Smith & Nephew (SNN) 20-F 6 Mar 23 2022 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2022 shares
Document and Entity Information
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Dec. 31, 2022
Entity File Number	1-14978
Entity Registrant Name	Smith & Nephew plc
Entity Incorporation, State or Country Code	X0
Entity Address, Address Line One	Building 5, Croxley Park, Hatters Lane
Entity Address, City or Town	Watford
Entity Address, Country	GB
Entity Address, Postal Zip Code	WD18 8YE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Document Accounting Standard	International Financial Reporting Standards
Entity Emerging Growth Company	false
Entity Shell Company	false
ICFR Auditor Attestation Flag	true
Auditor Name	KPMG LLP
Auditor Firm ID	1118
Auditor Location	London, United Kingdom
Entity Common Stock, Shares Outstanding	877,649,585
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Central Index Key	0000845982
Amendment Flag	false
Business Contact [Member]
Document and Entity Information
Entity Address, Address Line One	Building 5, Croxley Park, Hatters Lane
Entity Address, City or Town	Watford
Entity Address, Postal Zip Code	WD18 8YE
City Area Code	1923
Local Phone Number	477340
Contact Personnel Name	Helen Barraclough
Contact Personnel Email Address	helen.barraclough@smith-nephew.com
American Depositary Shares
Document and Entity Information
Title of 12(b) Security	American Depositary Shares
Trading Symbol	SNN
Security Exchange Name	NYSE
Ordinary Shares
Document and Entity Information
Title of 12(b) Security	Ordinary Shares of 20¢ each
No Trading Symbol Flag	true
2.032% Notes due 2030
Document and Entity Information
Title of 12(b) Security	2.032% Notes due 2030
Trading Symbol	SNN 30
Security Exchange Name	NYSE
4.565% Notes due 2029
Document and Entity Information
Title of 12(b) Security	4.565% Notes due 2029
Trading Symbol	SNLN
Security Exchange Name	NYSE

GROUP INCOME STATEMENT

GROUP INCOME STATEMENT - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
GROUP INCOME STATEMENT
Revenue	$ 5,215	$ 5,212	$ 4,560
Cost of goods sold	(1,540)	(1,543)	(1,396)
Gross profit	3,675	3,669	3,164
Selling, general and administrative expenses	(2,880)	(2,720)	(2,562)
Research and development expenses	(345)	(356)	(307)
Operating profit	450	593	295
Interest income	14	6	6
Interest expense	(80)	(80)	(62)
Other finance costs	(8)	(17)	(7)
Share of results of associates	(141)	9	14
Gain on disposal of interest in associate		75	0
Profit before taxation	235	586	246
Taxation	(12)	(62)	202
Attributable profit for the year	$ 223	$ 524	$ 448
Earnings per ordinary share
Basic	$ 0.255	$ 0.598	$ 0.513
Diluted	$ 0.255	$ 0.597	$ 0.512

GROUP STATEMENT OF COMPREHENSIV

GROUP STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
GROUP STATEMENT OF COMPREHENSIVE INCOME
Attributable profit for the year	$ 223	$ 524	$ 448
Items that will not be reclassified to income statement
Remeasurement of net retirement benefit obligations	30	79	10
Taxation on other comprehensive income	(7)	(22)	(4)
Total items that will not be reclassified to income statement	23	57	6
Items that may be reclassified subsequently to income statement
Cash flow hedges - forward foreign exchange contracts Gains/(losses) arising in the year	24	34	(24)
Losses/(gains) transferred to inventories for the year	(37)	7	(6)
Exchange differences on translation of foreign operations	(102)	(53)	21
Taxation on other comprehensive income	2	(5)	4
Total items that may be reclassified subsequently to income statement	(113)	(17)	(5)
Other comprehensive (loss)/income for the year, net of taxation	(90)	40	1
Total comprehensive income for the year	$ 133	$ 564	$ 449

GROUP BALANCE SHEET

GROUP BALANCE SHEET - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Non-current assets
Property, plant and equipment	$ 1,455	$ 1,513
Goodwill	3,031	2,989
Intangible assets	1,236	1,398
Investments	12	10
Investments in associates	46	188
Other non-current assets	12	15
Retirement benefit assets	141	182
Deferred tax assets	177	201
Total non current assets	6,110	6,496
Current assets
Inventories	2,205	1,844
Trade and other receivables	1,264	1,184
Current tax receivable	37	106
Cash at bank	350	1,290
Total current assets	3,856	4,424
Total assets	9,966	10,920
Equity attributable to owners of the Company
Share capital	175	177
Share premium	615	614
Capital redemption reserve	20	18
Treasury shares	(118)	(120)
Other reserves	(459)	(346)
Retained earnings	5,026	5,225
Total equity	5,259	5,568
Non-current liabilities
Long-term borrowings and lease liabilities	2,712	2,848
Retirement benefit obligations	70	127
Other payables	90	67
Provisions	84	35
Deferred tax liabilities	36	144
Total non-current liabilities	2,992	3,221
Current liabilities
Bank overdrafts, borrowings, loans and lease liabilities	160	491
Trade and other payables	1,098	1,096
Provisions	243	322
Current tax payable	214	222
Total current liabilities	1,715	2,131
Total liabilities	4,707	5,352
Total equity and liabilities	$ 9,966	$ 10,920

GROUP CASH FLOW STATEMENT

GROUP CASH FLOW STATEMENT - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Profit before taxation	$ 235	$ 586	$ 246
Net interest expense	66	74	56
Depreciation, amortisation and impairment	617	567	562
Loss on disposal of property, plant and equipment and software	11	14	34
Share-based payments expense (equity-settled)	40	41	26
Share of results of associates	141	(9)	(14)
Gain on disposal of interest in associate		(75)	0
Net movement in post-retirement benefit obligations	6		1
Increase in inventories	(407)	(151)	(45)
(Increase)/decrease in trade and other receivables	(103)	(81)	209
Increase/(decrease) in trade and other payables and provisions	(25)	82	(103)
Cash generated from operations	581	1,048	972
Interest received	7	6	2
Interest paid	(73)	(80)	(61)
Income taxes (paid)	(47)	(97)
Income taxes refunded			22
Net cash inflow from operating activities	468	877	935
Cash flows from investing activities
Acquisitions, net of cash acquired	(113)	(285)	(170)
Capital expenditure	(358)	(408)	(443)
Net (purchase)/proceeds from sale of investments	(2)	(2)	(2)
Distribution from associate	1	4	9
Net cash used in investing activities	(472)	(691)	(606)
Cash flows from financing activities
Proceeds from issue of ordinary share capital	1	2	2
Purchase of own shares	(158)		(16)
Payment of capital element of lease liabilities	(54)	(59)	(55)
Settlement of borrowings due within one year	(407)	(267)	(5)
Proceeds from borrowings due after one year	485		1,950
Settlement of borrowings due after one year	(474)		(400)
Proceeds from own shares	5	12	9
Settlement of currency swaps	3	(4)	7
Equity dividends paid	(327)	(329)	(328)
Net cash (used in)/from financing activities	(926)	(645)	1,164
Net (decrease)/increase in cash and cash equivalents	(930)	(459)	1,493
Cash and cash equivalents at beginning of year	1,285	1,751	257
Exchange adjustments	(11)	(7)	1
Cash and cash equivalents at end of year	344	1,285	1,751
Restructuring and rationalisation expenses	120	108	117
Acquisition-related costs	22	28	24
Legal and other costs	(133)	(111)	75
Bank overdrafts	$ 6	$ 5	$ 11

GROUP STATEMENT OF CHANGES IN E

GROUP STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions	Share capital	Share premium	Capital redemption reserve	Treasury shares	Other reserves	[1]	Retained earnings	Total
Balance at beginning of period at Dec. 31, 2019	$ 177	$ 610	$ 18	$ (189)	$ (324)		$ 4,849	$ 5,141
Attributable profit for the year							448	448
Other comprehensive (expense)/income					(5)		6	1
Equity dividends declared and paid							(328)	(328)
Share-based payments recognised							26	26
Taxation on share-based payments							(4)	(4)
Purchase of own shares				(16)				(16)
Cost of shares transferred to beneficiaries				37			(28)	9
Cancellation of treasury shares				11			(11)
Issue of ordinary share capital		2						2
Balance at end of period at Dec. 31, 2020	177	612	18	(157)	(329)		4,958	5,279
Attributable profit for the year							524	524
Other comprehensive (expense)/income					(17)		57	40
Equity dividends declared and paid							(329)	(329)
Share-based payments recognised							41	41
Taxation on share-based payments							(1)	(1)
Cost of shares transferred to beneficiaries				37			(25)	12
Issue of ordinary share capital		2						2
Balance at end of period at Dec. 31, 2021	177	614	18	(120)	(346)		5,225	5,568
Attributable profit for the year							223	223
Other comprehensive (expense)/income					(113)		23	(90)
Equity dividends declared and paid							(327)	(327)
Share-based payments recognised							40	40
Taxation on share-based payments							(3)	(3)
Purchase of own shares				(158)				(158)
Cost of shares transferred to beneficiaries				31			(26)	5
Cancellation of treasury shares	(2)		2	129			(129)
Issue of ordinary share capital		1						1
Balance at end of period at Dec. 31, 2022	$ 175	$ 615	$ 20	$ (118)	$ (459)		$ 5,026	$ 5,259
[1] Attributable to equity holders of the Company and wholly derived from continuing operations.

GROUP STATEMENT OF CHANGES IN_2

GROUP STATEMENT OF CHANGES IN EQUITY (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
GROUP STATEMENT OF CHANGES IN EQUITY
Cumulative translation loss within other reserves	$ 452	$ 350	$ 297
Capital reserve	$ 2,266	$ 2,266	$ 2,266

BASIS OF PREPARATION

BASIS OF PREPARATION	12 Months Ended
	Dec. 31, 2022
BASIS OF PREPARATION
BASIS OF PREPARATION	1 Smith & Nephew plc (the “Company”) is a public limited company incorporated in England and Wales. In these accounts, the ‘Group’ means the Company and all its subsidiaries. The principal activities of the Group are to develop, manufacture, market and sell medical devices and services. The Group has prepared its accounts in accordance with UK-adopted International Accounting Standards. The Group has also prepared its accounts in accordance with IFRS as issued by the International Accounting Standards Board (IASB) effective as at 31 December 2022. IFRS as adopted in the UK differs in certain respects from IFRS as issued by the IASB. However, the differences have no impact for the periods presented. The preparation of accounts in conformity with IFRS requires management to use estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the accounts and the reported amounts of revenues and expenses during the year. The accounting policies requiring management to use significant estimates and assumptions are: inventories, liability provisions and impairment. These are discussed in Note 1.2 below. Although these estimates are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively. The uncertainties as to the future impact on the financial performance and cash flows of the Group as a result of the current challenging economic environment have been considered as part of the Group’s adoption of the going concern basis in these financial statements, in which context the Directors reviewed cash flow forecasts prepared for a period of at least 12 months from the date of approval of these financial statements. Having carefully reviewed those forecasts, the Directors concluded that it was appropriate to adopt the going concern basis of accounting in preparing these financial statements for the reasons set out below. The Group had access to $344 m of cash and cash equivalents at 31 December 2022. The Group’s net debt, excluding lease liabilities, at 31 December 2022 was $2,339 m with access to committed facilities of $3.7 bn with an average maturity of 5.1 years. At the date of approving these financial statements, the funding position of the Group has remained unchanged and the cash position is not materially different. The Group has $105 m of private placement debt due for repayment in 2023. $1,160 m of private placement debt is subject to financial covenants. The principal covenant on the private placement debt is a leverage ratio of < 3.5 which is measured on a rolling 12-month basis at half year and year end. There are no financial covenants in any of the Group’s other facilities. The Directors have considered various scenarios in assessing the impact of the economic environment on future financial performance and cash flows, with the key judgement applied being the speed and sustainability of the return to a normal volume of elective procedures in key markets, including the impact of a significant global economic recession, leading to lower healthcare spending across both public and private systems. Throughout these scenarios, which include a severe but plausible outcome, the Group continues to have headroom on its borrowing facilities and financial covenants. The Directors have a reasonable expectation that the Company and the Group are well placed to manage their business risks, have sufficient funds to continue to meet their liabilities as they fall due and to continue in operational existence for a period of at least 12 months from the date of the approval of these financial statements. The financial statements have therefore been prepared on a going concern basis. Accordingly, the Directors continue to adopt the going concern basis (in accordance with the guidance ‘Guidance on Risk Management, Internal Control and Related Financial and Business Reporting’ issued by the FRC) in preparing these financial statements. New accounting standards effective 2022 A number of new amendments to standards are effective from 1 January 2022 but they do not have a material effect on the Group’s financial statements. Accounting standards issued but not yet effective A number of new standards and amendments to standards are effective for annual periods beginning after 1 January 2022 and earlier application is permitted; however, the Group has not early adopted them in preparing these financial statements. ​ 1.1 Consolidation The Group accounts include the accounts of Smith & Nephew plc and its subsidiaries for the periods during which they were members of the Group. Subsidiaries are entities controlled by the Group. 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 over the entity. Subsidiaries are consolidated in the Group accounts from the date that the Group obtains control and continue to be consolidated until the date that such control ceases. Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated on consolidation. All subsidiaries have year ends which are coterminous with the Group’s, with the exception of jurisdictions whereby a different year end is required by local legislation. When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary and any related components of equity. Any resulting gain or loss is recognised in profit or loss. Any retained interest in the former subsidiary is measured at fair value. 1.2 Critical judgements and estimates The Group prepares its consolidated financial statements in accordance with IFRS as issued by the IASB and IFRS adopted in the UK, the application of which often requires judgements and estimates to be made by management when formulating the Group’s financial position and results. Under IFRS, the Directors are required to adopt those accounting policies most appropriate to the Group’s circumstances for the purpose of presenting fairly the Group’s financial position, financial performance and cash flows. The Group’s accounting policies do not include any critical judgements. The Group’s accounting policies are set out in Notes 1–23 of the Notes to the Group accounts. Of those, the policies which require the most use of management’s estimation are outlined below. The critical estimates are consistent with 31 December 2021. Management have considered the impact of the uncertainties around the current challenging economic environment below. Valuation of inventories A feature of the Orthopaedics franchise (which accounts for approximately 60% of the Group’s total inventory and approximately 80% of the total provision for excess and obsolete inventory) is the high level of product inventory required, some of which is located at customer premises and is available for customers’ immediate use. Complete sets of products, including large and small sizes, have to be made available in this way. These sizes are used less frequently than standard sizes and towards the end of the product life cycle are inevitably in excess of requirements. Adjustments to carrying value are therefore required to be made to orthopaedic inventory to anticipate this situation. These adjustments are calculated in accordance with a formula based on levels of inventory compared with historical usage. This formula is applied on an individual product line basis and typically is first applied when a product group has been on the market for two years. This method of calculation is considered appropriate based on experience, but it does require management estimate in respect of customer demand, effectiveness of inventory deployment, length of product lives and phase-out of old products. See Note 12 for further details. Current economic environment impact assessment: In assessing the increase in provision for excess and obsolete inventory, management have considered the impact of higher input cost inflation on increased inventory levels. Management have not changed their accounting policy since 31 December 2021, nor is a change in the key assumptions underlying the methodology expected in the next 12 months. Primarily due to inventory growth, in the next ​ ​ Group financial statements continued Notes to the Group accounts continued 1 Basis of preparation continued Liability provisioning The recognition of provisions for legal disputes related to metal-on-metal cases is subject to a significant degree of estimation. Provision is made for loss contingencies when it is considered probable that an adverse outcome will occur and the amount of the loss can be reasonably estimated. In making its estimates, management takes into account the advice of internal and external legal counsel. Provisions are reviewed regularly and amounts updated where necessary to reflect developments in the disputes. The value of provisions may require future adjustment if experience such as number, nature or value of claims or settlements changes. Such a change may be material in 2023 or thereafter. The ultimate liability may differ from the amount provided depending on the outcome of court proceedings and settlement negotiations or if investigations bring to light new facts. See Note 17 for further details. Current economic environment impact assessment: Management considered whether there had been any changes to the number and value of claims due to current challenging economic environment and to date have not identified any significant changes in trends. If the experience changes in the future, the value of provisions may require adjustment. Impairment In carrying out impairment reviews of intangible assets and goodwill, a number of significant assumptions have to be made when preparing cash flow projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the future profitability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals. If actual results should differ or changes in expectations arise, impairment charges may be required which would adversely impact operating results. There has been a decrease in the level of headroom in relation to goodwill impairment testing for the Orthopaedics CGU which is sensitive to a reasonably possible change in assumptions. For other intangible assets and goodwill CGUs, this critical estimate is not considered to have a significant risk of material adjustment in 2023 or thereafter based on sensitivity analyses undertaken (as outlined below). See Notes 8 and 9 for further details on impairment reviews. Current economic environment impact assessment: Management have assessed the non-current assets held by the Group at 31 December 2022 to identify any indicators of impairment as a result of current economic environment. Where an impairment indicator has arisen, impairment reviews have been undertaken by comparing the expected recoverable value of the asset to the carrying value of the asset. The recoverable amounts are based on cash flow projections using the Group’s base case scenario in its going concern models, which was reviewed and approved by the Board. Impairments of $39m, related to immaterial product intangible assets, were identified as a result of the impairment reviews undertaken. 1.3 Climate change considerations The impact of climate change has been considered as part of the assessment of estimates and judgements in preparing the Group accounts. The climate change scenario analyses undertaken this year in line with TCFD recommendations did not identify any material financial impact. The following considerations were made in respect of the financial statements: - The impact of climate change on the going concern assessment and the viability of the Group over the next three years. - The impact of climate change on the cash flow forecasts used in the impairment assessments of non-current assets including goodwill. - The impact of climate change on the carrying value and useful economic lives of property, plant and equipment. 1.4 Foreign currencies Functional and presentation currency The Group accounts are presented in US Dollars. The Company’s functional currency is US Dollars. Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group companies at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency at the exchange rate as at the reporting date. Non-monetary items are not retranslated. Foreign operations Balance sheet items of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into US Dollars on consolidation at the exchange rates at the reporting date. Income statement items and the cash flows of foreign operations are translated at average rates as an approximation to actual transaction rates, with actual transaction rates used for large one-off transactions. Foreign currency differences are recognised in ‘Other comprehensive income’ and accumulated in ‘Other reserves’ within equity. These include: exchange differences on the translation at closing rates of exchange of non-US Dollar opening net assets; the differences arising between the translation of profits into US Dollars at actual (or average, as an approximation) and closing exchange rates; to the extent that the hedging relationship is effective, the difference on translation of foreign currency borrowings or swaps that are used to finance or hedge the Group’s net investments in foreign operations; and the movement in the fair value of forward foreign exchange contracts used to hedge forecast foreign exchange cash flows. The exchange rates used for the translation of currencies into US Dollars that have the most significant impact on the Group results were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 Average rates ​ ​ ​ ​ Sterling ​ 1.23 ​ 1.38 ​ 1.28 ​ Euro ​ 1.05 ​ 1.18 ​ 1.14 ​ Swiss Franc ​ 1.05 ​ 1.09 ​ 1.07 ​ Year end rates ​ ​ ​ ​ ​ ​ ​ Sterling ​ 1.21 ​ 1.35 ​ 1.37 ​ Euro ​ 1.07 ​ 1.13 ​ 1.23 ​ Swiss Franc ​ 1.08 ​ 1.10 ​ 1.14 ​

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2022
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION	2 Business segment information The Group’s operating structure is organised around three global franchises and the chief operating decision maker monitors performance, makes operating decisions and allocates resources on a global franchise basis. Accordingly, the Group has concluded that there are three reportable segments. Franchise presidents have responsibility for upstream marketing, driving product portfolio and technology acquisition decisions, and full commercial responsibility for their franchises in the US. Regional presidents in EMEA and APAC are responsible for the implementation of the global franchise strategy in their respective regions. The Executive Committee (‘ExCo’) comprises the Chief Financial Officer (‘CFO’), the franchise presidents, the regional presidents and certain heads of function, and is chaired by the Chief Executive Officer (‘CEO’). ExCo is the body through which the CEO uses the authority delegated to him by the Board of Directors to manage the operations and performance of the Group. All significant operating decisions regarding the allocation and prioritisation of the Group’s resources and assessment of the Group’s performance are made by ExCo, and while the members have individual responsibility for the implementation of decisions within their respective areas, it is at the ExCo level that these decisions are made. Accordingly, ExCo is considered to be the Group’s chief operating decision maker as defined by IFRS 8 Operating Segments In making decisions about the prioritisation and allocation of the Group’s resources, ExCo reviews financial information for the three franchises (Orthopaedics, Sports Medicine & ENT and Advanced Wound Management) and determines the best allocation of resources to the franchises. This information is prepared substantially on the same basis as the Group’s IFRS financial statements aside from the adjustments described in Note 2.2. Financial information for corporate costs is presented on a Group-wide basis. The ExCo is not provided with total assets and liabilities by segment, and therefore these measures are not included in the disclosures below. The results of the segments are shown below. ​ Group financial statements continued Notes to the Group accounts continued 2 Business segment information continued 2.1 Revenue by business segment and geography Accounting policy Revenue is recognised as the performance obligations to deliver products or services are satisfied and is recorded based on the amount of consideration expected to be received in exchange for satisfying the performance obligations. Revenue is recognised primarily when control is transferred to the customer, which is generally when the goods are shipped or delivered in accordance with the contract terms, with some transfer of services taking place over time. Substantially all performance obligations are fulfilled within one year. There is no significant revenue associated with the provision of services. Payment terms to our customers are based on commercially reasonable terms for the respective markets while also considering a customer’s credit rating. Appropriate provisions for returns, trade discounts and rebates are deducted from revenue. Rebates primarily comprise chargebacks and other discounts granted to certain customers. Chargebacks are discounts that occur when a third-party purchases product from a wholesaler at its agreed price plus a mark-up. The wholesaler in turn charges the Group for the difference between the price initially paid by the wholesaler and the agreed price. The provision for chargebacks is based on expected sell-through levels by the Group’s wholesalers to such customers, as well as estimated wholesaler inventory levels. Orthopaedics and Sports Medicine & ENT (Ear, Nose & Throat) Orthopaedics and Sports Medicine & ENT consists of the following businesses: Knee Implants, Hip Implants, Other Reconstruction, Trauma & Extremities, Sports Medicine Joint Repair, Arthroscopic Enabling Technologies and ENT. Sales of inventory located at customer premises and available for customers’ immediate use are recognised when notification is received that the product has been implanted or used. Substantially all other revenue is recognised when control is transferred to the customer, which is generally when the goods are shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount of consideration expected to be received in exchange for transferring the products or services. In general our business in Established Markets is direct to hospitals and ambulatory surgery centers whereas in the Emerging Markets we generally sell through distributors. Advanced Wound Management Advanced Wound Management consists of the following businesses: Advanced Wound Care, Advanced Wound Bioactives and Advanced Wound Devices. Substantially all revenue is recognised when control is transferred to the customer, which is generally when the goods are shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount of consideration expected to be received in exchange for transferring the products or services. Appropriate provisions for returns, trade discounts and rebates are deducted from revenue, as explained above. The majority of our Advanced Wound Management business, and in particular products used in community and homecare facilities, is through wholesalers and distributors. When control is transferred to a wholesaler or distributor, revenue is recognised accordingly. The proportion of sales direct to hospitals is higher in our Advanced Wound Devices business in Established Markets. ​ Segment revenue reconciles to statutory revenues from continuing operations as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million ​ Reportable segment revenue ​ ​ ​ ​ Orthopaedics ​ 2,113 ​ 2,156 ​ 1,917 ​ Sports Medicine & ENT ​ 1,590 ​ 1,560 ​ 1,333 ​ Advanced Wound Management ​ 1,512 ​ 1,496 ​ 1,310 ​ Revenue from external customers ​ 5,215 ​ 5,212 ​ 4,560 ​ ​ ​ Disaggregation of revenue: The following table shows the disaggregation of Group revenue by product franchise: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Revenue by product from continuing operations ​ ​ ​ ​ Knee Implants ​ 899 ​ 876 ​ 822 ​ Hip Implants ​ 584 ​ 612 ​ 567 ​ Other Reconstruction ​ 87 ​ 92 ​ 68 ​ Trauma & Extremities ​ 543 ​ 576 ​ 460 ​ Orthopaedics ​ 2,113 ​ 2,156 ​ 1,917 ​ Sports Medicine Joint Repair ​ 870 ​ 839 ​ 710 ​ Arthroscopic Enabling Technologies ​ 567 ​ 590 ​ 517 ​ ENT (Ear, Nose and Throat) ​ 153 ​ 131 ​ 106 ​ Sports Medicine & ENT ​ 1,590 ​ 1,560 ​ 1,333 ​ Advanced Wound Care ​ 712 ​ 731 ​ 647 ​ Advanced Wound Bioactives ​ 520 ​ 496 ​ 431 ​ Advanced Wound Devices ​ 280 ​ 269 ​ 232 ​ Advanced Wound Management ​ 1,512 ​ 1,496 ​ 1,310 ​ Consolidated revenue from continuing operations ​ 5,215 ​ 5,212 ​ 4,560 ​ ​ The following table shows the disaggregation of Group revenue by geographic market and product category. The disaggregation of revenue into the two product categories below reflects that in general the products in the Advanced Wound Management franchises are sold to wholesalers and intermediaries, while products in the other franchises are sold directly to hospitals, ambulatory surgery centers and distributors. The further disaggregation of revenue by Established Markets and Emerging Markets reflects that in general our products are sold through distributors and intermediaries in the Emerging Markets while in the Established Markets, with the exception of the Advanced Wound Care and Bioactives product franchises, products are in general sold direct to hospitals and ambulatory surgery centers. The disaggregation by Established Markets and Emerging Markets also reflects their differing economic factors including volatility in growth and outlook. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ 2020 ​ ​ Established Markets 1 ​ Emerging Markets ​ Total ​ Established Markets 1 ​ Emerging Markets ​ Total ​ Established Markets 1 ​ Emerging Markets ​ Total ​ $ million $ million $ million $ million $ million $ million $ million $ million $ million Orthopaedics, Sports Medicine & ENT ​ 2,949 ​ 754 ​ 3,703 ​ 2,969 ​ 747 ​ 3,716 ​ 2,619 ​ 631 ​ 3,250 Advanced Wound Management ​ 1,319 ​ 193 ​ 1,512 ​ 1,327 ​ 169 ​ 1,496 ​ 1,170 ​ 140 ​ 1,310 Total ​ 4,268 ​ 947 ​ 5,215 ​ 4,296 ​ 916 ​ 5,212 ​ 3,789 ​ 771 ​ 4,560 ​ 1 Established Markets comprises the US, Australia, Canada, Europe, Japan and New Zealand . ​ US revenue for 2022 was $2,764m (2021: $2,658m, 2020: $2,339m), China revenue for 2022 was $319m (2021: $352m, 2020: $318m) and UK revenue for 2022 was $186m (2021: $189m, 2020: $166m). ​ ​ Group financial statements continued Notes to the Group accounts continued 2 Business segment information continued Contract assets and liabilities The nature of our products and services do not generally give rise to contract assets as we do not typically incur costs to fulfil a contract before a product or service is provided to the customer. The Group generally satisfies performance obligations within one year from the contract inception date. There was no material revenue recognised in the current reporting period that related to carried-forward contract liabilities (deferred income) or performance obligations satisfied in the previous year. There is no material revenue that is likely to arise in future periods from unsatisfied performance obligations at the balance sheet date. Therefore, there are no associated significant accrued income and deferred income balances at 31 December 2022. As of 31 December 2022, contract assets principally comprise trade receivables and contract liabilities principally comprise rebates (as described in the accounting policy above). The accrual for rebates at 31 December 2022 was $103m (2021: $97m) with $369m being recognised in revenue in 2022. Major customers No single customer generates revenue greater than 10% of the consolidated revenue. 2.2 Trading and operating profit by business segment Trading profit is a trend measure which presents the profitability of the Group excluding the impact of specific transactions that management considers affect the Group’s short-term profitability and the comparability of results. The Group presents this measure to assist investors in their understanding of trends. The Group has identified the following items, where material, as those to be excluded from operating profit when arriving at trading profit: acquisition and disposal-related items; significant restructuring programmes; amortisation and impairment of acquisition intangibles; gains and losses arising from legal disputes; and other significant items. Further detail is provided in Notes 2.3, 2.4, 2.5 and 2.6 . Segment trading profit is reconciled to the statutory measure below: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ $ million $ million $ million Segment profit ​ ​ ​ ​ ​ ​ Orthopaedics ​ 383 ​ 367 ​ 389 Sports Medicine & ENT ​ 472 ​ 459 ​ 306 Advanced Wound Management ​ 436 ​ 474 ​ 316 Segment trading profit ​ 1,291 ​ 1,300 ​ 1,011 Corporate costs ​ (390) ​ (364) ​ (328) Group trading profit ​ 901 ​ 936 ​ 683 Acquisition and disposal-related items ​ (4) ​ (7) ​ (4) Restructuring and rationalisation expenses ​ (167) ​ (113) ​ (124) Amortisation and impairment of acquisition intangibles ​ (205) ​ (172) ​ (171) Legal and other ​ (75) ​ (51) ​ (89) Group operating profit ​ 450 ​ 593 ​ 295 ​ 2.3 Acquisition and disposal related items For the year to 31 December 2022, costs primarily relate to the acquisition of Engage and prior year acquisitions, partially offset by credits relating to remeasurement of deferred and contingent consideration for prior year acquisitions. For the year to 31 December 2021 costs primarily relate to the acquisition of Extremity Orthopaedics and prior year acquisitions, partially offset by credits relating to remeasurement of deferred and contingent consideration for prior year acquisitions. For the year to 31 December 2020 costs primarily relate to the acquisition of Tusker and prior year acquisitions, partially offset by credits relating to remeasurement of contingent consideration from prior year acquisitions. 2.4 Restructuring and rationalisation costs For the year ended 31 December 2022, these costs include efficiency and productivity elements of the 12-point plan. For the years ended 31 December 2022, 2021 and 2020, these costs also relate to the Operations and Commercial Excellence programme. For the years ended 31 December 2021 and 2020, the costs also include the implementation of the Accelerating Performance and Execution (APEX) programme that was announced in February 2018. ​ 2.5 Amortisation and impairment of acquisition intangibles For the years ended 31 December 2022, 2021 and 2020, these costs relate to the amortisation and impairment of intangible assets acquired in material business combinations . 2.6 Legal and other For the year ended 31 December 2022, charges primarily relate to legal expenses for ongoing metal-on-metal hip claims and an increase of $19 m in the provision that reflects the present value of the estimated costs to resolve all other known and anticipated metal-on-metal hip claims. For the year ended 31 December 2021 charges primarily relate to legal expenses for ongoing metal-on-metal hip claims. These charges in the year to 31 December 2021 were partially offset by a credit of $35m relating to insurance recoveries for ongoing metal-on-metal hip claims. For the year ended 31 December 2020 charges primarily relate to legal expenses for ongoing metal-on-metal hip claims and an increase of $17m in the provision that reflects the present value of the estimated costs to resolve all other known and anticipated metal-on-metal hip claims. The years ended 31 December 2022, 2021 and 2020 also include costs for implementing the requirements of the EU Medical Device Regulation which came into effect in May 2021 with a transition period to May 2024. 2.7 Non-current assets by geography The following table presents the non-current assets of the Group based on their ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million United Kingdom ​ 487 ​ 541 ​ 403 ​ United States of America ​ 3,918 ​ 4,125 ​ 4,093 ​ Other ​ 1,387 ​ 1,447 ​ 1,517 ​ Total non-current assets of the consolidated Group 1 ​ 5,792 ​ 6,113 ​ 6,013 ​ ​ 1 Non-current assets exclude retirement benefit assets and deferred tax assets .

OPERATING PROFIT

OPERATING PROFIT	12 Months Ended
	Dec. 31, 2022
GROUP INCOME STATEMENT
OPERATING PROFIT	3 Operating profit Accounting policy Research and development Research expenditure is expensed as incurred. Internal development expenditure is only capitalised if the recognition criteria in IAS 38 Intangible Assets have been satisfied. The Group considers that the regulatory, technical and market uncertainties inherent in the development of new products mean that in most cases development costs should not be capitalised as intangible assets until products receive approval from the appropriate regulatory body. Payments to third parties for research and development projects are accounted for based on the substance of the arrangement. If the arrangement represents outsourced research and development activities the payments are generally expensed except in limited circumstances where the respective development expenditure would be capitalised under the principles established in IAS 38. By contrast, the payments are capitalised if the arrangement represents consideration for the acquisition of intellectual property developed at the risk of the third party. Capitalised development expenditures are amortised on a straight-line basis over their useful economic lives from product launch. Advertising costs Advertising costs are expensed as incurred. ​ ​ Group financial statements continued Notes to the Group accounts continued 3 Operating profit continued ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Revenue ​ 5,215 ​ 5,212 ​ 4,560 ​ Cost of goods sold 1 ​ (1,540) ​ (1,543) ​ (1,396) ​ Gross profit ​ 3,675 ​ 3,669 ​ 3,164 ​ Research and development expenses 2 ​ (345) ​ (356) ​ (307) ​ Selling, general and administrative expenses: ​ ​ ​ ​ Marketing, selling and distribution expenses ​ (2,066) ​ (2,013) ​ (1,773) ​ Administrative expenses 3,4,5,6 ​ (814) ​ (707) ​ (789) ​ ​ ​ (2,880) ​ (2,720) ​ (2,562) ​ Operating profit ​ 450 ​ 593 ​ 295 ​ 1 2022 includes $4 m charge relating to legal and other items, $20 m charge relating to restructuring and rationalisation expenses and $5 m charges relating to acquisition and disposal-related items (2021: $7 m charge relating to legal and other items and $29 m charge relating to restructuring and rationalisation expenses , 2020: $6 m charge relating to legal and other items and $15 m charge relating to restructuring and rationalisation expenses). 2 2022 includes $35 m charge relating to legal and other items (2021: $39 m, 2020: $28 m), $5 m charge relating to acquisition and disposal related items (2021: $7 m, 2020: $nil ) and $5 m charge relating to restructuring and rationalisation expenses (2021: $nil , 2020: $nil ). 3 2022 includes $56 m of amortisation of software and other intangible assets (2021: $65 m, 2020: $63 m). 4 2022 includes $205 m of amortisation and impairment of acquisition intangibles and $142 m of restructuring and rationalisation expenses (2021: $172 m of amortisation and impairment of acquisition intangibles and $84 m of restructuring and rationalisation expenses, 2020: $171 m of amortisation and impairment of acquisition intangibles and $109 m of restructuring and rationalisation expenses). 5 2022 includes $36 m charge relating to legal and other items (2021: $5 m charge, 2020: $55 m charge). 6 2022 includes $6 m credit relating to acquisition and disposal-related items (2021: $nil , 2020: $4 m charge). Note that items detailed in 1, 2, 4, 5 and 6 are excluded from the calculation of trading profit, the segments’ profit measure. Operating profit is stated after charging/(crediting) the following items: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Other operating income ​ (7) ​ (35) ​ – ​ Amortisation of intangible assets ​ 229 ​ 237 ​ 234 ​ Impairment of intangible assets ​ 39 ​ 2 ​ 12 ​ Impairment of property, plant and equipment ​ 30 ​ 1 ​ 5 ​ Fair value remeasurement of trade investments ​ – ​ 1 ​ – ​ Depreciation of property, plant and equipment 1 ​ 319 ​ 326 ​ 311 ​ Loss on disposal of property, plant and equipment and intangible assets ​ 11 ​ 14 ​ 34 ​ Advertising costs ​ 92 ​ 81 ​ 66 ​ 1 The 2022 depreciation charge includes $56 m (2021: $56 m, 2020: $51 m) related to right-of-use assets. In 2022, other operating income comprises insurance recoveries for ongoing metal-on-metal hip claims of ​ 3.1 Staff costs during the year amounted to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ Notes $ million $ million $ million Wages and salaries ​ ​ 1,565 ​ 1,562 ​ 1,392 ​ Social security costs ​ ​ 215 ​ 223 ​ 190 ​ Pension costs (including retirement healthcare) ​ 18 ​ 88 ​ 93 ​ 78 ​ Share-based payments ​ 22 ​ 40 ​ 41 ​ 26 ​ ​ ​ ​ 1,908 ​ 1,919 ​ 1,686 ​ ​ During the year ended 31 December 2022, the average number of employees was 19,094 (2021: 18,976, 2020: 18,581). 3.2 Audit Fees – information about the nature and cost of services provided by the auditor ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Audit services: ​ ​ ​ ​ Group accounts ​ 7.2 ​ 5.5 ​ 5.0 ​ Local statutory audit pursuant to legislation ​ 2.2 ​ 2.0 ​ 2.0 ​ Other services: ​ ​ ​ ​ ​ ​ ​ Audit-related services ​ 0.4 ​ 0.1 ​ 0.4 ​ Total auditor’s remuneration ​ 9.8 ​ 7.6 ​ 7.4 ​ Arising: ​ ​ ​ ​ In the UK ​ 5.3 ​ 3.5 ​ 3.6 ​ Outside the UK ​ 4.5 ​ 4.1 ​ 3.8 ​ ​ ​ 9.8 ​ 7.6 ​ 7.4 ​ ​

INTEREST AND OTHER FINANCE COST

INTEREST AND OTHER FINANCE COSTS	12 Months Ended
	Dec. 31, 2022
INTEREST AND OTHER FINANCE COSTS
INTEREST AND OTHER FINANCE COSTS	4 4.1 Interest income/(expense) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Interest income ​ 14 ​ 6 ​ 6 ​ Interest expense: ​ ​ ​ ​ ​ ​ Bank borrowings ​ (3) ​ (3) ​ (4) ​ Private placement notes ​ (39) ​ (46) ​ (42) ​ Lease liabilities ​ (6) ​ (7) ​ (6) ​ Corporate bond ​ (27) ​ (21) ​ (5) ​ Other ​ (5) ​ (3) ​ (5) ​ ​ ​ (80) ​ (80) ​ (62) ​ Net interest expense ​ (66) ​ (74) ​ (56) ​ ​ 4.2 Other finance costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ Notes $ million $ million $ million Retirement benefit net interest expense ​ 18 ​ (2) ​ (3) ​ (2) ​ Unwinding of discount ​ ​ (9) ​ (10) ​ (11) ​ Other ​ ​ 3 ​ (4) ​ 6 ​ Other finance costs ​ ​ (8) ​ (17) ​ (7) ​ ​

