\n
\n
\n
\n\n
PP&E, intangible asset and goodwill impairment by segment
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
(revised)
\n
(2)
\n
\u00a3m
\n
2020
\n
(1)
\n
(revised)
\n
(2)
\n
\u00a3m
\n
Commercial Operations
29
30
87
\n
Research and development
32
55
37
\n
Segment impairment
61
85
124
\n
Corporate and other unallocated impairment
20
63
5
\n
Other reconciling items between segment impairment and total impairment
420
392
583
\n
Total impairment
501
540
712
\n
PP&E and intangible asset impairment reversals by segment
\n
Commercial Operations
(6)
(8)
(14)
\n
Research and development
(19)
(2)
(4)
\n
Segment impairment reversals
(25)
(10)
(18)
\n
Corporate and other unallocated impairment reversals
\u2013
\u2013
(1)
\n
Other reconciling items between segment impairment reversals and total impairment reversals
(1)
(2)
(35)
\n
Total impairment reversals
(26)
(12)
(54)
\n
Net operating assets by segment
\n
2022
\n
\u00a3m
\n
2021
\n
(revised)
\n
(2)
\n
\u00a3m
\n
Commercial Operations
10,288
9,440
\n
Research and development
7,299
3,461
\n
Segment net operating assets
17,587
12,901
\n
Corporate and other unallocated net operating assets
264
1,504
\n
Discontinued operations
\u2013
25,208
\n
Net operating assets
17,851
39,613
\n
Net debt
(17,197)
(19,838)
\n
Investments in associates and joint ventures
74
88
\n
Current Equity Investment
4,087
\u2013
\n
Derivative \ufb01nancial instruments
7
(22)
\n
Current and deferred taxation
5,176
1,479
\n
Assets held for sale (excluding cash and cash equivalents)
98
22
\n
Net assets
10,096
21,342
\n
The Commercial Operations segment includes the Shionogi-ViiV Healthcare contingent consideration liability of \u00a35,890 million
\n
(2021: \u00a35,559 million) and the P\ufb01zer put option of \u00a31,093 million (2021: \u00a31,008 million).
\n
Geographical information
\n
The UK is regarded as being the Group\u2019s country of domicile.
\n
Turnover by location of customer
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
(revised)
\n
(2)
\n
\u00a3m
\n
2020
\n
(1)
\n
(revised)
\n
(2)
\n
\u00a3m
\n
UK
695
656
659
\n
US
14,542
11,914
11,148
\n
Rest of World
14,087
12,126
12,547
\n
External turnover
29,324
24,696
24,354
\n
Non-current assets by location of subsidiary
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
UK
5,134
6,618
\n
US
14,024
17,852
\n
Belgium
5,415
5,065
\n
Switzerland
34
6,552
\n
Rest of World
6,559
15,390
\n
Non-current assets
31,166
51,477
\n
Non-current assets by location excludes amounts relating to other investments, deferred tax assets, derivative \ufb01nancial
\n
instruments, pension assets, amounts receivable under insurance contracts and certain other non-current receivables. There are
\n
no other countries with individually material external revenue or non-current assets.
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n
(see Note 41).
\n
(2)
The 2021 and 2020 comparatives have been revised to re\ufb02ect the new segments. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f25625": {
"value": "R&D investment is essential for the sustainability of the business. However for segment reporting the Commercial Operating pro\ufb01ts
exclude allocations of globally funded R&D.
\n
The Total R&D segment is the responsibility of the Chief Scienti\ufb01c Of\ufb01cer and is reported as a separate segment. The operating costs of
\n
this segment includes R&D activities across Specialty Medicines, including HIV and Vaccines. It includes R&D and some SG&A costs
\nrelating to regulatory and other functions.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26123": {
"value": "7. Other operating income/(expense)
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Upfront settlement income
\n
(2)
\n
922
\u2013
\u2013
\n
Fair value remeasurements of equity investments
256
37
(6)
\n
Disposal of businesses and assets
215
552
2,621
\n
Fair value remeasurements on contingent consideration recognised in business combinations
(1,607)
(1,058)
(1,286)
\n
Remeasurement of ViiV Healthcare put option liabilities and preferential dividends
(85)
(48)
52
\n
Fair value adjustments on derivative \ufb01nancial instruments
3
(4)
20
\n
Other income
61
17
62
\n
(235)
(504)
1,463
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n
(see Note 41).
\n
(2)
On 1 February 2022, ViiV Healthcare reached agreement with Gilead Sciences, Inc (Gilead) to settle the global patent infringement litigation relating to the commercialisation
\n
of Gilead\u2019s Biktarvy concerning ViiV Healthcare\u2019s patents relating to dolutegravir, an anti-retroviral medication used, together with other medicines, to treat human
\n
immunode\ufb01ciency virus (HIV). Under the terms of the global settlement and licensing agreement, Gilead made an upfront payment of $1.25 billion (\u00a3922 million) to ViiV
\n
Healthcare on 15 February 2022. In addition, Gilead will also pay a 3% royalty on all future US sales of Biktarvy and in respect of the bictegravir component of any other future
\n
bictegravir-containing products sold in the US. These royalties will be payable by Gilead to ViiV Healthcare from 1 February 2022 until the expiry of ViiV Healthcare\u2019s US Patent
\n
No. 8,129,385 on 5 October 2027 and will be recorded as Royalty income in the Income Statement.
\n
Fair value remeasurement on equity investments in 2022 included a gain/loss of \u00a3229 million from the remeasurement of the
\n
Group\u2019s retained investment in Haleon plc to fair value at 31 December 2022 from the initial recognition fair value (\ufb01ve-day
\n
average share price after the demerger). See details in Note 22.
\n
Disposal of businesses and assets in 2022 includes milestone income and the reversal of provisions no longer required.
\n
Disposal of businesses and assets in 2021 included a net gain on disposal of the rights to the royalty stream for cabozantinib and
\n
a net gain on disposal of the cephalosporin antibiotic brands to Sandoz.
\n
Disposal of businesses and assets in 2020 included a net pro\ufb01t on disposal of the Horlicks and other Consumer Healthcare
\n
nutritional brands and two subsidiaries in India and Bangladesh of \u00a32,815 million, which re\ufb02ected reversal of \u00a3240 million of
\n
embedded derivative gains on the value of the shares taken in prior years. This was partly offset by the related \u00a3476 million loss
\n
on the shares in Hindustan Unilever Limited, including fair value remeasurement losses between their acquisition as consideration
\n
for the divestment of GSK Consumer Healthcare Limited in India and their subsequent disposal. Other operating income also
\n
included an increase in pro\ufb01t and milestone income from a number of asset disposals.
\n
Fair value remeasurements on contingent consideration recognised as business combinations included \u00a31,431 million related to
\n
the acquisition of the former Shionogi-ViiV Healthcare joint venture and \u00a3193 million payable to Novartis related to the Vaccines
\nacquisition, together with fair value movements on related hedging contracts.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26124": {
"value": "7. Other operating income/(expense)
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Upfront settlement income
\n
(2)
\n
922
\u2013
\u2013
\n
Fair value remeasurements of equity investments
256
37
(6)
\n
Disposal of businesses and assets
215
552
2,621
\n
Fair value remeasurements on contingent consideration recognised in business combinations
(1,607)
(1,058)
(1,286)
\n
Remeasurement of ViiV Healthcare put option liabilities and preferential dividends
(85)
(48)
52
\n
Fair value adjustments on derivative \ufb01nancial instruments
3
(4)
20
\n
Other income
61
17
62
\n
(235)
(504)
1,463
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n
(see Note 41).
\n
(2)
On 1 February 2022, ViiV Healthcare reached agreement with Gilead Sciences, Inc (Gilead) to settle the global patent infringement litigation relating to the commercialisation
\n
of Gilead\u2019s Biktarvy concerning ViiV Healthcare\u2019s patents relating to dolutegravir, an anti-retroviral medication used, together with other medicines, to treat human
\n
immunode\ufb01ciency virus (HIV). Under the terms of the global settlement and licensing agreement, Gilead made an upfront payment of $1.25 billion (\u00a3922 million) to ViiV
\n
Healthcare on 15 February 2022. In addition, Gilead will also pay a 3% royalty on all future US sales of Biktarvy and in respect of the bictegravir component of any other future
\n
bictegravir-containing products sold in the US. These royalties will be payable by Gilead to ViiV Healthcare from 1 February 2022 until the expiry of ViiV Healthcare\u2019s US Patent
\n
No. 8,129,385 on 5 October 2027 and will be recorded as Royalty income in the Income Statement.
\n
Fair value remeasurement on equity investments in 2022 included a gain/loss of \u00a3229 million from the remeasurement of the
\n
Group\u2019s retained investment in Haleon plc to fair value at 31 December 2022 from the initial recognition fair value (\ufb01ve-day
\n
average share price after the demerger). See details in Note 22.
\n
Disposal of businesses and assets in 2022 includes milestone income and the reversal of provisions no longer required.
\n
Disposal of businesses and assets in 2021 included a net gain on disposal of the rights to the royalty stream for cabozantinib and
\n
a net gain on disposal of the cephalosporin antibiotic brands to Sandoz.
\n
Disposal of businesses and assets in 2020 included a net pro\ufb01t on disposal of the Horlicks and other Consumer Healthcare
\n
nutritional brands and two subsidiaries in India and Bangladesh of \u00a32,815 million, which re\ufb02ected reversal of \u00a3240 million of
\n
embedded derivative gains on the value of the shares taken in prior years. This was partly offset by the related \u00a3476 million loss
\n
on the shares in Hindustan Unilever Limited, including fair value remeasurement losses between their acquisition as consideration
\n
for the divestment of GSK Consumer Healthcare Limited in India and their subsequent disposal. Other operating income also
\n
included an increase in pro\ufb01t and milestone income from a number of asset disposals.
\n
Fair value remeasurements on contingent consideration recognised as business combinations included \u00a31,431 million related to
\n
the acquisition of the former Shionogi-ViiV Healthcare joint venture and \u00a3193 million payable to Novartis related to the Vaccines
\nacquisition, together with fair value movements on related hedging contracts.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26125": {
"value": "7. Other operating income/(expense)
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Upfront settlement income
\n
(2)
\n
922
\u2013
\u2013
\n
Fair value remeasurements of equity investments
256
37
(6)
\n
Disposal of businesses and assets
215
552
2,621
\n
Fair value remeasurements on contingent consideration recognised in business combinations
(1,607)
(1,058)
(1,286)
\n
Remeasurement of ViiV Healthcare put option liabilities and preferential dividends
(85)
(48)
52
\n
Fair value adjustments on derivative \ufb01nancial instruments
3
(4)
20
\n
Other income
61
17
62
\n
(235)
(504)
1,463
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n
(see Note 41).
\n
(2)
On 1 February 2022, ViiV Healthcare reached agreement with Gilead Sciences, Inc (Gilead) to settle the global patent infringement litigation relating to the commercialisation
\n
of Gilead\u2019s Biktarvy concerning ViiV Healthcare\u2019s patents relating to dolutegravir, an anti-retroviral medication used, together with other medicines, to treat human
\n
immunode\ufb01ciency virus (HIV). Under the terms of the global settlement and licensing agreement, Gilead made an upfront payment of $1.25 billion (\u00a3922 million) to ViiV
\n
Healthcare on 15 February 2022. In addition, Gilead will also pay a 3% royalty on all future US sales of Biktarvy and in respect of the bictegravir component of any other future
\n
bictegravir-containing products sold in the US. These royalties will be payable by Gilead to ViiV Healthcare from 1 February 2022 until the expiry of ViiV Healthcare\u2019s US Patent
\n
No. 8,129,385 on 5 October 2027 and will be recorded as Royalty income in the Income Statement.
\n
Fair value remeasurement on equity investments in 2022 included a gain/loss of \u00a3229 million from the remeasurement of the
\n
Group\u2019s retained investment in Haleon plc to fair value at 31 December 2022 from the initial recognition fair value (\ufb01ve-day
\n
average share price after the demerger). See details in Note 22.
\n
Disposal of businesses and assets in 2022 includes milestone income and the reversal of provisions no longer required.
\n
Disposal of businesses and assets in 2021 included a net gain on disposal of the rights to the royalty stream for cabozantinib and
\n
a net gain on disposal of the cephalosporin antibiotic brands to Sandoz.
\n
Disposal of businesses and assets in 2020 included a net pro\ufb01t on disposal of the Horlicks and other Consumer Healthcare
\n
nutritional brands and two subsidiaries in India and Bangladesh of \u00a32,815 million, which re\ufb02ected reversal of \u00a3240 million of
\n
embedded derivative gains on the value of the shares taken in prior years. This was partly offset by the related \u00a3476 million loss
\n
on the shares in Hindustan Unilever Limited, including fair value remeasurement losses between their acquisition as consideration
\n
for the divestment of GSK Consumer Healthcare Limited in India and their subsequent disposal. Other operating income also
\n
included an increase in pro\ufb01t and milestone income from a number of asset disposals.
\n
Fair value remeasurements on contingent consideration recognised as business combinations included \u00a31,431 million related to
\n
the acquisition of the former Shionogi-ViiV Healthcare joint venture and \u00a3193 million payable to Novartis related to the Vaccines
\nacquisition, together with fair value movements on related hedging contracts.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26223": {
"value": "8. Operating pro\ufb01t
The following items have been included in operating pro\ufb01t:
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Employee costs (Note 9)
7,693
7,680
8,555
\n
Advertising
735
433
361
\n
Distribution costs
192
169
176
\n
Depreciation of property, plant and equipment
885
855
822
\n
Impairment of property, plant and equipment, net of reversals
70
87
424
\n
Depreciation of right of use assets
176
179
182
\n
Impairment of right of use assets
40
5
2
\n
Amortisation of intangible assets
1,086
1,088
1,046
\n
Impairment of intangible assets, net of reversals
365
435
230
\n
Impairment of intangible assets held for sale, net of reversals
\u2013
1
\u2013
\n
Impairment of goodwill allocated to a disposal group, net of reversals
\u2013
\u2013
2
\n
Net foreign exchange (gains)/losses
11
(4)
99
\n
Inventories:
\n
Cost of inventories included in cost of sales
6,137
5,885
5,934
\n
Write-down of inventories
687
800
607
\n
Reversal of prior year write-down of inventories
(483)
(325)
(250)
\n
Short-term lease charge
6
7
11
\n
Low-value lease charge
2
3
5
\n
Variable lease payments
9
10
11
\n
Fees payable to the company\u2019s auditor and its associates in relation to the Group (see below)
26.9
31.7
29.9
\n
The reversals of prior year write-downs of inventories principally arise from the reassessment of usage or demand expectations
\n
prior to inventory expiration.
\n
Net foreign exchange (gains)/losses include a net loss of \u00a32 million (2021: \u00a335 million gain; 2020: \u00a336 million loss) arising from the
\n
recycling of exchange on liquidation or disposal of overseas subsidiaries. The recycling of exchange on disposal of overseas
\n
associates of a loss of \u00a3nil (2021: \u00a310 million) is reported through loss on disposal of interest in associates. The recycling of
\n
exchange on disposal of overseas subsidiaries does not include recycling of exchange on disposal of Consumer Healthcare
\n
subsidiaries as this is reported as Pro\ufb01t after taxation on demerger of discontinued operations.
\n
Included within operating pro\ufb01t are Major restructuring charges of \u00a3321 million (2021: \u00a3424 million; 2020: \u00a31,178 million), see Note
\n
10, \u2018Major restructuring costs\u2019.
\n
Fees payable to the company\u2019s auditor and its associates:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Audit of parent company and consolidated \ufb01nancial statements including attestation under s.404
\n
of Sarbanes-Oxley Act 2002
10.9
13.2
13.8
\n
Audit of the company\u2019s subsidiaries
9.7
14.5
14.5
\n
Total audit services
20.6
27.7
28.3
\n
Audit-related and other assurance services
6.3
4.0
1.6
\n
Total audit services, audit-related and other assurance services
26.9
31.7
29.9
\n
The other assurance services provided by the auditor related to agreed upon procedures and other assurance services outside of
\n
statutory audit requirements. In addition to the above, fees paid to the auditor in respect of the GSK pension schemes were:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Audit
0.2
0.2
0.2
\n
There were immaterial fees of \u00a30.1 million paid in 2022 (versus 2021: \u00a3nil; 2020 \u00a30.2 million) to other auditors in respect of audits of
\n
certain of the company\u2019s subsidiaries.
\n
Audit related and other assurance services include \u00a34.4 million (2021: \u00a32.4 million) due to reporting accountant work performed in
\n
preparation for the Consumer Healthcare demerger.
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n(see Note 41). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26224": {
"value": "8. Operating pro\ufb01t
The following items have been included in operating pro\ufb01t:
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Employee costs (Note 9)
7,693
7,680
8,555
\n
Advertising
735
433
361
\n
Distribution costs
192
169
176
\n
Depreciation of property, plant and equipment
885
855
822
\n
Impairment of property, plant and equipment, net of reversals
70
87
424
\n
Depreciation of right of use assets
176
179
182
\n
Impairment of right of use assets
40
5
2
\n
Amortisation of intangible assets
1,086
1,088
1,046
\n
Impairment of intangible assets, net of reversals
365
435
230
\n
Impairment of intangible assets held for sale, net of reversals
\u2013
1
\u2013
\n
Impairment of goodwill allocated to a disposal group, net of reversals
\u2013
\u2013
2
\n
Net foreign exchange (gains)/losses
11
(4)
99
\n
Inventories:
\n
Cost of inventories included in cost of sales
6,137
5,885
5,934
\n
Write-down of inventories
687
800
607
\n
Reversal of prior year write-down of inventories
(483)
(325)
(250)
\n
Short-term lease charge
6
7
11
\n
Low-value lease charge
2
3
5
\n
Variable lease payments
9
10
11
\n
Fees payable to the company\u2019s auditor and its associates in relation to the Group (see below)
26.9
31.7
29.9
\n
The reversals of prior year write-downs of inventories principally arise from the reassessment of usage or demand expectations
\n
prior to inventory expiration.
\n
Net foreign exchange (gains)/losses include a net loss of \u00a32 million (2021: \u00a335 million gain; 2020: \u00a336 million loss) arising from the
\n
recycling of exchange on liquidation or disposal of overseas subsidiaries. The recycling of exchange on disposal of overseas
\n
associates of a loss of \u00a3nil (2021: \u00a310 million) is reported through loss on disposal of interest in associates. The recycling of
\n
exchange on disposal of overseas subsidiaries does not include recycling of exchange on disposal of Consumer Healthcare
\n
subsidiaries as this is reported as Pro\ufb01t after taxation on demerger of discontinued operations.
\n
Included within operating pro\ufb01t are Major restructuring charges of \u00a3321 million (2021: \u00a3424 million; 2020: \u00a31,178 million), see Note
\n
10, \u2018Major restructuring costs\u2019.
\n
Fees payable to the company\u2019s auditor and its associates:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Audit of parent company and consolidated \ufb01nancial statements including attestation under s.404
\n
of Sarbanes-Oxley Act 2002
10.9
13.2
13.8
\n
Audit of the company\u2019s subsidiaries
9.7
14.5
14.5
\n
Total audit services
20.6
27.7
28.3
\n
Audit-related and other assurance services
6.3
4.0
1.6
\n
Total audit services, audit-related and other assurance services
26.9
31.7
29.9
\n
The other assurance services provided by the auditor related to agreed upon procedures and other assurance services outside of
\n
statutory audit requirements. In addition to the above, fees paid to the auditor in respect of the GSK pension schemes were:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Audit
0.2
0.2
0.2
\n
There were immaterial fees of \u00a30.1 million paid in 2022 (versus 2021: \u00a3nil; 2020 \u00a30.2 million) to other auditors in respect of audits of
\n
certain of the company\u2019s subsidiaries.
\n
Audit related and other assurance services include \u00a34.4 million (2021: \u00a32.4 million) due to reporting accountant work performed in
\n
preparation for the Consumer Healthcare demerger.
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n(see Note 41). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26323": {
"value": "Fees payable to the company\u2019s auditor and its associates:
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Audit of parent company and consolidated \ufb01nancial statements including attestation under s.404
\n
of Sarbanes-Oxley Act 2002
10.9
13.2
13.8
\n
Audit of the company\u2019s subsidiaries
9.7
14.5
14.5
\n
Total audit services
20.6
27.7
28.3
\n
Audit-related and other assurance services
6.3
4.0
1.6
\n
Total audit services, audit-related and other assurance services
26.9
31.7
29.9
\n
The other assurance services provided by the auditor related to agreed upon procedures and other assurance services outside of
\n
statutory audit requirements. In addition to the above, fees paid to the auditor in respect of the GSK pension schemes were:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Audit
0.2
0.2
0.2
\n
There were immaterial fees of \u00a30.1 million paid in 2022 (versus 2021: \u00a3nil; 2020 \u00a30.2 million) to other auditors in respect of audits of
\n
certain of the company\u2019s subsidiaries.
\n
Audit related and other assurance services include \u00a34.4 million (2021: \u00a32.4 million) due to reporting accountant work performed in
\npreparation for the Consumer Healthcare demerger.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26392": {
"value": "9. Employee costs
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Wages and salaries
6,110
5,858
6,464
\n
Social security costs
763
793
775
\n
Pension and other post-employment costs, including augmentations (Note 31)
369
415
466
\n
Cost of share-based incentive plans
314
345
330
\n
Severance and other costs from integration and restructuring activities
137
269
520
\n
7,693
7,680
8,555
\n
The Group provides bene\ufb01ts to employees, commensurate with local practice in individual countries, including in some markets,
\n
healthcare insurance, subsidised car schemes and personal life assurance.
\n
The cost of share-based incentive plans is analysed as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Share Value Plan
243
258
266
\n
Performance Share Plan
55
51
56
\n
Share option plans
4
5
4
\n
Cash settled and other plans
12
31
4
\n
314
345
330
\n
The average number of persons employed by the Group (including Directors) during the year:
\n
2022
\n
Number
\n
2021
\n
(1)
\n
Number
\n
2020
\n
(1)
\n
Number
\n
Manufacturing
22,946
23,562
24,536
\n
Selling, general and administration
34,642
36,909
37,977
\n
Research and development
11,542
10,874
10,744
\n
Total Continuing Operations
69,130
71,345
73,257
\n
Discontinued Operations
21,292
20,616
22,628
\n
Total
90,422
91,961
95,885
\n
Note: Consumer Healthcare divested on 18 July 2022 is shown as Discontinued Operations in the above table.
\n
The average monthly number of Group employees excludes temporary and contract staff. The numbers of Group employees at
\n
the end of each \ufb01nancial year are given in the \ufb01nancial record on page 277.
\n
The compensation of the Directors and senior management (members of the GLT) in aggregate, was as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Wages and salaries
31
27
21
\n
Social security costs
5
3
4
\n
Pension and other post-employment costs
2
3
3
\n
Cost of share-based incentive plans
28
27
23
\n
66
60
51
\n
Further information on the remuneration of the Directors is given in the sections of the Annual Report on remuneration labelled as
\n
audited within pages 133 to 164.
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n(see Note 41). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26492": {
"value": "The compensation of the Directors and senior management (members of the GLT) in aggregate, was as follows:
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Wages and salaries
31
27
21
\n
Social security costs
5
3
4
\n
Pension and other post-employment costs
2
3
3
\n
Cost of share-based incentive plans
28
27
23
\n
66
60
51
\n
Further information on the remuneration of the Directors is given in the sections of the Annual Report on remuneration labelled as
\naudited within pages 133 to 164.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26708": {
"value": "11. Finance income
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Finance income arising from:
\n
Financial assets measured at amortised cost
31
11
17
\n
Financial assets measured at fair value through pro\ufb01t or loss
31
2
9
\n
Net gains arising from the forward element of forward contracts in net investment hedge relationships
12
\u2013
5
\n
Other \ufb01nance income
2
1
1
\n
76
14
32
\n
12. Finance expense
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Finance expense arising on:
\n
Financial liabilities at amortised cost
(789)
(735)
(811)
\n
Net losses arising from:
\n
Financial instruments mandatorily measured at fair value through pro\ufb01t or loss
743
(565)
382
\n
Retranslation of loans
(761)
565
(384)
\n
Reclassi\ufb01cation of hedges from other comprehensive income
(2)
(2)
(2)
\n
Unwinding of discounts on provisions
(7)
(2)
(3)
\n
Finance expense arising on lease liabilities
(30)
(27)
(33)
\n
Other \ufb01nance expense
(33)
(3)
(23)
\n
(879)
(769)
(874)
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n(see Note 41). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26709": {
"value": "11. Finance income
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Finance income arising from:
\n
Financial assets measured at amortised cost
31
11
17
\n
Financial assets measured at fair value through pro\ufb01t or loss
31
2
9
\n
Net gains arising from the forward element of forward contracts in net investment hedge relationships
12
\u2013
5
\n
Other \ufb01nance income
2
1
1
\n
76
14
32 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26742": {
"value": "12. Finance expense
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Finance expense arising on:
\n
Financial liabilities at amortised cost
(789)
(735)
(811)
\n
Net losses arising from:
\n
Financial instruments mandatorily measured at fair value through pro\ufb01t or loss
743
(565)
382
\n
Retranslation of loans
(761)
565
(384)
\n
Reclassi\ufb01cation of hedges from other comprehensive income
(2)
(2)
(2)
\n
Unwinding of discounts on provisions
(7)
(2)
(3)
\n
Finance expense arising on lease liabilities
(30)
(27)
(33)
\n
Other \ufb01nance expense
(33)
(3)
(23)
\n
(879)
(769)
(874)
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
(see Note 41). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26815": {
"value": "
13. Associates and joint ventures
\n
The Group\u2019s share of after-tax pro\ufb01ts and losses of associates and joint ventures is set out below:
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Share of after-tax pro\ufb01ts of associates
1
36
33
\n
Share of after-tax losses of joint ventures
(3)
(3)
\u2013
\n
(2)
33
33
\n
(1)
2021 and 2020 comparatives have not been restated, as the demerged Consumer Healthcare business contained no associates or joint ventures.
\n
Following the disposal of Innoviva, Inc in May 2021 (see details in Note 41), at 31 December 2022 and 31 December 2021 the Group
\n
held no signi\ufb01cant individual associates. At 31 December 2020, the Group held one signi\ufb01cant associate, Innoviva, Inc.
\n
Summarised income statement information in respect of Innoviva until May 2021 is set out below. The Group\u2019s 2021 share of
\n
after-tax pro\ufb01ts of associates and other comprehensive income included a pro\ufb01t of \u00a333 million and other comprehensive income
\n
of \u00a3nil in respect of Innoviva.
\n
The results of Innoviva included in the summarised income statement information below represent the estimated earnings of
\n
Innoviva in the relevant periods, based on publicly available information at the balance sheet date. Figures for 2021 include share
\n
of Innoviva\u2019s turnover, pro\ufb01t and total comprehensive income until the date of the disposal.
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Turnover
108
253
\n
Pro\ufb01t after taxation
106
174
\n
Total comprehensive income
106
174
\n
Aggregated \ufb01nancial information in respect of GSK\u2019s share of other associated undertakings and joint ventures is set out below:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Share of after-tax losses
(2)
\u2013
(8)
\n
Share of other comprehensive income/(expense)
(9)
28
53
\n
Share of total comprehensive income/(expense)
(11)
28
45
\n
The Group\u2019s sales to associates and joint ventures were \u00a3nil in 2022 (2021: \u00a3nil; 2020: \u00a3nil).
\n
Please refer to the Balance sheet information on associates and joint ventures in Note 21.
21. Investments in associates and joint ventures
\n
Joint
\n
ventures
\n
\u00a3m
\n
Associates
\n
\u00a3m
\n
2022
\n
Total
\n
\u00a3m
\n
Joint
\n
ventures
\n
\u00a3m
\n
Associates
\n
\u00a3m
\n
2021
\n
Total
\n
\u00a3m
\n
At 1 January
12
76
88
15
349
364
\n
Exchange adjustments
1
1
2
\u2013
(15)
(15)
\n
Additions
\u2013
1
1
\u2013
1
1
\n
Disposals
\u2013
\u2013
\u2013
\u2013
(278)
(278)
\n
Distributions received
\u2013
(6)
(6)
\u2013
(9)
(9)
\n
Net fair value movements through Other comprehensive income
\u2013
(9)
(9)
\u2013
28
28
\n
Impairment of interest in associates
\u2013
\u2013
\u2013
\u2013
(36)
(36)
\n
Pro\ufb01t/(loss) after tax recognised in the consolidated income
\n
statement
\n
(3)
1
(2)
(3)
36
33
\n
At 31 December
10
64
74
12
76
88
\n
On 20 May 2021, the Group agreed with Innoviva Inc to sell all of its shares in Innoviva back to Innoviva for \u00a3277 million. Following
\n
settlement of the transaction, GSK no longer held any Innoviva stock. A loss of \u00a346 million (including \u00a310 million of recycling of
\n
exchange differences in Innoviva) is presented in Loss on disposal of interest in associates in the 2021 Consolidated income
\n
statement. The transaction did not include any changes in Innoviva\u2019s commercial interest in royalties paid by GSK. Loss on disposal
\n
of interest in associates in 2021 also includes a \u00a310 million gain from a disposal of another immaterial associate.
\n
Please refer to the Income statement information on associates and joint ventures in Note 13.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26817": {
"value": "13. Associates and joint ventures
The Group\u2019s share of after-tax pro\ufb01ts and losses of associates and joint ventures is set out below:
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Share of after-tax pro\ufb01ts of associates
1
36
33
\n
Share of after-tax losses of joint ventures
(3)
(3)
\u2013
\n
(2)
33
33
\n
(1)
2021 and 2020 comparatives have not been restated, as the demerged Consumer Healthcare business contained no associates or joint ventures.
\n
Following the disposal of Innoviva, Inc in May 2021 (see details in Note 41), at 31 December 2022 and 31 December 2021 the Group
\n
held no signi\ufb01cant individual associates. At 31 December 2020, the Group held one signi\ufb01cant associate, Innoviva, Inc.
\n
Summarised income statement information in respect of Innoviva until May 2021 is set out below. The Group\u2019s 2021 share of
\n
after-tax pro\ufb01ts of associates and other comprehensive income included a pro\ufb01t of \u00a333 million and other comprehensive income
\n
of \u00a3nil in respect of Innoviva.
\n
The results of Innoviva included in the summarised income statement information below represent the estimated earnings of
\n
Innoviva in the relevant periods, based on publicly available information at the balance sheet date. Figures for 2021 include share
\n
of Innoviva\u2019s turnover, pro\ufb01t and total comprehensive income until the date of the disposal.
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Turnover
108
253
\n
Pro\ufb01t after taxation
106
174
\n
Total comprehensive income
106
174
\n
Aggregated \ufb01nancial information in respect of GSK\u2019s share of other associated undertakings and joint ventures is set out below:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Share of after-tax losses
(2)
\u2013
(8)
\n
Share of other comprehensive income/(expense)
(9)
28
53
\n
Share of total comprehensive income/(expense)
(11)
28
45
\n
The Group\u2019s sales to associates and joint ventures were \u00a3nil in 2022 (2021: \u00a3nil; 2020: \u00a3nil).
\nPlease refer to the Balance sheet information on associates and joint ventures in Note 21.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfJointVenturesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26902": {
"value": "14. Taxation
The Group\u2019s tax charge is the sum of the total current and deferred tax expense.
\n
Taxation charge based on pro\ufb01ts for the year
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
UK current year charge
200
119
(45)
\n
Rest of World current year charge
1,351
593
745
\n
Charge/(credit) in respect of prior periods
(60)
219
11
\n
Current taxation
1,491
931
711
\n
Deferred taxation
(784)
(848)
(644)
\n
707
83
67
\n
In 2022, GSK made corporate income tax payments globally of \u00a31.5 billion for continuing and discontinued operations, of which
\n
\u00a348 million was UK corporation tax paid to HMRC. These amounts are for corporate income tax only, and do not include the
\n
various other business taxes borne by GSK each year.
\n
The deferred tax credits in each period re\ufb02ect current year losses where offset against taxable pro\ufb01ts in future periods is probable
\n
and the release of deferred tax liabilities. The latter relates primarily to the unwind of deferred tax liabilities on intangible assets.
\n
The deferred tax credit in 2021 also re\ufb02ected the impact of the remeasurement of deferred tax assets and liabilities following
\n
enactment of the increase in the headline rate of UK corporation tax from 19% to 25%.
\n
The following table reconciles the tax charge calculated at the UK statutory rate on the Group pro\ufb01t before tax with the actual
\n
tax charge for the year.
