Smith & Nephew (SNN) 20-F 11 Mar 24 2023 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2023 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, 2023
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	877,672,643
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Entity Central Index Key	0000845982
Amendment Flag	false
Document Financial Statement Error Correction [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, Country	GB
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, 2023	Dec. 31, 2022	Dec. 31, 2021
GROUP INCOME STATEMENT
Revenue		$ 5,549	$ 5,215	$ 5,212
Cost of goods sold		(1,730)	(1,540)	(1,543)
Gross profit		3,819	3,675	3,669
Selling, general and administrative expenses		(3,055)	(2,880)	(2,720)
Research and development expenses		(339)	(345)	(356)
Operating profit		425	450	593
Interest income		34	14	6
Interest expense		(132)	(80)	(80)
Other finance costs		(7)	(8)	(17)
Share of results of associates		(30)	(141)	9
Gain on disposal of interest in associate		0	0	75
Profit before taxation		290	235	586
Taxation		(27)	(12)	(62)
Attributable profit for the year	[1]	$ 263	$ 223	$ 524
Earnings per ordinary share
Basic	[1]	$ 0.302	$ 0.255	$ 0.598
Diluted	[1]	$ 0.301	$ 0.255	$ 0.597
[1] Attributable to equity holders of the Company and wholly derived from continuing operations.

GROUP STATEMENT OF COMPREHENSIV

GROUP STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
GROUP STATEMENT OF COMPREHENSIVE INCOME
Attributable profit for the year	[1]	$ 263	$ 223	$ 524
Items that will not be reclassified to income statement
Remeasurement of net retirement benefit obligations		(89)	30	79
Taxation on other comprehensive income		18	(7)	(22)
Total items that will not be reclassified to income statement		(71)	23	57
Items that may be reclassified subsequently to income statement
Cash flow hedges - forward foreign exchange contracts gains arising in the year		23	24	34
Cash flow hedges - forward foreign exchange contracts (gains)/losses transferred to inventories for the year		(25)	(37)	7
Exchange differences on translation of foreign operations		56	(102)	(53)
Taxation on other comprehensive income			2	(5)
Total items that may be reclassified subsequently to income statement		54	(113)	(17)
Other comprehensive (loss)/income for the year, net of taxation		(17)	(90)	40
Total comprehensive income for the year	[1]	$ 246	$ 133	$ 564
[1] Attributable to equity holders of the Company and wholly derived from continuing operations.

GROUP BALANCE SHEET

GROUP BALANCE SHEET - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Non-current assets
Property, plant and equipment	$ 1,470	$ 1,455
Goodwill	2,992	3,031
Intangible assets	1,110	1,236
Investments	8	12
Investments in associates	16	46
Other non-current assets	18	12
Retirement benefit assets	69	141
Deferred tax assets	274	177
Total non current assets	5,957	6,110
Current assets
Inventories	2,395	2,205
Trade and other receivables	1,300	1,264
Current tax receivable	33	37
Cash at bank	302	350
Total current assets	4,030	3,856
Total assets	9,987	9,966
Equity attributable to owners of the Company
Share capital	175	175
Share premium	615	615
Capital redemption reserve	20	20
Treasury shares	(94)	(118)
Other reserves	(405)	(459)
Retained earnings	4,906	5,026
Total equity	5,217	5,259
Non-current liabilities
Long-term borrowings and lease liabilities	2,319	2,712
Retirement benefit obligations	88	70
Other payables	35	90
Provisions	48	84
Deferred tax liabilities	9	36
Total non-current liabilities	2,499	2,992
Current liabilities
Bank overdrafts, borrowings, loans and lease liabilities	765	160
Trade and other payables	1,055	1,098
Provisions	233	243
Current tax payable	218	214
Total current liabilities	2,271	1,715
Total liabilities	4,770	4,707
Total equity and liabilities	$ 9,987	$ 9,966

GROUP CASH FLOW STATEMENT

GROUP CASH FLOW STATEMENT - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2023		Dec. 31, 2022		Dec. 31, 2021
Cash flows from operating activities
Profit before taxation		$ 290		$ 235		$ 586
Net interest expense		98		66		74
Depreciation, amortisation and impairment		683		617		567
Loss on disposal of property, plant and equipment and software		18		11		14
Share-based payments expense (equity-settled)		39		40		41
Share of results of associates		30		141		(9)
Gain on disposal of interest in associate		0		0		(75)
Net movement in post-retirement benefit obligations		3		6
Increase in inventories		(178)		(407)		(151)
Increase in trade and other receivables		(49)		(103)		(81)
Increase/(decrease) in trade and other payables and provisions		(105)		(25)		82
Cash generated from operations	[1]	829		581		1,048
Interest received		8		7		6
Interest paid		(104)		(73)		(80)
Income taxes paid		(125)		(47)		(97)
Net cash inflow from operating activities		608		468		877
Cash flows from investing activities
Acquisitions, net of cash acquired		(21)		(113)		(285)
Capital expenditure		(427)		(358)		(408)
Net (purchase)/proceeds from sale of investments				(2)		(2)
Distribution from associate				1		4
Net cash used in investing activities		(448)		(472)		(691)
Cash flows from financing activities
Proceeds from issue of ordinary share capital				1		2
Purchase of own shares				(158)
Payment of capital element of lease liabilities		(52)		(54)		(59)
Proceeds from borrowings due within one year		326
Settlement of borrowings due within one year		(151)		(407)		(267)
Proceeds from borrowings due after one year				485
Settlement of borrowings due after one year				(474)
Proceeds from own shares				5		12
Settlement of currency swaps		4		3		(4)
Equity dividends paid		(327)		(327)		(329)
Net cash used in financing activities		(200)		(926)		(645)
Net decrease in cash and cash equivalents		(40)		(930)		(459)
Cash and cash equivalents at beginning of year		344	[2]	1,285	[2]	1,751
Exchange adjustments		(4)		(11)		(7)
Cash and cash equivalents at end of year	[2]	$ 300		$ 344		$ 1,285
[1] Includes $124 m (2022: $120 m, 2021: $108 m) of outgoings on restructuring and rationalisation expenses, $16 m (2022: $22 m, 2021: $28 m) of outgoings on acquisition and disposal-related items and $145 m outflow (2022: $133 m, 2021: $111 m) of legal and other items. Cash and cash equivalents is net of bank overdrafts of $2 m (2022: $ 6 m, 2021: $ 5 m).

GROUP CASH FLOW STATEMENT (Pare

GROUP CASH FLOW STATEMENT (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
GROUP CASH FLOW STATEMENT
Restructuring and rationalisation expenses	$ 124	$ 120	$ 108
Acquisition-related costs	16	22	28
Legal and other costs	145	133	111
Bank overdrafts	$ 2	$ 6	$ 5

GROUP STATEMENT OF CHANGES IN E

GROUP STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions		Share capital	Share premium	Capital redemption reserve	Treasury shares	[1]	Other reserves	[2]	Retained earnings	[3]	Total
Balance at beginning of period at Dec. 31, 2020		$ 177	$ 612	$ 18	$ (157)		$ (329)		$ 4,958		$ 5,279
Attributable profit for the year	[4]								524		524
Other comprehensive 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	[5]		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	[4]								223		223
Other comprehensive 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	[5]		1								1
Balance at end of period at Dec. 31, 2022		175	615	20	(118)		(459)		5,026		5,259
Attributable profit for the year	[4]								263		263
Other comprehensive income							54		(71)		(17)
Equity dividends declared and paid									(327)		(327)
Share-based payments recognised									39		39
Cost of shares transferred to beneficiaries					24				(24)
Balance at end of period at Dec. 31, 2023		$ 175	$ 615	$ 20	$ (94)		$ (405)		$ 4,906		$ 5,217
[1] Refer to Note 19.2 for further information. Other reserves comprises gains and losses on cash flow hedges, foreign exchange differences on translation of foreign operations and net changes on fair value of trade investments. The cumulative translation loss within other reserves at 31 December 2023 was $396 m (2022: $452 m, 2021: $350 m). Within retained earnings is a capital reserve of $2,266 m (2022: $2,266 m, 2021: $2,266 m). Attributable to equity holders of the Company and wholly derived from continuing operations. Issue of ordinary share capital in connection with the Group’s share incentive plans.

GROUP STATEMENT OF CHANGES IN_2

GROUP STATEMENT OF CHANGES IN EQUITY (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
GROUP STATEMENT OF CHANGES IN EQUITY
Cumulative translation loss within other reserves	$ (396)	$ (452)	$ (350)
Capital reserve	$ 2,266	$ 2,266	$ 2,266

BASIS OF PREPARATION

BASIS OF PREPARATION	12 Months Ended
	Dec. 31, 2023
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 Accounting Standards as issued by the International Accounting Standards Board (IASB) effective as at 31 December 2023. IFRS as adopted in the UK differs in certain respects from IFRS Accounting Standards 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: valuation of 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 $300 m of cash and cash equivalents at 31 December 2023. The Group’s net debt, excluding lease liabilities, at 31 December 2023 was $2,577 m with access to committed facilities of $3.6 bn with an average maturity of 5.2 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 $405 m of private placement debt due for repayment in 2024. $1,030 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 2023 A number of new amendments to standards are effective from 1 January 2023 but they do not have a material effect on the Group’s financial statements except for Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendment to IAS 12, which the Group has adopted. The amendments narrow the scope of the initial recognition exemption to exclude transactions that give rise to equal and offsetting temporary differences such as leases. The Group previously accounted for deferred tax on leases where the deferred tax asset or liability was recognised on a net basis. Following the amendments, the Group has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. However, there is no impact on the balance sheet because the balances qualify for offset under paragraph 74 of IAS 12. There was also no impact on the opening retained earnings as at 1 January 2023 as a result of the change. The policy for recognising and measuring income taxes is consistent with that applied in the comparative years except for the changes outlined above as a result of the Group’s adoption of the amendments to IAS 12. The change in accounting policy will also be reflected in the Group’s consolidated financial statements for the year ending 31 December 2023. 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 2024 and earlier application is permitted; however, the Group has not adopted them early in preparing these Financial Statements. The Group is adopting the mandatory temporary exception from the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules which will take effect for the Group from 1 January 2024. 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 Accounting Standards 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 2022. Management have considered the impact of the uncertainties around the current challenging economic environment below. Valuation of inventories A feature of the Orthopaedics business unit (which accounts for approximately 66% of the Group’s total inventory and approximately 82% 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 2022, 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 2024 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 an increase in the level of headroom in relation to goodwill impairment testing for the Orthopaedics CGU which is still sensitive to a reasonably possible change in assumptions. In 2023, the Group impaired $84m of goodwill and $37m of intangible assets related to Engage as a result of the impairment reviews undertaken for the voluntary product discontinuation. For other intangible assets and goodwill CGUs, this critical estimate is not considered to have a significant risk of material adjustment in 2024 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 2023 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. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 Average rates ​ ​ ​ Sterling ​ 1.24 ​ 1.23 ​ 1.38 Euro ​ 1.08 ​ 1.05 ​ 1.18 Swiss Franc ​ 1.11 ​ 1.05 ​ 1.09 Year end rates ​ ​ ​ ​ ​ ​ Sterling ​ 1.27 ​ 1.21 ​ 1.35 Euro ​ 1.10 ​ 1.07 ​ 1.13 Swiss Franc ​ 1.19 ​ 1.08 ​ 1.10 ​

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2023
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION	2 Business segment information The Group’s operating structure is organised around three global business units and the chief operating decision maker monitors performance, makes operating decisions and allocates resources on a global business unit basis. Accordingly, the Group has concluded that there are three reportable segments. Business unit presidents have responsibility for upstream marketing, driving product portfolio and technology acquisition decisions, full commercial responsibility and for the implementation of their business unit strategy globally. The Executive Committee (‘ExCo’) comprises the Chief Financial Officer (‘CFO’), the business unit 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 business units (Orthopaedics, Sports Medicine & ENT and Advanced Wound Management) and determines the best allocation of resources to the business units. In 2023, ENT is identified as a new operating segment, however, it does not meet the quantitative threshold requirement to be disclosed as a reporting segment. It will remain aggregated with Sports Medicine to be an operating segment as they share similar characteristics. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Reportable segment revenue ​ ​ ​ Orthopaedics ​ 2,214 ​ 2,113 ​ 2,156 Sports Medicine & ENT ​ 1,729 ​ 1,590 ​ 1,560 Advanced Wound Management ​ 1,606 ​ 1,512 ​ 1,496 Revenue from external customers ​ 5,549 ​ 5,215 ​ 5,212 ​ ​ Disaggregation of revenue: The following table shows the disaggregation of Group revenue by product by business unit: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Revenue by product from continuing operations ​ ​ ​ Knee Implants ​ 940 ​ 899 ​ 876 Hip Implants ​ 599 ​ 584 ​ 612 Other Reconstruction ​ 111 ​ 87 ​ 92 Trauma & Extremities ​ 564 ​ 543 ​ 576 Orthopaedics ​ 2,214 ​ 2,113 ​ 2,156 Sports Medicine Joint Repair ​ 945 ​ 870 ​ 839 Arthroscopic Enabling Technologies ​ 588 ​ 567 ​ 590 ENT (Ear, Nose and Throat) ​ 196 ​ 153 ​ 131 Sports Medicine & ENT ​ 1,729 ​ 1,590 ​ 1,560 Advanced Wound Care ​ 725 ​ 712 ​ 731 Advanced Wound Bioactives ​ 553 ​ 520 ​ 496 Advanced Wound Devices ​ 328 ​ 280 ​ 269 Advanced Wound Management ​ 1,606 ​ 1,512 ​ 1,496 Consolidated revenue from continuing operations ​ 5,549 ​ 5,215 ​ 5,212 ​ 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 business unit are sold to wholesalers and intermediaries, while products in the other business units 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 products, which 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ ​ ​ ​ ​ 2022 ​ ​ ​ ​ ​ 2021 ​ ​ 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 ​ 3,184 ​ 759 ​ 3,943 ​ 2,949 ​ 754 ​ 3,703 ​ 2,969 ​ 747 ​ 3,716 Advanced Wound Management ​ 1,406 ​ 200 ​ 1,606 ​ 1,319 ​ 193 ​ 1,512 ​ 1,327 ​ 169 ​ 1,496 Total ​ 4,590 ​ 959 ​ 5,549 ​ 4,268 ​ 947 ​ 5,215 ​ 4,296 ​ 916 ​ 5,212 ​ 1 Established Markets comprises the US, Australia, Canada, Europe, Japan and New Zealand . ​ Sales are attributed to the country of destination. US revenue for 2023 was $2,979m (2022: $2,764m, 2021: $2,658m), China revenue for 2023 was $275m (2022: $319m, 2021: $352m) and UK revenue for 2023 was $201m (2022: $186m, 2021: $189m). ​ ​ 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 2023. As of 31 December 2023, 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 2023 was $92m (2022: $103m) with $383m being recognised in revenue in 2023. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Segment profit ​ ​ ​ ​ ​ ​ Orthopaedics ​ 398 ​ 383 ​ 367 Sports Medicine & ENT ​ 503 ​ 472 ​ 459 Advanced Wound Management ​ 472 ​ 436 ​ 474 Segment trading profit ​ 1,373 ​ 1,291 ​ 1,300 Corporate costs ​ (403) ​ (390) ​ (364) Group trading profit ​ 970 ​ 901 ​ 936 Acquisition and disposal-related items 1 ​ (60) ​ (4) ​ (7) Restructuring and rationalisation expenses ​ (220) ​ (167) ​ (113) Amortisation and impairment of acquisition intangibles 1 ​ (207) ​ (205) ​ (172) Legal and other 1 ​ (58) ​ (75) ​ (51) Group operating profit ​ 425 ​ 450 ​ 593 ​ 1 During 2023, management evaluated the commercial viability of Engage products and concluded that they should be discontinued. A total of $109 m of Engage’s assets and liabilities were written off as a result of this action, which includes goodwill of $84 m (included in acquisition and disposal-related items), intangible assets of $37 m (included in amortisation and impairment of acquisition intangibles), inventory of $21 m (included in legal and other), partially offset by remeasurement of contingent consideration of $33 m (included in acquisition and disposal-related items). 2.3 Acquisition and disposal-related items For the year ended 31 December 2023, costs primarily relate to the acquisition of CartiHeal and impairment of Engage goodwill, partially offset by credits relating to remeasurement of contingent consideration from prior year acquisitions. For the year ended 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 ended 31 December 2021, costs primarily relate to the acquisition of Extremity Orthopaedics and prior year acquisitions, partially offset by credits relating to remeasurement of contingent consideration for prior year acquisitions. 2.4 Restructuring and rationalisation costs For the year ended 31 December 2023 and 2022, these costs include efficiency and productivity elements of the 12-Point Plan. For the years ended 31 December 2023, 2022 and 2021, these costs also relate to the Operations and Commercial Excellence programme. For the years ended 31 December 2021, these 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 2023, 2022 and 2021, 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 2023, charges primarily relate to legal expenses for ongoing metal-on-metal hip claims partially offset by an decrease of $8 m in the provision that reflects the decrease in the present value of the estimated costs to resolve all other known and anticipated metal-on-metal hip claims and by the release of a provision for an intellectual property dispute. For the year ended 31 December 2022, charges primarily relate to legal expenses for ongoing metal-on-metal hip claims. These charges in the year to 31 December 2022 were partially offset by a credit of $7m relating to insurance recoveries for ongoing 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. The years ended 31 December 2023, 2022 and 2021 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million United Kingdom ​ 525 ​ 487 ​ 541 United States of America ​ 3,692 ​ 3,918 ​ 4,125 Other ​ 1,397 ​ 1,387 ​ 1,447 Total non-current assets of the consolidated Group 1 ​ 5,614 ​ 5,792 ​ 6,113 ​ 1 Non-current assets exclude retirement benefit assets and deferred tax assets .

OPERATING PROFIT

OPERATING PROFIT	12 Months Ended
	Dec. 31, 2023
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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Revenue ​ 5,549 ​ 5,215 ​ 5,212 Cost of goods sold 1 ​ (1,730) ​ (1,540) ​ (1,543) Gross profit ​ 3,819 ​ 3,675 ​ 3,669 Research and development expenses 2 ​ (339) ​ (345) ​ (356) Selling, general and administrative expenses: ​ ​ ​ Marketing, selling and distribution expenses ​ (2,218) ​ (2,066) ​ (2,013) Administrative expenses 3,4,5,6 ​ (837) ​ (814) ​ (707) ​ ​ (3,055) ​ (2,880) ​ (2,720) Operating profit ​ 425 ​ 450 ​ 593 1 2023 includes $27 m charge relating to legal and other items, $73 m charge relating to restructuring and rationalisation expenses and $3 m charge relating to acquisition and disposal-related items (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). 2 2023 includes $21 m charge relating to legal and other items (2022: $35 m, 2021: $39 m), $ 1 m charge relating to acquisition and disposal-related items (2022: $5 m, 2021: $ 7 m) and $18 m charge relating to restructuring and rationalisation expenses (2022: $ 5 m, 2021: $ nil ). 3 2023 includes $51 m of amortisation of software and other intangible assets (2022: $56 m, 2021: $65 m). 4 2023 includes $207 m of amortisation and impairment of acquisition intangibles and $129 m of restructuring and rationalisation expenses (2022: $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). 5 2023 includes $10 m charge relating to legal and other items (2022: $36 m charge, 2021: $5 m charge). 6 2023 includes $56 m charge relating to acquisition and disposal-related items (2022: $ 6 m credit, 2021: $ nil ). 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Other operating income ​ – ​ (7) ​ (35) Amortisation of intangible assets ​ 221 ​ 229 ​ 237 Impairment of intangible assets 1 ​ 37 ​ 39 ​ 2 Impairment of Engage's goodwill ​ 84 ​ – ​ – Impairment of property, plant and equipment ​ 31 ​ 30 ​ 1 Fair value remeasurement of trade investments ​ 4 ​ – ​ 1 Depreciation of property, plant and equipment 2 ​ 306 ​ 319 ​ 326 Loss on disposal of property, plant and equipment and intangible assets ​ 18 ​ 11 ​ 14 Advertising costs ​ 88 ​ 92 ​ 81 1 The 2023 impairment of intangible assets includes Engage’s intangible assets of $37 m due to the voluntary product discontinuation. 2 The 2023 depreciation charge includes $54 m (2022: $56 m, 2021: $56 m) related to right-of-use assets. In 2023, other operating income comprises insurance recoveries for ongoing metal-on-metal hip claims of $nil (2022: $7m, 2021: $35m). In 2023, $nil (2022: $7m, 2021: $35m) of other operating income was included with legal and other items, as explained in Note 2.6, and does not form part of trading profit, the segments’ profit measure. ​ 3.1 Staff costs during the year amounted to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ Notes $ million $ million $ million Wages and salaries ​ ​ 1,683 ​ 1,565 ​ 1,562 Social security costs ​ ​ 242 ​ 215 ​ 223 Pension costs (including retirement healthcare) ​ 18 ​ 95 ​ 88 ​ 93 Share-based payments ​ 22 ​ 39 ​ 40 ​ 41 ​ ​ ​ 2,059 ​ 1,908 ​ 1,919 ​ During the year ended 31 December 2023, the average number of employees was 19,081 (2022: 19,094, 2021: 18,976). 3.2 Audit Fees – information about the nature and cost of services provided by the auditor ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Audit services: ​ ​ ​ Group accounts ​ 7.9 ​ 7.2 ​ 5.5 Local statutory audit pursuant to legislation ​ 2.1 ​ 2.2 ​ 2.0 Other services: ​ ​ ​ ​ ​ ​ Audit-related services ​ 0.3 ​ 0.4 ​ 0.1 Total auditor’s remuneration ​ 10.3 ​ 9.8 ​ 7.6 Arising: ​ ​ ​ In the UK ​ 6.0 ​ 5.3 ​ 3.5 Outside the UK ​ 4.3 ​ 4.5 ​ 4.1 ​ ​ 10.3 ​ 9.8 ​ 7.6 ​

INTEREST AND OTHER FINANCE COST

INTEREST AND OTHER FINANCE COSTS	12 Months Ended
	Dec. 31, 2023
INTEREST AND OTHER FINANCE COSTS
INTEREST AND OTHER FINANCE COSTS	4 4.1 Interest income/(expense) ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Interest income ​ 34 ​ 14 ​ 6 Interest expense: ​ ​ ​ ​ ​ Bank borrowings ​ (10) ​ (3) ​ (3) Private placement notes ​ (38) ​ (39) ​ (46) Lease liabilities ​ (8) ​ (6) ​ (7) Corporate bond ​ (46) ​ (27) ​ (21) Other 1 ​ (30) ​ (5) ​ (3) ​ ​ (132) ​ (80) ​ (80) Net interest expense ​ (98) ​ (66) ​ (74) 1 Other interest expenses included mainly swap interest expenses in 2023. 4.2 Other finance costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ Notes $ million $ million $ million Retirement benefit net interest expense ​ 18 ​ (1) ​ (2) ​ (3) Unwinding of discount ​ ​ (6) ​ (9) ​ (10) Other ​ ​ – ​ 3 ​ (4) Other finance costs ​ ​ (7) ​ (8) ​ (17) ​

