 707 Total Goodwill 1,835 1,981 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 of Directors of Ardagh Group S.A. (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 268 28 507 414 57 707 Excess of recoverable amount 2,178 372 582 274 2,057 1,630 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	9. 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 761 2,855 51 3,667 Acquisitions (Note 22) 171 461 — 632 Additions 3 315 5 323 Impairment — (8) — (8) Disposals (6) (192) (10) (208) Transfers 13 (29) 16 — Exchange (9) (43) (1) (53) At December 31, 2016 933 3,359 61 4,353 Depreciation At January 1, 2016 (174) (1,161) (25) (1,360) Charge for the year (26) (299) (9) (334) Disposals 4 191 9 204 Exchange 6 41 1 48 At December 31, 2016 (190) (1,228) (24) (1,442) Net book value At December 31, 2016 743 2,131 37 2,911 Cost At January 1, 2017 933 3,359 61 4,353 Additions 7 447 5 459 Impairment (Note 4) — (46) — (46) Disposals (4) (142) (9) (155) Transfers 10 (8) 6 8 Exchange (34) (156) (4) (194) At December 31, 2017 912 3,454 59 4,425 Depreciation At January 1, 2017 (190) (1,228) (24) (1,442) Charge for the year (31) (336) (9) (376) Disposals 2 139 9 150 Transfers 1 (2) 1 — Exchange 3 46 2 51 At December 31, 2017 (215) (1,381) (21) (1,617) Net book value At December 31, 2017 697 2,073 38 2,808 Depreciation expense of €369 million (2016: €329 million; 2015: €289 million) has been charged in cost of sales and €7 million (2016: €5 million; 2015: €5 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 €201 million (2016: €114 million). Included in property, plant and equipment is an amount for land of €188 million (2016: €195 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 of Directors of Ardagh Group S.A. 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 €46 million (2016: €8 million) has been recognized, of which €32 million (2016: €nil) relates to the impairment of plant and machinery in Glass Packaging North America and €14 million (2016: €5 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 €10 million (2016: €10 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 5 5 5 Land and buildings 19 24 21 Office equipment and vehicles 10 9 8 34 38 34 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 29 30 27 Later than one year and not later than five years 64 69 69 Later than five years 67 68 67 160 167 163 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 84 110 30 Not contracted for 12 19 6 96 129 36

Other non-current assets

Other non-current assets	12 Months Ended
	Dec. 31, 2017
Other non-current assets
Other non‑current assets	10 . Other non‑current assets At December 31, 2017 other non‑current assets of €21 million (2016: €20 million) include €8 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	11. 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 397 (670) (273) Acquisition (Note 22) 73 (219) (146) (Charged)/credited to the income statement (Note 6) (42) 27 (15) Credited/(charged) to other comprehensive income 17 (5) 12 Reclassification 3 (3) — Exchange (3) (10) (13) At December 31, 2016 445 (880) (435) (Charged)/credited to the income statement (Note 6) (60) 184 124 (Charged)/credited to other comprehensive income (6) 1 (5) Reclassification 4 (4) — Exchange (26) 40 14 At December 31, 2017 357 (659) (302) The components of deferred income tax assets and liabilities are as follows: At December 31, 2017 2016 €m €m Tax losses 28 32 Employee benefit obligations 156 172 Depreciation timing differences 75 82 Provisions 58 94 Other 40 65 357 445 Available for offset (173) (186) Deferred tax assets 184 259 Intangible assets (329) (482) Accelerated depreciation and other fair value adjustments (308) (359) Other (22) (39) (659) (880) Available for offset 173 186 Deferred tax liabilities (486) (694) 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) (17) Employee benefit obligations (19) (12) 13 Depreciation timing differences (5) (12) (2) Provisions (23) — (7) Other deferred tax assets (11) (15) 19 Intangible assets 138 38 30 Accelerated depreciation and other fair value adjustments 26 (4) 17 Other deferred tax liabilities 20 (7) (9) 124 (15) 44 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 €52 million (2016: €43 million) in respect of tax losses amounting to €311 million (2016: €223 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 €42 million (2016: €70 million) in respect of capital losses amounting to €199 million (2016: €201 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	12. Inventories At December 31, 2017 2016 €m €m Raw materials and consumables 308 289 Mold parts 43 44 Work-in-progress 71 68 Finished goods 706 724 1,128 1,125 Certain inventories held by the Ardagh Group have been pledged as security under the Group’s Global Asset Based Loan facility (Note 17). 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	13. Trade and other receivables At December 31, 2017 2016 €m €m Trade receivables 846 920 Other receivables and prepayments 216 244 1,062 1,164 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, 14 14 14 Provision for receivables impairment 5 1 2 Receivables written off during the year as uncollectible — (1) (2) At December 31, 19 14 14 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 €51 million (2016: €46 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 38 40 Three to six months past due 4 4 Over six months past due 9 2 51 46

Cash and cash equivalents

Cash and cash equivalents	12 Months Ended
	Dec. 31, 2017
Cash and cash equivalents
Cash and cash equivalents	14. Cash and cash equivalents At December 31, 2017 2016 €m €m Cash at bank and in hand 567 733 Short term bank deposits 108 16 Restricted cash 11 27 686 776 Within cash and cash equivalents, the Group had €11 million of restricted cash at December 31, 2017 (2016: €27 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	15. Issued capital and reserves Issued and fully paid shares: Number of shares (millions) €m At December 31, 2016 Ordinary shares (par value €0.01) 10.0 — Issue of shares-ordinary shares (par value €0.01) 0.3 — At December 31, 2017 10.3 — During the year, the Company issued 256,410 ordinary shares for consideration equal to the par value of €0.01 each. Further during the year ended December 31, 2017, the Group paid dividends of €10 million (2016: €270 million), comprising €7 million to the non-controlling interest of a subsidiary of the Company and €3 million to the Company’s ultimate parent company .

Financial risk factors

Financial risk factors	12 Months Ended
	Dec. 31, 2017
Financial risk factors
Financial risk factors	16. 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 net 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 5.95x (2016: 7.61x; 2015: 6.26x). 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 93.2% (2016: 78.0%) fixed with a weighted average interest rate of 5.7% (2016: 5.6%; 2015: 6.2%). The weighted average interest rate of the Group for the year ended December 31, 2017 was 5.3% (2016: 5.4%; 2015: 6.2%). 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 €6 million (2016: €20 million). Currency exchange risk The Group operates in 22 countries, across five continents. The Group’s main currency exposure in the year to December 31, 2017 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 euro may have a significant impact on the Group’s financial condition and results of operations as reported in euro. When considering the Group’s position, the Group believes that a strengthening of the euro exchange rate by 1% against all other foreign currencies from the December 31, 2017 rate would increase shareholders’ equity by approximately €2 million (2016: €13 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 73% and 72% 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	17. Financial assets and liabilities The Group’s net external debt was as follows: At December 31, 2017 2016 €m €m Loan notes 8,392 9,070 Term loan — 627 Other borrowings 10 10 Total borrowings 8,402 9,707 Cash and cash equivalents (686) (776) Derivative financial instruments used to hedge foreign currency and interest rate risk 251 (124) Net debt 7,967 8,807 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 Liabilities guaranteed by the ARD Finance Group 7.125%/7.875% Senior Secured Toggle Notes USD 770 15-Sep-23 Bullet 770 — 6.625%/7.375% Senior Secured Toggle Notes EUR 845 15-Sep-23 Bullet 845 — Liabilities guaranteed by the Ardagh Group 2.750% Senior Secured Notes EUR 15-Mar-24 Bullet — 4.625% Senior Secured Notes USD 15-May-23 Bullet 834 — 4.125% Senior Secured Notes EUR 15-May-23 Bullet 440 — 4.250% Senior Secured Notes USD 15-Sep-22 Bullet 596 — 4.750% Senior Notes GBP 15-Jul-27 Bullet 451 — 6.000% Senior Notes USD 15-Feb-25 Bullet 1,414 — 7.250% Senior Notes USD 15-May-24 Bullet 1,376 — 6.750% Senior Notes EUR 15-May-24 Bullet 750 — 6.000% Senior Notes USD 30-Jun-21 Bullet 367 — Global Asset Based Facility USD 07-Dec-22 Revolving — — 678 Finance lease obligations GBP/EUR Amortizing — 7 — Other borrowings / credit lines EUR Amortizing — 3 1 Total borrowings / undrawn facilities 8,475 679 Deferred debt issue costs and bond premiums (73) — Net borrowings / undrawn facilities 8,402 679 Cash and cash equivalents (686) 686 Derivative financial instruments used to hedge foreign currency and interest rate risk 251 — Net debt / available liquidity 7,967 1,365 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 Liabilites guaranteed by the Ard Finance Group 7.125%/7.875% Senior Secured Toggle Notes USD 770 15-Sep-23 Bullet 770 730 — 6.625%/7.375% Senior Secured Toggle Notes EUR 845 15-Sep-23 Bullet 845 845 — Liabilities guaranteed by the Ardagh Group 4.250% First Priority Senior Secured Notes EUR 1,155 15-Jan-22 Bullet 1,155 1,155 — 4.625% Senior Secured Notes USD 1,000 15-May-23 Bullet 1,000 949 — 4.125% Senior Secured Notes EUR 440 15-May-23 Bullet 440 440 — First Priority Senior Secured Floating Rate Notes USD 1,110 15-Dec-19 Bullet 1,110 1,053 — Senior Secured Floating Rate Notes USD 500 15-May-21 Bullet 500 474 — 6.000% Senior Notes USD 440 30-Jun-21 Bullet 440 417 — 6.250% Senior Notes USD 415 31-Jan-19 Bullet 415 394 — 6.750% Senior Notes USD 415 31-Jan-21 Bullet 415 394 — 7.250% Senior Notes USD 1,650 15-May-24 Bullet 1,650 1,565 — 6.750% Senior Notes EUR 750 15-May-24 Bullet 750 750 — Term Loan B Facility USD 663 17-Dec-21 Amortizing 663 629 — HSBC Securitization Program EUR 102 14-Jun-18 Revolving — — 102 Bank of America Facility USD 155 11-Apr-18 Revolving — — 147 Finance lease obligations GBP/EUR Amortizing 7 7 — Other borrowings / credit lines EUR 4 Amortizing 3 3 1 Total borrowings / undrawn facilities 9,805 250 Deferred debt issue costs and bond discount (98) — Net borrowings / undrawn facilities 9,707 250 Cash and cash equivalents (776) 776 Derivative financial instruments used to hedge foreign currency and interest rate risk (124) — Net debt / available liquidity 8,807 1,026 The following table summarizes the Group’s movement in net debt: 2017 2016 €m €m Net decrease/(increase) in cash and cash equivalents per consolidated statement of cash flows 90 (222) (Decrease)/increase in net borrowings and derivative financial instruments (930) 3,179 (Decrease)/increase in net debt (840) 2,957 Net debt at January 1, 8,807 5,850 Net debt at December 31, 7,967 8,807 The (decrease)/increase in net borrowings and derivative financial instruments includes proceeds from borrowings of €3.5 billion (2016: €5.5 billion), repayments of borrowings of €4.1 billion (2016: €2.3 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) which partially offsets a corresponding foreign exchange gain on borrowings of €0.8 billion (2016: loss of €0.3 billion), with the net foreign exchange gain on borrowings impacting net debt by approximately €0.4 billion (2016: loss 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 962 3,332 Greater than five years 7,437 6,359 8,402 9,707 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 482 2 1,660 Between one and two years 481 70 — Between two and five years 2,373 55 — Greater than five years 8,128 126 — Derivative Trade and financial other Borrowings instruments payables At December 31, 2016 €m €m €m Within one year or on demand 555 8 1,548 Between one and two years 555 — — Between two and five years 4,724 — — Greater than five years 7,100 — — The carrying amount and fair value of the Group’s borrowings are as follows: Carrying value Deferred debt Amount issue costs and drawn bond premium Total Fair value At December 31, 2017 €m €m €m €m Loan notes 8,465 (73) 8,392 8,910 Finance leases 7 — 7 7 Bank loans, overdrafts and revolving credit facilities 3 — 3 3 8,475 (73) 8,402 8,920 Carrying value Deferred debt Amount issue costs and drawn bond discount Total Fair value At December 31, 2016 €m €m €m €m Loan notes 9,166 (96) 9,070 9,377 Term loan 629 (2) 627 635 Finance leases 7 — 7 7 Bank loans, overdrafts and revolving credit facilities 3 — 3 3 9,805 (98) 9,707 10,022 Financing activity 2017 – Ardagh Group On January 30, 2017, the Ardagh 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 Ardagh 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 Ardagh 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, the Ardagh Group 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 Ardagh 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 Ardagh 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 Ardagh Group’s $500m Senior Secured Floating Rate Notes due 2021, and to pay applicable redemption premiums and accrued interest. On August 1, 2017, the Ardagh 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 Ardagh 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 Ardagh Group has €678 million available under this facility. 2016 – ARD Finance Group On September 16, 2016, the Group issued the following notes: · $770 million 7.125%/7.875% Senior Secured Toggle Notes due 2023; and · €845 million 6.625%/7.375% Senior Secured Toggle Notes due 2023. The net proceeds from the issuance and sale of these notes were used to redeem the €710 million aggregate principal amount of the Ardagh Group’s 8.625% Senior PIK Notes due 2019 and the €250 million aggregate principal amount of the Ardagh Group’s 8.375% Senior PIK Notes due 2019, as well as to finance a dividend. 2016 – Ardagh Group On May 16, 2016 the Ardagh 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 October 3, 2016 the Ardagh Group agreed to extend the maturity of the Term Loan B Facility by two years to December 2021. On November 15, 2016, the Ardagh 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 7.125% / 7.875% Senior Secured Toggle Notes 7.49 % — — 7.57 % — — 6.625% / 7.375% Senior Secured Toggle Notes — 7.03 % — — 7.05 % — 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 2,770 3,167 U.S. dollar 5,183 6,538 British pound 449 2 8,402 9,707 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 678 249 679 250 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 14 164 — — Cross currency interest rate swaps — — 251 2,591 Forward foreign exchange contracts 3 149 1 43 NYMEX gas swaps — — 1 17 Carbon futures 2 8 — — At December 31, 2017 19 321 253 2,651 Assets Liabilities Contractual Contractual or notional or notional Fair values amounts Fair values amounts €m €m €m €m Fair Value Derivatives Metal forward contracts 8 187 — — Cross currency interest rate swap 124 1,499 — — Forward foreign exchange contracts — — 8 195 NYMEX gas swaps 2 15 — — Carbon futures 1 2 — — At December 31, 2016 135 1,703 8 195 Derivative instruments with a fair value of €6 million (2016: €124 million) are classified as non-current assets and €13 million (2016: €11 million) as current assets in the consolidated statement of financial position at December 31, 2017. Derivative instruments with a fair value of €251 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 Ardagh 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 Ardagh Group hedges certain of its external borrowings and interest payable thereon using CCIRS, with a net fair value liability at December 31, 2017 of €251 million (December 31, 2016: net asset of €124 million). In the year ended December 31, 2017 the Ardagh 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 Ardagh Group terminated $500 million of its existing U.S. dollar to British pound CCIRS, due for maturity in May 2022. The Ardagh Group received net proceeds of €42 million in consideration and recognized an exceptional loss of €14 million on the termination (see Note 4). 2016 In June 2016, the Ardagh Group entered into cross currency interest rate swaps totaling $1,300 million. These swaps were entered into in order to partially swap the U.S. dollar principal and interest repayments on the Ardagh Group’s $1,650 million 7.250% Senior Notes due 2024 equally into euro and British pounds. The Ardagh Group also hedges a further $440 million of its external debt and interest thereon into euro using a CCIRS. An exceptional gain of €78 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 €10 million was incurred relating to cross currency interest rate swaps for which hedge accounting did not apply (see Note 4). In December 2015, the Ardagh 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 Ardagh Group received proceeds of €81 million in consideration of the termination. Net investment hedge in foreign operations The Ardagh 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 Ardagh 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 recognised in other comprehensive income. The gain or loss relating to an ineffective portion is recognised immediately in the consolidated income statement within finance income or expense respectively. Gains and losses accumulated in other comprehensive income are recycled to the consolidated income statement when the foreign operation is sold. The amount that has been recognised in the consolidated income statement due to ineffectiveness is €nil (2016: €nil; 2015: €nil). Metal forward contracts The Ardagh 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 Ardagh 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 Ardagh 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 Ardagh 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	18. Employee benefit obligations The Ardagh 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 Ardagh Group has other employee benefit obligations in certain territories. Total employee obligations recognized in the consolidated statement of financial position of €831 million (2016: €905 million) include other employee benefit obligations of €110 million (2016: €122 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 (1,094) (1,137) (338) (345) (834) (898) (16) (540) (21) (22) (2,303) (2,942) Assets 983 1,012 — — 589 626 — 513 10 8 1,582 2,159 Net obligations (111) (125) (338) (345) (245) (272) (16) (27) (11) (14) (721) (783) 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 (38) (37) (40) Cost of sales ‑ past service credit 7 29 — SGA ‑ current service cost (3) (5) (5) SGA ‑ past service credit 2 10 — (32) (3) (45) Finance expense (Note 5) (22) (24) (23) (54) (27) (68) 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 (5) 24 8 Actuarial (loss)/gain arising from changes in financial assumptions (93) (251) 99 Actuarial gain/(loss) arising from changes in experience 2 (10) 30 (96) (237) 137 Re-measurement of plan assets: Actual return/(loss) less expected return on plan assets 140 112 (81) Actuarial gain/(loss) for the year on defined benefit pension schemes 44 (125) 56 Actuarial (loss)/gain on other long term and end of service employee benefits (1) 4 16 43 (121) 72 The actual return on plan assets resulted in a gain of €203 million in 2017 (2016: €186 million gain; 2015: €9 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, (2,942) (2,614) 2,159 1,976 Interest income — — 63 74 Acquired — (354) — 271 Current service cost (41) (42) — — Past service credit 9 39 — — Interest cost (82) (95) — — Administration expenses paid from plan assets — — (2) (3) Re-measurements (96) (237) 140 112 Obligations/(assets) extinguished on reclassification 535 187 (535) (187) Employer contributions — — 45 43 Employer contributions ‑ acquisition related — — — 7 Employee contributions (2) (5) 2 5 Benefits paid 145 118 (145) (118) Exchange 171 61 (145) (21) At December 31, (2,303) (2,942) 1,582 2,159 The defined benefit obligations above include €379 million (2016: €380 million) of unfunded obligations. Employer contributions above include €6 million contributed under schemes extinguished during the year (2016: €11 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 €9 million was recognised such that on the date of transfer the defined benefit obligation and asset were both €535 million (December 31, 2016: €524 million and €513 million respectively). The Ardagh 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 Ardagh Group recognized a past service credit of €21 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 €18 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 €8 million was recognized such that on the date of transfer, the defined benefit obligation and asset were both €187 million (December 31, 2015: €174 million and €168 million respectively). The net obligations and assets acquired as part of the Beverage Can Acquisition exclude €33 million other employee benefit obligations mainly relating to a post‑retirement medical scheme in North America. The Ardagh Group was required to make a once‑off contribution of €7 million in respect of the acquired defined benefit schemes. Plan assets comprise: At December 31, 2017 2017 2016 2016 €m % €m % Equities 981 62 1,152 53 Target return funds 248 16 275 13 Bonds 208 13 558 26 Cash/other 145 9 174 8 1,582 100 2,159 100 The pension assets do not include any of the Company’s ordinary shares, other securities or other Ardagh 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 Ardagh 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 €180 million (2016: €243 million). If the discount rate were to increase by 50 basis points, the carrying amount of the pension obligations would decrease by an estimated €192 million (2016: €242 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 €80 million (2016: €93 million). If the inflation rate were to increase by 50 basis points, the carrying amount of the pension obligations would increase by an estimated €76 million (2016: €93 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 €86 million (2016: €93 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 €81 million (2016: €92 million). The impact of increasing the life expectancy by one year would result in an increase in the Ardagh Group’s liability of €46 million at December 31, 2017 (2016: €63 million), holding all other assumptions constant. The Ardagh Group’s best estimate of contributions expected to be paid to defined benefit plans in 2018 is €30 million (2017: €37 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 97 95 98 101 104 560 The Ardagh Group also has defined contribution plans; the contribution expense associated with these plans for 2017 was €31 million (2016: €31 million; 2015: €14 million). The Ardagh Group’s best estimate of the contributions expected to be paid to these plans in 2018 is €36 million. Other employee benefits At December 31, 2017 2016 €m €m End of service employee benefits 21 23 Long term employee benefits 89 99 110 122 End of service employee benefits comprise principally amounts due to be paid to employees leaving the Ardagh 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.

