AstraZeneca (AZN) 20-F 5 Mar 19 2018 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2018shares
Statement
Entity Registrant Name	ASTRAZENECA PLC
Entity Central Index Key	901,832
Document Type	20-F
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Entity Filer Category	Large Accelerated Filer
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Document Fiscal Period Focus	FY
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Year Focus	2,018
Ordinary shares
Statement
Entity Common Stock, Shares Outstanding	1,267,039,436
Preference shares
Statement
Entity Common Stock, Shares Outstanding	50,000

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statement of Comprehensive Income
Product Sales	$ 21,049	$ 20,152	$ 21,319
Externalisation Revenue	1,041	2,313	1,683
Total Revenue	22,090	22,465	23,002
Cost of sales	(4,936)	(4,318)	(4,126)
Gross profit	17,154	18,147	18,876
Distribution costs	(331)	(310)	(326)
Research and development expense	(5,932)	(5,757)	(5,890)
Selling, general and administrative costs	(10,031)	(10,233)	(9,413)
Other operating income & expense	2,527	1,830	1,655
Operating profit	3,387	3,677	4,902
Finance income	138	113	67
Finance expense	(1,419)	(1,508)	(1,384)
Share of after tax losses in associates and joint ventures	(113)	(55)	(33)
Profit before tax	1,993	2,227	3,552
Taxation	57	641	(146)
Profit for the period	2,050	2,868	3,406
Other comprehensive income:
Remeasurement of the defined benefit pension liability	(46)	(242)	(575)
Net losses on equity investments measured at fair value through other comprehensive income	(171)
Fair value movements related to own credit risk on bonds designated as fair value through profit or loss	8	(9)
Tax on items that will not be reclassified to profit or loss	56	16	136
Total other comprehensive income that will not be reclassified to profit or loss, net of tax	(153)	(235)	(439)
Foreign exchange arising on consolidation	(450)	536	(1,050)
Foreign exchange arising on designating borrowings in net investment hedges	(520)	505	(591)
Fair value movements on cash flow hedges	(37)	311	(115)
Fair value movements on cash flow hedges transferred to profit or loss	111	(315)	195
Fair value movements on derivatives designated in net investment hedges	(8)	(48)	(4)
Amortisation of loss on cash flow hedge	1	1	1
Costs of hedging	(54)
Net available for sale (losses)/gains taken to equity		(83)	139
Tax on items that may be reclassified subsequently to profit or loss	51	(33)	86
Total other comprehensive income that will be reclassified to profit or loss, net of tax	(906)	874	(1,339)
Other comprehensive (loss) / income for the period, net of tax	(1,059)	639	(1,778)
Total comprehensive income for the period	991	3,507	1,628
Owners of the Parent	2,155	3,001	3,499
Non-controlling interests	(105)	(133)	(93)
Total comprehensive income attributable to:
Owners of the Parent	1,097	3,640	1,722
Non-controlling interests	(106)	(133)	(94)
Total comprehensive income for the period	$ 991	$ 3,507	$ 1,628
Basic earnings loss per (in dollars per share)	$ 1.70	$ 2.37	$ 2.77
Diluted earnings loss per Share (in dollars per share)	$ 1.70	$ 2.37	$ 2.76
Weighted average number of Ordinary Shares in issue for basic earnings	1,267	1,266	1,265
Diluted weighted average number of Ordinary Shares in issue (millions)	1,267	1,267	1,266
Dividends declared and paid in the period	$ 3,539	$ 3,543	$ 3,540

Consolidated Statement of Com_2

Consolidated Statement of Comprehensive Income (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statement of Comprehensive Income
Par value per ordinary share	$ 0.25	$ 0.25	$ 0.25

Consolidated Statement of Finan

Consolidated Statement of Financial Position - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Non-current assets
Property, plant and equipment	$ 7,421	$ 7,615	$ 6,848
Goodwill	11,707	11,825	11,658
Intangible assets	21,959	26,188	27,586
Derivative financial instruments	157	504	343
Investments in associates and joint ventures	89	103	99
Other investments	833	933	727
Other receivables	515	847	901
Deferred tax assets	2,379	2,189	1,102
Total non-current assets	45,060	50,204	49,264
Current assets
Inventories	2,890	3,035	2,334
Trade and other receivables	5,574	5,009	4,573
Other investments	849	1,230	884
Derivative financial instruments	258	28	27
Income tax receivable	207	524	426
Cash and cash equivalents	4,831	3,324	5,018
Assets held for sale	982	0	0
Total current assets	15,591	13,150	13,262
Total assets	60,651	63,354	62,526
Current liabilities
Current debt	(1,754)	(2,247)	(2,307)
Trade and other payables	(12,841)	(11,641)	(10,486)
Derivative financial instruments	(27)	(24)	(18)
Provisions	(506)	(1,121)	(1,065)
Income tax payable	(1,164)	(1,350)	(1,380)
Current liabilities	(16,292)	(16,383)	(15,256)
Non-current liabilities
Interest-bearing loans and borrowings	(17,359)	(15,560)	(14,501)
Derivative financial instruments	(4)	(4)	(117)
Deferred tax liabilities	(3,286)	(3,995)	(3,956)
Retirement benefit obligations	(2,511)	(2,583)	(2,186)
Provisions	(385)	(347)	(353)
Other payables	(6,770)	(7,840)	(9,488)
Total non-current liabilities	(30,315)	(30,329)	(30,601)
Total liabilities	(46,607)	(46,712)	(45,857)
Net assets	14,044	16,642	16,669
Equity
Share capital	317	317	316
Share premium account	4,427	4,393	4,351
Capital redemption reserve	153	153	153
Merger reserve	448	448	448
Other reserves	1,440	1,428	1,446
Retained earnings	5,683	8,221	8,140
Total equity attributable to owners of parent	12,468	14,960	14,854
Non-controlling interests	1,576	1,682	1,815
Total equity	$ 14,044	$ 16,642	$ 16,669

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity - USD ($) $ in Millions	Share Capital	Share Premium account	Capital redemption reserve.	Merger reserve.	Other reserves	Retained earnings.	Total attributable to owners	Non-controlling interests.	Total
Equity at beginning of period at Dec. 31, 2015	$ 316	$ 4,304	$ 153	$ 448	$ 1,435	$ 11,834	$ 18,490	$ 19	$ 18,509
Profit for the period						3,499	3,499	(93)	3,406
Other comprehensive (loss) income						(1,777)	(1,777)	(1)	(1,778)
Transfer to other reserves					11	(11)
Dividends						(3,540)	(3,540)		(3,540)
Dividends paid by subsidiary to non-controlling interest								(13)	(13)
Acerta Pharma put option (Note 25)						(1,825)	(1,825)		(1,825)
Changes in non-controlling interest (Note 25)								1,903	1,903
Issue of Ordinary Shares		47					47		47
Share-based payments charge for the period						241	241		241
Settlement of share plan awards						(281)	(281)		(281)
Net movement		47			11	(3,694)	(3,636)	1,796	(1,840)
Equity at end of period at Dec. 31, 2016	316	4,351	153	448	1,446	8,140	14,854	1,815	16,669
Profit for the period						3,001	3,001	(133)	2,868
Other comprehensive (loss) income						639	639		639
Transfer to other reserves					(18)	18
Dividends						(3,543)	(3,543)		(3,543)
Issue of Ordinary Shares	1	42					43		43
Share-based payments charge for the period						220	220		220
Settlement of share plan awards						(254)	(254)		(254)
Net movement	1	42			(18)	81	106	(133)	(27)
Equity at end of period at Dec. 31, 2017	317	4,393	153	448	1,428	8,221	14,960	1,682	16,642
Profit for the period						2,155	2,155	(105)	2,050
Other comprehensive (loss) income						(1,058)	(1,058)	(1)	(1,059)
Transfer to other reserves					12	(12)
Dividends						(3,539)	(3,539)		(3,539)
Issue of Ordinary Shares		34					34		34
Share-based payments charge for the period						219	219		219
Settlement of share plan awards						(212)	(212)		(212)
Net movement		34			12	(2,538)	(2,492)	(106)	(2,598)
Equity at end of period at Dec. 31, 2018	$ 317	$ 4,427	$ 153	$ 448	$ 1,440	5,683	12,468	$ 1,576	14,044
Adoption of new accounting standard						$ (91)	$ (91)		$ (91)

Consolidated Statement of Cha_2

Consolidated Statement of Changes in Equity (Parenthetical) $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)
Other comprehensive (loss) income	$ (1,059)
Costs of hedging	54
Total attributable to owners
Other comprehensive (loss) income	(1,058)
Costs of hedging	$ 54

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities
Profit before tax	$ 1,993	$ 2,227	$ 3,552
Finance income and expense	1,281	1,395	1,317
Share of after tax losses in associates and joint ventures	113	55	33
Depreciation, amortisation and impairment	3,753	3,036	2,357
(Increase)/decrease in trade and other receivables	(523)	83	1,610
Increase in inventories	(13)	(548)	(343)
(Decrease)/increase in trade and other payables and provisions	(103)	415	(341)
Gains on disposal of intangible assets	(1,885)	(1,518)	(1,301)
Fair value movements on contingent consideration arising from business combinations	(495)	109	(1,158)
Non-cash and other movements	(290)	(524)	(492)
Cash generated from operations	3,831	4,730	5,234
Interest paid	(676)	(698)	(677)
Tax paid	(537)	(454)	(412)
Net cash (outflow)/inflow from operating activities	2,618	3,578	4,145
Cash flows from investing activities
Non-contingent payments on business combinations		(1,450)	(2,564)
Movement in short-term investments and fixed deposits	405	(345)	(166)
Purchase of property, plant and equipment	(1,043)	(1,326)	(1,446)
Disposal of property, plant and equipment	12	83	82
Purchase of intangible assets	(328)	(294)	(868)
Disposal of intangible assets	2,338	1,376	1,427
Purchase of non-current asset investments	(102)	(96)	(230)
Disposal of non-current asset investments	24	70	3
Payments to joint ventures	(187)	(76)	(41)
Payment of contingent consideration from business combinations	(349)	(434)	(293)
Interest received	193	164	140
Payments made by subsidiaries to non-controlling interests			(13)
Net cash inflow/(outflow) from investing activities	963	(2,328)	(3,969)
Net cash inflow before financing activities	3,581	1,250	176
Cash flows from financing activities
Proceeds from issue of share capital	34	43	47
Issue of loans	2,971	1,988	2,491
Repayment of loans	(1,400)	(1,750)
Dividends paid	(3,484)	(3,519)	(3,561)
Hedge contracts relating to dividend payments	(67)	(20)	18
Repayment of obligations under finance leases		(14)	(16)
Movement in short-term borrowings	(98)	336	(303)
Net cash outflow from financing activities	(2,044)	(2,936)	(1,324)
Net increase/(decrease) in Cash and cash equivalents in the period	1,537	(1,686)	(1,148)
Cash and cash equivalents at the beginning of the period	3,172	4,924	6,051
Exchange rate effects	(38)	(66)	21
Cash and cash equivalents at the end of the period	4,671	3,172	4,924
Cash and cash equivalents	4,831	3,324	5,018
Overdrafts	$ (160)	$ (152)	$ (94)

Group Accounting Policies

Group Accounting Policies	12 Months Ended
	Dec. 31, 2018
Group Accounting Policies
Group Accounting Policies	Basis of accounting and preparation of financial information The Consolidated Financial Statements have been prepared under the historical cost convention, modified to include revaluation to fair value of certain financial instruments as described below, in accordance with the Companies Act 2006 and International Financial Reporting Standards (IFRSs) as adopted by the EU (adopted IFRSs) in response to the IAS regulation (EC 1606/2002). The Consolidated Financial Statements also comply fully with IFRSs as issued by the International Accounting Standards Board (IASB). The adoption of IFRS 9 ‘Financial Instruments’ from 1 January 2018 has resulted in changes to the Group’s accounting policies. IFRS 9 replaced the provisions of IAS 39 that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting. In accordance with the transitional provisions in IFRS 9, comparative figures have not been restated and the Group has identified that there was no material impact on the Group’s Retained earnings as at 1 January 2018. (i) Classification and measurement On the date of initial application, 1 January 2018, the Group’s management has assessed which business models apply to the financial assets and financial liabilities held by the Group and has classified its financial instruments into the appropriate IFRS 9 categories. The main effects resulting from this reclassification are as follows: Measurement Carrying category amounts Original New Original New Difference (IAS 39) (IFRS 9) $m $m $m Non-current financial assets Other investments Equity securities 1 Available for sale FVOCI 933 933 – Derivative financial instruments Held for trading FVPL 504 504 – Other receivables Amortised cost Amortised cost 489 489 – Current financial assets Trade and other receivables Trade receivables - not subject to factoring Amortised cost Amortised cost 2,475 2,475 – Trade receivables - subject to factoring 2 Amortised cost FVOCI 327 327 – Other receivables Amortised cost Amortised cost 949 949 – Other investments Equity securities and bonds 3 Available for sale FVPL 1,150 1,150 – Fixed Deposits Amortised cost Amortised cost 80 80 – Derivative financial instruments Held for trading FVPL 28 28 – Cash and cash equivalents Cash at bank and in hand Amortised cost Amortised cost 784 784 – Short-term deposits excluding money market funds Amortised cost Amortised cost 1,391 1,391 – Money market funds 4 Amortised cost FVPL 1,149 1,149 – Current financial liabilities Derivative financial instruments Held for trading FVPL (24) (24) – Non-current financial liabilities Derivative financial instruments Held for trading FVPL (4) (4) – 1 Equity securities investments reclassified from available to sale to assets at fair value through Other comprehensive income. These are strategic investments held directly in other pharmaceutical and biotech companies. 2 Trade receivables that are subject to debt factoring arrangements were held at amortised cost under IAS 39. Under IFRS 9 these receivables are held under the ‘hold to collect and sell’ business model at fair value through other comprehensive income, however their carrying value and their fair value are considered to be materially the same. 3 Equity security investments reclassified from available to sale to assets at fair value through profit or loss. These are primarily short-term assets invested as part of our cash management strategy to maximise gains on our liquid resources. 4 Money market funds – the Group is invested in constant net asset value funds where liquidity is offered with same day access for subscription and redemption. Because they fail the ‘solely payments of principal and interest’ test criteria under IFRS 9 they are measured at fair value through profit or loss, although the fair value is materially the same as amortised cost. (ii) Derivatives and hedging activities The Group’s risk management strategies and hedge documentation are aligned with the requirements of IFRS 9. All hedge relationships designated under IAS 39 are treated as continuing hedges under IFRS 9 and there was no impact from the adoption of IFRS 9 on prior periods. (iii) Impairment of financial assets The Group has financial assets that are subject to the new IFRS 9 expected credit loss model and the Group was required to revise its impairment methodology under IFRS 9 for these assets. The identified impairment change at 1 January 2018 was immaterial and the impact of the change in impairment methodology on the Group’s Retained earnings was assessed as nil. From 1 January 2018, the Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost and fair value through Other comprehensive income. In the prior year, the impairment of trade receivables was assessed based on the incurred loss model. The Group established an allowance for impairment that represented its estimate of incurred losses where it was deemed that a receivable may not have been recoverable. When the debt was deemed irrecoverable the allowance account was written off against the underlying receivable. The Group has adopted IFRS 15 ‘Revenue from Contracts with Customers’ which replaces existing accounting standards. It provides enhanced detail on the principle of recognising revenue to reflect the transfer of goods and services to customers at a value which the Group expects to be entitled to receive. The standard also updates revenue disclosure requirements. The standard has not had a material impact on the revenue streams from the supply of goods and associated rebates and returns provisions. The timing of the recognition of product sales and the basis for the estimates of sales deductions under IAS 18 are consistent with those adopted under IFRS 15. The previous accounting for externalisation transactions under IAS 18 includes an analysis of the performance obligations under the arrangement and upfront revenue recognition requires the transfer of substantive rights, for example a licence to use the intellectual property and an appropriate allocation of revenue to the remaining performance obligations. While the basis for such allocation is different in IFRS 15, the impact of the adoption of the new standard on the historical allocations is not material. The licences we grant are typically rights to use the intellectual property, which does not change during the period of the licence. Those licences are generally unique and therefore the basis of allocation of revenue to performance obligations makes use of the residual approach as permitted by IFRS 15. The related sales milestones and royalties to these licences qualify for the royalty exemption available under IFRS 15 and will continue to be recognised as the underlying sales are made. Furthermore, there is no material change to the assessment of whether the performance obligations are distinct from applying the new standard. The Group has retrospectively applied the standard from 1 January 2018 recognising the cumulative effect of initially applying the standard as an increase to contract liabilities, which are a component of Trade and other payables of $133m to defer Externalisation Revenue previously recognised, an increase to Prepayments and accrued income, which are a component of Trade and other receivables of $20m to recognise Externalisation Revenue previously not recognised, a total related tax adjustment of $22m and a corresponding net adjustment to the opening balance of Retained earnings of $91m. There is no restatement to prior periods as permitted in the transition rules for IFRS 15. The impact of initial application in the year to 31 December 2018 as compared with the year to 31 December 2017 is the recognition of additional Externalisation Revenue of $27m in the year to 31 December 2018. In addition to the above standard amendments and new adoptions, effective from 1 January 2018, the Group has changed its presentation of Trade and other payables resulting in the following: (1) Liabilities for product returns, discounts and other product sales adjustments are shown together with liabilities for rebates and chargebacks; (2) Clinical trial accruals and the Acerta Pharma put option liability are shown separately; (3) Other trade-related accruals are shown within Other accruals. The revised presentation has no impact on the total of Trade and other payables, the Group’s Statement of Financial Position, the Statement of Cash Flows or the Statement of Comprehensive Income. After applying the requirements of IFRS 15 for revenue contract related liabilities, and following an internal review of the presentation of liabilities, the Group considers that further disaggregation of the balances in Trade and other Payables would improve the clarity and understanding of those balances. The Group has revised the comparative presentation of Trade and other payables in Note 19 for the changes related to: (1) liabilities for product returns, discounts and other product sales adjustments; and (2) clinical trial accruals and the Acerta Pharma put option. The Group has assessed the change related to (3) other trade-related accruals as not material for revision under IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ and therefore the comparative presentation of Trade and other payables in Note 19 has not been revised for this presentational change. During the year, the Group has adopted the amendments to IFRS 2 ‘Classification and Measurement of Share-based Payment Transactions’ and the interpretation within IFRIC 22 ‘Foreign Currency Transactions and Advance Consideration’. The adoptions have not had a significant impact on the Group’s Statement of Comprehensive Income, Statement of Financial Position and Statement of Cash Flows. The Consolidated Financial Statements are presented in US dollars, which is the Company’s functional currency. In preparing their individual financial statements, the accounting policies of some overseas subsidiaries do not conform with IASB issued IFRSs. Therefore, where appropriate, adjustments are made in order to present the Consolidated Financial Statements on a consistent basis. Basis for preparation of Financial Statements on a going concern basis The Group has considerable financial resources available. As at 31 December 2018, the Group has $7.1bn in financial resources (cash balances of $4.8bn and undrawn committed bank facilities of $4.1bn, of which $3.4bn is available until April 2022, $0.5bn is available until December 2020 (extendable to December 2021) and $0.2bn is available until December 2019 (extendable to December 2020), with only $1.8bn of debt due within one year). The Group’s revenues are largely derived from sales of products which are covered by patents which provide a relatively high level of resilience and predictability to cash inflows, although our revenue is expected to continue to be significantly impacted by the expiry of patents over the medium term. In addition, government price interventions in response to budgetary constraints are expected to continue to adversely affect revenues in many of our mature markets. However, we anticipate new revenue streams from both recently launched medicines and products in development, and the Group has a wide diversity of customers and suppliers across different geographic areas. Consequently, the Directors believe that, overall, the Group is well placed to manage its business risks successfully. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Financial Statements. Estimates and judgements The preparation of the Financial Statements in conformity with generally accepted accounting principles requires management to make estimates and judgements that affect the reported amounts of assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Judgements include matters such as the determination of operating segments while estimates focus on areas such as carrying values, estimated useful lives of Intangible assets, potential obligations and Contingent consideration. The accounting policy descriptions set out the areas where judgements and estimates need exercising, the most significant of which are revenue recognition, research and development (including impairment reviews of associated Intangible assets), business combinations and Goodwill (and Contingent consideration arising from business combinations), litigation and environmental liabilities, employee benefits and taxation. Financial risk management policies are detailed in Note 27. AstraZeneca’s management considers the following to be the most important accounting policies in the context of the Group’s operations. Revenue Revenues comprise Product Sales and Externalisation Revenue. Product Sales are revenues arising from contracts with customers. Externalisation Revenue arises from other contracts. However, the recognition and measurement principles of IFRS 15 are applied as set out below. Revenues exclude inter-company revenues and value-added taxes. Product Sales Product Sales represent net invoice value less estimated rebates, returns and chargebacks, which are considered to be key estimates. Sales are recognised when the control of the goods has been transferred to a third party. This is usually when title passes to the customer, either on shipment or on receipt of goods by the customer, depending on local trading terms. In markets where returns are significant, estimates of returns are accounted for at the point revenue is recognised. For the markets where returns are significant, we estimate the quantity and value of goods which may ultimately be returned at the point of sale. Our returns accruals are based on actual experience over the preceding 12 months for established products together with market-related information such as estimated stock levels at wholesalers and competitor activity which we receive via third party information services. For newly launched products, we use rates based on our experience with similar products or a predetermined percentage. When a product faces generic competition, particular attention is given to the possible levels of returns and, in cases where the circumstances are such that the level of returns are considered highly probable to reverse, revenues are only recognised when the right of return expires, which is generally on ultimate prescription of the product to patients. Under certain collaboration agreements which include a profit sharing mechanism, our recognition of Product Sales depends on which party acts as principal in sales to the end customer. In the cases where AstraZeneca acts as principal, we record 100% of sales to the end customer. Externalisation Revenue Externalisation Revenue includes income from collaborative arrangements on the Group’s products where the Group has sold certain rights associated with those products, but retains a significant ongoing economic interest, through for example the ongoing supply of finished goods or participation in profit share arrangements. These arrangements may include development arrangements, commercialisation arrangements and collaborations. Income may take the form of upfront fees, milestones, profit sharing and royalties. The licences we grant are typically rights to use intellectual property which do not change during the period of the licence. Those licences are generally unique and therefore, the basis of allocation of the consideration makes use of the residual approach as permitted by IFRS 15. These arrangements typically involve the receipt of an upfront payment, which the contract attributes to the sale of the Intangible assets, and ongoing receipts, which the contract attributes to the sale of the product we manufacture. In cases where the transaction has two or more components, we account for the delivered item (for example, the transfer of title to the intangible asset) as a separate unit of accounting and record revenue on delivery of that component, provided that we can make a reasonable estimate of the fair value of the undelivered component. Where non-contingent amounts are payable over one year from the effective date of a contract, an assessment is made as to whether a significant financing component exists, and if so, the fair value of this component is deferred and recognised over the period to the expected date of receipt. Where control of a right to use intangible asset passes at the outset of an arrangement, revenue is recognised at the point in time control is transferred. Where the substance of an arrangement is that of a right to access rights attributable to an Intangible asset, revenue is recognised over time, normally on a straight-line basis over the life of the contract. Where the fair market value of the undelivered component (for example, a manufacturing agreement) exceeds the contracted price for that component, we defer an appropriate element of the upfront consideration and amortise this over the performance period. However, where the fair market value of the undelivered component is equal to or lower than the contracted price for that component, we treat the whole of the upfront amount as being attributable to the delivered Intangible assets and recognise that part of the revenue upon delivery. No element of the contracted revenue related to the undelivered component is ordinarily allocated to the sale of the Intangible asset. This is because the contracted revenue relating to the undelivered component is contingent on future events (such as sales) and cannot be recognised until either receipt of the amount is highly probable or where the consideration is received for a licence of intellectual property, on the occurrence of the related sales. Where the Group provides ongoing services, revenue in respect of this element is recognised over the duration of those services. Where the arrangement meets the definition of a licence agreement, sales milestones and sales royalties are recognised when achieved by applying the royalty exemption under IFRS 15. All other milestones and sales royalties are recognised when considered highly probable. The determination of highly probable represents a key judgement. Where Externalisation Revenue is recorded and there is a related Intangible asset, an appropriate amount of that intangible asset is charged to Cost of sales based on an allocation of cost or value to the rights that have been sold. Cost of sales Cost of sales are recognised as the associated revenue is recognised. Cost of sales include manufacturing costs, royalties payable on revenues recognised, movements in provisions for inventories, inventory write offs and impairment charges in relation to manufacturing assets. Cost of sales also includes partner profit shares arising from collaborations, and foreign exchange gains and losses arising from business trading activities. Research and development Research expenditure is recognised in profit in the year in which it is incurred. Internal development expenditure is capitalised only if it meets the recognition criteria of IAS 38 ‘Intangible Assets’. This is considered a key judgement. Where regulatory and other uncertainties are such that the criteria are not met, the expenditure is recognised in profit and this is almost invariably the case prior to approval of the drug by the relevant regulatory authority. Where, however, recognition criteria are met, Intangible assets are capitalised and amortised on a straight-line basis over their useful economic lives from product launch. At 31 December 2018, no amounts have met recognition criteria. Payments to in-license products and compounds from third parties for new research and development projects (in process research and development) generally take the form of upfront payments, milestones and royalty payments. Where payments made to third parties represent future research and development activities, an evaluation is made as to the nature of the payments. Such payments are expensed if they represent compensation for sub-contracted research and development services not resulting in a transfer of intellectual property. By contrast, payments are capitalised if they represent compensation for the transfer of identifiable intellectual property developed at the risk of the third party. Development milestone payments relating to identifiable intellectual property are capitalised as the milestone is triggered. Any upfront or milestone payments for research activities where there is no associated identifiable intellectual property are expensed. Assets capitalised are amortised, on a straight-line basis, over their useful economic lives from product launch. The determination of the useful economic life is considered a key judgement. Intangible assets relating to products in development are subject to impairment testing annually. All Intangible assets are tested for impairment when there are indications that the carrying value may not be recoverable. The determination of the recoverable amounts include key estimates which are highly sensitive to, and depend upon, key assumptions as detailed in Note 9. Any impairment losses are recognised immediately in profit. Intangible assets relating to products which fail during development (or for which development ceases for other reasons) are also tested for impairment and are written down to their recoverable amount (which is usually nil). If, subsequent to an impairment loss being recognised, development restarts or other facts and circumstances change indicating that the impairment is less or no longer exists, the value of the asset is re-estimated and its carrying value is increased to the recoverable amount, but not exceeding the original value, by recognising an impairment reversal in profit. Business combinations and goodwill On the acquisition of a business, fair values are attributed to the identifiable assets and liabilities. Attributing fair values is a key judgement. Contingent liabilities are also recorded at fair value unless the fair value cannot be measured reliably, in which case the value is subsumed into goodwill. Where the Group fully acquires, through a business combination, assets that were previously held in joint operations, the Group has elected not to uplift the book value of the existing interest in the asset held in the joint operation to fair value at the date full control is taken. Where fair values of acquired contingent liabilities cannot be measured reliably, the assumed contingent liability is not recognised but is disclosed in the same manner as other contingent liabilities. Where not all of the equity of a subsidiary is acquired, the non-controlling interest is recognised either at fair value or at the non-controlling interest’s proportionate share of the net assets of the subsidiary, on a case-by-case basis. Put options over non-controlling interests are recognised as a financial liability, with a corresponding entry in either retained earnings or against non-controlling interest reserves on a case-by-case basis. The timing and amount of future contingent elements of consideration is considered a key estimate. Contingent consideration, which may include development and launch milestones, revenue threshold milestones and revenue-based royalties, is fair valued at the date of acquisition using decision-tree analysis with key inputs including probability of success, consideration of potential delays and revenue projections based on the Group’s internal forecasts. Unsettled amounts of consideration are held at fair value within payables with changes in fair value recognised immediately in profit. Goodwill is the difference between the fair value of the consideration and the fair value of net assets acquired. Goodwill arising on acquisitions is capitalised and subject to an impairment review, both annually and when there is an indication that the carrying value may not be recoverable. The Group’s policy up to and including 1997 was to eliminate Goodwill arising upon acquisitions against reserves. Under IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’ and IFRS 3 ‘Business Combinations’, such Goodwill will remain eliminated against reserves. Joint arrangements and associates The Group has arrangements over which it has joint control and which qualify as joint operations or joint ventures under IFRS 11 ‘Joint Arrangements’. For joint operations, the Group recognises its share of revenue that it earns from the joint operations and its share of expenses incurred. The Group also recognises the assets associated with the joint operations that it controls and the liabilities it incurs under the joint arrangement. For joint ventures and associates, the Group recognises its interest in the joint venture or associate as an investment and uses the equity method of accounting. Employee benefits The Group accounts for pensions and other employee benefits (principally healthcare) under IAS 19 ‘Employee Benefits’. In respect of defined benefit plans, obligations are measured at discounted present value while plan assets are measured at fair value. Given the extent of the assumptions used to determine these values, these are considered to be key estimates. The operating and financing costs of such plans are recognised separately in profit, current service costs are spread systematically over the lives of employees and financing costs are recognised in full in the periods in which they arise. Remeasurements of the net defined benefit pension liability, including actuarial gains and losses, are recognised immediately in Other comprehensive income. Where the calculation results in a surplus to the Group, the recognised asset is limited to the present value of any available future refunds from the plan or reductions in future contributions to the plan. Payments to defined contribution plans are recognised in profit as they fall due. Taxation The current tax payable is based on taxable profit for the year. Taxable profit differs from reported profit because taxable profit excludes items that are either never taxable or tax deductible or items that are taxable or tax deductible in a different period. The Group’s current tax assets and liabilities are calculated using tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the asset can be utilised. This requires judgements to be made in respect of the availability of future taxable income. No deferred tax asset or liability is recognised in respect of temporary differences associated with investments in subsidiaries and branches where the Group is able to control the timing of reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. The Group’s Deferred tax assets and liabilities are calculated using tax rates that are expected to apply in the period when the liability is settled or the asset realised based on tax rates that have been enacted or substantively enacted by the reporting date. Accruals for tax contingencies require management to make judgements of potential exposures in relation to tax audit issues. Tax benefits are not recognised unless the tax positions will probably be sustained based upon management’s interpretation of applicable laws and regulations and the likelihood of settlement. Once considered probable of not being sustained, management reviews each material tax benefit to assess whether a provision should be taken against full recognition of the benefit on the basis of potential settlement through negotiation and/or litigation. Accruals for tax contingencies are measured using the single best estimate of likely outcome approach. Further details of the estimates and assumptions made in determining our recorded liability for transfer pricing contingencies and other tax contingencies are included in Note 29 to the Financial Statements. Share-based payments All plans are assessed and have been classified as equity settled. The grant date fair value of employee share plan awards is calculated using a Monte Carlo model. In accordance with IFRS 2 ‘Share-based Payment’, the resulting cost is recognised in profit over the vesting period of the awards, being the period in which the services are received. The value of the charge is adjusted to reflect expected and actual levels of awards vesting, except where the failure to vest is as a result of not meeting a market condition. Cancellations of equity instruments are treated as an acceleration of the vesting period and any outstanding charge is recognised in profit immediately. Property, plant and equipment The Group’s policy is to write off the difference between the cost of each item of Property, plant and equipment and its residual value over its estimated useful life on a straight-line basis. Assets under construction are not depreciated. Reviews are made annually of the estimated remaining lives and residual values of individual productive assets, taking account of commercial and technological obsolescence as well as normal wear and tear. It is impractical to calculate average asset lives exactly. However, the total lives range from approximately 10 to 50 years for buildings, and three to 15 years for plant and equipment. All items of Property, plant and equipment are tested for impairment when there are indications that the carrying value may not be recoverable. Any impairment losses are recognised immediately in profit. Borrowing costs The Group has no borrowing costs with respect to the acquisition or construction of qualifying assets. All other borrowing costs are recognised in profit as incurred and in accordance with the effective interest rate method. Leases Leases are classified as finance leases if they transfer substantially all the risks and rewards incidental to ownership, otherwise they are classified as operating leases. Assets and liabilities arising on finance leases are initially recognised at fair value or, if lower, the present value of the minimum lease payments. The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease. Finance charges under finance leases are allocated to each reporting period so as to produce a constant periodic rate of interest on the remaining balance of the finance liability. Rentals under operating leases are charged to profit on a straight-line basis. Subsidiaries A subsidiary is an entity controlled, directly or indirectly, by AstraZeneca PLC. Control is regarded as the exposure or rights to the variable returns of the entity when combined with the power to affect those returns. The financial results of subsidiaries are consolidated from the date control is obtained until the date that control ceases. Inventories Inventories are stated at the lower of cost and net realisable value. The first in, first out or an average method of valuation is used. For finished goods and work in progress, cost includes directly attributable costs and certain overhead expenses (including depreciation). Selling expenses and certain other overhead expenses (principally central administration costs) are excluded. Net realisable value is determined as estimated selling price less all estimated costs of completion and costs to be incurred in selling and distribution. Write-downs of inventory occur in the general course of business and are recognised in cost of sales for launched products and research and development costs for products in development. Assets held for sale Non-current assets are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. A sale is usually considered highly probable only when an appropriate level of management has committed to the sale. Assets held for sale are stated at the lower of carrying amount and fair value less costs to sell. Where there is a partial transfer of a non-current asset to held for sale,

Revenue

Revenue	12 Months Ended
	Dec. 31, 2018
Revenue
Revenue	1 Revenue Product Sales Emerging Rest of Emerging Rest of Emerging Rest of Markets US Europe World Total Markets US Europe World Total Markets US Europe World Total $m $m $m $m $m $m $m $m $m $m $m $m $m $m $m Oncology: Tagrisso 347 869 314 330 1,860 135 405 187 228 955 10 254 76 83 423 Faslodex 154 537 221 116 1,028 115 492 256 78 941 96 438 228 68 830 Zoladex 409 8 133 202 752 353 15 141 226 735 355 35 156 270 816 Lynparza 51 345 190 61 647 18 141 130 8 297 7 127 81 3 218 Imfinzi 6 564 27 36 633 – 19 – – 19 – – – – – Iressa 286 26 109 97 518 251 39 112 126 528 233 23 120 137 513 Arimidex 132 – 31 49 212 118 7 34 58 217 110 14 37 71 232 Casodex 113 1 20 67 201 108 (1) 22 86 215 107 2 27 111 247 Calquence – 62 – – 62 – 3 – – 3 – – – – – Others 30 – 8 77 115 28 – 3 83 114 25 – 8 71 104 1,528 2,412 1,053 1,035 6,028 1,126 1,120 885 893 4,024 943 893 733 814 3,383 Cardiovascular, Renal and Metabolism: Crestor 841 170 203 219 1,433 784 373 666 542 2,365 721 1,223 866 591 3,401 Farxiga 336 591 315 149 1,391 232 489 242 111 1,074 133 457 187 58 835 Brilinta 326 588 348 59 1,321 224 509 295 51 1,079 189 348 258 44 839 Seloken/Toprol-XL 641 39 19 13 712 593 37 52 13 695 536 95 90 16 737 Bydureon 8 475 81 20 584 9 458 88 19 574 4 463 100 11 578 Onglyza 172 223 89 59 543 130 320 104 57 611 142 376 132 70 720 Atacand 157 13 70 20 260 178 19 86 17 300 162 36 97 20 315 Byetta 8 74 29 15 126 12 114 34 16 176 24 164 45 21 254 Symlin – 34 – – 34 – 48 – – 48 – – – – – Others 206 (1) 76 25 306 205 4 92 43 344 228 40 119 50 437 2,695 2,206 1,230 579 6,710 2,367 2,371 1,659 869 7,266 2,139 3,202 1,894 881 8,116 Respiratory: Symbicort 495 862 773 431 2,561 439 1,099 819 446 2,803 402 1,242 909 436 2,989 Pulmicort 995 116 90 85 1,286 840 156 92 88 1,176 698 174 99 90 1,061 Fasenra 1 218 32 46 297 – 1 – – 1 – – – – – Daliresp/Daxas 5 155 28 1 189 4 167 26 1 198 4 134 15 1 154 Tudorza/Eklira 1 25 74 10 110 2 66 73 9 150 1 77 83 9 170 Duaklir 1 – 91 3 95 – – 77 2 79 1 – 60 2 63 Bevespi – 33 – – 33 – 16 – – 16 – – – – – Others 146 7 141 46 340 103 4 129 47 283 137 11 118 50 316 1,644 1,416 1,229 622 4,911 1,388 1,509 1,216 593 4,706 1,243 1,638 1,284 588 4,753 Other: Nexium 690 306 235 471 1,702 684 499 248 521 1,952 690 554 251 537 2,032 Synagis 1 287 377 – 665 – 317 370 – 687 – 325 352 – 677 Seroquel XR /IR 118 108 107 28 361 151 193 127 37 508 159 572 190 46 967 Losec/Prilosec 161 7 70 34 272 140 11 77 43 271 128 10 83 55 276 FluMist/Fluenz 1 15 91 3 110 (1) – 76 3 78 1 33 64 6 104 Movantik/Moventig – 108 – 1 109 – 120 2 – 122 1 90 – – 91 Others 53 11 67 50 181 294 29 93 122 538 490 48 213 169 920 1,024 842 947 587 3,400 1,268 1,169 993 726 4,156 1,469 1,632 1,153 813 5,067 Product Sales 6,891 6,876 4,459 2,823 21,049 6,149 6,169 4,753 3,081 20,152 5,794 7,365 5,064 3,096 21,319 Product Sales represents net invoice value less estimated rebates, returns and chargebacks, which are considered to be key estimates. The major market where estimates are seen as significant is the US and when invoicing Product Sales in the US, we estimate the rebates and chargebacks we expect to pay. The adjustment in respect of prior year net US Product Sales in 2018 was 3.2% (2017: 8.9%; 2016: 6.0%). Externalisation Revenue $m $m $m Global co-development and commercialisation of Lynparza and selumetinib with MSD 790 1,247 – Licence agreement for Crestor in Spain with Almirall 61 – – Transfer of rights to Zoladex in the US and Canada to TerSera 35 250 – Transfer of rights to anaesthetics medicines to Aspen – 150 520 Licence of rights to brodalumab to Valeant and LEO Pharma – 150 – Co-development and commercialisation of MEDI8897 with Sanofi – 127 – Commercial rights to Plendil in China to CMS – – 298 Transfer of rights to Toprol-XL in the US to Aralez – – 175 Licence of rights to tralokinumab to LEO Pharma – – 115 Grant of authorised generic rights to various medicines in Japan 41 45 42 Other externalisation upfronts 10 114 158 Other externalisation milestones 4 87 203 Royalty income 49 108 119 Other externalisation revenue 51 35 53 1,041 2,313 1,683 Included with Externalisation Revenue is $35m relating to contract liabilities recognised at 1 January 2018.

Operating profit

Operating profit	12 Months Ended
	Dec. 31, 2018
Operating profit
Operating profit	2 Operating profit Operating profit includes the following significant items: Selling, general and administrative costs In 2018, Selling, general and administrative costs includes a credit of $482m (2017: charge of $208m; 2016: credit of $999m) resulting from changes in the fair value of Contingent consideration arising from the acquisition of the diabetes alliance from BMS. These adjustments reflect revised estimates for future sales performance for the products acquired and, as a result, revised estimates for future royalties payable. In 2018, Selling, general and administrative costs also includes a credit of $113m (2017: $209m; 2016: $41m) resulting from changes in estimates of the cash flows arising from the put option over the non-controlling interest in Acerta Pharma. In 2018, Selling, general and administrative costs also includes a credit of $219m (2017: charge of $241m; 2016: charge of $223m) of legal provisions relating to a number of legal proceedings in various jurisdictions in relation to several marketed products. Further details of impairment charges for 2018, 2017 and 2016 are included in Notes 7 and 9. Other operating income and expense $m $m $m Royalties Income 96 132 406 Amortisation (4) (45) (86) Gains on disposal of intangible assets 1,885 1,518 1,301 Gains on disposal of short-term investments – 161 – Net (losses)/gains on disposal of other non-current assets (8) 24 29 Impairment of property, plant and equipment – (78) – Legal settlements 374 – – Other income 277 286 146 Other expense (93) (168) (141) Other operating income and expense 2,527 1,830 1,655 Royalty amortisation relates to intangible assets recorded in respect of income streams acquired with MedImmune, and upon the restructuring of a historical joint venture with MSD. Gains on disposal of intangible assets in 2018 includes $695m on the disposal of Europe rights to Nexium, $527m on the disposal of rights to Seroquel in the UK, China and other international markets, $210m from the sale of rights to Atacand in Europe to Cheplapharm, milestone receipts of $172m from the disposal of the anaesthetics portfolio outside the US to Aspen and $139m from the sale of global rights to Alvesco, Omnaris and Zetonna to Covis. Gains on disposal of intangible assets in 2017 includes $555m on the disposal of the remaining rights to the global anaesthetics portfolio, $301m on disposal of Europe rights to Seloken and $193m on disposal of the global rights to Zomig . Gains on disposal of intangible assets in 2016 includes $368m on the disposal of the small molecule antibiotics assets in most markets outside the US, $321m on the disposal of Rest of World rights to Rhinocort Aqua , $231m on the disposal of global rights to MEDI2070 and $183m on the disposal of Rest of World rights to Imdur . Restructuring costs The tables below show the costs that have been charged in respect of restructuring programmes by cost category and type. Severance provisions are detailed in Note 20. $m $m $m Cost of sales 432 181 130 Research and development expense 94 201 178 Selling, general and administrative costs 181 347 823 Other operating income and expense (10) 78 (24) Total charge 697 807 1,107 $m $m $m Severance costs 41 176 505 Accelerated depreciation and impairment 259 141 46 Other 397 490 556 Total charge 697 807 1,107 Other costs are those incurred in designing and implementing the Group’s various restructuring initiatives, including costs of decommissioning sites impacted by changes to our global footprint, temporary lease costs during relocation, internal project costs, and external consultancy fees. Financial instruments Included within Operating profit are the following net gains and losses on financial instruments: $m $m $m Losses on forward foreign exchange contracts (100) (6) (216) Gains/(losses) on receivables and payables 43 (30) 132 Gains on disposal of short-term investments – 161 – Gains on other available for sale investments – 34 – Total (57) 159 (84)

Finance income and expense

Finance income and expense	12 Months Ended
	Dec. 31, 2018
Finance income and expense
Finance income and expense	3 Finance income and expense $m $m $m Finance income Returns on fixed deposits and equity securities 10 8 8 Returns on short-term deposits 86 62 35 Fair value gains on debt and interest rate swaps – 4 – Net exchange gains – – 8 Discount unwind on other long-term assets 6 10 16 Interest on tax receivables 36 29 – Total 138 113 67 Finance expense Interest on debt and commercial paper (673) (612) (565) Interest on overdrafts, finance leases and other financing costs (68) (52) (52) Net interest on post-employment defined benefit plan net liabilities (Note 21) (52) (49) (63) Net exchange losses (51) (148) – Discount unwind on contingent consideration arising from business combinations (Note 19) (416) (402) (497) Discount unwind on other long-term liabilities (154) (245) (190) Fair value losses on debt and interest rate swaps (2) – (17) Interest on tax payables (3) – – Total (1,419) (1,508) (1,384) Net finance expense (1,281) (1,395) (1,317) Financial instruments Included within finance income and expense are the following net gains and losses on financial instruments: $m $m $m Interest and fair value adjustments in respect of debt designated at fair value through profit or loss, net of derivatives (11) 8 (14) Interest and changes in carrying values of debt designated as hedged items in fair value hedges, net of derivatives (28) (35) (21) Interest and fair value changes on fixed and short-term deposits, equity securities, other derivatives and tax balances 96 52 74 Interest on debt, overdrafts, finance leases and commercial paper held at amortised cost (619) (559) (553) Fair value losses of $13m (2017: $9m; 2016: $29m) on interest rate fair value hedging instruments and $10m fair value gains (2017: $9m; 2016: $30m) on the related hedged items have been included within interest and changes in carrying values of debt designated as hedged items, net of derivatives. All fair value hedge relationships were effective during the year. Fair value losses of $13m (2017: $10m; 2016: $12m) on derivatives related to debt instruments designated at fair value through profit or loss and $13m fair value gains (2017: $3m; 2016: $9m) on debt instruments designated at fair value through profit or loss have been included within interest and fair value adjustments in respect of debt designated at fair value through profit or loss, net of derivatives. Ineffectiveness on the net investment hedge taken to profit was $nil (2017: $nil; 2016: $nil).

Taxation

Taxation	12 Months Ended
	Dec. 31, 2018
Taxation
Taxation	4 Taxation Taxation recognised in the Consolidated Statement of Comprehensive Income is as follows: $m $m $m Current tax expense Current year 711 665 384 Adjustment to prior years 38 (287) (14) Total 749 378 370 Deferred tax expense Origination and reversal of temporary differences (644) (1,113) (94) Adjustment to prior years (162) 94 (130) Total (806) (1,019) (224) Taxation recognised in the profit for the period (57) (641) 146 Taxation relating to components of Other comprehensive income is as follows: $m $m $m Current and deferred tax Items that will not be reclassified to profit or loss: Remeasurement of the defined benefit liability 37 24 110 Share-based payments – 9 51 Net losses on equity investments measured at fair value through other comprehensive income 30 – – Deferred tax impact of reduction in US, Sweden and other tax rates (11) (17) (25) Total 56 16 136 Items that may be reclassified subsequently to profit or loss: Foreign exchange arising on consolidation 69 (79) 63 Foreign exchange arising on designating borrowings in net investment hedges – 14 83 Net available for sale losses/(gains) recognised in other comprehensive income – 2 (61) Other – – 1 Deferred tax impact of reduction in US, Sweden and other tax rates (18) 30 – Total 51 (33) 86 Taxation relating to components of other comprehensive income 107 (17) 222 The Reported Tax Rate of (3)% in the year benefitted from a favourable net adjustment of $297m to Deferred taxes, reflecting the recently announced Dutch and Swedish income tax rate reductions, and a favourable adjustment of $188m on the release of provisions for tax contingencies on expiry of statute of limitations and conclusion of tax authority review. Absent these benefits, the Reported Tax Rate for the year would have been 21%. The cash tax paid for the year was $537m which was 27% of Profit before tax. Taxation has been provided at current rates on the profits earned for the periods covered by the Group Financial Statements. The 2018 prior period current tax adjustment relates mainly to net reductions in provisions for tax contingencies and tax accrual to tax return adjustments. The 2017 prior period current tax adjustment relates mainly to net reductions in provisions for tax contingencies totalling $105m and tax accrual to tax return adjustments. The 2016 prior period current tax adjustment relates mainly to net reductions in provisions for tax contingencies totalling $67m and tax accrual to tax return adjustments. The 2018 and 2017 prior period deferred tax adjustments relate mainly to tax accrual to return adjustments. The 2016 prior period deferred tax adjustments relate mainly to tax accrual to return adjustments and releases in provisions for tax contingencies. To the extent that dividends remitted from overseas subsidiaries, joint ventures and associates are expected to result in additional taxes, appropriate amounts have been provided for. No deferred tax has been provided for unremitted earnings of Group companies overseas as these are considered permanently employed in the business of these companies. Unremitted earnings may be liable to overseas taxes and/or UK taxation (after allowing for double tax relief) if distributed as dividends. The aggregate amount of temporary differences associated with investments in subsidiaries and branches for which Deferred tax liabilities have not been recognised totalled approximately $8,144m at 31 December 2018 (2017: $8,359m; 2016: $6,884m). Factors affecting future tax charges As a group with worldwide operations, AstraZeneca is subject to several factors that may affect future tax charges, principally the levels and mix of profitability in different jurisdictions, transfer pricing regulations, tax rates imposed and tax regime reforms. Details of the material tax exposures and items currently under audit, negotiation and review are set out in Note 29. Tax reconciliation to UK statutory rate The table below reconciles the UK statutory tax charge to the Group’s total tax (credit)/charge: $m $m $m Profit before tax 1,993 2,227 3,552 Notional taxation charge at UK corporation tax rate of 19% (2017: 19.25%; 2016: 20%) 379 429 710 Differences in effective overseas tax rates 18 (212) (233) Deferred tax credit relating to reduction in Dutch, Swedish and other tax rates 1 (334) (616) (16) Unrecognised deferred tax asset 2 7 (105) 242 Items not deductible for tax purposes 167 203 132 Items not chargeable for tax purposes (6) (14) (7) Other items 3 (164) (133) (538) Adjustments in respect of prior periods 4 (124) (193) (144) Total tax (credit)/charge for the year (57) (641) 146 1 The 2018 item relates to the recent reduction in the Dutch and Swedish Corporate Income Tax rates (credit of $297m) and other (credit of $37m). The Dutch Corporate Income Tax rate reduces from 25% to 22.55% effective from 1 January 2020 and to 20.5% effective from 1 January 2021. The Swedish Income Tax rate reduces from 22% to 21.4% effective from 1 January 2019 and to 20.6% effective from 1 January 2021. The 2017 item relates to the reduction in the US Federal Income Tax rate from 35% to 21% effective from 1 January 2018 (credit of $617m) and other (charge of $1m). The 2016 item relates to the reduction in the UK Statutory Corporation Tax rate from 18% to 17% effective from 1 April 2020. 2 The 2017 item relates to recognition of previously unrecognised net deferred tax assets. 3 Other items in 2018 relate to a credit of $188m relating to the release of tax contingencies following the expiry of the relevant statute of limitations and on the conclusion of tax authority review partially offset by a provision build for transfer pricing and other contingencies (charge $24m). Other items in 2017 relate to the release of tax contingencies following the expiry of the relevant statute of limitations (credit $178m) partially offset by a provision build for transfer pricing and other contingencies (charge $45m). Other items in 2016 relate to the release of tax contingencies following agreements between the Canadian tax authority and UK and Swedish tax authorities in respect of transfer pricing arrangements for the 13 year period from 2004 to 2016 (credit $453m) and release of certain tax contingencies following the expiry of the relevant statute of limitations (credit $280m) partially offset by a provision build for transfer pricing contingencies (charge $195m). 4 Further details explaining the adjustments in respect of prior periods is set out above on page 163. AstraZeneca is domiciled in the UK but operates in other countries where the tax rates and laws are different to those in the UK. The impact on differences in effective overseas tax rates on the Group’s overall tax charge is noted above. Profits arising from our manufacturing operation in Puerto Rico are granted special status and are taxed at a reduced rate compared with the normal rate of tax in that territory under a tax incentive grant continuing until 2031. Deferred tax The movements in the net deferred tax balance during the year are as follows: Intangibles, Pension and Inter-company Losses and Accrued property, plant post-retirement inventory Untaxed tax credits expenses & equipment 1 benefits transfers reserves 2 carried forward 3 and other Total $m $m $m $m $m $m $m Net deferred tax balance at 1 January 2016 (3,261) 427 738 (692) 804 613 (1,371) Taxation expense (132) 11 314 (53) 151 (67) 224 Other comprehensive income 83 101 – – – (24) 160 Additions through business combinations 4 (1,827) – – – 50 – (1,777) Exchange (1) (74) (38) 48 (1) (13) (79) Other movements 5 (11) – – – – – (11) Net deferred tax balance at 31 December 2016 (5,149) 465 1,014 (697) 1,004 509 (2,854) Income statement 1,393 (8) (231) 159 (128) (166) 1,019 Other comprehensive income (84) 9 – – – 35 (40) Exchange (12) 43 48 (62) 30 22 69 Net deferred tax balance at 31 December 2017 (3,852) 509 831 (600) 906 400 (1,806) Net adjustment to the opening balance of Retained earnings – – – – – 12 12 Income statement 401 (15) 179 (4) 129 116 806 Other comprehensive income 56 26 – – – 31 113 Equity 6 – – – – – 12 12 Exchange 27 (25) (30) 47 (27) (36) (44) Net deferred tax balance at 31 December 20187 (3,368) 495 980 (557) 1,008 535 (907) 1 Includes deferred tax on contingent liabilities in respect of intangibles. 2 Untaxed reserves relate to taxable profits where the tax liability is deferred to later periods. 3 Includes losses and tax credits carried forward which will expire within 1 to 20 years. 4 The deferred tax liability of $1,777m relates to the acquisition of Acerta Pharma (see Note 25). 5 Arising on the deconsolidation of Entasis as detailed in Note 10. 6 Deferred tax movement on share-based payments recorded through equity. 7 The UK had a net deferred tax asset of $691m as at 31 December 2018, mainly in respect of losses and pensions and post-retirement benefits, which has been recognised on the basis of sufficient forecast future taxable profits against which the deductible temporary differences can be utilised. The net deferred tax balance, before the offset of balances within countries, consists of: Intangibles, Pension and Inter-company Losses and Accrued property, plant post-retirement inventory Untaxed tax credits expenses & equipment benefits transfers reserves carried forward and other Total $m $m $m $m $m $m $m Deferred tax assets at 31 December 2016 875 465 1,014 – 1,004 629 3,987 Deferred tax liabilities at 31 December 2016 (6,024) – – (697) – (120) (6,841) Net deferred tax balance at 31 December 2016 (5,149) 465 1,014 (697) 1,004 509 (2,854) Deferred tax assets at 31 December 2017 1,226 559 1,011 – 957 885 4,638 Deferred tax liabilities at 31 December 2017 (5,078) (50) (180) (600) (51) (485) (6,444) Net deferred tax balance at 31 December 2017 (3,852) 509 831 (600) 906 400 (1,806) Deferred tax assets at 31 December 2018 1,071 521 1,287 – 1,103 913 4,895 Deferred tax liabilities at 31 December 2018 (4,439) (26) (307) (557) (95) (378) (5,802) Net deferred tax balance at 31 December 2018 (3,368) 495 980 (557) 1,008 535 (907) Analysed in the statement of financial position, after offset of balances within countries, as: $m $m $m Deferred tax assets 2,379 2,189 1,102 Deferred tax liabilities (3,286) (3,995) (3,956) Net deferred tax balance (907) (1,806) (2,854) Unrecognised deferred tax assets Deferred tax assets of $444m have not been recognised in respect of deductible temporary differences, which include items which will expire within 1 to 20 years (2017: $420m; 2016: $542m) because it is not probable that future taxable profit will be available against which the Group can utilise the benefits therefrom.

Earnings per $0.25 Ordinary Sha

Earnings per $0.25 Ordinary Share	12 Months Ended
	Dec. 31, 2018
Earnings per $0.25 Ordinary Share
Earnings per $0.25 Ordinary Share	5 Earnings per $0.25 Ordinary Share Profit for the year attributable to equity holders ($m) 2,155 3,001 3,499 Basic earnings per Ordinary Share $ $ $ Diluted earnings per Ordinary Share $ $ $ Weighted average number of Ordinary Shares in issue for basic earnings (millions) 1,267 1,266 1,265 Dilutive impact of share options outstanding (millions) – 1 1 Diluted weighted average number of Ordinary Shares in issue (millions) 1,267 1,267 1,266 The earnings figures used in the calculations above are post-tax.

Segment information

Segment information	12 Months Ended
	Dec. 31, 2018
Segment information
Segment information	6 Segment information AstraZeneca is engaged in a single business activity of biopharmaceuticals and the Group does not have multiple operating segments. AstraZeneca’s biopharmaceuticals business consists of the discovery and development of new products, which are then manufactured, marketed and sold. All of these functional activities take place (and are managed) globally on a highly integrated basis. These individual functional areas are not managed separately. The SET, established and chaired by the CEO, is the vehicle through which he exercises the authority delegated to him from the Board for the management, development and performance of our business. It is considered that the SET is AstraZeneca’s chief operating decision making body (as defined by IFRS 8). The operation of the SET is principally driven by the management of the commercial operations, R&D, and manufacturing and supply. All significant operating decisions are taken by the SET. While members of the SET have responsibility for implementation of decisions in their respective areas, operating decision making is at SET level as a whole. Where necessary, these are implemented through cross-functional sub-committees that consider the Group-wide impact of a new decision. For example, product launch decisions would be initially considered by the SET and, on approval, passed to an appropriate sub-team for implementation. The impacts of being able to develop, produce, deliver and commercialise a wide range of pharmaceutical products drive the SET decision making process. In assessing performance, the SET reviews financial information on an integrated basis for the Group as a whole, substantially in the form of, and on the same basis as, the Group’s IFRS Financial Statements. The high upfront cost of discovering and developing new products coupled with the relatively insignificant and stable unit cost of production means that there is not the clear link that exists in many manufacturing businesses between the revenue generated on an individual product sale and the associated cost and hence margin generated on a product. Consequently, the profitability of individual drugs or classes of drugs is not considered a key measure of performance for the business and is not monitored by the SET. Resources are allocated on a Group-wide basis according to need. In particular, capital expenditure, in-licensing, and R&D resources are allocated between activities on merit, based on overall therapeutic considerations and strategy under the aegis of the Group’s Early Stage Product Committees and a single Late Stage Product Committee. Geographic areas The following table shows information for Total Revenue by geographic area and material countries. The additional tables show the Operating profit and Profit before tax made by companies located in that area, together with segment assets, segment assets acquired, net operating assets, and Property, plant and equipment owned by the same companies; export sales and the related profit are included in the area/country where the legal entity resides and from which those sales were made. Total Revenue $m $m $m UK 2,390 3,240 1,849 Continental Europe France 617 701 899 Germany 592 541 615 Italy 426 514 529 Spain 396 447 440 Sweden 477 842 1,522 Others 1,312 1,512 1,575 3,820 4,557 5,580 The Americas Canada 483 482 495 US 7,240 6,666 7,828 Others 806 809 846 8,529 7,957 9,169 Asia, Africa & Australasia Australia 313 377 385 China 3,778 2,955 2,650 Japan 1,952 2,172 2,145 Others 1,308 1,207 1,224 7,351 6,711 6,404 Total Revenue 22,090 22,465 23,002 Total revenue outside of the UK totalled $19,700m for the year ended 31 December 2018 (2017: $19,225m; 2016: $21,153m). Operating (loss)/profit (Loss)/profit before tax $m $m $m $m $m $m UK (66) (694) (526) (514) (1,146) (950) Continental Europe 3,671 2,482 3,695 3,179 1,918 3,136 The Americas (757) 1,242 1,259 (1,171) 822 919 Asia, Africa & Australasia 539 647 474 499 633 447 Continuing operations 3,387 3,677 4,902 1,993 2,227 3,552 Non-current assets 1 Total assets $m $m $m $m $m $m UK 4,828 5,371 5,127 13,573 12,842 12,704 Continental Europe 14,529 16,305 15,731 17,119 18,962 18,174 The Americas 22,191 24,811 26,044 26,381 28,180 28,792 Asia, Africa & Australasia 976 1,024 917 3,578 3,370 2,856 Continuing operations 42,524 47,511 47,819 60,651 63,354 62,526 Assets acquired 2 Net operating assets 3 $m $m $m $m $m $m UK 556 400 362 3,471 3,351 3,306 Continental Europe 530 629 8,494 8,913 10,228 8,479 The Americas 356 585 688 18,598 20,339 20,969 Asia, Africa & Australasia 105 138 129 1,037 1,198 1,030 Continuing operations 1,547 1,752 9,673 32,019 35,116 33,784 1 Non-current assets exclude Deferred tax assets and Derivative financial instruments. 2 Included in Assets acquired are those assets that are expected to be used during more than one period (Property, plant and equipment, Goodwill and Intangible   assets). 3 Net operating assets exclude short-term investments, cash, short-term borrowings, loans, Derivative financial instruments, retirement benefit obligations and non-operating receivables and payables. Property, plant and equipment $m $m $m UK 1,605 1,455 1,026 Sweden 1,456 1,508 1,142 US 2,844 3,055 3,233 Rest of the world 1,516 1,597 1,447 Continuing operations 7,421 7,615 6,848 Geographic markets The table below shows Product Sales in each geographic market in which customers are located. $m $m $m UK 469 489 487 Continental Europe 4,388 4,712 4,987 The Americas 8,177 7,467 8,717 Asia, Africa & Australasia 8,015 7,484 7,128 Continuing operations 21,049 20,152 21,319 Product Sales are recognised when control of the goods has been transferred to a third party. In general this is upon delivery of the products to wholesalers. One wholesaler (2017: zero; 2016: one) individually represented greater than 10% of Product Sales. The value of these transactions recorded as Product Sales were $2,704m (2017: N/A; 2016: $2,851m).