\n
Reconciliation of taxation on Group pro\ufb01ts
\n
2022
\n
\u00a3m
\n
2022
\n
%
\n
2021
\n
(1)
\n
\u00a3m
\n
2021
\n
%
\n
2020
\n
(1)
\n
\u00a3m
\n
2020
\n
%
\n
Pro\ufb01t before tax
5,628
3,599
5,170
\n
UK statutory rate of taxation
1,069
19.0
685
19.0
984
19.0
\n
Differences in overseas taxation rates
318
5.6
302
8.4
363
7.0
\n
Bene\ufb01t of intellectual property incentives
(600)
(10.7)
(382)
(10.6)
(516)
(9.9)
\n
R&D credits
(119)
(2.1)
(100)
(2.8)
(103)
(2.0)
\n
Permanent differences on disposals, acquisitions and transfers
275
4.9
(3)
(0.1)
(316)
(6.1)
\n
Other permanent differences
82
1.5
(4)
(0.1)
90
1.7
\n
Re-assessments of prior year current tax estimates
(60)
(1.1)
219
6.1
11
0.2
\n
Re-assessments of prior year deferred tax estimates
(233)
(4.1)
(281)
(7.8)
(283)
(5.5)
\n
Changes in Tax Rates
(25)
(0.4)
(353)
(9.8)
(163)
(3.1)
\n
Tax charge/tax rate
707
12.6
83
2.3
67
12.9
\n
As a global biopharmaceutical company, we have a substantial business and employment presence in many countries around the
\n
world. The impact of differences in overseas taxation rates arose from pro\ufb01ts being earned in countries with tax rates higher than
\n
the UK statutory rate, the most signi\ufb01cant of which in 2022 were the US, Belgium, Germany and Japan. This adverse impact was
\n
offset by the bene\ufb01t of intellectual property incentives such as the UK Patent Box and Belgian Innovation Income Deduction
\n
regimes, which provide a reduced rate of corporation tax on pro\ufb01ts earned from qualifying patents. We claim these incentives in
\n
the manner intended by the relevant statutory or regulatory framework.
\n
In 2021, \u2018Changes in tax rates\u2019 included credits in relation to the enactment of the increase in the headline rate of UK corporate
\n
income tax from 19% to 25% (effective 2023). In 2020, \u2018Changes in tax rates\u2019 included credits in relation to the UK, where a
\n
reduction in the corporate income tax rate from 19% to 17% was cancelled, and India, where the tax treatment of dividends
\n
changed with effect from 1 April 2020.
\n
Permanent differences on disposals, acquisitions and transfers in 2022 includes tax on internal restructuring to simplify the group
\n
structure. The tax credit in 2020 re\ufb02ected the tax impact of the disposal of Horlicks and other Consumer Healthcare brands to,
\n
and subsequent disposal of shares received in, Hindustan Unilever.
\n
The Group\u2019s 2022 tax rate has also been in\ufb02uenced by updates to estimates of prior period tax liabilities following closure of open
\n
issues with tax authorities in various jurisdictions.
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n
(see Note 41).
\n
\n
\n
\n
\n
\n\n
Future tax charges, and therefore our effective tax rate, may be affected by factors such as acquisitions, disposals, restructurings,
\n
the location of research and development activity, tax regime reforms and resolution of open matters as we continue to bring our
\n
tax affairs up to date around the world.
\n
The UK Government has con\ufb01rmed that the Spring Finance Bill 2023 will include legislation introducing a 15% global minimum
\n
corporate income tax rate, to have effect from 2024 in line with the OECD\u2019s Pillar Two model framework. The detail of the
\n
measures and how they are to be accounted for is still being \ufb01nalised and so it is not possible to accurately quantify the impact for
\n
GSK at this stage.
\n
Tax on items charged to equity and statement of comprehensive income
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Current taxation
\n
Share-based payments
(3)
\u2013
(14)
\n
De\ufb01ned bene\ufb01t plans
\u2013
\u2013
(4)
\n
Fair value movements on cash \ufb02ow hedges
\u2013
5
12
\n
Fair value movements on equity investments
12
36
89
\n
9
41
83
\n
Deferred taxation
\n
Share-based payments
11
(11)
18
\n
De\ufb01ned bene\ufb01t plans
(211)
223
(51)
\n
Fair value movements on cash \ufb02ow hedges
(9)
3
6
\n
Fair value movements on equity investments
(68)
(167)
131
\n
(277)
48
104
\n
Total credit to equity and statement of comprehensive income
(268)
89
187
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n
(see Note 41).
\n
All of the above items have been charged to the statement of comprehensive income except for tax on share-based payments.
\n
Issues relating to taxation
\n
The integrated nature of the Group\u2019s worldwide operations involves signi\ufb01cant investment in research and strategic manufacture
\n
at a limited number of locations, with consequential cross-border supply routes into numerous end-markets. In line with current
\n
OECD guidelines, we base our transfer pricing policy on the arm\u2019s length principle and support our transfer prices with economic
\n
analysis and reports. However, different tax authorities may seek to attribute further pro\ufb01t to activities being undertaken in their
\n
jurisdiction potentially resulting in double taxation. The Group also has open items in several jurisdictions concerning such matters
\n
as the deductibility of particular expenses and the tax treatment of certain business transactions. GSK applies a risk based
\n
approach to determine the transactions most likely to be subject to challenge and the probability that the Group would be able to
\n
obtain compensatory adjustments under international tax treaties.
\n
The calculation of the Group\u2019s total tax charge therefore necessarily involves a degree of estimation and judgement in respect of
\n
certain items whose tax treatment cannot be \ufb01nally determined until resolution has been reached with the relevant tax authority
\n
or, as appropriate, through a formal legal process. At 31 December 2022 the Group had recognised provisions of \u00a3551 million in
\n
respect of such uncertain tax positions (2021: \u00a3858 million). The net decrease in recognised provisions during 2022 was driven by
\n
the reassessment of estimates, the agreement of a number of open issues with tax authorities in various jurisdictions and amounts
\n
related to discontinued operations. Whilst the ultimate liability for such matters may vary from the amounts provided and is
\n
dependent upon the outcome of agreements with the relevant tax authorities, or litigation where appropriate, the Group continues
\n
to consider that it has made appropriate provision for periods which are open and not yet agreed by the tax authorities.
\n
A provision for deferred tax liabilities of \u00a3157 million as at 31 December 2022 (2021: \u00a3204 million) has been made in respect of
\n
taxation that would be payable on the remittance of pro\ufb01ts by certain overseas subsidiaries. Whilst the aggregate amount of
\n
unremitted pro\ufb01ts at the balance sheet date was approximately \u00a316 billion (2021: \u00a315 billion), the majority of these unremitted
\n
pro\ufb01ts would not be subject to tax (including withholding tax) on repatriation, as UK legislation relating to company distributions
\n
provides for exemption from tax for most overseas pro\ufb01ts, subject to certain exceptions. Deferred tax is not provided on temporary
\n
differences of \u00a3660 million (2021: \u00a3831 million) arising on unremitted pro\ufb01ts as management has the ability to control any future
\n
reversal and does not consider such a reversal to be probable.
\n
\n
\n
\n\n
Movement in deferred tax assets and liabilities
\n
Accelerated
\n
capital
\n
allowances
\n
\u00a3m
\n
Intangible
\n
assets
\n
\u00a3m
\n
Contingent
\n
consideration
\n
\u00a3m
\n
Intra-Group
\n
pro\ufb01t
\n
\u00a3m
\n
Pensions &
\n
other post
\n
employment
\n
bene\ufb01ts
\n
\u00a3m
\n
Tax
\n
losses
\n
\u00a3m
\n
Share
\n
option
\n
and award
\n
schemes
\n
\u00a3m
\n
Other
\n
net
\n
temporary
\n
differences
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At 1 January 2021
(296)
(3,982)
843
1,024
874
1,060
60
1,104
687
\n
Exchange adjustments
17
(41)
\u2013
6
(17)
(1)
\u2013
\u2013
(36)
\n
Credit/(charge) to income statement
65
312
7
(31)
6
391
20
232
1,002
\n
Credit/(charge) to statement of
\n
comprehensive income
\u2013
\u2013
\u2013
\u2013
(223)
\u2013
11
164
(48)
\n
Acquisitions/Disposals
3
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
(4)
(1)
\n
R&D credits utilisation
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
58
58
\n
At 31 December 2021
(211)
(3,711)
850
999
640
1,450
91
1,554
1,662
\n
Exchange adjustments
(29)
(264)
\u2013
(40)
64
6
1
160
(102)
\n
Credit/(charge) to income statement
122
126
142
258
(32)
104
(22)
190
888
\n
Credit/(charge) to statement of
\n
comprehensive income
\u2013
\u2013
\u2013
\u2013
182
42
(11)
(12)
201
\n
Acquisitions/Disposals
(1)
(637)
\u2013
\u2013
\u2013
67
\u2013
76
(495)
\n
R&D credits utilisation
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
(76)
(76)
\n
Transfer of assets held for sale/
\n
distribution
62
3,667
\u2013
(118)
(60)
(8)
(2)
(250)
3,291
\n
At 31 December 2022
(57)
(819)
992
1,099
794
1,661
57
1,642
5,369
\n
Deferred tax liabilities in relation to intangible assets predominately relate to temporary differences arising as a result of historic business
\n
combinations.
\n
The Group continues to recognise deferred tax assets on future obligations in respect of contingent consideration amounts payable to
\n
minority shareholders. These payments are tax deductible at the point in time at which payment is made.
\n
A deferred tax asset is recognised on intra-Group pro\ufb01ts arising on inter-company inventory which are eliminated within the consolidated
\n
accounts. As intra-Group pro\ufb01ts are not eliminated from the individual entities\u2019 tax returns a temporary difference arises that will reverse
\n
at the point in time inventory is sold externally.
\n
The deferred tax asset recognised on tax losses of \u00a31,661 million (2021: \u00a31,450 million) relates to trading losses. Such deferred tax assets
\n
are recognised where it is probable that future taxable pro\ufb01t will be available to utilise losses, as supported by long-range product level
\n
forecasts. Current forecasts indicate the assets will be utilised by around 2030. Other net temporary differences included accrued
\n
expenses for which a tax deduction is only available on a paid basis.
\n
Deferred tax assets and liabilities are recognised on the balance sheet as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Deferred tax assets
5,658
5,218
\n
Deferred tax liabilities
(289)
(3,556)
\n
5,369
1,662
\n
2022
2021
\n
Unrecognised tax losses
\n
Tax losses
\n
\u00a3m
\n
Unrecognised
\n
deferred tax
\n
asset
\n
\u00a3m
\n
Tax losses
\n
\u00a3m
\n
Unrecognised
\n
deferred tax
\n
asset
\n
\u00a3m
\n
Trading losses expiring:
\n
Within 10 years
967
175
1,068
198
\n
More than 10 years
44
13
390
62
\n
Available inde\ufb01nitely
192
41
200
43
\n
At 31 December
1,203
229
1,658
303
\n
Capital losses expiring:
\n
Available inde\ufb01nitely
2,326
548
2,356
557
\n
At 31 December
2,326
548
2,356
557
\nDeferred tax assets are only recognised where it is probable that future taxable pro\ufb01t will be available to utilise losses. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f26903": {
"value": "14. Taxation
The Group\u2019s tax charge is the sum of the total current and deferred tax expense.
\n
Taxation charge based on pro\ufb01ts for the year
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
UK current year charge
200
119
(45)
\n
Rest of World current year charge
1,351
593
745
\n
Charge/(credit) in respect of prior periods
(60)
219
11
\n
Current taxation
1,491
931
711
\n
Deferred taxation
(784)
(848)
(644)
\n
707
83
67
\n
In 2022, GSK made corporate income tax payments globally of \u00a31.5 billion for continuing and discontinued operations, of which
\n
\u00a348 million was UK corporation tax paid to HMRC. These amounts are for corporate income tax only, and do not include the
\n
various other business taxes borne by GSK each year.
\n
The deferred tax credits in each period re\ufb02ect current year losses where offset against taxable pro\ufb01ts in future periods is probable
\n
and the release of deferred tax liabilities. The latter relates primarily to the unwind of deferred tax liabilities on intangible assets.
\n
The deferred tax credit in 2021 also re\ufb02ected the impact of the remeasurement of deferred tax assets and liabilities following
\n
enactment of the increase in the headline rate of UK corporation tax from 19% to 25%.
\n
The following table reconciles the tax charge calculated at the UK statutory rate on the Group pro\ufb01t before tax with the actual
\n
tax charge for the year.
\n
Reconciliation of taxation on Group pro\ufb01ts
\n
2022
\n
\u00a3m
\n
2022
\n
%
\n
2021
\n
(1)
\n
\u00a3m
\n
2021
\n
%
\n
2020
\n
(1)
\n
\u00a3m
\n
2020
\n
%
\n
Pro\ufb01t before tax
5,628
3,599
5,170
\n
UK statutory rate of taxation
1,069
19.0
685
19.0
984
19.0
\n
Differences in overseas taxation rates
318
5.6
302
8.4
363
7.0
\n
Bene\ufb01t of intellectual property incentives
(600)
(10.7)
(382)
(10.6)
(516)
(9.9)
\n
R&D credits
(119)
(2.1)
(100)
(2.8)
(103)
(2.0)
\n
Permanent differences on disposals, acquisitions and transfers
275
4.9
(3)
(0.1)
(316)
(6.1)
\n
Other permanent differences
82
1.5
(4)
(0.1)
90
1.7
\n
Re-assessments of prior year current tax estimates
(60)
(1.1)
219
6.1
11
0.2
\n
Re-assessments of prior year deferred tax estimates
(233)
(4.1)
(281)
(7.8)
(283)
(5.5)
\n
Changes in Tax Rates
(25)
(0.4)
(353)
(9.8)
(163)
(3.1)
\n
Tax charge/tax rate
707
12.6
83
2.3
67
12.9
\n
As a global biopharmaceutical company, we have a substantial business and employment presence in many countries around the
\n
world. The impact of differences in overseas taxation rates arose from pro\ufb01ts being earned in countries with tax rates higher than
\n
the UK statutory rate, the most signi\ufb01cant of which in 2022 were the US, Belgium, Germany and Japan. This adverse impact was
\n
offset by the bene\ufb01t of intellectual property incentives such as the UK Patent Box and Belgian Innovation Income Deduction
\n
regimes, which provide a reduced rate of corporation tax on pro\ufb01ts earned from qualifying patents. We claim these incentives in
\n
the manner intended by the relevant statutory or regulatory framework.
\n
In 2021, \u2018Changes in tax rates\u2019 included credits in relation to the enactment of the increase in the headline rate of UK corporate
\n
income tax from 19% to 25% (effective 2023). In 2020, \u2018Changes in tax rates\u2019 included credits in relation to the UK, where a
\n
reduction in the corporate income tax rate from 19% to 17% was cancelled, and India, where the tax treatment of dividends
\n
changed with effect from 1 April 2020.
\n
Permanent differences on disposals, acquisitions and transfers in 2022 includes tax on internal restructuring to simplify the group
\n
structure. The tax credit in 2020 re\ufb02ected the tax impact of the disposal of Horlicks and other Consumer Healthcare brands to,
\n
and subsequent disposal of shares received in, Hindustan Unilever.
\n
The Group\u2019s 2022 tax rate has also been in\ufb02uenced by updates to estimates of prior period tax liabilities following closure of open
\n
issues with tax authorities in various jurisdictions.
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n
(see Note 41).
\n
\n
\n
\n
\n
\n\n
Future tax charges, and therefore our effective tax rate, may be affected by factors such as acquisitions, disposals, restructurings,
\n
the location of research and development activity, tax regime reforms and resolution of open matters as we continue to bring our
\n
tax affairs up to date around the world.
\n
The UK Government has con\ufb01rmed that the Spring Finance Bill 2023 will include legislation introducing a 15% global minimum
\n
corporate income tax rate, to have effect from 2024 in line with the OECD\u2019s Pillar Two model framework. The detail of the
\n
measures and how they are to be accounted for is still being \ufb01nalised and so it is not possible to accurately quantify the impact for
\n
GSK at this stage.
\n
Tax on items charged to equity and statement of comprehensive income
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Current taxation
\n
Share-based payments
(3)
\u2013
(14)
\n
De\ufb01ned bene\ufb01t plans
\u2013
\u2013
(4)
\n
Fair value movements on cash \ufb02ow hedges
\u2013
5
12
\n
Fair value movements on equity investments
12
36
89
\n
9
41
83
\n
Deferred taxation
\n
Share-based payments
11
(11)
18
\n
De\ufb01ned bene\ufb01t plans
(211)
223
(51)
\n
Fair value movements on cash \ufb02ow hedges
(9)
3
6
\n
Fair value movements on equity investments
(68)
(167)
131
\n
(277)
48
104
\n
Total credit to equity and statement of comprehensive income
(268)
89
187
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n
(see Note 41).
\n
All of the above items have been charged to the statement of comprehensive income except for tax on share-based payments.
\n
Issues relating to taxation
\n
The integrated nature of the Group\u2019s worldwide operations involves signi\ufb01cant investment in research and strategic manufacture
\n
at a limited number of locations, with consequential cross-border supply routes into numerous end-markets. In line with current
\n
OECD guidelines, we base our transfer pricing policy on the arm\u2019s length principle and support our transfer prices with economic
\n
analysis and reports. However, different tax authorities may seek to attribute further pro\ufb01t to activities being undertaken in their
\n
jurisdiction potentially resulting in double taxation. The Group also has open items in several jurisdictions concerning such matters
\n
as the deductibility of particular expenses and the tax treatment of certain business transactions. GSK applies a risk based
\n
approach to determine the transactions most likely to be subject to challenge and the probability that the Group would be able to
\n
obtain compensatory adjustments under international tax treaties.
\n
The calculation of the Group\u2019s total tax charge therefore necessarily involves a degree of estimation and judgement in respect of
\n
certain items whose tax treatment cannot be \ufb01nally determined until resolution has been reached with the relevant tax authority
\n
or, as appropriate, through a formal legal process. At 31 December 2022 the Group had recognised provisions of \u00a3551 million in
\n
respect of such uncertain tax positions (2021: \u00a3858 million). The net decrease in recognised provisions during 2022 was driven by
\n
the reassessment of estimates, the agreement of a number of open issues with tax authorities in various jurisdictions and amounts
\n
related to discontinued operations. Whilst the ultimate liability for such matters may vary from the amounts provided and is
\n
dependent upon the outcome of agreements with the relevant tax authorities, or litigation where appropriate, the Group continues
\n
to consider that it has made appropriate provision for periods which are open and not yet agreed by the tax authorities.
\n
A provision for deferred tax liabilities of \u00a3157 million as at 31 December 2022 (2021: \u00a3204 million) has been made in respect of
\n
taxation that would be payable on the remittance of pro\ufb01ts by certain overseas subsidiaries. Whilst the aggregate amount of
\n
unremitted pro\ufb01ts at the balance sheet date was approximately \u00a316 billion (2021: \u00a315 billion), the majority of these unremitted
\n
pro\ufb01ts would not be subject to tax (including withholding tax) on repatriation, as UK legislation relating to company distributions
\n
provides for exemption from tax for most overseas pro\ufb01ts, subject to certain exceptions. Deferred tax is not provided on temporary
\n
differences of \u00a3660 million (2021: \u00a3831 million) arising on unremitted pro\ufb01ts as management has the ability to control any future
\n
reversal and does not consider such a reversal to be probable.
\n
\n
\n
\n\n
Movement in deferred tax assets and liabilities
\n
Accelerated
\n
capital
\n
allowances
\n
\u00a3m
\n
Intangible
\n
assets
\n
\u00a3m
\n
Contingent
\n
consideration
\n
\u00a3m
\n
Intra-Group
\n
pro\ufb01t
\n
\u00a3m
\n
Pensions &
\n
other post
\n
employment
\n
bene\ufb01ts
\n
\u00a3m
\n
Tax
\n
losses
\n
\u00a3m
\n
Share
\n
option
\n
and award
\n
schemes
\n
\u00a3m
\n
Other
\n
net
\n
temporary
\n
differences
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At 1 January 2021
(296)
(3,982)
843
1,024
874
1,060
60
1,104
687
\n
Exchange adjustments
17
(41)
\u2013
6
(17)
(1)
\u2013
\u2013
(36)
\n
Credit/(charge) to income statement
65
312
7
(31)
6
391
20
232
1,002
\n
Credit/(charge) to statement of
\n
comprehensive income
\u2013
\u2013
\u2013
\u2013
(223)
\u2013
11
164
(48)
\n
Acquisitions/Disposals
3
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
(4)
(1)
\n
R&D credits utilisation
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
58
58
\n
At 31 December 2021
(211)
(3,711)
850
999
640
1,450
91
1,554
1,662
\n
Exchange adjustments
(29)
(264)
\u2013
(40)
64
6
1
160
(102)
\n
Credit/(charge) to income statement
122
126
142
258
(32)
104
(22)
190
888
\n
Credit/(charge) to statement of
\n
comprehensive income
\u2013
\u2013
\u2013
\u2013
182
42
(11)
(12)
201
\n
Acquisitions/Disposals
(1)
(637)
\u2013
\u2013
\u2013
67
\u2013
76
(495)
\n
R&D credits utilisation
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
(76)
(76)
\n
Transfer of assets held for sale/
\n
distribution
62
3,667
\u2013
(118)
(60)
(8)
(2)
(250)
3,291
\n
At 31 December 2022
(57)
(819)
992
1,099
794
1,661
57
1,642
5,369
\n
Deferred tax liabilities in relation to intangible assets predominately relate to temporary differences arising as a result of historic business
\n
combinations.
\n
The Group continues to recognise deferred tax assets on future obligations in respect of contingent consideration amounts payable to
\n
minority shareholders. These payments are tax deductible at the point in time at which payment is made.
\n
A deferred tax asset is recognised on intra-Group pro\ufb01ts arising on inter-company inventory which are eliminated within the consolidated
\n
accounts. As intra-Group pro\ufb01ts are not eliminated from the individual entities\u2019 tax returns a temporary difference arises that will reverse
\n
at the point in time inventory is sold externally.
\n
The deferred tax asset recognised on tax losses of \u00a31,661 million (2021: \u00a31,450 million) relates to trading losses. Such deferred tax assets
\n
are recognised where it is probable that future taxable pro\ufb01t will be available to utilise losses, as supported by long-range product level
\n
forecasts. Current forecasts indicate the assets will be utilised by around 2030. Other net temporary differences included accrued
\n
expenses for which a tax deduction is only available on a paid basis.
\n
Deferred tax assets and liabilities are recognised on the balance sheet as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Deferred tax assets
5,658
5,218
\n
Deferred tax liabilities
(289)
(3,556)
\n
5,369
1,662
\n
2022
2021
\n
Unrecognised tax losses
\n
Tax losses
\n
\u00a3m
\n
Unrecognised
\n
deferred tax
\n
asset
\n
\u00a3m
\n
Tax losses
\n
\u00a3m
\n
Unrecognised
\n
deferred tax
\n
asset
\n
\u00a3m
\n
Trading losses expiring:
\n
Within 10 years
967
175
1,068
198
\n
More than 10 years
44
13
390
62
\n
Available inde\ufb01nitely
192
41
200
43
\n
At 31 December
1,203
229
1,658
303
\n
Capital losses expiring:
\n
Available inde\ufb01nitely
2,326
548
2,356
557
\n
At 31 December
2,326
548
2,356
557
\nDeferred tax assets are only recognised where it is probable that future taxable pro\ufb01t will be available to utilise losses. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f27482": {
"value": "15. Earnings per share
2022
\n
pence
\n
2021
\n
(1)
\n
pence
\n
2020
\n
(1)
\n
pence
\n
Basic earnings per share from continuing operations
110.8
82.9
122.4
\n
Basic earnings per share from discontinued operations
260.6
26.7
22.0
\n
Total basic earnings per share
371.4
109.6
144.4
\n
Diluted earnings per share from continuing operations
109.2
81.8
120.9
\n
Diluted earnings per share from discontinued operations
257.0
26.4
21.7
\n
Total diluted earnings per share
366.2
108.2
142.6
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n
(see Note 41) and/or the impact of Share Consolidation (see Note 37).
\n
Basic earnings per share has been calculated by dividing the pro\ufb01t attributable to shareholders by the weighted average number
\n
of shares in issue during the period after deducting shares held by the ESOP Trusts and Treasury shares. The trustees have waived
\n
their rights to cash dividends on the GSK shares held by the ESOP Trusts.
\n
Diluted earnings per share has been calculated after adjusting the weighted average number of shares used in the basic
\n
calculation to assume the conversion of all potentially dilutive shares. A potentially dilutive share forms part of the employee share
\n
schemes where its exercise price is below the average market price of GSK shares during the period and any performance
\n
conditions attaching to the scheme have been met at the balance sheet date.
\n
The numbers of shares used in calculating basic and diluted earnings per share are reconciled\u202fbelow.
\n
Weighted average number of shares in issue
\n
2022
\n
millions
\n
2021
\n
(2)
\n
millions
\n
2020
\n
(2)
\n
millions
\n
Basic
4,026
4,003
3,981
\n
Dilution for share options and awards
58
49
49
\n
Diluted
4,084
4,052
4,030
\n
(2)
Restated to re\ufb02ect the impact share consolidation (see Note 37).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f27552": {
"value": "16. Dividends
2022
2021
2020
\n
Paid/payable
\n
Dividend
\n
per share
\n
(pence)
\n
(3)
\n
Total
\n
dividend
\n
\u00a3m
Paid
\n
Dividend
\n
per share
\n
(pence)
\n
(3)
\n
Total
\n
dividend
\n
\u00a3m
Paid
\n
Dividend
\n
per share
\n
(pence)
\n
(3)
\n
Total
\n
dividend
\n
\u00a3m
\n
First interim
1 July 2022
17.50
704
8 July 2021
23.75
951
9 July 2020
23.75
946
\n
Second interim
6 October 2022
16.25
654
7 October 2021
23.75
951
8 October 2020
23.75
946
\n
Third interim
12 January 2023
13.75
555
13 January 2022
23.75
952
14 January 2021
23.75
946
\n
Fourth interim
13 April 2023
13.75
555
7 April 2022
28.75
1,157*
8 April 2021
28.75
1,151
\n
Total
61.25
2,468
100
4,011
100
3,989
\n
*
The estimate for the fourth interim dividend for 2021 disclosed in the 2021 annual report was \u00a31,152 million, \u00a35 million less than the dividend that was ultimately paid.
\n
(3)
Dividends per share were retrospectively adjusted to re\ufb02ect the Share Consolidation in all the periods presented. See details in Note 37.
\n
Under IFRS, interim dividends are only recognised in the \ufb01nancial statements when paid and not when declared. GSK normally
\n
pays a dividend two quarters after the quarter to which it relates and one quarter after it is declared. The 2022 \ufb01nancial
\n
statements recognise those dividends paid in 2022, namely the third and fourth interim dividends for 2021, and the \ufb01rst and
\n
second interim dividends for 2022.
\n
The demerger of the Consumer Healthcare business was effected by GSK declaring an interim dividend in specie of Haleon plc
\n
shares. The fair value of the distribution was \u00a315,526 million.
\n
The amounts recognised in each year were as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Cash dividends to shareholders
3,467
3,999
3,977
\n
Dividends in specie to shareholders in Haleon plc shares (Note 41)
15,526
\u2013
\u2013
\n
18,993
3,999
3,977",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f27675": {
"value": "17. Property, plant and equipment
Land and
\n
buildings
\n
\u00a3m
\n
Plant,
\n
equipment
\n
and vehicles
\n
\u00a3m
\n
Assets in
\n
construction
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Cost at 1 January 2021
7,488
12,105
1,890
21,483
\n
Exchange adjustments
(214)
(315)
(47)
(576)
\n
Other additions
16
98
1,091
1,205
\n
Capitalised borrowing costs
\u2013
\u2013
16
16
\n
Disposals and write-offs
(217)
(940)
(17)
(1,174)
\n
Reclassi\ufb01cations
202
906
(1,182)
(74)
\n
Transfer to assets held for sale/distribution
(63)
(38)
(1)
(102)
\n
Cost at 31 December 2021
7,212
11,816
1,750
20,778
\n
Exchange adjustments
403
542
105
1,050
\n
Additions through business combinations
5
8
17
30
\n
Other additions
13
79
1,153
1,245
\n
Capitalised borrowing costs
\u2013
\u2013
21
21
\n
Disposals and write-offs
(64)
(222)
(5)
(291)
\n
Reclassi\ufb01cations
146
689
(874)
(39)
\n
Transfer to assets held for sale/distribution
(1,067)
(1,959)
(317)
(3,343)
\n
Cost at 31 December 2022
6,648
10,953
1,850
19,451
\n
Depreciation at 1 January 2021
(3,310)
(7,140)
\u2013
(10,450)
\n
Exchange adjustments
100
191
\u2013
291
\n
Charge for the year
(267)
(715)
\u2013
(982)
\n
Disposals and write-offs
169
893
\u2013
1,062
\n
Transfer to assets held for sale/distribution
27
27
\u2013
54
\n
Depreciation at 31 December 2021
(3,281)
(6,744)
\u2013
(10,025)
\n
Exchange adjustments
(191)
(310)
\u2013
(501)
\n
Charge for the year
(226)
(726)
\u2013
(952)
\n
Disposals and write-offs
47
181
\u2013
228
\n
Transfer to assets held for sale/distribution
376
1,130
\u2013
1,506
\n
Depreciation at 31 December 2022
(3,275)
(6,469)
\u2013
(9,744)
\n
Impairment at 1 January 2021
(280)
(551)
(26)
(857)
\n
Exchange adjustments
7
10
3
20
\n
Disposals and write-offs
30
76
13
119
\n
Impairment losses
(21)
(54)
(37)
(112)
\n
Reversal of impairments
\u2013
5
4
9
\n
Impairment at 31 December 2021
(264)
(514)
(43)
(821)
\n
Exchange adjustments
(9)
(14)
(1)
(24)
\n
Disposals and write-offs
9
47
5
61
\n
Impairment losses
(33)
(45)
(5)
(83)
\n
Reversal of impairments
\u2013
9
\u2013
9
\n
Transfer to assets held for sale/distribution
37
45
2
84
\n
Impairment at 31 December 2022
(260)
(472)
(42)
(774)
\n
Total depreciation and impairment at 31 December 2021
(3,545)
(7,258)
(43)
(10,846)
\n
Total depreciation and impairment at 31 December 2022
(3,535)
(6,941)
(42)
(10,518)
\n
Net book value at 1 January 2021
3,898
4,414
1,864
10,176
\n
Net book value at 31 December 2021
3,667
4,558
1,707
9,932
\n
Net book value at 31 December 2022
3,113
4,012
1,808
8,933
\n
\n
\n
\n
\n
\n\n
The weighted average interest rate for capitalised borrowing costs in the year was 4% (2021: 3%). Disposals and write-offs in
\n
the year included a number of assets with nil net book value that are no longer in use in the business.
\n
The impairment losses principally arose from decisions to rationalise facilities and were calculated based on fair value less costs
\n
of disposal. The fair value less costs of disposal valuation methodology uses signi\ufb01cant inputs which are not based on observable
\n
market data, and therefore this valuation technique is classi\ufb01ed as level 3 of the fair value hierarchy. These calculations determine
\n
the net present value of the projected risk-adjusted, post-tax cash \ufb02ows of the relevant asset or cash generating unit, applying a
\n
discount rate of the Group post-tax weighted average cost of capital (WACC) of 7%, adjusted where appropriate for speci\ufb01c
\n
segment, country and currency risk.
\n
Assets that continue to be used by the Group are generally assessed as part of their associated cash generating unit on a value
\n
in use basis. For value in use calculations, the post-tax cash \ufb02ows do not include the impact of future uncommitted restructuring
\n
plans or improvements. Where an impairment is indicated and a pre-tax cash \ufb02ow calculation is expected to give a materially
\n
different result, the test would be reperformed using pre-tax cash \ufb02ows and a pre-tax discount rate. The Group WACC is
\n
equivalent to a pre-tax discount rate of approximately 9%.
\n
The net impairment losses have been charged to cost of sales: \u00a311 million (2021: \u00a346 million), R&D: \u00a37 million (2021: \u00a33 million) and
\n
SG&A: \u00a355 million (2021: \u00a354 million), and included \u00a334 million (2021: \u00a320 million) arising from the Major restructuring
\n
programmes.
\n
Reversals of impairment arose from subsequent reviews of the impaired assets where the conditions which gave rise to the original
\n
impairments were deemed no longer to apply. All of the reversals have been credited to cost of sales.
\n
During 2022, \u00a339 million (2021: \u00a374 million) of computer software was reclassi\ufb01ed from assets in construction to intangible assets
\n
on becoming ready for use.