TAXATION

TAXATION	12 Months Ended
	Dec. 31, 2023
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. In 2023, the Group has adopted IAS 12-Deferred Tax related to Assets and Liabilities arising from a Single Transaction amendments, which narrow the scope of the initial recognition exemption to exclude transactions that give rise to equal and offsetting temporary differences such as leases. The Group previously accounted for deferred tax on leases where the deferred tax asset or liability was recognised on a net basis. Following the amendments, the Group has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. However, there is no impact on the balance sheet because the balances qualify for offset under paragraph 74 of IAS 12. There was also no impact on the opening retained earnings as at 1 January 2023 as a result of the change. ​ 5.1 Taxation charge attributable to the Group ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Current taxation: ​ ​ ​ UK corporation tax at 23.5% (2022: 19.0%; 2021: 19.0%) ​ 15 ​ 17 ​ 14 Overseas tax ​ 165 ​ 104 ​ 126 Current income tax charge ​ 180 ​ 121 ​ 140 Adjustments in respect of prior periods ​ (45) ​ (10) ​ (33) Total current taxation ​ 135 ​ 111 ​ 107 Deferred taxation: ​ ​ ​ Origination and reversal of temporary differences ​ (116) ​ (77) ​ (35) Changes in tax rates ​ (2) ​ (5) ​ (14) Adjustments to estimated amounts arising in prior periods ​ 10 ​ (17) ​ 4 Total deferred taxation ​ (108) ​ (99) ​ (45) Total taxation as per the income statement ​ 27 ​ 12 ​ 62 Taxation in other comprehensive income ​ (18) ​ 5 ​ 27 Taxation in equity ​ – ​ 3 ​ 1 Taxation charge attributable to the Group ​ 9 ​ 20 ​ 90 ​ ​ The 2023, 2022 and 2021 net prior period adjustments of $35m, $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 total taxation charge of $27 m as per the income statement includes a $113 m net credit (2022: $127 m net credit, 2021: $85 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. 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 $121m (2022: $150m) in relation to uncertain tax positions which relate to multiple issues across the jurisdictions in which the Group operates. Other payables include $13m (2022: $10m) of interest on these provisions. There are $33m (2022: $37m) of tax receivables. 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 2024 is unlikely. Pillar Two The OECD Pillar Two GloBE Rules (Pillar Two) introduce a global minimum corporation tax rate of 15% applicable to multinational enterprise groups with global revenue over €750m. All participating OECD members are required to incorporate these rules into national legislation. The Pillar Two rules will apply to the Group for its accounting period commencing 1 January 2024. On 23 May 2023, the International Accounting Standards Board (IASB) amended IAS 12 to introduce a mandatory temporary exception to the accounting for deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules. On 19 July 2023 the UK Endorsement Board adopted the IASB amendments to IAS 12. The Group has performed an assessment of its potential exposure to Pillar Two income taxes based on 2023 financial data and considers that the rules will result in an increase in the Group tax rate. The main jurisdictions which would give rise to Pillar Two income tax are Switzerland, Singapore and Costa Rica; all jurisdictions in which the Group has substantial operations. It is estimated that the Pillar Two income tax would increase the Group tax rate by around 1.5 %. The actual Pillar Two impact in 2024 will depend on factors such as revenues, costs and foreign currency exchange rate impacts by jurisdiction. The Group is adopting the mandatory temporary exception from the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules. 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 2023 is 23.5% (2022: 19.0%, 2021: 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 corporation tax rate increased to 25% from 1 April 2023. The impact of this rate change is reflected in the calculation of the taxation charge, and in the tax reconciliation below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Profit before taxation ​ 290 ​ 235 ​ 586 Expected taxation at UK statutory rate of 23.5% (2022: 19.0%, 2021: 19.0%) ​ 68 ​ 45 ​ 111 Differences in overseas taxation rates ​ (24) ​ (19) ​ (17) Innovation reliefs ​ (7) ​ (10) ​ (12) Tax losses and other deferred tax assets not recognised ​ – ​ – ​ 7 Recognition of previously unrecognised tax losses ​ (14) ​ (4) ​ (2) Expenses not deductible for tax purposes 1 ​ 38 ​ 31 ​ 22 Change in tax rates ​ (2) ​ (5) ​ (14) Withholding tax on unremitted earnings ​ 3 ​ 1 ​ (4) Adjustments in respect of prior years 2 ​ (35) ​ (27) ​ (29) Total taxation charge as per the income statement ​ 27 ​ 12 ​ 62 ​ 1 In 2023, this includes a $7 m impact of non-tax deductible impairment on UK owned investments (2022: $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 The adjustment in respect of prior years are explained on page 187. ​ 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 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 Exchange adjustment ​ – ​ (1) ​ (3) ​ 1 ​ 1 ​ (2) Movement in income statement – current year ​ (15) ​ 43 ​ – ​ 63 ​ 25 ​ 116 Movement in income statement – prior years ​ – ​ 1 ​ – ​ (10) ​ (1) ​ (10) Movement in other comprehensive income ​ – ​ – ​ 18 ​ – ​ – ​ 18 Changes in tax rate ​ (1) ​ – ​ – ​ 4 ​ (1) ​ 2 At 31 December 2023 ​ (91) ​ (138) ​ (6) ​ 198 ​ 302 ​ 265 ​ Represented by: ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Deferred tax assets ​ 274 ​ 177 Deferred tax liabilities ​ (9) ​ (36) Net position at 31 December ​ 265 ​ 141 ​ ​ The deferred tax asset of $302 m (2022: $278 m) relating to inventory, provisions and other differences comprises deferred tax relating to inventory of $125 m (2022: $117 m), provisions and other short-term temporary differences of $169 m (2022: $153 m) and bad debt provisions of $8 m (2022: $8 m). The Group has gross unused trading and non-trading tax losses of $1,145 m (2022: $839 m), gross unused research and development tax credits of $16 m (2022: $24 m) and gross unused capital losses of $102 m (2022: $97 m), available for offset against future profits. $262 m of losses will expire within 10 years from the balance sheet date if not utilised. A deferred tax asset of $198 m (2022: $140 m) has been recognised in respect of $885 m (2022: $541 m) of the trading and non-trading tax losses and $16 m (2022: $12 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 time frame, 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, 2023
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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ ​ ​ $ million $ million $ million Earnings ​ ​ ​ ​ ​ ​ ​ ​ Attributable profit for the year ​ ​ ​ 263 ​ 223 ​ 524 Adjusted attributable profit (see below) ​ ​ ​ 722 ​ 713 ​ 710 ​ Attributable profit is reconciled to adjusted attributable profit as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ Notes $ million $ million $ million Attributable profit for the year ​ ​ ​ 263 ​ 223 ​ 524 Acquisition and disposal-related items 1 ​ ​ ​ 78 ​ 162 ​ (73) Restructuring and rationalisation costs 2 ​ 3 ​ 223 ​ 168 ​ 113 Amortisation and impairment of acquisition intangibles 3 ​ 9 ​ 207 ​ 205 ​ 172 Legal and other 4 ​ ​ ​ 64 ​ 82 ​ 59 Taxation on excluded items ​ 5 ​ (113) ​ (127) ​ (85) Adjusted attributable profit ​ ​ ​ 722 ​ 713 ​ 710 ​ 1 Acquisition and disposal-related items includes a $60 m charge within operating profit (2022: $ 4 m charge, 2021: $7 m charge) and a $18 m charge within share of result of associates (2022: $158 m charge, 2021: $ 5 m credit) and a $ nil gain on disposal of interest in associate (2022: $ nil , 2021: $ 75 m gain). See details in Note 11. 2 Restructuring and rationalisation costs include a $220 m charge within operating profit (2022: $167 m, 2021: $113 m) and a $3 m charge within share of result of associates (2022: $ 1 m, 2021: $ nil ). 3 In 2023, amortisation and impairment of acquisition intangibles includes a $207 m charge within operating profit (2022: $205 m charge within operating profit, 2021: $172 m charge within operating profit). 4 Legal and other in 2023 includes $58 m charge (2022: $75 m charge, 2021: $51 m charge) within operating profit (refer to Note 2.6) and a $6 m charge (2022: $7 m charge, 2021: $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. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 Number of shares (millions) ​ ​ ​ ​ ​ ​ ​ ​ Basic weighted number of shares ​ ​ ​ 871 ​ 872 ​ 877 Dilutive impact of share incentive schemes outstanding ​ ​ ​ 2 ​ 1 ​ 1 Diluted weighted average number of shares ​ ​ ​ 873 ​ 873 ​ 878 ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per ordinary share ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ ​ 30.2¢ ​ 25.5¢ ​ 59.8¢ Diluted ​ ​ ​ 30.1¢ ​ 25.5¢ ​ 59.7¢ Adjusted: ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ ​ 82.8¢ ​ 81.8¢ ​ 80.9¢ Diluted ​ ​ ​ 82.7¢ ​ 81.6¢ ​ 80.8¢ ​

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2023
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 2022 ​ ​ 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 Exchange adjustment ​ ​ 8 ​ 10 ​ 21 ​ 4 ​ 43 Additions ​ ​ 69 ​ 211 ​ 29 ​ 70 ​ 379 Disposals ​ ​ ​ (39) ​ (88) ​ (51) ​ (2) ​ (180) Impairment ​ ​ ​ – ​ – ​ – ​ (5) ​ (5) Reclassification ​ ​ ​ 4 ​ – ​ – ​ – ​ 4 Transfers ​ ​ 27 ​ 1 ​ 102 ​ (153) ​ (23) At 31 December 2023 ​ ​ 795 ​ 1,844 ​ 1,433 ​ 170 ​ 4,242 Depreciation and impairment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 1 January 2022 ​ ​ 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 Exchange adjustment ​ ​ 4 ​ 8 ​ 15 ​ – ​ 27 Charge for the year ​ ​ 63 ​ 154 ​ 89 ​ – ​ 306 Impairment ​ ​ 21 ​ 1 ​ 4 ​ – ​ 26 Disposals ​ ​ ​ (34) ​ (76) ​ (50) ​ – ​ (160) Reclassification ​ ​ ​ 4 ​ – ​ – ​ – ​ 4 Transfers ​ ​ – ​ (1) ​ 1 ​ – ​ – At 31 December 2023 ​ ​ 342 ​ 1,452 ​ 978 ​ – ​ 2,772 Net book amounts ​ ​ ​ ​ ​ ​ At 31 December 2023 ​ ​ ​ 453 ​ 392 ​ 455 ​ 170 ​ 1,470 At 31 December 2022 ​ ​ 442 ​ 344 ​ 413 ​ 256 ​ 1,455 ​ Land and buildings includes land with a cost of $37m (2022: $22m) that is not subject to depreciation. Transfers from assets in course of construction includes $23m (2022: $nil) of software. Assets under construction in 2023 reflect that the Group is undergoing investment in its manufacturing facilities including expanding facilities in 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 $12m (2022: $20m). The amount of borrowing costs capitalised in 2023 and 2022 was minimal. Information about the Group’s right-of-use assets is outlined below: ​ ​ ​ ​ ​ ​ ​ ​ Land and buildings ​ Plant and equipment 2023 $ million $ million Additions ​ 45 ​ 11 Depreciation charge in the year ​ 42 ​ 12 Net book value at 31 December ​ 157 ​ 28 ​

GOODWILL

GOODWILL	12 Months Ended
	Dec. 31, 2023
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 operating 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. When an acquired business included within a CGU ceases to operate permanently, then the acquired business no longer forms part of the CGU and is therefore tested for impairment on a standalone basis. The portion of goodwill allocated to this acquired business is measured based on its relative value within the CGU, unless another method is considered more appropriate. 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. When the composition of CGUs changed, goodwill would be allocated using a relative value approach at the date of the reorganisation similar to that used when an operation within a CGU is disposed of or a method that could provide a better allocation of goodwill to the reorganised units. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ Notes $ million $ million Cost and net book value ​ ​ ​ ​ At 1 January ​ ​ ​ 3,031 ​ 2,989 Exchange adjustment ​ ​ ​ 45 ​ (42) Impairment ​ ​ ​ (84) ​ – Acquisitions ​ 21 ​ – ​ 84 At 31 December ​ ​ ​ 2,992 ​ 3,031 Management has identified five CGUs in applying the provisions of IAS 36 Impairment of Assets In 2023, ENT was identified as a separate operating segment following change in the Group’s management structure. Therefore, ENT was identified as a new CGU for goodwill impairment reviews. 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. During 2023, management evaluated the commercial viability of Engage products and concluded that they should be discontinued. The goodwill related to Engage of $84m, previously included in the Orthopaedics CGU, was fully impaired. Goodwill is allocated to the Group’s CGUs as follows: ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Orthopaedics ​ 915 ​ 953 Sports Medicine 1 ​ 1,154 ​ 1,455 ENT 1 ​ 287 ​ – Advanced Wound Management ​ 636 ​ 623 ​ ​ 2,992 ​ 3,031 ​ 1 In 2022, Sports Medicine and ENT was combined CGU whereas ENT is identified as a separate CGU in 2023. Impairment reviews were performed as of September 2023 and September 2022 by comparing the recoverable amount of each CGU with its carrying amount, including goodwill. These were reviewed during December, taking into account any significant events that occurred between September and December. ​ Group financial statements continued Notes to the Group accounts continued 8 Goodwill continued The current challenging economic environment, including inflation, was considered in the goodwill impairment reviews. Additionally, severe downside sensitivity analyses have been undertaken on the base case scenario. Although the headroom for the Orthopaedics CGU has increased it is still considered sensitive to a reasonably possible change in assumptions, no impairment was identified as a result of the impairment reviews and sensitivity analyses undertaken. 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. Our determination of the discount rates is based on Group’s weighted average cost of capital (WACC) which includes a risk-free rate, based on market participant’s cost of equity, an equity risk premium specifically adjusted to the medical technology industry and after-tax cost of debt and reflects the risks inherent in the cash flows adjusted for CGU specific risk. 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 increased from $0.6bn in the prior year to $1.2bn in the current year, primarily due to higher revenue growth and expected margin improvement thereon. 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 (2022: five-year period) in calculating the terminal value 8.2 Sports Medicine CGU The cash flows used in the value-in-use calculation for the Sports Medicine CGU reflects growth rates and cash flows consistent with management’s strategy to maintain growth in Sports Medicine. The weighted average growth rate used to extrapolate the cash flows beyond the five-year period (2022: five-year period) in calculating the terminal value 8.3 ENT CGU The cash flow used in the value-in-use calculation for the ENT CGU reflects growth rates and cash flows consistent with management’s strategy. The weighted average growth rate used to extrapolate the cash flows beyond the five-year period in calculating the terminal value is 2.0% . The pre-tax discount rate used in the ENT CGU value-in-use calculation reflects the geographical mix of the revenues and is 10.8% . 8.4 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, 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 (2022: five-year period) in calculating the terminal value ​ 8.5 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. Management do not believe a reasonably possible change in assumptions used for the Orthopeadics CGU value-in-use, other than trading profit margin, could result in a material impairment. Management’s consideration of this sensitivity is set out below: 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 terminal period and year 5 trading profit margin would have to decrease by more than 550 basis points.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2023
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 2022 ​ ​ ​ 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 Exchange adjustment ​ ​ ​ 4 ​ 36 ​ (1) ​ 5 ​ 4 ​ 48 Additions ​ ​ ​ – ​ 2 ​ 2 ​ 36 ​ 64 ​ 104 Disposals ​ ​ ​ (1) ​ (7) ​ – ​ (4) ​ – ​ (12) Transfers ​ ​ ​ (3) ​ 10 ​ – ​ 2 ​ 14 ​ 23 At 31 December 2023 ​ ​ ​ 582 ​ 2,273 ​ 236 ​ 547 ​ 178 ​ 3,816 Amortisation and impairment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 1 January 2022 ​ ​ ​ 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 Exchange adjustment ​ ​ ​ 2 ​ 36 ​ – ​ 4 ​ – ​ 42 Charge for the year ​ ​ ​ 46 ​ 121 ​ 16 ​ 38 ​ – ​ 221 Impairment ​ ​ ​ – ​ 37 ​ – ​ – ​ – ​ 37 Disposals ​ ​ ​ – ​ (7) ​ – ​ (4) ​ – ​ (11) At 31 December 2023 ​ ​ ​ 276 ​ 1,801 ​ 176 ​ 453 ​ – ​ 2,706 Net book amounts ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 31 December 2023 ​ ​ ​ 306 ​ 472 ​ 60 ​ 94 ​ 178 ​ 1,110 At 31 December 2022 ​ ​ ​ 354 ​ 618 ​ 75 ​ 93 ​ 96 ​ 1,236 ​ ​ Transfers into software and assets in course of construction includes $23m (2022: $nil) of software transferred from property, plant and equipment. Group capital expenditure relating to software contracted but not provided for amounted to $7m (2022: $7m). Amortisation and impairment of acquisition intangibles is set out below: ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Technology ​ 46 ​ 51 Product-related ​ 150 ​ 142 Customer and distribution-related ​ 11 ​ 12 Total ​ 207 ​ 205 ​ In 2023, the Group impaired $37m of Engage’s intangible assets as a result of the voluntary product discontinuation. In 2022, $32m of impairment charges were booked in relation to immaterial product assets in acquisition intangibles. ​ Management have assessed the acquisition intangible assets held by the Group to identify any indicators of impairment as of September 2023. 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. 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 ​ 257 ​ 10 years Intangibles acquired as part of the Osiris acquisition ​ 171 ​ 1 – 5 years Intangibles acquired as part of the Healthpoint acquisition ​ 143 ​ 4 years ​

INVESTMENTS

INVESTMENTS	12 Months Ended
	Dec. 31, 2023
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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ ​ ​ $ million $ million At 1 January ​ ​ ​ 12 ​ 10 Additions ​ ​ ​ – ​ 2 Fair value remeasurement ​ ​ ​ (4) ​ – At 31 December ​ ​ ​ 8 ​ 12 ​

INVESTMENTS IN ASSOCIATES

INVESTMENTS IN ASSOCIATES	12 Months Ended
	Dec. 31, 2023
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 2023, the Group holds 27.96% (2022: 28.3% ) of Bioventus Inc. (Bioventus) which is the holding company of Bioventus LLC. The decrease in the Group’s holding between 2023 and 2022 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 $30m (2022: $141m loss) which comprises the Group’s share of loss of $30m (2022: $32m loss), and an impairment loss of $nil (2022: $109m). The balance sheet carrying value relating to Bioventus is $16m (2022: $46m). The Group’s ability to recover the value of its investment is dependent upon the ongoing clinical and commercial success of these products. The Group did not identify any impairment indicator for Bioventus as part of 2023 impairment assessment. In 2022, Bioventus’ trading share price decreased significantly and the company disclosed a substantial doubt about their ability to continue as a going concern. Given these impairment indicators, management recorded an impairment loss of $109m in 2022. ​ 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: ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Balance sheet ​ 16 ​ 46 Income statement loss ​ (30) ​ (32) Impairment of interest in associate ​ – ​ (109) ​ 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 2023 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 2023 is presented for a nine-month period, with adjustments made for any significant transactions or events which occur in the fourth quarter. ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 ​ $ million $ million Summarised statement of comprehensive income ​ ​ Revenue ​ 377 ​ 386 Attributable loss for the year ​ (152) ​ (129) Group adjustments 1 ​ 46 ​ 17 Total comprehensive loss ​ (106) ​ (112) Group share of loss for the year at 27.96% (2022: 28.3%) ​ (30) ​ (32) ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 ​ $ million $ million Summarised balance sheet ​ ​ Non-current assets ​ 562 ​ 1,128 Current assets ​ 249 ​ 271 Non-current liabilities ​ (424) ​ (730) Current liabilities ​ (160) ​ (288) Net assets ​ 227 ​ 381 Net equity attributable to owners ​ 227 ​ 381 Group’s share of net assets at 27.96% (2022: 28.3%) ​ 64 ​ 108 Group adjustments 1,2 ​ (48) ​ 47 Impairment loss ​ – ​ (109) Group’s carrying amount of investment at 27.96% (2022: 28.3%) ​ 16 ​ 46 1 Group adjustments include adjustments to align with Group policy. 2 In 2023, Group adjustments also include impairment loss of share in associates of $109 m from 2022. The investment in Bioventus had a fair value less costs of disposal of $93m as at 31 December 2023. During the year, the Group received a $nil (2022: $1m) cash distribution from its associates. At 31 December 2023, the Group held equity investments in two other associates (2022: two ) with a carrying value of $ nil (2022: $ nil ).

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2023
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. ​ ​ ​ ​ ​ ​ ​ 2023 2022 ​ $ million $ million Raw materials and consumables ​ 503 ​ 474 Work-in-progress ​ 60 ​ 78 Finished goods and goods for resale ​ 1,832 ​ 1,653 ​ ​ 2,395 ​ 2,205 ​ Management have not changed their policy for calculating the provision since 31 December 2022, 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 $504 m at 31 December 2022 to $544 m at 31 December 2023. The provision, however, increased as a result of foreign exchange movements of $3 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 $544 m at 31 December 2023 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 $1,459m (2022: $1,302m, 2021: $1,407m). In addition, $106m was recognised as an expense within cost of goods sold resulting from inventory write-offs and provision increases (2022: $117m, 2021: $105m). In 2023, management wrote off $21m related to Engage’s inventory as a result of the voluntary product discontinuation. 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, 2023
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). ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Trade and other receivables due within one year ​ ​ ​ ​ Trade receivables ​ 1,104 ​ 1,076 Less: loss allowance ​ (45) ​ (49) Trade receivables – net ​ 1,059 ​ 1,027 Derivatives – forward foreign exchange, currency swaps and interest rate contracts ​ 27 ​ 47 Other receivables ​ 122 ​ 114 Prepayments ​ 92 ​ 76 ​ ​ 1,300 ​ 1,264 Due after more than one year ​ ​ ​ ​ Other non-current assets ​ 18 ​ 12 ​ ​ 1,318 ​ 1,276 ​ Other non-current assets primarily relate to long-term prepayments and in 2023 interest rate contracts. 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 $3 m (2022: $4 m, 2021: $3 m). The following table provides information about the ageing of and expected credit losses for trade receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 Weighted average loss rate ​ 2023 Loss allowance ​ 2023 Gross carrying amount ​ 2022 Gross carrying amount ​ % $ million $ million $ million Not past due ​ -0.1% ​ (1) ​ 788 ​ 610 Past due not more than 3 months ​ -0.6% ​ (1) ​ 180 ​ 228 Past due more than 3 months ​ -3.9% ​ (2) ​ 51 ​ 97 Past due more than 6 months ​ -48.2% ​ (41) ​ 85 ​ 141 ​ ​ ​ ​ (45) ​ 1,104 ​ 1,076 Loss allowance ​ ​ ​ ​ ​ (45) ​ (49) Trade receivables – net ​ ​ ​ ​ ​ 1,059 ​ 1,027 ​ ​ The Group’s expected credit loss accounting policy includes guidance on how the expected credit loss percentages should be determined; it does not include present 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: ​ ​ ​ ​ ​ ​ ​ 2023 2022 ​ $ million $ million At 1 January 49 57 Exchange adjustment 1 (3) Net receivables provided during the year 3 4 Utilisation of provision (8) (9) At 31 December 45 49 ​ Trade receivables include amounts denominated in the following major currencies: ​ ​ ​ ​ ​ ​ ​ 2023 2022 ​ $ million $ million US Dollar ​ 506 465 Sterling ​ 39 37 Euro ​ 224 215 Other ​ 290 310 Trade receivables – net ​ 1,059 1,027 ​

TRADE AND OTHER PAYABLES

TRADE AND OTHER PAYABLES	12 Months Ended
	Dec. 31, 2023
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES	14 Trade and other payables ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Trade and other payables due within one year ​ ​ Trade and other payables ​ 1,016 ​ 1,029 Derivatives – forward foreign exchange, currency swaps and interest rate contracts ​ 28 ​ 43 Acquisition consideration ​ 11 ​ 26 ​ ​ 1,055 ​ 1,098 Other payables due after one year ​ ​ Acquisition consideration ​ 25 ​ 66 Derivatives – forward foreign exchange, currency swaps and interest rate contracts ​ – ​ 13 Other payables ​ 10 ​ 11 ​ ​ 35 ​ 90 ​ The acquisition consideration includes $32m (2022: $78m) contingent upon future events. The acquisition consideration due after more than one year is expected to be payable as follows: $9 m in 2025, $2 m in 2026 and $14 m in 2027 (2022: $29 m in 2024, $35 m in 2025, $2 m in 2026).

CASH AND BORROWINGS

CASH AND BORROWINGS	12 Months Ended
	Dec. 31, 2023
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. ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Bank overdrafts, borrowings and loans due within one year ​ 710 ​ 111 Corporate bond ​ 1,550 ​ 1,510 Private placement notes ​ 625 ​ 1,055 Borrowings ​ 2,885 ​ 2,676 Cash at bank ​ (302) ​ (350) Credit balance on derivatives – currency swaps ​ 1 ​ – (Debit)/credit balance on derivatives – interest rate swaps ​ (7) ​ 13 Net debt ​ 2,577 ​ 2,339 Non-current lease liabilities ​ 144 ​ 147 Current lease liabilities ​ 55 ​ 49 Net debt including lease liabilities ​ 2,776 ​ 2,535 ​ 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 2023 ​ ​ ​ ​ ​ ​ ​ Bank loans ​ 303 ​ – ​ – ​ – ​ – ​ – ​ 303 Bank overdrafts ​ 2 ​ – ​ – ​ – ​ – ​ – ​ 2 Corporate bond ​ – ​ – ​ – ​ – ​ – ​ 1,550 ​ 1,550 Private placement notes ​ 405 ​ – ​ 75 ​ 140 ​ 60 ​ 350 ​ 1,030 Lease liabilities 1 ​ 55 ​ 44 ​ 33 ​ 25 ​ 18 ​ 35 ​ 210 ​ ​ 765 ​ 44 ​ 108 ​ 165 ​ 78 ​ 1,935 ​ 3,095 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 ​ 1 The lease liabilities presented above of $210 m (2022: $210 m) are on an undiscounted basis. The lease liabilities on a discounted basis, as outlined above, are $199 m (2022: $196 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 $3.6bn (2022: $3.7bn). 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 2023, the Group repaid $130m 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 Term Secured Overnight Financing Rate (Term 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 2023, 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 refinanced its $1bn Revolving Credit Facility (“RCF”) in Q4 2023. This extends the facility maturity to 2028, with options to extend the maturity to 2030. The Group’s committed facilities at 31 December 2023 are: ​ ​ ​ ​ Facility Date due $100 million 3.89% Senior Notes ​ January 2024 $305 million 3.36% Senior Notes ​ November 2024 $75 million 3.99% Senior Notes ​ January 2026 $140 million 2.83% Senior Notes ​ June 2027 $60 million 2.90% Senior Notes ​ June 2028 $1.0 billion syndicated revolving credit facility ​ October 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 2023 ​ ​ ​ ​ Non-derivative financial liabilities: ​ ​ ​ ​ Bank overdrafts and loans 305 ​ – ​ – ​ – ​ 305 Corporate bond 53 ​ 53 ​ 158 ​ 1,614 ​ 1,878 Trade and other payables 1,016 ​ – ​ – ​ – ​ 1,016 Private placement notes 434 ​ 19 ​ 317 ​ 373 ​ 1,143 Acquisition consideration 11 ​ 9 ​ 2 ​ 15 ​ 37 Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency swaps/forward foreign exchange contracts – outflow 2,913 ​ – ​ – ​ – ​ 2,913 Currency swaps/forward foreign exchange contracts – inflow (2,912) ​ – ​ – ​ – ​ (2,912) ​ 1,820 ​ 81 ​ 477 ​ 2,002 ​ 4,380 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 ​ 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 2023, the Group held $300m (2022: $344m, 2021: $1,285m) in cash net of bank overdrafts. The Group had committed facilities available of $3.6bn at 31 December 2023 of which $2.9bn 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 2024, 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 $2.5bn at the beginning of 2023 to $2.8bn at the end of 2023, representing an overall increase of $0.3bn.