TAXATION

TAXATION	12 Months Ended
	Dec. 31, 2022
TAXATION
TAXATION	​ ​ Group financial statements continued Notes to the Group accounts continued 5 Taxation Accounting policy The charge for current taxation is based on the results for the year as adjusted for items which are non-assessable or non-deductible. It is calculated using tax rates that have been enacted or substantively enacted as at the balance sheet date. The Group operates in numerous tax jurisdictions around the world. At any given time, the Group typically is involved in tax audits and other disputes and will have other tax returns potentially subject to audit. Significant issues may take several years to resolve. In estimating the probability and amount of any tax charge, management takes into account the views of internal and external advisers and updates the amount of tax provision where considered appropriate. The ultimate tax liability may differ from the amount provided depending on factors including interpretations of tax law and settlement negotiations. Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised: for temporary differences related to investments in subsidiaries and associates where the Group is able to control the timing of the reversal of the temporary difference and it is probable that this will not reverse in the foreseeable future; on the initial recognition of non-deductible goodwill; and on the initial recognition of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, does not affect the accounting or taxable profit. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date taking into account the recoverability of the deferred tax assets, future profitability and any restrictions on use. The Group considers available evidence to assess future profitability over a reasonably foreseeable time period, depending on the circumstances and typically a minimum of five years. Any material unrecognised deferred tax assets are disclosed in Note 5.2. Deferred tax is measured on an undiscounted basis, and at the tax rates that have been enacted or substantively enacted as at the balance sheet date that are expected to apply in the periods in which the asset or liability is settled. It is recognised in the income statement except when it relates to items credited or charged directly to other comprehensive income or equity, in which case the deferred tax is also recognised within other comprehensive income or equity respectively. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority, the Group intends to settle its current tax assets and liabilities on a net basis, offset is permissible according to the relevant jurisdiction’s tax laws and that authority permits the Group to make a single net payment. ​ 5.1 Taxation charge attributable to the Group ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Current taxation: ​ ​ ​ ​ UK corporation tax ​ 17 ​ 14 ​ 16 ​ Overseas tax ​ 104 ​ 126 ​ 40 ​ Current income tax charge ​ 121 ​ 140 ​ 56 ​ Adjustments in respect of prior periods ​ (10) ​ (33) ​ (191) ​ Total current taxation ​ 111 ​ 107 ​ (135) ​ Deferred taxation: ​ ​ ​ ​ Origination and reversal of temporary differences ​ (77) ​ (35) ​ (49) ​ Changes in tax rates ​ (5) ​ (14) ​ (12) ​ Adjustments to estimated amounts arising in prior periods ​ (17) ​ 4 ​ (6) ​ Total deferred taxation ​ (99) ​ (45) ​ (67) ​ Total taxation as per the income statement ​ 12 ​ 62 ​ (202) ​ Taxation in other comprehensive income ​ 5 ​ 27 ​ – ​ Taxation in equity ​ 3 ​ 1 ​ 4 ​ Taxation charge/(credit) attributable to the Group ​ 20 ​ 90 ​ (198) ​ ​ ​ The 2022 and 2021 net prior period adjustments of $27m and $29m respectively relate principally to provision releases following the resolution of tax audits and other uncertain tax matters, and other one-off items. The 2020 net prior period adjustment of $197m is explained predominantly by a $100m prior year current tax credit due to the successful outcome of UK tax litigation, releases of provisions following the conclusion of tax audits, and loss carry-backs to prior periods. The total taxation charge of $12 m as per the income statement includes a $127 m net credit (2021: $85 m net credit, 2020: $274 m net credit) as a consequence of restructuring and rationalisation-related costs, acquisition and disposal-related items, amortisation and impairment of acquisition intangibles, legal and other items. The 2020 net credit was significantly higher predominantly as a result of refunds and future recoverable amounts recognised following the successful outcome of the UK tax litigation disclosed in the 2020 Annual Report ( $142 m), and also a one-off carry-back of losses attributable to non-trading costs to prior periods taxable at a higher rate. Factors affecting future tax charges The Group operates in numerous tax jurisdictions around the world and is subject to factors that may affect future tax charges including transfer pricing, tax rate changes, tax legislation changes, tax authority interpretation, expiry of statute of limitations, tax litigation, and resolution of tax audits and disputes. At any given time, the Group has unagreed years outstanding in various countries and is involved in tax audits and disputes, some of which may take several years to resolve. Provisions are based on best estimates and management’s judgements concerning the likely ultimate outcome of any audit or dispute. Management considers the specific circumstances of each tax position and takes external advice, where appropriate, to assess the range of potential outcomes and estimate additional tax that may be due. Total tax liabilities include $150m (2021: $152m) in relation to uncertain tax positions which relate to multiple issues across the jurisdictions in which the Group operates. Other payables include $10m (2021: $14m) of interest on these provisions. There are $37m (2021: $106m) of tax receivables relating to payments on account and repayments due in a number of jurisdictions, principally relating to the US. The Group believes that it has made adequate provision in respect of additional tax liabilities that may arise from unagreed years, tax audits and disputes, the majority of which relate to transfer pricing matters, as would be expected for a Group operating internationally. However, the actual liability for any particular issue may be higher or lower than the amount provided, resulting in a negative or positive effect on the tax charge in any given year. A reduction in the tax charge may also arise for other reasons such as an expiry of the relevant statute of limitations. Depending on the final outcome of tax audits which are currently in progress, statute of limitations expiry, and other factors, an impact on the tax charge could arise. Whilst such an impact can vary from year to year, these releases depend on factors which are uncertain, both as to outcome and timing. However, at the current time, we believe the possibility of a material impact on the tax charge for 2023 is unlikely. OECD BEPS 2.0 - Pillar Two The OECD Pillar Two Globe Rules introduce a global minimum corporate tax rate of 15% applicable to multinational enterprise (MNE) groups with global revenue over €750m. All participating OECD members are required to incorporate these rules into national legislation. On 2 February 2023, the OECD published its Agreed Administrative Guidance for the Pillar Two Globe Rules providing greater detail on the application of the rules. The Group will be subject to the Pillar Two Model Rules which is likely to result in an increase in our Group tax rate from 2024 onwards. The Group does not meet the threshold for application of the Pillar One transfer pricing rules. ​ Group financial statements continued Notes to the Group accounts continued 5 Taxation continued The UK standard rate of corporation tax for 2022 is 19.0% (2021: 19.0%, 2020: 19.0%). Overseas taxation is calculated at the rates prevailing in the respective jurisdictions. The table below reconciles the expected tax charge at the UK statutory rate with the actual tax charge. The UK Government announced on 14 October 2022 that the UK corporation tax rate will increase to 25% from 1 April 2023 as already enacted in the UK Finance Act 2021. The impact of this rate change is reflected in the calculation of the taxation charge, and in the tax reconciliation below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Profit before taxation ​ 235 ​ 586 ​ 246 ​ Expected taxation at UK statutory rate of 19.0% (2021: 19.0%, 2020: 19%) ​ 45 ​ 111 ​ 47 ​ Differences in overseas taxation rates ​ (19) ​ (17) ​ (37) ​ Innovation reliefs ​ (10) ​ (12) ​ (9) ​ Tax losses and other deferred tax assets not recognised ​ – ​ 7 ​ 15 ​ Recognition of previously unrecognised tax losses ​ (4) ​ (2) ​ (45) ​ Expenses not deductible for tax purposes 1 ​ 31 ​ 22 ​ 29 ​ Change in tax rates 2 ​ (5) ​ (14) ​ (12) ​ Withholding tax on unremitted earnings ​ 1 ​ (4) ​ 7 ​ Adjustments in respect of prior years 3 ​ (27) ​ (29) ​ (197) ​ Total taxation charge/(credit) as per the income statement ​ 12 ​ 62 ​ (202) ​ ​ 1 In 2022, this includes a $7 m impact of non-tax deductible impairment on UK owned investments (2021: $17 m impact of non-taxable accounting gains recognised on UK-owned investments). 2 In 2022, the tax rate changes primarily relate to an increase in deferred tax resulting from the increase in the UK corporation tax rate due to come into effect on 1 April 2023. In 2021, the net impact to deferred tax assets and liabilities was $6 m which comprises $14 m in the income statement and $8 m in other comprehensive income as shown in the table below. 3 The adjustments in respect of prior years are explained on page 179. ​ 5.2 Movements in the main components of deferred tax assets and liabilities were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory, ​ ​ ​ ​ ​ Accelerated ​ ​ ​ Retirement ​ Losses ​ provisions ​ ​ ​ ​ ​ tax ​ ​ ​ benefit ​ and other ​ and other ​ ​ ​ ​ ​ depreciation ​ Intangibles ​ obligations ​ tax attributes ​ differences ​ Total ​ ​ $ million $ million $ million $ million $ million $ million At 31 December 2020 ​ (61) ​ (209) ​ 5 ​ 123 ​ 203 ​ 61 ​ Exchange adjustment ​ – ​ – ​ (1) ​ – ​ (7) ​ (8) ​ Movement in income statement – current year ​ 16 ​ 24 ​ 1 ​ 4 ​ (10) ​ 35 ​ Movement in income statement – prior years ​ (2) ​ 10 ​ – ​ (10) ​ (2) ​ (4) ​ Movement in other comprehensive income ​ – ​ – ​ (15) ​ – ​ (5) ​ (20) ​ Movement in equity ​ – ​ – ​ – ​ – ​ (1) ​ (1) ​ Changes in tax rate ​ – ​ (2) ​ (8) ​ 10 ​ 6 ​ 6 ​ Acquisitions ​ 2 ​ (22) ​ – ​ 3 ​ 5 ​ (12) ​ At 31 December 2021 ​ (45) ​ (199) ​ (18) ​ 130 ​ 189 ​ 57 ​ Exchange adjustment ​ – ​ 1 ​ 2 ​ – ​ (10) ​ (7) ​ Movement in income statement – current year ​ (28) ​ 15 ​ 1 ​ 1 ​ 88 ​ 77 ​ Movement in income statement – prior years ​ – ​ 4 ​ 1 ​ 9 ​ 3 ​ 17 ​ Movement in other comprehensive income ​ – ​ – ​ (7) ​ – ​ 2 ​ (5) ​ Movement in equity ​ – ​ – ​ – ​ – ​ (3) ​ (3) ​ Changes in tax rate ​ (2) ​ (2) ​ – ​ – ​ 9 ​ 5 ​ At 31 December 2022 ​ (75) ​ (181) ​ (21) ​ 140 ​ 278 ​ 141 ​ ​ Represented by: ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ $ million $ million Deferred tax assets ​ 177 ​ 201 ​ Deferred tax liabilities ​ (36) ​ (144) ​ Net position at 31 December ​ 141 ​ 57 ​ ​ ​ The deferred tax asset of $278 m (2021: $189 m) relating to inventory, provisions and other differences comprises deferred tax relating to inventory of $117 m (2021: $116 m), provisions and other short-term temporary differences of $153 m (2021: $65 m) and bad debt provisions of $8 m (2021: $8 m). The Group has gross unused trading and non-trading tax losses of $839 m (2021: $841 m), gross unused research and development tax credits of $24 m (2021: $21 m) and gross unused capital losses of $97 m (2021: $108 m), available for offset against future profits. None of these amounts are due to expire within 5 years from the balance sheet date if not utilised. A deferred tax asset of $140 m (2021: $130 m) has been recognised in respect of $541 m (2021: $508 m) of the trading and non-trading tax losses and $12 m (2021: $21 m) of research and development tax credits. No deferred tax asset has been recognised on the remaining unused tax losses as it is not probable that future taxable profits will be available against which they can be utilised. Management will reassess the recoverability of deferred tax assets at each balance sheet date by taking into account all relevant and available information. The Group assesses the likelihood of these being recovered within a reasonably foreseeable timeframe, being typically a minimum of five years , taking into account the future expected profit profile and business model of each relevant company or country, and any potential legislative restrictions on use. Short-term timing differences are generally recognised ahead of losses and other tax attributes as being likely to reverse more quickly.

EARNINGS PER ORDINARY SHARE

EARNINGS PER ORDINARY SHARE	12 Months Ended
	Dec. 31, 2022
Earnings per share [abstract]
EARNINGS PER ORDINARY SHARE	6 Earnings per ordinary share Accounting policy Earnings per share Basic earnings per share is calculated by dividing the profit attributable to equity holders by the weighted average number of ordinary shares in issue during the year, excluding shares held by the Company in the Employees’ Share Trust or as treasury shares. Diluted earnings per share Diluted earnings per share is calculated by adjusting the basic earnings per share for the effect of conversion to ordinary shares associated with dilutive potential ordinary shares, which comprise share options and awards granted to employees. Adjusted earnings per share Adjusted earnings per share (or adjusted basic earnings per share) is a trend measure which presents the long-term profitability of the Group excluding the impact of specific transactions that management considers affects the Group’s short-term profitability. The Group presents this measure to assist investors in their understanding of trends. Adjusted attributable profit is the numerator used for this measure. The Group has identified the following items as those to be excluded when arriving at adjusted attributable profit: acquisition and disposal-related items including amortisation and impairment of acquisition intangible assets; significant restructuring programmes; significant gains and losses arising from legal disputes and other significant items (including UK tax litigation) and taxation thereon. Adjusted diluted earnings per share is calculated by adjusting the adjusted basic earnings per share for the effect of conversion to ordinary shares associated with dilutive potential ordinary shares, which comprise share options and awards granted to employees. ​ ​ Group financial statements continued Notes to the Group accounts continued 6 Earnings per ordinary share continued The calculations of the basic, diluted and adjusted earnings per ordinary share are based on the following attributable profit and numbers of shares: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ ​ ​ $ million $ million $ million Earnings ​ ​ ​ ​ ​ ​ ​ ​ ​ Attributable profit for the year ​ ​ ​ 223 ​ 524 ​ 448 ​ Adjusted attributable profit (see below) ​ ​ ​ 713 ​ 710 ​ 564 ​ ​ Attributable profit is reconciled to adjusted attributable profit as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ Notes $ million $ million $ million Attributable profit for the year ​ ​ ​ 223 ​ 524 ​ 448 ​ Acquisition and disposal-related items 1 ​ ​ ​ 162 ​ (73) ​ 4 ​ Restructuring and rationalisation costs 2 ​ 3 ​ 168 ​ 113 ​ 124 ​ Amortisation and impairment of acquisition intangibles 3 ​ 9 ​ 205 ​ 172 ​ 171 ​ Legal and other 4 ​ ​ ​ 82 ​ 59 ​ 91 ​ UK tax litigation ​ 5 ​ – ​ – ​ (142) ​ Taxation on excluded items ​ 5 ​ (127) ​ (85) ​ (132) ​ Adjusted attributable profit ​ ​ ​ 713 ​ 710 ​ 564 ​ ​ 1 Acquisition and disposal related items includes a $4 m charge within operating profit (2021: $7 m charge, 2020: $4 m charge) and a $158 m charge within share of result of associates (2021: $5 m credit, 2020: $nil ) and a $nil gain on disposal of interest in associate (2021: $75 m gain, 2020: $nil ). See details in Note 11. 2 Restructuring and rationalisation costs include a 3 In 2022, amortisation and impairment of acquisition intangibles includes a $205 m charge within operating profit (2021: $172 m charge with operating profit, 2020: $171 m charge within operating profit). 4 Legal and other charge in 2022 includes $75 m (2021: $51 m charge, 2020: $89 m charge) within operating profit (refer to Note 2.6) and a $7 m charge (2021: $8 m charge, 2020: $8 m charge) within other finance costs for unwinding of the discount on the provision for known, anticipated and settled metal-on-metal hip claims globally. In 2020, other finance costs includes a credit of $6 m for interest on a tax refund relating to the UK tax litigation case (see Note 5). The numerators used for basic and diluted earnings per ordinary share are the same. The denominators used for all categories of earnings per ordinary share are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 Number of shares (millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic weighted number of shares ​ ​ ​ 872 ​ 877 ​ 875 ​ Dilutive impact of share incentive schemes outstanding ​ ​ ​ 1 ​ 1 ​ 2 ​ Diluted weighted average number of shares ​ ​ ​ 873 ​ 878 ​ 877 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per ordinary share ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ ​ 25.5 ¢ ​ 59.8¢ ​ 51.3¢ ​ Diluted ​ ​ ​ 25.5 ¢ ​ 59.7¢ ​ 51.2¢ ​ Adjusted: ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ ​ 81.8 ¢ ​ 80.9¢ ​ 64.6¢ ​ Diluted ​ ​ ​ 81.6 ¢ ​ 80.8¢ ​ 64.4¢ ​ ​

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2022
PROPERTY, PLANT AND EQUIPMENT.
PROPERTY, PLANT AND EQUIPMENT	7 Property, plant and equipment Accounting policy Property, plant and equipment Owned assets Items of property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight ‑ line method over their estimated useful lives, and is ultimately recognised in profit or loss. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Freehold land is not depreciated. The estimated useful lives of items of property, plant and equipment is 3 – 20 years and for buildings is 20 – 50 years . Assets in course of construction are not depreciated until they are available for use. Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Finance costs relating to the purchase or construction of property, plant and equipment and intangible assets that take longer than one year to complete are capitalised based on the Group weighted average borrowing costs. All other finance costs are expensed as incurred. Leased assets The assessment of whether a contract is or contains a lease takes place at the inception of the contract. The assessment involves whether the Group obtains substantially all the economic benefits from the use of that asset and whether the Group has the right to direct the use of the asset. The Group allocates the consideration in the contract to each lease and non-lease component. The non-lease component, where it is separately identifiable, is not included in the right-of-use asset. The Group leases many assets including properties, motor vehicles and office equipment. The Group availed itself of the exemptions for short-term leases and leases of low-value items for leases other than those for properties and motor vehicles. The use of these exemptions does not have a material impact. The Group recognises a right-of-use asset and a lease liability at the commencement of the lease. The right-of-use asset is initially measured based on the present value of lease payments that are not paid at the commencement date plus initial direct costs less any incentives received. The lease payments are discounted using an incremental borrowing rate which is country-specific and reflective of the lease term. The right-of-use asset is depreciated over the shorter of the lease term or the useful life of the underlying asset. Cash flows arising on lease interest payments are included in operating cash flows whereas cash flows arising on the capital repayments of the lease liability are included in financing cash flows. Impairment of assets The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which it belongs. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value-in-use. In assessing value-in-use, its estimated future cash flow is discounted to its present value using a pre-tax discount rate that reflects the current market assessment of the time value of money and the risks specific to the asset. ​ ​ Group financial statements continued Notes to the Group accounts continued 7 Property, plant and equipment continued ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plant and equipment ​ Assets in ​ ​ ​ ​ ​ ​ ​ Land and ​ ​ ​ ​ ​ course of ​ ​ ​ ​ ​ ​ ​ buildings ​ Instruments ​ Other ​ construction ​ Total ​ ​ Notes $ million $ million $ million $ million $ million Cost ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 1 January 2021 ​ ​ 616 ​ 1,676 ​ 1,244 ​ 216 ​ 3,752 ​ Exchange adjustment ​ ​ (9) ​ (53) ​ (16) ​ (1) ​ (79) ​ Acquisitions ​ 21 ​ 9 ​ 9 ​ 2 ​ 2 ​ 22 ​ Additions ​ ​ 53 ​ 151 ​ 40 ​ 161 ​ 405 ​ Disposals ​ ​ ​ (10) ​ (88) ​ (28) ​ 2 ​ (124) ​ Impairment ​ ​ ​ – ​ – ​ (6) ​ – ​ (6) ​ Transfers ​ ​ 29 ​ (1) ​ 46 ​ (77) ​ (3) ​ At 31 December 2021 ​ ​ 688 ​ 1,694 ​ 1,282 ​ 303 ​ 3,967 ​ Exchange adjustment ​ ​ (18) ​ (66) ​ (39) ​ (6) ​ (129) ​ Acquisitions ​ 21 ​ – ​ 2 ​ – ​ – ​ 2 ​ Additions ​ ​ 51 ​ 129 ​ 24 ​ 136 ​ 340 ​ Disposals ​ ​ ​ (45) ​ (58) ​ (49) ​ (1) ​ (153) ​ Impairment ​ ​ ​ – ​ – ​ – ​ (3) ​ (3) ​ Transfers ​ ​ 50 ​ 9 ​ 114 ​ (173) ​ – ​ At 31 December 2022 ​ ​ 726 ​ 1,710 ​ 1,332 ​ 256 ​ 4,024 ​ Depreciation and impairment ​ ​ ​ ​ ​ ​ ​ At 1 January 2021 ​ ​ 199 ​ 1,233 ​ 871 ​ – ​ 2,303 ​ Exchange adjustment ​ ​ (4) ​ (43) ​ (13) ​ – ​ (60) ​ Charge for the year ​ ​ 62 ​ 178 ​ 86 ​ – ​ 326 ​ Impairment ​ ​ – ​ – ​ (5) ​ – ​ (5) ​ Disposals ​ ​ (10) ​ (75) ​ (25) ​ – ​ (110) ​ Transfers ​ ​ 2 ​ (1) ​ (1) ​ – ​ – ​ At 31 December 2021 ​ ​ 249 ​ 1,292 ​ 913 ​ – ​ 2,454 ​ Exchange adjustment ​ ​ (8) ​ (52) ​ (29) ​ – ​ (89) ​ Charge for the year ​ ​ 62 ​ 172 ​ 85 ​ – ​ 319 ​ Impairment ​ ​ 18 ​ 8 ​ 1 ​ – ​ 27 ​ Disposals ​ ​ ​ (37) ​ (58) ​ (47) ​ – ​ (142) ​ Transfers ​ ​ – ​ 4 ​ (4) ​ – ​ – ​ At 31 December 2022 ​ ​ 284 ​ 1,366 ​ 919 ​ – ​ 2,569 ​ Net book amounts ​ ​ ​ ​ ​ ​ ​ At 31 December 2022 ​ ​ ​ 442 ​ 344 ​ 413 ​ 256 ​ 1,455 ​ At 31 December 2021 ​ ​ 439 ​ 402 ​ 369 ​ 303 ​ 1,513 ​ ​ Land and buildings includes land with a cost of $22m (2021: $23m) that is not subject to depreciation. Transfers from assets in course of construction includes $nil (2021: $3m) of software. Assets under construction in 2022 reflect that the Group is undergoing investment in its manufacturing facilities including expanding facilities in Malaysia and Costa Rica, and the development of new manufacturing facility in Hull, UK. Group capital expenditure relating to property, plant and equipment contracted but not provided for amounted to $20m (2021: $52m). The amount of borrowing costs capitalised in 2022 and 2021 was minimal. Information about the Group’s right-of-use assets is outlined below: ​ ​ ​ ​ ​ ​ ​ ​ ​ Land and buildings ​ Plant and equipment ​ 2022 $ million $ million ​ Additions ​ 49 ​ 10 ​ Depreciation charge in the year ​ 44 ​ 12 ​ Net book value at 31 December ​ 160 ​ 27 ​ ​

GOODWILL

GOODWILL	12 Months Ended
	Dec. 31, 2022
GOODWILL
GOODWILL	8 Goodwill Accounting policy Goodwill is not amortised but is reviewed for impairment annually. Goodwill is allocated to the cash-generating unit (CGU) that is expected to benefit from the acquisition. The goodwill is tested annually for impairment by comparing the recoverable amount to the carrying value of the CGUs. The CGUs identified by management are at the aggregated product franchise levels of Orthopaedics, Sports Medicine & ENT and Advanced Wound Management, in the way the core assets are used to generate cash flows. If the recoverable amount of the CGU is less than its carrying amount then an impairment loss is determined to have occurred. Any impairment losses that arise are recognised immediately in the income statement and are allocated first to reduce the carrying amount of goodwill and then to the carrying amounts of the other assets of the CGU. In carrying out impairment reviews of goodwill, a number of significant assumptions have to be made when preparing cash flow projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the future profitability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals. If actual results should differ, or changes in expectations arise, impairment charges may be required which would adversely impact operating results. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ Notes $ million $ million Cost and net book value ​ ​ ​ ​ ​ At 1 January ​ ​ ​ 2,989 ​ 2,928 ​ Exchange adjustment ​ ​ ​ (42) ​ (35) ​ Acquisitions ​ 21 ​ 84 ​ 96 ​ At 31 December ​ ​ ​ 3,031 ​ 2,989 ​ Management has identified four CGUs in applying the provisions of IAS 36 Impairment of Assets For the purpose of goodwill impairment testing, the Advanced Wound Care & Devices and Bioactives CGUs have been aggregated (Advanced Wound Management), as this is the level at which goodwill is monitored and level at which the economic benefits relating to the goodwill within these CGUs is realised. Goodwill is allocated to the Group’s CGUs as follows: ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ $ million $ million Orthopaedics ​ 953 ​ 897 ​ Sports Medicine & ENT ​ 1,455 ​ 1,457 ​ Advanced Wound Management ​ 623 ​ 635 ​ ​ ​ 3,031 ​ 2,989 ​ ​ Impairment reviews were performed as of September 2022 and September 2021 by comparing the recoverable amount of each CGU with its carrying amount, including goodwill. These were updated during December, taking into account any significant events that occurred between September and December. The current challenging economic environment, including inflation, was considered in the goodwill impairment reviews and recoverable amounts were based on cash flow projections using the Group’s base case scenario in its going concern models. Additionally, severe downside sensitivity analyses have been undertaken on the base case scenario. Although the headroom for the Orthopaedics CGU has decreased and is sensitive to a reasonably possible change in assumptions, no impairment was identified as a result of the impairment reviews and sensitivity analyses undertaken. ​ Group financial statements continued Notes to the Group accounts continued 8 Goodwill continued For each CGU, the recoverable amounts are based on value-in-use which is calculated from pre-tax cash flow projections for three years using data from the Group’s budget and strategic planning process, the results of which are reviewed and approved by the Board. These projections were extrapolated for a further two years to reflect expected growth in the CGUs above the terminal growth rate which is based on long term GDP growth. The initial three-year period is in line with the Group’s strategic planning process. In determining the growth rates used in the calculations of the value-in-use, management considered annual revenue growth. Projections are based on anticipated volume and value growth in the markets served by the Group and assumptions as to market share movements. Each year the projections for the previous year are compared to actual results and variances are factored into the assumptions used in the current year. The discount rates used in the value-in-use calculations reflect management’s assessment of risks specific to the assets of each CGU. The discount rates are calculated using the weighted average cost of capital which includes a risk-free rate, based on government bond yields, and an equity risk premium specifically adjusted to the medical technology industry. 8.1 Orthopaedics CGU The cash flows used in the value-in-use calculation for the Orthopaedics CGU, which includes the Reconstruction and Trauma businesses, reflects management’s distinctive orthopaedic reconstruction strategy, which combines cutting-edge innovation, disruptive business models and a strong Emerging Markets platform to drive our performance. The headroom for the Orthopaedics CGU has decreased from $1.1bn in the prior year to $0.6bn in the current year, primarily due to higher input inflation and supply chain challenges. Revenue is expected to grow above market growth rates due to new product launches and improved commercial execution. The trading profit margin is expected to grow over the five-year period as a result of revenue growth as well as productivity and efficiency improvements related to the 12-point plan. The average growth rate used to extrapolate the cash flows beyond the five-year period (2021: three-year period) in calculating the terminal value 8.2 Sports Medicine & ENT CGU The value-in-use calculation for the Sports Medicine & ENT CGU reflects growth rates and cash flows consistent with management’s strategy to rebalance Smith+Nephew towards higher growth areas such as Sports Medicine. The weighted average growth rate used to extrapolate the cash flows beyond the five-year period (2021: three-year period) in calculating the terminal value 8.3 Advanced Wound Management CGU The aggregated Advanced Wound Management CGU comprises the Advanced Wound Care & Devices and Bioactives CGUs. In performing the value-in-use calculation for this combined CGU, management considered the Group’s focus across the wound product franchises, focusing on widening access to the customer, the higher added value sectors of healing chronic wounds and tissue repair using bioactives, and by continuing to improve efficiency. The weighted average growth rate used to extrapolate the cash flows beyond the five-year period (2021: three-year period) in calculating the terminal value 8.4 Sensitivity to changes in assumptions used in value-in-use calculations Management have performed a sensitivity analysis of the value-in-use calculations for the identified CGUs and there was no impact on the reported amounts of goodwill as a result of this review for the Sports Medicine & ENT and Advanced Wound Management CGUs. The calculation of value-in-use for the Orthopaedics CGU is sensitive to reasonably possible changes in assumptions. Management’s consideration of these sensitivities is set out below: Revenue and trading profit margin – management has considered the impact of a decrease in the trading profit margin. This sensitivity analysis shows that for the recoverable amount of the Orthopaedics CGU to be less than its carrying value, the trading profit margin would have to decrease by more than 330 basis points. ​

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2022
INTANGIBLE ASSETS
INTANGIBLE ASSETS	9 Intangible assets Accounting policy Intangible assets Intangible assets acquired separately from a business combination (including purchased patents, know-how, trademarks, licences and distribution rights) are initially measured at cost. The cost of intangible assets acquired in a material business combination (referred to as acquisition intangibles) is the fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are amortised on a straight-line basis over their estimated useful economic lives. The estimated useful economic life of software ranges between three and seven years . The estimated useful economic life of technology assets ranges between 6 – 20 years , product-related assets ranges between 2 – 20 years , and customer and distribution assets ranges between 2 – 14 years . Internally-generated intangible assets are expensed in the income statement as incurred. Purchased computer software and certain costs of information technology projects are capitalised as intangible assets. Software that is integral to computer hardware is capitalised as plant and equipment. Impairment of intangible assets The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which it belongs. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs to sell and its value-in-use. In assessing value-in-use, its estimated future cash flow is discounted to its present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset. In carrying out impairment reviews of intangible assets, a number of significant assumptions have to be made when preparing cash flow projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the future profitability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals. If actual results should differ, or changes in expectations should arise, impairment charges may be required which would adversely impact operating results. ​ ​ Group financial statements continued Notes to the Group accounts continued 9 Intangible assets continued ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer and ​ ​ ​ Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ Product- ​ distribution- ​ ​ ​ in course of ​ ​ ​ ​ ​ ​ ​ Technology ​ related ​ related ​ Software ​ construction ​ Total ​ ​ ​ Notes $ million $ million $ million $ million $ million $ million Cost ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 1 January 2021 ​ ​ ​ 495 ​ 2,236 ​ 226 ​ 477 ​ 54 ​ 3,488 ​ Exchange adjustment ​ ​ ​ (8) ​ (26) ​ (6) ​ (7) ​ (2) ​ (49) ​ Acquisitions ​ ​ ​ 101 ​ – ​ 11 ​ – ​ – ​ 112 ​ Additions ​ ​ ​ – ​ 1 ​ 4 ​ 27 ​ 24 ​ 56 ​ Disposals ​ ​ ​ – ​ (1) ​ (4) ​ (17) ​ – ​ (22) ​ Impairment ​ ​ ​ – ​ (4) ​ – ​ – ​ – ​ (4) ​ Transfers ​ ​ ​ – ​ – ​ – ​ 11 ​ (8) ​ 3 ​ At 31 December 2021 ​ ​ ​ 588 ​ 2,206 ​ 231 ​ 491 ​ 68 ​ 3,584 ​ Exchange adjustment ​ ​ ​ (6) ​ (21) ​ (2) ​ (14) ​ (2) ​ (45) ​ Acquisitions ​ 21 ​ – ​ 44 ​ – ​ – ​ – ​ 44 ​ Additions ​ ​ ​ – ​ 3 ​ 7 ​ 32 ​ 35 ​ 77 ​ Disposals ​ ​ ​ – ​ – ​ (1) ​ (5) ​ – ​ (6) ​ Impairment ​ ​ ​ – ​ – ​ – ​ – ​ (1) ​ (1) ​ Transfers ​ ​ ​ – ​ – ​ – ​ 4 ​ (4) ​ – ​ At 31 December 2022 ​ ​ ​ 582 ​ 2,232 ​ 235 ​ 508 ​ 96 ​ 3,653 ​ Amortisation and impairment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 1 January 2021 ​ ​ ​ 142 ​ 1,373 ​ 126 ​ 361 ​ – ​ 2,002 ​ Exchange adjustment ​ ​ ​ (3) ​ (20) ​ (4) ​ (7) ​ – ​ (34) ​ Charge for the year ​ ​ ​ 41 ​ 131 ​ 23 ​ 42 ​ – ​ 237 ​ Impairment ​ ​ ​ – ​ (2) ​ – ​ – ​ – ​ (2) ​ Disposals ​ ​ ​ – ​ – ​ – ​ (17) ​ – ​ (17) ​ At 31 December 2021 ​ ​ ​ 180 ​ 1,482 ​ 145 ​ 379 ​ – ​ 2,186 ​ Exchange adjustment ​ ​ ​ (2) ​ (19) ​ (2) ​ (8) ​ – ​ (31) ​ Charge for the year ​ ​ ​ 46 ​ 123 ​ 17 ​ 43 ​ – ​ 229 ​ Impairment ​ ​ ​ 4 ​ 28 ​ – ​ 6 ​ – ​ 38 ​ Disposals ​ ​ ​ – ​ – ​ – ​ (5) ​ – ​ (5) ​ At 31 December 2022 ​ ​ ​ 228 ​ 1,614 ​ 160 ​ 415 ​ – ​ 2,417 ​ Net book amounts ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 31 December 2022 ​ ​ ​ 354 ​ 618 ​ 75 ​ 93 ​ 96 ​ 1,236 ​ At 31 December 2021 ​ ​ ​ 408 ​ 724 ​ 86 ​ 112 ​ 68 ​ 1,398 ​ ​ ​ Transfers into software and assets in course of construction includes $nil (2021: $3m) of software transferred from property, plant and equipment. Group capital expenditure relating to software contracted but not provided for amounted to $7m (2021: $10m). Amortisation and impairment of acquisition intangibles is set out below: ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ $ million $ million Technology ​ 51 ​ 41 ​ Product-related ​ 142 ​ 118 ​ Customer and distribution-related ​ 12 ​ 13 ​ Total ​ 205 ​ 172 ​ ​ ​ Management have assessed the acquisition intangible assets held by the Group to identify any indicators of impairment as of September 2022. These were updated during December to take into account any significant events that occurred between September and December. Where an impairment indicator has arisen, impairment reviews have been undertaken by comparing the expected recoverable value of assets to the carrying value of assets. In 2022, the Group booked $32 m (2021: $ nil ) of impairment charge in relation to immaterial product assets in acquisition intangibles . The table below provides further detail on the largest intangible assets and their remaining amortisation period: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ ​ Carrying value ​ amortisation ​ ​ ​ $ million period ​ Intangibles acquired as part of the ArthroCare acquisition ​ 306 ​ 1 – 11 years ​ Intangibles acquired as part of the Osiris acquisition ​ 204 ​ 2 – 6 years ​ Intangibles acquired as part of the Healthpoint acquisition ​ 179 ​ 5 years ​ ​

INVESTMENTS

INVESTMENTS	12 Months Ended
	Dec. 31, 2022
INVESTMENTS
INVESTMENTS	10 Accounting policy Investments, other than those related to associates, are initially recorded at fair value plus any directly attributable transaction costs on the trade date. The Group has investments in unquoted entities and an entity that holds mainly unquoted equity securities, which by their nature have no fixed maturity date or coupon rate. These investments are classed as fair value through profit or loss. The fair value of these investments is based on the underlying fair value of the equity securities: marketable securities are valued by reference to closing prices in the market; non-marketable securities are estimated considering factors including the purchase price; prices of recent significant private placements of securities of the same issuer; and estimates of liquidation value. Changes in fair value based on externally observable valuation events are recognised in profit or loss. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ ​ ​ $ million $ million At 1 January ​ ​ ​ 10 ​ 9 ​ Additions ​ ​ ​ 2 ​ 2 ​ Fair value remeasurement ​ ​ ​ – ​ (1) ​ At 31 December ​ ​ ​ 12 ​ 10 ​ ​

INVESTMENTS IN ASSOCIATES

INVESTMENTS IN ASSOCIATES	12 Months Ended
	Dec. 31, 2022
INVESTMENTS IN ASSOCIATES
INVESTMENTS IN ASSOCIATES	11 Investments in associates Accounting policy Investments in associates, being those entities over which the Group has a significant influence and which is neither a subsidiary nor a joint venture, are accounted for using the equity method, with the Group recording its share of the associates’ profit and loss and other comprehensive income. The Group’s share of associates’ profit or loss is included in one separate income statement line and is calculated after deduction of their respective taxes. The carrying amounts of investments in associates are reviewed for impairment as at the balance sheet date. For the purposes of impairment testing, the recoverable amounts of these investments would be based on their observable market value. Any impairment loss is subsequently reversed only to the extent that the recoverable amounts of the investments increase. At 31 December 2022, the Group holds 28.3% (2021: 29.2% ) of Bioventus Inc. (Bioventus) which is the holding company of Bioventus LLC. The decrease in the Group’s holding between 2022 and 2021 was because of the exercise of Bioventus employee share options. The company’s headquarters is located in Durham, North Carolina, US, and its medical product development is focused around active healing therapies and the surgical performance of orthobiologics. The active healing therapies product line supports accelerated and more complete healing of bone fractures, and treats the chronic pain associated with osteoarthritis. The loss after taxation recognised in the income statement relating to Bioventus was $141m (2021: $84m profit) which comprises the Group’s share of loss of $32m (2021: $9m profit), $nil gain (2021: $75m gain) on disposal of interest in associate, and an impairment loss of $109m (2021: $nil). The balance sheet carrying value relating to Bioventus is $46m (2021: $186m). The Group’s ability to recover the value of its investment is dependent upon the ongoing clinical and commercial success of these products. On 11 February 2021, Bioventus commenced trading on the Nasdaq Global Select Market via its holding company, Bioventus Inc., under the symbol ‘BVS’. Since its IPO in February 2021, Bioventus’s trading share price has decreased significantly and the company has disclosed a substantial doubt about their ability to continue as a going concern. Given these impairment indicators, management performed an impairment review by comparing the fair value of Bioventus using its market share price of $2.61 as at 30 December 2022 less costs of disposal to its carrying amount and concluded that an impairment loss of $109m should be charged (2021: $nil). ​ ​ Group financial statements continued Notes to the Group accounts continued 11 Investments in associates continued The amounts recognised in the balance sheet and income statement for associates are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ $ million $ million Balance sheet ​ 46 ​ 188 ​ Income statement (loss)/profit ​ (32) ​ 9 ​ Impairment of interest in associate ​ (109) ​ – ​ Gain on disposal of interest in associate ​ – ​ 75 ​ ​ Summarised financial information for significant associates Set out below is the summarised financial information for Bioventus, adjusted for differences with Group accounting policies. For the 2022 financial year, full-year information for Bioventus has not been released at the date of approval of these financial statements and is market sensitive given Bioventus is a publicly traded company. Accordingly, the summary financial information for 2022 is presented for a nine-month period, with adjustments made for any significant transactions or events which occur in the fourth quarter. ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ $ million $ million Summarised statement of comprehensive income ​ ​ ​ Revenue ​ 386 ​ 300 ​ Attributable (loss)/profit for the year ​ (129) ​ 22 ​ Group adjustments 1 ​ 17 ​ 10 ​ Total comprehensive profit ​ (112) ​ 32 ​ Group share of profit for the year at 28.3% (2021: 29.2%) ​ (32) ​ 9 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ $ million $ million Summarised balance sheet ​ ​ ​ Non-current assets ​ 1,128 ​ 1,021 ​ Current assets ​ 271 ​ 229 ​ Non-current liabilities ​ (730) ​ (542) ​ Current liabilities ​ (288) ​ (191) ​ Net assets ​ 381 ​ 517 ​ Net equity attributable to owners ​ 381 ​ 517 ​ Group’s share of net assets at 28.3% (2021: 29.2%) ​ 108 ​ 151 ​ Group adjustments 1 ​ 47 ​ 35 ​ Impairment loss ​ (109) ​ — ​ Group’s carrying amount of investment at 28.3% (2021: 29.2%) ​ 46 ​ 186 ​ 1 Group adjustments include adjustments to align with Group policy. The investment in Bioventus had a fair value less costs of disposal of $46m as at 31 December 2022. During the year, the Group received a $1m (2021: $4m) cash distribution from its associates. At 31 December 2022, the Group held equity investments in two other associates (2021: two ) with a carrying value of $nil (2021: $2 m).

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2022
INVENTORIES
INVENTORIES	12 Accounting policy Finished goods and work-in-progress are valued at factory cost, including appropriate overheads, on a first-in first-out basis. Raw materials and bought-in finished goods are valued at purchase price. All inventories are reduced to net realisable value where lower than cost. Inventory acquired as part of a business acquisition is valued at selling price less costs to sell and a profit allowance for selling efforts. Orthopaedic instruments are generally not sold but provided to customers and distributors for use in surgery. They are recorded as inventory until they are deployed at which point they are transferred to plant and equipment and depreciated over their useful economic lives of between three and seven years . A feature of the orthopaedic business is the high level of product inventory required, some of which is located at customer premises and is available for customers’ immediate use (referred to as consignment inventory). Complete sets of product, including large and small sizes, have to be made available in this way. These outer sizes are used less frequently than standard sizes and towards the end of the product life cycle are inevitably in excess of requirements. Adjustments to carrying value are therefore required to be made to orthopaedic inventory to anticipate this situation. These adjustments are calculated in accordance with a formula based on levels of inventory compared with historical or forecast usage. This formula is applied on an individual product line basis and is first applied when a product group has been on the market for two years . This method of calculation is considered appropriate based on experience but it involves management judgements on effectiveness of inventory deployment, length of product lives, phase-out of old products and efficiency of manufacturing planning systems. ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ $ million $ million Raw materials and consumables ​ 474 ​ 424 ​ Work-in-progress ​ 78 ​ 79 ​ Finished goods and goods for resale ​ 1,653 ​ 1,341 ​ ​ ​ 2,205 ​ 1,844 ​ ​ Management have not changed their policy for calculating the provision since 31 December 2021, nor is a change in the key assumptions underlying the methodology expected in the next 12 months. As a result of increased inventory levels, the provision has increased from $430 m at 31 December 2021 to $504 m at 31 December 2022. The provision, however, reduced as a result of foreign exchange movements of $15 m. The determination of the estimate of excess and obsolete inventory is a critical accounting estimate and includes assumptions on the future usage of all different items of finished goods. The provision for excess and obsolete inventory is not considered to have a range of potential outcomes that is significantly different to the $504 m at 31 December 2022 in the next 12 months. The provision has a high degree of estimation uncertainty given the range of products and sizes, with a potential range of reasonable outcomes that could be material over the longer term. The cost of inventories recognised as an expense and included in cost of goods sold amounted to $1,302m (2021: $1,407m, 2020: $1,129m). No adverse manufacturing variances generated by factory specific shutdowns or reductions in scheduled production due to Covid were directly expensed to cost of goods sold in 2022 (2021: $nil, 2020: $85m). In addition, $117m was recognised as an expense within cost of goods sold resulting from inventory write-offs and Notwithstanding inventory acquired within acquisitions, no inventory is carried at fair value less costs to sell in any year. ​

TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES	12 Months Ended
	Dec. 31, 2022
TRADE AND OTHER RECEIVABLES.
TRADE AND OTHER RECEIVABLES	Group financial statements continued Notes to the Group accounts continued 13 Accounting policy Trade and other receivables are carried at amortised cost, less any allowances for uncollectable amounts. They are included in current assets, except for maturities greater than 12 months after the balance sheet date when they are classified as non-current assets. The Group manages credit risk through credit limits which require authorisation commensurate with the size of the limit and which are regularly reviewed. Credit limit decisions are made based on available financial information and the business case. Significant receivables are regularly reviewed and monitored at Group level. The Group has no significant concentration of credit risk, with exposure spread over a large number of customers and geographies. Furthermore, the Group’s principal customers are backed by government and public or private medical insurance funding, which historically represent a lower risk of default. The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable. The Group does not hold any collateral as security. Allowance losses are calculated by reviewing lifetime expected credit losses using historic and forward-looking data on credit risk. The Group performed the calculation of expected credit loss rates separately for customer groups which were segmented based on common risk characteristics such as credit risk grade and type of customer (such as government and non-government). ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ $ million $ million Trade and other receivables due within one year ​ ​ ​ ​ ​ Trade receivables ​ 1,076 ​ 1,028 ​ Less: loss allowance ​ (49) ​ (57) ​ Trade receivables – net ​ 1,027 ​ 971 ​ Derivatives – forward foreign exchange, currency swaps and interest rate contracts ​ 47 ​ 39 ​ Other receivables ​ 114 ​ 95 ​ Prepayments ​ 76 ​ 79 ​ ​ ​ 1,264 ​ 1,184 ​ Due after more than one year ​ ​ ​ ​ ​ Other non-current assets ​ 12 ​ 15 ​ ​ ​ 1,276 ​ 1,199 ​ ​ Other non-current assets primarily relate to long-term prepayments and contingent consideration. Trade receivables are classified as loans and receivables. Management considers that the carrying amount of trade and other receivables approximates the fair value. Allowance losses are calculated by reviewing lifetime expected credit losses using historic and forward-looking data on credit risk. The loss allowance relating to other receivables is de minimis. The loss allowance expense for the year was $4 m (2021: $3 m, 2020: $25 m). The following table provides information about the ageing of and expected credit losses for trade receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 Weighted average loss rate ​ 2022 Loss allowance ​ 2022 Gross carrying amount ​ 2021 Gross carrying amount ​ % $ million $ million $ million Not past due ​ -0.3% ​ (2) ​ 610 ​ 595 ​ Past due not more than 3 months ​ -0.4% ​ (1) ​ 228 ​ 217 ​ Past due more than 3 months ​ -1.0% ​ (1) ​ 97 ​ 88 ​ Past due more than 6 months ​ -31.9% ​ (45) ​ 141 ​ 128 ​ ​ ​ ​ ​ (49) ​ 1,076 ​ 1,028 ​ Loss allowance ​ ​ ​ ​ ​ (49) ​ (57) ​ Trade receivables – net ​ ​ ​ ​ ​ 1,027 ​ 971 ​ ​ ​ The Group’s expected credit loss accounting policy includes guidance on how the expected credit loss percentages should be determined; it does not include preset limits as the customer groups and risk profiles are not consistent across all of our markets. Each market determines their own percentages based on historic experience and future expectations, and in line with the general guidance in the Group’s policy. Movements in the loss allowance were as follows: ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ $ million $ million At 1 January 57 71 ​ Exchange adjustment (3) (3) ​ Net receivables provided during the year 4 3 ​ Utilisation of provision (9) (14) ​ At 31 December 49 57 ​ ​ Trade receivables include amounts denominated in the following major currencies: ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ $ million $ million US Dollar ​ 465 429 ​ Sterling ​ 37 34 ​ Euro ​ 215 201 ​ Other ​ 310 307 ​ Trade receivables – net ​ 1,027 971 ​ ​

TRADE AND OTHER PAYABLES

TRADE AND OTHER PAYABLES	12 Months Ended
	Dec. 31, 2022
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES	14 Trade and other payables ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ $ million $ million ​ Trade and other payables due within one year ​ ​ ​ Trade and other payables ​ 1,029 ​ 1,043 ​ Derivatives – forward foreign exchange, currency swaps and interest rate contracts ​ 43 ​ 19 ​ Acquisition consideration ​ 26 ​ 34 ​ ​ ​ 1,098 ​ 1,096 ​ Other payables due after one year ​ ​ ​ Acquisition consideration ​ 66 ​ 57 ​ Derivatives – forward foreign exchange, currency swaps and interest rate contracts ​ 13 ​ – ​ Other payables ​ 11 ​ 10 ​ ​ ​ 90 ​ 67 ​ ​ The acquisition consideration includes $78m (2021: $84m) contingent upon future events. The acquisition consideration due after more than one year is expected to be payable as follows: $29 m in 2024, $35 m in 2025 and $2 m in 2026 (2021: $18 m in 2023, $15 m in 2024, $21 m in 2025 and $3 m due in over five years).