\n
GSK has assessed the qualitative and quantitative impact of climate related risks on asset recoverable amounts and concluded
\nthat there are no material impairments.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f27945": {
"value": "The impairment losses principally arose from decisions to rationalise facilities and were calculated based on fair value less costs
of disposal. The fair value less costs of disposal valuation methodology uses signi\ufb01cant inputs which are not based on observable
\n
market data, and therefore this valuation technique is classi\ufb01ed as level 3 of the fair value hierarchy. These calculations determine
\n
the net present value of the projected risk-adjusted, post-tax cash \ufb02ows of the relevant asset or cash generating unit, applying a
\n
discount rate of the Group post-tax weighted average cost of capital (WACC) of 7%, adjusted where appropriate for speci\ufb01c
\n
segment, country and currency risk.
\n
Assets that continue to be used by the Group are generally assessed as part of their associated cash generating unit on a value
\n
in use basis. For value in use calculations, the post-tax cash \ufb02ows do not include the impact of future uncommitted restructuring
\n
plans or improvements. Where an impairment is indicated and a pre-tax cash \ufb02ow calculation is expected to give a materially
\n
different result, the test would be reperformed using pre-tax cash \ufb02ows and a pre-tax discount rate. The Group WACC is
\n
equivalent to a pre-tax discount rate of approximately 9%.
\n
The net impairment losses have been charged to cost of sales: \u00a311 million (2021: \u00a346 million), R&D: \u00a37 million (2021: \u00a33 million) and
\n
SG&A: \u00a355 million (2021: \u00a354 million), and included \u00a334 million (2021: \u00a320 million) arising from the Major restructuring
\n
programmes.
\n
Reversals of impairment arose from subsequent reviews of the impaired assets where the conditions which gave rise to the original
\n
impairments were deemed no longer to apply. All of the reversals have been credited to cost of sales.
\n
During 2022, \u00a339 million (2021: \u00a374 million) of computer software was reclassi\ufb01ed from assets in construction to intangible assets
\n
on becoming ready for use.
\n
GSK has assessed the qualitative and quantitative impact of climate related risks on asset recoverable amounts and concluded
that there are no material impairments.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f27969": {
"value": "18. Right of use assets
Land and
\n
buildings
\n
\u00a3m
\n
Plant and
\n
equipment
\n
\u00a3m
\n
Vehicles
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Net book value at 1 January 2021
699
18
113
830
\n
Exchange adjustments
(9)
(1)
(5)
(15)
\n
Additions
152
1
62
215
\n
Depreciation
(149)
(5)
(59)
(213)
\n
Disposals
(53)
(4)
(13)
(70)
\n
Impairments
(7)
\u2013
\u2013
(7)
\n
Net book value at 31 December 2021
633
9
98
740
\n
Exchange adjustments
47
\u2013
8
55
\n
Additions through business combinations
53
\u2013
\u2013
53
\n
Other additions
140
2
91
233
\n
Depreciation
(131)
(3)
(58)
(192)
\n
Transfer to assets held for sale/distribution
(115)
(1)
(11)
(127)
\n
Disposals
(27)
(1)
(8)
(36)
\n
Impairments
(39)
\u2013
\u2013
(39)
\n
Net book value at 31 December 2022
561
6
120
687
\n
The Group has entered into some commitments for lease contracts that have not yet commenced. See Note 36.
\nAn analysis of lease liabilities is set out in Note 30, \u2018Net debt\u2019.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfQuantitativeInformationAboutRightofuseAssetsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28077": {
"value": "19. Goodwill
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Cost at 1 January
10,552
10,597
\n
Exchange adjustments
550
(55)
\n
Additions through business combinations (Note 41)
1,127
\u2013
\n
Other movements
\u2013
10
\n
Transfer to assets held for sale/distribution
(5,183)
\u2013
\n
Cost at 31 December
7,046
10,552
\n
Net book value at 1 January
10,552
10,597
\n
Net book value at 31 December
7,046
10,552
\n
All Goodwill is allocated to the Group\u2019s segments as follows:
\n
2022
\n
\u00a3m
\n
Commercial operations
6,148
\n
Total R&D
898
\n
Net book value at 31 December
7,046
\n
In 2021, prior to changes in the Group\u2019s segment reporting (Note 6) Goodwill was allocated as follows:
\n
2021
\n
\u00a3m
\n
Pharmaceuticals
4,228
\n
Vaccines
1,264
\n
Consumer Healthcare
5,060
\n
Net book value at 31 December
10,552
\n
Goodwill of \u00a35,183 million allocated to Consumer Healthcare was transferred to \u2018assets held for sale/distribution\u2019 prior to the
\n
Consumer Healthcare demerger (Note 41).
\n
The recoverable amounts of the cash generating units are assessed using a fair value less costs of disposal model. Fair value less
\n
costs of disposal is calculated using a discounted cash \ufb02ow approach, with a post-tax discount rate applied to the projected
\n
risk-adjusted post-tax cash \ufb02ows and terminal value.
\n
The discount rate used is based on the Group WACC of 7% (2021: 6.5%), as most cash generating units have integrated
\n
operations across large parts of the Group. The discount rate is adjusted where appropriate for speci\ufb01c segment, country and
\n
currency risks. The valuation methodology uses signi\ufb01cant inputs which are not based on observable market data, therefore this
\n
valuation technique is classi\ufb01ed as level 3 in the fair value hierarchy.
\n
The R&D segment is evaluated on an arms length pricing model, see assumptions below.
\n
Details relating to the discounted cash \ufb02ow models used in the impairment tests are as follows:
\n
Valuation basis
Fair value less costs of disposal
\n
Key assumptions
Sales growth rates
\n
Profit margins
\n
Terminal growth rate
\n
Discount rate
\n
Taxation rate
\n
Determination of assumptions
Growth rates are internal forecasts based on both internal and external market information.
\n
Margins reflect past experience, adjusted for expected changes.
\n
Terminal growth rates based on management\u2019s estimate of future long-term average growth rates.
\n
Discount rates based on Group WACC, adjusted where appropriate.
\n
Taxation rates based on appropriate rates for each jurisdiction.
\n
Period of specific projected cash flows
Five years
\n
Terminal growth rate and discount rate
Terminal growth rate
Discount rate
\n
2022
\n
Commercial operations
0% p.a.
7% p.a
\n
R&D
0% p.a.
7% p.a
\n
2021
\n
Pharmaceuticals
0% p.a.
7% p.a
\n
Vaccines
0% p.a.
7% p.a
\n
Consumer Healthcare
2.5% p.a.
6% p.a
\n
The terminal growth rate does not exceed the long-term projected growth rates for relevant markets, re\ufb02ects the impact of future
\n
generic competition and take account of new product launches. Goodwill is monitored for impairment at the segmental level and
\n
the valuations indicated suf\ufb01cient headroom such that a reasonably possible change to key assumptions is unlikely to
result in an
\n
impairment of the related goodwill.
\n
GSK has assessed the qualitative and quantitative impact of climate related risks on asset recoverable amounts and concluded
\n
that there are no material impairments.
\n
\n
\n
\n
\n
20. Other intangible assets
\n
Computer
\n
software
\n
\u00a3m
\n
Licences,
\n
patents,
\n
amortised
\n
brands etc.
\n
\u00a3m
\n
Inde\ufb01nite life
\n
brands
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Cost at 1 January 2021
2,403
20,822
18,613
41,838
\n
Exchange adjustments
(15)
(207)
65
(157)
\n
Capitalised development costs
\u2013
346
\u2013
346
\n
Other additions
184
1,410
\u2013
1,594
\n
Disposals and asset write-offs
(221)
(935)
\u2013
(1,156)
\n
Transfer to assets held for sale/distribution
(1)
(6)
(43)
(50)
\n
Reclassi\ufb01cations
74
9
(9)
74
\n
Cost at 31 December 2021
2,424
21,439
18,626
42,489
\n
Exchange adjustments
63
934
1,112
2,109
\n
Capitalised development costs
\u2013
317
\u2013
317
\n
Additions through business combinations
\u2013
2,964
\u2013
2,964
\n
Other additions
149
626
\u2013
775
\n
Disposals and asset write-offs
(203)
(33)
\u2013
(236)
\n
Transfer to assets held for sale/distribution
(513)
(496)
(19,772)
(20,781)
\n
Reclassi\ufb01cations
39
(34)
34
39
\n
Cost at 31 December 2022
1,959
25,717
\u2013
27,676
\n
Amortisation at 1 January 2021
(1,322)
(7,932)
\u2013
(9,254)
\n
Exchange adjustments
13
52
\u2013
65
\n
Charge for the year
(225)
(956)
\u2013
(1,181)
\n
Disposals and asset write-offs
165
572
\u2013
737
\n
Transfer to assets held for sale
\u2013
2
\u2013
2
\n
Amortisation at 31 December 2021
(1,369)
(8,262)
\u2013
(9,631)
\n
Exchange adjustments
(33)
(307)
\u2013
(340)
\n
Charge for the year
(204)
(931)
\u2013
(1,135)
\n
Disposals and asset write-offs
129
19
\u2013
148
\n
Transfer to assets held for sale/distribution
254
300
\u2013
554
\n
Amortisation at 31 December 2022
(1,223)
(9,181)
\u2013
(10,404)
\n
Impairment at 1 January 2021
(28)
(2,487)
(245)
(2,760)
\n
Exchange adjustments
\u2013
5
\u2013
5
\n
Impairment losses
(93)
(362)
\u2013
(455)
\n
Reversal of impairments
\u2013
2
37
39
\n
Disposals and asset write-offs
30
362
\u2013
392
\n
Impairment at 31 December 2021
(91)
(2,480)
(208)
(2,779)
\n
Exchange adjustments
(2)
(138)
(1)
(141)
\n
Impairment losses
(72)
(313)
(17)
(402)
\n
Transfer to assets held for sale/distribution
10
34
226
270
\n
Reversal of impairments
1
17
\u2013
18
\n
Disposals and asset write-offs
73
7
\u2013
80
\n
Impairment at 31 December 2022
(81)
(2,873)
\u2013
(2,954)
\n
Total amortisation and impairment at 31 December 2021
(1,460)
(10,742)
(208)
(12,410)
\n
Total amortisation and impairment at 31 December 2022
(1,304)
(12,054)
\u2013
(13,358)
\n
Net book value at 1 January 2021
1,053
10,403
18,368
29,824
\n
Net book value at 31 December 2021
964
10,697
18,418
30,079
\n
Net book value at 31 December 2022
655
13,663
\u2013
14,318
\n
The weighted average interest rate for capitalised borrowing costs in the year was 4% (2021: 3%).
\n
The net book value of computer software included \u00a3479 million (2021: \u00a3526 million) of internally generated costs.
\n
The carrying value at 31 December 2022 of intangible assets, for which impairments have been charged in the year following
\n
those impairments, was \u00a383 million (2021: \u00a3694 million). The carrying value at 31 December 2022 of intangible assets, for which
\n
impairment reversals have been charged in the year following those impairment reversals, was \u00a3776 million (2021: \u00a3104 million).
\n
No individual intangible asset accounted for a material impairment.
\n
The patent expiry dates of the Group\u2019s most signi\ufb01cant assets, where relevant, are set out on pages 282 to 284. Please refer to Note
\n
2 to the Group\u2019s accounting policy and estimate of the useful life for intangible assets over the exclusivity and non-exclusivity
\n
periods.
\n
\n
\n
\n\n
Amortisation and impairment losses, net of reversals, have been charged in the income statement as follows:
\n
Amortisation
Net impairment losses
\n
2022
\n
\u00a3m
\n
2021
\n
(a)
\n
\u00a3m
\n
2022
\n
\u00a3m
\n
2021
\n
(a)
\n
\u00a3m
\n
Cost of sales
663
750
2
\u2013
\n
Selling, general and administration
116
126
66
65
\n
Research and development
307
212
299
373
\n
1,086
1,088
367
438
\n
(a)
The 2021 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business (see Note 41).
\n
Licences, patents, amortised brands etc. includes a large number of acquired licences, patents, know-how agreements and
\n
marketing rights, which are either marketed or in use, or still in development. Note 41, \u2018Acquisitions and disposals\u2019 gives details
\n
of additions through business combinations in the year. The book values of the largest individual items are as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Tesaro Assets
2,858
2,677
\n
Meningitis portfolio
1,855
1,889
\n
Momelotinib
1,499
\u2013
\n
Af\ufb01nivax Assets
1,473
\u2013
\n
Dolutegravir
1,150
1,093
\n
Benlysta
541
644
\n
Alector Assets
509
509
\n
iTeos Assets
443
444
\n
Shingrix
288
268
\n
Okairos
202
191
\n
BMS Assets
196
219
\n
Spero
163
\u2013
\n
Vir Assets
159
212
\n
Fluarix/FluLaval
147
180
\n
Stiefel trade name
142
151
\n
CureVac Assets
106
164
\n
Lamisil
\n
(a)
\n
\u2013
259
\n
Others
1,932
1,797
\n
13,663
10,697
\n
(a)
Disposed of as part of the Consumer Healthcare demerger (Note 41).
\n
On 1 July 2022, GSK completed the acquisition of Sierra Oncology Inc, The main asset is momelotinib.
\n
On 15 August 2022, GSK completed the acquisition of Af\ufb01nivax, Inc.
\n
Inde\ufb01nite life brands related to healthcare brands used within the Consumer Healthcare business. Inde\ufb01nite life brands were
\n
disposed of as part of the Consumer Healthcare demerger (Note 41).
\n
The Group do not consider that any reasonably possible changes in the key assumptions would cause the recoverable amount of
\n
the Intangible assets disclosed above to fall below their carrying values.
\n
GSK has assessed the qualitative and quantitative impact of climate related risks on asset recoverable amounts and concluded
\nthat there are no material impairments.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28078": {
"value": "19. Goodwill
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Cost at 1 January
10,552
10,597
\n
Exchange adjustments
550
(55)
\n
Additions through business combinations (Note 41)
1,127
\u2013
\n
Other movements
\u2013
10
\n
Transfer to assets held for sale/distribution
(5,183)
\u2013
\n
Cost at 31 December
7,046
10,552
\n
Net book value at 1 January
10,552
10,597
\n
Net book value at 31 December
7,046
10,552
\n
All Goodwill is allocated to the Group\u2019s segments as follows:
\n
2022
\n
\u00a3m
\n
Commercial operations
6,148
\n
Total R&D
898
\n
Net book value at 31 December
7,046
\n
In 2021, prior to changes in the Group\u2019s segment reporting (Note 6) Goodwill was allocated as follows:
\n
2021
\n
\u00a3m
\n
Pharmaceuticals
4,228
\n
Vaccines
1,264
\n
Consumer Healthcare
5,060
\n
Net book value at 31 December
10,552
\n
Goodwill of \u00a35,183 million allocated to Consumer Healthcare was transferred to \u2018assets held for sale/distribution\u2019 prior to the
\n
Consumer Healthcare demerger (Note 41).
\n
The recoverable amounts of the cash generating units are assessed using a fair value less costs of disposal model. Fair value less
\n
costs of disposal is calculated using a discounted cash \ufb02ow approach, with a post-tax discount rate applied to the projected
\n
risk-adjusted post-tax cash \ufb02ows and terminal value.
\n
The discount rate used is based on the Group WACC of 7% (2021: 6.5%), as most cash generating units have integrated
\n
operations across large parts of the Group. The discount rate is adjusted where appropriate for speci\ufb01c segment, country and
\n
currency risks. The valuation methodology uses signi\ufb01cant inputs which are not based on observable market data, therefore this
\n
valuation technique is classi\ufb01ed as level 3 in the fair value hierarchy.
\n
The R&D segment is evaluated on an arms length pricing model, see assumptions below.
\n
Details relating to the discounted cash \ufb02ow models used in the impairment tests are as follows:
\n
Valuation basis
Fair value less costs of disposal
\n
Key assumptions
Sales growth rates
\n
Profit margins
\n
Terminal growth rate
\n
Discount rate
\n
Taxation rate
\n
Determination of assumptions
Growth rates are internal forecasts based on both internal and external market information.
\n
Margins reflect past experience, adjusted for expected changes.
\n
Terminal growth rates based on management\u2019s estimate of future long-term average growth rates.
\n
Discount rates based on Group WACC, adjusted where appropriate.
\n
Taxation rates based on appropriate rates for each jurisdiction.
\n
Period of specific projected cash flows
Five years
\n
Terminal growth rate and discount rate
Terminal growth rate
Discount rate
\n
2022
\n
Commercial operations
0% p.a.
7% p.a
\n
R&D
0% p.a.
7% p.a
\n
2021
\n
Pharmaceuticals
0% p.a.
7% p.a
\n
Vaccines
0% p.a.
7% p.a
\n
Consumer Healthcare
2.5% p.a.
6% p.a
\n
The terminal growth rate does not exceed the long-term projected growth rates for relevant markets, re\ufb02ects the impact of future
\n
generic competition and take account of new product launches. Goodwill is monitored for impairment at the segmental level and
\n
the valuations indicated suf\ufb01cient headroom such that a reasonably possible change to key assumptions is unlikely to
result in an
\n
impairment of the related goodwill.
\n
GSK has assessed the qualitative and quantitative impact of climate related risks on asset recoverable amounts and concluded
\nthat there are no material impairments.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28212": {
"value": "20. Other intangible assets
Computer
\n
software
\n
\u00a3m
\n
Licences,
\n
patents,
\n
amortised
\n
brands etc.
\n
\u00a3m
\n
Inde\ufb01nite life
\n
brands
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Cost at 1 January 2021
2,403
20,822
18,613
41,838
\n
Exchange adjustments
(15)
(207)
65
(157)
\n
Capitalised development costs
\u2013
346
\u2013
346
\n
Other additions
184
1,410
\u2013
1,594
\n
Disposals and asset write-offs
(221)
(935)
\u2013
(1,156)
\n
Transfer to assets held for sale/distribution
(1)
(6)
(43)
(50)
\n
Reclassi\ufb01cations
74
9
(9)
74
\n
Cost at 31 December 2021
2,424
21,439
18,626
42,489
\n
Exchange adjustments
63
934
1,112
2,109
\n
Capitalised development costs
\u2013
317
\u2013
317
\n
Additions through business combinations
\u2013
2,964
\u2013
2,964
\n
Other additions
149
626
\u2013
775
\n
Disposals and asset write-offs
(203)
(33)
\u2013
(236)
\n
Transfer to assets held for sale/distribution
(513)
(496)
(19,772)
(20,781)
\n
Reclassi\ufb01cations
39
(34)
34
39
\n
Cost at 31 December 2022
1,959
25,717
\u2013
27,676
\n
Amortisation at 1 January 2021
(1,322)
(7,932)
\u2013
(9,254)
\n
Exchange adjustments
13
52
\u2013
65
\n
Charge for the year
(225)
(956)
\u2013
(1,181)
\n
Disposals and asset write-offs
165
572
\u2013
737
\n
Transfer to assets held for sale
\u2013
2
\u2013
2
\n
Amortisation at 31 December 2021
(1,369)
(8,262)
\u2013
(9,631)
\n
Exchange adjustments
(33)
(307)
\u2013
(340)
\n
Charge for the year
(204)
(931)
\u2013
(1,135)
\n
Disposals and asset write-offs
129
19
\u2013
148
\n
Transfer to assets held for sale/distribution
254
300
\u2013
554
\n
Amortisation at 31 December 2022
(1,223)
(9,181)
\u2013
(10,404)
\n
Impairment at 1 January 2021
(28)
(2,487)
(245)
(2,760)
\n
Exchange adjustments
\u2013
5
\u2013
5
\n
Impairment losses
(93)
(362)
\u2013
(455)
\n
Reversal of impairments
\u2013
2
37
39
\n
Disposals and asset write-offs
30
362
\u2013
392
\n
Impairment at 31 December 2021
(91)
(2,480)
(208)
(2,779)
\n
Exchange adjustments
(2)
(138)
(1)
(141)
\n
Impairment losses
(72)
(313)
(17)
(402)
\n
Transfer to assets held for sale/distribution
10
34
226
270
\n
Reversal of impairments
1
17
\u2013
18
\n
Disposals and asset write-offs
73
7
\u2013
80
\n
Impairment at 31 December 2022
(81)
(2,873)
\u2013
(2,954)
\n
Total amortisation and impairment at 31 December 2021
(1,460)
(10,742)
(208)
(12,410)
\n
Total amortisation and impairment at 31 December 2022
(1,304)
(12,054)
\u2013
(13,358)
\n
Net book value at 1 January 2021
1,053
10,403
18,368
29,824
\n
Net book value at 31 December 2021
964
10,697
18,418
30,079
\n
Net book value at 31 December 2022
655
13,663
\u2013
14,318
\n
The weighted average interest rate for capitalised borrowing costs in the year was 4% (2021: 3%).
\n
The net book value of computer software included \u00a3479 million (2021: \u00a3526 million) of internally generated costs.
\n
The carrying value at 31 December 2022 of intangible assets, for which impairments have been charged in the year following
\n
those impairments, was \u00a383 million (2021: \u00a3694 million). The carrying value at 31 December 2022 of intangible assets, for which
\n
impairment reversals have been charged in the year following those impairment reversals, was \u00a3776 million (2021: \u00a3104 million).
\n
No individual intangible asset accounted for a material impairment.
\n
The patent expiry dates of the Group\u2019s most signi\ufb01cant assets, where relevant, are set out on pages 282 to 284. Please refer to Note
\n
2 to the Group\u2019s accounting policy and estimate of the useful life for intangible assets over the exclusivity and non-exclusivity
\n
periods.
\n
\n
\n
\n\n
Amortisation and impairment losses, net of reversals, have been charged in the income statement as follows:
\n
Amortisation
Net impairment losses
\n
2022
\n
\u00a3m
\n
2021
\n
(a)
\n
\u00a3m
\n
2022
\n
\u00a3m
\n
2021
\n
(a)
\n
\u00a3m
\n
Cost of sales
663
750
2
\u2013
\n
Selling, general and administration
116
126
66
65
\n
Research and development
307
212
299
373
\n
1,086
1,088
367
438
\n
(a)
The 2021 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business (see Note 41).
\n
Licences, patents, amortised brands etc. includes a large number of acquired licences, patents, know-how agreements and
\n
marketing rights, which are either marketed or in use, or still in development. Note 41, \u2018Acquisitions and disposals\u2019 gives details
\n
of additions through business combinations in the year. The book values of the largest individual items are as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Tesaro Assets
2,858
2,677
\n
Meningitis portfolio
1,855
1,889
\n
Momelotinib
1,499
\u2013
\n
Af\ufb01nivax Assets
1,473
\u2013
\n
Dolutegravir
1,150
1,093
\n
Benlysta
541
644
\n
Alector Assets
509
509
\n
iTeos Assets
443
444
\n
Shingrix
288
268
\n
Okairos
202
191
\n
BMS Assets
196
219
\n
Spero
163
\u2013
\n
Vir Assets
159
212
\n
Fluarix/FluLaval
147
180
\n
Stiefel trade name
142
151
\n
CureVac Assets
106
164
\n
Lamisil
\n
(a)
\n
\u2013
259
\n
Others
1,932
1,797
\n
13,663
10,697
\n
(a)
Disposed of as part of the Consumer Healthcare demerger (Note 41).
\n
On 1 July 2022, GSK completed the acquisition of Sierra Oncology Inc, The main asset is momelotinib.
\n
On 15 August 2022, GSK completed the acquisition of Af\ufb01nivax, Inc.
\n
Inde\ufb01nite life brands related to healthcare brands used within the Consumer Healthcare business. Inde\ufb01nite life brands were
\n
disposed of as part of the Consumer Healthcare demerger (Note 41).
\n
The Group do not consider that any reasonably possible changes in the key assumptions would cause the recoverable amount of
\n
the Intangible assets disclosed above to fall below their carrying values.
\n
GSK has assessed the qualitative and quantitative impact of climate related risks on asset recoverable amounts and concluded
\nthat there are no material impairments.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28485": {
"value": "Amortisation and impairment losses, net of reversals, have been charged in the income statement as follows:
Amortisation
Net impairment losses
\n
2022
\n
\u00a3m
\n
2021
\n
(a)
\n
\u00a3m
\n
2022
\n
\u00a3m
\n
2021
\n
(a)
\n
\u00a3m
\n
Cost of sales
663
750
2
\u2013
\n
Selling, general and administration
116
126
66
65
\n
Research and development
307
212
299
373
\n
1,086
1,088
367
438
\n
(a)
The 2021 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business (see Note 41). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28624": {
"value": "21. Investments in associates and joint ventures
Joint
\n
ventures
\n
\u00a3m
\n
Associates
\n
\u00a3m
\n
2022
\n
Total
\n
\u00a3m
\n
Joint
\n
ventures
\n
\u00a3m
\n
Associates
\n
\u00a3m
\n
2021
\n
Total
\n
\u00a3m
\n
At 1 January
12
76
88
15
349
364
\n
Exchange adjustments
1
1
2
\u2013
(15)
(15)
\n
Additions
\u2013
1
1
\u2013
1
1
\n
Disposals
\u2013
\u2013
\u2013
\u2013
(278)
(278)
\n
Distributions received
\u2013
(6)
(6)
\u2013
(9)
(9)
\n
Net fair value movements through Other comprehensive income
\u2013
(9)
(9)
\u2013
28
28
\n
Impairment of interest in associates
\u2013
\u2013
\u2013
\u2013
(36)
(36)
\n
Pro\ufb01t/(loss) after tax recognised in the consolidated income
\n
statement
\n
(3)
1
(2)
(3)
36
33
\n
At 31 December
10
64
74
12
76
88
\n
On 20 May 2021, the Group agreed with Innoviva Inc to sell all of its shares in Innoviva back to Innoviva for \u00a3277 million. Following
\n
settlement of the transaction, GSK no longer held any Innoviva stock. A loss of \u00a346 million (including \u00a310 million of recycling of
\n
exchange differences in Innoviva) is presented in Loss on disposal of interest in associates in the 2021 Consolidated income
\n
statement. The transaction did not include any changes in Innoviva\u2019s commercial interest in royalties paid by GSK. Loss on disposal
\n
of interest in associates in 2021 also includes a \u00a310 million gain from a disposal of another immaterial associate.
\nPlease refer to the Income statement information on associates and joint ventures in Note 13.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28714": {
"value": "22. Current equity investments
Current
\n
Investments
\n
measured at
\n
FVTPL
\n
2022
\n
\u00a3m
\n
At 1 January
\u2013
\n
Exchange adjustments
2
\n
Additions
3,852
\n
Net fair value movements through pro\ufb01t or loss
233
\n
At 31 December
4,087
\n
Current equity investments represent Haleon plc shares held after the demerger of Consumer Healthcare. Shares are held for
\n
trading and measured at fair value through pro\ufb01t or loss (FVTPL) based on the Haleon plc share price. Changes in fair value after
\n
the demerger are presented as Other operating income/expense in continuing operations. The Group\u2019s investment in Haleon plc
\n
at the end of December 2022 is held by Glaxo Group Limited (5.4%), Scottish Limited Partnerships (SLPs) which were set up to
\n
collateralise agreed additional funding for GSK\u2019s UK De\ufb01ned Bene\ufb01t pension schemes (7.5%) (Note 31) and the ESOP Trusts
\n
(0.6%). Net fair value movement through pro\ufb01t or loss of \u00a3233 million includes a fair value gain of \u00a3229 million and \u00a34 million of
\n
other adjustments.
\n
\n
\n
\n
23. Other investments
\n
Non-current
\n
Investments
\n
designated as
\n
measured at
\n
FVTOCI
\n
\u00a3m
\n
Investments
\n
measured at
\n
FVTPL
\n
\u00a3m
\n
2022
\n
\u00a3m
\n
Investments
\n
designated as
\n
measured at
\n
FVTOCI
\n
\u00a3m
\n
Investments
\n
measured at
\n
FVTPL
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
At 1 January
1,927
199
2,126
2,939
121
3,060
\n
Exchange adjustments
75
25
100
5
\u2013
5
\n
Additions
87
63
150
125
52
177
\n
Net fair value movements through Other comprehensive income
(716)
\u2013
(716)
(902)
\u2013
(902)
\n
Net fair value movements through pro\ufb01t or loss
\u2013
27
27
\u2013
37
37
\n
Disposals
(220)
\u2013
(220)
(240)
(11)
(251)
\n
At 31 December
1,153
314
1,467
1,927
199
2,126
\n
Non-current other investments comprise non-current equity investments which are recorded at fair value at each balance sheet
\n
date. For investments traded in an active market, the fair value is determined by reference to the relevant stock exchange quoted
\n
bid price. For other investments, the fair value is estimated by management with reference to relevant available information,
\n
including the current market value of similar instruments, recent \ufb01nancing rounds and discounted cash \ufb02ows of the underlying net
\n
assets. Movements arising on the translation of overseas net assets for consolidation into the Group accounts are recorded as
\n
Exchange adjustments. Net fair value movements include the impact of other exchange gains of \u00a3134 million through Other
\n
comprehensive income and \u00a3nil through pro\ufb01t or loss (2021: gains of \u00a315 million through Other comprehensive income and \u00a32
\n
million through pro\ufb01t or loss). Other investments include listed investments of \u00a3823 million (2021: \u00a31,736 million).
\n
GSK has elected to designate the majority of its equity investments as measured at fair value through Other comprehensive
\n
income (FVTOCI). The most signi\ufb01cant of these investments held at 31 December 2022 were in Vir Biotechnology, Inc. which had a
\n
fair value at 31 December 2022 of \u00a3180 million (2021: \u00a3266 million) and Nimbus Therapeutics, LLC which had a fair value at 31
\n
December 2022 of \u00a3139 million (2021: \u00a332 million). The fair value of the investment in CureVac N.V., disclosed as a signi\ufb01cant
\n
investment at 31 December 2021, was \u00a375 million at 31 December 2022 (2021: \u00a3380 million). The other investments include equity
\n
stakes in companies with which GSK has research collaborations and in companies which provide access to biotechnology
\n
developments of potential interest.
\n
On disposal of equity investments measured at FVTOCI, the accumulated fair value movements are reclassi\ufb01ed from the fair
\n
value reserve to retained earnings. Investments measured at FVTOCI with a fair value of \u00a3220 million (2021: \u00a3240 million) were
\n
disposed of during the year. The cumulative gain on these investments after tax was \u00a314 million (2021: \u00a3132 million).
\n
Certain other investments, such as investments in funds with limited lives and investments acquired with an intention to sell, are
\nmeasured at fair value through pro\ufb01t or loss (FVTPL). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28878": {
"value": "24. Other non-current assets
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Amounts receivable under insurance contracts
857
849
\n
Pension schemes in surplus
229
741
\n
Other receivables
108
86
\n
1,194
1,676
\n
Amounts receivable under insurance contracts are held at cash surrender value with movements through pro\ufb01t or loss.
\n
Within the other receivables of \u00a3108 million (2021: \u00a386 million), \u00a334 million (2021: \u00a344 million) is classi\ufb01ed as \ufb01nancial assets of
\n
which \u00a313 million (2021: \u00a323 million) is classi\ufb01ed as fair value through pro\ufb01t or loss. On the remaining balance of \u00a321 million
\n(2021: \u00a321 million), the expected credit loss allowance was immaterial at 31 December 2022 and 2021.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28901": {
"value": "25. Inventories
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Raw materials and consumables
1,576
1,772
\n
Work in progress
2,286
1,889
\n
Finished goods
1,284
2,122
\n
5,146
5,783",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInventoriesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28920": {
"value": "26. Trade and other receivables
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Trade receivables, net of loss allowance
5,452
6,246
\n
Accrued income
19
12
\n
Prepayments
343
315
\n
Interest receivable
2
3
\n
Employee loans and advances
11
18
\n
Other receivables
1,226
1,266
\n
7,053
7,860
\n
There were no trade or other receivable balances (2021: \u00a3nil) due from associates and joint ventures. The most signi\ufb01cant component of
\n
other receivables comprises receivables for taxes other than corporate income tax. Other signi\ufb01cant balances within other receivables are
\n
royalties receivable and amounts receivable from collaboration partners.
\n
Loss allowance - trade receivables
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
At 1 January
150
151
\n
Exchange adjustments
9
(3)
\n
Charge for the year
35
52
\n
Transfer to assets held for sale
(60)
\u2013
\n
Subsequent recoveries of amounts provided for
(19)
(39)
\n
Utilised
(24)
(11)
\n
At 31 December
91
150
\n
Of the total trade receivables balance, \u00a358 million (2021: \u00a386 million) is considered credit impaired, against which a \u00a326 million (2021: \u00a34
\n
million) expected credit loss allowance has been applied. No amount was purchased or originated credit impaired.
\n
Within the other receivables of \u00a31,226 million (2021: \u00a31,266 million), \u00a3683 million (2021: \u00a3553 million) is classi\ufb01ed as \ufb01nancial assets of which
\n
\u00a3nil (2021: \u00a3nil) is classi\ufb01ed as held at fair value through pro\ufb01t or loss. At 31 December 2022 an expected credit loss allowance of \u00a36 million
\n
(2021: \u00a35 million) was recognised in respect of \ufb01nancial assets with no charge reported in pro\ufb01t or loss during the year.