FINANCIAL INSTRUMENTS AND RISK

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT	12 Months Ended
	Dec. 31, 2023
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 2023, the Group had contracted to exchange within one year the equivalent of $2.4 bn (2022: $2.2 bn). Based on the Group’s net borrowings as at 31 December 2023, if the US Dollar were to weaken against all currencies by 10% , the Group’s net borrowings would increase by $37 m (2022: $41 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 2023 would have been $67m lower (2022: $50m 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 2023 would have been $38m higher (2022: $35m 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 2023 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 2023, if interest rates were to increase by 100 basis points in all currencies, then the annual net interest charge would increase by $5m (2022: $4m). 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 2023 was $27m (2022: $47m), 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 2023 was $302m (2022: $350m). 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 2023 ​ ​ ​ ​ ​ ​ ​ Foreign currency risk ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Forward exchange contracts 1 ​ 2,913 ​ 27 ​ (28) ​ (3) ​ – ​ (25) ​ Cash flow hedges Interest rate risk ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swaps 2 ​ (500) ​ 7 ​ – ​ – ​ – ​ – ​ Fair value hedge 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 1 Presented in Trade and other receivables and Trade and other payables on the Balance Sheet. The nominal amount is in $ million. 2 Presented in Non-current other receivables in 2023 and in Non-current other payables in 2022 on the Balance Sheet. The nominal amount is in € million. 16.4 Net investment hedge Part of the Group’s net investment in its Euro subsidiaries is hedged by €500 m ( $552 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 2023 ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ (2,324) ​ (329) ​ – ​ (2,653) ​ (628) ​ (2,025) ​ 2.7 ​ 5.1 Other ​ (561) ​ (219) ​ – ​ (780) ​ (224) ​ (556) ​ ​ ​ ​ Total interest bearing liabilities ​ (2,885) ​ (548) ​ – ​ (3,433) ​ (852) ​ (2,581) ​ ​ 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) ​ ​ ​ In 2023, the Group also had liabilities due for deferred and contingent acquisition consideration (denominated in US Dollars, Swiss Francs and Euros) totalling $36m (2022: $92m, 2021: $91m) 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 Term SOFR. The weighted average interest rate on floating rate borrowings as at 31 December 2023 was almost 6% (2022: over than 3%). 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 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ 98 ​ 217 ​ – ​ 315 ​ 315 ​ – Other ​ 204 ​ 331 ​ 7 ​ 542 ​ 542 ​ – Total interest bearing assets ​ 302 ​ 548 ​ 7 ​ 857 ​ 857 ​ – At 31 December 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ 207 ​ 205 ​ – ​ 412 ​ 412 ​ – Other ​ 143 ​ 164 ​ – ​ 307 ​ 307 ​ – Total interest bearing assets ​ 350 ​ 369 ​ – ​ 719 ​ 719 ​ – ​ 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 2022. 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 2023 and 2022 . 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 2023 $ million $ million $ million $ million $ million $ million $ million $ million $ million Financial assets measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ Forward foreign exchange contracts ​ 25 ​ – ​ – ​ – ​ – ​ 25 ​ 25 ​ – ​ 25 Investments ​ – ​ – ​ – ​ 8 ​ – ​ 8 ​ – ​ 8 ​ 8 Contingent consideration receivable ​ – ​ – ​ – ​ 18 ​ – ​ 18 ​ – ​ 18 ​ 18 Interest rate swaps ​ 7 ​ – ​ – ​ – ​ – ​ 7 ​ 7 ​ – ​ 7 Currency swaps ​ – ​ – ​ 2 ​ – ​ – ​ 2 ​ 2 ​ – ​ 2 ​ ​ 32 ​ – ​ 2 ​ 26 ​ – ​ 60 ​ ​ ​ ​ ​ Financial liabilities measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition consideration ​ – ​ – ​ – ​ (32) ​ – ​ (32) ​ – ​ (32) ​ (32) Forward foreign exchange contracts ​ (25) ​ – ​ – ​ – ​ – ​ (25) ​ (25) ​ – ​ (25) Currency swaps ​ – ​ – ​ (3) ​ – ​ – ​ (3) ​ (3) ​ – ​ (3) ​ ​ (25) ​ – ​ (3) ​ (32) ​ – ​ (60) ​ ​ ​ Financial assets not measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade and other receivables ​ 1,163 ​ – ​ – ​ – ​ – ​ 1,163 ​ ​ ​ Cash at bank ​ – ​ 302 ​ – ​ – ​ – ​ 302 ​ ​ ​ ​ ​ 1,163 ​ 302 ​ – ​ – ​ – ​ 1,465 ​ ​ ​ Financial liabilities not measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition consideration ​ – ​ – ​ – ​ – ​ (4) ​ (4) ​ ​ ​ Bank overdrafts ​ – ​ – ​ – ​ – ​ (2) ​ (2) ​ ​ ​ Bank loans ​ – ​ – ​ – ​ – ​ (303) ​ (303) ​ ​ ​ ​ ​ ​ Corporate bond not in a hedge relationship ​ – ​ – ​ – ​ – ​ (995) ​ (995) ​ ​ ​ ​ ​ ​ Corporate bond in a hedge relationship ​ – ​ – ​ – ​ – ​ (555) ​ (555) ​ ​ ​ Private placement debt not in a hedge relationship ​ – ​ – ​ – ​ – ​ (1,030) ​ (1,030) ​ ​ ​ ​ ​ ​ Trade and other payables ​ – ​ – ​ – ​ – ​ (1,026) ​ (1,026) ​ ​ ​ ​ ​ – ​ – ​ – ​ – ​ (3,915) ​ (3,915) ​ ​ ​ ​ At 31 December 2023, the book value and market value of the USD corporate bond were $995m and $826m respectively (2022: $994m and $783m), the book value and market value of the EUR Corporate bond were $555m and $585m respectively (2022: $516m and $531m). The book value and fair value of the private placement debt were $1,030m and $959m respectively (2022: $1,160m and $987m). ​ Group financial statements continued Notes to the Group accounts continued 16 Financial instruments and risk management continued During the year ended 31 December 2023, acquisition consideration decreased by $56 m due to $21 m of payments for acquisitions made in prior years, and $35 m of remeasurement and discount unwind. The fair value of contingent consideration is estimated using a discounted cash flow model. The valuation model considers the present value of expected payment, discounted using a risk-adjusted 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 consideration is classified as Level 3 within the fair value hierarchy. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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) ​ ​ ​ ​ 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 2023 and 2022 for financial instruments measured using Level 3 valuation methods are presented below: ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Investments ​ ​ ​ ​ At 1 January ​ 12 ​ 10 Additions ​ – ​ 2 Fair value remeasurement ​ (4) ​ – At 31 December ​ 8 ​ 12 ​ ​ ​ ​ ​ Contingent consideration receivable ​ ​ ​ ​ At 1 January ​ 18 ​ 20 Receipts ​ – ​ (2) At 31 December ​ 18 ​ 18 ​ ​ ​ ​ ​ Acquisition consideration liability ​ ​ ​ ​ At 1 January ​ (78) ​ (84) Arising on acquisitions ​ – ​ (32) Payments ​ 13 ​ 20 Remeasurements ​ 33 ​ 19 Discount unwind ​ – ​ (1) At 31 December ​ (32) ​ (78) ​

PROVISIONS AND CONTINGENCIES

PROVISIONS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2023
PROVISIONS AND CONTINGENCIES
PROVISIONS AND CONTINGENCIES	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 restructuring and 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. ​ Group financial statements continued Notes to the Group accounts continued 17 Provisions and contingencies continued 17.1 Provisions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring ​ ​ ​ ​ ​ ​ ​ and ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ rationalisation ​ ​ ​ Legal and other ​ ​ ​ ​ ​ ​ provisions ​ Metal-on-metal ​ provisions ​ Total ​ ​ $ million $ million $ million $ million At 1 January 2022 ​ ​ ​ 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 Charge to income statement ​ ​ ​ 220 ​ – ​ 9 ​ 229 Release to income statement ​ ​ ​ – ​ (8) ​ (19) ​ (27) Unwinding of discount ​ ​ ​ – ​ 5 ​ – ​ 5 Utilised ​ ​ ​ (160) ​ (87) ​ (7) ​ (254) Exchange adjustment ​ ​ ​ 1 ​ – ​ – ​ 1 At 31 December 2023 ​ ​ ​ 91 ​ 149 ​ 41 ​ 281 Provisions – due within one year ​ ​ ​ 91 ​ 111 ​ 31 ​ 233 Provisions – due after one year ​ ​ ​ – ​ 38 ​ 10 ​ 48 At 31 December 2023 ​ ​ ​ 91 ​ 149 ​ 41 ​ 281 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 ​ The principal elements within restructuring and 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 $149 m (2022: $239 m) relating to the present value at 31 December 2023 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 less than 55 th and more than 90 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 97 th percentile a charge similar to that incurred in 2019 ( $121 m) would be required in 2024 or thereafter. The provision does not include any possible further insurance recoveries on these claims or legal fees associated with defending claims. 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 2023 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 2023, approximately 276 such claims were pending with the Group around the world. This includes approximately 48 cases associated with a Multi-district Litigation (MDL) pending in Baltimore, Maryland due to a 5 April 2017 court order consolidating Smith+Nephew Birmingham Hip ◊ ◊ ◊ Through the end of 2023, 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. 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 petitioned the United States Supreme Court to review the US Patent & Trademark Office’s denial of Arthrex’s rehearing request. On 22 March 2023, the US Supreme Court denied Arthrex’s cert petition and on 7 June 2023, the US Patent & Trademark Office issued an IPR certificate officially cancelling all the claims of Arthrex’s patent. 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, 2023
RETIREMENT BENEFIT OBLIGATIONS
RETIREMENT BENEFIT OBLIGATIONS	Group financial statements continued Notes to the Group accounts continued 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. ​ The Group’s retirement benefit assets/(obligations) comprise: ​ ​ ​ ​ ​ ​ ​ 2023 2022 ​ $ million $ million Funded plans: ​ ​ UK Plan ​ 61 ​ 114 US Plan ​ 8 ​ 24 Other plans ​ (13) ​ (5) ​ ​ 56 ​ 133 Unfunded plans: ​ ​ Other plans ​ (65) ​ (52) Retirement healthcare ​ (10) ​ (10) ​ ​ (19) ​ 71 Amount recognised on the balance sheet – liability ​ (88) ​ (70) Amount recognised on the balance sheet – asset ​ 69 ​ 141 ​ The Group sponsors defined benefit pension plans for its employees or former employees in 13 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 benefits, payable typically either as a lump sum or annuity, or a mixture of the two. Most plans are now closed to future accrual. The level of entitlement is typically dependent on the salary and years of service of the employee, in line with local practices. Pension benefits are generally limited to 66.7% of final salary in key markets. ​ 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. In June 2023, the Trustee with the support of the Company concluded a full buy-in of the Main Fund with Rothesay Life. The total transaction value was £260 m. The transaction completed the Main Fund and Executive Scheme de-risking journey which included partial buy-in transactions in 2013, 2017, and 2022, whereby the liabilities of the scheme are now covered by a bulk annuity insurance policy, that operate as investment assets, insuring all liabilities to pay all future defined benefit pensions for the remaining members of the Fund. The bulk annuity policy matches the Trust’s cash flow benefit obligations to its members, removing longevity and other demographic risks as well as investment, interest rate and inflation risks. When the full UK Fund buy-in was concluded in June 2023 no decision on a future buy-out had been reached by the Company. Whilst the contract between the Life Insurer (Rothesay) and the Trustee allows for a buy-out, a number of steps would need to be concluded before this could be achieved. Not least, the conclusion of the due diligence process with the Life Insurer which is expected to continue into the second half of 2024. Thereafter, the Trustee and the Company could not act unilaterally to move to a buy-out and the UK Fund governance structure lays out a number of steps the Company would be required to conclude for a buy-out decision. The transaction resulted in a $58 m loss being recognised in OCI with $ nil cash impact. 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. (SNI) would begin the termination process for the US Plan. In December 2023, Fidelity & Guaranty Life was selected to take over responsibility for the remaining US Pension Plan obligation and administration upon termination. A premium amount of $245m was paid in cash by the US Plan on 4 January 2024. Certain active employees and terminated vested participants elected to receive a lump sum in exchange for their plan benefit of $80m. This resulted in $4m settlement costs which were recognised in 2023, representing the difference between defined benefit obligation (DBO) and the lump sums paid to members in December 2023. Following this transaction, members move to having a direct relationship with Fidelity & Guaranty Life with SNI no longer retaining any obligation for the settlement of accrued member benefits following a short administrative transition and due diligence process. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ ​ ​ ​ ​ 2022 ​ Obligation Asset Total Obligation ​ Asset ​ Total ​ $ million $ million $ million $ million $ million $ million Amounts recognised on the balance sheet at beginning of the period (984) 1,055 71 (1,582) 1,637 55 Income statement expense: ​ ​ ​ ​ Current service cost (6) ​ – ​ (6) (9) ​ – (9) Settlements ​ 75 ​ (79) ​ (4) ​ 4 ​ (4) ​ – Interest (expense)/income (45) ​ 49 ​ 4 (29) ​ 30 1 Administration costs and taxes (5) ​ – ​ (5) (3) ​ – (3) Costs recognised in income statement 19 (30) (11) (37) 26 (11) Remeasurements: Actuarial (loss)/gain due to liability experience (14) ​ – ​ (14) (43) ​ – (43) Actuarial gain due to financial assumptions change (25) ​ – ​ (25) 503 ​ – 503 Actuarial gain due to demographic assumptions 14 ​ – ​ 14 1 ​ – 1 Return on plan assets (less)/greater than discount rate – ​ (64) ​ (64) – ​ (431) (431) Remeasurements recognised in OCI (25) (64) (89) 461 (431) 30 Cash: Employer contributions – ​ 7 ​ 7 – ​ 6 6 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 67 ​ (69) ​ (2) 81 ​ (83) (2) Net cash 66 (59) 7 80 (74) 6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange movements (37) ​ 40 ​ 3 94 ​ (103) (9) Amount recognised on the balance sheet (961) 942 (19) (984) 1,055 71 Amount recognised on the balance sheet – liability (229) ​ 141 ​ (88) (194) ​ 124 (70) Amount recognised on the balance sheet – asset (732) ​ 801 ​ 69 (790) ​ 931 141 Represented by: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ ​ ​ ​ ​ 2022 ​ Obligation Asset Total Obligation Asset Total ​ $ million $ million $ million $ million $ million $ million UK Plan ​ (457) ​ 518 ​ 61 ​ (438) ​ 552 ​ 114 US Plan ​ (259) ​ 267 ​ 8 ​ (336) ​ 360 ​ 24 Other Plans ​ (245) ​ 157 ​ (88) ​ (210) ​ 143 ​ (67) Total ​ (961) ​ 942 ​ (19) ​ (984) ​ 1,055 ​ 71 ​ The actuarial loss on obligation of $25 m primarily relates to the de crease in discount rates in 2023 compared to 2022 and the actuarial loss from the return on plan assets of $64 m is mainly due to the impact of UK Plan buy-in. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 ​ $ million $ million $ million UK Plan: ​ ​ ​ Assets with a quoted market price: ​ ​ ​ Cash and cash equivalents ​ 61 ​ 2 ​ 4 Equity securities ​ – ​ 3 ​ 84 Other bonds ​ – ​ 30 ​ 50 Short dated credit fund ​ – ​ 81 ​ 126 Liability driven investments ​ – ​ 225 ​ 370 Diversified growth funds ​ – ​ 55 ​ 89 ​ ​ 61 ​ 396 ​ 723 Other assets: ​ ​ ​ Insurance contract ​ 457 ​ 156 ​ 233 Market value of assets ​ 518 ​ 552 ​ 956 US Plan: ​ ​ ​ Assets with a quoted market price: ​ ​ ​ ​ Cash and cash equivalents ​ 267 ​ 120 ​ 6 Equity securities ​ – ​ – ​ 50 Government bonds – fixed interest ​ – ​ 43 ​ 201 Corporate bonds ​ – ​ 197 ​ 246 Market value of assets ​ 267 ​ 360 ​ 503 Other Plans: ​ ​ ​ Assets with a quoted market price: ​ ​ ​ ​ Cash and cash equivalents ​ 7 ​ 7 ​ 5 Equity securities ​ 50 ​ 49 ​ 55 Government bonds – fixed interest ​ 5 ​ 7 ​ 5 Government bonds – index linked ​ – ​ – ​ 4 Corporate and other bonds ​ 10 ​ 10 ​ 11 Insurance contracts ​ 23 ​ 21 ​ 33 Property ​ 28 ​ 22 ​ 23 Other quoted securities ​ 10 ​ 5 ​ 8 ​ ​ 133 ​ 121 ​ 144 Other assets: ​ ​ ​ Insurance contracts ​ 24 ​ 22 ​ 34 Market value of assets ​ 157 ​ 143 ​ 178 Total market value of assets ​ 942 ​ 1,055 ​ 1,637 ​ 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 UK Plan is comprised of annuity policies purchased by the Trustee. The US Plan in 2023 held predominantly matching assets. In 2024, following the scheme termination, the investment risks have been transferred to a US Life Insurer. ​ ​ Group financial statements continued Notes to the Group accounts continued 18 Retirement benefit obligations continued 18.4 Expenses recognised in the income statement The total expense relating to retirement benefits recognised for the year is $95m (2022: $88m, 2021: $93m). Of this cost recognised for the year, $84m (2022: $77m, 2021: $77m) relates to defined contribution plans and $11m (2022: $11m, 2021: $16m) 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 2023 due to be paid over to the Plans (2022: $nil, 2021: $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 2022 2021 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ % per annum % per annum % per annum UK Plan: ​ ​ ​ Discount rate ​ 4.5 ​ 4.8 ​ 1.9 Future salary increases ​ n/a ​ n/a ​ n/a Future pension increases ​ 3.0 ​ 3.3 ​ 3.4 Inflation (RPI) ​ 3.1 ​ 3.3 ​ 3.4 Inflation (CPI) ​ 2.5 ​ 2.3 ​ 2.7 US Plan: ​ ​ ​ ​ ​ ​ Discount rate ​ 5.0 ​ 5.3 ​ 2.7 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 2022 table, which places partial weight on post pandemic experience, and the US uses the PRI-2012 table with MP-2021 scale. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ years years years Life expectancy at age 60 ​ ​ ​ UK Plan: ​ ​ ​ Males ​ 26.9 ​ 27.4 ​ 27.6 Females ​ 29.7 ​ 30.1 ​ 30.1 US Plan: ​ ​ ​ ​ ​ ​ Males ​ 25.0 ​ 24.9 ​ 24.7 Females ​ 27.2 ​ 27.1 ​ 26.8 Life expectancy at age 60 in 20 years’ time ​ ​ ​ UK Plan: ​ ​ ​ Males ​ 28.4 ​ 28.9 ​ 29.1 Females ​ 31.1 ​ 31.5 ​ 31.5 US Plan: ​ ​ ​ ​ ​ ​ Males ​ 25.0 ​ 24.9 ​ 24.6 Females ​ 27.6 ​ 27.6 ​ 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/(decrease) in pension obligation ​ Increase /(decrease) in pension cost $ million +50bps/+1yr -50bps/-1yr +50bps/+1 yr -50bps/-1yr UK Plan: ​ ​ ​ ​ ​ ​ ​ Discount rate (29.0) ​ 33.0 ​ – ​ – Inflation 21.0 ​ (24.0) ​ – ​ – Mortality 18.0 ​ (11.0) ​ – ​ – US Plan: ​ ​ ​ ​ ​ ​ ​ Discount rate (10.0) ​ 11.0 ​ – ​ – Mortality 8.0 ​ (8.0) ​ – ​ – ​ 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. The UK buy-in in June 2023 removed all remaining material pension liability exposure from the balance sheet, hence, eliminating the interest rate risk for the UK Plan. Following the completion of the US buy-out on 4 January 2024, no further interest risk is linked to the valuation of liability for the US Plan as no liability will remain in the Plan. 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. Following the full UK Pension buy-in in 2023, the residual inflation risks associated with the UK Plan have been transferred to the UK Plan’s Life Insurance Partners. 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, following the full buy-in for the UK Plan, the investment risk has been transferred to the UK Plan’s Life Insurer Partners. 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. Following the completion of the US buy-out on 4 January 2024, no further investment risk is linked to the valuation of liability for the US Plan as no liability will remain in the Plan. 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. Following the full buy-in, the UK Plan has entered into insurance contract which covers all of the pensioners’ obligations. Following the completion of the US buy-out on 4 January 2024, there is no further longevity risk linked to the valuation of liability for the US Plan as no liability will remain in the Plan. ​ ​ Group financial statements continued Notes to the Group accounts continued 18 Retirement benefit obligations continued 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 2023 were $nil (2022: $nil, 2021: $7m). This included supplementary payments of $nil (2022: $nil, 2021: $7m). 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 2022 or 2023. In 2023, the Trustees concluded a full buy-in of the UK Defined Benefit Fund. The transaction resulted in a $58 m loss being recognised in OCI with $nil cash impact. Following the conclusion of the UK full buy-in, no further contributions are expected from the sponsor company. ​ US Plan The most recent full actuarial valuation of the US Plan was undertaken as at 1 January 2022. Future accruals to the US Plan ceased as at 31 March 2014. Contributions to the US Plan were $nil (2022: $nil, 2021: $nil) which represented supplementary payments of $nil (2022: $nil, 2021: $nil). There are no planned supplementary contributions to the US Plan for 2024. A premium amount of $245m was paid in cash by the US Plan on 4 January 2024 to settle the annuity purchase agreement with Fidelity & Guaranty Life. $4m of settlement costs were accounted for in 2023 and are linked to the lump sum payments settled in December 2023 of $80m. A $2m credit will be recorded in 2024 linked to the annuity purchase contract concluded with Fidelity & Guaranty Life on 4 January 2024.

EQUITY

EQUITY	12 Months Ended
	Dec. 31, 2023
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 2021 ​ 1,223,591 ​ 245 ​ 50 ​ – ​ 245 At 31 December 2022 ​ 1,223,591 ​ 245 ​ 50 ​ – ​ 245 At 31 December 2023 ​ 1,223,591 ​ 245 ​ 50 ​ – ​ 245 Allotted, issued and fully paid ​ ​ ​ ​ ​ At 1 January 2021 ​ 884,885 ​ 177 ​ 50 ​ – ​ 177 Share options ​ 306 ​ – ​ – ​ – ​ – Shares cancelled ​ – ​ – ​ – ​ – ​ – 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 Share options ​ 23 ​ – ​ – ​ – ​ – At 31 December 2023 ​ 877,673 ​ 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. The Group considers the capital that it manages to be as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Share capital ​ 175 ​ 175 ​ 177 Share premium ​ 615 ​ 615 ​ 614 Capital redemption reserve ​ 20 ​ 20 ​ 18 Treasury shares ​ (94) ​ (118) ​ (120) Retained earnings and other reserves ​ 4,501 ​ 4,567 ​ 4,879 ​ ​ 5,217 ​ 5,259 ​ 5,568 ​ 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 for a cost of $158m and no shares were purchased in 2023. The Smith & Nephew 2004 Employees’ Share Trust (the Trust) was established to hold shares relating to the 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. ​ Group financial statements continued Notes to the Group accounts continued 19 continued The movements in Treasury shares and the Employees’ Share Trust are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employees’ ​ ​ ​ ​ Treasury ​ Share Trust ​ Total ​ $ million $ million $ million At 1 January 2022 ​ 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 Shares transferred from treasury ​ (13) ​ 13 ​ – Shares transferred to Group beneficiaries ​ (1) ​ (23) ​ (24) At 31 December 2023 ​ 53 ​ 41 ​ 94 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employees’ ​ ​ ​ ​ Treasury ​ Share Trust ​ Total ​ ​ Number ​ Number ​ Number ​ ​ of shares ​ of shares ​ of shares ​ million million million At 1 January 2022 ​ 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 Shares transferred from treasury ​ (0.8) ​ 0.8 ​ – Shares transferred to Group beneficiaries ​ (0.1) ​ (1.6) ​ (1.7) At 31 December 2023 ​ 3.4 ​ 2.4 ​ 5.8 ​ 19.3 Dividends ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million The following dividends were declared and paid in the year: ​ ​ ​ Ordinary final of 23.1¢ for 2022 (2021: 23.1¢ , 2020: 23.1¢ ) paid 17 May 2023 ​ 201 ​ 202 ​ 203 Ordinary interim of 14.4¢ for 2023 (2022: 14.4¢ , 2021: 14.4¢ ) paid 1 November 2023 ​ 126 ​ 125 ​ 126 ​ ​ 327 ​ 327 ​ 329 ​ A final dividend for 2023 of 23.1 US cents per ordinary share was proposed by the Board on 22 February 2024 and will be paid, subject to shareholder approval, on 22 May 2024 to shareholders on the Register of Members on 31 March 2024. 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 2023 amounted to $3,333 m.

CASH FLOW STATEMENT

CASH FLOW STATEMENT	12 Months Ended
	Dec. 31, 2023
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 2021 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 At 31 December 2022 350 (6) (154) (2,712) – (13) (2,535) Net cash flow/debt movement (48) ​ 8 ​ (604) ​ 429 ​ (4) ​ – (219) Exchange adjustment – ​ (4) ​ – ​ (39) ​ 3 ​ 20 (20) Corporate bond issuance expense – ​ – ​ – ​ 1 ​ – ​ – ​ 1 IFRS 16 lease liabilities movement ​ – ​ – ​ (6) ​ 3 ​ – ​ – ​ (3) Net debt including lease liabilities at 31 December 2023 302 (2) (764) (2,318) (1) 7 (2,776) ​ Reconciliation of net cash flow to movement in net debt including lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Net cash flow from cash net of overdrafts ​ (40) ​ (930) ​ (459) Settlement of currency swaps ​ (4) ​ (3) ​ 4 Net cash flow from borrowings ​ (175) ​ 396 ​ 267 Change in net debt from net cash flow ​ (219) ​ (537) ​ (188) IFRS 16 lease liabilities ​ (3) ​ 1 ​ 7 Exchange adjustment ​ (20) ​ 47 ​ 59 Corporate bond issuance expense ​ 1 ​ 3 ​ (1) Change in net debt in the year ​ (241) ​ (486) ​ (123) Opening net debt ​ (2,535) ​ (2,049) ​ (1,926) Closing net debt ​ (2,776) ​ (2,535) ​ (2,049) ​ Cash and cash equivalents For the purposes of the Group cash flow statement, cash and cash equivalents at 31 December 2023 comprise cash at bank net of bank overdrafts. ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Cash at bank ​ 302 ​ 350 ​ 1,290 Bank overdrafts ​ (2) ​ (6) ​ (5) Cash and cash equivalents ​ 300 ​ 344 ​ 1,285 ​ ​ Group financial statements continued Notes to the Group accounts continued 20 continued 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 on the management of 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 2023 ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million Debt ​ 151 ​ (326) ​ – ​ 52 ​ (4) ​ – ​ – ​ – ​ (127) Equity – ​ – ​ – ​ – ​ – ​ 327 ​ – ​ – 327 Total 151 (326) – 52 (4) 327 – – 200 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 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 1 This includes drawdown and repayment of the syndicated revolving credit facility.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2023
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 2023 No acquisitions were completed in the year ended 31 December 2023. During 2023, management evaluated the commercial viability of Engage products and concluded that they should be discontinued (see Note 2.2 for further details). 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. The maximum consideration, all payable in cash, is $135 m and the provisional fair value consideration is $131 m and includes $32 m 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 is 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. 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 is 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. ​ ​

OTHER NOTES TO THE ACCOUNTS

OTHER NOTES TO THE ACCOUNTS	12 Months Ended
	Dec. 31, 2023
OTHER NOTES TO THE ACCOUNTS
OTHER NOTES TO THE ACCOUNTS	Group financial statements continued Notes to the Group accounts continued 22 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 Share Save Plan (2012) and Smith & Nephew International Share Save Plan (2012). At 31 December 2023, 5,138,000 options (2022: 5,202,000, 2021: 4,472,000) were outstanding with a range of exercise prices from 843 to 1,541 pence. At 31 December 2023, the maximum number of shares that could be awarded under the Group’s long-term incentive plans was 8,452,000 (2022: 7,371,000, 2021: 5,997,000). 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 $39m (2022: $40m, 2021: $41m). 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 (2022: $nil, 2021: $nil). Key management personnel The remuneration of Executive Officers (including Non-Executive Directors) during the year is summarised below: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 ​ $ million $ million $ million Short-term employee benefits ​ 21 ​ 17 ​ 16 Share-based payments expense ​ 9 ​ 10 ​ 7 Pension and post-employment benefit entitlements ​ 1 ​ 2 ​ 1 ​ ​ 31 ​ 29 ​ 24 ​ 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, 2023
POST BALANCE SHEET EVENTS
POST BALANCE SHEET EVENTS	23 Post balance sheet events On 9 January 2024, the Group completed the acquisition of 100% of the share capital of CartiHeal, the developer of CARTIHEAL ◊ AGILI-C ◊ , a novel sports medicine technology for cartilage regeneration in the knee. The acquisition of this disruptive technology supports our strategy to invest behind our successful Sports Medicine & ENT business unit. Smith+Nephew paid $180 m in cash on completion, with up to a further $150 m contingent on future financial performance. This acquisition will be treated as a business combination under IFRS 3-Business Combinations. The provisional value of acquired net tangible assets is not material and is not expected to have material fair value adjustments. The remaining consideration will be allocated between identifiable intangible assets (product-related) and goodwill, with the majority expected to be goodwill representing the control premium, the acquired workforce and the synergies expected from integrating CartiHeal into the Group’s existing business. In October 2022, US Pension Plan members were notified that Smith & Nephew Inc. (SNI) would begin the termination process for the US Plan. In December 2023, Fidelity & Guaranty Life was selected to take over responsibility for the remaining US Pension Plan obligation and administration upon termination. A premium amount of $245 m was paid in cash by the US Plan on 4 January 2024 to settle the annuity purchase agreement with Fidelity & Guaranty Life. Certain active employees and terminated vested participants elected to receive a lump sum in exchange for their plan benefit of $80 m. This resulted in $4 m of settlement costs which were recognised in 2023, representing the difference between defined benefit obligation (DBO) and the lump sums paid to members in December 2023. A $2 m credit will be recorded in 2024 linked to the annuity purchase contract concluded with Fidelity & Guaranty Life on 4 January 2024. ​