Property, plant and equipment

Property, plant and equipment	12 Months Ended
	Dec. 31, 2018
Property, plant and equipment
Property, plant and equipment	7 Property, plant and equipment Assets in Total property, Land and Plant and course of plant and buildings equipment construction equipment $m $m $m $m Cost At 1 January 2016 4,812 7,468 1,568 13,848 Capital expenditure 29 206 1,214 1,449 Transfer of assets into use 222 109 (331) – Disposals and other movements (236) (700) (16) (952) Exchange adjustments (211) (540) (143) (894) At 31 December 2016 4,616 6,543 2,292 13,451 Capital expenditure 39 198 1,074 1,311 Transfer of assets into use 525 567 (1,092) – Disposals and other movements (367) (577) – (944) Exchange adjustments 210 452 159 821 At 31 December 2017 5,023 7,183 2,433 14,639 Capital expenditure 25 99 910 1,034 Transfer of assets into use 429 594 (1,023) – Disposals and other movements 50 (427) (14) (391) Exchange adjustments (161) (353) (129) (643) At 31 December 2018 5,366 7,096 2,177 14,639 Depreciation At 1 January 2016 2,253 5,182 – 7,435 Charge for year 185 424 – 609 Impairment 2 – – 2 Disposals and other movements (222) (656) – (878) Exchange adjustments (126) (439) – (565) At 31 December 2016 2,092 4,511 – 6,603 Charge for year 182 442 – 624 Impairment 78 – – 78 Disposals and other movements (249) (501) – (750) Exchange adjustments 128 341 – 469 At 31 December 2017 2,231 4,793 – 7,024 Charge for year 202 412 – 614 Impairment 150 98 43 291 Disposals and other movements 10 (336) (43) (369) Exchange adjustments (89) (253) – (342) At 31 December 2018 2,504 4,714 – 7,218 Net book value At 31 December 2016 2,524 2,032 2,292 6,848 At 31 December 2017 2,792 2,390 2,433 7,615 At 31 December 2018 2,862 2,382 2,177 7,421 Impairment charges in 2018 were recognised for Land and buildings and Plant and equipment as a result of the announcement of the closure of Boulder and Longmont, Colorado manufacturing centres. These charges have been recognised in Cost of sales. Included within other movements in 2018 is a transfer (cost of $120m and accumulated depreciation of $75m) from Plant and equipment to Land and buildings. $m $m $m The net book value of land and buildings comprised: Freeholds 2,567 2,514 2,326 Leaseholds 295 278 198 Included within Plant and equipment are Information Technology assets held under finance leases with a net book value of $nil (2017: $nil; 2016: $43m).

Goodwill

Goodwill	12 Months Ended
	Dec. 31, 2018
Goodwill.
Goodwill	8 Goodwill $m $m $m Cost At 1 January 12,143 11,969 12,113 Additions through business combinations (Note 26) – – 19 Exchange and other adjustments (121) 174 (163) At 31 December 12,022 12,143 11,969 Amortisation and impairment losses At 1 January 318 311 313 Exchange and other adjustments (3) 7 (2) At 31 December 315 318 311 Net book value at 31 December 11,707 11,825 11,658 Goodwill is tested for impairment at the operating segment level, this being the level at which goodwill is monitored for internal management purposes. As detailed in Note 6, the Group does not have multiple operating segments and is engaged in a single business activity of biopharmaceuticals. Recoverable amount is determined on a fair value less costs to sell basis using the market value of the Company’s outstanding Ordinary Shares. Our market capitalisation is compared to the book value of the Group’s net assets and this indicates a significant surplus at 31 December 2018 (and 31 December 2017 and 31 December 2016). As a further check, we also perform a discounted cash flow calculation whereby we risk adjust projections of the Group’s post-tax cash flows over 10 years. This length of time is considered by the Board as a reasonable period given the long development and life-cycle of a medicine. The projections include assumptions about product launches, competition from rival products and pricing policy as well as the possibility of generics entering the market. In setting these assumptions we consider our past experience, external sources of information (including information on expected increases and ageing of populations in our established markets and the expanding patient populations in newer markets), our knowledge of competitor activity and our assessment of future changes in the pharmaceutical industry. The 10-year period is covered by internal budgets and forecasts. Given that internal budgets and forecasts are prepared for all projections, no general growth rates are used to extrapolate internal budget and forecast amounts. No terminal value is included as the recoverable amount determined by the cash flows exceed the carrying value of net assets without inclusion of a terminal value. AstraZeneca’s post-tax weighted average cost of capital (7.0% for 2018, 2017 and 2016) is used in the calculation to discount the cash flows to reflect the impact of risks relevant to the Group and the time value of money. No goodwill impairment was identified.

Intangible assets

Intangible assets	12 Months Ended
	Dec. 31, 2018
Intangible assets
Intangible assets	9 Intangible assets Product, Software marketing and Other development distribution rights intangibles costs Total $m $m $m $m Cost At 1 January 2016 35,318 2,795 2,019 40,132 Additions through business combinations (Note 26) 7,307 – – 7,307 Additions – separately acquired 789 32 77 898 Disposals (339) (15) (141) (495) Exchange and other adjustments (1,472) (232) (127) (1,831) At 31 December 2016 41,603 2,580 1,828 46,011 Additions – separately acquired 397 7 37 441 Disposals (249) (67) (62) (378) Exchange and other adjustments 1,162 116 108 1,386 At 31 December 2017 42,913 2,636 1,911 47,460 Additions – separately acquired 476 – 37 513 Transferred to assets held for sale (Note 17) (2,486) – – (2,486) Disposals (630) – (16) (646) Exchange and other adjustments (1,137) (110) (93) (1,340) At 31 December 2018 39,136 2,526 1,839 43,501 Amortisation and impairment losses At 1 January 2016 14,104 1,773 1,609 17,486 Amortisation for year 1,454 162 85 1,701 Impairment 43 1 1 45 Disposals (25) (15) (124) (164) Exchange and other adjustments (481) (85) (77) (643) At 31 December 2016 15,095 1,836 1,494 18,425 Amortisation for year 1,627 118 84 1,829 Impairment 488 – 3 491 Disposals (19) – (52) (71) Exchange and other adjustments 467 50 81 598 At 31 December 2017 17,658 2,004 1,610 21,272 Amortisation for year 2,016 69 80 2,165 Impairment 683 – – 683 Transferred to assets held for sale (Note 17) (1,504) – – (1,504) Disposals (294) – (13) (307) Exchange and other adjustments (652) (38) (77) (767) At 31 December 2018 17,907 2,035 1,600 21,542 Net book value At 31 December 2016 26,508 744 334 27,586 At 31 December 2017 25,255 632 301 26,188 At 31 December 2018 21,229 491 239 21,959 Other intangibles consist mainly of research and device technologies. Amortisation charges are recognised in profit as follows: Product, Software marketing and Other development distribution rights intangibles costs Total $m $m $m $m Year ended 31 December 2016 Cost of sales 124 – – 124 Research and development expense – 48 – 48 Selling, general and administrative costs 1,327 31 85 1,443 Other operating income and expense 3 83 – 86 Total 1,454 162 85 1,701 Year ended 31 December 2017 Cost of sales 149 – – 149 Research and development expense – 43 – 43 Selling, general and administrative costs 1,478 30 84 1,592 Other operating income and expense – 45 – 45 Total 1,627 118 84 1,829 Year ended 31 December 2018 Cost of sales 187 – – 187 Research and development expense – 33 – 33 Selling, general and administrative costs 1,829 32 80 1,941 Other operating income and expense – 4 – 4 Total 2,016 69 80 2,165 Impairment charges are recognised in profit as follows: Product, Software marketing and Other development distribution rights intangibles costs Total $m $m $m $m Year ended 31 December 2016 Research and development expense 32 1 – 33 Selling, general and administrative costs 11 – 1 12 Total 43 1 1 45 Year ended 31 December 2017 Research and development expense 101 – – 101 Selling, general and administrative costs 387 – 3 390 Total 488 – 3 491 Year ended 31 December 2018 Research and development expense 539 – – 539 Selling, general and administrative costs 144 – – 144 Total 683 – – 683 Impairment charges and reversals Intangible assets under development and not available for use are tested annually for impairment and other intangible assets are tested when there is an indication of impairment. Recoverable amount is determined as the higher of value in use or fair value less costs to sell using discounted cash flow calculations where the products’ expected post-tax cash flows are risk-adjusted over their estimated remaining useful economic life. The projections are covered by internal budgets and forecasts. The risk-adjusted cash flows are discounted using AstraZeneca’s post-tax weighted average cost of capital (7% for 2018, 2017 and 2016). The estimates used in calculating the recoverable amount are highly sensitive and depend on assumptions specific to the nature of the Group’s activities including: > outcome of R&D activities; > probability of technical and regulatory success; > market volume, share and pricing; > amount and timing of projected future cash flows; and > sales erosion curves following patent expiry. In 2018, the Group recorded impairment charges of $144m in respect of launched products Eklira ($114m, revised carrying value of $396m) and Movantik ($30m, revised carrying value of $59m). Impairment charges recorded against products in development related to MEDI0680 ($470m) and other intangible assets ($95m). In 2017, the Group recorded an impairment charge of $491m in respect of launched products Byetta ($92m, revised carrying value of $407m), FluMist ($121m, revised carrying value of $267m) and Movantik ($174m, revised carrying value of $106m). Impairment charges recorded against products in development related to tralokinumab ($53m) and other intangible assets ($51m). Impairment charges recorded in 2016 relates to the termination, or reassessment of the likelihood of success, of several individual projects, none of which had significant capitalised values. The impairments recorded on launched products were a consequence of revised market volume, share and price assumptions and, for FluMist in 2017, the US market expected timing of renewed recommendation from the Advisory Committee on Immunization Practices (ACIP) under the Centers for Disease Control and Prevention. These impairments were calculated using value in use models. Impairments recorded on products in development were a consequence of failed or poor performing trials, with the individual assets being fully impaired. When launched products, such as the ones detailed above, are partially impaired, the carrying values of these assets in future periods are particularly sensitive to changes in forecast assumptions, including those assumptions set out above, as the asset is impaired down to its recoverable amount. Assets that are particularly sensitive to variations in valuation assumptions include Byetta (carrying value as at 31 December 2018 of $316m) and Ardea (carrying value of $1,172m). The Byetta valuation, impaired in 2017, is most sensitive to the expected timing of a generic entering the market. Increasing the probability of a generic entry into the market by 20% from our base valuation model would result in an impairment charge of $25m. No impairment charge has been recorded on Ardea, a product in development, with a net book value of $1,172m. The Ardea valuation is particularly sensitive to variations in the probability of technical and regulatory success (‘PTRS’) assumptions. Sensitivities performed at the year end on the Ardea asset included reducing the PTRS by 5 percentage points. Applying this sensitivity would result in an impairment charge against the Ardea intangible asset of approximately $70m. The Group has performed an assessment on assets which have had impairments recorded in previous periods to determine if any reversals of impairments were required and none were identified with the exception of a reversal of $28m in respect of an asset previously impaired prior to 2016. This assessment included FluMist where an impairment of $121m was taken in 2017 and where currently the uncertainty remains around long term sales potential in the US following the reinstatement of the US recommendation by ACIP in 2018. Significant assets Carrying value Remaining amortisation $m period Intangible assets arising from the acquisition of Acerta Pharma 6,745 14 years Intangible assets arising from the acquisition of ZS Pharma 3,067 13 years Farxiga / Forxiga intangible assets acquired from BMS 1,177 9 years Intangible assets arising from the acquisition of Ardea 1 1,172 Not amortised Intangible assets arising from the restructuring of a historical joint venture with MSD 1,092 1 to 12 years RSV franchise assets arising from the acquisition of MedImmune 1,068 7 years Bydureon intangible assets acquired from BMS 988 12 years Intangible assets arising from the acquisition of Pearl Therapeutics 828 10 years Other diabetes intangible assets acquired from BMS 795 4 to 7 years Onglyza intangible assets acquired from BMS 752 5 years Respiratory intangible assets acquired from Almirall and Actavis 733 1 to 20 years Intangible assets arising from the acquisition of Omthera 1 533 Not amortised Roxadustat intangible assets acquired from FibroGen 1 327 Not amortised 1 Assets in development are not amortised but are tested annually for impairment. All the assets listed above are classified as Product, marketing and distribution rights.

Investments in associates and j

Investments in associates and joint ventures	12 Months Ended
	Dec. 31, 2018
Investments in associates and joint ventures
Investments in associates and joint ventures	10 Investments in associates and joint ventures $m $m $m At 1 January 103 99 85 Additions 187 76 65 Share of after tax losses (113) (55) (33) Unrecognised profit on transactions with joint ventures (64) (27) – Exchange adjustments (24) 10 (18) At 31 December 89 103 99 On 23 February 2018, AstraZeneca entered into an agreement with a consortium of investors to form a new, US domiciled standalone company called Viela Bio. This agreement was to divest a number of assets in MedImmune’s non-core inflammation and autoimmunity portfolio to Viela, including MEDI-551, which is an advanced Phase IIb/III asset, and a number of other clinical & pre-clinical assets. AstraZeneca contributed $142m in initial funds and has a 45% interest in the joint venture. Consideration was $142m and a restricted disposal gain of $63m was recognised in Other operating income. On 27 November 2017, AstraZeneca entered into a joint venture agreement with Chinese Future Industry Investment Fund (FIIF), to discover, develop and commercialise potential new medicines to help meet unmet needs globally, and to bring innovative new medicines to patients in China faster. The agreement resulted in the formation of a joint venture entity based in China, Dizal (Jiangsu) Pharmaceutical Co., Limited. AstraZeneca contributed $55m in initial funds and has a 48% interest in the joint venture. The joint venture entity purchased exclusive rights from AstraZeneca in 2017 to develop and commercialise three potential medicines currently in pre-clinical development in the areas of oncology, cardiovascular and metabolic diseases, and respiratory, resulting in a disposal gain of $28m for AstraZeneca recognised in Other operating income. In 2015, AstraZeneca established the subsidiaries Entasis Therapeutics Ltd and Entasis Therapeutics Inc. (collectively known as ‘Entasis’) for the development of early-stage infection assets. In March 2016, Entasis closed a Series B financing, raising $25m from four third party investors. Under the funding agreement, a new board of directors was appointed, and a voting rights agreement was put in place committing to reduce AstraZeneca’s voting interest to approximately 49%. The results of Entasis were consequently deconsolidated in 2016 from the Group, with an investment in associate of $24m recognised. There was no gain or loss recognised on deconsolidation. During 2017, the voting interests were further reduced and at 31 December 2017 were approximately 18%. Entasis completed an IPO on 26 September 2018. A gain was made of $25m recognised in profit. After the IPO AstraZeneca’s holding was reduced to 16.5% with only one member on an increased board size of 14. As a result, the investment is no longer accounted for as an associate and is now included in equity securities held at FVOCI. On 1 December 2015, AstraZeneca entered into a joint venture agreement with Fujifilm Kyowa Kirin Biologics Co., Ltd. to develop a biosimilar using the combined capabilities of the two parties. The agreement resulted in the formation of a joint venture entity based in the UK, Centus Biotherapeutics Limited. AstraZeneca contributed $45m in cash to the joint venture entity and has a 50% interest in the joint venture. An additional contribution of $10m was made in 2016 and additional contributions totalling $20m were made in 2017 with further contributions of $27m made in 2018. On 30 April 2014, AstraZeneca entered into a joint venture agreement with Samsung Biologics Co., Ltd. to develop a biosimilar using the combined capabilities of the two parties. The agreement resulted in the formation of a joint venture entity based in the UK, Archigen Biotech Limited, with a branch in South Korea. AstraZeneca contributed $70m in cash to the joint venture entity and has a 50% interest in the joint venture. An additional contribution of $30m was made in 2016 and a further $15m in 2018. At the end of the year Archigen had net liabilities of $18m, of which AstraZeneca’s share is $9m, and the investment is held at nil value. The Group has made a provision of $5m, within Trade and other payables, for anticipated future costs. All investments are accounted for using the equity method. Aggregated summarised financial information for the associate and joint venture entities is set out below: $m $m $m Non-current assets 260 207 144 Current assets 233 158 128 Total liabilities (71) (41) (20) Net assets 422 324 252 Amount attributable to AstraZeneca 104 117 125 Exchange adjustments (15) (14) (26) Carrying value of investments in associate and joint ventures 89 103 99

Other investments

Other investments	12 Months Ended
	Dec. 31, 2018
Other investments
Other investments	11 Other investments $m $m $m Non-current investments Equity securities at fair value through other comprehensive income 833 – – Equity securities available for sale – 933 727 Total 833 933 727 Current investments Fixed income securities at fair value through profit and loss 809 – – Fixed income securities available for sale – 1,150 847 Fixed deposits 40 80 37 Total 849 1,230 884 Investments classified as available for sale in 2016 and 2017 under IAS 39 have been reclassified in 2018 on adoption of IFRS 9 on 1 January 2018, as either at fair value through Other comprehensive income or at fair value through profit and loss. The financial impact from the reclassification of equity and fixed income investments from available for sale to at fair value through Other comprehensive income and at fair value through profit and loss has been recorded in the Group accounting policies under ‘Impact from adoption of IFRS 9’. Other investments classified as at fair value through Other comprehensive income and at fair value through profit and loss (IFRS 9) Other investments held at fair value through Other comprehensive income include equity securities which are not held for trading and which the Group has irrevocably elected at initial recognition to recognise in this category. Other investments held at fair value through profit and loss comprise fixed income securities for which the Group has not elected to recognise fair value gains through Other comprehensive income. The fair value of listed investments is based on year end quoted market prices. Fixed deposits are held at amortised cost with carrying value being a reasonable approximation of fair value given their short-term nature. Other investments previously classified as available for sale in 2017 (IAS 39) Impairment charges of $14m in respect of available for sale equity securities were included in Other operating income and expense in 2017 (2016: $21m). Equity and fixed income securities available for sale were held at fair value until re-classification. Fair value hierarchy The table below analyses equity securities and bonds, contained within Other investments and carried at fair value, by valuation method. The different levels have been defined as follows: > Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. > Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices). > Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). FVPL FVOCI AFS AFS $m $m $m $m Level 1 809 667 1,408 933 Level 2 – – – – Level 3 – 166 675 641 Total 809 833 2,083 1,574 Equity securities that are analysed at Level 3 include investments in private biotech companies. In the absence of specific market data, these unlisted investments are held at fair value calculated by taking costs and adjusting as necessary for impairments and revaluations on new funding rounds, which approximates to fair value. Movements in Level 3 investments are detailed below: FVOCI AFS AFS $m $m $m At 1 January 675 641 352 Additions 79 53 210 Revaluations (147) (1) 110 Transfers out (434) (12) (12) Disposals (6) (15) (2) Impairments and exchange adjustments (1) 9 (17) At 31 December 166 675 641 Assets are transferred in or out of Level 3 on the date of the event or change in circumstances that caused the transfer.

Derivative financial instrument

Derivative financial instruments	12 Months Ended
	Dec. 31, 2018
Derivative financial instruments
Derivative financial instruments	12 Derivative financial instruments Non-current Current Current Non-current assets assets liabilities liabilities Total $m $m $m $m $m Interest rate swaps designated in a fair value hedge – 19 – (2) 17 Interest rate swaps related to instruments designated at fair value through profit and loss 65 – – – 65 Cross currency swaps designated in a net investment hedge 278 – – – 278 Cross currency swaps designated in a cashflow hedge – – – (115) (115) Other derivatives – 8 (18) – (10) 31 December 2016 343 27 (18) (117) 235 Non-current Current Current Non-current assets assets liabilities liabilities Total $m $m $m $m $m Interest rate swaps designated in a fair value hedge – – (3) – (3) Interest rate swaps related to instruments designated at fair value through profit and loss 53 – – – 53 Cross currency swaps designated in a net investment hedge 223 12 – (4) 231 Cross currency swaps designated in a cashflow hedge 197 – – – 197 Cross currency swaps designated in a fair value hedge 31 – – – 31 Other derivatives – 16 (21) – (5) 31 December 2017 504 28 (24) (4) 504 Non-current Current Current Non-current assets assets liabilities liabilities Total $m $m $m $m $m Interest rate swaps related to instruments designated at fair value through profit and loss 40 – – – 40 Cross currency swaps designated in a net investment hedge 1 – 213 – (4) 209 Cross currency swaps designated in a cashflow hedge 2 101 – – – 101 Cross currency swaps designated in a fair value hedge 3 16 – – – 16 Other derivatives – 45 (27) – 18 31 December 2018 157 258 (27) (4) 384 1 Cross currency swaps designated in a net investment hedge comprise a $750m Japanese yen to US dollar cross currency interest rate swap maturing in 2019 and a $69m Chinese renminbi to US dollar cross currency interest rate swap maturing in 2026. The Japanese to US swap effectively converts $750m of the Group’s $1,000m 1.95% 2019 bond into a Japanese yen borrowing, partially hedging the Group’s Japanese yen denominated assets and revenues. At 31 December 2018 the fair value of this swap was $213m (2017: $223m; 2016: $242m), the swapped US dollar:Japanese yen rate was 78.01 and the Japanese yen interest rate on the swap was 0.3452%. The Chinese renminbi to US dollar swap hedges inter-company funding provided to Chinese Group entities. At 31 December 2018 the fair value of this swap was $(4)m (2017: $(4)m; 2016: $7m), the swapped US dollar:Chinese renminbi rate was 6.68 and the Chinese renminbi interest rate on the swap was 4.796%. A further $151m Chinese renminbi to US dollar swap matured in December 2018 when the inter-company loan it was hedging was repaid (fair value 2017: $11m; 2016: $29m). Hedge ineffectiveness recognised on swaps designated in a net investment hedge during the period was $nil. 2 Instruments designated in a cash flow hedge are cross currency swaps with total nominal amounts of euro 2.2bn that effectively convert our fixed rate euro 500m 0.25%, euro 900m 0.75% and euro 800m 1.25% callable bonds repayable in 2021, 2024 and 2028 respectively into fixed rate USD borrowings and hedge the exposure to foreign exchange spot rate and interest rate risk. The fair value of these swaps at 31 December 2018 was $101m (2017: $197m; 2016: $(115)m). The swap maturity dates match the underlying bond maturity dates and the average swapped euro:US dollar exchange rate and swapped interest rates are 1.14 and 2.7% respectively. 3 Cross currency swaps designated in a fair value hedge refers to a cross currency interest rate swap that hedges a designated euro 300m portion of our euro 750m 0.875% 2021 non-callable bond against exposure to movements in the euro:US dollar exchange rate. The maturity date of the cross currency interest rate swap is in 2021 and the swapped euro:US dollar exchange rate and swapped interest rate are 1.09 and three month US dollar libor + 1.27% respectively. All derivatives are held at fair value and fall within Level 2 of the fair value hierarchy as defined in Note 11. None of the derivatives have been reclassified in the year. The fair value of interest rate swaps and cross currency swaps is estimated using appropriate zero coupon curve valuation techniques to discount future contractual cash flows based on rates at current year end. The fair value of forward foreign exchange contracts and currency options are estimated by cash flow accounting models using appropriate yield curves based on market forward foreign exchange rates at the year end. The majority of forward foreign exchange contracts for existing transactions had maturities of less than one month from year end. The interest rates used to discount future cash flows for fair value adjustments, where applicable, are based on market swap curves at the reporting date, and were as follows: Derivatives (0.4) % to 3.2 % 1.7 % to 2.2 % 1.5 % to 2.2 %

Non-current other receivables

Non-current other receivables	12 Months Ended
	Dec. 31, 2018
Non-current other receivables
Non-current other receivables	13 Non-current other receivables Non-current other receivables of $515m (2017: $847m; 2016: $901m) include a prepayment of $114m (2017: $180m; 2016: $380m) which represents the long-term element of minimum contractual royalties payable to Shionogi under the global licence agreement for Crestor , which was renegotiated in December 2013. The resulting modified royalty structure, which includes fixed minimum and maximum payments in years until 2020, has resulted in the Group recognising liabilities, and corresponding prepayments, for the discounted value of total minimum payments. The current portion of the prepayment is $114m (2017: $181m; 2016: $116m) and is reported in amounts due within one year (see Note 15). Non-current other receivables also include $146m (2017: $178m; 2016: $178m) prepayments in relation to our research collaboration with Moderna and $nil (2017: $175m; 2016: $175m) receivable related to the disposal of the small molecule antibiotics assets in 2016, as it has been reclassified to amounts due within one year.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2018
Inventories
Inventories	14 Inventories $m $m $m Raw materials and consumables 794 1,024 811 Inventories in process 1,450 1,208 1,060 Finished goods and goods for resale 646 803 463 Inventories 2,890 3,035 2,334 The Group recognised $2,659m (2017: $2,493m; 2016: $2,644m) of inventories as an expense within cost of sales during the year. Inventory write-offs in the year amounted to $208m (2017: $109m; 2016: $198m).

Current trade and other receiva

Current trade and other receivables	12 Months Ended
	Dec. 31, 2018
Current trade and other receivables
Current trade and other receivables	15 Current trade and other receivables $m $m $m Amounts due within one year Trade receivables 3,033 2,818 2,625 Less: Amounts provided for doubtful debts (Note 27) (38) (16) (42) 2,995 2,802 2,583 Other receivables 1,143 793 852 Prepayments and accrued income 1,363 1,148 879 5,501 4,743 4,314 Amounts due after more than one year Other receivables – 156 140 Prepayments and accrued income 73 110 119 73 266 259 Trade and other receivables 5,574 5,009 4,573 Trade receivables includes $724m (2017: $327m; 2016: $655m) due from customers which are subject to debt factoring agreements, where invoices have currently not been factored and then derecognised. All financial assets included within current Trade and other receivables are held at amortised cost with carrying value being a reasonable approximation of fair value.

Cash and cash equivalents

Cash and cash equivalents	12 Months Ended
	Dec. 31, 2018
Cash and cash equivalents.
Cash and cash equivalents	16 Cash and cash equivalents $m $m $m Cash at bank and in hand 893 784 782 Short-term deposits 3,938 2,540 4,236 Cash and cash equivalents 4,831 3,324 5,018 Unsecured bank overdrafts (160) (152) (94) Cash and cash equivalents in the cash flow statement 4,671 3,172 4,924 The Group holds $86m (2017: $93m; 2016: $91m) of Cash and cash equivalents which is required to meet insurance solvency, capital and security requirements. Under IAS 39 all Cash and cash equivalents were held at amortised cost with fair value approximating to carrying value. Following the adoption of IFRS 9 Financial Instruments on 1 January 2018 US dollar liquidity fund balances included in Cash and cash equivalents were reclassified from amortised cost to fair value through profit or loss. During 2018 AstraZeneca was invested in constant net asset value funds with same day access for subscription and redemption. These investments fail the ‘solely payments of principal and interest’ test criteria under IFRS 9. They are therefore measured at fair value through profit or loss, although the fair value will be materially the same as amortised cost. The balance reclassified on 1 January 2018 was $1,150m as shown under ‘Impact from adoption of IFRS 9’ in the Group accounting policies section. Non-cash and other movements, within operating activities in the Consolidated Statement of Cash Flows, includes: $m $m $m Gains on disposal of short-term investments – (161) – Net gains/(losses) on disposal of non-current assets 8 (24) (29) Changes in fair value of put option (Acerta Pharma) (113) (209) (41) Share-based payments charge for period 219 220 241 Settlement of share plan awards (212) (254) (281) Pension contributions (174) (157) (192) Pension charges recorded in operating profit 128 74 74 Foreign exchange and other (146) (13) (264) Total operating activities non-cash and other movements (290) (524) (492)

Assets held for sale

Assets held for sale	12 Months Ended
	Dec. 31, 2018
Assets held for sale
Assets held for sale	17 Assets held for sale Assets held for sale of $982m (2017: $nil; 2016: $nil) comprise intangible assets relating to the US rights to RSV franchise assets (specifically Synagis ) arising from the acquisition of MedImmune and to US rights to certain respiratory assets acquired from Almirall and Actavis (including Tudorza ). In both cases a partial transfer has been made from the respective intangible assets based on the relative values of the portion being disposed of and the portion retained. AstraZeneca agreed to dispose of the US Rights to Synagis to SOBI on 13 November 2018 with completion of the transaction subject to certain contingencies. The transaction closed and control of the assets transferred on 23 January 2019. In December 2018, Circassia exercised an option right to acquire the remaining rights to Tudorza in the US, which was previously part of a strategic collaboration between the two companies. The transaction closed on 1 January 2019.

Interest-bearing loans and borr

Interest-bearing loans and borrowings	12 Months Ended
	Dec. 31, 2018
Interest-bearing loans and borrowings
Interest-bearing loans and borrowings	18 Interest-bearing loans and borrowings Repayment dates $m $m $m Current liabilities Bank overdrafts On demand 160 152 94 Bank collateral 1 384 513 – Finance leases – 5 87 5.9% Callable bond US dollars 2017 – – 1,769 Floating rate notes US dollars 2018 – 399 – 1.75% Callable bond US dollars 2018 – 998 – 1.95% Callable bond US dollars 2019 999 – – Other loans (Commercial paper) Within one year 211 180 357 Total 1,754 2,247 2,307 Non-current liabilities Finance leases – – 6 Floating rate notes US dollars 2018 – – 399 1.75% Callable bond US dollars 2018 – – 998 1.95% Callable bond US dollars 2019 – 999 998 2.375% Callable bond US dollars 2020 1,594 1,591 1,589 0.875% Non-callable bond euros 2021 854 890 782 0.25% Callable bond euros 2021 570 594 522 Floating rate notes US dollars 2022 250 249 – 2.375% Callable bond US dollars 2022 994 992 – 7% Guaranteed debentures US dollars 2023 325 347 350 Floating rate notes US dollars 2023 400 – – 3.5% Callable bond US dollars 2023 845 – – 0.75% Callable bond euros 2024 1,022 1,067 937 3.375% Callable bond US dollars 2025 1,980 1,978 1,976 3.125% Callable bond US dollars 2027 743 742 – 1.25% Callable bond euros 2028 903 941 827 4% Callable bond US dollars 2029 992 – – 5.75% Non-callable bond pounds sterling 2031 443 468 426 6.45% Callable bond US dollars 2037 2,721 2,720 2,719 4% Callable bond US dollars 2042 987 987 986 4.375% Callable bond US dollars 2045 979 979 979 4.375% Callable bond US dollars 2048 736 – – Other loans US dollars 21 16 7 Total 17,359 15,560 14,501 1. In 2017 the Group changed its accounting policy such that collateral receipts were included in interest bearing loans and borrowings. Previously these were included in short term deposits. All loans and borrowings above are unsecured, except for finance leases which were secured against the Information Technology assets to which they relate (see Note 7). Current Non-current loans and loans and borrowings borrowings Total $m $m $m At 31 December 2017 2,247 15,560 17,807 Changes from financing cash flows Issue of loans – 2,971 2,971 Repayment of loans (1,400) – (1,400) Movement in short-term borrowings (98) – (98) Total changes in liabilities arising on financing activities (1,498) 2,971 1,473 Movement in overdrafts 8 – 8 Transfers 999 (999) – Exchange and other movements (2) (173) (175) At 31 December 2018 1,754 17,359 19,113 Set out below is a comparison by category of carrying values and fair values of all the Group’s interest-bearing loans and borrowings: Instruments in a Instruments Instruments Total fair value hedge designated designated in Amortised carrying Fair relationship 1 at fair value 2 cash flow hedge 3 cost 4 value value $m $m $m $m $m $m 2016 Overdrafts – – – 94 94 94 Finance leases due within one year – – – 87 87 87 Finance leases due after more than one year – – – 6 6 6 Loans due within one year 770 – – 1,356 2,126 2,161 Loans due after more than one year 598 350 2,286 11,261 14,495 15,826 Total at 31 December 2016 1,368 350 2,286 12,804 16,808 18,174 2017 Overdrafts – – – 152 152 152 Finance leases due within one year – – – 5 5 5 Loans due within one year 596 – – 1,494 2,090 2,092 Loans due after more than one year 304 347 2,602 12,307 15,560 17,031 Total at 31 December 2017 900 347 2,602 13,958 17,807 19,280 2018 Overdrafts – – – 160 160 160 Finance leases due within one year – – – – – – Loans due within one year – – – 1,594 1,594 1,587 Loans due after more than one year 346 325 2,495 14,193 17,359 17,841 Total at 31 December 2018 346 325 2,495 15,947 19,113 19,588 1 Instruments designated as hedged items in a fair value hedge relationship relate to a designated euro 300m portion of our euro 750m 0.875% 2021 non-callable bond. The accumulated amount of fair value hedge adjustments to the bond is a loss of $19m and hedge ineffectiveness recognised during the period was nil. 2 Instruments designated at fair value through profit or loss include the US dollar 7% guaranteed debentures repayable in 2023. 3 Instruments designated in a cash flow hedge include the euro 500m 0.25%, euro 900m 0.75% and euro 800m 1.25% Callable bonds repayable in 2021, 2024 and 2028 respectively. Hedge ineffectiveness recognised during the period was nil. 4 Included within borrowings held at amortised cost are amounts designated as hedges of net investments in foreign operations of $954m at 31 December 2018 (2017: $1,054m; 2016: $1,208m). The fair value of these borrowings was $1,106m at 31 December 2018 (2017: $1,206m; 2016: $1,400m). These borrowings comprise our £350m 5.75% 2031 non-callable bond and a euro 450m portion of our euro 750m 0.875% 2021 non-callable bond and have been designated as hedges of net investments in the Group’s UK and Euro operations respectively. Also included within borrowings held at amortised cost is the Group’s $1bn 1.95% 2019 bond, $750m of which has been swapped to Japanese yen. The US dollar to Japanese yen cross currency interest rate swap has been designated as a hedge of net investments in the Group’s Japanese operations. Hedge ineffectiveness recognised on borrowings designated in a net investment hedge during the period was nil. The fair value of fixed-rate publicly traded debt is based on year end quoted market prices; the fair value of floating rate debt is nominal value, as mark to market differences would be minimal given the frequency of resets. The carrying value of loans designated at fair value through profit or loss is the fair value; this falls within the Level 1 valuation method as defined in Note 11. For loans designated in a fair value hedge relationship, carrying value is initially measured at fair value and remeasured for fair value changes in respect of the hedged risk at each reporting date. All other loans are held at amortised cost. Fair values, as disclosed in the table above, are all determined using the Level 1 valuation method as defined in Note 11, with the exception of overdrafts and finance leases, where fair value approximates to carrying values. A gain of $8m was made during the year on the fair value of bonds designated at fair value through profit or loss, due to increased credit risk. A gain of $34m has been made on these bonds since designation due to increased credit risk. Under IFRS 9, the Group records the component of fair value changes relating to the component of own credit risk through Other comprehensive income. Changes in credit risk had no material effect on any other financial assets and liabilities recognised at fair value in the Group Financial Statements. The change in fair value attributable to changes in credit risk is calculated as the change in fair value not attributable to market risk. The amount payable at maturity on bonds designated at fair value through profit or loss is $287m. The interest rates used to discount future cash flows for fair value adjustments, where applicable, are based on market swap curves at the reporting date, and were as follows: Loans and borrowings 2.3 % to 2.4 % 1.9 % to 2.2 % 1.5 % to 2.2 %

Trade and other payables

Trade and other payables	12 Months Ended
	Dec. 31, 2018
Trade and other payables
Trade and other payables	19 Trade and other payables $m $m $m Current liabilities Trade payables 1,720 2,285 1,680 Value added and payroll taxes and social security 204 243 240 Rebates, chargebacks, returns and other revenue accruals 4,043 3,264 3,601 Clinical trial accruals 993 922 696 Other accruals 3,951 3,324 2,714 Externalisation revenue contract liabilities 92 – – Contingent consideration 867 555 527 Other payables 971 1,048 1,028 Total 12,841 11,641 10,486 Non-current liabilities Accruals 7 143 292 Externalisation revenue contract liabilities 78 – – Contingent consideration 4,239 4,979 4,930 Acerta Pharma put option liability (Note 25) 1,838 1,823 1,901 Other payables 608 895 2,365 Total 6,770 7,840 9,488 The Group has revised the presentation of Trade and other payables in 2018 to separately present clinical trial accruals, returns and other revenue accruals that have historically been presented within Trade payables (see the Group Accounting policies section from page 153). The Group has also separately presented the Acerta put option that has historically been presented within Other payables. Included within Rebates, chargebacks, returns and other revenue accruals are contract liabilities of $126m (1 January 2018: $138m). The revenue recognised in the year for contract liabilities is $139m, comprising $104m relating to other revenue accruals and $35m Externalisation Revenue contract liabilities. Trade payables includes $166m (2017: $64m; 2016: $nil) due to suppliers that have signed up to a supply chain financing programme, under which the suppliers can elect on a invoice by invoice basis to receive a discounted early payment from the partner bank rather than being paid in line with the agreed payment terms. If the option is taken the Group’s liability is assigned by the supplier to be due to the partner bank rather than the supplier. The value of the liability payable by the Group remains unchanged. The Group assesses the arrangement against indicators to assess if debts which vendors have sold to the funder under the supplier financing scheme continue to meet the definition of trade payables or should be classified as borrowings. At 31 December 2018 the payables met the criteria of Trade payables. The Acerta Pharma put option liability is remeasured each period, based on the latest assessment of the expected redemption amount with remeasurements taken to Selling, general and administrative costs (see Note 2). Interest arising from amortising the liability is included within Finance expense (see Note 3). The expected redemption amount is dependent on the accumulated profits of Calquence to the point of redemption, which may vary materially dependent on factors such as revenues earned, research and development expenditure, regulatory approvals received, and certain other expenses of Acerta Pharma B.V. and its subsidiaries. The Group has adopted IFRS 15 Revenue from Contracts with Customers from 1 January 2018 under the modified retrospective method. Consequently, the Group has presented Externalisation revenue contract liabilities prospectively from that date. With the exception of Contingent consideration payables of $5,106m (2017: $5,534m; 2016: $5,457m) which are held at fair value within Level 3 of the fair value hierarchy as defined in Note 11, all other financial liabilities are held at amortised cost with carrying value being a reasonable approximation of fair value. Contingent consideration $m $m $m At 1 January 5,534 5,457 6,411 Settlements (349) (434) (293) Revaluations (495) 109 (1,158) Discount unwind (Note 3) 416 402 497 At 31 December 5,106 5,534 5,457 Contingent consideration arising from business combinations is fair valued using decision-tree analysis, with key inputs including the probability of success, consideration of potential delays and the expected levels of future revenues. Revaluations of Contingent consideration are recognised in Selling, general and administrative costs and include a decrease of $482m in 2018 (2017: an increase of $208m; 2016: a decrease of $999m) based on revised milestone probabilities, and revenue and royalty forecasts, relating to the acquisition of BMS’s share of the Global Diabetes Alliance. Discount unwind on the liability is included within Finance expense (see Note 3). Management has identified that reasonably possible changes in certain key assumptions, including the likelihood of achieving successful trial results, obtaining regulatory approval, the projected market share of the therapeutic area and expected pricing for launched products, may cause the calculated fair value of the above contingent consideration to vary materially in future years. The contingent consideration balance relating to BMS’s share of Global Diabetes Alliance of $3,983m (2017: $4,477m; 2016: $4,240m) would increase/decrease by $398m with an increase/decrease in sales of 10% as compared with the current estimates. The maximum development and sales milestones payable under outstanding contingent consideration arrangements arising on business combinations are as follows: Nature of Maximum future milestones Acquisitions Year contingent consideration $m Spirogen Milestones 216 Amplimmune Milestones 275 Omthera Milestones 120 Pearl Therapeutics Milestones 390 BMS’s share of Global Diabetes Alliance 1 Milestones and royalties 600 Almirall 1 Milestones and royalties 620 Definiens 1 Milestones 150 1 These contingent consideration liabilities have been designated as the hedge instrument in a net investment hedge of foreign currency risk arising on the Group’s underlying US dollar net investments held in non-US dollar denominated subsidiaries. Exchange differences on the retranslation of the contingent consideration liability are recognised in Other comprehensive income to the extent that the hedge is effective. Any ineffectiveness is taken to profit. The amount of royalties payable under the arrangements is inherently uncertain and difficult to predict, given the direct link to future sales and the range of outcomes. The maximum amount of royalties payable in each year is with reference to net sales.

Provisions

Provisions	12 Months Ended
	Dec. 31, 2018
Provisions.
Provisions	20 Provisions Employee Other Severance Environmental benefits Legal provisions Total $m $m $m $m $m $m At 1 January 2016 403 67 158 357 257 1,242 Charge for year 578 11 6 223 170 988 Cash paid (433) (19) (21) (126) (87) (686) Reversals (40) – – – (39) (79) Exchange and other movements (21) – – (16) (10) (47) At 31 December 2016 487 59 143 438 291 1,418 Charge for year 225 11 30 281 55 602 Cash paid (324) (20) (43) (48) (37) (472) Reversals (75) – (10) (40) (44) (169) Exchange and other movements 45 9 6 23 6 89 At 31 December 2017 358 59 126 654 271 1,468 Charge for year 94 65 1 11 30 201 Cash paid (152) (24) (9) (232) (28) (445) Reversals (58) – – (230) (28) (316) Exchange and other movements (16) (3) 1 (5) 6 (17) At 31 December 2018 226 97 119 198 251 891 $m $m $m Due within one year 506 1,121 1,065 Due after more than one year 385 347 353 Total 891 1,468 1,418 AstraZeneca is undergoing a global restructuring initiative which involves rationalisation of the global supply chain, the sales and marketing organisation, IT and business support infrastructure, and R&D. Employee costs in connection with the initiatives are recognised in severance provisions. Final severance costs are often subject to the completion of the requisite consultations on the areas impacted. Details of the environmental and legal provisions are provided in Note 29. Two payments totalling $145m were paid out of the legal provision during January 2019. Employee benefit provisions include the Deferred Bonus Plan. Further details are included in Note 28. Other provisions comprise amounts relating to specific contractual or constructive obligations and disputes. No provision has been released or applied for any purpose other than that for which it was established.

Post-retirement benefits

Post-retirement benefits	12 Months Ended
	Dec. 31, 2018
Post-retirement benefits
Post-retirement benefits	21 Post-retirement benefits Pensions Background The Company and most of its subsidiaries offer retirement plans which cover the majority of employees in the Group. The Group’s policy is to provide ‘defined contribution’ (‘DC’) orientated pension provision to its employees unless otherwise compelled by local regulation. As a result, many of these retirement plans are DC, where the Group contribution and resulting charge is fixed at a set level or is a set percentage of employees’ pay. However, several plans, mainly in the UK, the US and Sweden, are ‘defined benefit’ (‘DB’), where benefits are based on employees’ length of service and linked to their salary. The major defined benefit plans are now largely legacy arrangements as they have been closed to new entrants since 2000, apart from the collectively bargained Swedish plan (which is still open to employees born before 1979). During 2010, following consultation with its UK employees’ representatives, the Group introduced a freeze on pensionable pay at 30 June 2010 levels for defined benefit members of the UK Pension Fund. The number of active members in the Fund continues to decline and is now approximately 700 employees. In November 2017, the Group closed the qualified and non-qualified US defined benefit pension plans to future accrual (and removed any salary link) from 31 December 2017. The major defined benefit plans are funded through separate, fiduciary-administered assets. The cash funding of the plans, which may from time to time involve special Group payments, is designed, in consultation with independent qualified actuaries, to ensure that the assets are sufficient to meet future obligations as and when they fall due. The funding level is monitored rigorously by the Group and local fiduciaries, taking into account: the Group’s credit rating; local regulation; cash flows; and the solvency and maturity of the relevant pension scheme. Financing principles Ninety one per cent of the Group’s defined benefit obligations at 31 December 2018 are in schemes within the UK, the US and Sweden. In these countries, the pension obligations are funded in line with the Group’s financing principles. There have been no fundamental changes to these principles during 2018. The Group believes: > in funding the benefits it promises to employees and meeting its obligations. > That the pension arrangements should be considered in the context of its broader capital structure. In general, it does not believe in committing excessive capital for funding when the Group might use the capital elsewhere to reinvest in the wider business, nor does it wish to generate surpluses. > In taking some measured and rewarded risks with the investments underlying the funding, subject to a long-term plan to reduce those risks when opportunities arise. > That holding certain investments may cause volatility in the funding position. However, the Group would not wish to amend its contribution level for relatively small deviations from its preferred funding level, because it is expected that there will be short-term volatility, but it is prepared to react appropriately to more significant deviations. > That proactive engagement with local Fiduciary Bodies is necessary and helpful to provide robust oversight and input in relation to funding and investment strategy and to facilitate liability management exercises appropriate to each pension plan. > In considering the use of alternative methods of providing security that do not require immediate cash funding but help mitigate exposure of the pension arrangement to the credit risk of the Group. These principles are appropriate at the present date but they are kept under ongoing review, should circumstances change these principles may also be subject to change. The Group has developed a long-term funding framework to implement these principles, which targets full funding on a low risk funding measure over the long term as the pension funds mature, with affordable long-term de-risking of investment strategy over time. Unless local regulation dictates otherwise, this framework determines the cash contributions payable to the pension funds. A key element of this funding framework is the investment strategy used to grow existing assets and hedge against changes in liability values. The Group provides regular input to local fiduciary boards with the aim of ensuring that an appropriate investment return is targeted over the long term in a risk-controlled manner. UK The UK defined benefit pension fund represents approximately 62% of the Group’s defined benefit obligations at 31 December 2018. The financing principles are modified in light of the UK regulatory requirements (summarised below) and resulting discussions with the Pension Fund Trustee. Role of Trustees and Regulation (UK) The UK Pension Fund is governed and administered by a corporate Trustee which is legally separate from the Group. The Trustee Directors are comprised of representatives appointed by both the employer and employees, and include an independent professional Trustee Director. The Trustee Directors are required by law to act in the interest of all relevant beneficiaries and are responsible in particular for the asset investment policy and the day-to-day administration of the benefits. They are also responsible for jointly agreeing with the employer the level of contributions due to the UK Pension Fund (see below). The UK pensions market is regulated by The Pensions Regulator whose statutory objectives and regulatory powers are described on its website, www.thepensionsregulator.gov.uk. Funding requirements (UK) UK legislation requires that pension schemes are funded prudently. On a triennial basis, the Trustee and the Group must agree the contributions required (if any) to ensure the Fund is fully funded over an appropriate time-period and on a suitably prudent measure. The last full actuarial valuation of the AstraZeneca Pension Fund was carried out by a qualified actuary as at 31 March 2016 and following discussions between the Group and Trustee was finalised and accepted by The Pensions Regulator in 2017. The next actuarial valuation is due to take place as at 31 March 2019, with a likely timescale for completion in early to mid-2020. In relation to deficit recovery contributions, a lump sum contribution of £51m ($68m) was made in March 2018, with a further £51m contribution due before 31 March 2019. In addition, a contribution of £26m ($35m) was made in March 2018, with a further contribution of £27m due before 31 March 2019, in relation to part payment of the deferred contribution explained below. During 2017, the Group provided a letter of credit to the Trustee, to underwrite the deferral of an additional deficit recovery contribution payment of approximately £126m which was due in 2017. This contribution will now be paid in five instalments (with interest added each year) from March 2018 to March 2022. The letter of credit underwriting these payments will be renewed each year, but will reduce in value as each annual payment is made. The Group entered into a long-term funding agreement with the Trustee in October 2016 under which the Group will grant a charge in favour of the Trustee over certain land and buildings at the Cambridge Biomedical Campus, which would crystallise only in the event of the Group’s insolvency. This charge will provide security in respect of future UK Pension Fund contributions. Under the funding assumptions used to set the statutory funding target, the key assumptions from the actuarial valuation as at 31 March 2016 were as follows: long-term UK price inflation set at 2.6% per annum; salary increases at 0% per annum (as a result of pensionable pay levels being frozen in 2010); pension increases at 2.85% per annum; and discount rate at 3.71% per annum. The resulting valuation of the Fund’s liabilities on that basis were £5,265m ($6,710m) compared to a market value of assets at 31 March 2016 of £4,492m ($5,724m). Under the governing documentation of the UK Pension Fund, any future surplus in the Fund would be returnable to the Group by refund assuming gradual settlement of the liabilities over the lifetime of the Fund. As such, there are no adjustments required in respect of IFRIC 14 ‘IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction’. GMP Equalisation (UK) A UK High Court judgment was issued on 26 October 2018 relating to Guaranteed Minimum Pensions (‘GMP’). Although the ruling relates to the Lloyds Banking Group pension schemes, it is expected to create a precedent for other UK defined benefit pension schemes. The ruling requires the equalisation of member benefits earned between 1990 and 1997 to address gender inequality in instances where GMP benefits are currently unequal. While there remains some uncertainty, the Group has made a provision for the estimated financial impact of this ruling on the UK Pension Fund, based on a comparison of the cumulative value of members’ benefits with the benefits of a notional member of the opposite gender (method C2 under the terminology of the High Court Judgement). The estimated impact is based on the broad profile of the Fund (ie age profile, service profile and GMP proportion) and a past service cost of £17m ($23m) has been recognised in the year ended 31 December 2018. Further work will be carried out with the Trustee over 2019 to determine the exact impact. Rest of Group The IAS 19 positions for the US and Sweden as at 31 December 2018 are shown below. These plans account for 29% of the Group’s defined benefit obligations. The US and Sweden pension funds are governed by Fiduciary Bodies with responsibility for the investment policies of those funds. These plans are funded in line with the Group’s financing principles and contributions are paid as prescribed by the long-term funding framework (subject to local regulations being met). The US defined benefit pension plans were actuarially revalued at 31 December 2018, when plan obligations were $1,463m and plan assets were $1,379m. This includes obligations in respect of the non-qualified plan which is unfunded. There has been an improvement in the funding position of the qualified US pension plan and it is now close to being fully funded on the IAS 19 basis. As the funding position improved over 2018, the investment strategy was de-risked, reducing equity exposure and increasing the interest rate hedge. The Swedish defined benefit pension plans were actuarially valued at 31 December 2018, when plan obligations were estimated to amount to $1,872m and plan assets were $1,017m. It should be noted that the Swedish plans have a funding surplus on the local GAAP accounting basis and this influences contribution policy. On current bases, it is expected that ongoing contributions (excluding those in respect of past service deficit contributions) during the year ending 31 December 2019 for the three main countries will be approximately $32m. Post-retirement benefits other than pensions In the US, and to a lesser extent in certain other countries, AstraZeneca’s employment practices include the provision of healthcare and life assurance benefits for retired employees. As at 31 December 2018, some 3,215 retired employees and covered dependants currently benefit from these provisions and some 2,231 current employees will be eligible on their retirement. AstraZeneca accrues for the present value of such retiree obligations over the working life of the employee. In practice, these benefits will be funded with reference to the financing principles. The cost of post-retirement benefits other than pensions for the Group in 2018 was $5m (2017: $14m; 2016: $17m). Plan assets were $260m and plan obligations were $263m at 31 December 2018. These benefit plans have been included in the disclosure of post-retirement benefits under IAS 19. Financial assumptions Qualified independent actuaries have updated the actuarial valuations under IAS 19 of the major defined benefit schemes operated by the Group to 31 December 2018. The assumptions used may not necessarily be borne out in practice, due to the inherent financial and demographic uncertainty associated with making long-term projections. These assumptions were as follows: UK Rest of Group UK Rest of Group Inflation assumption 3.2 % 1.1 % 3.1 % 2.2 % Rate of increase in salaries – 1 2.0 % – 1 3.1 % Rate of increase in pensions in payment 3.0 % 1.1 % 2.9 % 1.1 % Discount rate – defined benefit obligation 2.8 % 2 3.0 % 2.5 % 2 3.0 % Discount rate – interest cost 2 2.4 % 3 2.5 % 2.5 % 3 2.7 % Discount rate – service cost 2 2.5 % 3 2.9 % 2.7 % 3 3.5 % 1 Pensionable pay frozen at 30 June 2010 levels following UK fund changes. 2 Group defined benefit obligation as at 31 December 2018 calculated using discount rates based on market conditions as at 31 December 2018. 3 2018 interest costs and service costs calculated using discount rates based on market conditions as at 31 December 2017. In the UK, a new assumption has been made that 30% of members will transfer out of the defined benefit section of the AstraZeneca Pension Fund at the point of retirement. This assumption is based on Fund experience since pensions freedoms legislation came into effect in April 2015 and will be reviewed each year to ensure it remains appropriate. The assumption has the impact of reducing liabilities by approximately £53m ($70m) and has been recorded in Other comprehensive income. The weighted average duration of the post-retirement scheme obligations in the UK is 16 years and 15 years in the Rest of Group. Demographic assumptions The mortality assumptions are based on country-specific mortality tables. These are compared to actual experience and adjusted where sufficient data is available. Additional allowance for future improvements in life expectancy is included for all major schemes where there is credible data to support a continuing trend. The table below illustrates life expectancy assumptions at age 65 for male members retiring in 2018 and male members expected to retire in 2038 (2017: 2017 and 2037 respectively). Life expectancy assumption for a male member retiring at age 65 Country UK 23.2 24.7 23.7 24.8 US 22.2 22.8 20.8 23.0 Sweden 21.9 23.6 21.9 23.6 The Group adopted the CMI 2017 Mortality Projections Model with a 1% long-term improvement rate in 2018 in the UK. Risks associated with the Group’s defined benefit pensions The UK defined benefit plan accounts for 62% of the Group’s defined benefit obligations and exposes the Group to a number of risks, the most significant of which are: Risk Description Mitigation Volatile asset returns The Defined Benefit Obligation (DBO) is calculated using a discount rate set with reference to AA-rated corporate bond yields; asset returns that differ from the discount rate will create an element of volatility in the solvency ratio. The UK Pension Fund holds a significant proportion of assets (around 72.5%) in a growth portfolio. Although these growth assets are expected to outperform AA-rated corporate bonds in the long term, they can lead to volatility and mismatching risk in the short term. The allocation to growth assets is monitored to ensure it remains appropriate given the UK Pension Fund’s long-term objectives. In order to mitigate investment risk, the Trustee invests in a suitably diversified range of asset classes, return drivers and investment managers. The investment strategy will continue to evolve to further improve the expected risk/return profile as opportunities arise. The Trustee has hedged the majority (over 80%) of unintended non-sterling, overseas currency risk within the UK Pension Fund assets. Changes in bond yields A decrease in corporate bond yields will increase the present value placed on the DBO for accounting purposes. The interest rate hedge of the UK Pension Fund is implemented via holding gilts and swaps of appropriate duration and set at approximately 85% of total assets and protects to some degree against falls in long-term interest rates (approximately 80% hedged at the end of 2017). There is a framework in place to gradually increase the level of interest rate hedging to 100% of assets over time, via a combination of liability management exercises and additional market-based hedging. There are some differences in the bonds and instruments held by the UK Pension Fund to hedge interest rate risk on the statutory and long-term funding basis (gilts and swaps) and the bonds analysed to set the DBO discount rate on an accounting basis (AA corporate bonds). As such, there remains some mismatching risk on an accounting basis should yields on gilts and swaps diverge compared to AA corporate bonds. Inflation risk A significant proportion of the DBO is indexed in line with price inflation (mainly inflation as measured by the UK Retail Price Index (RPI) but also for some members a component of pensions is indexed by the UK Consumer Price Index (CPI)) and higher inflation will lead to higher liabilities (although, in most cases, this is capped at an annual increase of 5%). The UK Pension Fund holds index-linked gilts and derivative instruments such as swaps. The inflation hedge of the UK Pension Fund is set at approximately 88% of total assets and protects to some degree against higher-than-expected inflation increases on the DBO (approximately 85% hedged at the end of 2017). There is a framework in place to gradually increase the level of inflation hedging to 100% of assets over time, via a combination of liability management exercises and additional market-based hedging. Life expectancy The majority of the UK Pension Fund’s obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the liabilities. The UK Pension Fund entered into a longevity swap during 2013 which provides hedging against the longevity risk of increasing life expectancy over the next 75 years for around 10,000 of the UK Pension Fund’s current pensioners and covers $2.1bn of the UK Pension Fund’s liabilities. A one-year increase in life expectancy will result in a $217m increase in pension fund assets. Other risks There are a number of other risks of running the UK Pension Fund including counterparty risks from using derivatives (mitigated by using a diversified range of counterparties of high standing and ensuring positions are collateralised daily). Furthermore, there are operational risks (such as paying out the wrong benefits) and legislative risks (such as the government increasing the burden on companies through new legislation). These are mitigated so far as possible via the governance structure in place which oversees and administers the pension funds. The Group’s pension plans in the US and Sweden also manage these key risks, where they are relevant, in a similar manner, with the local fiduciary bodies investing in a diversified growth portfolio and employing a framework to hedge interest rate risk. Post-retirement scheme deficit The assets and obligations of the defined benefit schemes operated by the Group at 31 December 2018, as calculated in accordance with IAS 19, are shown overleaf. The fair values of the schemes’ assets are not intended to be realised in the short term and may be subject to significant change before they are realised. The present value of the schemes’ obligations is derived from cash flow projections over long periods and is therefore inherently uncertain. Scheme assets UK Rest of Group Total Quoted Unquoted Quoted Unquoted Quoted Unquoted Total $m $m $m $m $m $m $m Government bonds 1 2,056 – 79 45 2,135 45 2,180 Corporate bonds 2 – 37 849 – 849 37 886 Derivatives 3 – (237) (12) 26 (12) (211) (223) Investment funds: Listed Equities – 1,174 371 421 371 1,595 1,966 Investment funds: Global Macro Hedge 4 – 1,004 – 396 – 1,400 1,400 Investment funds: Diversified growth/Multi Strategy 4 – 1,921 – 416 – 2,337 2,337 Investment funds: Multi-asset credit 4 – 633 – 268 – 901 901 Cash and cash equivalents 40 121 23 23 63 144 207 Other – – 2 266 2 266 268 Total fair value of scheme assets 5 2,096 4,653 1,312 1,861 3,408 6,514 9,922 UK Rest of Group Total Quoted Unquoted Quoted Unquoted Quoted Unquoted Total $m $m $m $m $m $m $m Government bonds 1 1,725 – 199 – 1,924 – 1,924 Corporate bonds 2 – – 870 – 870 – 870 Derivatives 3 – (189) 3 145 3 (44) (41) Investment funds: Listed Equities – 1,197 201 190 201 1,387 1,588 Investment funds: Global Macro Hedge 4 – 733 – 280 – 1,013 1,013 Investment funds: Diversified growth/Multi Strategy 4 – 1,712 – 449 – 2,161 2,161 Investment funds: Multi-asset credit 4 – 596 – 191 – 787 787 Cash and cash equivalents 39 176 81 5 120 181 301 Other – – 1 250 1 250 251 Total fair value of scheme assets 5 1,764 4,225 1,355 1,510 3,119 5,735 8,854 1 Predominantly developed markets in nature. 2 Predominantly developed markets in nature and investment grade (AAA-BBB). 3 Includes interest rate swaps, inflation swaps, longevity swap, equity total return swaps and other contracts. 4 Investment Funds are pooled, commingled vehicles, whereby the pension scheme owns units in the fund, alongside other investors. The pension schemes invest in a number of Investment Funds, including Listed Equities (primarily developed markets with some emerging markets across the world), Multi-asset credit (bonds and debt including a range of investment grade and non-investment grade credit across the world), Diversified growth/Multi Strategy (multi-asset exposure both across and within traditional and alternative asset classes), and Global Macro Hedge funds (Discretionary/Fundamental Macro and managed futures). 5 Included in scheme assets is $nil (2017: $nil) of the Group’s own assets. Scheme obligations UK Rest of Group Total UK Rest of Group Total $m $m $m $m $m $m Present value of scheme obligations in respect of: Active membership (751) (1,468) (2,219) (814) (1,018) (1,832) Deferred membership (1,665) (1,215) (2,880) (1,998) (1,688) (3,686) Pensioners (4,636) (1,630) (6,266) (5,220) (1,767) (6,987) Total value of scheme obligations (7,052) (4,313) (11,365) (8,032) (4,473) (12,505) Net deficit in the scheme UK Rest of Group Total UK Rest of Group Total $m $m $m $m $m $m Total fair value of scheme assets 5,989 2,865 8,854 6,749 3,173 9,922 Total value of scheme obligations (7,052) (4,313) (11,365) (8,032) (4,473) (12,505) Deficit in the scheme as recognised in the (1,063) (1,448) (2,511) (1,283) (1,300) (2,583) Fair value of scheme assets UK Rest of Group Total UK Rest of Group Total $m $m $m $m $m $m At beginning of year 6,749 3,173 9,922 6,137 2,979 9,116 Interest income on scheme assets 156 79 235 159 81 240 Expenses (5) (9) (14) (6) (12) (18) Actuarial gains (351) (123) (474) 45 188 233 Exchange and other adjustments (349) (23) (372) 596 176 772 Employer contributions 143 31 174 123 34 157 Participant contributions 2 1 3 3 – 3 Benefits paid (356) (264) (620) (308) (273) (581) Scheme assets’ fair value at end of year 5,989 2,865 8,854 6,749 3,173 9,922 The actual return on the plan assets was a loss of $239m (2017: gain of $473m). Movement in post-retirement scheme obligations UK Rest of Group Total UK Rest of Group Total $m $m $m $m $m $m Present value of obligations in scheme at beginning of year (8,032) (4,473) (12,505) (7,118) (4,184) (11,302) Current service cost (23) (51) (74) (23) (64) (87) Past service (cost)/credit (34) (6) (40) (39) 70 31 Participant contributions (2) (1) (3) (3) – (3) Benefits paid 356 264 620 308 273 581 Interest expense on post-retirement scheme obligations (185) (102) (287) (184) (105) (289) Actuarial losses 472 (44) 428 (272) (202) (474) Exchange and other adjustments 396 100 496 (701) (261) (962) Present value of obligations in scheme at end of year (7,052) (4,313) (11,365) (8,032) (4,473) (12,505) The obligations arise from the following plans: UK Rest of Group Total UK Rest of Group Total $m $m $m $m $m $m Funded – pension schemes (7,034) (3,584) (10,618) (8,013) (3,698) (11,711) Funded – post-retirement healthcare – (230) (230) – (245) (245) Unfunded – pension schemes – (483) (483) – (515) (515) Unfunded – post-retirement healthcare (18) (16) (34) (19) (15) (34) Total (7,052) (4,313) (11,365) (8,032) (4,473) (12,505) Consolidated Statement of Comprehensive Income disclosures The amounts that have been charged to the Consolidated Statement of Comprehensive Income, in respect of defined benefit schemes for the year ended 31 December 2018, are set out below. UK Rest of Group Total UK Rest of Group Total $m $m $m $m $m $m Operating profit Current service cost (23) (51) (74) (23) (64) (87) Past service (cost)/credit (34) (6) (40) (39) 70 31 Expenses (5) (9) (14) (6) (12) (18) Total charge to operating profit (62) (66) (128) (68) (6) (74) Finance expense Interest income on scheme assets 156 79 235 159 81 240 Interest expense on post-retirement scheme obligations (185) (102) (287) (184) (105) (289) Net interest on post-employment defined benefit plan liabilities (29) (23) (52) (25) (24) (49) Charge before taxation (91) (89) (180) (93) (30) (123) Other comprehensive income Difference between the actual return and the expected return (351) (123) (474) 45 188 233 Experience gains/(losses) arising on the (26) (46) (72) (50) (4) (54) Changes in financial assumptions underlying the present value 389 4 393 (261) (214) (475) Changes in demographic assumptions 109 (2) 107 39 15 54 Remeasurement of the defined benefit liability 121 (167) (46) (227) (15) (242) Past service cost in 2018 includes a charge to Operating Profit of $23m arising from the expected impact of the UK High Court judgment relating to Guaranteed Minimum Pensions on the UK Pension Fund, as referred to in the UK section on page 179. The past service cost in 2018 also includes costs predominantly related to enhanced pensions in early retirement in the UK and Sweden. Group costs in respect of defined contribution schemes during the year were $341m (2017: $304m). Rate sensitivities The following table shows the US dollar effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations in our three main defined benefit pension obligation countries. +0.5% −0.5% +0.5% −0.5% Discount rate UK ($m) 520 (586) 618 (703) US ($m) 78 (83) 95 (101) Sweden ($m) 152 (174) 147 (168) Total ($m) 750 (843) 860 (972) +0.5% −0.5% +0.5% −0.5% Inflation rate 1 UK ($m) (444) 421 (526) 495 US ($m) – – – – Sweden ($m) (171) 151 (165) 146 Total ($m) (615) 572 (691) 641 +0.5% −0.5% +0.5% −0.5% Rate of increase in salaries UK ($m) – – – – US ($m) – – – – Sweden ($m) (52) 48 (51) 47 Total ($m) (52) 48 (51) 47 +1 year −1 year +1 year −1 year Mortality rate UK ($m) (301) 2 302 3 (337) 337 US ($m) (24) 24 (26) 27 Sweden ($m) (68) 68 (63) 64 Total ($m) (393) 394 (426) 428 1 Rate of increase in pensions in payment follows inflation. 2 Of the $301m increase, $217m is covered by the longevity swap. 3 Of the $302m decrease, $212m is covered by the longevity swap. The sensitivity to the financial assumptions shown above has been estimated taking into account the approximate duration of the liabilities and the overall profile of the plan membership. The sensitivity to the life expectancy assumption has been estimated based on the distribution of the plan cash flows.