\nFor more discussion on credit risk practices, please refer to Note 44.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f29001": {
"value": "27. Cash and cash equivalents
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Cash at bank and in hand
879
1,427
\n
Short-term deposits
2,844
2,847
\n
3,723
4,274
\n
During 2022 \u00a31,421 million was transferred to assets held for sale relating to the Consumer Healthcare business that was
\n
demerged during the year (see Note 41). Cash and cash equivalents included \u00a30.2 billion (2021: \u00a30.2 billion) not available for
\n
general use due to restrictions applying in the subsidiaries where it is held. Restrictions include exchange controls and taxes on
\nrepatriation.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f29016": {
"value": "During 2022 \u00a31,421 million was transferred to assets held for sale relating to the Consumer Healthcare business that was
demerged during the year (see Note 41). Cash and cash equivalents included \u00a30.2 billion (2021: \u00a30.2 billion) not available for
\n
general use due to restrictions applying in the subsidiaries where it is held. Restrictions include exchange controls and taxes on
repatriation.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f29024": {
"value": "28. Assets held for sale
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Property, plant and equipment
83
22
\n
Other
15
\u2013
\n
98
22
\n
Non-current assets and disposal groups are transferred to assets held for sale when it is expected that their carrying amounts
\n
will be recovered principally through disposal and a sale is considered highly probable. They are held at the lower of carrying
\namount and fair value less costs to sell.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f29025": {
"value": "28. Assets held for sale
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Property, plant and equipment
83
22
\n
Other
15
\u2013
\n
98
22
\n
Non-current assets and disposal groups are transferred to assets held for sale when it is expected that their carrying amounts
\n
will be recovered principally through disposal and a sale is considered highly probable. They are held at the lower of carrying
\n
amount and fair value less costs to sell.
\n
In Q2 2022, the Consumer Healthcare business was classi\ufb01ed as held for sale. Following completion of the demerger of the
\n
Consumer Healthcare business in Q3 2022, a total of \u00a312.9 billion of net assets and liabilities were distributed/derecognised as
\npart of the gain on the demerger.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f29074": {
"value": "29. Trade and other payables
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Trade payables
3,866
4,535
\n
Wages and salaries
1,488
1,470
\n
Social security
126
152
\n
ViiV Healthcare put option
1,093
1,008
\n
Other payables
418
518
\n
Deferred income
299
307
\n
Customer return and rebate accruals
6,627
6,322
\n
Other accruals
2,346
3,242
\n
16,263
17,554
\n
Trade and other payables included \u00a3nil (2021: \u00a3nil) due to associates and joint ventures. The Group provides limited supplier
\n
\ufb01nancing arrangements to certain customers. The amounts involved at 31 December 2022 were not material.
\n
Revenue recognised in the year that was included in deferred income at 1 January 2022 was \u00a385 million (2021: \u00a329 million).
\n
Customer return and rebate accruals are provided for by the Group at the point of sale in respect of estimated rebates, discounts
\n
or allowances payable to customers as more fully described in the Group \ufb01nancial review on page 94. At 31 December 2022,
\n
Customer return and rebate accruals included \u00a35,717 million (2021: \u00a35,044 million) in respect of US Commercial Operations.
\n
Accruals are made at the time of sale but the actual amounts paid are based on claims made some time after the initial
\n
recognition of the sale. As the amounts are estimated, they may not fully re\ufb02ect the \ufb01nal outcome and are subject to change
\n
dependent upon, amongst other things, the types of buying group and product sales mix. The level of accrual is reviewed and
\n
adjusted quarterly in light of historical experience of actual amounts paid and any changes in arrangements. Future events could
\n
cause the assumptions on which the accruals are based to change, which could affect the future results of the Group.
\n
P\ufb01zer\u2019s put option over its shareholding in ViiV Healthcare is currently exercisable. P\ufb01zer may request an IPO of ViiV Healthcare
\n
at any time and if either GSK does not consent to such IPO or an offering is not completed within nine months, P\ufb01zer could
\n
require GSK to acquire its shareholding. The amount of the liability for this put option, which is held on the gross redemption
\n
basis, is derived from an internal valuation of the ViiV Healthcare business, utilising both discounted forecast future cash \ufb02ow
\n
and multiples-based methodologies.
\n
The table below shows on an indicative basis the income statement and balance sheet sensitivity of the P\ufb01zer put option to
\n
reasonably possible changes in key assumptions.
\n
Increase/(decrease) in \ufb01nancial liability and loss/(gain) in Income statement
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
10% increase in sales forecasts*
100
89
\n
15% increase in sales forecasts*
149
133
\n
10% decrease in sales forecasts*
(99)
(89)
\n
15% decrease in sales forecast*
(149)
(134)
\n
1% (100 basis points) increase in discount rate
(32)
(30)
\n
1.50% (150 basis points) increase in discount rate
(48)
(45)
\n
1% (100 basis points) decrease in discount rate
35
34
\n
1.50% (150 basis points) decrease in discount rate
53
50
\n
10 cent appreciation of US Dollar
66
55
\n
15 cent appreciation of US Dollar
103
81
\n
10 cent depreciation of US Dollar
(56)
(47)
\n
15 cent depreciation of US Dollar
(80)
(64)
\n
10 cent appreciation of Euro
29
26
\n
15 cent appreciation of Euro
46
41
\n
10 cent depreciation of Euro
(24)
(22)
\n
15 cent depreciation of Euro
(35)
(32)
\n
*
The sales forecast is for ViiV Healthcare sales only in respect of the ViiV Healthcare put option.
\n
Other accruals includes interest accrued on \ufb01nancial liabilities at amortised cost of \u00a3207 million (2021: \u00a3244 million).
\nAn explanation of the accounting for ViiV Healthcare is set out on page 71.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f29076": {
"value": "
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Trade payables
3,866
4,535
\n
Wages and salaries
1,488
1,470
\n
Social security
126
152
\n
ViiV Healthcare put option
1,093
1,008
\n
Other payables
418
518
\n
Deferred income
299
307
\n
Customer return and rebate accruals
6,627
6,322
\n
Other accruals
2,346
3,242
\n
16,263
17,554
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Accruals
11
13
\n
Deferred income
83
85
\n
Other payables
805
823
\n
899
921
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f29201": {
"value": "30. Net debt
Listing exchange
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Current assets:
\n
Liquid investments
67
61
\n
Cash and cash equivalents
3,723
4,274
\n
3,790
4,335
\n
Short-term borrowings:
\n
Commercial paper
(1,191)
(252)
\n
Bank loans, overdrafts and other
(448)
(550)
\n
2.850% US$ US Medium Term Note 2022
New York Stock Exchange
\u2013
(1,483)
\n
2.875% US$ US Medium Term Note 2022
New York Stock Exchange
\u2013
(1,113)
\n
0.125% \u20ac European Medium Term Note 2023
London Stock Exchange
(665)
\u2013
\n
0.000% \u20ac European Medium Term Note 2023
London Stock Exchange
(443)
\u2013
\n
0.534% US$ Medium Term Note 2023
New York Stock Exchange
(1,038)
\u2013
\n
Lease liabilities
(167)
(203)
\n
(3,952)
(3,601)
\n
Long-term borrowings:
\n
2.800% US$ US Medium Term Note 2023
New York Stock Exchange
\u2013
(926)
\n
0.125% \u20ac Euro Medium Term Note 2023
London Stock Exchange
\u2013
(629)
\n
3.375% US$ US Medium Term Note 2023
New York Stock Exchange
\u2013
(925)
\n
0.000% US$ US Medium Term Note 2023
New York Stock Exchange
\u2013
(204)
\n
0.000% \u20ac Euro Medium Term Note 2023
London Stock Exchange
\u2013
(420)
\n
0.534% US$ US Medium Term Note 2023
New York Stock Exchange
\u2013
(926)
\n
3.000% US$ US Medium Term Note 2024
New York Stock Exchange
(829)
(739)
\n
1.375% \u20ac Euro Medium Term Note 2024
London Stock Exchange
(884)
(836)
\n
4.000% \u20ac Euro Medium Term Note 2025
London Stock Exchange
(663)
(627)
\n
3.625% US$ US Medium Term Note 2025
New York Stock Exchange
(827)
(738)
\n
1.000% \u20ac Euro Medium Term Note 2026
London Stock Exchange
(620)
(587)
\n
1.250% \u20ac Euro Medium Term Note 2026
London Stock Exchange
(885)
(838)
\n
3.000% \u20ac Euro Medium Term Note 2027
London Stock Exchange
(442)
\u2013
\n
3.375% \u00a3 Euro Medium Term Note 2027
London Stock Exchange
(306)
(595)
\n
3.875% US$ US Medium Term Note 2028
New York Stock Exchange
(1,450)
(1,294)
\n
1.250% \u00a3 Euro Medium Term Note 2028
London Stock Exchange
(744)
(743)
\n
3.375% US$ US Medium Term Note 2029
New York Stock Exchange
(822)
(733)
\n
1.375% \u20ac Euro Medium Term Note 2029
London Stock Exchange
(441)
(418)
\n
1.750% \u20ac Euro Medium Term Note 2030
London Stock Exchange
(663)
(628)
\n
3.125% \u20ac Euro Medium Term Note 2032
London Stock Exchange
(616)
\u2013
\n
5.250% \u00a3 Euro Medium Term Note 2033
\n
(1)
\n
London Stock Exchange
(640)
(984)
\n
5.375% US$ US Medium Term Note 2034
London Stock Exchange
(412)
(368)
\n
1.625% \u00a3 Euro Medium Term Note 2035
London Stock Exchange
(744)
(744)
\n
6.375% US$ US Medium Term Note 2038
New York Stock Exchange
(2,264)
(2,022)
\n
6.375% \u00a3 Euro Medium Term Note 2039
\n
(1)
\n
London Stock Exchange
(695)
(695)
\n
5.250% \u00a3 Euro Medium Term Note 2042
London Stock Exchange
(472)
(987)
\n
4.200% US$ US Medium Term Note 2043
New York Stock Exchange
(408)
(364)
\n
4.250% \u00a3 Euro Medium Term Note 2045
London Stock Exchange
(366)
(789)
\n
Other long-term borrowings
(1)
(1)
\n
Lease liabilities
(841)
(812)
\n
(17,035)
(20,572)
\n
Net debt
(17,197)
(19,838)
\n
(1)
Partially purchased and cancelled on 13 February 2023.
\n
\n
\n
\n
\n\n
Current assets
\n
Liquid investments are classi\ufb01ed as \ufb01nancial assets at amortised cost. At 31 December 2022, they included US Treasury Notes
\n
and other government bonds. The effective interest rate on liquid investments at 31 December 2022 was approximately 0.1%
\n
(2021: approximately 0.1%). Liquid investment balances at 31 December 2022 earning interest at \ufb02oating rates amount to
\n
\u00a367 million (2021: \u00a32 million). Liquid investment balances at 31 December 2022 earning interest at \ufb01xed rates amount to
\n
\u00a3nil (2021: \u00a359 million).
\n
Balances reported within cash and cash equivalents have an original maturity of three months or less. The effective interest
\n
rate on cash and cash equivalents at 31 December 2022 was approximately 3.1% (2021: approximately 0.6%). Cash and cash
\n
equivalents at 31 December 2022 earning interest at \ufb02oating and \ufb01xed rates amounted to \u00a33,441 million and \u00a310 million
\n
respectively (2021: \u00a33,906 million and \u00a339 million) and non-interest bearing holdings amounted to \u00a3272 million (2021: \u00a3329 million).
\n
GSK\u2019s policy regarding the credit quality of cash and cash equivalents is set out in Note 44, \u2018Financial instruments and related
\n
disclosures\u2019.
\n
Short-term borrowings
\n
GSK has a $10 billion (\u00a38.3 billion) US commercial paper programme, of which $900 million (\u00a3748 million) was in issue at 31 December
\n
2022 (2021: $nil). GSK has a \u00a35 billion Euro commercial paper programme, of which \u20ac500 million (\u00a3443 million) was in issue at
\n
31 December 2022 (2021: \u20ac300 million (\u00a3252 million)). In February 2022 GSK cancelled the \u00a31.9 billion three year and $2.5 billion
\n
(\u00a32.1 billion) 364 day committed facilities and replaced them with new revolving credit facilities of equivalent size with maturities in
\n
September 2025 and September 2023 respectively. Post separation of the Consumer Healthcare business these facilities were
\n
reduced to \u00a31.6 billion and $2.2 billion (\u00a31.8 billion) respectively.
\n
The weighted average interest rate on commercial paper borrowings at 31 December 2022 was 3.5% (2021: -0.5%).
\n
The weighted average interest rate on current bank loans and overdrafts at 31 December 2022 was 7.8% (2021: 7.9%).
\n
The average effective pre-swap interest rate of notes classi\ufb01ed as short-term at 31 December 2022 was 0.4% (2021: 3.0%).
\n
Long-term borrowings
\n
At the year-end, GSK had long-term borrowings of \u00a317.0 billion (2021: \u00a320.6 billion), of which \u00a311.1 billion (2021: \u00a311.7 billion) fell due
\n
in more than \ufb01ve years.
\n
During 2022, three bonds were repaid earlier than original maturity, those being the 2.800% US$ US Medium Term Note 2023,
\n
the 3.375% US$ US Medium Term Note 2023 and the 0.000% US$ US Medium Term Note 2023. Also, during 2022 GSK undertook
\n
a tender on outstanding Sterling Notes, repaying face values of \u00a3292 million on the 3.375% \u00a3 Euro Medium Term Note 2027, \u00a3350
\n
million on the 5.250% \u00a3 Euro Medium Term Note 2033, \u00a3522 million on the 5.250% \u00a3 Euro Medium Term Note 2042 and \u00a3429
\n
million on the 4.250% \u00a3 Euro Medium Term Note 2045.
\n
The average effective pre-swap interest rate of all notes in issue at 31 December 2022 was approximately 3.5% (2021:
\n
approximately 3.3%).
\n
Long-term borrowings repayable after \ufb01ve years carry interest at effective rates between 1.4% and 6.4%, with repayment dates
\n
ranging from 2027 to 2045.
\n
Both effective rates exclude the impact of one-off premiums associated with the early repayment of the Sterling Notes.
\n
Pledged assets
\n
The Group held pledged investments in US Treasury Notes with a par value of $56 million (\u00a347 million), (2021: $56 million
\n
(\u00a342 million)) as security against irrevocable letters of credit issued on the Group\u2019s behalf in respect of the Group\u2019s self-insurance
\n
activity. Provisions in respect of self-insurance are included within the provisions for legal and other disputes discussed in Note 32,
\n
\u2018Other provisions\u2019.
\n
Lease liabilities
\n
The maturity analysis of discounted lease liabilities recognised on the Group balance sheet is as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Rental payments due within one year
167
203
\n
Rental payments due between one and two years
201
185
\n
Rental payments due between two and three years
127
120
\n
Rental payments due between three and four years
97
93
\n
Rental payments due between four and \ufb01ve years
80
73
\n
Rental payments due after \ufb01ve years
336
341
\n
Total lease liabilities
1,008
1,015 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f29202": {
"value": "30. Net debt
Listing exchange
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Current assets:
\n
Liquid investments
67
61
\n
Cash and cash equivalents
3,723
4,274
\n
3,790
4,335
\n
Short-term borrowings:
\n
Commercial paper
(1,191)
(252)
\n
Bank loans, overdrafts and other
(448)
(550)
\n
2.850% US$ US Medium Term Note 2022
New York Stock Exchange
\u2013
(1,483)
\n
2.875% US$ US Medium Term Note 2022
New York Stock Exchange
\u2013
(1,113)
\n
0.125% \u20ac European Medium Term Note 2023
London Stock Exchange
(665)
\u2013
\n
0.000% \u20ac European Medium Term Note 2023
London Stock Exchange
(443)
\u2013
\n
0.534% US$ Medium Term Note 2023
New York Stock Exchange
(1,038)
\u2013
\n
Lease liabilities
(167)
(203)
\n
(3,952)
(3,601)
\n
Long-term borrowings:
\n
2.800% US$ US Medium Term Note 2023
New York Stock Exchange
\u2013
(926)
\n
0.125% \u20ac Euro Medium Term Note 2023
London Stock Exchange
\u2013
(629)
\n
3.375% US$ US Medium Term Note 2023
New York Stock Exchange
\u2013
(925)
\n
0.000% US$ US Medium Term Note 2023
New York Stock Exchange
\u2013
(204)
\n
0.000% \u20ac Euro Medium Term Note 2023
London Stock Exchange
\u2013
(420)
\n
0.534% US$ US Medium Term Note 2023
New York Stock Exchange
\u2013
(926)
\n
3.000% US$ US Medium Term Note 2024
New York Stock Exchange
(829)
(739)
\n
1.375% \u20ac Euro Medium Term Note 2024
London Stock Exchange
(884)
(836)
\n
4.000% \u20ac Euro Medium Term Note 2025
London Stock Exchange
(663)
(627)
\n
3.625% US$ US Medium Term Note 2025
New York Stock Exchange
(827)
(738)
\n
1.000% \u20ac Euro Medium Term Note 2026
London Stock Exchange
(620)
(587)
\n
1.250% \u20ac Euro Medium Term Note 2026
London Stock Exchange
(885)
(838)
\n
3.000% \u20ac Euro Medium Term Note 2027
London Stock Exchange
(442)
\u2013
\n
3.375% \u00a3 Euro Medium Term Note 2027
London Stock Exchange
(306)
(595)
\n
3.875% US$ US Medium Term Note 2028
New York Stock Exchange
(1,450)
(1,294)
\n
1.250% \u00a3 Euro Medium Term Note 2028
London Stock Exchange
(744)
(743)
\n
3.375% US$ US Medium Term Note 2029
New York Stock Exchange
(822)
(733)
\n
1.375% \u20ac Euro Medium Term Note 2029
London Stock Exchange
(441)
(418)
\n
1.750% \u20ac Euro Medium Term Note 2030
London Stock Exchange
(663)
(628)
\n
3.125% \u20ac Euro Medium Term Note 2032
London Stock Exchange
(616)
\u2013
\n
5.250% \u00a3 Euro Medium Term Note 2033
\n
(1)
\n
London Stock Exchange
(640)
(984)
\n
5.375% US$ US Medium Term Note 2034
London Stock Exchange
(412)
(368)
\n
1.625% \u00a3 Euro Medium Term Note 2035
London Stock Exchange
(744)
(744)
\n
6.375% US$ US Medium Term Note 2038
New York Stock Exchange
(2,264)
(2,022)
\n
6.375% \u00a3 Euro Medium Term Note 2039
\n
(1)
\n
London Stock Exchange
(695)
(695)
\n
5.250% \u00a3 Euro Medium Term Note 2042
London Stock Exchange
(472)
(987)
\n
4.200% US$ US Medium Term Note 2043
New York Stock Exchange
(408)
(364)
\n
4.250% \u00a3 Euro Medium Term Note 2045
London Stock Exchange
(366)
(789)
\n
Other long-term borrowings
(1)
(1)
\n
Lease liabilities
(841)
(812)
\n
(17,035)
(20,572)
\n
Net debt
(17,197)
(19,838)
\n
(1)
Partially purchased and cancelled on 13 February 2023.
\n
\n
\n
\n
\n\n
Current assets
\n
Liquid investments are classi\ufb01ed as \ufb01nancial assets at amortised cost. At 31 December 2022, they included US Treasury Notes
\n
and other government bonds. The effective interest rate on liquid investments at 31 December 2022 was approximately 0.1%
\n
(2021: approximately 0.1%). Liquid investment balances at 31 December 2022 earning interest at \ufb02oating rates amount to
\n
\u00a367 million (2021: \u00a32 million). Liquid investment balances at 31 December 2022 earning interest at \ufb01xed rates amount to
\n
\u00a3nil (2021: \u00a359 million).
\n
Balances reported within cash and cash equivalents have an original maturity of three months or less. The effective interest
\n
rate on cash and cash equivalents at 31 December 2022 was approximately 3.1% (2021: approximately 0.6%). Cash and cash
\n
equivalents at 31 December 2022 earning interest at \ufb02oating and \ufb01xed rates amounted to \u00a33,441 million and \u00a310 million
\n
respectively (2021: \u00a33,906 million and \u00a339 million) and non-interest bearing holdings amounted to \u00a3272 million (2021: \u00a3329 million).
\n
GSK\u2019s policy regarding the credit quality of cash and cash equivalents is set out in Note 44, \u2018Financial instruments and related
\n
disclosures\u2019.
\n
Short-term borrowings
\n
GSK has a $10 billion (\u00a38.3 billion) US commercial paper programme, of which $900 million (\u00a3748 million) was in issue at 31 December
\n
2022 (2021: $nil). GSK has a \u00a35 billion Euro commercial paper programme, of which \u20ac500 million (\u00a3443 million) was in issue at
\n
31 December 2022 (2021: \u20ac300 million (\u00a3252 million)). In February 2022 GSK cancelled the \u00a31.9 billion three year and $2.5 billion
\n
(\u00a32.1 billion) 364 day committed facilities and replaced them with new revolving credit facilities of equivalent size with maturities in
\n
September 2025 and September 2023 respectively. Post separation of the Consumer Healthcare business these facilities were
\n
reduced to \u00a31.6 billion and $2.2 billion (\u00a31.8 billion) respectively.
\n
The weighted average interest rate on commercial paper borrowings at 31 December 2022 was 3.5% (2021: -0.5%).
\n
The weighted average interest rate on current bank loans and overdrafts at 31 December 2022 was 7.8% (2021: 7.9%).
\n
The average effective pre-swap interest rate of notes classi\ufb01ed as short-term at 31 December 2022 was 0.4% (2021: 3.0%).
\n
Long-term borrowings
\n
At the year-end, GSK had long-term borrowings of \u00a317.0 billion (2021: \u00a320.6 billion), of which \u00a311.1 billion (2021: \u00a311.7 billion) fell due
\n
in more than \ufb01ve years.
\n
During 2022, three bonds were repaid earlier than original maturity, those being the 2.800% US$ US Medium Term Note 2023,
\n
the 3.375% US$ US Medium Term Note 2023 and the 0.000% US$ US Medium Term Note 2023. Also, during 2022 GSK undertook
\n
a tender on outstanding Sterling Notes, repaying face values of \u00a3292 million on the 3.375% \u00a3 Euro Medium Term Note 2027, \u00a3350
\n
million on the 5.250% \u00a3 Euro Medium Term Note 2033, \u00a3522 million on the 5.250% \u00a3 Euro Medium Term Note 2042 and \u00a3429
\n
million on the 4.250% \u00a3 Euro Medium Term Note 2045.
\n
The average effective pre-swap interest rate of all notes in issue at 31 December 2022 was approximately 3.5% (2021:
\n
approximately 3.3%).
\n
Long-term borrowings repayable after \ufb01ve years carry interest at effective rates between 1.4% and 6.4%, with repayment dates
\n
ranging from 2027 to 2045.
\n
Both effective rates exclude the impact of one-off premiums associated with the early repayment of the Sterling Notes.
\n
Pledged assets
\n
The Group held pledged investments in US Treasury Notes with a par value of $56 million (\u00a347 million), (2021: $56 million
\n
(\u00a342 million)) as security against irrevocable letters of credit issued on the Group\u2019s behalf in respect of the Group\u2019s self-insurance
\n
activity. Provisions in respect of self-insurance are included within the provisions for legal and other disputes discussed in Note 32,
\n
\u2018Other provisions\u2019.
\n
Lease liabilities
\n
The maturity analysis of discounted lease liabilities recognised on the Group balance sheet is as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Rental payments due within one year
167
203
\n
Rental payments due between one and two years
201
185
\n
Rental payments due between two and three years
127
120
\n
Rental payments due between three and four years
97
93
\n
Rental payments due between four and \ufb01ve years
80
73
\n
Rental payments due after \ufb01ve years
336
341
\n
Total lease liabilities
1,008
1,015 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f29416": {
"value": "Current assets
Liquid investments are classi\ufb01ed as \ufb01nancial assets at amortised cost. At 31 December 2022, they included US Treasury Notes
\n
and other government bonds. The effective interest rate on liquid investments at 31 December 2022 was approximately 0.1%
\n
(2021: approximately 0.1%). Liquid investment balances at 31 December 2022 earning interest at \ufb02oating rates amount to
\n
\u00a367 million (2021: \u00a32 million). Liquid investment balances at 31 December 2022 earning interest at \ufb01xed rates amount to
\n
\u00a3nil (2021: \u00a359 million).
\n
Balances reported within cash and cash equivalents have an original maturity of three months or less. The effective interest
\n
rate on cash and cash equivalents at 31 December 2022 was approximately 3.1% (2021: approximately 0.6%). Cash and cash
\n
equivalents at 31 December 2022 earning interest at \ufb02oating and \ufb01xed rates amounted to \u00a33,441 million and \u00a310 million
\n
respectively (2021: \u00a33,906 million and \u00a339 million) and non-interest bearing holdings amounted to \u00a3272 million (2021: \u00a3329 million).
\n
GSK\u2019s policy regarding the credit quality of cash and cash equivalents is set out in Note 44, \u2018Financial instruments and related
\ndisclosures\u2019.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f29459": {
"value": "Lease liabilities
The maturity analysis of discounted lease liabilities recognised on the Group balance sheet is as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Rental payments due within one year
167
203
\n
Rental payments due between one and two years
201
185
\n
Rental payments due between two and three years
127
120
\n
Rental payments due between three and four years
97
93
\n
Rental payments due between four and \ufb01ve years
80
73
\n
Rental payments due after \ufb01ve years
336
341
\n
Total lease liabilities
1,008
1,015 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f29508": {
"value": "31. Pensions and other post-employment bene\ufb01ts
Pension and other post-employment costs
\n
2022
\n
\u00a3m
\n
2021
\n
(a)
\n
\u00a3m
\n
2020
\n
(a)
\n
\u00a3m
\n
UK pension schemes
114
185
239
\n
US pension schemes
48
40
58
\n
Other overseas pension schemes
154
153
170
\n
Unfunded post-retirement healthcare schemes
53
37
(1)
\n
369
415
466
\n
Analysed as:
\n
Funded de\ufb01ned bene\ufb01t/hybrid pension schemes
152
231
318
\n
Unfunded de\ufb01ned bene\ufb01t pension schemes
31
23
30
\n
Unfunded post-retirement healthcare schemes
53
37
(1)
\n
De\ufb01ned bene\ufb01t schemes
236
291
347
\n
De\ufb01ned contribution pension schemes
133
124
119
\n
369
415
466
\n
The costs of the de\ufb01ned bene\ufb01t pension and post-retirement healthcare schemes are charged in the income statement as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
(a)
\n
\u00a3m
\n
2020
\n
(a)
\n
\u00a3m
\n
Cost of sales
104
106
128
\n
Selling, general and administration
90
136
167
\n
Research and development
42
49
52
\n
236
291
347
\n
(a)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n
(see Note 41).
\n
GSK entities operate pension arrangements which cover the Group\u2019s material obligations to provide pensions to retired employees.
\n
These arrangements have been developed in accordance with local practices in the countries concerned. Pension bene\ufb01ts can be
\n
provided by state schemes; by de\ufb01ned contribution schemes, whereby retirement bene\ufb01ts are determined by the value of funds
\n
arising from contributions paid in respect of each employee; or by de\ufb01ned bene\ufb01t schemes, whereby retirement bene\ufb01ts are
\n
based on employee pensionable remuneration and length of service.
\n
Pension costs of de\ufb01ned bene\ufb01t schemes for accounting purposes have been calculated using the projected unit credit method.
\n
In certain countries pension bene\ufb01ts are provided on an unfunded basis, some administered by trustee companies. Formal,
\n
independent, actuarial valuations of the Group\u2019s main plans are undertaken regularly, normally at least every three years.
\n
Remeasurement movements in the year are recognised through the statement of comprehensive income. Discount rates are
\n
derived from AA rated corporate bond yields except in countries where there is no deep market in corporate bonds where
\n
government bond yields are used. Discount rates are selected to re\ufb02ect the term of the expected bene\ufb01t payments. Projected
\n
in\ufb02ation rates and pension increases are long-term predictions based on the yield gap between long-term index-linked and \ufb01xed
\n
interest Gilts. In the UK, mortality rates are determined by adjusting the SAPS S3 standard mortality tables to re\ufb02ect recent
\n
scheme experience. These rates are then projected to re\ufb02ect improvements in life expectancy in line with the CMI 2021 projections
\n
with a long-term rate of improvement of 1.0% per year for both males and females. In the US, mortality rates are calculated using
\n
the PRI-2012 white collar table adjusted to re\ufb02ect recent experience. These rates are projected using MP-2020 to allow for future
\n
improvements in life expectancy.
\n
\n
\n
\n
\n\n
The average life expectancy assumed now for an individual at the age of 60 and projected to apply in 2042 for an individual then
\n
at the age of 60 is as follows:
\n
UK
US
\n
Male
\n
Years
\n
Female
\n
Years
\n
Male
\n
Years
\n
Female
\n
Years
\n
Current
27.3
28.2
27.3
28.6
\n
Projected for 2042
28.5
29.5
28.8
30.1
\n
The assets of funded schemes are generally held in separately administered trusts, either as speci\ufb01c assets or as a proportion of a
\n
general fund, or are insurance contracts. Assets are invested in different classes in order to maintain a balance between risk and
\n
return. Investments are diversi\ufb01ed to limit the \ufb01nancial effect of the failure of any individual investment. The physical asset
\n
allocation strategy for three of the four UK plans is 36% in return-seeking assets and 64% in liability-matching assets. During 2019,
\n
a buy-in insurance contract was purchased to cover substantially all of the obligations of the other UK plan. At 31 December 2022,
\n
the value of the insurance contract was \u00a3402 million (2021: \u00a3570 million). The asset allocation of the US plans is currently set at
\n
25% return-seeking assets and 75% liability-matching assets.
\n
The pension plans are exposed to risk that arises because the estimated market value of the plans\u2019 assets might decline, the
\n
investment returns might reduce, or the estimated value of the plans\u2019 liabilities might increase.
\n
In line with the agreed mix of return-seeking assets to generate future returns and liability-matching assets to better match future
\n
pension obligations, the Group has de\ufb01ned an overall long-term investment strategy for the plans, with investments across a
\n
broad range of assets. The main market risks within the asset and hedging portfolio are against credit risk, interest rates, long-
\n
term in\ufb02ation, equities, property, currency and bank counterparty risk.
\n
The plan liabilities are a series of future cash \ufb02ows with relatively long duration. On an IAS 19 basis, these cash \ufb02ows are sensitive to changes
\n
in the expected long-term in\ufb02ation rate and the discount rate (AA corporate bond yield curve) where an increase in long-term in\ufb02ation
\n
corresponds with an increase in the liabilities, and an increase in the discount rate corresponds with a decrease in the liabilities.
\n
The interest rate risk and credit rate risk in the US are partially hedged. The targets are based on an accounting measure of the
\n
plan liabilities.
\n
For the UK plans, there is an interest rate and in\ufb02ation hedging strategy in place. The targets are based on an economic measure
\n
of the plan liabilities.
\n
In the UK, the de\ufb01ned bene\ufb01t pension schemes operated for the bene\ufb01t of former Glaxo Wellcome employees and former
\n
SmithKline Beecham employees remain separate. These schemes were closed to new entrants in 2001 and subsequent UK
\n
employees are entitled to join a de\ufb01ned contribution scheme. In addition, the Group operates a number of post-retirement
\n
healthcare schemes, the principal one of which is in the US.
\n
Following a period of consultation with impacted employees, it was announced on 17 December 2020 that the UK de\ufb01ned bene\ufb01t plans
\n
would be closed to future accrual effective from 31 March 2022. As a result, post closure the accrued bene\ufb01ts of active participants will be
\n
revalued in line with in\ufb02ation (RPI for the legacy Glaxo Wellcome plans and CPI for the legacy SmithKline Beecham plans subject to the
\n
relevant caps for each arrangement) rather than capped pay increases. In addition, all de\ufb01ned bene\ufb01t plan participants who were still
\n
active at 1 April 2022 received a de\ufb01ned pension contribution of \u00a310,000 each. The effect of closure and the de\ufb01ned contribution
\n
enhancement together resulted in a one-off cost of \u00a374 million in 2020. As announced, the plan was closed to new entrants at 31 March
\n
2022. From 1 April 2022, former de\ufb01ned bene\ufb01ts plans employees were transferred to the de\ufb01ned contribution plans.
\n
It was announced on 9 September 2020 that the US cash balance pension plans would be closed to future accrual from 1 January 2021.
\n
This change resulted in a credit of \u00a356 million. On 1 June 2020 and 9 September 2020, two amendments were made to the retiree
\n
healthcare plans in the US resulting in a credit of \u00a355 million.