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2023
Accounting Policies
NEW ACCOUNTING STANDARDS	New accounting standards effective 2023 A number of new amendments to standards are effective from 1 January 2023 but they do not have a material effect on the Group’s financial statements except for Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendment to IAS 12, which the Group has adopted. The amendments narrow the scope of the initial recognition exemption to exclude transactions that give rise to equal and offsetting temporary differences such as leases. The Group previously accounted for deferred tax on leases where the deferred tax asset or liability was recognised on a net basis. Following the amendments, the Group has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. However, there is no impact on the balance sheet because the balances qualify for offset under paragraph 74 of IAS 12. There was also no impact on the opening retained earnings as at 1 January 2023 as a result of the change. The policy for recognising and measuring income taxes is consistent with that applied in the comparative years except for the changes outlined above as a result of the Group’s adoption of the amendments to IAS 12. The change in accounting policy will also be reflected in the Group’s consolidated financial statements for the year ending 31 December 2023. 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 2024 and earlier application is permitted; however, the Group has not adopted them early in preparing these Financial Statements. The Group is adopting the mandatory temporary exception from the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules which will take effect for the Group from 1 January 2024.
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	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: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 Average rates ​ ​ ​ Sterling ​ 1.24 ​ 1.23 ​ 1.38 Euro ​ 1.08 ​ 1.05 ​ 1.18 Swiss Franc ​ 1.11 ​ 1.05 ​ 1.09 Year end rates ​ ​ ​ ​ ​ ​ Sterling ​ 1.27 ​ 1.21 ​ 1.35 Euro ​ 1.10 ​ 1.07 ​ 1.13 Swiss Franc ​ 1.19 ​ 1.08 ​ 1.10 ​
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.
RESEARCH AND DEVELOPMENT	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 Advertising costs are expensed as incurred .
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. In 2023, the Group has adopted IAS 12-Deferred Tax related to Assets and Liabilities arising from a Single Transaction amendments, which narrow the scope of the initial recognition exemption to exclude transactions that give rise to equal and offsetting temporary differences such as leases. The Group previously accounted for deferred tax on leases where the deferred tax asset or liability was recognised on a net basis. Following the amendments, the Group has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. However, there is no impact on the balance sheet because the balances qualify for offset under paragraph 74 of IAS 12. There was also no impact on the opening retained earnings as at 1 January 2023 as a result of the change.
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 operating 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. When an acquired business included within a CGU ceases to operate permanently, then the acquired business no longer forms part of the CGU and is therefore tested for impairment on a standalone basis. The portion of goodwill allocated to this acquired business is measured based on its relative value within the CGU, unless another method is considered more appropriate. 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. When the composition of CGUs changed, goodwill would be allocated using a relative value approach at the date of the reorganisation similar to that used when an operation within a CGU is disposed of or a method that could provide a better allocation of goodwill to the reorganised units.
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	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 restructuring and 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	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, 2023
BASIS OF PREPARATION
The exchange rates used for the translation of currencies	​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 Average rates ​ ​ ​ Sterling ​ 1.24 ​ 1.23 ​ 1.38 Euro ​ 1.08 ​ 1.05 ​ 1.18 Swiss Franc ​ 1.11 ​ 1.05 ​ 1.09 Year end rates ​ ​ ​ ​ ​ ​ Sterling ​ 1.27 ​ 1.21 ​ 1.35 Euro ​ 1.10 ​ 1.07 ​ 1.13 Swiss Franc ​ 1.19 ​ 1.08 ​ 1.10 ​

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2023
BUSINESS SEGMENT INFORMATION
Segment revenue reconciles to statutory revenues from continuing operations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Reportable segment revenue ​ ​ ​ Orthopaedics ​ 2,214 ​ 2,113 ​ 2,156 Sports Medicine & ENT ​ 1,729 ​ 1,590 ​ 1,560 Advanced Wound Management ​ 1,606 ​ 1,512 ​ 1,496 Revenue from external customers ​ 5,549 ​ 5,215 ​ 5,212
Disaggregation of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Revenue by product from continuing operations ​ ​ ​ Knee Implants ​ 940 ​ 899 ​ 876 Hip Implants ​ 599 ​ 584 ​ 612 Other Reconstruction ​ 111 ​ 87 ​ 92 Trauma & Extremities ​ 564 ​ 543 ​ 576 Orthopaedics ​ 2,214 ​ 2,113 ​ 2,156 Sports Medicine Joint Repair ​ 945 ​ 870 ​ 839 Arthroscopic Enabling Technologies ​ 588 ​ 567 ​ 590 ENT (Ear, Nose and Throat) ​ 196 ​ 153 ​ 131 Sports Medicine & ENT ​ 1,729 ​ 1,590 ​ 1,560 Advanced Wound Care ​ 725 ​ 712 ​ 731 Advanced Wound Bioactives ​ 553 ​ 520 ​ 496 Advanced Wound Devices ​ 328 ​ 280 ​ 269 Advanced Wound Management ​ 1,606 ​ 1,512 ​ 1,496 Consolidated revenue from continuing operations ​ 5,549 ​ 5,215 ​ 5,212 ​ 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 business unit are sold to wholesalers and intermediaries, while products in the other business units 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 products, which 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ ​ ​ ​ ​ 2022 ​ ​ ​ ​ ​ 2021 ​ ​ 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 ​ 3,184 ​ 759 ​ 3,943 ​ 2,949 ​ 754 ​ 3,703 ​ 2,969 ​ 747 ​ 3,716 Advanced Wound Management ​ 1,406 ​ 200 ​ 1,606 ​ 1,319 ​ 193 ​ 1,512 ​ 1,327 ​ 169 ​ 1,496 Total ​ 4,590 ​ 959 ​ 5,549 ​ 4,268 ​ 947 ​ 5,215 ​ 4,296 ​ 916 ​ 5,212 ​ 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Segment profit ​ ​ ​ ​ ​ ​ Orthopaedics ​ 398 ​ 383 ​ 367 Sports Medicine & ENT ​ 503 ​ 472 ​ 459 Advanced Wound Management ​ 472 ​ 436 ​ 474 Segment trading profit ​ 1,373 ​ 1,291 ​ 1,300 Corporate costs ​ (403) ​ (390) ​ (364) Group trading profit ​ 970 ​ 901 ​ 936 Acquisition and disposal-related items 1 ​ (60) ​ (4) ​ (7) Restructuring and rationalisation expenses ​ (220) ​ (167) ​ (113) Amortisation and impairment of acquisition intangibles 1 ​ (207) ​ (205) ​ (172) Legal and other 1 ​ (58) ​ (75) ​ (51) Group operating profit ​ 425 ​ 450 ​ 593
Assets and liabilities by geographic location	​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million United Kingdom ​ 525 ​ 487 ​ 541 United States of America ​ 3,692 ​ 3,918 ​ 4,125 Other ​ 1,397 ​ 1,387 ​ 1,447 Total non-current assets of the consolidated Group 1 ​ 5,614 ​ 5,792 ​ 6,113 ​ 1 Non-current assets exclude retirement benefit assets and deferred tax assets .

OPERATING PROFIT (Tables)

OPERATING PROFIT (Tables)	12 Months Ended
	Dec. 31, 2023
GROUP INCOME STATEMENT
Schedule of expenses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Revenue ​ 5,549 ​ 5,215 ​ 5,212 Cost of goods sold 1 ​ (1,730) ​ (1,540) ​ (1,543) Gross profit ​ 3,819 ​ 3,675 ​ 3,669 Research and development expenses 2 ​ (339) ​ (345) ​ (356) Selling, general and administrative expenses: ​ ​ ​ Marketing, selling and distribution expenses ​ (2,218) ​ (2,066) ​ (2,013) Administrative expenses 3,4,5,6 ​ (837) ​ (814) ​ (707) ​ ​ (3,055) ​ (2,880) ​ (2,720) Operating profit ​ 425 ​ 450 ​ 593 1 2023 includes $27 m charge relating to legal and other items, $73 m charge relating to restructuring and rationalisation expenses and $3 m charge relating to acquisition and disposal-related items (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). 2 2023 includes $21 m charge relating to legal and other items (2022: $35 m, 2021: $39 m), $ 1 m charge relating to acquisition and disposal-related items (2022: $5 m, 2021: $ 7 m) and $18 m charge relating to restructuring and rationalisation expenses (2022: $ 5 m, 2021: $ nil ). 3 2023 includes $51 m of amortisation of software and other intangible assets (2022: $56 m, 2021: $65 m). 4 2023 includes $207 m of amortisation and impairment of acquisition intangibles and $129 m of restructuring and rationalisation expenses (2022: $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). 5 2023 includes $10 m charge relating to legal and other items (2022: $36 m charge, 2021: $5 m charge). 6 2023 includes $56 m charge relating to acquisition and disposal-related items (2022: $ 6 m credit, 2021: $ nil ). 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Other operating income ​ – ​ (7) ​ (35) Amortisation of intangible assets ​ 221 ​ 229 ​ 237 Impairment of intangible assets 1 ​ 37 ​ 39 ​ 2 Impairment of Engage's goodwill ​ 84 ​ – ​ – Impairment of property, plant and equipment ​ 31 ​ 30 ​ 1 Fair value remeasurement of trade investments ​ 4 ​ – ​ 1 Depreciation of property, plant and equipment 2 ​ 306 ​ 319 ​ 326 Loss on disposal of property, plant and equipment and intangible assets ​ 18 ​ 11 ​ 14 Advertising costs ​ 88 ​ 92 ​ 81 1 The 2023 impairment of intangible assets includes Engage’s intangible assets of $37 m due to the voluntary product discontinuation. 2 The 2023 depreciation charge includes $54 m (2022: $56 m, 2021: $56 m) related to right-of-use assets. In 2023, other operating income comprises insurance recoveries for ongoing metal-on-metal hip claims of $nil (2022: $7m, 2021: $35m). In 2023, $nil (2022: $7m, 2021: $35m) of other operating income was included with legal and other items, as explained in Note 2.6, and does not form part of trading profit, the segments’ profit measure. ​ 3.1 Staff costs during the year amounted to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ Notes $ million $ million $ million Wages and salaries ​ ​ 1,683 ​ 1,565 ​ 1,562 Social security costs ​ ​ 242 ​ 215 ​ 223 Pension costs (including retirement healthcare) ​ 18 ​ 95 ​ 88 ​ 93 Share-based payments ​ 22 ​ 39 ​ 40 ​ 41 ​ ​ ​ 2,059 ​ 1,908 ​ 1,919 ​ During the year ended 31 December 2023, the average number of employees was 19,081 (2022: 19,094, 2021: 18,976). 3.2 Audit Fees – information about the nature and cost of services provided by the auditor ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Audit services: ​ ​ ​ Group accounts ​ 7.9 ​ 7.2 ​ 5.5 Local statutory audit pursuant to legislation ​ 2.1 ​ 2.2 ​ 2.0 Other services: ​ ​ ​ ​ ​ ​ Audit-related services ​ 0.3 ​ 0.4 ​ 0.1 Total auditor’s remuneration ​ 10.3 ​ 9.8 ​ 7.6 Arising: ​ ​ ​ In the UK ​ 6.0 ​ 5.3 ​ 3.5 Outside the UK ​ 4.3 ​ 4.5 ​ 4.1 ​ ​ 10.3 ​ 9.8 ​ 7.6 ​

INTEREST AND OTHER FINANCE CO_2

INTEREST AND OTHER FINANCE COSTS (Tables)	12 Months Ended
	Dec. 31, 2023
INTEREST AND OTHER FINANCE COSTS
Schedule of interest and other finance costs	4.1 Interest income/(expense) ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Interest income ​ 34 ​ 14 ​ 6 Interest expense: ​ ​ ​ ​ ​ Bank borrowings ​ (10) ​ (3) ​ (3) Private placement notes ​ (38) ​ (39) ​ (46) Lease liabilities ​ (8) ​ (6) ​ (7) Corporate bond ​ (46) ​ (27) ​ (21) Other 1 ​ (30) ​ (5) ​ (3) ​ ​ (132) ​ (80) ​ (80) Net interest expense ​ (98) ​ (66) ​ (74) 1 Other interest expenses included mainly swap interest expenses in 2023. 4.2 Other finance costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ Notes $ million $ million $ million Retirement benefit net interest expense ​ 18 ​ (1) ​ (2) ​ (3) Unwinding of discount ​ ​ (6) ​ (9) ​ (10) Other ​ ​ – ​ 3 ​ (4) Other finance costs ​ ​ (7) ​ (8) ​ (17) ​

TAXATION (Tables)

TAXATION (Tables)	12 Months Ended
	Dec. 31, 2023
TAXATION
Schedule of taxation charge attributable to the group	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Current taxation: ​ ​ ​ UK corporation tax at 23.5% (2022: 19.0%; 2021: 19.0%) ​ 15 ​ 17 ​ 14 Overseas tax ​ 165 ​ 104 ​ 126 Current income tax charge ​ 180 ​ 121 ​ 140 Adjustments in respect of prior periods ​ (45) ​ (10) ​ (33) Total current taxation ​ 135 ​ 111 ​ 107 Deferred taxation: ​ ​ ​ Origination and reversal of temporary differences ​ (116) ​ (77) ​ (35) Changes in tax rates ​ (2) ​ (5) ​ (14) Adjustments to estimated amounts arising in prior periods ​ 10 ​ (17) ​ 4 Total deferred taxation ​ (108) ​ (99) ​ (45) Total taxation as per the income statement ​ 27 ​ 12 ​ 62 Taxation in other comprehensive income ​ (18) ​ 5 ​ 27 Taxation in equity ​ – ​ 3 ​ 1 Taxation charge attributable to the Group ​ 9 ​ 20 ​ 90
Schedule of reconciliation of expected tax charge at the UK statutory rate with the actual tax charge	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Profit before taxation ​ 290 ​ 235 ​ 586 Expected taxation at UK statutory rate of 23.5% (2022: 19.0%, 2021: 19.0%) ​ 68 ​ 45 ​ 111 Differences in overseas taxation rates ​ (24) ​ (19) ​ (17) Innovation reliefs ​ (7) ​ (10) ​ (12) Tax losses and other deferred tax assets not recognised ​ – ​ – ​ 7 Recognition of previously unrecognised tax losses ​ (14) ​ (4) ​ (2) Expenses not deductible for tax purposes 1 ​ 38 ​ 31 ​ 22 Change in tax rates ​ (2) ​ (5) ​ (14) Withholding tax on unremitted earnings ​ 3 ​ 1 ​ (4) Adjustments in respect of prior years 2 ​ (35) ​ (27) ​ (29) Total taxation charge as per the income statement ​ 27 ​ 12 ​ 62 ​ 1 In 2023, this includes a $7 m impact of non-tax deductible impairment on UK owned investments (2022: $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 The adjustment in respect of prior years are explained on page 187. ​
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 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 Exchange adjustment ​ – ​ (1) ​ (3) ​ 1 ​ 1 ​ (2) Movement in income statement – current year ​ (15) ​ 43 ​ – ​ 63 ​ 25 ​ 116 Movement in income statement – prior years ​ – ​ 1 ​ – ​ (10) ​ (1) ​ (10) Movement in other comprehensive income ​ – ​ – ​ 18 ​ – ​ – ​ 18 Changes in tax rate ​ (1) ​ – ​ – ​ 4 ​ (1) ​ 2 At 31 December 2023 ​ (91) ​ (138) ​ (6) ​ 198 ​ 302 ​ 265 ​ Represented by: ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Deferred tax assets ​ 274 ​ 177 Deferred tax liabilities ​ (9) ​ (36) Net position at 31 December ​ 265 ​ 141

EARNINGS PER ORDINARY SHARE (Ta

EARNINGS PER ORDINARY SHARE (Tables)	12 Months Ended
	Dec. 31, 2023
Earnings per share [abstract]
Schedule of earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ ​ ​ $ million $ million $ million Earnings ​ ​ ​ ​ ​ ​ ​ ​ Attributable profit for the year ​ ​ ​ 263 ​ 223 ​ 524 Adjusted attributable profit (see below) ​ ​ ​ 722 ​ 713 ​ 710 ​ Attributable profit is reconciled to adjusted attributable profit as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ Notes $ million $ million $ million Attributable profit for the year ​ ​ ​ 263 ​ 223 ​ 524 Acquisition and disposal-related items 1 ​ ​ ​ 78 ​ 162 ​ (73) Restructuring and rationalisation costs 2 ​ 3 ​ 223 ​ 168 ​ 113 Amortisation and impairment of acquisition intangibles 3 ​ 9 ​ 207 ​ 205 ​ 172 Legal and other 4 ​ ​ ​ 64 ​ 82 ​ 59 Taxation on excluded items ​ 5 ​ (113) ​ (127) ​ (85) Adjusted attributable profit ​ ​ ​ 722 ​ 713 ​ 710 ​ 1 Acquisition and disposal-related items includes a $60 m charge within operating profit (2022: $ 4 m charge, 2021: $7 m charge) and a $18 m charge within share of result of associates (2022: $158 m charge, 2021: $ 5 m credit) and a $ nil gain on disposal of interest in associate (2022: $ nil , 2021: $ 75 m gain). See details in Note 11. 2 Restructuring and rationalisation costs include a $220 m charge within operating profit (2022: $167 m, 2021: $113 m) and a $3 m charge within share of result of associates (2022: $ 1 m, 2021: $ nil ). 3 In 2023, amortisation and impairment of acquisition intangibles includes a $207 m charge within operating profit (2022: $205 m charge within operating profit, 2021: $172 m charge within operating profit). 4 Legal and other in 2023 includes $58 m charge (2022: $75 m charge, 2021: $51 m charge) within operating profit (refer to Note 2.6) and a $6 m charge (2022: $7 m charge, 2021: $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. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 Number of shares (millions) ​ ​ ​ ​ ​ ​ ​ ​ Basic weighted number of shares ​ ​ ​ 871 ​ 872 ​ 877 Dilutive impact of share incentive schemes outstanding ​ ​ ​ 2 ​ 1 ​ 1 Diluted weighted average number of shares ​ ​ ​ 873 ​ 873 ​ 878 ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per ordinary share ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ ​ 30.2¢ ​ 25.5¢ ​ 59.8¢ Diluted ​ ​ ​ 30.1¢ ​ 25.5¢ ​ 59.7¢ Adjusted: ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ ​ 82.8¢ ​ 81.8¢ ​ 80.9¢ Diluted ​ ​ ​ 82.7¢ ​ 81.6¢ ​ 80.8¢ ​

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2023
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 2022 ​ ​ 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 Exchange adjustment ​ ​ 8 ​ 10 ​ 21 ​ 4 ​ 43 Additions ​ ​ 69 ​ 211 ​ 29 ​ 70 ​ 379 Disposals ​ ​ ​ (39) ​ (88) ​ (51) ​ (2) ​ (180) Impairment ​ ​ ​ – ​ – ​ – ​ (5) ​ (5) Reclassification ​ ​ ​ 4 ​ – ​ – ​ – ​ 4 Transfers ​ ​ 27 ​ 1 ​ 102 ​ (153) ​ (23) At 31 December 2023 ​ ​ 795 ​ 1,844 ​ 1,433 ​ 170 ​ 4,242 Depreciation and impairment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 1 January 2022 ​ ​ 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 Exchange adjustment ​ ​ 4 ​ 8 ​ 15 ​ – ​ 27 Charge for the year ​ ​ 63 ​ 154 ​ 89 ​ – ​ 306 Impairment ​ ​ 21 ​ 1 ​ 4 ​ – ​ 26 Disposals ​ ​ ​ (34) ​ (76) ​ (50) ​ – ​ (160) Reclassification ​ ​ ​ 4 ​ – ​ – ​ – ​ 4 Transfers ​ ​ – ​ (1) ​ 1 ​ – ​ – At 31 December 2023 ​ ​ 342 ​ 1,452 ​ 978 ​ – ​ 2,772 Net book amounts ​ ​ ​ ​ ​ ​ At 31 December 2023 ​ ​ ​ 453 ​ 392 ​ 455 ​ 170 ​ 1,470 At 31 December 2022 ​ ​ 442 ​ 344 ​ 413 ​ 256 ​ 1,455
Schedule of Group's right-of-use assets	​ ​ ​ ​ ​ ​ ​ ​ Land and buildings ​ Plant and equipment 2023 $ million $ million Additions ​ 45 ​ 11 Depreciation charge in the year ​ 42 ​ 12 Net book value at 31 December ​ 157 ​ 28 ​

GOODWILL (Table)

GOODWILL (Table)	12 Months Ended
	Dec. 31, 2023
GOODWILL
Schedule of goodwill	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ Notes $ million $ million Cost and net book value ​ ​ ​ ​ At 1 January ​ ​ ​ 3,031 ​ 2,989 Exchange adjustment ​ ​ ​ 45 ​ (42) Impairment ​ ​ ​ (84) ​ – Acquisitions ​ 21 ​ – ​ 84 At 31 December ​ ​ ​ 2,992 ​ 3,031 Management has identified five CGUs in applying the provisions of IAS 36 Impairment of Assets In 2023, ENT was identified as a separate operating segment following change in the Group’s management structure. Therefore, ENT was identified as a new CGU for goodwill impairment reviews. 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. During 2023, management evaluated the commercial viability of Engage products and concluded that they should be discontinued. The goodwill related to Engage of $84m, previously included in the Orthopaedics CGU, was fully impaired. Goodwill is allocated to the Group’s CGUs as follows: ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Orthopaedics ​ 915 ​ 953 Sports Medicine 1 ​ 1,154 ​ 1,455 ENT 1 ​ 287 ​ – Advanced Wound Management ​ 636 ​ 623 ​ ​ 2,992 ​ 3,031

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2023
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 2022 ​ ​ ​ 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 Exchange adjustment ​ ​ ​ 4 ​ 36 ​ (1) ​ 5 ​ 4 ​ 48 Additions ​ ​ ​ – ​ 2 ​ 2 ​ 36 ​ 64 ​ 104 Disposals ​ ​ ​ (1) ​ (7) ​ – ​ (4) ​ – ​ (12) Transfers ​ ​ ​ (3) ​ 10 ​ – ​ 2 ​ 14 ​ 23 At 31 December 2023 ​ ​ ​ 582 ​ 2,273 ​ 236 ​ 547 ​ 178 ​ 3,816 Amortisation and impairment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 1 January 2022 ​ ​ ​ 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 Exchange adjustment ​ ​ ​ 2 ​ 36 ​ – ​ 4 ​ – ​ 42 Charge for the year ​ ​ ​ 46 ​ 121 ​ 16 ​ 38 ​ – ​ 221 Impairment ​ ​ ​ – ​ 37 ​ – ​ – ​ – ​ 37 Disposals ​ ​ ​ – ​ (7) ​ – ​ (4) ​ – ​ (11) At 31 December 2023 ​ ​ ​ 276 ​ 1,801 ​ 176 ​ 453 ​ – ​ 2,706 Net book amounts ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 31 December 2023 ​ ​ ​ 306 ​ 472 ​ 60 ​ 94 ​ 178 ​ 1,110 At 31 December 2022 ​ ​ ​ 354 ​ 618 ​ 75 ​ 93 ​ 96 ​ 1,236 Amortisation and impairment of acquisition intangibles is set out below: ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Technology ​ 46 ​ 51 Product-related ​ 150 ​ 142 Customer and distribution-related ​ 11 ​ 12 Total ​ 207 ​ 205 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 ​ 257 ​ 10 years Intangibles acquired as part of the Osiris acquisition ​ 171 ​ 1 – 5 years Intangibles acquired as part of the Healthpoint acquisition ​ 143 ​ 4 years ​

INVESTMENTS (Tables)

INVESTMENTS (Tables)	12 Months Ended
	Dec. 31, 2023
INVESTMENTS
Schedule of investments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ ​ ​ $ million $ million At 1 January ​ ​ ​ 12 ​ 10 Additions ​ ​ ​ – ​ 2 Fair value remeasurement ​ ​ ​ (4) ​ – At 31 December ​ ​ ​ 8 ​ 12 ​

INVESTMENTS IN ASSOCIATES (Tabl

INVESTMENTS IN ASSOCIATES (Tables)	12 Months Ended
	Dec. 31, 2023
INVESTMENTS IN ASSOCIATES
Schedule of amounts recognised in the balance sheet and income statement	​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Balance sheet ​ 16 ​ 46 Income statement loss ​ (30) ​ (32) Impairment of interest in associate ​ – ​ (109)
Summary of financial information for Bioventus, adjusted for differences with Group accounting policies	​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 ​ $ million $ million Summarised statement of comprehensive income ​ ​ Revenue ​ 377 ​ 386 Attributable loss for the year ​ (152) ​ (129) Group adjustments 1 ​ 46 ​ 17 Total comprehensive loss ​ (106) ​ (112) Group share of loss for the year at 27.96% (2022: 28.3%) ​ (30) ​ (32) ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 ​ $ million $ million Summarised balance sheet ​ ​ Non-current assets ​ 562 ​ 1,128 Current assets ​ 249 ​ 271 Non-current liabilities ​ (424) ​ (730) Current liabilities ​ (160) ​ (288) Net assets ​ 227 ​ 381 Net equity attributable to owners ​ 227 ​ 381 Group’s share of net assets at 27.96% (2022: 28.3%) ​ 64 ​ 108 Group adjustments 1,2 ​ (48) ​ 47 Impairment loss ​ – ​ (109) Group’s carrying amount of investment at 27.96% (2022: 28.3%) ​ 16 ​ 46 1 Group adjustments include adjustments to align with Group policy. 2 In 2023, Group adjustments also include impairment loss of share in associates of $109 m from 2022.