Reserves

Reserves	12 Months Ended
	Dec. 31, 2018
Reserves
Reserves	22 Reserves Retained earnings The cumulative amount of goodwill written off directly to reserves resulting from acquisitions, net of disposals, amounted to $619m (2017: $631m; 2016: $613m) using year-end rates of exchange. At 31 December 2018, 456,792 shares, at a cost of $22m, have been deducted from retained earnings (2017: 476,504 shares, at a cost of $22m; 2016: 276,303 shares, at a cost of $19m) to satisfy future vesting of employee share plans. There are no significant statutory or contractual restrictions on the distribution of current profits of subsidiaries; undistributed profits of prior years are, in the main, permanently employed in the businesses of these companies. The undistributed income of AstraZeneca companies overseas might be liable to overseas taxes and/or UK taxation (after allowing for double taxation relief) if they were to be distributed as dividends (see Note 4). $m $m $m Cumulative translation differences included within retained earnings At 1 January (1,017) (2,028) (372) Foreign exchange arising on consolidation (450) 536 (1,050) Exchange adjustments on goodwill (recorded against other reserves) (12) 18 (11) Foreign exchange arising on designating borrowings in net investment hedges 1 (520) 505 (591) Fair value movement on derivatives designated in net investment hedges 2 (8) (48) (4) Net exchange movement in retained earnings (990) 1,011 (1,656) At 31 December (2,007) (1,017) (2,028) 1. Foreign exchange arising on designated borrowings in net investment hedges includes $45m in respect of designated bonds and $(565)m in respect of designated contingent consideration liabilities. The change in value of designated bonds relates to $25m in respect of our £350m 5.75% 2031 non-callable bond and $20m in respect of a €450m portion of our €750m 0.875% 2021 non-callable bond. The change in value of designated contingent consideration liabilities relates to $(358)m in respect of BMS’ share of Global Diabetes Alliance, $(32)m in respect of Almirall and $(6)m in respect of Definiens and $(169)m in relation to the put option liability in Acerta Pharma. 2. Fair value movement on derivatives designated in net investment hedges comprises $(13)m in respect of our $750m Japanese yen to US dollar cross currency interest rate swap, $(1)m in respect of our $69m Chinese renminbi to US dollar cross currency interest rate swap and $6m in respect of our matured $151m Chinese renminbi to US dollar cross currency interest rate swap. Cumulative amounts with respect to cash flow hedges included within retained earnings are $37m (2017: $76m; 2016: $80m). With effect from 1 January 2018, the Company has disclosed separately the costs of hedging of cross currency interest rate swaps in cash flow hedges and net investment hedges. The cumulative gain with respect to costs of hedging is $47m and the loss during the year was $54m. The balance remaining in the foreign currency translation reserve from net investment hedging relationships for which hedge accounting no longer applied is a gain of £154m. Other reserves The other reserves arose from the cancellation of £1,255m of share premium account by the Company in 1993 and the redenomination of share capital ($157m) in 1999. The reserves are available for writing off goodwill arising on consolidation and, subject to guarantees given to preserve creditors at the date of the court order, are available for distribution.

Share capital of the Company

Share capital of the Company	12 Months Ended
	Dec. 31, 2018
Share capital of the Company
Share capital of the Company	23 Share capital of the Company Allotted, called-up and fully paid $m $m $m Issued Ordinary Shares ($0.25 each) 317 317 316 Redeemable Preference Shares (£1 each – £50,000) – – – At 31 December 317 317 316 The Redeemable Preference Shares carry limited class voting rights and no dividend rights. This class of shares is capable of redemption at par at the option of the Company on the giving of seven days’ written notice to the registered holder of the shares. The Company does not have a limited amount of authorised share capital. The movements in the number of Ordinary Shares during the year can be summarised as follows: No. of shares At 1 January 1,266,221,605 1,265,229,424 1,264,122,670 Issues of shares (share schemes) 817,831 992,181 1,106,754 At 31 December 1,267,039,436 1,266,221,605 1,265,229,424 Share repurchases No Ordinary Shares were repurchased by the Company in 2018 (2017: nil; 2016: nil). Shares held by subsidiaries No shares in the Company were held by subsidiaries in any year.

Dividends to shareholders

Dividends to shareholders	12 Months Ended
	Dec. 31, 2018
Dividends to shareholders
Dividends to shareholders	24 Dividends to shareholders Per share Per share Per share $m $m $m Second interim (March 2018) $ $ $ 2,402 2,404 2,402 Interim (September 2018) $ $ $ 1,139 1,139 1,138 Total $ $ $ 3,541 3,543 3,540 The Company has exercised its authority in accordance with the provisions set out in the Company’s Articles of Association that the balance of unclaimed dividends over past 12 years be forfeited. $2m of unclaimed dividends have been adjusted for in retained earnings in 2018. The 2017 second interim dividend of $1.90 per share was paid on 19 March 2018. Reconciliation of dividend charged to equity to cash flow statement: $m $m $m Dividends charged to equity 3,541 3,543 3,540 Exchange losses/(gains) on payment of dividend 10 (4) 3 Hedge contracts relating to payment of dividends (cash flow statement) (67) (20) 18 Dividends paid (cash flow statement) 3,484 3,519 3,561

Non-controlling interests

Non-controlling interests	12 Months Ended
	Dec. 31, 2018
Non-controlling interests.
Non-controlling interests	25 Non-controlling interests Following the acquisition of a majority stake in Acerta Pharma on 2 February 2016, the Group Financial Statements at 31 December 2018 reflect equity of $1,567m (2017: $1,676m; 2016: $1,808m) and total comprehensive losses of $109m (2017: losses of $132m; 2016: losses of $95m) attributable to the non-controlling interests, held by other parties, of Acerta Pharma B.V. and its subsidiaries. The following summarised financial information, for Acerta Pharma B.V. and its subsidiaries, is presented on a stand-alone basis since the acquisition date, and before the impact of Group-related adjustments, some of which are incorporated into this calculation of the loss attributable to the non-controlling interests: $m $m $m Total Revenue – – – (Loss)/profit after tax (9) 412 (212) Other comprehensive income – – – Total comprehensive (loss)/income (9) 412 (212) $m $m $m Non-current assets 16 73 Current assets 526 79 Total assets 542 152 Current liabilities (63) (171) Total liabilities (63) (171) Net assets/(liabilities) 479 (19) $m $m $m Net cash inflow/(outflow) from operating activities 7 5 (223) Net cash (outflow)/inflow from investing activities (4) – 139 Increase/(decrease) in cash and cash equivalents in the year 3 5 (84) The non-controlling interest in Acerta Pharma is subject to a put option, exercisable by the minority shareholders at certain points in the future, not earlier than the commercial launch of Calquence (acalabrutinib) in both the US and Europe and when the extent of the commercial opportunity has been fully established. This put option gives rise to a liability which is recorded at the present value of the expected redemption amount, calculated using a probability-weighted model based on forecast revenue and earnings of Acerta Pharma, and is recorded within Non-current other payables (see Note 19). The forecast revenue and earnings of Acerta Pharma will particularly be affected by the outcome of ongoing clinical trials and regulatory submissions relating to Calquence . If actual earnings are lower than forecast, the liability for the put option will decrease. Similarly, if actual earnings are higher than forecast, the liability for the put option will increase. The value of the liability is also sensitive to the expected timing of exercise. The amount of the liability is not directly correlated to time until the expected date of exercise. During the year, the liability was remeasured due to a change in the expected timing of the exercise of the put option, while during 2017, Calquence received regulatory approval in the US for the treatment of adult patients with mantle cell lymphoma (MCL) who have received at least one prior therapy. This approval has changed the weighted probability of certain outcomes in respect of the forecast earnings of Acerta Pharma and has brought forward the weighted average expected exercise date of the put option. The changes to these assumptions resulted in a decrease (2017: decrease; 2016 decrease) in the liability for the year before the effect of interest costs. On exercise of the put option, the associated cash flows will be disclosed as financing activities within the Consolidated Statement of Cash Flows.

Acquisitions of business operat

Acquisitions of business operations	12 Months Ended
	Dec. 31, 2018
Disclosure of detailed information about business combination [abstract]
Acquisitions of business operations	26 Acquisitions of business operations There were no acquisitions of business operations in 2018 or 2017. 2016 Acquisitions Acerta Pharma On 2 February 2016, AstraZeneca completed an agreement to invest in a majority equity stake in Acerta Pharma, a privately-owned biopharmaceutical company based in the Netherlands and US. The transaction provides AstraZeneca with a potential best-in-class irreversible oral Bruton’s tyrosine kinase (BTK) inhibitor, Calquence , currently in Phase III development for B-cell blood cancers and in Phase I/II clinical trials in multiple solid tumours. Acerta Pharma has approximately 150 employees. Under the terms of the agreement, AstraZeneca has acquired 55% of the issued share capital of Acerta Pharma for an upfront payment of $2.5bn. A further payment of $1.5bn was due either on receipt of the first regulatory approval for Calquence for any indication in the US, or the end of 2018, depending on which was first. This was paid in 2017 on receipt of first regulatory approval in the US. The agreement also includes options which, if exercised, provide the opportunity for Acerta Pharma’s shareholders to sell, and AstraZeneca to buy, the remaining 45% of shares in Acerta Pharma. The options can be exercised at various points in time, conditional on the first approval of Calquence in both the US and Europe and when the extent of the commercial opportunity has been fully established, at a price of approximately $3bn net of certain costs and payments incurred by AstraZeneca and net of agreed future adjusting items, using a pre-agreed pricing mechanism. The acquiring entity within the Group was a Swedish krona functional currency subsidiary. Foreign currency risk arises from the retranslation of the US dollar denominated liabilities arising from the transaction. To manage this foreign currency risk these liabilities have been designated as the hedge instrument in a net investment hedge of the Group’s underlying US dollar net investments. Exchange differences on the retranslation of the contingent consideration liability are recognised in Other comprehensive income to the extent that the hedge is effective. Any ineffectiveness is taken to profit. AstraZeneca’s 55% holding is a controlling interest and Acerta Pharma’s combination of intangible product rights with an established workforce and their operating processes requires that the transaction is accounted for as a business combination in accordance with IFRS 3. Goodwill is principally attributable to the value of the specialist know-how inherent in the acquired workforce and the accounting for deferred taxes. Goodwill is not expected to be deductible for tax purposes. Acerta Pharma’s results have been consolidated into the Group’s results from 2 February 2016. From the period from acquisition to 31 December 2016, Acerta Pharma had no revenues and its loss after tax was $212m. If the acquisition had taken effect at the beginning of the reporting period in which the acquisition occurred (1 January 2016), on a pro forma basis, the revenue of the combined Group for 2016 would have been unchanged and the profit after tax would have been $3,367m. This pro forma information does not purport to represent the results of the combined Group that actually would have occurred had the acquisition taken place on 1 January 2016 and should not be taken to be representative of future results. The fair values assigned to the Acerta Pharma business combination completed in 2016 were: Fair value $m Non-current assets Intangible assets (Note 9) 7,307 Current assets 253 Current liabilities (90) Non-current liabilities Deferred tax liabilities (1,777) Total net assets acquired 5,693 Non-controlling interests (1,903) Goodwill (Note 8) 19 Fair value of total consideration 3,809 Less: fair value of deferred consideration (1,332) Total upfront consideration 2,477 Less: cash and cash equivalents acquired (94) Net cash outflow 2,383 Acquisition costs were immaterial.

Financial risk management objec

Financial risk management objectives and policies	12 Months Ended
	Dec. 31, 2018
Disclosure Of financial risk management objectives and policies
Financial risk management objectives and policies	27 Financial risk management objectives and policies The Group’s principal financial instruments, other than derivatives, comprise bank overdrafts, finance leases, loans, current and non-current investments, cash and short-term deposits. The main purpose of these financial instruments is to manage the Group’s funding and liquidity requirements. The Group has other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations. The principal financial risks to which the Group is exposed are those of liquidity, interest rate, foreign currency and credit. Each of these is managed in accordance with Board-approved policies. These policies are set out below. The Group uses foreign currency borrowings, foreign currency forwards and swaps, currency options, interest rate swaps and cross-currency interest rate swaps for the purpose of hedging its foreign currency and interest rate risks. The Group may designate certain financial instruments as fair value hedges, cash flow hedges or net investment hedges in accordance with IFRS 9. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. Sources of hedge effectiveness will depend on the hedge relationship designation but may include: > A significant change in the credit risk of either party to the hedging relationship. > A timing mismatch between the hedging instrument and the hedged item. > Movements in foreign currency basis spread for derivatives in a fair value hedge. > A significant change in the value of the foreign currency denominated net assets of the Group in a net investment hedge. The hedge ratio for each designation will be established by comparing the quantity of the hedging instrument and the quantity of the hedged item to determine their relative weighting; for all of the Group’s existing hedge relationships the hedge ratio has been determined as 1:1. Key controls applied to transactions in derivative financial instruments are: to use only instruments where good market liquidity exists, to revalue all financial instruments regularly using current market rates and to sell options only to offset previously purchased options or as part of a risk management strategy. The Group is not a net seller of options, and does not use derivative financial instruments for speculative purposes. Capital management The capital structure of the Group consists of shareholders’ equity (Note 23), debt (Note 18), other current investments (Note 11) and cash (Note 16). For the foreseeable future, the Board will maintain a capital structure that supports the Group’s strategic objectives through: > managing funding and liquidity risk > optimising shareholder return > maintaining a strong, investment-grade credit rating. The Group utilises factoring arrangements for selected trade receivables. These factoring arrangements qualify for full derecognition of the associated trade receivables under IFRS 9. Amounts due, on invoices that have not been factored at year end, from customers that are subject to factoring arrangements are disclosed in Note 15. Funding and liquidity risk are reviewed regularly by the Board and managed in accordance with policies described below. The Board’s distribution policy comprises a regular cash dividend and, subject to business needs, a share repurchase component. The Board regularly reviews its shareholders’ return strategy, and in 2012 decided to suspend share repurchases in order to retain strategic flexibility. The Group’s net debt position (loans and borrowings net of Cash and cash equivalents, other investments and derivative financial instruments) has increased from a net debt position of $12,679m at the beginning of the year to a net debt position of $13,003m at 31 December 2018. Liquidity risk The Board reviews the Group’s ongoing liquidity risks annually as part of the planning process and on an ad hoc basis. The Board considers short-term requirements against available sources of funding, taking into account forecast cash flows. The Group manages liquidity risk by maintaining access to a number of sources of funding which are sufficient to meet anticipated funding requirements. Specifically, the Group uses US commercial paper, bank loans, committed bank facilities and cash resources to manage short-term liquidity and manages long-term liquidity by raising funds through the capital markets. The Group is assigned short-term credit ratings of P-2 by Moody’s and A-2 by Standard and Poor’s. The Group’s long-term credit rating is A3 negative outlook by Moody’s and BBB+ stable outlook by Standard and Poor’s. In addition to Cash and cash equivalents of $4,831m, short-term fixed income investments of $809m, fixed deposits of $40m, less overdrafts of $160m at 31 December 2018, the Group has committed bank facilities of $4.1bn available to manage liquidity. At 31 December 2018, the Group has issued $3,792m under a Euro Medium Term Note programme and $14,546m under a SEC-registered programme. The Group increased its committed bank facilities by $1.1bn in the year to a total of $4.1bn at 31 December 2018. $0.2bn of the new facilities mature in December 2019 but have a one-year extension option, exercisable by the Group. $0.5bn of the new facilities mature in December 2020 but have a one-year extension option, exercisable by the Group. $0.4bn of the new facilities, together with the existing $3bn of facilities, mature in April 2022. The funds made available under these facility agreements may be used for the general corporate purposes of the Group. The Group regularly monitors the credit standing of the banking group and currently does not anticipate any issue with drawing on the committed facilities should this be necessary. Advances under the revolving facilities bear an interest rate per annum based on LIBOR (or other relevant benchmark rate) plus a margin. The facility agreements contain no financial covenants. At 31 December 2018 the facilities were undrawn. The maturity profile of the anticipated future contractual cash flows including interest in relation to the Group’s financial liabilities, on an undiscounted basis and which, therefore, differs from both the carrying value and fair value, is as follows: Bank Total Total overdrafts Trade non-derivative Cross- derivative and other Finance and other financial Interest currency financial loans Bonds leases payables instruments rate swaps swaps instruments Total $m $m $m $m $m $m $m $m $m Within one year 455 2,374 42 10,566 13,437 (54) 32 (22) 13,415 In one to two years – 1,921 24 4,986 6,931 (19) 12 (7) 6,924 In two to three years – 1,500 16 1,144 2,660 (15) (216) (231) 2,429 In three to four years – 2,080 10 1,666 3,756 (15) 47 32 3,788 In four to five years 7 1,756 3 877 2,643 (15) 86 71 2,714 In more than five years – 14,796 – 3,624 18,420 (30) 320 290 18,710 462 24,427 95 22,863 47,847 (148) 281 133 47,980 Effect of interest (4) (8,111) (2) – (8,117) 148 (351) (203) (8,320) Effect of discounting, fair values and issue costs – (59) – (2,889) (2,948) (82) (93) (175) (3,123) 31 December 2016 458 16,257 93 19,974 36,782 (82) (163) (245) 36,537 Bank Total Total overdrafts Trade non-derivative Cross- derivative and other Finance and other financial Interest currency financial loans Bonds leases payables instruments rate swaps swaps 1 instruments 1 Total $m $m $m $m $m $m $m $m $m Within one year 859 1,985 5 11,840 14,689 (10) 32 22 14,711 In one to two years – 1,564 – 1,976 3,540 (12) (190) (202) 3,338 In two to three years – 2,144 – 1,586 3,730 (12) 53 41 3,771 In three to four years 16 2,000 – 3,240 5,256 (12) (11) (23) 5,233 In four to five years – 1,736 – 1,112 2,848 (12) 37 25 2,873 In more than five years – 15,575 – 2,808 18,383 (12) 31 19 18,402 875 25,004 5 22,562 48,446 (70) (48) (118) 48,328 Effect of interest (14) (7,969) – – (7,983) 70 (504) (434) (8,417) Effect of discounting, fair values and issue costs – (94) – (3,081) (3,175) (50) 93 43 (3,132) 31 December 2017 861 16,941 5 19,481 37,288 (50) (459) (509) 36,779 1 The 2017 disclosures have been revised with the within one year outflow reducing to $32m from $420m, the in one to two years inflow increasing to $190m from $100m, the in two to three years outflow reducing to $53m from $295m, the in three to four years inflow reducing to $11m from $747m, the in four to five years outflow increasing to $37m from $34m and the in more than five years outflow increasing to $31m from $26m. Bank Total Total overdrafts Trade non-derivative Cross- derivative and other Finance and other financial Interest currency financial loans Bonds leases payables instruments rate swaps swaps instruments Total $m $m $m $m $m $m $m $m $m Within one year 774 1,629 – 13,029 15,432 (10) (172) (182) 1 15,250 In one to two years 7 2,210 – 1,688 3,905 (9) 57 48 2 3,953 In two to three years 14 2,002 – 833 2,849 (9) 33 24 3 2,873 In three to four years – 1,813 – 3,340 5,153 (9) 37 28 4 5,181 In four to five years – 2,069 – 776 2,845 (9) 37 28 5 2,873 In more than five years – 17,405 – 2,084 19,489 – 69 69 6 19,558 795 27,128 – 21,750 49,673 (46) 61 15 49,688 Effect of interest (2) (8,669) – – (8,671) 46 (304) (258) (8,929) Effect of discounting, fair values and issue costs (17) (122) – (2,139) (2,278) (40) (83) (123) (2,401) 31 December 2018 776 18,337 – 19,611 38,724 (40) (326) (366) 38,358 1. Total derivative financial instruments within one year excludes Other current derivatives of $(18)m (2017: $5m; 2016: $10m). Total derivative financial instruments within one year and Other current derivatives reflect receivables of $10.207bn (2017: $6.738bn) and payables of $10.007bn (2017: $6.765bn). 2. Total derivative financial instruments in one to two years reflects receivables of $35m (2017: $803m) and payables of $83m (2017: $601m). 3. Total derivative financial instruments in two to three years reflects receivables of $950m (2017: $39m) and payables of $974m (2017: $80m). 4. Total derivative financial instruments in three to four years reflects receivables of $30m (2017: $994m) and payables of $58m (2017: $971m). 5. Total derivative financial instruments in four to five years reflects receivables of $30m (2017: $34m) and payables of $58m (2017: $59m). 6. Total derivative financial instruments in more than five years reflects receivables of $2.084bn (2017: $2.198bn) and payables of $2.153bn (2017: $2.217bn). Where interest payments are on a floating rate basis, it is assumed that rates will remain unchanged from the last business day of each year ended 31 December. It is not expected that the cash flows in the maturity profile could occur significantly earlier or at significantly different amounts, with the exception of $5,106m of contingent consideration and $1,838m arising from the put option over the non-controlling interest in Acerta Pharma, both held within Other payables (see Note 19). Market risk Interest rate risk The Group maintains a mix of fixed and floating rate debt. The portion of fixed rate debt was approved by the Board and any variation requires Board approval. A significant portion of the long-term debt is held at fixed rates of interest. The Group uses interest rate swaps and forward rate agreements to manage this mix. During the year, the Group issued $1.25bn of bonds maturing in 2023, $1.0bn in 2029 and $0.75bn in 2048. These were to refinance the $1.4bn of bonds maturing in 2018 and for general corporate purposes. At 31 December 2018, the Group held interest rate swaps with a notional value of $0.29bn, converting the 7% guaranteed debentures payable in 2023 to floating rates. No new interest rate swaps were entered into during 2018. At 31 December 2018, swaps with a notional value of $0.29bn related to debt designated as fair value through profit or loss. Designated hedges are expected to be effective and therefore the impact of ineffectiveness on profit is not expected to be material. The accounting treatment for fair value hedges and debt designated as fair value through profit or loss is disclosed in the Group Accounting Policies section from page 157. The majority of surplus cash is currently invested in US dollar liquidity funds, fully collateralised repurchase arrangements and investment grade fixed income securities. The interest rate profile of the Group’s interest-bearing financial instruments, as at 31 December 2018, 31 December 2017 and 31 December 2016, is set out below. In the case of current and non-current financial liabilities, the classification includes the impact of interest rate swaps which convert the debt to floating rate. Fixed rate Floating rate Total Fixed rate Floating rate Total Fixed rate Floating rate Total $m $m $m $m $m $m $m $m $m Financial liabilities Interest-bearing loans and borrowings Current 999 755 1,754 404 1,843 2,247 1,086 1,221 2,307 Non-current 16,038 1,321 17,359 14,608 952 15,560 13,154 1,347 14,501 Total 17,037 2,076 19,113 15,012 2,795 17,807 14,240 2,568 16,808 Financial assets Fixed deposits 40 – 40 – 80 80 – 37 37 Cash and cash equivalents – 4,831 4,831 – 3,324 3,324 – 5,018 5,018 Total 40 4,831 4,871 – 3,404 3,404 – 5,055 5,055 In addition to the financial assets above, there are $6,195m (2017: $6,366m; 2016: $5,519m) of other current and non-current asset investments and other financial assets on which no interest is received. Foreign currency risk The US dollar is the Group’s most significant currency. As a consequence, the Group results are presented in US dollars and exposures are managed against US dollars accordingly. Translational Approximately 67% of Group external sales in 2018 were denominated in currencies other than the US dollar, while a significant proportion of manufacturing, and research and development costs were denominated in pounds sterling and Swedish krona. Surplus cash generated by business units is substantially converted to, and held centrally in, US dollars. As a result, operating profit and total cash flow in US dollars will be affected by movements in exchange rates. This currency exposure is managed centrally, based on forecast cash flows. The impact of movements in exchange rates is mitigated significantly by the correlations which exist between the major currencies to which the Group is exposed and the US dollar. Monitoring of currency exposures and correlations is undertaken on a regular basis and hedging is subject to pre-execution approval. As at 31 December 2018, before impact of derivatives, 2.4% of interest-bearing loans and borrowings were denominated in pounds sterling and 18.3% were denominated in euros. Where there is non-US dollar debt and an underlying net investment of that amount in the same currency, the Group applies net investment hedging. Exchange differences on the retranslation of debt designated as net investment hedges are recognised in other comprehensive income to the extent that the hedge is effective. Any ineffectiveness is taken to profit. The Group holds cross-currency swaps to hedge against the impact of fluctuations in foreign exchange rates. Fair value movements on the revaluation of the cross-currency swaps are recognised in other comprehensive income to the extent that the hedge is effective, with any ineffectiveness taken to profit. Foreign currency risk arises when the Group has inter-company funding and investments in certain subsidiaries operating in countries with exchange controls or where there is risk of significant future currency devaluation. One indicator of potential foreign currency risk is where a country is officially designated as hyper inflationary. As at 31 December 2018, the Group operates in two countries designated as hyper inflationary being Argentina and Venezuela. The foreign exchange risk to the Group from Argentina is immaterial. At the start of 2018 Venezuela operated a two tier exchange rate system with a heavily subsidised DIPRO rate for essential goods and services and a second rate, DICOM, to cover all other non-essentials. During 2017 the Group had begun to use the DICOM rate for the consolidation of its financial statements, believing that this was the best expectation of the rate at which profits would be remitted. As a result of this the Group was unaffected by the elimination of the DIPRO rate in early 2018. The foreign exchange risk to the Group from Venezuela is immaterial. Transactional The Group aims to hedge all its forecast major transactional currency exposures on working capital balances, which typically extend for up to three months, are hedged, where practicable, using forward foreign exchange contracts against individual Group companies’ reporting currency. In addition, the Group’s external dividend, which is paid principally in pounds sterling and Swedish krona, is fully hedged from announcement to payment date. Foreign exchange gains and losses on forward contracts transacted for transactional hedging are taken to profit. Sensitivity analysis The sensitivity analysis set out overleaf summarises the sensitivity of the market value of our financial instruments to hypothetical changes in market rates and prices. The range of variables chosen for the sensitivity analysis reflects our view of changes which are reasonably possible over a one-year period. Market values are the present value of future cash flows based on market rates and prices at the valuation date. For long-term debt, an increase in interest rates results in a decline in the fair value of debt. The sensitivity analysis assumes an instantaneous 100 basis point change in interest rates in all currencies from their levels at 31 December 2018, with all other variables held constant. Based on the composition of our long-term debt portfolio as at 31 December 2018, a 1% increase in interest rates would result in an additional $17m in interest expense being incurred per year. The exchange rate sensitivity analysis assumes an instantaneous 10% change in foreign currency exchange rates from their levels at 31 December 2018, with all other variables held constant. The +10% case assumes a 10% strengthening of the US dollar against all other currencies and the -10% case assumes a 10% weakening of the US dollar. Each incremental 10% movement in foreign currency exchange rates would have approximately the same effect as the initial 10% detailed in the table below and each incremental 1% change in interest rates would have approximately the same effect as the 1% detailed in the table below. Interest rates Exchange rates 31 December 2016 +1% −1% +10% −10% Increase/(decrease) in fair value of financial instruments ($m) 1,249 (1,390) 180 (180) Impact on profit: (loss)/gain ($m) – – (24) 24 Impact on equity: gain/(loss) ($m) – – 204 (204) Interest rates Exchange rates 31 December 2017 +1% −1% +10% −10% Increase/(decrease) in fair value of financial instruments ($m) 1,329 (1,293) 198 (198) Impact on profit: (loss)/gain ($m) – – (123) 123 Impact on equity: gain/(loss) ($m) – – 321 (321) Interest rates Exchange rates 31 December 2018 +1% −1% +10% −10% Increase/(decrease) in fair value of financial instruments ($m) 1,130 (1,267) (146) 161 Impact on profit: (loss)/gain ($m) – – (299) 348 Impact on equity: gain/(loss) ($m) – – 153 (187) In 2018 the Group changed the method for assessing a 10% change in foreign currency exchange rates. In 2017 and 2016 the sensitivity was calculated as 10% of year end exposure. The sensitivity is now calculated by dividing the non-USD balances by adjusted foreign rates. This does not have a material impact on results but has resulted in the weakening and strengthening values no longer being symmetrical. There have been no other changes in the methods and assumptions used in preparing the sensitivity analysis. Credit risk The Group is exposed to credit risk on financial assets, such as cash investments, derivative instruments, and Trade and other receivables. The Group is also exposed in its Net asset position to its own credit risk in respect of the 2023 debentures which are accounted for at fair value through profit or loss. Under IFRS 9, the Group records the effect of the losses and gains, arising from own credit risk, on the fair value of bonds designated at fair value through profit or loss in Other comprehensive income. Financial counterparty credit risk The majority of the AstraZeneca Group’s cash is centralised within the Group Treasury entity and is subject to counterparty risk on the principal invested. The level of the Group’s cash investments and hence credit risk will depend on the cash flow generated by the Group and the timing of the use of that cash. The credit risk is mitigated through a policy of prioritising security and liquidity over return, and, as such, cash is only invested in high credit quality investments. Counterparty limits are set according to the assessed risk of each counterparty and exposures are monitored against these limits on a regular basis. The Group’s principal financial counterparty credit risks at 31 December 2018 were as follows: Current assets $m $m $m Cash at bank and in hand 893 784 782 Money market liquidity fund 3,435 1,150 3,440 Collateralised repurchase agreement 400 1,150 950 Bank collateral 1 – – (242) Other short-term cash equivalents 103 240 88 Total Cash and cash equivalents (Note 16) 4,831 3,324 5,018 Fixed income securities at fair value through profit and loss (Note 11) 809 – – Fixed income securities available for sale (Note 11) – 1,150 847 Fixed deposits (Note 11) 40 80 37 Total derivative financial instruments (Note 12) 258 28 27 Current assets subject to credit risk 5,938 4,582 5,929 1. In 2017 the Group changed its accounting policy such that collateral receipts were included in interest bearing loans and borrowings. Non-current assets $m $m $m Equity securities at fair value through other comprehensive income (Note 11) 833 – – Equity securities available for sale (Note 11) – 933 727 Derivative financial instruments (Note 12) 157 504 343 Non-current assets subject to credit risk 990 1,437 1,070 The Group may hold significant cash balances as part of its normal operations, with the amount of cash held at any point reflecting the level of cash flow generated by the business and the timing of the use of that cash. The majority of excess cash is centralised within the Group treasury entity and is subject to counterparty risk on the principal invested. This risk is mitigated through a policy of prioritising security and liquidity over return, and, as such, cash is only invested in high credit quality investments. Counterparty limits are set according to the assessed risk of each counterparty and exposures are monitored against these limits on a regular basis. The majority of the Group’s cash is invested in US dollar AAA-rated liquidity funds, fully collateralised repurchase agreements and short-term bank deposits. The money market liquidity fund portfolios are managed by five external third-party fund managers to maintain an AAA rating. The Group’s investments represent no more than 10% of each overall fund value. There were no other significant concentrations of financial credit risk at the reporting date. The short-term repurchase agreements are fully collateralised investments. The collateral is fixed income in nature and is held by a third party custodian and represents approximately 101% of the value of the cash deposited. The minimum long term credit rating of the collateral is BBB minus. In the event of any default, ownership of the collateral would revert to the Group, and would be readily convertible to cash. The value of the collateral held at 31 December 2018 was $403m (2017: $1,151m; 2016: $951m). The fixed income securities are managed by four external third-party fund managers. The long term rating of these securities was BBB minus or better. All financial derivatives are transacted with commercial banks, in line with standard market practice. The Group has agreements with some bank counterparties whereby the parties agree to post cash collateral, for the benefit of the other, equivalent to the market valuation of the derivative positions above a predetermined threshold. The carrying value of such cash collateral held by the Group at 31 December 2018 was $384m (2017: $513m; 2016: $322m) and the carrying value of each cash collateral posted by the Group at 31 December 2018 was $14m (2017: $nil; 2016: $80m). The impairment provision for other financial assets at 31 December 2018 was immaterial. Equity securities represent non-controlling investments in third-party pharmaceutical companies. Trade and other receivables Trade receivable exposures are managed locally in the operating units where they arise and credit limits are set as deemed appropriate for the customer. The Group is exposed to customers ranging from government-backed agencies and large private wholesalers to privately owned pharmacies, and the underlying local economic and sovereign risks vary throughout the world. Where appropriate, the Group endeavours to minimise risks by the use of trade finance instruments such as letters of credit and insurance. Following the adoption of IFRS 9 on 1 January 2018 the Group introduced the expected credit loss approach to establish an allowance for impairment that represents its estimate of expected losses in respect of Trade and other receivables. Given the general quality and short-term nature of our trade receivables, there was no material impact assessed arising from the introduction of this method. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure expected credit losses trade receivables have been grouped based on shared credit characteristics and the days past due. The expected loss rates are based on payment profiles over a period of 36 months before 31 December 2018 or 1 January 2018 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customer to settle the receivables. On that basis, the loss allowance as at 31 December 2018 and 1 January 2018 was determined as follows: 0-90 days 90-180 days Over 180 days 31 December 2018 Current past due past due past due Total Expected loss rate % 0.75 % 10 % 47 % Gross carrying amount 2,854 82 27 70 3,033 Loss allowance 1 1 3 33 38 0-90 days 90-180 days Over 180 days 1 January 2018 Current past due past due past due Total Expected loss rate % 0.75 % 5 % 33 % Gross carrying amount 2,490 262 31 35 2,818 Loss allowance 1 2 1 12 16 Trade receivables are written off where there is no reasonable expectation of recovery. Impairment losses on trade receivables are presented as net impairment losses within operating profit, any subsequent recoveries are credited against the same line. In the US, sales to three wholesalers accounted for approximately 88% of US sales (2017: three wholesalers accounted for approximately 60%; 2016: three wholesalers accounted for approximately 83%). The ageing of trade receivables at the reporting date was: $m $m $m Not past due 2,853 2,488 2,559 Past due 0–90 days 81 260 14 Past due 90–180 days 24 31 – Past due > 180 days 37 23 10 2,995 2,802 2,583 $m $m $m Movements in provisions for trade receivables At 1 January 16 42 52 Income statement 22 (26) – Amounts utilised, exchange and other movements – – (10) At 31 December 38 16 42 Given the profile of our customers, including large wholesalers and government-backed agencies, no further credit risk has been identified with the trade receivables not past due other than those balances for which an allowance has been made. The income statement credit or charge is recorded in Selling, general and administrative costs.

Employee costs and share plans

Employee costs and share plans for employees	12 Months Ended
	Dec. 31, 2018
Employee costs and share plans for employees
Employee costs and share plans for employees	28 Employee costs and share plans for employees Employee costs The average number of people, to the nearest hundred, employed by the Group is set out in the table below. In accordance with the Companies Act 2006, this includes part-time employees. Employees UK 7,200 6,900 7,000 Continental Europe 14,800 14,500 14,700 The Americas 16,700 16,300 17,800 Asia, Africa & Australasia 24,500 22,300 22,000 Continuing operations 63,200 60,000 61,500 Geographical distribution described in the table above is by location of legal entity employing staff. Certain staff will spend some or all of their activity in a different location. The number of people employed by the Group at the end of 2018 was 64,400 (2017: 61,100; 2016: 59,700). The costs incurred during the year in respect of these employees were: $m $m $m Salaries 5,370 5,004 4,664 Social security costs 626 570 584 Pension costs 469 378 426 Other employment costs 505 534 610 Total 6,970 6,486 6,284 Severance costs of $94m are not included above (2017: $225m; 2016: $578m). The Directors believe that, together with the basic salary system, the Group’s employee incentive schemes provide competitive and market-related packages to motivate employees. They should also align the interests of employees with those of shareholders, as a whole, through long-term share ownership in the Company. The Group’s current UK, Swedish and US schemes are described below; other arrangements apply elsewhere. Bonus plans The AstraZeneca UK Performance Bonus Plan Employees of participating AstraZeneca UK companies are invited to participate in this bonus plan, which rewards strong individual performance. Bonuses are paid in cash. The AstraZeneca Executive Annual Bonus Scheme This scheme is a performance bonus scheme for Directors and senior employees who do not participate in the AstraZeneca UK Performance Bonus Plan. Annual bonuses are paid in cash and reflect both corporate and individual performance measures. The Remuneration Committee has discretion to reduce or withhold bonuses if business performance falls sufficiently short of expectations in any year such as to make the payment of bonuses inappropriate. The AstraZeneca Deferred Bonus Plan This plan was introduced in 2006 and is used to defer a portion of the bonus earned under the AstraZeneca Executive Annual Bonus Scheme into Ordinary Shares in the Company for a period of three years. The plan currently operates only in respect of Executive Directors and members of the SET. Awards of shares under this plan are typically made in March each year, the first award having been made in February 2006. Sweden In Sweden, an all-employee performance bonus plan is in operation, which rewards strong individual performance. Bonuses are paid 50% into a fund investing in AstraZeneca equities and 50% in cash. The AstraZeneca Executive Annual Bonus Scheme, the AstraZeneca Performance Share Plan and the AstraZeneca Global Restricted Stock Plan all operate in respect of relevant AstraZeneca employees in Sweden. US In the US, there are two all-employee short-term or annual performance bonus plans in operation to differentiate and reward strong individual performance. Annual bonuses are paid in cash. There is also one senior staff long-term incentive scheme, under which 123 participants may be eligible for awards granted as AstraZeneca ADSs. AstraZeneca ADSs necessary to satisfy the awards are purchased in the market or funded via a share trust. The AstraZeneca Performance Share Plan and the AstraZeneca Global Restricted Stock Plan operate in respect of relevant employees in the US. Share plans The charge for share-based payments in respect of share plans is $219m (2017: $220m; 2016: $241m). The plans are equity settled. The AstraZeneca UK All-Employee Share Plan The Company offers UK employees the opportunity to buy Partnership Shares (Ordinary Shares). Employees may invest up to £1,800 over a 12-month accumulation period and purchase Partnership Shares in the Company with the total proceeds at the end of the period. The purchase price for the shares is the lower of the price at the beginning or the end of the 12-month period. In 2010, the Company introduced a Matching Share element, the first award of which was made in 2011. Currently one Matching Share is awarded for every four Partnership Shares purchased. Partnership Shares and Matching Shares are held in the HM Revenue & Customs (HMRC)-approved All-Employee Share Plan. At the Company’s AGM in 2002, shareholders approved the issue of new shares for the purposes of the All-Employee Share Plan. The AstraZeneca 2014 Performance Share Plan (PSP) This plan was approved by shareholders in 2014 for a period of 10 years and replaces the AstraZeneca Performance Share Plan. Generally, awards can be granted at any time, but not during a closed period of the Company. The first grant of awards was made in May 2014. Awards granted under the plan vest after three years, or in the case of Executive Directors and members of the SET, after an additional two-year holding period, and can be subject to the achievement of performance conditions. For awards granted to all participants in 2018, vesting is subject to a combination of measures focused on scientific leadership, revenue growth and financial performance. The Remuneration Committee has responsibility for agreeing any awards under the plan and for setting the policy for the way in which the plan should be operated, including agreeing performance targets and which employees should be invited to participate. The main grant of awards in 2018 under the plan took place in March with further grants in May and August. Shares WAFV 1 WAFV 1 ʼ 000 pence $ Shares awarded in March 2016 2,673 1962 28.19 Shares awarded in May 2016 24 1935 28.64 Shares awarded in August 2016 67 2536 33.58 Shares awarded in March 2017 2,359 2440 30.88 Shares awarded in May 2017 10 2607 34.20 Shares awarded in August 2017 44 2234 29.11 Shares awarded in March 2018 3,400 2427 34.62 Shares awarded in May 2018 18 2651 36.42 Shares awarded in August 2018 92 2982 38.46 1 Weighted average fair value. The AstraZeneca Investment Plan (AZIP) This plan was introduced in 2010 and approved by shareholders at the 2010 AGM. The final grant of awards under this plan took place in March 2016. Awards granted under the plan vest after eight years and are subject to performance conditions measured over a period of between three and eight years. Shares WAFV WAFV ʼ 000 pence $ Shares awarded in March 2016 84 3923 56.38 The AstraZeneca Global Restricted Stock Plan This plan was introduced in 2010. The main grant of awards in 2018 under the plan was in March, with further, smaller grants in May, August and November. This plan provides for the grant of restricted stock unit (RSU) awards to selected below SET-level employees and is used in conjunction with the AstraZeneca Performance Share Plan to provide a mix of RSUs and performance shares. Awards typically vest on the third anniversary of the date of grant and are contingent on continued employment with the Company. The Remuneration Committee has responsibility for agreeing any awards under the plan and for setting the policy for the way in which the plan should be operated. Shares WAFV WAFV ʼ 000 pence $ Shares awarded in March 2016 2,695 3923 56.38 Shares awarded in August 2016 122 5071 67.16 Shares awarded in March 2017 2,502 4880 61.76 Shares awarded in May 2017 78 5214 68.40 Shares awarded in August 2017 31 4468 58.22 Shares awarded in November 2017 77 4942 66.24 Shares awarded in March 2018 4,474 4853 69.24 Shares awarded in August 2018 40 5964 76.92 Shares awarded in November 2018 3 6300 82.86 The AstraZeneca Restricted Share Plan This plan was introduced in 2008 and provides for the grant of restricted share awards to key employees, excluding Executive Directors. Awards are made on an ad hoc basis with variable vesting dates. The plan has been used four times in 2018 to make awards to 252 employees. The Remuneration Committee has responsibility for agreeing any awards under the plan and for setting the policy for the way in which the plan should be operated. Shares WAFV WAFV ʼ 000 pence $ Shares awarded in March 2016 809 3923 56.38 Shares awarded in May 2016 335 3869 57.28 Shares awarded in August 2016 37 5071 67.16 Shares awarded in November 2016 14 4233 53.42 Shares awarded in February 2017 205 4293 55.50 Shares awarded in March 2017 134 4880 61.76 Shares awarded in May 2017 8 5214 68.40 Shares awarded in August 2017 26 4468 58.22 Shares awarded in September 2017 31 4765 65.60 Shares awarded in November 2017 23 4942 66.24 Shares awarded in March 2018 148 4853 69.24 Shares awarded in May 2018 45 5301 72.84 Shares awarded in August 2018 37 5964 76.92 Shares awarded in November 2018 38 6300 82.86 The AstraZeneca Extended Incentive Plan This plan was introduced in 2018 and provides for the grant of awards to key employees, excluding Executive Directors. Awards are made on an ad hoc basis and 50% of the award will normally vest on the fifth anniversary of grant, with the balance vesting on the tenth anniversary of grant. The award can be subject to the achievement of performance conditions. The Remuneration Committee has responsibility for agreeing any awards under the plan and for setting the policy for the way in which the plan should be operated, including agreeing performance targets (if any) and which employees should be invited to participate. Shares WAFV WAFV ʼ 000 pence $ Shares awarded in March 2018 163 4853 69.24 Shares awarded in August 2018 116 5964 76.92 Shares awarded in November 2018 24 6300 82.86 The fair values were determined using a modified version of the Monte Carlo model. This method incorporated expected dividends but no other features into the measurements of fair value. The grant date fair values of share awards disclosed in this section do not take account of service and non-market related performance conditions.