\n
The Group has applied the following \ufb01nancial assumptions in assessing the de\ufb01ned bene\ufb01t liabilities:
\n
UK
US
Rest of World
\n
2022
\n
% pa
\n
2021
\n
% pa
\n
2020
\n
% pa
\n
2022
\n
% pa
\n
2021
\n
% pa
\n
2020
\n
% pa
\n
2022
\n
% pa
\n
2021
\n
% pa
\n
2020
\n
% pa
\n
Rate of increase of future earnings
n/a
2.00
2.00
n/a
n/a
n/a
3.40
2.90
2.60
\n
Discount rate
4.80
2.00
1.40
5.30
2.70
2.30
3.40
1.10
0.60
\n
Expected pension increases
3.10
3.20
2.80
n/a
n/a
n/a
2.40
2.30
2.10
\n
Cash balance credit/conversion rate
n/a
n/a
n/a
3.90
2.00
1.90
0.80
0.20
0.10
\n
In\ufb02ation rate
3.10
3.20
2.80
2.50
2.25
2.00
2.30
1.90
1.30
\n
Sensitivity analysis detailing the effect of changes in assumptions is provided on page 228. The analysis provided re\ufb02ects the
\n
assumption changes which have the most material impact on the results of the Group.
\n
\n
\n
\n\n
The amounts recorded in the income statement and statement of comprehensive income for the three years ended 31 December
\n
2022 in relation to the de\ufb01ned bene\ufb01t pension and post-retirement healthcare schemes were as follows:
\n
Pensions
\n
Post-retirement
\n
bene\ufb01ts
\n
2022
\n
UK
\n
\u00a3m
\n
US
\n
\u00a3m
\n
Rest of World
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Amounts charged to operating pro\ufb01t
\n
Current service cost
13
7
126
146
22
\n
Past service cost
6
\u2013
\u2013
6
\u2013
\n
Net interest cost
(11)
20
9
18
32
\n
Gains from settlements
\u2013
\u2013
(22)
(22)
\u2013
\n
Expenses
14
21
\u2013
35
(1)
\n
22
48
113
183
53
\n
Remeasurement gains/(losses) recorded in the statement of
\n
comprehensive income
\n
(1)
\n
(1,169)
36
261
(872)
228
\n
Pensions
\n
Post-retirement
\n
bene\ufb01ts
\n
2021
\n
(2)
\n
UK
\n
\u00a3m
\n
US
\n
\u00a3m
\n
Rest of World
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Amounts charged to operating pro\ufb01t
\n
Current service cost
53
9
119
181
17
\n
Past service cost/(credit)
27
2
(10)
19
(3)
\n
Net interest (income)/cost
3
18
7
28
22
\n
Gains from settlements
\u2013
\u2013
(2)
(2)
\u2013
\n
Expenses
15
12
2
29
\u2013
\n
98
41
116
255
36
\n
Remeasurement gains/(losses) recorded in the statement of
\n
comprehensive income
572
98
186
856
68
\n
Pensions
\n
Post-retirement
\n
bene\ufb01ts
\n
2020
\n
(2)
\n
UK
\n
\u00a3m
\n
US
\n
\u00a3m
\n
Rest of World
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Amounts charged to operating pro\ufb01t
\n
Current service cost
58
72
125
255
22
\n
Past service cost/(credit)
93
(49)
1
45
(53)
\n
Net interest (income)/cost
3
23
8
34
36
\n
Gains from settlements
\u2013
12
(7)
5
(6)
\n
Expenses
9
\u2013
\u2013
9
\u2013
\n
163
58
127
348
(1)
\n
Remeasurement losses recorded in the statement of
\n
comprehensive income
51
(96)
(45)
(90)
(73)
\n
The amounts included within past service costs in the UK included \u00a36 million (2021
\n
(2)
\n
: \u00a326 million; 2020
\n
(2)
\n
: \u00a323 million) of
\n
augmentation costs which arose from Major restructuring programmes, together with a charge of \u00a3nil (2021: \u00a3nil; 2020
\n
(2)
\n
: \u00a370 million)
\n
in relation to the impact of the closure of the de\ufb01ned bene\ufb01t schemes to future accrual.
\n
In 2020, the past service credit of \u00a349 million in the US re\ufb02ected the closure of the cash balance pension plans from 1 January 2021.
\n
Amendments to the retiree healthcare plan in the US in 2020
\n
(2)
\n
resulted in a credit of \u00a353 million to past service costs in post-
\n
retirement bene\ufb01ts in 2020.
\n
(1)
These numbers do not include remeasurement gains/(losses) related to the demerged Consumer Healthcare business.
\n
(2)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n
(see Note 41).
\n
\n
\n
\n
\n\n
A summarised balance sheet presentation of the Group de\ufb01ned bene\ufb01t pension schemes and other post-retirement bene\ufb01ts is set
\n
out in the table below:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Recognised in Other non-current assets:
\n
Pension schemes in surplus
229
741
183
\n
Recognised in Pensions and other post-employment bene\ufb01ts:
\n
Pension schemes in de\ufb01cit
(1,585)
(1,870)
(2,287)
\n
Post-retirement bene\ufb01ts
(994)
(1,243)
(1,363)
\n
(2,579)
(3,113)
(3,650)
\n
In the event of a plan wind-up, GSK believes the UK pension scheme rules provide the company with the right to a refund of
\n
surplus assets following the full settlement of plan liabilities. As a result, the net surplus in the UK de\ufb01ned bene\ufb01t pension schemes
\n
is recognised in full.
\n
The fair values of the assets and liabilities of the UK and US de\ufb01ned bene\ufb01t pension schemes, together with aggregated data for
\n
other de\ufb01ned bene\ufb01t pension schemes in the Group are as follows:
\n
At 31 December 2022
\n
UK
\n
\u00a3m
\n
US
\n
\u00a3m
\n
Rest of World
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Equities:
\u2013
listed
1,351
437
371
2,159
\n
\u2013
unlisted
\u2013
\u2013
2
2
\n
Multi-asset funds
1,101
\u2013
\u2013
1,101
\n
Property:
\u2013
listed
\u2013
\u2013
19
19
\n
\u2013
unlisted
464
140
1
605
\n
Corporate bonds:
\u2013
listed
1,692
779
124
2,595
\n
\u2013
unlisted
\u2013
\u2013
15
15
\n
Government bonds:
\u2013
listed
4,048
723
558
5,329
\n
Insurance contracts
1,003
\u2013
691
1,694
\n
Other (liabilities)/assets
(645)
181
89
(375)
\n
Fair value of assets
\n
9,014
2,260
1,870
\n
13,144
\n
Present value of scheme obligations
\n
(9,117)
(3,030)
(2,353)
\n
(14,500)
\n
Net surplus/(obligation)
(103)
(770)
(483)
(1,356)
\n
Included in Other non-current assets
109
\u2013
120
229
\n
Included in Pensions and other post-employment bene\ufb01ts
(212)
(770)
(603)
(1,585)
\n
(103)
(770)
(483)
(1,356)
\n
Actual return on plan assets
(4,710)
(253)
(550)
(5,513)
\n
The multi-asset funds comprise investments in pooled investment vehicles that are invested across a range of asset classes,
\n
increasing diversi\ufb01cation within the growth portfolio. The value of funds in this asset class with a quoted market price is
\n
\u00a3211 million (2021: \u00a3350 million).
\n
The \u2018Other (liabilities)/assets\u2019 category comprises cash and mark to market values of derivative positions.
\n
Index-linked gilts held as part of a UK repo programme are included in government bonds. The related loan of \u00a32,376 million at
\n
31 December 2022 (2021: \u00a3513 million; 2020: \u00a3650 million) is deducted within \u2018Other assets\u2019.
\n
\n
\n
\n\n
At 31 December 2021
\n
UK
\n
\u00a3m
\n
US
\n
\u00a3m
\n
Rest of World
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Equities:
\u2013
listed
3,954
522
731
5,207
\n
\u2013
unlisted
\u2013
\u2013
4
4
\n
Multi-asset funds
1,415
\u2013
\u2013
1,415
\n
Property:
\u2013
listed
\u2013
\u2013
68
68
\n
\u2013
unlisted
502
154
1
657
\n
Corporate bonds:
\u2013
listed
1,503
975
140
2,618
\n
\u2013
unlisted
\u2013
\u2013
15
15
\n
Government bonds:
\u2013
listed
5,054
724
984
6,762
\n
Insurance contracts
1,334
\u2013
917
2,251
\n
Other (liabilities)/assets
(130)
149
72
91
\n
Fair value of assets
13,632
2,524
2,932
19,088
\n
Asset ceiling restrictions
\u2013
\u2013
(26)
(26)
\n
Present value of scheme obligations
(13,299)
(3,248)
(3,644)
(20,191)
\n
Net surplus/(obligation)
333
(724)
(738)
(1,129)
\n
Included in Other non-current assets
606
\u2013
135
741
\n
Included in Pensions and other post-employment bene\ufb01ts
(273)
(724)
(873)
(1,870)
\n
333
(724)
(738)
(1,129)
\n
Actual return on plan assets
541
97
48
686
\n
At 31 December 2020
\n
UK
\n
\u00a3m
\n
US
\n
\u00a3m
\n
Rest of World
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Equities:
\u2013
listed
2,686
539
686
3,911
\n
\u2013
unlisted
\u2013
\u2013
5
5
\n
Multi-asset funds
2,075
\u2013
\u2013
2,075
\n
Property:
\u2013
listed
\u2013
\u2013
57
57
\n
\u2013
unlisted
447
136
2
585
\n
Corporate bonds:
\u2013
listed
1,113
1,066
154
2,333
\n
\u2013
unlisted
\u2013
\u2013
20
20
\n
Government bonds:
\u2013
listed
6,055
758
999
7,812
\n
Insurance contracts
1,409
\u2013
988
2,397
\n
Other (liabilities)/assets
(203)
136
78
11
\n
Fair value of assets
13,582
2,635
2,989
19,206
\n
Present value of scheme obligations
(13,858)
(3,445)
(4,007)
(21,310)
\n
Net surplus/(obligation)
(276)
(810)
(1,018)
(2,104)
\n
Included in Other non-current assets
77
\u2013
106
183
\n
Included in Pensions and other post-employment bene\ufb01ts
(353)
(810)
(1,124)
(2,287)
\n
(276)
(810)
(1,018)
(2,104)
\n
Actual return on plan assets
1,092
159
177
1,428
\n
\n
\n
\n
\n
\n
Pensions
\n
Post-retirement
\n
bene\ufb01ts
\n
Movements in fair values of assets
\n
UK
\n
\u00a3m
\n
US
\n
\u00a3m
\n
Rest of World
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Assets at 1 January 2020
12,981
2,789
2,662
18,432
\u2013
\n
Exchange adjustments
\u2013
(86)
138
52
\u2013
\n
Interest income
256
87
29
372
\u2013
\n
Expenses
(9)
(12)
\u2013
(21)
\u2013
\n
Settlements and curtailments
\u2013
\u2013
(20)
(20)
\u2013
\n
Remeasurement
836
72
148
1,056
\u2013
\n
Employer contributions
156
33
124
313
105
\n
Scheme participants\u2019 contributions
3
\u2013
18
21
18
\n
Bene\ufb01ts paid
(641)
(248)
(110)
(999)
(123)
\n
Assets at 31 December 2020
13,582
2,635
2,989
19,206
\u2013
\n
Exchange adjustments
\u2013
31
(184)
(153)
\u2013
\n
Interest income
187
57
18
262
\u2013
\n
Expenses
(15)
(12)
\u2013
(27)
\u2013
\n
Settlements and curtailments
\u2013
\u2013
(7)
(7)
\u2013
\n
Remeasurement
354
40
30
424
\u2013
\n
Employer contributions
139
40
133
312
105
\n
Scheme participants\u2019 contributions
3
\u2013
24
27
15
\n
Bene\ufb01ts paid
(618)
(267)
(97)
(982)
(120)
\n
Assets at 31 December 2021
13,632
2,524
2,906
19,062
\u2013
\n
Exchange adjustments
\u2013
286
122
408
\u2013
\n
Interest income
271
71
28
370
\u2013
\n
Expenses
(14)
(21)
\u2013
(35)
\u2013
\n
Settlements and curtailments
\u2013
\u2013
(8)
(8)
\u2013
\n
Remeasurement
(4,981)
(324)
(578)
(5,883)
\u2013
\n
Employer contributions
755
50
114
919
117
\n
Scheme participants\u2019 contributions
\u2013
\u2013
15
15
18
\n
Transfer to assets held for sale/distribution
\u2013
\u2013
(624)
(624)
\u2013
\n
Bene\ufb01ts paid
(649)
(326)
(105)
(1,080)
(135)
\n
Assets at 31 December 2022
9,014
2,260
1,870
13,144
\u2013
\n
In connection with the demerger of Consumer Healthcare, the 31 December 2020 pension scheme valuations identi\ufb01ed cash
\n
funding or technical provisions de\ufb01cits in three GSK UK Pension Schemes.
\n
During March 2022, GSK transferred 7,004 GSK Consumer Healthcare Holdings Limited (GSKCHH) C Ordinary Shares
\n
(representing 11.03%. (in aggregate) of GSK\u2019s interest in GSKCHH to three Scottish Limited Partnerships (\u201cSLPs\u201d), each providing a
\n
funding mechanism for a separate GSK UK de\ufb01ned bene\ufb01t pension scheme. As part of the steps relating to the demerger and
\n
separation, the SLPs transferred their applicable portion of GSKCHH C Ordinary Shares to Haleon plc (\u201cHaleon\u201d) in consideration
\n
for shares in Haleon. The SLPs together hold shares representing 7.5% of the total issued share capital of Haleon.
\n
Each pension scheme, through its SLP interest, is entitled to receive a distribution from that SLP in an amount equal to the net
\n
proceeds of sales of Haleon shares, and to receive dividend income on the Haleon shares until it has received an aggregate
\n
amount equal to an agreed threshold (\u201cProceeds Threshold\u201d). The Proceeds Thresholds total \u00a31,080 million (as increased by
\n
notional interest on the remaining balance from time to time), and payment of this amount would fully fund the cash funding or
\n
\u201ctechnical provisions\u201d de\ufb01cits in the three pension schemes shown by the 31 December 2020 valuations.
Once the applicable
\n
Proceeds Threshold has been reached the GSK-controlled General Partner of each SLP is entitled to sell the remaining Haleon
\n
shares held by the SLP and distribute the proceeds to GSK. If a pension scheme does not receive aggregate cash equal to the
\n
applicable Proceeds Threshold within 18 months after separation, then the trustee of that pension scheme will have the ability to
\n
require the SLP to instruct a broker to liquidate any remaining Haleon shares on behalf of the SLP in accordance with an agreed
\n
mandate.
\n
During 2022, the Group made additional funding contributions to the UK pension schemes of \u00a3691 million (2021: \u00a344 million; 2020:
\n
\u00a376 million) but no additional funding (2021: \u00a3nil; 2020: \u00a3nil) to the US schemes.
\n
As at 31 December 2022, total cash contributions totalling \u00a3735 million were made towards the Proceeds Thresholds leaving a
\n
principal amount of \u00a3345 million outstanding to the UK pension schemes. The cash contributions of \u00a3735 million include voluntary
\n
cash contributions made by GSK in Q4 2022 to two of the UK de\ufb01ned bene\ufb01t pension schemes totalling \u00a3334 million in response to
\n
the market volatility in the UK gilt markets.
\n
\n
\n
\n\n
The outstanding accelerated contributions were collateralised by the creation of three Scottish Limited Partnerships (SLPs), into
\n
which GSK inserted a total of 692,593,037 Haleon ordinary shares across the three SLPs. Each of the three principal UK de\ufb01ned
\n
bene\ufb01t pension schemes (two bene\ufb01ting current and former Glaxo Welcome employees, with the third bene\ufb01ting current and
\n
former SmithKline Beecham employees) has an interest in one of the SLPs as shown below:
\n
Scottish Limited Partnership
General Partner
Limited Partners
\n
GSK (No. 1) Scottish Limited Partnership
GSK GP1 Ltd
GSK LP Ltd
Berkeley Square Pension Trustee Company Ltd acting
\n
on behalf of the GSK Pension Scheme
\n
GSK (No. 2) Scottish Limited Partnership
GSK GP1 Ltd
GSK LP Ltd
Berkeley Square Pension Trustee Company Ltd acting
\n
on behalf of the GSK Pension Fund
\n
GSK (No. 3) Scottish Limited Partnership
GSK GP2 Ltd
GSK LP Ltd
SmithKline Beecham Pension Plan Trustee Ltd acting on
\n
behalf of the SmithKline Beecham Pension Plan
\n
Under each of the SLP partnership agreements, the limited partners have no involvement in the management of the business
\n
and shall not take any part in the control of SLP. The general partner (in all cases, controlled by GSK plc) is responsible for the
\n
management and control of each SLP and, as such, each SLP is consolidated into the results of the Group. Each SLP therefore
\n
takes advantage of the exemption in Regulation 7 of The Partnership (Accounts) Regulations 2008 Act to not prepare and deliver
\n
audited accounts to the UK registrar.
\n
Under the SLP partnership agreement, distributions will be made from partnership income to the de\ufb01ned bene\ufb01t pension schemes
\n
if equivalent payments have not already been made to the three de\ufb01ned bene\ufb01t pension schemes by another GSK entity. To date,
\n
\u00a3735 million has been paid to the de\ufb01ned bene\ufb01t pension schemes by GSK under this structure and once contributions under this
\n
structure reach \u00a31,080 million, the de\ufb01ned bene\ufb01t pension schemes interests\u2019 in the SLPs ends. The remaining economic interest in
\n
the SLPs will be held by GSK LP Ltd, a 100% owned subsidiary of GSK plc. At 31 December 2022, \u00a3345 million of these additional
\n
contributions remains to be paid.
\n
Employer contributions for 2023, excluding special funding contributions stated above, are estimated to be approximately
\n
\u00a3350 million in respect of de\ufb01ned bene\ufb01t pension schemes and \u00a3100 million in respect of post-retirement bene\ufb01ts.
\n
Pensions
\n
Post-retirement
\n
bene\ufb01ts
\n
Movements in de\ufb01ned bene\ufb01t obligations
\n
UK
\n
\u00a3m
\n
US
\n
\u00a3m
\n
Rest of World
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Group
\n
\u00a3m
\n
Obligations at 1 January 2020
(13,293)
(3,506)
(3,554)
(20,353)
(1,418)
\n
Exchange adjustments
\u2013
118
(188)
(70)
36
\n
Disposals
\u2013
\u2013
\u2013
\u2013
9
\n
Service cost
(61)
(83)
(147)
(291)
(36)
\n
Past service cost
(98)
56
(1)
(43)
55
\n
Interest cost
(259)
(110)
(39)
(408)
(39)
\n
Settlements and curtailments
\u2013
\u2013
38
38
7
\n
Remeasurement
(785)
(168)
(208)
(1,161)
(82)
\n
Scheme participants\u2019 contributions
(3)
\u2013
(18)
(21)
(18)
\n
Bene\ufb01ts paid
641
248
110
999
123
\n
Obligations at 31 December 2020
(13,858)
(3,445)
(4,007)
(21,310)
(1,363)
\n
Exchange adjustments
\u2013
(40)
258
218
4
\n
Service cost
(56)
(9)
(151)
(216)
(29)
\n
Past service cost
(28)
(2)
25
(5)
(12)
\n
Interest cost
(190)
(76)
(23)
(289)
(26)
\n
Settlements and curtailments
\u2013
\u2013
17
17
\u2013
\n
Remeasurement
218
57
164
439
78
\n
Scheme participants\u2019 contributions
(3)
\u2013
(24)
(27)
(15)
\n
Bene\ufb01ts paid
618
267
97
982
120
\n
Obligations at 31 December 2021
(13,299)
(3,248)
(3,644)
(20,191)
(1,243)
\n
Exchange adjustments
\u2013
(371)
(124)
(495)
(125)
\n
Service cost
(13)
(7)
(126)
(146)
(22)
\n
Past service cost
(6)
\u2013
\u2013
(6)
\u2013
\n
Interest cost
(260)
(91)
(37)
(388)
(32)
\n
Settlements and curtailments
\u2013
\u2013
29
29
\u2013
\n
Remeasurement
3,812
360
839
5,011
228
\n
Scheme participants\u2019 contributions
\u2013
\u2013
(15)
(15)
(18)
\n
Transfer to assets held for sale/distribution
\u2013
\u2013
621
621
83
\n
Bene\ufb01ts paid
649
326
105
1,080
135
\n
Obligations at 31 December 2022
(9,117)
(3,031)
(2,352)
(14,500)
(994)
\n
\n
\n
\n
\n\n
The de\ufb01ned bene\ufb01t pension obligation is analysed as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Funded
(13,887)
(19,419)
(20,504)
\n
Unfunded
(613)
(772)
(806)
\n
(14,500)
(20,191)
(21,310)
\n
The liability for the US post-retirement healthcare scheme has been assessed using the same assumptions as for the US pension
\n
scheme, together with the assumption for future medical in\ufb02ation of 7% (2021: 6.25%) in 2022, grading down to 5% in 2031 and
\n
thereafter. At 31 December 2022, the US post-retirement healthcare scheme obligation was \u00a3870 million (2021: \u00a31,059 million;
\n
2020: \u00a31,124 million). Post-retirement bene\ufb01ts are unfunded.
\n
The movement in the net de\ufb01ned bene\ufb01t liability is as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
At 1 January
(1,129)
(2,104)
(1,921)
\n
Exchange adjustments
(87)
65
(18)
\n
Service cost
(146)
(216)
(291)
\n
Past service cost
(6)
(5)
(43)
\n
Interest cost
(18)
(27)
(36)
\n
Settlements and curtailments
21
10
18
\n
Remeasurements:
\n
Return on plan assets, excluding amounts included in interest
(5,883)
424
1,056
\n
(Loss)/gain from change in demographic assumptions
92
(62)
69
\n
Gain/(loss) from change in \ufb01nancial assumptions
5,868
716
(1,340)
\n
Experience (loss)/gain
(949)
(215)
110
\n
Employer contributions
919
312
313
\n
Transfer to assets held for sale/distribution
(3)
\u2013
\u2013
\n
Expenses
(35)
(27)
(21)
\n
At 31 December
(1,356)
(1,129)
(2,104)
\n
The remeasurements included within post-retirement bene\ufb01ts are detailed below:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Gain from change in demographic assumptions
21
19
7
\n
Gain/(loss) from change in \ufb01nancial assumptions
219
35
(93)
\n
Experience gains
(12)
24
4
\n
228
78
(82)
\n
The de\ufb01ned bene\ufb01t pension obligation analysed by membership category is as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Active
1,390
4,196
4,660
\n
Retired
8,540
11,115
11,257
\n
Deferred
4,570
4,880
5,393
\n
14,500
20,191
21,310
\n
The post-retirement bene\ufb01t obligation analysed by membership category is as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Active
306
494
551
\n
Retired
688
748
808
\n
Deferred
\u2013
1
4
\n
994
1,243
1,363
\n
The weighted average duration of the de\ufb01ned bene\ufb01t obligation is as follows:
\n
2022
\n
years
\n
2021
\n
years
\n
2020
\n
years
\n
Pension bene\ufb01ts
12
15
16
\n
Post-retirement bene\ufb01ts
10
12
12
\n
(1)
Membership numbers are not restated as the disclosure relates to the post-retirement bene\ufb01t obligations.
\n
\n
\n
\n\n
Sensitivity analysis
\n
The effect of changes in assumptions used on the bene\ufb01t obligations and on the 2023 annual de\ufb01ned bene\ufb01t pension and
\n
post-retirement costs are detailed below. This information has been determined by taking into account the duration of the
\n
liabilities and the overall pro\ufb01le of the plan memberships.
\n
0.25%
\n
increase
\n
\u00a3m
\n
0.25%
\n
decrease
\n
\u00a3m
\n
Discount rate
\n
(Decrease)/increase in annual pension cost
(19)
19
\n
Increase/(decrease) in annual post-retirement bene\ufb01ts cost
1
(1)
\n
(Decrease)/increase in pension obligation
(400)
424
\n
(Decrease)/increase in post-retirement bene\ufb01ts obligation
(21)
21
\n
0.75%
\n
increase
\n
\u00a3m
\n
0.75%
\n
decrease
\n
\u00a3m
\n
(Decrease)/increase in annual pension cost
(60)
52
\n
Increase/(decrease) in annual post-retirement bene\ufb01ts cost
2
(3)
\n
(Decrease)/increase in pension obligation
(1,147)
1,341
\n
(Decrease)/increase in post-retirement bene\ufb01ts obligation
(61)
70
\n
0.25%
\n
increase
\n
\u00a3m
\n
0.25%
\n
decrease
\n
\u00a3m
\n
In\ufb02ation rate
\n
Increase/(decrease) in annual pension cost
17
(15)
\n
Increase/(decrease) in pension obligation
301
(290)
\n
0.75%
\n
increase
\n
\u00a3m
\n
0.75%
\n
decrease
\n
\u00a3m
\n
Increase/(decrease) in annual pension cost
50
(43)
\n
Increase/(decrease) in pension obligation
945
(827)
\n
1 year
\n
increase
\n
\u00a3m
\n
Life expectancy
\n
Increase in annual pension cost
22
\n
Increase in annual post-retirement bene\ufb01ts cost
2
\n
Increase in pension obligation
432
\n
Increase in post-retirement bene\ufb01ts obligation
34
\n
1%
\n
increase
\n
\u00a3m
\n
Rate of future healthcare in\ufb02ation
\n
Increase in annual post-retirement bene\ufb01ts cost
1
\n
Increase in post-retirement bene\ufb01ts obligation
25",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f31233": {
"value": "32. Other provisions
Legal
\n
and other
\n
disputes
\n
\u00a3m
\n
Major
\n
restructuring
\n
programmes
\n
\u00a3m
\n
Employee
\n
related
\n
provisions
\n
\u00a3m
\n
Other
\n
provisions
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At 1 January 2022
196
652
322
301
1,471
\n
Exchange adjustments
28
21
16
20
85
\n
Charge for the year
145
144
125
141
555
\n
Reversed unused
(12)
(131)
(40)
(78)
(261)
\n
Unwinding of discount
3
1
\u2013
\u2013
4
\n
Utilised
(126)
(277)
(91)
(45)
(539)
\n
Transfer to assets held for sale/distribution
(16)
(60)
(22)
(21)
(119)
\n
Additions through business combinations
\u2013
15
\u2013
8
23
\n
Reclassi\ufb01cations and other movements
\u2013
(8)
(1)
(20)
(29)
\n
Transfer to Pension obligations
\u2013
(6)
\u2013
\u2013
(6)
\n
At 31 December 2022
218
351
309
306
1,184
\n
To be settled within one year
190
259
75
128
652
\n
To be settled after one year
28
92
234
178
532
\n
At 31 December 2022
218
351
309
306
1,184
\n
Legal and other disputes
\n
The Group is involved in a substantial number of legal and
\n
other disputes, including noti\ufb01cation of possible claims, as set
\n
out in Note 47, \u2018Legal proceedings\u2019. Provisions for legal and
\n
other disputes include amounts relating to product liability,
\n
anti-trust, government investigations, contract terminations
\n
and self insurance.
\n
The Group may become involved in signi\ufb01cant legal
\n
proceedings in respect of which it is not possible to
\n
meaningfully assess whether the outcome will result in a
\n
probable out\ufb02ow, or to quantify or reliably estimate the liability,
\n
if any, that could result from ultimate resolution of the
\n
proceedings. In these cases, the Group would provide
\n
appropriate disclosures about such cases, but no provision
\n
would be made.
\n
The net charge for the year of \u00a3133 million (including reversals
\n
and estimated insurance recoveries) primarily related to
\n
provisions for product liability cases, commercial disputes and
\n
various other government investigations.
\n
The discount on the provision is \u00a33 million in 2022 (2021: \u00a3nil).
\n
The discount was calculated using risk-adjusted projected
\n
cash \ufb02ows and risk-free rates of return.
\n
In respect of product liability claims related to certain
\n
products, provision is made when there is suf\ufb01cient history of
\n
claims made and settlements to enable management to make
\n
a reliable estimate of the provision required to cover
\n
unasserted claims. The ultimate liability for such matters may
\n
vary from the amounts provided and is dependent upon the
\n
outcome of litigation proceedings, investigations and possible
\n
settlement negotiations.
\n
The Group\u2019s position could change over time, and, therefore,
\n
there can be no assurance that any losses that result from the
\n
outcome of any legal proceedings will not exceed by a
\n
material amount the amount of the provisions reported in the
\n
Group\u2019s \ufb01nancial accounts.
\n
It is in the nature of the Group\u2019s business that a number of
\n
these matters may be the subject of negotiation and litigation
\n
over many years. Litigation proceedings, including the various
\n
appeal procedures, often take many years to reach resolution,
\n
and out-of-court settlement discussions can also often be
\n
protracted. Indemni\ufb01ed disputes will result in a provision
\n
charge and a corresponding receivable.
\n
The Group is in potential settlement discussions in a number
\n
of the disputes for which amounts have been provided and,
\n
based on its current assessment of the progress of these
\n
disputes, estimates that \u00a3190 million of the amount provided
\n
at 31 December 2022 will be settled within one year. At
\n
31 December 2022, it was expected that \u00a3nil (2021: \u00a34 million)
\n
of the provision made for legal and other disputes will be
\n
reimbursed by third parties. For a discussion of legal issues,
\n
See Note 47, \u2018Legal proceedings\u2019.
\n
Major restructuring programmes
\n
During 2022, the Group had two major restructuring
\n
programmes in progress: the Separation Preparation
\n
programme which focused on preparing for the separation of
\n
GSK into two new companies and the Signi\ufb01cant Acquisitions
\n
programme which is focused on the integration of recent
\n
acquisitions.
\n
Restructuring provisions primarily include severance costs
\n
when management has made a formal decision to eliminate
\n
certain positions and this has been communicated to the
\n
groups of employees affected and appropriate consultation
\n
procedures completed, where appropriate. No provision is
\n
made for staff severance payments that are paid immediately.
\n
The discount on the provisions increased by \u00a31 million in 2022
\n
(2021: increased by \u00a32 million).
\n
Pension augmentation includes \u00a36 million relating to the
\n
de\ufb01ned bene\ufb01t plan arising from staff redundancies,
as shown
\n
in Note 30, \u2018Pensions and other post-employment bene\ufb01ts\u2019.
\n
\n
\n
\n
Employee related provisions
\n
Employee related provisions include obligations for certain
\n
medical bene\ufb01ts to disabled employees and their spouses in
\n
the US.
\n
At 31 December 2022, the provision for these bene\ufb01ts
\n
amounted to \u00a366 million (2021: \u00a369 million). Other employee
\n
bene\ufb01ts re\ufb02ect a variety of provisions for severance costs,
\n
jubilee awards and other long-service bene\ufb01ts.
\n
Given the nature of these provisions, the amounts are likely to
\n
be settled over many years.
\n
Other provisions
\n
Included in other provisions are provisions for onerous
\n
contracts, insurance provisions and a number of other
\nprovisions including vehicle insurance and regulatory matters.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProvisionsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f31234": {
"value": "32. Other provisions
Legal
\n
and other
\n
disputes
\n
\u00a3m
\n
Major
\n
restructuring
\n
programmes
\n
\u00a3m
\n
Employee
\n
related
\n
provisions
\n
\u00a3m
\n
Other
\n
provisions
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At 1 January 2022
196
652
322
301
1,471
\n
Exchange adjustments
28
21
16
20
85
\n
Charge for the year
145
144
125
141
555
\n
Reversed unused
(12)
(131)
(40)
(78)
(261)
\n
Unwinding of discount
3
1
\u2013
\u2013
4
\n
Utilised
(126)
(277)
(91)
(45)
(539)
\n
Transfer to assets held for sale/distribution
(16)
(60)
(22)
(21)
(119)
\n
Additions through business combinations
\u2013
15
\u2013
8
23
\n
Reclassi\ufb01cations and other movements
\u2013
(8)
(1)
(20)
(29)
\n
Transfer to Pension obligations
\u2013
(6)
\u2013
\u2013
(6)
\n
At 31 December 2022
218
351
309
306
1,184
\n
To be settled within one year
190
259
75
128
652
\n
To be settled after one year
28
92
234
178
532
\n
At 31 December 2022
218
351
309
306
1,184
\n
Legal and other disputes
\n
The Group is involved in a substantial number of legal and
\n
other disputes, including noti\ufb01cation of possible claims, as set
\n
out in Note 47, \u2018Legal proceedings\u2019. Provisions for legal and
\n
other disputes include amounts relating to product liability,
\n
anti-trust, government investigations, contract terminations
\n
and self insurance.