CASH AND BORROWINGS

CASH AND BORROWINGS	12 Months Ended
	Dec. 31, 2022
CASH AND BORROWINGS
CASH AND BORROWINGS	15 Cash and borrowings 15.1 Net debt Net debt comprises borrowings and credit balances on currency swaps less cash at bank. ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ $ million $ million Bank overdrafts, borrowings and loans due within one year ​ 111 ​ 435 ​ Long-term bank borrowings ​ – ​ 554 ​ Corporate bond ​ 1,510 ​ 993 ​ Private placement notes ​ 1,055 ​ 1,160 ​ Borrowings ​ 2,676 ​ 3,142 ​ Cash at bank ​ (350) ​ (1,290) ​ Credit balance on derivatives – interest rate swaps ​ 13 ​ – ​ Net debt ​ 2,339 ​ 1,852 ​ Non-current lease liabilities ​ 147 ​ 141 ​ Current lease liabilities ​ 49 ​ 56 ​ Net debt including lease liabilities ​ 2,535 ​ 2,049 ​ ​ Borrowings are repayable as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Within ​ Between ​ Between ​ Between ​ Between ​ ​ ​ ​ ​ ​ one year or ​ one and ​ two and ​ three and ​ four and ​ After ​ ​ ​ ​ on demand ​ two years ​ three years ​ four years ​ five years ​ five years ​ Total ​ $ million $ million $ million $ million $ million $ million $ million At 31 December 2022 ​ ​ ​ ​ ​ ​ ​ ​ Bank overdrafts ​ 6 ​ – ​ – ​ – ​ – ​ – ​ 6 ​ Corporate bond ​ – ​ – ​ – ​ – ​ – ​ 1,510 ​ 1,510 ​ Private placement notes ​ 105 ​ 430 ​ – ​ 75 ​ 140 ​ 410 ​ 1,160 ​ Lease liabilities 1 ​ 49 ​ 42 ​ 32 ​ 24 ​ 18 ​ 45 ​ 210 ​ ​ ​ 160 ​ 472 ​ 32 ​ 99 ​ 158 ​ 1,965 ​ 2,886 ​ At 31 December 2021 ​ ​ ​ ​ ​ ​ ​ ​ Bank loans ​ 305 ​ 554 ​ – ​ – ​ – ​ – ​ 859 ​ Bank overdrafts ​ 5 ​ – ​ – ​ – ​ – ​ – ​ 5 ​ Corporate bond ​ – ​ – ​ – ​ – ​ – ​ 993 ​ 993 ​ Private placement notes ​ 125 ​ 105 ​ 430 ​ – ​ 75 ​ 550 ​ 1,285 ​ Lease liabilities 1 ​ 56 ​ 33 ​ 33 ​ 23 ​ 18 ​ 47 ​ 210 ​ ​ ​ 491 ​ 692 ​ 463 ​ 23 ​ 93 ​ 1,590 ​ 3,352 ​ ​ 1 The lease liabilities presented above of $210 m (2021: $210 m) are on an undiscounted basis. The lease liabilities on a discounted basis, as outlined above, are $196 m (2021: $197 m). ​ 15.2 Liquidity risk exposures The Board has established a set of policies to manage funding and currency risks. The Group only uses derivative financial instruments to manage the financial risks associated with underlying business activities and their financing. Liquidity risk is the risk that the Group is not able to settle or meet its obligations on time or at a reasonable price. The Group’s policy is to ensure that there is sufficient funding and facilities in place to meet foreseeable borrowing requirements. The Group manages and monitors liquidity risk through regular reporting of current cash and borrowing balances and periodic preparation and review of short-and medium-term cash forecasts, having regard to the maturities of investments and borrowing facilities. The Group has available committed facilities of $3.7bn (2021: $4.1bn). During 2022, the Group issued its debut EUR Corporate Bond, in the form of €500m (before expenses and underwriting discounts) of notes bearing an interest rate of 4.565% repayable in 2029. In addition, the Group repaid its €269m, €223m and €265m EUR term loan facilities, as well as $125m of private placement debt. The interest payable on borrowings under committed facilities is either at fixed or floating rates. Euro floating rates are typically based on EURIBOR and US Dollar rates are typically based on the Secured Overnight Financing Rate (SOFR). The Company is subject to financial covenants under its private placement agreements. The financial covenants are tested at the end of each half year for the 12 months ending on the last day of the testing period. As of 31 December 2022, the Company was in compliance with these covenants. The facilities are also subject to customary events of default, none of which are currently anticipated to occur. The Group’s committed facilities at 31 December 2022 are: ​ ​ ​ ​ ​ Facility Date due ​ $105 million 3.26% Senior Notes ​ November 2023 ​ $100 million 3.89% Senior Notes ​ January 2024 ​ $305 million 3.36% Senior Notes ​ November 2024 ​ $25 million Floating Rate Senior Notes ​ November 2024 ​ $1.0 billion syndicated revolving credit facility ​ June 2025 ​ $75 million 3.99% Senior Notes ​ January 2026 ​ $140 million 2.83% Senior Notes ​ June 2027 ​ $60 million 2.90% Senior Notes ​ June 2028 ​ $100 million 2.97% Senior Notes ​ June 2029 ​ €500 million 4.565% EUR Corporate Bond ​ October 2029 ​ $95 million 2.99% Senior Notes ​ June 2030 ​ $1.0 billion 2.032% USD Corporate Bond ​ October 2030 ​ $155 million 3.09% Senior Notes ​ June 2032 ​ ​ ​ ​ Group financial statements continued Notes to the Group accounts continued 15 Cash and borrowings continued 15.3 Year end financial liabilities by contractual maturity The table below analyses the Group’s year end financial liabilities by contractual maturity date, including contractual interest payments and excluding the impact of netting arrangements: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Within one ​ Between ​ Between ​ ​ ​ ​ ​ year or on ​ one and ​ two and ​ After ​ ​ ​ ​ demand ​ two years ​ five years ​ five years ​ Total ​ $ million $ million $ million $ million $ million At 31 December 2022 ​ ​ ​ ​ ​ Non-derivative financial liabilities: ​ ​ ​ ​ ​ Bank overdrafts and loans 6 ​ – ​ – ​ – ​ 6 ​ Corporate bond 37 ​ 37 ​ 111 ​ 1,620 ​ 1,805 ​ Trade and other payables 1,029 ​ – ​ – ​ – ​ 1,029 ​ Private placement notes 143 ​ 461 ​ 265 ​ 444 ​ 1,313 ​ Acquisition consideration 26 ​ 31 ​ 39 ​ – ​ 96 ​ Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency swaps/forward foreign exchange contracts – outflow 2,598 ​ – ​ – ​ – ​ 2,598 ​ Currency swaps/forward foreign exchange contracts – inflow (2,601) ​ – ​ – ​ – ​ (2,601) ​ ​ 1,238 ​ 529 ​ 415 ​ 2,064 ​ 4,246 ​ At 31 December 2021 ​ ​ ​ ​ ​ Non-derivative financial liabilities: ​ ​ ​ ​ ​ Bank overdrafts and loans 310 ​ 554 ​ – ​ – ​ 864 ​ Corporate bond ​ 20 ​ 20 ​ 61 ​ 1,077 ​ 1,178 ​ Trade and other payables 1,043 ​ – ​ – ​ – ​ 1,043 ​ Private placement notes 165 ​ 142 ​ 574 ​ 599 ​ 1,480 ​ Acquisition consideration 35 ​ 19 ​ 42 ​ – ​ 96 ​ Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency swaps/forward foreign exchange contracts – outflow 2,322 ​ – ​ – ​ – ​ 2,322 ​ Currency swaps/forward foreign exchange contracts – inflow (2,342) ​ – ​ – ​ – ​ (2,342) ​ ​ 1,553 ​ 735 ​ 677 ​ 1,676 ​ 4,641 ​ ​ The amounts in the tables above are undiscounted cash flows, which differ from the amounts included in the balance sheet where the underlying cash flows have been discounted. 15.4 Liquidity and capital resources The Group’s policy is to ensure that it has sufficient funding and facilities to meet foreseeable borrowing requirements. At 31 December 2022, the Group held $344m (2021: $1,285m, 2020: $1,751m) in cash net of bank overdrafts. The Group had committed facilities available of $3.7bn at 31 December 2022 of which $2.7bn was drawn. The principal variations in the Group’s borrowing requirements result from the timing of dividend payments, acquisitions and disposals of businesses, timing of capital expenditure and working capital fluctuations. Smith+Nephew believes that its capital expenditure needs and its working capital funding for 2023, as well as its other known or expected commitments or liabilities, can be met from its existing resources and facilities. The Group’s net debt including leases increased from $2bn at the beginning of 2022 to $2.5bn at the end of 2022, representing an overall increase of $0.5bn. ​

FINANCIAL INSTRUMENTS AND RISK

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT	12 Months Ended
	Dec. 31, 2022
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT	16 Financial instruments and risk management Accounting policy Derivative financial instruments Derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value at subsequent balance sheet dates. Changes in the fair value of derivative financial instruments that are designated and effective as cash flow hedges of forecast third-party transactions are recognised in other comprehensive income until the associated asset or liability is recognised. Amounts taken to other comprehensive income are transferred to the income statement in the period in which the hedged transaction affects profit and loss. Where the hedged item is the cost of a non-financial asset, the amounts taken to other comprehensive income are transferred to the initial carrying value of the asset. On adoption of IFRS 9 on 1 January 2018, the Group elected to continue to apply the hedge accounting guidance in IAS 39 Financial Instruments: Recognition and Measurement . Changes in the fair values of hedging instruments that are designated and effective as net investment hedges are matched in other comprehensive income against changes in value of the related net assets. Interest rate derivatives transacted to fix interest rates on floating rate borrowings are accounted for as cash flow hedges and changes in the fair values resulting from changes in market interest rates are recognised in other comprehensive income. Amounts taken to other comprehensive income are transferred to the income statement when the hedged transaction affects profit and loss. Interest rate derivatives transacted to convert fixed rate borrowings into floating rate borrowings are accounted for as fair value hedges and changes in the fair values resulting from changes in market interest rates are recognised in the income statement. Any ineffectiveness on hedging instruments and changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the income statement within other finance costs as they arise. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive income is retained there until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in other comprehensive income is transferred to the income statement. 16.1 Foreign exchange risk management The Group operates in many countries and as a consequence has transactional and translational foreign exchange exposure. It is the Group’s policy for operating units not to hold material unhedged monetary assets or liabilities other than in their functional currencies. Foreign exchange variations affect trading results in two ways. Firstly, on translation of overseas sales and profits into US Dollars and secondly, transactional exposures arising where some, or all of the costs of sale are incurred in a different currency from the sale. The principal transactional exposures arise as the proportion of costs in US Dollars, Sterling and Swiss Francs exceed the proportion of sales in each of these currencies and correspondingly the proportion of sales in Euros exceeds the proportion of costs in Euros. The impact of currency movements on the cost of purchases is partly mitigated by the use of forward foreign exchange contracts. The Group uses forward foreign exchange contracts, designated as cash flow hedges, to hedge forecast third-party trading cash flows up to one year . When a commitment is entered into, forward foreign exchange contracts are normally used to increase the hedge to 100% of the exposure. Cash flows relating to cash flow hedges are expected to occur within 12 months of inception and profits and losses on hedges are expected to enter into the determination of profit (within cost of goods sold) within a further 12 - month period. The principal currencies hedged by forward foreign exchange contracts are US Dollars, Euros, Sterling and Singapore Dollars. At 31 December 2022, the Group had contracted to exchange within one year the equivalent of $2.2 bn (2021: $2.0 bn). Based on the Group’s net borrowings as at 31 December 2022, if the US Dollar were to weaken against all currencies by 10% , the Group’s net borrowings would increase by $41 m (2021: $75 m) principally due to the Euro-denominated term loans. ​ Group financial statements continued Notes to the Group accounts continued 16 Financial instruments and risk management continued If the US Dollar were to weaken by 10% against all other currencies, then the fair value of the forward foreign exchange contracts as at 31 December 2022 would have been $50m lower (2021: $44m lower). Similarly, if the Euro were to weaken by 10% against all other currencies, then the fair value of the forward foreign exchange contracts as at 31 December 2022 would have been $35m higher (2021: $26m higher). Movements in the fair value of forward foreign exchange contracts would be recognised in other comprehensive income or in the income statement. A 10% strengthening of the US Dollar or Euro against all other currencies at 31 December 2022 would have had the equal but opposite effect to the amounts shown above, on the basis that all other variables remain constant. The Group’s policy is to hedge all actual foreign exchange exposures and the Group’s forward foreign exchange contracts are designated as cash flow hedges. The net impact of transaction-related foreign exchange on the income statement from a movement in exchange rates on the value of forward foreign exchange contracts is not significant. In addition, the movements in the fair value of other financial instruments used for hedging such as currency swaps for which hedge accounting is not applied offset movements in the values of assets and liabilities and are recognised through the income statement. Hedge ineffectiveness is caused by actual cash flows in foreign currencies varying from forecast cash flows. 16.2 Interest rate risk management The Group is exposed to interest rate risk on cash, borrowings and certain currency and interest rate swaps which are at floating rates. When required the Group uses interest rate derivatives to meet its objective of protecting borrowing costs within parameters set by the Board. These interest rate derivatives are accounted for as cash flow hedges and, as such, changes in fair value resulting from changes in market interest rates are recognised in other comprehensive income and accumulated in the hedging reserve, with the fair value of the interest rate derivatives recorded in the balance sheet. Additionally, the Group uses interest rate swaps to reduce the overall level of fixed rate debt, within parameters set by the Board. When used in this way, interest rate derivatives are accounted for as fair value hedges. The fair value movement of the derivative is offset in the income statement against the fair value movement in the underlying fixed rate debt. In 2022, the Group entered into a new €500 m fixed to floating interest rate swap. Based on the Group’s gross borrowings and cash as at 31 December 2022, if interest rates were to increase by 100 basis points in all currencies, then the annual net interest charge would increase by $4m (2021: $3m). A decrease in interest rates by 100 basis points in all currencies would have an equal but opposite effect to the amounts shown above. 16.3 Credit risk management The Group limits exposure to credit risk on counterparties used for financial instruments through a system of internal credit limits. The financial exposure of a counterparty is determined as the total of cash and deposits, plus the risk on derivative instruments, assessed as the fair value of the instrument plus a risk element based on the nominal value and the historic volatility of the market value of the instrument. The Group does not anticipate non-performance of counterparties and believes it is not subject to material concentration of credit risk as the Group operates within a policy of counterparty limits designed to reduce exposure to any single counterparty. The maximum credit risk exposure on derivatives at 31 December 2022 was $47m (2021: $39m), being the total debit fair values on forward foreign exchange contracts and currency swaps. The maximum credit risk exposure on cash at bank at 31 December 2022 was $350m (2021: $1,290m). The Group’s exposure to credit risk on cash is mitigated as the amounts are held in a wide number of high credit quality financial institutions. Credit risk on trade receivables is detailed in Note 13. ​ The amounts relating to items designated as hedging instruments were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying ​ Carrying ​ Changes in ​ Hedge ​ Amounts reclassified ​ ​ ​ ​ Nominal ​ amount ​ amount ​ fair value ​ ineffectiveness ​ from hedging reserve ​ ​ ​ ​ amount ​ assets ​ liabilities ​ in OCI ​ in profit or loss ​ to profit or loss ​ Line item in ​ $ million $ million $ million $ million $ million $ million profit or loss At 31 December 2022 ​ ​ ​ ​ ​ ​ ​ Foreign currency risk ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Forward exchange contracts 1 ​ 2,598 ​ 47 ​ (43) ​ (13) ​ – ​ (37) ​ Cash flow hedges Interest rate risk ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swaps 2 ​ (500) ​ – ​ (13) ​ – ​ – ​ – ​ Fair value hedge At 31 December 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency risk ​ ​ ​ ​ ​ ​ ​ Forward exchange contracts 1 ​ 2,322 ​ 39 ​ (19) ​ 41 ​ – ​ 7 ​ Cash flow hedges Interest rate risk ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swaps 2 ​ – ​ – ​ – ​ – ​ – ​ – ​ N/A 1 Presented in Trade and other receivables and Trade and other payables on the Balance Sheet. 2 Presented in Non-current other payables on the Balance Sheet. 16.4 Net investment hedge Part of the Group’s net investment in its Euro subsidiaries is hedged by €500 m ( $533 m To assess hedge effectiveness, the Group determines the economic relationship between the hedging instrument and the hedged item by comparing changes in the carrying amount of the debt that is attributable to a change in the spot rate with changes in the investment in the foreign operation due to movements in the spot rate (the offset method). The Group’s policy is to hedge the net investment only to the extent of the debt principal. Hedge ineffectiveness occurs if the value of the Euro-denominated Corporate Bond exceeds the value of the Euro subsidiaries. 16.5 Currency and interest rate profile of interest bearing liabilities and assets Short-term receivables and payables are excluded from the following disclosures. Currency and interest rate profile of interest bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed rate liabilities ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ average ​ ​ ​ ​ ​ ​ ​ Interest ​ ​ ​ ​ ​ ​ ​ Weighted ​ time ​ ​ Gross ​ Currency ​ rate ​ Total ​ Floating ​ Fixed rate ​ average ​ for which ​ ​ borrowings ​ swaps ​ swaps ​ liabilities ​ rate liabilities ​ liabilities ​ interest rate ​ rate is fixed ​ $ million $ million $ million $ million $ million $ million % Years At 31 December 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ (2,159) ​ (163) ​ – ​ (2,322) ​ (193) ​ (2,129) ​ 2.7 ​ 5.9 ​ Other ​ (517) ​ (206) ​ (13) ​ (736) ​ (220) ​ (516) ​ ​ ​ ​ ​ Total interest bearing liabilities ​ (2,676) ​ (369) ​ (13) ​ (3,058) ​ (413) ​ (2,645) ​ ​ ​ At 31 December 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ (2,278) ​ (201) ​ – ​ (2,479) ​ (226) ​ (2,253) ​ 2.7 ​ 6.5 ​ Other ​ (864) ​ (136) ​ – ​ (1,000) ​ (1,000) ​ – ​ – ​ – ​ Total interest bearing liabilities ​ (3,142) ​ (337) ​ – ​ (3,479) ​ (1,226) ​ (2,253) ​ ​ ​ ​ In 2022, the Group also had liabilities due for deferred and contingent acquisition consideration (denominated in US Dollars, Swiss Francs and Euros) totalling $92m (2021: $91m, 2020: $165m) on which no interest was payable (see Note 14). There were no other significant interest bearing or non-interest bearing financial liabilities. Euro floating rates are typically based on EURIBOR and US Dollar rates are typically based on SOFR. The weighted average interest rate on floating rate borrowings as at 31 December 2022 was over 3% (2021: less than 1%). Group financial statements continued Notes to the Group accounts continued 16 Financial instruments and risk management continued Currency and interest rate profile of interest bearing assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash ​ Currency ​ Interest rate ​ Floating ​ Fixed ​ ​ at bank ​ swaps ​ swaps ​ Total assets ​ rate assets ​ rate assets ​ $ million $ million $ million $ million $ million $ million At 31 December 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ 207 ​ 205 ​ – ​ 412 ​ 412 ​ – ​ Other ​ 143 ​ 164 ​ – ​ 307 ​ 307 ​ – ​ Total interest bearing assets ​ 350 ​ 369 ​ – ​ 719 ​ 719 ​ – ​ At 31 December 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ 1,156 ​ 135 ​ – ​ 1,291 ​ 1,291 ​ – ​ Other ​ 134 ​ 202 ​ – ​ 336 ​ 336 ​ – ​ Total interest bearing assets ​ 1,290 ​ 337 ​ – ​ 1,627 ​ 1,627 ​ – ​ ​ Floating rates on assets are typically based on the short-term deposit rates relevant to the currency concerned. 16.6 Fair value of financial assets and liabilities Accounting policy Measurement of fair values A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial assets and liabilities and non-financial assets acquired in a business combination (see Note 21). When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values are categorised into different levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices); and Level 3: inputs for the asset or liability that are not based on observable data (unobservable inputs). The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. There has been no change in the classification of financial assets and liabilities, the method and assumptions used in determining fair value and the categorisation of financial assets and liabilities within the fair value hierarchy from those disclosed in the Annual Report for the year ended 31 December 2021. The Group enters into derivative financial instruments with financial institutions with investment grade credit ratings. The fair value of forward foreign exchange contracts is calculated by reference to quoted market forward exchange rates for contracts with similar maturity profiles. The fair value of currency swaps is determined by reference to quoted market spot rates. As a result, foreign forward exchange contracts and currency swaps are classified as Level 2 within the fair value hierarchy. The changes in counterparty credit risk had no material effect on the hedge effectiveness for derivatives designated in hedge relationships and other financial instruments recognised at fair value. The fair value of investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3 in the fair value hierarchy. There were no transfers between Levels 1 , 2 and 3 during 2022 and 2021 . For cash and cash equivalents, short-term loans and receivables, overdrafts and other short-term liabilities which have a maturity of less than three months, the book values approximate the fair values because of their short-term nature. Long-term borrowings are measured in the balance sheet at amortised cost. The corporate bonds issued in October 2020 and October 2022 are publicly listed and a market price is available. The Group’s other long-term borrowings are not quoted publicly, their fair values are estimated by discounting future contractual cash flows to net present values at the current market interest rates available to the Group for similar financial instruments as at the year end. The fair value of the private placement notes is determined using a discounted cash flow model based on prevailing market rates. ​ The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying amount ​ ​ ​ ​ ​ Fair value ​ ​ ​ Fair value – hedging instruments ​ Amortised cost ​ Fair value through OCI ​ Fair value through profit or loss ​ Other financial liabilities ​ Total ​ Level 2 ​ Level 3 ​ Total ​ At 31 December 2022 $ million $ million $ million $ million $ million $ million $ million $ million $ million ​ Financial assets measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Forward foreign exchange contracts ​ 46 ​ – ​ – ​ – ​ – ​ 46 ​ 46 ​ – ​ 46 ​ Investments ​ – ​ – ​ – ​ 12 ​ – ​ 12 ​ – ​ 12 ​ 12 ​ Contingent consideration receivable ​ – ​ – ​ – ​ 18 ​ – ​ 18 ​ – ​ 18 ​ 18 ​ Currency swaps ​ – ​ – ​ 1 ​ – ​ – ​ 1 ​ 1 ​ – ​ 1 ​ ​ ​ 46 ​ – ​ 1 ​ 30 ​ – ​ 77 ​ ​ ​ ​ ​ ​ Financial liabilities measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition consideration ​ – ​ – ​ – ​ (78) ​ – ​ (78) ​ – ​ (78) ​ (78) ​ Forward foreign exchange contracts ​ (42) ​ – ​ – ​ – ​ – ​ (42) ​ (42) ​ – ​ (42) ​ Interest rate swaps ​ (13) ​ – ​ – ​ – ​ – ​ (13) ​ (13) ​ – ​ (13) ​ Currency swaps ​ – ​ – ​ (1) ​ – ​ – ​ (1) ​ (1) ​ – ​ (1) ​ ​ ​ (55) ​ – ​ (1) ​ (78) ​ – ​ (134) ​ ​ ​ ​ Financial assets not measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade and other receivables ​ 1,123 ​ – ​ – ​ – ​ – ​ 1,123 ​ ​ ​ ​ Cash at bank ​ – ​ 350 ​ – ​ – ​ – ​ 350 ​ ​ ​ ​ ​ ​ 1,123 ​ 350 ​ – ​ – ​ – ​ 1,473 ​ ​ ​ ​ Financial liabilities not measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition consideration ​ – ​ – ​ – ​ – ​ (14) ​ (14) ​ ​ ​ ​ Bank overdrafts ​ – ​ – ​ – ​ – ​ (6) ​ (6) ​ ​ ​ ​ Corporate bond not in a hedge relationship ​ – ​ – ​ – ​ – ​ (994) ​ (994) ​ ​ ​ ​ ​ ​ ​ Corporate bond in a hedge relationship ​ – ​ – ​ – ​ – ​ (516) ​ (516) ​ ​ ​ ​ Private placement debt not in a hedge relationship ​ – ​ – ​ – ​ – ​ (1,160) ​ (1,160) ​ ​ ​ ​ ​ ​ ​ Trade and other payables ​ – ​ – ​ – ​ – ​ (1,040) ​ (1,040) ​ ​ ​ ​ ​ ​ – ​ – ​ – ​ – ​ (3,730) ​ (3,730) ​ ​ ​ ​ ​ At 31 December 2022, the book value and market value of the USD corporate bond were $994m and $783m respectively (2021: $993m and $962m), the book value and market value of the EUR Corporate bond were $516m and $531m respectively. The book value and fair value of the private placement debt were $1,160m and $987m respectively (2021: $1,285m and $1,316m). ​ Group financial statements continued Notes to the Group accounts continued 16 Financial instruments and risk management continued During the year ended 31 December 2022, acquisition consideration increased ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying amount ​ ​ ​ ​ ​ Fair value ​ ​ ​ Fair value – hedging instruments ​ Amortised cost ​ Fair value through OCI ​ Fair value through profit or loss ​ Other financial liabilities ​ Total ​ Level 2 ​ Level 3 ​ Total ​ At 31 December 2021 $ million $ million $ million $ million $ million $ million $ million $ million $ million ​ Financial assets measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Forward foreign exchange contracts ​ 37 ​ – ​ – ​ – ​ – ​ 37 ​ 37 ​ – ​ 37 ​ Investments ​ – ​ – ​ – ​ 10 ​ – ​ 10 ​ – ​ 10 ​ 10 ​ Contingent consideration receivable ​ – ​ – ​ – ​ 20 ​ – ​ 20 ​ – ​ 20 ​ 20 ​ Currency swaps ​ – ​ – ​ 2 ​ – ​ – ​ 2 ​ 2 ​ – ​ 2 ​ ​ ​ 37 ​ – ​ 2 ​ 30 ​ – ​ 69 ​ ​ ​ ​ ​ ​ Financial liabilities measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition consideration ​ – ​ – ​ – ​ (84) ​ – ​ (84) ​ – ​ (84) ​ (84) ​ Forward foreign exchange contracts ​ (17) ​ – ​ – ​ – ​ – ​ (17) ​ (17) ​ – ​ (17) ​ Currency swaps ​ – ​ – ​ (2) ​ – ​ – ​ (2) ​ (2) ​ – ​ (2) ​ ​ ​ (17) ​ – ​ (2) ​ (84) ​ – ​ (103) ​ ​ ​ ​ Financial assets not measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade and other receivables ​ 1,046 ​ – ​ – ​ – ​ – ​ 1,046 ​ ​ ​ ​ Cash at bank ​ – ​ 1,290 ​ – ​ – ​ – ​ 1,290 ​ ​ ​ ​ ​ ​ 1,046 ​ 1,290 ​ – ​ – ​ – ​ 2,336 ​ ​ ​ ​ Financial liabilities not measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition consideration ​ – ​ – ​ – ​ – ​ (7) ​ (7) ​ ​ ​ ​ Bank overdrafts ​ – ​ – ​ – ​ – ​ (5) ​ (5) ​ ​ ​ ​ Bank loans ​ – ​ – ​ – ​ – ​ (859) ​ (859) ​ ​ ​ ​ Corporate bond ​ – ​ – ​ – ​ – ​ (993) ​ (993) ​ ​ ​ ​ Private placement debt not in a hedge relationship ​ – ​ – ​ – ​ – ​ (1,285) ​ (1,285) ​ ​ ​ ​ ​ ​ ​ Trade and other payables ​ – ​ – ​ – ​ – ​ (1,053) ​ (1,053) ​ ​ ​ ​ ​ ​ – ​ – ​ – ​ – ​ (4,202) ​ (4,202) ​ ​ ​ ​ ​ The fair value of contingent acquisition consideration is estimated using a discounted cash flow model. The valuation model considers the present value of risk adjusted expected payments, discounted using a risk-free discount rate. The expected payment is determined by considering the possible scenarios, which relate to the achievement of established milestones and targets, the amount to be paid under each scenario and the probability of each scenario. As a result, contingent acquisition consideration is classified as Level 3 within the fair value hierarchy. ​ ​ The fair value of investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3 in the fair value hierarchy. The movements in 2022 and 2021 for financial instruments measured using Level 3 valuation methods are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ $ million $ million ​ Investments ​ ​ ​ ​ ​ At 1 January ​ 10 ​ 9 ​ Additions ​ 2 ​ 2 ​ Fair value remeasurement ​ – ​ (1) ​ At 31 December ​ 12 ​ 10 ​ ​ ​ ​ ​ ​ ​ Contingent consideration receivable ​ ​ ​ ​ ​ At 1 January ​ 20 ​ 37 ​ Remeasurements ​ – ​ 1 ​ Receipts ​ (2) ​ (18) ​ At 31 December ​ 18 ​ 20 ​ ​ ​ ​ ​ ​ ​ Acquisition consideration liability ​ ​ ​ ​ ​ At 1 January ​ (84) ​ (128) ​ Arising on acquisitions ​ (32) ​ – ​ Payments ​ 20 ​ 23 ​ Remeasurements ​ 19 ​ 21 ​ Discount unwind ​ (1) ​ – ​ At 31 December ​ (78) ​ (84) ​ ​

PROVISIONS AND CONTINGENCIES

PROVISIONS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2022
PROVISIONS AND CONTINGENCIES
PROVISIONS AND CONTINGENCIES	Group financial statements continued Notes to the Group accounts continued 17 Accounting policy In the normal course of business the Group is involved in various legal disputes. Provisions are made for loss contingencies when it is deemed probable that an adverse outcome will occur and the amount of the losses can be reasonably estimated. Where the Group is the plaintiff in pursuing claims against third parties, legal and associated expenses are charged to the income statement as incurred. The recognition of provisions for legal disputes is subject to a significant degree of estimation. In making its estimates, management takes into account the advice of internal and external legal counsel. Provisions are reviewed regularly and amounts updated where necessary to reflect developments in the disputes. The ultimate liability may differ from the amount provided depending on the outcome of court proceedings or settlement negotiations or as new facts emerge. Insurance recoveries are recognised when the inflow of benefits is virtually certain and are presented within other receivables. A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. A provision for rationalisation is recognised when the Group has approved a detailed and formal restructuring plan and the restructuring either has commenced or has been announced publicly. Future operating losses are not provided for. 17.1 Provisions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rationalisation ​ Legal and other ​ ​ ​ ​ ​ provisions ​ Metal-on-metal ​ provisions ​ Total ​ ​ ​ $ million $ million $ million $ million ​ At 1 January 2021 ​ ​ ​ 29 ​ 336 ​ 52 ​ 417 ​ Charge to income statement ​ ​ ​ 115 ​ – ​ 13 ​ 128 ​ Release to income statement ​ ​ ​ (2) ​ – ​ (1) ​ (3) ​ Unwinding of discount ​ ​ ​ – ​ 8 ​ – ​ 8 ​ Utilised ​ ​ ​ (124) ​ (55) ​ (13) ​ (192) ​ Exchange adjustment ​ ​ ​ – ​ – ​ (1) ​ (1) ​ At 31 December 2021 ​ ​ ​ 18 ​ 289 ​ 50 ​ 357 ​ Charge to income statement ​ ​ ​ 169 ​ 19 ​ 19 ​ 207 ​ Release to income statement ​ ​ ​ (2) ​ – ​ (5) ​ (7) ​ Unwinding of discount ​ ​ ​ – ​ 7 ​ – ​ 7 ​ Utilised ​ ​ ​ (154) ​ (76) ​ (6) ​ (236) ​ Exchange adjustment ​ ​ ​ (1) ​ – ​ – ​ (1) ​ At 31 December 2022 ​ ​ ​ 30 ​ 239 ​ 58 ​ 327 ​ Provisions – due within one year ​ ​ ​ 30 ​ 165 ​ 48 ​ 243 ​ Provisions – due after one year ​ ​ ​ – ​ 74 ​ 10 ​ 84 ​ At 31 December 2022 ​ ​ ​ 30 ​ 239 ​ 58 ​ 327 ​ Provisions – due within one year ​ ​ ​ 18 ​ 263 ​ 41 ​ 322 ​ Provisions – due after one year ​ ​ ​ – ​ 26 ​ 9 ​ 35 ​ At 31 December 2021 ​ ​ ​ 18 ​ 289 ​ 50 ​ 357 ​ ​ The principal elements within rationalisation provisions relate to the Operations and Commercial Excellence programme announced in February 2020 and the efficiency and productivity elements of the 12-point plan. ​ The Group has estimated a provision of $239 m (2021: $289 m) relating to the present value at 31 December 2022 of the estimated costs to resolve all other known and anticipated metal-on-metal hip claims globally. The estimated value of the provision has been determined using an actuarial model. Given the inherent uncertainty in assumptions including sensitivity to factors such as the number, outcome and value of claims the actual costs may differ significantly from this estimate. A range of expected outcomes between the 60 th and 85 th percentile generated by the actuarial model would not give rise to a material adjustment. The potential for more adverse outcomes exists and for example at the 95 th percentile a charge similar to that incurred in 2019 ( $121 m) would be required in 2023 or thereafter. The provision does not include any possible further insurance recoveries on these claims or legal fees associated with defending claims. Management considered whether there had been any changes to the number and value of claims due to Covid and to date have not identified any changes in trends. If the experience changes in the future the value of provisions may require adjustment. The legal and other provisions mainly relate to various other product liability and intellectual property litigation matters. The Group carries considerable product liability insurance, and will continue to defend claims vigorously. All provisions are expected to be substantially utilised within five years of 31 December 2022 and none are treated as financial instruments. 17.2 Contingencies The Company and its subsidiaries are party to various legal proceedings, some of which include claims for substantial damages. The outcome of these proceedings cannot readily be foreseen, but except as described herein management believes none of them is likely to result in a material adverse effect on the financial position of the Group. The Group provides for outcomes that are deemed to be probable and can be reliably estimated. There is no assurance that losses will not exceed provisions or will not have a significant impact on the Group’s results of operations in the period in which they are realised. 17.3 Legal proceedings Product liability claims The Group faces claims from time to time for alleged defects in its products and has on occasion recalled or withdrawn products from the market. Such claims are endemic to the medical device industry. The Group maintains product liability insurance subject to limits and deductibles that management believes are reasonable. All policies contain exclusions and limitations, however, and there can be no assurance that insurance will be available or adequate to cover all claims. This includes matters raising concerns about possible adverse effects of hip implant products with metal-on-metal (MoM) bearing surfaces for which the Group has incurred and will continue to incur expenses to defend claims in this area. As of December 2022, approximately 1,160 such claims were pending with the Group around the world. This includes approximately 720 cases associated with a Multidistrict Litigation (MDL) pending in Baltimore, Maryland due to a 5 April 2017 court order consolidating Smith+Nephew Birmingham Hip ◊ ◊ ◊ Through the end of 2022, entities of the Group have entered into several group, as well as individual, MoM related settlements without admitting liability. The Group requested indemnity from its product liability insurers for most of these MoM hip implant settlements and insurers have indemnified the Group to the limits of their respective applicable policies. Litigation outcomes are difficult to predict and defence costs can be significant. The Group takes care to monitor the clinical evidence relating to its products, including its metal hip implant products, to help ensure that its product offerings are designed to serve patients’ interests. ​ Group financial statements continued Notes to the Group accounts continued 17 Provisions and contingencies continued Intellectual property disputes The Group engages, as both plaintiff and defendant, in litigation with various competitors and others over claims of patent infringement and other intellectual property matters. These disputes are heard in courts in the US and other jurisdictions and also before agencies that examine patents. Outcomes are rarely certain and costs are often significant. Arthrex asserted suture anchor patents against Smith+Nephew in 2014 and 2015 in the US District Court for the Eastern District of Texas. In February 2017, the parties reached a settlement resulting in the dismissal of all patent litigation. Smith+Nephew agreed to pay additional payments contingent on the outcome of patent validity proceedings pending at the US Patent & Trademark Office. In August 2019, the Court of Appeals for the Federal Circuit affirmed US Patent & Trademark Office ruling invalidating one of the asserted Arthrex patents. In October 2019, the Court of Appeals for the Federal Circuit vacated an earlier US Patent & Trademark Office ruling invalidating the other asserted Arthrex patent. The United States Supreme Court granted certiorari. The Supreme Court ruling allowed Arthrex to petition the Director of the US Patent & Trademark Office to review the decision invalidating the second asserted Arthrex patent. The US Patent & Trademark Office declined Arthrex’s rehearing request in October 2021. In May 2022, the Court of Appeals for the Federal Circuit affirmed the US Patent & Trademark Office’s invalidity ruling and its denial of Arthrex’s rehearing request. Arthrex has petitioned the United States Supreme Court to review the US Patent & Trademark Office’s denial of Arthrex’s rehearing request. 17.4 Tax matters At any given time the Group has unagreed years outstanding in various countries and is involved in tax audits and disputes, some of which may take several years to resolve. Provisions are based on best estimates and management’s judgements concerning the likely ultimate outcome of any audit or dispute. Management considers the specific circumstances of each tax position and takes external advice, where appropriate, to assess the range of potential outcomes and estimate additional tax that may be due. The Group believes that it has made adequate provision in respect of additional tax liabilities that may arise. See Note 5 for further details.