Commitments and contingent liab

Commitments and contingent liabilities	12 Months Ended
	Dec. 31, 2018
Legal Proceedings and Contingent Liabilities
Commitments and contingent liabilities	29 Commitments and contingent liabilities Commitments $m $m $m Contracts placed for future capital expenditure on Property, plant and equipment and 586 570 629 Guarantees and contingencies arising in the ordinary course of business, for which no security has been given, are not expected to result in any material financial loss. Research and development collaboration payments The Group has various ongoing collaborations, including in-licensing and similar arrangements with development partners. Such collaborations may require the Group to make payments on achievement of stages of development, launch or revenue milestones, although the Group generally has the right to terminate these agreements at no cost. The Group recognises research and development milestones as intangible assets once it is committed to payment, which is generally when the Group reaches set trigger points in the development cycle. Revenue-related milestones are recognised as Intangible assets on product launch at a value based on the Group’s long-term revenue forecasts for the related product. The table below indicates potential development and revenue-related payments that the Group may be required to make under such collaborations. Years 5 Total Under 1 year Years 1 and 2 Years 3 and 4 and greater $m $m $m $m $m Future potential research and development milestone payments 6,881 425 966 1,395 4,095 Future potential revenue milestone payments 6,011 68 718 271 4,954 The table includes all potential payments for achievement of milestones under ongoing research and development arrangements. Revenue-related milestone payments represent the maximum possible amount payable on achievement of specified levels of revenue as set out in individual contract agreements, but exclude variable payments that are based on unit sales (eg royalty-type payments) which are expensed as the associated sale is recognised. The table excludes any payments already capitalised in the Financial Statements for the year ended 31 December 2018. The future payments we disclose represent contracted payments and, as such, are not discounted and are not risk adjusted. As detailed in the Risk section from page 220, the development of any pharmaceutical product candidate is a complex and risky process that may fail at any stage in the development process due to a number of factors (including items such as failure to obtain regulatory approval, unfavourable data from key studies, adverse reactions to the product candidate or indications of other safety concerns). The timing of the payments is based on the Group’s current best estimate of achievement of the relevant milestone. Environmental costs and liabilities The Group’s expenditure on environmental protection, including both capital and revenue items, relates to costs that are necessary for implementing internal systems and programmes, and meeting legal and regulatory requirements for processes and products. This includes investment to conserve natural resources and otherwise minimise the impact of our activities on the environment. They are an integral part of normal ongoing expenditure for carrying out the Group’s research, manufacturing and commercial operations and are not separated from overall operating and development costs. There are no known changes in legal, regulatory or other requirements resulting in material changes to the levels of expenditure for 2016, 2017 or 2018. In addition to expenditure for meeting current and foreseen environmental protection requirements, the Group incurs costs in investigating and cleaning up land and groundwater contamination. In particular, AstraZeneca has environmental liabilities at some currently or formerly owned, leased and third-party sites. In the US, Zeneca Inc., and/or its indemnitees, have been named as potentially responsible parties (PRPs) or defendants at approximately 13 sites where Zeneca Inc. is likely to incur future environmental investigation, remediation, operation and maintenance costs under federal, state, statutory or common law environmental liability allocation schemes (together, US Environmental Consequences). Similarly, Stauffer Management Company LLC (SMC), which was established in 1987 to own and manage certain assets of Stauffer Chemical Company acquired that year, and/or its indemnitees, have been named as PRPs or defendants at a number of sites where SMC is likely to incur US Environmental Consequences. AstraZeneca has also given indemnities to third parties for a number of sites outside the US. These environmental liabilities arise from legacy operations that are not currently part of the Group’s business and, at most of these sites, remediation, where required, is either completed or nearing completion. AstraZeneca has made provisions for the estimated costs of future environmental investigation, remediation, operation and maintenance activity beyond normal ongoing expenditure for maintaining the Group’s R&D and manufacturing capacity and product ranges, where a present obligation exists, it is probable that such costs will be incurred and they can be estimated reliably. With respect to such estimated future costs, there were provisions at 31 December 2018 in the aggregate of $97m (2017: $59m; 2016: $59m), mainly relating to the US. Where we are jointly liable or otherwise have cost-sharing agreements with third parties, we reflect only our share of the obligation. Where the liability is insured in part or in whole by insurance or other arrangements for reimbursement, an asset is recognised to the extent that this recovery is virtually certain. It is possible that AstraZeneca could incur future environmental costs beyond the extent of our current provisions. The extent of such possible additional costs is inherently difficult to estimate due to a number of factors, including: (1) the nature and extent of claims that may be asserted in the future; (2) whether AstraZeneca has or will have any legal obligation with respect to asserted or unasserted claims; (3) the type of remedial action, if any, that may be selected at sites where the remedy is presently not known; (4) the potential for recoveries from or allocation of liability to third parties; and (5) the length of time that the environmental investigation, remediation and liability allocation process can take. As per our accounting policy on page 158, Provisions for these costs are made when there is a present obligation and where it is probable that expenditure on remedial work will be required and a reliable estimate can be made of the cost. Notwithstanding and subject to the foregoing, we estimate the potential additional loss for future environmental investigation, remediation, remedial operation and maintenance activity above and beyond our provisions to be, in aggregate, between $71m and $118m (2017: $87m and $144m; 2016: $85m and $141m), which relates mainly to the US. Legal proceedings AstraZeneca is involved in various legal proceedings considered typical to its business, including actual or threatened litigation and/or actual or potential government investigations relating to employment matters, product liability, commercial disputes, pricing, sales and marketing practices, infringement of IP rights, and the validity of certain patents and competition laws. The more significant matters are discussed below. Most of the claims involve highly complex issues. Often these issues are subject to substantial uncertainties and, therefore, the probability of a loss, if any, being sustained and an estimate of the amount of any loss is difficult to ascertain. Consequently, for a majority of these claims, it is not possible to make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of the proceedings. In these cases, AstraZeneca discloses information with respect to the nature and facts of the cases. With respect to each of the legal proceedings described below, other than those for which provision has been made, we are unable to make estimates of the possible loss or range of possible losses at this stage, other than as set forth in this section. We also do not believe that disclosure of the amount sought by plaintiffs, if known, would be meaningful with respect to those legal proceedings. This is due to a number of factors, including (1) the stage of the proceedings (in many cases trial dates have not been set) and the overall length and extent of pre-trial discovery; (2) the entitlement of the parties to an action to appeal a decision; (3) clarity as to theories of liability, damages and governing law; (4) uncertainties in timing of litigation; and (5) the possible need for further legal proceedings to establish the appropriate amount of damages, if any. While there can be no assurance regarding the outcome of any of the legal proceedings referred to in this Note 29, based on management’s current and considered view of each situation, we do not currently expect them to have a material adverse effect on our financial position. This position could of course change over time, not least because of the factors referred to above. In cases that have been settled or adjudicated, or where quantifiable fines and penalties have been assessed and which are not subject to appeal (or other similar forms of relief), or where a loss is probable and we are able to make a reasonable estimate of the loss, we generally indicate the loss absorbed or make a provision for our best estimate of the expected loss. Where it is considered that the Group is more likely than not to prevail, legal costs involved in defending the claim are charged to profit as they are incurred. Where it is considered that the Group has a valid contract which provides the right to reimbursement (from insurance or otherwise) of legal costs and/or all or part of any loss incurred or for which a provision has been established, and we consider recovery to be virtually certain, the best estimate of the amount expected to be received is recognised as an asset. Assessments as to whether or not to recognise provisions or assets, and of the amounts concerned, usually involve a series of complex judgements about future events and can rely heavily on estimates and assumptions. AstraZeneca believes that the provisions recorded are adequate based on currently available information and that the insurance recoveries recorded will be received. However, given the inherent uncertainties involved in assessing the outcomes of these cases, and in estimating the amount of the potential losses and the associated insurance recoveries, we could in the future incur judgments or insurance settlements that could have a material adverse effect on our results in any particular period. IP claims include challenges to the Group’s patents on various products or processes and assertions of non-infringement of patents. A loss in any of these cases could result in loss of patent protection on the related product. The consequences of any such loss could be a significant decrease in product sales, which could have a material adverse effect on our results. The lawsuits filed by AstraZeneca for patent infringement against companies that have filed ANDAs in the US, seeking to market generic forms of products sold by the Group prior to the expiry of the applicable patents covering these products, typically also involve allegations of non-infringement, invalidity and unenforceability of these patents by the ANDA filers. In the event that the Group is unsuccessful in these actions or the statutory 30-month stay expires before a ruling is obtained, the ANDA filers involved will also have the ability, subject to FDA approval, to introduce generic versions of the product concerned. AstraZeneca has full confidence in, and will vigorously defend and enforce, its IP. Over the course of the past several years, including in 2018, a significant number of commercial litigation claims in which AstraZeneca is involved have been resolved, particularly in the US, thereby reducing potential contingent liability exposure arising from such litigation. Similarly, in part due to patent litigation and settlement developments, greater certainty has been achieved regarding possible generic entry dates with respect to some of our patented products. At the same time, like other companies in the pharmaceutical sector and other industries, AstraZeneca continues to be subject to government investigations around the world. Patent litigation Brilinta (ticagrelor) US patent proceedings In 2015 and subsequently, in response to Paragraph IV notices from multiple ANDA filers, AstraZeneca filed patent infringement lawsuits in the US District Court for the District of Delaware (the District Court) relating to patents listed in the FDA Orange Book with reference to Brilinta . In 2018, AstraZeneca entered into several separate settlements and the District Court entered consent judgments to dismiss several of the litigations. Additional proceedings are ongoing in the District Court. No trial date has been set. Patent proceedings outside the US In Canada, in June 2017, Teva Canada Limited (Teva) challenged the patents listed on the Canadian Patent Register with reference to Brilinta . In September 2017, Apotex Inc. (Apotex) did the same. AstraZeneca discontinued the proceeding against Teva in June 2018 after Teva withdrew its challenge. The hearing in the Apotex matter is scheduled for May 2019. In October 2018, Taro Pharmaceuticals Inc. (Taro) also challenged the patents. AstraZeneca commenced an infringement action against Taro in November 2018. In China, in October 2017, the Chinese Patent Office issued a decision invalidating one of AstraZeneca’s Chinese substance patents relating to Brilinta . AstraZeneca appealed and, in December 2018, the Beijing High People’s Court vacated the invalidation decision and remanded the case back to the Chinese Patent Office for further processing in view of the Court’s decision. The patent, Chinese Patent No. ZL99815926.3, is due to expire in December 2019. Calquence (acalabrutinib) US patent proceedings In November 2017, Pharmacyclics LLC (Pharmacyclics, a company in the AbbVie group) filed a patent infringement lawsuit in the District Court of Delaware (the District Court) against Acerta Pharma and AstraZeneca relating to Calquence . A trial has been scheduled for June 2020. In April 2018, AstraZeneca and Acerta Pharma filed a complaint in the District Court against Pharmacyclics and AbbVie, Inc. alleging that their drug, Imbruvica , infringes a US patent owned by Acerta Pharma. In November 2018, Janssen Biotech, Inc. intervened as a defendant. A trial has been scheduled for January 2021. Crestor (rosuvastatin calcium) Patent proceedings outside the US In Australia, AstraZeneca had taken a provision in respect of damages claims from generic entities and the Commonwealth of Australia in relation to alleged losses suffered in connection with AstraZeneca’s enforcement of Crestor patents which were subsequently found invalid. In February 2018, AstraZeneca settled the claim from Apotex Pty Ltd (and other related Apotex entities) which was the last generic claim outstanding with respect to this matter. In May 2018, AstraZeneca settled the claim from the Commonwealth of Australia and, as a result, all of the claims related to this matter have now been resolved and the matter is now closed. In France, patent infringement proceedings are now resolved against Biogaran S.A.S. in relation to the Crestor substance patent (European Patent No. EP 0,521,471). In Japan, patent invalidity proceedings are now resolved against Nippon Chemiphar Co. Ltd (Nippon) in relation to the Crestor substance patent (Japanese Patent No. JP 2648897). The patent was found valid by the Japanese Patent Office in 2016 and an appeal from Nippon has been dismissed. In the Netherlands, in 2016, Resolution Chemicals Ltd. (Resolution) appealed a lower court’s decision that Resolution’s rosuvastatin zinc product infringed the supplementary protection certificate related to AstraZeneca’s European Patent No. EP 0,521,471 to the Supreme Court of the Netherlands (the Supreme Court). In 2018, the Supreme Court dismissed Resolution’s appeal and upheld Resolution’s product as infringing AstraZeneca’s patent rights in the Netherlands. The matter is now closed. In Spain, in 2017, AstraZeneca initiated patent infringement proceedings against ratiopharm España, S.A. (ratiopharm) in reference to ratiopharm’s rosuvastatin zinc product. In 2018, AstraZeneca settled the proceedings against ratiopharm and the matter is now closed. Daliresp (roflumilast) US patent proceedings In 2015 and subsequently, in response to Paragraph IV notices from multiple ANDA filers, AstraZeneca filed patent infringement lawsuits in the US District Court for the District of New Jersey (the District Court) relating to patents listed in the FDA Orange Book with reference to Daliresp . In 2018, AstraZeneca entered into several separate settlements and the District Court entered consent judgments to dismiss several of the litigations. Additional proceedings are ongoing in the District Court. No trial date has been set. Farxiga (dapagliflozin) US patent proceedings In May 2018, AstraZeneca initiated ANDA litigation against Zydus Pharmaceuticals (USA) Inc. (Zydus) in the US District Court for the District of Delaware. In its complaint, AstraZeneca alleged that Zydus’ generic version of Farxiga , if approved and marketed, would infringe AstraZeneca’s US Patents Nos. 6,414,126 and 6,515,117. In June 2018, Zydus filed its answer and counterclaims for non-infringement of AstraZeneca’s US Patent Nos. 7,851,502; 7,919,598; 8,221,786; 8,361,972; 8,501,698; 8,685,934; and 8,716,251. Trial is scheduled for February 2021. Faslodex (fulvestrant) US patent proceedings AstraZeneca has filed patent infringement lawsuits in the US District Court for the District of New Jersey (the District Court) relating to four patents listed in the FDA Orange Book with reference to Faslodex after receiving a number of Paragraph IV notices relating to multiple ANDAs or NDAs submitted pursuant to 21 U.S.C. § 355(b)(2) seeking FDA approval to market generic versions of Faslodex prior to the expiration of AstraZeneca’s patents. In July 2016, AstraZeneca settled one of these, the lawsuit brought against Sandoz, Inc (Sandoz), and the District Court entered a consent judgment, which included an injunction preventing Sandoz from launching a generic fulvestrant product until March 2019, or earlier in certain circumstances. Between 2016 and 2018, AstraZeneca resolved all of the remaining lawsuits, and the District Court also entered consent judgments ending those lawsuits. In December 2018, AstraZeneca filed a new patent infringement lawsuit in the District Court relating to all four listed-patents after receiving a new Paragraph IV notice relating to an ANDA seeking FDA approval to market generic versions of Faslodex prior to the expiration of AstraZeneca’s patents. Patent proceedings outside the US In France, in June 2018, the Commercial Court of Nanterre denied AstraZeneca’s request for a preliminary injunction against Sandoz SAS (Sandoz) to prevent a potential launch of its generic Faslodex in France. Additionally, in June 2018, Sandoz served AstraZeneca with an invalidation writ against European Patent Nos. EP 2,266,573; EP 1,250,138; and EP 1,272,195. In Italy, in February 2015, Actavis Group Ptc ehf and Actavis Italy S.p.A. filed an action alleging that AstraZeneca’s European Patent No. EP 1,250,138 (the ‘138 patent) was invalid. In July 2018, the Court of Turin determined that the ‘138 patent is invalid. In May 2017, the Opposition Division of the European Patent Office (EPO) revoked European Patent No. EP 2,266,573 (the ‘573 patent). AstraZeneca appealed the decision and, in January 2019, the Board of Appeal of the EPO reversed the earlier decision and upheld the validity of the ‘573 patent. Imfinzi (durvalumab) US patent proceedings In July 2017, Bristol-Myers Squibb, E.R. Squibb & Sons LLC, Ono Pharmaceutical Co, and Tasuku Honjo filed a patent infringement action in the US District Court in Delaware relating to AstraZeneca’s commercialisation of Imfinzi . A trial has been scheduled for October 2020. Losec/Prilosec (omeprazole) Patent proceedings outside the US In Canada, in 2004, AstraZeneca brought proceedings against Apotex Inc. (Apotex) for infringement of several patents related to Losec . In February 2015, the Federal Court of Canada (the Federal Court) found that Apotex had infringed the Losec formulation patent (Canadian Patent No. 1,292,693). In July 2017, after a reference to account for Apotex’s profits earned as a result of the infringement, the Federal Court issued its decision describing how the quantification of monies owed to AstraZeneca should proceed. Apotex appealed. In February 2018, AstraZeneca and Apotex entered into a settlement agreement under which Apotex agreed to pay AstraZeneca CAD 435m ($352m), concluding all Losec patent litigation in Canada. Movantik (naloxegol) US patent proceedings In December 2018, AstraZeneca initiated ANDA litigation against Apotex Inc. and Apotex Corp., and against MSN Laboratories, in the US District Court for the District of Delaware. In each of its complaints, AstraZeneca alleges that the generic companies’ versions of Movantik , if approved and marketed, would infringe US Patent No. 9,012,469. Nexium (esomeprazole magnesium) Patent proceedings outside the US In Canada, in July 2014, the Federal Court of Canada found the Nexium substance patent (Canadian Patent No. 2,139,653 (the ‘653 patent)) invalid and not infringed by Apotex Inc. (Apotex). In July 2015, AstraZeneca’s appeal was dismissed. AstraZeneca was granted leave to appeal to the Supreme Court of Canada (the Supreme Court). In June 2017, the Supreme Court granted AstraZeneca’s appeal and found the ‘653 patent valid. Apotex appealed the Supreme Court’s decision. AstraZeneca commenced proceedings to collect damages. In June 2018, the parties settled all outstanding proceedings. The matter is now closed. Onglyza (saxagliptin) and Kombiglyze (saxagliptin and metformin) US patent proceedings In February 2017, the US District Court for the District of Delaware (the District Court) issued a decision upholding the validity of US Patent No. RE44,186 (the ‘186 patent), listed in the FDA Orange Book with reference to Onglyza and/or Kombiglyze XR. In August 2017, the US Patent and Trademark Office (USPTO) issued a decision in an inter partes review upholding the challenged claims of the ‘186 patent. Mylan Pharmaceuticals Inc. (Mylan) appealed the District Court’s decision and the USPTO’s decision to the US Court of Appeals for the Federal Circuit. In May 2018, AstraZeneca and Mylan settled these two appeals. The matter is now closed. Pulmicort Respules (budesonide inhalation suspension) US patent proceedings In February 2015, the US District Court for the District of New Jersey (the District Court) determined that the asserted claims of US Patent No. 7,524,834, which covered Pulmicort Respules , were invalid following challenges brought by Apotex, Inc. and Apotex Corp., Breath Limited, Sandoz, Inc. and Watson Laboratories, Inc. (together, the Generic Challengers). In May 2015, the US Court of Appeals for the Federal Circuit affirmed the District Court’s decision. Since 2009, various injunctions were issued in this matter. Damages claims based on those injunctions were filed by the Generic Challengers. In June 2018, AstraZeneca and the Generic Challengers settled these claims. The matter is now closed. Roxadustat Patent proceedings outside the US In Canada, in May 2018, Akebia Therapeutics, Inc. (Akebia) filed an impeachment action in the Federal Court alleging invalidity of several of FibroGen, Inc.’s (FibroGen) method of use patents (Canadian Patent Nos. 2467689; 2468083; and 2526496) related to HIF prolyl hydroxylase inhibitors. AstraZeneca is the exclusive licensee of FibroGen in Canada. AstraZeneca and FibroGen are defending the action. Symbicort (budesonide/formoterol fumarate dihydrate) US patent proceedings In October 2018, AstraZeneca initiated ANDA litigation against Mylan Pharmaceuticals Inc. (MPI), Mylan Laboratories Limited, Mylan Inc., and Mylan N.V. (collectively, Mylan) and, separately, ANDA litigation against Teva Pharmaceuticals USA, Inc. (Teva) in the US District Court for the District of Delaware. In its complaints, AstraZeneca alleges that Mylan’s and Teva’s generic versions of Symbicort , if approved and marketed, would infringe AstraZeneca’s US Patents Nos. 7,759,328; 8,143,239; 8,575,137; and 7,967,011. AstraZeneca also filed a similar action against Mylan in the US District Court for the Northern District of West Virginia. In November 2018, AstraZeneca filed an amended complaint in the Teva action to add Catalent Pharma Solutions LLC (Catalent) as a party. In December 2018, Teva and Catalent responded to the amended complaint and alleged that their proposed generic product does not infringe the asserted patents and/or that the asserted patents are invalid and/or unenforceable. Teva also asserted counterclaims in which it alleged that the proposed generic product does not infringe five additional patents that AstraZeneca did not assert in its complaint, namely US Patents Nos. 7,587,988; 8,528,545; 8,387,615; 8,616,196; and 8,875,699. In December 2018, AstraZeneca filed an amended complaint in the Mylan Delaware action to add 3M Company as a party. In January 2019, in the Mylan Delaware action, Mylan Laboratories Limited, Mylan Inc., and Mylan N.V. filed a motion to dismiss for failure to state a claim and MPI filed a motion to dismiss for improper venue. In January 2019, MPI responded to the West Virginia complaint and alleged that its proposed generic product does not infringe the asserted patents and/or that the asserted patents are invalid and/or unenforceable. Mylan also asserted counterclaims to the asserted patents. In January 2019, in the West Virginia action, Mylan Laboratories Limited, Mylan Inc., and Mylan N.V. filed a motion to dismiss for failure to state a claim. Product liability litigation Byetta/Bydureon (exenatide) In the US, Amylin Pharmaceuticals, LLC, a wholly-owned subsidiary of AstraZeneca, and/or AstraZeneca are among multiple defendants in various lawsuits filed in federal and state courts involving claims of physical injury from treatment with Byetta and/or Bydureon . The lawsuits allege several types of injuries including pancreatitis, pancreatic cancer, thyroid cancer, and kidney cancer. A multidistrict litigation was established in the US District Court for the Southern District of California (the District Court) in regard to the alleged pancreatic cancer cases in federal courts. Further, a co-ordinated proceeding has been established in Los Angeles, California in regard to the various lawsuits in California state courts. In November 2015, the District Court granted the defendants’ motion for summary judgment and dismissed all claims alleging pancreatic cancer that accrued prior to 11 September 2015. In November 2017, the US Court of Appeals for the Ninth Circuit vacated the District Court’s order and remanded for further discovery. In November 2018, the Court of Appeal for the State of California annulled the judgment from the California state co-ordinated proceeding and remanded for further discovery. Farxiga (dapagliflozin) and Xigduo (dapagliflozin/metformin HCl) In the US, AstraZeneca has been named as a defendant in lawsuits involving plaintiffs claiming physical injury, including diabetic ketoacidosis and kidney injury/failure, from treatment with Farxiga and/or Xigduo XR . In April 2017, the Judicial Panel on Multidistrict Litigation ordered transfer of any currently pending cases as well as any similar, subsequently filed cases to a co-ordinated and consolidated pre-trial multidistrict litigation proceeding in the US District Court for the Southern District of New York. Nexium (esomeprazole magnesium) and Losec/Prilosec (omeprazole) In the US, AstraZeneca is defending various lawsuits brought in federal and state courts involving multiple plaintiffs claiming that they have been diagnosed with various injuries following treatment with proton pump inhibitors, including Nexium and Prilosec . In May 2017, counsel for a group of such plaintiffs claiming that they have been diagnosed with kidney injuries filed a motion with the Judicial Panel on Multidistrict Litigation (JPML) seeking the transfer of any currently pending federal court cases as well as any similar, subsequently filed cases to a co-ordinated and consolidated pre-trial multidistrict litigation (MDL) proceeding. In August 2017, the JPML granted the motion and consolidated the pending federal court cases in an MDL proceeding in federal court in New Jersey for pre-trial purposes. In Canada, in July and August 2017, AstraZeneca was served with three putative class action lawsuits. Two of the lawsuits seek authorisation to represent individual residents in Canada who allegedly suffered kidney injuries from the use of proton pump inhibitors, including Nexium and Losec , and the third, pending in Quebec, seeks authorisation to represent such individual residents in Quebec. Onglyza (saxagliptin) and Kombiglyze (saxagliptin and metformin) In the US, AstraZeneca is defending various lawsuits alleging heart failure, cardiac injuries, and/or death from treatment with Onglyza or Kombiglyze . In February 2018, the Judicial Panel on Multidistrict Litigation ordered the transfer of various pending federal actions to the Eastern District of Kentucky (the District) for consolidated pre-trial proceedings with the federal actions pending in the District. The previously disclosed California state court co-ordinated proceeding remains pending in California. Seroquel (quetiapine fumarate) In the US, in June 2018, AstraZeneca was named in a lawsuit filed in Illinois involving one plaintiff alleging Brugada Syndrome from treatment with Seroquel . In September 2018, the US District Court for the Southern District of Illinois entered judgment in favour of AstraZeneca and terminated AstraZeneca as a party to the action. In the US, in November 2017, AstraZeneca was named as one of several defendants in a lawsuit filed in Missouri involving one plaintiff alleging, among other things, wrongful death from treatment with Seroquel . This matter was resolved and is now concluded. Commercial litigation Amplimmune In the US, in June 2017, AstraZeneca was served with a lawsuit filed by the stockholders’ agents for Amplimmune, Inc. (Amplimmune) in Delaware State Court that alleged, among other things, breaches of contractual obligations relating to a 2013 merger agreement between AstraZeneca and Amplimmune. Array BioPharma In the US, in December 2017, AstraZeneca was served with a complaint filed in New York State court by Array BioPharma, Inc. (Array) that alleged, among other things, breaches of contractual obligations relating to a 2003 collaboration agreement between AstraZeneca and Array. Nexium settlement anti-trust litigation In the US, AstraZeneca was a defendant in a multidistrict litigation class action and individual lawsuit alleging that AstraZeneca’s settlements of certain patent litigation in the US relating to Nexium violated US anti-trust law and various state laws. A trial in the US District Court for the District of Massachusetts returned a verdict in favour of AstraZeneca, and the federal appeals for this verdict were subsequently concluded. Two lawsuits with similar allegations were filed in Pennsylvania state court by various indirect purchasers of Nexium . These cases had been stayed pending the outcome of the federal court litigation, but AstraZeneca was informed in June 2018 that both matters were administratively closed by the state court. This matter is accordingly concluded. Ocimum lawsuit In the US, in December 2015, AstraZeneca was served with a complaint filed by Ocimum Biosciences, Ltd. (Ocimum) in the Superior Court for the State of Delaware that alleges, among other things, breaches of contractual obligations and misappropriation of trade secrets, relating to a now terminated 2001 licensing agreement between AstraZeneca and Gene Logic, Inc. (Gene Logic), the rights to which Ocimum purports to have acquired from Gene Logic. Toprol-XL (metoprolol succinate) Aralez litigation In the US, in October 2016, AstraZeneca completed its sale of certain assets related to the US rights to Toprol-XL and AstraZeneca’s authorised generic metoprolol succinate product to A

Operating leases

Operating leases	12 Months Ended
	Dec. 31, 2018
Operating leases
Operating leases	30 Operating leases Total rentals under operating leases charged to profit were as follows: $m $m $m Operating leases 188 175 174 The Group has revised the presentation of operating leases from 2017 to include operating leases that have been identified during the transition to IFRS 16 as having been previously omitted from this disclosure. This resulted in an increase in 2017 from $137m to $175m. The future minimum lease payments under operating leases that have initial or remaining terms in excess of one year at 31 December 2018 were as follows: $m $m $m Obligations under leases comprise: Not later than one year 188 151 98 Later than one year and not later than five years 360 345 247 Later than five years 136 118 96 Total future minimum lease payments 684 614 441 The Group has revised the presentation of operating leases from 2017 to include operating leases that have been identified during the transition to IFRS 16 as having previously been omitted from this disclosure. This resulted in an increase in 2017 from $523m to $614m.

Statutory and other information

Statutory and other information	12 Months Ended
	Dec. 31, 2018
Statutory and other information
Statutory and other information	31 Statutory and other information $m $m $m Fees payable to PricewaterhouseCoopers LLP and its associates: Group audit fee 3.8 3.0 – Fees payable to PricewaterhouseCoopers LLP and its associates for other services: The audit of subsidiaries pursuant to legislation 9.4 5.7 – Attestation under s404 of Sarbanes-Oxley Act 2002 2.0 2.0 – Audit-related assurance services 0.8 0.4 – Tax compliance services 0.1 – – Other assurance services 0.9 – – Fees payable to PricewaterhouseCoopers Associates in respect of the Group’s pension schemes: The audit of subsidiaries’ pension schemes 0.4 – – 17.4 11.1 – $3.2m of fees payable in 2018 are in respect of the 2017 Group audit and audit of subsidiaries. Related party transactions The Group had no material related party transactions which might reasonably be expected to influence decisions made by the users of these Financial Statements. Key management personnel compensation Key management personnel are defined for the purpose of disclosure under IAS 24 ‘Related Party Disclosures’ as the members of the Board and the members of the SET. $’000 $’000 $’000 Short-term employee benefits 32,523 28,274 23,725 Post-employment benefits 2,387 2,469 2,407 Share-based payments 23,605 16,452 20,377 58,515 47,195 46,509 Total remuneration is included within employee costs (see Note 28).

Subsequent events

Subsequent events	12 Months Ended
	Dec. 31, 2018
Subsequent events
Subsequent events	32 Subsequent events In December 2018, an internal decision was taken to close two biologics manufacturing sites in Colorado, USA. The Group assessed the recoverable value of the site assets including Property, plant and equipment and inventory, and have recorded an impairment of $252m within land and buildings and a provision against inventories of $75m at 31 December 2018. The announcement to those impacted of these closures was made subsequent to year end. On 10 January 2019, the Company entered into a floating rate $500m committed bank loan agreement, which was drawn in full on 4 February 2019. The loan is repayable in December 2019 although can be partially or fully repaid in advance but, in that event, is not available to be redrawn. On 23 January 2019, AstraZeneca completed the sale of its US rights to Synagis , and of a right to participate in the payments from the US profits and losses for MEDI8897, to Swedish Orphan Biovitrum AB (Sobi). Under the terms of the agreement, AstraZeneca has received total upfront consideration including cash of $966m and ordinary shares in Sobi with an initial fair value of c.$600m, equating to an ownership interest of 8%. The majority of consideration is attributable to the sale of US rights to Synagis . Consideration attributable to the sale of US rights to Synagis will be treated as Other operating income and expense in the Group in 2019, net of the derecognition of $893m of the related intangible asset, which has been transferred to assets held for sale at 31 December 2018. The right to participate in payments from the US profits and losses for MEDI8897 will be treated as a financial liability at amortised cost, recognised initially at fair value. The valuation of this financial liability was not finalised at the date of signing of these Financial Statements. Any difference between the amount of consideration received and the fair value recognised will be recognised within Other operating income and expense in 2019.

Group Accounting Policies (Poli

Group Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Group Accounting Policies
Basis of accounting and preparation of financial information	Basis of accounting and preparation of financial information The Consolidated Financial Statements have been prepared under the historical cost convention, modified to include revaluation to fair value of certain financial instruments as described below, in accordance with the Companies Act 2006 and International Financial Reporting Standards (IFRSs) as adopted by the EU (adopted IFRSs) in response to the IAS regulation (EC 1606/2002). The Consolidated Financial Statements also comply fully with IFRSs as issued by the International Accounting Standards Board (IASB). The adoption of IFRS 9 ‘Financial Instruments’ from 1 January 2018 has resulted in changes to the Group’s accounting policies. IFRS 9 replaced the provisions of IAS 39 that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting. In accordance with the transitional provisions in IFRS 9, comparative figures have not been restated and the Group has identified that there was no material impact on the Group’s Retained earnings as at 1 January 2018. (i) Classification and measurement On the date of initial application, 1 January 2018, the Group’s management has assessed which business models apply to the financial assets and financial liabilities held by the Group and has classified its financial instruments into the appropriate IFRS 9 categories. The main effects resulting from this reclassification are as follows: Measurement Carrying category amounts Original New Original New Difference (IAS 39) (IFRS 9) $m $m $m Non-current financial assets Other investments Equity securities 1 Available for sale FVOCI 933 933 – Derivative financial instruments Held for trading FVPL 504 504 – Other receivables Amortised cost Amortised cost 489 489 – Current financial assets Trade and other receivables Trade receivables - not subject to factoring Amortised cost Amortised cost 2,475 2,475 – Trade receivables - subject to factoring 2 Amortised cost FVOCI 327 327 – Other receivables Amortised cost Amortised cost 949 949 – Other investments Equity securities and bonds 3 Available for sale FVPL 1,150 1,150 – Fixed Deposits Amortised cost Amortised cost 80 80 – Derivative financial instruments Held for trading FVPL 28 28 – Cash and cash equivalents Cash at bank and in hand Amortised cost Amortised cost 784 784 – Short-term deposits excluding money market funds Amortised cost Amortised cost 1,391 1,391 – Money market funds 4 Amortised cost FVPL 1,149 1,149 – Current financial liabilities Derivative financial instruments Held for trading FVPL (24) (24) – Non-current financial liabilities Derivative financial instruments Held for trading FVPL (4) (4) – 1 Equity securities investments reclassified from available to sale to assets at fair value through Other comprehensive income. These are strategic investments held directly in other pharmaceutical and biotech companies. 2 Trade receivables that are subject to debt factoring arrangements were held at amortised cost under IAS 39. Under IFRS 9 these receivables are held under the ‘hold to collect and sell’ business model at fair value through other comprehensive income, however their carrying value and their fair value are considered to be materially the same. 3 Equity security investments reclassified from available to sale to assets at fair value through profit or loss. These are primarily short-term assets invested as part of our cash management strategy to maximise gains on our liquid resources. 4 Money market funds – the Group is invested in constant net asset value funds where liquidity is offered with same day access for subscription and redemption. Because they fail the ‘solely payments of principal and interest’ test criteria under IFRS 9 they are measured at fair value through profit or loss, although the fair value is materially the same as amortised cost. (ii) Derivatives and hedging activities The Group’s risk management strategies and hedge documentation are aligned with the requirements of IFRS 9. All hedge relationships designated under IAS 39 are treated as continuing hedges under IFRS 9 and there was no impact from the adoption of IFRS 9 on prior periods. (iii) Impairment of financial assets The Group has financial assets that are subject to the new IFRS 9 expected credit loss model and the Group was required to revise its impairment methodology under IFRS 9 for these assets. The identified impairment change at 1 January 2018 was immaterial and the impact of the change in impairment methodology on the Group’s Retained earnings was assessed as nil. From 1 January 2018, the Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost and fair value through Other comprehensive income. In the prior year, the impairment of trade receivables was assessed based on the incurred loss model. The Group established an allowance for impairment that represented its estimate of incurred losses where it was deemed that a receivable may not have been recoverable. When the debt was deemed irrecoverable the allowance account was written off against the underlying receivable. The Group has adopted IFRS 15 ‘Revenue from Contracts with Customers’ which replaces existing accounting standards. It provides enhanced detail on the principle of recognising revenue to reflect the transfer of goods and services to customers at a value which the Group expects to be entitled to receive. The standard also updates revenue disclosure requirements. The standard has not had a material impact on the revenue streams from the supply of goods and associated rebates and returns provisions. The timing of the recognition of product sales and the basis for the estimates of sales deductions under IAS 18 are consistent with those adopted under IFRS 15. The previous accounting for externalisation transactions under IAS 18 includes an analysis of the performance obligations under the arrangement and upfront revenue recognition requires the transfer of substantive rights, for example a licence to use the intellectual property and an appropriate allocation of revenue to the remaining performance obligations. While the basis for such allocation is different in IFRS 15, the impact of the adoption of the new standard on the historical allocations is not material. The licences we grant are typically rights to use the intellectual property, which does not change during the period of the licence. Those licences are generally unique and therefore the basis of allocation of revenue to performance obligations makes use of the residual approach as permitted by IFRS 15. The related sales milestones and royalties to these licences qualify for the royalty exemption available under IFRS 15 and will continue to be recognised as the underlying sales are made. Furthermore, there is no material change to the assessment of whether the performance obligations are distinct from applying the new standard. The Group has retrospectively applied the standard from 1 January 2018 recognising the cumulative effect of initially applying the standard as an increase to contract liabilities, which are a component of Trade and other payables of $133m to defer Externalisation Revenue previously recognised, an increase to Prepayments and accrued income, which are a component of Trade and other receivables of $20m to recognise Externalisation Revenue previously not recognised, a total related tax adjustment of $22m and a corresponding net adjustment to the opening balance of Retained earnings of $91m. There is no restatement to prior periods as permitted in the transition rules for IFRS 15. The impact of initial application in the year to 31 December 2018 as compared with the year to 31 December 2017 is the recognition of additional Externalisation Revenue of $27m in the year to 31 December 2018. In addition to the above standard amendments and new adoptions, effective from 1 January 2018, the Group has changed its presentation of Trade and other payables resulting in the following: (1) Liabilities for product returns, discounts and other product sales adjustments are shown together with liabilities for rebates and chargebacks; (2) Clinical trial accruals and the Acerta Pharma put option liability are shown separately; (3) Other trade-related accruals are shown within Other accruals. The revised presentation has no impact on the total of Trade and other payables, the Group’s Statement of Financial Position, the Statement of Cash Flows or the Statement of Comprehensive Income. After applying the requirements of IFRS 15 for revenue contract related liabilities, and following an internal review of the presentation of liabilities, the Group considers that further disaggregation of the balances in Trade and other Payables would improve the clarity and understanding of those balances. The Group has revised the comparative presentation of Trade and other payables in Note 19 for the changes related to: (1) liabilities for product returns, discounts and other product sales adjustments; and (2) clinical trial accruals and the Acerta Pharma put option. The Group has assessed the change related to (3) other trade-related accruals as not material for revision under IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ and therefore the comparative presentation of Trade and other payables in Note 19 has not been revised for this presentational change. During the year, the Group has adopted the amendments to IFRS 2 ‘Classification and Measurement of Share-based Payment Transactions’ and the interpretation within IFRIC 22 ‘Foreign Currency Transactions and Advance Consideration’. The adoptions have not had a significant impact on the Group’s Statement of Comprehensive Income, Statement of Financial Position and Statement of Cash Flows. The Consolidated Financial Statements are presented in US dollars, which is the Company’s functional currency. In preparing their individual financial statements, the accounting policies of some overseas subsidiaries do not conform with IASB issued IFRSs. Therefore, where appropriate, adjustments are made in order to present the Consolidated Financial Statements on a consistent basis.
Basis for preparation of Financial Statements on a going concern basis	Basis for preparation of Financial Statements on a going concern basis The Group has considerable financial resources available. As at 31 December 2018, the Group has $7.1bn in financial resources (cash balances of $4.8bn and undrawn committed bank facilities of $4.1bn, of which $3.4bn is available until April 2022, $0.5bn is available until December 2020 (extendable to December 2021) and $0.2bn is available until December 2019 (extendable to December 2020), with only $1.8bn of debt due within one year). The Group’s revenues are largely derived from sales of products which are covered by patents which provide a relatively high level of resilience and predictability to cash inflows, although our revenue is expected to continue to be significantly impacted by the expiry of patents over the medium term. In addition, government price interventions in response to budgetary constraints are expected to continue to adversely affect revenues in many of our mature markets. However, we anticipate new revenue streams from both recently launched medicines and products in development, and the Group has a wide diversity of customers and suppliers across different geographic areas. Consequently, the Directors believe that, overall, the Group is well placed to manage its business risks successfully. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Financial Statements.
Estimates and judgements	Estimates and judgements The preparation of the Financial Statements in conformity with generally accepted accounting principles requires management to make estimates and judgements that affect the reported amounts of assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Judgements include matters such as the determination of operating segments while estimates focus on areas such as carrying values, estimated useful lives of Intangible assets, potential obligations and Contingent consideration. The accounting policy descriptions set out the areas where judgements and estimates need exercising, the most significant of which are revenue recognition, research and development (including impairment reviews of associated Intangible assets), business combinations and Goodwill (and Contingent consideration arising from business combinations), litigation and environmental liabilities, employee benefits and taxation. Financial risk management policies are detailed in Note 27.
Revenue	Revenue Revenues comprise Product Sales and Externalisation Revenue. Product Sales are revenues arising from contracts with customers. Externalisation Revenue arises from other contracts. However, the recognition and measurement principles of IFRS 15 are applied as set out below. Revenues exclude inter-company revenues and value-added taxes. Product Sales Product Sales represent net invoice value less estimated rebates, returns and chargebacks, which are considered to be key estimates. Sales are recognised when the control of the goods has been transferred to a third party. This is usually when title passes to the customer, either on shipment or on receipt of goods by the customer, depending on local trading terms. In markets where returns are significant, estimates of returns are accounted for at the point revenue is recognised. For the markets where returns are significant, we estimate the quantity and value of goods which may ultimately be returned at the point of sale. Our returns accruals are based on actual experience over the preceding 12 months for established products together with market-related information such as estimated stock levels at wholesalers and competitor activity which we receive via third party information services. For newly launched products, we use rates based on our experience with similar products or a predetermined percentage. When a product faces generic competition, particular attention is given to the possible levels of returns and, in cases where the circumstances are such that the level of returns are considered highly probable to reverse, revenues are only recognised when the right of return expires, which is generally on ultimate prescription of the product to patients. Under certain collaboration agreements which include a profit sharing mechanism, our recognition of Product Sales depends on which party acts as principal in sales to the end customer. In the cases where AstraZeneca acts as principal, we record 100% of sales to the end customer. Externalisation Revenue Externalisation Revenue includes income from collaborative arrangements on the Group’s products where the Group has sold certain rights associated with those products, but retains a significant ongoing economic interest, through for example the ongoing supply of finished goods or participation in profit share arrangements. These arrangements may include development arrangements, commercialisation arrangements and collaborations. Income may take the form of upfront fees, milestones, profit sharing and royalties. The licences we grant are typically rights to use intellectual property which do not change during the period of the licence. Those licences are generally unique and therefore, the basis of allocation of the consideration makes use of the residual approach as permitted by IFRS 15. These arrangements typically involve the receipt of an upfront payment, which the contract attributes to the sale of the Intangible assets, and ongoing receipts, which the contract attributes to the sale of the product we manufacture. In cases where the transaction has two or more components, we account for the delivered item (for example, the transfer of title to the intangible asset) as a separate unit of accounting and record revenue on delivery of that component, provided that we can make a reasonable estimate of the fair value of the undelivered component. Where non-contingent amounts are payable over one year from the effective date of a contract, an assessment is made as to whether a significant financing component exists, and if so, the fair value of this component is deferred and recognised over the period to the expected date of receipt. Where control of a right to use intangible asset passes at the outset of an arrangement, revenue is recognised at the point in time control is transferred. Where the substance of an arrangement is that of a right to access rights attributable to an Intangible asset, revenue is recognised over time, normally on a straight-line basis over the life of the contract. Where the fair market value of the undelivered component (for example, a manufacturing agreement) exceeds the contracted price for that component, we defer an appropriate element of the upfront consideration and amortise this over the performance period. However, where the fair market value of the undelivered component is equal to or lower than the contracted price for that component, we treat the whole of the upfront amount as being attributable to the delivered Intangible assets and recognise that part of the revenue upon delivery. No element of the contracted revenue related to the undelivered component is ordinarily allocated to the sale of the Intangible asset. This is because the contracted revenue relating to the undelivered component is contingent on future events (such as sales) and cannot be recognised until either receipt of the amount is highly probable or where the consideration is received for a licence of intellectual property, on the occurrence of the related sales. Where the Group provides ongoing services, revenue in respect of this element is recognised over the duration of those services. Where the arrangement meets the definition of a licence agreement, sales milestones and sales royalties are recognised when achieved by applying the royalty exemption under IFRS 15. All other milestones and sales royalties are recognised when considered highly probable. The determination of highly probable represents a key judgement. Where Externalisation Revenue is recorded and there is a related Intangible asset, an appropriate amount of that intangible asset is charged to Cost of sales based on an allocation of cost or value to the rights that have been sold.
Cost of sales	Cost of sales Cost of sales are recognised as the associated revenue is recognised. Cost of sales include manufacturing costs, royalties payable on revenues recognised, movements in provisions for inventories, inventory write offs and impairment charges in relation to manufacturing assets. Cost of sales also includes partner profit shares arising from collaborations, and foreign exchange gains and losses arising from business trading activities.
Research and development	Research and development Research expenditure is recognised in profit in the year in which it is incurred. Internal development expenditure is capitalised only if it meets the recognition criteria of IAS 38 ‘Intangible Assets’. This is considered a key judgement. Where regulatory and other uncertainties are such that the criteria are not met, the expenditure is recognised in profit and this is almost invariably the case prior to approval of the drug by the relevant regulatory authority. Where, however, recognition criteria are met, Intangible assets are capitalised and amortised on a straight-line basis over their useful economic lives from product launch. At 31 December 2018, no amounts have met recognition criteria. Payments to in-license products and compounds from third parties for new research and development projects (in process research and development) generally take the form of upfront payments, milestones and royalty payments. Where payments made to third parties represent future research and development activities, an evaluation is made as to the nature of the payments. Such payments are expensed if they represent compensation for sub-contracted research and development services not resulting in a transfer of intellectual property. By contrast, payments are capitalised if they represent compensation for the transfer of identifiable intellectual property developed at the risk of the third party. Development milestone payments relating to identifiable intellectual property are capitalised as the milestone is triggered. Any upfront or milestone payments for research activities where there is no associated identifiable intellectual property are expensed. Assets capitalised are amortised, on a straight-line basis, over their useful economic lives from product launch. The determination of the useful economic life is considered a key judgement. Intangible assets relating to products in development are subject to impairment testing annually. All Intangible assets are tested for impairment when there are indications that the carrying value may not be recoverable. The determination of the recoverable amounts include key estimates which are highly sensitive to, and depend upon, key assumptions as detailed in Note 9. Any impairment losses are recognised immediately in profit. Intangible assets relating to products which fail during development (or for which development ceases for other reasons) are also tested for impairment and are written down to their recoverable amount (which is usually nil). If, subsequent to an impairment loss being recognised, development restarts or other facts and circumstances change indicating that the impairment is less or no longer exists, the value of the asset is re-estimated and its carrying value is increased to the recoverable amount, but not exceeding the original value, by recognising an impairment reversal in profit.
Business combinations and goodwill	Business combinations and goodwill On the acquisition of a business, fair values are attributed to the identifiable assets and liabilities. Attributing fair values is a key judgement. Contingent liabilities are also recorded at fair value unless the fair value cannot be measured reliably, in which case the value is subsumed into goodwill. Where the Group fully acquires, through a business combination, assets that were previously held in joint operations, the Group has elected not to uplift the book value of the existing interest in the asset held in the joint operation to fair value at the date full control is taken. Where fair values of acquired contingent liabilities cannot be measured reliably, the assumed contingent liability is not recognised but is disclosed in the same manner as other contingent liabilities. Where not all of the equity of a subsidiary is acquired, the non-controlling interest is recognised either at fair value or at the non-controlling interest’s proportionate share of the net assets of the subsidiary, on a case-by-case basis. Put options over non-controlling interests are recognised as a financial liability, with a corresponding entry in either retained earnings or against non-controlling interest reserves on a case-by-case basis. The timing and amount of future contingent elements of consideration is considered a key estimate. Contingent consideration, which may include development and launch milestones, revenue threshold milestones and revenue-based royalties, is fair valued at the date of acquisition using decision-tree analysis with key inputs including probability of success, consideration of potential delays and revenue projections based on the Group’s internal forecasts. Unsettled amounts of consideration are held at fair value within payables with changes in fair value recognised immediately in profit. Goodwill is the difference between the fair value of the consideration and the fair value of net assets acquired. Goodwill arising on acquisitions is capitalised and subject to an impairment review, both annually and when there is an indication that the carrying value may not be recoverable. The Group’s policy up to and including 1997 was to eliminate Goodwill arising upon acquisitions against reserves. Under IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’ and IFRS 3 ‘Business Combinations’, such Goodwill will remain eliminated against reserves.
Joint arrangements and associates	Joint arrangements and associates The Group has arrangements over which it has joint control and which qualify as joint operations or joint ventures under IFRS 11 ‘Joint Arrangements’. For joint operations, the Group recognises its share of revenue that it earns from the joint operations and its share of expenses incurred. The Group also recognises the assets associated with the joint operations that it controls and the liabilities it incurs under the joint arrangement. For joint ventures and associates, the Group recognises its interest in the joint venture or associate as an investment and uses the equity method of accounting.
Employee benefits	Employee benefits The Group accounts for pensions and other employee benefits (principally healthcare) under IAS 19 ‘Employee Benefits’. In respect of defined benefit plans, obligations are measured at discounted present value while plan assets are measured at fair value. Given the extent of the assumptions used to determine these values, these are considered to be key estimates. The operating and financing costs of such plans are recognised separately in profit, current service costs are spread systematically over the lives of employees and financing costs are recognised in full in the periods in which they arise. Remeasurements of the net defined benefit pension liability, including actuarial gains and losses, are recognised immediately in Other comprehensive income. Where the calculation results in a surplus to the Group, the recognised asset is limited to the present value of any available future refunds from the plan or reductions in future contributions to the plan. Payments to defined contribution plans are recognised in profit as they fall due.
Taxation	Taxation The current tax payable is based on taxable profit for the year. Taxable profit differs from reported profit because taxable profit excludes items that are either never taxable or tax deductible or items that are taxable or tax deductible in a different period. The Group’s current tax assets and liabilities are calculated using tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the asset can be utilised. This requires judgements to be made in respect of the availability of future taxable income. No deferred tax asset or liability is recognised in respect of temporary differences associated with investments in subsidiaries and branches where the Group is able to control the timing of reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. The Group’s Deferred tax assets and liabilities are calculated using tax rates that are expected to apply in the period when the liability is settled or the asset realised based on tax rates that have been enacted or substantively enacted by the reporting date. Accruals for tax contingencies require management to make judgements of potential exposures in relation to tax audit issues. Tax benefits are not recognised unless the tax positions will probably be sustained based upon management’s interpretation of applicable laws and regulations and the likelihood of settlement. Once considered probable of not being sustained, management reviews each material tax benefit to assess whether a provision should be taken against full recognition of the benefit on the basis of potential settlement through negotiation and/or litigation. Accruals for tax contingencies are measured using the single best estimate of likely outcome approach. Further details of the estimates and assumptions made in determining our recorded liability for transfer pricing contingencies and other tax contingencies are included in Note 29 to the Financial Statements.
Share-based payments	Share-based payments All plans are assessed and have been classified as equity settled. The grant date fair value of employee share plan awards is calculated using a Monte Carlo model. In accordance with IFRS 2 ‘Share-based Payment’, the resulting cost is recognised in profit over the vesting period of the awards, being the period in which the services are received. The value of the charge is adjusted to reflect expected and actual levels of awards vesting, except where the failure to vest is as a result of not meeting a market condition. Cancellations of equity instruments are treated as an acceleration of the vesting period and any outstanding charge is recognised in profit immediately.
Property, plant and equipment	Property, plant and equipment The Group’s policy is to write off the difference between the cost of each item of Property, plant and equipment and its residual value over its estimated useful life on a straight-line basis. Assets under construction are not depreciated. Reviews are made annually of the estimated remaining lives and residual values of individual productive assets, taking account of commercial and technological obsolescence as well as normal wear and tear. It is impractical to calculate average asset lives exactly. However, the total lives range from approximately 10 to 50 years for buildings, and three to 15 years for plant and equipment. All items of Property, plant and equipment are tested for impairment when there are indications that the carrying value may not be recoverable. Any impairment losses are recognised immediately in profit.
Borrowing costs	Borrowing costs The Group has no borrowing costs with respect to the acquisition or construction of qualifying assets. All other borrowing costs are recognised in profit as incurred and in accordance with the effective interest rate method.
Leases	Leases Leases are classified as finance leases if they transfer substantially all the risks and rewards incidental to ownership, otherwise they are classified as operating leases. Assets and liabilities arising on finance leases are initially recognised at fair value or, if lower, the present value of the minimum lease payments. The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease. Finance charges under finance leases are allocated to each reporting period so as to produce a constant periodic rate of interest on the remaining balance of the finance liability. Rentals under operating leases are charged to profit on a straight-line basis.
Subsidiaries	Subsidiaries A subsidiary is an entity controlled, directly or indirectly, by AstraZeneca PLC. Control is regarded as the exposure or rights to the variable returns of the entity when combined with the power to affect those returns. The financial results of subsidiaries are consolidated from the date control is obtained until the date that control ceases.
Inventories	Inventories Inventories are stated at the lower of cost and net realisable value. The first in, first out or an average method of valuation is used. For finished goods and work in progress, cost includes directly attributable costs and certain overhead expenses (including depreciation). Selling expenses and certain other overhead expenses (principally central administration costs) are excluded. Net realisable value is determined as estimated selling price less all estimated costs of completion and costs to be incurred in selling and distribution. Write-downs of inventory occur in the general course of business and are recognised in cost of sales for launched products and research and development costs for products in development.
Assets held for sale	Assets held for sale Non-current assets are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. A sale is usually considered highly probable only when an appropriate level of management has committed to the sale. Assets held for sale are stated at the lower of carrying amount and fair value less costs to sell. Where there is a partial transfer of a non-current asset to held for sale, an allocation of value is made between the current and non-current portions of the asset based on the relative value of the two portions, unless there is a methodology that better reflects the asset to be disposed of. Assets held for sale are not depreciated or amortised
Trade and other receivables	Trade and other receivables Financial assets included in Trade and other receivables are recognised initially at fair value. The Group holds the Trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest rate method, less any impairment losses. Trade receivables that are subject to debt factoring arrangements are derecognised if they meet the conditions for derecognition detailed in IFRS 9 ‘Financial Instruments’.
Trade and other payables	Trade and other payables Financial liabilities included in Trade and other payables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest rate method. Contingent consideration payables are held at fair value within level 3 of the fair value hierarchy as defined in Note 11.
Financial instruments	Financial instruments The Group’s financial instruments include finance leases, Trade and other receivables and payables, liabilities for contingent consideration and put options under business combinations, and rights and obligations under employee benefit plans which are dealt with in specific accounting policies. The Group’s other financial instruments include: > Cash and cash equivalents > Fixed deposits > Other investments > Bank and other borrowings > Derivatives
Cash and cash equivalents	Cash and cash equivalents Cash and cash equivalents comprise cash in hand, current balances with banks and similar institutions, and highly liquid investments with maturities of three months or less when acquired. They are readily convertible into known amounts of cash and are held at amortised cost under the hold to collect classification, where they meet the hold to collect ‘solely payments of principal and interest’ test criteria under IFRS 9. Those not meeting these criteria are held at fair value through profit and loss.
Fixed deposits	Fixed deposits Fixed deposits, principally comprising funds held with banks and other financial institutions, are initially measured at fair value, plus direct transaction costs, and are subsequently measured at amortised cost using the effective interest rate method at each reporting date. Changes in carrying value are recognised in profit.
Other investments	Other investments Accounting policy applied until 31 December 2017 (IAS 39) Until 31 December 2017, the investments were classified as available for sale, initially measured at fair value (including direct transaction costs) and subsequently remeasured to fair value at each reporting date. Changes in carrying value due to changes in exchange rates on monetary available for sale investments or impairments were recognised in profit within Other operating income and expense. All other changes in fair value were recognised in Other comprehensive income. Accounting policy applied from 1 January 2018 (IFRS 9) On adoption of IFRS 9 ‘Financial Instruments’ on 1 January 2018 the available for sale classification category was eliminated. Investments previously classified as available for sale are now classified as fair value through profit or loss, unless the Group makes an irrevocable election at initial recognition for certain non-current equity investments to present changes in fair value in Other comprehensive income. If this election is made, there is no subsequent reclassification of fair value gains and losses to profit and loss following the derecognition of the investment. Reclassification from available for sale to at fair value through Other comprehensive income These investments were reclassified from available for sale to assets at fair value through Other comprehensive income. The investments primarily relate to biotech companies and are held to access science rather than to liquidate and realise gains. Reclassification from available for sale to at fair value through profit or loss These investments were reclassified from available to sale to assets at fair value through profit or loss. The investments primarily relate to short-term assets invested as part of our cash management strategy to maximise gains on our liquid resources. For the available for sale assets now at fair value through profit or loss the fair value gain that has gone through profit and loss that under the old classification would have gone to Other comprehensive income is $nil.
Bank and other borrowings	Bank and other borrowings The Group uses derivatives, principally interest rate swaps, to hedge the interest rate exposure inherent in a portion of its fixed interest rate debt. In such cases the Group will either designate the debt as fair value through profit or loss when certain criteria are met or as the hedged item under a fair value hedge. If the debt instrument is designated as fair value through profit or loss, the debt is initially measured at fair value (with direct transaction costs being included in profit as an expense) and is remeasured to fair value at each reporting date with changes in carrying value being recognised in profit (along with changes in the fair value of the related derivative), with the exception of changes in the fair value of the debt instrument relating to own credit risk which are recorded in Other comprehensive income in accordance with IFRS 9. Such a designation has been made where this significantly reduces an accounting mismatch which would result from recognising gains and losses on different bases. If the debt is designated as the hedged item under a fair value hedge, the debt is initially measured at fair value (with direct transaction costs being amortised over the life of the debt) and is remeasured for fair value changes in respect of the hedged risk at each reporting date with changes in carrying value being recognised in profit (along with changes in the fair value of the related derivative). If the debt is designated in a cash flow hedge, the debt is measured at amortised cost (with gains or losses taken to profit and direct transaction costs being amortised over the life of the debt). The related derivative is remeasured for fair value changes at each reporting date with the portion of the gain or loss on the derivative that is determined to be an effective hedge recognised in Other comprehensive income. The amounts that have been recognised in Other comprehensive income are reclassified to profit in the same period that the hedged forecast cash flows affect profit. The reclassification adjustment is included in Finance expense in the Consolidated statement of comprehensive income. Other interest-bearing loans are initially measured at fair value (with direct transaction costs being amortised over the life of the loan) and are subsequently measured at amortised cost using the effective interest rate method at each reporting date. Changes in carrying value are recognised in profit.
Derivatives	Derivatives Derivatives are initially measured at fair value (with direct transaction costs being included in profit as an expense) and are subsequently remeasured to fair value at each reporting date. Changes in carrying value are recognised in profit.
Foreign currencies	Foreign currencies Foreign currency transactions, being transactions denominated in a currency other than an individual Group entity’s functional currency, are translated into the relevant functional currencies of individual Group entities at average rates for the relevant monthly accounting periods, which approximate to actual rates. Monetary assets and liabilities arising from foreign currency transactions are retranslated at exchange rates prevailing at the reporting date. Exchange gains and losses on loans and on short-term foreign currency borrowings and deposits are included within Finance expense. Exchange differences on all other foreign currency transactions are recognised in Operating profit in the individual Group entity’s accounting records. Non-monetary items arising from foreign currency transactions are not retranslated in the individual Group entity’s accounting records. In the Consolidated Financial Statements, income and expense items for Group entities with a functional currency other than US dollars are translated into US dollars at average exchange rates, which approximate to actual rates, for the relevant accounting periods. Assets and liabilities are translated at the US dollar exchange rates prevailing at the reporting date. Exchange differences arising on consolidation are recognised in Other comprehensive income. If certain criteria are met, non-US dollar denominated loans or derivatives are designated as net investment hedges of foreign operations. Exchange differences arising on retranslation of net investments, and of foreign currency loans which are designated in an effective net investment hedge relationship, are recognised in Other comprehensive income in the Consolidated Financial Statements. Foreign exchange derivatives hedging net investments in foreign operations are carried at fair value. Effective fair value movements are recognised in Other comprehensive income, with any ineffectiveness taken to profit. Gains and losses accumulated in the translation reserve will be recycled to profit when the foreign operation is sold.
Litigation and environmental liabilities	Litigation and environmental liabilities AstraZeneca is involved in legal disputes, the settlement of which may involve cost to the Group. Provision is made where an adverse outcome is probable and associated costs, including related legal costs, can be estimated reliably. In other cases, appropriate disclosures are included. Determining the timing of recognition of when an adverse outcome is probable is considered a key judgement. Where it is considered that the Group is more likely than not to prevail, or in the rare circumstances where the amount of the legal liability cannot be estimated reliably, legal costs involved in defending the claim are charged to profit as they are incurred. Where it is considered that the Group has a valid contract which provides the right to reimbursement (from insurance or otherwise) of legal costs and/or all or part of any loss incurred or for which a provision has been established, the best estimate of the amount expected to be received is recognised as an asset only when it is virtually certain. AstraZeneca is exposed to environmental liabilities relating to its past operations, principally in respect of soil and groundwater remediation costs. Provisions for these costs are made when there is a present obligation and where it is probable that expenditure on remedial work will be required and a reliable estimate can be made of the cost. Provisions are discounted where the effect is material.
Impairment	Impairment The carrying values of non-financial assets, other than inventories and Deferred tax assets, are reviewed at least annually to determine whether there is any indication of impairment. For Goodwill, Intangible assets under development and for any other assets where such indication exists, the asset’s recoverable amount is estimated based on the greater of its value in use and its fair value less cost to sell. In assessing the recoverable amount, the estimated future cash flows, adjusted for the risks specific to each asset, are discounted to their present value using a discount rate that reflects current market assessments of the time value of money, the general risks affecting the pharmaceutical industry and other risks specific to each asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash flows of other assets. Impairment losses are recognised immediately in profit.
International accounting transition	International accounting transition On transition to using adopted IFRSs in the year ended 31 December 2005, the Group took advantage of several optional exemptions available in IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’. The major impacts which are of continuing importance are detailed below: > Business combinations – IFRS 3 ‘Business Combinations’ has been applied from 1 January 2003, the date of transition, rather than being applied fully retrospectively. As a result, the combination of Astra and Zeneca is still accounted for as a merger, rather than through purchase accounting. If purchase accounting had been adopted, Zeneca would have been deemed to have acquired Astra. > Cumulative exchange differences – the Group chose to set the cumulative exchange difference reserve at 1 January 2003 to nil.
Financial risk	The Group’s principal financial instruments, other than derivatives, comprise bank overdrafts, finance leases, loans, current and non-current investments, cash and short-term deposits. The main purpose of these financial instruments is to manage the Group’s funding and liquidity requirements. The Group has other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations. The principal financial risks to which the Group is exposed are those of liquidity, interest rate, foreign currency and credit. Each of these is managed in accordance with Board-approved policies. These policies are set out below. The Group uses foreign currency borrowings, foreign currency forwards and swaps, currency options, interest rate swaps and cross-currency interest rate swaps for the purpose of hedging its foreign currency and interest rate risks. The Group may designate certain financial instruments as fair value hedges, cash flow hedges or net investment hedges in accordance with IFRS 9. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. Sources of hedge effectiveness will depend on the hedge relationship designation but may include: > A significant change in the credit risk of either party to the hedging relationship. > A timing mismatch between the hedging instrument and the hedged item. > Movements in foreign currency basis spread for derivatives in a fair value hedge. > A significant change in the value of the foreign currency denominated net assets of the Group in a net investment hedge. The hedge ratio for each designation will be established by comparing the quantity of the hedging instrument and the quantity of the hedged item to determine their relative weighting; for all of the Group’s existing hedge relationships the hedge ratio has been determined as 1:1. Key controls applied to transactions in derivative financial instruments are: to use only instruments where good market liquidity exists, to revalue all financial instruments regularly using current market rates and to sell options only to offset previously purchased options or as part of a risk management strategy. The Group is not a net seller of options, and does not use derivative financial instruments for speculative purposes.
Liquidity risk	Liquidity risk The Board reviews the Group’s ongoing liquidity risks annually as part of the planning process and on an ad hoc basis. The Board considers short-term requirements against available sources of funding, taking into account forecast cash flows. The Group manages liquidity risk by maintaining access to a number of sources of funding which are sufficient to meet anticipated funding requirements. Specifically, the Group uses US commercial paper, bank loans, committed bank facilities and cash resources to manage short-term liquidity and manages long-term liquidity by raising funds through the capital markets. The Group is assigned short-term credit ratings of P-2 by Moody’s and A-2 by Standard and Poor’s. The Group’s long-term credit rating is A3 negative outlook by Moody’s and BBB+ stable outlook by Standard and Poor’s.
Interest rate risk	Interest rate risk The Group maintains a mix of fixed and floating rate debt. The portion of fixed rate debt was approved by the Board and any variation requires Board approval. A significant portion of the long-term debt is held at fixed rates of interest. The Group uses interest rate swaps and forward rate agreements to manage this mix.
Foreign currency risk	Foreign currency risk The US dollar is the Group’s most significant currency. As a consequence, the Group results are presented in US dollars and exposures are managed against US dollars accordingly.
Credit risk	Credit risk The Group is exposed to credit risk on financial assets, such as cash investments, derivative instruments, and Trade and other receivables. The Group is also exposed in its Net asset position to its own credit risk in respect of the 2023 debentures which are accounted for at fair value through profit or loss. Under IFRS 9, the Group records the effect of the losses and gains, arising from own credit risk, on the fair value of bonds designated at fair value through profit or loss in Other comprehensive income. Financial counterparty credit risk The majority of the AstraZeneca Group’s cash is centralised within the Group Treasury entity and is subject to counterparty risk on the principal invested. The level of the Group’s cash investments and hence credit risk will depend on the cash flow generated by the Group and the timing of the use of that cash. The credit risk is mitigated through a policy of prioritising security and liquidity over return, and, as such, cash is only invested in high credit quality investments. Counterparty limits are set according to the assessed risk of each counterparty and exposures are monitored against these limits on a regular basis.
Applicable accounting standards and interpretations issued but not yet adopted	Applicable accounting standards and interpretations issued but not yet adopted IFRS 16 ‘Leases’ is effective for accounting periods beginning on or after 1 January 2019 and will replace IAS 17 ‘Leases’. It will eliminate the classification of leases as either operating leases or finance leases and, instead, introduce a single lessee accounting model. The standard was endorsed by the EU on 31 October 2017. The adoption of IFRS 16 will result in the Group recognising lease liabilities, and corresponding ‘right-of-use’ assets for agreements that are currently classified as operating leases. The Group’s principal lease arrangements are for property, most notably a portfolio of office premises, and for a global car fleet, utilised primarily by our sales and marketing teams. The Group will adopt IFRS 16 retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening balance of Retained earnings at 1 January 2019. The Group has a choice, on a lease-by-lease basis, to measure the right-of-use asset at either its carrying amount as if IFRS 16 had been applied since the commencement of the lease, or an amount equal to the lease liability, adjusted for accruals or prepayments. The Group has assessed the difference between the two methods as immaterial and will measure the right to use asset equal to the right to use liability, after adjusting for accruals and prepayments, recognising approximately $0.7 billion of right-of-use assets and $0.7 billion of lease liabilities upon initial adoption. In applying the Standard retrospectively in this way the Group will use one or more practical expedients, on a lease-by-lease basis, to leases previously classified as operating leases, including electing to not apply the retrospective treatment to leases for which the term ends within 12 months of initial application and excluding initial direct costs from the initial measurement of the right-of-use asset. Key judgements and estimates made in calculating the initial impact of adoption include assessing whether arrangements contain a lease, determining the lease term, and calculating the discount rate. The Group will apply IFRS 16’s low-value and short-term exemptions prospectively. While the IFRS 16 opening lease liability is calculated differently from the current operating lease commitments, there are no material differences between the positions. The adoption of IFRS 16 will have no impact on the Group’s cash flows except to present cash outflows as financing, instead of operating. There will be an immaterial benefit to Operating profit and a corresponding increase in Finance expense from the presentation of a portion of lease costs as interest costs. Profit before tax and Earnings per share are not expected to be significantly impacted. IFRIC 23 ‘Uncertainty Over Income Tax Treatments’ is effective for accounting periods beginning on or after 1 January 2019 and provides further clarification on how to apply the recognition and measurement requirements in IAS 12 ‘Income Taxes’. It is applicable where there is uncertainty over income tax treatments. The EU endorsed IFRIC 23 on 24 October 2018. The adoption of IFRIC 23 will principally result in the Group measuring the effect of uncertainty on income tax positions using either the most likely amount or the expected value amount depending on which method the entity expects to better predict the resolution of the uncertainty. The Group will adopt IFRIC 23 retrospectively with the cumulative effect of initially applying the interpretation recognised at 1 January 2019 as an adjustment to the opening balance of Retained earnings. The initial impact of adopting IFRIC 23 is not material. Profit before tax and Earnings per share are not anticipated to be significantly impacted. In addition, the following amendments and interpretations have been issued: > Amendments to IFRS 9 ‘Prepayment Features with Negative Compensation’, effective for periods beginning on or after 1 January 2019. > Amendments to IAS 28 ‘Long term Interests in Associates and Joint Ventures’, effective for periods beginning on or after 1 January 2019. > Amendments to IAS 19 ‘Plan Amendment, Curtailment or Settlement’, effective for periods beginning on or after 1 January 2019. > Amendments to IFRS 3 ‘Business Combinations’, effective for period beginning on or after 1 January 2020. > Amendments to IAS 1 ‘Presentation of Financial Statements’ and IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’, effective for periods beginning on or after 1 January 2020. The above amendments and interpretations are not expected to have a significant impact on the Group’s net results. The amendments have not yet been endorsed by the EU.