Provisions

Provisions	12 Months Ended
	Dec. 31, 2017
Provisions
Provisions	19 . Provisions At December 31, 2017 2016 €m €m Current 58 69 Non-current 37 57 95 126 Other Total Restructuring provisions provisions €m €m €m At January 1, 2016 18 78 96 Acquisitions (Note 22) — 38 38 Provided 25 29 54 Released (11) (15) (26) Paid (10) (28) (38) Exchange — 2 2 At December 31, 2016 22 104 126 Provided 11 23 34 Released (2) (28) (30) Paid (9) (19) (28) Exchange (1) (6) (7) At December 31, 2017 21 74 95 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	20. Trade and other payables At December 31, 2017 2016 €m €m Trade payables 1,225 1,055 Other payables and accruals 365 419 Amounts owed to parent company — 3 Other tax and social security payable 41 32 Payables and accruals for exceptional items 29 39 1,660 1,548 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	21. Cash generated from operating activities Year ended December 31, 2017 2016 2015 €m €m €m Profit/(loss) for the year 34 (155) (120) Income tax (credit)/charge (Note 6) (35) 60 43 Net finance expense (Note 5) 602 615 527 Depreciation and amortization (Notes 8, 9) 611 507 403 Exceptional operating items (Note 4) 128 131 81 Movement in working capital 64 120 90 Acquisition-related, IPO, start-up and other exceptional costs paid (65) (159) (54) Exceptional restructuring paid (9) (10) (20) Cash generated from operations 1,330 1,109 950

Business combinations and dispo

Business combinations and disposals	12 Months Ended
	Dec. 31, 2017
Business combinations and disposals
Business combinations and disposals	22. Business combinations and disposals On April 22, 2016 the Ardagh 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 €2.8 billion ($3.0 billion). This was a strategically important acquisition which was highly complementary to the Ardagh 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 10 Property, plant and equipment 632 Intangible assets 1,289 Inventories 265 Trade and other receivables 331 Trade and other payables (436) Net deferred tax liability (146) Employee benefit obligations (116) Provisions (38) Total identifiable net assets 1,791 Goodwill 904 Total consideration 2,695 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 €268 million which relates to the North American Beverage Can Business is expected to be deductible for tax purposes.

Related party information

Related party information	12 Months Ended
	Dec. 31, 2017
Related party information
Related party information	23. 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 of ARD Finance S.A.. 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 Four of the ARD Finance S.A. directors (Paul Coulson, Brendan Dowling, Wolfgang Baertz, and Herman Troskie) also serve as directors in the Yeoman group of companies. All of the existing directors of ARD Finance S.A. are members of the Board of Directors of ARD Holdings S.A.. (iv) Joint ventures At December 31, 2017, the Ardagh Group’s investment in joint ventures is €8 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 of Directors of Ardagh Group S.A. and the Ardagh 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 €6 million (2016: €4 million, 2015: €4 million). Year ended December 31, 2017 2016 2015 €m €m €m Salaries and other short term employee benefits 11 11 9 Post-employment benefits 1 1 1 12 12 10 Transaction related and other compensation 6 26 — 18 38 10 (vi) Pension schemes The Ardagh Group’s pension schemes are related parties. For details of all transactions during the year, please read Note 18. (vii) Senior Secured Toggle Notes due 2023 Certain Directors of the Company acquired and hold the Toggle Notes, as issued by the Company in September 2016. There have been no materially significant transactions by the Directors relating to the Toggle Notes in the year ended December 31, 2017. (viii) Subsidiaries The following table provides information relating to the Ardagh Group’s 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	24. Contingencies Environmental issues The Ardagh 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 Ardagh 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 Ardagh 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. With the exception of the above legal matters, the Ardagh Group is involved in certain other legal proceedings arising in the normal course of its business. The Ardagh 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	25. Events after the reporting period There have been no significant events after the balance sheet date which would require disclosure in or amendment to the financial statements.

Company financial information

Company financial information	12 Months Ended
	Dec. 31, 2017
Company financial information
Company financial information	26. 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 ARD Finance 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. i) Statement of financial position At December 31, 2017 2016 €m €m Non-current assets Investments in subsidiary undertakings 882 837 Receivables from subsidiary undertaking 642 730 1,524 1,567 Current assets Receivables from subsidiary undertaking 8 15 Cash and cash equivalents 32 4 40 19 Total assets 1,564 1,586 Equity attributable to owners of the parent Issued capital — — Retained earnings 54 (15) Total equity 54 (15) Non-current liabilities Borrowings 1,479 1,569 1,479 1,569 Current liabilities Interest payable 31 31 Other payables — 1 31 32 Total liabilities 1,510 1,601 Total equity and liabilities 1,564 1,586 ii) Statement of comprehensive income Year ended December 31, 2017 2016 2015 ` €m €m €m Dividend income 133 270 — Finance expense (111) (31) — Finance income 50 14 — Profit before tax 72 253 — Income tax — — — Profit and total comprehensive income for the year 72 253 — iii) Statement of cash flows Year ended December 31, 2017 2016 2015 €m €m €m Cash flows from operating activities Cash generated from operations — — — Related party interest received 54 — — Interest paid (105) — — Net cash used in operating activities (51) — — Cash flows from investing activities Repayment of loans from subsidiary undertakings (3) (404) — Contribution to subsidiary undertaking (45) (431) — Dividends received 133 270 — Loans granted to subsidiary undertakings — (679) — Net cash received from/(used in) investing activities 85 (1,244) — Cash flows from financing activities Net proceeds from borrowings — 1,529 — Dividends paid (3) (270) — Deferred debt issue costs paid (3) (12) — Net cash (outflow)/inflow from financing activities (6) 1,247 — Net increase in cash and cash equivalents 28 3 — Cash and cash equivalents at the beginning of the year 4 1 1 Cash and cash equivalents at the end of the year 32 4 1 iv) Maturity analysis of the Company’s borrowings At December 31, 2017, the Company had €1,479 million of borrowings (2016: €1,569 million). Borrowings of €1,479 million at December 31, 2017 have 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 €133 million (2016: €270 million, 2015: €nil) from a subsidiary company. The Company also paid a dividend to its parent company of €3 million (2016: €270 million, 2015: €nil). vi) Commitments and contingencies 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 72 253 — Additional loss if subsidiaries had been accounted for on the equity method of accounting as opposed to cost (41) (408) (120) Consolidated IFRS profit/(loss) for the year 31 (155) (120) At December 31, 2017 2016 2015 €m €m €m IFRS equity reconciliation: Parent only—IFRS equity 54 (15) (3) Additional loss if subsidiaries had been accounted for on the equity method of accounting as opposed to cost (2,583) (2,975) (2,371) Consolidated—IFRS equity (2,529) (2,990) (2,374)

Summary of significant accoun34

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 euro which is the functional currency of the Company, 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 ARD Finance S.A. (the “Board”) on February 21, 2018.
Re-presentation of prior year comparatives	Re-presentation of prior year comparatives In accordance with IFRS 3R ‘Business Combinations’, a number of fair value adjustments were made in relation to the net assets acquired as part of the acquisition of certain beverage can manufacturing assets from Ball Corporation and Rexam PLC (the “Beverage Can Acquisition”) completed on June 30, 2016. The measurement period in respect of the Beverage Can Acquisition during which the Group may adjust the provisional amounts recognized for the assets and liabilities acquired closed on June 30, 2017. The purchase price allocation in respect of the Beverage Can Acquisition was completed on June 30, 2017. Accordingly, the consolidated income statement and consolidated statement of comprehensive income for the year ended December 31, 2016, the consolidated statement of financial position at December 31, 2016, and the consolidated statement of changes in equity for the year ended December 31, 2016 were re-presented to reflect the revised fair values and related tax consequences. This re-presentation has no impact on the consolidated statement of cash flows as previously reported. Please refer to Note 22 for details of the final fair value of assets acquired and liabilities assumed as part of the Beverage Can Acquisition.
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) 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. (ii) 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 (“CGU”) 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 - 7 years Customer relationships - 15 years Technology - 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 - 40 years Plant and machinery - 40 years Molds - 3 years Office equipment and vehicles - 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 CGU. 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 17. 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 17 and 18) · Contingent consideration · Quantitative disclosures of fair value measurement hierarchy (Note 17) · Financial instruments (including those carried at amortized cost) (Note 17) 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 to and associated with plant builds, significant new line investments or new 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 of Directors in addition to certain members of the Board of Directors of Ardagh Group S.A. 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 CODM 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) 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 8. The Group’s judgments relating to the impairment of goodwill and other long lived assets are included in Notes 8 and 9. (ii) 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. (iii) 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. (iv) 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 18. (v) 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. (vi) 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 accoun35

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 - 7 years Customer relationships - 15 years Technology - 15 years
Schedule useful lives of property, plant and equipment on a straight-line basis	Buildings - 40 years Plant and machinery - 40 years Molds - 3 years Office equipment and vehicles - 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 34 (155) (120) Income tax (credit)/charge (Note 6) (35) 60 43 Net finance expense (Note 5) 602 615 527 Depreciation and amortization (Notes 8, 9) 611 507 403 Exceptional operating items (Note 4) 128 131 81 Adjusted EBITDA 1,340 1,158 934
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 2,967 1,714 1,376 1,587 7,644 Adjusted EBITDA 491 235 301 313 1,340 Capital expenditure 156 71 98 111 436 Segment assets 3,740 1,549 1,855 2,186 9,330 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 2,235 1,059 1,392 1,659 6,345 Adjusted EBITDA 366 139 296 357 1,158 Capital expenditure 72 35 90 121 318 Segment assets 3,946 1,835 1,899 2,614 10,294 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 1,650 390 1,452 1,707 5,199 Adjusted EBITDA 260 44 284 346 934 Capital expenditure 46 15 109 134 304 Segment assets 1,863 405 1,766 2,305 6,339
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. 2,899 2,437 1,997 United Kingdom 781 724 662 Germany 712 656 573 At December 31, 2017 2016 Non-current assets €m €m U.S. 1,849 2,189 Germany 855 760 United Kingdom 564 527