\n
The Group may become involved in signi\ufb01cant legal
\n
proceedings in respect of which it is not possible to
\n
meaningfully assess whether the outcome will result in a
\n
probable out\ufb02ow, or to quantify or reliably estimate the liability,
\n
if any, that could result from ultimate resolution of the
\n
proceedings. In these cases, the Group would provide
\n
appropriate disclosures about such cases, but no provision
\n
would be made.
\n
The net charge for the year of \u00a3133 million (including reversals
\n
and estimated insurance recoveries) primarily related to
\n
provisions for product liability cases, commercial disputes and
\n
various other government investigations.
\n
The discount on the provision is \u00a33 million in 2022 (2021: \u00a3nil).
\n
The discount was calculated using risk-adjusted projected
\n
cash \ufb02ows and risk-free rates of return.
\n
In respect of product liability claims related to certain
\n
products, provision is made when there is suf\ufb01cient history of
\n
claims made and settlements to enable management to make
\n
a reliable estimate of the provision required to cover
\n
unasserted claims. The ultimate liability for such matters may
\n
vary from the amounts provided and is dependent upon the
\n
outcome of litigation proceedings, investigations and possible
\n
settlement negotiations.
\n
The Group\u2019s position could change over time, and, therefore,
\n
there can be no assurance that any losses that result from the
\n
outcome of any legal proceedings will not exceed by a
\n
material amount the amount of the provisions reported in the
\n
Group\u2019s \ufb01nancial accounts.
\n
It is in the nature of the Group\u2019s business that a number of
\n
these matters may be the subject of negotiation and litigation
\n
over many years. Litigation proceedings, including the various
\n
appeal procedures, often take many years to reach resolution,
\n
and out-of-court settlement discussions can also often be
\n
protracted. Indemni\ufb01ed disputes will result in a provision
\n
charge and a corresponding receivable.
\n
The Group is in potential settlement discussions in a number
\n
of the disputes for which amounts have been provided and,
\n
based on its current assessment of the progress of these
\n
disputes, estimates that \u00a3190 million of the amount provided
\n
at 31 December 2022 will be settled within one year. At
\n
31 December 2022, it was expected that \u00a3nil (2021: \u00a34 million)
\n
of the provision made for legal and other disputes will be
\n
reimbursed by third parties. For a discussion of legal issues,
\n
See Note 47, \u2018Legal proceedings\u2019.
\n
Major restructuring programmes
\n
During 2022, the Group had two major restructuring
\n
programmes in progress: the Separation Preparation
\n
programme which focused on preparing for the separation of
\n
GSK into two new companies and the Signi\ufb01cant Acquisitions
\n
programme which is focused on the integration of recent
\n
acquisitions.
\n
Restructuring provisions primarily include severance costs
\n
when management has made a formal decision to eliminate
\n
certain positions and this has been communicated to the
\n
groups of employees affected and appropriate consultation
\n
procedures completed, where appropriate. No provision is
\n
made for staff severance payments that are paid immediately.
\n
The discount on the provisions increased by \u00a31 million in 2022
\n
(2021: increased by \u00a32 million).
\n
Pension augmentation includes \u00a36 million relating to the
\n
de\ufb01ned bene\ufb01t plan arising from staff redundancies,
as shown
\n
in Note 30, \u2018Pensions and other post-employment bene\ufb01ts\u2019.
Employee related provisions
\n
Employee related provisions include obligations for certain
\n
medical bene\ufb01ts to disabled employees and their spouses in
\n
the US.
\n
At 31 December 2022, the provision for these bene\ufb01ts
\n
amounted to \u00a366 million (2021: \u00a369 million). Other employee
\n
bene\ufb01ts re\ufb02ect a variety of provisions for severance costs,
\n
jubilee awards and other long-service bene\ufb01ts.
\n
Given the nature of these provisions, the amounts are likely to
\n
be settled over many years.
\n
Other provisions
\n
Included in other provisions are provisions for onerous
\n
contracts, insurance provisions and a number of other
\n
provisions including vehicle insurance and regulatory matters.
33. Contingent consideration liabilities
\n
The consideration for certain acquisitions includes amounts contingent on future events such as development milestones or sales
\n
performance. The Group has provided for the fair value of this contingent consideration as follows:
\n
Shionogi-
\n
ViiV
\n
Healthcare
\n
\u00a3m
\n
Af\ufb01nivax
\n
\u00a3m
\n
Novartis
\n
Vaccines
\n
\u00a3m
\n
Other
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At 1 January 2020
5,103
\u2013
339
37
5,479
\n
Remeasurement through income statement
1,114
\u2013
161
\u2013
1,275
\n
Cash payments: operating cash \ufb02ows
(751)
\u2013
(14)
\u2013
(765)
\n
Cash payments: investing activities
(107)
\u2013
(9)
(4)
(120)
\n
At 31 December 2021
5,359
\u2013
477
33
5,869
\n
Remeasurement through income statement
1,026
\u2013
32
5
1,063
\n
Cash payments: operating cash \ufb02ows
(721)
\u2013
(21)
\u2013
(742)
\n
Cash payments: investing activities
(105)
\u2013
(9)
\u2013
(114)
\n
At 31 December 2021
5,559
\u2013
479
38
6,076
\n
Remeasurement through income statement
1,431
17
231
(34)
1,645
\n
Exchange movement through reserves
\u2013
2
\u2013
\u2013
2
\n
Initial recognition from business combinations
\u2013
482
\u2013
\u2013
482
\n
Cash payments: operating cash \ufb02ows
(1,031)
\u2013
(27)
\u2013
(1,058)
\n
Cash payments: investing activities
(69)
\u2013
(10)
\u2013
(79)
\n
At 31 December 2022
5,890
501
673
4
7,068
\n
Of the contingent consideration payable at 31 December 2022, \u00a31,289 million (2021: \u00a3958 million) is expected to be paid within
\n
one year.
\n
The consideration payable for the acquisition of the Shionogi-ViiV Healthcare joint venture, Af\ufb01nivax and the Novartis Vaccines
\n
business are expected to be paid over a number of years. As a result, the total estimated liabilities are discounted to their present
\n
values, shown above. The Shionogi-ViiV Healthcare contingent consideration liability is discounted at 8% (2021: 8%), the Af\ufb01nivax
\n
contingent consideration liability is discounted at 9.9% and the Novartis Vaccines contingent consideration liability is discounted
\n
at 7.5% (2021: 7.5%) for commercialised products and at 8.5% (2021: 8.5%) for pipeline assets.
\n
The Shionogi-ViiV Healthcare and Novartis Vaccines contingent consideration liabilities are calculated principally based on the
\n
forecast sales performance of speci\ufb01ed products over the lives of those products.
\n
The Af\ufb01nivax contingent consideration is based upon two potential milestone payments, each of $0.6 billion (\u00a30.5 billion) which
\n
will be paid if certain pediatric clinical development milestones are achieved.
\n
The table below shows on an indicative basis the income statement and balance sheet sensitivity to reasonably possible changes
\n
in key inputs to the valuations of the contingent consideration liabilities.
\n
2022
2021
\n
Increase/(decrease) in \ufb01nancial liability
\n
and loss/(gain) in Income statement
\n
Shionogi-
\n
ViiV
\n
Healthcare
\n
\u00a3m
\n
Af\ufb01nivax
\n
\u00a3m
\n
Novartis
\n
Vaccines
\n
\u00a3m
\n
Shionogi-
\n
ViiV
\n
Healthcare
\n
\u00a3m
\n
Novartis
\n
Vaccines
\n
\u00a3m
\n
10% increase in sales forecasts*
556
n/a
103
506
61
\n
15% increase in sales forecasts*
834
n/a
154
759
92
\n
10% decrease in sales forecasts*
(555)
n/a
(103)
(506)
(57)
\n
15% decrease in sales forecasts*
(833)
n/a
(153)
(759)
(79)
\n
1% increase in discount rate
(199)
(7)
(55)
(198)
(38)
\n
1.5% increase in discount rate
(292)
(10)
(80)
(286)
(55)
\n
1% decrease in discount rate
214
7
65
213
45
\n
1.5% decrease in discount rate
328
11
101
319
70
\n
10 cent appreciation of US Dollar
411
45
22
343
4
\n
15 cent appreciation of US Dollar
645
71
36
495
10
\n
10 cent depreciation of US Dollar
(347)
(38)
(19)
(299)
(2)
\n
15 cent depreciation of US Dollar
(501)
(56)
(27)
(398)
(3)
\n
10 cent appreciation of Euro
109
n/a
23
102
19
\n
15 cent appreciation of Euro
171
n/a
36
160
30
\n
10 cent depreciation of Euro
(91)
n/a
(19)
(85)
(16)
\n
15 cent depreciation of Euro
(130)
n/a
(28)
(124)
(23)
\n
10% increase in probability of milestone success
n/a
82
20
n/a
17
\n
10% decrease in probability of milestone success
n/a
(82)
(10)
n/a
(8)
\n
*
The sales forecast is for ViiV Healthcare sales only in respect of the Shionogi-ViiV Healthcare contingent consideration.
\n
An explanation of the accounting for ViiV Healthcare is set out on page 71.
35. Contingent liabilities
\n
At 31 December 2022, contingent liabilities where GSK has a present obligation as a result of a past event, comprising guarantees
\n
and other items arising in the normal course of business, amounted to \u00a358 million (2021: \u00a3126 million). At 31 December 2022, \u00a30.5
\n
million (2021: \u00a30.2 million) of \ufb01nancial assets were pledged as collateral for contingent liabilities. Provision is made for the outcome
\n
of tax, legal and other disputes where it is both probable that the Group will suffer an out\ufb02ow of funds and it is possible to make a
\n
reliable estimate of that out\ufb02ow. If it is not possible to meaningfully assess whether the outcomes will result in a probable out\ufb02ow,
\n
or to quantify or reliably estimate the liability, if any, no provision is recorded. Descriptions of the signi\ufb01cant legal and other
\n
disputes to which the Group is a party are set out in Note 47, \u2018Legal proceedings\u2019.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f31469": {
"value": "
33. Contingent consideration liabilities
\n
The consideration for certain acquisitions includes amounts contingent on future events such as development milestones or sales
\n
performance. The Group has provided for the fair value of this contingent consideration as follows:
\n
Shionogi-
\n
ViiV
\n
Healthcare
\n
\u00a3m
\n
Af\ufb01nivax
\n
\u00a3m
\n
Novartis
\n
Vaccines
\n
\u00a3m
\n
Other
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At 1 January 2020
5,103
\u2013
339
37
5,479
\n
Remeasurement through income statement
1,114
\u2013
161
\u2013
1,275
\n
Cash payments: operating cash \ufb02ows
(751)
\u2013
(14)
\u2013
(765)
\n
Cash payments: investing activities
(107)
\u2013
(9)
(4)
(120)
\n
At 31 December 2021
5,359
\u2013
477
33
5,869
\n
Remeasurement through income statement
1,026
\u2013
32
5
1,063
\n
Cash payments: operating cash \ufb02ows
(721)
\u2013
(21)
\u2013
(742)
\n
Cash payments: investing activities
(105)
\u2013
(9)
\u2013
(114)
\n
At 31 December 2021
5,559
\u2013
479
38
6,076
\n
Remeasurement through income statement
1,431
17
231
(34)
1,645
\n
Exchange movement through reserves
\u2013
2
\u2013
\u2013
2
\n
Initial recognition from business combinations
\u2013
482
\u2013
\u2013
482
\n
Cash payments: operating cash \ufb02ows
(1,031)
\u2013
(27)
\u2013
(1,058)
\n
Cash payments: investing activities
(69)
\u2013
(10)
\u2013
(79)
\n
At 31 December 2022
5,890
501
673
4
7,068
\n
Of the contingent consideration payable at 31 December 2022, \u00a31,289 million (2021: \u00a3958 million) is expected to be paid within
\n
one year.
\n
The consideration payable for the acquisition of the Shionogi-ViiV Healthcare joint venture, Af\ufb01nivax and the Novartis Vaccines
\n
business are expected to be paid over a number of years. As a result, the total estimated liabilities are discounted to their present
\n
values, shown above. The Shionogi-ViiV Healthcare contingent consideration liability is discounted at 8% (2021: 8%), the Af\ufb01nivax
\n
contingent consideration liability is discounted at 9.9% and the Novartis Vaccines contingent consideration liability is discounted
\n
at 7.5% (2021: 7.5%) for commercialised products and at 8.5% (2021: 8.5%) for pipeline assets.
\n
The Shionogi-ViiV Healthcare and Novartis Vaccines contingent consideration liabilities are calculated principally based on the
\n
forecast sales performance of speci\ufb01ed products over the lives of those products.
\n
The Af\ufb01nivax contingent consideration is based upon two potential milestone payments, each of $0.6 billion (\u00a30.5 billion) which
\n
will be paid if certain pediatric clinical development milestones are achieved.
\n
The table below shows on an indicative basis the income statement and balance sheet sensitivity to reasonably possible changes
\n
in key inputs to the valuations of the contingent consideration liabilities.
\n
2022
2021
\n
Increase/(decrease) in \ufb01nancial liability
\n
and loss/(gain) in Income statement
\n
Shionogi-
\n
ViiV
\n
Healthcare
\n
\u00a3m
\n
Af\ufb01nivax
\n
\u00a3m
\n
Novartis
\n
Vaccines
\n
\u00a3m
\n
Shionogi-
\n
ViiV
\n
Healthcare
\n
\u00a3m
\n
Novartis
\n
Vaccines
\n
\u00a3m
\n
10% increase in sales forecasts*
556
n/a
103
506
61
\n
15% increase in sales forecasts*
834
n/a
154
759
92
\n
10% decrease in sales forecasts*
(555)
n/a
(103)
(506)
(57)
\n
15% decrease in sales forecasts*
(833)
n/a
(153)
(759)
(79)
\n
1% increase in discount rate
(199)
(7)
(55)
(198)
(38)
\n
1.5% increase in discount rate
(292)
(10)
(80)
(286)
(55)
\n
1% decrease in discount rate
214
7
65
213
45
\n
1.5% decrease in discount rate
328
11
101
319
70
\n
10 cent appreciation of US Dollar
411
45
22
343
4
\n
15 cent appreciation of US Dollar
645
71
36
495
10
\n
10 cent depreciation of US Dollar
(347)
(38)
(19)
(299)
(2)
\n
15 cent depreciation of US Dollar
(501)
(56)
(27)
(398)
(3)
\n
10 cent appreciation of Euro
109
n/a
23
102
19
\n
15 cent appreciation of Euro
171
n/a
36
160
30
\n
10 cent depreciation of Euro
(91)
n/a
(19)
(85)
(16)
\n
15 cent depreciation of Euro
(130)
n/a
(28)
(124)
(23)
\n
10% increase in probability of milestone success
n/a
82
20
n/a
17
\n
10% decrease in probability of milestone success
n/a
(82)
(10)
n/a
(8)
\n
*
The sales forecast is for ViiV Healthcare sales only in respect of the Shionogi-ViiV Healthcare contingent consideration.
\n
An explanation of the accounting for ViiV Healthcare is set out on page 71.
35. Contingent liabilities
\n
At 31 December 2022, contingent liabilities where GSK has a present obligation as a result of a past event, comprising guarantees
\n
and other items arising in the normal course of business, amounted to \u00a358 million (2021: \u00a3126 million). At 31 December 2022, \u00a30.5
\n
million (2021: \u00a30.2 million) of \ufb01nancial assets were pledged as collateral for contingent liabilities. Provision is made for the outcome
\n
of tax, legal and other disputes where it is both probable that the Group will suffer an out\ufb02ow of funds and it is possible to make a
\n
reliable estimate of that out\ufb02ow. If it is not possible to meaningfully assess whether the outcomes will result in a probable out\ufb02ow,
\n
or to quantify or reliably estimate the liability, if any, no provision is recorded. Descriptions of the signi\ufb01cant legal and other
\n
disputes to which the Group is a party are set out in Note 47, \u2018Legal proceedings\u2019.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f31470": {
"value": "
33. Contingent consideration liabilities
\n
The consideration for certain acquisitions includes amounts contingent on future events such as development milestones or sales
\n
performance. The Group has provided for the fair value of this contingent consideration as follows:
\n
Shionogi-
\n
ViiV
\n
Healthcare
\n
\u00a3m
\n
Af\ufb01nivax
\n
\u00a3m
\n
Novartis
\n
Vaccines
\n
\u00a3m
\n
Other
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At 1 January 2020
5,103
\u2013
339
37
5,479
\n
Remeasurement through income statement
1,114
\u2013
161
\u2013
1,275
\n
Cash payments: operating cash \ufb02ows
(751)
\u2013
(14)
\u2013
(765)
\n
Cash payments: investing activities
(107)
\u2013
(9)
(4)
(120)
\n
At 31 December 2021
5,359
\u2013
477
33
5,869
\n
Remeasurement through income statement
1,026
\u2013
32
5
1,063
\n
Cash payments: operating cash \ufb02ows
(721)
\u2013
(21)
\u2013
(742)
\n
Cash payments: investing activities
(105)
\u2013
(9)
\u2013
(114)
\n
At 31 December 2021
5,559
\u2013
479
38
6,076
\n
Remeasurement through income statement
1,431
17
231
(34)
1,645
\n
Exchange movement through reserves
\u2013
2
\u2013
\u2013
2
\n
Initial recognition from business combinations
\u2013
482
\u2013
\u2013
482
\n
Cash payments: operating cash \ufb02ows
(1,031)
\u2013
(27)
\u2013
(1,058)
\n
Cash payments: investing activities
(69)
\u2013
(10)
\u2013
(79)
\n
At 31 December 2022
5,890
501
673
4
7,068
\n
Of the contingent consideration payable at 31 December 2022, \u00a31,289 million (2021: \u00a3958 million) is expected to be paid within
\n
one year.
\n
The consideration payable for the acquisition of the Shionogi-ViiV Healthcare joint venture, Af\ufb01nivax and the Novartis Vaccines
\n
business are expected to be paid over a number of years. As a result, the total estimated liabilities are discounted to their present
\n
values, shown above. The Shionogi-ViiV Healthcare contingent consideration liability is discounted at 8% (2021: 8%), the Af\ufb01nivax
\n
contingent consideration liability is discounted at 9.9% and the Novartis Vaccines contingent consideration liability is discounted
\n
at 7.5% (2021: 7.5%) for commercialised products and at 8.5% (2021: 8.5%) for pipeline assets.
\n
The Shionogi-ViiV Healthcare and Novartis Vaccines contingent consideration liabilities are calculated principally based on the
\n
forecast sales performance of speci\ufb01ed products over the lives of those products.
\n
The Af\ufb01nivax contingent consideration is based upon two potential milestone payments, each of $0.6 billion (\u00a30.5 billion) which
\n
will be paid if certain pediatric clinical development milestones are achieved.
\n
The table below shows on an indicative basis the income statement and balance sheet sensitivity to reasonably possible changes
\n
in key inputs to the valuations of the contingent consideration liabilities.
\n
2022
2021
\n
Increase/(decrease) in \ufb01nancial liability
\n
and loss/(gain) in Income statement
\n
Shionogi-
\n
ViiV
\n
Healthcare
\n
\u00a3m
\n
Af\ufb01nivax
\n
\u00a3m
\n
Novartis
\n
Vaccines
\n
\u00a3m
\n
Shionogi-
\n
ViiV
\n
Healthcare
\n
\u00a3m
\n
Novartis
\n
Vaccines
\n
\u00a3m
\n
10% increase in sales forecasts*
556
n/a
103
506
61
\n
15% increase in sales forecasts*
834
n/a
154
759
92
\n
10% decrease in sales forecasts*
(555)
n/a
(103)
(506)
(57)
\n
15% decrease in sales forecasts*
(833)
n/a
(153)
(759)
(79)
\n
1% increase in discount rate
(199)
(7)
(55)
(198)
(38)
\n
1.5% increase in discount rate
(292)
(10)
(80)
(286)
(55)
\n
1% decrease in discount rate
214
7
65
213
45
\n
1.5% decrease in discount rate
328
11
101
319
70
\n
10 cent appreciation of US Dollar
411
45
22
343
4
\n
15 cent appreciation of US Dollar
645
71
36
495
10
\n
10 cent depreciation of US Dollar
(347)
(38)
(19)
(299)
(2)
\n
15 cent depreciation of US Dollar
(501)
(56)
(27)
(398)
(3)
\n
10 cent appreciation of Euro
109
n/a
23
102
19
\n
15 cent appreciation of Euro
171
n/a
36
160
30
\n
10 cent depreciation of Euro
(91)
n/a
(19)
(85)
(16)
\n
15 cent depreciation of Euro
(130)
n/a
(28)
(124)
(23)
\n
10% increase in probability of milestone success
n/a
82
20
n/a
17
\n
10% decrease in probability of milestone success
n/a
(82)
(10)
n/a
(8)
\n
*
The sales forecast is for ViiV Healthcare sales only in respect of the Shionogi-ViiV Healthcare contingent consideration.
\n
An explanation of the accounting for ViiV Healthcare is set out on page 71.
35. Contingent liabilities
\n
At 31 December 2022, contingent liabilities where GSK has a present obligation as a result of a past event, comprising guarantees
\n
and other items arising in the normal course of business, amounted to \u00a358 million (2021: \u00a3126 million). At 31 December 2022, \u00a30.5
\n
million (2021: \u00a30.2 million) of \ufb01nancial assets were pledged as collateral for contingent liabilities. Provision is made for the outcome
\n
of tax, legal and other disputes where it is both probable that the Group will suffer an out\ufb02ow of funds and it is possible to make a
\n
reliable estimate of that out\ufb02ow. If it is not possible to meaningfully assess whether the outcomes will result in a probable out\ufb02ow,
\n
or to quantify or reliably estimate the liability, if any, no provision is recorded. Descriptions of the signi\ufb01cant legal and other
\n
disputes to which the Group is a party are set out in Note 47, \u2018Legal proceedings\u2019.
\n
36. Commitments
\n
Contractual obligations and commitments
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Contracted for but not provided in the \ufb01nancial statements:
\n
Intangible assets
10,659
12,082
\n
Property, plant and equipment
743
616
\n
Investments
138
146
\n
Purchase commitments
161
484
\n
Pensions and post-retirement bene\ufb01ts
345
44
\n
Interest on loans
6,322
7,603
\n
Future \ufb01nance charges on leases
146
153
\n
Lease contracts that have not yet commenced
395
60
\n
18,909
21,188
\n
The commitments related to intangible assets include milestone payments, which are dependent on successful clinical
\n
development or on meeting speci\ufb01ed sales targets, and which represent the maximum that would be paid if all milestones,
\n
however unlikely, are achieved. The amounts are not risk-adjusted or discounted. The net decrease in intangible asset commitments
\n
in 2022 is mainly attributable to the termination of certain agreements, offset by a number of new R&D collaborations including
\n
collaborations with Spero Therapeutics, Inc., Wuxi Biologics Ireland Limited, SpringWorks Therapeutics, Inc. and Arrowhead
\n
Pharmaceuticals, Inc.
\n
In 2022, GSK reached an agreement with the trustees of the UK pension schemes to make additional contributions of \u00a31,080
\n
million, to eliminate the pension de\ufb01cit identi\ufb01ed at the 31 December 2020 actuarial funding valuation. Prior to the Consumer
\n
Healthcare demerger, GSK agreed to collateralise this commitment and accelerate funding with additional contributions
\n
(see Note 31). At 31 December 2022, \u00a3345 million of these additional contributions remained unpaid.
\n
The Group also has other commitments which principally relate to revenue payments to be made under licences and other
\n
alliances.
\n
Commitments in respect of future interest payable on loans are disclosed before taking into account the effect of interest rate
\n
swaps.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f31740": {
"value": "34. Other non-current liabilities
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Accruals
11
13
\n
Deferred income
83
85
\n
Other payables
805
823
\n
899
921
\nOther payables includes a number of employee-related liabilities including employee savings plans.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f31772": {
"value": "36. Commitments
Contractual obligations and commitments
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Contracted for but not provided in the \ufb01nancial statements:
\n
Intangible assets
10,659
12,082
\n
Property, plant and equipment
743
616
\n
Investments
138
146
\n
Purchase commitments
161
484
\n
Pensions and post-retirement bene\ufb01ts
345
44
\n
Interest on loans
6,322
7,603
\n
Future \ufb01nance charges on leases
146
153
\n
Lease contracts that have not yet commenced
395
60
\n
18,909
21,188
\n
The commitments related to intangible assets include milestone payments, which are dependent on successful clinical
\n
development or on meeting speci\ufb01ed sales targets, and which represent the maximum that would be paid if all milestones,
\n
however unlikely, are achieved. The amounts are not risk-adjusted or discounted. The net decrease in intangible asset commitments
\n
in 2022 is mainly attributable to the termination of certain agreements, offset by a number of new R&D collaborations including
\n
collaborations with Spero Therapeutics, Inc., Wuxi Biologics Ireland Limited, SpringWorks Therapeutics, Inc. and Arrowhead
\n
Pharmaceuticals, Inc.
\n
In 2022, GSK reached an agreement with the trustees of the UK pension schemes to make additional contributions of \u00a31,080
\n
million, to eliminate the pension de\ufb01cit identi\ufb01ed at the 31 December 2020 actuarial funding valuation. Prior to the Consumer
\n
Healthcare demerger, GSK agreed to collateralise this commitment and accelerate funding with additional contributions
\n
(see Note 31). At 31 December 2022, \u00a3345 million of these additional contributions remained unpaid.
\n
The Group also has other commitments which principally relate to revenue payments to be made under licences and other
\n
alliances.
\n
Commitments in respect of future interest payable on loans are disclosed before taking into account the effect of interest rate
\nswaps.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f31847": {
"value": "37. Share capital and share premium account
Share Consolidation
\n
Following completion of the Consumer Healthcare business demerger on 18 July 2022, GSK plc Ordinary shares were consolidated to
\n
maintain share price comparability before and after demerger. The consolidation was approved by GSK shareholders at a General
\n
Meeting held on 6 July 2022. Shareholders received 4 new Ordinary shares with a nominal value of 31\u00bc pence each for every 5 existing
\n
Ordinary share which had a nominal value of 25 pence each. Earnings per share, diluted earnings per share, adjusted earnings per
\n
share and dividends per share were retrospectively adjusted to re\ufb02ect the Share Consolidation in all the periods presented.
\n
Ordinary shares of 25p each pre-share consolidation
\n
Ordinary shares of 31\u00bcp each post-share consolidation
\n
Share
\n
premium
\n
Number
\u00a3m
\u00a3m
\n
Share capital issued and fully paid:
\n
At 1 January 2020
5,383,102,231
1,346
3,174
\n
Issued under employee share schemes
2,087,386
\u2013
29
\n
Ordinary shares acquired by ESOP Trusts
\u2013
\u2013
78
\n
At 31 December 2020
5,385,189,617
1,346
3,281
\n
Issued under employee share schemes
1,825,442
1
20
\n
Ordinary shares acquired by ESOP Trusts
\u2013
\u2013
\u2013
\n
At 31 December 2021
5,387,015,059
1,347
3,301
\n
Impact of share consolidation
(1,077,403,011)
\u2013
\u2013
\n
Issued under employee share schemes
1,731,293
\u2013
25
\n
Ordinary shares acquired by ESOP Trusts
\u2013
\u2013
114
\n
At 31 December 2022
4,311,343,341
1,347
3,440
\n
At 31 December 2022, of the issued share capital, 59,878,735 shares were held in the ESOP Trusts, 217,124,760 shares were held as
\n
Treasury shares and 4,034,339,846 shares were in free issue. All issued shares are fully paid and there are no shares authorised
\n
but not in issue. The nominal, carrying and market values of the shares held in the ESOP Trusts are disclosed in Note 45,
\n
\u2018Employee share schemes\u2019.
\n
38. Movements in equity
\n
Retained earnings and other reserves amounted to \u00a35,811 million at 31 December 2022 (2021: \u00a310,407 million; 2020: \u00a39,960 million)
\n
of which \u00a3463 million (2021: \u00a3476 million; 2020: \u00a3440 million) related to associates and joint ventures.
\n
The cumulative translation exchange in equity is as follows:
\n
Net translation exchange included in:
\n
Retained
\n
earnings
\n
\u00a3m
\n
Fair value
\n
reserve
\n
\u00a3m
\n
Non-
\n
controlling
\n
interests
\n
\u00a3m
\n
Total
\n
translation
\n
exchange
\n
\u00a3m
\n
At 1 January 2020
(524)
(1)
(127)
(652)
\n
Exchange movements on overseas net assets and net investment hedges
(51)
(8)
(34)
(93)
\n
Reclassi\ufb01cation of exchange movements on liquidation or disposal of overseas subsidiaries
\n
and associates
36
\u2013
\u2013
36
\n
At 31 December 2020
(539)
(9)
(161)
(709)
\n
Exchange movements on overseas net assets and net investment hedges
(239)
\u2013
(20)
(259)
\n
Reclassi\ufb01cation of exchange movements on liquidation or disposal of overseas subsidiaries
\n
and associates
(25)
\u2013
\u2013
(25)
\n
At 31 December 2021
(803)
(9)
(181)
(993)
\n
Exchange movements on overseas net assets and net investment hedges
109
4
(28)
85
\n
Reclassi\ufb01cation of exchange movements on liquidation or disposal of overseas subsidiaries
\n
and associates
2
\u2013
\u2013
2
\n
Movement attributable to continuing operations
(692)
(5)
(209)
(906)
\n
Movement attributable to discontinued operations
\n
(a)
\n
263
\u2013
112
375
\n
At 31 December 2022
(429)
(5)
97
(531)
\n
(a)
Includes \u00a3(554) million reclassi\ufb01cation to the Consolidated income statement of exchange movements related to the demerger of the Consumer Healthcare business.
\n
\n
\n
\n\n
The analysis of other comprehensive income by equity category is as follows:
\n
2022
\n
Retained
\n
earnings
\n
\u00a3m
\n
Other
\n
reserves
\n
\u00a3m
\n
Non-
\n
controlling
\n
interests
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Items that may be subsequently reclassi\ufb01ed to income statement:
\n
Exchange movements on overseas net assets and net investment hedges
109
4
\u2013
113
\n
Reclassi\ufb01cation of exchange movements on liquidation or disposal of subsidiaries
\n
and associates
2
\u2013
\u2013
2
\n
Fair value movements on cash \ufb02ow hedges
\u2013
(18)
\u2013
(18)
\n
Tax on fair value movements on cash \ufb02ow hedges
\u2013
9
\u2013
9
\n
Reclassi\ufb01cation of cash \ufb02ow hedges to income
\u2013
14
\u2013
14
\n
Items that will not be reclassi\ufb01ed to income statement:
\n
Exchange movements on overseas net assets of non-controlling interests
\u2013
\u2013
(28)
(28)
\n
Fair value movements on equity investments
\u2013
(754)
\u2013
(754)
\n
Tax on fair value movements on equity investments
\u2013
56
\u2013
56
\n
Remeasurement on de\ufb01ned bene\ufb01t plans
(786)
\u2013
\u2013
(786)
\n
Tax on remeasurement de\ufb01ned bene\ufb01t plans
211
\u2013
\u2013
211
\n
Fair value movements on cash \ufb02ow hedges
\u2013
(6)
\u2013
(6)
\n
Other comprehensive (expense)/income for the year from continuing operations
(464)
(695)
(28)
(1,187)
\n
Other comprehensive (expense)/income for the year from discontinued operations
375
(19)
\u2013
356
\n
Total other comprehensive (expense)/income for the year
(89)
(714)
(28)
(831)
\n
2021
\n
Retained
\n
earnings
\n
\u00a3m
\n
Other
\n
reserves
\n
\u00a3m
\n
Non-
\n
controlling
\n
interests
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Items that may be subsequently reclassi\ufb01ed to income statement:
\n
Exchange movements on overseas net assets and net investment hedges
(239)
\u2013
\u2013
(239)
\n
Reclassi\ufb01cation of exchange movements on liquidation or disposal of subsidiaries
\n
and associates
(25)
\u2013
\u2013
(25)
\n
Fair value movements on cash \ufb02ow hedges
\u2013
5
\u2013
5
\n
Tax on fair value movements on cash \ufb02ow hedges
\u2013
(8)
\u2013
(8)
\n
Reclassi\ufb01cation of cash \ufb02ow hedges to income statement
\u2013
12
\u2013
12
\n
Items that will not be reclassi\ufb01ed to income statement:
\n
Exchange movements on overseas net assets of non-controlling interests
\u2013
\u2013
(20)
(20)
\n
Fair value movements on equity investments
\u2013
(911)
\u2013
(911)
\n
Tax on fair value movements on equity investments
\u2013
131
\u2013
131
\n
Remeasurement losses on de\ufb01ned bene\ufb01t plans
941
\u2013
\u2013
941
\n
Tax on remeasurement de\ufb01ned bene\ufb01t plans
(223)
\u2013
\u2013
(223)
\n
Other comprehensive (expense)/income for the year
454
(771)
(20)
(337)
\n
2020
\n
Retained
\n
earnings
\n
\u00a3m
\n
Other
\n
reserves
\n
\u00a3m
\n
Non-
\n
controlling
\n
interests
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Items that may be subsequently reclassi\ufb01ed to income statement:
\n
Exchange movements on overseas net assets and net investment hedges
(51)
(8)
\u2013
(59)
\n
Reclassi\ufb01cation of exchange movements on liquidation or disposal of subsidiaries
\n
and associates
36
\u2013
\u2013
36
\n
Fair value movements on cash \ufb02ow hedges
\u2013
(19)
\u2013
(19)
\n
Tax on fair value movements on cash \ufb02ow hedges
\u2013
(18)
\u2013
(18)
\n
Reclassi\ufb01cation of cash \ufb02ow hedges to income statement
\u2013
54
\u2013
54
\n
Items that will not be reclassi\ufb01ed to income statement:
\n
Exchange movements on overseas net assets of non-controlling interests
\u2013
\u2013
(34)
(34)
\n
Fair value movements on equity investments
\u2013
1,348
\u2013
1,348
\n
Tax on fair value movements on equity investments
\u2013
(220)
\u2013
(220)
\n
Remeasurement gains on de\ufb01ned bene\ufb01t plans
(187)
\u2013
\u2013
(187)
\n
Tax on remeasurement de\ufb01ned bene\ufb01t plans
69
\u2013
\u2013
69
\n
Other comprehensive (expense)/income for the year
(133)
1,137
(34)
970
\n
Information on net investment hedges is provided in part (d) of Note 44 \u2018Financial instruments and related disclosures\u2019.