RETIREMENT BENEFIT OBLIGATIONS

RETIREMENT BENEFIT OBLIGATIONS	12 Months Ended
	Dec. 31, 2022
RETIREMENT BENEFIT OBLIGATIONS
RETIREMENT BENEFIT OBLIGATIONS	18 Accounting policy The Group sponsors defined benefit plans in a number of countries. A defined benefit pension plan defines an amount of pension benefit that an employee will receive on retirement or a minimum guaranteed return on contributions, which is dependent on various factors such as age, years of service and final salary. The Group’s obligation is calculated separately for each plan by discounting the estimated future benefit that employees have earned in return for their service in the current and prior periods. The fair value of any plan assets is deducted to arrive at the net liability. The calculation of the defined benefit obligation is performed annually by external actuaries using the projected unit credit method. Remeasurements arising from defined benefit plans comprise actuarial gains and losses and the return on the plan assets in excess of the discount rate net of the costs of managing the plan assets. The Group recognises these immediately in other comprehensive income (OCI) and all other expenses, such as service cost, net interest cost, administration costs and taxes, are recognised in the income statement. A number of key assumptions are made when calculating the fair value of the Group’s defined benefit pension plans. These assumptions impact the balance sheet asset and liabilities, operating profit, finance income/costs and other comprehensive income. The most critical assumptions are the discount rate, the rate of inflation and mortality assumptions to be applied to future pension plan liabilities. The discount rate is based on the yield at the reporting date on bonds that have a credit rating of AA, denominated in the currency in which the benefits are expected to be paid and have a maturity profile approximately the same as the Group’s obligations. In determining these assumptions management takes into account the advice of professional external actuaries and benchmarks its assumptions against external data. The Group determines the net interest expense/income on the net defined benefit liability/asset for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit liability/asset. The Group also operates a number of defined contribution plans. A defined contribution plan is a pension plan under which the Group and employees pay fixed contributions to a third-party financial provider. The Group has no further payment obligations once the contributions have been paid. Contributions are recognised as an employee benefit expense when they are due. ​ ​ 18.1 Retirement benefit net assets/(obligations) The Group’s retirement benefit assets/(obligations) comprise: ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ $ million $ million ​ Funded plans: ​ ​ ​ UK Plan ​ 114 ​ 137 ​ US Plan ​ 24 ​ 40 ​ Other plans ​ (5) ​ (18) ​ ​ ​ 133 ​ 159 ​ Unfunded plans: ​ ​ ​ Other plans ​ (52) ​ (91) ​ Retirement healthcare ​ (10) ​ (13) ​ ​ ​ 71 ​ 55 ​ Amount recognised on the balance sheet – liability ​ (70) ​ (127) ​ Amount recognised on the balance sheet – asset ​ 141 ​ 182 ​ ​ The Group sponsors defined benefit pension plans for its employees or former employees in 14 countries and these are established under the laws of the relevant country. Funded plans are funded by the payment of contributions and the assets are held by separate trust funds or insurance companies. The provision of retirement and related benefits across the Group is kept under regular review. Employees’ retirement benefits are the subject of regular management review. The Group’s defined benefit plans provide employees with an entitlement to retirement benefits varying between 1.3% and 66.7% of final salary on attainment of retirement age. The level of entitlement is dependent on the years of service of the employee. The Group’s two major defined benefit pension plans are in the UK and US. Both these plans were closed to new employees in 2003 and defined contribution plans are offered to new joiners. The US and UK Plans were closed to future accrual in March 2014 and December 2016 respectively. The UK Plan operates under trust law and responsibility for its governance lies with a Board of Trustees. This Board is composed of representatives of the Group, plan participants and an independent trustee, who act on behalf of members in accordance with the terms of the Trust Deed and Rules and relevant legislation. The UK Plan’s assets are held by the trust. Annual increases on benefits in payment are dependent on inflation. The 2018 and 2020 court cases in relation to Guaranteed Minimum Pensions do not impact the UK Plan as members were not contracted out of the State Earnings-Related Pension Scheme (SERPS) between 1990 and 1997. The US Plan is governed by a US Pension Committee which comprises representatives of the Group. In the US, the Pension Protection Act (2006) established both a minimum required contribution and a maximum deductible contribution. Failure to contribute at least the minimum required amount will subject the Company to significant penalties, and contributions in excess of the maximum deductible have negative tax consequences. The minimum funding requirement is intended to fully fund the present value of accrued benefits In October 2022, US Pension plan members were notified that Smith & Nephew Inc. would begin the termination process for the plan. This process is expected to be finalised by late 2023 or early 2024 with no impact in 2022. There is no legislative minimum funding requirement in the UK. The Trust Deed of the UK Plan and the Plan Document of the US Plan provide the Group with a right to a refund of surplus assets assuming the full settlement of plan liabilities in the event of a plan wind-up. Furthermore, in the ordinary course of business the UK Board of Trustees and US Pension Committee have no rights to unilaterally wind up, or otherwise augment the benefits due to members of the plans. Based on these rights, any net surplus in the UK and US Plans is recognised in full. ​ Group financial statements continued Notes to the Group accounts continued 18 Retirement benefit obligations continued 18.2 Reconciliation of retirement benefit obligations and pension assets The movement in the Group’s pension benefit obligation and pension assets is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ ​ ​ ​ 2021 ​ Obligation Asset Total Obligation ​ Asset ​ Total ​ $ million $ million $ million $ million $ million $ million Amounts recognised on the balance sheet at beginning of the period (1,582) 1,637 55 (1,714) 1,684 (30) ​ Income statement expense: ​ ​ ​ ​ ​ ​ Current service cost (9) ​ – ​ (9) (12) ​ – (12) ​ Past service credit – ​ – ​ – (1) ​ – (1) ​ Settlements ​ 4 ​ (4) ​ – ​ 1 ​ (1) ​ – ​ Interest (expense)/income (29) ​ 30 ​ 1 (25) ​ 25 – ​ Administration costs and taxes (3) ​ – ​ (3) (3) ​ – (3) ​ Costs recognised in income statement (37) 26 (11) (40) 24 (16) ​ Remeasurements: ​ Actuarial (loss)/gain due to liability experience (43) ​ – ​ (43) 2 ​ – 2 ​ Actuarial gain due to financial assumptions change 503 ​ – ​ 503 43 ​ – 43 ​ Actuarial gain due to demographic assumptions 1 ​ – ​ 1 25 ​ – 25 ​ Return on plan assets (less)/greater than discount rate – ​ (431) ​ (431) – ​ 9 9 ​ Remeasurements recognised in OCI 461 (431) 30 70 9 79 ​ Cash: ​ Employer contributions – ​ 6 ​ 6 – ​ 14 14 ​ Employee contributions (3) ​ 3 ​ – (3) ​ 3 – ​ Benefits paid directly by the Group 2 ​ – ​ 2 2 ​ – 2 ​ Benefits paid, taxes and administration costs paid from scheme assets 81 ​ (83) ​ (2) 79 ​ (79) – ​ Net cash 80 (74) 6 78 (62) 16 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange movements 94 ​ (103) ​ (9) 24 ​ (18) 6 ​ Amount recognised on the balance sheet (984) 1,055 71 (1,582) 1,637 55 ​ Amount recognised on the balance sheet – liability (194) ​ 124 ​ (70) (271) ​ 144 (127) ​ Amount recognised on the balance sheet – asset (790) ​ 931 ​ 141 (1,311) ​ 1,493 182 ​ Represented by: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ ​ ​ ​ 2021 ​ Obligation Asset Total Obligation Asset Total ​ $ million $ million $ million $ million $ million $ million UK Plan ​ (438) ​ 552 ​ 114 ​ (819) ​ 956 ​ 137 ​ US Plan ​ (336) ​ 360 ​ 24 ​ (463) ​ 503 ​ 40 ​ Other Plans ​ (210) ​ 143 ​ (67) ​ (300) ​ 178 ​ (122) ​ Total ​ (984) ​ 1,055 ​ 71 ​ (1,582) ​ 1,637 ​ 55 ​ ​ The actuarial gain on obligation of $461 m primarily relates to the increase in discount rates in 2022, which is partially offset by an actuarial loss from the return on plan assets of $431 m, which is due to investment returns being less than the discount rates. All benefits are vested at the end of each reporting period. The weighted average duration of the defined benefit obligation at the end of the reporting period is 14 years and 9 years for the UK and US Plans respectively. ​ 18.3 Plan assets The market value of the US, UK and Other Plans assets are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ $ million $ million $ million UK Plan: ​ ​ ​ ​ Assets with a quoted market price: ​ ​ ​ ​ Cash and cash equivalents ​ 2 ​ 4 ​ 10 ​ Equity securities ​ 3 ​ 84 ​ 91 ​ Other bonds ​ 30 ​ 50 ​ 49 ​ Short dated credit fund ​ 81 ​ 126 ​ 127 ​ Liability driven investments ​ 225 ​ 370 ​ 347 ​ Diversified growth funds ​ 55 ​ 89 ​ 89 ​ ​ ​ 396 ​ 723 ​ 713 ​ Other assets: ​ ​ ​ ​ Insurance contract ​ 156 ​ 233 ​ 250 ​ Market value of assets ​ 552 ​ 956 ​ 963 ​ US Plan: ​ ​ ​ ​ Assets with a quoted market price: ​ ​ ​ ​ ​ Cash and cash equivalents ​ 120 ​ 6 ​ 2 ​ Equity securities ​ – ​ 50 ​ 60 ​ Government bonds – fixed interest ​ 43 ​ 201 ​ 163 ​ Corporate bonds ​ 197 ​ 246 ​ 316 ​ Market value of assets ​ 360 ​ 503 ​ 541 ​ Other Plans: ​ ​ ​ ​ Assets with a quoted market price: ​ ​ ​ ​ ​ Cash and cash equivalents ​ 7 ​ 5 ​ 5 ​ Equity securities ​ 49 ​ 55 ​ 51 ​ Government bonds – fixed interest ​ 7 ​ 5 ​ 9 ​ Government bonds – index linked ​ – ​ 4 ​ 4 ​ Corporate and other bonds ​ 10 ​ 11 ​ 10 ​ Insurance contracts ​ 21 ​ 33 ​ 37 ​ Property ​ 22 ​ 23 ​ 23 ​ Other quoted securities ​ 5 ​ 8 ​ 5 ​ ​ ​ 121 ​ 144 ​ 144 ​ Other assets: ​ ​ ​ ​ Insurance contracts ​ 22 ​ 34 ​ 36 ​ Market value of assets ​ 143 ​ 178 ​ 180 ​ Total market value of assets ​ 1,055 ​ 1,637 ​ 1,684 ​ ​ ​ Group financial statements continued Notes to the Group accounts continued 18 Retirement benefit obligations continued No plans invest directly in property occupied by the Group or in financial securities issued by the Group. Both the UK and US Plans hold predominantly matching assets. The growth assets of the UK and US Plans are invested in a diversified range of industries across a broad range of geographies. The UK Plan matching assets include liability matching assets and annuity policies purchased by the trustees, which aim to match the benefits to be paid to certain members from the plan and therefore remove the investment, inflation and demographic risks in relation to those liabilities. The terms of the policy define that the contract value exactly matches the amount and timing of the pensioner obligations covered by the contract. In accordance with IAS 19R Employee Benefits , the fair value of the insurance contract is deemed to be the present value of the related obligations which is discounted at the AA corporate bond rate. There has been no material change in the Pension Plans’ investment strategies. 18.4 Expenses recognised in the income statement The total expense relating to retirement benefits recognised for the year is $88m (2021: $93m, 2020: $78m). Of this cost recognised for the year, $77m (2021: $77m, 2020: $69m) relates to defined contribution plans and $11m (2021: $16m, 2020: $9m) relates to defined benefit plans. The cost charged in respect of the Group’s defined contribution plans represents contributions payable to these plans by the Group at rates specified in the rules of the plans. These were charged to operating profit in costs of goods sold, selling, general and administrative expenses, and research and development expenses. There were $nil outstanding payments as at 31 December 2022 due to be paid over to the plans (2021: $nil $nil Defined benefit plan costs comprise service cost which is charged to operating profit in selling, general and administrative expenses and net interest cost and administration costs and taxes which are reported as other finance costs. The defined benefit pension costs charged for the UK and US 2021 $nil 2020 18.5 Principal actuarial assumptions The following are the principal financial actuarial assumptions used at the reporting date to determine the UK and US defined benefit obligations and expense. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ % per annum % per annum % per annum UK Plan: ​ ​ ​ ​ Discount rate ​ 4.8 ​ 1.9 ​ 1.3 ​ Future salary increases ​ n/a ​ n/a ​ n/a ​ Future pension increases ​ 3.3 ​ 3.4 ​ 2.9 ​ Inflation (RPI) ​ 3.3 ​ 3.4 ​ 2.9 ​ Inflation (CPI) ​ 2.3 ​ 2.7 ​ 2.1 ​ US Plan: ​ ​ ​ ​ ​ ​ ​ Discount rate ​ 5.3 ​ 2.7 ​ 2.4 ​ Future salary increases ​ n/a ​ n/a ​ n/a ​ Inflation ​ n/a ​ n/a ​ n/a ​ ​ ​ Actuarial assumptions regarding future mortality are based on mortality tables. The UK uses the S3NA with projections in line with the CMI 2021 table and the US uses the PRI-2012 table with MP-2021 scale. The Directors have considered the impact of the Covid pandemic and, at the present time, do not believe that there is sufficient evidence to require a change in the long-term mortality assumptions. The Directors will continue to monitor any potential future impact on the mortality assumptions used. The current longevities underlying the values of the obligations in the defined benefit plans are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ years years years Life expectancy at age 60 ​ ​ ​ ​ UK Plan: ​ ​ ​ ​ Males ​ 27.4 ​ 27.6 ​ 27.6 ​ Females ​ 30.1 ​ 30.1 ​ 30.1 ​ US Plan: ​ ​ ​ ​ ​ ​ ​ Males ​ 24.9 ​ 24.7 ​ 24.7 ​ Females ​ 27.1 ​ 26.8 ​ 26.8 ​ Life expectancy at age 60 in 20 years’ time ​ ​ ​ ​ UK Plan: ​ ​ ​ ​ Males ​ 28.9 ​ 29.1 ​ 29.1 ​ Females ​ 31.5 ​ 31.5 ​ 31.5 ​ US Plan: ​ ​ ​ ​ ​ ​ ​ Males ​ 24.9 ​ 24.6 ​ 24.6 ​ Females ​ 27.6 ​ 27.3 ​ 27.3 ​ ​ 18.6 Sensitivity analysis The calculation of the defined benefit obligation is sensitive to the assumptions used. The following table summarises the increase/ decrease on the UK and US defined benefit obligation and pension costs as a result of reasonably possible changes in some of the assumptions while holding all other assumptions consistent. The sensitivity to the inflation assumption change includes corresponding changes to the future pension increase assumptions. The analysis does not take into account the full distribution of cash flows expected under the plan. Changes to the inflation assumption will not have any effect on the US Pension Plan as it was closed to future accrual in 2014 and it has no other inflation-linked assumptions. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase in pension obligation ​ Increase in pension cost $ million +50bps/+1yr -50bps/-1yr +50bps/+1 yr -50bps/-1yr UK Plan: ​ ​ ​ ​ ​ ​ ​ ​ Discount rate (29.0) ​ 32.0 ​ (1.0) ​ 2.0 ​ Inflation 29.0 ​ (27.0) ​ 2.0 ​ – ​ Mortality 16.0 ​ (17.0) ​ 1.0 ​ – ​ US Plan: ​ ​ ​ ​ ​ ​ ​ ​ Discount rate (14.0) ​ 14.0 ​ – ​ – ​ Mortality 8.0 ​ (8.0) ​ – ​ – ​ ​ ​ Group financial statements continued Notes to the Group accounts continued 18 Retirement benefit obligations continued 18.7 Risk The pension plans expose the Group to the following risks: Interest rate risk Volatility in financial markets can change the calculations of the obligation significantly as the calculation of the obligation is linked to yields on AA rated corporate bonds. A decrease in the bond yield will increase the measure of plan liabilities, although this will be partially offset by increases in the value of matching plan assets such as bonds and insurance contracts. In the UK, the liability matching portfolio held in conventional and index-linked gilts was transferred into liability driven investments in order to reduce interest rate risk. Inflation risk The UK Plan is linked to inflation. A high rate of inflation will lead to a higher liability. This risk is managed by holding inflation-linked bonds and an inflation-linked insurance contract in respect of some of the obligation. In the UK, the liability matching portfolio held in conventional and index-linked gilts was transferred into liability driven investments in order to reduce inflation risk. The UK Plan is closed to future accrual which reduces the exposure to this risk. The US Plan is also closed to future accrual and has no other inflation-linkage thus eliminating the exposure to this risk. Investment risk If the return on plan assets is below the discount rate, all else being equal, there will be an increase in the plan deficit. In the UK, this risk is partially managed by a portfolio of liability matching assets and a bulk annuity, together with a dynamic de-risking policy to switch growth assets into liability matching assets over time. The US Plan has a dynamic de-risking policy to shift plan assets from return-seeking (growth) assets to liability matching assets over time. The US Pension Plan has an established glide path that is designed to stabilise funding status by reducing the plan’s exposure to return-seeking assets. Longevity risk The present value of the plan’s defined benefit liability is calculated by reference to the best estimate of the mortality of the plan participants both during and after their employment. An increase in the life expectancy of plan participants above that assumed will increase the benefit obligation. The UK Plan, in order to minimise longevity risk, has entered into an insurance contract which covers a portion of pensioner obligations. ​ 18.8 Funding A full valuation is performed by actuaries for the Trustees/Pension Committee of each plan to determine the level of funding required. Employer contribution rates, based on these full valuations, are agreed between the Trustees/Pension Committee of each plan and the Group. The assumptions used in the actuarial valuations used for funding purposes may differ from the accounting assumptions set out above. UK Plan The most recent full actuarial valuation of the UK Plan was undertaken as at 30 September 2020. Future accruals to the UK Plan ceased as at 31 December 2016. Contributions to the UK Plan in 2022 were $nil (2021: $7m, 2020: $nil). This included supplementary payments of $nil (2021: $7m, 2020: $nil). Following the completion of the 30 September 2020 valuation, a dynamic contribution mechanism was agreed. Under that dynamic contribution mechanism, no further contributions were required in 2021 or 2022. US Plan The most recent full actuarial valuation of the US Plan was undertaken as at 1 January 2022. The next full actuarial valuation will take place as at 1 January 2023. Future accruals to the US Plan ceased as at 31 March 2014. Contributions to the US Plan were $nil (2021: $nil, 2020: $nil) which represented supplementary payments of $nil (2021: $nil, 2020: $nil). There are no planned supplementary contributions to the US Plan for 2023. ​

EQUITY

EQUITY	12 Months Ended
	Dec. 31, 2022
EQUITY.
EQUITY	19 Accounting policy Incremental costs directly attributable to the issue of ordinary shares, net of any tax effects, are recognised as a deduction from equity. When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity and the resulting surplus or deficit on the transaction is presented within share premium. 19.1 Share capital ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ordinary shares (20¢) ​ Deferred shares (£1.00) ​ Total ​ Thousand $ million Thousand $ million $ million Authorised ​ ​ ​ ​ ​ ​ At 31 December 2020 ​ 1,223,591 ​ 245 ​ 50 ​ – ​ 245 ​ At 31 December 2021 ​ 1,223,591 ​ 245 ​ 50 ​ – ​ 245 ​ At 31 December 2022 ​ 1,223,591 ​ 245 ​ 50 ​ – ​ 245 ​ Allotted, issued and fully paid ​ ​ ​ ​ ​ ​ At 1 January 2020 ​ 885,207 ​ 177 ​ 50 ​ – ​ 177 ​ Share options ​ 327 ​ – ​ – ​ – ​ – ​ Shares cancelled ​ (649) ​ – ​ – ​ – ​ – ​ At 31 December 2020 ​ 884,885 ​ 177 ​ 50 ​ – ​ 177 ​ Share options ​ 306 ​ – ​ – ​ – ​ – ​ At 31 December 2021 ​ 885,191 ​ 177 ​ 50 ​ – ​ 177 ​ Share options ​ 229 ​ – ​ – ​ – ​ – ​ Shares cancelled ​ (7,770) ​ (2) ​ – ​ – ​ (2) ​ At 31 December 2022 ​ 877,650 ​ 175 ​ 50 ​ – ​ 175 ​ ​ The deferred shares were issued in 2006 in order to comply with English Company law. They are not listed on any stock exchange and have extremely limited rights and effectively have no value. These rights are summarised as follows: - The holder shall not be entitled to participate in the profits of the Company; - The holder shall not have any right to participate in any distribution of the Company’s assets on a winding-up or other distribution except that after the return of the nominal amount paid up on each share in the capital of the Company of any class other than the deferred shares and the distribution of a further $1,000 in respect of each such share there shall be distributed to a holder of a deferred share (for each deferred share held) an amount equal to the nominal value of the deferred share; - The holder shall not be entitled to receive notice, attend, speak or vote at any general meeting of the Company; and - The Company may create, allot and issue further shares or reduce or repay the whole or any part of its share capital or other capital reserves without obtaining the consent of the holders of the deferred shares. The Group’s objectives when managing capital are to ensure the Group has adequate funds to continue as a going concern and sufficient flexibility within the capital structure to fund the ongoing growth of the business and to take advantage of business development opportunities including acquisitions. The Group determines the amount of capital taking into account changes in business risks and future cash requirements. The Group reviews its capital structure on an ongoing basis and uses share buy-backs, dividends and the issue of new shares to adjust the retained capital. ​ Group financial statements continued Notes to the Group accounts continued 19 continued The Group considers the capital that it manages to be as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ $ million $ million $ million Share capital ​ 175 ​ 177 ​ 177 ​ Share premium ​ 615 ​ 614 ​ 612 ​ Capital redemption reserve ​ 20 ​ 18 ​ 18 ​ Treasury shares ​ (118) ​ (120) ​ (157) ​ Retained earnings and other reserves ​ 4,567 ​ 4,879 ​ 4,629 ​ ​ ​ 5,259 ​ 5,568 ​ 5,279 ​ ​ 19.2 Treasury shares Treasury shares represent the holding of the Company’s own shares in respect of the Smith & Nephew Employees’ Share Trust and shares bought back as part of the share buy-back programme. In 2022, the Group purchased a total of 10.1m shares (2021: nil shares) for a cost of $158m (2021: $nil). The Smith & Nephew 2004 Employees’ Share Trust (Trust) was established to hold shares relating to long-term incentive plans. The Trust is administered by an independent professional trust company resident in Jersey and is funded by a loan from the Company. The cost of the Trust is charged to the income statement as it accrues. A dividend waiver is in place in respect of those shares held under the long-term incentive plans. The Trust only accepts dividends in respect of nil-cost options and deferred bonus plan shares. The waiver represents less than 1% of the total dividends paid. The movements in Treasury shares and the Employees’ Share Trust are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employees’ ​ ​ ​ ​ Treasury ​ Share Trust ​ Total ​ $ million $ million $ million At 1 January 2021 ​ 136 ​ 21 ​ 157 ​ Shares transferred from treasury ​ (30) ​ 30 ​ – ​ Shares transferred to Group beneficiaries ​ (13) ​ (24) ​ (37) ​ At 31 December 2021 ​ 93 ​ 27 ​ 120 ​ Shares purchased ​ 150 ​ 8 ​ 158 ​ Shares transferred from treasury ​ (41) ​ 41 ​ – ​ Shares transferred to Group beneficiaries ​ (6) ​ (25) ​ (31) ​ Shares cancelled ​ (129) ​ – ​ (129) ​ At 31 December 2022 ​ 67 ​ 51 ​ 118 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employees’ ​ ​ ​ ​ Treasury ​ Share Trust ​ Total ​ ​ ​ Number ​ Number ​ Number ​ ​ ​ of shares ​ of shares ​ of shares ​ million million million At 1 January 2021 ​ 7.9 ​ 1.2 ​ 9.1 ​ Shares transferred from treasury ​ (1.7) ​ 1.7 ​ – ​ Shares transferred to Group beneficiaries ​ (0.8) ​ (1.3) ​ (2.1) ​ At 31 December 2021 ​ 5.4 ​ 1.6 ​ 7.0 ​ Shares purchased ​ 9.7 ​ 0.4 ​ 10.1 ​ Shares transferred from treasury ​ (2.6) ​ 2.6 ​ – ​ Shares transferred to Group beneficiaries ​ (0.4) ​ (1.4) ​ (1.8) ​ Shares cancelled ​ (7.8) ​ – ​ (7.8) ​ At 31 December 2022 ​ 4.3 ​ 3.2 ​ 7.5 ​ ​ ​ 19.3 Dividends ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ $ million $ million $ million The following dividends were declared and paid in the year: ​ ​ ​ ​ Ordinary final of 23.1¢ for 2021 (2020: 23.1¢, 2019: 23.1¢) paid 11 May 2022 ​ 202 ​ 203 ​ 202 ​ Ordinary interim of 14.4¢ for 2022 (2021: 14.4¢, 2020: 14.4¢) paid 26 October 2022 ​ 125 ​ 126 ​ 126 ​ ​ ​ 327 ​ 329 ​ 328 ​ ​ A final dividend for 2022 of 23.1 US cents per ordinary share was proposed by the Board on 21 February 2023 and will be paid, subject to shareholder approval, on 17 May 2023 to shareholders on the Register of Members on 31 March 2023. The estimated amount of this dividend is $201 m. The Group pursues a progressive dividend policy, with the aim of increasing the US Dollar value of ordinary dividends over time broadly based on the Group’s underlying growth in earnings, while taking into account capital requirements and cash flows. Future dividends will be dependent upon future earnings, the future financial condition of the Group and the Board’s dividend policy. The Board reviews the appropriate level of total annual dividend each year at the time of the full year results. Smith & Nephew plc, the Parent Company of the Group, is a non-trading investment holding company which derives its distributable reserves from dividends paid by subsidiary companies. The distributable reserves of the Parent Company approximate to the balance on the profit and loss account reserve, less treasury shares and exchange reserves, which at 31 December 2022 amounted to $3,563 m.

CASH FLOW STATEMENT

CASH FLOW STATEMENT	12 Months Ended
	Dec. 31, 2022
CASH FLOW STATEMENT
CASH FLOW STATEMENT	20 Accounting policy In the Group cash flow statement, cash and cash equivalents includes cash at bank, other short-term liquid investments with original maturities of three months or less and bank overdrafts. In the Group balance sheet, bank overdrafts are shown within bank overdrafts, borrowings, loans and lease liabilities under current liabilities. Analysis of net debt including lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Borrowings ​ ​ ​ ​ Cash ​ Overdrafts ​ Due within one year ​ Due after one year ​ Net currency swaps ​ Net interest swaps ​ Total ​ $ million $ million $ million $ million $ million $ million $ million At 1 January 2020 277 (20) (6) (1,851) – – (1,600) ​ IFRS 16 lease liabilities ​ – ​ – ​ (46) ​ (124) ​ – ​ – ​ (170) ​ Net debt including lease ​ 277 ​ (20) ​ (52) ​ (1,975) ​ – ​ – ​ (1,770) ​ Net cash flow/debt movement 1,484 ​ 9 ​ (260) ​ (1,285) ​ (7) ​ – (59) ​ Exchange adjustment 1 ​ – ​ (2) ​ (79) ​ 7 ​ 2 (71) ​ Corporate bond issuance expense ​ – ​ – ​ – ​ 8 ​ – ​ – ​ 8 ​ IFRS 16 lease liabilities movement – ​ – ​ (12) ​ (22) ​ – ​ – ​ (34) ​ At 31 December 2020 1,762 (11) (326) (3,353) – 2 (1,926) ​ Net cash flow/debt movement (466) ​ 7 ​ (162) ​ 429 ​ 4 ​ – (188) ​ Exchange adjustment ​ (6) ​ (1) ​ – ​ 72 ​ (4) ​ (2) ​ 59 ​ Corporate bond issuance expense ​ – ​ – ​ – ​ (1) ​ – ​ – ​ (1) ​ IFRS 16 lease liabilities movement – ​ – ​ 2 ​ 5 ​ – ​ – 7 ​ At 31 December 2021 1,290 (5) (486) (2,848) – – (2,049) ​ Net cash flow/debt movement (931) ​ 1 ​ 302 ​ 94 ​ (3) ​ – (537) ​ Exchange adjustment (9) ​ (2) ​ 23 ​ 45 ​ 3 ​ (13) 47 ​ Corporate bond issuance expense – ​ – ​ – ​ 3 ​ – ​ – ​ 3 ​ IFRS 16 lease liabilities movement ​ – ​ – ​ 7 ​ (6) ​ – ​ – ​ 1 ​ Net debt including lease liabilities at 31 December 2022 350 (6) (154) (2,712) – (13) (2,535) ​ ​ ​ Group financial statements continued Notes to the Group accounts continued 20 continued Reconciliation of net cash flow to movement in net debt including lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ $ million $ million $ million Net cash flow from cash net of overdrafts ​ (930) ​ (459) ​ 1,493 ​ Settlement of currency swaps ​ (3) ​ 4 ​ (7) ​ Net cash flow from borrowings ​ 396 ​ 267 ​ (1,545) ​ Change in net debt from net cash flow ​ (537) ​ (188) ​ (59) ​ IFRS 16 lease liabilities ​ 1 ​ 7 ​ (34) ​ Exchange adjustment ​ 47 ​ 59 ​ (71) ​ Corporate bond issuance expense ​ 3 ​ (1) ​ 8 ​ Change in net debt in the year ​ (486) ​ (123) ​ (156) ​ Opening net debt ​ (2,049) ​ (1,926) ​ (1,770) ​ Closing net debt ​ (2,535) ​ (2,049) ​ (1,926) ​ ​ Cash and cash equivalents For the purposes of the Group cash flow statement, cash and cash equivalents at 31 December 2022 comprise cash at bank net of bank overdrafts. ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ $ million $ million $ million Cash at bank ​ 350 ​ 1,290 ​ 1,762 ​ Bank overdrafts ​ (6) ​ (5) ​ (11) ​ Cash and cash equivalents ​ 344 ​ 1,285 ​ 1,751 ​ The Group operates in over 100 countries around the world, some of which impose restrictions over cash movement. These restrictions have only a minimal impact of the management on the Group’s cash. Cash outflows/(inflows) arising from financing activities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Repayment ​ Borrowing ​ Proceeds from ​ Repayment ​ Cash outflow/ ​ ​ ​ ​ ​ Proceeds from own ​ ​ ​ of bank of bank Corporate of lease (inflow) ​ Purchase of shares/issue of ​ ​ ​ loans 1 ​ loans 1 ​ Bond issue ​ liabilities ​ from other ​ Dividends ​ own shares ​ ordinary shares ​ Total 2022 ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million Debt ​ 881 ​ – ​ (485) ​ 54 ​ (3) ​ – ​ – ​ – ​ 447 Equity – ​ – ​ – ​ – ​ – ​ 327 ​ 158 ​ (6) 479 Total 881 – (485) 54 (3) 327 158 (6) 926 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 Debt ​ 267 ​ – ​ – ​ 59 ​ 4 ​ – ​ – ​ – ​ 330 Equity ​ – ​ – ​ – ​ – ​ – ​ 329 ​ – ​ (14) 315 Total ​ 267 ​ – ​ – ​ 59 ​ 4 ​ 329 ​ – ​ (14) 645 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 Debt ​ 405 ​ (950) ​ (1,000) ​ 55 ​ (7) ​ – ​ – ​ – ​ (1,497) Equity – ​ – ​ – ​ – ​ – ​ 328 ​ 16 ​ (11) ​ 333 Total 405 ​ (950) ​ (1,000) ​ 55 ​ (7) ​ 328 ​ 16 ​ (11) ​ (1,164) 1 This includes drawdown and repayment of the syndicated revolving credit facility.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2022
ACQUISITIONS
ACQUISITIONS	21 Accounting policy The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in the acquisition is measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in profit or loss. Year ended 31 December 2022 On 18 January 2022, the Group completed the acquisition of 100% of the share capital of Engage Uni, LLC (doing business as Engage Surgical), owner of the only cementless unicompartmental (partial) knee system commercially available in the US. This acquisition strongly supports Smith+Nephew’s Strategy for Growth by transforming our business through innovation and acquisition, while also providing differentiation for our customers. The maximum consideration, all payable in cash, is $135 million and the provisional fair value consideration is $131 million and includes $32 million of contingent consideration. The goodwill represents the control premium, the acquired workforce and the synergies expected from integrating Engage Surgical into the Group’s existing business. The majority of the consideration is expected to be deductible for tax purposes. The fair value of assets acquired and liabilities assumed are set out below: ​ ​ ​ ​ ​ Engage Surgical ​ $ million Intangible assets – Product-related ​ 44 Property, plant and equipment ​ 2 Inventory ​ 2 Trade and other payables ​ (1) Net assets ​ 47 Goodwill ​ 84 Consideration (net of $nil cash acquired) ​ 131 ​ The product-related intangible assets were valued using a relief-from-royalty methodology with the key inputs being revenue, profit and discount rate. The cash outflow from acquisitions of $113 m (2021: $285 m) comprises payments of consideration of $89 m (2021: $236 m) relating to acquisitions in the current year and payments of deferred and contingent consideration of $24 m (2021: $49 m) relating to acquisitions completed in prior years. The carrying value of goodwill increased from $2,989 m at 31 December 2021 to $3,031 m at 31 December 2022. The acquisition in the year ended 31 December 2022 increased goodwill by $84 m, this was partially offset by foreign exchange movements of $42 m. For the year ended 31 December 2022, the contribution from Engage Surgical to revenue and to profit was immaterial. If the business combination had occurred at the beginning of the year the contribution to revenue and profit would not have been materially different. ​ Group financial statements continued Notes to the Group accounts continued 21 Acquisitions continued Year ended 31 December 2021 On 4 January 2021, the Group completed the acquisition of the Extremity Orthopaedics business of Integra LifeSciences Holdings Corporation (‘Extremity Orthopaedics’). The acquisition significantly strengthens the Group’s extremities business by adding a combination of a focused sales channel, complementary shoulder replacement and upper and lower extremities portfolio, and a new product pipeline. The transaction comprised the acquisition of the entire issued share capital of two wholly owned US subsidiaries of Integra LifeSciences Holdings Corporation group and certain assets of the Extremity Orthopaedics business held both in and outside the US. The maximum consideration is $240 m and the fair value of consideration is $236 m and includes no deferred or contingent consideration. The goodwill represents the control premium, the acquired workforce and the synergies expected from integrating Extremity Orthopaedics into the Group’s existing business, and is expected to be partly deductible for tax purposes. The fair value of assets acquired and liabilities assumed are set out below: ​ ​ ​ ​ ​ Extremity Orthopaedics ​ ​ $ million Intangible assets – Product-related ​ 101 Intangible assets – Customer-related ​ 11 Property, plant and equipment ​ 22 Inventory ​ 41 Other payables ​ (23) Net deferred tax asset ​ (12) Net assets ​ 140 Goodwill ​ 96 Consideration (net of $nil cash acquired) ​ 236 ​ The product-related intangible assets were valued using an excess earnings methodology with the key inputs being revenue, profit and discount rate. The cash outflow from acquisitions of $285 m (2020: $170 m) comprises payments of consideration of $236 m (2020: $117 m) relating to the acquisition which completed in the current year and payments of deferred and contingent consideration of $49 m (2020: $53 m) relating to acquisitions completed in prior years. The carrying value of goodwill increased from $2,928 m at 31 December 2020 to $2,989 m at 31 December 2021. The acquisition in the year ended 31 December 2021 increased goodwill by $96 m, this was partially offset by foreign exchange movements of $35 m. For the year ended 31 December 2021, the contribution from Extremity Orthopaedics to revenue was $82 m and to profit was immaterial. If the business combination had occurred at the beginning of the year the contribution to revenue and profit would not have been materially different. ​ Year ended 31 December 2020 On 23 January 2020, the Group completed the acquisition of 100% of the share capital of Tusker Medical Inc. (‘Tusker’), a developer of an innovative in-office solution for tympanostomy (ear tubes) called Tula. The acquisition was deemed to be a business combination within the scope of IFRS 3 Business Combinations. The acquisition supports the Group’s strategy to invest in innovative technologies that address unmet clinical needs. The maximum consideration is $140 m and the fair value of consideration is $139 m and includes $6 m of deferred consideration and $35 m of contingent consideration. The goodwill represents the control premium, the acquired workforce and the synergies expected from integrating Tusker into the Group’s existing business, and is not expected to be deductible for tax purposes. The acquisition accounting was completed in 2021 with no adjustments to the fair value disclosed in the Group's 2020 Annual Report. For the year ended 31 December 2020, the contribution to revenue and profit from Tusker was immaterial. If the business combination had occurred at the beginning of the year, the contribution to revenue and profit would also have been immaterial. ​ The fair values of assets acquired and liabilities assumed are set out below: ​ ​ ​ ​ ​ ​ Tusker ​ ​ ​ $ million ​ Intangible assets – Product-related ​ 53 ​ Property, plant and equipment ​ 6 ​ Other receivables ​ 1 ​ Trade and other payables ​ (6) ​ Non-current liabilities ​ (3) ​ Net deferred tax asset ​ 5 ​ Net assets ​ 56 ​ Goodwill ​ 83 ​ Consideration (net of $nil cash acquired) ​ 139 ​ ​ During the year ended 31 December 2020, the Group also completed two other smaller acquisitions in the spheres of remote physical therapy and arthroscopic enabling technology. The maximum aggregated consideration is $41 m and the fair value of consideration is $26 m and includes $3 m of deferred consideration and $17 m of contingent consideration. The fair value of aggregate assets acquired is: intangible assets of $8 m, property and other net assets of $2 m. The goodwill arising on these acquisitions is $16 m, which is not expected to be deductible for tax purposes, and is attributable to future iterations of the technologies and the synergies that can be expected from integrating these acquisitions into the Group’s existing business. For the year ended 31 December 2020, the contribution to revenue and profit from the business combinations was immaterial. If the business combinations had occurred at the beginning of the year, the contribution to revenue and profit would have been immaterial.

OTHER NOTES TO THE ACCOUNTS

OTHER NOTES TO THE ACCOUNTS	12 Months Ended
	Dec. 31, 2022
OTHER NOTES TO THE ACCOUNTS
OTHER NOTES TO THE ACCOUNTS	Group financial statements continued Notes to the Group accounts continued 22 Other notes to the accounts 22.1 Share-based payments Accounting policy The Group operates a number of equity-settled executive and employee share plans. For all grants of share options and awards, the fair value at the grant date is calculated using appropriate option pricing models. The grant date fair value is recognised over the vesting period as an expense, with a corresponding increase in retained earnings. The Group operates the following equity-settled executive and employee share plans: Smith & Nephew Global Share Plan 2010, Smith & Nephew Global Share Plan 2020, Smith & Nephew ShareSave Plan (2012) and Smith & Nephew International ShareSave Plan (2012). At 31 December 2022, 5,202,000 options (2021: 4,472,000, 2020: 4,582,000) were outstanding with a range of exercise prices from 843 to 1,541 pence. At 31 December 2022, the maximum number of shares that could be awarded under the Group’s long-term incentive plans was 7,371,000 (2021: 5,997,000, 2020: 4,704,000). These include conditional share awards granted to senior employees and equity and performance share awards granted to senior executives under the Global Share Plan 2010 and Global Share Plan 2020. The expense charged to the income statement for share-based payments for the year is $40m (2021: $41m, 2020: $26m). 22.2 Related party transactions Trading transactions In the course of normal operations, the Group traded with its associates detailed in Note 11. The aggregated transactions, which have not been disclosed elsewhere in the financial statements are $nil $nil $nil Key management personnel The remuneration of Executive Officers (including Non-Executive Directors) during the year is summarised below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ $ million $ million $ million Short-term employee benefits ​ 17 ​ 16 ​ 12 ​ Share-based payments expense ​ 10 ​ 7 ​ 5 ​ Pension and post-employment benefit entitlements ​ 2 ​ 1 ​ 2 ​ ​ ​ 29 ​ 24 ​ 19 ​ ​ ​ Retirement benefit schemes Details of the Group’s retirement benefit schemes are set out in Note 18.

POST BALANCE SHEET EVENTS

POST BALANCE SHEET EVENTS	12 Months Ended
	Dec. 31, 2022
POST BALANCE SHEET EVENTS
POST BALANCE SHEET EVENTS	23 Post balance sheet events There have been no events between the balance sheet date, and the date on which the financial statements were approved by the Board, which would require adjustment to the financial statements or any additional disclosures ​