Group Accounting Policies (Tabl

Group Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2018
Financial assets
Application of new accounting standards
Schedule of adjustments due to initial application of standards	Measurement Carrying category amounts Original New Original New Difference (IAS 39) (IFRS 9) $m $m $m Non-current financial assets Other investments Equity securities 1 Available for sale FVOCI 933 933 – Derivative financial instruments Held for trading FVPL 504 504 – Other receivables Amortised cost Amortised cost 489 489 – Current financial assets Trade and other receivables Trade receivables - not subject to factoring Amortised cost Amortised cost 2,475 2,475 – Trade receivables - subject to factoring 2 Amortised cost FVOCI 327 327 – Other receivables Amortised cost Amortised cost 949 949 – Other investments Equity securities and bonds 3 Available for sale FVPL 1,150 1,150 – Fixed Deposits Amortised cost Amortised cost 80 80 – Derivative financial instruments Held for trading FVPL 28 28 – Cash and cash equivalents Cash at bank and in hand Amortised cost Amortised cost 784 784 – Short-term deposits excluding money market funds Amortised cost Amortised cost 1,391 1,391 – Money market funds 4 Amortised cost FVPL 1,149 1,149 – Current financial liabilities Derivative financial instruments Held for trading FVPL (24) (24) – Non-current financial liabilities Derivative financial instruments Held for trading FVPL (4) (4) – 1 Equity securities investments reclassified from available to sale to assets at fair value through Other comprehensive income. These are strategic investments held directly in other pharmaceutical and biotech companies. 2 Trade receivables that are subject to debt factoring arrangements were held at amortised cost under IAS 39. Under IFRS 9 these receivables are held under the ‘hold to collect and sell’ business model at fair value through other comprehensive income, however their carrying value and their fair value are considered to be materially the same. 3 Equity security investments reclassified from available to sale to assets at fair value through profit or loss. These are primarily short-term assets invested as part of our cash management strategy to maximise gains on our liquid resources. 4 Money market funds – the Group is invested in constant net asset value funds where liquidity is offered with same day access for subscription and redemption. Because they fail the ‘solely payments of principal and interest’ test criteria under IFRS 9 they are measured at fair value through profit or loss, although the fair value is materially the same as amortised cost.
Financial liabilities
Application of new accounting standards
Schedule of adjustments due to initial application of standards	Measurement Carrying category amounts Original New Original New Difference (IAS 39) (IFRS 9) $m $m $m Non-current financial assets Other investments Equity securities 1 Available for sale FVOCI 933 933 – Derivative financial instruments Held for trading FVPL 504 504 – Other receivables Amortised cost Amortised cost 489 489 – Current financial assets Trade and other receivables Trade receivables - not subject to factoring Amortised cost Amortised cost 2,475 2,475 – Trade receivables - subject to factoring 2 Amortised cost FVOCI 327 327 – Other receivables Amortised cost Amortised cost 949 949 – Other investments Equity securities and bonds 3 Available for sale FVPL 1,150 1,150 – Fixed Deposits Amortised cost Amortised cost 80 80 – Derivative financial instruments Held for trading FVPL 28 28 – Cash and cash equivalents Cash at bank and in hand Amortised cost Amortised cost 784 784 – Short-term deposits excluding money market funds Amortised cost Amortised cost 1,391 1,391 – Money market funds 4 Amortised cost FVPL 1,149 1,149 – Current financial liabilities Derivative financial instruments Held for trading FVPL (24) (24) – Non-current financial liabilities Derivative financial instruments Held for trading FVPL (4) (4) – 1 Equity securities investments reclassified from available to sale to assets at fair value through Other comprehensive income. These are strategic investments held directly in other pharmaceutical and biotech companies. 2 Trade receivables that are subject to debt factoring arrangements were held at amortised cost under IAS 39. Under IFRS 9 these receivables are held under the ‘hold to collect and sell’ business model at fair value through other comprehensive income, however their carrying value and their fair value are considered to be materially the same. 3 Equity security investments reclassified from available to sale to assets at fair value through profit or loss. These are primarily short-term assets invested as part of our cash management strategy to maximise gains on our liquid resources. 4 Money market funds – the Group is invested in constant net asset value funds where liquidity is offered with same day access for subscription and redemption. Because they fail the ‘solely payments of principal and interest’ test criteria under IFRS 9 they are measured at fair value through profit or loss, although the fair value is materially the same as amortised cost.

Revenue (Tables)

Revenue (Tables)	12 Months Ended
	Dec. 31, 2018
Disclosure of disaggregation of revenue from contracts with customers [line items]
Schedule of product sales	Emerging Rest of Emerging Rest of Emerging Rest of Markets US Europe World Total Markets US Europe World Total Markets US Europe World Total $m $m $m $m $m $m $m $m $m $m $m $m $m $m $m Oncology: Tagrisso 347 869 314 330 1,860 135 405 187 228 955 10 254 76 83 423 Faslodex 154 537 221 116 1,028 115 492 256 78 941 96 438 228 68 830 Zoladex 409 8 133 202 752 353 15 141 226 735 355 35 156 270 816 Lynparza 51 345 190 61 647 18 141 130 8 297 7 127 81 3 218 Imfinzi 6 564 27 36 633 – 19 – – 19 – – – – – Iressa 286 26 109 97 518 251 39 112 126 528 233 23 120 137 513 Arimidex 132 – 31 49 212 118 7 34 58 217 110 14 37 71 232 Casodex 113 1 20 67 201 108 (1) 22 86 215 107 2 27 111 247 Calquence – 62 – – 62 – 3 – – 3 – – – – – Others 30 – 8 77 115 28 – 3 83 114 25 – 8 71 104 1,528 2,412 1,053 1,035 6,028 1,126 1,120 885 893 4,024 943 893 733 814 3,383 Cardiovascular, Renal and Metabolism: Crestor 841 170 203 219 1,433 784 373 666 542 2,365 721 1,223 866 591 3,401 Farxiga 336 591 315 149 1,391 232 489 242 111 1,074 133 457 187 58 835 Brilinta 326 588 348 59 1,321 224 509 295 51 1,079 189 348 258 44 839 Seloken/Toprol-XL 641 39 19 13 712 593 37 52 13 695 536 95 90 16 737 Bydureon 8 475 81 20 584 9 458 88 19 574 4 463 100 11 578 Onglyza 172 223 89 59 543 130 320 104 57 611 142 376 132 70 720 Atacand 157 13 70 20 260 178 19 86 17 300 162 36 97 20 315 Byetta 8 74 29 15 126 12 114 34 16 176 24 164 45 21 254 Symlin – 34 – – 34 – 48 – – 48 – – – – – Others 206 (1) 76 25 306 205 4 92 43 344 228 40 119 50 437 2,695 2,206 1,230 579 6,710 2,367 2,371 1,659 869 7,266 2,139 3,202 1,894 881 8,116 Respiratory: Symbicort 495 862 773 431 2,561 439 1,099 819 446 2,803 402 1,242 909 436 2,989 Pulmicort 995 116 90 85 1,286 840 156 92 88 1,176 698 174 99 90 1,061 Fasenra 1 218 32 46 297 – 1 – – 1 – – – – – Daliresp/Daxas 5 155 28 1 189 4 167 26 1 198 4 134 15 1 154 Tudorza/Eklira 1 25 74 10 110 2 66 73 9 150 1 77 83 9 170 Duaklir 1 – 91 3 95 – – 77 2 79 1 – 60 2 63 Bevespi – 33 – – 33 – 16 – – 16 – – – – – Others 146 7 141 46 340 103 4 129 47 283 137 11 118 50 316 1,644 1,416 1,229 622 4,911 1,388 1,509 1,216 593 4,706 1,243 1,638 1,284 588 4,753 Other: Nexium 690 306 235 471 1,702 684 499 248 521 1,952 690 554 251 537 2,032 Synagis 1 287 377 – 665 – 317 370 – 687 – 325 352 – 677 Seroquel XR /IR 118 108 107 28 361 151 193 127 37 508 159 572 190 46 967 Losec/Prilosec 161 7 70 34 272 140 11 77 43 271 128 10 83 55 276 FluMist/Fluenz 1 15 91 3 110 (1) – 76 3 78 1 33 64 6 104 Movantik/Moventig – 108 – 1 109 – 120 2 – 122 1 90 – – 91 Others 53 11 67 50 181 294 29 93 122 538 490 48 213 169 920 1,024 842 947 587 3,400 1,268 1,169 993 726 4,156 1,469 1,632 1,153 813 5,067 Product Sales 6,891 6,876 4,459 2,823 21,049 6,149 6,169 4,753 3,081 20,152 5,794 7,365 5,064 3,096 21,319
Externalisation Revenue
Disclosure of disaggregation of revenue from contracts with customers [line items]
Schedule of product sales	$m $m $m Global co-development and commercialisation of Lynparza and selumetinib with MSD 790 1,247 – Licence agreement for Crestor in Spain with Almirall 61 – – Transfer of rights to Zoladex in the US and Canada to TerSera 35 250 – Transfer of rights to anaesthetics medicines to Aspen – 150 520 Licence of rights to brodalumab to Valeant and LEO Pharma – 150 – Co-development and commercialisation of MEDI8897 with Sanofi – 127 – Commercial rights to Plendil in China to CMS – – 298 Transfer of rights to Toprol-XL in the US to Aralez – – 175 Licence of rights to tralokinumab to LEO Pharma – – 115 Grant of authorised generic rights to various medicines in Japan 41 45 42 Other externalisation upfronts 10 114 158 Other externalisation milestones 4 87 203 Royalty income 49 108 119 Other externalisation revenue 51 35 53 1,041 2,313 1,683

Operating profit (Tables)

Operating profit (Tables)	12 Months Ended
	Dec. 31, 2018
Operating profit
Schedule of other operating income and expense	$m $m $m Royalties Income 96 132 406 Amortisation (4) (45) (86) Gains on disposal of intangible assets 1,885 1,518 1,301 Gains on disposal of short-term investments – 161 – Net (losses)/gains on disposal of other non-current assets (8) 24 29 Impairment of property, plant and equipment – (78) – Legal settlements 374 – – Other income 277 286 146 Other expense (93) (168) (141) Other operating income and expense 2,527 1,830 1,655
Schedule of restructuring costs	$m $m $m Cost of sales 432 181 130 Research and development expense 94 201 178 Selling, general and administrative costs 181 347 823 Other operating income and expense (10) 78 (24) Total charge 697 807 1,107 $m $m $m Severance costs 41 176 505 Accelerated depreciation and impairment 259 141 46 Other 397 490 556 Total charge 697 807 1,107
Schedule of net gains and losses on financial instruments included within operating profit	$m $m $m Losses on forward foreign exchange contracts (100) (6) (216) Gains/(losses) on receivables and payables 43 (30) 132 Gains on disposal of short-term investments – 161 – Gains on other available for sale investments – 34 – Total (57) 159 (84)

Finance income and expense (Tab

Finance income and expense (Tables)	12 Months Ended
	Dec. 31, 2018
Finance income and expense
Schedule of net finance expense	$m $m $m Finance income Returns on fixed deposits and equity securities 10 8 8 Returns on short-term deposits 86 62 35 Fair value gains on debt and interest rate swaps – 4 – Net exchange gains – – 8 Discount unwind on other long-term assets 6 10 16 Interest on tax receivables 36 29 – Total 138 113 67 Finance expense Interest on debt and commercial paper (673) (612) (565) Interest on overdrafts, finance leases and other financing costs (68) (52) (52) Net interest on post-employment defined benefit plan net liabilities (Note 21) (52) (49) (63) Net exchange losses (51) (148) – Discount unwind on contingent consideration arising from business combinations (Note 19) (416) (402) (497) Discount unwind on other long-term liabilities (154) (245) (190) Fair value losses on debt and interest rate swaps (2) – (17) Interest on tax payables (3) – – Total (1,419) (1,508) (1,384) Net finance expense (1,281) (1,395) (1,317)
Schedule of net gains and losses on financial instruments	$m $m $m Interest and fair value adjustments in respect of debt designated at fair value through profit or loss, net of derivatives (11) 8 (14) Interest and changes in carrying values of debt designated as hedged items in fair value hedges, net of derivatives (28) (35) (21) Interest and fair value changes on fixed and short-term deposits, equity securities, other derivatives and tax balances 96 52 74 Interest on debt, overdrafts, finance leases and commercial paper held at amortised cost (619) (559) (553)

Taxation (Tables)

Taxation (Tables)	12 Months Ended
	Dec. 31, 2018
Taxation
Schedule of taxation, comprehensive income	$m $m $m Current tax expense Current year 711 665 384 Adjustment to prior years 38 (287) (14) Total 749 378 370 Deferred tax expense Origination and reversal of temporary differences (644) (1,113) (94) Adjustment to prior years (162) 94 (130) Total (806) (1,019) (224) Taxation recognised in the profit for the period (57) (641) 146 Taxation relating to components of Other comprehensive income is as follows: $m $m $m Current and deferred tax Items that will not be reclassified to profit or loss: Remeasurement of the defined benefit liability 37 24 110 Share-based payments – 9 51 Net losses on equity investments measured at fair value through other comprehensive income 30 – – Deferred tax impact of reduction in US, Sweden and other tax rates (11) (17) (25) Total 56 16 136 Items that may be reclassified subsequently to profit or loss: Foreign exchange arising on consolidation 69 (79) 63 Foreign exchange arising on designating borrowings in net investment hedges – 14 83 Net available for sale losses/(gains) recognised in other comprehensive income – 2 (61) Other – – 1 Deferred tax impact of reduction in US, Sweden and other tax rates (18) 30 – Total 51 (33) 86 Taxation relating to components of other comprehensive income 107 (17) 222
Schedule of tax reconciliation to UK statutory rate	$m $m $m Profit before tax 1,993 2,227 3,552 Notional taxation charge at UK corporation tax rate of 19% (2017: 19.25%; 2016: 20%) 379 429 710 Differences in effective overseas tax rates 18 (212) (233) Deferred tax credit relating to reduction in Dutch, Swedish and other tax rates 1 (334) (616) (16) Unrecognised deferred tax asset 2 7 (105) 242 Items not deductible for tax purposes 167 203 132 Items not chargeable for tax purposes (6) (14) (7) Other items 3 (164) (133) (538) Adjustments in respect of prior periods 4 (124) (193) (144) Total tax (credit)/charge for the year (57) (641) 146 1 The 2018 item relates to the recent reduction in the Dutch and Swedish Corporate Income Tax rates (credit of $297m) and other (credit of $37m). The Dutch Corporate Income Tax rate reduces from 25% to 22.55% effective from 1 January 2020 and to 20.5% effective from 1 January 2021. The Swedish Income Tax rate reduces from 22% to 21.4% effective from 1 January 2019 and to 20.6% effective from 1 January 2021. The 2017 item relates to the reduction in the US Federal Income Tax rate from 35% to 21% effective from 1 January 2018 (credit of $617m) and other (charge of $1m). The 2016 item relates to the reduction in the UK Statutory Corporation Tax rate from 18% to 17% effective from 1 April 2020. 2 The 2017 item relates to recognition of previously unrecognised net deferred tax assets. 3 Other items in 2018 relate to a credit of $188m relating to the release of tax contingencies following the expiry of the relevant statute of limitations and on the conclusion of tax authority review partially offset by a provision build for transfer pricing and other contingencies (charge $24m). Other items in 2017 relate to the release of tax contingencies following the expiry of the relevant statute of limitations (credit $178m) partially offset by a provision build for transfer pricing and other contingencies (charge $45m). Other items in 2016 relate to the release of tax contingencies following agreements between the Canadian tax authority and UK and Swedish tax authorities in respect of transfer pricing arrangements for the 13 year period from 2004 to 2016 (credit $453m) and release of certain tax contingencies following the expiry of the relevant statute of limitations (credit $280m) partially offset by a provision build for transfer pricing contingencies (charge $195m). 4 Further details explaining the adjustments in respect of prior periods is set out above on page 163.
Schedule of deferred tax movements	Intangibles, Pension and Inter-company Losses and Accrued property, plant post-retirement inventory Untaxed tax credits expenses & equipment 1 benefits transfers reserves 2 carried forward 3 and other Total $m $m $m $m $m $m $m Net deferred tax balance at 1 January 2016 (3,261) 427 738 (692) 804 613 (1,371) Taxation expense (132) 11 314 (53) 151 (67) 224 Other comprehensive income 83 101 – – – (24) 160 Additions through business combinations 4 (1,827) – – – 50 – (1,777) Exchange (1) (74) (38) 48 (1) (13) (79) Other movements 5 (11) – – – – – (11) Net deferred tax balance at 31 December 2016 (5,149) 465 1,014 (697) 1,004 509 (2,854) Income statement 1,393 (8) (231) 159 (128) (166) 1,019 Other comprehensive income (84) 9 – – – 35 (40) Exchange (12) 43 48 (62) 30 22 69 Net deferred tax balance at 31 December 2017 (3,852) 509 831 (600) 906 400 (1,806) Net adjustment to the opening balance of Retained earnings – – – – – 12 12 Income statement 401 (15) 179 (4) 129 116 806 Other comprehensive income 56 26 – – – 31 113 Equity 6 – – – – – 12 12 Exchange 27 (25) (30) 47 (27) (36) (44) Net deferred tax balance at 31 December 20187 (3,368) 495 980 (557) 1,008 535 (907) 1 Includes deferred tax on contingent liabilities in respect of intangibles. 2 Untaxed reserves relate to taxable profits where the tax liability is deferred to later periods. 3 Includes losses and tax credits carried forward which will expire within 1 to 20 years. 4 The deferred tax liability of $1,777m relates to the acquisition of Acerta Pharma (see Note 25). 5 Arising on the deconsolidation of Entasis as detailed in Note 10. 6 Deferred tax movement on share-based payments recorded through equity. 7 The UK had a net deferred tax asset of $691m as at 31 December 2018, mainly in respect of losses and pensions and post-retirement benefits, which has been recognised on the basis of sufficient forecast future taxable profits against which the deductible temporary differences can be utilised.
Before the offset of balances within countries
Taxation
Schedule of net deferred tax balance	Intangibles, Pension and Inter-company Losses and Accrued property, plant post-retirement inventory Untaxed tax credits expenses & equipment benefits transfers reserves carried forward and other Total $m $m $m $m $m $m $m Deferred tax assets at 31 December 2016 875 465 1,014 – 1,004 629 3,987 Deferred tax liabilities at 31 December 2016 (6,024) – – (697) – (120) (6,841) Net deferred tax balance at 31 December 2016 (5,149) 465 1,014 (697) 1,004 509 (2,854) Deferred tax assets at 31 December 2017 1,226 559 1,011 – 957 885 4,638 Deferred tax liabilities at 31 December 2017 (5,078) (50) (180) (600) (51) (485) (6,444) Net deferred tax balance at 31 December 2017 (3,852) 509 831 (600) 906 400 (1,806) Deferred tax assets at 31 December 2018 1,071 521 1,287 – 1,103 913 4,895 Deferred tax liabilities at 31 December 2018 (4,439) (26) (307) (557) (95) (378) (5,802) Net deferred tax balance at 31 December 2018 (3,368) 495 980 (557) 1,008 535 (907)
After the offset of balances within countries
Taxation
Schedule of net deferred tax balance	$m $m $m Deferred tax assets 2,379 2,189 1,102 Deferred tax liabilities (3,286) (3,995) (3,956) Net deferred tax balance (907) (1,806) (2,854)

Earnings per $0.25 Ordinary S_2

Earnings per $0.25 Ordinary Share (Tables)	12 Months Ended
	Dec. 31, 2018
Earnings per $0.25 Ordinary Share
Schedule of Earnings per Ordinary Share	Profit for the year attributable to equity holders ($m) 2,155 3,001 3,499 Basic earnings per Ordinary Share $ $ $ Diluted earnings per Ordinary Share $ $ $ Weighted average number of Ordinary Shares in issue for basic earnings (millions) 1,267 1,266 1,265 Dilutive impact of share options outstanding (millions) – 1 1 Diluted weighted average number of Ordinary Shares in issue (millions) 1,267 1,267 1,266

Segment information (Tables)

Segment information (Tables)	12 Months Ended
	Dec. 31, 2018
Segment information
Tabular disclosure of information by geographic area	Total Revenue $m $m $m UK 2,390 3,240 1,849 Continental Europe France 617 701 899 Germany 592 541 615 Italy 426 514 529 Spain 396 447 440 Sweden 477 842 1,522 Others 1,312 1,512 1,575 3,820 4,557 5,580 The Americas Canada 483 482 495 US 7,240 6,666 7,828 Others 806 809 846 8,529 7,957 9,169 Asia, Africa & Australasia Australia 313 377 385 China 3,778 2,955 2,650 Japan 1,952 2,172 2,145 Others 1,308 1,207 1,224 7,351 6,711 6,404 Total Revenue 22,090 22,465 23,002 Total revenue outside of the UK totalled $19,700m for the year ended 31 December 2018 (2017: $19,225m; 2016: $21,153m). Operating (loss)/profit (Loss)/profit before tax $m $m $m $m $m $m UK (66) (694) (526) (514) (1,146) (950) Continental Europe 3,671 2,482 3,695 3,179 1,918 3,136 The Americas (757) 1,242 1,259 (1,171) 822 919 Asia, Africa & Australasia 539 647 474 499 633 447 Continuing operations 3,387 3,677 4,902 1,993 2,227 3,552
Tabular disclosure of assets by geographic area	Non-current assets 1 Total assets $m $m $m $m $m $m UK 4,828 5,371 5,127 13,573 12,842 12,704 Continental Europe 14,529 16,305 15,731 17,119 18,962 18,174 The Americas 22,191 24,811 26,044 26,381 28,180 28,792 Asia, Africa & Australasia 976 1,024 917 3,578 3,370 2,856 Continuing operations 42,524 47,511 47,819 60,651 63,354 62,526 Assets acquired 2 Net operating assets 3 $m $m $m $m $m $m UK 556 400 362 3,471 3,351 3,306 Continental Europe 530 629 8,494 8,913 10,228 8,479 The Americas 356 585 688 18,598 20,339 20,969 Asia, Africa & Australasia 105 138 129 1,037 1,198 1,030 Continuing operations 1,547 1,752 9,673 32,019 35,116 33,784 1 Non-current assets exclude Deferred tax assets and Derivative financial instruments. 2 Included in Assets acquired are those assets that are expected to be used during more than one period (Property, plant and equipment, Goodwill and Intangible   assets). 3 Net operating assets exclude short-term investments, cash, short-term borrowings, loans, Derivative financial instruments, retirement benefit obligations and non-operating receivables and payables. Property, plant and equipment $m $m $m UK 1,605 1,455 1,026 Sweden 1,456 1,508 1,142 US 2,844 3,055 3,233 Rest of the world 1,516 1,597 1,447 Continuing operations 7,421 7,615 6,848
Tabular disclosure of product sales	$m $m $m UK 469 489 487 Continental Europe 4,388 4,712 4,987 The Americas 8,177 7,467 8,717 Asia, Africa & Australasia 8,015 7,484 7,128 Continuing operations 21,049 20,152 21,319

Property, plant and equipment (

Property, plant and equipment (Tables)	12 Months Ended
	Dec. 31, 2018
Property, plant and equipment
Schedule of property plant and equipment	Assets in Total property, Land and Plant and course of plant and buildings equipment construction equipment $m $m $m $m Cost At 1 January 2016 4,812 7,468 1,568 13,848 Capital expenditure 29 206 1,214 1,449 Transfer of assets into use 222 109 (331) – Disposals and other movements (236) (700) (16) (952) Exchange adjustments (211) (540) (143) (894) At 31 December 2016 4,616 6,543 2,292 13,451 Capital expenditure 39 198 1,074 1,311 Transfer of assets into use 525 567 (1,092) – Disposals and other movements (367) (577) – (944) Exchange adjustments 210 452 159 821 At 31 December 2017 5,023 7,183 2,433 14,639 Capital expenditure 25 99 910 1,034 Transfer of assets into use 429 594 (1,023) – Disposals and other movements 50 (427) (14) (391) Exchange adjustments (161) (353) (129) (643) At 31 December 2018 5,366 7,096 2,177 14,639 Depreciation At 1 January 2016 2,253 5,182 – 7,435 Charge for year 185 424 – 609 Impairment 2 – – 2 Disposals and other movements (222) (656) – (878) Exchange adjustments (126) (439) – (565) At 31 December 2016 2,092 4,511 – 6,603 Charge for year 182 442 – 624 Impairment 78 – – 78 Disposals and other movements (249) (501) – (750) Exchange adjustments 128 341 – 469 At 31 December 2017 2,231 4,793 – 7,024 Charge for year 202 412 – 614 Impairment 150 98 43 291 Disposals and other movements 10 (336) (43) (369) Exchange adjustments (89) (253) – (342) At 31 December 2018 2,504 4,714 – 7,218 Net book value At 31 December 2016 2,524 2,032 2,292 6,848 At 31 December 2017 2,792 2,390 2,433 7,615 At 31 December 2018 2,862 2,382 2,177 7,421
Schedule of net book value of land and buildings	$m $m $m The net book value of land and buildings comprised: Freeholds 2,567 2,514 2,326 Leaseholds 295 278 198

Goodwill (Tables)

Goodwill (Tables)	12 Months Ended
	Dec. 31, 2018
Goodwill.
Schedule of changes in Goodwill	$m $m $m Cost At 1 January 12,143 11,969 12,113 Additions through business combinations (Note 26) – – 19 Exchange and other adjustments (121) 174 (163) At 31 December 12,022 12,143 11,969 Amortisation and impairment losses At 1 January 318 311 313 Exchange and other adjustments (3) 7 (2) At 31 December 315 318 311 Net book value at 31 December 11,707 11,825 11,658

Intangible assets (Tables)

Intangible assets (Tables)	12 Months Ended
	Dec. 31, 2018
Intangible assets
Schedule of reconciliation of changes in intangible assets	Product, Software marketing and Other development distribution rights intangibles costs Total $m $m $m $m Cost At 1 January 2016 35,318 2,795 2,019 40,132 Additions through business combinations (Note 26) 7,307 – – 7,307 Additions – separately acquired 789 32 77 898 Disposals (339) (15) (141) (495) Exchange and other adjustments (1,472) (232) (127) (1,831) At 31 December 2016 41,603 2,580 1,828 46,011 Additions – separately acquired 397 7 37 441 Disposals (249) (67) (62) (378) Exchange and other adjustments 1,162 116 108 1,386 At 31 December 2017 42,913 2,636 1,911 47,460 Additions – separately acquired 476 – 37 513 Transferred to assets held for sale (Note 17) (2,486) – – (2,486) Disposals (630) – (16) (646) Exchange and other adjustments (1,137) (110) (93) (1,340) At 31 December 2018 39,136 2,526 1,839 43,501 Amortisation and impairment losses At 1 January 2016 14,104 1,773 1,609 17,486 Amortisation for year 1,454 162 85 1,701 Impairment 43 1 1 45 Disposals (25) (15) (124) (164) Exchange and other adjustments (481) (85) (77) (643) At 31 December 2016 15,095 1,836 1,494 18,425 Amortisation for year 1,627 118 84 1,829 Impairment 488 – 3 491 Disposals (19) – (52) (71) Exchange and other adjustments 467 50 81 598 At 31 December 2017 17,658 2,004 1,610 21,272 Amortisation for year 2,016 69 80 2,165 Impairment 683 – – 683 Transferred to assets held for sale (Note 17) (1,504) – – (1,504) Disposals (294) – (13) (307) Exchange and other adjustments (652) (38) (77) (767) At 31 December 2018 17,907 2,035 1,600 21,542 Net book value At 31 December 2016 26,508 744 334 27,586 At 31 December 2017 25,255 632 301 26,188 At 31 December 2018 21,229 491 239 21,959
Summary of amortisation charges	Product, Software marketing and Other development distribution rights intangibles costs Total $m $m $m $m Year ended 31 December 2016 Cost of sales 124 – – 124 Research and development expense – 48 – 48 Selling, general and administrative costs 1,327 31 85 1,443 Other operating income and expense 3 83 – 86 Total 1,454 162 85 1,701 Year ended 31 December 2017 Cost of sales 149 – – 149 Research and development expense – 43 – 43 Selling, general and administrative costs 1,478 30 84 1,592 Other operating income and expense – 45 – 45 Total 1,627 118 84 1,829 Year ended 31 December 2018 Cost of sales 187 – – 187 Research and development expense – 33 – 33 Selling, general and administrative costs 1,829 32 80 1,941 Other operating income and expense – 4 – 4 Total 2,016 69 80 2,165
Summary of impairment charges	Product, Software marketing and Other development distribution rights intangibles costs Total $m $m $m $m Year ended 31 December 2016 Research and development expense 32 1 – 33 Selling, general and administrative costs 11 – 1 12 Total 43 1 1 45 Year ended 31 December 2017 Research and development expense 101 – – 101 Selling, general and administrative costs 387 – 3 390 Total 488 – 3 491 Year ended 31 December 2018 Research and development expense 539 – – 539 Selling, general and administrative costs 144 – – 144 Total 683 – – 683
Summary of significant intangible assets	Carrying value Remaining amortisation $m period Intangible assets arising from the acquisition of Acerta Pharma 6,745 14 years Intangible assets arising from the acquisition of ZS Pharma 3,067 13 years Farxiga / Forxiga intangible assets acquired from BMS 1,177 9 years Intangible assets arising from the acquisition of Ardea 1 1,172 Not amortised Intangible assets arising from the restructuring of a historical joint venture with MSD 1,092 1 to 12 years RSV franchise assets arising from the acquisition of MedImmune 1,068 7 years Bydureon intangible assets acquired from BMS 988 12 years Intangible assets arising from the acquisition of Pearl Therapeutics 828 10 years Other diabetes intangible assets acquired from BMS 795 4 to 7 years Onglyza intangible assets acquired from BMS 752 5 years Respiratory intangible assets acquired from Almirall and Actavis 733 1 to 20 years Intangible assets arising from the acquisition of Omthera 1 533 Not amortised Roxadustat intangible assets acquired from FibroGen 1 327 Not amortised

Investments in associates and_2

Investments in associates and joint ventures (Tables)	12 Months Ended
	Dec. 31, 2018
Investments in associates and joint ventures
Schedule of investments in associates and joint ventures	$m $m $m At 1 January 103 99 85 Additions 187 76 65 Share of after tax losses (113) (55) (33) Unrecognised profit on transactions with joint ventures (64) (27) – Exchange adjustments (24) 10 (18) At 31 December 89 103 99
Schedule of summarised financial information for the associate and joint venture entities	$m $m $m Non-current assets 260 207 144 Current assets 233 158 128 Total liabilities (71) (41) (20) Net assets 422 324 252 Amount attributable to AstraZeneca 104 117 125 Exchange adjustments (15) (14) (26) Carrying value of investments in associate and joint ventures 89 103 99

Other investments (Tables)

Other investments (Tables)	12 Months Ended
	Dec. 31, 2018
Other investments
Schedule of other investments	$m $m $m Non-current investments Equity securities at fair value through other comprehensive income 833 – – Equity securities available for sale – 933 727 Total 833 933 727 Current investments Fixed income securities at fair value through profit and loss 809 – – Fixed income securities available for sale – 1,150 847 Fixed deposits 40 80 37 Total 849 1,230 884
Schedule of analysis equity securities and bonds available for sale	FVPL FVOCI AFS AFS $m $m $m $m Level 1 809 667 1,408 933 Level 2 – – – – Level 3 – 166 675 641 Total 809 833 2,083 1,574
Schedule of fair value movements in level 3 investments	FVOCI AFS AFS $m $m $m At 1 January 675 641 352 Additions 79 53 210 Revaluations (147) (1) 110 Transfers out (434) (12) (12) Disposals (6) (15) (2) Impairments and exchange adjustments (1) 9 (17) At 31 December 166 675 641

Derivative financial instrume_2

Derivative financial instruments (Tables)	12 Months Ended
	Dec. 31, 2018
Derivative financial instruments
Schedule of derivative financial instruments	Non-current Current Current Non-current assets assets liabilities liabilities Total $m $m $m $m $m Interest rate swaps designated in a fair value hedge – 19 – (2) 17 Interest rate swaps related to instruments designated at fair value through profit and loss 65 – – – 65 Cross currency swaps designated in a net investment hedge 278 – – – 278 Cross currency swaps designated in a cashflow hedge – – – (115) (115) Other derivatives – 8 (18) – (10) 31 December 2016 343 27 (18) (117) 235 Non-current Current Current Non-current assets assets liabilities liabilities Total $m $m $m $m $m Interest rate swaps designated in a fair value hedge – – (3) – (3) Interest rate swaps related to instruments designated at fair value through profit and loss 53 – – – 53 Cross currency swaps designated in a net investment hedge 223 12 – (4) 231 Cross currency swaps designated in a cashflow hedge 197 – – – 197 Cross currency swaps designated in a fair value hedge 31 – – – 31 Other derivatives – 16 (21) – (5) 31 December 2017 504 28 (24) (4) 504 Non-current Current Current Non-current assets assets liabilities liabilities Total $m $m $m $m $m Interest rate swaps related to instruments designated at fair value through profit and loss 40 – – – 40 Cross currency swaps designated in a net investment hedge 1 – 213 – (4) 209 Cross currency swaps designated in a cashflow hedge 2 101 – – – 101 Cross currency swaps designated in a fair value hedge 3 16 – – – 16 Other derivatives – 45 (27) – 18 31 December 2018 157 258 (27) (4) 384 1 Cross currency swaps designated in a net investment hedge comprise a $750m Japanese yen to US dollar cross currency interest rate swap maturing in 2019 and a $69m Chinese renminbi to US dollar cross currency interest rate swap maturing in 2026. The Japanese to US swap effectively converts $750m of the Group’s $1,000m 1.95% 2019 bond into a Japanese yen borrowing, partially hedging the Group’s Japanese yen denominated assets and revenues. At 31 December 2018 the fair value of this swap was $213m (2017: $223m; 2016: $242m), the swapped US dollar:Japanese yen rate was 78.01 and the Japanese yen interest rate on the swap was 0.3452%. The Chinese renminbi to US dollar swap hedges inter-company funding provided to Chinese Group entities. At 31 December 2018 the fair value of this swap was $(4)m (2017: $(4)m; 2016: $7m), the swapped US dollar:Chinese renminbi rate was 6.68 and the Chinese renminbi interest rate on the swap was 4.796%. A further $151m Chinese renminbi to US dollar swap matured in December 2018 when the inter-company loan it was hedging was repaid (fair value 2017: $11m; 2016: $29m). Hedge ineffectiveness recognised on swaps designated in a net investment hedge during the period was $nil. 2 Instruments designated in a cash flow hedge are cross currency swaps with total nominal amounts of euro 2.2bn that effectively convert our fixed rate euro 500m 0.25%, euro 900m 0.75% and euro 800m 1.25% callable bonds repayable in 2021, 2024 and 2028 respectively into fixed rate USD borrowings and hedge the exposure to foreign exchange spot rate and interest rate risk. The fair value of these swaps at 31 December 2018 was $101m (2017: $197m; 2016: $(115)m). The swap maturity dates match the underlying bond maturity dates and the average swapped euro:US dollar exchange rate and swapped interest rates are 1.14 and 2.7% respectively. 3 Cross currency swaps designated in a fair value hedge refers to a cross currency interest rate swap that hedges a designated euro 300m portion of our euro 750m 0.875% 2021 non-callable bond against exposure to movements in the euro:US dollar exchange rate. The maturity date of the cross currency interest rate swap is in 2021 and the swapped euro:US dollar exchange rate and swapped interest rate are 1.09 and three month US dollar libor + 1.27% respectively.
Schedule of interest rates on derivative financial instruments	Derivatives (0.4) % to 3.2 % 1.7 % to 2.2 % 1.5 % to 2.2 %

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2018
Inventories
Schedule of inventory	$m $m $m Raw materials and consumables 794 1,024 811 Inventories in process 1,450 1,208 1,060 Finished goods and goods for resale 646 803 463 Inventories 2,890 3,035 2,334

Current trade and other recei_2

Current trade and other receivables (Tables)	12 Months Ended
	Dec. 31, 2018
Current trade and other receivables
Schedule of trade, other current receivables and prepayments	$m $m $m Amounts due within one year Trade receivables 3,033 2,818 2,625 Less: Amounts provided for doubtful debts (Note 27) (38) (16) (42) 2,995 2,802 2,583 Other receivables 1,143 793 852 Prepayments and accrued income 1,363 1,148 879 5,501 4,743 4,314 Amounts due after more than one year Other receivables – 156 140 Prepayments and accrued income 73 110 119 73 266 259 Trade and other receivables 5,574 5,009 4,573

Cash and cash equivalents (Tabl

Cash and cash equivalents (Tables)	12 Months Ended
	Dec. 31, 2018
Cash and cash equivalents.
Summary of cash and cash equivalents	$m $m $m Cash at bank and in hand 893 784 782 Short-term deposits 3,938 2,540 4,236 Cash and cash equivalents 4,831 3,324 5,018 Unsecured bank overdrafts (160) (152) (94) Cash and cash equivalents in the cash flow statement 4,671 3,172 4,924
Summary of non-cash and other movements within operating activities	$m $m $m Gains on disposal of short-term investments – (161) – Net gains/(losses) on disposal of non-current assets 8 (24) (29) Changes in fair value of put option (Acerta Pharma) (113) (209) (41) Share-based payments charge for period 219 220 241 Settlement of share plan awards (212) (254) (281) Pension contributions (174) (157) (192) Pension charges recorded in operating profit 128 74 74 Foreign exchange and other (146) (13) (264) Total operating activities non-cash and other movements (290) (524) (492)

Interest-bearing loans and bo_2

Interest-bearing loans and borrowings (Tables)	12 Months Ended
	Dec. 31, 2018
Interest-bearing loans and borrowings
Schedule of interest bearing loans and borrowings	Repayment dates $m $m $m Current liabilities Bank overdrafts On demand 160 152 94 Bank collateral 1 384 513 – Finance leases – 5 87 5.9% Callable bond US dollars 2017 – – 1,769 Floating rate notes US dollars 2018 – 399 – 1.75% Callable bond US dollars 2018 – 998 – 1.95% Callable bond US dollars 2019 999 – – Other loans (Commercial paper) Within one year 211 180 357 Total 1,754 2,247 2,307 Non-current liabilities Finance leases – – 6 Floating rate notes US dollars 2018 – – 399 1.75% Callable bond US dollars 2018 – – 998 1.95% Callable bond US dollars 2019 – 999 998 2.375% Callable bond US dollars 2020 1,594 1,591 1,589 0.875% Non-callable bond euros 2021 854 890 782 0.25% Callable bond euros 2021 570 594 522 Floating rate notes US dollars 2022 250 249 – 2.375% Callable bond US dollars 2022 994 992 – 7% Guaranteed debentures US dollars 2023 325 347 350 Floating rate notes US dollars 2023 400 – – 3.5% Callable bond US dollars 2023 845 – – 0.75% Callable bond euros 2024 1,022 1,067 937 3.375% Callable bond US dollars 2025 1,980 1,978 1,976 3.125% Callable bond US dollars 2027 743 742 – 1.25% Callable bond euros 2028 903 941 827 4% Callable bond US dollars 2029 992 – – 5.75% Non-callable bond pounds sterling 2031 443 468 426 6.45% Callable bond US dollars 2037 2,721 2,720 2,719 4% Callable bond US dollars 2042 987 987 986 4.375% Callable bond US dollars 2045 979 979 979 4.375% Callable bond US dollars 2048 736 – – Other loans US dollars 21 16 7 Total 17,359 15,560 14,501 1. In 2017 the Group changed its accounting policy such that collateral receipts were included in interest bearing loans and borrowings. Previously these were included in short term deposits.
Schedule of reconciliation of interest bearing loans and borrowings	Current Non-current loans and loans and borrowings borrowings Total $m $m $m At 31 December 2017 2,247 15,560 17,807 Changes from financing cash flows Issue of loans – 2,971 2,971 Repayment of loans (1,400) – (1,400) Movement in short-term borrowings (98) – (98) Total changes in liabilities arising on financing activities (1,498) 2,971 1,473 Movement in overdrafts 8 – 8 Transfers 999 (999) – Exchange and other movements (2) (173) (175) At 31 December 2018 1,754 17,359 19,113
Schedule of comparison of carrying values and fair values of interest-bearing loans and borrowings	: Instruments in a Instruments Instruments Total fair value hedge designated designated in Amortised carrying Fair relationship 1 at fair value 2 cash flow hedge 3 cost 4 value value $m $m $m $m $m $m 2016 Overdrafts – – – 94 94 94 Finance leases due within one year – – – 87 87 87 Finance leases due after more than one year – – – 6 6 6 Loans due within one year 770 – – 1,356 2,126 2,161 Loans due after more than one year 598 350 2,286 11,261 14,495 15,826 Total at 31 December 2016 1,368 350 2,286 12,804 16,808 18,174 2017 Overdrafts – – – 152 152 152 Finance leases due within one year – – – 5 5 5 Loans due within one year 596 – – 1,494 2,090 2,092 Loans due after more than one year 304 347 2,602 12,307 15,560 17,031 Total at 31 December 2017 900 347 2,602 13,958 17,807 19,280 2018 Overdrafts – – – 160 160 160 Finance leases due within one year – – – – – – Loans due within one year – – – 1,594 1,594 1,587 Loans due after more than one year 346 325 2,495 14,193 17,359 17,841 Total at 31 December 2018 346 325 2,495 15,947 19,113 19,588 1 Instruments designated as hedged items in a fair value hedge relationship relate to a designated euro 300m portion of our euro 750m 0.875% 2021 non-callable bond. The accumulated amount of fair value hedge adjustments to the bond is a loss of $19m and hedge ineffectiveness recognised during the period was nil. 2 Instruments designated at fair value through profit or loss include the US dollar 7% guaranteed debentures repayable in 2023. 3 Instruments designated in a cash flow hedge include the euro 500m 0.25%, euro 900m 0.75% and euro 800m 1.25% Callable bonds repayable in 2021, 2024 and 2028 respectively. Hedge ineffectiveness recognised during the period was nil. 4 Included within borrowings held at amortised cost are amounts designated as hedges of net investments in foreign operations of $954m at 31 December 2018 (2017: $1,054m; 2016: $1,208m). The fair value of these borrowings was $1,106m at 31 December 2018 (2017: $1,206m; 2016: $1,400m). These borrowings comprise our £350m 5.75% 2031 non-callable bond and a euro 450m portion of our euro 750m 0.875% 2021 non-callable bond and have been designated as hedges of net investments in the Group’s UK and Euro operations respectively. Also included within borrowings held at amortised cost is the Group’s $1bn 1.95% 2019 bond, $750m of which has been swapped to Japanese yen. The US dollar to Japanese yen cross currency interest rate swap has been designated as a hedge of net investments in the Group’s Japanese operations. Hedge ineffectiveness recognised on borrowings designated in a net investment hedge during the period was nil.
Schedule of interest rates used to discount future cash flows for fair value adjustments	Loans and borrowings 2.3 % to 2.4 % 1.9 % to 2.2 % 1.5 % to 2.2 %

Trade and other payables (Table

Trade and other payables (Tables)	12 Months Ended
	Dec. 31, 2018
Trade and other payables
Schedule of Trade and other payables	$m $m $m Current liabilities Trade payables 1,720 2,285 1,680 Value added and payroll taxes and social security 204 243 240 Rebates, chargebacks, returns and other revenue accruals 4,043 3,264 3,601 Clinical trial accruals 993 922 696 Other accruals 3,951 3,324 2,714 Externalisation revenue contract liabilities 92 – – Contingent consideration 867 555 527 Other payables 971 1,048 1,028 Total 12,841 11,641 10,486 Non-current liabilities Accruals 7 143 292 Externalisation revenue contract liabilities 78 – – Contingent consideration 4,239 4,979 4,930 Acerta Pharma put option liability (Note 25) 1,838 1,823 1,901 Other payables 608 895 2,365 Total 6,770 7,840 9,488
Schedule of Contingent consideration	$m $m $m At 1 January 5,534 5,457 6,411 Settlements (349) (434) (293) Revaluations (495) 109 (1,158) Discount unwind (Note 3) 416 402 497 At 31 December 5,106 5,534 5,457
Schedule of maximum development and sales milestones payable under outstanding contingent consideration	Nature of Maximum future milestones Acquisitions Year contingent consideration $m Spirogen Milestones 216 Amplimmune Milestones 275 Omthera Milestones 120 Pearl Therapeutics Milestones 390 BMS’s share of Global Diabetes Alliance 1 Milestones and royalties 600 Almirall 1 Milestones and royalties 620 Definiens 1 Milestones 150 1 These contingent consideration liabilities have been designated as the hedge instrument in a net investment hedge of foreign currency risk arising on the Group’s underlying US dollar net investments held in non-US dollar denominated subsidiaries. Exchange differences on the retranslation of the contingent consideration liability are recognised in Other comprehensive income to the extent that the hedge is effective. Any ineffectiveness is taken to profit.

Provisions (Tables)

Provisions (Tables)	12 Months Ended
	Dec. 31, 2018
Provisions.
Schedule of other provision	Employee Other Severance Environmental benefits Legal provisions Total $m $m $m $m $m $m At 1 January 2016 403 67 158 357 257 1,242 Charge for year 578 11 6 223 170 988 Cash paid (433) (19) (21) (126) (87) (686) Reversals (40) – – – (39) (79) Exchange and other movements (21) – – (16) (10) (47) At 31 December 2016 487 59 143 438 291 1,418 Charge for year 225 11 30 281 55 602 Cash paid (324) (20) (43) (48) (37) (472) Reversals (75) – (10) (40) (44) (169) Exchange and other movements 45 9 6 23 6 89 At 31 December 2017 358 59 126 654 271 1,468 Charge for year 94 65 1 11 30 201 Cash paid (152) (24) (9) (232) (28) (445) Reversals (58) – – (230) (28) (316) Exchange and other movements (16) (3) 1 (5) 6 (17) At 31 December 2018 226 97 119 198 251 891
Schedule of maturity period	$m $m $m Due within one year 506 1,121 1,065 Due after more than one year 385 347 353 Total 891 1,468 1,418

Post-retirement benefits (Table

Post-retirement benefits (Tables)	12 Months Ended
	Dec. 31, 2018
Post-retirement benefits
Schedule of financial assumptions for major defined benefit schemes	UK Rest of Group UK Rest of Group Inflation assumption 3.2 % 1.1 % 3.1 % 2.2 % Rate of increase in salaries – 1 2.0 % – 1 3.1 % Rate of increase in pensions in payment 3.0 % 1.1 % 2.9 % 1.1 % Discount rate – defined benefit obligation 2.8 % 2 3.0 % 2.5 % 2 3.0 % Discount rate – interest cost 2 2.4 % 3 2.5 % 2.5 % 3 2.7 % Discount rate – service cost 2 2.5 % 3 2.9 % 2.7 % 3 3.5 % 1 Pensionable pay frozen at 30 June 2010 levels following UK fund changes. 2 Group defined benefit obligation as at 31 December 2018 calculated using discount rates based on market conditions as at 31 December 2018. 3 2018 interest costs and service costs calculated using discount rates based on market conditions as at 31 December 2017.
Schedule of demographic assumptions for major defined benefit schemes	Life expectancy assumption for a male member retiring at age 65 Country UK 23.2 24.7 23.7 24.8 US 22.2 22.8 20.8 23.0 Sweden 21.9 23.6 21.9 23.6
Schedule of risks associated with the Company's defined benefit pensions	Risk Description Mitigation Volatile asset returns The Defined Benefit Obligation (DBO) is calculated using a discount rate set with reference to AA-rated corporate bond yields; asset returns that differ from the discount rate will create an element of volatility in the solvency ratio. The UK Pension Fund holds a significant proportion of assets (around 72.5%) in a growth portfolio. Although these growth assets are expected to outperform AA-rated corporate bonds in the long term, they can lead to volatility and mismatching risk in the short term. The allocation to growth assets is monitored to ensure it remains appropriate given the UK Pension Fund’s long-term objectives. In order to mitigate investment risk, the Trustee invests in a suitably diversified range of asset classes, return drivers and investment managers. The investment strategy will continue to evolve to further improve the expected risk/return profile as opportunities arise. The Trustee has hedged the majority (over 80%) of unintended non-sterling, overseas currency risk within the UK Pension Fund assets. Changes in bond yields A decrease in corporate bond yields will increase the present value placed on the DBO for accounting purposes. The interest rate hedge of the UK Pension Fund is implemented via holding gilts and swaps of appropriate duration and set at approximately 85% of total assets and protects to some degree against falls in long-term interest rates (approximately 80% hedged at the end of 2017). There is a framework in place to gradually increase the level of interest rate hedging to 100% of assets over time, via a combination of liability management exercises and additional market-based hedging. There are some differences in the bonds and instruments held by the UK Pension Fund to hedge interest rate risk on the statutory and long-term funding basis (gilts and swaps) and the bonds analysed to set the DBO discount rate on an accounting basis (AA corporate bonds). As such, there remains some mismatching risk on an accounting basis should yields on gilts and swaps diverge compared to AA corporate bonds. Inflation risk A significant proportion of the DBO is indexed in line with price inflation (mainly inflation as measured by the UK Retail Price Index (RPI) but also for some members a component of pensions is indexed by the UK Consumer Price Index (CPI)) and higher inflation will lead to higher liabilities (although, in most cases, this is capped at an annual increase of 5%). The UK Pension Fund holds index-linked gilts and derivative instruments such as swaps. The inflation hedge of the UK Pension Fund is set at approximately 88% of total assets and protects to some degree against higher-than-expected inflation increases on the DBO (approximately 85% hedged at the end of 2017). There is a framework in place to gradually increase the level of inflation hedging to 100% of assets over time, via a combination of liability management exercises and additional market-based hedging. Life expectancy The majority of the UK Pension Fund’s obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the liabilities. The UK Pension Fund entered into a longevity swap during 2013 which provides hedging against the longevity risk of increasing life expectancy over the next 75 years for around 10,000 of the UK Pension Fund’s current pensioners and covers $2.1bn of the UK Pension Fund’s liabilities. A one-year increase in life expectancy will result in a $217m increase in pension fund assets.
Schedule of fair values of scheme assets	Scheme assets UK Rest of Group Total Quoted Unquoted Quoted Unquoted Quoted Unquoted Total $m $m $m $m $m $m $m Government bonds 1 2,056 – 79 45 2,135 45 2,180 Corporate bonds 2 – 37 849 – 849 37 886 Derivatives 3 – (237) (12) 26 (12) (211) (223) Investment funds: Listed Equities – 1,174 371 421 371 1,595 1,966 Investment funds: Global Macro Hedge 4 – 1,004 – 396 – 1,400 1,400 Investment funds: Diversified growth/Multi Strategy 4 – 1,921 – 416 – 2,337 2,337 Investment funds: Multi-asset credit 4 – 633 – 268 – 901 901 Cash and cash equivalents 40 121 23 23 63 144 207 Other – – 2 266 2 266 268 Total fair value of scheme assets 5 2,096 4,653 1,312 1,861 3,408 6,514 9,922 UK Rest of Group Total Quoted Unquoted Quoted Unquoted Quoted Unquoted Total $m $m $m $m $m $m $m Government bonds 1 1,725 – 199 – 1,924 – 1,924 Corporate bonds 2 – – 870 – 870 – 870 Derivatives 3 – (189) 3 145 3 (44) (41) Investment funds: Listed Equities – 1,197 201 190 201 1,387 1,588 Investment funds: Global Macro Hedge 4 – 733 – 280 – 1,013 1,013 Investment funds: Diversified growth/Multi Strategy 4 – 1,712 – 449 – 2,161 2,161 Investment funds: Multi-asset credit 4 – 596 – 191 – 787 787 Cash and cash equivalents 39 176 81 5 120 181 301 Other – – 1 250 1 250 251 Total fair value of scheme assets 5 1,764 4,225 1,355 1,510 3,119 5,735 8,854 1 Predominantly developed markets in nature. 2 Predominantly developed markets in nature and investment grade (AAA-BBB). 3 Includes interest rate swaps, inflation swaps, longevity swap, equity total return swaps and other contracts. 4 Investment Funds are pooled, commingled vehicles, whereby the pension scheme owns units in the fund, alongside other investors. The pension schemes invest in a number of Investment Funds, including Listed Equities (primarily developed markets with some emerging markets across the world), Multi-asset credit (bonds and debt including a range of investment grade and non-investment grade credit across the world), Diversified growth/Multi Strategy (multi-asset exposure both across and within traditional and alternative asset classes), and Global Macro Hedge funds (Discretionary/Fundamental Macro and managed futures). 5 Included in scheme assets is $nil (2017: $nil) of the Group’s own assets.
Schedule of post-retirement scheme deficit recognised in Consolidated Statement of Financial Position, scheme assets and scheme obligations	Scheme obligations UK Rest of Group Total UK Rest of Group Total $m $m $m $m $m $m Present value of scheme obligations in respect of: Active membership (751) (1,468) (2,219) (814) (1,018) (1,832) Deferred membership (1,665) (1,215) (2,880) (1,998) (1,688) (3,686) Pensioners (4,636) (1,630) (6,266) (5,220) (1,767) (6,987) Total value of scheme obligations (7,052) (4,313) (11,365) (8,032) (4,473) (12,505) Net deficit in the scheme UK Rest of Group Total UK Rest of Group Total $m $m $m $m $m $m Total fair value of scheme assets 5,989 2,865 8,854 6,749 3,173 9,922 Total value of scheme obligations (7,052) (4,313) (11,365) (8,032) (4,473) (12,505) Deficit in the scheme as recognised in the (1,063) (1,448) (2,511) (1,283) (1,300) (2,583) Fair value of scheme assets UK Rest of Group Total UK Rest of Group Total $m $m $m $m $m $m At beginning of year 6,749 3,173 9,922 6,137 2,979 9,116 Interest income on scheme assets 156 79 235 159 81 240 Expenses (5) (9) (14) (6) (12) (18) Actuarial gains (351) (123) (474) 45 188 233 Exchange and other adjustments (349) (23) (372) 596 176 772 Employer contributions 143 31 174 123 34 157 Participant contributions 2 1 3 3 – 3 Benefits paid (356) (264) (620) (308) (273) (581) Scheme assets’ fair value at end of year 5,989 2,865 8,854 6,749 3,173 9,922 The actual return on the plan assets was a loss of $239m (2017: gain of $473m). Movement in post-retirement scheme obligations UK Rest of Group Total UK Rest of Group Total $m $m $m $m $m $m Present value of obligations in scheme at beginning of year (8,032) (4,473) (12,505) (7,118) (4,184) (11,302) Current service cost (23) (51) (74) (23) (64) (87) Past service (cost)/credit (34) (6) (40) (39) 70 31 Participant contributions (2) (1) (3) (3) – (3) Benefits paid 356 264 620 308 273 581 Interest expense on post-retirement scheme obligations (185) (102) (287) (184) (105) (289) Actuarial losses 472 (44) 428 (272) (202) (474) Exchange and other adjustments 396 100 496 (701) (261) (962) Present value of obligations in scheme at end of year (7,052) (4,313) (11,365) (8,032) (4,473) (12,505) The obligations arise from the following plans: UK Rest of Group Total UK Rest of Group Total $m $m $m $m $m $m Funded – pension schemes (7,034) (3,584) (10,618) (8,013) (3,698) (11,711) Funded – post-retirement healthcare – (230) (230) – (245) (245) Unfunded – pension schemes – (483) (483) – (515) (515) Unfunded – post-retirement healthcare (18) (16) (34) (19) (15) (34) Total (7,052) (4,313) (11,365) (8,032) (4,473) (12,505)
Schedule of amounts charged to Consolidated Statement of Comprehensive Income, in respect of defined benefit schemes	UK Rest of Group Total UK Rest of Group Total $m $m $m $m $m $m Operating profit Current service cost (23) (51) (74) (23) (64) (87) Past service (cost)/credit (34) (6) (40) (39) 70 31 Expenses (5) (9) (14) (6) (12) (18) Total charge to operating profit (62) (66) (128) (68) (6) (74) Finance expense Interest income on scheme assets 156 79 235 159 81 240 Interest expense on post-retirement scheme obligations (185) (102) (287) (184) (105) (289) Net interest on post-employment defined benefit plan liabilities (29) (23) (52) (25) (24) (49) Charge before taxation (91) (89) (180) (93) (30) (123) Other comprehensive income Difference between the actual return and the expected return (351) (123) (474) 45 188 233 Experience gains/(losses) arising on the (26) (46) (72) (50) (4) (54) Changes in financial assumptions underlying the present value 389 4 393 (261) (214) (475) Changes in demographic assumptions 109 (2) 107 39 15 54 Remeasurement of the defined benefit liability 121 (167) (46) (227) (15) (242)
Schedule of rate sensitivities of significant actuarial assumptions	+0.5% −0.5% +0.5% −0.5% Discount rate UK ($m) 520 (586) 618 (703) US ($m) 78 (83) 95 (101) Sweden ($m) 152 (174) 147 (168) Total ($m) 750 (843) 860 (972) +0.5% −0.5% +0.5% −0.5% Inflation rate 1 UK ($m) (444) 421 (526) 495 US ($m) – – – – Sweden ($m) (171) 151 (165) 146 Total ($m) (615) 572 (691) 641 +0.5% −0.5% +0.5% −0.5% Rate of increase in salaries UK ($m) – – – – US ($m) – – – – Sweden ($m) (52) 48 (51) 47 Total ($m) (52) 48 (51) 47 +1 year −1 year +1 year −1 year Mortality rate UK ($m) (301) 2 302 3 (337) 337 US ($m) (24) 24 (26) 27 Sweden ($m) (68) 68 (63) 64 Total ($m) (393) 394 (426) 428 1 Rate of increase in pensions in payment follows inflation. 2 Of the $301m increase, $217m is covered by the longevity swap. Of the $302m decrease, $212m is covered by the longevity swap.

Reserves (Tables)

Reserves (Tables)	12 Months Ended
	Dec. 31, 2018
Reserves
Reconciliation of reserves	$m $m $m Cumulative translation differences included within retained earnings At 1 January (1,017) (2,028) (372) Foreign exchange arising on consolidation (450) 536 (1,050) Exchange adjustments on goodwill (recorded against other reserves) (12) 18 (11) Foreign exchange arising on designating borrowings in net investment hedges 1 (520) 505 (591) Fair value movement on derivatives designated in net investment hedges 2 (8) (48) (4) Net exchange movement in retained earnings (990) 1,011 (1,656) At 31 December (2,007) (1,017) (2,028) 1. Foreign exchange arising on designated borrowings in net investment hedges includes $45m in respect of designated bonds and $(565)m in respect of designated contingent consideration liabilities. The change in value of designated bonds relates to $25m in respect of our £350m 5.75% 2031 non-callable bond and $20m in respect of a €450m portion of our €750m 0.875% 2021 non-callable bond. The change in value of designated contingent consideration liabilities relates to $(358)m in respect of BMS’ share of Global Diabetes Alliance, $(32)m in respect of Almirall and $(6)m in respect of Definiens and $(169)m in relation to the put option liability in Acerta Pharma. 2. Fair value movement on derivatives designated in net investment hedges comprises $(13)m in respect of our $750m Japanese yen to US dollar cross currency interest rate swap, $(1)m in respect of our $69m Chinese renminbi to US dollar cross currency interest rate swap and $6m in respect of our matured $151m Chinese renminbi to US dollar cross currency interest rate swap.