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2023
INVENTORIES
Schedule of inventory	​ ​ ​ ​ ​ ​ ​ 2023 2022 ​ $ million $ million Raw materials and consumables ​ 503 ​ 474 Work-in-progress ​ 60 ​ 78 Finished goods and goods for resale ​ 1,832 ​ 1,653 ​ ​ 2,395 ​ 2,205

TRADE AND OTHER RECEIVABLES (Ta

TRADE AND OTHER RECEIVABLES (Tables)	12 Months Ended
	Dec. 31, 2023
TRADE AND OTHER RECEIVABLES.
Schedule of trade and other receivables	​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Trade and other receivables due within one year ​ ​ ​ ​ Trade receivables ​ 1,104 ​ 1,076 Less: loss allowance ​ (45) ​ (49) Trade receivables – net ​ 1,059 ​ 1,027 Derivatives – forward foreign exchange, currency swaps and interest rate contracts ​ 27 ​ 47 Other receivables ​ 122 ​ 114 Prepayments ​ 92 ​ 76 ​ ​ 1,300 ​ 1,264 Due after more than one year ​ ​ ​ ​ Other non-current assets ​ 18 ​ 12 ​ ​ 1,318 ​ 1,276 ​
Schedule of trade receivables - net	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 Weighted average loss rate ​ 2023 Loss allowance ​ 2023 Gross carrying amount ​ 2022 Gross carrying amount ​ % $ million $ million $ million Not past due ​ -0.1% ​ (1) ​ 788 ​ 610 Past due not more than 3 months ​ -0.6% ​ (1) ​ 180 ​ 228 Past due more than 3 months ​ -3.9% ​ (2) ​ 51 ​ 97 Past due more than 6 months ​ -48.2% ​ (41) ​ 85 ​ 141 ​ ​ ​ ​ (45) ​ 1,104 ​ 1,076 Loss allowance ​ ​ ​ ​ ​ (45) ​ (49) Trade receivables – net ​ ​ ​ ​ ​ 1,059 ​ 1,027
Schedule of movements in loss allowance	​ ​ ​ ​ ​ ​ ​ 2023 2022 ​ $ million $ million At 1 January 49 57 Exchange adjustment 1 (3) Net receivables provided during the year 3 4 Utilisation of provision (8) (9) At 31 December 45 49
Schedule of trade receivables denominated by currency	​ ​ ​ ​ ​ ​ ​ 2023 2022 ​ $ million $ million US Dollar ​ 506 465 Sterling ​ 39 37 Euro ​ 224 215 Other ​ 290 310 Trade receivables – net ​ 1,059 1,027 ​

TRADE AND OTHER PAYABLES (Table

TRADE AND OTHER PAYABLES (Tables)	12 Months Ended
	Dec. 31, 2023
TRADE AND OTHER PAYABLES
Schedule of trade and other payables	​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Trade and other payables due within one year ​ ​ Trade and other payables ​ 1,016 ​ 1,029 Derivatives – forward foreign exchange, currency swaps and interest rate contracts ​ 28 ​ 43 Acquisition consideration ​ 11 ​ 26 ​ ​ 1,055 ​ 1,098 Other payables due after one year ​ ​ Acquisition consideration ​ 25 ​ 66 Derivatives – forward foreign exchange, currency swaps and interest rate contracts ​ – ​ 13 Other payables ​ 10 ​ 11 ​ ​ 35 ​ 90

CASH AND BORROWINGS (Tables)

CASH AND BORROWINGS (Tables)	12 Months Ended
	Dec. 31, 2023
CASH AND BORROWINGS
Schedule of net debt	​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Bank overdrafts, borrowings and loans due within one year ​ 710 ​ 111 Corporate bond ​ 1,550 ​ 1,510 Private placement notes ​ 625 ​ 1,055 Borrowings ​ 2,885 ​ 2,676 Cash at bank ​ (302) ​ (350) Credit balance on derivatives – currency swaps ​ 1 ​ – (Debit)/credit balance on derivatives – interest rate swaps ​ (7) ​ 13 Net debt ​ 2,577 ​ 2,339 Non-current lease liabilities ​ 144 ​ 147 Current lease liabilities ​ 55 ​ 49 Net debt including lease liabilities ​ 2,776 ​ 2,535
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 2023 ​ ​ ​ ​ ​ ​ ​ Bank loans ​ 303 ​ – ​ – ​ – ​ – ​ – ​ 303 Bank overdrafts ​ 2 ​ – ​ – ​ – ​ – ​ – ​ 2 Corporate bond ​ – ​ – ​ – ​ – ​ – ​ 1,550 ​ 1,550 Private placement notes ​ 405 ​ – ​ 75 ​ 140 ​ 60 ​ 350 ​ 1,030 Lease liabilities 1 ​ 55 ​ 44 ​ 33 ​ 25 ​ 18 ​ 35 ​ 210 ​ ​ 765 ​ 44 ​ 108 ​ 165 ​ 78 ​ 1,935 ​ 3,095 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 ​ 1 The lease liabilities presented above of $210 m (2022: $210 m) are on an undiscounted basis. The lease liabilities on a discounted basis, as outlined above, are $199 m (2022: $196 m). ​
Schedule of committed facility	​ ​ ​ ​ Facility Date due $100 million 3.89% Senior Notes ​ January 2024 $305 million 3.36% Senior Notes ​ November 2024 $75 million 3.99% Senior Notes ​ January 2026 $140 million 2.83% Senior Notes ​ June 2027 $60 million 2.90% Senior Notes ​ June 2028 $1.0 billion syndicated revolving credit facility ​ October 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 2023 ​ ​ ​ ​ Non-derivative financial liabilities: ​ ​ ​ ​ Bank overdrafts and loans 305 ​ – ​ – ​ – ​ 305 Corporate bond 53 ​ 53 ​ 158 ​ 1,614 ​ 1,878 Trade and other payables 1,016 ​ – ​ – ​ – ​ 1,016 Private placement notes 434 ​ 19 ​ 317 ​ 373 ​ 1,143 Acquisition consideration 11 ​ 9 ​ 2 ​ 15 ​ 37 Derivative financial instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency swaps/forward foreign exchange contracts – outflow 2,913 ​ – ​ – ​ – ​ 2,913 Currency swaps/forward foreign exchange contracts – inflow (2,912) ​ – ​ – ​ – ​ (2,912) ​ 1,820 ​ 81 ​ 477 ​ 2,002 ​ 4,380 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

FINANCIAL INSTRUMENTS AND RIS_2

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Table)	12 Months Ended
	Dec. 31, 2023
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 2023 ​ ​ ​ ​ ​ ​ ​ Foreign currency risk ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Forward exchange contracts 1 ​ 2,913 ​ 27 ​ (28) ​ (3) ​ – ​ (25) ​ Cash flow hedges Interest rate risk ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swaps 2 ​ (500) ​ 7 ​ – ​ – ​ – ​ – ​ Fair value hedge 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 1 Presented in Trade and other receivables and Trade and other payables on the Balance Sheet. The nominal amount is in $ million. 2 Presented in Non-current other receivables in 2023 and in Non-current other payables in 2022 on the Balance Sheet. The nominal amount is in € million.
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 2023 ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ (2,324) ​ (329) ​ – ​ (2,653) ​ (628) ​ (2,025) ​ 2.7 ​ 5.1 Other ​ (561) ​ (219) ​ – ​ (780) ​ (224) ​ (556) ​ ​ ​ ​ Total interest bearing liabilities ​ (2,885) ​ (548) ​ – ​ (3,433) ​ (852) ​ (2,581) ​ ​ 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) ​ ​
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 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ 98 ​ 217 ​ – ​ 315 ​ 315 ​ – Other ​ 204 ​ 331 ​ 7 ​ 542 ​ 542 ​ – Total interest bearing assets ​ 302 ​ 548 ​ 7 ​ 857 ​ 857 ​ – At 31 December 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ US Dollar ​ 207 ​ 205 ​ – ​ 412 ​ 412 ​ – Other ​ 143 ​ 164 ​ – ​ 307 ​ 307 ​ – Total interest bearing assets ​ 350 ​ 369 ​ – ​ 719 ​ 719 ​ –
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 2023 $ million $ million $ million $ million $ million $ million $ million $ million $ million Financial assets measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ Forward foreign exchange contracts ​ 25 ​ – ​ – ​ – ​ – ​ 25 ​ 25 ​ – ​ 25 Investments ​ – ​ – ​ – ​ 8 ​ – ​ 8 ​ – ​ 8 ​ 8 Contingent consideration receivable ​ – ​ – ​ – ​ 18 ​ – ​ 18 ​ – ​ 18 ​ 18 Interest rate swaps ​ 7 ​ – ​ – ​ – ​ – ​ 7 ​ 7 ​ – ​ 7 Currency swaps ​ – ​ – ​ 2 ​ – ​ – ​ 2 ​ 2 ​ – ​ 2 ​ ​ 32 ​ – ​ 2 ​ 26 ​ – ​ 60 ​ ​ ​ ​ ​ Financial liabilities measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition consideration ​ – ​ – ​ – ​ (32) ​ – ​ (32) ​ – ​ (32) ​ (32) Forward foreign exchange contracts ​ (25) ​ – ​ – ​ – ​ – ​ (25) ​ (25) ​ – ​ (25) Currency swaps ​ – ​ – ​ (3) ​ – ​ – ​ (3) ​ (3) ​ – ​ (3) ​ ​ (25) ​ – ​ (3) ​ (32) ​ – ​ (60) ​ ​ ​ Financial assets not measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade and other receivables ​ 1,163 ​ – ​ – ​ – ​ – ​ 1,163 ​ ​ ​ Cash at bank ​ – ​ 302 ​ – ​ – ​ – ​ 302 ​ ​ ​ ​ ​ 1,163 ​ 302 ​ – ​ – ​ – ​ 1,465 ​ ​ ​ Financial liabilities not measured at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition consideration ​ – ​ – ​ – ​ – ​ (4) ​ (4) ​ ​ ​ Bank overdrafts ​ – ​ – ​ – ​ – ​ (2) ​ (2) ​ ​ ​ Bank loans ​ – ​ – ​ – ​ – ​ (303) ​ (303) ​ ​ ​ ​ ​ ​ Corporate bond not in a hedge relationship ​ – ​ – ​ – ​ – ​ (995) ​ (995) ​ ​ ​ ​ ​ ​ Corporate bond in a hedge relationship ​ – ​ – ​ – ​ – ​ (555) ​ (555) ​ ​ ​ Private placement debt not in a hedge relationship ​ – ​ – ​ – ​ – ​ (1,030) ​ (1,030) ​ ​ ​ ​ ​ ​ Trade and other payables ​ – ​ – ​ – ​ – ​ (1,026) ​ (1,026) ​ ​ ​ ​ ​ – ​ – ​ – ​ – ​ (3,915) ​ (3,915) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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) ​ ​ ​
Schedule of movements for financial instruments measured using Level 3 valuation methods	​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ $ million $ million Investments ​ ​ ​ ​ At 1 January ​ 12 ​ 10 Additions ​ – ​ 2 Fair value remeasurement ​ (4) ​ – At 31 December ​ 8 ​ 12 ​ ​ ​ ​ ​ Contingent consideration receivable ​ ​ ​ ​ At 1 January ​ 18 ​ 20 Receipts ​ – ​ (2) At 31 December ​ 18 ​ 18 ​ ​ ​ ​ ​ Acquisition consideration liability ​ ​ ​ ​ At 1 January ​ (78) ​ (84) Arising on acquisitions ​ – ​ (32) Payments ​ 13 ​ 20 Remeasurements ​ 33 ​ 19 Discount unwind ​ – ​ (1) At 31 December ​ (32) ​ (78) ​

PROVISIONS AND CONTINGENCIES (T

PROVISIONS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2023
PROVISIONS AND CONTINGENCIES
Schedule of provisions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restructuring ​ ​ ​ ​ ​ ​ ​ and ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ rationalisation ​ ​ ​ Legal and other ​ ​ ​ ​ ​ ​ provisions ​ Metal-on-metal ​ provisions ​ Total ​ ​ $ million $ million $ million $ million At 1 January 2022 ​ ​ ​ 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 Charge to income statement ​ ​ ​ 220 ​ – ​ 9 ​ 229 Release to income statement ​ ​ ​ – ​ (8) ​ (19) ​ (27) Unwinding of discount ​ ​ ​ – ​ 5 ​ – ​ 5 Utilised ​ ​ ​ (160) ​ (87) ​ (7) ​ (254) Exchange adjustment ​ ​ ​ 1 ​ – ​ – ​ 1 At 31 December 2023 ​ ​ ​ 91 ​ 149 ​ 41 ​ 281 Provisions – due within one year ​ ​ ​ 91 ​ 111 ​ 31 ​ 233 Provisions – due after one year ​ ​ ​ – ​ 38 ​ 10 ​ 48 At 31 December 2023 ​ ​ ​ 91 ​ 149 ​ 41 ​ 281 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

RETIREMENT BENEFIT OBLIGATIONS

RETIREMENT BENEFIT OBLIGATIONS (Table)	12 Months Ended
	Dec. 31, 2023
RETIREMENT BENEFIT OBLIGATIONS
Schedule of the Group's retirement benefit obligations	​ ​ ​ ​ ​ ​ ​ 2023 2022 ​ $ million $ million Funded plans: ​ ​ UK Plan ​ 61 ​ 114 US Plan ​ 8 ​ 24 Other plans ​ (13) ​ (5) ​ ​ 56 ​ 133 Unfunded plans: ​ ​ Other plans ​ (65) ​ (52) Retirement healthcare ​ (10) ​ (10) ​ ​ (19) ​ 71 Amount recognised on the balance sheet – liability ​ (88) ​ (70) Amount recognised on the balance sheet – asset ​ 69 ​ 141
Reconciliation of benefit obligations and pension assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ ​ ​ ​ ​ 2022 ​ Obligation Asset Total Obligation ​ Asset ​ Total ​ $ million $ million $ million $ million $ million $ million Amounts recognised on the balance sheet at beginning of the period (984) 1,055 71 (1,582) 1,637 55 Income statement expense: ​ ​ ​ ​ Current service cost (6) ​ – ​ (6) (9) ​ – (9) Settlements ​ 75 ​ (79) ​ (4) ​ 4 ​ (4) ​ – Interest (expense)/income (45) ​ 49 ​ 4 (29) ​ 30 1 Administration costs and taxes (5) ​ – ​ (5) (3) ​ – (3) Costs recognised in income statement 19 (30) (11) (37) 26 (11) Remeasurements: Actuarial (loss)/gain due to liability experience (14) ​ – ​ (14) (43) ​ – (43) Actuarial gain due to financial assumptions change (25) ​ – ​ (25) 503 ​ – 503 Actuarial gain due to demographic assumptions 14 ​ – ​ 14 1 ​ – 1 Return on plan assets (less)/greater than discount rate – ​ (64) ​ (64) – ​ (431) (431) Remeasurements recognised in OCI (25) (64) (89) 461 (431) 30 Cash: Employer contributions – ​ 7 ​ 7 – ​ 6 6 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 67 ​ (69) ​ (2) 81 ​ (83) (2) Net cash 66 (59) 7 80 (74) 6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange movements (37) ​ 40 ​ 3 94 ​ (103) (9) Amount recognised on the balance sheet (961) 942 (19) (984) 1,055 71 Amount recognised on the balance sheet – liability (229) ​ 141 ​ (88) (194) ​ 124 (70) Amount recognised on the balance sheet – asset (732) ​ 801 ​ 69 (790) ​ 931 141 Represented by: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ ​ ​ ​ ​ 2022 ​ Obligation Asset Total Obligation Asset Total ​ $ million $ million $ million $ million $ million $ million UK Plan ​ (457) ​ 518 ​ 61 ​ (438) ​ 552 ​ 114 US Plan ​ (259) ​ 267 ​ 8 ​ (336) ​ 360 ​ 24 Other Plans ​ (245) ​ 157 ​ (88) ​ (210) ​ 143 ​ (67) Total ​ (961) ​ 942 ​ (19) ​ (984) ​ 1,055 ​ 71
Market value of the US, UK and Other Plans assets	​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 ​ $ million $ million $ million UK Plan: ​ ​ ​ Assets with a quoted market price: ​ ​ ​ Cash and cash equivalents ​ 61 ​ 2 ​ 4 Equity securities ​ – ​ 3 ​ 84 Other bonds ​ – ​ 30 ​ 50 Short dated credit fund ​ – ​ 81 ​ 126 Liability driven investments ​ – ​ 225 ​ 370 Diversified growth funds ​ – ​ 55 ​ 89 ​ ​ 61 ​ 396 ​ 723 Other assets: ​ ​ ​ Insurance contract ​ 457 ​ 156 ​ 233 Market value of assets ​ 518 ​ 552 ​ 956 US Plan: ​ ​ ​ Assets with a quoted market price: ​ ​ ​ ​ Cash and cash equivalents ​ 267 ​ 120 ​ 6 Equity securities ​ – ​ – ​ 50 Government bonds – fixed interest ​ – ​ 43 ​ 201 Corporate bonds ​ – ​ 197 ​ 246 Market value of assets ​ 267 ​ 360 ​ 503 Other Plans: ​ ​ ​ Assets with a quoted market price: ​ ​ ​ ​ Cash and cash equivalents ​ 7 ​ 7 ​ 5 Equity securities ​ 50 ​ 49 ​ 55 Government bonds – fixed interest ​ 5 ​ 7 ​ 5 Government bonds – index linked ​ – ​ – ​ 4 Corporate and other bonds ​ 10 ​ 10 ​ 11 Insurance contracts ​ 23 ​ 21 ​ 33 Property ​ 28 ​ 22 ​ 23 Other quoted securities ​ 10 ​ 5 ​ 8 ​ ​ 133 ​ 121 ​ 144 Other assets: ​ ​ ​ Insurance contracts ​ 24 ​ 22 ​ 34 Market value of assets ​ 157 ​ 143 ​ 178 Total market value of assets ​ 942 ​ 1,055 ​ 1,637
Principal actuarial assumptions	​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ % per annum % per annum % per annum UK Plan: ​ ​ ​ Discount rate ​ 4.5 ​ 4.8 ​ 1.9 Future salary increases ​ n/a ​ n/a ​ n/a Future pension increases ​ 3.0 ​ 3.3 ​ 3.4 Inflation (RPI) ​ 3.1 ​ 3.3 ​ 3.4 Inflation (CPI) ​ 2.5 ​ 2.3 ​ 2.7 US Plan: ​ ​ ​ ​ ​ ​ Discount rate ​ 5.0 ​ 5.3 ​ 2.7 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	​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ years years years Life expectancy at age 60 ​ ​ ​ UK Plan: ​ ​ ​ Males ​ 26.9 ​ 27.4 ​ 27.6 Females ​ 29.7 ​ 30.1 ​ 30.1 US Plan: ​ ​ ​ ​ ​ ​ Males ​ 25.0 ​ 24.9 ​ 24.7 Females ​ 27.2 ​ 27.1 ​ 26.8 Life expectancy at age 60 in 20 years’ time ​ ​ ​ UK Plan: ​ ​ ​ Males ​ 28.4 ​ 28.9 ​ 29.1 Females ​ 31.1 ​ 31.5 ​ 31.5 US Plan: ​ ​ ​ ​ ​ ​ Males ​ 25.0 ​ 24.9 ​ 24.6 Females ​ 27.6 ​ 27.6 ​ 27.3
Sensitivity analysis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase/(decrease) in pension obligation ​ Increase /(decrease) in pension cost $ million +50bps/+1yr -50bps/-1yr +50bps/+1 yr -50bps/-1yr UK Plan: ​ ​ ​ ​ ​ ​ ​ Discount rate (29.0) ​ 33.0 ​ – ​ – Inflation 21.0 ​ (24.0) ​ – ​ – Mortality 18.0 ​ (11.0) ​ – ​ – US Plan: ​ ​ ​ ​ ​ ​ ​ Discount rate (10.0) ​ 11.0 ​ – ​ – 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. The UK buy-in in June 2023 removed all remaining material pension liability exposure from the balance sheet, hence, eliminating the interest rate risk for the UK Plan. Following the completion of the US buy-out on 4 January 2024, no further interest risk is linked to the valuation of liability for the US Plan as no liability will remain in the Plan. 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. Following the full UK Pension buy-in in 2023, the residual inflation risks associated with the UK Plan have been transferred to the UK Plan’s Life Insurance Partners. 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, following the full buy-in for the UK Plan, the investment risk has been transferred to the UK Plan’s Life Insurer Partners. 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. Following the completion of the US buy-out on 4 January 2024, no further investment risk is linked to the valuation of liability for the US Plan as no liability will remain in the Plan. 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. Following the full buy-in, the UK Plan has entered into insurance contract which covers all of the pensioners’ obligations. Following the completion of the US buy-out on 4 January 2024, there is no further longevity risk linked to the valuation of liability for the US Plan as no liability will remain in the Plan.

EQUITY (Table)

EQUITY (Table)	12 Months Ended
	Dec. 31, 2023
EQUITY.
Schedule of share capital	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ordinary shares ( 20 ¢) ​ Deferred shares (£1.00) ​ Total ​ Thousand $ million Thousand $ million $ million Authorised ​ ​ ​ ​ ​ At 31 December 2021 ​ 1,223,591 ​ 245 ​ 50 ​ – ​ 245 At 31 December 2022 ​ 1,223,591 ​ 245 ​ 50 ​ – ​ 245 At 31 December 2023 ​ 1,223,591 ​ 245 ​ 50 ​ – ​ 245 Allotted, issued and fully paid ​ ​ ​ ​ ​ At 1 January 2021 ​ 884,885 ​ 177 ​ 50 ​ – ​ 177 Share options ​ 306 ​ – ​ – ​ – ​ – Shares cancelled ​ – ​ – ​ – ​ – ​ – 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 Share options ​ 23 ​ – ​ – ​ – ​ – At 31 December 2023 ​ 877,673 ​ 175 ​ 50 ​ – ​ 175
Schedule of the capital	​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Share capital ​ 175 ​ 175 ​ 177 Share premium ​ 615 ​ 615 ​ 614 Capital redemption reserve ​ 20 ​ 20 ​ 18 Treasury shares ​ (94) ​ (118) ​ (120) Retained earnings and other reserves ​ 4,501 ​ 4,567 ​ 4,879 ​ ​ 5,217 ​ 5,259 ​ 5,568
Schedule of treasury shares	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employees’ ​ ​ ​ ​ Treasury ​ Share Trust ​ Total ​ $ million $ million $ million At 1 January 2022 ​ 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 Shares transferred from treasury ​ (13) ​ 13 ​ – Shares transferred to Group beneficiaries ​ (1) ​ (23) ​ (24) At 31 December 2023 ​ 53 ​ 41 ​ 94 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employees’ ​ ​ ​ ​ Treasury ​ Share Trust ​ Total ​ ​ Number ​ Number ​ Number ​ ​ of shares ​ of shares ​ of shares ​ million million million At 1 January 2022 ​ 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 Shares transferred from treasury ​ (0.8) ​ 0.8 ​ – Shares transferred to Group beneficiaries ​ (0.1) ​ (1.6) ​ (1.7) At 31 December 2023 ​ 3.4 ​ 2.4 ​ 5.8
Schedule of dividends	​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million The following dividends were declared and paid in the year: ​ ​ ​ Ordinary final of 23.1¢ for 2022 (2021: 23.1¢ , 2020: 23.1¢ ) paid 17 May 2023 ​ 201 ​ 202 ​ 203 Ordinary interim of 14.4¢ for 2023 (2022: 14.4¢ , 2021: 14.4¢ ) paid 1 November 2023 ​ 126 ​ 125 ​ 126 ​ ​ 327 ​ 327 ​ 329

CASH FLOW STATEMENT (Tables)

CASH FLOW STATEMENT (Tables)	12 Months Ended
	Dec. 31, 2023
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 2021 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 At 31 December 2022 350 (6) (154) (2,712) – (13) (2,535) Net cash flow/debt movement (48) ​ 8 ​ (604) ​ 429 ​ (4) ​ – (219) Exchange adjustment – ​ (4) ​ – ​ (39) ​ 3 ​ 20 (20) Corporate bond issuance expense – ​ – ​ – ​ 1 ​ – ​ – ​ 1 IFRS 16 lease liabilities movement ​ – ​ – ​ (6) ​ 3 ​ – ​ – ​ (3) Net debt including lease liabilities at 31 December 2023 302 (2) (764) (2,318) (1) 7 (2,776) ​ Reconciliation of net cash flow to movement in net debt including lease liabilities ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Net cash flow from cash net of overdrafts ​ (40) ​ (930) ​ (459) Settlement of currency swaps ​ (4) ​ (3) ​ 4 Net cash flow from borrowings ​ (175) ​ 396 ​ 267 Change in net debt from net cash flow ​ (219) ​ (537) ​ (188) IFRS 16 lease liabilities ​ (3) ​ 1 ​ 7 Exchange adjustment ​ (20) ​ 47 ​ 59 Corporate bond issuance expense ​ 1 ​ 3 ​ (1) Change in net debt in the year ​ (241) ​ (486) ​ (123) Opening net debt ​ (2,535) ​ (2,049) ​ (1,926) Closing net debt ​ (2,776) ​ (2,535) ​ (2,049) ​ Cash and cash equivalents For the purposes of the Group cash flow statement, cash and cash equivalents at 31 December 2023 comprise cash at bank net of bank overdrafts. ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ $ million $ million $ million Cash at bank ​ 302 ​ 350 ​ 1,290 Bank overdrafts ​ (2) ​ (6) ​ (5) Cash and cash equivalents ​ 300 ​ 344 ​ 1,285 ​ ​ Group financial statements continued Notes to the Group accounts continued 20 continued 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 on the management of 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 2023 ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million ​ $ million Debt ​ 151 ​ (326) ​ – ​ 52 ​ (4) ​ – ​ – ​ – ​ (127) Equity – ​ – ​ – ​ – ​ – ​ 327 ​ – ​ – 327 Total 151 (326) – 52 (4) 327 – – 200 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 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 1 This includes drawdown and repayment of the syndicated revolving credit facility.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2023
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

OTHER NOTES TO THE ACCOUNTS (Ta

OTHER NOTES TO THE ACCOUNTS (Tables)	12 Months Ended
	Dec. 31, 2023
OTHER NOTES TO THE ACCOUNTS
Schedule of remuneration of executive officers (including Non-Executive Directors)	​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 ​ $ million $ million $ million Short-term employee benefits ​ 21 ​ 17 ​ 16 Share-based payments expense ​ 9 ​ 10 ​ 7 Pension and post-employment benefit entitlements ​ 1 ​ 2 ​ 1 ​ ​ 31 ​ 29 ​ 24

BASIS OF PREPARATION (Details)

BASIS OF PREPARATION (Details) $ in Millions			12 Months Ended
	Dec. 31, 2023 USD ($)		Dec. 31, 2023 USD ($)		Dec. 31, 2023 USD ($)		Dec. 31, 2023 USD ($) £ / $		Dec. 31, 2023 USD ($) € / $		Dec. 31, 2023 USD ($) SFr / $		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 ($) € / $		Dec. 31, 2021 USD ($) SFr / $		Dec. 31, 2023 £ / $	Dec. 31, 2023 € / $	Dec. 31, 2023 SFr / $	Dec. 31, 2022 £ / $	Dec. 31, 2022 € / $	Dec. 31, 2022 SFr / $	Dec. 31, 2021 £ / $	Dec. 31, 2021 € / $	Dec. 31, 2021 SFr / $	Dec. 31, 2020 USD ($)
Disclosure of detailed informations about basis of preparation [line items]
Net cash and cash equivalents	$ 300	[1]	$ 300	[1]	$ 300	[1]	$ 300	[1]	$ 300	[1]	$ 300	[1]	$ 344	[1]	$ 344	[1]	$ 344	[1]	$ 344	[1]	$ 1,285	[1]	$ 1,285	[1]	$ 1,285	[1]	$ 1,285	[1]										$ 1,751
Net Debt	2,577		2,577		2,577		2,577		2,577		2,577		2,339		2,339		2,339		2,339
Borrowings	2,885		2,885		2,885		2,885		2,885		2,885		2,676		2,676		2,676		2,676
Inventories	2,395		2,395		2,395		2,395		2,395		2,395		2,205		2,205		2,205		2,205
Other provisions	281		281		281		$ 281		$ 281		$ 281		327		$ 327		$ 327		$ 327		357		$ 357		$ 357		$ 357
Impairment of intangible assets			37										39								2
Exchange rates
Average rates							1.24		1.08		1.11				1.23		1.05		1.05				1.38		1.18		1.09
Year end rates																													1.27	1.10	1.19	1.21	1.07	1.08	1.35	1.13	1.10
Impairment loss recognised in profit or loss, goodwill			84
Impairment loss recognised in profit or loss, intangible assets other than goodwill			37										39								$ 2
Engage
Disclosure of detailed informations about basis of preparation [line items]
Impairment of intangible assets			37
Exchange rates
Impairment loss recognised in profit or loss, goodwill			84
Impairment loss recognised in profit or loss, intangible assets other than goodwill			37
Impairment provision
Disclosure of detailed informations about basis of preparation [line items]
Inventories	(544)		(544)		(544)		$ (544)		$ (544)		$ (544)		(504)		$ (504)		$ (504)		$ (504)
Committed facilities
Disclosure of detailed informations about basis of preparation [line items]
Committed facilities	3,600		3,600		3,600		3,600		3,600		3,600		$ 3,700		$ 3,700		$ 3,700		$ 3,700
Borrowings	$ 2,900		2,900		2,900		2,900		2,900		2,900
Committed facilities | Weighted average
Disclosure of detailed informations about basis of preparation [line items]
Debt instrument term	5 years 2 months 12 days
Private placement debt
Disclosure of detailed informations about basis of preparation [line items]
Borrowings due within one year	$ 405		405		405		405		405		405
Borrowings Subject To Financial Covenants	$ 1,030		$ 1,030		$ 1,030		$ 1,030		$ 1,030		$ 1,030
Leverage Ratio					3.5
Orthopaedics
Disclosure of detailed informations about basis of preparation [line items]
Percentage of inventory					66%
Percentage of total provision for excess and obsolete inventory					82%
[1] Cash and cash equivalents is net of bank overdrafts of $2 m (2022: $ 6 m, 2021: $ 5 m).