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 46 8 — Restructuring costs 32 14 12 Start-up costs 7 5 27 Exceptional impairment - working capital — — (2) Non-cash inventory adjustment — 9 — Past service credit — (21) — Exceptional items - cost of sales 85 15 37 Transaction related costs - acquisition, integration and IPO 43 114 41 Restructuring and other costs — 2 3 Exceptional items - SGA expenses 43 116 44 Debt refinancing and settlement costs 109 140 13 Exceptional loss on derivative financial instruments 14 10 — Interest payable on acquisition notes — 15 — Exceptional items - finance expense 123 165 13 Exceptional gain on derivative financial instruments — (78) — Exceptional items - finance income — (78) — Total exceptional items 251 218 94

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 492 447 378 Term loan 5 26 26 Other interest expense 6 7 8 Interest expense 503 480 412 Net pension interest cost (Note 18) 22 24 23 Loss on derivative financial instruments 24 — — Foreign currency translation (gains)/losses (68) 29 77 Other finance (income)/expense (2) (5) 2 Finance expense before exceptional items 479 528 514 Exceptional finance expense (Note 4) 123 165 13 Total finance expense 602 693 527 Exceptional finance income (Note 4) — (78) — Net finance expense 602 615 527

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 88 63 54 Adjustments in respect of prior years 1 (18) 33 Total current tax 89 45 87 Deferred tax: Deferred tax for the year (119) (10) 7 Adjustments in respect of prior years (5) 25 (51) Total deferred tax (124) 15 (44) Income tax (credit)/charge (35) 60 43
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 Loss before tax (1) (95) (77) Loss before tax multiplied by the standard rate of Luxembourg corporation tax: 27.08% (2016: 29.22%; 2015: 29.22%) — (28) (22) Tax losses for which no deferred income tax asset was recognized — 1 2 Re-measurement of deferred taxes (69) (5) (5) Adjustment in respect of prior years (4) 7 (18) Income subject to state and other local income taxes 15 9 11 Income taxed at rates other than standard tax rates (17) 19 27 Non-deductible items 33 60 52 Other 7 (3) (4) Income tax (credit)/charge (35) 60 43

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 1,196 1,076 927 Social security costs 186 151 133 Defined benefit plan pension costs (Note 18) 41 42 45 Defined benefit past service credit (Note 18) (9) (39) — Defined contribution plan pension costs (Note 18) 31 31 14 1,445 1,261 1,119
Schedule of number of employees	At December 31, Employees 2017 2016 2015 Production 20,793 20,823 17,068 Administration 2,699 2,712 1,790 23,492 23,535 18,858

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 1,047 851 181 49 2,128 Acquisitions 904 1,247 31 11 2,193 Additions — — 8 3 11 Impairment — — — (2) (2) Exchange 30 44 2 — 76 At December 31, 2016 1,981 2,142 222 61 4,406 Amortization At January 1, 2016 (233) (51) (34) (318) Charge for the year (143) (23) (7) (173) Exchange (2) (9) — (11) At December 31, 2016 (378) (83) (41) (502) Net book value At December 31, 2016 1,981 1,764 139 20 3,904 Cost At January 1, 2017 1,981 2,142 222 61 4,406 Additions — — 5 14 19 Derecognition of fully amortized assets — (36) — — (36) Exchange (146) (142) (18) (2) (308) At December 31, 2017 1,835 1,964 209 73 4,081 Amortization At January 1, 2017 (378) (83) (41) (502) Charge for the year (199) (28) (8) (235) Derecognition of fully amortized assets 36 — — 36 Exchange 35 6 1 42 At December 31, 2017 (506) (105) (48) (659) Net book value At December 31, 2017 1,835 1,458 104 25 3,422
Summary of goodwill allocation	At December 31, 2017 2016 €m €m Metal Packaging Europe - excluding the Beverage Can Business ('Metal Europe') 267 268 Metal Packaging Americas - excluding the Beverage Can Business ('Metal Americas') 24 28 Metal Packaging Europe - Beverage Can Business ('Beverage Europe') 504 507 Metal Packaging Americas - Beverage Can Business ('Beverage Americas') 364 414 Glass Packaging Europe 54 57 Glass Packaging North America 622 707 Total Goodwill 1,835 1,981
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 268 28 507 414 57 707 Excess of recoverable amount 2,178 372 582 274 2,057 1,630 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 761 2,855 51 3,667 Acquisitions (Note 22) 171 461 — 632 Additions 3 315 5 323 Impairment — (8) — (8) Disposals (6) (192) (10) (208) Transfers 13 (29) 16 — Exchange (9) (43) (1) (53) At December 31, 2016 933 3,359 61 4,353 Depreciation At January 1, 2016 (174) (1,161) (25) (1,360) Charge for the year (26) (299) (9) (334) Disposals 4 191 9 204 Exchange 6 41 1 48 At December 31, 2016 (190) (1,228) (24) (1,442) Net book value At December 31, 2016 743 2,131 37 2,911 Cost At January 1, 2017 933 3,359 61 4,353 Additions 7 447 5 459 Impairment (Note 4) — (46) — (46) Disposals (4) (142) (9) (155) Transfers 10 (8) 6 8 Exchange (34) (156) (4) (194) At December 31, 2017 912 3,454 59 4,425 Depreciation At January 1, 2017 (190) (1,228) (24) (1,442) Charge for the year (31) (336) (9) (376) Disposals 2 139 9 150 Transfers 1 (2) 1 — Exchange 3 46 2 51 At December 31, 2017 (215) (1,381) (21) (1,617) Net book value At December 31, 2017 697 2,073 38 2,808
Schedule of operating lease commitments	Year ended December 31, 2017 2016 2015 €m €m €m Plant and machinery 5 5 5 Land and buildings 19 24 21 Office equipment and vehicles 10 9 8 34 38 34
Schedule of commitments under non cancellable operating leases	At December 31, 2017 2016 2015 €m €m €m Not later than one year 29 30 27 Later than one year and not later than five years 64 69 69 Later than five years 67 68 67 160 167 163
Schedule of capital commitments	At December 31, 2017 2016 2015 €m €m €m Contracted for 84 110 30 Not contracted for 12 19 6 96 129 36

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 397 (670) (273) Acquisition (Note 22) 73 (219) (146) (Charged)/credited to the income statement (Note 6) (42) 27 (15) Credited/(charged) to other comprehensive income 17 (5) 12 Reclassification 3 (3) — Exchange (3) (10) (13) At December 31, 2016 445 (880) (435) (Charged)/credited to the income statement (Note 6) (60) 184 124 (Charged)/credited to other comprehensive income (6) 1 (5) Reclassification 4 (4) — Exchange (26) 40 14 At December 31, 2017 357 (659) (302)
The components of deferred income tax assets and liabilities	At December 31, 2017 2016 €m €m Tax losses 28 32 Employee benefit obligations 156 172 Depreciation timing differences 75 82 Provisions 58 94 Other 40 65 357 445 Available for offset (173) (186) Deferred tax assets 184 259 Intangible assets (329) (482) Accelerated depreciation and other fair value adjustments (308) (359) Other (22) (39) (659) (880) Available for offset 173 186 Deferred tax liabilities (486) (694)
The tax (charge)/credit recognized in the consolidated income statement	Year ended December 31, 2017 2016 2015 €m €m €m Tax losses (2) (3) (17) Employee benefit obligations (19) (12) 13 Depreciation timing differences (5) (12) (2) Provisions (23) — (7) Other deferred tax assets (11) (15) 19 Intangible assets 138 38 30 Accelerated depreciation and other fair value adjustments 26 (4) 17 Other deferred tax liabilities 20 (7) (9) 124 (15) 44

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 308 289 Mold parts 43 44 Work-in-progress 71 68 Finished goods 706 724 1,128 1,125

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 846 920 Other receivables and prepayments 216 244 1,062 1,164
Schedule of movements on the provision for impairment of current trade receivables	2017 2016 2015 €m €m €m At January 1, 14 14 14 Provision for receivables impairment 5 1 2 Receivables written off during the year as uncollectible — (1) (2) At December 31, 19 14 14
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 38 40 Three to six months past due 4 4 Over six months past due 9 2 51 46

Cash and cash equivalents (Tabl

Cash and cash equivalents (Tables)	12 Months Ended
	Dec. 31, 2017
Cash and cash equivalents
Disclosure of cash and cash equivalents	At December 31, 2017 2016 €m €m Cash at bank and in hand 567 733 Short term bank deposits 108 16 Restricted cash 11 27 686 776

Issued capital and reserves (Ta

Issued capital and reserves (Tables)	12 Months Ended
	Dec. 31, 2017
Issued capital and reserves
Schedule of share capital	Number of shares (millions) €m At December 31, 2016 Ordinary shares (par value €0.01) 10.0 — Issue of shares-ordinary shares (par value €0.01) 0.3 — At December 31, 2017 10.3 —

Financial assets and liabilit48

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 8,392 9,070 Term loan — 627 Other borrowings 10 10 Total borrowings 8,402 9,707 Cash and cash equivalents (686) (776) Derivative financial instruments used to hedge foreign currency and interest rate risk 251 (124) Net debt 7,967 8,807
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 Liabilities guaranteed by the ARD Finance Group 7.125%/7.875% Senior Secured Toggle Notes USD 770 15-Sep-23 Bullet 770 — 6.625%/7.375% Senior Secured Toggle Notes EUR 845 15-Sep-23 Bullet 845 — Liabilities guaranteed by the Ardagh Group 2.750% Senior Secured Notes EUR 15-Mar-24 Bullet — 4.625% Senior Secured Notes USD 15-May-23 Bullet 834 — 4.125% Senior Secured Notes EUR 15-May-23 Bullet 440 — 4.250% Senior Secured Notes USD 15-Sep-22 Bullet 596 — 4.750% Senior Notes GBP 15-Jul-27 Bullet 451 — 6.000% Senior Notes USD 15-Feb-25 Bullet 1,414 — 7.250% Senior Notes USD 15-May-24 Bullet 1,376 — 6.750% Senior Notes EUR 15-May-24 Bullet 750 — 6.000% Senior Notes USD 30-Jun-21 Bullet 367 — Global Asset Based Facility USD 07-Dec-22 Revolving — — 678 Finance lease obligations GBP/EUR Amortizing — 7 — Other borrowings / credit lines EUR Amortizing — 3 1 Total borrowings / undrawn facilities 8,475 679 Deferred debt issue costs and bond premiums (73) — Net borrowings / undrawn facilities 8,402 679 Cash and cash equivalents (686) 686 Derivative financial instruments used to hedge foreign currency and interest rate risk 251 — Net debt / available liquidity 7,967 1,365 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 Liabilites guaranteed by the Ard Finance Group 7.125%/7.875% Senior Secured Toggle Notes USD 770 15-Sep-23 Bullet 770 730 — 6.625%/7.375% Senior Secured Toggle Notes EUR 845 15-Sep-23 Bullet 845 845 — Liabilities guaranteed by the Ardagh Group 4.250% First Priority Senior Secured Notes EUR 1,155 15-Jan-22 Bullet 1,155 1,155 — 4.625% Senior Secured Notes USD 1,000 15-May-23 Bullet 1,000 949 — 4.125% Senior Secured Notes EUR 440 15-May-23 Bullet 440 440 — First Priority Senior Secured Floating Rate Notes USD 1,110 15-Dec-19 Bullet 1,110 1,053 — Senior Secured Floating Rate Notes USD 500 15-May-21 Bullet 500 474 — 6.000% Senior Notes USD 440 30-Jun-21 Bullet 440 417 — 6.250% Senior Notes USD 415 31-Jan-19 Bullet 415 394 — 6.750% Senior Notes USD 415 31-Jan-21 Bullet 415 394 — 7.250% Senior Notes USD 1,650 15-May-24 Bullet 1,650 1,565 — 6.750% Senior Notes EUR 750 15-May-24 Bullet 750 750 — Term Loan B Facility USD 663 17-Dec-21 Amortizing 663 629 — HSBC Securitization Program EUR 102 14-Jun-18 Revolving — — 102 Bank of America Facility USD 155 11-Apr-18 Revolving — — 147 Finance lease obligations GBP/EUR Amortizing 7 7 — Other borrowings / credit lines EUR 4 Amortizing 3 3 1 Total borrowings / undrawn facilities 9,805 250 Deferred debt issue costs and bond discount (98) — Net borrowings / undrawn facilities 9,707 250 Cash and cash equivalents (776) 776 Derivative financial instruments used to hedge foreign currency and interest rate risk (124) — Net debt / available liquidity 8,807 1,026
Schedule of movement in net debt	2017 2016 €m €m Net decrease/(increase) in cash and cash equivalents per consolidated statement of cash flows 90 (222) (Decrease)/increase in net borrowings and derivative financial instruments (930) 3,179 (Decrease)/increase in net debt (840) 2,957 Net debt at January 1, 8,807 5,850 Net debt at December 31, 7,967 8,807
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 962 3,332 Greater than five years 7,437 6,359 8,402 9,707
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 482 2 1,660 Between one and two years 481 70 — Between two and five years 2,373 55 — Greater than five years 8,128 126 — Derivative Trade and financial other Borrowings instruments payables At December 31, 2016 €m €m €m Within one year or on demand 555 8 1,548 Between one and two years 555 — — Between two and five years 4,724 — — Greater than five years 7,100 — —
Schedule of carrying amount and fair value of borrowings	Carrying value Deferred debt Amount issue costs and drawn bond premium Total Fair value At December 31, 2017 €m €m €m €m Loan notes 8,465 (73) 8,392 8,910 Finance leases 7 — 7 7 Bank loans, overdrafts and revolving credit facilities 3 — 3 3 8,475 (73) 8,402 8,920 Carrying value Deferred debt Amount issue costs and drawn bond discount Total Fair value At December 31, 2016 €m €m €m €m Loan notes 9,166 (96) 9,070 9,377 Term loan 629 (2) 627 635 Finance leases 7 — 7 7 Bank loans, overdrafts and revolving credit facilities 3 — 3 3 9,805 (98) 9,707 10,022
Schedule of effective interest rates	2017 2016 USD EUR GBP USD EUR GBP 7.125% / 7.875% Senior Secured Toggle Notes 7.49 % — — 7.57 % — — 6.625% / 7.375% Senior Secured Toggle Notes — 7.03 % — — 7.05 % — 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 2,770 3,167 U.S. dollar 5,183 6,538 British pound 449 2 8,402 9,707
Schedule of undrawn borrowing facilities	At December 31, 2017 2016 €m €m Expiring within one year 1 1 Expiring beyond one year 678 249 679 250
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 14 164 — — Cross currency interest rate swaps — — 251 2,591 Forward foreign exchange contracts 3 149 1 43 NYMEX gas swaps — — 1 17 Carbon futures 2 8 — — At December 31, 2017 19 321 253 2,651 Assets Liabilities Contractual Contractual or notional or notional Fair values amounts Fair values amounts €m €m €m €m Fair Value Derivatives Metal forward contracts 8 187 — — Cross currency interest rate swap 124 1,499 — — Forward foreign exchange contracts — — 8 195 NYMEX gas swaps 2 15 — — Carbon futures 1 2 — — At December 31, 2016 135 1,703 8 195