Share capital of the Company (T

Share capital of the Company (Tables)	12 Months Ended
	Dec. 31, 2018
Share capital of the Company
Summary of classes of share capital	Allotted, called-up and fully paid $m $m $m Issued Ordinary Shares ($0.25 each) 317 317 316 Redeemable Preference Shares (£1 each – £50,000) – – – At 31 December 317 317 316
Summary of movement of ordinary shares	No. of shares At 1 January 1,266,221,605 1,265,229,424 1,264,122,670 Issues of shares (share schemes) 817,831 992,181 1,106,754 At 31 December 1,267,039,436 1,266,221,605 1,265,229,424

Dividends to shareholders (Tabl

Dividends to shareholders (Tables)	12 Months Ended
	Dec. 31, 2018
Dividends to shareholders
Summary of dividends to shareholders	Per share Per share Per share $m $m $m Second interim (March 2018) $ $ $ 2,402 2,404 2,402 Interim (September 2018) $ $ $ 1,139 1,139 1,138 Total $ $ $ 3,541 3,543 3,540
Reconciliation of dividends paid	$m $m $m Dividends charged to equity 3,541 3,543 3,540 Exchange losses/(gains) on payment of dividend 10 (4) 3 Hedge contracts relating to payment of dividends (cash flow statement) (67) (20) 18 Dividends paid (cash flow statement) 3,484 3,519 3,561

Non-controlling interests (Tabl

Non-controlling interests (Tables)	12 Months Ended
	Dec. 31, 2018
Non-controlling interests.
Summarised financial information for non-controlling interests	following summarised financial information, for Acerta Pharma B.V. and its subsidiaries, is presented on a stand-alone basis since the acquisition date, and before the impact of Group-related adjustments, some of which are incorporated into this calculation of the loss attributable to the non-controlling interests: $m $m $m Total Revenue – – – (Loss)/profit after tax (9) 412 (212) Other comprehensive income – – – Total comprehensive (loss)/income (9) 412 (212) $m $m $m Non-current assets 16 73 Current assets 526 79 Total assets 542 152 Current liabilities (63) (171) Total liabilities (63) (171) Net assets/(liabilities) 479 (19) $m $m $m Net cash inflow/(outflow) from operating activities 7 5 (223) Net cash (outflow)/inflow from investing activities (4) – 139 Increase/(decrease) in cash and cash equivalents in the year 3 5 (84)

Acquisitions of business oper_2

Acquisitions of business operations (Tables)	12 Months Ended
	Dec. 31, 2018
Acerta Pharma Acquisition
Disclosure of detailed information about business combination
Summary of fair values assigned to business combination	Fair value $m Non-current assets Intangible assets (Note 9) 7,307 Current assets 253 Current liabilities (90) Non-current liabilities Deferred tax liabilities (1,777) Total net assets acquired 5,693 Non-controlling interests (1,903) Goodwill (Note 8) 19 Fair value of total consideration 3,809 Less: fair value of deferred consideration (1,332) Total upfront consideration 2,477 Less: cash and cash equivalents acquired (94) Net cash outflow 2,383

Financial risk management obj_2

Financial risk management objectives and policies (Tables)	12 Months Ended
	Dec. 31, 2018
Financial risk
Schedule of liquidity risk	Bank Total Total overdrafts Trade non-derivative Cross- derivative and other Finance and other financial Interest currency financial loans Bonds leases payables instruments rate swaps swaps instruments Total $m $m $m $m $m $m $m $m $m Within one year 455 2,374 42 10,566 13,437 (54) 32 (22) 13,415 In one to two years – 1,921 24 4,986 6,931 (19) 12 (7) 6,924 In two to three years – 1,500 16 1,144 2,660 (15) (216) (231) 2,429 In three to four years – 2,080 10 1,666 3,756 (15) 47 32 3,788 In four to five years 7 1,756 3 877 2,643 (15) 86 71 2,714 In more than five years – 14,796 – 3,624 18,420 (30) 320 290 18,710 462 24,427 95 22,863 47,847 (148) 281 133 47,980 Effect of interest (4) (8,111) (2) – (8,117) 148 (351) (203) (8,320) Effect of discounting, fair values and issue costs – (59) – (2,889) (2,948) (82) (93) (175) (3,123) 31 December 2016 458 16,257 93 19,974 36,782 (82) (163) (245) 36,537 Bank Total Total overdrafts Trade non-derivative Cross- derivative and other Finance and other financial Interest currency financial loans Bonds leases payables instruments rate swaps swaps 1 instruments 1 Total $m $m $m $m $m $m $m $m $m Within one year 859 1,985 5 11,840 14,689 (10) 32 22 14,711 In one to two years – 1,564 – 1,976 3,540 (12) (190) (202) 3,338 In two to three years – 2,144 – 1,586 3,730 (12) 53 41 3,771 In three to four years 16 2,000 – 3,240 5,256 (12) (11) (23) 5,233 In four to five years – 1,736 – 1,112 2,848 (12) 37 25 2,873 In more than five years – 15,575 – 2,808 18,383 (12) 31 19 18,402 875 25,004 5 22,562 48,446 (70) (48) (118) 48,328 Effect of interest (14) (7,969) – – (7,983) 70 (504) (434) (8,417) Effect of discounting, fair values and issue costs – (94) – (3,081) (3,175) (50) 93 43 (3,132) 31 December 2017 861 16,941 5 19,481 37,288 (50) (459) (509) 36,779 1 The 2017 disclosures have been revised with the within one year outflow reducing to $32m from $420m, the in one to two years inflow increasing to $190m from $100m, the in two to three years outflow reducing to $53m from $295m, the in three to four years inflow reducing to $11m from $747m, the in four to five years outflow increasing to $37m from $34m and the in more than five years outflow increasing to $31m from $26m. Bank Total Total overdrafts Trade non-derivative Cross- derivative and other Finance and other financial Interest currency financial loans Bonds leases payables instruments rate swaps swaps instruments Total $m $m $m $m $m $m $m $m $m Within one year 774 1,629 – 13,029 15,432 (10) (172) (182) 1 15,250 In one to two years 7 2,210 – 1,688 3,905 (9) 57 48 2 3,953 In two to three years 14 2,002 – 833 2,849 (9) 33 24 3 2,873 In three to four years – 1,813 – 3,340 5,153 (9) 37 28 4 5,181 In four to five years – 2,069 – 776 2,845 (9) 37 28 5 2,873 In more than five years – 17,405 – 2,084 19,489 – 69 69 6 19,558 795 27,128 – 21,750 49,673 (46) 61 15 49,688 Effect of interest (2) (8,669) – – (8,671) 46 (304) (258) (8,929) Effect of discounting, fair values and issue costs (17) (122) – (2,139) (2,278) (40) (83) (123) (2,401) 31 December 2018 776 18,337 – 19,611 38,724 (40) (326) (366) 38,358 1. Total derivative financial instruments within one year excludes Other current derivatives of $(18)m (2017: $5m; 2016: $10m). Total derivative financial instruments within one year and Other current derivatives reflect receivables of $10.207bn (2017: $6.738bn) and payables of $10.007bn (2017: $6.765bn). 2. Total derivative financial instruments in one to two years reflects receivables of $35m (2017: $803m) and payables of $83m (2017: $601m). 3. Total derivative financial instruments in two to three years reflects receivables of $950m (2017: $39m) and payables of $974m (2017: $80m). 4. Total derivative financial instruments in three to four years reflects receivables of $30m (2017: $994m) and payables of $58m (2017: $971m). 5. Total derivative financial instruments in four to five years reflects receivables of $30m (2017: $34m) and payables of $58m (2017: $59m). 6. Total derivative financial instruments in more than five years reflects receivables of $2.084bn (2017: $2.198bn) and payables of $2.153bn (2017: $2.217bn).
Schedule of market risk	Fixed rate Floating rate Total Fixed rate Floating rate Total Fixed rate Floating rate Total $m $m $m $m $m $m $m $m $m Financial liabilities Interest-bearing loans and borrowings Current 999 755 1,754 404 1,843 2,247 1,086 1,221 2,307 Non-current 16,038 1,321 17,359 14,608 952 15,560 13,154 1,347 14,501 Total 17,037 2,076 19,113 15,012 2,795 17,807 14,240 2,568 16,808 Financial assets Fixed deposits 40 – 40 – 80 80 – 37 37 Cash and cash equivalents – 4,831 4,831 – 3,324 3,324 – 5,018 5,018 Total 40 4,831 4,871 – 3,404 3,404 – 5,055 5,055
Schedule of foreign currency risk	. Interest rates Exchange rates 31 December 2016 +1% −1% +10% −10% Increase/(decrease) in fair value of financial instruments ($m) 1,249 (1,390) 180 (180) Impact on profit: (loss)/gain ($m) – – (24) 24 Impact on equity: gain/(loss) ($m) – – 204 (204) Interest rates Exchange rates 31 December 2017 +1% −1% +10% −10% Increase/(decrease) in fair value of financial instruments ($m) 1,329 (1,293) 198 (198) Impact on profit: (loss)/gain ($m) – – (123) 123 Impact on equity: gain/(loss) ($m) – – 321 (321) Interest rates Exchange rates 31 December 2018 +1% −1% +10% −10% Increase/(decrease) in fair value of financial instruments ($m) 1,130 (1,267) (146) 161 Impact on profit: (loss)/gain ($m) – – (299) 348 Impact on equity: gain/(loss) ($m) – – 153 (187)
Credit risk assets
Financial risk
Schedule of credit risk	Current assets $m $m $m Cash at bank and in hand 893 784 782 Money market liquidity fund 3,435 1,150 3,440 Collateralised repurchase agreement 400 1,150 950 Bank collateral 1 – – (242) Other short-term cash equivalents 103 240 88 Total Cash and cash equivalents (Note 16) 4,831 3,324 5,018 Fixed income securities at fair value through profit and loss (Note 11) 809 – – Fixed income securities available for sale (Note 11) – 1,150 847 Fixed deposits (Note 11) 40 80 37 Total derivative financial instruments (Note 12) 258 28 27 Current assets subject to credit risk 5,938 4,582 5,929 1. In 2017 the Group changed its accounting policy such that collateral receipts were included in interest bearing loans and borrowings. Non-current assets $m $m $m Equity securities at fair value through other comprehensive income (Note 11) 833 – – Equity securities available for sale (Note 11) – 933 727 Derivative financial instruments (Note 12) 157 504 343 Non-current assets subject to credit risk 990 1,437 1,070
Trade receivables
Financial risk
Schedule of credit risk	0-90 days 90-180 days Over 180 days 31 December 2018 Current past due past due past due Total Expected loss rate % 0.75 % 10 % 47 % Gross carrying amount 2,854 82 27 70 3,033 Loss allowance 1 1 3 33 38 0-90 days 90-180 days Over 180 days 1 January 2018 Current past due past due past due Total Expected loss rate % 0.75 % 5 % 33 % Gross carrying amount 2,490 262 31 35 2,818 Loss allowance 1 2 1 12 16 Trade receivables are written off where there is no reasonable expectation of recovery. Impairment losses on trade receivables are presented as net impairment losses within operating profit, any subsequent recoveries are credited against the same line. In the US, sales to three wholesalers accounted for approximately 88% of US sales (2017: three wholesalers accounted for approximately 60%; 2016: three wholesalers accounted for approximately 83%). The ageing of trade receivables at the reporting date was: $m $m $m Not past due 2,853 2,488 2,559 Past due 0–90 days 81 260 14 Past due 90–180 days 24 31 – Past due > 180 days 37 23 10 2,995 2,802 2,583 $m $m $m Movements in provisions for trade receivables At 1 January 16 42 52 Income statement 22 (26) – Amounts utilised, exchange and other movements – – (10) At 31 December 38 16 42

Employee costs and share plan_2

Employee costs and share plans for employees (Tables)	12 Months Ended
	Dec. 31, 2018
Share plans
Schedules of employee numbers	Employees UK 7,200 6,900 7,000 Continental Europe 14,800 14,500 14,700 The Americas 16,700 16,300 17,800 Asia, Africa & Australasia 24,500 22,300 22,000 Continuing operations 63,200 60,000 61,500
Schedule of employee costs	$m $m $m Salaries 5,370 5,004 4,664 Social security costs 626 570 584 Pension costs 469 378 426 Other employment costs 505 534 610 Total 6,970 6,486 6,284
AstraZeneca 2014 Performance Share Plan
Share plans
Schedule of shares awarded	Shares WAFV 1 WAFV 1 ʼ 000 pence $ Shares awarded in March 2016 2,673 1962 28.19 Shares awarded in May 2016 24 1935 28.64 Shares awarded in August 2016 67 2536 33.58 Shares awarded in March 2017 2,359 2440 30.88 Shares awarded in May 2017 10 2607 34.20 Shares awarded in August 2017 44 2234 29.11 Shares awarded in March 2018 3,400 2427 34.62 Shares awarded in May 2018 18 2651 36.42 Shares awarded in August 2018 92 2982 38.46
AstraZeneca Investment Plan
Share plans
Schedule of shares awarded	Shares WAFV WAFV ʼ 000 pence $ Shares awarded in March 2016 84 3923 56.38
AstraZeneca Global Restricted Stock Plan
Share plans
Schedule of shares awarded	Shares WAFV WAFV ʼ 000 pence $ Shares awarded in March 2016 2,695 3923 56.38 Shares awarded in August 2016 122 5071 67.16 Shares awarded in March 2017 2,502 4880 61.76 Shares awarded in May 2017 78 5214 68.40 Shares awarded in August 2017 31 4468 58.22 Shares awarded in November 2017 77 4942 66.24 Shares awarded in March 2018 4,474 4853 69.24 Shares awarded in August 2018 40 5964 76.92 Shares awarded in November 2018 3 6300 82.86
AstraZeneca Restricted Share Plan
Share plans
Schedule of shares awarded	Shares WAFV WAFV ʼ 000 pence $ Shares awarded in March 2016 809 3923 56.38 Shares awarded in May 2016 335 3869 57.28 Shares awarded in August 2016 37 5071 67.16 Shares awarded in November 2016 14 4233 53.42 Shares awarded in February 2017 205 4293 55.50 Shares awarded in March 2017 134 4880 61.76 Shares awarded in May 2017 8 5214 68.40 Shares awarded in August 2017 26 4468 58.22 Shares awarded in September 2017 31 4765 65.60 Shares awarded in November 2017 23 4942 66.24 Shares awarded in March 2018 148 4853 69.24 Shares awarded in May 2018 45 5301 72.84 Shares awarded in August 2018 37 5964 76.92 Shares awarded in November 2018 38 6300 82.86
Astrazeneca Extended Incentive Plan
Share plans
Schedule of shares awarded	Shares WAFV WAFV ʼ 000 pence $ Shares awarded in March 2018 163 4853 69.24 Shares awarded in August 2018 116 5964 76.92 Shares awarded in November 2018 24 6300 82.86

Commitments and contingent li_2

Commitments and contingent liabilities (Tables)	12 Months Ended
	Dec. 31, 2018
Legal Proceedings and Contingent Liabilities
Schedule of commitments	Commitments $m $m $m Contracts placed for future capital expenditure on Property, plant and equipment and 586 570 629
Schedule of potential development and revenue-related payments	Years 5 Total Under 1 year Years 1 and 2 Years 3 and 4 and greater $m $m $m $m $m Future potential research and development milestone payments 6,881 425 966 1,395 4,095 Future potential revenue milestone payments 6,011 68 718 271 4,954

Operating leases (Tables)

Operating leases (Tables)	12 Months Ended
	Dec. 31, 2018
Operating leases
Schedule of total rentals under operating leases charged to profit	$m $m $m Operating leases 188 175 174
Schedule of future minimum lease payments	$m $m $m Obligations under leases comprise: Not later than one year 188 151 98 Later than one year and not later than five years 360 345 247 Later than five years 136 118 96 Total future minimum lease payments 684 614 441

Statutory and other informati_2

Statutory and other information (Tables)	12 Months Ended
	Dec. 31, 2018
Statutory and other information
Schedule of auditor's remuneration	$m $m $m Fees payable to PricewaterhouseCoopers LLP and its associates: Group audit fee 3.8 3.0 – Fees payable to PricewaterhouseCoopers LLP and its associates for other services: The audit of subsidiaries pursuant to legislation 9.4 5.7 – Attestation under s404 of Sarbanes-Oxley Act 2002 2.0 2.0 – Audit-related assurance services 0.8 0.4 – Tax compliance services 0.1 – – Other assurance services 0.9 – – Fees payable to PricewaterhouseCoopers Associates in respect of the Group’s pension schemes: The audit of subsidiaries’ pension schemes 0.4 – – 17.4 11.1 –
Schedule of key management personnel compensation	$’000 $’000 $’000 Short-term employee benefits 32,523 28,274 23,725 Post-employment benefits 2,387 2,469 2,407 Share-based payments 23,605 16,452 20,377 58,515 47,195 46,509

Group Accounting Policies (Deta

Group Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2003
Group Accounting Policies
Financial resources	$ 7,100,000,000
Cash balances	4,800,000,000
Undrawn committed bank facilities	4,100,000,000
Interest-bearing loans and borrowings	1,754,000,000	$ 2,247,000,000	$ 2,307,000,000
Intangible assets	$ 21,959,000,000	$ 26,188,000,000	$ 27,586,000,000
Period of time return accruals are based on	12 months
Sales recorded when the Company is the principal in a profit share agreement (as a percentage)	100.00%
Cumulative translation reserve				$ 0
Available-for-sale assets profit/loss through other comprehensive income	$ 0
Minimum | Buildings
Group Accounting Policies
Asset lives, property, plant and equipment	10 years
Minimum | Plant and equipment
Group Accounting Policies
Asset lives, property, plant and equipment	3 years
Maximum | Buildings
Group Accounting Policies
Asset lives, property, plant and equipment	50 years
Maximum | Plant and equipment
Group Accounting Policies
Asset lives, property, plant and equipment	15 years
Internally generated | Capitalised development expenditure
Group Accounting Policies
Intangible assets	$ 0
Years 3 and 4
Group Accounting Policies
Undrawn committed bank facilities	3,400,000,000
Years 2 and 3
Group Accounting Policies
Undrawn committed bank facilities	500,000,000
Years 1 and 2
Group Accounting Policies
Undrawn committed bank facilities	200,000,000
Due within one year
Group Accounting Policies
Undrawn committed bank facilities	$ 1,800,000,000

Group Accounting Policies - IFR

Group Accounting Policies - IFRS 9 Assets (Details) - IFRS 9 - USD ($) $ in Millions	Jan. 01, 2018	Dec. 31, 2017
Equity securities
Initial application of IFRS 9
Original		$ 933
New	$ 933
Non-current Derivatives
Initial application of IFRS 9
Original		504
New	504
Derivatives
Initial application of IFRS 9
Original		28
New	28
Non-current other receivables
Initial application of IFRS 9
Original		489
New	489
Trade receivables - not subject to factoring
Initial application of IFRS 9
Original		2,475
New	2,475
Trade receivables - subject to factoring
Initial application of IFRS 9
Original		327
New	327
Other receivables
Initial application of IFRS 9
Original		949
New	949
Equity securities and bonds
Initial application of IFRS 9
Original		1,150
New	1,150
Fixed deposits
Initial application of IFRS 9
Original		80
New	80
Cash at bank and in hand
Initial application of IFRS 9
Original		784
New	784
Short-term deposits excluding money market funds
Initial application of IFRS 9
Original		1,391
New	1,391
Money market funds
Initial application of IFRS 9
Original		$ 1,149
New	$ 1,149

Group Accounting Policies - I_2

Group Accounting Policies - IFRS 9 Liabilities (Details) - IFRS 9 - USD ($) $ in Millions	Jan. 01, 2018	Dec. 31, 2017
Derivatives
Initial application of IFRS 9
Financial liabilities, carrying amount immediately before initial application of IFRS 9		$ (24)
Financial liabilities, carrying amount immediately after initial application of IFRS 9	$ (24)
Non-current Derivatives
Initial application of IFRS 9
Financial liabilities, carrying amount immediately before initial application of IFRS 9		$ (4)
Financial liabilities, carrying amount immediately after initial application of IFRS 9	$ (4)

Group Accounting Policies - I_3

Group Accounting Policies - IFRS 15 (Details) - USD ($) $ in Millions	Jan. 01, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Application of new accounting standards
Tax expense (income), continuing operations		$ (57)	$ (641)	$ 146
Retained earnings		5,683	8,221	8,140
Externalisation Revenue		1,041	$ 2,313	$ 1,683
IFRS 15
Application of new accounting standards
Contract liabilities	$ 133
Contract assets	20
Tax expense (income), continuing operations	22
Retained earnings	$ (91)
Externalisation Revenue		$ 27

Group Accounting Policies - I_4

Group Accounting Policies - IFRS 9 Impact (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Equity securities
Disclosure of financial assets at date of initial application of IFRS 9 [line items]
Equity securities available for sale	$ 933	$ 727

Group Accounting Policies - I_5

Group Accounting Policies - IFRS 16 (Details) - IFRS 16 $ in Billions	Jan. 01, 2019USD ($)
Application of new accounting standards
Right-of-use assets	$ 0.7
Lease liabilities	$ 0.7

Revenue (Details)

Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues
Revenue	$ 21,049	$ 20,152	$ 21,319
Externalisation Revenue
Revenues
Revenue	1,041	2,313	1,683
Emerging Markets
Revenues
Revenue	6,891	6,149	5,794
US
Revenues
Revenue	$ 6,876	$ 6,169	$ 7,365
Rebate, returns and chargebacks (as a percent)	3.20%	8.90%	6.00%
Europe
Revenues
Revenue	$ 4,459	$ 4,753	$ 5,064
Rest of World
Revenues
Revenue	2,823	3,081	3,096
Oncology
Revenues
Revenue	6,028	4,024	3,383
Oncology | Emerging Markets
Revenues
Revenue	1,528	1,126	943
Oncology | US
Revenues
Revenue	2,412	1,120	893
Oncology | Europe
Revenues
Revenue	1,053	885	733
Oncology | Rest of World
Revenues
Revenue	1,035	893	814
Tagrisso
Revenues
Revenue	1,860	955	423
Tagrisso | Emerging Markets
Revenues
Revenue	347	135	10
Tagrisso | US
Revenues
Revenue	869	405	254
Tagrisso | Europe
Revenues
Revenue	314	187	76
Tagrisso | Rest of World
Revenues
Revenue	330	228	83
Faslodex
Revenues
Revenue	1,028	941	830
Faslodex | Emerging Markets
Revenues
Revenue	154	115	96
Faslodex | US
Revenues
Revenue	537	492	438
Faslodex | Europe
Revenues
Revenue	221	256	228
Faslodex | Rest of World
Revenues
Revenue	116	78	68
Zoladex
Revenues
Revenue	752	735	816
Zoladex | Emerging Markets
Revenues
Revenue	409	353	355
Zoladex | US
Revenues
Revenue	8	15	35
Zoladex | Europe
Revenues
Revenue	133	141	156
Zoladex | Rest of World
Revenues
Revenue	202	226	270
Zoladex | TerSera | Externalisation Revenue
Revenues
Revenue	35	250
Lynparza
Revenues
Revenue	647	297	218
Lynparza | Emerging Markets
Revenues
Revenue	51	18	7
Lynparza | US
Revenues
Revenue	345	141	127
Lynparza | Europe
Revenues
Revenue	190	130	81
Lynparza | Rest of World
Revenues
Revenue	61	8	3
Imfinzi
Revenues
Revenue	633	19
Imfinzi | Emerging Markets
Revenues
Revenue	6
Imfinzi | US
Revenues
Revenue	564	19
Imfinzi | Europe
Revenues
Revenue	27
Imfinzi | Rest of World
Revenues
Revenue	36
Iressa
Revenues
Revenue	518	528	513
Iressa | Emerging Markets
Revenues
Revenue	286	251	233
Iressa | US
Revenues
Revenue	26	39	23
Iressa | Europe
Revenues
Revenue	109	112	120
Iressa | Rest of World
Revenues
Revenue	97	126	137
Arimidex
Revenues
Revenue	212	217	232
Arimidex | Emerging Markets
Revenues
Revenue	132	118	110
Arimidex | US
Revenues
Revenue		7	14
Arimidex | Europe
Revenues
Revenue	31	34	37
Arimidex | Rest of World
Revenues
Revenue	49	58	71
Casodex
Revenues
Revenue	201	215	247
Casodex | Emerging Markets
Revenues
Revenue	113	108	107
Casodex | US
Revenues
Revenue	1	(1)	2
Casodex | Europe
Revenues
Revenue	20	22	27
Casodex | Rest of World
Revenues
Revenue	67	86	111
Calquence
Revenues
Revenue	62	3
Calquence | US
Revenues
Revenue	62	3
Oncology, Others
Revenues
Revenue	115	114	104
Oncology, Others | Emerging Markets
Revenues
Revenue	30	28	25
Oncology, Others | Europe
Revenues
Revenue	8	3	8
Oncology, Others | Rest of World
Revenues
Revenue	77	83	71
CVRM
Revenues
Revenue	6,710	7,266	8,116
CVRM | Emerging Markets
Revenues
Revenue	2,695	2,367	2,139
CVRM | US
Revenues
Revenue	2,206	2,371	3,202
CVRM | Europe
Revenues
Revenue	1,230	1,659	1,894
CVRM | Rest of World
Revenues
Revenue	579	869	881
Crestor
Revenues
Revenue	1,433	2,365	3,401
Crestor | Emerging Markets
Revenues
Revenue	841	784	721
Crestor | US
Revenues
Revenue	170	373	1,223
Crestor | Europe
Revenues
Revenue	203	666	866
Crestor | Rest of World
Revenues
Revenue	219	542	591
Farxiga
Revenues
Revenue	1,391	1,074	835
Farxiga | Emerging Markets
Revenues
Revenue	336	232	133
Farxiga | US
Revenues
Revenue	591	489	457
Farxiga | Europe
Revenues
Revenue	315	242	187
Farxiga | Rest of World
Revenues
Revenue	149	111	58
Brilinta
Revenues
Revenue	1,321	1,079	839
Brilinta | Emerging Markets
Revenues
Revenue	326	224	189
Brilinta | US
Revenues
Revenue	588	509	348
Brilinta | Europe
Revenues
Revenue	348	295	258
Brilinta | Rest of World
Revenues
Revenue	59	51	44
Seloken/Toprol-XL
Revenues
Revenue	712	695	737
Seloken/Toprol-XL | Emerging Markets
Revenues
Revenue	641	593	536
Seloken/Toprol-XL | US
Revenues
Revenue	39	37	95
Seloken/Toprol-XL | Europe
Revenues
Revenue	19	52	90
Seloken/Toprol-XL | Rest of World
Revenues
Revenue	13	13	16
Bydureon
Revenues
Revenue	584	574	578
Bydureon | Emerging Markets
Revenues
Revenue	8	9	4
Bydureon | US
Revenues
Revenue	475	458	463
Bydureon | Europe
Revenues
Revenue	81	88	100
Bydureon | Rest of World
Revenues
Revenue	20	19	11
Onglyza
Revenues
Revenue	543	611	720
Onglyza | Emerging Markets
Revenues
Revenue	172	130	142
Onglyza | US
Revenues
Revenue	223	320	376
Onglyza | Europe
Revenues
Revenue	89	104	132
Onglyza | Rest of World
Revenues
Revenue	59	57	70
Atacand
Revenues
Revenue	260	300	315
Atacand | Emerging Markets
Revenues
Revenue	157	178	162
Atacand | US
Revenues
Revenue	13	19	36
Atacand | Europe
Revenues
Revenue	70	86	97
Atacand | Rest of World
Revenues
Revenue	20	17	20
Byetta
Revenues
Revenue	126	176	254
Byetta | Emerging Markets
Revenues
Revenue	8	12	24
Byetta | US
Revenues
Revenue	74	114	164
Byetta | Europe
Revenues
Revenue	29	34	45
Byetta | Rest of World
Revenues
Revenue	15	16	21
Symlin
Revenues
Revenue	34	48
Symlin | US
Revenues
Revenue	34	48
Plendil | CMS | Externalisation Revenue
Revenues
Revenue			298
CVDM, Others
Revenues
Revenue	306	344	437
CVDM, Others | Emerging Markets
Revenues
Revenue	206	205	228
CVDM, Others | US
Revenues
Revenue	(1)	4	40
CVDM, Others | Europe
Revenues
Revenue	76	92	119
CVDM, Others | Rest of World
Revenues
Revenue	25	43	50
Respiratory
Revenues
Revenue	4,911	4,706	4,753
Respiratory | Emerging Markets
Revenues
Revenue	1,644	1,388	1,243
Respiratory | US
Revenues
Revenue	1,416	1,509	1,638
Respiratory | Europe
Revenues
Revenue	1,229	1,216	1,284
Respiratory | Rest of World
Revenues
Revenue	622	593	588
Symbicort
Revenues
Revenue	2,561	2,803	2,989
Symbicort | Emerging Markets
Revenues
Revenue	495	439	402
Symbicort | US
Revenues
Revenue	862	1,099	1,242
Symbicort | Europe
Revenues
Revenue	773	819	909
Symbicort | Rest of World
Revenues
Revenue	431	446	436
Pulmicort
Revenues
Revenue	1,286	1,176	1,061
Pulmicort | Emerging Markets
Revenues
Revenue	995	840	698
Pulmicort | US
Revenues
Revenue	116	156	174
Pulmicort | Europe
Revenues
Revenue	90	92	99
Pulmicort | Rest of World
Revenues
Revenue	85	88	90
Fasenra
Revenues
Revenue	297	1
Fasenra | Emerging Markets
Revenues
Revenue	1
Fasenra | US
Revenues
Revenue	218	1
Fasenra | Europe
Revenues
Revenue	32
Fasenra | Rest of World
Revenues
Revenue	46
Daliresp/Daxas
Revenues
Revenue	189	198	154
Daliresp/Daxas | Emerging Markets
Revenues
Revenue	5	4	4
Daliresp/Daxas | US
Revenues
Revenue	155	167	134
Daliresp/Daxas | Europe
Revenues
Revenue	28	26	15
Daliresp/Daxas | Rest of World
Revenues
Revenue	1	1	1
Tudorza/Eklira
Revenues
Revenue	110	150	170
Tudorza/Eklira | Emerging Markets
Revenues
Revenue	1	2	1
Tudorza/Eklira | US
Revenues
Revenue	25	66	77
Tudorza/Eklira | Europe
Revenues
Revenue	74	73	83
Tudorza/Eklira | Rest of World
Revenues
Revenue	10	9	9
Duaklir
Revenues
Revenue	95	79	63
Duaklir | Emerging Markets
Revenues
Revenue	1		1
Duaklir | Europe
Revenues
Revenue	91	77	60
Duaklir | Rest of World
Revenues
Revenue	3	2	2
Bevespi
Revenues
Revenue	33	16
Bevespi | US
Revenues
Revenue	33	16
Respiratory, Others
Revenues
Revenue	340	283	316
Respiratory, Others | Emerging Markets
Revenues
Revenue	146	103	137
Respiratory, Others | US
Revenues
Revenue	7	4	11
Respiratory, Others | Europe
Revenues
Revenue	141	129	118
Respiratory, Others | Rest of World
Revenues
Revenue	46	47	50
Other
Revenues
Revenue	3,400	4,156	5,067
Other | Emerging Markets
Revenues
Revenue	1,024	1,268	1,469
Other | US
Revenues
Revenue	842	1,169	1,632
Other | Europe
Revenues
Revenue	947	993	1,153
Other | Rest of World
Revenues
Revenue	587	726	813
Nexium
Revenues
Revenue	1,702	1,952	2,032
Nexium | Emerging Markets
Revenues
Revenue	690	684	690
Nexium | US
Revenues
Revenue	306	499	554
Nexium | Europe
Revenues
Revenue	235	248	251
Nexium | Rest of World
Revenues
Revenue	471	521	537
Synagis
Revenues
Revenue	665	687	677
Synagis | Emerging Markets
Revenues
Revenue	1
Synagis | US
Revenues
Revenue	287	317	325
Synagis | Europe
Revenues
Revenue	377	370	352
Seroquel XR/IR
Revenues
Revenue	361	508	967
Seroquel XR/IR | Emerging Markets
Revenues
Revenue	118	151	159
Seroquel XR/IR | US
Revenues
Revenue	108	193	572
Seroquel XR/IR | Europe
Revenues
Revenue	107	127	190
Seroquel XR/IR | Rest of World
Revenues
Revenue	28	37	46
Losec/Prilosec
Revenues
Revenue	272	271	276
Losec/Prilosec | Emerging Markets
Revenues
Revenue	161	140	128
Losec/Prilosec | US
Revenues
Revenue	7	11	10
Losec/Prilosec | Europe
Revenues
Revenue	70	77	83
Losec/Prilosec | Rest of World
Revenues
Revenue	34	43	55
FluMist/Fluenz
Revenues
Revenue	110	78	104
FluMist/Fluenz | Emerging Markets
Revenues
Revenue	1	(1)	1
FluMist/Fluenz | US
Revenues
Revenue	15		33
FluMist/Fluenz | Europe
Revenues
Revenue	91	76	64
FluMist/Fluenz | Rest of World
Revenues
Revenue	3	3	6
Movantik/Moventig
Revenues
Revenue	109	122	91
Movantik/Moventig | Emerging Markets
Revenues
Revenue			1
Movantik/Moventig | US
Revenues
Revenue	108	120	90
Movantik/Moventig | Europe
Revenues
Revenue		2
Movantik/Moventig | Rest of World
Revenues
Revenue	1
Other, Others
Revenues
Revenue	181	538	920
Other, Others | Emerging Markets
Revenues
Revenue	53	294	490
Other, Others | US
Revenues
Revenue	11	29	48
Other, Others | Europe
Revenues
Revenue	67	93	213
Other, Others | Rest of World
Revenues
Revenue	50	122	169
Brodalumab | Valeant and Leo | Externalisation Revenue
Revenues
Revenue		150
Lynparza and Selumetinb | MSD | Externalisation Revenue
Revenues
Revenue	790	1,247
Anaesthetics Medicines | Aspen | Externalisation Revenue
Revenues
Revenue		150	520
MEDI8897 | Sanofi | Externalisation Revenue
Revenues
Revenue		127
Royal Revenue | Externalisation Revenue
Revenues
Revenue	49	108	119
Milestone Revenue | Externalisation Revenue
Revenues
Revenue	$ 4	$ 87	$ 203

Revenue - Externalisation Reven

Revenue - Externalisation Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018
Revenues
Revenue	$ 21,049	$ 20,152	$ 21,319
Externalisation Revenue
Revenues
Revenue	1,041	2,313	1,683
Externalisation Revenue | Japan
Revenues
Revenue	41	45	42
Lynparza and Selumetinb | MSD | Externalisation Revenue
Revenues
Revenue	790	1,247
Crestor
Revenues
Revenue	1,433	2,365	3,401
Crestor | Almirall | Externalisation Revenue
Revenues
Revenue	61
Zoladex
Revenues
Revenue	752	735	816
Zoladex | TerSera | Externalisation Revenue
Revenues
Revenue	35	250
Anaesthetics Medicines | Aspen | Externalisation Revenue
Revenues
Revenue		150	520
Brodalumab | Valeant and Leo | Externalisation Revenue
Revenues
Revenue		150
MEDI8897 | Sanofi | Externalisation Revenue
Revenues
Revenue		127
Plendil | CMS | Externalisation Revenue
Revenues
Revenue			298
Toprol-XL | Aralez | Externalisation Revenue
Revenues
Revenue			175
Tralokinumab | LEO Pharma | Externalisation Revenue
Revenues
Revenue			115
Externalisation Revenue
Revenues
Contract liabilities	35			$ 35
Upfront Revenue | Externalisation Revenue
Revenues
Revenue	10	114	158
Milestone Revenue | Externalisation Revenue
Revenues
Revenue	4	87	203
Royal Revenue | Externalisation Revenue
Revenues
Revenue	49	108	119
Other Externalisation Revenue | Externalisation Revenue
Revenues
Revenue	$ 51	$ 35	$ 53

Operating profit - Other operat

Operating profit - Other operating income and expense (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating profit, other operating income and expense
Legal proceedings provision		$ 219	$ 241	$ 223
Royalties income		96	132	406
Royalties amortisation		(4)	(45)	(86)
Gains on disposal of intangible assets		1,885	1,518	1,301
Gains on disposal of short-term investments			161
Net (losses)/gains on disposal of other non-current assets		(8)	24	29
Impairment of property, plant and equipment	$ (252)		(78)
Legal settlements		374
Other income		277	286	146
Other expense		(93)	(168)	(141)
Other operating income and expense		2,527	1,830	1,655
BMS's share of Global Diabetes Alliance
Operating profit, other operating income and expense
Changes in fair value of contingent consideration credit (charge)		482	(208)	999
Global Anaesthetics portfolio
Operating profit, other operating income and expense
Gains on disposal of intangible assets			555
Acerta Pharma
Operating profit, other operating income and expense
Changes in fair value of contingent consideration credit (charge)		113	209	41
MEDI2070
Operating profit, other operating income and expense
Gains on disposal of intangible assets				231
Nexium
Operating profit, other operating income and expense
Gains on disposal of intangible assets		695
Atacand
Operating profit, other operating income and expense
Gains on disposal of intangible assets		210
Alvesco, Omnaris and Zetonna
Operating profit, other operating income and expense
Gains on disposal of intangible assets		139
Seroquel XR/IR
Operating profit, other operating income and expense
Gains on disposal of intangible assets		527
Zomig
Operating profit, other operating income and expense
Gains on disposal of intangible assets			193
Most markets outside the US | Small molecule antibiotics
Operating profit, other operating income and expense
Gains on disposal of intangible assets				368
Most markets outside the US | Anaesthetics Medicines
Operating profit, other operating income and expense
Gains on disposal of intangible assets		$ 172
Rest of the world | Rhinocort
Operating profit, other operating income and expense
Gains on disposal of intangible assets				321
Rest of the world | Imdur
Operating profit, other operating income and expense
Gains on disposal of intangible assets				$ 183
Europe | Seloken/Toprol-XL
Operating profit, other operating income and expense
Gains on disposal of intangible assets			$ 301

Operating profit - Restructurin

Operating profit - Restructuring costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Restructuring programmes
Total charge	$ 697	$ 807	$ 1,107
Severance costs
Restructuring programmes
Total charge	41	176	505
Accelerated depreciation and impairment
Restructuring programmes
Total charge	259	141	46
Other restructuring
Restructuring programmes
Total charge	397	490	556
Cost of sales
Restructuring programmes
Total charge	432	181	130
Research and development expense
Restructuring programmes
Total charge	94	201	178
Selling, general and administrative costs
Restructuring programmes
Total charge	181	347	823
Other operating income and expense
Restructuring programmes
Total charge	$ (10)	$ 78	$ (24)

Operating profit - Financial in

Operating profit - Financial instruments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating profit
Losses on forward foreign exchange contracts	$ (100)	$ (6)	$ (216)
Gains/(losses) on receivables and payables	43	(30)	132
Gains on disposal of short-term investments		161
Gains on other available for sale investments		34
Total	$ (57)	$ 159	$ (84)

Finance income and expense - Ne

Finance income and expense - Net finance expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Finance income
Returns on fixed deposits and equity securities	$ 10	$ 8	$ 8
Returns on short-term deposits	86	62	35
Fair value gains on debt and interest rate swaps		4
Net exchange gains			8
Discount unwind on other long-term assets	6	10	16
Interest on tax receivables	36	29
Total	138	113	67
Finance expense
Interest on debt and commercial paper	(673)	(612)	(565)
Interest on overdrafts, finance leases and other financing costs	(68)	(52)	(52)
Net interest on post-employment defined benefit plan net liabilities (Note 21)	(52)	(49)	(63)
Net exchange losses	(51)	(148)
Discount unwind on contingent consideration arising from business combinations (Note 19)	(416)	(402)	(497)
Discount unwind on other long-term liabilities	(154)	(245)	(190)
Fair value losses on debt and interest rate swaps	(2)		(17)
Interest on tax payables	(3)
Total	(1,419)	(1,508)	(1,384)
Net finance expense	$ (1,281)	$ (1,395)	$ (1,317)

Finance income and expense - Fi

Finance income and expense - Financial instruments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net gains and losses on financial instruments
Interest and fair value adjustments in respect of debt designated at fair value through profit or loss, net of derivatives	$ (11)	$ 8	$ (14)
Interest and changes in carrying values of debt designated as hedged items in fair value hedges, net of derivatives	(28)	(35)	(21)
Interest and fair value changes on fixed and short-term deposits, equity securities, other derivatives and tax balances	96	52	74
Interest on debt, overdrafts, finance leases and commercial paper held at amortised cost	(619)	(559)	(553)
Losses on change in fair value of derivatives	2		17
Interest rate fair value hedging instruments
Net gains and losses on financial instruments
Gain on change in fair value of related hedged items	10	9	30
Instruments in a fair value hedge relationship | Interest rate swaps
Net gains and losses on financial instruments
Losses on change in fair value of derivatives	13	9	29
Instruments in a fair value hedge relationship | Loans
Net gains and losses on financial instruments
Losses on change in fair value of derivatives	13	10	12
Instruments designated in cash flow hedge
Net gains and losses on financial instruments
Ineffectiveness on net investment hedge taken to profit	0	0	0
Instruments designated at fair value through profit and loss
Net gains and losses on financial instruments
Gains on change in fair value of derivatives	$ 13	$ 3	$ 9

Taxation - Comprehensive income

Taxation - Comprehensive income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current tax expense
Current year	$ 711	$ 665	$ 384
Adjustment to prior years	38	(287)	(14)
Total	749	378	370
Deferred tax expense
Origination and reversal of temporary differences	(644)	(1,113)	(94)
Adjustment to prior years	(162)	94	(130)
Total	(806)	(1,019)	(224)
Taxation recognised in the profit for the period	(57)	(641)	146
Items that will not be reclassified to profit or loss:
Remeasurement of the defined benefit liability	(37)	(24)	(110)
Share-based payments		(9)	(51)
Net losses on equity investments measured at fair value through other comprehensive income	(30)
Deferred tax impact of reduction in US tax rate and other tax rates	11	17	25
Total	(56)	(16)	(136)
Items that may be reclassified subsequently to profit or loss:
Foreign exchange arising on consolidation	(69)	79	(63)
Foreign exchange arising on designating borrowings in net investment hedges		(14)	(83)
Net available for sale (gains)/losses recognised in other comprehensive income		(2)	61
Other			1
Deferred tax impact of reduction in US tax rate	18	(30)
Total	(51)	33	(86)
Taxation related to components of other comprehensive income	$ (107)	$ 17	$ (222)

Taxation - Reconciliation (Deta

Taxation - Reconciliation (Details) - USD ($) $ in Millions	Jan. 01, 2021	Apr. 01, 2020	Mar. 31, 2020	Jan. 01, 2020	Jan. 01, 2019	Jan. 01, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Taxation
Reported tax rate (as a percentage)							(3.00%)
Deferred tax credit relating to reduction in other tax rates							$ 334	$ 616	$ 16
Credit adjustment to tax rate due to expiry of statute of limitations and conclusion of tax authority review							$ 188
Tax rate adjustment, term									13 years
Reported tax rate excluding effects of adjustment (as a percentage)							21.00%
Cash tax paid							$ 537
Cash tax paid as a percentage of profit before tax (as a percentage)							27.00%
Prior period current tax adjustment								105	$ 67
Deferred tax for unremitted earnings of Group companies overseas							$ 0
Temporary differences associated with investments in subsidiaries and branches, deferred tax liabilities have not been recognised							$ 8,144	$ 8,359	$ 6,884
Tax rate (as a percentage)							19.00%	19.25%	20.00%
Tax charge							$ (37)	$ 1
Profit before tax							1,993	2,227	$ 3,552
Notional taxation charge at UK corporation tax rate of 19% (2017: 19.25%; 2016: 20%)							379	429	710
Differences in effective overseas tax rates							18	(212)	(233)
Unrecognised deferred tax asset							7	(105)	242
Items not deductible for tax purposes							167	203	132
Items not chargeable for tax purposes							(6)	(14)	(7)
Other items							(164)	(133)	(538)
Adjustments in respect of prior periods							(124)	(193)	(144)
Taxation recognised in the profit for the period							(57)	$ (641)	146
US
Taxation
Tax rate (as a percentage)						21.00%		35.00%
Tax credit								$ 617
DUTCH AND SWEDEN
Taxation
Deferred tax credit relating to reduction in other tax rates							297
Tax credit							$ 297
DUTCH
Taxation
Tax rate (as a percentage)							25.00%
SWEDEN
Taxation
Tax rate (as a percentage)					21.40%		22.00%
Forecast
Taxation
UK Statutory Corporation Tax rate			18.00%
Forecast | DUTCH
Taxation
Tax rate (as a percentage)	20.50%			22.55%
Forecast | SWEDEN
Taxation
Tax rate (as a percentage)	20.60%
UK Statutory Corporation Tax Rate after reduction
Taxation
UK Statutory Corporation Tax rate		17.00%
Agreements between tax authorities in respect of transfer pricing arrangements
Taxation
Tax charge							$ 24	45
Expiry of relevant statute of limitations
Taxation
Tax credit related to transfer pricing arrangements									453
Tax credit related to statute of limitations									280
Tax credit								$ 178
Provision build for transfer pricing contingencies
Taxation
Tax charge									$ 195

Taxation - Movements in deferre

Taxation - Movements in deferred tax balance (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Taxation
Balance at the beginning of the period	$ (1,806)	$ (2,854)	$ (1,371)
Net adjustment to the opening balance of retained earnings	12
Taxation expense	806	1,019	224
Other comprehensive income	113	(40)	160
Equity	12
Additions through business combinations			(1,777)
Exchange	(44)	69	(79)
Other movements			11
Balance at the end of the period	$ (907)	(1,806)	(2,854)
Minimum
Taxation
Unused tax losses and unused tax credits, expiry term	1 year
Maximum
Taxation
Unused tax losses and unused tax credits, expiry term	20 years
United Kingdom
Taxation
Net deferred tax asset	$ 691
Acerta Pharma
Taxation
Additions through business combinations		(1,777)
Intangibles, property, plant & equipment
Taxation
Balance at the beginning of the period	(3,852)	(5,149)	(3,261)
Taxation expense	401	1,393	(132)
Other comprehensive income	56	(84)	83
Additions through business combinations			(1,827)
Exchange	27	(12)	(1)
Other movements			11
Balance at the end of the period	(3,368)	(3,852)	(5,149)
Pension and post-retirement benefits
Taxation
Balance at the beginning of the period	509	465	427
Taxation expense	(15)	(8)	11
Other comprehensive income	26	9	101
Exchange	(25)	43	(74)
Balance at the end of the period	495	509	465
Intercompany inventory transfers
Taxation
Balance at the beginning of the period	831	1,014	738
Taxation expense	179	(231)	314
Exchange	(30)	48	(38)
Balance at the end of the period	980	831	1,014
Untaxed reserves
Taxation
Balance at the beginning of the period	(600)	(697)	(692)
Taxation expense	(4)	159	(53)
Exchange	47	(62)	48
Balance at the end of the period	(557)	(600)	(697)
Losses and tax credits carried forward
Taxation
Balance at the beginning of the period	906	1,004	804
Taxation expense	129	(128)	151
Additions through business combinations			50
Exchange	(27)	30	(1)
Balance at the end of the period	1,008	906	1,004
Accrued expenses and other
Taxation
Balance at the beginning of the period	400	509	613
Net adjustment to the opening balance of retained earnings	12
Taxation expense	116	(166)	(67)
Other comprehensive income	31	35	(24)
Equity	12
Exchange	(36)	22	(13)
Balance at the end of the period	$ 535	$ 400	$ 509

Taxation - Net deferred tax bal

Taxation - Net deferred tax balance (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Taxation
Net deferred tax balance	$ (907)	$ (1,806)	$ (2,854)	$ (1,371)
Deductible temporary differences for which no deferred tax asset is recognised	$ 444	420	542
Minimum
Taxation
Unrecognised deferred tax assets expiration period (in years)	1 year
Maximum
Taxation
Unrecognised deferred tax assets expiration period (in years)	20 years
Before the offset of balances within countries
Taxation
Deferred tax assets	$ 4,895	4,638	3,987
Deferred tax liabilities	(5,802)	(6,444)	(6,841)
Net deferred tax balance	(907)	(1,806)	(2,854)
After the offset of balances within countries
Taxation
Deferred tax assets	2,379	2,189	1,102
Deferred tax liabilities	(3,286)	(3,995)	(3,956)
Net deferred tax balance	(907)	(1,806)	(2,854)
Intangibles, property, plant & equipment
Taxation
Net deferred tax balance	(3,368)	(3,852)	(5,149)	(3,261)
Intangibles, property, plant & equipment | Before the offset of balances within countries
Taxation
Deferred tax assets	1,071	1,226	875
Deferred tax liabilities	(4,439)	(5,078)	(6,024)
Net deferred tax balance	(3,368)	(3,852)	(5,149)
Pension and post-retirement benefits
Taxation
Net deferred tax balance	495	509	465	427
Pension and post-retirement benefits | Before the offset of balances within countries
Taxation
Deferred tax assets	521	559	465
Deferred tax liabilities	(26)	(50)
Net deferred tax balance	495	509	465
Intercompany inventory transfers
Taxation
Net deferred tax balance	980	831	1,014	738
Intercompany inventory transfers | Before the offset of balances within countries
Taxation
Deferred tax assets	1,287	1,011	1,014
Deferred tax liabilities	(307)	(180)
Net deferred tax balance	980	831	1,014
Untaxed reserves
Taxation
Net deferred tax balance	(557)	(600)	(697)	(692)
Untaxed reserves | Before the offset of balances within countries
Taxation
Deferred tax liabilities	(557)	(600)	(697)
Net deferred tax balance	(557)	(600)	(697)
Losses and tax credits carried forward
Taxation
Net deferred tax balance	1,008	906	1,004	804
Losses and tax credits carried forward | Before the offset of balances within countries
Taxation
Deferred tax assets	1,103	957	1,004
Deferred tax liabilities	(95)	(51)
Net deferred tax balance	1,008	906	1,004
Accrued expenses and other
Taxation
Net deferred tax balance	535	400	509	$ 613
Accrued expenses and other | Before the offset of balances within countries
Taxation
Deferred tax assets	913	885	629
Deferred tax liabilities	(378)	(485)	(120)
Net deferred tax balance	$ 535	$ 400	$ 509

Earnings per $0.25 Ordinary S_3

Earnings per $0.25 Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings per $0.25 Ordinary Share
Profit for the year attributable to equity holders ($m)	$ 2,155	$ 3,001	$ 3,499
Basic earnings per Ordinary Share (in dollars per share)	$ 1.70	$ 2.37	$ 2.77
Diluted earnings per Ordinary Share (in dollars per share)	$ 1.70	$ 2.37	$ 2.76
Weighted average number of Ordinary Shares in issue for basic earnings (millions)	1,267	1,266	1,265
Dilutive impact of share options outstanding (millions)		1	1
Diluted weighted average number of Ordinary Shares in issue (millions)	1,267	1,267	1,266

Segment information - geographi

Segment information - geographical areas (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of geographical location
Total Revenue	$ 22,090	$ 22,465	$ 23,002
UK | Operating segments
Disclosure of geographical location
Total Revenue	2,390	3,240	1,849
External
Disclosure of geographical location
Total Revenue	19,700	19,225	21,153
Europe | Operating segments
Disclosure of geographical location
Total Revenue	3,820	4,557	5,580
France | Operating segments
Disclosure of geographical location
Total Revenue	617	701	899
Germany | Operating segments
Disclosure of geographical location
Total Revenue	592	541	615
Italy | Operating segments
Disclosure of geographical location
Total Revenue	426	514	529
Spain | Operating segments
Disclosure of geographical location
Total Revenue	396	447	440
Sweden | Operating segments
Disclosure of geographical location
Total Revenue	477	842	1,522
Others | Operating segments
Disclosure of geographical location
Total Revenue	1,312	1,512	1,575
The Americas | Operating segments
Disclosure of geographical location
Total Revenue	8,529	7,957	9,169
Canada | Operating segments
Disclosure of geographical location
Total Revenue	483	482	495
US | Operating segments
Disclosure of geographical location
Total Revenue	7,240	6,666	7,828
Others | Operating segments
Disclosure of geographical location
Total Revenue	806	809	846
Asia, Africa And Australasia | Operating segments
Disclosure of geographical location
Total Revenue	7,351	6,711	6,404
Australia | Operating segments
Disclosure of geographical location
Total Revenue	313	377	385
China | Operating segments
Disclosure of geographical location
Total Revenue	3,778	2,955	2,650
Japan | Operating segments
Disclosure of geographical location
Total Revenue	1,952	2,172	2,145
Others | Operating segments
Disclosure of geographical location
Total Revenue	$ 1,308	$ 1,207	$ 1,224

Segment information - Intra-Gro

Segment information - Intra-Group pricing (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of geographical location
Operating (loss)/profit	$ 3,387	$ 3,677	$ 4,902
(Loss)/profit before tax	1,993	2,227	3,552
Non-current assets	42,524	47,511	47,819
Total assets	60,651	63,354	62,526
Assets acquired	1,547	1,752	9,673
Net operating assets	32,019	35,116	33,784
UK
Disclosure of geographical location
Operating (loss)/profit	(66)	(694)	(526)
(Loss)/profit before tax	(514)	(1,146)	(950)
Non-current assets	4,828	5,371	5,127
Total assets	13,573	12,842	12,704
Assets acquired	556	400	362
Net operating assets	3,471	3,351	3,306
Europe
Disclosure of geographical location
Operating (loss)/profit	3,671	2,482	3,695
(Loss)/profit before tax	3,179	1,918	3,136
Non-current assets	14,529	16,305	15,731
Total assets	17,119	18,962	18,174
Assets acquired	530	629	8,494
Net operating assets	8,913	10,228	8,479
The Americas
Disclosure of geographical location
Operating (loss)/profit	(757)	1,242	1,259
(Loss)/profit before tax	(1,171)	822	919
Non-current assets	22,191	24,811	26,044
Total assets	26,381	28,180	28,792
Assets acquired	356	585	688
Net operating assets	18,598	20,339	20,969
Asia, Africa And Australasia
Disclosure of geographical location
Operating (loss)/profit	539	647	474
(Loss)/profit before tax	499	633	447
Non-current assets	976	1,024	917
Total assets	3,578	3,370	2,856
Assets acquired	105	138	129
Net operating assets	$ 1,037	$ 1,198	$ 1,030

Segment information - Property,

Segment information - Property, plant and equipment (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of geographical location
Property, plant and equipment.	$ 7,421	$ 7,615	$ 6,848
UK
Disclosure of geographical location
Property, plant and equipment.	1,605	1,455	1,026
Sweden
Disclosure of geographical location
Property, plant and equipment.	1,456	1,508	1,142
US
Disclosure of geographical location
Property, plant and equipment.	2,844	3,055	3,233
Rest of the world
Disclosure of geographical location
Property, plant and equipment.	$ 1,516	$ 1,597	$ 1,447

Segment information - Product S

Segment information - Product Sales (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)customer	Dec. 31, 2017USD ($)customer	Dec. 31, 2016USD ($)customer
Disclosure of geographical location
Product Sales	$ 21,049	$ 20,152	$ 21,319
Number of transactions with wholesaler | customer	0	0	1
Customer one, 2018
Disclosure of geographical location
Product Sales	$ 2,704
Customer one, 2015
Disclosure of geographical location
Product Sales			$ 2,851
UK
Disclosure of geographical location
Product Sales	469	$ 489	487
Europe
Disclosure of geographical location
Product Sales	4,388	4,712	4,987
The Americas
Disclosure of geographical location
Product Sales	8,177	7,467	8,717
Asia, Africa And Australasia
Disclosure of geographical location
Product Sales	$ 8,015	$ 7,484	$ 7,128

Property, plant and equipment_2

Property, plant and equipment (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, plant and equipment
Balance at the beginning period		$ 7,615	$ 6,848
Impairment	$ 252		78
Balance at the end period	7,421	7,421	7,615	$ 6,848
Land and buildings
Property, plant and equipment
Balance at the beginning period		2,792	2,524
Balance at the end period	2,862	2,862	2,792	2,524
Freeholds
Property, plant and equipment
Balance at the beginning period		2,514	2,326
Balance at the end period	2,567	2,567	2,514	2,326
Leaseholds
Property, plant and equipment
Balance at the beginning period		278	198
Balance at the end period	295	295	278	198
Plant and equipment
Property, plant and equipment
Balance at the beginning period		2,390	2,032
Balance at the end period	2,382	2,382	2,390	2,032
Information technology assets under finance leases
Property, plant and equipment
Balance at the beginning period			43
Balance at the end period				43
Assets in course of construction
Property, plant and equipment
Balance at the beginning period		2,433	2,292
Balance at the end period	2,177	2,177	2,433	2,292
Cost
Property, plant and equipment
Balance at the beginning period		14,639	13,451	13,848
Capital expenditure		1,034	1,311	1,449
Disposals and other movements			(944)	(952)
Disposals and other movements		(391)
Exchange adjustments		(643)	821	(894)
Balance at the end period	14,639	14,639	14,639	13,451
Cost | Land and buildings
Property, plant and equipment
Balance at the beginning period		5,023	4,616	4,812
Capital expenditure		25	39	29
Transfer of assets into use		429	525	222
Disposals and other movements			(367)	(236)
Disposals and other movements		50
Exchange adjustments		(161)	210	(211)
Balance at the end period	5,366	5,366	5,023	4,616
Transfers between classes		120
Cost | Plant and equipment
Property, plant and equipment
Balance at the beginning period		7,183	6,543	7,468
Capital expenditure		99	198	206
Transfer of assets into use		594	567	109
Disposals and other movements			(577)	(700)
Disposals and other movements		(427)
Exchange adjustments		(353)	452	(540)
Balance at the end period	7,096	7,096	7,183	6,543
Transfers between classes		(120)
Cost | Assets in course of construction
Property, plant and equipment
Balance at the beginning period		2,433	2,292	1,568
Capital expenditure		910	1,074	1,214
Transfer of assets into use		(1,023)	(1,092)	(331)
Disposals and other movements				(16)
Disposals and other movements		(14)
Exchange adjustments		(129)	159	(143)
Balance at the end period	2,177	2,177	2,433	2,292
Depreciation
Property, plant and equipment
Balance at the beginning period		(7,024)	(6,603)	(7,435)
Charge for year		614	624	609
Impairment		291	78	2
Disposals and other movements		369	750	878
Exchange adjustments		342	(469)	565
Balance at the end period	(7,218)	(7,218)	(7,024)	(6,603)
Depreciation | Land and buildings
Property, plant and equipment
Balance at the beginning period		(2,231)	(2,092)	(2,253)
Charge for year		202	182	185
Impairment		150	78	2
Disposals and other movements		(10)	249	222
Exchange adjustments		89	(128)	126
Balance at the end period	(2,504)	(2,504)	(2,231)	(2,092)
Transfers between classes		75
Depreciation | Plant and equipment
Property, plant and equipment
Balance at the beginning period		(4,793)	(4,511)	(5,182)
Charge for year		412	442	424
Impairment		98
Disposals and other movements		336	501	656
Exchange adjustments		253	(341)	439
Balance at the end period	$ (4,714)	(4,714)	$ (4,793)	$ (4,511)
Transfers between classes		(75)
Depreciation | Assets in course of construction
Property, plant and equipment
Impairment		43
Disposals and other movements		$ 43