BUSINESS SEGMENT INFORMATION (D

BUSINESS SEGMENT INFORMATION (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) item segment customer	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Disclosure of operating segments [line items]
Number of global franchise divisions | item	3
Number of reportable segments | segment	3
Revenue	$ 5,549	$ 5,215	$ 5,212
Revenue recognised, rebates	383
Accrual for rebates	$ 92	103
Number of major customers | customer	0
United Kingdom
Disclosure of operating segments [line items]
Revenue	$ 201	186	189
United States of America
Disclosure of operating segments [line items]
Revenue	2,979	2,764	2,658
China
Disclosure of operating segments [line items]
Revenue	275	319	352
Orthopaedics
Disclosure of operating segments [line items]
Revenue	2,214	2,113	2,156
Sports Medicine & ENT
Disclosure of operating segments [line items]
Revenue	1,729	1,590	1,560
Advanced Wound Management
Disclosure of operating segments [line items]
Revenue	1,606	1,512	1,496
Sports Medicine Joint Repair | Sports Medicine & ENT
Disclosure of operating segments [line items]
Revenue	945	870	839
Arthroscopic Enabling Technologies | Sports Medicine & ENT
Disclosure of operating segments [line items]
Revenue	588	567	590
ENT (Ear, Nose and Throat) | Sports Medicine & ENT
Disclosure of operating segments [line items]
Revenue	196	153	131
Knee Implants | Orthopaedics
Disclosure of operating segments [line items]
Revenue	940	899	876
Hip Implants | Orthopaedics
Disclosure of operating segments [line items]
Revenue	599	584	612
Other Reconstruction | Orthopaedics
Disclosure of operating segments [line items]
Revenue	111	87	92
Trauma & Extremities | Orthopaedics
Disclosure of operating segments [line items]
Revenue	564	543	576
Advanced Wound Management
Disclosure of operating segments [line items]
Revenue	1,606	1,512	1,496
Advanced Wound Management | Established Markets
Disclosure of operating segments [line items]
Revenue	1,406	1,319	1,327
Advanced Wound Management | Emerging Markets
Disclosure of operating segments [line items]
Revenue	200	193	169
Advanced Wound Care | Advanced Wound Management
Disclosure of operating segments [line items]
Revenue	725	712	731
Advanced Wound Bioactives | Advanced Wound Management
Disclosure of operating segments [line items]
Revenue	553	520	496
Advanced Wound Devices | Advanced Wound Management
Disclosure of operating segments [line items]
Revenue	328	280	269
Orthopaedics, Sports Medicine and Ear Nose and Throat [Member]
Disclosure of operating segments [line items]
Revenue	3,943	3,703	3,716
Orthopaedics, Sports Medicine and Ear Nose and Throat [Member] | Established Markets
Disclosure of operating segments [line items]
Revenue	3,184	2,949	2,969
Orthopaedics, Sports Medicine and Ear Nose and Throat [Member] | Emerging Markets
Disclosure of operating segments [line items]
Revenue	759	754	747
Orthopaedics, Sports Medicine and ENT and Advanced Wound Management
Disclosure of operating segments [line items]
Revenue	5,549	5,215	5,212
Orthopaedics, Sports Medicine and ENT and Advanced Wound Management | Established Markets
Disclosure of operating segments [line items]
Revenue	4,590	4,268	4,296
Orthopaedics, Sports Medicine and ENT and Advanced Wound Management | Emerging Markets
Disclosure of operating segments [line items]
Revenue	$ 959	$ 947	$ 916

BUSINESS SEGMENT INFORMATION -

BUSINESS SEGMENT INFORMATION - Trading and operating profit by business segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of operating segments [line items]
Operating profit	$ 970	$ 901	$ 936
Corporate costs	(403)	(390)	(364)
Acquisition and disposal related items	60	4	7
Restructuring and rationalisation expenses	220	167	113
Amortisation and impairment of acquisition intangibles	207	205	172
Legal and other	58	75	51
Operating profit	425	450	593
Increase in legal provision relating to metal-on-metal hip claims	(8)
Credit for insurance recoveries	0	7	35
Impairment loss recognised in profit or loss, goodwill	84
Impairment loss recognised in profit or loss, intangible assets other than goodwill	37	39	2
Reportable segments
Disclosure of operating segments [line items]
Operating profit	1,373	1,291	1,300
Orthopaedics
Disclosure of operating segments [line items]
Operating profit	398	383	367
Sports Medicine & ENT
Disclosure of operating segments [line items]
Operating profit	503	472	459
Advanced Wound Management
Disclosure of operating segments [line items]
Operating profit	472	$ 436	$ 474
Engage
Disclosure of operating segments [line items]
Impairment loss recognised in profit or loss	109
Impairment loss recognised in profit or loss, goodwill	84
Impairment loss recognised in profit or loss, intangible assets other than goodwill	37
Inventory write-down	21
Gains (losses) on revaluation of contingent consideration	$ 33

BUSINESS SEGMENT INFORMATION _2

BUSINESS SEGMENT INFORMATION - Assets and liabilities by business segment and geography (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of operating segments [line items]
Non-current assets	$ 5,614	$ 5,792	$ 6,113
United Kingdom
Disclosure of operating segments [line items]
Non-current assets	525	487	541
United States of America
Disclosure of operating segments [line items]
Non-current assets	3,692	3,918	4,125
Other Location
Disclosure of operating segments [line items]
Non-current assets	$ 1,397	$ 1,387	$ 1,447

OPERATING PROFIT (Details)

OPERATING PROFIT (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of attribution of expenses by nature to their function [line items]
Revenue	$ 5,549	$ 5,215	$ 5,212
Cost of goods sold	(1,730)	(1,540)	(1,543)
Gross profit	3,819	3,675	3,669
Research and development expenses	(339)	(345)	(356)
Marketing, selling and distribution expenses	(2,218)	(2,066)	(2,013)
Administrative expenses	(837)	(814)	(707)
Selling, general and administrative expenses	(3,055)	(2,880)	(2,720)
Operating profit	425	450	593
Restructuring and rationalisation expenses	223	168	113
Acquisition and disposal related items	60	4	7
Amortisation and Impairment of Acquisition Intangibles	207	205	172
Other operating income		(7)	(35)
Amortisation of intangibles	221	229	237
Impairment of intangible assets	37	39	2
Impairment of Engage's goodwill	84
Impairment of property, plant and equipment	31	30	1
Fair value remeasurement of trade investments	4		1
Depreciation of property, plant and equipment	306	319	326
Loss on disposal of property, plant and equipment and intangible assets	18	11	14
Advertising costs	88	92	81
Other operating income	0	7	35
Insurance Recoveries Received	0	7	35
Depreciation of right-of-use assets	54	56	56
Engage
Disclosure of attribution of expenses by nature to their function [line items]
Impairment of intangible assets	37
Impairment of Engage's goodwill	84
Cost of goods sold
Disclosure of attribution of expenses by nature to their function [line items]
Charge relating to legal and other items	27	4	7
Restructuring and rationalisation expenses	73	20	29
Acquisition and disposal related items	3	5
Research and development expenses
Disclosure of attribution of expenses by nature to their function [line items]
Charge relating to legal and other items	21	35	39
Restructuring and rationalisation expenses	18	5	0
Acquisition and disposal related items	1	5	7
Selling, general and administrative expenses
Disclosure of attribution of expenses by nature to their function [line items]
Charge relating to legal and other items	10	36	5
Restructuring and rationalisation expenses	129	142	84
Acquisition and disposal related items	56
Change for the year - amortisation	51	56	65
Amortisation and Impairment of Acquisition Intangibles	$ 207	205	172
Credit on acquisition and disposal related items		$ 6	$ 0

OPERATING PROFIT - Information

OPERATING PROFIT - Information about the nature and cost of services (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) employee	Dec. 31, 2022 USD ($) employee	Dec. 31, 2021 USD ($) employee	Dec. 31, 2020 USD ($)
Disclosure of operating profit [line items]
Wages and salaries	$ 1,683	$ 1,565	$ 1,562
Social security costs	242	215	223
Pension costs (including retirement healthcare	95	88	93
Share-based payments	39	40	41	$ 41
Staff costs	$ 2,059	$ 1,908	$ 1,919
Average number of employees | employee	19,081	19,094	18,976
Audit services:
Group accounts	$ 7.9	$ 7.2	$ 5.5
Local statutory audit pursuant to legislation	2.1	2.2	2
Audit related services	0.3	0.4	0.1
Total auditor's remuneration	10.3	9.8	7.6
Expense of restructuring activities	223	168	113
United Kingdom
Audit services:
Total auditor's remuneration	6	5.3	3.5
Outside the UK
Audit services:
Total auditor's remuneration	$ 4.3	$ 4.5	$ 4.1

INTEREST AND OTHER FINANCE CO_3

INTEREST AND OTHER FINANCE COSTS - Interest Income/(expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
INTEREST AND OTHER FINANCE COSTS
Interest income	$ 34	$ 14	$ 6
Interest expense:
Bank borrowings	(10)	(3)	(3)
Private placement notes	(38)	(39)	(46)
Lease liabilities	(8)	(6)	(7)
Corporate bond	(46)	(27)	(21)
Other	(30)	(5)	(3)
Total interest expense	(132)	(80)	(80)
Net interest expense	$ (98)	$ (66)	$ (74)

INTEREST AND OTHER FINANCE CO_4

INTEREST AND OTHER FINANCE COSTS - Other Finance Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
INTEREST AND OTHER FINANCE COSTS
Retirement benefit net interest expense	$ (1)	$ (2)	$ (3)
Unwinding of discount	(6)	(9)	(10)
Other		3	(4)
Other finance costs	$ (7)	$ (8)	$ (17)

TAXATION - Taxation attributabl

TAXATION - Taxation attributable to the Group (Details) - USD ($) $ in Millions		12 Months Ended
	Apr. 01, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of geographical areas [line items]
UK corporation tax rate (as a percent)	25%	23.50%	19%	19%
Current taxation:
Current income tax charge		$ 180	$ 121	$ 140
Adjustments in respect of prior periods		(45)	(10)	(33)
Total current taxation		135	111	107
Deferred taxation:
Origination and reversal of temporary differences		(116)	(77)	(35)
Changes in tax rates		(2)	(5)	(14)
Adjustments to estimated amounts arising in prior periods		10	(17)	4
Total deferred taxation		(108)	(99)	(45)
Total taxation charge as per the income statement		27	12	62
Taxation in other comprehensive income		(18)	5	27
Taxation in equity			3	1
Taxation charge attributable to the Group		9	20	90
Net prior period adjustment benefit		35	27	29
Income tax adjustment from restructuring and rationalisation-related costs, acquisition and disposal-related items, amortisation and impairment of acquisition intangibles, legal and other items		(113)	(127)	(85)
UK
Current taxation:
Current income tax charge		15	17	14
Overseas
Current taxation:
Current income tax charge		$ 165	$ 104	$ 126

TAXATION - Factors affecting fu

TAXATION - Factors affecting future tax charges (Details) - USD ($) $ in Millions		12 Months Ended
	Apr. 01, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of expected tax charge
Current tax payable, uncertain tax positions		$ 121	$ 150
Other interest on provision for uncertain tax positions		13	10
Tax receivables		33	37
Deferred tax assets		$ 274	$ 177
UK corporation tax rate (as a percent)	25%	23.50%	19%	19%
Profit before taxation		$ 290	$ 235	$ 586
Expected taxation at UK statutory rate		68	45	111
Differences in overseas taxation rates		(24)	(19)	(17)
R&D credits		(7)	(10)	(12)
Tax losses and other deferred tax assets not recognised				7
Recognition of previously unrecognised tax losses		(14)	(4)	(2)
Expenses not deductible for tax purposes		38	31	22
Change in tax rates		2	5	14
Withholding tax on unremitted earnings		3	1	(4)
Adjustments in respect of prior years		(35)	(27)	(29)
Total taxation charge as per the income statement		27	12	62
Non taxable accounting gains on UK owned investments				$ 17
UK
Reconciliation of expected tax charge
Tax effect of non-taxable impairments of investments		$ 7	$ 7

TAXATION - OECD BEPS 2.0 - Pill

TAXATION - OECD BEPS 2.0 - Pillar Two (Details)	12 Months Ended
	Dec. 31, 2024
Forecast [Member]
Disclosure of geographical areas [line items]
Increase in effective tax rate resulting from Pillar Two reform	1.50%

TAXATION - Deferred taxation (D

TAXATION - Deferred taxation (Details) - USD ($) $ in Millions		12 Months Ended
	Apr. 01, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Movements in the main components of deferred tax assets and liabilities
Balance at the beginning of the period		$ 141	$ 57
Exchange adjustment		(2)	(7)
Movement in income statement - current year		116	77
Movement in income statement - prior years		(10)	17
Movement in other comprehensive income		18	(5)	$ (27)
Movement in equity			(3)
Changes in tax rate		2	5
Balance at the end of the period		265	141	$ 57
Represented by:
Deferred tax assets		274	177
Deferred tax liabilities		(9)	(36)
Net asset position		265	141
Deferred tax assets, inventory		125	117
Deferred tax Assets, bad debt provisions		8	8
Deferred tax assets, provisions and other short-term temporary differences		169	153
Unused gross trading tax losses		1,145	839
Gross unused research and development tax credits		16	24
Gross unused capital losses		102	97
Trading and non-trading tax losses resulting in deferred tax assets		885	541
Research and development tax credits resulting in deferred tax assets		$ 16	$ 12
UK corporation tax rate (as a percent)	25%	23.50%	19%	19%
Not later than ten years
Represented by:
Unused tax losses		$ 262
Accelerated tax depreciation
Movements in the main components of deferred tax assets and liabilities
Balance at the beginning of the period		(75)	$ (45)
Movement in income statement - current year		(15)	(28)
Changes in tax rate		(1)	(2)
Balance at the end of the period		(91)	(75)	$ (45)
Intangibles
Movements in the main components of deferred tax assets and liabilities
Balance at the beginning of the period		(181)	(199)
Exchange adjustment		(1)	1
Movement in income statement - current year		43	15
Movement in income statement - prior years		1	4
Changes in tax rate			(2)
Balance at the end of the period		(138)	(181)	(199)
Retirement benefit obligation
Movements in the main components of deferred tax assets and liabilities
Balance at the beginning of the period		(21)	(18)
Exchange adjustment		(3)	2
Movement in income statement - current year			1
Movement in income statement - prior years			1
Movement in other comprehensive income		18	(7)
Balance at the end of the period		(6)	(21)	(18)
Losses and other tax attributes
Movements in the main components of deferred tax assets and liabilities
Balance at the beginning of the period		140	130
Exchange adjustment		1
Movement in income statement - current year		63	1
Movement in income statement - prior years		(10)	9
Changes in tax rate		4
Balance at the end of the period		198	140	130
Inventory, provisions and other differences
Movements in the main components of deferred tax assets and liabilities
Balance at the beginning of the period		278	189
Exchange adjustment		1	(10)
Movement in income statement - current year		25	88
Movement in income statement - prior years		(1)	3
Movement in other comprehensive income			2
Movement in equity			(3)
Changes in tax rate		(1)	9
Balance at the end of the period		302	278	$ 189
Represented by:
Deferred tax assets		302	278
Trading tax losses
Represented by:
Deferred tax assets		$ 198	$ 140
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, 2023	Dec. 31, 2022	Dec. 31, 2021
Earnings
Attributable profit for the year	[1]	$ 263	$ 223	$ 524
Adjusted attributable profit (see below)		722	713	710
Attributable profit is reconciled to adjusted attributable profit as follows:
Attributable profit for the year	[1]	263	223	524
Acquisition-related costs		78	162	(73)
Restructuring and rationalisation expenses		223	168	113
Amortisation and impairment of acquisition intangibles		207	205	172
Legal and other		64	82	59
Taxation on excluded items		(113)	(127)	(85)
Adjusted attributable profit (see below)		722	713	710
Acquisition and disposal related items charged within operating profit		60	4	7
Acquisition and disposal related items charged within share of result of associates		18	158	(5)
Gain on disposal of interest in associate		0	0	75
Amortisation and impairment of acquisition intangibles cost charged within operating profit		207	205	172
Unwinding of discount		6	9	10
Legal and other charges		58	75	51
Restructuring and rationalisation costs charged within operating profit		220	167	113
Restructuring and rationalisation costs charged within share of result of associates		3	1	0
Bioventus LLC
Earnings
Attributable profit for the year		(152)	(129)
Attributable profit is reconciled to adjusted attributable profit as follows:
Attributable profit for the year		(152)	(129)
Gain on disposal of interest in associate		0
Metal-on-metal
Attributable profit is reconciled to adjusted attributable profit as follows:
Unwinding of discount		$ 6	$ 7	$ 8
[1] Attributable to equity holders of the Company and wholly derived from continuing operations.

EARNINGS PER ORDINARY SHARE - E

EARNINGS PER ORDINARY SHARE - Earnings per ordinary share (Details) - $ / shares shares in Millions		12 Months Ended
		Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Earnings per share [abstract]
Basic weighted number of shares		871	872	877
Dilutive impact of share options outstanding		2	1	1
Diluted weighted average number of shares		873	873	878
Earnings per ordinary share
Basic	[1]	$ 0.302	$ 0.255	$ 0.598
Diluted	[1]	0.301	0.255	0.597
Adjusted, Basic		0.828	0.818	0.809
Adjusted, Diluted		$ 0.827	$ 0.816	$ 0.808
[1] Attributable to equity holders of the Company and wholly derived from continuing operations.

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	$ 1,455
Charges	306	$ 319	$ 326
Impairment	(31)	(30)	(1)
Property, plant and equipment at end of period	1,470	1,455
Reconciliation of changes in property, plant and equipment
Contractual commitments for acquisition of property, plant and equipment	12	20
Disclosure of quantitative information about leases for lessee [abstract]
Depreciation charge in the year	54	56	56
Cost
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	4,024	3,967
Exchange adjustment	43	(129)
Acquisitions - Property, plant and equipment		2
Additions	379	340
Disposals	(180)	(153)
Impairment	(5)	(3)
Reclassifications	4
Transfers	(23)
Property, plant and equipment at end of period	4,242	4,024	3,967
Amortisation and impairment
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	(2,569)	(2,454)
Exchange adjustment	(27)	89
Charges	306	319
Disposals	160	142
Impairment	(26)	(27)
Reclassifications	(4)
Property, plant and equipment at end of period	$ (2,772)	(2,569)	(2,454)
Property, plant and equipment other than buildings | Minimum
Reconciliation of changes in property, plant and equipment
Useful lives, property, plant and equipment	3 years
Property, plant and equipment other than buildings | Maximum
Reconciliation of changes in property, plant and equipment
Useful lives, property, plant and equipment	20 years
Land and buildings
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	$ 442
Property, plant and equipment at end of period	453	442
Right-of-use assets	157
Disclosure of quantitative information about leases for lessee [abstract]
Additions	45
Depreciation charge in the year	42
Right of use assets	157
Land and buildings | Cost
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	726	688
Exchange adjustment	8	(18)
Additions	69	51
Disposals	(39)	(45)
Reclassifications	4
Transfers	27	50
Property, plant and equipment at end of period	795	726	688
Land and buildings | Amortisation and impairment
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	(284)	(249)
Exchange adjustment	(4)	8
Charges	63	62
Disposals	34	37
Impairment	(21)	(18)
Reclassifications	(4)
Property, plant and equipment at end of period	(342)	(284)	(249)
Land
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	22
Property, plant and equipment at end of period	$ 37	22
Buildings | Minimum
Reconciliation of changes in property, plant and equipment
Useful lives, property, plant and equipment	20 years
Buildings | Maximum
Reconciliation of changes in property, plant and equipment
Useful lives, property, plant and equipment	50 years
Instruments
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	$ 344
Property, plant and equipment at end of period	392	344
Instruments | Cost
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	1,710	1,694
Exchange adjustment	10	(66)
Acquisitions - Property, plant and equipment		2
Additions	211	129
Disposals	(88)	(58)
Transfers	1	9
Property, plant and equipment at end of period	1,844	1,710	1,694
Instruments | Amortisation and impairment
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	(1,366)	(1,292)
Exchange adjustment	(8)	52
Charges	154	172
Disposals	76	58
Impairment	(1)	(8)
Transfers	1	(4)
Property, plant and equipment at end of period	(1,452)	(1,366)	(1,292)
Other
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	413
Property, plant and equipment at end of period	455	413
Right-of-use assets	28
Disclosure of quantitative information about leases for lessee [abstract]
Additions	11
Depreciation charge in the year	12
Right of use assets	28
Other | Cost
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	1,332	1,282
Exchange adjustment	21	(39)
Additions	29	24
Disposals	(51)	(49)
Transfers	102	114
Property, plant and equipment at end of period	1,433	1,332	1,282
Other | Amortisation and impairment
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	(919)	(913)
Exchange adjustment	(15)	29
Charges	89	85
Disposals	50	47
Impairment	(4)	(1)
Transfers	(1)	4
Property, plant and equipment at end of period	(978)	(919)	(913)
Assets in course of construction
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	256
Property, plant and equipment at end of period	170	256
Assets in course of construction | Software
Disclosure of detailed information about property, plant and equipment [line items]
Transfers	(23)	0
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	256	303
Exchange adjustment	4	(6)
Additions	70	136
Disposals	(2)	(1)
Impairment	(5)	(3)
Transfers	(153)	(173)
Property, plant and equipment at end of period	$ 170	$ 256	$ 303

GOODWILL (Details)

GOODWILL (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) item	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Disclosure of reconciliation of changes in goodwill [line items]
Goodwill, beginning balance	$ 3,031	$ 2,989	$ 2,928
Exchange adjustment	45	(42)	35
Impairment	(84)
Acquisitions		84	96
Goodwill, ending balance	$ 2,992	3,031	$ 2,989
Number of Cash Generating Units | item	5
Pre-tax cash flow projection period for impairment testing, cash-generating units	3 years
Additional period of pre-tax cash flow projections for impairment testing to reflect expected growth, cash-generating units	2 years
Orthopaedics
Disclosure of reconciliation of changes in goodwill [line items]
Goodwill, beginning balance	$ 953
Impairment	0
Goodwill, ending balance	$ 915	$ 953
Pre-tax discount rate	10.80%	10.10%
Required decrease in trading margin	5.50%
Headroom	$ 1,200	$ 600
Projection period for cash-flow projections including period to reflect expected growth, cash-generating units	5 years	5 years
Orthopaedics | Weighted average
Disclosure of reconciliation of changes in goodwill [line items]
Revenue growth rates	2%	2%
Sports Medicine
Disclosure of reconciliation of changes in goodwill [line items]
Goodwill, beginning balance	$ 1,455
Goodwill, ending balance	$ 1,154	$ 1,455
Pre-tax discount rate	10.80%	10.10%
Projection period for cash-flow projections including period to reflect expected growth, cash-generating units	5 years	5 years
Sports Medicine | Weighted average
Disclosure of reconciliation of changes in goodwill [line items]
Revenue growth rates	2%	2%
ENT
Disclosure of reconciliation of changes in goodwill [line items]
Goodwill, ending balance	$ 287
Pre-tax discount rate	10.80%
Projection period for cash-flow projections including period to reflect expected growth, cash-generating units	5 years
ENT | Weighted average
Disclosure of reconciliation of changes in goodwill [line items]
Revenue growth rates	2%
Advanced Wound Management
Disclosure of reconciliation of changes in goodwill [line items]
Goodwill, beginning balance	$ 623
Goodwill, ending balance	$ 636	$ 623
Pre-tax discount rate	10.80%	10.10%
Projection period for cash-flow projections including period to reflect expected growth, cash-generating units	5 years	5 years
Advanced Wound Management | Weighted average
Disclosure of reconciliation of changes in goodwill [line items]
Revenue growth rates	2%	2%
Engage
Disclosure of reconciliation of changes in goodwill [line items]
Impairment	$ (84)

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	$ 1,236
Charge for the year - impairment	37	$ 39	$ 2
Carrying value, ending balance	1,110	1,236
Amortisation and impairment of acquired intangibles	207	205
ArthroCare
Disclosure of detailed information about intangible assets [line items]
Carrying value, ending balance	257
Osiris Therapeutics
Disclosure of detailed information about intangible assets [line items]
Carrying value, ending balance	171
Healthpoint
Disclosure of detailed information about intangible assets [line items]
Carrying value, ending balance	$ 143
Remaining amortisation period	4 years
Cost
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	$ 3,653	3,584
Exchange adjustment	48	(45)
Acquisitions		44
Additions	104	77
Charge for the year - impairment		1
Disposals	(12)	(6)
Transfers	23
Carrying value, ending balance	3,816	3,653	3,584
Amortisation and impairment
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	(2,417)	(2,186)
Exchange adjustment	(42)	31
Change for the year - amortisation	221	229
Charge for the year - impairment	37	38
Disposals	11	5
Carrying value, ending balance	(2,706)	(2,417)	(2,186)
Technology
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	354
Carrying value, ending balance	306	354
Amortisation and impairment of acquired intangibles	46	51
Technology | Cost
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	582	588
Exchange adjustment	4	(6)
Disposals	(1)
Transfers	(3)
Carrying value, ending balance	582	582	588
Technology | Amortisation and impairment
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	(228)	(180)
Exchange adjustment	(2)	2
Change for the year - amortisation	46	46
Charge for the year - impairment		4
Carrying value, ending balance	(276)	(228)	(180)
Product- related
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	618
Carrying value, ending balance	472	618
Amortisation and impairment of acquired intangibles	150	142
Product- related | Cost
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	2,232	2,206
Exchange adjustment	36	(21)
Acquisitions		44
Additions	2	3
Disposals	(7)
Transfers	10
Carrying value, ending balance	2,273	2,232	2,206
Product- related | Amortisation and impairment
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	(1,614)	(1,482)
Exchange adjustment	(36)	19
Change for the year - amortisation	121	123
Charge for the year - impairment	37	28
Disposals	7
Carrying value, ending balance	(1,801)	(1,614)	(1,482)
Engage's intangible assets
Disclosure of detailed information about intangible assets [line items]
Impairment charges	37
Immaterial product assets
Disclosure of detailed information about intangible assets [line items]
Impairment charges		32
Customer and distribution related
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	75
Carrying value, ending balance	60	75
Amortisation and impairment of acquired intangibles	11	12
Customer and distribution related | Cost
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	235	231
Exchange adjustment	(1)	(2)
Additions	2	7
Disposals		(1)
Carrying value, ending balance	236	235	231
Customer and distribution related | Amortisation and impairment
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	(160)	(145)
Exchange adjustment		2
Change for the year - amortisation	16	17
Carrying value, ending balance	(176)	(160)	(145)
Software
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	93
Carrying value, ending balance	94	93
Capital expenditure relating to software contracted but not provided	7	7
Software | Cost
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	508	491
Exchange adjustment	5	(14)
Additions	36	32
Disposals	(4)	(5)
Transfers	2	4
Carrying value, ending balance	547	508	491
Software | Amortisation and impairment
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	(415)	(379)
Exchange adjustment	(4)	8
Change for the year - amortisation	38	43
Charge for the year - impairment		6
Disposals	4	5
Carrying value, ending balance	(453)	(415)	(379)
Assets in course of construction.
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	96
Carrying value, ending balance	178	96
Assets in course of construction. | Cost
Disclosure of detailed information about intangible assets [line items]
Carrying value, beginning balance	96	68
Exchange adjustment	4	(2)
Additions	64	35
Charge for the year - impairment		1
Transfers	14	(4)
Carrying value, ending balance	178	96	$ 68
Software and Assets in course of construction | Assets in course of construction
Disclosure of detailed information about intangible assets [line items]
Transfers	$ 23	$ 0
Minimum | ArthroCare
Disclosure of detailed information about intangible assets [line items]
Remaining amortisation period	10 years
Minimum | Osiris Therapeutics
Disclosure of detailed information about intangible assets [line items]
Remaining amortisation period	1 year
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 | Osiris Therapeutics
Disclosure of detailed information about intangible assets [line items]
Remaining amortisation period	5 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) - Financial assets at fair value through profit or loss - Unquoted equity securities - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disclosure of detailed information about financial instruments [line items]
Financial assets at beginning of period	$ 12	$ 10
Additions		2
Fair value remeasurement	(4)
Financial assets at end of period	$ 8	$ 12

INVESTMENTS IN ASSOCIATES - Amo

INVESTMENTS IN ASSOCIATES - Amounts recognised in the balance sheet and income statement (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of associates [line items]
Percentage of associate held			28.30%
Balance sheet		$ 16	$ 46
Impairment loss			109
Gain on disposal of interest in associate		0	0	$ 75
Issue of equity	[1]		1	$ 2
Associates [member]
Disclosure of associates [line items]
Balance sheet		16	46
Share of results of associates		$ (30)	(32)
Impairment of interest in associate			$ 109
Bioventus LLC
Disclosure of associates [line items]
Percentage of associate held		27.96%	28.30%
Balance sheet		$ 16	$ 46
Profit after taxation		(30)	(141)
Share of results of associates		(30)	(32)
Impairment loss			109
Fair value less cost of disposal		93
Impairment of interest in associate			$ 109
Gain on disposal of interest in associate		$ 0
[1] Issue of ordinary share capital in connection with the Group’s share incentive plans.