Employee benefit obligations (T

Employee benefit obligations (Tables)	12 Months Ended
	Dec. 31, 2017
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 (1,094) (1,137) (338) (345) (834) (898) (16) (540) (21) (22) (2,303) (2,942) Assets 983 1,012 — — 589 626 — 513 10 8 1,582 2,159 Net obligations (111) (125) (338) (345) (245) (272) (16) (27) (11) (14) (721) (783)
Defined benefit plan
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 (38) (37) (40) Cost of sales ‑ past service credit 7 29 — SGA ‑ current service cost (3) (5) (5) SGA ‑ past service credit 2 10 — (32) (3) (45) Finance expense (Note 5) (22) (24) (23) (54) (27) (68)
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 (5) 24 8 Actuarial (loss)/gain arising from changes in financial assumptions (93) (251) 99 Actuarial gain/(loss) arising from changes in experience 2 (10) 30 (96) (237) 137 Re-measurement of plan assets: Actual return/(loss) less expected return on plan assets 140 112 (81) Actuarial gain/(loss) for the year on defined benefit pension schemes 44 (125) 56 Actuarial (loss)/gain on other long term and end of service employee benefits (1) 4 16 43 (121) 72
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, (2,942) (2,614) 2,159 1,976 Interest income — — 63 74 Acquired — (354) — 271 Current service cost (41) (42) — — Past service credit 9 39 — — Interest cost (82) (95) — — Administration expenses paid from plan assets — — (2) (3) Re-measurements (96) (237) 140 112 Obligations/(assets) extinguished on reclassification 535 187 (535) (187) Employer contributions — — 45 43 Employer contributions ‑ acquisition related — — — 7 Employee contributions (2) (5) 2 5 Benefits paid 145 118 (145) (118) Exchange 171 61 (145) (21) At December 31, (2,303) (2,942) 1,582 2,159
Schedule of plan assets	At December 31, 2017 2017 2016 2016 €m % €m % Equities 981 62 1,152 53 Target return funds 248 16 275 13 Bonds 208 13 558 26 Cash/other 145 9 174 8 1,582 100 2,159 100
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 97 95 98 101 104 560
Other employee benefit obligations
Schedule of other employee benefits	At December 31, 2017 2016 €m €m End of service employee benefits 21 23 Long term employee benefits 89 99 110 122

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 58 69 Non-current 37 57 95 126
Schedule of restructuring and other provisions	Other Total Restructuring provisions provisions €m €m €m At January 1, 2016 18 78 96 Acquisitions (Note 22) — 38 38 Provided 25 29 54 Released (11) (15) (26) Paid (10) (28) (38) Exchange — 2 2 At December 31, 2016 22 104 126 Provided 11 23 34 Released (2) (28) (30) Paid (9) (19) (28) Exchange (1) (6) (7) At December 31, 2017 21 74 95

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 1,225 1,055 Other payables and accruals 365 419 Amounts owed to parent company — 3 Other tax and social security payable 41 32 Payables and accruals for exceptional items 29 39 1,660 1,548

Cash generated from operating52

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 34 (155) (120) Income tax (credit)/charge (Note 6) (35) 60 43 Net finance expense (Note 5) 602 615 527 Depreciation and amortization (Notes 8, 9) 611 507 403 Exceptional operating items (Note 4) 128 131 81 Movement in working capital 64 120 90 Acquisition-related, IPO, start-up and other exceptional costs paid (65) (159) (54) Exceptional restructuring paid (9) (10) (20) Cash generated from operations 1,330 1,109 950

Business combinations and dis53

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 10 Property, plant and equipment 632 Intangible assets 1,289 Inventories 265 Trade and other receivables 331 Trade and other payables (436) Net deferred tax liability (146) Employee benefit obligations (116) Provisions (38) Total identifiable net assets 1,791 Goodwill 904 Total consideration 2,695

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 11 11 9 Post-employment benefits 1 1 1 12 12 10 Transaction related and other compensation 6 26 — 18 38 10
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

Company financial information (

Company financial information (Tables)	12 Months Ended
	Dec. 31, 2017
Company financial information
Statement of financial position	At December 31, 2017 2016 €m €m Non-current assets Investments in subsidiary undertakings 882 837 Receivables from subsidiary undertaking 642 730 1,524 1,567 Current assets Receivables from subsidiary undertaking 8 15 Cash and cash equivalents 32 4 40 19 Total assets 1,564 1,586 Equity attributable to owners of the parent Issued capital — — Retained earnings 54 (15) Total equity 54 (15) Non-current liabilities Borrowings 1,479 1,569 1,479 1,569 Current liabilities Interest payable 31 31 Other payables — 1 31 32 Total liabilities 1,510 1,601 Total equity and liabilities 1,564 1,586
Statement of comprehensive income	Year ended December 31, 2017 2016 2015 ` €m €m €m Dividend income 133 270 — Finance expense (111) (31) — Finance income 50 14 — Profit before tax 72 253 — Income tax — — — Profit and total comprehensive income for the year 72 253 —
Statement of cash flows	Year ended December 31, 2017 2016 2015 €m €m €m Cash flows from operating activities Cash generated from operations — — — Related party interest received 54 — — Interest paid (105) — — Net cash used in operating activities (51) — — Cash flows from investing activities Repayment of loans from subsidiary undertakings (3) (404) — Contribution to subsidiary undertaking (45) (431) — Dividends received 133 270 — Loans granted to subsidiary undertakings — (679) — Net cash received from/(used in) investing activities 85 (1,244) — Cash flows from financing activities Net proceeds from borrowings — 1,529 — Dividends paid (3) (270) — Deferred debt issue costs paid (3) (12) — Net cash (outflow)/inflow from financing activities (6) 1,247 — Net increase in cash and cash equivalents 28 3 — Cash and cash equivalents at the beginning of the year 4 1 1 Cash and cash equivalents at the end of the year 32 4 1
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 72 253 — Additional loss if subsidiaries had been accounted for on the equity method of accounting as opposed to cost (41) (408) (120) Consolidated IFRS profit/(loss) for the year 31 (155) (120)
Summary of IFRS equity reconciliation	At December 31, 2017 2016 2015 €m €m €m IFRS equity reconciliation: Parent only—IFRS equity 54 (15) (3) Additional loss if subsidiaries had been accounted for on the equity method of accounting as opposed to cost (2,583) (2,975) (2,371) Consolidated—IFRS equity (2,529) (2,990) (2,374)

General information (Details)

General information (Details) $ in Millions	Dec. 31, 2017USD ($)shares	Dec. 31, 2017EUR (€)shares	Mar. 20, 2017EUR (€)shares	Dec. 31, 2016USD ($)	Dec. 31, 2016EUR (€)	Sep. 16, 2016
Issued capital
Shares issued in IPO | shares	256,410	256,410
Non-controlling interest		€ (92,000,000)			€ 2,000,000
7.125%/7.875% Senior Secured Toggle Notes due 2023
Borrowings
Aggregate principal amount	$ 770	€ 770,000,000		$ 770
7.125%/7.875% Senior Secured Toggle Notes due 2023 | Minimum
Borrowings
Stated interest rate	7.125%	7.125%				7.125%
7.125%/7.875% Senior Secured Toggle Notes due 2023 | Maximum
Borrowings
Stated interest rate	7.875%	7.875%		7.875%	7.875%	7.875%
6.625%/7.375% Senior Secured Toggle Notes due 2023
Borrowings
Aggregate principal amount		€ 845,000,000			€ 845,000,000
6.625%/7.375% Senior Secured Toggle Notes due 2023 | Minimum
Borrowings
Stated interest rate	6.625%	6.625%		6.625%	6.625%	6.625%
6.625%/7.375% Senior Secured Toggle Notes due 2023 | Maximum
Borrowings
Stated interest rate	7.375%	7.375%		7.375%	7.375%	7.375%
Ardagh Group S.A.
Issued capital
Non-controlling interest			€ 92,000,000
Class A common shares | Ardagh Group S.A.
Issued capital
Shares issued in IPO | shares			18,630,000

Summary of significant accoun57

Summary of significant accounting policies - Intangible assets (Details) € in Millions	12 Months Ended
	Dec. 31, 2017EUR (€)
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 accoun58

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	12 Months Ended
	Dec. 31, 2017EUR (€)segment	Dec. 31, 2016EUR (€)	Dec. 31, 2015EUR (€)
Segment analysis
Number of operating segment | segment	4
Number of reportable segments | segment	4
Reconciliation of loss to Adjusted EBITDA
Profit/(loss) for the year	€ 34	€ (155)	€ (120)
Income tax (credit)/charge	(35)	60	43
Net finance expense	602	615	527
Depreciation and amortization (Notes 8, 9)	611	507	403
Exceptional operating items (Note 4)	128	131	81
Adjusted EBITDA	€ 1,340	€ 1,158	€ 934

Segment analysis - Segment resu

Segment analysis - Segment results (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment analysis
Revenue	€ 7,644	€ 6,345	€ 5,199
Adjusted EBITDA	1,340	1,158	934
Capital expenditure	436	318	304
Segment assets	9,330	10,294	6,339
Metal Packaging Europe
Segment analysis
Revenue	2,967	2,235	1,650
Adjusted EBITDA	491	366	260
Capital expenditure	156	72	46
Segment assets	3,740	3,946	1,863
Metal Packaging Americas
Segment analysis
Revenue	1,714	1,059	390
Adjusted EBITDA	235	139	44
Capital expenditure	71	35	15
Segment assets	1,549	1,835	405
Glass Packaging Europe
Segment analysis
Revenue	1,376	1,392	1,452
Adjusted EBITDA	301	296	284
Capital expenditure	98	90	109
Segment assets	1,855	1,899	1,766
Glass Packaging North America
Segment analysis
Revenue	1,587	1,659	1,707
Adjusted EBITDA	313	357	346
Capital expenditure	111	121	134
Segment assets	€ 2,186	€ 2,614	€ 2,305

Segment analysis - Segment asse

Segment analysis - Segment assets and segment revenue (Details) € in Millions	12 Months Ended
	Dec. 31, 2017EUR (€)customer	Dec. 31, 2016EUR (€)customer	Dec. 31, 2015EUR (€)customer
Segment analysis
Number of customers with a percentage of total revenues greater than 10% | customer	0	0	1
TOTAL ASSETS	€ 9,330	€ 10,294	€ 6,339
Revenue	7,644	6,345	5,199
Non-current assets	6,441	7,218
United States
Segment analysis
Revenue	2,899	2,437	1,997
Non-current assets	1,849	2,189
United Kingdom
Segment analysis
Revenue	781	724	662
Non-current assets	564	527
Germany
Segment analysis
Revenue	712	656	573
Non-current assets	855	760
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, 2017EUR (€)	Dec. 31, 2016EUR (€)	Dec. 31, 2015EUR (€)item
Exceptional items
Past service credit		€ (9)	€ (39)
Exceptional items-cost of sales		6,406	5,236	€ 4,322
Total selling, general and administrative expense		402	416	318
Finance expense		602	693	527
Exceptional items-finance income			(78)
Total exceptional items		1	95	77
Repayment of principal amount outstanding		4,061	2,322	198
8.75% Senior Notes due 2020
Exceptional items
Repayment of principal amount outstanding				€ 180
Stated interest rate				8.75%
Exceptional items
Exceptional items
Exceptional items-cost of sales		85	15	€ 37
Total selling, general and administrative expense		43	116	44
Finance expense		123	165	13
Exceptional items-finance income			(78)
Total exceptional items		251	218	94
Exceptional items - cost of sales
Exceptional items
Exceptional impairment-property, plant and equipment		46	8
Restructuring costs		32	14	12
Start-up costs		7	5	27
Exceptional impairment-working capital				(2)
Non-cash inventory adjustment			9
Past service credit			(21)
Exceptional items-cost of sales		85	15	37
Exceptional items - SGA expenses
Exceptional items
Transaction related costs - acquisition, integration and IPO		43	114	41
Restructuring and other costs			2	3
Total selling, general and administrative expense		43	116	44
Acquisition and disposal costs				3
Exceptional items - finance expense
Exceptional items
Debt refinancing and settlement costs		109	140	13
Exceptional loss on derivative financial instruments		14	10
Interest payable on acquisition notes			15
Finance expense		123	165	13
Other finance costs				2
Exceptional items - finance expense | 8.75% Senior Notes due 2020
Exceptional items
Premium on redemption of debt				8
Accelerated amortization of deferred finance costs				3
Exceptional items - finance income
Exceptional items
Exceptional gain on derivative financial instruments			(78)
Exceptional items-finance income			(78)
Metal Packaging Europe | Exceptional items - cost of sales
Exceptional items
Exceptional impairment-property, plant and equipment			5
Restructuring costs		32	7	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		7
Glass Packaging North America | Exceptional items - cost of sales
Exceptional items
Restructuring costs			4	5
Past service credit			21
Metal Packaging Americas | Exceptional items - cost of sales
Exceptional items
Exceptional impairment-property, plant and equipment			3
Restructuring costs			2
Start-up costs				€ 27
The number of plants incurring related start-up costs | item				2
Metal Packaging | Exceptional items - SGA expenses
Exceptional items
Transaction related costs - acquisition, integration and IPO				€ 38
Cross currency interest rate swaps (CCIRS)
Exceptional items
Contract value | $	$ 500
Cross currency interest rate swaps (CCIRS) | Exceptional items - finance expense
Exceptional items
Exceptional loss on derivative financial instruments		14
Cumulative losses recycled from other comprehensive income		11
Loss on hedge ineffectiveness			10
Cross currency interest rate swaps (CCIRS) | Exceptional items - finance income
Exceptional items
Exceptional gain on derivative financial instruments			(78)
Beverage Can | Exceptional items - finance expense
Exceptional items
Interest payable on acquisition notes			€ 15
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		€ 46

Finance income and expense (Det

Finance income and expense (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Finance income and expense
Finance expense	€ 602	€ 693	€ 527
Exceptional finance income		(78)
Net finance expense	602	615	527
Before exceptional items
Finance income and expense
Senior secured and senior notes	492	447	378
Term loan	5	26	26
Other interest expense	6	7	8
Interest expense	503	480	412
Net pension interest cost	22	24	23
Loss on derivative instruments	24
Foreign currency translation (gains)/losses	(68)	29	77
Other finance (income)/expense	(2)	(5)	2
Finance expense	479	528	514
Exceptional items
Finance income and expense
Finance expense	€ 123	165	€ 13
Exceptional finance income		€ (78)

Income tax - Current and deferr

Income tax - Current and deferred tax (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current tax:
Current tax for the year	€ 88	€ 63	€ 54
Adjustments in respect of prior years	1	(18)	33
Total current tax	89	45	87
Deferred tax:
Deferred tax for the year	(119)	(10)	7
Adjustments in respect of prior years	(5)	25	(51)
Total deferred tax	(124)	15	(44)
Income tax (credit)/charge	€ (35)	€ 60	€ 43