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies
BASIS OF PRESENTATION	1 Smith & Nephew plc (the “Company”) is a public limited company incorporated in England and Wales. In these accounts, the ‘Group’ means the Company and all its subsidiaries. The principal activities of the Group are to develop, manufacture, market and sell medical devices and services. The Group has prepared its accounts in accordance with UK-adopted International Accounting Standards. The Group has also prepared its accounts in accordance with IFRS as issued by the International Accounting Standards Board (IASB) effective as at 31 December 2022. IFRS as adopted in the UK differs in certain respects from IFRS as issued by the IASB. However, the differences have no impact for the periods presented. The preparation of accounts in conformity with IFRS requires management to use estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the accounts and the reported amounts of revenues and expenses during the year. The accounting policies requiring management to use significant estimates and assumptions are: inventories, liability provisions and impairment. These are discussed in Note 1.2 below. Although these estimates are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively. The uncertainties as to the future impact on the financial performance and cash flows of the Group as a result of the current challenging economic environment have been considered as part of the Group’s adoption of the going concern basis in these financial statements, in which context the Directors reviewed cash flow forecasts prepared for a period of at least 12 months from the date of approval of these financial statements. Having carefully reviewed those forecasts, the Directors concluded that it was appropriate to adopt the going concern basis of accounting in preparing these financial statements for the reasons set out below. The Group had access to $344 m of cash and cash equivalents at 31 December 2022. The Group’s net debt, excluding lease liabilities, at 31 December 2022 was $2,339 m with access to committed facilities of $3.7 bn with an average maturity of 5.1 years. At the date of approving these financial statements, the funding position of the Group has remained unchanged and the cash position is not materially different. The Group has $105 m of private placement debt due for repayment in 2023. $1,160 m of private placement debt is subject to financial covenants. The principal covenant on the private placement debt is a leverage ratio of < 3.5 which is measured on a rolling 12-month basis at half year and year end. There are no financial covenants in any of the Group’s other facilities. The Directors have considered various scenarios in assessing the impact of the economic environment on future financial performance and cash flows, with the key judgement applied being the speed and sustainability of the return to a normal volume of elective procedures in key markets, including the impact of a significant global economic recession, leading to lower healthcare spending across both public and private systems. Throughout these scenarios, which include a severe but plausible outcome, the Group continues to have headroom on its borrowing facilities and financial covenants. The Directors have a reasonable expectation that the Company and the Group are well placed to manage their business risks, have sufficient funds to continue to meet their liabilities as they fall due and to continue in operational existence for a period of at least 12 months from the date of the approval of these financial statements. The financial statements have therefore been prepared on a going concern basis. Accordingly, the Directors continue to adopt the going concern basis (in accordance with the guidance ‘Guidance on Risk Management, Internal Control and Related Financial and Business Reporting’ issued by the FRC) in preparing these financial statements.
NEW ACCOUNTING STANDARDS	New accounting standards effective 2022 A number of new amendments to standards are effective from 1 January 2022 but they do not have a material effect on the Group’s financial statements. Accounting standards issued but not yet effective A number of new standards and amendments to standards are effective for annual periods beginning after 1 January 2022 and earlier application is permitted; however, the Group has not early adopted them in preparing these financial statements.
CONSOLIDATION	1.1 Consolidation The Group accounts include the accounts of Smith & Nephew plc and its subsidiaries for the periods during which they were members of the Group. Subsidiaries are entities controlled by the Group. 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 over the entity. Subsidiaries are consolidated in the Group accounts from the date that the Group obtains control and continue to be consolidated until the date that such control ceases. Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated on consolidation. All subsidiaries have year ends which are coterminous with the Group’s, with the exception of jurisdictions whereby a different year end is required by local legislation. When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary and any related components of equity. Any resulting gain or loss is recognised in profit or loss. Any retained interest in the former subsidiary is measured at fair value.
FOREIGN CURRENCIES	The exchange rates used for the translation of currencies into US Dollars that have the most significant impact on the Group results were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 Average rates ​ ​ ​ ​ Sterling ​ 1.23 ​ 1.38 ​ 1.28 ​ Euro ​ 1.05 ​ 1.18 ​ 1.14 ​ Swiss Franc ​ 1.05 ​ 1.09 ​ 1.07 ​ Year end rates ​ ​ ​ ​ ​ ​ ​ Sterling ​ 1.21 ​ 1.35 ​ 1.37 ​ Euro ​ 1.07 ​ 1.13 ​ 1.23 ​ Swiss Franc ​ 1.08 ​ 1.10 ​ 1.14 ​
REVENUE	Revenue is recognised as the performance obligations to deliver products or services are satisfied and is recorded based on the amount of consideration expected to be received in exchange for satisfying the performance obligations. Revenue is recognised primarily when control is transferred to the customer, which is generally when the goods are shipped or delivered in accordance with the contract terms, with some transfer of services taking place over time. Substantially all performance obligations are fulfilled within one year. There is no significant revenue associated with the provision of services. Payment terms to our customers are based on commercially reasonable terms for the respective markets while also considering a customer’s credit rating. Appropriate provisions for returns, trade discounts and rebates are deducted from revenue. Rebates primarily comprise chargebacks and other discounts granted to certain customers. Chargebacks are discounts that occur when a third-party purchases product from a wholesaler at its agreed price plus a mark-up. The wholesaler in turn charges the Group for the difference between the price initially paid by the wholesaler and the agreed price. The provision for chargebacks is based on expected sell-through levels by the Group’s wholesalers to such customers, as well as estimated wholesaler inventory levels. Orthopaedics and Sports Medicine & ENT (Ear, Nose & Throat) Orthopaedics and Sports Medicine & ENT consists of the following businesses: Knee Implants, Hip Implants, Other Reconstruction, Trauma & Extremities, Sports Medicine Joint Repair, Arthroscopic Enabling Technologies and ENT. Sales of inventory located at customer premises and available for customers’ immediate use are recognised when notification is received that the product has been implanted or used. Substantially all other revenue is recognised when control is transferred to the customer, which is generally when the goods are shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount of consideration expected to be received in exchange for transferring the products or services. In general our business in Established Markets is direct to hospitals and ambulatory surgery centers whereas in the Emerging Markets we generally sell through distributors. Advanced Wound Management Advanced Wound Management consists of the following businesses: Advanced Wound Care, Advanced Wound Bioactives and Advanced Wound Devices. Substantially all revenue is recognised when control is transferred to the customer, which is generally when the goods are shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount of consideration expected to be received in exchange for transferring the products or services. Appropriate provisions for returns, trade discounts and rebates are deducted from revenue, as explained above. The majority of our Advanced Wound Management business, and in particular products used in community and homecare facilities, is through wholesalers and distributors. When control is transferred to a wholesaler or distributor, revenue is recognised accordingly. The proportion of sales direct to hospitals is higher in our Advanced Wound Devices business in Established Markets.
TAXATION	The charge for current taxation is based on the results for the year as adjusted for items which are non-assessable or non-deductible. It is calculated using tax rates that have been enacted or substantively enacted as at the balance sheet date. The Group operates in numerous tax jurisdictions around the world. At any given time, the Group typically is involved in tax audits and other disputes and will have other tax returns potentially subject to audit. Significant issues may take several years to resolve. In estimating the probability and amount of any tax charge, management takes into account the views of internal and external advisers and updates the amount of tax provision where considered appropriate. The ultimate tax liability may differ from the amount provided depending on factors including interpretations of tax law and settlement negotiations. Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised: for temporary differences related to investments in subsidiaries and associates where the Group is able to control the timing of the reversal of the temporary difference and it is probable that this will not reverse in the foreseeable future; on the initial recognition of non-deductible goodwill; and on the initial recognition of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, does not affect the accounting or taxable profit. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date taking into account the recoverability of the deferred tax assets, future profitability and any restrictions on use. The Group considers available evidence to assess future profitability over a reasonably foreseeable time period, depending on the circumstances and typically a minimum of five years. Any material unrecognised deferred tax assets are disclosed in Note 5.2. Deferred tax is measured on an undiscounted basis, and at the tax rates that have been enacted or substantively enacted as at the balance sheet date that are expected to apply in the periods in which the asset or liability is settled. It is recognised in the income statement except when it relates to items credited or charged directly to other comprehensive income or equity, in which case the deferred tax is also recognised within other comprehensive income or equity respectively. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority, the Group intends to settle its current tax assets and liabilities on a net basis, offset is permissible according to the relevant jurisdiction’s tax laws and that authority permits the Group to make a single net payment.
EARNINGS PER SHARE	Earnings per share Basic earnings per share is calculated by dividing the profit attributable to equity holders by the weighted average number of ordinary shares in issue during the year, excluding shares held by the Company in the Employees’ Share Trust or as treasury shares. Diluted earnings per share Diluted earnings per share is calculated by adjusting the basic earnings per share for the effect of conversion to ordinary shares associated with dilutive potential ordinary shares, which comprise share options and awards granted to employees. Adjusted earnings per share Adjusted earnings per share (or adjusted basic earnings per share) is a trend measure which presents the long-term profitability of the Group excluding the impact of specific transactions that management considers affects the Group’s short-term profitability. The Group presents this measure to assist investors in their understanding of trends. Adjusted attributable profit is the numerator used for this measure. The Group has identified the following items as those to be excluded when arriving at adjusted attributable profit: acquisition and disposal-related items including amortisation and impairment of acquisition intangible assets; significant restructuring programmes; significant gains and losses arising from legal disputes and other significant items (including UK tax litigation) and taxation thereon. Adjusted diluted earnings per share is calculated by adjusting the adjusted basic earnings per share for the effect of conversion to ordinary shares associated with dilutive potential ordinary shares, which comprise share options and awards granted to employees. ​
PROPERTY, PLANT AND EQUIPMENT	Property, plant and equipment Owned assets Items of property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight ‑ line method over their estimated useful lives, and is ultimately recognised in profit or loss. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Freehold land is not depreciated. The estimated useful lives of items of property, plant and equipment is 3 – 20 years and for buildings is 20 – 50 years . Assets in course of construction are not depreciated until they are available for use. Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Finance costs relating to the purchase or construction of property, plant and equipment and intangible assets that take longer than one year to complete are capitalised based on the Group weighted average borrowing costs. All other finance costs are expensed as incurred. Leased assets The assessment of whether a contract is or contains a lease takes place at the inception of the contract. The assessment involves whether the Group obtains substantially all the economic benefits from the use of that asset and whether the Group has the right to direct the use of the asset. The Group allocates the consideration in the contract to each lease and non-lease component. The non-lease component, where it is separately identifiable, is not included in the right-of-use asset. The Group leases many assets including properties, motor vehicles and office equipment. The Group availed itself of the exemptions for short-term leases and leases of low-value items for leases other than those for properties and motor vehicles. The use of these exemptions does not have a material impact. The Group recognises a right-of-use asset and a lease liability at the commencement of the lease. The right-of-use asset is initially measured based on the present value of lease payments that are not paid at the commencement date plus initial direct costs less any incentives received. The lease payments are discounted using an incremental borrowing rate which is country-specific and reflective of the lease term. The right-of-use asset is depreciated over the shorter of the lease term or the useful life of the underlying asset. Cash flows arising on lease interest payments are included in operating cash flows whereas cash flows arising on the capital repayments of the lease liability are included in financing cash flows.
IMPAIRMENT OF ASSETS	Impairment of assets The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which it belongs. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value-in-use. In assessing value-in-use, its estimated future cash flow is discounted to its present value using a pre-tax discount rate that reflects the current market assessment of the time value of money and the risks specific to the asset.
GOODWILL	Goodwill is not amortised but is reviewed for impairment annually. Goodwill is allocated to the cash-generating unit (CGU) that is expected to benefit from the acquisition. The goodwill is tested annually for impairment by comparing the recoverable amount to the carrying value of the CGUs. The CGUs identified by management are at the aggregated product franchise levels of Orthopaedics, Sports Medicine & ENT and Advanced Wound Management, in the way the core assets are used to generate cash flows. If the recoverable amount of the CGU is less than its carrying amount then an impairment loss is determined to have occurred. Any impairment losses that arise are recognised immediately in the income statement and are allocated first to reduce the carrying amount of goodwill and then to the carrying amounts of the other assets of the CGU. In carrying out impairment reviews of goodwill, a number of significant assumptions have to be made when preparing cash flow projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the future profitability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals. If actual results should differ, or changes in expectations arise, impairment charges may be required which would adversely impact operating results.
INTANGIBLE ASSETS	Intangible assets Intangible assets acquired separately from a business combination (including purchased patents, know-how, trademarks, licences and distribution rights) are initially measured at cost. The cost of intangible assets acquired in a material business combination (referred to as acquisition intangibles) is the fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are amortised on a straight-line basis over their estimated useful economic lives. The estimated useful economic life of software ranges between three and seven years . The estimated useful economic life of technology assets ranges between 6 – 20 years , product-related assets ranges between 2 – 20 years , and customer and distribution assets ranges between 2 – 14 years . Internally-generated intangible assets are expensed in the income statement as incurred. Purchased computer software and certain costs of information technology projects are capitalised as intangible assets. Software that is integral to computer hardware is capitalised as plant and equipment. Impairment of intangible assets The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which it belongs. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs to sell and its value-in-use. In assessing value-in-use, its estimated future cash flow is discounted to its present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset. In carrying out impairment reviews of intangible assets, a number of significant assumptions have to be made when preparing cash flow projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the future profitability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals. If actual results should differ, or changes in expectations should arise, impairment charges may be required which would adversely impact operating results.
INVESTMENTS	Investments, other than those related to associates, are initially recorded at fair value plus any directly attributable transaction costs on the trade date. The Group has investments in unquoted entities and an entity that holds mainly unquoted equity securities, which by their nature have no fixed maturity date or coupon rate. These investments are classed as fair value through profit or loss. The fair value of these investments is based on the underlying fair value of the equity securities: marketable securities are valued by reference to closing prices in the market; non-marketable securities are estimated considering factors including the purchase price; prices of recent significant private placements of securities of the same issuer; and estimates of liquidation value. Changes in fair value based on externally observable valuation events are recognised in profit or loss.
INVESTMENTS IN ASSOCIATES	Investments in associates, being those entities over which the Group has a significant influence and which is neither a subsidiary nor a joint venture, are accounted for using the equity method, with the Group recording its share of the associates’ profit and loss and other comprehensive income. The Group’s share of associates’ profit or loss is included in one separate income statement line and is calculated after deduction of their respective taxes. The carrying amounts of investments in associates are reviewed for impairment as at the balance sheet date. For the purposes of impairment testing, the recoverable amounts of these investments would be based on their observable market value. Any impairment loss is subsequently reversed only to the extent that the recoverable amounts of the investments increase.
INVENTORIES	Finished goods and work-in-progress are valued at factory cost, including appropriate overheads, on a first-in first-out basis. Raw materials and bought-in finished goods are valued at purchase price. All inventories are reduced to net realisable value where lower than cost. Inventory acquired as part of a business acquisition is valued at selling price less costs to sell and a profit allowance for selling efforts. Orthopaedic instruments are generally not sold but provided to customers and distributors for use in surgery. They are recorded as inventory until they are deployed at which point they are transferred to plant and equipment and depreciated over their useful economic lives of between three and seven years . A feature of the orthopaedic business is the high level of product inventory required, some of which is located at customer premises and is available for customers’ immediate use (referred to as consignment inventory). Complete sets of product, including large and small sizes, have to be made available in this way. These outer sizes are used less frequently than standard sizes and towards the end of the product life cycle are inevitably in excess of requirements. Adjustments to carrying value are therefore required to be made to orthopaedic inventory to anticipate this situation. These adjustments are calculated in accordance with a formula based on levels of inventory compared with historical or forecast usage. This formula is applied on an individual product line basis and is first applied when a product group has been on the market for two years . This method of calculation is considered appropriate based on experience but it involves management judgements on effectiveness of inventory deployment, length of product lives, phase-out of old products and efficiency of manufacturing planning systems.
TRADE AND OTHER RECEIVABLES	Trade and other receivables are carried at amortised cost, less any allowances for uncollectable amounts. They are included in current assets, except for maturities greater than 12 months after the balance sheet date when they are classified as non-current assets. The Group manages credit risk through credit limits which require authorisation commensurate with the size of the limit and which are regularly reviewed. Credit limit decisions are made based on available financial information and the business case. Significant receivables are regularly reviewed and monitored at Group level. The Group has no significant concentration of credit risk, with exposure spread over a large number of customers and geographies. Furthermore, the Group’s principal customers are backed by government and public or private medical insurance funding, which historically represent a lower risk of default. The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable. The Group does not hold any collateral as security. Allowance losses are calculated by reviewing lifetime expected credit losses using historic and forward-looking data on credit risk. The Group performed the calculation of expected credit loss rates separately for customer groups which were segmented based on common risk characteristics such as credit risk grade and type of customer (such as government and non-government).
DERIVATIVE FINANCIAL INSTRUMENTS	Derivative financial instruments Derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value at subsequent balance sheet dates. Changes in the fair value of derivative financial instruments that are designated and effective as cash flow hedges of forecast third-party transactions are recognised in other comprehensive income until the associated asset or liability is recognised. Amounts taken to other comprehensive income are transferred to the income statement in the period in which the hedged transaction affects profit and loss. Where the hedged item is the cost of a non-financial asset, the amounts taken to other comprehensive income are transferred to the initial carrying value of the asset. On adoption of IFRS 9 on 1 January 2018, the Group elected to continue to apply the hedge accounting guidance in IAS 39 Financial Instruments: Recognition and Measurement . Changes in the fair values of hedging instruments that are designated and effective as net investment hedges are matched in other comprehensive income against changes in value of the related net assets. Interest rate derivatives transacted to fix interest rates on floating rate borrowings are accounted for as cash flow hedges and changes in the fair values resulting from changes in market interest rates are recognised in other comprehensive income. Amounts taken to other comprehensive income are transferred to the income statement when the hedged transaction affects profit and loss. Interest rate derivatives transacted to convert fixed rate borrowings into floating rate borrowings are accounted for as fair value hedges and changes in the fair values resulting from changes in market interest rates are recognised in the income statement. Any ineffectiveness on hedging instruments and changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the income statement within other finance costs as they arise. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive income is retained there until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in other comprehensive income is transferred to the income statement.
MEASUREMENT OF FAIR VALUES	Measurement of fair values A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial assets and liabilities and non-financial assets acquired in a business combination (see Note 21). When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values are categorised into different levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices); and Level 3: inputs for the asset or liability that are not based on observable data (unobservable inputs). The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
PROVISIONS AND CONTINGENCIES	In the normal course of business the Group is involved in various legal disputes. Provisions are made for loss contingencies when it is deemed probable that an adverse outcome will occur and the amount of the losses can be reasonably estimated. Where the Group is the plaintiff in pursuing claims against third parties, legal and associated expenses are charged to the income statement as incurred. The recognition of provisions for legal disputes is subject to a significant degree of estimation. In making its estimates, management takes into account the advice of internal and external legal counsel. Provisions are reviewed regularly and amounts updated where necessary to reflect developments in the disputes. The ultimate liability may differ from the amount provided depending on the outcome of court proceedings or settlement negotiations or as new facts emerge. Insurance recoveries are recognised when the inflow of benefits is virtually certain and are presented within other receivables. A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. A provision for rationalisation is recognised when the Group has approved a detailed and formal restructuring plan and the restructuring either has commenced or has been announced publicly. Future operating losses are not provided for.
RETIREMENT BENEFIT OBLIGATIONS	The Group sponsors defined benefit plans in a number of countries. A defined benefit pension plan defines an amount of pension benefit that an employee will receive on retirement or a minimum guaranteed return on contributions, which is dependent on various factors such as age, years of service and final salary. The Group’s obligation is calculated separately for each plan by discounting the estimated future benefit that employees have earned in return for their service in the current and prior periods. The fair value of any plan assets is deducted to arrive at the net liability. The calculation of the defined benefit obligation is performed annually by external actuaries using the projected unit credit method. Remeasurements arising from defined benefit plans comprise actuarial gains and losses and the return on the plan assets in excess of the discount rate net of the costs of managing the plan assets. The Group recognises these immediately in other comprehensive income (OCI) and all other expenses, such as service cost, net interest cost, administration costs and taxes, are recognised in the income statement. A number of key assumptions are made when calculating the fair value of the Group’s defined benefit pension plans. These assumptions impact the balance sheet asset and liabilities, operating profit, finance income/costs and other comprehensive income. The most critical assumptions are the discount rate, the rate of inflation and mortality assumptions to be applied to future pension plan liabilities. The discount rate is based on the yield at the reporting date on bonds that have a credit rating of AA, denominated in the currency in which the benefits are expected to be paid and have a maturity profile approximately the same as the Group’s obligations. In determining these assumptions management takes into account the advice of professional external actuaries and benchmarks its assumptions against external data. The Group determines the net interest expense/income on the net defined benefit liability/asset for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit liability/asset. The Group also operates a number of defined contribution plans. A defined contribution plan is a pension plan under which the Group and employees pay fixed contributions to a third-party financial provider. The Group has no further payment obligations once the contributions have been paid. Contributions are recognised as an employee benefit expense when they are due. ​
EQUITY	Incremental costs directly attributable to the issue of ordinary shares, net of any tax effects, are recognised as a deduction from equity. When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity and the resulting surplus or deficit on the transaction is presented within share premium.
CASH FLOW STATEMENT	In the Group cash flow statement, cash and cash equivalents includes cash at bank, other short-term liquid investments with original maturities of three months or less and bank overdrafts. In the Group balance sheet, bank overdrafts are shown within bank overdrafts, borrowings, loans and lease liabilities under current liabilities.
ACQUISITIONS AND DISPOSALS	The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in the acquisition is measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in profit or loss.
SHARE-BASED PAYMENTS	The Group operates a number of equity-settled executive and employee share plans. For all grants of share options and awards, the fair value at the grant date is calculated using appropriate option pricing models. The grant date fair value is recognised over the vesting period as an expense, with a corresponding increase in retained earnings.

BASIS OF PREPARATION (Tables)

BASIS OF PREPARATION (Tables)	12 Months Ended
	Dec. 31, 2022
BASIS OF PREPARATION
The exchange rates used for the translation of currencies	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 Average rates ​ ​ ​ ​ Sterling ​ 1.23 ​ 1.38 ​ 1.28 ​ Euro ​ 1.05 ​ 1.18 ​ 1.14 ​ Swiss Franc ​ 1.05 ​ 1.09 ​ 1.07 ​ Year end rates ​ ​ ​ ​ ​ ​ ​ Sterling ​ 1.21 ​ 1.35 ​ 1.37 ​ Euro ​ 1.07 ​ 1.13 ​ 1.23 ​ Swiss Franc ​ 1.08 ​ 1.10 ​ 1.14 ​

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2022
BUSINESS SEGMENT INFORMATION
Segment revenue reconciles to statutory revenues from continuing operations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million ​ Reportable segment revenue ​ ​ ​ ​ Orthopaedics ​ 2,113 ​ 2,156 ​ 1,917 ​ Sports Medicine & ENT ​ 1,590 ​ 1,560 ​ 1,333 ​ Advanced Wound Management ​ 1,512 ​ 1,496 ​ 1,310 ​ Revenue from external customers ​ 5,215 ​ 5,212 ​ 4,560 ​ ​
Disaggregation of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Revenue by product from continuing operations ​ ​ ​ ​ Knee Implants ​ 899 ​ 876 ​ 822 ​ Hip Implants ​ 584 ​ 612 ​ 567 ​ Other Reconstruction ​ 87 ​ 92 ​ 68 ​ Trauma & Extremities ​ 543 ​ 576 ​ 460 ​ Orthopaedics ​ 2,113 ​ 2,156 ​ 1,917 ​ Sports Medicine Joint Repair ​ 870 ​ 839 ​ 710 ​ Arthroscopic Enabling Technologies ​ 567 ​ 590 ​ 517 ​ ENT (Ear, Nose and Throat) ​ 153 ​ 131 ​ 106 ​ Sports Medicine & ENT ​ 1,590 ​ 1,560 ​ 1,333 ​ Advanced Wound Care ​ 712 ​ 731 ​ 647 ​ Advanced Wound Bioactives ​ 520 ​ 496 ​ 431 ​ Advanced Wound Devices ​ 280 ​ 269 ​ 232 ​ Advanced Wound Management ​ 1,512 ​ 1,496 ​ 1,310 ​ Consolidated revenue from continuing operations ​ 5,215 ​ 5,212 ​ 4,560 ​ ​ The following table shows the disaggregation of Group revenue by geographic market and product category. The disaggregation of revenue into the two product categories below reflects that in general the products in the Advanced Wound Management franchises are sold to wholesalers and intermediaries, while products in the other franchises are sold directly to hospitals, ambulatory surgery centers and distributors. The further disaggregation of revenue by Established Markets and Emerging Markets reflects that in general our products are sold through distributors and intermediaries in the Emerging Markets while in the Established Markets, with the exception of the Advanced Wound Care and Bioactives product franchises, products are in general sold direct to hospitals and ambulatory surgery centers. The disaggregation by Established Markets and Emerging Markets also reflects their differing economic factors including volatility in growth and outlook. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ 2020 ​ ​ Established Markets 1 ​ Emerging Markets ​ Total ​ Established Markets 1 ​ Emerging Markets ​ Total ​ Established Markets 1 ​ Emerging Markets ​ Total ​ $ million $ million $ million $ million $ million $ million $ million $ million $ million Orthopaedics, Sports Medicine & ENT ​ 2,949 ​ 754 ​ 3,703 ​ 2,969 ​ 747 ​ 3,716 ​ 2,619 ​ 631 ​ 3,250 Advanced Wound Management ​ 1,319 ​ 193 ​ 1,512 ​ 1,327 ​ 169 ​ 1,496 ​ 1,170 ​ 140 ​ 1,310 Total ​ 4,268 ​ 947 ​ 5,215 ​ 4,296 ​ 916 ​ 5,212 ​ 3,789 ​ 771 ​ 4,560 ​ 1 Established Markets comprises the US, Australia, Canada, Europe, Japan and New Zealand . ​
Trading profit reconciles to operating profit	Segment trading profit is reconciled to the statutory measure below: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ $ million $ million $ million Segment profit ​ ​ ​ ​ ​ ​ Orthopaedics ​ 383 ​ 367 ​ 389 Sports Medicine & ENT ​ 472 ​ 459 ​ 306 Advanced Wound Management ​ 436 ​ 474 ​ 316 Segment trading profit ​ 1,291 ​ 1,300 ​ 1,011 Corporate costs ​ (390) ​ (364) ​ (328) Group trading profit ​ 901 ​ 936 ​ 683 Acquisition and disposal-related items ​ (4) ​ (7) ​ (4) Restructuring and rationalisation expenses ​ (167) ​ (113) ​ (124) Amortisation and impairment of acquisition intangibles ​ (205) ​ (172) ​ (171) Legal and other ​ (75) ​ (51) ​ (89) Group operating profit ​ 450 ​ 593 ​ 295
Assets and liabilities by geographic location	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million United Kingdom ​ 487 ​ 541 ​ 403 ​ United States of America ​ 3,918 ​ 4,125 ​ 4,093 ​ Other ​ 1,387 ​ 1,447 ​ 1,517 ​ Total non-current assets of the consolidated Group 1 ​ 5,792 ​ 6,113 ​ 6,013 ​ ​ 1 Non-current assets exclude retirement benefit assets and deferred tax assets .

OPERATING PROFIT (Tables)

OPERATING PROFIT (Tables)	12 Months Ended
	Dec. 31, 2022
GROUP INCOME STATEMENT
Schedule of expenses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Revenue ​ 5,215 ​ 5,212 ​ 4,560 ​ Cost of goods sold 1 ​ (1,540) ​ (1,543) ​ (1,396) ​ Gross profit ​ 3,675 ​ 3,669 ​ 3,164 ​ Research and development expenses 2 ​ (345) ​ (356) ​ (307) ​ Selling, general and administrative expenses: ​ ​ ​ ​ Marketing, selling and distribution expenses ​ (2,066) ​ (2,013) ​ (1,773) ​ Administrative expenses 3,4,5,6 ​ (814) ​ (707) ​ (789) ​ ​ ​ (2,880) ​ (2,720) ​ (2,562) ​ Operating profit ​ 450 ​ 593 ​ 295 ​ 1 2022 includes $4 m charge relating to legal and other items, $20 m charge relating to restructuring and rationalisation expenses and $5 m charges relating to acquisition and disposal-related items (2021: $7 m charge relating to legal and other items and $29 m charge relating to restructuring and rationalisation expenses , 2020: $6 m charge relating to legal and other items and $15 m charge relating to restructuring and rationalisation expenses). 2 2022 includes $35 m charge relating to legal and other items (2021: $39 m, 2020: $28 m), $5 m charge relating to acquisition and disposal related items (2021: $7 m, 2020: $nil ) and $5 m charge relating to restructuring and rationalisation expenses (2021: $nil , 2020: $nil ). 3 2022 includes $56 m of amortisation of software and other intangible assets (2021: $65 m, 2020: $63 m). 4 2022 includes $205 m of amortisation and impairment of acquisition intangibles and $142 m of restructuring and rationalisation expenses (2021: $172 m of amortisation and impairment of acquisition intangibles and $84 m of restructuring and rationalisation expenses, 2020: $171 m of amortisation and impairment of acquisition intangibles and $109 m of restructuring and rationalisation expenses). 5 2022 includes $36 m charge relating to legal and other items (2021: $5 m charge, 2020: $55 m charge). 6 2022 includes $6 m credit relating to acquisition and disposal-related items (2021: $nil , 2020: $4 m charge). Note that items detailed in 1, 2, 4, 5 and 6 are excluded from the calculation of trading profit, the segments’ profit measure. Operating profit is stated after charging/(crediting) the following items: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Other operating income ​ (7) ​ (35) ​ – ​ Amortisation of intangible assets ​ 229 ​ 237 ​ 234 ​ Impairment of intangible assets ​ 39 ​ 2 ​ 12 ​ Impairment of property, plant and equipment ​ 30 ​ 1 ​ 5 ​ Fair value remeasurement of trade investments ​ – ​ 1 ​ – ​ Depreciation of property, plant and equipment 1 ​ 319 ​ 326 ​ 311 ​ Loss on disposal of property, plant and equipment and intangible assets ​ 11 ​ 14 ​ 34 ​ Advertising costs ​ 92 ​ 81 ​ 66 ​ 1 The 2022 depreciation charge includes $56 m (2021: $56 m, 2020: $51 m) related to right-of-use assets. In 2022, other operating income comprises insurance recoveries for ongoing metal-on-metal hip claims of ​ 3.1 Staff costs during the year amounted to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ Notes $ million $ million $ million Wages and salaries ​ ​ 1,565 ​ 1,562 ​ 1,392 ​ Social security costs ​ ​ 215 ​ 223 ​ 190 ​ Pension costs (including retirement healthcare) ​ 18 ​ 88 ​ 93 ​ 78 ​ Share-based payments ​ 22 ​ 40 ​ 41 ​ 26 ​ ​ ​ ​ 1,908 ​ 1,919 ​ 1,686 ​ ​ During the year ended 31 December 2022, the average number of employees was 19,094 (2021: 18,976, 2020: 18,581). 3.2 Audit Fees – information about the nature and cost of services provided by the auditor ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Audit services: ​ ​ ​ ​ Group accounts ​ 7.2 ​ 5.5 ​ 5.0 ​ Local statutory audit pursuant to legislation ​ 2.2 ​ 2.0 ​ 2.0 ​ Other services: ​ ​ ​ ​ ​ ​ ​ Audit-related services ​ 0.4 ​ 0.1 ​ 0.4 ​ Total auditor’s remuneration ​ 9.8 ​ 7.6 ​ 7.4 ​ Arising: ​ ​ ​ ​ In the UK ​ 5.3 ​ 3.5 ​ 3.6 ​ Outside the UK ​ 4.5 ​ 4.1 ​ 3.8 ​ ​ ​ 9.8 ​ 7.6 ​ 7.4 ​

INTEREST AND OTHER FINANCE CO_2

INTEREST AND OTHER FINANCE COSTS (Tables)	12 Months Ended
	Dec. 31, 2022
INTEREST AND OTHER FINANCE COSTS
Schedule of interest and other finance costs	4.1 Interest income/(expense) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Interest income ​ 14 ​ 6 ​ 6 ​ Interest expense: ​ ​ ​ ​ ​ ​ Bank borrowings ​ (3) ​ (3) ​ (4) ​ Private placement notes ​ (39) ​ (46) ​ (42) ​ Lease liabilities ​ (6) ​ (7) ​ (6) ​ Corporate bond ​ (27) ​ (21) ​ (5) ​ Other ​ (5) ​ (3) ​ (5) ​ ​ ​ (80) ​ (80) ​ (62) ​ Net interest expense ​ (66) ​ (74) ​ (56) ​ ​ 4.2 Other finance costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ Notes $ million $ million $ million Retirement benefit net interest expense ​ 18 ​ (2) ​ (3) ​ (2) ​ Unwinding of discount ​ ​ (9) ​ (10) ​ (11) ​ Other ​ ​ 3 ​ (4) ​ 6 ​ Other finance costs ​ ​ (8) ​ (17) ​ (7) ​

TAXATION (Tables)

TAXATION (Tables)	12 Months Ended
	Dec. 31, 2022
TAXATION
Schedule of taxation charge attributable to the group	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Current taxation: ​ ​ ​ ​ UK corporation tax ​ 17 ​ 14 ​ 16 ​ Overseas tax ​ 104 ​ 126 ​ 40 ​ Current income tax charge ​ 121 ​ 140 ​ 56 ​ Adjustments in respect of prior periods ​ (10) ​ (33) ​ (191) ​ Total current taxation ​ 111 ​ 107 ​ (135) ​ Deferred taxation: ​ ​ ​ ​ Origination and reversal of temporary differences ​ (77) ​ (35) ​ (49) ​ Changes in tax rates ​ (5) ​ (14) ​ (12) ​ Adjustments to estimated amounts arising in prior periods ​ (17) ​ 4 ​ (6) ​ Total deferred taxation ​ (99) ​ (45) ​ (67) ​ Total taxation as per the income statement ​ 12 ​ 62 ​ (202) ​ Taxation in other comprehensive income ​ 5 ​ 27 ​ – ​ Taxation in equity ​ 3 ​ 1 ​ 4 ​ Taxation charge/(credit) attributable to the Group ​ 20 ​ 90 ​ (198) ​ ​
Schedule of reconciliation of expected tax charge at the UK statutory rate with the actual tax charge	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ $ million $ million $ million Profit before taxation ​ 235 ​ 586 ​ 246 ​ Expected taxation at UK statutory rate of 19.0% (2021: 19.0%, 2020: 19%) ​ 45 ​ 111 ​ 47 ​ Differences in overseas taxation rates ​ (19) ​ (17) ​ (37) ​ Innovation reliefs ​ (10) ​ (12) ​ (9) ​ Tax losses and other deferred tax assets not recognised ​ – ​ 7 ​ 15 ​ Recognition of previously unrecognised tax losses ​ (4) ​ (2) ​ (45) ​ Expenses not deductible for tax purposes 1 ​ 31 ​ 22 ​ 29 ​ Change in tax rates 2 ​ (5) ​ (14) ​ (12) ​ Withholding tax on unremitted earnings ​ 1 ​ (4) ​ 7 ​ Adjustments in respect of prior years 3 ​ (27) ​ (29) ​ (197) ​ Total taxation charge/(credit) as per the income statement ​ 12 ​ 62 ​ (202) ​ ​ 1 In 2022, this includes a $7 m impact of non-tax deductible impairment on UK owned investments (2021: $17 m impact of non-taxable accounting gains recognised on UK-owned investments). 2 In 2022, the tax rate changes primarily relate to an increase in deferred tax resulting from the increase in the UK corporation tax rate due to come into effect on 1 April 2023. In 2021, the net impact to deferred tax assets and liabilities was $6 m which comprises $14 m in the income statement and $8 m in other comprehensive income as shown in the table below. 3 The adjustments in respect of prior years are explained on page 179. ​
Schedule of movements in the main components of deferred tax assets and liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory, ​ ​ ​ ​ ​ Accelerated ​ ​ ​ Retirement ​ Losses ​ provisions ​ ​ ​ ​ ​ tax ​ ​ ​ benefit ​ and other ​ and other ​ ​ ​ ​ ​ depreciation ​ Intangibles ​ obligations ​ tax attributes ​ differences ​ Total ​ ​ $ million $ million $ million $ million $ million $ million At 31 December 2020 ​ (61) ​ (209) ​ 5 ​ 123 ​ 203 ​ 61 ​ Exchange adjustment ​ – ​ – ​ (1) ​ – ​ (7) ​ (8) ​ Movement in income statement – current year ​ 16 ​ 24 ​ 1 ​ 4 ​ (10) ​ 35 ​ Movement in income statement – prior years ​ (2) ​ 10 ​ – ​ (10) ​ (2) ​ (4) ​ Movement in other comprehensive income ​ – ​ – ​ (15) ​ – ​ (5) ​ (20) ​ Movement in equity ​ – ​ – ​ – ​ – ​ (1) ​ (1) ​ Changes in tax rate ​ – ​ (2) ​ (8) ​ 10 ​ 6 ​ 6 ​ Acquisitions ​ 2 ​ (22) ​ – ​ 3 ​ 5 ​ (12) ​ At 31 December 2021 ​ (45) ​ (199) ​ (18) ​ 130 ​ 189 ​ 57 ​ Exchange adjustment ​ – ​ 1 ​ 2 ​ – ​ (10) ​ (7) ​ Movement in income statement – current year ​ (28) ​ 15 ​ 1 ​ 1 ​ 88 ​ 77 ​ Movement in income statement – prior years ​ – ​ 4 ​ 1 ​ 9 ​ 3 ​ 17 ​ Movement in other comprehensive income ​ – ​ – ​ (7) ​ – ​ 2 ​ (5) ​ Movement in equity ​ – ​ – ​ – ​ – ​ (3) ​ (3) ​ Changes in tax rate ​ (2) ​ (2) ​ – ​ – ​ 9 ​ 5 ​ At 31 December 2022 ​ (75) ​ (181) ​ (21) ​ 140 ​ 278 ​ 141 ​ ​ Represented by: ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ $ million $ million Deferred tax assets ​ 177 ​ 201 ​ Deferred tax liabilities ​ (36) ​ (144) ​ Net position at 31 December ​ 141 ​ 57 ​ ​

EARNINGS PER ORDINARY SHARE (Ta

EARNINGS PER ORDINARY SHARE (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings per share [abstract]
Schedule of earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ ​ ​ $ million $ million $ million Earnings ​ ​ ​ ​ ​ ​ ​ ​ ​ Attributable profit for the year ​ ​ ​ 223 ​ 524 ​ 448 ​ Adjusted attributable profit (see below) ​ ​ ​ 713 ​ 710 ​ 564 ​ ​ Attributable profit is reconciled to adjusted attributable profit as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ Notes $ million $ million $ million Attributable profit for the year ​ ​ ​ 223 ​ 524 ​ 448 ​ Acquisition and disposal-related items 1 ​ ​ ​ 162 ​ (73) ​ 4 ​ Restructuring and rationalisation costs 2 ​ 3 ​ 168 ​ 113 ​ 124 ​ Amortisation and impairment of acquisition intangibles 3 ​ 9 ​ 205 ​ 172 ​ 171 ​ Legal and other 4 ​ ​ ​ 82 ​ 59 ​ 91 ​ UK tax litigation ​ 5 ​ – ​ – ​ (142) ​ Taxation on excluded items ​ 5 ​ (127) ​ (85) ​ (132) ​ Adjusted attributable profit ​ ​ ​ 713 ​ 710 ​ 564 ​ ​ 1 Acquisition and disposal related items includes a $4 m charge within operating profit (2021: $7 m charge, 2020: $4 m charge) and a $158 m charge within share of result of associates (2021: $5 m credit, 2020: $nil ) and a $nil gain on disposal of interest in associate (2021: $75 m gain, 2020: $nil ). See details in Note 11. 2 Restructuring and rationalisation costs include a 3 In 2022, amortisation and impairment of acquisition intangibles includes a $205 m charge within operating profit (2021: $172 m charge with operating profit, 2020: $171 m charge within operating profit). 4 Legal and other charge in 2022 includes $75 m (2021: $51 m charge, 2020: $89 m charge) within operating profit (refer to Note 2.6) and a $7 m charge (2021: $8 m charge, 2020: $8 m charge) within other finance costs for unwinding of the discount on the provision for known, anticipated and settled metal-on-metal hip claims globally. In 2020, other finance costs includes a credit of $6 m for interest on a tax refund relating to the UK tax litigation case (see Note 5). The numerators used for basic and diluted earnings per ordinary share are the same. The denominators used for all categories of earnings per ordinary share are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 Number of shares (millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic weighted number of shares ​ ​ ​ 872 ​ 877 ​ 875 ​ Dilutive impact of share incentive schemes outstanding ​ ​ ​ 1 ​ 1 ​ 2 ​ Diluted weighted average number of shares ​ ​ ​ 873 ​ 878 ​ 877 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per ordinary share ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ ​ 25.5 ¢ ​ 59.8¢ ​ 51.3¢ ​ Diluted ​ ​ ​ 25.5 ¢ ​ 59.7¢ ​ 51.2¢ ​ Adjusted: ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ ​ 81.8 ¢ ​ 80.9¢ ​ 64.6¢ ​ Diluted ​ ​ ​ 81.6 ¢ ​ 80.8¢ ​ 64.4¢ ​

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2022
PROPERTY, PLANT AND EQUIPMENT.
Schedule of property, plant and equipment cost less accumulated depreciation or impairment losses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plant and equipment ​ Assets in ​ ​ ​ ​ ​ ​ ​ Land and ​ ​ ​ ​ ​ course of ​ ​ ​ ​ ​ ​ ​ buildings ​ Instruments ​ Other ​ construction ​ Total ​ ​ Notes $ million $ million $ million $ million $ million Cost ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 1 January 2021 ​ ​ 616 ​ 1,676 ​ 1,244 ​ 216 ​ 3,752 ​ Exchange adjustment ​ ​ (9) ​ (53) ​ (16) ​ (1) ​ (79) ​ Acquisitions ​ 21 ​ 9 ​ 9 ​ 2 ​ 2 ​ 22 ​ Additions ​ ​ 53 ​ 151 ​ 40 ​ 161 ​ 405 ​ Disposals ​ ​ ​ (10) ​ (88) ​ (28) ​ 2 ​ (124) ​ Impairment ​ ​ ​ – ​ – ​ (6) ​ – ​ (6) ​ Transfers ​ ​ 29 ​ (1) ​ 46 ​ (77) ​ (3) ​ At 31 December 2021 ​ ​ 688 ​ 1,694 ​ 1,282 ​ 303 ​ 3,967 ​ Exchange adjustment ​ ​ (18) ​ (66) ​ (39) ​ (6) ​ (129) ​ Acquisitions ​ 21 ​ – ​ 2 ​ – ​ – ​ 2 ​ Additions ​ ​ 51 ​ 129 ​ 24 ​ 136 ​ 340 ​ Disposals ​ ​ ​ (45) ​ (58) ​ (49) ​ (1) ​ (153) ​ Impairment ​ ​ ​ – ​ – ​ – ​ (3) ​ (3) ​ Transfers ​ ​ 50 ​ 9 ​ 114 ​ (173) ​ – ​ At 31 December 2022 ​ ​ 726 ​ 1,710 ​ 1,332 ​ 256 ​ 4,024 ​ Depreciation and impairment ​ ​ ​ ​ ​ ​ ​ At 1 January 2021 ​ ​ 199 ​ 1,233 ​ 871 ​ – ​ 2,303 ​ Exchange adjustment ​ ​ (4) ​ (43) ​ (13) ​ – ​ (60) ​ Charge for the year ​ ​ 62 ​ 178 ​ 86 ​ – ​ 326 ​ Impairment ​ ​ – ​ – ​ (5) ​ – ​ (5) ​ Disposals ​ ​ (10) ​ (75) ​ (25) ​ – ​ (110) ​ Transfers ​ ​ 2 ​ (1) ​ (1) ​ – ​ – ​ At 31 December 2021 ​ ​ 249 ​ 1,292 ​ 913 ​ – ​ 2,454 ​ Exchange adjustment ​ ​ (8) ​ (52) ​ (29) ​ – ​ (89) ​ Charge for the year ​ ​ 62 ​ 172 ​ 85 ​ – ​ 319 ​ Impairment ​ ​ 18 ​ 8 ​ 1 ​ – ​ 27 ​ Disposals ​ ​ ​ (37) ​ (58) ​ (47) ​ – ​ (142) ​ Transfers ​ ​ – ​ 4 ​ (4) ​ – ​ – ​ At 31 December 2022 ​ ​ 284 ​ 1,366 ​ 919 ​ – ​ 2,569 ​ Net book amounts ​ ​ ​ ​ ​ ​ ​ At 31 December 2022 ​ ​ ​ 442 ​ 344 ​ 413 ​ 256 ​ 1,455 ​ At 31 December 2021 ​ ​ 439 ​ 402 ​ 369 ​ 303 ​ 1,513 ​ ​
Schedule of Group's right-of-use assets	​ ​ ​ ​ ​ ​ ​ ​ ​ Land and buildings ​ Plant and equipment ​ 2022 $ million $ million ​ Additions ​ 49 ​ 10 ​ Depreciation charge in the year ​ 44 ​ 12 ​ Net book value at 31 December ​ 160 ​ 27 ​

GOODWILL (Table)

GOODWILL (Table)	12 Months Ended
	Dec. 31, 2022
GOODWILL
Schedule of goodwill	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ Notes $ million $ million Cost and net book value ​ ​ ​ ​ ​ At 1 January ​ ​ ​ 2,989 ​ 2,928 ​ Exchange adjustment ​ ​ ​ (42) ​ (35) ​ Acquisitions ​ 21 ​ 84 ​ 96 ​ At 31 December ​ ​ ​ 3,031 ​ 2,989 ​ Management has identified four CGUs in applying the provisions of IAS 36 Impairment of Assets For the purpose of goodwill impairment testing, the Advanced Wound Care & Devices and Bioactives CGUs have been aggregated (Advanced Wound Management), as this is the level at which goodwill is monitored and level at which the economic benefits relating to the goodwill within these CGUs is realised. Goodwill is allocated to the Group’s CGUs as follows: ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ $ million $ million Orthopaedics ​ 953 ​ 897 ​ Sports Medicine & ENT ​ 1,455 ​ 1,457 ​ Advanced Wound Management ​ 623 ​ 635 ​ ​ ​ 3,031 ​ 2,989 ​

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2022
INTANGIBLE ASSETS
Schedule of intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer and ​ ​ ​ Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ Product- ​ distribution- ​ ​ ​ in course of ​ ​ ​ ​ ​ ​ ​ Technology ​ related ​ related ​ Software ​ construction ​ Total ​ ​ ​ Notes $ million $ million $ million $ million $ million $ million Cost ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 1 January 2021 ​ ​ ​ 495 ​ 2,236 ​ 226 ​ 477 ​ 54 ​ 3,488 ​ Exchange adjustment ​ ​ ​ (8) ​ (26) ​ (6) ​ (7) ​ (2) ​ (49) ​ Acquisitions ​ ​ ​ 101 ​ – ​ 11 ​ – ​ – ​ 112 ​ Additions ​ ​ ​ – ​ 1 ​ 4 ​ 27 ​ 24 ​ 56 ​ Disposals ​ ​ ​ – ​ (1) ​ (4) ​ (17) ​ – ​ (22) ​ Impairment ​ ​ ​ – ​ (4) ​ – ​ – ​ – ​ (4) ​ Transfers ​ ​ ​ – ​ – ​ – ​ 11 ​ (8) ​ 3 ​ At 31 December 2021 ​ ​ ​ 588 ​ 2,206 ​ 231 ​ 491 ​ 68 ​ 3,584 ​ Exchange adjustment ​ ​ ​ (6) ​ (21) ​ (2) ​ (14) ​ (2) ​ (45) ​ Acquisitions ​ 21 ​ – ​ 44 ​ – ​ – ​ – ​ 44 ​ Additions ​ ​ ​ – ​ 3 ​ 7 ​ 32 ​ 35 ​ 77 ​ Disposals ​ ​ ​ – ​ – ​ (1) ​ (5) ​ – ​ (6) ​ Impairment ​ ​ ​ – ​ – ​ – ​ – ​ (1) ​ (1) ​ Transfers ​ ​ ​ – ​ – ​ – ​ 4 ​ (4) ​ – ​ At 31 December 2022 ​ ​ ​ 582 ​ 2,232 ​ 235 ​ 508 ​ 96 ​ 3,653 ​ Amortisation and impairment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 1 January 2021 ​ ​ ​ 142 ​ 1,373 ​ 126 ​ 361 ​ – ​ 2,002 ​ Exchange adjustment ​ ​ ​ (3) ​ (20) ​ (4) ​ (7) ​ – ​ (34) ​ Charge for the year ​ ​ ​ 41 ​ 131 ​ 23 ​ 42 ​ – ​ 237 ​ Impairment ​ ​ ​ – ​ (2) ​ – ​ – ​ – ​ (2) ​ Disposals ​ ​ ​ – ​ – ​ – ​ (17) ​ – ​ (17) ​ At 31 December 2021 ​ ​ ​ 180 ​ 1,482 ​ 145 ​ 379 ​ – ​ 2,186 ​ Exchange adjustment ​ ​ ​ (2) ​ (19) ​ (2) ​ (8) ​ – ​ (31) ​ Charge for the year ​ ​ ​ 46 ​ 123 ​ 17 ​ 43 ​ – ​ 229 ​ Impairment ​ ​ ​ 4 ​ 28 ​ – ​ 6 ​ – ​ 38 ​ Disposals ​ ​ ​ – ​ – ​ – ​ (5) ​ – ​ (5) ​ At 31 December 2022 ​ ​ ​ 228 ​ 1,614 ​ 160 ​ 415 ​ – ​ 2,417 ​ Net book amounts ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 31 December 2022 ​ ​ ​ 354 ​ 618 ​ 75 ​ 93 ​ 96 ​ 1,236 ​ At 31 December 2021 ​ ​ ​ 408 ​ 724 ​ 86 ​ 112 ​ 68 ​ 1,398 ​ ​ ​ Transfers into software and assets in course of construction includes $nil (2021: $3m) of software transferred from property, plant and equipment. Group capital expenditure relating to software contracted but not provided for amounted to $7m (2021: $10m). Amortisation and impairment of acquisition intangibles is set out below: ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ $ million $ million Technology ​ 51 ​ 41 ​ Product-related ​ 142 ​ 118 ​ Customer and distribution-related ​ 12 ​ 13 ​ Total ​ 205 ​ 172 ​ ​ ​ Management have assessed the acquisition intangible assets held by the Group to identify any indicators of impairment as of September 2022. These were updated during December to take into account any significant events that occurred between September and December. Where an impairment indicator has arisen, impairment reviews have been undertaken by comparing the expected recoverable value of assets to the carrying value of assets. In 2022, the Group booked $32 m (2021: $ nil ) of impairment charge in relation to immaterial product assets in acquisition intangibles . The table below provides further detail on the largest intangible assets and their remaining amortisation period: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ ​ Carrying value ​ amortisation ​ ​ ​ $ million period ​ Intangibles acquired as part of the ArthroCare acquisition ​ 306 ​ 1 – 11 years ​ Intangibles acquired as part of the Osiris acquisition ​ 204 ​ 2 – 6 years ​ Intangibles acquired as part of the Healthpoint acquisition ​ 179 ​ 5 years ​

INVESTMENTS (Tables)

INVESTMENTS (Tables)	12 Months Ended
	Dec. 31, 2022
INVESTMENTS
Disclosure of detailed information about financial instruments [text block]	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ ​ ​ $ million $ million At 1 January ​ ​ ​ 10 ​ 9 ​ Additions ​ ​ ​ 2 ​ 2 ​ Fair value remeasurement ​ ​ ​ – ​ (1) ​ At 31 December ​ ​ ​ 12 ​ 10 ​

INVESTMENTS IN ASSOCIATES (Tabl

INVESTMENTS IN ASSOCIATES (Tables)	12 Months Ended
	Dec. 31, 2022
INVESTMENTS IN ASSOCIATES
Schedule of amounts recognised in the balance sheet and income statement	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ $ million $ million Balance sheet ​ 46 ​ 188 ​ Income statement (loss)/profit ​ (32) ​ 9 ​ Impairment of interest in associate ​ (109) ​ – ​ Gain on disposal of interest in associate ​ – ​ 75 ​ ​
Summary of financial information for Bioventus, adjusted for differences with Group accounting policies	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ $ million $ million Summarised statement of comprehensive income ​ ​ ​ Revenue ​ 386 ​ 300 ​ Attributable (loss)/profit for the year ​ (129) ​ 22 ​ Group adjustments 1 ​ 17 ​ 10 ​ Total comprehensive profit ​ (112) ​ 32 ​ Group share of profit for the year at 28.3% (2021: 29.2%) ​ (32) ​ 9 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ $ million $ million Summarised balance sheet ​ ​ ​ Non-current assets ​ 1,128 ​ 1,021 ​ Current assets ​ 271 ​ 229 ​ Non-current liabilities ​ (730) ​ (542) ​ Current liabilities ​ (288) ​ (191) ​ Net assets ​ 381 ​ 517 ​ Net equity attributable to owners ​ 381 ​ 517 ​ Group’s share of net assets at 28.3% (2021: 29.2%) ​ 108 ​ 151 ​ Group adjustments 1 ​ 47 ​ 35 ​ Impairment loss ​ (109) ​ — ​ Group’s carrying amount of investment at 28.3% (2021: 29.2%) ​ 46 ​ 186 ​ 1 Group adjustments include adjustments to align with Group policy.