INVESTMENTS IN ASSOCIATES - Sum

INVESTMENTS IN ASSOCIATES - Summarised statement of comprehensive income (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Summarised statement of comprehensive income
Revenue		$ 5,549	$ 5,215	$ 5,212
Attributable profit for the year	[1]	263	223	524
Total comprehensive income for the year	[1]	246	$ 133	$ 564
Percentage of associate held			28.30%
Associates [member]
Summarised statement of comprehensive income
Income statement loss		(30)	$ (32)
Bioventus LLC
Summarised statement of comprehensive income
Revenue		377	386
Attributable profit for the year		(152)	(129)
Group adjustments		46	17
Total comprehensive income for the year		(106)	(112)
Income statement loss		$ (30)	$ (32)
Percentage of associate held		27.96%	28.30%
[1] Attributable to equity holders of the Company and wholly derived from continuing operations.

INVESTMENTS IN ASSOCIATES - S_2

INVESTMENTS IN ASSOCIATES - Summarised balance sheet (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) item	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Summarised balance sheet
Non-current assets	$ 5,957	$ 6,110
Current assets	4,030	3,856
Non-current liabilities	(2,499)	(2,992)
Current liabilities	(2,271)	(1,715)
Net equity attributable to owners	5,217	5,259	$ 5,568	$ 5,279
Group's carrying amount of investment	16	$ 46
Percentage of associate held		28.30%
Associates [member]
Summarised balance sheet
Impairment loss		$ (109)
Group's carrying amount of investment	16	46
Bioventus LLC
Summarised balance sheet
Non-current assets	562	1,128
Current assets	249	271
Non-current liabilities	(424)	(730)
Current liabilities	(160)	(288)
Net assets	227	381
Net equity attributable to owners	227	381
Group's share of net assets	64	108
Group adjustments	(48)	47
Impairment loss		(109)
Group's carrying amount of investment	$ 16	$ 46
Percentage of associate held	27.96%	28.30%
Cash distribution received	$ 0	$ 1
Accumulated impairment losses included in group adjustments	109
Other associates
Summarised balance sheet
Group's carrying amount of investment	$ 0	$ 0
Number of associates | item	2	2

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
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	$ 503	$ 474
Work-in-progress	60	78
Finished goods and goods for resale	1,832	1,653
Total inventories	2,395	2,205
Provision	281	327	$ 357
Foreign exchange movements	(1)	1
Cost of inventories recognised as an expense and included in cost of goods sold	1,459	1,302	1,407
Inventory write-offs and provision increases	106	117	$ 105
Engage
Schedule Of Inventory Disclosure [Line Items]
Write-off of inventory	21
Impairment
Schedule Of Inventory Disclosure [Line Items]
Total inventories	(544)	$ (504)
Increase in inventories from changes in foreign exchange rates	$ (3)
Orthopaedic instruments | Minimum
Schedule Of Inventory Disclosure [Line Items]
Useful life measured as period of time, property, plant and equipment	3 years
Orthopaedic instruments | Maximum
Schedule Of Inventory Disclosure [Line Items]
Useful life measured as period of time, property, plant and equipment	7 years

TRADE AND OTHER RECEIVABLES (De

TRADE AND OTHER RECEIVABLES (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	$ 1,059	$ 1,027
Derivatives - forward foreign exchange, currency swaps and interest rate contracts	27	47
Other receivables	122	114
Current tax receivable	33	37
Prepayments	92	76
Total trade and other receivables, current	1,300	1,264
Other non-current assets	18	12
Total trade and other receivables	1,318	1,276
Cost
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	1,104	1,076
Impairment
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	$ (45)	$ (49)

TRADE AND OTHER RECEIVABLES - T

TRADE AND OTHER RECEIVABLES - Trade receivables past due (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure Of Trade And Other Receivables [Line Items]
Bad debt expense	$ 3	$ 4	$ 3
Current trade receivables	1,059	1,027
Cost
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	1,104	1,076
Impairment
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	(45)	(49)
Total past due | Cost
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	1,104	1,076
Total past due | Impairment
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	$ (45)
Past due not more than three months
Disclosure Of Trade And Other Receivables [Line Items]
Weighted average loss rate	(0.60%)
Past due not more than three months | Cost
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	$ 180	228
Past due not more than three months | Impairment
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	$ (1)
Past due more than three months and not more than six months
Disclosure Of Trade And Other Receivables [Line Items]
Weighted average loss rate	(3.90%)
Past due more than three months and not more than six months | Cost
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	$ 51	97
Past due more than three months and not more than six months | Impairment
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	$ (2)
Past due more than six months and not more than one year
Disclosure Of Trade And Other Receivables [Line Items]
Weighted average loss rate	(48.20%)
Past due more than six months and not more than one year | Cost
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	$ 85	141
Past due more than six months and not more than one year | Impairment
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	$ (41)
Neither past due nor impaired
Disclosure Of Trade And Other Receivables [Line Items]
Weighted average loss rate	(0.10%)
Neither past due nor impaired | Cost
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	$ 788	$ 610
Neither past due nor impaired | Impairment
Disclosure Of Trade And Other Receivables [Line Items]
Current trade receivables	$ (1)

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, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure Of Trade And Other Receivables [Line Items]
Net receivables provided during the year	$ 3	$ 4	$ 3
Impairment | Trade receivables
Disclosure Of Trade And Other Receivables [Line Items]
At 1 January	49	57
Exchange adjustment	1	(3)
Net receivables provided during the year	3	4
Utilisation of provision	(8)	(9)
At 31 December	$ 45	$ 49	$ 57

TRADE AND OTHER RECEIVABLES -_2

TRADE AND OTHER RECEIVABLES - Trade receivables denominated in major currencies (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables - net	$ 1,059	$ 1,027
US Dollar
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables - net	506	465
Sterling
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables - net	39	37
Euro
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables - net	224	215
Other currencies
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables - net	$ 290	$ 310

TRADE AND OTHER PAYABLES (Detai

TRADE AND OTHER PAYABLES (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Trade and other payables due within one year
Trade and other payables	$ 1,016	$ 1,029
Derivatives - forward foreign exchange, currency swaps and interest rate contracts	28	43
Acquisition consideration	11	26
Total trade and other current payables	1,055	1,098
Other payables due after one year
Acquisition consideration	25	66
Derivatives - forward foreign exchange, currency swaps and interest rate contracts		13
Other payables	10	11
Total other payables due after one year	35	90
Contingent consideration	32	78
Between one and two years
Other payables due after one year
Acquisition consideration	9	29
Between two and three years
Other payables due after one year
Acquisition consideration	2	35
Between three and four years
Other payables due after one year
Acquisition consideration	$ 14	$ 2

CASH AND BORROWINGS - Net debt

CASH AND BORROWINGS - Net debt (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure of detailed information about borrowings [line items]
Bank overdrafts and loans due within one year	$ 710	$ 111
Corporate bond	1,550	1,510
Private placement notes	625	1,055
Borrowings	2,885	2,676
Cash at bank	(302)	(350)	$ (1,290)
Credit balance on derivatives - currency swaps	1
(Debit)/credit balance on derivatives - interest rate swaps	(7)	13
Net debt	2,577	2,339
Non-current lease liabilities	144	147
Current lease liabilities	55	49
Net debt including lease liabilities	2,776	2,535	$ 2,049	$ 1,926
Interest swaps
Disclosure of detailed information about borrowings [line items]
Net debt including lease liabilities	$ (7)	$ 13		$ (2)

CASH AND BORROWINGS - Borrowing

CASH AND BORROWINGS - Borrowings are repayable (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of detailed information about borrowings [line items]
Bank loans	$ 303
Bank overdrafts	2	$ 6	$ 5
Corporate bond	1,550	1,510
Private Placement Notes	1,030	1,160
Lease liabilities	210	210
Total borrowings	3,095	2,886
Lease liabilities, discounted amount	199	196
In one year
Disclosure of detailed information about borrowings [line items]
Bank loans	303
Bank overdrafts	2	6
Private Placement Notes	405	105
Lease liabilities	55	49
Total borrowings	765	160
Between one and two years
Disclosure of detailed information about borrowings [line items]
Private Placement Notes		430
Lease liabilities	44	42
Total borrowings	44	472
Between two and three years
Disclosure of detailed information about borrowings [line items]
Private Placement Notes	75
Lease liabilities	33	32
Total borrowings	108	32
Between three and four years
Disclosure of detailed information about borrowings [line items]
Private Placement Notes	140	75
Lease liabilities	25	24
Total borrowings	165	99
Between four and five years
Disclosure of detailed information about borrowings [line items]
Private Placement Notes	60	140
Lease liabilities	18	18
Total borrowings	78	158
After five years
Disclosure of detailed information about borrowings [line items]
Corporate bond	1,550	1,510
Private Placement Notes	350	410
Lease liabilities	35	45
Total borrowings	$ 1,935	$ 1,965

CASH AND BORROWINGS - Liquidity

CASH AND BORROWINGS - Liquidity risk exposures (Details) € in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2023 EUR (€)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)
Disclosure of detailed information about borrowings [line items]
Outstanding amount	$ 2,885		$ 2,676
Committed facilities
Disclosure of detailed information about borrowings [line items]
Committed facilities	3,600		$ 3,700
Outstanding amount	2,900
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%
Syndicated revolving credit facility
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		€ 500
Interest rate	4.565%	4.565%	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
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%
Private placement debt
Disclosure of detailed information about borrowings [line items]
Repayment of debt	$ 130

CASH AND BORROWINGS - Year end

CASH AND BORROWINGS - Year end financial liabilities by contractual maturity (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Disclosure of detailed information about borrowings [line items]
Bank overdrafts and loans	$ 305	$ 6
Corporate bond	1,878	1,805
Trade and other payables	1,016	1,029
Private placement notes	1,143	1,313
Acquisition consideration	37	96
Current swaps/forward foreign exchange contracts - outflow	2,913	2,598
Current swaps/forward foreign exchange contracts - inflow	(2,912)	(2,601)
Total	4,380	4,246
In one year
Disclosure of detailed information about borrowings [line items]
Bank overdrafts and loans	305	6
Corporate bond	53	37
Trade and other payables	1,016	1,029
Private placement notes	434	143
Acquisition consideration	11	26
Current swaps/forward foreign exchange contracts - outflow	2,913	2,598
Current swaps/forward foreign exchange contracts - inflow	(2,912)	(2,601)
Total	1,820	1,238
Between one and two years
Disclosure of detailed information about borrowings [line items]
Corporate bond	53	37
Private placement notes	19	461
Acquisition consideration	9	31
Total	81	529
Between two and five years
Disclosure of detailed information about borrowings [line items]
Corporate bond	158	111
Private placement notes	317	265
Acquisition consideration	2	39
Total	477	415
After five years
Disclosure of detailed information about borrowings [line items]
Corporate bond	1,614	1,620
Private placement notes	373	444
Acquisition consideration	15
Total	$ 2,002	$ 2,064

CASH AND BORROWINGS - Liquidi_2

CASH AND BORROWINGS - Liquidity and capital resources (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023		Dec. 31, 2022		Dec. 31, 2021		Dec. 31, 2020
Disclosure of detailed information about borrowings [line items]
Cash net of bank overdrafts	$ 300	[1]	$ 344	[1]	$ 1,285	[1]	$ 1,751
Net debt including lease liabilities	2,776		2,535		$ 2,049		$ 1,926
Increase (decrease) in net debt including lease liabilities	300
Borrowings	2,885		2,676
Committed facilities
Disclosure of detailed information about borrowings [line items]
Committed facilities	3,600		$ 3,700
Borrowings	$ 2,900
[1] Cash and cash equivalents is net of bank overdrafts of $2 m (2022: $ 6 m, 2021: $ 5 m).

FINANCIAL INSTRUMENTS AND RIS_3

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Foreign Exchange Exposures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
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	$ 2,400	$ 2,200
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	$ 37
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	$ (67)	(50)
Currency risk | Euro
Risk management
Increase (decrease) in net borrowings that would result from decreased currency value, per sensitivity analysis	$ 37	41
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	$ 38	$ 35

FINANCIAL INSTRUMENTS AND RIS_4

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Interest Rate Exposures (Details) - Interest rate risk € in Millions, $ in Millions	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)
Risk management
Percentage of increase in risk variable used for sensitivity analysis	1%
Percentage of decrease in risk variable used for sensitivity analysis	1%
Increase in annual net interest charge that would result from increased interest rate, per sensitivity analysis | $	$ 5	$ 4
Interest swaps
Risk management
Notional amount | €			€ 500

FINANCIAL INSTRUMENTS AND RIS_5

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Credit Risk Exposures (Details) - Credit risk - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Derivatives
Credit risk
Maximum exposure	$ 27	$ 47
Cash at bank
Credit risk
Maximum exposure	$ 302	$ 350

FINANCIAL INSTRUMENTS AND RIS_6

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Hedging instruments (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Currency risk | Cash flow hedges | Forward foreign exchange contracts
Items designated as hedging instruments
Nominal amount	2,913	2,598
Carrying Amount Assets	$ 27	$ 47
Carrying Amount Liabilities	(28)	(43)
Change in fair value in OCI	(3)	(13)
Amounts reclassified from hedging reserve to profit or loss	$ (25)	$ (37)
Interest rate risk | Fair value hedges | Interest swaps
Items designated as hedging instruments
Nominal amount	500	500
Carrying Amount Assets	$ 7
Carrying Amount Liabilities		$ (13)

FINANCIAL INSTRUMENTS AND RIS_7

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Net investment hedge (Details) - Dec. 31, 2023 € in Millions, $ in Millions	EUR (€)	USD ($)
Currency risk | Net investment hedge | EUR corporate bond
Disclosure of detailed information about hedged items [line items]
Hedging instrument, liabilities	€ 500	$ 552

FINANCIAL INSTRUMENTS AND RIS_8

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Interest Bearing Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest bearing liabilities
Deferred and contingent acquisition consideration	$ 36	$ 92	$ 91
Interest payable on deferred acquisition consideration	$ 0
Floating rate | Weighted average
Interest bearing liabilities
Interest rate	6%	3%
Gross borrowings
Interest bearing liabilities
Financial liabilities	$ (2,885)	$ (2,676)
Gross borrowings | US Dollar
Interest bearing liabilities
Financial liabilities	(2,324)	(2,159)
Gross borrowings | Other currencies
Interest bearing liabilities
Financial liabilities	(561)	(517)
Currency swaps
Interest bearing liabilities
Financial liabilities	(548)	(369)
Currency swaps | US Dollar
Interest bearing liabilities
Financial liabilities	(329)	(163)
Currency swaps | Other currencies
Interest bearing liabilities
Financial liabilities	(219)	(206)
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	(3,433)	(3,058)
Total liabilities | US Dollar
Interest bearing liabilities
Financial liabilities	(2,653)	(2,322)
Total liabilities | Other currencies
Interest bearing liabilities
Financial liabilities	(780)	(736)
Total liabilities | Floating rate
Interest bearing liabilities
Financial liabilities	(852)	(413)
Total liabilities | Floating rate | US Dollar
Interest bearing liabilities
Financial liabilities	(628)	(193)
Total liabilities | Floating rate | Other currencies
Interest bearing liabilities
Financial liabilities	(224)	(220)
Total liabilities | Fixed rate
Interest bearing liabilities
Financial liabilities	(2,581)	(2,645)
Total liabilities | Fixed rate | US Dollar
Interest bearing liabilities
Financial liabilities	$ (2,025)	$ (2,129)
Total liabilities | Fixed rate | US Dollar | Weighted average
Interest bearing liabilities
Interest rate	2.70%	2.70%
Time for which rate is fixed	5 years 1 month 6 days	5 years 10 months 24 days
Total liabilities | Fixed rate | Other currencies
Interest bearing liabilities
Financial liabilities	$ (556)	$ (516)

FINANCIAL INSTRUMENTS AND RIS_9

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Interest Bearing Assets (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Interest swaps
Interest bearing assets
Financial assets	$ 7
Cash at bank
Interest bearing assets
Financial assets	302	$ 350
Currency swaps
Interest bearing assets
Financial assets	548	369
Total assets
Interest bearing assets
Financial assets	857	719
Total assets | Floating rate
Interest bearing assets
Financial assets	857	719
US Dollar | Cash at bank
Interest bearing assets
Financial assets	98	207
US Dollar | Currency swaps
Interest bearing assets
Financial assets	217	205
US Dollar | Total assets
Interest bearing assets
Financial assets	315	412
US Dollar | Total assets | Floating rate
Interest bearing assets
Financial assets	315	412
Other currencies | Interest swaps
Interest bearing assets
Financial assets	7
Other currencies | Cash at bank
Interest bearing assets
Financial assets	204	143
Other currencies | Currency swaps
Interest bearing assets
Financial assets	331	164
Other currencies | Total assets
Interest bearing assets
Financial assets	542	307
Other currencies | Total assets | Floating rate
Interest bearing assets
Financial assets	$ 542	$ 307

FINANCIAL INSTRUMENTS AND RI_10

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Fair Value (Details) - USD ($) $ in Millions	12 Months Ended	24 Months Ended
	Dec. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Measurement of fair values
Financial assets	$ 9,987	$ 9,987	$ 9,966
Financial liabilities	(4,770)	(4,770)	(4,707)
Transfer from Level 1 to Level 2 assets		0
Transfer from Level 2 to Level 1 assets		0
Transfer into Level 3 assets		0
Transfer out of Level 3 assets			0
Transfer from Level 1 to Level 2 liabilities		0
Transfer from Level 2 to Level 1 liabilities		0
Transfer into Level 3 liabilities		0
Transfer out of Level 3 liabilities		0
Acquisition consideration
Measurement of fair values
Increase in consideration	(56)
Consideration paid	21
Remeasurement reduction	35
Currency swaps
Measurement of fair values
Financial liabilities	(548)	(548)	(369)
Interest swaps
Measurement of fair values
Financial liabilities			(13)
Corporate bond
Measurement of fair values
Financial liabilities	(995)	(995)	(994)
Financial liabilities, at fair value	(826)	(826)	(783)
Fair value of liability	826	826	783
Private placement debt
Measurement of fair values
Financial liabilities	(1,030)	(1,030)	(1,160)
Financial liabilities, at fair value	(959)	(959)	(987)
Fair value of liability	959	959	987
EUR corporate bond
Measurement of fair values
Financial liabilities	(555)	(555)	(516)
Financial liabilities, at fair value	(585)	(585)	(531)
Fair value of liability	585	585	531
Currency swaps
Measurement of fair values
Financial assets	548	548	369
Interest swaps
Measurement of fair values
Financial assets	7	7
Cash at bank
Measurement of fair values
Financial assets	302	302	350
At fair value
Measurement of fair values
Financial assets	60	60	77
Financial liabilities	(60)	(60)	(134)
At fair value | Acquisition consideration
Measurement of fair values
Financial liabilities	(32)	(32)	(78)
Financial liabilities, at fair value	(32)	(32)	(78)
Fair value of liability	32	32	78
At fair value | Acquisition consideration | Level 3
Measurement of fair values
Financial liabilities, at fair value	(32)	(32)	(78)
Fair value of liability	32	32	78
At fair value | Forward foreign exchange contracts
Measurement of fair values
Financial liabilities	(25)	(25)	(42)
Financial liabilities, at fair value	(25)	(25)	(42)
Fair value of liability	25	25	42
At fair value | Forward foreign exchange contracts | Level 2
Measurement of fair values
Financial liabilities, at fair value	(25)	(25)	(42)
Fair value of liability	25	25	42
At fair value | Currency swaps
Measurement of fair values
Financial liabilities	(3)	(3)	(1)
Financial liabilities, at fair value	(3)	(3)	(1)
Fair value of liability	3	3	1
At fair value | Currency swaps | Level 2
Measurement of fair values
Financial liabilities, at fair value	(3)	(3)	(1)
Fair value of liability	3	3	1
At fair value | Interest swaps
Measurement of fair values
Financial liabilities			(13)
Financial liabilities, at fair value			(13)
Fair value of liability			13
At fair value | Interest swaps | Level 2
Measurement of fair values
Financial liabilities, at fair value			(13)
Fair value of liability			13
At fair value | Forward foreign exchange contracts
Measurement of fair values
Financial assets	25	25	46
Financial assets, at fair value	25	25	46
At fair value | Forward foreign exchange contracts | Level 2
Measurement of fair values
Financial assets, at fair value	25	25	46
At fair value | Investments.
Measurement of fair values
Financial assets	8	8	12
Financial assets, at fair value	8	8	12
At fair value | Investments. | Level 3
Measurement of fair values
Financial assets, at fair value	8	8	12
At fair value | Contingent consideration receivable
Measurement of fair values
Financial assets	18	18	18
Financial assets, at fair value	18	18	18
At fair value | Contingent consideration receivable | Level 3
Measurement of fair values
Financial assets, at fair value	18	18	18
At fair value | Currency swaps
Measurement of fair values
Financial assets	2	2	1
Financial assets, at fair value	2	2	1
At fair value | Currency swaps | Level 2
Measurement of fair values
Financial assets, at fair value	2	2	1
At fair value | Interest swaps
Measurement of fair values
Financial assets	7	7
Financial assets, at fair value	7	7
At fair value | Interest swaps | Level 2
Measurement of fair values
Financial assets, at fair value	7	7
At fair value | Fair value - hedging instruments
Measurement of fair values
Financial liabilities	(25)	(25)	(55)
At fair value | Fair value - hedging instruments | Forward foreign exchange contracts
Measurement of fair values
Financial liabilities	(25)	(25)	(42)
At fair value | Fair value - hedging instruments | Interest swaps
Measurement of fair values
Financial liabilities			(13)
At fair value | Fair value through OCI
Measurement of fair values
Financial liabilities	(3)	(3)	(1)
At fair value | Fair value through OCI | Currency swaps
Measurement of fair values
Financial liabilities	(3)	(3)	(1)
At fair value | Fair value through profit or loss
Measurement of fair values
Financial liabilities	(32)	(32)	(78)
At fair value | Fair value through profit or loss | Acquisition consideration
Measurement of fair values
Financial liabilities	(32)	(32)	(78)
At fair value | Fair value - hedging instruments
Measurement of fair values
Financial assets	32	32	46
At fair value | Fair value - hedging instruments | Forward foreign exchange contracts
Measurement of fair values
Financial assets	25	25	46
At fair value | Fair value - hedging instruments | Interest swaps
Measurement of fair values
Financial assets	7	7
At fair value | Fair value through OCI
Measurement of fair values
Financial assets	2	2	1
At fair value | Fair value through OCI | Currency swaps
Measurement of fair values
Financial assets	2	2	1
At fair value | Financial assets at fair value through profit or loss
Measurement of fair values
Financial assets	26	26	30
At fair value | Financial assets at fair value through profit or loss | Investments.
Measurement of fair values
Financial assets	8	8	12
At fair value | Financial assets at fair value through profit or loss | Contingent consideration receivable
Measurement of fair values
Financial assets	18	18	18
Not measured at fair value
Measurement of fair values
Financial assets	1,465	1,465	1,473
Financial liabilities	(3,915)	(3,915)	(3,730)
Not measured at fair value | Acquisition consideration
Measurement of fair values
Financial liabilities	(4)	(4)	(14)
Not measured at fair value | Bank overdrafts.
Measurement of fair values
Financial liabilities	(2)	(2)	(6)
Not measured at fair value | Bank loans
Measurement of fair values
Financial liabilities	(303)	(303)
Not measured at fair value | Corporate bond not in a hedge relationship
Measurement of fair values
Financial liabilities	(995)	(995)	(994)
Not measured at fair value | Corporate bond in a hedge relationship
Measurement of fair values
Financial liabilities	(555)	(555)	(516)
Not measured at fair value | Private placement debt not in a hedge relationship
Measurement of fair values
Financial liabilities	(1,030)	(1,030)	(1,160)
Not measured at fair value | Trade and other payables
Measurement of fair values
Financial liabilities	(1,026)	(1,026)	(1,040)
Not measured at fair value | Trade and other receivables.
Measurement of fair values
Financial assets	1,163	1,163	1,123
Not measured at fair value | Cash at bank
Measurement of fair values
Financial assets	302	302	350
Not measured at fair value | Other financial liabilities
Measurement of fair values
Financial liabilities	(3,915)	(3,915)	(3,730)
Not measured at fair value | Other financial liabilities | Acquisition consideration
Measurement of fair values
Financial liabilities	(4)	(4)	(14)
Not measured at fair value | Other financial liabilities | Bank overdrafts.
Measurement of fair values
Financial liabilities	(2)	(2)	(6)
Not measured at fair value | Other financial liabilities | Bank loans
Measurement of fair values
Financial liabilities	(303)	(303)
Not measured at fair value | Other financial liabilities | Corporate bond not in a hedge relationship
Measurement of fair values
Financial liabilities	(995)	(995)	(994)
Not measured at fair value | Other financial liabilities | Corporate bond in a hedge relationship
Measurement of fair values
Financial liabilities	(555)	(555)	(516)
Not measured at fair value | Other financial liabilities | Private placement debt not in a hedge relationship
Measurement of fair values
Financial liabilities	(1,030)	(1,030)	(1,160)
Not measured at fair value | Other financial liabilities | Trade and other payables
Measurement of fair values
Financial liabilities	(1,026)	(1,026)	(1,040)
Not measured at fair value | Fair value - hedging instruments
Measurement of fair values
Financial assets	1,163	1,163	1,123
Not measured at fair value | Fair value - hedging instruments | Trade and other receivables.
Measurement of fair values
Financial assets	1,163	1,163	1,123
Not measured at fair value | Amortised cost
Measurement of fair values
Financial assets	302	302	350
Not measured at fair value | Amortised cost | Cash at bank
Measurement of fair values
Financial assets	$ 302	$ 302	$ 350