\n
\n
\n
\n
\n\n
The analysis of other reserves is as follows:
\n
ESOP Trust
\n
shares
\n
\u00a3m
\n
Fair value
\n
reserve
\n
\u00a3m
\n
Cash \ufb02ow
\n
hedge reserve
\n
\u00a3m
\n
Other
\n
reserves
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At 1 January 2020
(135)
409
(48)
2,129
2,355
\n
Exchange adjustments
20
\u2013
\u2013
\u2013
20
\n
Transferred to retained earnings in the year on disposal of equity investments
\u2013
(207)
\u2013
\u2013
(207)
\n
Net fair value movement in the year
\u2013
1,100
17
\u2013
1,117
\n
Ordinary shares acquired by ESOP Trusts
(609)
\u2013
\u2013
\u2013
(609)
\n
Write-down of shares held by ESOP Trusts
529
\u2013
\u2013
\u2013
529
\n
At 31 December 2020
(195)
1,302
(31)
2,129
3,205
\n
Exchange adjustments
(1)
\u2013
\u2013
\u2013
(1)
\n
Transferred to income and expenses in the year on impairments of equity
\n
investments
168
\u2013
\u2013
\u2013
168
\n
Transferred to retained earnings in the year on disposal of equity investments
\u2013
(139)
\u2013
\u2013
(139)
\n
Net fair value movement in the year
\u2013
(780)
10
\u2013
(770)
\n
At 31 December 2021
(28)
383
(21)
2,129
2,463
\n
Exchange adjustments
(36)
28
12
\u2013
4
\n
Transferred to retained earnings in the year on disposal of equity investments
\u2013
(21)
17
\u2013
(4)
\n
Balances derecognised on demerger
\u2013
\u2013
(169)
\u2013
(169)
\n
Net fair value movement in the year
\u2013
(698)
141
\u2013
(557)
\n
Ordinary shares acquired by ESOP Trusts
(1,200)
\u2013
\u2013
\u2013
(1,200)
\n
Write-down of shares held by ESOP Trusts
911
\u2013
\u2013
\u2013
911
\n
At 31 December 2022
(353)
(308)
(20)
2,129
1,448
\n
Other reserves include various non-distributable merger and pre-merger reserves amounting to \u00a31,849 million at 31 December 2022
\n
(2021: \u00a31,849 million; 2020: \u00a31,849 million). Other reserves also include the capital redemption reserve created as a result of the share
\nbuy-back programme amounting to \u00a3280 million at 31 December 2022 (2021: \u00a3280 million; 2020: \u00a3280 million). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f31848": {
"value": "37. Share capital and share premium account
Share Consolidation
\n
Following completion of the Consumer Healthcare business demerger on 18 July 2022, GSK plc Ordinary shares were consolidated to
\n
maintain share price comparability before and after demerger. The consolidation was approved by GSK shareholders at a General
\n
Meeting held on 6 July 2022. Shareholders received 4 new Ordinary shares with a nominal value of 31\u00bc pence each for every 5 existing
\n
Ordinary share which had a nominal value of 25 pence each. Earnings per share, diluted earnings per share, adjusted earnings per
\n
share and dividends per share were retrospectively adjusted to re\ufb02ect the Share Consolidation in all the periods presented.
\n
Ordinary shares of 25p each pre-share consolidation
\n
Ordinary shares of 31\u00bcp each post-share consolidation
\n
Share
\n
premium
\n
Number
\u00a3m
\u00a3m
\n
Share capital issued and fully paid:
\n
At 1 January 2020
5,383,102,231
1,346
3,174
\n
Issued under employee share schemes
2,087,386
\u2013
29
\n
Ordinary shares acquired by ESOP Trusts
\u2013
\u2013
78
\n
At 31 December 2020
5,385,189,617
1,346
3,281
\n
Issued under employee share schemes
1,825,442
1
20
\n
Ordinary shares acquired by ESOP Trusts
\u2013
\u2013
\u2013
\n
At 31 December 2021
5,387,015,059
1,347
3,301
\n
Impact of share consolidation
(1,077,403,011)
\u2013
\u2013
\n
Issued under employee share schemes
1,731,293
\u2013
25
\n
Ordinary shares acquired by ESOP Trusts
\u2013
\u2013
114
\n
At 31 December 2022
4,311,343,341
1,347
3,440
\n
At 31 December 2022, of the issued share capital, 59,878,735 shares were held in the ESOP Trusts, 217,124,760 shares were held as
\n
Treasury shares and 4,034,339,846 shares were in free issue. All issued shares are fully paid and there are no shares authorised
\n
but not in issue. The nominal, carrying and market values of the shares held in the ESOP Trusts are disclosed in Note 45,
\n\u2018Employee share schemes\u2019.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f31915": {
"value": "38. Movements in equity
Retained earnings and other reserves amounted to \u00a35,811 million at 31 December 2022 (2021: \u00a310,407 million; 2020: \u00a39,960 million)
\n
of which \u00a3463 million (2021: \u00a3476 million; 2020: \u00a3440 million) related to associates and joint ventures.
\n
The cumulative translation exchange in equity is as follows:
\n
Net translation exchange included in:
\n
Retained
\n
earnings
\n
\u00a3m
\n
Fair value
\n
reserve
\n
\u00a3m
\n
Non-
\n
controlling
\n
interests
\n
\u00a3m
\n
Total
\n
translation
\n
exchange
\n
\u00a3m
\n
At 1 January 2020
(524)
(1)
(127)
(652)
\n
Exchange movements on overseas net assets and net investment hedges
(51)
(8)
(34)
(93)
\n
Reclassi\ufb01cation of exchange movements on liquidation or disposal of overseas subsidiaries
\n
and associates
36
\u2013
\u2013
36
\n
At 31 December 2020
(539)
(9)
(161)
(709)
\n
Exchange movements on overseas net assets and net investment hedges
(239)
\u2013
(20)
(259)
\n
Reclassi\ufb01cation of exchange movements on liquidation or disposal of overseas subsidiaries
\n
and associates
(25)
\u2013
\u2013
(25)
\n
At 31 December 2021
(803)
(9)
(181)
(993)
\n
Exchange movements on overseas net assets and net investment hedges
109
4
(28)
85
\n
Reclassi\ufb01cation of exchange movements on liquidation or disposal of overseas subsidiaries
\n
and associates
2
\u2013
\u2013
2
\n
Movement attributable to continuing operations
(692)
(5)
(209)
(906)
\n
Movement attributable to discontinued operations
\n
(a)
\n
263
\u2013
112
375
\n
At 31 December 2022
(429)
(5)
97
(531)
\n
(a)
Includes \u00a3(554) million reclassi\ufb01cation to the Consolidated income statement of exchange movements related to the demerger of the Consumer Healthcare business.
\n
\n
\n
\n\n
The analysis of other comprehensive income by equity category is as follows:
\n
2022
\n
Retained
\n
earnings
\n
\u00a3m
\n
Other
\n
reserves
\n
\u00a3m
\n
Non-
\n
controlling
\n
interests
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Items that may be subsequently reclassi\ufb01ed to income statement:
\n
Exchange movements on overseas net assets and net investment hedges
109
4
\u2013
113
\n
Reclassi\ufb01cation of exchange movements on liquidation or disposal of subsidiaries
\n
and associates
2
\u2013
\u2013
2
\n
Fair value movements on cash \ufb02ow hedges
\u2013
(18)
\u2013
(18)
\n
Tax on fair value movements on cash \ufb02ow hedges
\u2013
9
\u2013
9
\n
Reclassi\ufb01cation of cash \ufb02ow hedges to income
\u2013
14
\u2013
14
\n
Items that will not be reclassi\ufb01ed to income statement:
\n
Exchange movements on overseas net assets of non-controlling interests
\u2013
\u2013
(28)
(28)
\n
Fair value movements on equity investments
\u2013
(754)
\u2013
(754)
\n
Tax on fair value movements on equity investments
\u2013
56
\u2013
56
\n
Remeasurement on de\ufb01ned bene\ufb01t plans
(786)
\u2013
\u2013
(786)
\n
Tax on remeasurement de\ufb01ned bene\ufb01t plans
211
\u2013
\u2013
211
\n
Fair value movements on cash \ufb02ow hedges
\u2013
(6)
\u2013
(6)
\n
Other comprehensive (expense)/income for the year from continuing operations
(464)
(695)
(28)
(1,187)
\n
Other comprehensive (expense)/income for the year from discontinued operations
375
(19)
\u2013
356
\n
Total other comprehensive (expense)/income for the year
(89)
(714)
(28)
(831)
\n
2021
\n
Retained
\n
earnings
\n
\u00a3m
\n
Other
\n
reserves
\n
\u00a3m
\n
Non-
\n
controlling
\n
interests
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Items that may be subsequently reclassi\ufb01ed to income statement:
\n
Exchange movements on overseas net assets and net investment hedges
(239)
\u2013
\u2013
(239)
\n
Reclassi\ufb01cation of exchange movements on liquidation or disposal of subsidiaries
\n
and associates
(25)
\u2013
\u2013
(25)
\n
Fair value movements on cash \ufb02ow hedges
\u2013
5
\u2013
5
\n
Tax on fair value movements on cash \ufb02ow hedges
\u2013
(8)
\u2013
(8)
\n
Reclassi\ufb01cation of cash \ufb02ow hedges to income statement
\u2013
12
\u2013
12
\n
Items that will not be reclassi\ufb01ed to income statement:
\n
Exchange movements on overseas net assets of non-controlling interests
\u2013
\u2013
(20)
(20)
\n
Fair value movements on equity investments
\u2013
(911)
\u2013
(911)
\n
Tax on fair value movements on equity investments
\u2013
131
\u2013
131
\n
Remeasurement losses on de\ufb01ned bene\ufb01t plans
941
\u2013
\u2013
941
\n
Tax on remeasurement de\ufb01ned bene\ufb01t plans
(223)
\u2013
\u2013
(223)
\n
Other comprehensive (expense)/income for the year
454
(771)
(20)
(337)
\n
2020
\n
Retained
\n
earnings
\n
\u00a3m
\n
Other
\n
reserves
\n
\u00a3m
\n
Non-
\n
controlling
\n
interests
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Items that may be subsequently reclassi\ufb01ed to income statement:
\n
Exchange movements on overseas net assets and net investment hedges
(51)
(8)
\u2013
(59)
\n
Reclassi\ufb01cation of exchange movements on liquidation or disposal of subsidiaries
\n
and associates
36
\u2013
\u2013
36
\n
Fair value movements on cash \ufb02ow hedges
\u2013
(19)
\u2013
(19)
\n
Tax on fair value movements on cash \ufb02ow hedges
\u2013
(18)
\u2013
(18)
\n
Reclassi\ufb01cation of cash \ufb02ow hedges to income statement
\u2013
54
\u2013
54
\n
Items that will not be reclassi\ufb01ed to income statement:
\n
Exchange movements on overseas net assets of non-controlling interests
\u2013
\u2013
(34)
(34)
\n
Fair value movements on equity investments
\u2013
1,348
\u2013
1,348
\n
Tax on fair value movements on equity investments
\u2013
(220)
\u2013
(220)
\n
Remeasurement gains on de\ufb01ned bene\ufb01t plans
(187)
\u2013
\u2013
(187)
\n
Tax on remeasurement de\ufb01ned bene\ufb01t plans
69
\u2013
\u2013
69
\n
Other comprehensive (expense)/income for the year
(133)
1,137
(34)
970
\n
Information on net investment hedges is provided in part (d) of Note 44 \u2018Financial instruments and related disclosures\u2019.
\n
\n
\n
\n
\n\n
The analysis of other reserves is as follows:
\n
ESOP Trust
\n
shares
\n
\u00a3m
\n
Fair value
\n
reserve
\n
\u00a3m
\n
Cash \ufb02ow
\n
hedge reserve
\n
\u00a3m
\n
Other
\n
reserves
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At 1 January 2020
(135)
409
(48)
2,129
2,355
\n
Exchange adjustments
20
\u2013
\u2013
\u2013
20
\n
Transferred to retained earnings in the year on disposal of equity investments
\u2013
(207)
\u2013
\u2013
(207)
\n
Net fair value movement in the year
\u2013
1,100
17
\u2013
1,117
\n
Ordinary shares acquired by ESOP Trusts
(609)
\u2013
\u2013
\u2013
(609)
\n
Write-down of shares held by ESOP Trusts
529
\u2013
\u2013
\u2013
529
\n
At 31 December 2020
(195)
1,302
(31)
2,129
3,205
\n
Exchange adjustments
(1)
\u2013
\u2013
\u2013
(1)
\n
Transferred to income and expenses in the year on impairments of equity
\n
investments
168
\u2013
\u2013
\u2013
168
\n
Transferred to retained earnings in the year on disposal of equity investments
\u2013
(139)
\u2013
\u2013
(139)
\n
Net fair value movement in the year
\u2013
(780)
10
\u2013
(770)
\n
At 31 December 2021
(28)
383
(21)
2,129
2,463
\n
Exchange adjustments
(36)
28
12
\u2013
4
\n
Transferred to retained earnings in the year on disposal of equity investments
\u2013
(21)
17
\u2013
(4)
\n
Balances derecognised on demerger
\u2013
\u2013
(169)
\u2013
(169)
\n
Net fair value movement in the year
\u2013
(698)
141
\u2013
(557)
\n
Ordinary shares acquired by ESOP Trusts
(1,200)
\u2013
\u2013
\u2013
(1,200)
\n
Write-down of shares held by ESOP Trusts
911
\u2013
\u2013
\u2013
911
\n
At 31 December 2022
(353)
(308)
(20)
2,129
1,448
\n
Other reserves include various non-distributable merger and pre-merger reserves amounting to \u00a31,849 million at 31 December 2022
\n
(2021: \u00a31,849 million; 2020: \u00a31,849 million). Other reserves also include the capital redemption reserve created as a result of the share
\nbuy-back programme amounting to \u00a3280 million at 31 December 2022 (2021: \u00a3280 million; 2020: \u00a3280 million). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f32429": {
"value": "39. Non-controlling interests
Total non-controlling interests includes the following individually material non-controlling interests. Other non-controlling interests
\n
are individually not material.
\n
ViiV Healthcare
\n
GSK holds 78.3% of the ViiV Healthcare sub-group, giving rise to a material non-controlling interest. Summarised \ufb01nancial information
\n
available at the latest practicable date in respect of the ViiV Healthcare sub-group is as follows:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Turnover
5,619
4,637
4,848
\n
Pro\ufb01t after taxation
1,528
1,087
762
\n
Other comprehensive income/(expense)
94
(17)
33
\n
Total comprehensive income
1,622
1,070
795
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
Non-current assets
2,716
2,796
\n
Current assets
3,354
2,711
\n
Total assets
6,070
5,507
\n
Current liabilities
(3,762)
(3,121)
\n
Non-current liabilities
(8,983)
(8,472)
\n
Total liabilities
(12,745)
(11,593)
\n
Net liabilities
(6,675)
(6,086)
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Net cash in\ufb02ow from operating activities
3,442
2,128
2,249
\n
Net cash out\ufb02ow from investing activities
(174)
(287)
(294)
\n
Net cash out\ufb02ow from \ufb01nancing activities
(2,718)
(1,608)
(2,483)
\n
Increase/(decrease) in cash and bank overdrafts in the year
550
233
(528)
\n
\n
\n
\n\n
The above \ufb01nancial information relates to the ViiV Healthcare group on a stand-alone basis, before the impact of Group-related
\n
adjustments, primarily related to the recognition of preferential dividends. The pro\ufb01t after taxation of \u00a31,528 million (2021: \u00a31,087
\n
million; 2020: \u00a3762 million) is stated after charging preferential dividends payable to GSK and P\ufb01zer and after a charge of \u00a31,483
\n
million (2021: \u00a31,218 million; 2020: \u00a31,112 million) for remeasurement of contingent consideration payable. This consideration is
\n
expected to be paid over a number of years.
\n
The following amounts attributable to the ViiV Healthcare group are included in GSK\u2019s \ufb01nancial statements:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Share of pro\ufb01t for the year attributable to non-controlling interest
415
196
223
\n
Dividends paid to non-controlling interest
480
224
419
\n
Non-controlling interest in the Consolidated balance sheet
(611)
(570)
(539)
\n
Consumer Healthcare Joint Venture
\n
GSK held 68% of the Consumer Healthcare sub-group until the demerger on 18 July 2022 (see details in Note 41), giving rise to a
\n
material non-controlling interest. Summarised \ufb01nancial information in respect of the Consumer Healthcare sub-group at 31
\n
December 2021 is as follows:
\n
2021
\n
\u00a3m
\n
Non-current assets
29,200
\n
Current assets
5,251
\n
Total assets
34,451
\n
Current liabilities
(4,238)
\n
Non-current liabilities
(3,733)
\n
Total liabilities
(7,971)
\n
Net assets
26,480
\n
The above \ufb01nancial information relates to the former Consumer Healthcare Joint Venture on a stand-alone basis, before the
\n
impact of Group-related adjustments and the classi\ufb01cation of cash pooling accounts with Group companies outside the
\n
Consumer Healthcare Joint Venture but after Major restructuring charges.
\n
The following amounts attributable to the Consumer Healthcare Joint Venture were included in GSK\u2019s \ufb01nancial statements
\n
in prior years:
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Non-controlling interest in the Consolidated balance sheet
6,609
6,538",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f32588": {
"value": "40. Related party transactions
At 31 December 2022, there were no loans due to GSK from related parties (2021: \u00a34.6 million was due from Medicxi Ventures I LP).
\n
Cash distributions were received from investment in Medicxi Ventures I LP of \u00a36.0 million (2021: Medicxi Ventures I LP of \u00a35.5
\n
million, Longwood Founders Fund, LP of \u00a33.0 million and Apollo Therapeutics LLP of \u00a30.1 million).
\n
As part of the joint venture agreement with Qura Therapeutics LLC, the Group has an obligation to fund the joint venture up to
\n
April 2025, with both GSK and its joint venture partner committing \ufb01nancial support in the amount of \u00a321.6 million. At December
\n
2022, the outstanding liability due to Qura was \u00a38.3 million (2021: \u00a310.7 million).
\n
The Group had no other signi\ufb01cant related party transactions which might reasonably be expected to in\ufb02uence decisions made
\n
by the users of these Financial Statements.
\nThe aggregate compensation of the Directors and GLT is given in Note 9, \u2018Employee costs\u2019.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f32626": {
"value": "41. Acquisitions and disposals
Details of the acquisition and disposal of signi\ufb01cant subsidiaries, associates, joint ventures and other businesses are given below:
\n
2022
\n
Business acquisitions
\n
On 1 July 2022, GSK completed the acquisition of 100% of Sierra Oncology, Inc., a California-based, late-stage biopharmaceutical
\n
company focused on targeted therapies for the treatment of rare forms of cancer, for $1.9 billion (\u00a31.6 billion). The main asset is
\n
momelotinib which targets the medical needs of myelo\ufb01brosis patients with anaemia. Total transaction costs were \u00a352 million.
\n
On 15 August 2022, GSK completed the acquisition of 100% of Af\ufb01nivax, Inc. a clinical-stage biopharmaceutical company based
\n
in Cambridge, Boston, Massachusetts focused on pneumococcal vaccine candidates. The consideration for the acquisition
\n
comprised an upfront payment of $2.2 billion (\u00a31.8 billion) as adjusted for working capital acquired paid upon closing and two
\n
potential milestone payments each of $0.6 billion (\u00a30.5 billion) to be paid upon the achievement of certain paediatric clinical
\n
development milestones. The estimated fair value of the contingent consideration payable was \u00a3482 million. The values are
\n
provisional and are subject to change. The total transaction costs were \u00a371 million.
\n
Since acquisition, no sales arising from the Sierra Oncology or Af\ufb01nivax businesses have been included in Group turnover and no
\n
revenue is expected until regulatory approval is received on the acquired assets.
\n
GSK continues to support the ongoing development of the acquired assets and consequently these assets will be loss making until
\n
regulatory approval on these assets is received. The development of these assets has been integrated into the Group\u2019s existing
\n
R&D activities, so it is impracticable to quantify these development costs or the impact on Total pro\ufb01t after taxation for the period.
\n
Goodwill of \u00a31,127 million (\u00a3162 million for Sierra Oncology and \u00a3965 million for Af\ufb01nivax), which is not expected to be deductible for
\n
tax purposes, has been recognised. The goodwill represents workforce in place, and speci\ufb01c synergies available to GSK from the
\n
business combinations. The goodwill has been allocated to the Group\u2019s Commercial Operations and R&D segments, (refer to Note 19
\n
\u2018Goodwill\u2019 for allocation methodology).
\n
Sierra
\n
Oncology
\n
\u00a3m
\n
Af\ufb01nivax
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Net assets acquired
\n
Intangible assets
1,497
1,467
2,964
\n
Property, plant and equipment
\u2013
30
30
\n
Right of use assets
1
52
53
\n
Inventory
60
\u2013
60
\n
Trade and other receivables
2
17
19
\n
Cash and cash equivalents
175
109
284
\n
Lease liabilities
(1)
(55)
(56)
\n
Trade and other payables
(40)
(77)
(117)
\n
Taxation
(259)
(236)
(495)
\n
1,435
1,307
2,742
\n
Goodwill
162
965
1,127
\n
Total
1,597
2,272
3,869
\n
Total cash
1,597
1,790
3,387
\n
Fair value of contingent consideration
\u2013
482
482
\n
On 24 November 2022 GSK signed an agreement to buy out the 25% non-controlling interest in Glaxo Saudi Arabia Ltd for
\n
SAR94 million (\u00a321 million), to be paid in 2023.
\n
\n
\n
\n\n
Demerger of Consumer Healthcare business
\n
On 18 July 2022, GSK plc separated its Consumer Healthcare business from the GSK Group to form Haleon, an independent listed
\n
company. The separation was effected by way of a demerger of 80.1% of GSK\u2019s 68% holding in the Consumer Healthcare business to
\n
GSK shareholders. Following the demerger, 54.5% of Haleon was held in aggregate by GSK shareholders, 6.0% remains held by GSK
\n
(including shares received by GSK\u2019s consolidated ESOP trusts) and 7.5% remains held by certain Scottish Limited Partnerships (SLPs) set
\n
up to provide collateral for a funding mechanism pursuant to which GSK will provide additional funding for GSK\u2019s UK de\ufb01ned bene\ufb01t
\n
pension schemes (Note 31). The aggregate ownership by GSK (including ownership by the ESOP trusts and SLPs) after the demerger of
\n
13.5% was measured at fair value with changes through pro\ufb01t or loss. P\ufb01zer continued to hold 32% of Haleon after the demerger.
\n
Under IFRIC 17 \u2018Distributions of Non-cash Assets to Owners\u2019 a liability and an equity distribution are measured at the fair value of
\n
the assets to be distributed when the dividend is appropriately authorised and it is no longer at the entity\u2019s discretion. The liability
\n
and equity movement, and associated gain on distribution were recognised in Q3 2022 when the demerger distribution was
\n
authorised and occurred.
\n
The asset distributed was the 54.5% ownership of the Consumer Healthcare business. The net carrying value of the Consumer
\n
Healthcare business in the consolidated \ufb01nancial statements, including the retained 13.5% and net of the amount attributable to the
\n
non-controlling interest, was approximately \u00a311.0 billion at the end of June. GSK\u2019s \u00a36.3 billion share of the shareholder loans made in
\n
Q1 2022 in advance of the pre-separation dividends was eliminated in the consolidated \ufb01nancial statements. The assets distributed
\n
were reduced by Consumer Healthcare transactions up to 18 July that principally included pre-separation dividends declared and
\n
settled after the end of Q2 2022 and before 18 July 2022. Those dividends included: \u00a310.4 billion (\u00a37.1 billion attributable to GSK) of
\n
dividends funded by Consumer Healthcare debt that was partially on-lent during Q1 2022 and dividends of \u00a30.6 billion (\u00a30.4 billion
\n
attributable to GSK) from available cash balances.
\n
The fair value of the 54.5% ownership of the Consumer Healthcare business distributed was \u00a315.5 billion. This was measured by
\n
reference to the quoted average Haleon share price over the \ufb01rst \ufb01ve days of trading, this being a fair value measured with
\n
observable inputs which was considered to be representative of the fair value at the distribution date. A gain on distribution of this
\n
fair value less book value of the attributable net assets of the Consumer Healthcare business of \u00a37.7 billion was recorded in the
\n
Income Statement in 2022. There was an additional gain of \u00a32.4 billion to remeasure the retained 13.5% from its book value to fair
\n
value of \u00a33.9 billion using the same fair value methodology as used for the distributed shares. The gain on distribution and on
\n
remeasurement of the retained stake upon demerger was presented as part of discontinued operations. Any future gains or losses on
\n
the retained stake in Haleon will be recognised in continuing operations. In addition, there was a reclassi\ufb01cation of the Group\u2019s share
\n
of cumulative exchange differences arising on translation of the foreign currency net assets of the divested subsidiaries and
\n
offsetting net investment hedges from reserves into the Income Statement of \u00a30.6 billion. The total gain on demerger of Consumer
\n
Healthcare was \u00a310.1 billion. These transactions were presented in pro\ufb01t from discontinued operations in 2022.
\n
2022
\n
\u00a3m
\n
Fair value of the Consumer Healthcare business distributed (54.5%)
15,526
\n
Fair value of the retained ownership in Haleon plc (13.5%)
3,853
\n
Total fair value
19,379
\n
Carrying amount of the net assets and liabilities distributed/de-recognised
(12,887)
\n
Carrying amount of the non-controlling interest de-recognised
3,038
\n
Gain on demerger before exchange movements and transaction costs
9,530
\n
Reclassi\ufb01cation of exchange movements and net investment hedge movements on disposal of overseas subsidiaries
554
\n
Total gain on the demerger of Consumer Healthcare
10,084
\n
\n
\n
\n
\n\n
Consumer Healthcare was presented as a discontinued operation as at 30 June 2022 and disclosed as such in the interim \ufb01nancial
\n
statements. The Consolidated Income Statement and Consolidated Cash Flow Statement distinguish discontinued operations from
\n
continuing operations. Comparative \ufb01gures have been restated on a consistent basis. Financial information relating to the operations
\n
of Consumer Healthcare for the period is set out below and includes \ufb01nancial information until 18 July 2022.
\n
This \ufb01nancial information differs both in purpose and basis of preparation from the Historical Financial Information and the
\n
Interim Financial Information included in the Haleon prospectus and from that which will be published by Haleon on 2 March
\n
2023. As a result, whilst the two sets of \ufb01nancial information are similar, they are not the same because of certain differences in
\n
accounting and disclosure under IFRS.
\n
Total results
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Turnover
5,581
9,418
9,745
\n
Expense
(4,730)
(7,575)
(7,947)
\n
Pro\ufb01t before tax
851
1,843
1,798
\n
Taxation
(235)
(263)
(513)
\n
Tax rate %
27.6%
14.3%
28.5%
\n
(Loss)/pro\ufb01t after taxation from discontinued operations: Consumer Healthcare
616
1,580
1,285
\n
Other gains/(losses) on demerger
2,433
\u2013
\u2013
\n
Remeasurement of discontinued operations distributed to shareholders on demerger
7,651
\u2013
\u2013
\n
Pro\ufb01t after taxation on demerger of discontinued operations
10,700
1,580
1,285
\n
Non-controlling interest in discontinued operations
205
511
409
\n
Earnings attributable to shareholders from discontinued operations
10,495
1,069
876
\n
Earnings per share from discontinued operations
260.6p
26.7p
22.0p
\n
Other business disposals
\n
There were no other material business disposals in 2022.
\n
Cash \ufb02ows
\n
Business
\n
acquisitions
\n
\u00a3m
\n
Business
\n
disposals
\n
- demerger
\n
\u00a3m
\n
Business
\n
disposals
\n
- other
\n
\u00a3m
\n
Cash consideration
(3,392)
\u2013
\u2013
\n
Net deferred consideration paid
\u2013
\u2013
(34)
\n
Cash and cash equivalents (divested)/acquired
284
(933)
(9)
\n
(3,108)
(933)
(43)
\n
Transaction costs paid
(79)
(141)
\u2013
\n
Cash (out\ufb02ow)/in\ufb02ow
(3,187)
(1,074)
(43)
\n
Cash consideration for business acquisitions included \u00a35 million related to other business acquisition activity.
\n
2021
\n
Business acquisitions
\n
GSK completed no material business acquisitions in 2021.
\n
Business disposals
\n
GSK made a number of business disposals for net cash consideration received in the year of \u00a310 million. The pro\ufb01t on the disposal
\n
of the businesses in the year of \u00a324 million was calculated as follows:
\n
Total
\n
\u00a3m
\n
Consideration:
\n
Cash consideration including currency forwards, purchase adjustments and deferred consideration
10
\n
Total
10
\n
Net assets sold:
\n
Property, plant and equipment
3
\n
Cash and cash equivalents
1
\n
Other net assets
1
\n
Total
5
\n
Costs:
\n
Deal costs
(16)
\n
Reclassi\ufb01cation of exchange from other comprehensive income
35
\n
Gain on disposals in 2021
24
\n
\n
\n
\n\n
Associates and joint ventures
\n
On 20 May 2021 GSK agreed with Innoviva, Inc. (\u201cInnoviva\u201d) to sell all of its approximately 32 million shares of common stock of
\n
Innoviva back to Innoviva at a price of $12.25 per share, raising gross proceeds of approximately $392 million. Following settlement
\n
of the transaction, GSK will no longer hold any Innoviva stock. See details in Note 21 \u2018Investment in associates and joint ventures\u2019.
\n
Cash \ufb02ows
\n
Business
\n
disposals
\n
\u00a3m
\n
Associates
\n
and joint
\n
ventures
\n
disposals
\n
\u00a3m
\n
Cash consideration received
43
277
\n
Net deferred consideration paid
(51)
\u2013
\n
Transaction costs
(8)
\u2013
\n
Cash and cash equivalents (divested)/acquired
(1)
\u2013
\n
Cash (out\ufb02ow)/in\ufb02ow
(17)
277
\n
2020
\n
Business acquisitions
\n
GSK completed one smaller business acquisition when it acquired 55% of P\ufb01zer Biotech Corporation Taiwan, a part of P\ufb01zer\u2019s
\n
consumer healthcare business, which was not previously recognised as part of the Consumer Healthcare Joint Venture, on
\n
28 September 2020 for non cash consideration of \u00a3129 million. This represented goodwill of \u00a3124 million, cash of \u00a321 million
\n
and other assets acquired of \u00a318 million less non-controlling interest of \u00a314 million and net liabilities of \u00a320 million.
\n
Total
\n
\u00a3m
\n
Net assets acquired:
\n
Intangible assets
2
\n
Property, plant and equipment
5
\n
Inventory
5
\n
Trade and other receivables
6
\n
Cash and cash equivalents
21
\n
Trade and other payables
(20)
\n
19
\n
Non-controlling interest
(14)
\n
Goodwill
124
\n
129
\n
Non-cash consideration (settlement of a promissory note)
129
\n
Total consideration
129
\n
Business disposals
\n
On 1 April 2020, GSK completed its divestment of Horlicks and other Consumer Healthcare nutrition products in India and a
\n
number of other countries (excluding Bangladesh) to Unilever and the merger of GSK\u2019s Indian listed Consumer Healthcare entity
\n
with Hindustan Unilever, an Indian listed public company. GSK received a 5.7% equity stake in Hindustan Unilever and \u00a3395
\n
million in cash. GSK disposed of its equity stake in Hindustan Unilever during May 2020.