Income tax - Reconciliation of

Income tax - Reconciliation of tax expense and accounting loss (Details) - EUR (€) € 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
Loss before tax			€ (1)	€ (95)	€ (77)
Loss before tax multiplied by the standard rate of Luxembourg corporation tax				(28)	(22)
Tax losses for which no deferred income tax asset was recognized				1	2
Remeasurement of deferred taxes			(69)	(5)	(5)
Adjustment in respect of prior years			(4)	7	(18)
Income subject to state and other local income taxes			15	9	11
Income taxed at rates other than standard tax rates			(17)	19	27
Non-deductible items			33	60	52
Other			7	(3)	(4)
Income tax (credit)/charge			(35)	60	43
Exceptional items
Reconciliation of tax expense and accounting loss
Income tax (credit)/charge			€ (122)	€ (43)	€ (32)
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%
United States | Exceptional items
Reconciliation of tax expense and accounting loss
Remeasurement of deferred taxes			€ (68)
United States | Exceptional items | Ardagh Group S.A.
Reconciliation of tax expense and accounting loss
Remeasurement of deferred taxes			68
United States | Estimate
Reconciliation of tax expense and accounting loss
Standard tax rate		21.00%
France
Reconciliation of tax expense and accounting loss
Remeasurement of deferred taxes			€ (1)
Standard tax rate			28.00%
France | Estimate
Reconciliation of tax expense and accounting loss
Standard tax rate	25.00%

Employee costs (Details)

Employee costs (Details) € in Millions	12 Months Ended
	Dec. 31, 2017EUR (€)employee	Dec. 31, 2016EUR (€)employee	Dec. 31, 2015EUR (€)employee
Employee costs
Wages and salaries	€ 1,196	€ 1,076	€ 927
Social security costs	186	151	133
Defined benefit plan pension costs (Note 18)	41	42	45
Defined benefit past service credit (Note 18)	(9)	(39)
Defined contribution plan pension costs (Note 18)	31	31	14
Total employee cost	€ 1,445	€ 1,261	€ 1,119
Production | employee	20,793	20,823	17,068
Administration | employee	2,699	2,712	1,790
Total number of employee | employee	23,492	23,535	18,858

Intangible assets - Reconciliat

Intangible assets - Reconciliation of changes in intangible assets (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in intangible assets
Beginning balance	€ 3,904
Ending balance	3,422	€ 3,904
Net book value	3,904	3,904
Goodwill
Reconciliation of changes in intangible assets
Beginning balance	1,981
Ending balance	1,835	1,981
Net book value	1,981	1,981
Customer relationships
Reconciliation of changes in intangible assets
Beginning balance	1,764
Ending balance	1,458	1,764
Net book value	1,764	1,764
Customer relationships | Glass Packaging North America
Reconciliation of changes in intangible assets
Ending balance	0
Net book value	0
Technology and other
Reconciliation of changes in intangible assets
Beginning balance	139
Ending balance	104	139
Net book value	139	139
Computer software
Reconciliation of changes in intangible assets
Beginning balance	20
Ending balance	25	20
Net book value	20	20
Cost
Reconciliation of changes in intangible assets
Beginning balance	4,406	2,128
Acquisitions		2,193
Additions	19	11
Impairment		(2)
Derecognition of fully amortized assets	(36)
Exchange	(308)	76
Ending balance	4,081	4,406
Net book value	4,406	2,128
Cost | Goodwill
Reconciliation of changes in intangible assets
Beginning balance	1,981	1,047
Acquisitions		904
Exchange	(146)	30
Ending balance	1,835	1,981
Net book value	1,981	1,047
Cost | Customer relationships
Reconciliation of changes in intangible assets
Beginning balance	2,142	851
Acquisitions		1,247
Derecognition of fully amortized assets	(36)
Exchange	(142)	44
Ending balance	1,964	2,142
Net book value	2,142	851
Cost | Technology and other
Reconciliation of changes in intangible assets
Beginning balance	222	181
Acquisitions		31
Additions	5	8
Exchange	(18)	2
Ending balance	209	222
Net book value	222	181
Cost | Computer software
Reconciliation of changes in intangible assets
Beginning balance	61	49
Acquisitions		11
Additions	14	3
Impairment		(2)
Exchange	(2)
Ending balance	73	61
Net book value	61	49
Amortization
Reconciliation of changes in intangible assets
Beginning balance	(502)	(318)
Charge for the year	(235)	(173)
Derecognition of fully amortized assets	36
Exchange	42	(11)
Ending balance	(659)	(502)
Net book value	(502)	(318)
Amortization | Customer relationships
Reconciliation of changes in intangible assets
Beginning balance	(378)	(233)
Charge for the year	(199)	(143)
Derecognition of fully amortized assets	36
Exchange	35	(2)
Ending balance	(506)	(378)
Net book value	(378)	(233)
Amortization | Technology and other
Reconciliation of changes in intangible assets
Beginning balance	(83)	(51)
Charge for the year	(28)	(23)
Exchange	6	(9)
Ending balance	(105)	(83)
Net book value	(83)	(51)
Amortization | Computer software
Reconciliation of changes in intangible assets
Beginning balance	(41)	(34)
Charge for the year	(8)	(7)
Exchange	1
Ending balance	(48)	(41)
Net book value	€ (41)	€ (34)

Intangible assets - Summary of

Intangible assets - Summary of goodwill allocation (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Goodwill
Goodwill	€ 1,835	€ 1,981
Metal Europe
Goodwill
Goodwill	267	268
Metal Americas
Goodwill
Goodwill	24	28
Beverage Europe
Goodwill
Goodwill	504	507
Beverage Americas
Goodwill
Goodwill	364	414
Glass Packaging Europe
Goodwill
Goodwill	54	57
Glass Packaging North America
Goodwill
Goodwill	€ 622	€ 707

Intangible assets - Sensitivity

Intangible assets - Sensitivity analysis (Details) - EUR (€) € 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	€ 1,835	€ 1,981
Metal Europe
Recoverable amount and carrying amount
Carrying amount of goodwill	267	268
Excess of recoverable amount	€ 2,588	€ 2,178
Pre‑tax 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	€ 24	€ 28
Excess of recoverable amount	€ 376	€ 372
Pre‑tax 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	€ 504	€ 507
Excess of recoverable amount	€ 1,376	€ 582
Pre‑tax 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	€ 364	€ 414
Excess of recoverable amount	€ 655	€ 274
Pre‑tax 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	€ 54	€ 57
Excess of recoverable amount	€ 2,424	€ 2,057
Pre‑tax 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	€ 622	€ 707
Excess of recoverable amount	€ 716	€ 1,630
Pre‑tax 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) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, plant and equipment
Beginning balance	€ 2,911
Ending balance	2,808	€ 2,911
Depreciation - Cost of sales	369	329	€ 289
Depreciation - Selling, general and administration expenses	7	5	5
Construction in progress	201	114
Borrowing costs capitalised	0	0
Land and buildings
Property, plant and equipment
Beginning balance	743
Ending balance	697	743
Plant, machinery and other
Property, plant and equipment
Beginning balance	2,131
Ending balance	2,073	2,131
Office equipment and vehicles
Property, plant and equipment
Beginning balance	37
Ending balance	38	37
Land
Property, plant and equipment
Land	188	195
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	10	10
Cost
Property, plant and equipment
Beginning balance	4,353	3,667
Acquisitions		632
Additions	459	323
Impairment	(46)	(8)
Disposals	(155)	(208)
Transfers	8
Exchange	(194)	(53)
Ending balance	4,425	4,353	3,667
Cost | Land and buildings
Property, plant and equipment
Beginning balance	933	761
Acquisitions		171
Additions	7	3
Disposals	(4)	(6)
Transfers	10	13
Exchange	(34)	(9)
Ending balance	912	933	761
Cost | Plant, machinery and other
Property, plant and equipment
Beginning balance	3,359	2,855
Acquisitions		461
Additions	447	315
Impairment	(46)	(8)
Disposals	(142)	(192)
Transfers	(8)	(29)
Exchange	(156)	(43)
Ending balance	3,454	3,359	2,855
Cost | Plant, machinery and other | Exceptional items
Property, plant and equipment
Impairment	(46)	(8)
Cost | Plant, machinery and other | Metal Packaging Europe | Exceptional items
Property, plant and equipment
Impairment	(14)	(5)
Cost | Plant, machinery and other | Glass Packaging North America | Exceptional items
Property, plant and equipment
Impairment	(32)	0
Cost | Office equipment and vehicles
Property, plant and equipment
Beginning balance	61	51
Additions	5	5
Disposals	(9)	(10)
Transfers	6	16
Exchange	(4)	(1)
Ending balance	59	61	51
Depreciation
Property, plant and equipment
Beginning balance	(1,442)	(1,360)
Charge for the year	(376)	(334)
Disposals	150	204
Exchange	51	48
Ending balance	(1,617)	(1,442)	(1,360)
Depreciation | Land and buildings
Property, plant and equipment
Beginning balance	(190)	(174)
Charge for the year	(31)	(26)
Disposals	2	4
Transfers	1
Exchange	3	6
Ending balance	(215)	(190)	(174)
Depreciation | Plant, machinery and other
Property, plant and equipment
Beginning balance	(1,228)	(1,161)
Charge for the year	(336)	(299)
Disposals	139	191
Transfers	(2)
Exchange	46	41
Ending balance	(1,381)	(1,228)	(1,161)
Depreciation | Office equipment and vehicles
Property, plant and equipment
Beginning balance	(24)	(25)
Charge for the year	(9)	(9)
Disposals	9	9
Transfers	1
Exchange	2	1
Ending balance	€ (21)	€ (24)	€ (25)

Property, plant and equipment71

Property, plant and equipment - Operating leases (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, plant and equipment
Operating lease commitments	€ 34	€ 38	€ 34
Plant and machinery
Property, plant and equipment
Operating lease commitments	5	5	5
Land and buildings
Property, plant and equipment
Operating lease commitments	19	24	21
Office equipment and vehicles
Property, plant and equipment
Operating lease commitments	€ 10	€ 9	€ 8

Property, plant and equipment72

Property, plant and equipment - Commitments under non-cancellable operating leases (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, plant and equipment
Total commitments under non‑cancellable operating leases	€ 160	€ 167	€ 163
Not later than one year
Property, plant and equipment
Total commitments under non‑cancellable operating leases	29	30	27
Later than one year and not later than five years
Property, plant and equipment
Total commitments under non‑cancellable operating leases	64	69	69
Later than five years
Property, plant and equipment
Total commitments under non‑cancellable operating leases	€ 67	€ 68	€ 67

Property, plant and equipment73

Property, plant and equipment - Capital commitments (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, plant and equipment
Contracted for	€ 84	€ 110	€ 30
Not contracted for	12	19	6
Total	€ 96	€ 129	€ 36

Other non-current assets - Join

Other non-current assets - Joint ventures (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Other non-current assets
Other non-current assets	€ 21	€ 20
Joint ventures	€ 8	€ 6

Deferred income tax - Movement

Deferred income tax - Movement in deferred tax assets and liabilities (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred income tax
Deferred tax assets at beginning of year	€ 445	€ 397
Acquisition		73
(Charged)/credited to the income statement	(60)	(42)
Credited/(charged) to other comprehensive income	(6)	17
Reclassification	4	3
Exchange	(26)	(3)
Deferred tax assets at end of year	357	445	€ 397
Deferred tax liabilities at beginning of year	(880)	(670)
Acquisition		(219)
(Charged)/credited to the income statement	184	27
Credited/(charged) to other comprehensive income	1	(5)
Reclassification	(4)	(3)
Exchange	40	(10)
Deferred tax liabilities at end of year	(659)	(880)	(670)
Net deferred tax liabilities at beginning of year	(435)	(273)
Acquisition		(146)
(Charged)/credited to the income statement	124	(15)	44
(Charged)/credited to other comprehensive income	(5)	12
Exchange	14	(13)
Net deferred tax liabilities at end of year	€ (302)	€ (435)	€ (273)

Deferred income tax - Component

Deferred income tax - Components of deferred tax assets and liabilities (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred income tax assets and liabilities
Deferred tax assets, gross	€ 357	€ 445	€ 397
Available for offset	(173)	(186)
Deferred tax assets	184	259
Deferred tax liabilities, gross	(659)	(880)	€ (670)
Available for offset	173	186
Deferred tax liabilities	(486)	(694)
Tax losses
Deferred income tax assets and liabilities
Deferred tax assets, gross	28	32
Employee benefit obligations
Deferred income tax assets and liabilities
Deferred tax assets, gross	156	172
Depreciation timing differences
Deferred income tax assets and liabilities
Deferred tax assets, gross	75	82
Provisions
Deferred income tax assets and liabilities
Deferred tax assets, gross	58	94
Other
Deferred income tax assets and liabilities
Deferred tax assets, gross	40	65
Deferred tax liabilities, gross	(22)	(39)
Intangible assets
Deferred income tax assets and liabilities
Deferred tax liabilities, gross	(329)	(482)
Accelerated depreciation and other fair value adjustments
Deferred income tax assets and liabilities
Deferred tax liabilities, gross	€ (308)	€ (359)

Deferred income tax - Tax (char

Deferred income tax - Tax (charge)/credit recognized in income statement (Details) - EUR (€) € 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	€ 124	€ (15)	€ 44
Deferred tax assets not recognized in respect of tax losses	52	43
Tax losses	311	223
Deferred tax assets not recognized in respect of capital losses	42	70
Capital losses	199	201
Tax losses
Tax charges and credits
Tax (charge)/credit recognized in the income statement	(2)	(3)	(17)
Employee benefit obligations
Tax charges and credits
Tax (charge)/credit recognized in the income statement	(19)	(12)	13
Depreciation timing differences
Tax charges and credits
Tax (charge)/credit recognized in the income statement	(5)	(12)	(2)
Provisions
Tax charges and credits
Tax (charge)/credit recognized in the income statement	(23)		(7)
Temporary differences associated with investments in subsidiaries	0
Other deferred tax assets
Tax charges and credits
Tax (charge)/credit recognized in the income statement	(11)	(15)	19
Intangible assets
Tax charges and credits
Tax (charge)/credit recognized in the income statement	138	38	30
Accelerated depreciation and other fair value adjustments
Tax charges and credits
Tax (charge)/credit recognized in the income statement	26	(4)	17
Other deferred tax liabilities
Tax charges and credits
Tax (charge)/credit recognized in the income statement	€ 20	€ (7)	€ (9)

Inventories - Current (Details)

Inventories - Current (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Inventories
Raw materials and consumables	€ 308	€ 289
Mould parts	43	44
Work-in-progress	71	68
Finished goods	706	724
Total current inventories	€ 1,128	€ 1,125

Trade and other receivables - C

Trade and other receivables - Components (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Trade and other receivables
Trade receivables	€ 846	€ 920
Other receivables and prepayments	216	244
Total trade and other current receivables	€ 1,062	€ 1,164

Trade and other receivables - M

Trade and other receivables - Movement in the provision for impairment of trade receivables (Details) - EUR (€) € 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	€ 14	€ 14	€ 14
Provision for receivable impairment	5	1	2
Receivables written off during the year as uncollectible		(1)	(2)
Balance at end of year	€ 19	€ 14	€ 14