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2022
INVENTORIES
Schedule of inventory	​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ $ million $ million Raw materials and consumables ​ 474 ​ 424 ​ Work-in-progress ​ 78 ​ 79 ​ Finished goods and goods for resale ​ 1,653 ​ 1,341 ​ ​ ​ 2,205 ​ 1,844 ​

TRADE AND OTHER RECEIVABLES (Ta

TRADE AND OTHER RECEIVABLES (Tables)	12 Months Ended
	Dec. 31, 2022
TRADE AND OTHER RECEIVABLES.
Schedule of trade and other receivables	​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ $ million $ million Trade and other receivables due within one year ​ ​ ​ ​ ​ Trade receivables ​ 1,076 ​ 1,028 ​ Less: loss allowance ​ (49) ​ (57) ​ Trade receivables – net ​ 1,027 ​ 971 ​ Derivatives – forward foreign exchange, currency swaps and interest rate contracts ​ 47 ​ 39 ​ Other receivables ​ 114 ​ 95 ​ Prepayments ​ 76 ​ 79 ​ ​ ​ 1,264 ​ 1,184 ​ Due after more than one year ​ ​ ​ ​ ​ Other non-current assets ​ 12 ​ 15 ​ ​ ​ 1,276 ​ 1,199 ​ ​
Schedule of trade receivables - net	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 Weighted average loss rate ​ 2022 Loss allowance ​ 2022 Gross carrying amount ​ 2021 Gross carrying amount ​ % $ million $ million $ million Not past due ​ -0.3% ​ (2) ​ 610 ​ 595 ​ Past due not more than 3 months ​ -0.4% ​ (1) ​ 228 ​ 217 ​ Past due more than 3 months ​ -1.0% ​ (1) ​ 97 ​ 88 ​ Past due more than 6 months ​ -31.9% ​ (45) ​ 141 ​ 128 ​ ​ ​ ​ ​ (49) ​ 1,076 ​ 1,028 ​ Loss allowance ​ ​ ​ ​ ​ (49) ​ (57) ​ Trade receivables – net ​ ​ ​ ​ ​ 1,027 ​ 971 ​ ​
Schedule of movements in loss allowance	​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ $ million $ million At 1 January 57 71 ​ Exchange adjustment (3) (3) ​ Net receivables provided during the year 4 3 ​ Utilisation of provision (9) (14) ​ At 31 December 49 57 ​ ​
Schedule of trade receivables denominated by currency	​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ $ million $ million US Dollar ​ 465 429 ​ Sterling ​ 37 34 ​ Euro ​ 215 201 ​ Other ​ 310 307 ​ Trade receivables – net ​ 1,027 971 ​

TRADE AND OTHER PAYABLES (Table

TRADE AND OTHER PAYABLES (Tables)	12 Months Ended
	Dec. 31, 2022
TRADE AND OTHER PAYABLES
Schedule of trade and other payables	​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ $ million $ million ​ Trade and other payables due within one year ​ ​ ​ Trade and other payables ​ 1,029 ​ 1,043 ​ Derivatives – forward foreign exchange, currency swaps and interest rate contracts ​ 43 ​ 19 ​ Acquisition consideration ​ 26 ​ 34 ​ ​ ​ 1,098 ​ 1,096 ​ Other payables due after one year ​ ​ ​ Acquisition consideration ​ 66 ​ 57 ​ Derivatives – forward foreign exchange, currency swaps and interest rate contracts ​ 13 ​ – ​ Other payables ​ 11 ​ 10 ​ ​ ​ 90 ​ 67 ​

CASH AND BORROWINGS (Tables)

CASH AND BORROWINGS (Tables)	12 Months Ended
	Dec. 31, 2022
CASH AND BORROWINGS
Schedule of net debt	​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ $ million $ million Bank overdrafts, borrowings and loans due within one year ​ 111 ​ 435 ​ Long-term bank borrowings ​ – ​ 554 ​ Corporate bond ​ 1,510 ​ 993 ​ Private placement notes ​ 1,055 ​ 1,160 ​ Borrowings ​ 2,676 ​ 3,142 ​ Cash at bank ​ (350) ​ (1,290) ​ Credit balance on derivatives – interest rate swaps ​ 13 ​ – ​ Net debt ​ 2,339 ​ 1,852 ​ Non-current lease liabilities ​ 147 ​ 141 ​ Current lease liabilities ​ 49 ​ 56 ​ Net debt including lease liabilities ​ 2,535 ​ 2,049 ​ ​
Schedule of borrowings repayable	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Within ​ Between ​ Between ​ Between ​ Between ​ ​ ​ ​ ​ ​ one year or ​ one and ​ two and ​ three and ​ four and ​ After ​ ​ ​ ​ on demand ​ two years ​ three years ​ four years ​ five years ​ five years ​ Total ​ $ million $ million $ million $ million $ million $ million $ million At 31 December 2022 ​ ​ ​ ​ ​ ​ ​ ​ Bank overdrafts ​ 6 ​ – ​ – ​ – ​ – ​ – ​ 6 ​ Corporate bond ​ – ​ – ​ – ​ – ​ – ​ 1,510 ​ 1,510 ​ Private placement notes ​ 105 ​ 430 ​ – ​ 75 ​ 140 ​ 410 ​ 1,160 ​ Lease liabilities 1 ​ 49 ​ 42 ​ 32 ​ 24 ​ 18 ​ 45 ​ 210 ​ ​ ​ 160 ​ 472 ​ 32 ​ 99 ​ 158 ​ 1,965 ​ 2,886 ​ At 31 December 2021 ​ ​ ​ ​ ​ ​ ​ ​ Bank loans ​ 305 ​ 554 ​ – ​ – ​ – ​ – ​ 859 ​ Bank overdrafts ​ 5 ​ – ​ – ​ – ​ – ​ – ​ 5 ​ Corporate bond ​ – ​ – ​ – ​ – ​ – ​ 993 ​ 993 ​ Private placement notes ​ 125 ​ 105 ​ 430 ​ – ​ 75 ​ 550 ​ 1,285 ​ Lease liabilities 1 ​ 56 ​ 33 ​ 33 ​ 23 ​ 18 ​ 47 ​ 210 ​ ​ ​ 491 ​ 692 ​ 463 ​ 23 ​ 93 ​ 1,590 ​ 3,352 ​ ​ 1 The lease liabilities presented above of $210 m (2021: $210 m) are on an undiscounted basis. The lease liabilities on a discounted basis, as outlined above, are $196 m (2021: $197 m). ​
Schedule of committed facility	​ ​ ​ ​ ​ Facility Date due ​ $105 million 3.26% Senior Notes ​ November 2023 ​ $100 million 3.89% Senior Notes ​ January 2024 ​ $305 million 3.36% Senior Notes ​ November 2024 ​ $25 million Floating Rate Senior Notes ​ November 2024 ​ $1.0 billion syndicated revolving credit facility ​ June 2025 ​ $75 million 3.99% Senior Notes ​ January 2026 ​ $140 million 2.83% Senior Notes ​ June 2027 ​ $60 million 2.90% Senior Notes ​ June 2028 ​ $100 million 2.97% Senior Notes ​ June 2029 ​ €500 million 4.565% EUR Corporate Bond ​ October 2029 ​ $95 million 2.99% Senior Notes ​ June 2030 ​ $1.0 billion 2.032% USD Corporate Bond ​ October 2030 ​ $155 million 3.09% Senior Notes ​ June 2032 ​ ​
Schedule of year end financial liabilities by contractual maturity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Within one ​ Between ​ Between ​ ​ ​ ​ ​ year or on ​ one and ​ two and ​ After ​ ​ ​ ​ demand ​ two years ​ five years ​ five years ​ Total ​ $ million $ million $ million $ million $ million At 31 December 2022 ​ ​ ​ ​ ​ Non-derivative financial liabilities: ​ ​ ​ ​ ​ Bank overdrafts and loans 6 ​ – ​ – ​ – ​ 6 ​ Corporate bond 37 ​ 37 ​ 111 ​ 1,620 ​ 1,805 ​ Trade and other payables 1,029 ​ – ​ – ​ – ​ 1,029 ​ Private placement notes 143 ​ 461 ​ 265 ​ 444 ​ 1,313 ​ Acquisition consideration 26 ​ 31 ​ 39 ​ – ​ 96 ​ Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency swaps/forward foreign exchange contracts – outflow 2,598 ​ – ​ – ​ – ​ 2,598 ​ Currency swaps/forward foreign exchange contracts – inflow (2,601) ​ – ​ – ​ – ​ (2,601) ​ ​ 1,238 ​ 529 ​ 415 ​ 2,064 ​ 4,246 ​ At 31 December 2021 ​ ​ ​ ​ ​ Non-derivative financial liabilities: ​ ​ ​ ​ ​ Bank overdrafts and loans 310 ​ 554 ​ – ​ – ​ 864 ​ Corporate bond ​ 20 ​ 20 ​ 61 ​ 1,077 ​ 1,178 ​ Trade and other payables 1,043 ​ – ​ – ​ – ​ 1,043 ​ Private placement notes 165 ​ 142 ​ 574 ​ 599 ​ 1,480 ​ Acquisition consideration 35 ​ 19 ​ 42 ​ – ​ 96 ​ Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency swaps/forward foreign exchange contracts – outflow 2,322 ​ – ​ – ​ – ​ 2,322 ​ Currency swaps/forward foreign exchange contracts – inflow (2,342) ​ – ​ – ​ – ​ (2,342) ​ ​ 1,553 ​ 735 ​ 677 ​ 1,676 ​ 4,641 ​ ​

FINANCIAL INSTRUMENTS AND RIS_2

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Table)	12 Months Ended
	Dec. 31, 2022
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
Schedule of items designated as hedging instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying ​ Carrying ​ Changes in ​ Hedge ​ Amounts reclassified ​ ​ ​ ​ Nominal ​ amount ​ amount ​ fair value ​ ineffectiveness ​ from hedging reserve ​ ​ ​ ​ amount ​ assets ​ liabilities ​ in OCI ​ in profit or loss ​ to profit or loss ​ Line item in ​ $ million $ million $ million $ million $ million $ million profit or loss At 31 December 2022 ​ ​ ​ ​ ​ ​ ​ Foreign currency risk ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Forward exchange contracts 1 ​ 2,598 ​ 47 ​ (43) ​ (13) ​ – ​ (37) ​ Cash flow hedges Interest rate risk ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swaps 2 ​ (500) ​ – ​ (13) ​ – ​ – ​ – ​ Fair value hedge At 31 December 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency risk ​ ​ ​ ​ ​ ​ ​ Forward exchange contracts 1 ​ 2,322 ​ 39 ​ (19) ​ 41 ​ – ​ 7 ​ Cash flow hedges Interest rate risk ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swaps 2 ​ – ​ – ​ – ​ – ​ – ​ – ​ N/A 1 Presented in Trade and other receivables and Trade and other payables on the Balance Sheet. 2 Presented in Non-current other payables on the Balance Sheet.
Currency and interest rate profile of interest bearing liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed rate liabilities ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ average ​ ​ ​ ​ ​ ​ ​ Interest ​ ​ ​ ​ ​ ​ ​ Weighted ​ time ​ ​ Gross ​ Currency ​ rate ​ Total ​ Floating ​ Fixed rate ​ average ​ for which ​ ​ borrowings ​ swaps ​ swaps ​ liabilities ​ rate liabilities ​ liabilities ​ interest rate ​ rate is fixed ​ $ million $ million $ million $ million $ million $ million % Years At 31 December 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ (2,159) ​ (163) ​ – ​ (2,322) ​ (193) ​ (2,129) ​ 2.7 ​ 5.9 ​ Other ​ (517) ​ (206) ​ (13) ​ (736) ​ (220) ​ (516) ​ ​ ​ ​ ​ Total interest bearing liabilities ​ (2,676) ​ (369) ​ (13) ​ (3,058) ​ (413) ​ (2,645) ​ ​ ​ At 31 December 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ (2,278) ​ (201) ​ – ​ (2,479) ​ (226) ​ (2,253) ​ 2.7 ​ 6.5 ​ Other ​ (864) ​ (136) ​ – ​ (1,000) ​ (1,000) ​ – ​ – ​ – ​ Total interest bearing liabilities ​ (3,142) ​ (337) ​ – ​ (3,479) ​ (1,226) ​ (2,253) ​ ​ ​ ​
Currency and interest rate profile of interest bearing assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash ​ Currency ​ Interest rate ​ Floating ​ Fixed ​ ​ at bank ​ swaps ​ swaps ​ Total assets ​ rate assets ​ rate assets ​ $ million $ million $ million $ million $ million $ million At 31 December 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ 207 ​ 205 ​ – ​ 412 ​ 412 ​ – ​ Other ​ 143 ​ 164 ​ – ​ 307 ​ 307 ​ – ​ Total interest bearing assets ​ 350 ​ 369 ​ – ​ 719 ​ 719 ​ – ​ At 31 December 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ 1,156 ​ 135 ​ – ​ 1,291 ​ 1,291 ​ – ​ Other ​ 134 ​ 202 ​ – ​ 336 ​ 336 ​ – ​ Total interest bearing assets ​ 1,290 ​ 337 ​ – ​ 1,627 ​ 1,627 ​ – ​
Schedule of fair value of financial instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying amount ​ ​ ​ ​ ​ Fair value ​ ​ ​ Fair value – hedging instruments ​ Amortised cost ​ Fair value through OCI ​ Fair value through profit or loss ​ Other financial liabilities ​ Total ​ Level 2 ​ Level 3 ​ Total ​ At 31 December 2022 $ million $ million $ million $ million $ million $ million $ million $ million $ million ​ Financial assets measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Forward foreign exchange contracts ​ 46 ​ – ​ – ​ – ​ – ​ 46 ​ 46 ​ – ​ 46 ​ Investments ​ – ​ – ​ – ​ 12 ​ – ​ 12 ​ – ​ 12 ​ 12 ​ Contingent consideration receivable ​ – ​ – ​ – ​ 18 ​ – ​ 18 ​ – ​ 18 ​ 18 ​ Currency swaps ​ – ​ – ​ 1 ​ – ​ – ​ 1 ​ 1 ​ – ​ 1 ​ ​ ​ 46 ​ – ​ 1 ​ 30 ​ – ​ 77 ​ ​ ​ ​ ​ ​ Financial liabilities measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition consideration ​ – ​ – ​ – ​ (78) ​ – ​ (78) ​ – ​ (78) ​ (78) ​ Forward foreign exchange contracts ​ (42) ​ – ​ – ​ – ​ – ​ (42) ​ (42) ​ – ​ (42) ​ Interest rate swaps ​ (13) ​ – ​ – ​ – ​ – ​ (13) ​ (13) ​ – ​ (13) ​ Currency swaps ​ – ​ – ​ (1) ​ – ​ – ​ (1) ​ (1) ​ – ​ (1) ​ ​ ​ (55) ​ – ​ (1) ​ (78) ​ – ​ (134) ​ ​ ​ ​ Financial assets not measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade and other receivables ​ 1,123 ​ – ​ – ​ – ​ – ​ 1,123 ​ ​ ​ ​ Cash at bank ​ – ​ 350 ​ – ​ – ​ – ​ 350 ​ ​ ​ ​ ​ ​ 1,123 ​ 350 ​ – ​ – ​ – ​ 1,473 ​ ​ ​ ​ Financial liabilities not measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition consideration ​ – ​ – ​ – ​ – ​ (14) ​ (14) ​ ​ ​ ​ Bank overdrafts ​ – ​ – ​ – ​ – ​ (6) ​ (6) ​ ​ ​ ​ Corporate bond not in a hedge relationship ​ – ​ – ​ – ​ – ​ (994) ​ (994) ​ ​ ​ ​ ​ ​ ​ Corporate bond in a hedge relationship ​ – ​ – ​ – ​ – ​ (516) ​ (516) ​ ​ ​ ​ Private placement debt not in a hedge relationship ​ – ​ – ​ – ​ – ​ (1,160) ​ (1,160) ​ ​ ​ ​ ​ ​ ​ Trade and other payables ​ – ​ – ​ – ​ – ​ (1,040) ​ (1,040) ​ ​ ​ ​ ​ ​ – ​ – ​ – ​ – ​ (3,730) ​ (3,730) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying amount ​ ​ ​ ​ ​ Fair value ​ ​ ​ Fair value – hedging instruments ​ Amortised cost ​ Fair value through OCI ​ Fair value through profit or loss ​ Other financial liabilities ​ Total ​ Level 2 ​ Level 3 ​ Total ​ At 31 December 2021 $ million $ million $ million $ million $ million $ million $ million $ million $ million ​ Financial assets measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Forward foreign exchange contracts ​ 37 ​ – ​ – ​ – ​ – ​ 37 ​ 37 ​ – ​ 37 ​ Investments ​ – ​ – ​ – ​ 10 ​ – ​ 10 ​ – ​ 10 ​ 10 ​ Contingent consideration receivable ​ – ​ – ​ – ​ 20 ​ – ​ 20 ​ – ​ 20 ​ 20 ​ Currency swaps ​ – ​ – ​ 2 ​ – ​ – ​ 2 ​ 2 ​ – ​ 2 ​ ​ ​ 37 ​ – ​ 2 ​ 30 ​ – ​ 69 ​ ​ ​ ​ ​ ​ Financial liabilities measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition consideration ​ – ​ – ​ – ​ (84) ​ – ​ (84) ​ – ​ (84) ​ (84) ​ Forward foreign exchange contracts ​ (17) ​ – ​ – ​ – ​ – ​ (17) ​ (17) ​ – ​ (17) ​ Currency swaps ​ – ​ – ​ (2) ​ – ​ – ​ (2) ​ (2) ​ – ​ (2) ​ ​ ​ (17) ​ – ​ (2) ​ (84) ​ – ​ (103) ​ ​ ​ ​ Financial assets not measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade and other receivables ​ 1,046 ​ – ​ – ​ – ​ – ​ 1,046 ​ ​ ​ ​ Cash at bank ​ – ​ 1,290 ​ – ​ – ​ – ​ 1,290 ​ ​ ​ ​ ​ ​ 1,046 ​ 1,290 ​ – ​ – ​ – ​ 2,336 ​ ​ ​ ​ Financial liabilities not measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition consideration ​ – ​ – ​ – ​ – ​ (7) ​ (7) ​ ​ ​ ​ Bank overdrafts ​ – ​ – ​ – ​ – ​ (5) ​ (5) ​ ​ ​ ​ Bank loans ​ – ​ – ​ – ​ – ​ (859) ​ (859) ​ ​ ​ ​ Corporate bond ​ – ​ – ​ – ​ – ​ (993) ​ (993) ​ ​ ​ ​ Private placement debt not in a hedge relationship ​ – ​ – ​ – ​ – ​ (1,285) ​ (1,285) ​ ​ ​ ​ ​ ​ ​ Trade and other payables ​ – ​ – ​ – ​ – ​ (1,053) ​ (1,053) ​ ​ ​ ​ ​ ​ – ​ – ​ – ​ – ​ (4,202) ​ (4,202) ​ ​ ​ ​ ​
Schedule of movements for financial instruments measured using Level 3 valuation methods	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ $ million $ million ​ Investments ​ ​ ​ ​ ​ At 1 January ​ 10 ​ 9 ​ Additions ​ 2 ​ 2 ​ Fair value remeasurement ​ – ​ (1) ​ At 31 December ​ 12 ​ 10 ​ ​ ​ ​ ​ ​ ​ Contingent consideration receivable ​ ​ ​ ​ ​ At 1 January ​ 20 ​ 37 ​ Remeasurements ​ – ​ 1 ​ Receipts ​ (2) ​ (18) ​ At 31 December ​ 18 ​ 20 ​ ​ ​ ​ ​ ​ ​ Acquisition consideration liability ​ ​ ​ ​ ​ At 1 January ​ (84) ​ (128) ​ Arising on acquisitions ​ (32) ​ – ​ Payments ​ 20 ​ 23 ​ Remeasurements ​ 19 ​ 21 ​ Discount unwind ​ (1) ​ – ​ At 31 December ​ (78) ​ (84) ​

PROVISIONS AND CONTINGENCIES (T

PROVISIONS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2022
PROVISIONS AND CONTINGENCIES
Schedule of provisions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rationalisation ​ Legal and other ​ ​ ​ ​ ​ provisions ​ Metal-on-metal ​ provisions ​ Total ​ ​ ​ $ million $ million $ million $ million ​ At 1 January 2021 ​ ​ ​ 29 ​ 336 ​ 52 ​ 417 ​ Charge to income statement ​ ​ ​ 115 ​ – ​ 13 ​ 128 ​ Release to income statement ​ ​ ​ (2) ​ – ​ (1) ​ (3) ​ Unwinding of discount ​ ​ ​ – ​ 8 ​ – ​ 8 ​ Utilised ​ ​ ​ (124) ​ (55) ​ (13) ​ (192) ​ Exchange adjustment ​ ​ ​ – ​ – ​ (1) ​ (1) ​ At 31 December 2021 ​ ​ ​ 18 ​ 289 ​ 50 ​ 357 ​ Charge to income statement ​ ​ ​ 169 ​ 19 ​ 19 ​ 207 ​ Release to income statement ​ ​ ​ (2) ​ – ​ (5) ​ (7) ​ Unwinding of discount ​ ​ ​ – ​ 7 ​ – ​ 7 ​ Utilised ​ ​ ​ (154) ​ (76) ​ (6) ​ (236) ​ Exchange adjustment ​ ​ ​ (1) ​ – ​ – ​ (1) ​ At 31 December 2022 ​ ​ ​ 30 ​ 239 ​ 58 ​ 327 ​ Provisions – due within one year ​ ​ ​ 30 ​ 165 ​ 48 ​ 243 ​ Provisions – due after one year ​ ​ ​ – ​ 74 ​ 10 ​ 84 ​ At 31 December 2022 ​ ​ ​ 30 ​ 239 ​ 58 ​ 327 ​ Provisions – due within one year ​ ​ ​ 18 ​ 263 ​ 41 ​ 322 ​ Provisions – due after one year ​ ​ ​ – ​ 26 ​ 9 ​ 35 ​ At 31 December 2021 ​ ​ ​ 18 ​ 289 ​ 50 ​ 357 ​ ​

RETIREMENT BENEFIT OBLIGATIONS

RETIREMENT BENEFIT OBLIGATIONS (Table)	12 Months Ended
	Dec. 31, 2022
RETIREMENT BENEFIT OBLIGATIONS
Schedule of the Group's retirement benefit obligations	​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ $ million $ million ​ Funded plans: ​ ​ ​ UK Plan ​ 114 ​ 137 ​ US Plan ​ 24 ​ 40 ​ Other plans ​ (5) ​ (18) ​ ​ ​ 133 ​ 159 ​ Unfunded plans: ​ ​ ​ Other plans ​ (52) ​ (91) ​ Retirement healthcare ​ (10) ​ (13) ​ ​ ​ 71 ​ 55 ​ Amount recognised on the balance sheet – liability ​ (70) ​ (127) ​ Amount recognised on the balance sheet – asset ​ 141 ​ 182 ​
Reconciliation of benefit obligations and pension assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ ​ ​ ​ 2021 ​ Obligation Asset Total Obligation ​ Asset ​ Total ​ $ million $ million $ million $ million $ million $ million Amounts recognised on the balance sheet at beginning of the period (1,582) 1,637 55 (1,714) 1,684 (30) ​ Income statement expense: ​ ​ ​ ​ ​ ​ Current service cost (9) ​ – ​ (9) (12) ​ – (12) ​ Past service credit – ​ – ​ – (1) ​ – (1) ​ Settlements ​ 4 ​ (4) ​ – ​ 1 ​ (1) ​ – ​ Interest (expense)/income (29) ​ 30 ​ 1 (25) ​ 25 – ​ Administration costs and taxes (3) ​ – ​ (3) (3) ​ – (3) ​ Costs recognised in income statement (37) 26 (11) (40) 24 (16) ​ Remeasurements: ​ Actuarial (loss)/gain due to liability experience (43) ​ – ​ (43) 2 ​ – 2 ​ Actuarial gain due to financial assumptions change 503 ​ – ​ 503 43 ​ – 43 ​ Actuarial gain due to demographic assumptions 1 ​ – ​ 1 25 ​ – 25 ​ Return on plan assets (less)/greater than discount rate – ​ (431) ​ (431) – ​ 9 9 ​ Remeasurements recognised in OCI 461 (431) 30 70 9 79 ​ Cash: ​ Employer contributions – ​ 6 ​ 6 – ​ 14 14 ​ Employee contributions (3) ​ 3 ​ – (3) ​ 3 – ​ Benefits paid directly by the Group 2 ​ – ​ 2 2 ​ – 2 ​ Benefits paid, taxes and administration costs paid from scheme assets 81 ​ (83) ​ (2) 79 ​ (79) – ​ Net cash 80 (74) 6 78 (62) 16 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange movements 94 ​ (103) ​ (9) 24 ​ (18) 6 ​ Amount recognised on the balance sheet (984) 1,055 71 (1,582) 1,637 55 ​ Amount recognised on the balance sheet – liability (194) ​ 124 ​ (70) (271) ​ 144 (127) ​ Amount recognised on the balance sheet – asset (790) ​ 931 ​ 141 (1,311) ​ 1,493 182 ​ Represented by: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ ​ ​ ​ 2021 ​ Obligation Asset Total Obligation Asset Total ​ $ million $ million $ million $ million $ million $ million UK Plan ​ (438) ​ 552 ​ 114 ​ (819) ​ 956 ​ 137 ​ US Plan ​ (336) ​ 360 ​ 24 ​ (463) ​ 503 ​ 40 ​ Other Plans ​ (210) ​ 143 ​ (67) ​ (300) ​ 178 ​ (122) ​ Total ​ (984) ​ 1,055 ​ 71 ​ (1,582) ​ 1,637 ​ 55 ​ ​
Market value of the US, UK and Other Plans assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ $ million $ million $ million UK Plan: ​ ​ ​ ​ Assets with a quoted market price: ​ ​ ​ ​ Cash and cash equivalents ​ 2 ​ 4 ​ 10 ​ Equity securities ​ 3 ​ 84 ​ 91 ​ Other bonds ​ 30 ​ 50 ​ 49 ​ Short dated credit fund ​ 81 ​ 126 ​ 127 ​ Liability driven investments ​ 225 ​ 370 ​ 347 ​ Diversified growth funds ​ 55 ​ 89 ​ 89 ​ ​ ​ 396 ​ 723 ​ 713 ​ Other assets: ​ ​ ​ ​ Insurance contract ​ 156 ​ 233 ​ 250 ​ Market value of assets ​ 552 ​ 956 ​ 963 ​ US Plan: ​ ​ ​ ​ Assets with a quoted market price: ​ ​ ​ ​ ​ Cash and cash equivalents ​ 120 ​ 6 ​ 2 ​ Equity securities ​ – ​ 50 ​ 60 ​ Government bonds – fixed interest ​ 43 ​ 201 ​ 163 ​ Corporate bonds ​ 197 ​ 246 ​ 316 ​ Market value of assets ​ 360 ​ 503 ​ 541 ​ Other Plans: ​ ​ ​ ​ Assets with a quoted market price: ​ ​ ​ ​ ​ Cash and cash equivalents ​ 7 ​ 5 ​ 5 ​ Equity securities ​ 49 ​ 55 ​ 51 ​ Government bonds – fixed interest ​ 7 ​ 5 ​ 9 ​ Government bonds – index linked ​ – ​ 4 ​ 4 ​ Corporate and other bonds ​ 10 ​ 11 ​ 10 ​ Insurance contracts ​ 21 ​ 33 ​ 37 ​ Property ​ 22 ​ 23 ​ 23 ​ Other quoted securities ​ 5 ​ 8 ​ 5 ​ ​ ​ 121 ​ 144 ​ 144 ​ Other assets: ​ ​ ​ ​ Insurance contracts ​ 22 ​ 34 ​ 36 ​ Market value of assets ​ 143 ​ 178 ​ 180 ​ Total market value of assets ​ 1,055 ​ 1,637 ​ 1,684 ​ ​
Principal actuarial assumptions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ % per annum % per annum % per annum UK Plan: ​ ​ ​ ​ Discount rate ​ 4.8 ​ 1.9 ​ 1.3 ​ Future salary increases ​ n/a ​ n/a ​ n/a ​ Future pension increases ​ 3.3 ​ 3.4 ​ 2.9 ​ Inflation (RPI) ​ 3.3 ​ 3.4 ​ 2.9 ​ Inflation (CPI) ​ 2.3 ​ 2.7 ​ 2.1 ​ US Plan: ​ ​ ​ ​ ​ ​ ​ Discount rate ​ 5.3 ​ 2.7 ​ 2.4 ​ Future salary increases ​ n/a ​ n/a ​ n/a ​ Inflation ​ n/a ​ n/a ​ n/a ​ ​
Current longevities underlying the values of the obligations in the defined benefit plans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ years years years Life expectancy at age 60 ​ ​ ​ ​ UK Plan: ​ ​ ​ ​ Males ​ 27.4 ​ 27.6 ​ 27.6 ​ Females ​ 30.1 ​ 30.1 ​ 30.1 ​ US Plan: ​ ​ ​ ​ ​ ​ ​ Males ​ 24.9 ​ 24.7 ​ 24.7 ​ Females ​ 27.1 ​ 26.8 ​ 26.8 ​ Life expectancy at age 60 in 20 years’ time ​ ​ ​ ​ UK Plan: ​ ​ ​ ​ Males ​ 28.9 ​ 29.1 ​ 29.1 ​ Females ​ 31.5 ​ 31.5 ​ 31.5 ​ US Plan: ​ ​ ​ ​ ​ ​ ​ Males ​ 24.9 ​ 24.6 ​ 24.6 ​ Females ​ 27.6 ​ 27.3 ​ 27.3 ​
Sensitivity analysis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase in pension obligation ​ Increase in pension cost $ million +50bps/+1yr -50bps/-1yr +50bps/+1 yr -50bps/-1yr UK Plan: ​ ​ ​ ​ ​ ​ ​ ​ Discount rate (29.0) ​ 32.0 ​ (1.0) ​ 2.0 ​ Inflation 29.0 ​ (27.0) ​ 2.0 ​ – ​ Mortality 16.0 ​ (17.0) ​ 1.0 ​ – ​ US Plan: ​ ​ ​ ​ ​ ​ ​ ​ Discount rate (14.0) ​ 14.0 ​ – ​ – ​ Mortality 8.0 ​ (8.0) ​ – ​ – ​ ​
Risk	The pension plans expose the Group to the following risks: Interest rate risk Volatility in financial markets can change the calculations of the obligation significantly as the calculation of the obligation is linked to yields on AA rated corporate bonds. A decrease in the bond yield will increase the measure of plan liabilities, although this will be partially offset by increases in the value of matching plan assets such as bonds and insurance contracts. In the UK, the liability matching portfolio held in conventional and index-linked gilts was transferred into liability driven investments in order to reduce interest rate risk. Inflation risk The UK Plan is linked to inflation. A high rate of inflation will lead to a higher liability. This risk is managed by holding inflation-linked bonds and an inflation-linked insurance contract in respect of some of the obligation. In the UK, the liability matching portfolio held in conventional and index-linked gilts was transferred into liability driven investments in order to reduce inflation risk. The UK Plan is closed to future accrual which reduces the exposure to this risk. The US Plan is also closed to future accrual and has no other inflation-linkage thus eliminating the exposure to this risk. Investment risk If the return on plan assets is below the discount rate, all else being equal, there will be an increase in the plan deficit. In the UK, this risk is partially managed by a portfolio of liability matching assets and a bulk annuity, together with a dynamic de-risking policy to switch growth assets into liability matching assets over time. The US Plan has a dynamic de-risking policy to shift plan assets from return-seeking (growth) assets to liability matching assets over time. The US Pension Plan has an established glide path that is designed to stabilise funding status by reducing the plan’s exposure to return-seeking assets. Longevity risk The present value of the plan’s defined benefit liability is calculated by reference to the best estimate of the mortality of the plan participants both during and after their employment. An increase in the life expectancy of plan participants above that assumed will increase the benefit obligation. The UK Plan, in order to minimise longevity risk, has entered into an insurance contract which covers a portion of pensioner obligations.

EQUITY (Table)

EQUITY (Table)	12 Months Ended
	Dec. 31, 2022
EQUITY.
Schedule of share capital	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ordinary shares (20¢) ​ Deferred shares (£1.00) ​ Total ​ Thousand $ million Thousand $ million $ million Authorised ​ ​ ​ ​ ​ ​ At 31 December 2020 ​ 1,223,591 ​ 245 ​ 50 ​ – ​ 245 ​ At 31 December 2021 ​ 1,223,591 ​ 245 ​ 50 ​ – ​ 245 ​ At 31 December 2022 ​ 1,223,591 ​ 245 ​ 50 ​ – ​ 245 ​ Allotted, issued and fully paid ​ ​ ​ ​ ​ ​ At 1 January 2020 ​ 885,207 ​ 177 ​ 50 ​ – ​ 177 ​ Share options ​ 327 ​ – ​ – ​ – ​ – ​ Shares cancelled ​ (649) ​ – ​ – ​ – ​ – ​ At 31 December 2020 ​ 884,885 ​ 177 ​ 50 ​ – ​ 177 ​ Share options ​ 306 ​ – ​ – ​ – ​ – ​ At 31 December 2021 ​ 885,191 ​ 177 ​ 50 ​ – ​ 177 ​ Share options ​ 229 ​ – ​ – ​ – ​ – ​ Shares cancelled ​ (7,770) ​ (2) ​ – ​ – ​ (2) ​ At 31 December 2022 ​ 877,650 ​ 175 ​ 50 ​ – ​ 175 ​ ​
Schedule of the capital	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ $ million $ million $ million Share capital ​ 175 ​ 177 ​ 177 ​ Share premium ​ 615 ​ 614 ​ 612 ​ Capital redemption reserve ​ 20 ​ 18 ​ 18 ​ Treasury shares ​ (118) ​ (120) ​ (157) ​ Retained earnings and other reserves ​ 4,567 ​ 4,879 ​ 4,629 ​ ​ ​ 5,259 ​ 5,568 ​ 5,279 ​ ​
Schedule of treasury shares	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employees’ ​ ​ ​ ​ Treasury ​ Share Trust ​ Total ​ $ million $ million $ million At 1 January 2021 ​ 136 ​ 21 ​ 157 ​ Shares transferred from treasury ​ (30) ​ 30 ​ – ​ Shares transferred to Group beneficiaries ​ (13) ​ (24) ​ (37) ​ At 31 December 2021 ​ 93 ​ 27 ​ 120 ​ Shares purchased ​ 150 ​ 8 ​ 158 ​ Shares transferred from treasury ​ (41) ​ 41 ​ – ​ Shares transferred to Group beneficiaries ​ (6) ​ (25) ​ (31) ​ Shares cancelled ​ (129) ​ – ​ (129) ​ At 31 December 2022 ​ 67 ​ 51 ​ 118 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employees’ ​ ​ ​ ​ Treasury ​ Share Trust ​ Total ​ ​ ​ Number ​ Number ​ Number ​ ​ ​ of shares ​ of shares ​ of shares ​ million million million At 1 January 2021 ​ 7.9 ​ 1.2 ​ 9.1 ​ Shares transferred from treasury ​ (1.7) ​ 1.7 ​ – ​ Shares transferred to Group beneficiaries ​ (0.8) ​ (1.3) ​ (2.1) ​ At 31 December 2021 ​ 5.4 ​ 1.6 ​ 7.0 ​ Shares purchased ​ 9.7 ​ 0.4 ​ 10.1 ​ Shares transferred from treasury ​ (2.6) ​ 2.6 ​ – ​ Shares transferred to Group beneficiaries ​ (0.4) ​ (1.4) ​ (1.8) ​ Shares cancelled ​ (7.8) ​ – ​ (7.8) ​ At 31 December 2022 ​ 4.3 ​ 3.2 ​ 7.5 ​ ​
Schedule of dividends	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ $ million $ million $ million The following dividends were declared and paid in the year: ​ ​ ​ ​ Ordinary final of 23.1¢ for 2021 (2020: 23.1¢, 2019: 23.1¢) paid 11 May 2022 ​ 202 ​ 203 ​ 202 ​ Ordinary interim of 14.4¢ for 2022 (2021: 14.4¢, 2020: 14.4¢) paid 26 October 2022 ​ 125 ​ 126 ​ 126 ​ ​ ​ 327 ​ 329 ​ 328 ​ ​

CASH FLOW STATEMENT (Tables)

CASH FLOW STATEMENT (Tables)	12 Months Ended
	Dec. 31, 2022
CASH FLOW STATEMENT
Schedule of cash flow statement	Analysis of net debt including lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Borrowings ​ ​ ​ ​ Cash ​ Overdrafts ​ Due within one year ​ Due after one year ​ Net currency swaps ​ Net interest swaps ​ Total ​ $ million $ million $ million $ million $ million $ million $ million At 1 January 2020 277 (20) (6) (1,851) – – (1,600) ​ IFRS 16 lease liabilities ​ – ​ – ​ (46) ​ (124) ​ – ​ – ​ (170) ​ Net debt including lease ​ 277 ​ (20) ​ (52) ​ (1,975) ​ – ​ – ​ (1,770) ​ Net cash flow/debt movement 1,484 ​ 9 ​ (260) ​ (1,285) ​ (7) ​ – (59) ​ Exchange adjustment 1 ​ – ​ (2) ​ (79) ​ 7 ​ 2 (71) ​ Corporate bond issuance expense ​ – ​ – ​ – ​ 8 ​ – ​ – ​ 8 ​ IFRS 16 lease liabilities movement – ​ – ​ (12) ​ (22) ​ – ​ – ​ (34) ​ At 31 December 2020 1,762 (11) (326) (3,353) – 2 (1,926) ​ Net cash flow/debt movement (466) ​ 7 ​ (162) ​ 429 ​ 4 ​ – (188) ​ Exchange adjustment ​ (6) ​ (1) ​ – ​ 72 ​ (4) ​ (2) ​ 59 ​ Corporate bond issuance expense ​ – ​ – ​ – ​ (1) ​ – ​ – ​ (1) ​ IFRS 16 lease liabilities movement – ​ – ​ 2 ​ 5 ​ – ​ – 7 ​ At 31 December 2021 1,290 (5) (486) (2,848) – – (2,049) ​ Net cash flow/debt movement (931) ​ 1 ​ 302 ​ 94 ​ (3) ​ – (537) ​ Exchange adjustment (9) ​ (2) ​ 23 ​ 45 ​ 3 ​ (13) 47 ​ Corporate bond issuance expense – ​ – ​ – ​ 3 ​ – ​ – ​ 3 ​ IFRS 16 lease liabilities movement ​ – ​ – ​ 7 ​ (6) ​ – ​ – ​ 1 ​ Net debt including lease liabilities at 31 December 2022 350 (6) (154) (2,712) – (13) (2,535) ​ ​ ​ Group financial statements continued Notes to the Group accounts continued 20 continued Reconciliation of net cash flow to movement in net debt including lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ $ million $ million $ million Net cash flow from cash net of overdrafts ​ (930) ​ (459) ​ 1,493 ​ Settlement of currency swaps ​ (3) ​ 4 ​ (7) ​ Net cash flow from borrowings ​ 396 ​ 267 ​ (1,545) ​ Change in net debt from net cash flow ​ (537) ​ (188) ​ (59) ​ IFRS 16 lease liabilities ​ 1 ​ 7 ​ (34) ​ Exchange adjustment ​ 47 ​ 59 ​ (71) ​ Corporate bond issuance expense ​ 3 ​ (1) ​ 8 ​ Change in net debt in the year ​ (486) ​ (123) ​ (156) ​ Opening net debt ​ (2,049) ​ (1,926) ​ (1,770) ​ Closing net debt ​ (2,535) ​ (2,049) ​ (1,926) ​ ​ Cash and cash equivalents For the purposes of the Group cash flow statement, cash and cash equivalents at 31 December 2022 comprise cash at bank net of bank overdrafts. ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ $ million $ million $ million Cash at bank ​ 350 ​ 1,290 ​ 1,762 ​ Bank overdrafts ​ (6) ​ (5) ​ (11) ​ Cash and cash equivalents ​ 344 ​ 1,285 ​ 1,751 ​ The Group operates in over 100 countries around the world, some of which impose restrictions over cash movement. These restrictions have only a minimal impact of the management on the Group’s cash. Cash outflows/(inflows) arising from financing activities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Repayment ​ Borrowing ​ Proceeds from ​ Repayment ​ Cash outflow/ ​ ​ ​ ​ ​ Proceeds from own ​ ​ ​ of bank of bank Corporate of lease (inflow) ​ Purchase of shares/issue of ​ ​ ​ loans 1 ​ loans 1 ​ Bond issue ​ liabilities ​ from other ​ Dividends ​ own shares ​ ordinary shares ​ Total 2022 ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million Debt ​ 881 ​ – ​ (485) ​ 54 ​ (3) ​ – ​ – ​ – ​ 447 Equity – ​ – ​ – ​ – ​ – ​ 327 ​ 158 ​ (6) 479 Total 881 – (485) 54 (3) 327 158 (6) 926 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 Debt ​ 267 ​ – ​ – ​ 59 ​ 4 ​ – ​ – ​ – ​ 330 Equity ​ – ​ – ​ – ​ – ​ – ​ 329 ​ – ​ (14) 315 Total ​ 267 ​ – ​ – ​ 59 ​ 4 ​ 329 ​ – ​ (14) 645 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 Debt ​ 405 ​ (950) ​ (1,000) ​ 55 ​ (7) ​ – ​ – ​ – ​ (1,497) Equity – ​ – ​ – ​ – ​ – ​ 328 ​ 16 ​ (11) ​ 333 Total 405 ​ (950) ​ (1,000) ​ 55 ​ (7) ​ 328 ​ 16 ​ (11) ​ (1,164) 1 This includes drawdown and repayment of the syndicated revolving credit facility.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2022
Engage Surgical
Ifrs Statement [Line Items]
Schedule of fair value of assets acquired and liabilities assumed	​ ​ ​ ​ ​ Engage Surgical ​ $ million Intangible assets – Product-related ​ 44 Property, plant and equipment ​ 2 Inventory ​ 2 Trade and other payables ​ (1) Net assets ​ 47 Goodwill ​ 84 Consideration (net of $nil cash acquired) ​ 131 ​
Extremity Orthopaedics
Ifrs Statement [Line Items]
Schedule of fair value of assets acquired and liabilities assumed	​ ​ ​ ​ ​ Extremity Orthopaedics ​ ​ $ million Intangible assets – Product-related ​ 101 Intangible assets – Customer-related ​ 11 Property, plant and equipment ​ 22 Inventory ​ 41 Other payables ​ (23) Net deferred tax asset ​ (12) Net assets ​ 140 Goodwill ​ 96 Consideration (net of $nil cash acquired) ​ 236 ​
Tusker Medical, Inc.
Ifrs Statement [Line Items]
Schedule of fair value of assets acquired and liabilities assumed	​ ​ ​ ​ ​ ​ Tusker ​ ​ ​ $ million ​ Intangible assets – Product-related ​ 53 ​ Property, plant and equipment ​ 6 ​ Other receivables ​ 1 ​ Trade and other payables ​ (6) ​ Non-current liabilities ​ (3) ​ Net deferred tax asset ​ 5 ​ Net assets ​ 56 ​ Goodwill ​ 83 ​ Consideration (net of $nil cash acquired) ​ 139 ​ ​