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of reconciliation of changes in goodwill
Beginning balance	$ (11,825)	$ (11,658)
Ending balance	$ (11,707)	$ (11,825)	$ (11,658)
Group projections of pre-tax cash flows period	10 years
Post-tax weighted average cost of capital	7.00%	7.00%	7.00%
Goodwill impairment	$ 0
Cost
Disclosure of reconciliation of changes in goodwill
Beginning balance	(12,143)	$ (11,969)	$ (12,113)
Additions through business combinations (Note 25)			19
Exchange and other adjustments	121	(174)	163
Ending balance	(12,022)	(12,143)	(11,969)
Depreciation
Disclosure of reconciliation of changes in goodwill
Beginning balance	318	311	313
Exchange and other adjustments	(3)	7	(2)
Ending balance	$ 315	$ 318	$ 311

Intangible assets - Reconciliat

Intangible assets - Reconciliation of changes in intangible assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of reconciliation of changes in intangible assets
Beginning balance	$ 26,188	$ 27,586
Transferred to assets held for sales (Note 17)	(1,504)
Amortisation for year	2,165	1,829	$ 1,701
Impairment	683	491	45
Ending balance	21,959	26,188	27,586
Cost
Disclosure of reconciliation of changes in intangible assets
Beginning balance	47,460	46,011	40,132
Additions through business combinations (Note 25)			7,307
Additions - separately acquired	513	441	898
Transferred to assets held for sales (Note 17)	(2,486)
Disposals	(646)	(378)	(495)
Exchange and other adjustments	(1,340)	1,386	(1,831)
Ending balance	43,501	47,460	46,011
Amortisation and impairment losses
Disclosure of reconciliation of changes in intangible assets
Beginning balance	(21,272)	(18,425)	(17,486)
Amortisation for year	2,165	1,829	1,701
Impairment	683	491	45
Disposals	(307)	71	164
Exchange and other adjustments	(767)	598	(643)
Ending balance	21,542	(21,272)	(18,425)
Product, marketing and distribution rights
Disclosure of reconciliation of changes in intangible assets
Beginning balance	25,255	26,508
Transferred to assets held for sales (Note 17)	(1,504)
Amortisation for year	2,016	1,627	1,454
Impairment	683	488	43
Ending balance	21,229	25,255	26,508
Product, marketing and distribution rights | Cost
Disclosure of reconciliation of changes in intangible assets
Beginning balance	42,913	41,603	35,318
Additions through business combinations (Note 25)			7,307
Additions - separately acquired	476	397	789
Transferred to assets held for sales (Note 17)	(2,486)
Disposals	(630)	(249)	(339)
Exchange and other adjustments	(1,137)	1,162	(1,472)
Ending balance	39,136	42,913	41,603
Product, marketing and distribution rights | Amortisation and impairment losses
Disclosure of reconciliation of changes in intangible assets
Beginning balance	(17,658)	(15,095)	(14,104)
Amortisation for year	2,016	1,627	1,454
Impairment	683	488	43
Disposals	(294)	19	25
Exchange and other adjustments	(652)	467	(481)
Ending balance	17,907	(17,658)	(15,095)
Other intangibles
Disclosure of reconciliation of changes in intangible assets
Beginning balance	632	744
Amortisation for year	69	118	162
Impairment	95	51	1
Ending balance	491	632	744
Other intangibles | Cost
Disclosure of reconciliation of changes in intangible assets
Beginning balance	2,636	2,580	2,795
Additions - separately acquired		7	32
Disposals		(67)	(15)
Exchange and other adjustments	(110)	116	(232)
Ending balance	2,526	2,636	2,580
Other intangibles | Amortisation and impairment losses
Disclosure of reconciliation of changes in intangible assets
Beginning balance	(2,004)	(1,836)	(1,773)
Amortisation for year	69	118	162
Impairment			1
Disposals			15
Exchange and other adjustments	(38)	50	(85)
Ending balance	2,035	(2,004)	(1,836)
Software development costs
Disclosure of reconciliation of changes in intangible assets
Beginning balance	301	334
Amortisation for year	80	84	85
Impairment		3	1
Ending balance	239	301	334
Software development costs | Cost
Disclosure of reconciliation of changes in intangible assets
Beginning balance	1,911	1,828	2,019
Additions - separately acquired	37	37	77
Disposals	(16)	(62)	(141)
Exchange and other adjustments	(93)	108	(127)
Ending balance	1,839	1,911	1,828
Software development costs | Amortisation and impairment losses
Disclosure of reconciliation of changes in intangible assets
Beginning balance	(1,610)	(1,494)	(1,609)
Amortisation for year	80	84	85
Impairment		3	1
Disposals	(13)	52	124
Exchange and other adjustments	(77)	81	(77)
Ending balance	$ 1,600	$ (1,610)	$ (1,494)

Intangible assets - Summary of

Intangible assets - Summary of amortisation charges (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of reconciliation of changes in intangible assets
Cost of sales	$ 187	$ 149	$ 124
Research and development expense	33	43	48
Selling, general and administrative costs	1,941	1,592	1,443
Other operating income and expense	4	45	86
Total	2,165	1,829	1,701
Product, marketing and distribution rights
Disclosure of reconciliation of changes in intangible assets
Cost of sales	187	149	124
Selling, general and administrative costs	1,829	1,478	1,327
Other operating income and expense			3
Total	2,016	1,627	1,454
Other intangibles
Disclosure of reconciliation of changes in intangible assets
Research and development expense	33	43	48
Selling, general and administrative costs	32	30	31
Other operating income and expense	4	45	83
Total	69	118	162
Software development costs
Disclosure of reconciliation of changes in intangible assets
Selling, general and administrative costs	80	84	85
Total	$ 80	$ 84	$ 85

Intangible assets - Summary o_2

Intangible assets - Summary of impairment charges (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of reconciliation of changes in intangible assets
Research and development expense	$ 539	$ 101	$ 33
Selling, general and administrative costs	144	390	12
Total	683	491	45
Product, marketing and distribution rights
Disclosure of reconciliation of changes in intangible assets
Research and development expense	539	101	32
Selling, general and administrative costs	144	387	11
Total	683	488	43
Other intangibles
Disclosure of reconciliation of changes in intangible assets
Research and development expense			1
Total	$ 95	51	1
Software development costs
Disclosure of reconciliation of changes in intangible assets
Selling, general and administrative costs		3	1
Total		$ 3	$ 1

Intangible assets - Termination

Intangible assets - Termination of R&D activities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of reconciliation of changes in intangible assets
Post-tax weighted average cost of capital	7.00%	7.00%	7.00%
Impairment	$ 683	$ 491	$ 45
Carrying value	21,959	26,188	27,586
Increase in impairment charge due to changes in assumptions of valuation model	$ 70
Group's valuation model	5
Reversal of impairment	$ 28
Byetta
Disclosure of reconciliation of changes in intangible assets
Carrying value	$ 316
Change in probability of a generic entry into the market	20.00%
Increase in impairment charge due to changes in assumptions of valuation model	$ 25
Launched products
Disclosure of reconciliation of changes in intangible assets
Impairment	144
Launched products | Eklira
Disclosure of reconciliation of changes in intangible assets
Impairment	114
Carrying value	396
Launched products | Movantik
Disclosure of reconciliation of changes in intangible assets
Impairment	30	174
Carrying value	59	106
Launched products | Byetta
Disclosure of reconciliation of changes in intangible assets
Impairment		92
Carrying value		407
Launched products | FluMist
Disclosure of reconciliation of changes in intangible assets
Impairment		121
Carrying value		267
Products in development | MEDI0680
Disclosure of reconciliation of changes in intangible assets
Impairment	470
Products in development | Tralokinumab
Disclosure of reconciliation of changes in intangible assets
Impairment		53
Products in development | Ardea
Disclosure of reconciliation of changes in intangible assets
Impairment	0
Carrying value	1,172
Other intangibles
Disclosure of reconciliation of changes in intangible assets
Impairment	95	51	1
Carrying value	$ 491	$ 632	$ 744

Intangible assets - Significant

Intangible assets - Significant intangible assets (Details) - Product, marketing and distribution rights	Dec. 31, 2018USD ($)
Acerta Pharma
Disclosure of intangible assets materials
Intangible assets material to entity	$ 6,745,000,000
Remaining amortisation period of intangible assets material to entity	14
ZS Pharma
Disclosure of intangible assets materials
Intangible assets material to entity	$ 3,067,000,000
Remaining amortisation period of intangible assets material to entity	13
Almirall and Actavis
Disclosure of intangible assets materials
Intangible assets material to entity	$ 733,000,000
Almirall and Actavis | Minimum
Disclosure of intangible assets materials
Remaining amortisation period of intangible assets material to entity	1
Almirall and Actavis | Maximum
Disclosure of intangible assets materials
Remaining amortisation period of intangible assets material to entity	20
Pearl Therapeutics
Disclosure of intangible assets materials
Intangible assets material to entity	$ 828,000,000
Remaining amortisation period of intangible assets material to entity	10
Omthera
Disclosure of intangible assets materials
Intangible assets material to entity	$ 533,000,000
RSV franchise | MedImmune
Disclosure of intangible assets materials
Intangible assets material to entity	$ 1,068,000,000
Remaining amortisation period of intangible assets material to entity	7
Farxiga/Forxiga | BMS
Disclosure of intangible assets materials
Intangible assets material to entity	$ 1,177,000,000
Remaining amortisation period of intangible assets material to entity	9
Bydureon | BMS
Disclosure of intangible assets materials
Intangible assets material to entity	$ 988,000,000
Remaining amortisation period of intangible assets material to entity	12
Onglyza | BMS
Disclosure of intangible assets materials
Intangible assets material to entity	$ 752,000,000
Remaining amortisation period of intangible assets material to entity	5
Other diabetes | BMS
Disclosure of intangible assets materials
Intangible assets material to entity	$ 795,000,000
Other diabetes | BMS | Minimum
Disclosure of intangible assets materials
Remaining amortisation period of intangible assets material to entity	4
Other diabetes | BMS | Maximum
Disclosure of intangible assets materials
Remaining amortisation period of intangible assets material to entity	7
Roxadustat | FibroGen
Disclosure of intangible assets materials
Intangible assets material to entity	$ 327,000,000
Merck
Disclosure of intangible assets materials
Intangible assets material to entity	$ 1,092,000,000
Merck | Minimum
Disclosure of intangible assets materials
Remaining amortisation period of intangible assets material to entity	1
Merck | Maximum
Disclosure of intangible assets materials
Remaining amortisation period of intangible assets material to entity	12
Merck | Ardea biosciences
Disclosure of intangible assets materials
Intangible assets material to entity	$ 1,172,000,000

Investments in associates and_3

Investments in associates and joint ventures - Rollforward (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investments in associates and joint ventures
At 1 January	$ 103	$ 99	$ 85
Additions	187	76	65
Share of after tax losses in associates and joint ventures	113	55	33
Unrecognised Profit on Transactions with Joint Ventures	64	27
Exchange adjustments	(24)	10	(18)
At 31 December	$ 89	$ 103	$ 99

Investments in associates and_4

Investments in associates and joint ventures - Narration (Details) $ in Millions	Sep. 26, 2018USD ($)director	Feb. 23, 2018USD ($)	Nov. 27, 2017USD ($)item	Dec. 01, 2015USD ($)	Apr. 30, 2014USD ($)	Mar. 31, 2016USD ($)item	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Less than 100% Subsidiaries and Joint Ventures
Total liabilities							$ 46,607	$ 46,712	$ 45,857
Net liabilities							14,044	16,642	16,669
Net liabilities attributable to AstraZeneca							12,468	$ 14,960	14,854
Entasis
Less than 100% Subsidiaries and Joint Ventures
Funds raised from third party investors						$ 25
Number of third party investors | item						4
Voting interest as a percentage	16.50%					49.00%		18.00%
Investments in associate							24
Gain or loss recognised on deconsolidation							0
Gain from IPO	$ 25
Number of board members representing AstraZeneca | director	1
Number of board members | director	14
Archigen Biotech Limited
Less than 100% Subsidiaries and Joint Ventures
Investments in associate							0
Net liabilities attributable to AstraZeneca							9
Provision for trade and other payables							$ 5
Viela Bio
Less than 100% Subsidiaries and Joint Ventures
Voting interest as a percentage		45.00%
Contribution to joint venture		$ 142
Ownership interest in joint venture as a percentage							40.90%
Consideration		142
Gain on sale		$ 63
China, Dizhe (Jiangsu) Pharmaceutical Co. Limited
Less than 100% Subsidiaries and Joint Ventures
Contribution to joint venture			$ 55
Ownership interest in joint venture as a percentage			48.00%
Number of potential medicines in pre-clinical development | item			3
Chinese Future Industry Investment Fund
Less than 100% Subsidiaries and Joint Ventures
Gain on sale			$ 28
Centus Biotherapeutics Limited
Less than 100% Subsidiaries and Joint Ventures
Contribution to joint venture				$ 45			$ 27	$ 20	10
Ownership interest in joint venture as a percentage				50.00%			50.00%
Archigen Biotech Limited
Less than 100% Subsidiaries and Joint Ventures
Contribution to joint venture					$ 70		$ 15		$ 30
Ownership interest in joint venture as a percentage					50.00%		50.00%
Archigen Biotech Limited
Less than 100% Subsidiaries and Joint Ventures
Net liabilities							$ (18)

Investments in associates and_5

Investments in associates and joint ventures - Financial information (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of associate and joint ventures
Non-current assets	$ 45,060	$ 50,204	$ 49,264
Current assets	15,591	13,150	13,262
Current liabilities	(16,292)	(16,383)	(15,256)
Net assets	14,044	16,642	16,669
Amount attributable to AstraZeneca	(12,468)	(14,960)	(14,854)
Total investments in subsidiaries, joint ventures and associates	89	103	99	$ 85
Associate and joint ventures
Disclosure of associate and joint ventures
Non-current assets	260	207	144
Current assets	233	158	128
Current liabilities	(71)	(41)	(20)
Net assets	422	324	252
Amount attributable to AstraZeneca	104	117	125
Exchange adjustments	(15)	(14)	(26)
Total investments in subsidiaries, joint ventures and associates	$ 89	$ 103	$ 99

Other investments (Details)

Other investments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
Other investments
Other investments - non-current	$ 933	$ 727	$ 833
Fixed deposits	80	37	40
Other investments - current	1,230	884	849
Equity securities
Other investments
Equity securities at fair value through other comprehensive income			833
Equity securities available for sale	933	727
Equity securities | Available-for-sale | Other operating income and expense
Other investments
Impairment charges	14	21
Fixed income securities
Other investments
Fixed income securities at fair value through profit and loss			$ 809
Fixed income securities available for sale	$ 1,150	$ 847

Other investments - Fair value

Other investments - Fair value hierarchy (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other investments
FVPL	$ 809
FVOCI	833
AFS		$ 2,083	$ 1,574
Level 1
Other investments
FVPL	809
FVOCI	667
AFS		1,408	933
Level 3
Other investments
FVOCI	$ 166
AFS		$ 675	$ 641

Other investments - Level 3 inv

Other investments - Level 3 investments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other investments
Assets at beginning of period	$ 63,354	$ 62,526
Assets at end of period	60,651	63,354	$ 62,526
Other investments
Other investments
Assets at beginning of period	675	641	352
Additions	79	53	210
Revaluations	(147)	(1)	110
Transfers out	(434)	(12)	(12)
Disposals	(6)	(15)	(2)
Impairments and exchange adjustments	(1)	9	(17)
Assets at end of period	$ 166	$ 675	$ 641

Derivative financial instrume_3

Derivative financial instruments - Assets and liabilities (Details) € in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)¥ / $	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2018€ / $	Dec. 31, 2018¥ / $	Dec. 31, 2018EUR (€)	Dec. 31, 2018USD ($)	Dec. 31, 2018
Disclosure of detailed information about hedges
Non-current assets		$ 504	$ 343				$ 157
Current assets		28	27				258
Current liabilities		(24)	(18)				(27)
Non-current liabilities		(4)	(117)				(4)
Total		504	$ 235				384
Interest rate on borrowings			5.90%
Fair value		$ 19,280	$ 18,174				19,588
Exchange rate	78.01			1.09	6.68
Basis spread on variable interest rate	1.27%
1.95% Callable bond
Disclosure of detailed information about hedges
Borrowings covered by hedges							750
Borrowings							1,000
Interest rate on borrowings		1.95%	1.95%					1.95%
0.25% Callable bond
Disclosure of detailed information about hedges
Borrowings | €						€ 500
Interest rate on borrowings		0.25%	0.25%					0.25%
0.75% Callable bond
Disclosure of detailed information about hedges
Borrowings | €						900
Interest rate on borrowings		0.75%	0.75%					0.75%
1.25% Callable bond
Disclosure of detailed information about hedges
Borrowings | €						800
Interest rate on borrowings		1.25%	1.25%					1.25%
0.875% Non-callable bond
Disclosure of detailed information about hedges
Borrowings covered by hedges | €						450
Borrowings | €						750
Interest rate on borrowings		0.875%	0.875%					0.875%
Interest rate swaps | Instruments designated at fair value through profit and loss
Disclosure of detailed information about hedges
Non-current assets		$ 53	$ 65				40
Total		53	65				40
Cross currency swaps | Japanese yen
Disclosure of detailed information about hedges
Current assets						750	750
Interest rate on borrowings								0.3452%
Fair value		223	242				213
Cross currency swaps | Chinese Renminbi
Disclosure of detailed information about hedges
Current assets						69	69
Interest rate on borrowings								4.796%
Fair value		11	29
Amount matured	$ 151
Other derivatives
Disclosure of detailed information about hedges
Current assets		16	8				45
Current liabilities		(21)	(18)				(27)
Total		(5)	(10)				18
Instruments in a fair value hedge relationship | 0.875% Non-callable bond
Disclosure of detailed information about hedges
Borrowings covered by hedges | €						300
Instruments in a fair value hedge relationship | Interest rate swaps
Disclosure of detailed information about hedges
Current assets			19
Current liabilities		(3)
Non-current liabilities			(2)
Total		(3)	17
Instruments in a fair value hedge relationship | Cross currency swaps
Disclosure of detailed information about hedges
Non-current assets		31					16
Total		31					16
Interest rate on borrowings								2.70%
Fair value		197	(115)				101
Exchange rate | € / $				1.14
Instruments designated in cash flow hedge
Disclosure of detailed information about hedges
Ineffectiveness on net investment hedge taken to profit	0	0	0
Instruments designated in cash flow hedge | 0.875% Non-callable bond
Disclosure of detailed information about hedges
Borrowings covered by hedges | €						450
Instruments designated in cash flow hedge | Cross currency swaps
Disclosure of detailed information about hedges
Non-current assets		197					101
Non-current liabilities			(115)
Total		197	(115)				101
Notional amount | €						€ 2,200
Investments in foreign operations
Disclosure of detailed information about hedges
Fair value		1,206	1,400				1,106
Investments in foreign operations | Cross currency swaps
Disclosure of detailed information about hedges
Non-current assets		223	278
Current assets		12					213
Non-current liabilities		(4)					(4)
Total		231	278				209
Investments in foreign operations | Cross currency swaps | Chinese Renminbi
Disclosure of detailed information about hedges
Fair value			$ 7
Fair value		$ 4					$ 4
Net investment hedge
Disclosure of detailed information about hedges
Ineffectiveness on net investment hedge taken to profit	$ 0

Derivative financial instrume_4

Derivative financial instruments - Interest rates (Details) - Derivatives	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Minimum
Disclosure of financial instruments by interest rate
Discount rate on cash flow projections	(0.40%)	1.70%	1.50%
Maximum
Disclosure of financial instruments by interest rate
Discount rate on cash flow projections	3.20%	2.20%	2.20%

Non-current other receivables (

Non-current other receivables (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of other non-current receivables
Non current other receivables	$ 515	$ 847	$ 901
Current prepayment	114	181	116
Amount of non current receivables from disposal of business		175	175
Shionogi
Disclosure of other non-current receivables
Non current prepayment	114	180	380
Moderna therapeutics
Disclosure of other non-current receivables
Non current other receivables	$ 146	$ 178	$ 178

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Inventories
Raw materials and consumables	$ 794	$ 794	$ 1,024	$ 811
Inventories in process	1,450	1,450	1,208	1,060
Finished goods and goods for resale	646	646	803	463
Inventories	2,890	2,890	3,035	2,334
Cost Of Inventories Recognised As Expense		2,659	2,493	2,644
Inventory write-offs	$ 75	$ 208	$ 109	$ 198

Current trade and other recei_3

Current trade and other receivables (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current trade and other receivables
Total trade and other current receivables	$ 5,574	$ 5,009	$ 4,573
Trade receivables - subject to factoring
Current trade and other receivables
Trade receivables	724	327	655
Due within one year
Current trade and other receivables
Trade receivables	3,033	2,818	2,625
Less: Amounts provided for doubtful debts (Note 26)	(38)	(16)	(42)
Net current trade and other receivables	2,995	2,802	2,583
Other receivables	1,143	793	852
Prepayments and accrued income	1,363	1,148	879
Total trade and other current receivables	5,501	4,743	4,314
Due after more than one year
Current trade and other receivables
Other receivables		156	140
Prepayments and accrued income	73	110	119
Total trade and other current receivables	$ 73	$ 266	$ 259

Cash and cash equivalents (Deta

Cash and cash equivalents (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018	Dec. 31, 2015
Cash and cash Equivalents
Cash at bank and in hand	$ 893	$ 784	$ 782
Short-term deposits	3,938	2,540	4,236
Cash and cash equivalents	4,831	3,324	5,018
Unsecured bank overdrafts	(160)	(152)	(94)
Cash and cash equivalents in the cash flow statement	4,671	3,172	4,924		$ 6,051
cash and cash equivalents Insurance solvency, capital and security requirements	$ 86	$ 93	$ 91
Money market funds
Cash and cash Equivalents
Cash and cash equivalents				$ 1,150

Cash and cash equivalents - Non

Cash and cash equivalents - Non-cash and other movements, within operating activities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash and cash equivalents.
Gains on disposal of short-term investments		$ (161)
Net gains/(losses) on disposal on non-current assets	$ 8	(24)	$ (29)
Changes on fair value of put option (Acerta Pharma)	(113)	(209)	(41)
Share-based payments charge for period	219	220	241
Settlement of share plan awards	(212)	(254)	(281)
Pension contributions	(174)	(157)	(192)
Pension charges recorded in operating profit	128	74	74
Foreign exchange and other	(146)	(13)	(264)
Total operating activities non-cash and other movements	$ (290)	$ (524)	$ (492)

Assets held for sale (Details)

Assets held for sale (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets held for sale
Assets held for sale	$ 982	$ 0	$ 0

Interest-bearing loans and bo_3

Interest-bearing loans and borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest bearing loans and borrowings
Current debt	$ 1,754	$ 2,247	$ 2,307
Non-current liabilities	17,359	15,560	$ 14,501
Interest rate on borrowings			5.90%
Overdrafts
Interest bearing loans and borrowings
Current debt	160	152	$ 94
Bank collateral
Interest bearing loans and borrowings
Current debt	384	513
Finance leases
Interest bearing loans and borrowings
Current debt		5	87
Non-current liabilities			6
5.9% Callable bond
Interest bearing loans and borrowings
Current debt			1,769
Floating rate notes due 2018
Interest bearing loans and borrowings
Current debt		399
Non-current liabilities			399
1.75% Callable bond
Interest bearing loans and borrowings
Current debt		$ 998
Non-current liabilities			$ 998
Interest rate on borrowings		1.75%	1.75%
1.95% Callable bond
Interest bearing loans and borrowings
Current debt	$ 999
Non-current liabilities		$ 999	$ 998
Interest rate on borrowings	1.95%	1.95%	1.95%
Commercial paper
Interest bearing loans and borrowings
Current debt	$ 211	$ 180	$ 357
0.875% Non-callable bond
Interest bearing loans and borrowings
Non-current liabilities	$ 854	$ 890	$ 782
Interest rate on borrowings	0.875%	0.875%	0.875%
0.25% Callable bond
Interest bearing loans and borrowings
Non-current liabilities	$ 570	$ 594	$ 522
Interest rate on borrowings	0.25%	0.25%	0.25%
Floating rate loan due 2022
Interest bearing loans and borrowings
Non-current liabilities	$ 250	$ 249
Callable Bond 2.375 Percent Due on 2020
Interest bearing loans and borrowings
Non-current liabilities	$ 1,594	$ 1,591	$ 1,589
Interest rate on borrowings	2.375%	2.375%	2.375%
Callable Bond 2.375 Percent Due on 2022
Interest bearing loans and borrowings
Non-current liabilities	$ 994	$ 992
Interest rate on borrowings	2.375%	2.375%
7% Guaranteed debentures
Interest bearing loans and borrowings
Non-current liabilities	$ 325	$ 347	$ 350
Interest rate on borrowings	7.00%	7.00%	7.00%
Floating rate notes due 2023
Interest bearing loans and borrowings
Non-current liabilities	$ 400
3.5% Callable bond
Interest bearing loans and borrowings
Non-current liabilities	$ 845
Interest rate on borrowings	3.50%
0.75% Callable bond
Interest bearing loans and borrowings
Non-current liabilities	$ 1,022	$ 1,067	$ 937
Interest rate on borrowings	0.75%	0.75%	0.75%
3.375% Callable bond
Interest bearing loans and borrowings
Non-current liabilities	$ 1,980	$ 1,978	$ 1,976
Interest rate on borrowings	3.375%	3.375%	3.375%
3.125% Callable bond
Interest bearing loans and borrowings
Non-current liabilities	$ 743	$ 742
Interest rate on borrowings	3.125%	3.125%	3.125%
1.25% Callable bond
Interest bearing loans and borrowings
Non-current liabilities	$ 903	$ 941	$ 827
Interest rate on borrowings	1.25%	1.25%	1.25%
4% Callable bond due in 2029
Interest bearing loans and borrowings
Non-current liabilities	$ 992
Interest rate on borrowings	4.00%
5.75% Non-callable bond
Interest bearing loans and borrowings
Non-current liabilities	$ 443	$ 468	$ 426
Interest rate on borrowings	5.75%	5.75%	5.75%
6.45% Callable bond
Interest bearing loans and borrowings
Non-current liabilities	$ 2,721	$ 2,720	$ 2,719
Interest rate on borrowings	6.45%	6.45%	6.45%
4% Callable bond due in 2042
Interest bearing loans and borrowings
Non-current liabilities	$ 987	$ 987	$ 986
Interest rate on borrowings	4.00%	4.00%	4.00%
4.375% Callable bond due in 2045
Interest bearing loans and borrowings
Non-current liabilities	$ 979	$ 979	$ 979
Interest rate on borrowings	4.375%	4.375%	4.375%
4..3.75% Callable bond due in 2048
Interest bearing loans and borrowings
Non-current liabilities	$ 736
Interest rate on borrowings	4.375%
Other loans
Interest bearing loans and borrowings
Non-current liabilities	$ 21	$ 16	$ 7

Interest-bearing loans and bo_4

Interest-bearing loans and borrowings - Rollforward (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)
Reconciliation of liabilities
Liabilities arising from financing activities at beginning of period	$ 17,807
Issue of loans	2,971
Repayment of loans	(1,400)
Movement in short term borrowings	(98)
Total changes in liabilities arising on financing activities	1,473
Movement in overdrafts	8
Exchange and other movements	(175)
Liabilities arising from financing activities at end of period	19,113
Current loans and borrowings
Reconciliation of liabilities
Liabilities arising from financing activities at beginning of period	2,247
Repayment of loans	(1,400)
Movement in short term borrowings	(98)
Total changes in liabilities arising on financing activities	(1,498)
Movement in overdrafts	8
Transfers	999
Exchange and other movements	(2)
Liabilities arising from financing activities at end of period	1,754
Non-current loans and borrowings
Reconciliation of liabilities
Liabilities arising from financing activities at beginning of period	15,560
Issue of loans	2,971
Total changes in liabilities arising on financing activities	2,971
Transfers	(999)
Exchange and other movements	(173)
Liabilities arising from financing activities at end of period	$ 17,359

Interest-bearing loans and bo_5

Interest-bearing loans and borrowings - Category of carrying values and fair values (Details) € in Millions, £ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018EUR (€)	Dec. 31, 2018GBP (£)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Category of carrying values and fair values
Total carrying value				$ 19,113	$ 17,807	$ 16,808
Fair value				19,588	19,280	$ 18,174
Interest rate on borrowings						5.90%
Interest rate swaps
Category of carrying values and fair values
Total carrying value				19,113	17,807	$ 16,808
Instruments at fair value through profit or loss
Category of carrying values and fair values
Total carrying value				325	347	350
Loss on fair value of bonds due to decrease credit risk	$ 8
Gain on fair value of bonds due to increase credit risk	$ 34
Amortised cost
Category of carrying values and fair values
Total carrying value				15,947	13,958	12,804
Instruments in a fair value hedge relationship
Category of carrying values and fair values
Total carrying value				346	900	1,368
Instruments designated in cash flow hedge
Category of carrying values and fair values
Total carrying value				2,495	2,602	2,286
Investments in foreign operations
Category of carrying values and fair values
Fair value				1,106	1,206	1,400
Investments in foreign operations | Amortised cost
Category of carrying values and fair values
Total carrying value				954	1,054	1,208
Overdrafts
Category of carrying values and fair values
Total carrying value				160	152	94
Fair value				160	152	94
Overdrafts | Amortised cost
Category of carrying values and fair values
Total carrying value				160	152	94
Finance leases | Due within one year
Category of carrying values and fair values
Total carrying value					5	87
Fair value					5	87
Finance leases | Due after more than one year
Category of carrying values and fair values
Total carrying value						6
Fair value						6
Finance leases | Amortised cost | Due within one year
Category of carrying values and fair values
Total carrying value					5	87
Finance leases | Amortised cost | Due after more than one year
Category of carrying values and fair values
Total carrying value						6
Loans | Due within one year
Category of carrying values and fair values
Total carrying value				1,594	2,090	2,126
Fair value				1,587	2,092	2,161
Loans | Due after more than one year
Category of carrying values and fair values
Total carrying value				17,359	15,560	14,495
Fair value				17,841	17,031	15,826
Loans | Instruments at fair value through profit or loss
Category of carrying values and fair values
Total carrying value				287
Loans | Instruments at fair value through profit or loss | Due after more than one year
Category of carrying values and fair values
Total carrying value				325	347	350
Loans | Amortised cost | Due within one year
Category of carrying values and fair values
Total carrying value				1,594	1,494	1,356
Loans | Amortised cost | Due after more than one year
Category of carrying values and fair values
Total carrying value				14,193	12,307	11,261
Loans | Instruments in a fair value hedge relationship | Due within one year
Category of carrying values and fair values
Total carrying value					596	770
Loans | Instruments in a fair value hedge relationship | Due after more than one year
Category of carrying values and fair values
Total carrying value				346	304	598
Loans | Instruments designated in cash flow hedge | Due after more than one year
Category of carrying values and fair values
Total carrying value				$ 2,495	$ 2,602	$ 2,286
0.875% Non-callable bond
Category of carrying values and fair values
Borrowings covered by hedges | €		€ 450
Borrowings | €		€ 750
Interest rate on borrowings		0.875%	0.875%	0.875%	0.875%	0.875%
Loss on fair value hedge adjustment				$ 19
0.875% Non-callable bond | Instruments in a fair value hedge relationship
Category of carrying values and fair values
Borrowings covered by hedges | €		€ 300
0.875% Non-callable bond | Instruments designated in cash flow hedge
Category of carrying values and fair values
Borrowings covered by hedges | €		450
1.75% Callable bond
Category of carrying values and fair values
Interest rate on borrowings					1.75%	1.75%
0.25% Callable bond
Category of carrying values and fair values
Borrowings | €		€ 500
Interest rate on borrowings		0.25%	0.25%	0.25%	0.25%	0.25%
7% Guaranteed debentures
Category of carrying values and fair values
Interest rate on borrowings		7.00%	7.00%	7.00%	7.00%	7.00%
0.75% Callable bond
Category of carrying values and fair values
Borrowings | €		€ 900
Interest rate on borrowings		0.75%	0.75%	0.75%	0.75%	0.75%
1.25% Callable bond
Category of carrying values and fair values
Borrowings | €		€ 800
Interest rate on borrowings		1.25%	1.25%	1.25%	1.25%	1.25%
1.95% Callable bond
Category of carrying values and fair values
Borrowings covered by hedges				$ 750
Borrowings				$ 1,000
Interest rate on borrowings		1.95%	1.95%	1.95%	1.95%	1.95%
5.75% Non-callable bond
Category of carrying values and fair values
Borrowings covered by hedges | £			£ 350
Borrowings | £			£ 350
Interest rate on borrowings		5.75%	5.75%	5.75%	5.75%	5.75%

Interest-bearing loans and bo_6

Interest-bearing loans and borrowings - Interest rates used to discount future cash flows (Details) - Borrowings	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Minimum
Interest rates used to discount future cash flows
Weighted average pre-tax discount rate	2.30%	1.90%	1.50%
Maximum
Interest rates used to discount future cash flows
Weighted average pre-tax discount rate	2.40%	2.20%	2.20%

Trade and other payables (Detai

Trade and other payables (Details) - USD ($) $ in Millions	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
Current liabilities
Trade payables	$ 1,720		$ 2,285	$ 1,680
Value added and payroll taxes and social security	204		243	240
Rebates, chargebacks, returns and other revenue accruals	4,043		3,264	3,601
Clinical trial accruals	993		922	696
Other accruals	3,951		3,324	2,714
Externalisation revenue contract liabilities	92
Contingent consideration	867		555	527
Other payables	971		1,048	1,028
Total	12,841		11,641	10,486
Contract liabilities within rebates, chargebacks, returns and other accruals	126	$ 138
Non-current liabilities
Accruals	7		143	292
Externalisation revenue contract liabilities	78
Contingent consideration	4,239		4,979	4,930
Other payables	608		895	2,365
Total	6,770		7,840	9,488
Trade payables
Trade payables, supply chain financing programme	166		64	0
Acerta Pharma
Non-current liabilities
Other payables	1,838		$ 1,823	$ 1,901
Contract Revenue
Current liabilities
Contract liabilities	139
Other Revenue
Current liabilities
Contract liabilities	104
Externalisation Revenue
Current liabilities
Contract liabilities	$ 35	$ 35

Trade and other payables - Cont

Trade and other payables - Contingent consideration (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in contingent liabilities in business combination
Contingent liabilities recognised in business combination at beginning of period	$ 5,534	$ 5,457	$ 6,411
Settlements	(349)	(434)	(293)
Revaluations	(495)	109	(1,158)
Discount unwind (Note 3)	416	402	497
Foreign exchange	(565)
Contingent liabilities recognised in business combination at end of period	5,106	5,534	5,457
BMS's share of Global Diabetes Alliance
Reconciliation of changes in contingent liabilities in business combination
Contingent liabilities recognised in business combination at beginning of period	4,477	4,240
Foreign exchange	(358)
Contingent liabilities recognised in business combination at end of period	3,983	4,477	4,240
Revaluations of contingent consideration	482	$ (208)	$ 999
Increase/decrease in contingent consideration balance with increase/decrease in sales of 10% compared with current estimates	$ 398
The increase/decrease in sales estimates	10.00%

Trade and other payables - Deve

Trade and other payables - Development and sales milestones payable (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of detailed information about business combination
Maximum future milestones	$ 5,106	$ 5,534	$ 5,457	$ 6,411
BMS's share of Global Diabetes Alliance
Disclosure of detailed information about business combination
Maximum future milestones	3,983	$ 4,477	$ 4,240
Maximum | Spirogen
Disclosure of detailed information about business combination
Maximum future milestones	216
Maximum | Amplimmune
Disclosure of detailed information about business combination
Maximum future milestones	275
Maximum | Omthera
Disclosure of detailed information about business combination
Maximum future milestones	120
Maximum | Pearl Therapeutics
Disclosure of detailed information about business combination
Maximum future milestones	390
Maximum | BMS's share of Global Diabetes Alliance
Disclosure of detailed information about business combination
Maximum future milestones	600
Maximum | Almirall
Disclosure of detailed information about business combination
Maximum future milestones	620
Maximum | Definiens Group
Disclosure of detailed information about business combination
Maximum future milestones	$ 150

Provisions (Details)

Provisions (Details) $ in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2019USD ($)payment	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Other Provisions
At January 1	$ 891	$ 1,468	$ 1,418	$ 1,242
Charge for year		201	602	988
Cash paid		(445)	(472)	(686)
Reversals		(316)	(169)	(79)
Exchange and other movements		(17)	89	(47)
At 31 December		891	1,468	1,418
Current provision					$ 506	$ 1,121	$ 1,065
Non current provision					385	347	353
Total	891	1,468	1,418	1,242	891	1,468	1,418
Due within one year
Other Provisions
Current provision					506	1,121	1,065
Due after more than one year
Other Provisions
Non current provision					385	347	353
Severance
Other Provisions
At January 1	226	358	487	403
Charge for year		94	225	578
Cash paid		(152)	(324)	(433)
Reversals		(58)	(75)	(40)
Exchange and other movements		(16)	45	(21)
At 31 December		226	358	487
Total	226	358	487	403	226	358	487
Environmental
Other Provisions
At January 1	97	59	59	67
Charge for year		65	11	11
Cash paid		(24)	(20)	(19)
Exchange and other movements		(3)	9
At 31 December		97	59	59
Total	97	59	59	67	97	59	59
Employee benefits
Other Provisions
At January 1	119	126	143	158
Charge for year		1	30	6
Cash paid		(9)	(43)	(21)
Reversals			(10)
Exchange and other movements		1	6
At 31 December		119	126	143
Total	119	126	143	158	119	126	143
Legal
Other Provisions
At January 1	198	654	438	357
Charge for year		11	281	223
Cash paid	(145)	(232)	(48)	(126)
Reversals		(230)	(40)
Exchange and other movements		(5)	23	(16)
At 31 December		198	654	438
Total	$ 198	654	438	357	198	654	438
Number of payments | payment	2
Other provisions.
Other Provisions
At January 1	$ 251	271	291	257
Charge for year		30	55	170
Cash paid		(28)	(37)	(87)
Reversals		(28)	(44)	(39)
Exchange and other movements		6	6	(10)
At 31 December		251	271	291
Total	$ 251	$ 271	$ 291	$ 257	$ 251	$ 271	$ 291

Post-retirement benefits - Pens

Post-retirement benefits - Pensions (Details) £ in Millions, $ in Millions	1 Months Ended		3 Months Ended	12 Months Ended
	Mar. 31, 2018GBP (£)	Mar. 31, 2018USD ($)	Mar. 31, 2019GBP (£)	Dec. 31, 2018GBP (£)plancountry	Dec. 31, 2018USD ($)employeeplancountry	Dec. 31, 2017GBP (£)	Dec. 31, 2017USD ($)employeeinstallment	Dec. 31, 2016employee	Mar. 31, 2016GBP (£)	Mar. 31, 2016USD ($)
Post-retirement benefits
Number of employees | employee					64,400		61,100	59,700
Plan liabilities					$ 11,365		$ 12,505
Market value of plan assets					$ 8,854		$ 9,922
Pension schemes | UK, US and Sweden
Post-retirement benefits
Defined benefit obligations as a percentage of total					91.00%
Number of main defined benefit pension obligation countries | plan				3	3
Pension schemes | UK defined benefit plans
Post-retirement benefits
Defined benefit obligations as a percentage of total					62.00%
Inflation assumption (as a percent)					3.20%		3.10%		2.60%	2.60%
Salary increases assumption (as a percent)									0.00%	0.00%
Pension increases assumption (as a percent)					3.00%		2.90%		2.85%	2.85%
Investment returns assumption (as a percent)									3.71%	3.71%
Plan liabilities					$ 7,052		$ 8,032		£ 5,265	$ 6,710
Market value of plan assets					5,989		$ 6,749		£ 4,492	$ 5,724
Refund adjustments required in respect of governing documentation | £				£ 0
GMP equalisation past service cost					$ 23
Pension schemes | Rest of Group defined benefit plans
Post-retirement benefits
Inflation assumption (as a percent)					1.10%		2.20%
Salary increases assumption (as a percent)					2.00%		3.10%
Pension increases assumption (as a percent)					1.10%		1.10%
Plan liabilities					$ 4,313		$ 4,473
Market value of plan assets					$ 2,865		$ 3,173
UK defined benefit pension | UK defined benefit plans
Post-retirement benefits
Number of employees | employee					700
Contribution	£ 51	$ 68
Letter of credit for additional deficit recovery contribution payment | £						£ 126
Number of equal installments | installment							5
GMP equalisation past service cost				£ 17	$ 23
UK defined benefit pension | UK defined benefit plans | Forecast
Post-retirement benefits
Contribution | £			£ 51
UK defined benefit pension | UK defined benefit plans | Due within one year
Post-retirement benefits
Contribution	£ 26	$ 35
UK defined benefit pension | UK defined benefit plans | Due within one year | Forecast
Post-retirement benefits
Further contribution | £			£ 27
US and Sweden defined benefit pension | Rest of Group defined benefit plans | US and Sweden
Post-retirement benefits
Defined benefit obligations as a percentage of total					29.00%
US defined benefit pension | Rest of Group defined benefit plans | US
Post-retirement benefits
Plan liabilities					$ 1,463
Market value of plan assets					1,379
Sweden defined benefit pension | Rest of Group defined benefit plans | SWEDEN
Post-retirement benefits
Plan liabilities					1,872
Market value of plan assets					$ 1,017
Three main country defined benefit plans | UK, US and Sweden
Post-retirement benefits
Number of main defined benefit pension obligation countries | country				3	3
Three main country defined benefit plans | UK, US and Sweden | Due within one year
Post-retirement benefits
Further contribution					$ 32

Post-retirement benefits - Post

Post-retirement benefits - Post-retirement benefits other than pensions (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)person	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Post-retirement benefits
Cost of post-retirement benefits	$ 341	$ 304
Market value of plan assets	8,854	9,922
Plan liabilities	$ 11,365	12,505
Post-retirement defined benefits other than pensions
Post-retirement benefits
Retired employees and covered dependants that currently benefit | person	3,215
Current employees that will be eligible on their retirement | person	2,231
Cost of post-retirement benefits	$ 5	$ 14	$ 17
Market value of plan assets	260
Plan liabilities	$ 263

Post-retirement benefits - Assu

Post-retirement benefits - Assumptions (Details) £ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018GBP (£)	Dec. 31, 2018USD ($)	Dec. 31, 2017	Mar. 31, 2016
Post-retirement benefits
Retirement age used in life expectancy assumption	65 years	65 years
Long-term improvement rate of Mortality Projections Model			1.00%
Pension schemes | UK defined benefit plans
Post-retirement benefits
Inflation assumption (as a percent)	3.20%	3.20%	3.10%	2.60%
Rate of increase in salaries (as a percent)				0.00%
Rate of increase in pensions in payment (as a percent)	3.00%	3.00%	2.90%	2.85%
Discount rate - defined benefit obligation (as a percent)	2.80%	2.80%	2.50%
Discount rate - interest cost	2.40%	2.40%	2.50%
Discount rate - service cost	2.50%	2.50%	2.70%
Member who will transfer out (as a percentage)	30.00%	30.00%
Reduction in liabilities due to transfers	£ 53	$ (70)
Weighted average duration of the post-retirement scheme obligations	16 years	16 years
Pension schemes | UK defined benefit plans | Life expectancy assumptions at age 65 for male members retiring in 2017 (2016)
Post-retirement benefits
Life expectancy assumption	23 years 2 months 12 days	23 years 2 months 12 days	23 years 8 months 12 days
Pension schemes | UK defined benefit plans | Life expectancy assumptions at age 65 for male members expected to retire in 2037 (2036)
Post-retirement benefits
Life expectancy assumption	24 years 8 months 12 days	24 years 8 months 12 days	24 years 9 months 18 days
Pension schemes | Rest of Group defined benefit plans
Post-retirement benefits
Inflation assumption (as a percent)	1.10%	1.10%	2.20%
Rate of increase in salaries (as a percent)	2.00%	2.00%	3.10%
Rate of increase in pensions in payment (as a percent)	1.10%	1.10%	1.10%
Discount rate - defined benefit obligation (as a percent)	3.00%	3.00%	3.00%
Discount rate - interest cost	2.50%	2.50%	2.70%
Discount rate - service cost	2.90%	2.90%	3.50%
Weighted average duration of the post-retirement scheme obligations	15 years	15 years
Pension schemes | Rest of Group defined benefit plans | US | Life expectancy assumptions at age 65 for male members retiring in 2017 (2016)
Post-retirement benefits
Life expectancy assumption	22 years 2 months 12 days	22 years 2 months 12 days	20 years 9 months 18 days
Pension schemes | Rest of Group defined benefit plans | US | Life expectancy assumptions at age 65 for male members expected to retire in 2037 (2036)
Post-retirement benefits
Life expectancy assumption	22 years 9 months 18 days	22 years 9 months 18 days	23 years
Pension schemes | Rest of Group defined benefit plans | SWEDEN | Life expectancy assumptions at age 65 for male members retiring in 2017 (2016)
Post-retirement benefits
Life expectancy assumption	21 years 10 months 24 days	21 years 10 months 24 days	21 years 10 months 24 days
Pension schemes | Rest of Group defined benefit plans | SWEDEN | Life expectancy assumptions at age 65 for male members expected to retire in 2037 (2036)
Post-retirement benefits
Life expectancy assumption	23 years 7 months 6 days	23 years 7 months 6 days	23 years 7 months 6 days

Post-retirement benefits - Risk

Post-retirement benefits - Risks (Details) - Pension schemes - UK defined benefit plans $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)person	Dec. 31, 2017	Dec. 31, 2013
Post-retirement benefits
Defined benefit obligations as a percentage of total	62.00%
Percentage of Pension Fund in growth assets	72.50%
Currency risk of plan assets hedged (as a percent)	80.00%
Interest rate risk of plan assets hedged (as a percent)	85.00%	80.00%
Expected interest rate risk of plan assets hedged (as a percent)	100.00%
Annual inflation increase cap (as a percent)	5.00%
Inflation risk of plan assets hedged (as a percent)	88.00%	85.00%
Expected inflation risk of plan assets hedged (as a percent)	100.00%
Derivatives: Longevity swap
Post-retirement benefits
Period under hedge			75 years
Number of current pensioners | person	10,000
Defined benefit obligation covered by hedge	$ 2,100
Period of increase in life expectancy to receive cash under hedge	1 year
Increase in pension fund assets from hedged increase in life expectancy	$ 217

Post-retirement benefits - Sche

Post-retirement benefits - Scheme assets and obligations (Detail) £ in Millions, $ in Millions	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Mar. 31, 2016GBP (£)	Mar. 31, 2016USD ($)
Scheme assets
Cash and cash equivalents	$ 301	$ 207
Others	251	268
Scheme deficit
Total fair value of scheme assets	8,854	9,922
Total value of scheme obligations	(11,365)	(12,505)
Deficit in the scheme as recognised in the Consolidated Statement of Financial Position	(2,511)	(2,583)
Quoted
Scheme assets
Cash and cash equivalents	120	63
Others	1	2
Scheme deficit
Total fair value of scheme assets	3,119	3,408
Unquoted
Scheme assets
Cash and cash equivalents	181	144
Others	250	266
Scheme deficit
Total fair value of scheme assets	5,735	6,514
Scheme obligations
Scheme deficit
Total value of scheme obligations	(11,365)	(12,505)	$ (11,302)
Active membership
Scheme deficit
Total value of scheme obligations	(2,219)	(1,832)
Deferred membership
Scheme deficit
Total value of scheme obligations	(2,880)	(3,686)
Pensioners
Scheme deficit
Total value of scheme obligations	(6,266)	(6,987)
Government bonds
Scheme assets
Debt	1,924	2,180
Government bonds | Quoted
Scheme assets
Debt	1,924	2,135
Government bonds | Unquoted
Scheme assets
Debt		45
Corporate bonds
Scheme assets
Debt	870	886
Corporate bonds | Quoted
Scheme assets
Debt	870	849
Corporate bonds | Unquoted
Scheme assets
Debt		37
Derivatives
Scheme assets
Derivatives:	(41)	(223)
Derivatives | Quoted
Scheme assets
Derivatives:	3	(12)
Derivatives | Unquoted
Scheme assets
Derivatives:	(44)	(211)
Investment funds: Listed Equities
Scheme assets
Investment funds:	1,588	1,966
Investment funds: Listed Equities | Quoted
Scheme assets
Investment funds:	201	371
Investment funds: Listed Equities | Unquoted
Scheme assets
Investment funds:	1,387	1,595
Investment funds:Global Macro Hedge
Scheme assets
Investment funds:	1,013	1,400
Investment funds:Global Macro Hedge | Unquoted
Scheme assets
Investment funds:	1,013	1,400
Investment funds:Diversified growth/Multi Strategy
Scheme assets
Investment funds:	2,161	2,337
Investment funds:Diversified growth/Multi Strategy | Unquoted
Scheme assets
Investment funds:	2,161	2,337
Investment funds:Multi-asset credit
Scheme assets
Investment funds:	787	901
Investment funds:Multi-asset credit | Unquoted
Scheme assets
Investment funds:	787	901
Pension schemes | UK defined benefit plans
Scheme deficit
Total fair value of scheme assets	5,989	6,749		£ 4,492	$ 5,724
Total value of scheme obligations	(7,052)	(8,032)		£ (5,265)	$ (6,710)
Deficit in the scheme as recognised in the Consolidated Statement of Financial Position	(1,063)	(1,283)
Pension schemes | UK defined benefit plans | Quoted
Scheme assets
Cash and cash equivalents	39	40
Scheme deficit
Total fair value of scheme assets	1,764	2,096
Pension schemes | UK defined benefit plans | Unquoted
Scheme assets
Cash and cash equivalents	176	121
Scheme deficit
Total fair value of scheme assets	4,225	4,653
Pension schemes | UK defined benefit plans | Scheme obligations
Scheme deficit
Total value of scheme obligations	(7,052)	(8,032)	(7,118)
Pension schemes | UK defined benefit plans | Active membership
Scheme deficit
Total value of scheme obligations	(751)	(814)
Pension schemes | UK defined benefit plans | Deferred membership
Scheme deficit
Total value of scheme obligations	(1,665)	(1,998)
Pension schemes | UK defined benefit plans | Pensioners
Scheme deficit
Total value of scheme obligations	(4,636)	(5,220)
Pension schemes | UK defined benefit plans | Government bonds | Quoted
Scheme assets
Debt	1,725	2,056
Pension schemes | UK defined benefit plans | Corporate bonds | Unquoted
Scheme assets
Debt		37
Pension schemes | UK defined benefit plans | Derivatives | Unquoted
Scheme assets
Derivatives:	(189)	(237)
Pension schemes | UK defined benefit plans | Investment funds: Listed Equities | Unquoted
Scheme assets
Investment funds:	1,197	1,174
Pension schemes | UK defined benefit plans | Investment funds:Global Macro Hedge | Unquoted
Scheme assets
Investment funds:	733	1,004
Pension schemes | UK defined benefit plans | Investment funds:Diversified growth/Multi Strategy | Unquoted
Scheme assets
Investment funds:	1,712	1,921
Pension schemes | UK defined benefit plans | Investment funds:Multi-asset credit | Unquoted
Scheme assets
Investment funds:	596	633
Pension schemes | Rest of Group defined benefit plans
Scheme deficit
Total fair value of scheme assets	2,865	3,173
Total value of scheme obligations	(4,313)	(4,473)
Deficit in the scheme as recognised in the Consolidated Statement of Financial Position	(1,448)	(1,300)
Pension schemes | Rest of Group defined benefit plans | Quoted
Scheme assets
Cash and cash equivalents	81	23
Others	1	2
Scheme deficit
Total fair value of scheme assets	1,355	1,312
Pension schemes | Rest of Group defined benefit plans | Unquoted
Scheme assets
Cash and cash equivalents	5	23
Others	250	266
Scheme deficit
Total fair value of scheme assets	1,510	1,861
Pension schemes | Rest of Group defined benefit plans | Scheme obligations
Scheme deficit
Total value of scheme obligations	(4,313)	(4,473)	$ (4,184)
Pension schemes | Rest of Group defined benefit plans | Active membership
Scheme deficit
Total value of scheme obligations	(1,468)	(1,018)
Pension schemes | Rest of Group defined benefit plans | Deferred membership
Scheme deficit
Total value of scheme obligations	(1,215)	(1,688)
Pension schemes | Rest of Group defined benefit plans | Pensioners
Scheme deficit
Total value of scheme obligations	(1,630)	(1,767)
Pension schemes | Rest of Group defined benefit plans | Government bonds | Quoted
Scheme assets
Debt	199	79
Pension schemes | Rest of Group defined benefit plans | Government bonds | Unquoted
Scheme assets
Debt		45
Pension schemes | Rest of Group defined benefit plans | Corporate bonds | Quoted
Scheme assets
Debt	870	849
Pension schemes | Rest of Group defined benefit plans | Derivatives | Quoted
Scheme assets
Derivatives:	3	(12)
Pension schemes | Rest of Group defined benefit plans | Derivatives | Unquoted
Scheme assets
Derivatives:	145	26
Pension schemes | Rest of Group defined benefit plans | Investment funds: Listed Equities | Quoted
Scheme assets
Investment funds:	201	371
Pension schemes | Rest of Group defined benefit plans | Investment funds: Listed Equities | Unquoted
Scheme assets
Investment funds:	190	421
Pension schemes | Rest of Group defined benefit plans | Investment funds:Global Macro Hedge | Unquoted
Scheme assets
Investment funds:	280	396
Pension schemes | Rest of Group defined benefit plans | Investment funds:Diversified growth/Multi Strategy | Unquoted
Scheme assets
Investment funds:	449	416
Pension schemes | Rest of Group defined benefit plans | Investment funds:Multi-asset credit | Unquoted
Scheme assets
Investment funds:	$ 191	$ 268

Post-retirement benefits - Chan

Post-retirement benefits - Change in fair value of scheme assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Movement
Actual return on the plan assets		$ 473
Scheme assets
Movement
Beginning of year	$ 9,922	9,116
Interest income on scheme assets	235	240
Expenses	(14)	(18)
Actuarial gains (losses)	(474)	233
Exchange and other adjustments	(372)	772
Employer contributions	174	157
Participant contributions	3	3
Benefits paid	(620)	(581)
End of year	8,854	9,922
Actual return on the plan assets	239	473
Pension schemes | UK defined benefit plans | Scheme assets
Movement
Beginning of year	6,749	6,137
Interest income on scheme assets	156	159
Expenses	(5)	(6)
Actuarial gains (losses)	(351)	45
Exchange and other adjustments	(349)	596
Employer contributions	143	123
Participant contributions	2	3
Benefits paid	(356)	(308)
End of year	5,989	6,749
Pension schemes | Rest of Group defined benefit plans | Scheme assets
Movement
Beginning of year	3,173	2,979
Interest income on scheme assets	79	81
Expenses	(9)	(12)
Actuarial gains (losses)	(123)	188
Exchange and other adjustments	(23)	176
Employer contributions	31	34
Participant contributions	1
Benefits paid	(264)	(273)
End of year	$ 2,865	$ 3,173

Post-retirement benefits - Move

Post-retirement benefits - Movement in and components of scheme obligations (Details) £ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Mar. 31, 2016GBP (£)	Mar. 31, 2016USD ($)
Movement
Beginning of year	$ 12,505
End of year	11,365	$ 12,505
Obligations of plans	(12,505)	(12,505)
Scheme obligations
Movement
Beginning of year	12,505	11,302
Current service cost	(74)	(87)
Past service credit/(cost)	(40)	31
Participant contributions	(3)	(3)
Benefits paid	620	581
Interest expense on post-retirement scheme obligations	(287)	(289)
Actuarial (losses) gains on defined benefit obligation	428	(474)
Exchange and other adjustments	496	(962)
End of year	11,365	12,505
Obligations of plans	(12,505)	(11,302)
Funded - pension schemes
Movement
Beginning of year	11,711
End of year	10,618	11,711
Obligations of plans	(11,711)	(11,711)
Funded - post-retirement healthcare
Movement
Beginning of year	245
End of year	230	245
Obligations of plans	(245)	(245)
Unfunded - pension schemes
Movement
Beginning of year	515
End of year	483	515
Obligations of plans	(515)	(515)
Unfunded - post-retirement healthcare
Movement
Beginning of year	34
End of year	34	34
Obligations of plans	(34)	(34)
Pension schemes | UK defined benefit plans
Movement
Beginning of year	8,032
End of year	7,052	8,032
Obligations of plans	(8,032)	(8,032)	£ (5,265)	$ (6,710)
Pension schemes | UK defined benefit plans | Scheme obligations
Movement
Beginning of year	8,032	7,118
Current service cost	(23)	(23)
Past service credit/(cost)	(34)	(39)
Participant contributions	(2)	(3)
Benefits paid	356	308
Interest expense on post-retirement scheme obligations	(185)	(184)
Actuarial (losses) gains on defined benefit obligation	472	(272)
Exchange and other adjustments	396	(701)
End of year	7,052	8,032
Obligations of plans	(8,032)	(7,118)
Pension schemes | UK defined benefit plans | Funded - pension schemes
Movement
Beginning of year	8,013
End of year	7,034	8,013
Obligations of plans	(8,013)	(8,013)
Pension schemes | UK defined benefit plans | Unfunded - post-retirement healthcare
Movement
Beginning of year	19
End of year	18	19
Obligations of plans	(19)	(19)
Pension schemes | Rest of Group defined benefit plans
Movement
Beginning of year	4,473
End of year	4,313	4,473
Obligations of plans	(4,473)	(4,473)
Pension schemes | Rest of Group defined benefit plans | Scheme obligations
Movement
Beginning of year	4,473	4,184
Current service cost	(51)	(64)
Past service credit/(cost)	(6)	70
Participant contributions	(1)
Benefits paid	264	273
Interest expense on post-retirement scheme obligations	(102)	(105)
Actuarial (losses) gains on defined benefit obligation	(44)	(202)
Exchange and other adjustments	100	(261)
End of year	4,313	4,473
Obligations of plans	(4,473)	(4,184)
Pension schemes | Rest of Group defined benefit plans | Funded - pension schemes
Movement
Beginning of year	3,698
End of year	3,584	3,698
Obligations of plans	(3,698)	(3,698)
Pension schemes | Rest of Group defined benefit plans | Funded - post-retirement healthcare
Movement
Beginning of year	245
End of year	230	245
Obligations of plans	(245)	(245)
Pension schemes | Rest of Group defined benefit plans | Unfunded - pension schemes
Movement
Beginning of year	515
End of year	483	515
Obligations of plans	(515)	(515)
Pension schemes | Rest of Group defined benefit plans | Unfunded - post-retirement healthcare
Movement
Beginning of year	15
End of year	16	15
Obligations of plans	$ (15)	$ (15)