Trade and other receivables - T

Trade and other receivables - Trade receivables past due but not impaired and receivables factoring and related programs (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of financial assets that are past due
Trade receivables	€ 846	€ 920
Trade receivables past due but not impaired
Disclosure of financial assets that are past due
Trade receivables	51	46
Up to three months past due | Trade receivables past due but not impaired
Disclosure of financial assets that are past due
Trade receivables	38	40
Three to six months past due | Trade receivables past due but not impaired
Disclosure of financial assets that are past due
Trade receivables	4	4
Over six months past due | Trade receivables past due but not impaired
Disclosure of financial assets that are past due
Trade receivables	€ 9	€ 2

Cash and cash equivalents (Deta

Cash and cash equivalents (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash and cash equivalents
Cash at bank and in hand	€ 567	€ 733
Short term bank deposits	108	16
Restricted cash	11	27
Total cash and cash equivalents	€ 686	€ 776	€ 554	€ 433

Issued capital and reserves - S

Issued capital and reserves - Share capital (Details) - EUR (€) € / shares in Units, € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Issued capital and reserves
Beginning balance (shares)	10,000,000
Issue of shares-ordinary shares	300,000
Ending balance (shares)	10,300,000	10,000,000
Ordinary shares issued	256,410
Par value per share	€ 0.01	€ 0.01
Dividends paid	€ 10	€ 270
Dividends paid by subsidiary to non-controlling interest	7
Dividends paid to parent company	€ 3	€ 270

Financial risk factors - Capita

Financial risk factors - Capital structure and interest rate risk (Details) € in Millions	12 Months Ended
	Dec. 31, 2017EUR (€)	Dec. 31, 2016EUR (€)	Dec. 31, 2015
Financial risk factors
Weighted average interest rate	5.30%	5.40%	6.20%
Capital structure and risk
Financial risk factors
Ratio of net debt to Adjusted EBITDA	5.95	7.61	6.26
Fixed interest rate | Interest rate risk
Financial risk factors
Percentage of fixed rate borrowings	93.20%	78.00%
Weighted average interest rate	5.70%	5.60%	6.20%
Variable interest rate | Interest rate risk
Financial risk factors
Percentage increase in currency exchange rate	1.00%
Increase in interest payable	€ 6	€ 20

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, 2017EUR (€)countryitem	Dec. 31, 2016EUR (€)
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 | €			€ 2	€ 13
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	72.00%	73.00%

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 liabilit87

Financial assets and liabilities - Net external debt (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Financial assets and liabilities
Loan notes	€ 8,392	€ 9,070
Term loan		627
Other borrowings	10	10
Total borrowings	8,402	9,707
Cash and cash equivalents	686	776	€ 554	€ 433
Derivative financial instruments used to hedge foreign currency and interest rate risk	251	0
Derivative financial instruments used to hedge foreign currency and interest rate risk	(6)	(124)
Net debt	€ 7,967	€ 8,807	€ 5,850

Financial assets and liabilit88

Financial assets and liabilities - Net debt and available liquidity (Details) £ in Millions, $ in Millions	Dec. 31, 2017GBP (£)	Dec. 31, 2017USD ($)	Dec. 31, 2017EUR (€)	Dec. 31, 2016USD ($)	Dec. 31, 2016EUR (€)	Sep. 16, 2016	Dec. 31, 2015EUR (€)	Dec. 31, 2014EUR (€)
Financial assets and liabilities
Amount drawn			€ 8,475,000,000		€ 9,805,000,000
Undrawn amount			679,000,000		250,000,000
Deferred debt issue costs and bond premium/discount			(73,000,000)		(98,000,000)
Total borrowings			8,402,000,000		9,707,000,000
Cash and cash equivalents			(686,000,000)		(776,000,000)		€ (554,000,000)	€ (433,000,000)
Derivative financial instruments used to hedge foreign currency and interest rate risk			251,000,000		0
Derivative financial instruments used to hedge foreign currency and interest rate risk			(6,000,000)		(124,000,000)
Net debt			7,967,000,000		8,807,000,000		€ 5,850,000,000
Available Liquidity			1,365,000,000		1,026,000,000
7.125%/7.875% Senior Secured Toggle Notes due 2023
Financial assets and liabilities
Maximum amount drawable - Notes		$ 770	770,000,000	$ 770
Amount drawn		$ 770	€ 642,000,000	$ 770	€ 730,000,000
7.125%/7.875% Senior Secured Toggle Notes due 2023 | Minimum
Financial assets and liabilities
Stated interest rate	7.125%	7.125%	7.125%			7.125%
7.125%/7.875% Senior Secured Toggle Notes due 2023 | Maximum
Financial assets and liabilities
Stated interest rate	7.875%	7.875%	7.875%	7.875%	7.875%	7.875%
6.625%/7.375% Senior Secured Toggle Notes due 2023
Financial assets and liabilities
Maximum amount drawable - Notes			€ 845,000,000		€ 845,000,000
Amount drawn			€ 845,000,000		€ 845,000,000
6.625%/7.375% Senior Secured Toggle Notes due 2023 | Minimum
Financial assets and liabilities
Stated interest rate	6.625%	6.625%	6.625%	6.625%	6.625%	6.625%
6.625%/7.375% Senior Secured Toggle Notes due 2023 | Maximum
Financial assets and liabilities
Stated interest rate	7.375%	7.375%	7.375%	7.375%	7.375%	7.375%
2.750% Senior Secured Notes due 2024
Financial assets and liabilities
Maximum amount drawable - Notes			€ 750,000,000
Amount drawn			€ 750,000,000
Stated interest rate	2.75%	2.75%	2.75%
4.625% Senior Secured Notes due 2023
Financial assets and liabilities
Maximum amount drawable - Notes | $		$ 1,000		$ 1,000
Amount drawn		$ 1,000	€ 834,000,000	$ 1,000	€ 949,000,000
Stated interest rate	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			€ 440,000,000		€ 440,000,000
Amount drawn			€ 440,000,000		€ 440,000,000
Stated interest rate	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	€ 1,053,000,000
Senior Secured Floating Rate Notes due 2021
Financial assets and liabilities
Maximum amount drawable - Notes | $				500
Amount drawn				$ 500	474,000,000
4.250% Senior Secured Notes due 2022
Financial assets and liabilities
Maximum amount drawable - Notes		$ 715			1,155,000,000
Amount drawn		$ 715	€ 596,000,000		€ 1,155,000,000
Stated interest rate	4.25%	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		€ 451,000,000
Stated interest rate	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	€ 1,414,000,000
Stated interest rate	6.00%	6.00%	6.00%
6.250% Senior Notes due 2019
Financial assets and liabilities
Maximum amount drawable - Notes | $				$ 415
Amount drawn				$ 415	€ 394,000,000
Stated interest rate				6.25%	6.25%
6.750% Senior Notes due 2021
Financial assets and liabilities
Maximum amount drawable - Notes | $				$ 415
Amount drawn				$ 415	€ 394,000,000
Stated interest rate				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	€ 1,376,000,000	$ 1,650	€ 1,565,000,000
Stated interest rate	7.25%	7.25%	7.25%	7.25%	7.25%
6.750% Senior Notes due 2024
Financial assets and liabilities
Maximum amount drawable - Notes			€ 750,000,000		€ 750,000,000
Amount drawn			€ 750,000,000		€ 750,000,000
Stated interest rate	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	€ 367,000,000	$ 440	€ 417,000,000
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 - Notes | $				$ 663
Amount drawn				663	€ 629,000,000
Asset-based revolving credit facility
Financial assets and liabilities
Maximum amount drawable			€ 813,000,000
Undrawn amount			678,000,000
HSBC Securitization Program
Financial assets and liabilities
Maximum amount drawable					102,000,000
Undrawn amount					102,000,000
Bank of America Facility
Financial assets and liabilities
Maximum amount drawable | $				$ 155
Undrawn amount					147,000,000
Finance Lease Obligations
Financial assets and liabilities
Amount drawn			7,000,000		7,000,000
Other borrowings
Financial assets and liabilities
Maximum amount drawable - Notes			4,000,000		4,000,000
Amount drawn			3,000,000		3,000,000
Undrawn amount			€ 1,000,000		€ 1,000,000

Financial assets and liabilit89

Financial assets and liabilities - Movement in net debt (Details) - EUR (€) € 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	€ 90	€ (222)
(Decrease)/increase in net borrowings and derivative financial instruments	(930)	3,179
(Decrease)/increase in net debt	(840)	2,957
Net debt, beginning balance	8,807	5,850
Net debt, ending balance	7,967	8,807	€ 5,850
Proceeds from borrowings	3,497	5,479
Repayments of borrowings	4,061	2,322	€ 198
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	800	(300)
Net gain (loss) on foreign exchange on borrowings impacting net debt	€ 400	€ (200)

Financial assets and liabilit90

Financial assets and liabilities - Maturity analysis (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Financial assets and liabilities
Borrowings	€ 8,402	€ 9,707
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	962	3,332
Later than five years
Financial assets and liabilities
Borrowings	€ 7,437	€ 6,359

Financial assets and liabilit91

Financial assets and liabilities - Contracted undiscounted cash flows (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Not later than one year
Financial assets and liabilities
Borrowings	€ 482	€ 555
Derivative financial instruments	2	8
Trade and other payables	1,660	1,548
Between one and two years
Financial assets and liabilities
Borrowings	481	555
Derivative financial instruments	70
Between two and five years
Financial assets and liabilities
Borrowings	2,373	4,724
Derivative financial instruments	55
Later than five years
Financial assets and liabilities
Borrowings	8,128	€ 7,100
Derivative financial instruments	€ 126

Financial assets and liabilit92

Financial assets and liabilities - Carrying amount and fair value of borrowings (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Financial assets and liabilities
Amount drawn	€ 8,475	€ 9,805
Deferred debt issue costs and bond premium/discount	(73)	(98)
Total borrowings	8,402	9,707
Not At Fair Value
Financial assets and liabilities
Amount drawn	8,475	9,805
Deferred debt issue costs and bond premium/discount	(73)	(98)
Total borrowings	8,402	9,707
Not At Fair Value | Loan notes
Financial assets and liabilities
Amount drawn	8,465	9,166
Deferred debt issue costs and bond premium/discount	(73)	(96)
Total borrowings	8,392	9,070
Not At Fair Value | Term loan
Financial assets and liabilities
Amount drawn		629
Deferred debt issue costs and bond premium/discount		(2)
Total borrowings		627
Not At Fair Value | Finance leases
Financial assets and liabilities
Amount drawn	7	7
Total borrowings	7	7
Not At Fair Value | Bank loans, overdrafts and revolving credit facilities
Financial assets and liabilities
Amount drawn	3	3
Total borrowings	3	3
Fair Value
Financial assets and liabilities
Fair value	8,920	10,022
Fair Value | Loan notes
Financial assets and liabilities
Fair value	8,910	9,377
Fair Value | Term loan
Financial assets and liabilities
Fair value		635
Fair Value | Finance leases
Financial assets and liabilities
Fair value	7	7
Fair Value | Bank loans, overdrafts and revolving credit facilities
Financial assets and liabilities
Fair value	€ 3	€ 3