FINANCIAL INSTRUMENTS AND RI_11

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Movement of financial instruments (Details) - USD ($) $ in Millions	12 Months Ended		24 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2022
Fair value of assets
Assets at beginning of period	$ 9,966
Transfers			$ 0
Assets at end of period	9,987	$ 9,966	9,966
Fair value of liabilities
Liabilities at beginning of period	(4,707)
Liabilities at end of period	(4,770)	(4,707)	(4,707)
Level 3 | Acquisition consideration liability
Fair value of liabilities
Liabilities at beginning of period	(78)	(84)
Arising on acquisitions		(32)
Payments	13	20
Remeasurements	33	19
Discount unwind		(1)
Liabilities at end of period	(32)	(78)	(78)
Level 3 | Investments
Fair value of assets
Assets at beginning of period	12	10
Additions		2
Fair value remeasurement	(4)
Assets at end of period	8	12	12
Level 3 | Contingent consideration receivable
Fair value of assets
Assets at beginning of period	18	20
Receipts		(2)
Settlements, fair value measurement, assets		2
Assets at end of period	$ 18	$ 18	$ 18

PROVISIONS AND CONTINGENCIES -

PROVISIONS AND CONTINGENCIES - Changes in provisions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2019
Changes in Provisions
Provisions at beginning of period	$ 327	$ 357
Charge to income statement	229	207
Release to income statement	(27)	(7)
Unwinding of discount	5	7
Utilised	(254)	(236)
Exchange adjustment	1	(1)
Provisions at end of period	281	327
Rationalisation provisions
Changes in Provisions
Provisions at beginning of period	30	18
Charge to income statement	220	169
Release to income statement		(2)
Utilised	(160)	(154)
Exchange adjustment	1	(1)
Provisions at end of period	91	30
Metal-on-metal
Changes in Provisions
Provisions at beginning of period	239	289
Charge to income statement		19	$ 121
Release to income statement	(8)
Unwinding of discount	5	7
Utilised	(87)	(76)
Provisions at end of period	149	239
Legal and other provisions
Changes in Provisions
Provisions at beginning of period	58	50
Charge to income statement	9	19
Release to income statement	(19)	(5)
Utilised	(7)	(6)
Provisions at end of period	$ 41	$ 58

PROVISIONS AND CONTINGENCIES _2

PROVISIONS AND CONTINGENCIES - Current and non-current provisions (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) item	Dec. 31, 2019 item	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Disclosure of other provisions [line items]
Provisions - due within one year	$ 233		$ 243
Provisions - due after one year	48		84
Total provisions	$ 281		327	$ 357
Term of expected provision utilisation	5 years
Minimum range of percentile | item	55
Maximum range of percentile | item	90
Percentage generated by actuarial model | item		97
Rationalisation provisions
Disclosure of other provisions [line items]
Provisions - due within one year	$ 91		30
Total provisions	91		30	18
Metal-on-metal
Disclosure of other provisions [line items]
Provisions - due within one year	111		165
Provisions - due after one year	38		74
Total provisions	149		239	289
Legal and other provisions
Disclosure of other provisions [line items]
Provisions - due within one year	31		48
Provisions - due after one year	10		10
Total provisions	$ 41		$ 58	$ 50

PROVISIONS AND CONTINGENCIES _3

PROVISIONS AND CONTINGENCIES - Legal proceedings (Details) - Metal-on-metal	Dec. 31, 2023 item
Disclosure of other provisions [line items]
Number of claims pending	276
Number of modular components	2
Number of cases requested by plaintiffs to be transferred	48

RETIREMENT BENEFIT OBLIGATION_2

RETIREMENT BENEFIT OBLIGATIONS (Details) £ in Millions, $ in Millions		1 Months Ended			12 Months Ended
	Jan. 04, 2024 USD ($)	Dec. 31, 2023 USD ($) item country	Jun. 30, 2023 USD ($)	Jun. 30, 2023 GBP (£)	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($) item country	Dec. 31, 2022 USD ($)
Disclosure of defined benefit plans [line items]
Amount recognised on the balance sheet - liability		$ (88)				$ (88)	$ (70)
Amount recognised on the balance sheet - asset		69				69	141
Unfunded plans
Disclosure of defined benefit plans [line items]
Unfunded		$ (19)				$ (19)	71
Pension plans
Disclosure of defined benefit plans [line items]
Number of countries | country		13				13
Number of major defined benefit plans | item		2				2
Pension plans | Minimum
Disclosure of defined benefit plans [line items]
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%				66.70%
Pension plans | Funded plans
Disclosure of defined benefit plans [line items]
Funded		$ 56				$ 56	133
Pension plans | United Kingdom
Disclosure of defined benefit plans [line items]
Transaction value of buy-in to pension fund | £				£ 260
OCI loss on trustee buy-in to defined benefit fund						(58)
Cash impact from trustee buy-in to defined benefit fund			$ 0
Pension plans | United Kingdom | Funded plans
Disclosure of defined benefit plans [line items]
Funded		61				61	114
Pension plans | United States of America
Disclosure of defined benefit plans [line items]
Lump sum paid in exchange for outstanding plan benefits		80
Expense recognised on difference between lump sum paid and defined benefit obligation		4
Pension plans | United States of America | Termination of US pension plan
Disclosure of defined benefit plans [line items]
Premium amount paid with respect to settlement of plan	$ 245
Pension plans | United States of America | Termination of US pension plan | Forecast
Disclosure of defined benefit plans [line items]
Gain on annuity purchase contract connected to termination of plan					$ 2
Pension plans | United States of America | Funded plans
Disclosure of defined benefit plans [line items]
Funded		8				8	24
Pension plans | Other Countries | Funded plans
Disclosure of defined benefit plans [line items]
Funded		(13)				(13)	(5)
Pension plans | Other Countries | Unfunded plans
Disclosure of defined benefit plans [line items]
Unfunded		(65)				(65)	(52)
Retirement Healthcare | Unfunded plans
Disclosure of defined benefit plans [line items]
Unfunded		$ (10)				$ (10)	$ (10)

RETIREMENT BENEFIT OBLIGATION_3

RETIREMENT BENEFIT OBLIGATIONS - Reconciliation of benefit obligations and pension assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	$ 71	$ 55
Movement in pension benefit obligation and pension assets:
Current service cost	(6)	(9)
Settlements	(4)
Interest (expense)/income	4	1
Administration costs and taxes	(5)	(3)
Costs recognised in Income statement	(11)	(11)
Actuarial gain due to liability experience	(14)	(43)
Actuarial gain due to financial assumptions change	(25)	503
Actuarial gain due to demographic assumptions	14	1
Return on plan assets (less)/greater than discount rate	(64)	(431)
Remeasurements recognised in OCI	(89)	30
Re-measurement recognised in OCI	(89)	30	$ 79
Employer contributions	7	6
Benefits paid directly by the Group	2	2
Benefits paid, taxes and administration costs paid from scheme assets	(2)	(2)
Net cash	7	6
Exchange movements	3	(9)
Amount recognised on the balance sheet	(19)	71	55
Amount recognised on the balance sheet - liability	(88)	(70)
Amount recognised on the balance sheet - asset	69	141
Obligations
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	(984)	(1,582)
Movement in pension benefit obligation and pension assets:
Current service cost	(6)	(9)
Settlements	75	4
Interest (expense)/income	(45)	(29)
Administration costs and taxes	(5)	(3)
Costs recognised in Income statement	19	(37)
Actuarial gain due to liability experience	(14)	(43)
Actuarial gain due to financial assumptions change	(25)	503
Actuarial gain due to demographic assumptions	14	1
Remeasurements recognised in OCI	(25)	461
Employee contributions	(3)	(3)
Benefits paid directly by the Group	2	2
Benefits paid, taxes and administration costs paid from scheme assets	67	81
Net cash	66	80
Exchange movements	(37)	94
Amount recognised on the balance sheet	(961)	(984)	(1,582)
Amount recognised on the balance sheet - liability	(229)	(194)
Amount recognised on the balance sheet - asset	(732)	(790)
Asset
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	1,055	1,637
Movement in pension benefit obligation and pension assets:
Settlements	(79)	(4)
Interest (expense)/income	49	30
Costs recognised in Income statement	(30)	26
Return on plan assets (less)/greater than discount rate	(64)	(431)
Remeasurements recognised in OCI	(64)	(431)
Employer contributions	7	6
Employee contributions	3	3
Benefits paid, taxes and administration costs paid from scheme assets	(69)	(83)
Net cash	(59)	(74)
Exchange movements	40	(103)
Amount recognised on the balance sheet	942	1,055	$ 1,637
Amount recognised on the balance sheet - liability	141	124
Amount recognised on the balance sheet - asset	801	931
Pension plans | United Kingdom
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	114
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	$ 61	114
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	$ (438)
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	(457)	(438)
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	552
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	518	552
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	24
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	$ 8	24
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	$ (336)
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	(259)	(336)
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	360
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	267	360
Pension plans | Other Countries
Disclosure of net defined benefit liability (asset) [line items]
Amounts recognised on the balance sheet at beginning of the period	(67)
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	(88)	(67)
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	(210)
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	(245)	(210)
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	143
Movement in pension benefit obligation and pension assets:
Amount recognised on the balance sheet	$ 157	$ 143

RETIREMENT BENEFIT OBLIGATION_4

RETIREMENT BENEFIT OBLIGATIONS - Plan assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure of fair value of plan assets [line items]
Market value of assets	$ 942	$ 1,055	$ 1,637
Retirement benefit expense	95	88	93
Defined contributions plan expenses	84	77	77
Defined benefit plan expenses	11	11	16
Outstanding payments	0	0	0
Pension plans | United Kingdom
Disclosure of fair value of plan assets [line items]
Market value of assets	518	552	956
Defined benefit plan expenses	0	0	0
Pension plans | United Kingdom | Assets with a quoted market price
Disclosure of fair value of plan assets [line items]
Cash and cash equivalents	61	2	4
Equity securities		3	84
Other bonds		30	50
Short dated credit fund		81	126
Liability driven investments		225	370
Diversified growth funds		55	89
Market value of assets	61	396	723
Pension plans | United Kingdom | Other assets
Disclosure of fair value of plan assets [line items]
Insurance contracts	457	156	233
Pension plans | United States of America
Disclosure of fair value of plan assets [line items]
Defined benefit plan expenses	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	267	120	6
Equity securities			50
Government bonds - fixed interest		43	201
Corporate bonds		197	246
Market value of assets	267	360	503
Pension plans | Other Countries
Disclosure of fair value of plan assets [line items]
Market value of assets	157	143	178
Pension plans | Other Countries | Assets with a quoted market price
Disclosure of fair value of plan assets [line items]
Cash and cash equivalents	7	7	5
Equity securities	50	49	55
Government bonds - fixed interest	5	7	5
Government bonds - Index Linked			4
Corporate bonds	10	10	11
Insurance contracts	23	21	33
Property	28	22	23
Other quoted securities	10	5	8
Market value of assets	133	121	144
Pension plans | Other Countries | Other assets
Disclosure of fair value of plan assets [line items]
Insurance contracts	$ 24	$ 22	$ 34

RETIREMENT BENEFIT OBLIGATION_5

RETIREMENT BENEFIT OBLIGATIONS - Principal actuarial assumptions (Details) - Pension plans	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
United Kingdom
Disclosure of defined benefit plans [line items]
Discount rate	4.50%	4.80%	1.90%
Future pension increases	3%	3.30%	3.40%
Inflation (RPI)	3.10%	3.30%	3.40%
Inflation (CPI)	2.50%	2.30%	2.70%
Life expectancy at age 60, Male	26 years 10 months 24 days	27 years 4 months 24 days	27 years 7 months 6 days
Life expectancy at age 60, Female	29 years 8 months 12 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 4 months 24 days	28 years 10 months 24 days	29 years 1 month 6 days
Life expectancy at age 60 in 20 years' time, Female	31 years 1 month 6 days	31 years 6 months	31 years 6 months
United States of America
Disclosure of defined benefit plans [line items]
Discount rate	5%	5.30%	2.70%
Life expectancy at age 60, Male	25 years	24 years 10 months 24 days	24 years 8 months 12 days
Life expectancy at age 60, Female	27 years 2 months 12 days	27 years 1 month 6 days	26 years 9 months 18 days
Life expectancy at age 60 in 20 years' time, Male	25 years	24 years 10 months 24 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 7 months 6 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, 2023	Dec. 31, 2022	Dec. 31, 2021
United Kingdom
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Contribution to the plan	$ 0	$ 0	$ 7
Supplementary payments	0	0	7
United Kingdom | Discount rate
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Pension obligation +50bps/+1yr	(29)
Pension obligation -50bps/-1yr	33
United Kingdom | Inflation
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Pension obligation +50bps/+1yr	21
Pension obligation -50bps/-1yr	(24)
United Kingdom | Mortality
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Pension obligation +50bps/+1yr	18
Pension obligation -50bps/-1yr	(11)
United States of America
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Contribution to the plan	0	0	0
Supplementary payments	0	$ 0	$ 0
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	(10)
Pension obligation -50bps/-1yr	11
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) $ / shares in Units, shares in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2023 £ / shares
Allotted, issued and fully paid
Balance at beginning of period	$ 5,259,000,000	$ 5,568,000,000	$ 5,279,000,000
Balance at end of period	$ 5,217,000,000	$ 5,259,000,000	$ 5,568,000,000
Ordinary Shares
Share capital
Par value per share | $ / shares	$ 0.20
Number of shares authorised | shares	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 | shares	877,650	885,191	884,885
Share options (in shares) | shares	23	229	306
Shares cancelled (in shares) | shares		(7,770)
Number of shares - Ending balance | shares	877,673	877,650	885,191
Balance at beginning of period	$ 175,000,000	$ 177,000,000	$ 177,000,000
Shares cancelled		(2,000,000)
Balance at end of period	$ 175,000,000	$ 175,000,000	$ 177,000,000
Deferred Shares
Share capital
Par value per share | £ / shares				£ 1
Number of shares authorised | shares	50	50	50
Allotted, issued and fully paid
Number of shares - Beginning balance | shares	50	50	50
Number of shares - Ending balance | shares	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	175,000,000	177,000,000	177,000,000
Shares cancelled		(2,000,000)
Balance at end of period	$ 175,000,000	$ 175,000,000	$ 177,000,000

EQUITY - Equity Components (Det

EQUITY - Equity Components (Details) - USD ($) $ in Millions		Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Balance		$ 5,217	$ 5,259	$ 5,568	$ 5,279
Share capital
Balance		175	175	177	177
Share premium
Balance		615	615	614	612
Capital redemption reserve
Balance		20	20	18	18
Treasury shares
Balance	[1]	(94)	(118)	(120)	$ (157)
Retained earnings and other reserves
Balance		$ 4,501	$ 4,567	$ 4,879
[1] Refer to Note 19.2 for further information.

EQUITY - Shares Buy-back (Detai

EQUITY - Shares Buy-back (Details) - USD ($) shares in Millions, $ in Millions		12 Months Ended
		Dec. 31, 2023	Dec. 31, 2022
Shares purchased (in shares)		0
Shares purchased			$ 158
Percentage of waiver over the total paid dividends		1%
Treasury shares
Shares purchased (in shares)			10.1
Shares purchased	[1]		$ 158
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
[1] Refer to Note 19.2 for further information.

EQUITY - Treasury Shares (Detai

EQUITY - Treasury Shares (Details) - USD ($) shares in Millions, $ in Millions		12 Months Ended
		Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Treasury shares - Beginning balance		$ 118
Shares purchased			$ 158
Shares transferred to Group beneficiaries			(5)	$ (12)
Treasury shares - Ending balance		$ 94	118
Number of shares
Shares purchased (in shares)		0
Treasury shares
Treasury shares - Beginning balance		$ 118	120
Shares purchased	[1]		158
Shares transferred to Group beneficiaries	[1]	(24)	(31)	(37)
Shares cancelled	[1]		(129)
Treasury shares - Ending balance		$ 94	$ 118	$ 120
Number of shares
Number of shares - Beginning balance		7.5	7
Shares purchased (in shares)			10.1
Shares transferred to Group beneficiaries (in shares)		(1.7)	(1.8)
Shares cancelled (in shares)			(7.8)
Number of shares - Ending balance		5.8	7.5	7
Treasury shares excluding Employees' Share Trust
Treasury shares - Beginning balance		$ 67	$ 93
Shares purchased			150
Shares transferred from treasury		(13)	(41)
Shares transferred to Group beneficiaries		(1)	(6)
Shares cancelled			(129)
Treasury shares - Ending balance		$ 53	$ 67	$ 93
Number of shares
Number of shares - Beginning balance		4.3	5.4
Shares purchased (in shares)			9.7
Shares transferred from treasury (in shares)		(0.8)	(2.6)
Shares transferred to Group beneficiaries (in shares)		(0.1)	(0.4)
Shares cancelled (in shares)			(7.8)
Number of shares - Ending balance		3.4	4.3	5.4
Employees Share Trust
Treasury shares - Beginning balance		$ 51	$ 27
Shares purchased			8
Shares transferred from treasury		13	41
Shares transferred to Group beneficiaries		(23)	(25)
Treasury shares - Ending balance		$ 41	$ 51	$ 27
Number of shares
Number of shares - Beginning balance		3.2	1.6
Shares purchased (in shares)			0.4
Shares transferred from treasury (in shares)		0.8	2.6
Shares transferred to Group beneficiaries (in shares)		(1.6)	(1.4)
Number of shares - Ending balance		2.4	3.2	1.6
[1] Refer to Note 19.2 for further information.

EQUITY - Dividends (Details)

EQUITY - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Equity
Total dividends paid for ordinary share	$ 327	$ 327	$ 329
Distributable reserves	3,333
Ordinary Shares
Equity
Ordinary dividends paid relating to prior years	201	202	203
Ordinary dividends paid relating to current years	126	125	126
Total dividends paid for ordinary share	$ 327	$ 327	$ 329
Proposed final dividend per ordinary share	$ 0.231
Total proposed dividends	$ 201
Ordinary Shares | Final dividends
Equity
Ordinary dividends per share	$ 0.231	$ 0.231	$ 0.231
Ordinary Shares | Interim dividends
Equity
Ordinary dividends per share	$ 0.144	$ 0.144	$ 0.144

CASH FLOW STATEMENT - Analysis

CASH FLOW STATEMENT - Analysis of net debt (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure Of Cash Flow Statement [line items]
Balance at beginning of year	$ (2,535)	$ (2,049)	$ (1,926)
Net cash flow/debt movement	(219)	(537)	(188)
Exchange adjustment	(20)	47	59
Corporate bond issuance expense	1	3	(1)
IFRS 16 lease liabilities	(199)	(196)
IFRS 16 lease liabilities movement	(3)	1	7
Balance at end of year	(2,776)	(2,535)	(2,049)
Currency swaps
Disclosure Of Cash Flow Statement [line items]
Net cash flow/debt movement	(4)	(3)	4
Exchange adjustment	3	3	(4)
Balance at end of year	(1)
Interest swaps
Disclosure Of Cash Flow Statement [line items]
Balance at beginning of year	(13)		2
Exchange adjustment	20	(13)	(2)
Balance at end of year	7	(13)
Overdrafts
Disclosure Of Cash Flow Statement [line items]
Balance at beginning of year	(6)	(5)	(11)
Net cash flow/debt movement	8	1	7
Exchange adjustment	(4)	(2)	(1)
Balance at end of year	(2)	(6)	(5)
Due within one year
Disclosure Of Cash Flow Statement [line items]
Balance at beginning of year	(154)	(486)	(326)
Net cash flow/debt movement	(604)	302	(162)
Exchange adjustment		23
IFRS 16 lease liabilities movement	(6)	7	2
Balance at end of year	(764)	(154)	(486)
Due after one year
Disclosure Of Cash Flow Statement [line items]
Balance at beginning of year	(2,712)	(2,848)	(3,353)
Net cash flow/debt movement	429	94	429
Exchange adjustment	(39)	45	72
Corporate bond issuance expense	1	3	(1)
IFRS 16 lease liabilities movement	3	(6)	5
Balance at end of year	(2,318)	(2,712)	(2,848)
Cash
Disclosure Of Cash Flow Statement [line items]
Balance at beginning of year	350	1,290	1,762
Net cash flow/debt movement	(48)	(931)	(466)
Exchange adjustment		(9)	(6)
Balance at end of year	$ 302	$ 350	$ 1,290

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, 2023	Dec. 31, 2022	Dec. 31, 2021
CASH FLOW STATEMENT
Net cash flow from cash net of overdrafts	$ (40)	$ (930)	$ (459)
Settlement of currency swaps	(4)	(3)	4
Net cash flow from borrowings	(175)	396	267
Change in net debt from net cash flow	(219)	(537)	(188)
IFRS 16 lease liabilities	(3)	1	7
Exchange adjustment	(20)	47	59
Corporate bond issuance expense	1	3	(1)
Change in net debt in the year	(241)	(486)	(123)
Balance at beginning of year	(2,535)	(2,049)	(1,926)
Balance at end of year	$ (2,776)	$ (2,535)	$ (2,049)

CASH FLOW STATEMENT - Cash and

CASH FLOW STATEMENT - Cash and cash equivalents (Details) $ in Millions	Dec. 31, 2023 USD ($) item		Dec. 31, 2022 USD ($)		Dec. 31, 2021 USD ($)		Dec. 31, 2020 USD ($)
Cash and cash equivalents if different from statement of financial position [abstract]
Cash at bank	$ 302		$ 350		$ 1,290
Bank overdrafts	(2)		(6)		(5)
Cash and cash equivalents	$ 300	[1]	$ 344	[1]	$ 1,285	[1]	$ 1,751
Number of countries in which the company operates | item	100
[1] Cash and cash equivalents is net of bank overdrafts of $2 m (2022: $ 6 m, 2021: $ 5 m).

CASH FLOW STATEMENT - Cash outf

CASH FLOW STATEMENT - Cash outflows (inflows) arising from financing activities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure Of Cash Flow Statement [line items]
Repayment of bank loans	$ 151	$ 881	$ 267
Borrowings of bank loans	(326)
Proceeds from corporate bond issue		485
Repayment of lease liabilities	52	54	59
Cash outflows/(inflows) from other	(4)	(3)	4
Dividends	327	327	329
Purchase of own shares		158
Proceeds from own Shares/issue of ordinary shares		(6)	(14)
Net cash used in financing activities	200	926	645
Debt
Disclosure Of Cash Flow Statement [line items]
Repayment of bank loans	151	881	267
Borrowings of bank loans	(326)
Proceeds from corporate bond issue		485
Repayment of lease liabilities	52	54	59
Cash outflows/(inflows) from other	(4)	(3)	4
Net cash used in financing activities	(127)	447	330
Equity.
Disclosure Of Cash Flow Statement [line items]
Dividends	327	327	329
Purchase of own shares		158
Proceeds from own Shares/issue of ordinary shares		(6)	(14)
Net cash used in financing activities	$ 327	$ 479	$ 315

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ in Millions		12 Months Ended
	Jan. 04, 2021 USD ($) item	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jan. 18, 2022 USD ($)
Disclosure of detailed information about business combination [line items]
Number of businesses acquired, deemed to be business combinations		0
Contingent consideration		$ 32	$ 78
Cash flows used in obtaining control of subsidiaries or other businesses		21	113	$ 285	$ 170
Aggregate identifiable assets acquired and liabilities assumed
Consideration (net of cash acquired)				236	117
Consideration (net of cash acquired)			89	236
Payments of deferred contingent consideration			24	49	53
Goodwill		2,992	3,031	2,989	$ 2,928
Acquisitions			84	96
Exchange adjustment		$ 45	$ (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
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
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

OTHER NOTES TO THE ACCOUNTS - S

OTHER NOTES TO THE ACCOUNTS - Stock Options Outstanding (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) Options shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($)	Dec. 31, 2023 Options £ / shares shares
Share option activities
Number of share options outstanding in share-based payment arrangement at end of period		5,202,000	4,472,000		5,138,000
Maximum number of share options available to grant | shares		7,371,000	5,997,000		8,452,000
Expense for share-based payments | $	$ 39	$ 40	$ 41	$ 41
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, 2023	Dec. 31, 2022	Dec. 31, 2021
Executive officers (including Non-Executive Directors)
Disclosure of transactions between related parties [line items]
Short-term employee benefits	$ 21	$ 17	$ 16
Share-based payments expense	9	10	7
Pension and post-employment benefit entitlements	1	2	1
Total remunerations	31	29	24
Trading transactions - not been disclosed elsewhere in the financial statements
Disclosure of transactions between related parties [line items]
Transaction amount	$ 0	$ 0	$ 0

POST BALANCE SHEET EVENTS (Deta

POST BALANCE SHEET EVENTS (Details) - USD ($) $ in Millions		1 Months Ended	12 Months Ended
	Jan. 04, 2024	Dec. 31, 2023	Dec. 31, 2024	Jan. 09, 2024	Dec. 31, 2022
Disclosure of non-adjusting events after reporting period
Contingent consideration		$ 32			$ 78
Pension plans | United States of America
Disclosure of non-adjusting events after reporting period
Lump sum paid in exchange for outstanding plan benefits		80
Expense recognised on difference between lump sum paid and defined benefit obligation		$ 4
Major business combination | Cartiheal Ltd
Disclosure of non-adjusting events after reporting period
Percentage of share capital acquired				100%
Cash transferred				$ 180
Contingent consideration				$ 150
Termination of US pension plan | Pension plans | United States of America
Disclosure of non-adjusting events after reporting period
Premium amount paid with respect to settlement of plan	$ 245
Termination of US pension plan | Pension plans | United States of America | Forecast
Disclosure of non-adjusting events after reporting period
Gain on annuity purchase contract connected to termination of plan			$ 2