OTHER NOTES TO THE ACCOUNTS (Ta

OTHER NOTES TO THE ACCOUNTS (Tables)	12 Months Ended
	Dec. 31, 2022
OTHER NOTES TO THE ACCOUNTS
Schedule of remuneration of executive officers (including Non-Executive Directors)	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ $ million $ million $ million Short-term employee benefits ​ 17 ​ 16 ​ 12 ​ Share-based payments expense ​ 10 ​ 7 ​ 5 ​ Pension and post-employment benefit entitlements ​ 2 ​ 1 ​ 2 ​ ​ ​ 29 ​ 24 ​ 19 ​ ​

BASIS OF PREPARATION (Details)

BASIS OF PREPARATION (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) £ / $	Dec. 31, 2022 USD ($) € / $	Dec. 31, 2022 USD ($) SFr / $	Dec. 31, 2021 USD ($) £ / $	Dec. 31, 2021 USD ($) € / $	Dec. 31, 2021 USD ($) SFr / $	Dec. 31, 2020 USD ($) £ / $	Dec. 31, 2020 USD ($) € / $	Dec. 31, 2020 USD ($) SFr / $	Dec. 31, 2022 £ / $	Dec. 31, 2022 € / $	Dec. 31, 2022 SFr / $	Dec. 31, 2021 £ / $	Dec. 31, 2021 € / $	Dec. 31, 2021 SFr / $	Dec. 31, 2020 £ / $	Dec. 31, 2020 € / $	Dec. 31, 2020 SFr / $	Dec. 31, 2019 USD ($)
Disclosure of detailed informations about basis of preparation [line items]
Net cash and cash equivalents	$ 344	$ 344	$ 344	$ 344	$ 344	$ 344	$ 1,285	$ 1,285	$ 1,285	$ 1,751	$ 1,751	$ 1,751										$ 257
Net Debt	2,339	2,339	2,339	2,339	2,339	2,339	1,852	1,852	1,852													$ 1,600
Borrowings	2,676	2,676	2,676	$ 2,676	$ 2,676	$ 2,676	$ 3,142	$ 3,142	$ 3,142
Exchange rates
Average rates				1.23	1.05	1.05	1.38	1.18	1.09	1.28	1.14	1.07
Year end rates													1.21	1.07	1.08	1.35	1.13	1.10	1.37	1.23	1.14
Immaterial product intangible assets
Disclosure of detailed informations about basis of preparation [line items]
Impairment		39
Committed facilities
Disclosure of detailed informations about basis of preparation [line items]
Committed facilities	$ 3,700	3,700	3,700	$ 3,700	$ 3,700	$ 3,700	$ 4,100	$ 4,100	$ 4,100
Debt instrument term	5 years 1 month 6 days
Private placement debt
Disclosure of detailed informations about basis of preparation [line items]
Borrowings	$ 105	105	105	105	105	105
Borrowings Subject To Financial Covenants	1,160	1,160	$ 1,160	1,160	1,160	1,160
Leverage Ratio			3.5
Orthopaedics
Disclosure of detailed informations about basis of preparation [line items]
Percentage of inventory			60
Percentage of total provision for excess and obsolete inventory			80
Excess and obsolete inventory
Disclosure of detailed informations about basis of preparation [line items]
Other provisions	$ 504	$ 504	$ 504	$ 504	$ 504	$ 504	$ 430	$ 430	$ 430

BUSINESS SEGMENT INFORMATION (D

BUSINESS SEGMENT INFORMATION (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) segment item	Dec. 31, 2021 USD ($) item segment	Dec. 31, 2020 USD ($) segment item
Disclosure of operating segments [line items]
Number of global franchise divisions | item	3	3	3
Number of reportable segments | segment	3	3	3
Revenue	$ 5,215	$ 5,212	$ 4,560
Unsatisfied performance obligation	0
Accrual for rebates	103	97
Revenue recognised, rebates	369
United Kingdom
Disclosure of operating segments [line items]
Revenue	186	189	166
United States of America
Disclosure of operating segments [line items]
Revenue	2,764	2,658	2,339
China
Disclosure of operating segments [line items]
Revenue	319	352	318
Orthopaedics
Disclosure of operating segments [line items]
Revenue	2,113	2,156	1,917
Sports Medicine & ENT
Disclosure of operating segments [line items]
Revenue	1,590	1,560	1,333
Advanced Wound Management
Disclosure of operating segments [line items]
Revenue	1,512	1,496	1,310
Sports Medicine Joint Repair | Sports Medicine & ENT
Disclosure of operating segments [line items]
Revenue	870	839	710
Arthroscopic Enabling Technologies | Sports Medicine & ENT
Disclosure of operating segments [line items]
Revenue	567	590	517
ENT (Ear, Nose and Throat) | Sports Medicine & ENT
Disclosure of operating segments [line items]
Revenue	153	131	106
Knee Implants | Orthopaedics
Disclosure of operating segments [line items]
Revenue	899	876	822
Hip Implants | Orthopaedics
Disclosure of operating segments [line items]
Revenue	584	612	567
Other Reconstruction | Orthopaedics
Disclosure of operating segments [line items]
Revenue	87	92	68
Trauma & Extremities | Orthopaedics
Disclosure of operating segments [line items]
Revenue	543	576	460
Advanced Wound Management
Disclosure of operating segments [line items]
Revenue	1,512	1,496	1,310
Advanced Wound Management | Established Markets
Disclosure of operating segments [line items]
Revenue	1,319	1,327	1,170
Advanced Wound Management | Emerging Markets
Disclosure of operating segments [line items]
Revenue	193	169	140
Advanced Wound Care | Advanced Wound Management
Disclosure of operating segments [line items]
Revenue	712	731	647
Advanced Wound Bioactives | Advanced Wound Management
Disclosure of operating segments [line items]
Revenue	520	496	431
Advanced Wound Devices | Advanced Wound Management
Disclosure of operating segments [line items]
Revenue	280	269	232
Orthopaedics, Sports Medicine and Ear Nose and Throat [Member]
Disclosure of operating segments [line items]
Revenue	3,703	3,716	3,250
Orthopaedics, Sports Medicine and Ear Nose and Throat [Member] | Established Markets
Disclosure of operating segments [line items]
Revenue	2,949	2,969	2,619
Orthopaedics, Sports Medicine and Ear Nose and Throat [Member] | Emerging Markets
Disclosure of operating segments [line items]
Revenue	754	747	631
Orthopaedics, Sports Medicine and ENT and Advanced Wound Management
Disclosure of operating segments [line items]
Revenue	5,215	5,212	4,560
Orthopaedics, Sports Medicine and ENT and Advanced Wound Management | Established Markets
Disclosure of operating segments [line items]
Revenue	4,268	4,296	3,789
Orthopaedics, Sports Medicine and ENT and Advanced Wound Management | Emerging Markets
Disclosure of operating segments [line items]
Revenue	$ 947	$ 916	$ 771

BUSINESS SEGMENT INFORMATION -

BUSINESS SEGMENT INFORMATION - Trading and operating profit by business segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure of operating segments [line items]
Corporate costs	$ (390)	$ (364)	$ (328)
Group trading profit	901	936	683
Acquisition and disposal related items	4	7	4
Restructuring and rationalisation expenses	167	113	124
Amortisation and impairment of acquisition intangibles	205	172	171
Legal and other	75	51	89
Operating profit	450	593	295
Legal expenses		17
Increase in legal provision relating to metal-on-metal hip claims	19
Credit for insurance recoveries	7	35
Reportable segments
Disclosure of operating segments [line items]
Operating profit	1,291	1,300	1,011
Orthopaedics
Disclosure of operating segments [line items]
Operating profit	383	367	389
Sports Medicine & ENT
Disclosure of operating segments [line items]
Operating profit	472	459	306
Advanced Wound Management
Disclosure of operating segments [line items]
Operating profit	$ 436	$ 474	$ 316

BUSINESS SEGMENT INFORMATION _2

BUSINESS SEGMENT INFORMATION - Assets and liabilities by business segment and geography (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure of operating segments [line items]
Non-current assets	$ 5,792	$ 6,113	$ 6,013
United Kingdom
Disclosure of operating segments [line items]
Non-current assets	487	541	403
United States of America
Disclosure of operating segments [line items]
Non-current assets	3,918	4,125	4,093
Other Location
Disclosure of operating segments [line items]
Non-current assets	$ 1,387	$ 1,447	$ 1,517

OPERATING PROFIT (Details)

OPERATING PROFIT (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
GROUP INCOME STATEMENT
Revenue	$ 5,215	$ 5,212	$ 4,560
Cost of goods sold	(1,540)	(1,543)	(1,396)
Gross profit	3,675	3,669	3,164
Research and development expenses	(345)	(356)	(307)
Marketing, selling and distribution expenses	(2,066)	(2,013)	(1,773)
Administrative expenses	(814)	(707)	(789)
Selling, general and administrative expenses	(2,880)	(2,720)	(2,562)
Operating profit	450	593	295
Restructuring and rationalisation expenses included in cost of goods sold	20	29	15
Charge relating to legal and other items	4	7	6
Change for the year - amortisation	56	65	63
Restructuring and rationalisation expenses included in administrative expenses	142	84	109
Amortisation and Impairment of Acquisition Intangibles	205	172	171
Legal and other charges	35	39	28
Legal and other items	36	5	55
Expense of restructuring activities included in Research and Development	5
Acquisition and disposal related costs included in research and development expenses	5	7
Acquisition-related costs included in administrative expenses	6		4
Other operating income	(7)	(35)
Amortisation of intangibles	229	237	234
Impairment of intangible assets	39	2	12
Impairment of property, plant and equipment	30	1	5
Fair value remeasurement of trade investments		1
Depreciation of property, plant and equipment	319	326	311
Loss on disposal of property, plant and equipment and intangible assets	11	14	34
Advertising costs	92	81	66
Other operating income	7	35
Insurance Recoveries Received	7	35
Depreciation of right-of-use assets	$ 56	$ 56	$ 51

OPERATING PROFIT - Information

OPERATING PROFIT - Information about the nature and cost of services (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) employee	Dec. 31, 2021 USD ($) employee	Dec. 31, 2020 USD ($) employee
Disclosure of operating profit [line items]
Wages and salaries	$ 1,565	$ 1,562	$ 1,392
Social security costs	215	223	190
Pension costs (including retirement healthcare	88	93	78
Share-based payments	40	41	26
Staff costs	$ 1,908	$ 1,919	$ 1,686
Average number of employees | employee	19,094	18,976	18,581
Audit services:
Group accounts	$ 7.2	$ 5.5	$ 5
Local statutory audit pursuant to legislation	2.2	2	2
Audit related services	0.4	0.1	0.4
Total auditor's remuneration	9.8	7.6	7.4
Expense of restructuring activities	168	113	124
United Kingdom
Audit services:
Total auditor's remuneration	5.3	3.5	3.6
Outside the UK
Audit services:
Total auditor's remuneration	$ 4.5	$ 4.1	$ 3.8

INTEREST AND OTHER FINANCE CO_3

INTEREST AND OTHER FINANCE COSTS - Interest Income/(expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
INTEREST AND OTHER FINANCE COSTS
Interest income	$ 14	$ 6	$ 6
Interest expense:
Bank borrowings	(3)	(3)	(4)
Private placement notes	(39)	(46)	(42)
Lease liabilities	(6)	(7)	(6)
Corporate bond	(27)	(21)	(5)
Other	(5)	(3)	(5)
Total interest expense	(80)	(80)	(62)
Net interest expense	$ (66)	$ (74)	$ (56)

INTEREST AND OTHER FINANCE CO_4

INTEREST AND OTHER FINANCE COSTS - Other Finance Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
INTEREST AND OTHER FINANCE COSTS
Retirement benefit net interest expense	$ (2)	$ (3)	$ (2)
Unwinding of discount	(9)	(10)	(11)
Other	3	(4)	6
Other finance costs	$ (8)	$ (17)	$ (7)

TAXATION - Taxation attributabl

TAXATION - Taxation attributable to the Group (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current taxation:
UK corporation tax	$ 17	$ 14	$ 16
Overseas tax	104	126	40
Current income tax charge	121	140	56
Adjustments in respect of prior periods	(10)	(33)	(191)
Total current taxation	111	107	(135)
Deferred taxation:
Origination and reversal of temporary differences	(77)	(35)	(49)
Changes in tax rates	(5)	(14)	(12)
Adjustments to estimated amounts arising in prior periods	(17)	4	(6)
Total deferred taxation	(99)	(45)	(67)
Total taxation charge/(credit) as per the income statement	12	62	(202)
Taxation in other comprehensive income	5	27
Taxation in equity	3	1	4
Taxation attributable to the Group	20	90	(198)
Net prior period adjustment benefit	27	29	197
Taxation on excluded items, including US tax reform	$ (127)	(85)	(274)
UK
Deferred taxation:
Net prior period adjustment benefit		29	197
Current tax credit due to successful tax litigation			$ 100
Other tax refund		$ 142

TAXATION - Factors affecting fu

TAXATION - Factors affecting future tax charges (Details) - USD ($) $ in Millions		12 Months Ended
	Apr. 01, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of expected tax charge
Current tax payable, uncertain tax positions		$ 150	$ 152
Other interest on provision for uncertain tax positions		10	14
Tax receivables relating to payments		37	106
Deferred tax assets		$ 177	$ 201
UK corporation tax rate (as a percent)	25%	19%	19%	19%
Profit before taxation		$ 235	$ 586	$ 246
Expected taxation at UK statutory rate		45	111	47
Differences in overseas taxation rates		(19)	(17)	(37)
R&D credits		(10)	(12)	(9)
Tax losses and other deferred tax assets not recognised			7	15
Impact of US tax reform				(142)
Expenses not deductible for tax purposes		31	22	29
Change in tax rates		5	14	12
Withholding tax on unremitted earnings		1	(4)	7
Adjustments in respect of prior years		(27)	(29)	(197)
Total taxation charge/(credit) as per the income statement		12	62	(202)
Non taxable accounting gains on UK owned investments		7	17
Net impact to deferred tax assets and liabilities			6
Unused tax losses
Reconciliation of expected tax charge
Deferred tax assets		0
Recognition of previously unrecognised tax losses		$ (4)	(2)	(45)
UK
Reconciliation of expected tax charge
Adjustments in respect of prior years			$ (29)	$ (197)

TAXATION - Deferred taxation (D

TAXATION - Deferred taxation (Details) - USD ($) $ in Millions		12 Months Ended
	Apr. 01, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Movements in the main components of deferred tax assets and liabilities
Balance at the beginning of the period		$ 57	$ 61
Exchange adjustment		(7)	(8)
Movement in income statement - current year		77	35
Movement in income statement - prior years		17	(4)
Movement in other comprehensive income		(5)	(20)
Movement in equity		(3)	(1)
Changes in tax rate		5	6
Acquisitions			(12)
Balance at the end of the period		141	57	$ 61
Represented by:
Deferred tax assets		177	201
Deferred tax liabilities		(36)	(144)
Net asset position		141	57
Deferred tax assets, inventory		117	116
Deferred tax Assets, bad debt provisions		8	8
Deferred tax assets, provisions and other short-term temporary differences		153	65
Unused gross trading tax losses		839	841
Gross unused research and development tax credits		24	21
Gross unused capital losses		97	108
Deferred tax assets, research and development tax credit		$ 12	$ 21
UK corporation tax rate (as a percent)	25%	19%	19%	19%
Accelerated tax depreciation
Movements in the main components of deferred tax assets and liabilities
Balance at the beginning of the period		$ (45)	$ (61)
Movement in income statement - current year		(28)	16
Movement in income statement - prior years			(2)
Changes in tax rate		(2)
Acquisitions			2
Balance at the end of the period		(75)	(45)	$ (61)
Intangibles
Movements in the main components of deferred tax assets and liabilities
Balance at the beginning of the period		(199)	(209)
Exchange adjustment		1
Movement in income statement - current year		15	24
Movement in income statement - prior years		4	10
Changes in tax rate		(2)	(2)
Acquisitions			(22)
Balance at the end of the period		(181)	(199)	(209)
Retirement benefit obligation
Movements in the main components of deferred tax assets and liabilities
Balance at the beginning of the period		(18)	5
Exchange adjustment		2	(1)
Movement in income statement - current year		1	1
Movement in income statement - prior years		1
Movement in other comprehensive income		(7)	(15)
Changes in tax rate			(8)
Balance at the end of the period		(21)	(18)	5
Macrotexture
Movements in the main components of deferred tax assets and liabilities
Balance at the beginning of the period		130	123
Movement in income statement - current year		1	4
Movement in income statement - prior years		9	(10)
Changes in tax rate			10
Acquisitions			3
Balance at the end of the period		140	130	123
Inventory, provisions and other differences
Movements in the main components of deferred tax assets and liabilities
Balance at the beginning of the period		189	203
Exchange adjustment		(10)	(7)
Movement in income statement - current year		88	(10)
Movement in income statement - prior years		3	(2)
Movement in other comprehensive income		2	(5)
Movement in equity		(3)	(1)
Changes in tax rate		9	6
Acquisitions			5
Balance at the end of the period		278	189	$ 203
Represented by:
Deferred tax assets		278	189
Trading tax losses
Represented by:
Deferred tax assets		140	130
Non-trading tax losses
Represented by:
Trading and non-trading tax losses resulting in deferred tax assets		541	$ 508
Unused tax losses
Represented by:
Deferred tax assets		$ 0
Minimum
Represented by:
Recovery period for deferred tax assets		5 years

EARNINGS PER ORDINARY SHARE - C

EARNINGS PER ORDINARY SHARE - Calculation of basic, diluted and adjusted earnings per share (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings
Attributable profit for the year	$ 223	$ 524	$ 448
Adjusted attributable profit (see below)	713	710	564
Attributable profit is reconciled to adjusted attributable profit as follows:
Attributable profit for the year	223	524	448
Acquisition-related costs	162	(73)	4
Restructuring and rationalisation expenses	168	113	124
Amortisation and impairment of acquisition intangibles	205	172	171
Legal and other	82	59	91
Impact of US tax reform			(142)
Taxation on excluded items	(127)	(85)	(132)
Adjusted attributable profit (see below)	713	710	564
Acquisition and disposal related items charged within operating profit	4	(7)	4
Acquisition and disposal related items charged within share of result of associates	158	5
Gain on disposal of interest in associate		75	0
Amortisation and impairment of acquisition intangibles cost charged within operating profit	205	172	171
Unwinding of discount	9	10	11
Legal and other charges	75	51	89
Restructuring and rationalisation costs charged within operating profit	167	113	124
Restructuring and rationalisation costs charged within share of result of associates	1	0	0
Bioventus LLC
Earnings
Attributable profit for the year	(129)	22
Attributable profit is reconciled to adjusted attributable profit as follows:
Attributable profit for the year	(129)	22
Gain on disposal of interest in associate		75
Metal-on-metal
Attributable profit is reconciled to adjusted attributable profit as follows:
Unwinding of discount	7	$ 8	$ 8
UK
Attributable profit is reconciled to adjusted attributable profit as follows:
Interest on income taxes paid (refund)	$ 6

EARNINGS PER ORDINARY SHARE - E

EARNINGS PER ORDINARY SHARE - Earnings per ordinary share (Details) - $ / shares shares in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings per share [abstract]
Basic weighted number of shares	872	877	875
Dilutive impact of share options outstanding	1	1	2
Diluted weighted average number of shares	873	878	877
Earnings per ordinary share
Basic	$ 0.255	$ 0.598	$ 0.513
Diluted	0.255	0.597	0.512
Adjusted, Basic	0.818	0.809	0.646
Adjusted, Diluted	$ 0.816	$ 0.808	$ 0.644

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	$ 1,513
Charges	319	$ 326	$ 311
Impairment	(30)	(1)	(5)
Property, plant and equipment at end of period	1,455	1,513
Reconciliation of changes in property, plant and equipment
Software transferred from assets in course of construction		3
Capital expenditures relating to property, plant and equipment contracted but not yet provided	20	52
Disclosure of quantitative information about leases for lessee [abstract]
Depreciation charge in the year	$ 56	56	51
Minimum
Reconciliation of changes in property, plant and equipment
Useful Life	3 years
Maximum
Reconciliation of changes in property, plant and equipment
Useful Life	20 years
Cost
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	$ 3,967
Exchange adjustment	(129)	(79)
Acquisitions - Property, plant and equipment	2	22
Additions	340	405
Disposals	(153)	(124)
Impairment	(3)	(6)
Transfers		(3)
Property, plant and equipment at end of period	4,024	3,967
Cost | Previously Reported
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period		3,752
Property, plant and equipment at end of period			3,752
Amortisation and impairment
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	(2,454)	(2,303)
Exchange adjustment	89	60
Charges	319	326
Disposals	142	110
Impairment	27	(5)
Property, plant and equipment at end of period	(2,569)	(2,454)	(2,303)
Land and buildings
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	23
Property, plant and equipment at end of period	22	23
Right-of-use assets	160
Disclosure of quantitative information about leases for lessee [abstract]
Additions	49
Depreciation charge in the year	44
Right of use assets	160
Land and buildings | Freehold
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	439
Property, plant and equipment at end of period	442	439
Land and buildings | Freehold | Cost
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	688
Exchange adjustment	(18)	(9)
Acquisitions - Property, plant and equipment		9
Additions	51	53
Disposals	(45)	(10)
Transfers	50	29
Property, plant and equipment at end of period	726	688
Land and buildings | Freehold | Cost | Previously Reported
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period		616
Property, plant and equipment at end of period			616
Land and buildings | Freehold | Amortisation and impairment
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	(249)	(199)
Exchange adjustment	8	4
Charges	62	62
Disposals	37	10
Impairment	18
Transfers		2
Property, plant and equipment at end of period	$ (284)	(249)	(199)
Buildings | Minimum
Reconciliation of changes in property, plant and equipment
Useful Life	20 years
Buildings | Maximum
Reconciliation of changes in property, plant and equipment
Useful Life	50 years
Instruments
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	$ 402
Property, plant and equipment at end of period	344	402
Instruments | Cost
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	1,694
Exchange adjustment	(66)	(53)
Acquisitions - Property, plant and equipment	2	9
Additions	129	151
Disposals	(58)	(88)
Transfers	9	(1)
Property, plant and equipment at end of period	1,710	1,694
Instruments | Cost | Previously Reported
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period		1,676
Property, plant and equipment at end of period			1,676
Instruments | Amortisation and impairment
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	(1,292)	(1,233)
Exchange adjustment	52	43
Charges	172	178
Disposals	58	75
Impairment	8
Transfers	4	(1)
Property, plant and equipment at end of period	(1,366)	(1,292)	(1,233)
Other
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	369
Property, plant and equipment at end of period	413	369
Right-of-use assets	27
Disclosure of quantitative information about leases for lessee [abstract]
Additions	10
Depreciation charge in the year	12
Right of use assets	27
Other | Cost
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	1,282
Exchange adjustment	(39)	(16)
Acquisitions - Property, plant and equipment		2
Additions	24	40
Disposals	(49)	(28)
Impairment		(6)
Transfers	114	46
Property, plant and equipment at end of period	1,332	1,282
Other | Cost | Previously Reported
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period		1,244
Property, plant and equipment at end of period			1,244
Other | Amortisation and impairment
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	(913)	(871)
Exchange adjustment	29	13
Charges	85	86
Disposals	47	25
Impairment	1	(5)
Transfers	(4)	(1)
Property, plant and equipment at end of period	(919)	(913)	(871)
Assets in course of construction
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	303
Property, plant and equipment at end of period	256	303
Assets in course of construction | Cost
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	303
Exchange adjustment	(6)	(1)
Acquisitions - Property, plant and equipment		2
Additions	136	161
Disposals	(1)	2
Impairment	(3)
Transfers	(173)	(77)
Property, plant and equipment at end of period	$ 256	303
Assets in course of construction | Cost | Previously Reported
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period		$ 216
Property, plant and equipment at end of period			$ 216

GOODWILL (Details)

GOODWILL (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($)
Disclosure of reconciliation of changes in goodwill [line items]
Goodwill, beginning balance	$ 2,989	$ 2,928
Exchange adjustment	42	35
Acquisitions	84	96
Goodwill, ending balance	$ 3,031	2,989
Number of Cash Generating Units | item	4
Orthopaedics
Disclosure of reconciliation of changes in goodwill [line items]
Goodwill, beginning balance	$ 897
Goodwill, ending balance	$ 953	$ 897
Pre-tax discount rate	10.10%	9.50%
Required decrease in trading margin	330%
Headroom	$ 600	$ 1,100
Orthopaedics | Weighted average
Disclosure of reconciliation of changes in goodwill [line items]
Revenue growth rates	2%	2%
Sports Medicine & ENT
Disclosure of reconciliation of changes in goodwill [line items]
Goodwill, beginning balance	$ 1,457
Goodwill, ending balance	$ 1,455	$ 1,457
Pre-tax discount rate	10.10%	9.50%
Sports Medicine & ENT | Weighted average
Disclosure of reconciliation of changes in goodwill [line items]
Revenue growth rates	2%	2%
Advanced Wound Management
Disclosure of reconciliation of changes in goodwill [line items]
Goodwill, beginning balance	$ 635
Goodwill, ending balance	$ 623	$ 635
Pre-tax discount rate	10.10%	9.50%
Advanced Wound Management | Weighted average
Disclosure of reconciliation of changes in goodwill [line items]
Revenue growth rates	2%	2%
Cost
Disclosure of reconciliation of changes in goodwill [line items]
Goodwill, beginning balance	$ 2,989	$ 2,928
Exchange adjustment	(42)	(35)
Acquisitions	84	96
Goodwill, ending balance	$ 3,031	$ 2,989

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	$ 1,398
Change for the year - amortisation	56	$ 65	$ 63
Carrying value, ending balance	1,236	1,398
Amortisation and impairment of acquired intangibles	205	172
ArthroCare
Disclosure of detailed information about intangible assets [line items]
Acquisitions	306
Osiris Therapeutics
Disclosure of detailed information about intangible assets [line items]
Acquisitions	204
Healthpoint
Disclosure of detailed information about intangible assets [line items]
Acquisitions	$ 179
Remaining amortisation period	5 years
Cost
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	$ 3,584	3,488
Exchange adjustment	(45)	(49)
Acquisitions	44	112
Additions	77	56
Charge for the year - impairment	(1)	(4)
Disposals	(6)	(22)
Transfers		3
Carrying value, ending balance	3,653	3,584	3,488
Amortisation and impairment
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	(2,186)	(2,002)
Exchange adjustment	31	34
Change for the year - amortisation	(229)	(237)
Charge for the year - impairment	(38)	2
Disposals	5	17
Carrying value, ending balance	(2,417)	(2,186)	(2,002)
Technology
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	408
Carrying value, ending balance	354	408
Amortisation and impairment of acquired intangibles	51	41
Technology | Cost
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	588	495
Exchange adjustment	(6)	(8)
Acquisitions		101
Carrying value, ending balance	582	588	495
Technology | Amortisation and impairment
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	(180)	(142)
Exchange adjustment	2	3
Change for the year - amortisation	(46)	(41)
Charge for the year - impairment	(4)
Carrying value, ending balance	(228)	(180)	(142)
Product- related
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	724
Carrying value, ending balance	618	724
Amortisation and impairment of acquired intangibles	142	118
Impairment charges	32	0
Product- related | Cost
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	2,206	2,236
Exchange adjustment	(21)	(26)
Acquisitions	44
Additions	3	1
Charge for the year - impairment		(4)
Disposals		(1)
Carrying value, ending balance	2,232	2,206	2,236
Product- related | Amortisation and impairment
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	(1,482)	(1,373)
Exchange adjustment	19	20
Change for the year - amortisation	(123)	(131)
Charge for the year - impairment	(28)	2
Carrying value, ending balance	(1,614)	(1,482)	(1,373)
Customer and distribution related
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	86
Carrying value, ending balance	75	86
Amortisation and impairment of acquired intangibles	12	13
Customer and distribution related | Cost
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	231	226
Exchange adjustment	(2)	(6)
Acquisitions		11
Additions	7	4
Disposals	(1)	(4)
Carrying value, ending balance	235	231	226
Customer and distribution related | Amortisation and impairment
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	(145)	(126)
Exchange adjustment	2	4
Change for the year - amortisation	(17)	(23)
Carrying value, ending balance	(160)	(145)	(126)
Software
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	112
Carrying value, ending balance	93	112
Capital expenditure relating to software contracted but not provided	7	10
Software | Cost
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	491	477
Exchange adjustment	(14)	(7)
Additions	32	27
Disposals	(5)	(17)
Transfers	4	11
Carrying value, ending balance	508	491	477
Software | Amortisation and impairment
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	(379)	(361)
Exchange adjustment	8	7
Change for the year - amortisation	(43)	(42)
Charge for the year - impairment	(6)
Disposals	5	17
Carrying value, ending balance	(415)	(379)	(361)
Assets in course of construction.
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	68
Carrying value, ending balance	96	68
Assets in course of construction. | Cost
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	68	54
Exchange adjustment	(2)	(2)
Additions	35	24
Charge for the year - impairment	(1)
Transfers	(4)	(8)
Carrying value, ending balance	$ 96	68	$ 54
Software and Assets in course of construction
Disclosure of detailed information about intangible assets [line items]
Value of software transferred		$ 3
Minimum | ArthroCare
Disclosure of detailed information about intangible assets [line items]
Remaining amortisation period	1 year
Minimum | Osiris Therapeutics
Disclosure of detailed information about intangible assets [line items]
Remaining amortisation period	2 years
Minimum | Technology
Disclosure of detailed information about intangible assets [line items]
Useful Life	6 years
Minimum | Product- related
Disclosure of detailed information about intangible assets [line items]
Useful Life	2 years
Minimum | Customer and distribution related
Disclosure of detailed information about intangible assets [line items]
Useful Life	2 years
Minimum | Software
Disclosure of detailed information about intangible assets [line items]
Useful Life	3 years
Maximum | ArthroCare
Disclosure of detailed information about intangible assets [line items]
Remaining amortisation period	11 years
Maximum | Osiris Therapeutics
Disclosure of detailed information about intangible assets [line items]
Remaining amortisation period	6 years
Maximum | Technology
Disclosure of detailed information about intangible assets [line items]
Useful Life	20 years
Maximum | Product- related
Disclosure of detailed information about intangible assets [line items]
Useful Life	20 years
Maximum | Customer and distribution related
Disclosure of detailed information about intangible assets [line items]
Useful Life	14 years
Maximum | Software
Disclosure of detailed information about intangible assets [line items]
Useful Life	7 years

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disclosure of detailed information about financial instruments [line items]
Investments at 1 January	$ 10
Impairment	(109)
Investments at 31 December	12	$ 10
Fair value through OCI
Disclosure of detailed information about financial instruments [line items]
Investments at 1 January	10	9
Additions	2	2
Fair value remeasurement		(1)
Investments at 31 December	$ 12	$ 10

INVESTMENTS IN ASSOCIATES - Amo

INVESTMENTS IN ASSOCIATES - Amounts recognised in the balance sheet and income statement (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 30, 2022
Disclosure of associates [line items]
Percentage of associate held	28.30%	29.20%
Balance sheet	$ 46	$ 188
Share of results of associates	(32)	9
Impairment loss	109
Impairment of interest in associate	(109)
Gain on disposal of interest in associate		75	$ 0
Issue of equity	$ 1	$ 2	$ 2
Bioventus LLC
Disclosure of associates [line items]
Percentage of associate held	28.30%	29.20%
Balance sheet	$ 46	$ 186
Profit after taxation	141	84
Share of results of associates	(32)	9
Impairment loss	109
Market share price				$ 2.61
Fair value less cost of disposal	46
Impairment of interest in associate	$ (109)
Gain on disposal of interest in associate		$ 75

INVESTMENTS IN ASSOCIATES - Sum

INVESTMENTS IN ASSOCIATES - Summarised statement of comprehensive income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summarised statement of comprehensive income
Revenue	$ 5,215	$ 5,212	$ 4,560
Attributable profit for the year	223	524	448
Total comprehensive income for the year	133	564	$ 449
Income statement profit	$ (32)	$ 9
Percentage of associate held	28.30%	29.20%
Bioventus LLC
Summarised statement of comprehensive income
Revenue	$ 386	$ 300
Attributable profit for the year	(129)	22
Group adjustments	17	10
Total comprehensive income for the year	(112)	32
Income statement profit	$ (32)	$ 9
Percentage of associate held	28.30%	29.20%

INVESTMENTS IN ASSOCIATES - S_2

INVESTMENTS IN ASSOCIATES - Summarised balance sheet (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($) item	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Summarised balance sheet
Non-current assets	$ 6,110	$ 6,496
Current assets	3,856	4,424
Non-current liabilities	(2,992)	(3,221)
Current liabilities	(1,715)	(2,131)
Net equity attributable to owners	5,259	5,568	$ 5,279	$ 5,141
Impairment	(109)
Group's carrying amount of investment	$ 46	$ 188
Percentage of associate held	28.30%	29.20%
Number of associates | item	2	2
Bioventus LLC
Summarised balance sheet
Non-current assets	$ 1,128	$ 1,021
Current assets	271	229
Non-current liabilities	(730)	(542)
Current liabilities	(288)	(191)
Net assets	381	517
Net equity attributable to owners	381	517
Group's share of net assets	108	151
Group adjustments	47	35
Impairment	(109)
Group's carrying amount of investment	$ 46	$ 186
Percentage of associate held	28.30%	29.20%
Cash distribution received	$ 1	$ 4
Other associates
Summarised balance sheet
Group's carrying amount of investment		$ 2

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Schedule Of Inventory Disclosure [Line Items]
Period of time on the market when inventory adjustment formula is first applied	2 years
Raw materials and consumables	$ 474	$ 424
Work-in-progress	78	79
Finished goods and goods for resale	1,653	1,341
Total inventories	2,205	1,844
Foreign exchange movements	1	1
Cost of inventories recognised as an expense and included in cost of goods sold	1,302	1,407	$ 1,129
Loss on factory shutdown costs or reduction in production	0		85
Inventories recognised as an expense within cost of goods sold resulting from inventory write-offs	117	105	$ 144
Reserves for excess and obsolete inventories
Schedule Of Inventory Disclosure [Line Items]
Provision	504
Foreign exchange movements	15
Excess and obsolete inventory
Schedule Of Inventory Disclosure [Line Items]
Provision	$ 504	$ 430
Orthopaedic instruments | Minimum
Schedule Of Inventory Disclosure [Line Items]
Useful economic life	3 years
Orthopaedic instruments | Maximum
Schedule Of Inventory Disclosure [Line Items]
Useful economic life	7 years

TRADE AND OTHER RECEIVABLES (De

TRADE AND OTHER RECEIVABLES (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
TRADE AND OTHER RECEIVABLES.
Trade receivables	$ 1,076	$ 1,028
Less: Loss Allowance	(49)	(57)	$ (71)
Trade receivables - net	1,027	971
Derivatives - forward foreign exchange, currency swaps and interest rate contracts	47	39
Other receivables	114	95
Prepayments	76	79
Total trade and other receivables, current	1,264	1,184
Other non-current assets	12	15
Total trade and other receivables	$ 1,276	$ 1,199

TRADE AND OTHER RECEIVABLES - T

TRADE AND OTHER RECEIVABLES - Trade receivables past due (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure Of Trade And Other Receivables [Line Items]
Credit loss allowance	$ 49	$ 57	$ 71
Bad debt expense	4	3	25
Trade receivables	1,076	1,028
Less: Loss Allowance	(49)	(57)	$ (71)
Trade receivables - net	1,027	971
Total past due
Disclosure Of Trade And Other Receivables [Line Items]
Credit loss allowance	49
Trade receivables	1,076	1,028
Less: Loss Allowance	(49)
Past due not more than three months
Disclosure Of Trade And Other Receivables [Line Items]
Credit loss allowance	1
Trade receivables	228	217
Less: Loss Allowance	$ (1)
Weighted average loss rate	(0.40%)
Past due more than three months and not more than six months
Disclosure Of Trade And Other Receivables [Line Items]
Credit loss allowance	$ 1
Trade receivables	97	88
Less: Loss Allowance	$ (1)
Weighted average loss rate	(1.00%)
Past due more than six months and not more than one year
Disclosure Of Trade And Other Receivables [Line Items]
Credit loss allowance	$ 45
Trade receivables	141	128
Less: Loss Allowance	$ (45)
Weighted average loss rate	(31.90%)
Neither past due nor impaired
Disclosure Of Trade And Other Receivables [Line Items]
Credit loss allowance	$ 2
Trade receivables	610	$ 595
Less: Loss Allowance	$ (2)
Weighted average loss rate	(0.30%)

TRADE AND OTHER RECEIVABLES - M

TRADE AND OTHER RECEIVABLES - Movements in the provision for bad and doubtful debts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
TRADE AND OTHER RECEIVABLES.
At 1 January	$ 57	$ 71
Exchange adjustment	(3)	(3)
Net receivables provided during the year	4	3	$ 25
Utilisation of provision	(9)	(14)
At 31 December	$ 49	$ 57	$ 71

TRADE AND OTHER RECEIVABLES -_2

TRADE AND OTHER RECEIVABLES - Trade receivables denominated in major currencies (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables - net	$ 1,027	$ 971
US Dollar
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables - net	465	429
Sterling
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables - net	37	34
Euro
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables - net	215	201
Other Currencies
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables - net	$ 310	$ 307

TRADE AND OTHER PAYABLES (Detai

TRADE AND OTHER PAYABLES (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Trade and other payables due within one year
Trade and other payables	$ 1,029	$ 1,043
Derivatives - forward foreign exchange, currency swaps and interest rate contracts	43	19
Acquisition consideration	26	34
Total trade and other current payables	1,098	1,096
Other payables due after one year
Acquisition consideration	66	57
Derivatives - forward foreign exchange, currency swaps and interest rate contracts	13
Other payables	11	10
Total other payables due after one year	90	67
Contingent consideration	78	84
In one year
Other payables due after one year
Acquisition consideration		18
In two years
Other payables due after one year
Acquisition consideration	29	15
In three years
Other payables due after one year
Acquisition consideration	35	21
In four years
Other payables due after one year
Acquisition consideration	$ 2	$ 3

CASH AND BORROWINGS - Net debt

CASH AND BORROWINGS - Net debt (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about borrowings [line items]
Bank overdrafts and loans due within one year	$ 111	$ 435
Long-term bank borrowings		554
Corporate bond	1,510	993
Private placement notes	1,055	1,160
Borrowings	2,676	3,142
Cash at bank	(350)	(1,290)	$ (1,762)
Net debt	2,339	1,852		$ 1,600
Non-current lease liabilities	147	141
Current lease liabilities	49	56
Net debt including lease liabilities	2,535	$ 2,049	1,926	$ 1,770
Interest swaps
Disclosure of detailed information about borrowings [line items]
Credit balance on derivatives	(13)
Net debt including lease liabilities	$ 13		$ (2)

CASH AND BORROWINGS - Borrowing

CASH AND BORROWINGS - Borrowings are repayable (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure of detailed information about borrowings [line items]
Bank loans		$ 859
Bank overdrafts	$ 6	5	$ 11
Corporate bond	1,510	993
Private Placement Notes	1,160	1,285
Lease liabilities	210	210
Total borrowings	2,886	3,352
Discounted amount	196	197
In one year
Disclosure of detailed information about borrowings [line items]
Bank loans		305
Bank overdrafts	6	5
Private Placement Notes	105	125
Lease liabilities	49	56
Total borrowings	160	491
Between one and two years
Disclosure of detailed information about borrowings [line items]
Bank loans		554
Private Placement Notes	430	105
Lease liabilities	42	33
Total borrowings	472	692
Between two and three years
Disclosure of detailed information about borrowings [line items]
Private Placement Notes		430
Lease liabilities	32	33
Total borrowings	32	463
Between three and four years
Disclosure of detailed information about borrowings [line items]
Private Placement Notes	75
Lease liabilities	24	23
Total borrowings	99	23
Between four and five years
Disclosure of detailed information about borrowings [line items]
Private Placement Notes	140	75
Lease liabilities	18	18
Total borrowings	158	93
After five years
Disclosure of detailed information about borrowings [line items]
Corporate bond	1,510	993
Private Placement Notes	410	550
Lease liabilities	45	47
Total borrowings	$ 1,965	$ 1,590

CASH AND BORROWINGS - Liquidity

CASH AND BORROWINGS - Liquidity risk exposures (Details) € in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 USD ($)
Disclosure of detailed information about borrowings [line items]
Outstanding amount	$ 2,676			$ 3,142
Committed facilities
Disclosure of detailed information about borrowings [line items]
Committed facilities	3,700			$ 4,100
3.26% Senior Notes
Disclosure of detailed information about borrowings [line items]
Amount contracted	$ 105
Interest rate	3.26%		3.26%
3.89% Senior Notes Maturing January 2024
Disclosure of detailed information about borrowings [line items]
Amount contracted	$ 100
Interest rate	3.89%		3.89%
3.36% Senior Notes
Disclosure of detailed information about borrowings [line items]
Amount contracted	$ 305
Interest rate	3.36%		3.36%
Floating Rate Senior Notes Maturing November 2024
Disclosure of detailed information about borrowings [line items]
Amount contracted	$ 25
Syndicated Revolving Credit Facility Maturing June 2025
Disclosure of detailed information about borrowings [line items]
Amount contracted	1,000
3.99% Senior Notes Maturing January 2026
Disclosure of detailed information about borrowings [line items]
Amount contracted	$ 75
Interest rate	3.99%		3.99%
2.83% Senior Notes Maturing June 2027
Disclosure of detailed information about borrowings [line items]
Amount contracted	$ 140
Interest rate	2.83%		2.83%
2.90% Senior Notes Maturing June 2028
Disclosure of detailed information about borrowings [line items]
Amount contracted	$ 60
Interest rate	2.90%		2.90%
2.97% Senior Notes Maturing June 2029
Disclosure of detailed information about borrowings [line items]
Amount contracted	$ 100
Interest rate	2.97%		2.97%
4.565% Corporate Bond Maturing October 2029
Disclosure of detailed information about borrowings [line items]
Amount contracted | €			€ 500
Interest rate	4.565%		4.565%
2.99% Senior Notes
Disclosure of detailed information about borrowings [line items]
Amount contracted	$ 95
Interest rate	2.99%		2.99%
2.032% Corporate Bond Maturing October 2030
Disclosure of detailed information about borrowings [line items]
Amount contracted	$ 1,000		€ 500
Interest rate	2.032%		2.032%
3.09% Senior Notes
Disclosure of detailed information about borrowings [line items]
Amount contracted	$ 155
Interest rate	3.09%		3.09%
Euro term loans
Disclosure of detailed information about borrowings [line items]
Outstanding amount | €			€ 223
Repayment of debt | €		€ 269
Private placement debt
Disclosure of detailed information about borrowings [line items]
Outstanding amount	$ 105
Repayment of debt	$ 125	€ 265