Financial assets and liabilit93

Financial assets and liabilities - Financing activity (Details) £ in Millions, $ in Millions	Dec. 07, 2017USD ($)	Jun. 12, 2017USD ($)	Apr. 10, 2017USD ($)	Mar. 09, 2017USD ($)	Mar. 09, 2017EUR (€)	Mar. 02, 2017USD ($)	Jan. 30, 2017USD ($)	Nov. 15, 2016USD ($)	Oct. 03, 2016	Sep. 16, 2016EUR (€)	May 16, 2016USD ($)	May 16, 2016EUR (€)	Dec. 31, 2017EUR (€)	Dec. 31, 2016EUR (€)	Dec. 31, 2015EUR (€)	Dec. 31, 2017GBP (£)	Dec. 31, 2017USD ($)	Dec. 31, 2017EUR (€)	Aug. 01, 2017	Jun. 30, 2017GBP (£)	Jun. 12, 2017GBP (£)	Mar. 08, 2017USD ($)	Mar. 08, 2017EUR (€)	Dec. 31, 2016USD ($)	Dec. 31, 2016EUR (€)	Sep. 16, 2016USD ($)	Sep. 16, 2016EUR (€)	May 16, 2016EUR (€)
Financial assets and liabilities
Issuance of notes | €																		€ 8,392,000,000							€ 9,070,000,000
Repayment of principal amount outstanding | €													€ 4,061,000,000	€ 2,322,000,000	€ 198,000,000
Borrowing capacity available | €																		679,000,000							€ 250,000,000
7.125%/7.875% Senior Secured Toggle Notes due 2023
Financial assets and liabilities
Issuance of notes																										$ 770
Aggregate principal amount																	$ 770	€ 770,000,000						$ 770
7.125%/7.875% Senior Secured Toggle Notes due 2023 | Minimum
Financial assets and liabilities
Stated interest rate																7.125%	7.125%	7.125%								7.125%	7.125%
7.125%/7.875% Senior Secured Toggle Notes due 2023 | Maximum
Financial assets and liabilities
Stated interest rate																7.875%	7.875%	7.875%						7.875%	7.875%	7.875%	7.875%
6.625%/7.375% Senior Secured Toggle Notes due 2023
Financial assets and liabilities
Issuance of notes | €																											€ 845,000,000
Aggregate principal amount | €																		€ 845,000,000							€ 845,000,000
6.625%/7.375% Senior Secured Toggle Notes due 2023 | Minimum
Financial assets and liabilities
Stated interest rate																6.625%	6.625%	6.625%						6.625%	6.625%	6.625%	6.625%
6.625%/7.375% Senior Secured Toggle Notes due 2023 | Maximum
Financial assets and liabilities
Stated interest rate																7.375%	7.375%	7.375%						7.375%	7.375%	7.375%	7.375%
6.000% Senior Notes due 2025
Financial assets and liabilities
Stated interest rate																6.00%	6.00%	6.00%
Aggregate principal amount																	$ 1,700
First Priority Senior Secured Floating Rate Notes due 2019
Financial assets and liabilities
Aggregate principal amount																								$ 1,110
6.250% Senior Notes due 2019
Financial assets and liabilities
Stated interest rate																								6.25%	6.25%
Aggregate principal amount																								$ 415
2.750% Senior Secured Notes due 2024
Financial assets and liabilities
Stated interest rate																2.75%	2.75%	2.75%
Aggregate principal amount | €																		€ 750,000,000
4.250% Senior Secured Notes due 2022
Financial assets and liabilities
Stated interest rate																4.25%	4.25%	4.25%						4.25%	4.25%
Aggregate principal amount																	$ 715								€ 1,155,000,000
Term Loan B Facility due 2021
Financial assets and liabilities
Aggregate principal amount																								$ 663
6.750% Senior Notes due 2021
Financial assets and liabilities
Stated interest rate																								6.75%	6.75%
Aggregate principal amount																								$ 415
4.750% Senior Notes due 2027
Financial assets and liabilities
Stated interest rate																4.75%	4.75%	4.75%
Aggregate principal amount | £																£ 400
Senior Secured Floating Rate Notes due 2021
Financial assets and liabilities
Aggregate principal amount																								$ 500
LIBOR											LIBOR	LIBOR
Asset-based revolving credit facility
Financial assets and liabilities
Maximum borrowing capacity | €																		€ 813,000,000
Borrowing capacity available | €																		€ 678,000,000
4.625% Senior Secured Notes due 2023
Financial assets and liabilities
Stated interest rate																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
Stated interest rate																4.125%	4.125%	4.125%						4.125%	4.125%
Aggregate principal amount | €																		€ 440,000,000							€ 440,000,000
7.250% Senior Notes due 2024
Financial assets and liabilities
Stated interest rate																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
Stated interest rate																6.75%	6.75%	6.75%						6.75%	6.75%
Aggregate principal amount | €																		€ 750,000,000							€ 750,000,000
8.75% Senior Notes due 2020
Financial assets and liabilities
Stated interest rate															8.75%
Repayment of principal amount outstanding | €															€ 180,000,000
Ardagh Group S.A. | 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%
Ardagh Group S.A. | First Priority Senior Secured Floating Rate Notes due 2019
Financial assets and liabilities
Repayment of principal amount outstanding				$ 265			$ 845
Ardagh Group S.A. | 6.250% Senior Notes due 2019
Financial assets and liabilities
Stated interest rate						6.25%
Repayment of principal amount outstanding						$ 415
Ardagh Group S.A. | 2.750% Senior Secured Notes due 2024
Financial assets and liabilities
Issuance of notes | €																							€ 750,000,000
Stated interest rate																						2.75%	2.75%
Ardagh Group S.A. | 4.250% Senior Secured Notes due 2022
Financial assets and liabilities
Issuance of notes																						$ 715
Stated interest rate																						4.25%	4.25%
Ardagh Group S.A. | 4.250% First Priority Senior Secured Notes due 2022
Financial assets and liabilities
Stated interest rate				4.25%	4.25%														4.25%
Repayment of principal amount outstanding | €					€ 750,000,000
Ardagh Group S.A. | Term Loan B Facility due 2021
Financial assets and liabilities
Debt instrument extended term									2 years
Ardagh Group S.A. | Term Loan B Facility due 2019
Financial assets and liabilities
Repayment of principal amount outstanding				$ 663
Ardagh Group S.A. | 6.750% Senior Notes due 2021
Financial assets and liabilities
Stated interest rate			6.75%
Repayment of principal amount outstanding			$ 415
Ardagh Group S.A. | 4.750% Senior Notes due 2027
Financial assets and liabilities
Issuance of notes | £																					£ 400
Stated interest rate																				4.75%	4.75%
Aggregate principal amount | £																				£ 400
Ardagh Group S.A. | Senior Secured Floating Rate Notes due 2021
Financial assets and liabilities
Repayment of principal amount outstanding		$ 500
Aggregate principal amount											$ 500
Variable Interest rate											3.25%																	3.25%
Ardagh Group S.A. | Asset-based revolving credit facility
Financial assets and liabilities
Facility term	5 years
Maximum borrowing capacity	$ 850
Borrowing capacity available | €																		€ 678,000,000
Ardagh Group S.A. | 4.625% Senior Secured Notes due 2023
Financial assets and liabilities
Stated interest rate											4.625%																	4.625%
Aggregate principal amount											$ 1,000
Ardagh Group S.A. | 4.125% Senior Secured Notes due 2023
Financial assets and liabilities
Stated interest rate											4.125%																	4.125%
Aggregate principal amount | €																												€ 440,000,000
Ardagh Group S.A. | 7.250% Senior Notes due 2024
Financial assets and liabilities
Stated interest rate											7.25%													7.25%	7.25%			7.25%
Aggregate principal amount											$ 1,650													$ 1,650
Ardagh Group S.A. | 6.750% Senior Notes due 2024
Financial assets and liabilities
Stated interest rate											6.75%																	6.75%
Aggregate principal amount | €																												€ 750,000,000
Ardagh Group S.A. | 9.250% Senior Notes due 2020
Financial assets and liabilities
Stated interest rate											9.25%																	9.25%
Repayment of principal amount outstanding | €												€ 475,000,000
Ardagh Group S.A. | 9.125% Senior Notes due 2020
Financial assets and liabilities
Stated interest rate											9.125%																	9.125%
Repayment of principal amount outstanding											$ 920
Ardagh Group S.A. | 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
Ardagh Group S.A. | 8.625% Senior PIK Notes due 2019
Financial assets and liabilities
Stated interest rate																										8.625%	8.625%
Repayment of principal amount outstanding | €										€ 710,000,000
Ardagh Group S.A. | 8.375% Senior PIK Notes due 2019
Financial assets and liabilities
Stated interest rate																										8.375%	8.375%
Repayment of principal amount outstanding | €										€ 250,000,000

Financial assets and liabilit94

Financial assets and liabilities - Effective interest rates (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
7.125%/7.875% Senior Secured Toggle Notes due 2023 | U.S. dollar
Financial assets and liabilities
Effective interest rate	7.49%	7.57%
6.625%/7.375% Senior Secured Toggle Notes due 2023 | Euro
Financial assets and liabilities
Effective interest rate	7.03%	7.05%
2.750% Senior Secured Notes due 2024
Financial assets and liabilities
Stated interest rate	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% 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% 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 | 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%
4.750% 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%
6.000% 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%
7.250% 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%
6.750% 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%
6.750% 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%
6.250% 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 liabilit95

Financial assets and liabilities - Carrying amount and undrawn borrowing facilities (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Financial assets and liabilities
Borrowings	€ 8,402	€ 9,707
Undrawn amount	679	250
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	678	249
Euro
Financial assets and liabilities
Borrowings	2,770	3,167
U.S. dollar
Financial assets and liabilities
Borrowings	5,183	6,538
British pounds
Financial assets and liabilities
Borrowings	€ 449	€ 2

Financial assets and liabilit96

Financial assets and liabilities - Derivative financial instruments (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Financial assets and liabilities
Financial assets transfer from Level 1 to Level 2	€ 0
Financial assets transfer from Level 2 to Level 1	0
Non-current derivative financial assets	6	€ 124
Current derivative financial instruments	13	11
Non-current derivative financial liabilities	251	0
Current derivative financial liabilities	2	8
Derivatives
Financial assets and liabilities
Fair value of assets	19	135
Contractual or notional amounts of assets	321	1,703
Fair value of liabilities	253	8
Contractual or notional amounts of liabilities	2,651	195
Metal forward contracts
Financial assets and liabilities
Fair value of assets	14	8
Contractual or notional amounts of assets	164	187
Cross currency interest rate swaps (CCIRS)
Financial assets and liabilities
Fair value of assets		124
Contractual or notional amounts of assets		1,499
Fair value of liabilities	251
Contractual or notional amounts of liabilities	2,591
Forward foreign exchange contracts
Financial assets and liabilities
Fair value of assets	3
Contractual or notional amounts of assets	149
Fair value of liabilities	1	8
Contractual or notional amounts of liabilities	43	195
NYMEX gas swaps
Financial assets and liabilities
Fair value of assets		2
Contractual or notional amounts of assets		15
Fair value of liabilities	1
Contractual or notional amounts of liabilities	17
Carbon futures
Financial assets and liabilities
Fair value of assets	2	1
Contractual or notional amounts of assets	8	2
Ardagh Group S.A. | Cross currency interest rate swaps (CCIRS)
Financial assets and liabilities
Fair value of assets		€ 124
Non-current derivative financial liabilities	€ 251

Financial assets and liabilit97

Financial assets and liabilities - Cross currency interest rate swaps, metal forward contracts, forward foreign exchange contracts and NYMEX gas swaps (Details) € in Millions, £ in Millions, $ in Millions

1 Months Ended

12 Months Ended

Jun. 30, 2017USD ($)

Jun. 30, 2017EUR (€)

Jun. 30, 2016USD ($)

Dec. 31, 2015EUR (€)

Dec. 31, 2017USD ($)

Dec. 31, 2017EUR (€)

Dec. 31, 2016EUR (€)

Dec. 31, 2015EUR (€)

Dec. 31, 2017GBP (£)

Dec. 31, 2017USD ($)

Dec. 31, 2017EUR (€)

Jun. 30, 2017GBP (£)

Jun. 12, 2017GBP (£)

Dec. 31, 2016USD ($)

Dec. 31, 2016EUR (€)

May 16, 2016USD ($)

Disclosure of detailed information about hedging instruments [line items]

Derivative financial instruments used to hedge foreign currency and interest rate risk

€ 251

€ 0

Derivative financial instruments used to hedge foreign currency and interest rate risk

6

124

Issuance of notes

8,392

9,070

Derivatives

Disclosure of detailed information about hedging instruments [line items]

Derivative financial assets

19

135

Cross currency interest rate swaps (CCIRS)

Disclosure of detailed information about hedging instruments [line items]

Contract value | $

$ 500

Derivative financial assets

124

Metal forward contracts

Disclosure of detailed information about hedging instruments [line items]

Derivative financial assets

14

8

Forward foreign exchange contracts

Disclosure of detailed information about hedging instruments [line items]

Derivative financial assets

€ 3

NYMEX gas swaps

Disclosure of detailed information about hedging instruments [line items]

Derivative financial assets

€ 2

4.750% Senior Notes due 2027

Disclosure of detailed information about hedging instruments [line items]

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]

Aggregate principal amount | $

$ 1,650

$ 1,650

Stated interest rate

7.25%

7.25%

7.25%

7.25%

7.25%

Ardagh Group S.A.

Disclosure of detailed information about hedging instruments [line items]

Gain (loss) recognized on hedge ineffectiveness of net investments in foreign operations

€ 0

€ 0

€ 0

Ardagh Group S.A. | 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

€ 251

Proceeds on termination

€ 81

Derivative financial assets

€ 124

Ardagh Group S.A. | Cross currency interest rate swaps (CCIRS) | Exceptional items

Disclosure of detailed information about hedging instruments [line items]

Gain on derivative instruments

78

Loss on hedge ineffectiveness

€ (10)

Ardagh Group S.A. | Cross currency interest rate swaps (CCIRS) | CCIRS, US dollar to euro

Disclosure of detailed information about hedging instruments [line items]

Contract value | $

$ 440

$ 1,250

Ardagh Group S.A. | Cross currency interest rate swaps (CCIRS) | CCIRS, euro to British pounds

Disclosure of detailed information about hedging instruments [line items]

Contract value

332

Ardagh Group S.A. | Cross currency interest rate swaps (CCIRS) | CCIRS, US dollar to British pounds

Disclosure of detailed information about hedging instruments [line items]

Contract value | $

$ 500

Proceeds on termination

€ 42

Ardagh Group S.A. | 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

€ 14

Ardagh Group S.A. | 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

Ardagh Group S.A. | Metal forward contracts

Disclosure of detailed information about hedging instruments [line items]

Premium paid

0

Premium received

0

Ardagh Group S.A. | Metal forward contracts | Level 2

Disclosure of detailed information about hedging instruments [line items]

Derivative financial assets

0

Ardagh Group S.A. | Forward foreign exchange contracts

Disclosure of detailed information about hedging instruments [line items]

Premium paid

0

Premium received

0

Ardagh Group S.A. | Forward foreign exchange contracts | Level 2

Disclosure of detailed information about hedging instruments [line items]

Derivative financial assets

0

Ardagh Group S.A. | NYMEX gas swaps

Disclosure of detailed information about hedging instruments [line items]

Premium paid

0

Premium received

€ 0

Ardagh Group S.A. | NYMEX gas swaps | Level 2

Disclosure of detailed information about hedging instruments [line items]

Derivative financial assets

€ 0

Ardagh Group S.A. | 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%

Ardagh Group S.A. | 7.250% Senior Notes due 2024

Disclosure of detailed information about hedging instruments [line items]

Aggregate principal amount | $

$ 1,650

$ 1,650

Stated interest rate

7.25%

7.25%

7.25%

Employee benefit obligations -

Employee benefit obligations - Defined benefit scheme (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Employee benefit obligations
Employee benefit obligations.	€ 831	€ 905
Ardagh Group S.A.
Employee benefit obligations
Employee benefit obligations.	831	905
Ardagh Group S.A. | Defined benefit plan
Employee benefit obligations
Obligations	(2,303)	(2,942)
Assets	1,582	2,159
Net	(721)	(783)
Ardagh Group S.A. | Defined benefit plan | United States
Employee benefit obligations
Obligations	(1,094)	(1,137)
Assets	983	1,012
Net	(111)	(125)
Ardagh Group S.A. | Defined benefit plan | Germany
Employee benefit obligations
Obligations	(338)	(345)
Net	(338)	(345)
Ardagh Group S.A. | Defined benefit plan | United Kingdom
Employee benefit obligations
Obligations	(834)	(898)
Assets	589	626
Net	(245)	(272)
Ardagh Group S.A. | Defined benefit plan | Netherlands
Employee benefit obligations
Obligations	(16)	(540)
Assets		513
Net	(16)	(27)
Ardagh Group S.A. | Defined benefit plan | Other
Employee benefit obligations
Obligations	(21)	(22)
Assets	10	8
Net	(11)	(14)
Ardagh Group S.A. | Other employee benefit obligations
Employee benefit obligations
Employee benefit obligations.	€ 110	€ 122

Employee benefit obligations 99

Employee benefit obligations - Amounts recognized in consolidated income statement (Details) - Ardagh Group S.A. - Defined benefit plan - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee benefit obligations
Cost of sales-current service cost	€ (38)	€ (37)	€ (40)
Cost of sales-past service credit	7	29
SGA-current service cost	(3)	(5)	(5)
SGA-past service credit	2	10
Current service cost and administration costs excluding finance expense	(32)	(3)	(45)
Finance expense (Note 5)	(22)	(24)	(23)
Current service cost and administration costs	€ (54)	€ (27)	€ (68)

Employee benefit obligations100

Employee benefit obligations - Amounts recognized in consolidated statement of comprehensive income (Details) - EUR (€) € 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	€ 43	€ (121)	€ 72
Ardagh Group S.A.
Employee benefit obligations
Actuarial gain/(loss) for the year on pension benefits	43	(121)	72
Ardagh Group S.A. | Defined benefit plan
Employee benefit obligations
Actuarial (loss)/gain arising from changes in demographic assumptions	(5)	24	8
Actuarial (loss)/gain arising from changes in financial assumptions	(93)	(251)	99
Actuarial gain/(loss) arising from changes in experience	2	(10)	30
Re-measurements of defined benefit obligations	(96)	(237)	137
Actual return/(loss) less expected return on plan assets	140	112	(81)
Actuarial gain/(loss) for the year on pension benefits	44	(125)	56
Gain (loss) on plan assets	203	186	(9)
Ardagh Group S.A. | Other employee benefit obligations
Employee benefit obligations
Actuarial gain/(loss) for the year on pension benefits	€ (1)	€ 4	€ 16