Post-retirement benefits - Amou

Post-retirement benefits - Amounts charged to comprehensive income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Post-retirement benefits
Current service cost	$ (74)	$ (87)
Past service credit/(cost)	(40)	31
Expenses	(14)	(18)
Total charge to operating profit	(128)	(74)
Interest income on scheme assets	235	240
Interest expense on post-retirement scheme obligations	(287)	(289)
Net interest on post-employment defined benefit plan liabilities	(52)	(49)	$ (63)
Charge before taxation	(180)	(123)
Other comprehensive income
Difference between the actual return and the expected return on the post-retirement scheme assets	(474)	233
Experience gains/(losses) arising on the post-retirement scheme obligations	(72)	(54)
Changes in financial assumptions underlying the present value of the post-retirement scheme obligations	393	(475)
Changes in demographic assumptions	107	54
Remeasurement of the defined benefit liability	(46)	(242)	$ (575)
Group costs in respect of defined contribution schemes	341	304
Pension schemes | UK defined benefit plans
Post-retirement benefits
Current service cost	(23)	(23)
Past service credit/(cost)	(34)	(39)
Expenses	(5)	(6)
Total charge to operating profit	(62)	(68)
Interest income on scheme assets	156	159
Interest expense on post-retirement scheme obligations	(185)	(184)
Net interest on post-employment defined benefit plan liabilities	(29)	(25)
Charge before taxation	(91)	(93)
Other comprehensive income
Difference between the actual return and the expected return on the post-retirement scheme assets	(351)	45
Experience gains/(losses) arising on the post-retirement scheme obligations	(26)	(50)
Changes in financial assumptions underlying the present value of the post-retirement scheme obligations	389	(261)
Changes in demographic assumptions	109	39
Remeasurement of the defined benefit liability	121	(227)
GMP equalisation past service cost	23
Pension schemes | Rest of Group defined benefit plans
Post-retirement benefits
Current service cost	(51)	(64)
Past service credit/(cost)	(6)	70
Expenses	(9)	(12)
Total charge to operating profit	(66)	(6)
Interest income on scheme assets	79	81
Interest expense on post-retirement scheme obligations	(102)	(105)
Net interest on post-employment defined benefit plan liabilities	(23)	(24)
Charge before taxation	(89)	(30)
Other comprehensive income
Difference between the actual return and the expected return on the post-retirement scheme assets	(123)	188
Experience gains/(losses) arising on the post-retirement scheme obligations	(46)	(4)
Changes in financial assumptions underlying the present value of the post-retirement scheme obligations	4	(214)
Changes in demographic assumptions	(2)	15
Remeasurement of the defined benefit liability	$ (167)	$ (15)

Post-retirement benefits - Effe

Post-retirement benefits - Effect of change in significant actuarial assumptions (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)plan	Dec. 31, 2017USD ($)
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Actuarial assumption increase (as a percent)	0.50%	0.50%
Actuarial assumption decrease (as a percent)	0.50%	0.50%
Discount rate
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Effect of increase in actuarial assumption on defined benefit pension obligation	$ 750	$ 860
Effect of decrease in actuarial assumption on defined benefit pension obligation	$ (843)	$ (972)
Inflation rate
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Actuarial assumption increase (as a percent)	0.50%	0.50%
Effect of increase in actuarial assumption on defined benefit pension obligation	$ (615)	$ (691)
Actuarial assumption decrease (as a percent)	0.50%	0.50%
Effect of decrease in actuarial assumption on defined benefit pension obligation	$ 572	$ 641
Rate of increase in salaries
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Actuarial assumption increase (as a percent)	0.50%	0.50%
Effect of increase in actuarial assumption on defined benefit pension obligation	$ (52)	$ (51)
Actuarial assumption decrease (as a percent)	0.50%	0.50%
Effect of decrease in actuarial assumption on defined benefit pension obligation	$ 48	$ 47
Mortality rate
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Actuarial assumption increase	1 year	1 year
Effect of increase in actuarial assumption on defined benefit pension obligation	$ (393)	$ (426)
Actuarial assumption decrease	1 year	1 year
Effect of decrease in actuarial assumption on defined benefit pension obligation	$ 394	$ 428
Pension schemes | UK, US and Sweden
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Number of main defined benefit pension obligation countries | plan	3
Pension schemes | UK defined benefit plans | Discount rate
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Effect of increase in actuarial assumption on defined benefit pension obligation	$ 520	618
Effect of decrease in actuarial assumption on defined benefit pension obligation	(586)	(703)
Pension schemes | UK defined benefit plans | Inflation rate
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Effect of increase in actuarial assumption on defined benefit pension obligation	(444)	(526)
Effect of decrease in actuarial assumption on defined benefit pension obligation	421	495
Pension schemes | UK defined benefit plans | Mortality rate
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Effect of increase in actuarial assumption on defined benefit pension obligation	(301)	(337)
Effect of decrease in actuarial assumption on defined benefit pension obligation	302	337
Pension schemes | UK defined benefit plans | Mortality rate | Longevity swap
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Effect of increase in actuarial assumption on defined benefit pension obligation, covered by longevity swap		217
Effect of decrease in actuarial assumption on defined benefit pension obligation, covered by longevity swap		(212)
Pension schemes | Rest of Group defined benefit plans | US | Discount rate
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Effect of increase in actuarial assumption on defined benefit pension obligation	78	95
Effect of decrease in actuarial assumption on defined benefit pension obligation	(83)	(101)
Pension schemes | Rest of Group defined benefit plans | US | Mortality rate
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Effect of increase in actuarial assumption on defined benefit pension obligation	(24)	(26)
Effect of decrease in actuarial assumption on defined benefit pension obligation	24	27
Pension schemes | Rest of Group defined benefit plans | SWEDEN | Discount rate
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Effect of increase in actuarial assumption on defined benefit pension obligation	152	147
Effect of decrease in actuarial assumption on defined benefit pension obligation	(174)	(168)
Pension schemes | Rest of Group defined benefit plans | SWEDEN | Inflation rate
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Effect of increase in actuarial assumption on defined benefit pension obligation	(171)	(165)
Effect of decrease in actuarial assumption on defined benefit pension obligation	151	146
Pension schemes | Rest of Group defined benefit plans | SWEDEN | Rate of increase in salaries
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Effect of increase in actuarial assumption on defined benefit pension obligation	(52)	(51)
Effect of decrease in actuarial assumption on defined benefit pension obligation	48	47
Pension schemes | Rest of Group defined benefit plans | SWEDEN | Mortality rate
Effect of a change in the significant actuarial assumptions used to determine the retirement benefits obligations
Effect of increase in actuarial assumption on defined benefit pension obligation	(68)	(63)
Effect of decrease in actuarial assumption on defined benefit pension obligation	$ 68	$ 64

Reserves (Details)

Reserves (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of reserves within equity [line items]
Goodwill written off	$ 619	$ 631	$ 613
Retained earnings.
Disclosure of reserves within equity [line items]
Number of shares deducted from retained earnings	(456,792)	(476,504)	(276,303)
Amount of shares deducted from retained earnings	$ (22)	$ (22)	$ (19)

Reserves - Reconciliation (Deta

Reserves - Reconciliation (Details) € in Millions, £ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018EUR (€)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2018GBP (£)	Dec. 31, 2018USD ($)	Dec. 31, 1999USD ($)	Dec. 31, 1993GBP (£)
Disclosure of reserves within equity [line items]
Foreign exchange arising on consolidation		$ (450)	$ 536	$ (1,050)
Foreign exchange arising on designating borrowings in net investment hedges		(520)	505	(591)
Fair value movements on derivatives designated in net investment hedges		(8)	(48)	$ (4)
Foreign exchange arising on net investment hedges		45
Interest rate on borrowings				5.90%
Foreign exchange change arising on contingent consideration liabilities		(565)
Derivative financial instruments			28	$ 27		$ 258
Other reserves
Disclosure of reserves within equity [line items]
Reserves from cancellation of share premium account | £								£ 1,255
Reserve from redenomination of share capital							$ (157)
Foreign currency translation reserve
Disclosure of reserves within equity [line items]
Reserve of cash flow hedges | £					£ 154
Retained earnings.
Disclosure of reserves within equity [line items]
Cumulative translation differences included within retained earnings, beginning balance		(1,017)	(2,028)	(372)
Foreign exchange arising on consolidation		(450)	536	(1,050)
Exchange adjustments on goodwill (recorded against other reserves)		(12)	18	(11)
Foreign exchange arising on designating borrowings in net investment hedges		(520)	505	(591)
Fair value movements on derivatives designated in net investment hedges		(8)	(48)	(4)
Net exchange movement in retained earnings		(990)	1,011	(1,656)
Cumulative translation differences included within retained earnings, ending balance		(2,007)	(1,017)	(2,028)
Reserve of cash flow hedges			$ 76	$ 80		$ 37
Acerta Pharma
Disclosure of reserves within equity [line items]
Foreign exchange change arising on contingent consideration liabilities		(169)
BMS's share of Global Diabetes Alliance
Disclosure of reserves within equity [line items]
Foreign exchange change arising on contingent consideration liabilities		(358)
Almirall
Disclosure of reserves within equity [line items]
Foreign exchange change arising on contingent consideration liabilities		(32)
Definiens Group
Disclosure of reserves within equity [line items]
Foreign exchange change arising on contingent consideration liabilities		(6)
5.75% Non-callable bond
Disclosure of reserves within equity [line items]
Foreign exchange arising on net investment hedges		25
Borrowings | £					£ 350
Interest rate on borrowings	5.75%		5.75%	5.75%	5.75%	5.75%
Borrowings covered by hedges | £					£ 350
0.875% Non-callable bond
Disclosure of reserves within equity [line items]
Foreign exchange arising on net investment hedges		20
Borrowings | €	€ 750
Interest rate on borrowings	0.875%		0.875%	0.875%	0.875%	0.875%
Borrowings covered by hedges | €	€ 450
Cross currency swaps | Japanese yen
Disclosure of reserves within equity [line items]
Fair value movements on derivatives designated in net investment hedges | €	€ (13)
Interest rate on borrowings	0.3452%				0.3452%	0.3452%
Derivative financial instruments	€ 750					$ 750
Cross currency swaps | Chinese Renminbi
Disclosure of reserves within equity [line items]
Fair value movements on derivatives designated in net investment hedges | €	€ (1)
Interest rate on borrowings	4.796%				4.796%	4.796%
Amount matured		151
Derivative financial instruments	€ 69					$ 69
Matured cross currency swaps | Chinese Renminbi
Disclosure of reserves within equity [line items]
Fair value movements on derivatives designated in net investment hedges | €	6
Amount matured | €	151
Instruments designated in cash flow hedge | 0.875% Non-callable bond
Disclosure of reserves within equity [line items]
Borrowings covered by hedges | €	€ 450
Instruments designated in cash flow hedge | Cross currency swaps
Disclosure of reserves within equity [line items]
Gain on cost of hedging		47
Loss on cost of hedging		$ 54

Share capital of the Company (D

Share capital of the Company (Details)	12 Months Ended
	Dec. 31, 2018USD ($)shares	Dec. 31, 2017USD ($)shares	Dec. 31, 2016USD ($)shares	Dec. 31, 2018£ / shares	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2017£ / shares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016£ / shares	Dec. 31, 2016USD ($)$ / sharesshares
Disclosure of classes of share capital [line items]
Par value per share | $ / shares					$ 0.25		$ 0.25		$ 0.25
Issued capital | $					$ 317,000,000		$ 317,000,000		$ 316,000,000
Number of shares in the Company held by subsidiaries | shares					0		0		0
Ordinary shares
Disclosure of classes of share capital [line items]
Par value per share | $ / shares					$ 0.25		$ 0.25		$ 0.25
Issued capital | $					$ 317,000,000		$ 317,000,000		$ 316,000,000
Number of shares outstanding at beginning of period | shares	1,266,221,605	1,265,229,424	1,264,122,670
Issues of shares (share schemes) | shares	817,831	992,181	1,106,754
Number of shares outstanding at end of period | shares	1,267,039,436	1,266,221,605	1,265,229,424
Shares repurchased | $	$ 0	$ 0	$ 0
Preference shares
Disclosure of classes of share capital [line items]
Par value per share | £ / shares				£ 1		£ 1		£ 1
Issued capital | $					$ 50,000		$ 50,000		$ 50,000
Days of written noticed required	7 days

Dividends to shareholders (Deta

Dividends to shareholders (Details) $ / shares in Units, £ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018GBP (£)	Dec. 31, 2018USD ($)$ / shares	Dec. 31, 2017USD ($)$ / shares	Dec. 31, 2016USD ($)$ / shares
Dividends to shareholders
Final | $		$ 2,402	$ 2,404	$ 2,402
Interim | $		1,139	1,139	1,138
Total | $		$ 3,541	$ 3,543	$ 3,540
Final | $ / shares		$ 1.90	$ 1.90	$ 1.90
Interim | $ / shares		0.90	0.90	0.90
Total | $ / shares		$ 2.80	$ 2.80	$ 2.80
Period of time unclaimed dividends were forfeited	12 years	12 years
Unclaimed dividends forfeited and adjusted for in retained earnings | £	£ 2

Dividends to shareholders - Div

Dividends to shareholders - Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Millions	Mar. 19, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Dividends to shareholders
Dividends charged to equity		$ 3,541	$ 3,543	$ 3,540
Exchange losses/(gain) on payment of dividend		10	(4)	3
Hedge contracts relating to dividend payments		$ (67)	$ (20)	$ 18
Dividends paid (per share)	$ 1.90

Non-controlling (Details)

Non-controlling (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of subsidiaries [line items]
Equity	$ 14,044	$ 16,642	$ 16,669	$ 18,509
Total comprehensive losses	106	133	94
Total Revenue	22,090	22,465	23,002
(Loss)/profit after tax	2,050	2,868	3,406
Other comprehensive income	(1,059)	639	(1,778)
Total comprehensive income for the period	991	3,507	1,628
Non-current assets	45,060	50,204	49,264
Current assets	15,591	13,150	13,262
Total assets	60,651	63,354	62,526
Current liabilities	16,292	16,383	15,256
Total liabilities	46,607	46,712	45,857
Net assets	14,044	16,642	16,669
Net cash inflow/(outflow) from operating activities	2,618	3,578	4,145
Net cash (outflow)/inflow from investing activities	963	(2,328)	(3,969)
Acerta Pharma
Disclosure of subsidiaries [line items]
Equity	1,567	1,676	1,808
Total comprehensive losses	109	132	95
(Loss)/profit after tax	(9)	412	(212)
Total comprehensive income for the period	(9)	412	(212)
Non-current assets	16	3	73
Current assets	526	904	79
Total assets	542	907	152
Current liabilities	63	417	171
Total liabilities	63	417	171
Net assets	479	490	(19)
Net cash inflow/(outflow) from operating activities	7	5	(223)
Net cash (outflow)/inflow from investing activities	(4)		139
Increase/(decrease) in cash and cash equivalents in the year	$ 3	$ 5	$ (84)

Acquisitions of business oper_3

Acquisitions of business operations - 2016 acquisitions (Details) $ in Millions	11 Months Ended	12 Months Ended
	Dec. 31, 2016USD ($)employee	Dec. 31, 2016USD ($)employee	Dec. 31, 2018employee	Dec. 31, 2017employee	Feb. 02, 2016USD ($)employee
Disclosure of detailed information about business combination [line items]
Number of employees | employee	59,700	59,700	64,400	61,100
Acerta Pharma Acquisition
Disclosure of detailed information about business combination [line items]
Number of employees | employee					150
Percentage of voting equity interests acquired			55.00%		55.00%
Percentage of voting equity interests left to acquire					45.00%
Consideration transferred, acquisition-date fair value					$ 3,809
Upfront payment					2,477
Further payment					1,500
Value of remaining non-controlling interests					$ 3,000
Revenue since acquisition date	$ 0
Loss after tax since acquisition date	$ (212)
Profit after tax if acquisition occurred at beginning of period		$ 3,367

Acquisitions of business oper_4

Acquisitions of business operations - Fair values assigned 2016 acquisitions (Details) - USD ($) $ in Millions	Feb. 02, 2016	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about business combination [line items]
Net cash outflow		$ 1,450	$ 2,564
Acerta Pharma Acquisition
Disclosure of detailed information about business combination [line items]
Intangible assets (Note 9)	$ 7,307
Current assets	253
Current liabilities	(90)
Deferred tax liabilities	(1,777)
Total net assets acquired	5,693
Non-controlling interests	(1,903)
Goodwill (Note 8)	19
Fair value of total consideration	3,809
Less: consideration	(1,332)
Total upfront consideration	2,477
Less: cash and cash equivalents acquired	(94)
Net cash outflow	$ 2,383

Financial risk management obj_3

Financial risk management objectives and policies - Capital management (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of financial risk management objectives and policies
Net debt position	$ 13,003	$ 12,679

Financial risk management obj_4

Financial risk management objectives and policies - Liquidity risk (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Maturity analysis of financial liabilities
Cash and cash equivalents	$ 4,831	$ 3,324	$ 5,018
Short-term fixed income investments	809
Fixed deposits	40	80	37
Overdrafts	160	152	94
Committed bank facilities	4,100
Increase in committed bank facilities	1,100
Undrawn committed bank facilities	4,100
Financial instruments	49,688	48,328	47,980
Derivative financial instruments	27	24	18
Derivative financial instruments	258	28	27
Effect of interest	(8,929)	(8,417)	(8,320)
Effect of discounting, fair values and issue costs	(2,401)	(3,132)	(3,123)
Financial instruments after effects of interest and discounting, fair values and issue costs	38,358	36,779	36,537
Contingent consideration	5,106	5,534	5,457	$ 6,411
Put option
Maturity analysis of financial liabilities
Potential payable	1,838
Total derivative financial instruments
Maturity analysis of financial liabilities
Derivative financial instruments	15	(118)	133
Effect of interest	(258)	(434)	(203)
Effect of discounting, fair values and issue costs	(123)	43	(175)
Financial instruments after effects of interest and discounting, fair values and issue costs	(366)	(509)	(245)
Interest rate swaps
Maturity analysis of financial liabilities
Derivative financial instruments	(46)	(70)	(148)
Effect of interest	46	70	148
Effect of discounting, fair values and issue costs	(40)	(50)	(82)
Financial instruments after effects of interest and discounting, fair values and issue costs	(40)	(50)	(82)
Cross currency swaps
Maturity analysis of financial liabilities
Derivative financial instruments	61	(48)	281
Effect of interest	(304)	(504)	(351)
Effect of discounting, fair values and issue costs	(83)	93	(93)
Financial instruments after effects of interest and discounting, fair values and issue costs	(326)	(459)	(163)
Total non-derivative financial instruments
Maturity analysis of financial liabilities
Non-derivative financial instruments	49,673	48,446	47,847
Effect of interest	(8,671)	(7,983)	(8,117)
Effect of discounting, fair values and issue costs	(2,278)	(3,175)	(2,948)
Financial instruments after effects of interest and discounting, fair values and issue costs	38,724	37,288	36,782
Bank overdrafts and other loans
Maturity analysis of financial liabilities
Non-derivative financial instruments	795	875	462
Effect of interest	(2)	(14)	(4)
Effect of discounting, fair values and issue costs	(17)
Financial instruments after effects of interest and discounting, fair values and issue costs	776	861	458
Bonds
Maturity analysis of financial liabilities
Non-derivative financial instruments	27,128	25,004	24,427
Effect of interest	(8,669)	(7,969)	(8,111)
Effect of discounting, fair values and issue costs	(122)	(94)	(59)
Financial instruments after effects of interest and discounting, fair values and issue costs	18,337	16,941	16,257
Finance leases
Maturity analysis of financial liabilities
Non-derivative financial instruments		5	95
Effect of interest			(2)
Financial instruments after effects of interest and discounting, fair values and issue costs		5	93
Trade and other payables
Maturity analysis of financial liabilities
Non-derivative financial instruments	21,750	22,562	22,863
Effect of discounting, fair values and issue costs	(2,139)	(3,081)	(2,889)
Financial instruments after effects of interest and discounting, fair values and issue costs	19,611	19,481	19,974
Due within one year
Maturity analysis of financial liabilities
Increase in committed bank facilities	$ 200
Extension option (in years)	1 year
Undrawn committed bank facilities	$ 1,800
Derivative financial instruments	18
Derivative financial instruments		5	10
Derivative financial receivables	10,207	6,738
Derivative financial payables	10,007	6,765
Due within one year | Amount before effects
Maturity analysis of financial liabilities
Financial instruments	15,250	14,711	13,415
Due within one year | Total derivative financial instruments | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	(182)	22	(22)
Due within one year | Interest rate swaps | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	(10)	(10)	(54)
Due within one year | Cross currency swaps | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	(172)	32	32
Due within one year | Cross currency swaps | Amount before effects | Previously stated
Maturity analysis of financial liabilities
Derivative financial instruments		420
Due within one year | Total non-derivative financial instruments | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	15,432	14,689	13,437
Due within one year | Bank overdrafts and other loans | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	774	859	455
Due within one year | Bonds | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	1,629	1,985	2,374
Due within one year | Finance leases | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments		5	42
Due within one year | Trade and other payables | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	13,029	11,840	10,566
Years 1 and 2
Maturity analysis of financial liabilities
Increase in committed bank facilities	$ 500
Extension option (in years)	1 year
Undrawn committed bank facilities	$ 200
Derivative financial receivables	35	803
Derivative financial payables	83	601
Years 1 and 2 | Amount before effects
Maturity analysis of financial liabilities
Financial instruments	3,953	3,338	6,924
Years 1 and 2 | Total derivative financial instruments | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	48	(202)	(7)
Years 1 and 2 | Interest rate swaps | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	(9)	(12)	(19)
Years 1 and 2 | Cross currency swaps | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	57	(190)	12
Years 1 and 2 | Cross currency swaps | Amount before effects | Previously stated
Maturity analysis of financial liabilities
Derivative financial instruments		(100)
Years 1 and 2 | Total non-derivative financial instruments | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	3,905	3,540	6,931
Years 1 and 2 | Bank overdrafts and other loans | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	7
Years 1 and 2 | Bonds | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	2,210	1,564	1,921
Years 1 and 2 | Finance leases | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments			24
Years 1 and 2 | Trade and other payables | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	1,688	1,976	4,986
Years 2 and 3
Maturity analysis of financial liabilities
Undrawn committed bank facilities	500
Derivative financial receivables	950	39
Derivative financial payables	974	80
Years 2 and 3 | Amount before effects
Maturity analysis of financial liabilities
Financial instruments	2,873	3,771	2,429
Years 2 and 3 | Total derivative financial instruments | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	24	41	(231)
Years 2 and 3 | Interest rate swaps | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	(9)	(12)	(15)
Years 2 and 3 | Cross currency swaps | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	33	53	(216)
Years 2 and 3 | Cross currency swaps | Amount before effects | Previously stated
Maturity analysis of financial liabilities
Derivative financial instruments		295
Years 2 and 3 | Total non-derivative financial instruments | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	2,849	3,730	2,660
Years 2 and 3 | Bank overdrafts and other loans | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	14
Years 2 and 3 | Bonds | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	2,002	2,144	1,500
Years 2 and 3 | Finance leases | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments			16
Years 2 and 3 | Trade and other payables | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	833	1,586	1,144
Years 3 and 4
Maturity analysis of financial liabilities
Committed bank facilities	3,000
Increase in committed bank facilities	400
Undrawn committed bank facilities	3,400
Derivative financial receivables	30	994
Derivative financial payables	58	971
Years 3 and 4 | Amount before effects
Maturity analysis of financial liabilities
Financial instruments	5,181	5,233	3,788
Years 3 and 4 | Total derivative financial instruments | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	28	(23)	32
Years 3 and 4 | Interest rate swaps | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	(9)	(12)	(15)
Years 3 and 4 | Cross currency swaps | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	37	(11)	47
Years 3 and 4 | Cross currency swaps | Amount before effects | Previously stated
Maturity analysis of financial liabilities
Derivative financial instruments		(747)
Years 3 and 4 | Total non-derivative financial instruments | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	5,153	5,256	3,756
Years 3 and 4 | Bank overdrafts and other loans | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments		16
Years 3 and 4 | Bonds | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	1,813	2,000	2,080
Years 3 and 4 | Finance leases | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments			10
Years 3 and 4 | Trade and other payables | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	3,340	3,240	1,666
Years 4 and 5
Maturity analysis of financial liabilities
Derivative financial receivables	30	34
Derivative financial payables	58	59
Years 4 and 5 | Amount before effects
Maturity analysis of financial liabilities
Financial instruments	2,873	2,873	2,714
Years 4 and 5 | Total derivative financial instruments | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	28	25	71
Years 4 and 5 | Interest rate swaps | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	(9)	(12)	(15)
Years 4 and 5 | Cross currency swaps | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	37	37	86
Years 4 and 5 | Cross currency swaps | Amount before effects | Previously stated
Maturity analysis of financial liabilities
Derivative financial instruments		34
Years 4 and 5 | Total non-derivative financial instruments | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	2,845	2,848	2,643
Years 4 and 5 | Bank overdrafts and other loans | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments			7
Years 4 and 5 | Bonds | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	2,069	1,736	1,756
Years 4 and 5 | Finance leases | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments			3
Years 4 and 5 | Trade and other payables | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	776	1,112	877
Later than five years
Maturity analysis of financial liabilities
Derivative financial receivables	2,084	2,198
Derivative financial payables	2,153	2,217
Later than five years | Amount before effects
Maturity analysis of financial liabilities
Financial instruments	19,558	18,402	18,710
Later than five years | Total derivative financial instruments | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	69	19	290
Later than five years | Interest rate swaps | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments		(12)	(30)
Later than five years | Cross currency swaps | Amount before effects
Maturity analysis of financial liabilities
Derivative financial instruments	69	31	320
Later than five years | Cross currency swaps | Amount before effects | Previously stated
Maturity analysis of financial liabilities
Derivative financial instruments		26
Later than five years | Total non-derivative financial instruments | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	19,489	18,383	18,420
Later than five years | Bonds | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	17,405	15,575	14,796
Later than five years | Trade and other payables | Amount before effects
Maturity analysis of financial liabilities
Non-derivative financial instruments	2,084	$ 2,808	$ 3,624
Euro medium term note programme
Maturity analysis of financial liabilities
Debt instruments issued	3,792
SEC registered programme
Maturity analysis of financial liabilities
Debt instruments issued	$ 14,546

Financial risk management obj_5

Financial risk management objectives and policies - Market risk (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of financial instruments by interest rate
Interest rate on borrowings			5.90%
Total financial liabilities	$ 19,113	$ 17,807	$ 16,808
Short-term deposits, not classified as cash equivalents	40	80	37
Cash and cash equivalents	4,831	3,324	5,018
Instruments in a fair value hedge relationship
Disclosure of financial instruments by interest rate
Total financial liabilities	346	$ 900	$ 1,368
Bonds Maturing in 2023
Disclosure of financial instruments by interest rate
Borrowings	1,250
Bonds Maturing in 2029
Disclosure of financial instruments by interest rate
Borrowings	1,000
Bonds Maturing in 2048
Disclosure of financial instruments by interest rate
Borrowings	750
Bonds Maturing in 2018
Disclosure of financial instruments by interest rate
Borrowings	$ 1,400
7% Guaranteed debentures
Disclosure of financial instruments by interest rate
Interest rate on borrowings	7.00%	7.00%	7.00%
1.75% Callable bond
Disclosure of financial instruments by interest rate
Interest rate on borrowings		1.75%	1.75%
Interest rate swaps
Disclosure of financial instruments by interest rate
Notional amount	$ 290
Current financial liabilities	1,754	$ 2,247	$ 2,307
Non-current financial liabilities	17,359	15,560	14,501
Total financial liabilities	19,113	17,807	16,808
Short-term deposits, not classified as cash equivalents	40	80	37
Cash and cash equivalents	4,831	3,324	5,018
Total financial assets	4,871	3,404	5,055
Current and non-current asset investments and other financial assets on which no interest is received	6,195	6,366	5,519
Interest rate swaps | Fixed rate
Disclosure of financial instruments by interest rate
Current financial liabilities	999	404	1,086
Non-current financial liabilities	16,038	14,608	13,154
Total financial liabilities	17,037	15,012	14,240
Short-term deposits, not classified as cash equivalents	40
Total financial assets	40
Interest rate swaps | Floating rate
Disclosure of financial instruments by interest rate
Current financial liabilities	755	1,843	1,221
Non-current financial liabilities	1,321	952	1,347
Total financial liabilities	2,076	2,795	2,568
Short-term deposits, not classified as cash equivalents		80	37
Cash and cash equivalents	4,831	3,324	5,018
Total financial assets	4,831	$ 3,404	$ 5,055
Interest rate swaps | Instruments at fair value through profit or loss
Disclosure of financial instruments by interest rate
Notional amount	$ 290
Interest rate swaps | 7% Guaranteed debentures | Floating rate
Disclosure of financial instruments by interest rate
Interest rate on borrowings	7.00%

Financial risk management obj_6

Financial risk management objectives and policies - Foreign currency risk (Details) € in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018¥ / $	Dec. 31, 2018€ / $	Dec. 31, 2018¥ / $	Dec. 31, 2018country	Dec. 31, 2018EUR (€)	Dec. 31, 2018USD ($)	Dec. 31, 2018	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Foreign currency risk
Number of hyper inflationary countries | country				2
Borrowings, interest rate									5.90%
Cash						$ 893		$ 784	$ 782
Exchange rate	78.01	1.09	6.68
Increase in interest expense that would result from increased interest rate, per sensitivity analysis						17
Increase/(decrease) in fair value of financial instruments ($m) due to increase in risk component									180
Impact on profit: (loss)/gain ($m) due to increase in risk component									(24)
Impact on equity: gain/(loss) ($m) due to increase in risk component									$ 204
0.875% Non-callable bond
Foreign currency risk
Borrowings | €					€ 750
Borrowings, interest rate							0.875%	0.875%	0.875%
US
Foreign currency risk
Assumed strengthening of US currency							10.00%
Assumed weakening of US currency							10.00%
Assumed percentage increase							10.00%
Assumed percentage decrease							(10.00%)
All currencies except US
Foreign currency risk
Percentage of entity's revenue	67.00%
Pound sterling
Foreign currency risk
Percentage of interest-bearing loans and borrowings							2.40%
Euro
Foreign currency risk
Percentage of interest-bearing loans and borrowings							18.30%
Interest rates
Foreign currency risk
Changes in rates							1.00%
Assumed percentage increase							1.00%		1.00%
Assumed percentage decrease									1.00%
Increase/(decrease) in fair value of financial instruments ($m) due to increase in risk component						1,130		$ 1,329	$ 1,249
Increase/(decrease) in fair value of financial instruments ($m) due to decrease in risk component						(1,267)		(1,293)	$ (1,390)
Exchange rates
Foreign currency risk
Changes in rates							10.00%
Assumed percentage increase									10.00%
Assumed percentage decrease									10.00%
Increase/(decrease) in fair value of financial instruments ($m) due to increase in risk component						(146)		198
Increase/(decrease) in fair value of financial instruments ($m) due to decrease in risk component						161		(198)	$ (180)
Impact on profit: (loss)/gain ($m) due to increase in risk component						(299)		(123)
Impact on profit: (loss)/gain ($m) due to decrease in risk component						348		123	24
Impact on equity: gain/(loss) ($m) due to increase in risk component						153		321
Impact on equity: gain/(loss) ($m) due to decrease in risk component						$ (187)		$ (321)	$ (204)

Financial risk management obj_7

Financial risk management objectives and policies - Credit risk (Details) $ in Millions	Dec. 31, 2018USD ($)	Jan. 01, 2018USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2018USD ($)customeritem	Jan. 01, 2018USD ($)	Dec. 31, 2017USD ($)customeritem	Dec. 31, 2016USD ($)customeritem
Credit risk
Number of wholesaler | customer						0		0	1
Number of fund managers for money market securities | item						5
Maximum percentage the Company's investments represent of each overall fund value						10.00%
Third-party collateralised investments as a percentage of cash deposited			101.00%
Collateralised investments held by third-party custodian						$ 403		$ 1,151	$ 951
Number of fund managers for fixed income securities | item						4
Current assets
Cash at bank and in hand						$ 893		784	782
Other short-term equivalents						3,938		2,540	4,236
Cash and cash equivalents						4,831		3,324	5,018
Fixed deposits						40		80	37
Total derivative financial instruments						384		504	235
Total current assets						15,591		13,150	13,262
Non-current assets
Derivative financial instruments						157		504	343
Total non-current assets						$ 45,060		$ 50,204	$ 49,264
US
Credit risk
Number of wholesaler | item						3		3	3
Percentage of sales			88.00%	60.00%	83.00%
Trade receivables
Ageing of trade receivables
Financial assets						$ 2,995		$ 2,802	$ 2,583
Trade receivables | Not past due
Ageing of trade receivables
Financial assets						2,853		2,488	2,559
Trade receivables | Past due 0 - 90 days
Ageing of trade receivables
Financial assets						81		260	14
Trade receivables | Past due 90 - 180 days
Ageing of trade receivables
Financial assets						24		31
Trade receivables | Past due > 180 days
Ageing of trade receivables
Financial assets						37		23	10
Provisions for trade receivables | Trade receivables
Ageing of trade receivables
Payment profile period (in months)	36 months	36 months
Financial assets						3,033	$ 2,818
Loss allowance	$ 38	$ 16	$ 16	$ 42	$ 52	$ 38	$ 16	16	42
Movements in provisions for trade receivables
At 1 January		16	16	42	52
Income statement			22	(26)
Amounts utilised, exchange and other movements					(10)
At 31 December	38	16	38	$ 16	$ 42
Provisions for trade receivables | Trade receivables | Not past due
Ageing of trade receivables
Expected loss rate						0.05%	0.05%
Financial assets						$ 2,854	$ 2,490
Loss allowance	1	1	1			$ 1	$ 1
Movements in provisions for trade receivables
At 31 December	1	1	1
Provisions for trade receivables | Trade receivables | Past due 0 - 90 days
Ageing of trade receivables
Expected loss rate						0.75%	0.75%
Financial assets						$ 82	$ 262
Loss allowance	1	2	1			$ 1	$ 2
Movements in provisions for trade receivables
At 31 December	1	2	1
Provisions for trade receivables | Trade receivables | Past due 90 - 180 days
Ageing of trade receivables
Expected loss rate						10.00%	5.00%
Financial assets						$ 27	$ 31
Loss allowance	3	1	3			$ 3	$ 1
Movements in provisions for trade receivables
At 31 December	3	1	3
Provisions for trade receivables | Trade receivables | Past due > 180 days
Ageing of trade receivables
Expected loss rate						47.00%	33.00%
Financial assets						$ 70	$ 35
Loss allowance	33	12	33			33	$ 12
Movements in provisions for trade receivables
At 31 December	$ 33	$ 12	$ 33
Counterparty credit risk
Current assets
Cash at bank and in hand						893		784	782
Money market liquidity fund						3,435		1,150	3,440
Collateralised repurchase agreements						400		1,150	950
Bank collateral									(242)
Other short-term equivalents						103		240	88
Cash and cash equivalents						4,831		3,324	5,018
Fixed income securities at fair value through profit and loss						809
Fixed income securities available for sale								1,150	847
Fixed deposits						40		80	37
Total derivative financial instruments						258		28	27
Total current assets						5,938		4,582	5,929
Non-current assets
Equity securities at fair value through other comprehensive income						833
Equity securities available for sale								933	727
Derivative financial instruments						157		504	343
Total non-current assets						$ 990		$ 1,437	$ 1,070

Financial risk management obj_8

Financial risk management objectives and policies - Other financial assets (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of financial risk management objectives and policies
Cash collateral on financial derivatives	$ 384	$ 513	$ 322
Cash collateral posted by the group	$ 14		$ 80

Employee costs and share plan_3

Employee costs and share plans for employees, Employee numbers (Details) - employee	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of geographical location
Average number of employees	63,200	60,000	61,500
Number of employees	64,400	61,100	59,700
UK
Disclosure of geographical location
Average number of employees	7,200	6,900	7,000
Europe
Disclosure of geographical location
Average number of employees	14,800	14,500	14,700
The Americas
Disclosure of geographical location
Average number of employees	16,700	16,300	17,800
Asia, Africa And Australasia
Disclosure of geographical location
Average number of employees	24,500	22,300	22,000

Employee costs and share plan_4

Employee costs and share plans for employees, Employee costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee costs and share plans for employees
Salaries	$ 5,370	$ 5,004	$ 4,664
Social security costs	626	570	584
Pension costs	469	378	426
Other employment costs	505	534	610
Total employee benefits expense	6,970	6,486	6,284
Severance costs	$ 94	$ 225	$ 578

Employee costs and share plan_5

Employee costs and share plans for employees, Bonus plans (Details)	12 Months Ended
	Dec. 31, 2018personplan
AstraZeneca Deferred Bonus Plan
Bonus plans
Deferral period for bonus	3 years
AstraZeneca Sweden Bonus Plan
Bonus plans
Percentage of bonuses paid into fund investing	50.00%
Percentage of bonuses paid in cash	50.00%
AstraZeneca U.S. Bonus Plans
Bonus plans
Number of all-employee short-term or annual performance bonus plans	2
Number of senior staff long-term incentive schemes	1
Number of participants that may be eligible for awards granted | person	123

Employee costs and share plan_6

Employee costs and share plans for employees, Share-based payments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee costs and share plans for employees
Share-based payments equity settled	$ 219	$ 220	$ 241

Employee costs and share plan_7

Employee costs and share plans for employees, AstraZeneca UK All Employee Share Plan (Details) - AstraZeneca UK All Employee Share Plan	12 Months Ended
	Dec. 31, 2018GBP (£)shares
Share plans
Threshold for employee investment in ordinary shares of entity | £	£ 1,800
Investment period	12 months
Number of shares awarded for every four shares purchased | shares	1

Employee costs and share plan_8

Employee costs and share plans for employees, AstraZeneca 2014 Performance Share Plan (Details) - AstraZeneca 2014 Performance Share Plan EquityInstruments in Thousands	1 Months Ended									12 Months Ended
	Aug. 31, 2018GBP (£)EquityInstruments	May 31, 2018GBP (£)EquityInstruments	Mar. 31, 2018GBP (£)EquityInstruments	Aug. 31, 2017GBP (£)EquityInstruments	May 31, 2017GBP (£)EquityInstruments	Mar. 31, 2017GBP (£)EquityInstruments	Aug. 31, 2016GBP (£)EquityInstruments	May 31, 2016GBP (£)EquityInstruments	Mar. 31, 2016GBP (£)EquityInstruments	Dec. 31, 2014	Aug. 31, 2018USD ($)	May 31, 2018USD ($)	Mar. 31, 2018USD ($)	Aug. 31, 2017USD ($)	May 31, 2017USD ($)	Mar. 31, 2017USD ($)	Aug. 31, 2016USD ($)	May 31, 2016USD ($)	Mar. 31, 2016USD ($)
Share plans
Plan term										10 years
Period of wait time until awards granted vest										3 years
Number of shares awarded	92	18	3,400	44	10	2,359	67	24	2,673
Weighted average fair value	£ 29.82	£ 26.51	£ 24.27	£ 22.34	£ 26.07	£ 24.40	£ 25.36	£ 19.35	£ 19.62		$ 38.46	$ 36.42	$ 34.62	$ 29.11	$ 34.20	$ 30.88	$ 33.58	$ 28.64	$ 28.19
Director
Share plans
Additional holding period that can be subject to achievement of performance conditions										2 years

Employee costs and share plan_9

Employee costs and share plans for employees, AstraZeneca Investment Plan (Details) - 1 months ended Mar. 31, 2016 - AstraZeneca Investment Plan EquityInstruments in Thousands	GBP (£)EquityInstruments	USD ($)
Share plans
Period of wait time until awards granted vest	8 years
Number of shares awarded	84
Weighted average fair value	£ 39.23	$ 56.38
Minimum
Share plans
Period of performance conditions	3 years
Maximum
Share plans
Period of performance conditions	8 years

Employee costs and share pla_10

Employee costs and share plans for employees, AstraZeneca Global Restricted Stock Plan (Details) - AstraZeneca Global Restricted Stock Plan EquityInstruments in Thousands	1 Months Ended
	Nov. 30, 2018GBP (£)EquityInstruments	Aug. 31, 2018GBP (£)EquityInstruments	Mar. 31, 2018GBP (£)EquityInstruments	Nov. 30, 2017GBP (£)EquityInstruments	Aug. 31, 2017GBP (£)EquityInstruments	May 31, 2017GBP (£)EquityInstruments	Mar. 31, 2017GBP (£)EquityInstruments	Aug. 31, 2016GBP (£)EquityInstruments	Mar. 31, 2016GBP (£)EquityInstruments	Nov. 30, 2018USD ($)	Aug. 31, 2018USD ($)	Mar. 31, 2018USD ($)	Nov. 30, 2017USD ($)	Aug. 31, 2017USD ($)	May 31, 2017USD ($)	Mar. 31, 2017USD ($)	Aug. 31, 2016USD ($)	Mar. 31, 2016USD ($)
Share plans
Number of shares awarded	3	40	4,474	77	31	78	2,502	122	2,695
Weighted average fair value	£ 63	£ 59.64	£ 48.53	£ 49.42	£ 44.68	£ 52.14	£ 48.80	£ 50.71	£ 39.23	$ 82.86	$ 76.92	$ 69.24	$ 66.24	$ 58.22	$ 68.40	$ 61.76	$ 67.16	$ 56.38

Employee costs and share pla_11

Employee costs and share plans for employees, AstraZeneca Restricted Share Plan (Details) - AstraZeneca Restricted Share Plan EquityInstruments in Thousands	1 Months Ended														12 Months Ended
	Nov. 30, 2018GBP (£)EquityInstruments	Aug. 31, 2018GBP (£)EquityInstruments	May 31, 2018GBP (£)EquityInstruments	Mar. 31, 2018GBP (£)EquityInstruments	Nov. 30, 2017GBP (£)EquityInstruments	Sep. 30, 2017GBP (£)EquityInstruments	Aug. 31, 2017GBP (£)EquityInstruments	May 31, 2017GBP (£)EquityInstruments	Mar. 31, 2017GBP (£)EquityInstruments	Feb. 28, 2017GBP (£)EquityInstruments	Nov. 30, 2016GBP (£)EquityInstruments	Aug. 31, 2016GBP (£)EquityInstruments	May 31, 2016GBP (£)EquityInstruments	Mar. 31, 2016GBP (£)EquityInstruments	Dec. 31, 2018employeemultiple	Nov. 30, 2018USD ($)	Aug. 31, 2018USD ($)	May 31, 2018USD ($)	Mar. 31, 2018USD ($)	Nov. 30, 2017USD ($)	Sep. 30, 2017USD ($)	Aug. 31, 2017USD ($)	May 31, 2017USD ($)	Mar. 31, 2017USD ($)	Feb. 28, 2017USD ($)	Nov. 30, 2016USD ($)	Aug. 31, 2016USD ($)	May 31, 2016USD ($)	Mar. 31, 2016USD ($)
Share plans
Number of shares awarded | EquityInstruments	38	37	45	148	23	31	26	8	134	205	14	37	335	809
Weighted average fair value	£ 63	£ 59.64	£ 53.01	£ 48.53	£ 49.42	£ 47.65	£ 44.68	£ 52.14	£ 48.80	£ 42.93	£ 42.33	£ 50.71	£ 38.69	£ 39.23		$ 82.86	$ 76.92	$ 72.84	$ 69.24	$ 66.24	$ 65.60	$ 58.22	$ 68.40	$ 61.76	$ 55.50	$ 53.42	$ 67.16	$ 57.28	$ 56.38
Number of times plan used to make awards in specified year | multiple															4
Number of employees granted awards | employee															252

Employee costs and share pla_12

Employee costs and share plans for employees, AstraZeneca Extended Incentive Plan (Details) - Astrazeneca Extended Incentive Plan	1 Months Ended
	Nov. 30, 2018GBP (£)USD ($)	Aug. 31, 2018GBP (£)USD ($)	Mar. 31, 2018GBP (£)USD ($)	Nov. 30, 2018USD ($)	Aug. 31, 2018USD ($)	Mar. 31, 2018USD ($)
Share plans
Number of shares awarded	24,000	116,000	163,000
Weighted average fair value	£ 63	£ 59.64	£ 48.53	$ 82.86	$ 76.92	$ 69.24

Commitments and contingent li_3

Commitments and contingent liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Commitments
Contracts placed for future capital expenditure on property, plant and equipment and software development costs not provided for in these accounts	$ 586	$ 570	$ 629

Commitments and contingent li_4

Commitments and contingent liabilities, Research and development (Details) $ in Millions	Dec. 31, 2018USD ($)
Future potential research and development milestone payments
Commitments and contingent liabilities
Effect of potential milestone payments	$ 6,881
Future potential revenue milestone payments
Commitments and contingent liabilities
Effect of potential milestone payments	6,011
Due within one year | Future potential research and development milestone payments
Commitments and contingent liabilities
Effect of potential milestone payments	425
Due within one year | Future potential revenue milestone payments
Commitments and contingent liabilities
Effect of potential milestone payments	68
Years 1 and 2 | Future potential research and development milestone payments
Commitments and contingent liabilities
Effect of potential milestone payments	966
Years 1 and 2 | Future potential revenue milestone payments
Commitments and contingent liabilities
Effect of potential milestone payments	718
Years 3 and 4 | Future potential research and development milestone payments
Commitments and contingent liabilities
Effect of potential milestone payments	1,395
Years 3 and 4 | Future potential revenue milestone payments
Commitments and contingent liabilities
Effect of potential milestone payments	271
Years 5 and greater | Future potential research and development milestone payments
Commitments and contingent liabilities
Effect of potential milestone payments	4,095
Years 5 and greater | Future potential revenue milestone payments
Commitments and contingent liabilities
Effect of potential milestone payments	$ 4,954

Commitments and contingent li_5

Commitments and contingent liabilities, Environmental costs (Details) $ in Millions	Dec. 31, 2018USD ($)site	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Commitments and contingent liabilities
Provisions	$ 891	$ 1,468	$ 1,418	$ 1,242
Environmental costs and liabilities | Minimum
Commitments and contingent liabilities
Estimated financial effect of contingent liabilities		71	87	85
Environmental costs and liabilities | Maximum
Commitments and contingent liabilities
Estimated financial effect of contingent liabilities		118	144	141
Environmental
Commitments and contingent liabilities
Provisions	$ 97	$ 59	$ 59	$ 67
Zeneca, Inc. | Environmental costs and liabilities
Commitments and contingent liabilities
Number of sites likely to incur future environmental investigation or consequences | site	13

Commitments and contingent li_6

Commitments and contingent liabilities, Legal proceedings (Details) $ in Millions, $ in Millions

1 Months Ended

6 Months Ended

Dec. 31, 2018patent

Jun. 30, 2018plaintiff

May 31, 2018claimlawsuit

Feb. 28, 2018CAD ($)

Feb. 28, 2018USD ($)

Nov. 30, 2017plaintiff

Oct. 31, 2017patent

Jul. 31, 2016lawsuit

Jun. 30, 2016patent

Jan. 31, 2019item

Aug. 31, 2018USD ($)

Aug. 31, 2017lawsuit

Brilinta | China

Commitments and contingent liabilities

Number of patents invalidated | patent

1

Patent Infringement Lawsuits U.S. District Court New Jersey | Faslodex

Commitments and contingent liabilities

Number of claims settled

1

Number of Orange Book listed patents | patent

4

4

Nexium | Pennsylvania

Commitments and contingent liabilities

Number of claims filed

2

Seroquel IR

Commitments and contingent liabilities

Number of plaintiffs | plaintiff

1

Seroquel IR | US

Commitments and contingent liabilities

Number of plaintiffs | plaintiff

1

Aralez Litigation

Commitments and contingent liabilities

Amount Aralez claim they owe | $

$ 14

Amount Company claims is due | $

$ 65

Apotex, Inc. | Canada

Commitments and contingent liabilities

Amount award to AstraZeneca

$ 435

$ 352

Crestor

Commitments and contingent liabilities

Number of pharmaceutical manufacturers in an US. Congressional inquiry | item

11

Nexium And Prilosec | Canada

Commitments and contingent liabilities

Number of class action lawsuits

3

Number of class action lawsuits representing individuals in Canada

2

Onglyza Kombiglyze

Commitments and contingent liabilities

Number of claims settled | claim

2

Symbicort | US

Commitments and contingent liabilities

Number of patents where claims were filed | patent

5

Commitments and contingent li_7

Commitments and contingent liabilities, Tax (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Commitments and contingent liabilities
Tax contingency related to transfer pricing audits included in tax accrual	$ 212
Decrease in tax contingency related to transfer pricing	23
Maximum amount of possible additional losses, transfer pricing	357	$ 30	$ 184
Other tax contingencies included in tax accrual	730
Decrease in other tax contingencies included in tax accrual	201
Maximum amount of possible additional losses, other tax contingencies	253
Accrued interest	$ 116
Minimum
Commitments and contingent liabilities
Anticipated number of years significant disputes may be resolved	1 year
Maximum
Commitments and contingent liabilities
Anticipated number of years significant disputes may be resolved	2 years

Operating leases (Details)

Operating leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating leases
Operating leases	$ 188	$ 175	$ 174

Operating leases, Future minimu

Operating leases, Future minimum payments (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating leases
Future minimum lease payments	$ 684	$ 614	$ 441
Due within one year
Operating leases
Future minimum lease payments	188	151	98
Later than one year and not later than five years
Operating leases
Future minimum lease payments	360	345	247
Later than five years
Operating leases
Future minimum lease payments	$ 136	$ 118	$ 96

Operating leases - IFRS 16 (Det

Operating leases - IFRS 16 (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Application of new accounting standards
Operating leases	$ 188	$ 175	$ 174
Future minimum lease payments	$ 684	614	$ 441
IFRS 16
Application of new accounting standards
Operating leases		175
Future minimum lease payments		614
IFRS 16 | Previously stated
Application of new accounting standards
Operating leases		137
Future minimum lease payments		$ 523

Statutory and other informati_3

Statutory and other information, Audit fees (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Auditor's remuneration
Fees related to 2017 group audit and audit of subsidiaries	$ 3,200
Related party transactions
Short-term employee benefits	32,523	$ 28,274	$ 23,725
Post-employment benefits	2,387	2,469	2,407
Share-based payments	23,605	16,452	20,377
Total key management personnel compensation	58,515	47,195	$ 46,509
Pricewaterhouse Coopers LLP
Auditor's remuneration
Group audit fee	3,800	3,000
The audit of subsidiaries pursuant to legislation	9,400	5,700
Attestation under s404 of Sarbanes-Oxley Act 2002	2,000	2,000
Audit-related assurance services	800	400
Tax compliance services	100
Other assurance services	900
The audit of subsidiaries pension schemes	400
Total auditor's remuneration	$ 17,400	$ 11,100

Subsequent events (Details)

Subsequent events (Details) $ in Millions	Jan. 23, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Jan. 10, 2019USD ($)
Subsequent events
Number of manufacturing sites closed		2
Impairment loss recognised in profit or loss, property, plant and equipment		$ 252		$ 78
Inventory write-down		75	$ 208	109	$ 198
Intangible assets		$ 21,959	$ 21,959	$ 26,188	$ 27,586
New Borrowing | Bank Loan Due December 2019
Subsequent events
Maximum borrowing capacity						$ 500
Sale of Rights and Participate | Sobi
Subsequent events
Effective percentage of ownership interest in equity investment accounted for as FVOCI	8.00%
Sale of Rights and Participate | Sobi | Synagis and MEDI8897
Subsequent events
Cash received	$ 966
Fair value	600
Sale of Rights and Participate | Sobi | Synagis
Subsequent events
Intangible assets	$ 893

Group Subsidiaries and Holdings

Group Subsidiaries and Holdings (Details)	12 Months Ended
	Dec. 31, 2018
Astrazeneca S.A. Argentina
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Holdings Pty Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca PTY Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Pharmaceutical Manufacturing Company Pty Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Pharmaceutical Manufacturing Division Pty Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Osterreich GmbH
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca S.A. / N.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca do Brasil Limitada
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Bulgaria EOOD
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Canada Inc.1
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AZ Reinsurance Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrazeneca S.A. Chile
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Farmaceutica Chile Limitada
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pharmaceuticals Co., Limited.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca (Wuxi) Trading Co. Ltd
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Investment (China) Co. Ltd
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pharmaceutical (China)Co. Ltd
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pharmaceuticals Technologies (Beijing) Co., Ltd.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Colombia S.A.S.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca CAMCAR Costa Rica, S.A.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca d.o.o.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Czech Republic, s.r.o.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca A/S
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Egypt for Pharmaceutical Industries JSC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Egypt for Trading LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Drimex LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Eesti OU
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca OY.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca S.A.S.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Finance S.A.S.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Holding France S.A.S.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Dunkerque Production SCS
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrazeneca Holding GmbH
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca GmbH
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Sofotec GmbH
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Definiens AG
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca S.A. Greece
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Hong Kong Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Kft
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrazeneca India Private Limited 3
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pars Company
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pharmaceuticals (Ireland) Designated Activity Company
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Israel Ltd
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Simesa SpA
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca SpA
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca K.K.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pharmaceuticals Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Latvija SIA
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Lietuva UAB
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Luxembourg S.A.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Asia-Pacific Business Services Sdn Bhd
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Sdn Bhd
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca, S.A. de C.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Health Care Division, S.A. de C.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Maroc SARLAU
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca B.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Continent B.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Gamma B.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Holdings B.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Jota B.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Rho B.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Sigma B.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrazeneca Treasury B. V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Zeta B.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
MedImmune Pharma B.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Nigeria Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca AS
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrazeneca Pharmaceuticals Pakistan (Private) Limited 4
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca CAMCAR, S.A.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Peru S.A.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pharmaceuticals (Phils.) Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pharma Poland Sp.z.o.o.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astra Alpha Produtos Farmaceuticos Lda
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Produtos Farmaceuticos Lda
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Novastra Promocao e Comercio Farmaceutico Lda
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Novastuart Produtos Farmaceuticos Lda
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Stuart-Produtos Farmaceuticos Lda
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Zeneca Epsilon - Produtos Farmaceuticos Lda
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Zenecapharma Produtos Farmaceuticos Lda
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
IPR Pharmaceuticals, Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pharma S.R.L.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Industries, LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pharmaceuticals, LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Singapore Pte Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pharmaceuticals (Pty) Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Korea Co. Ltd
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Farmaceutica Spain S.A.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Farmaceutica Holding Spain, S.A.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Laboratorio Beta, S.A.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Laboratorio Lailan, S.A.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Laboratorio Odin, S.A.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Laboratorio Tau S.A.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astra Export & Trading Aktiebolag
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astra Lakemedel Aktiebolag
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca AB
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Biotech AB
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca BioVentureHub AB
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrazeneca Holding Aktiebolag
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrazeneca International Holdings Aktiebolag
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Nordic AB
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pharmaceuticals Aktiebolag
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Sodertalje 2 AB
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Stuart Pharma Aktiebolag
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Tika Lakemedel Aktiebolag
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Aktiebolaget Hassle
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Symbicom Aktiebolag
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astra Tech International Aktiebolag
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca AG
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Spirogen Sarl
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrazeneca Taiwan Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca (Thailand) Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Tunisie SaRL
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Ilac Sanayi ve Ticaret Limited Sirketi
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Zeneca Ilac Sanayi Ve Ticaret Anonim Sirketi
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Ukraina LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca FZ-LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Ardea Biosciences Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Arrow Therapeutics Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astra Pharmaceuticals Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrapharm
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca China UK Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Death In Service Trustee Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Employee Share Trust Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Finance Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrazeneca Intermediate Holdings Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Investments Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Japan Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Nominees Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Quest Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Share Trust Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Sweden Investments Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrazeneca Treasury Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca UK Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrazeneca Us Investments Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AZENCO2 Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AZENCO4 Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Cambridge Antibody Technology Group Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
KuDOS Horsham Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
KuDOS Pharmaceuticals Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Zenco (No 8) Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Zeneca Finance (Netherlands) Company
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
MedImmune Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
MedImmune U.K. Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Amylin Pharmaceuticals LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Collaboration Ventures LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Pharmaceuticals, LP
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Atkemix Nine Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Atkemix Ten Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
BMS Holdco Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Corpus Christi Holdings Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Omthera Pharmaceuticals, Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Stauffer Management Company, LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Zeneca Holdings Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Zeneca, Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Zeneca Wilmington Inc
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
ZS Pharma Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Alphacore Pharma LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Amylin Ohio LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Ardea Biosciences, Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AZ-Mont Insurance Company
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Definiens Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
MedImmune Biologics Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
MedImmune, LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
MedImmune Ventures, Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Optein, Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Pearl Therapeutics, Inc.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca S.A. Uruguay
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
AstraZeneca Venezuela S.A.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Gotland Pharma S.A.
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
Astrazeneca Vietnam Company Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	100.00%
SPA AstraZeneca Al Djazair
Subsidiaires
Effective percentage of equity owned in subsidiaries	65.77%
AstraZeneca Pharma India Limited
Subsidiaires
Effective percentage of equity owned in subsidiaries	75.00%
P.T. AstraZeneca Indonesia
Subsidiaires
Effective percentage of equity owned in subsidiaries	95.00%
Acerta Pharma B.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	55.00%
Aspire Therapeutics B.V.
Subsidiaires
Effective percentage of equity owned in subsidiaries	55.00%
Acerta Pharma LLC
Subsidiaires
Effective percentage of equity owned in subsidiaries	55.00%

Group Subsidiaries and Holdin_2

Group Subsidiaries and Holdings - Joint Venture (Details)	Dec. 01, 2015	Apr. 30, 2014	Dec. 31, 2018
WuXi MedImmune Biopharmaceutical Co. Limited
Less than 100% Subsidiaries and Joint Ventures
Effective percentage of equity owned in joint ventures			50.00%
Archigen Biotech Limited
Less than 100% Subsidiaries and Joint Ventures
Effective percentage of equity owned in joint ventures		50.00%	50.00%
Centus Biotherapeutics Limited
Less than 100% Subsidiaries and Joint Ventures
Effective percentage of equity owned in joint ventures	50.00%		50.00%
Montrose Chemical Corporation of California
Less than 100% Subsidiaries and Joint Ventures
Effective percentage of equity owned in joint ventures			50.00%
Dizal (Jiangsu) Pharmaceutical Co., Ltd.
Less than 100% Subsidiaries and Joint Ventures
Effective percentage of equity owned in joint ventures			48.30%
Viela Bio
Less than 100% Subsidiaries and Joint Ventures
Effective percentage of equity owned in joint ventures			40.90%

Group Subsidiaries and Holdin_3

Group Subsidiaries and Holdings - Associates and Equity Investments at FVOCI (Details)	12 Months Ended
	Dec. 31, 2018
Apollo Therapeutics LLP
Significant and associate holdings
Effective percentage of equity owned in associates	25.00%
Armaron Bio Ltd
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	22.07%
C.C.Global Chemicals Company
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	37.50%
Adherium Limited
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	4.64%
Innate Pharma S.A.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	9.80%
ADC Therapeutics Sarl
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	7.23%
Circassia Pharmaceuticals PLC
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	19.90%
Datapharm Communications Limited
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	12.50%
Mereo Biopharma Group PLC
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	0.69%
Silence Therapeutics PLC
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	0.17%
AbMed Corporation
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	18.00%
Affinita Biotech Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	16.23%
Albireo Pharma, Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	4.25%
Arcutis Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	2.22%
Aristea Therapeutics, Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	15.00%
Biodesix Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	0.05%
Biohaven Pharmaceutical Holding Company Ltd.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	0.25%
BlinkBio Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	0.38%
Cerapedics Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	7.09%
Corvidia Corporation
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	11.98%
Elusys Therapeutics, Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	7.51%
Entasis Therapeutics Limited
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	16.53%
FibroGen, Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	0.65%
G1 Therapeutics, Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	7.93%
Hydra Biosciences Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	4.27%
Millendo Therapeutics, Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	3.08%
Moderna Therapeutics Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	7.75%
Myotherix Inc
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	8.27%
Nano Precision Medical, Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	4.83%
PhaseBio Pharmaceuticals, Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	12.26%
Rani Therapeutics, LLC
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	0.97%
Regulus Therapeutics Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	3.35%
Rocket Pharmaceuticals Inc.
Significant and associate holdings
Effective percentage of ownership interest in equity investment accounted for as FVOCI	1.07%