CASH AND BORROWINGS - Year end

CASH AND BORROWINGS - Year end financial liabilities by contractual maturity (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Disclosure of detailed information about borrowings [line items]
Bank overdrafts and loans	$ 6	$ 864
Corporate bond	1,805	1,178
Trade and other payables	1,029	1,043
Private placement notes	1,313	1,480
Acquisition consideration	96	96
Current swaps/forward foreign exchange contracts - outflow	2,598	2,322
Current swaps/forward foreign exchange contracts - inflow	(2,601)	(2,342)
Total	4,246	4,641
In one year
Disclosure of detailed information about borrowings [line items]
Bank overdrafts and loans	6	310
Corporate bond	37	20
Trade and other payables	1,029	1,043
Private placement notes	143	165
Acquisition consideration	26	35
Current swaps/forward foreign exchange contracts - outflow	2,598	2,322
Current swaps/forward foreign exchange contracts - inflow	(2,601)	(2,342)
Total	1,238	1,553
Between one and two years
Disclosure of detailed information about borrowings [line items]
Bank overdrafts and loans		554
Corporate bond	37	20
Private placement notes	461	142
Acquisition consideration	31	19
Total	529	735
Between two and five years
Disclosure of detailed information about borrowings [line items]
Corporate bond	111	61
Private placement notes	265	574
Acquisition consideration	39	42
Total	415	677
After five years
Disclosure of detailed information about borrowings [line items]
Corporate bond	1,620	1,077
Private placement notes	444	599
Total	$ 2,064	$ 1,676

CASH AND BORROWINGS - Liquidi_2

CASH AND BORROWINGS - Liquidity and capital resources (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about borrowings [line items]
Cash net of bank overdrafts	$ 344	$ 1,285	$ 1,751	$ 257
Net debt including lease liabilities	2,535	2,049	1,926	$ 1,770
Increase (decrease) in net debt	486	123	$ 156
Committed facilities
Disclosure of detailed information about borrowings [line items]
Committed facilities	3,700	$ 4,100
Amount drawn	$ 2,700

FINANCIAL INSTRUMENTS AND RIS_3

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Foreign Exchange Exposures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Forward foreign exchange contracts
Risk management
Period of time of hedge contracts (in years)	1 year
Percentage of exposure the hedge covers	100%
Cash flow term (in months)	12 months
Profit or loss term (in months)	12 months
Amount contracted	$ 2,200	$ 2,000
Currency risk | US Dollar
Risk management
Percentage of decrease in risk variable used for sensitivity analysis	10%
Increase (decrease) in net borrowings that would result from decreased currency value, per sensitivity analysis	$ 41
Currency risk | US Dollar | Forward foreign exchange contracts
Risk management
Percentage of decrease in risk variable used for sensitivity analysis	10%
Percentage of increase in risk variable used for sensitivity analysis	10%
Increase (decrease) in fair value that would result from decreased currency value, per sensitivity analysis	$ (50)	(44)
Currency risk | Euro
Risk management
Increase (decrease) in net borrowings that would result from decreased currency value, per sensitivity analysis	$ 41	75
Currency risk | Euro | Forward foreign exchange contracts
Risk management
Percentage of decrease in risk variable used for sensitivity analysis	10%
Increase (decrease) in fair value that would result from decreased currency value, per sensitivity analysis	$ 35	$ 26

FINANCIAL INSTRUMENTS AND RIS_4

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Interest Rate Exposures (Details) - Interest rate risk € in Millions, $ in Millions	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 USD ($)
Risk management
Fixed to floating interest rate swap | €		€ 500
Percentage of increase in risk variable used for sensitivity analysis	1%	1%
Percentage of decrease in risk variable used for sensitivity analysis	1%	1%
Increase in annual net interest charge that would result from increased interest rate, per sensitivity analysis | $	$ 4		$ 3

FINANCIAL INSTRUMENTS AND RIS_5

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Credit Risk Exposures (Details) - Credit risk - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Derivatives
Credit risk
Maximum exposure	$ 47	$ 39
Cash at bank
Credit risk
Maximum exposure	$ 350	$ 1,290

FINANCIAL INSTRUMENTS AND RIS_6

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Hedge (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Forward foreign exchange contracts | Currency risk | Cash flow hedges
Items designated as hedging instruments
Nominal amount	2,598	2,322
Carrying Amount Assets	$ 47	$ 39
Carrying Amount Liabilities	(43)	(19)
Change in fair value in OCI	(13)	41
Amounts reclassified from hedging reserve to profit or loss	$ (37)	$ 7
Interest swaps | Interest rate risk | Fair value hedges
Items designated as hedging instruments
Nominal amount	500
Carrying Amount Liabilities	$ (13)

FINANCIAL INSTRUMENTS AND RIS_7

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Net investment hedge (Details) - Dec. 31, 2022 € in Millions, $ in Millions	EUR (€)	USD ($)
Currency risk | Net investment hedge | Term loan
Disclosure of detailed information about hedged items [line items]
Notional amount	€ 500	$ 533

FINANCIAL INSTRUMENTS AND RIS_8

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Interest Bearing Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest bearing liabilities
Deferred acquisition consideration	$ 92	$ 91	$ 165
Interest payable on deferred acquisition consideration	$ 0
US Dollar | Weighted average
Interest bearing liabilities
Interest rate	2.70%	2.70%
Floating rate | Weighted average
Interest bearing liabilities
Interest rate	3%	1%
Fixed rate | US Dollar | Weighted average
Interest bearing liabilities
Time for which rate is fixed	5 years 10 months 24 days	6 years 6 months
Gross borrowings
Interest bearing liabilities
Financial liabilities	$ (2,676)	$ (3,142)
Gross borrowings | US Dollar
Interest bearing liabilities
Financial liabilities	(2,159)	(2,278)
Gross borrowings | Other Currencies
Interest bearing liabilities
Financial liabilities	(517)	(864)
Currency swaps
Interest bearing liabilities
Financial liabilities	(369)	(337)
Currency swaps | US Dollar
Interest bearing liabilities
Financial liabilities	(163)	(201)
Currency swaps | Other Currencies
Interest bearing liabilities
Financial liabilities	(206)	(136)
Interest swaps
Interest bearing liabilities
Financial liabilities	(13)
Interest swaps | Other Currencies
Interest bearing liabilities
Financial liabilities	(13)
Total liabilities
Interest bearing liabilities
Financial liabilities	(3,058)	(3,479)
Total liabilities | US Dollar
Interest bearing liabilities
Financial liabilities	(2,322)	(2,479)
Total liabilities | Other Currencies
Interest bearing liabilities
Financial liabilities	(736)	(1,000)
Total liabilities | Floating rate
Interest bearing liabilities
Financial liabilities	(413)	(1,226)
Total liabilities | Floating rate | US Dollar
Interest bearing liabilities
Financial liabilities	(193)	(226)
Total liabilities | Floating rate | Other Currencies
Interest bearing liabilities
Financial liabilities	(220)	(1,000)
Total liabilities | Fixed rate
Interest bearing liabilities
Financial liabilities	(2,645)	(2,253)
Total liabilities | Fixed rate | US Dollar
Interest bearing liabilities
Financial liabilities	(2,129)	$ (2,253)
Total liabilities | Fixed rate | Other Currencies
Interest bearing liabilities
Financial liabilities	$ (516)

FINANCIAL INSTRUMENTS AND RIS_9

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Interest Bearing Assets (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Cash at bank
Interest bearing assets
Financial assets	$ 350	$ 1,290
Currency swaps
Interest bearing assets
Financial assets	369	337
Total assets
Interest bearing assets
Financial assets	719	1,627
Total assets | Floating rate
Interest bearing assets
Financial assets	719	1,627
US Dollar | Cash at bank
Interest bearing assets
Financial assets	207	1,156
US Dollar | Currency swaps
Interest bearing assets
Financial assets	205	135
US Dollar | Total assets
Interest bearing assets
Financial assets	412	1,291
US Dollar | Total assets | Floating rate
Interest bearing assets
Financial assets	412	1,291
Other Currencies | Cash at bank
Interest bearing assets
Financial assets	143	134
Other Currencies | Currency swaps
Interest bearing assets
Financial assets	164	202
Other Currencies | Total assets
Interest bearing assets
Financial assets	307	336
Other Currencies | Total assets | Floating rate
Interest bearing assets
Financial assets	$ 307	$ 336

FINANCIAL INSTRUMENTS AND RI_10

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Fair Value (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Measurement of fair values
Financial assets	$ 9,966	$ 10,920
Financial liabilities	(4,707)	(5,352)
Transfer from Level 1 to Level 2 assets	0	0
Transfer from Level 2 to Level 1 assets	0	0
Transfer into Level 3 assets	0	0
Transfer out of Level 3 assets		0	$ 0
Transfer from Level 1 to Level 2 liabilities	0	0
Transfer from Level 2 to Level 1 liabilities	0	0
Transfer into Level 3 liabilities	0	0
Transfer out of Level 3 liabilities	0	0
Acquisition consideration
Measurement of fair values
Increase in consideration	1
Consideration paid	42
Cash transferred	24
Remeasurement reduction	17
Corporate bond
Measurement of fair values
Financial liabilities	(994)	(993)
Fair value of liability	783	962
Private placement debt
Measurement of fair values
Financial liabilities	(1,160)	(1,285)
Fair value of liability	987	1,316
EUR corporate bond
Measurement of fair values
Financial liabilities	(516)
Fair value of liability	531
At fair value
Measurement of fair values
Financial assets	77	69
Financial liabilities	(134)	(103)
At fair value | Acquisition consideration
Measurement of fair values
Financial liabilities	(78)	(84)
At fair value | Acquisition consideration | Level 3
Measurement of fair values
Financial liabilities	(78)	(84)
At fair value | Forward foreign exchange contracts
Measurement of fair values
Financial liabilities	(42)	(17)
At fair value | Forward foreign exchange contracts | Level 2
Measurement of fair values
Financial liabilities	(42)	(17)
At fair value | Currency swaps
Measurement of fair values
Financial liabilities	(1)	(2)
At fair value | Currency swaps | Level 2
Measurement of fair values
Financial liabilities	(1)	(2)
At fair value | Interest swaps
Measurement of fair values
Financial liabilities	(13)
At fair value | Interest swaps | Level 2
Measurement of fair values
Financial liabilities	(13)
At fair value | Forward foreign exchange contracts
Measurement of fair values
Financial assets	46	37
At fair value | Forward foreign exchange contracts | Level 2
Measurement of fair values
Financial assets	46	37
At fair value | Investments.
Measurement of fair values
Financial assets	12	10
At fair value | Investments. | Level 3
Measurement of fair values
Financial assets	12	10
At fair value | Contingent consideration receivable
Measurement of fair values
Financial assets	18	20
At fair value | Contingent consideration receivable | Level 3
Measurement of fair values
Financial assets	18	20
At fair value | Currency swaps
Measurement of fair values
Financial assets	1	2
At fair value | Currency swaps | Level 2
Measurement of fair values
Financial assets	1	2
At fair value | Fair value - hedging instruments
Measurement of fair values
Financial assets	46	37
Financial liabilities	(55)	(17)
At fair value | Fair value - hedging instruments | Forward foreign exchange contracts
Measurement of fair values
Financial liabilities	(42)	(17)
At fair value | Fair value - hedging instruments | Interest swaps
Measurement of fair values
Financial liabilities	(13)
At fair value | Fair value - hedging instruments | Forward foreign exchange contracts
Measurement of fair values
Financial assets	46	37
At fair value | Fair value through OCI
Measurement of fair values
Financial assets	1	2
Financial liabilities	(1)	(2)
At fair value | Fair value through OCI | Currency swaps
Measurement of fair values
Financial liabilities	(1)	(2)
At fair value | Fair value through OCI | Currency swaps
Measurement of fair values
Financial assets	1	2
At fair value | Financial assets at fair value through profit or loss
Measurement of fair values
Financial assets	30	30
Financial liabilities	(78)	(84)
At fair value | Financial assets at fair value through profit or loss | Acquisition consideration
Measurement of fair values
Financial liabilities	(78)	(84)
At fair value | Financial assets at fair value through profit or loss | Investments.
Measurement of fair values
Financial assets	12	10
At fair value | Financial assets at fair value through profit or loss | Contingent consideration receivable
Measurement of fair values
Financial assets	18	20
Not measured at fair value
Measurement of fair values
Financial assets	1,473	2,336
Financial liabilities	(3,730)	(4,202)
Not measured at fair value | Acquisition consideration
Measurement of fair values
Financial liabilities	(14)	(7)
Not measured at fair value | Bank overdrafts.
Measurement of fair values
Financial liabilities	(6)	(5)
Not measured at fair value | Bank loans
Measurement of fair values
Financial liabilities		(859)
Not measured at fair value | Corporate bond
Measurement of fair values
Financial liabilities		(993)
Not measured at fair value | Corporate bond not in a hedge relationship
Measurement of fair values
Financial liabilities	(994)
Not measured at fair value | Corporate bond in a hedge relationship
Measurement of fair values
Financial liabilities	(516)
Not measured at fair value | Private placement debt not in a hedge relationship
Measurement of fair values
Financial liabilities	(1,160)	(1,285)
Not measured at fair value | Trade and other payables
Measurement of fair values
Financial liabilities	(1,040)	(1,053)
Not measured at fair value | Trade and other receivables.
Measurement of fair values
Financial assets	1,123	1,046
Not measured at fair value | Cash at bank
Measurement of fair values
Financial assets	350	1,290
Not measured at fair value | Other financial liabilities
Measurement of fair values
Financial liabilities	(3,730)	(4,202)
Not measured at fair value | Other financial liabilities | Acquisition consideration
Measurement of fair values
Financial liabilities	(14)	(7)
Not measured at fair value | Other financial liabilities | Bank overdrafts.
Measurement of fair values
Financial liabilities	(6)	(5)
Not measured at fair value | Other financial liabilities | Bank loans
Measurement of fair values
Financial liabilities		(859)
Not measured at fair value | Other financial liabilities | Corporate bond
Measurement of fair values
Financial liabilities		(993)
Not measured at fair value | Other financial liabilities | Corporate bond not in a hedge relationship
Measurement of fair values
Financial liabilities	(994)
Not measured at fair value | Other financial liabilities | Corporate bond in a hedge relationship
Measurement of fair values
Financial liabilities	(516)
Not measured at fair value | Other financial liabilities | Private placement debt not in a hedge relationship
Measurement of fair values
Financial liabilities	(1,160)	(1,285)
Not measured at fair value | Other financial liabilities | Trade and other payables
Measurement of fair values
Financial liabilities	(1,040)	(1,053)
Not measured at fair value | Fair value - hedging instruments
Measurement of fair values
Financial assets	1,123	1,046
Not measured at fair value | Fair value - hedging instruments | Trade and other receivables.
Measurement of fair values
Financial assets	1,123	1,046
Not measured at fair value | Amortised cost
Measurement of fair values
Financial assets	350	1,290
Not measured at fair value | Amortised cost | Cash at bank
Measurement of fair values
Financial assets	$ 350	$ 1,290

FINANCIAL INSTRUMENTS AND RI_11

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Movement of financial instruments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair value of assets
Assets at beginning of period	$ 10,920
Transfers		$ 0	$ 0
Assets at end of period	9,966	10,920
Fair value of liabilities
Liabilities at beginning of period	(5,352)
Transfers	0	0
Liabilities at end of period	(4,707)	(5,352)
Level 3 | Acquisition consideration liability
Fair value of liabilities
Liabilities at beginning of period	(84)	(128)
Arising on acquisitions	(32)
Payments	20	23
Remeasurement	19	21
Discount unwind	(1)
Liabilities at end of period	(78)	(84)	(128)
Level 3 | Investments
Fair value of assets
Assets at beginning of period	10	9
Additions	2	2
Fair value remeasurement		(1)
Assets at end of period	12	10	9
Level 3 | Contingent consideration receivable
Fair value of assets
Assets at beginning of period	20	37
Fair value remeasurement		1
Receipts	(2)	(18)
Assets at end of period	$ 18	$ 20	$ 37

PROVISIONS AND CONTINGENCIES -

PROVISIONS AND CONTINGENCIES - Changes in provisions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2019
Changes in Provisions
Provisions at beginning of year	$ 357	$ 417
Charge to income statement	207	128
Release to income statement	(7)	(3)
Unwinding of discount	7	8
Utilised	(236)	(192)
Exchange adjustment	(1)	(1)
Provisions at end of year	327	357
Rationalisation provisions
Changes in Provisions
Provisions at beginning of year	18	29
Charge to income statement	169	115
Release to income statement	(2)	(2)
Utilised	(154)	(124)
Exchange adjustment	(1)
Provisions at end of year	30	18
Metal-on-metal
Changes in Provisions
Provisions at beginning of year	289	336
Charge to income statement	19		$ 121
Unwinding of discount	7	8
Utilised	(76)	(55)
Provisions at end of year	239	289
Legal and other provisions
Changes in Provisions
Provisions at beginning of year	50	52
Charge to income statement	19	13
Release to income statement	(5)	(1)
Utilised	(6)	(13)
Exchange adjustment		(1)
Provisions at end of year	$ 58	$ 50

PROVISIONS AND CONTINGENCIES _2

PROVISIONS AND CONTINGENCIES - Current and non-current provisions (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) item	Dec. 31, 2019 item	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Disclosure of other provisions [line items]
Provisions - due within one year	$ 243		$ 322
Provisions - due after one year	84		35
Provisions at end of year	$ 327		357	$ 417
Term of expected provision utilisation	5 years
Minimum range of percentile | item	60
Maximum range of percentile | item	85
Percentage generated by actuarial model | item		95
Rationalisation provisions
Disclosure of other provisions [line items]
Provisions - due within one year	$ 30		18
Provisions at end of year	30		18	29
Metal-on-metal
Disclosure of other provisions [line items]
Provisions - due within one year	165		263
Provisions - due after one year	74		26
Provisions at end of year	239		289	336
Legal and other provisions
Disclosure of other provisions [line items]
Provisions - due within one year	48		41
Provisions - due after one year	10		9
Provisions at end of year	$ 58		$ 50	$ 52

PROVISIONS AND CONTINGENCIES _3

PROVISIONS AND CONTINGENCIES - Legal proceedings (Details) - Metal-on-metal	12 Months Ended
	Dec. 31, 2022 item
Disclosure of other provisions [line items]
Number of claims pending	1,160
Number of modular components	2
Number of cases requested by plaintiffs to be transferred	720

RETIREMENT BENEFIT OBLIGATION_2

RETIREMENT BENEFIT OBLIGATIONS (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) country item	Dec. 31, 2021 USD ($)
Disclosure of defined benefit plans [line items]
Amount recognised on the balance sheet - liability	$ (70)	$ (127)
Amount recognised on the balance sheet - asset	141	182
Unfunded plans
Disclosure of defined benefit plans [line items]
Unfunded	$ 71	55
Pension plans
Disclosure of defined benefit plans [line items]
Number of countries | country	14
Number of major defined benefit plans | item	2
Pension plans | Minimum
Disclosure of defined benefit plans [line items]
Retirement benefits as a percentage of final salary	1.30%
Minimum funding requirement period	7 years
Pension plans | Maximum
Disclosure of defined benefit plans [line items]
Retirement benefits as a percentage of final salary	66.70%
Pension plans | Funded plans
Disclosure of defined benefit plans [line items]
Funded	$ 133	159
Pension plans | United Kingdom | Funded plans
Disclosure of defined benefit plans [line items]
Funded	114	137
Pension plans | United States of America | Funded plans
Disclosure of defined benefit plans [line items]
Funded	24	40
Pension plans | Other Countries | Funded plans
Disclosure of defined benefit plans [line items]
Funded	(5)	(18)
Pension plans | Other Countries | Unfunded plans
Disclosure of defined benefit plans [line items]
Unfunded	(52)	(91)
Retirement Healthcare | Unfunded plans
Disclosure of defined benefit plans [line items]
Unfunded	$ (10)	$ (13)

RETIREMENT BENEFIT OBLIGATION_3

RETIREMENT BENEFIT OBLIGATIONS - Reconciliation of benefit obligations and pension assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	$ 55	$ (30)
Movement in pension benefit obligation and pension assets:
Current service cost	(9)	(12)
Past service credit		(1)
Interest (expense)/income	1
Administration costs and taxes	(3)	(3)
Costs recognised in Income statement	(11)	(16)
Actuarial gain due to liability experience	(43)	2
Actuarial (loss)/gain due to financial assumptions change	503	43
Actuarial gain due to demographic assumptions	1	25
Return on plan assets (less)/greater than discount rate	(431)	9
Re-measurement recognised in OCI	30	79	$ 10
Employer contributions	6	14
Benefits paid directly by the Group	2	2
Benefits paid, taxes and administration costs paid from scheme assets	(2)
Net cash	6	16
Exchange rates	(9)	6
Amount recognised on the balance sheet	71	55	(30)
Amount recognised on the balance sheet - liability	(70)	(127)
Amount recognised on the balance sheet - asset	141	182
Obligations
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	(1,582)	(1,714)
Movement in pension benefit obligation and pension assets:
Current service cost	(9)	(12)
Past service credit		(1)
Settlements	4	1
Interest (expense)/income	(29)	(25)
Administration costs and taxes	(3)	(3)
Costs recognised in Income statement	(37)	(40)
Actuarial gain due to liability experience	(43)	2
Actuarial (loss)/gain due to financial assumptions change	503	43
Actuarial gain due to demographic assumptions	1	25
Re-measurement recognised in OCI	461	70
Employee contributions	(3)	(3)
Benefits paid directly by the Group	2	2
Benefits paid, taxes and administration costs paid from scheme assets	81	79
Net cash	80	78
Exchange rates	94	24
Amount recognised on the balance sheet	(984)	(1,582)	(1,714)
Amount recognised on the balance sheet - liability	(194)	(271)
Amount recognised on the balance sheet - asset	(790)	(1,311)
Asset
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	1,637	1,684
Movement in pension benefit obligation and pension assets:
Settlements	(4)	(1)
Interest (expense)/income	30	25
Costs recognised in Income statement	26	24
Return on plan assets (less)/greater than discount rate	(431)	9
Re-measurement recognised in OCI	(431)	9
Employer contributions	6	14
Employee contributions	3	3
Benefits paid, taxes and administration costs paid from scheme assets	(83)	(79)
Net cash	(74)	(62)
Exchange rates	(103)	(18)
Amount recognised on the balance sheet	1,055	1,637	$ 1,684
Amount recognised on the balance sheet - liability	124	144
Amount recognised on the balance sheet - asset	931	1,493
Pension plans | United Kingdom
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	137
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	$ 114	137
Weighted average duration of defined benefit obligation	14 years
Pension plans | United Kingdom | Obligations
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	$ (819)
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	(438)	(819)
Pension plans | United Kingdom | Asset
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	956
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	552	956
Pension plans | United States of America
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	40
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	$ 24	40
Weighted average duration of defined benefit obligation	9 years
Pension plans | United States of America | Obligations
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	$ (463)
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	(336)	(463)
Pension plans | United States of America | Asset
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	503
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	360	503
Pension plans | Other Countries
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	(122)
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	(67)	(122)
Pension plans | Other Countries | Obligations
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	(300)
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	(210)	(300)
Pension plans | Other Countries | Asset
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	178
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	$ 143	$ 178

RETIREMENT BENEFIT OBLIGATION_4

RETIREMENT BENEFIT OBLIGATIONS - Plan assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure of fair value of plan assets [line items]
Market value of assets	$ 1,055	$ 1,637	$ 1,684
Retirement benefit expense	88	93	78
Defined contributions plan expenses	77	77	69
Defined benefit plan expenses	11	16	9
Outstanding payments		0	0
Pension plans | United Kingdom
Disclosure of fair value of plan assets [line items]
Market value of assets	552	956	963
Defined benefit pension costs		0
Pension plans | United Kingdom | Assets with a quoted market price
Disclosure of fair value of plan assets [line items]
Cash and cash equivalents	2	4	10
Equity securities	3	84	91
Other bonds	30	50	49
Short dated credit fund	81	126	127
Liability driven investments	225	370	347
Diversified growth funds	55	89	89
Market value of assets	396	723	713
Pension plans | United Kingdom | Other assets
Disclosure of fair value of plan assets [line items]
Insurance contracts	156	233	250
Pension plans | United States of America
Disclosure of fair value of plan assets [line items]
Defined benefit pension costs	0	0	0
Pension plans | United States of America | Assets with a quoted market price
Disclosure of fair value of plan assets [line items]
Cash and cash equivalents	120	6	2
Equity securities		50	60
Government bonds - fixed interest	43	201	163
Corporate bonds	197	246	316
Market value of assets	360	503	541
Pension plans | Other Countries
Disclosure of fair value of plan assets [line items]
Market value of assets	143	178	180
Pension plans | Other Countries | Assets with a quoted market price
Disclosure of fair value of plan assets [line items]
Cash and cash equivalents	7	5	5
Equity securities	49	55	51
Government bonds - fixed interest	7	5	9
Government bonds - Index Linked		4	4
Corporate bonds	10	11	10
Insurance contracts	21	33	37
Property	22	23	23
Other quoted securities	5	8	5
Market value of assets	121	144	144
Pension plans | Other Countries | Other assets
Disclosure of fair value of plan assets [line items]
Insurance contracts	$ 22	$ 34	$ 36

RETIREMENT BENEFIT OBLIGATION_5

RETIREMENT BENEFIT OBLIGATIONS - Principal actuarial assumptions (Details) - Pension plans	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
United Kingdom
Disclosure of defined benefit plans [line items]
Discount rate	4.80%	1.90%	1.30%
Future pension increases	3.30%	3.40%	2.90%
Inflation (RPI)	3.30%	3.40%	2.90%
Inflation (CPI)	2.30%	2.70%	2.10%
Life expectancy at age 60, Male	27 years 4 months 24 days	27 years 7 months 6 days	27 years 7 months 6 days
Life expectancy at age 60, Female	30 years 1 month 6 days	30 years 1 month 6 days	30 years 1 month 6 days
Life expectancy at age 60 in 20 years' time, Male	28 years 10 months 24 days	29 years 1 month 6 days	29 years 1 month 6 days
Life expectancy at age 60 in 20 years' time, Female	31 years 6 months	31 years 6 months	31 years 6 months
United States of America
Disclosure of defined benefit plans [line items]
Discount rate	5.30%	2.70%	2.40%
Life expectancy at age 60, Male	24 years 10 months 24 days	24 years 8 months 12 days	24 years 8 months 12 days
Life expectancy at age 60, Female	27 years 1 month 6 days	26 years 9 months 18 days	26 years 9 months 18 days
Life expectancy at age 60 in 20 years' time, Male	24 years 10 months 24 days	24 years 7 months 6 days	24 years 7 months 6 days
Life expectancy at age 60 in 20 years' time, Female	27 years 7 months 6 days	27 years 3 months 18 days	27 years 3 months 18 days

RETIREMENT BENEFIT OBLIGATION_6

RETIREMENT BENEFIT OBLIGATIONS - Sensitivity analysis (Details) - Pension plans - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
United Kingdom
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Contribution to the plan		$ 7
Supplementary payments		$ 7
United Kingdom | Discount rate
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Pension obligation +50bps/+1yr	$ (29)
Pension obligation -50bps/-1yr	32
Pension cost +50bps/+1yr	(1)
Pension cost -50bps/-1yr	2
United Kingdom | Inflation
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Pension obligation +50bps/+1yr	29
Pension obligation -50bps/-1yr	(27)
Pension cost +50bps/+1yr	2
United Kingdom | Mortality
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Pension obligation +50bps/+1yr	16
Pension obligation -50bps/-1yr	(17)
Pension cost +50bps/+1yr	1
United States of America
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Planned supplementary contributions for next year	0
United States of America | Discount rate
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Pension obligation +50bps/+1yr	(14)
Pension obligation -50bps/-1yr	14
United States of America | Mortality
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Pension obligation +50bps/+1yr	8
Pension obligation -50bps/-1yr	$ (8)

EQUITY - Share Capital (Details

EQUITY - Share Capital (Details) - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Allotted, issued and fully paid
Balance at beginning of period	$ 5,568,000,000	$ 5,279,000,000	$ 5,141,000,000
Balance at end of period	$ 5,259,000,000	$ 5,568,000,000	$ 5,279,000,000
Ordinary Shares
Share capital
Number of shares authorised	1,223,591	1,223,591	1,223,591
Value of shares authorized	$ 245,000,000	$ 245,000,000	$ 245,000,000
Allotted, issued and fully paid
Number of shares - Beginning balance	885,191	884,885	885,207
Share options (in shares)	229	306	327
Shares cancelled (in shares)	(7,770)		(649)
Number of shares - Ending balance	877,650	885,191	884,885
Balance at beginning of period	$ 177,000,000	$ 177,000,000	$ 177,000,000
Shares cancelled	(2,000,000)
Balance at end of period	$ 175,000,000	$ 177,000,000	$ 177,000,000
Deferred Shares
Share capital
Number of shares authorised	50	50	50
Allotted, issued and fully paid
Number of shares - Beginning balance	50	50	50
Number of shares - Ending balance	50	50	50
Further distribution to each share of any class other than deferred shares in case of winding up	$ 1,000
Share capital
Share capital
Value of shares authorized	245,000,000	$ 245,000,000	$ 245,000,000
Allotted, issued and fully paid
Balance at beginning of period	177,000,000	177,000,000	177,000,000
Shares cancelled	(2,000,000)
Balance at end of period	$ 175,000,000	$ 177,000,000	$ 177,000,000

EQUITY - Equity Components (Det

EQUITY - Equity Components (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Balance	$ 5,259	$ 5,568	$ 5,279	$ 5,141
Share capital
Balance	175	177	177	177
Share premium
Balance	615	614	612	610
Capital redemption reserve
Balance	20	18	18	18
Treasury shares
Balance	(118)	(120)	(157)	$ (189)
Retained earnings and other reserves
Balance	$ 4,567	$ 4,879	$ 4,629

EQUITY - Shares Buy-back (Detai

EQUITY - Shares Buy-back (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Shares purchased	$ 158		$ 16
Percentage of waiver over the total paid dividends	1%
Treasury shares
Shares purchased (in shares)	10.1	0
Shares purchased	$ 158		$ 16
Treasury shares excluding Employees' Share Trust
Shares purchased (in shares)	9.7
Shares purchased	$ 150
Employees Share Trust
Shares purchased (in shares)	0.4
Shares purchased	$ 8

EQUITY - Treasury Shares (Detai

EQUITY - Treasury Shares (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Treasury shares - Beginning balance	$ 120
Shares purchased	158		$ 16
Shares transferred to Group beneficiaries	(5)	$ (12)	(9)
Treasury shares - Ending balance	118	120
Treasury shares
Treasury shares - Beginning balance	120	157
Shares purchased	158		16
Shares transferred to Group beneficiaries	(31)	(37)	(37)
Shares cancelled	(129)		(11)
Treasury shares - Ending balance	$ 118	$ 120	$ 157
Number of shares
Number of shares - Beginning balance	7	9.1
Shares purchased (in shares)	10.1	0
Shares transferred to Group beneficiaries (in shares)	(1.8)	(2.1)
Shares cancelled (in shares)	(7.8)
Number of shares - Ending balance	7.5	7	9.1
Treasury shares excluding Employees' Share Trust
Treasury shares - Beginning balance	$ 93	$ 136
Shares purchased	150
Shares transferred from treasury	(41)	(30)
Shares transferred to Group beneficiaries	(6)	(13)
Shares cancelled	(129)
Treasury shares - Ending balance	$ 67	$ 93	$ 136
Number of shares
Number of shares - Beginning balance	5.4	7.9
Shares purchased (in shares)	9.7
Shares transferred from treasury (in shares)	(2.6)	(1.7)
Shares transferred to Group beneficiaries (in shares)	(0.4)	(0.8)
Shares cancelled (in shares)	(7.8)
Number of shares - Ending balance	4.3	5.4	7.9
Employees Share Trust
Treasury shares - Beginning balance	$ 27	$ 21
Shares purchased	8
Shares transferred from treasury	41	30
Shares transferred to Group beneficiaries	(25)	(24)
Treasury shares - Ending balance	$ 51	$ 27	$ 21
Number of shares
Number of shares - Beginning balance	1.6	1.2
Shares purchased (in shares)	0.4
Shares transferred from treasury (in shares)	2.6	1.7
Shares transferred to Group beneficiaries (in shares)	(1.4)	(1.3)
Number of shares - Ending balance	3.2	1.6	1.2

EQUITY - Dividends (Details)

EQUITY - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Equity
Total dividends paid for ordinary share	$ 327	$ 329	$ 328
Distributable reserves	$ 3,563
Ordinary Shares
Equity
Ordinary final dividends per share		$ 0.231	$ 0.231	$ 0.231
Interim dividend per ordinary share	$ 0.144	$ 0.144	$ 0.144
Ordinary dividends paid relating to prior years	$ 202	$ 203	$ 202
Ordinary dividends paid relating to current years	125	126	126
Total dividends paid for ordinary share	$ 327	$ 329	$ 328
Proposed final dividend per ordinary share	$ 0.231
Total proposed dividends	$ 201

CASH FLOW STATEMENT - Analysis

CASH FLOW STATEMENT - Analysis of net debt (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disclosure Of Cash Flow Statement [line items]
Net cash flow/debt movement	$ (537)	$ (188)	$ (59)
Exchange adjustment	47	59	(71)
Corporate bond issuance expense	3	(1)	8
IFRS 16 lease liabilities				$ (170)
IFRS 16 lease liabilities movement	1	(7)	34
Balance at end of year	(2,339)	(1,852)
Balance at beginning of year	(1,852)		(1,600)
Balance at end of year	(2,535)	(2,049)	(1,926)
Balance at beginning of year	(2,049)	(1,926)	(1,770)
Currency swaps
Disclosure Of Cash Flow Statement [line items]
Net cash flow/debt movement	(3)	4	(7)
Exchange adjustment	3	(4)	7
Interest swaps
Disclosure Of Cash Flow Statement [line items]
Exchange adjustment	(13)	(2)	2
Balance at end of year	(13)		2
Balance at beginning of year		2
Overdrafts
Disclosure Of Cash Flow Statement [line items]
Net cash flow/debt movement	1	7	9
Exchange adjustment	(2)	(1)
Balance at beginning of year			(20)
Balance at end of year	(6)	(5)	(11)
Balance at beginning of year	(5)	(11)	(20)
Due within one year
Disclosure Of Cash Flow Statement [line items]
Net cash flow/debt movement	302	(162)	(260)
Exchange adjustment	23		(2)
IFRS 16 lease liabilities				(46)
IFRS 16 lease liabilities movement	7	(2)	12
Balance at beginning of year			(6)
Balance at end of year	(154)	(486)	(326)
Balance at beginning of year	(486)	(326)	(52)
Due after one year
Disclosure Of Cash Flow Statement [line items]
Net cash flow/debt movement	94	429	(1,285)
Exchange adjustment	45	72	(79)
Corporate bond issuance expense	3	(1)	8
IFRS 16 lease liabilities				$ (124)
IFRS 16 lease liabilities movement	(6)	(5)	22
Balance at beginning of year			(1,851)
Balance at end of year	(2,712)	(2,848)	(3,353)
Balance at beginning of year	(2,848)	(3,353)	(1,975)
Cash
Disclosure Of Cash Flow Statement [line items]
Net cash flow/debt movement	(931)	(466)	1,484
Exchange adjustment	(9)	(6)	1
Balance at beginning of year			277
Balance at end of year	350	1,290	1,762
Balance at beginning of year	$ 1,290	$ 1,762	$ 277

CASH FLOW STATEMENT - Reconcili

CASH FLOW STATEMENT - Reconciliation of net cash flow to movement in net debt (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CASH FLOW STATEMENT
Net cash flow from cash net of overdrafts	$ (930)	$ (459)	$ 1,493
Settlement of Currency Swaps	(3)	4	(7)
Net cash flow from borrowings	396	267	(1,545)
Change in net debt from net cash flow	(537)	(188)	(59)
IFRS 16 lease liabilities	1	7	(34)
Exchange adjustment	47	59	(71)
Corporate bond issuance expense	3	(1)	8
Change in net debt in the year	(486)	(123)	(156)
Balance at beginning of year	(2,049)	(1,926)	(1,770)
Balance at end of year	$ (2,535)	$ (2,049)	$ (1,926)

CASH FLOW STATEMENT - Cash and

CASH FLOW STATEMENT - Cash and cash equivalents (Details) $ in Millions	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Cash and cash equivalents if different from statement of financial position [abstract]
Cash at bank	$ 350	$ 1,290	$ 1,762
Bank overdrafts	(6)	(5)	(11)
Cash and cash equivalents	$ 344	$ 1,285	$ 1,751	$ 257
Number of countries in which the company operates | item	100

CASH FLOW STATEMENT - Cash outf

CASH FLOW STATEMENT - Cash outflows (inflows) arising from financing activities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure Of Cash Flow Statement [line items]
Repayment of bank loans	$ 881	$ 267	$ 405
Borrowings of bank loans			(950)
Proceeds from corporate bond issue	485		1,000
Repayment of lease liabilities	54	59	55
Cash outflows/(inflows) from other	(3)	4	(7)
Dividends	327	329	328
Purchase of own shares	158		16
Proceeds from own Shares/issue of ordinary shares	(6)	(14)	(11)
Net cash used in financing activities	926	645	(1,164)
Debt
Disclosure Of Cash Flow Statement [line items]
Repayment of bank loans	881	267	405
Borrowings of bank loans			(950)
Proceeds from corporate bond issue	485		1,000
Repayment of lease liabilities	54	59	55
Cash outflows/(inflows) from other	(3)	4	(7)
Net cash used in financing activities	447	330	(1,497)
Equity.
Disclosure Of Cash Flow Statement [line items]
Dividends	327	329	328
Purchase of own shares	158		16
Proceeds from own Shares/issue of ordinary shares	(6)	(14)	(11)
Net cash used in financing activities	$ 479	$ 315	$ 333

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ in Millions			12 Months Ended
	Jan. 04, 2021 USD ($) item	Jan. 23, 2020 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($) item	Jan. 18, 2022 USD ($)
Disclosure of detailed information about business combination [line items]
Contingent consideration			$ 78	$ 84
Cash flows used in obtaining control of subsidiaries or other businesses			113	285	$ 170
Aggregate identifiable assets acquired and liabilities assumed
Consideration (net of cash acquired)				236
Payments of deferred contingent consideration			24	49	53
Goodwill			3,031	2,989	2,928
Acquisitions			84	96
Exchange adjustment			42	35
Extremity Orthopaedics Revenue				82
Engage Surgical
Disclosure of detailed information about business combination [line items]
Percentage of share capital acquired						100%
Maximum consideration payable at the acquisition date						$ 135
Fair value of consideration						131
Contingent consideration						32
Aggregate identifiable assets acquired and liabilities assumed
Property, plant and equipment						2
Inventory						2
Trade and other payable						(1)
Net assets						47
Goodwill						84
Consideration (net of cash acquired)						131
Engage Surgical | Product- related
Aggregate identifiable assets acquired and liabilities assumed
Intangible assets						$ 44
Extremity Orthopaedics
Disclosure of detailed information about business combination [line items]
Number of Wholly Owned Subsidiaries Acquired | item	2
Maximum consideration payable at the acquisition date	$ 240
Fair value of consideration	236
Deferred consideration	0
Contingent consideration	0
Cash flows used in obtaining control of subsidiaries or other businesses			113	285	170
Aggregate identifiable assets acquired and liabilities assumed
Property, plant and equipment	22
Inventory	41
Trade and other payable	(23)
Net deferred tax asset/(liability)	(12)
Net assets	140
Goodwill	96
Consideration (net of cash acquired)				$ 236	117
Consideration (net of cash acquired)	236		$ 89
Extremity Orthopaedics | Product- related
Aggregate identifiable assets acquired and liabilities assumed
Intangible assets	101
Extremity Orthopaedics | Customer and distribution related
Aggregate identifiable assets acquired and liabilities assumed
Intangible assets	$ 11
Tusker Medical, Inc.
Disclosure of detailed information about business combination [line items]
Percentage of share capital acquired		100%
Maximum consideration payable at the acquisition date		$ 140
Fair value of consideration		139
Deferred consideration		6
Contingent consideration		$ 35
Aggregate identifiable assets acquired and liabilities assumed
Property, plant and equipment					6
Other receivables					1
Trade and other payable					(6)
Non-current liabilities					(3)
Net deferred tax asset/(liability)					5
Net assets					56
Goodwill					83
Consideration (net of cash acquired)					139
Tusker Medical, Inc. | Product- related
Aggregate identifiable assets acquired and liabilities assumed
Intangible assets					$ 53
Two smaller acquisitions in spheres of remote physical therapy and arthroscopic enabling technology
Disclosure of detailed information about business combination [line items]
Number of businesses acquired, deemed to be business combinations | item					2
Maximum consideration payable at the acquisition date					$ 41
Fair value of consideration					26
Deferred consideration					3
Contingent consideration					17
Aggregate identifiable assets acquired and liabilities assumed
Intangible assets					8
Property, plant and equipment and inventory					2
Goodwill not expected to be deductible for tax purposes					$ 16

OTHER NOTES TO THE ACCOUNTS - S

OTHER NOTES TO THE ACCOUNTS - Stock Options Outstanding (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) Options shares	Dec. 31, 2020 USD ($) Options shares	Dec. 31, 2022 Options £ / shares shares
Share option activities
Number of share options outstanding in share-based payment arrangement at end of period | Options		4,472,000	4,582,000	5,202,000
Maximum number of share options available to grant | shares		5,997,000	4,704,000	7,371,000
Expense for share-based payments | $	$ 40	$ 41	$ 26
Minimum
Share option activities
Exercise price of outstanding share options				£ 8.43
Maximum
Share option activities
Exercise price of outstanding share options				£ 15.41

OTHER NOTES TO THE ACCOUNTS - R

OTHER NOTES TO THE ACCOUNTS - Related Party Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Executive officers (including Non-Executive Directors)
Disclosure of transactions between related parties [line items]
Short-term employee benefits	$ 17	$ 16	$ 12
Share-based payments expense	10	7	5
Pension and post-employment benefit entitlements	2	1	2
Total remunerations	29	24	19
Trading transactions - not been disclosed elsewhere in the financial statements
Disclosure of transactions between related parties [line items]
Transaction amount	$ 0	$ 0	$ 0