Employee benefit obligations101

Employee benefit obligations - Movement in defined benefit obligations and assets (Details) - Ardagh Group S.A. - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Employee benefit obligations
Past service credit		€ (18)
Defined benefit plan | Obligations
Employee benefit obligations
Balance at the beginning	€ (2,942)	(2,614)
Acquired		(354)
Current service cost	(41)	(42)
Past service credit	9	39
Interest cost	(82)	(95)
Re‑measurements	(96)	(237)
Liabilities/(assets) extinguished on reclassification	535	187
Employee contributions	(2)	(5)
Benefits paid	145	118
Exchange	171	61
Balance at the end	(2,303)	(2,942)
Defined benefit plan | Assets.
Employee benefit obligations
Balance at the beginning	2,159	1,976
Interest income	63	74
Acquired		271
Administration expenses paid from plan assets	(2)	(3)
Re‑measurements	140	112
Liabilities/(assets) extinguished on reclassification	(535)	(187)
Employer contributions	45	43
Employer contributions—acquisition related		7
Employee contributions	2	5
Benefits paid	(145)	(118)
Exchange	(145)	(21)
Balance at the end	€ 1,582	€ 2,159

Employee benefit obligations102

Employee benefit obligations - Defined benefit obligations and assets (Details) - Ardagh Group S.A. - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee benefit obligations
Past service credit gain (loss)		€ 18
Beverage Can
Employee benefit obligations
Contribution from employer	€ 7
Defined benefit plan
Employee benefit obligations
Unfunded defined benefit obligations	379	380
Defined benefit obligation	2,303	2,942
Defined benefit assets	1,582	2,159
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)	33
Extinguished defined benefit pension plans
Employee benefit obligations
Employer contributions	6	11
Exceptional items | Glass Packaging North America
Employee benefit obligations
Past service credit gain (loss)		21
Netherlands | Defined benefit plan
Employee benefit obligations
Past service credit gain (loss)	9	8
Defined benefit obligation	16	540
Defined benefit assets		513
Netherlands | Defined benefit plan transfer to multi-employer plan, plan one
Employee benefit obligations
Defined benefit obligation		187	174
Defined benefit assets		187	€ 168
Netherlands | Defined benefit plan transfer to multi-employer plan, plan two
Employee benefit obligations
Defined benefit obligation	535	524
Defined benefit assets	€ 535	€ 513

Employee benefit obligations103

Employee benefit obligations - Plan asset (Details) - Ardagh Group S.A. - Defined benefit plan - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Employee benefit obligations
Equities	€ 981	€ 1,152
Target return funds	248	275
Bonds	208	558
Cash/other	145	174
Total plan assets	€ 1,582	€ 2,159
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 obligations104

Employee benefit obligations - Characteristics and associated risks (Details) - Ardagh Group S.A. $ 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 obligations105

Employee benefit obligations - Ranges of assumptions (Details) - Ardagh Group S.A. - 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 obligations106

Employee benefit obligations - Mortality assumptions (Details) - Ardagh Group S.A. - 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 obligations107

Employee benefit obligations - Sensitivity analysis (Details) - Ardagh Group S.A. - Defined benefit plan - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Assumptions and sensitivities
Estimate of contributions expected to be paid in next year	€ 30	€ 37
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	€ 180	€ 243
Increase in actuarial assumption (as a percent)	0.50%	0.50%
Increase (decrease) in pension obligations due to increase in actuarial assumption	€ (192)	€ (242)
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	€ (80)	€ (93)
Increase in actuarial assumption (as a percent)	0.50%	0.50%
Increase (decrease) in pension obligations due to increase in actuarial assumption	€ 76	€ 93
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	€ (86)	€ (93)
Increase in actuarial assumption (as a percent)	0.50%	0.50%
Increase (decrease) in pension obligations due to increase in actuarial assumption	€ 81	€ 92
Expected longevity
Assumptions and sensitivities
Increase (decrease) in pension obligations due to increase in actuarial assumption	€ 46	€ 63
Increase in actuarial assumption (in years)	1 year	1 year

Employee benefit obligations108

Employee benefit obligations - Principal defined benefit schemes (Details) - Ardagh Group S.A.	12 Months Ended
	Dec. 31, 2017Yitem	Dec. 31, 2016Yitem
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 obligations109

Employee benefit obligations - Expected benefit payments (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee benefit obligations
Contribution expense	€ 31	€ 31	€ 14
Ardagh Group S.A.
Employee benefit obligations
Contribution expense	31	€ 31	€ 14
Estimate of contributions expected to be paid in next year	36
Ardagh Group S.A. | Defined benefit plan | Not later than one year
Employee benefit obligations
Benefits	97
Ardagh Group S.A. | Defined benefit plan | Between one and two years
Employee benefit obligations
Benefits	95
Ardagh Group S.A. | Defined benefit plan | Between two and three years
Employee benefit obligations
Benefits	98
Ardagh Group S.A. | Defined benefit plan | Between three and four years
Employee benefit obligations
Benefits	101
Ardagh Group S.A. | Defined benefit plan | Between four and five years
Employee benefit obligations
Benefits	104
Ardagh Group S.A. | Defined benefit plan | Later than five years
Employee benefit obligations
Benefits	€ 560

Employee benefit obligations110

Employee benefit obligations - Other employee benefits (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Employee benefit obligations
Other employee benefits	€ 831	€ 905
Ardagh Group S.A.
Employee benefit obligations
Other employee benefits	831	905
Ardagh Group S.A. | Other employee benefit obligations
Employee benefit obligations
Other employee benefits	110	122
Ardagh Group S.A. | End of service employee benefits
Employee benefit obligations
Other employee benefits	21	23
Ardagh Group S.A. | Long term employee benefits
Employee benefit obligations
Other employee benefits	€ 89	€ 99

Provisions - Current and non-cu

Provisions - Current and non-current (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Provisions
Current	€ 58	€ 69
Non‑current	37	57
Total	€ 95	€ 126	€ 96

Provisions - Restructuring and

Provisions - Restructuring and other provisions (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Provisions
At beginning of year	€ 126	€ 96
Acquisitions		38
Provided	34	54
Released	(30)	(26)
Paid	(28)	(38)
Exchange	(7)	2
At end of year	95	126
Restructuring
Provisions
At beginning of year	22	18
Provided	11	25
Released	(2)	(11)
Paid	(9)	(10)
Exchange	(1)
At end of year	21	22
Other provisions
Provisions
At beginning of year	104	78
Acquisitions		38
Provided	23	29
Released	(28)	(15)
Paid	(19)	(28)
Exchange	(6)	2
At end of year	€ 74	€ 104

Trade and other payables (Detai

Trade and other payables (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Trade and other payables
Trade payables	€ 1,225	€ 1,055
Other payables and accruals	365	419
Amounts owed to parent company		3
Other tax and social security payable	41	32
Payables and accruals for exceptional items	29	39
Total	€ 1,660	€ 1,548

Cash generated from operatin114

Cash generated from operating activities (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash generated from operating activities
Profit/(loss) for the year	€ 34	€ (155)	€ (120)
Income tax (credit)/charge	(35)	60	43
Net finance expense	602	615	527
Depreciation and amortization	611	507	403
Exceptional operating items (Note 4)	128	131	81
Movement in working capital	64	120	90
Acquisition related, IPO, start up and other exceptional costs paid	(65)	(159)	(54)
Exceptional restructuring paid	(9)	(10)	(20)
Cash generated from operations	€ 1,330	€ 1,109	€ 950

Business combinations and di115

Business combinations and disposals - Beverage Can Business (Details) € in Millions, $ in Billions	Jun. 30, 2016USD ($)item	Jun. 30, 2016EUR (€)item	Dec. 31, 2017EUR (€)	Dec. 31, 2016EUR (€)	Dec. 31, 2015EUR (€)
Business combinations
Annual revenue			€ 7,644	€ 6,345	€ 5,199
Assets acquired and liabilities assumed
Goodwill			1,835	1,981
United States
Business combinations
Annual revenue			€ 2,899	€ 2,437	€ 1,997
Ardagh Group S.A. | Beverage Can
Business combinations
Annual revenue	$ 3	€ 2,800
Assets acquired and liabilities assumed
Cash and cash equivalents		10
Property, plant and equipment		632
Intangible assets		1,289
Inventories		265
Trade and other receivables		331
Trade and other payables		(436)
Net deferred tax liability		(146)
Employee benefit obligations		(116)
Provisions		(38)
Total identifiable net assets		1,791
Goodwill		904
Total consideration		2,695
Ardagh Group S.A. | Beverage Can North America
Assets acquired and liabilities assumed
Goodwill expected to be deductible for tax purposes		€ 268
Ardagh Group S.A. | Europe | Beverage Can
Business combinations
Number of beverage can manufacturing plants acquired | item	10	10
Number of end plants acquired | item	2	2
Ardagh Group S.A. | United States | Beverage Can
Business combinations
Number of beverage can manufacturing plants acquired | item	7	7
Number of end plants acquired | item	1	1
Ardagh Group S.A. | Brazil | Beverage Can
Business combinations
Number of beverage can manufacturing plants acquired | item	2	2

Related party information (Deta

Related party information (Details) - EUR (€) € in Millions	Feb. 21, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Related party borrowings and receivables
Investment in joint ventures		€ 8	€ 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
Key Management Personnel
Related party borrowings and receivables
Amount payable		6	4	4
Salaries and other short term employee benefits		11	11	9
Other employment benefits		1	1	1
Key management compensation excluding transaction cost		12	12	10
Transaction related compensation		6	26
Key management compensation		€ 18	€ 38	€ 10

Contingencies (Details)

Contingencies (Details) - Ardagh Group S.A. € in Millions, $ in Millions	Apr. 21, 2017USD ($)item	Dec. 31, 2017EUR (€)item
Contingencies
Damages awarded to plaintiff | $	$ 50
Number of asserted patent infringements awarded	1
Number of alleged patent infringements asserted		2
Federal Cartel Office investigation
Contingencies
Provision for legal proceedings | €		€ 0

Company financial information -

Company financial information - Financial position (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Non-current assets
Total non-current assets	€ 6,441	€ 7,218
Current assets
Cash and cash equivalents	686	776	€ 554	€ 433
Total current assets	2,889	3,076
TOTAL ASSETS	9,330	10,294	6,339
Equity attributable to owners of the parent
Retained earnings	(2,204)	(2,661)
Total equity attributable to owners of the parent	(2,529)	(2,990)	(2,374)
Non-current liabilities
Borrowings	8,400	9,699
Total non-current liabilities	10,005	11,355
Current liabilities
Interest payable	89	112
Total current liabilities	1,946	1,927
TOTAL LIABILITIES	11,951	13,282
TOTAL EQUITY and LIABILITIES	9,330	10,294
ARD Finance S.A.
Non-current assets
Investments in subsidiary undertakings	882	837
Related party receivables	642	730
Total non-current assets	1,524	1,567
Current assets
Receivables from subsidiary undertaking	8	15
Cash and cash equivalents	32	4	€ 1	€ 1
Total current assets	40	19
TOTAL ASSETS	1,564	1,586
Equity attributable to owners of the parent
Retained earnings	54	(15)
Total equity attributable to owners of the parent	54	(15)
Non-current liabilities
Borrowings	1,479	1,569
Total non-current liabilities	1,479	1,569
Current liabilities
Interest payable	31	31
Other payables		1
Total current liabilities	31	32
TOTAL LIABILITIES	1,510	1,601
TOTAL EQUITY and LIABILITIES	€ 1,564	€ 1,586

Company financial informatio119

Company financial information - Comprehensive income (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of comprehensive income
Finance expense	€ (602)	€ (693)	€ (527)
Finance income		78
Profit/(loss) before tax	(1)	(95)	(77)
Income tax	(35)	60	€ 43
ARD Finance S.A.
Statement of comprehensive income
Dividend income	133	270
Finance expense	(111)	(31)
Finance income	50	14
Profit/(loss) before tax	72	253
Profit and total comprehensive income for the year	€ 72	€ 253

Company financial informatio120

Company financial information - Cash flows (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Cash generated from operations	€ 1,330	€ 1,109	€ 950
Interest paid	(510)	(556)	(323)
Net cash from operating activities	730	469	568
Cash flows from investing activities
Net cash used in investing activities	(436)	(3,003)	(304)
Cash flows from financing activities
Repayment of borrowings	(4,061)	(2,322)	(198)
Proceeds from borrowings	3,497	5,479
Early redemption premium costs paid	85	108	8
Deferred debt issue costs paid	(39)	(72)	(2)
Net cash (outflow)/inflow from financing activities	(350)	2,707	(142)
Net (decrease)/increase in cash and cash equivalents	(90)	222
Cash and cash equivalents at the beginning of the year	776	554	433
Cash and cash equivalents at the end of the year	686	776	554
ARD Finance S.A.
Cash flows from operating activities
Related party interest received	54
Interest paid	(105)
Net cash from operating activities	(51)
Cash flows from investing activities
Repayment of loans from subsidiary undertakings	(3)	(404)
Contribution to subsidiary undertaking	(45)	(431)
Dividends received	133	270
Loans granted to subsidiary undertakings		(679)
Net cash used in investing activities	85	(1,244)
Cash flows from financing activities
Proceeds from borrowings		1,529
Dividends paid	(3)	(270)	0
Deferred debt issue costs paid	(3)	(12)
Net cash (outflow)/inflow from financing activities	(6)	1,247
Net (decrease)/increase in cash and cash equivalents	28	3
Cash and cash equivalents at the beginning of the year	4	1	1
Cash and cash equivalents at the end of the year	€ 32	€ 4	€ 1

Company financial informatio121

Company financial information - Maturity analysis of borrowings (Details) - EUR (€) € in Millions	Dec. 31, 2017	Dec. 31, 2016
Maturity analysis of borrowings including related party borrowings
Borrowings	€ 8,402	€ 9,707
Later than five years
Maturity analysis of borrowings including related party borrowings
Borrowings	7,437	6,359
ARD Finance S.A.
Maturity analysis of borrowings including related party borrowings
Borrowings	1,479	€ 1,569
ARD Finance S.A. | Later than five years
Maturity analysis of borrowings including related party borrowings
Borrowings	€ 1,479

Company financial informatio122

Company financial information - Distributions paid and received and commitments and contingencies (Details) - ARD Finance S.A. - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Distributions paid and received
Dividend received from subsidiary	€ 133	€ 270	€ 0
Dividend paid to parent company	3	270	€ 0
Commitments and contingencies
Commitments and contingencies	€ 0	€ 0

Company financial informatio123

Company financial information - Additional information (Details) - EUR (€) € in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
IFRS profit/(loss) reconciliation:
IFRS profit (loss) for the year	€ 31	€ (155)	€ (120)
IFRS equity reconciliation:
IFRS equity	(2,529)	(2,990)	(2,374)
ARD Finance S.A.
IFRS profit/(loss) reconciliation:
Parent only—IFRS profit for the year	72	253
IFRS equity reconciliation:
IFRS equity	54	(15)
Reportable Legal Entities | ARD Finance S.A.
IFRS profit/(loss) reconciliation:
Parent only—IFRS profit for the year	72	253
IFRS equity reconciliation:
IFRS equity	54	(15)	(3)
Consolidation Adjustments
IFRS profit/(loss) reconciliation:
Additional loss if subsidiaries had been accounted for on the equity method of accounting as opposed to cost	(41)	(408)	(120)
IFRS equity reconciliation:
Additional loss if subsidiaries had been accounted for on the equity method of accounting as opposed to cost	€ (2,583)	€ (2,975)	€ (2,371)