\n
The divestment in Bangladesh closed on 30 June 2020. Total cash consideration received was \u00a3177 million.
\n
The cash divested as part of the disposal of the India and Bangladesh Consumer Healthcare entities was \u00a3478 million.
\n
\n
\n
\n
\n\n
The pro\ufb01t on the disposal of the businesses in the year of \u00a32,795 million was calculated as follows:
\n
Horlicks
\n
divestment
\n
\u00a3m
\n
Other
\n
(1)
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Consideration:
\n
Cash consideration receivable including currency forwards and purchase adjustments
492
157
649
\n
Equity investment in Hindustan Unilever Limited
3,124
\u2013
3,124
\n
Total
3,616
157
3,773
\n
Net assets disposed:
\n
Goodwill
142
1
143
\n
Intangible assets
15
103
118
\n
Property, plant and equipment
56
12
68
\n
Inventory
\u2013
6
6
\n
Cash and cash equivalents
478
3
481
\n
Other net (liabilities)/assets
(155)
1
(154)
\n
Total
536
126
662
\n
Costs:
\n
Transaction costs
12
28
40
\n
Derivative
240
\u2013
240
\n
Reclassi\ufb01cation of exchange from other comprehensive income
36
\u2013
36
\n
Total
288
28
316
\n
Gain on disposals
2,792
3
2,795
\n
The exposure to share price movements embedded in the agreement to merge GSK\u2019s Indian listed Consumer Healthcare entity
\n
with Hindustan Unilever Limited as part of the divestment of Horlicks and other nutrition products in India and a number of other
\n
countries was recognised as a derivative between signing of the agreement in 2018 and completion of the transaction in 2020.
\n
\u00a3240 million is recorded as a cost in the table above for the derecognition of the derivative asset. This largely re\ufb02ects fair value
\n
gains recognised in the Income Statement in prior periods.
\n
Associates and joint ventures
\n
During the year, GSK made investments into associates of \u00a34 million and \u00a34 million was paid in cash.
\n
Cash \ufb02ows
\n
Business
\n
acquisitions
\n
\u00a3m
\n
Business
\n
disposals
\n
\u00a3m
\n
Associates
\n
and joint
\n
ventures
\n
investments
\n
\u00a3m
\n
Cash consideration received/(paid)
\u2013
786
(4)
\n
Net deferred consideration
\u2013
(19)
\u2013
\n
Transaction costs
(6)
(27)
\u2013
\n
Cash and cash equivalents acquired/(divested)
21
(481)
\u2013
\n
Cash (out\ufb02ow)/in\ufb02ow
15
259
(4)
\n
(1)
Other includes Consumer Healthcare disposals where the income statement impact is not restated. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f32739": {
"value": "Demerger of Consumer Healthcare business
On 18 July 2022, GSK plc separated its Consumer Healthcare business from the GSK Group to form Haleon, an independent listed
\n
company. The separation was effected by way of a demerger of 80.1% of GSK\u2019s 68% holding in the Consumer Healthcare business to
\n
GSK shareholders. Following the demerger, 54.5% of Haleon was held in aggregate by GSK shareholders, 6.0% remains held by GSK
\n
(including shares received by GSK\u2019s consolidated ESOP trusts) and 7.5% remains held by certain Scottish Limited Partnerships (SLPs) set
\n
up to provide collateral for a funding mechanism pursuant to which GSK will provide additional funding for GSK\u2019s UK de\ufb01ned bene\ufb01t
\n
pension schemes (Note 31). The aggregate ownership by GSK (including ownership by the ESOP trusts and SLPs) after the demerger of
\n
13.5% was measured at fair value with changes through pro\ufb01t or loss. P\ufb01zer continued to hold 32% of Haleon after the demerger.
\n
Under IFRIC 17 \u2018Distributions of Non-cash Assets to Owners\u2019 a liability and an equity distribution are measured at the fair value of
\n
the assets to be distributed when the dividend is appropriately authorised and it is no longer at the entity\u2019s discretion. The liability
\n
and equity movement, and associated gain on distribution were recognised in Q3 2022 when the demerger distribution was
\n
authorised and occurred.
\n
The asset distributed was the 54.5% ownership of the Consumer Healthcare business. The net carrying value of the Consumer
\n
Healthcare business in the consolidated \ufb01nancial statements, including the retained 13.5% and net of the amount attributable to the
\n
non-controlling interest, was approximately \u00a311.0 billion at the end of June. GSK\u2019s \u00a36.3 billion share of the shareholder loans made in
\n
Q1 2022 in advance of the pre-separation dividends was eliminated in the consolidated \ufb01nancial statements. The assets distributed
\n
were reduced by Consumer Healthcare transactions up to 18 July that principally included pre-separation dividends declared and
\n
settled after the end of Q2 2022 and before 18 July 2022. Those dividends included: \u00a310.4 billion (\u00a37.1 billion attributable to GSK) of
\n
dividends funded by Consumer Healthcare debt that was partially on-lent during Q1 2022 and dividends of \u00a30.6 billion (\u00a30.4 billion
\n
attributable to GSK) from available cash balances.
\n
The fair value of the 54.5% ownership of the Consumer Healthcare business distributed was \u00a315.5 billion. This was measured by
\n
reference to the quoted average Haleon share price over the \ufb01rst \ufb01ve days of trading, this being a fair value measured with
\n
observable inputs which was considered to be representative of the fair value at the distribution date. A gain on distribution of this
\n
fair value less book value of the attributable net assets of the Consumer Healthcare business of \u00a37.7 billion was recorded in the
\n
Income Statement in 2022. There was an additional gain of \u00a32.4 billion to remeasure the retained 13.5% from its book value to fair
\n
value of \u00a33.9 billion using the same fair value methodology as used for the distributed shares. The gain on distribution and on
\n
remeasurement of the retained stake upon demerger was presented as part of discontinued operations. Any future gains or losses on
\n
the retained stake in Haleon will be recognised in continuing operations. In addition, there was a reclassi\ufb01cation of the Group\u2019s share
\n
of cumulative exchange differences arising on translation of the foreign currency net assets of the divested subsidiaries and
\n
offsetting net investment hedges from reserves into the Income Statement of \u00a30.6 billion. The total gain on demerger of Consumer
\n
Healthcare was \u00a310.1 billion. These transactions were presented in pro\ufb01t from discontinued operations in 2022.
\n
2022
\n
\u00a3m
\n
Fair value of the Consumer Healthcare business distributed (54.5%)
15,526
\n
Fair value of the retained ownership in Haleon plc (13.5%)
3,853
\n
Total fair value
19,379
\n
Carrying amount of the net assets and liabilities distributed/de-recognised
(12,887)
\n
Carrying amount of the non-controlling interest de-recognised
3,038
\n
Gain on demerger before exchange movements and transaction costs
9,530
\n
Reclassi\ufb01cation of exchange movements and net investment hedge movements on disposal of overseas subsidiaries
554
\n
Total gain on the demerger of Consumer Healthcare
10,084
\n
\n
\n
\n
\n\n
Consumer Healthcare was presented as a discontinued operation as at 30 June 2022 and disclosed as such in the interim \ufb01nancial
\n
statements. The Consolidated Income Statement and Consolidated Cash Flow Statement distinguish discontinued operations from
\n
continuing operations. Comparative \ufb01gures have been restated on a consistent basis. Financial information relating to the operations
\n
of Consumer Healthcare for the period is set out below and includes \ufb01nancial information until 18 July 2022.
\n
This \ufb01nancial information differs both in purpose and basis of preparation from the Historical Financial Information and the
\n
Interim Financial Information included in the Haleon prospectus and from that which will be published by Haleon on 2 March
\n
2023. As a result, whilst the two sets of \ufb01nancial information are similar, they are not the same because of certain differences in
\n
accounting and disclosure under IFRS.
\n
Total results
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Turnover
5,581
9,418
9,745
\n
Expense
(4,730)
(7,575)
(7,947)
\n
Pro\ufb01t before tax
851
1,843
1,798
\n
Taxation
(235)
(263)
(513)
\n
Tax rate %
27.6%
14.3%
28.5%
\n
(Loss)/pro\ufb01t after taxation from discontinued operations: Consumer Healthcare
616
1,580
1,285
\n
Other gains/(losses) on demerger
2,433
\u2013
\u2013
\n
Remeasurement of discontinued operations distributed to shareholders on demerger
7,651
\u2013
\u2013
\n
Pro\ufb01t after taxation on demerger of discontinued operations
10,700
1,580
1,285
\n
Non-controlling interest in discontinued operations
205
511
409
\n
Earnings attributable to shareholders from discontinued operations
10,495
1,069
876
\n
Earnings per share from discontinued operations
260.6p
26.7p
22.0p",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f32890": {
"value": "
Cash \ufb02ows
\n
Business
\n
acquisitions
\n
\u00a3m
\n
Business
\n
disposals
\n
- demerger
\n
\u00a3m
\n
Business
\n
disposals
\n
- other
\n
\u00a3m
\n
Cash consideration
(3,392)
\u2013
\u2013
\n
Net deferred consideration paid
\u2013
\u2013
(34)
\n
Cash and cash equivalents (divested)/acquired
284
(933)
(9)
\n
(3,108)
(933)
(43)
\n
Transaction costs paid
(79)
(141)
\u2013
\n
Cash (out\ufb02ow)/in\ufb02ow
(3,187)
(1,074)
(43)
\n
Cash consideration for business acquisitions included \u00a35 million related to other business acquisition activity.
Cash \ufb02ows
\n
Business
\n
disposals
\n
\u00a3m
\n
Associates
\n
and joint
\n
ventures
\n
disposals
\n
\u00a3m
\n
Cash consideration received
43
277
\n
Net deferred consideration paid
(51)
\u2013
\n
Transaction costs
(8)
\u2013
\n
Cash and cash equivalents (divested)/acquired
(1)
\u2013
\n
Cash (out\ufb02ow)/in\ufb02ow
(17)
277
Cash \ufb02ows
\n
Business
\n
acquisitions
\n
\u00a3m
\n
Business
\n
disposals
\n
\u00a3m
\n
Associates
\n
and joint
\n
ventures
\n
investments
\n
\u00a3m
\n
Cash consideration received/(paid)
\u2013
786
(4)
\n
Net deferred consideration
\u2013
(19)
\u2013
\n
Transaction costs
(6)
(27)
\u2013
\n
Cash and cash equivalents acquired/(divested)
21
(481)
\u2013
\n
Cash (out\ufb02ow)/in\ufb02ow
15
259
(4)
42. Adjustments reconciling Total pro\ufb01t after tax to operating
\n
cash \ufb02ows
\n
2022
\n
\u00a3m
\n
2021
\n
(1)
\n
\u00a3m
\n
2020
\n
(1)
\n
\u00a3m
\n
Total pro\ufb01t after tax from continuing operations
4,921
3,516
5,103
\n
Tax on pro\ufb01ts
707
83
67
\n
Share of after-tax pro\ufb01ts of associates and joint ventures
2
(33)
(33)
\n
Finance expense net of \ufb01nance income
803
755
842
\n
Depreciation
1,061
1,034
1,004
\n
Amortisation of intangible assets
1,086
1,088
1,046
\n
Impairment and assets written off
481
529
684
\n
Pro\ufb01t on sale of businesses
(36)
(47)
(2,815)
\n
Pro\ufb01t on sale of intangible assets
(185)
(539)
(279)
\n
Loss on sale of investments in associates
\u2013
36
\u2013
\n
Pro\ufb01t on sale of equity investments
(1)
(8)
(69)
\n
Changes in working capital:
\n
Decrease/(increase)in inventories
(269)
51
100
\n
Increase in trade receivables
(158)
(780)
(279)
\n
Increase in trade payables
494
229
132
\n
(Increase) in other receivables
(458)
(382)
(349)
\n
Contingent consideration paid (see Note 33)
(1,058)
(742)
(765)
\n
Other non-cash increase in contingent consideration liabilities
1,628
1,063
1,275
\n
Increase in other payables
(5)
1,505
885
\n
Increase/(decrease) in pension and other provisions
(962)
(299)
428
\n
Share-based incentive plans
346
343
337
\n
Fair value adjustments
(283)
(31)
373
\n
Other
(170)
(122)
(13)
\n
Operating cash \ufb02ow from continuing operations
7,944
7,249
7,674
\n
Operating cash \ufb02ow from discontinued operations
932
1,994
2,422
\n
Total cash generated from operations
8,876
9,243
10,096
\n
(1)
The 2021 and 2020 comparatives have been restated on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare business
\n
(see Note 41).
43. Reconciliation of net cash \ufb02ow to movement in net debt
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
2020
\n
\u00a3m
\n
Net debt, at beginning of year, as adjusted
(19,838)
(20,780)
(25,215)
\n
Increase in cash and bank overdrafts
(7,597)
(2,504)
(1,579)
\n
Increase/(decrease) in liquid investments
(1)
(18)
1
\n
Increase in long-term loans
(1,025)
\u2013
(3,298)
\n
Repayment of short-term Notes
5,074
2,304
3,738
\n
Repayment of/(increase in) other short-term loans
(1,021)
(301)
3,594
\n
Repayment of medium term notes (MTNs)
1,594
\u2013
\u2013
\n
Repayment of lease liabilities
202
181
182
\n
Debt of subsidiary undertakings acquired
(24)
\u2013
\u2013
\n
Exchange adjustments
(1,531)
314
(128)
\n
Other non-cash movements
(207)
(134)
(102)
\n
Decrease/(increase) in net debt from continuing operations
(4,536)
(158)
2,408
\n
Decrease/(increase) in net debt from discontinued operations
7,177
1,100
2,027
\n
Total net debt at end of year
(17,197)
(19,838)
(20,780)
\n
Analysis of changes in net debt
\n
At 1 January
\n
2022
\n
\u00a3m
\n
Exchange
\n
\u00a3m
\n
Other
\n
\u00a3m
\n
Interest
\n
expense
\n
\u00a3m
\n
Change
\n
in fair value
\n
\u00a3m
\n
Reclass-
\n
i\ufb01cations
\n
\u00a3m
\n
Demerger
\n
\u00a3m
\n
Cash \ufb02ow
\n
\u00a3m
\n
At
\n
31 December
\n
2022
\n
\u00a3m
\n
Liquid investments
61
7
\u2013
\u2013
\u2013
\u2013
(1)
67
\n
Cash and cash equivalents
3,861
99
1
\u2013
\u2013
\u2013
7,496
(7,734)
3,723
\n
Overdrafts
(450)
15
\u2013
\u2013
\u2013
\u2013
\u2013
137
(298)
\n
Liquid investments attributed to
\n
continuing operations
3,411
114
1
\u2013
\u2013
\u2013
7,496
(7,597)
3,425
\n
Liquid investments attributed to
\n
discontinued operations
407
37
\u2013
\u2013
\u2013
\u2013
(7,496)
7,052
\u2013
\n
3,818
151
1
\u2013
\u2013
\u2013
\u2013
(545)
3,425
\n
Debt due within one year:
\n
Commercial paper
(252)
(30)
\u2013
\u2013
\u2013
\u2013
\u2013
(909)
(1,191)
\n
European/US MTN & Bank facilities
(2,596)
(174)
\u2013
\u2013
\u2013
(4,426)
\u2013
5,050
(2,146)
\n
Lease liabilities
(173)
(14)
5
\u2013
\u2013
(186)
\u2013
201
(167)
\n
Other
(52)
(2)
(9)
\u2013
\u2013
\u2013
\u2013
(87)
(150)
\n
Debt due within one year attributed to
\n
continuing operations
(3,073)
(220)
(4)
\u2013
\u2013
(4,612)
\u2013
4,255
(3,654)
\n
Debt due within one year attributed to
\n
discontinued operations
(72)
(3)
(15)
\u2013
\u2013
(3)
1,559
(1,466)
\u2013
\n
(3,145)
(223)
(19)
\u2013
\u2013
(4,615)
1,559
2,789
(3,654)
\n
Debt due after one year:
\n
European/US MTN & Bank facilities
(19,760)
(1,386)
\u2013
(43)
\u2013
4,426
\u2013
569
(16,194)
\n
Lease liabilities
(725)
(59)
(243)
\u2013
\u2013
186
\u2013
\u2013
(841)
\n
Debt due after one year attributed to
\n
continuing operations
(20,485)
(1,445)
(243)
(43)
\u2013
4,612
\u2013
569
(17,035)
\n
Debt due after one year attributed to
\n
discontinued operations
(87)
(777)
(6)
(4)
48
3
10,059
(9,236)
\u2013
\n
(20,572)
(2,222)
(249)
(47)
48
4,615
10,059
(8,667)
(17,035)
\n
Net debt
(19,838)
(2,287)
(267)
(47)
48
\u2013
11,618
(6,424)
(17,197)
\n
Interest payable
(244)
(5)
(33)
(865)
\u2013
\u2013
92
848
(207)
\n
Derivative \ufb01nancial instruments
(22)
\u2013
\u2013
\u2013
670
\u2013
\u2013
(640)
8
\n
Total liabilities from \ufb01nancing activities*
(23,983)
(2,450)
(301)
(912)
718
\u2013
11,710
(5,670)
(20,888)
\n
*
Excluding cash and cash equivalents, overdrafts and liquid investments.
Analysis of changes in net debt
\n
At 1 January
\n
2021
\n
\u00a3m
\n
Exchange
\n
\u00a3m
\n
Other
\n
\u00a3m
\n
Interest
\n
expense
\n
\u00a3m
\n
Change
\n
in fair value
\n
\u00a3m
\n
Reclass-
\n
i\ufb01cations
\n
\u00a3m
\n
Cash \ufb02ow
\n
\u00a3m
\n
At
\n
31 December
\n
2021
\n
\u00a3m
\n
Liquid investments
78
1
\u2013
\u2013
\u2013
\u2013
(18)
61
\n
Cash and cash equivalents
6,292
(29)
(1)
\u2013
\u2013
\u2013
(1,988)
4,274
\n
Overdrafts
(1,030)
\u2013
\u2013
\u2013
\u2013
\u2013
574
(456)
\n
5,262
(29)
(1)
\u2013
\u2013
\u2013
(1,414)
3,818
\n
Debt due within one year:
\n
Commercial paper
(17)
8
\u2013
\u2013
\u2013
\u2013
(243)
(252)
\n
European/US MTN & Bank facilities
(2,350)
1
\u2013
\u2013
\u2013
(2,494)
2,247
(2,596)
\n
Lease liabilities
(230)
5
7
\u2013
\u2013
(200)
215
(203)
\n
Other
(98)
15
(2)
\u2013
\u2013
\u2013
(9)
(94)
\n
(2,695)
29
5
\u2013
\u2013
(2,694)
2,210
(3,145)
\n
Debt due after one year:
\n
European/US MTN & Bank facilities
(22,538)
306
\u2013
(22)
\u2013
2,494
\u2013
(19,760)
\n
Lease liabilities
(887)
7
(132)
\u2013
\u2013
200
\u2013
(812)
\n
(23,425)
313
(132)
(22)
\u2013
2,694
\u2013
(20,572)
\n
Net debt
(20,780)
314
(128)
(22)
\u2013
\u2013
778
(19,838)
\n
Interest payable
(247)
\u2013
(30)
(753)
\u2013
\u2013
786
(244)
\n
Derivative \ufb01nancial instruments
(74)
\u2013
\u2013
\u2013
72
\u2013
(20)
(22)
\n
Total liabilities from \ufb01nancing activities*
(26,441)
342
(157)
(775)
72
\u2013
2,976
(23,983)
\n
*
Excluding cash and cash equivalents, overdrafts and liquid investments.
\n
For further information on signi\ufb01cant changes in net debt see Note 30, \u2018Net debt\u2019.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f33885": {
"value": "44. Financial instruments and related disclosures
The objective of GSK\u2019s Treasury activities is to minimise the
\n
post-tax net cost of \ufb01nancial operations and reduce its
\n
volatility to bene\ufb01t earnings and cash \ufb02ows. GSK uses a variety
\n
of \ufb01nancial instruments to \ufb01nance its operations and derivative
\n
\ufb01nancial instruments to manage market risks from these
\n
operations. Derivatives principally comprise foreign exchange
\n
forward contracts and swaps which are used to swap
\n
borrowings and liquid assets into currencies required for Group
\n
purposes as well as interest rate swaps which are used to
\n
manage exposure to \ufb01nancial risks from changes in interest
\n
rates. These \ufb01nancial instruments reduce the uncertainty of
\n
foreign currency transactions and interest payments.
\n
Derivatives are used exclusively for hedging purposes in
\n
relation to underlying business activities and not as trading or
\n
speculative instruments.
\n
Capital management
\n
GSK\u2019s \ufb01nancial strategy supports the Group\u2019s strategic priorities
\n
and is regularly reviewed by the Board. GSK manages the
\n
capital structure of the Group through an appropriate mix of
\n
debt and equity.
\n
The capital structure of the Group consists of net debt of
\n
\u00a317.2 billion (see Note 30, \u2018Net debt\u2019) and total equity, including
\n
items related to non-controlling interests, of \u00a310.1 billion (see
\n
\u2018Consolidated statement of changes in equity\u2019 on page 184).
\n
Total capital, including that provided by non-controlling
\n
interests, is \u00a327.3 billion.
\n
The Group continues to manage its \ufb01nancial policies to a credit
\n
pro\ufb01le that particularly targets short-term credit ratings of A-1
\n
and P-1 while maintaining single A long-term ratings consistent
\n
with those targets. The Group\u2019s long-term credit rating with
\n
Standard & Poor\u2019s is A (stable outlook) and with Moody\u2019s
\n
Investor Services (\u2018Moody\u2019s\u2019) it is A2 (stable outlook). The
\n
Group\u2019s short-term credit ratings are A-1 and P-1 with Standard
\n
& Poor\u2019s and Moody\u2019s respectively.
\n
Liquidity risk management
\n
GSK\u2019s policy is to borrow centrally in order to meet anticipated
\n
funding requirements. The strategy is to diversify liquidity
\n
sources using a range of facilities and to maintain broad
\n
access to \ufb01nancial markets. Each day, we sweep cash to or
\n
from a number of global subsidiaries and central Treasury
\n
accounts for liquidity management purposes. GSK utilises both
\n
physical and notional cash pool arrangements as appropriate
\n
by location and currency. For notional cash pools, liquidity is
\n
drawn against foreign currency balances to provide both local
\n
funding and central liquidity as required and with balances
\n
actively managed and maintained to appropriate levels. As
\n
balances in notional pooling arrangements are not settled
\n
across currencies, gross cash and overdraft balances are
\n
reported.
\n
At 31 December 2022, GSK had \u00a34 billion of borrowings
\n
repayable within one year and held \u00a33.8 billion of cash and
\n
cash equivalents and liquid investments of which \u00a33.1 billion
\n
was held centrally.
\n
GSK has access to short-term \ufb01nance under a $10 billion
\n
(\u00a38.3 billion) US commercial paper programme; $900 million
\n
(\u00a3748 million) was in issue at 31 December 2022 (2021: $nil).
\n
GSK has access to short-term \ufb01nance under a \u00a35 billion Euro
\n
commercial paper programme; \u20ac500 million (\u00a3443 million)
\n
was in issue at 31 December 2022 (2021: \u20ac300 million (\u00a3252
\n
million)). In February 2022 GSK cancelled the \u00a31.9 billion three
\n
year and $2.5 billion (\u00a32.1 billion) 364 day committed facilities
\n
and replaced them with new revolving credit facilities of
\n
equivalent size with maturities of September 2025 and
\n
September 2023 respectively. Post separation of the Consumer
\n
Healthcare business these facilities were reduced to
\n
\u00a31.6 billion and $2.2 billion (\u00a31.8 billion) respectively.
\n
These committed facilities were undrawn at 31 December
\n
2022. GSK considers this level of committed facilities to be
\n
adequate, given current liquidity requirements.
\n
GSK has a \u00a320.0 billion Euro Medium Term Note programme
\n
and at 31 December 2022, \u00a310.3 billion of notes were in issue
\n
under this programme. The Group also had $9.7 billion
\n
(\u00a38.1 billion) of notes in issue at 31 December 2022 under a US
\n
shelf registration. GSK is currently in the process of renewing its
\n
US shelf registration statement in order to maintain access to
\n
the US debt markets. GSK\u2019s borrowings mature at dates
\n
between 2023 and 2045.
\n
The put option owned by P\ufb01zer in ViiV Healthcare is
\n
exercisable. In reviewing liquidity requirements GSK considers
\n
that suf\ufb01cient \ufb01nancing options are available should the put
\n
option be exercised.
\n
Market risk
\n
Interest rate risk management
\n
GSK\u2019s objective is to minimise the effective net interest cost and
\n
to balance the mix of debt at \ufb01xed and \ufb02oating rates over time.
\n
The Group\u2019s main interest rate risk arises from borrowings and
\n
investments with \ufb02oating rates and re\ufb01nancing of maturing
\n
\ufb01xed rate debt where any changes in interest rates will affect
\n
future cash \ufb02ows or the fair values of \ufb01nancial instruments. The
\n
policy on interest rate risk management limits the net amount
\n
of \ufb02oating rate debt to a speci\ufb01c cap, reviewed and agreed no
\n
less than annually by the Board.
\n
The majority of debt is issued at \ufb01xed interest rates and
\n
changes in the \ufb02oating rates of interest do not signi\ufb01cantly
\n
affect the Group\u2019s net interest charge. Short-term borrowings
\n
including bank facilities are exposed to the risk of future
\n
changes in market interest rates as are the majority of cash
\n
and liquid investments.
\n
\n
\n
\n\n
Foreign exchange risk management
\n
The Group\u2019s objective is to minimise the exposure of overseas
\n
operating subsidiaries to transaction risk by matching local
\n
currency income with local currency costs where possible.
\n
Foreign currency transaction exposures arising on external
\n
and internal trade \ufb02ows are selectively hedged. GSK\u2019s internal
\n
trading transactions are matched centrally and inter-company
\n
payment terms are managed to reduce foreign currency risk.
\n
Where possible, GSK manages the cash surpluses or borrowing
\n
requirements of subsidiary companies centrally using forward
\n
contracts to hedge future repayments back into the originating
\n
currency.
\n
In order to reduce foreign currency translation exposure, the
\n
Group seeks to denominate borrowings in the currencies of our
\n
principal assets and cash \ufb02ows. These are primarily
\n
denominated in US Dollars, Euros and Sterling. Borrowings can
\n
be swapped into other currencies as required.
\n
Borrowings denominated in, or swapped into, foreign
\n
currencies that match investments in overseas Group assets
\n
may be treated as a hedge against the relevant assets.
\n
Forward contracts in major currencies are also used to reduce
\n
exposure to the Group\u2019s investment in overseas assets (see \u2018Net
\n
investment hedges\u2019 section of this note for further details).
\n
Credit risk
\n
Credit risk is the risk that a counterparty will default on its
\n
contractual obligations resulting in \ufb01nancial loss to the Group
\n
and arises on cash and cash equivalents and favourable
\n
derivative \ufb01nancial instruments held with banks and \ufb01nancial
\n
institutions as well as credit exposures to wholesale and retail
\n
customers, including outstanding receivables.
\n
The Group considers its maximum credit risk at 31 December
\n
2022 to be \u00a310,180 million (31 December 2021: \u00a311,417 million)
\n
which is the total of the Group\u2019s \ufb01nancial assets with the
\n
exception of \u2019Other investments\u2019 (comprising equity
\n
investments) which bear equity risk rather than credit risk. See
\n
page 249 for details on the Group\u2019s total \ufb01nancial assets. At 31
\n
December 2022, GSK\u2019s greatest concentration of credit risk
\n
was \u00a31.1 billion with a wholesaler in the US (2021: \u00a30.9 billion
\n
with a wholesaler in the US). See page 247 for further
\n
information on the Group\u2019s credit risk exposure in respect of the
\n
three largest US wholesaler customers.
\n
There has been no change in the estimation techniques or
\n
signi\ufb01cant assumptions made during the current reporting
\n
period in assessing the loss allowance for \ufb01nancial assets at
\n
amortised cost or at FVTOCI since the adoption of IFRS 9 at
\n
the start of the 2018 reporting period.
\n
Treasury-related credit risk
\n
GSK sets global counterparty limits for each of GSK\u2019s banking
\n
and investment counterparties based on long-term credit
\n
ratings from Moody\u2019s and Standard & Poor\u2019s. Usage of these
\n
limits is actively monitored.
\n
GSK actively manages its exposure to credit risk, reducing
\n
surplus cash balances wherever possible. This is part of GSK\u2019s
\n
strategy to regionalise cash management and to concentrate
\n
cash centrally as much as possible. The table below sets out
\n
the credit exposure to counterparties by rating for liquid
\n
investments, cash and cash equivalents and derivatives.
\n
The gross asset position on each derivative contract is
\n
considered for the purpose of this table, although, under ISDA
\n
agreements, the amount at risk is the net position with each
\n
counterparty. Table (e) on page 257 sets out the Group\u2019s
\n
\ufb01nancial assets and liabilities on an offset basis.
\n
\n
\n
\n
\n\n
At 31 December 2022, \u00a360 million (2021: \u00a354 million) of cash is categorised as held with unrated or sub-investment grade rated
\n
counterparties (lower than BBB-/Baa3) of which \u00a3nil (2021: \u00a37 million) is cash in transit. The remaining exposure is concentrated in
\n
overseas banks used for local cash management or investment purposes, including: \u00a323 million in Nigeria held with United Bank for
\n
Africa, Zenith Bank, Access Bank and Stanbic IBTC Bank; \u00a314 million with Halk Bank in the UK; \u00a36 million with Produbanco in Ecuador;
\n
\u00a32 million with J Trust Royal Bank in Cambodia; \u00a32 million with Banco Do Brasil in Brazil; \u00a31 million with Banco de Honduras in Honduras;
\n
and \u00a31 million with BAC San Jos\u00e9 in Costa Rica. Of the \u00a349 million of bank balances and deposits held with BBB/Baa rated
\n
counterparties, \u00a31.4 million was held with BBB-/Baa3 rated counterparties, including balances or deposits of \u00a31 million with State Bank
\n
of India in India. These banks are used for local investment purposes.
\n
GSK measures expected credit losses over cash and cash equivalents as a function of individual counterparty credit ratings and
\n
associated 12 month default rates. Expected credit losses over cash and cash equivalents and third-party \ufb01nancial derivatives are
\n
deemed to be immaterial and no such loss has been experienced during 2022.
\n
Credit ratings are assigned by Standard & Poor\u2019s and Moody\u2019s respectively. Where the opinions of the two rating agencies differ, GSK
\n
assigns the lower rating of the two to the counterparty. Where local rating agency or Fitch data is the only source available, the
\n
ratings are converted to global ratings equivalent to those of Standard & Poor\u2019s or Moody\u2019s using published conversion tables. These
\n
credit ratings form the basis of the assessment of the expected credit loss on Treasury-related balances held at amortised cost being
\n
bank balances and deposits and Government securities.
\n
2022
\n
AAA/Aaa
\n
\u00a3m
\n
AA/Aa
\n
\u00a3m
\n
A/A
\n
\u00a3m
\n
BBB/Baa
\n
\u00a3m
\n
BB+/Ba1
\n
and below
\n
/unrated
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Bank balances and deposits
\u2013
\u2013
1,215
49
60
1,324
\n
US Treasury and Treasury repo only money market funds
146
\u2013
\u2013
\u2013
\u2013
146
\n
Liquidity funds
2,253
\u2013
\u2013
\u2013
\u2013
2,253
\n
Government securities
\u2013
67
\u2013
\u2013
\u2013
67
\n
Third party \ufb01nancial derivatives
\u2013
\u2013
188
\u2013
\u2013
188
\n
Total
2,399
67
1,403
49
60
3,978
\n
2021
\n
AAA/Aaa
\n
\u00a3m
\n
AA/Aa
\n
\u00a3m
\n
A/A
\n
\u00a3m
\n
BBB/Baa
\n
\u00a3m
\n
BB+/Ba1
\n
and below
\n
/unrated
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Bank balances and deposits
\u2013
7
2,687
77
54
2,825
\n
US Treasury and Treasury repo only money market funds
54
\u2013
\u2013
\u2013
\u2013
54
\n
Liquidity funds
1,395
\u2013
\u2013
\u2013
\u2013
1,395
\n
Government securities
\u2013
60
\u2013
1
\u2013
61
\n
Third party \ufb01nancial derivatives
\u2013
\u2013
200
\u2013
\u2013
200
\n
Total
1,449
67
2,887
78
54
4,535
\n
\n
GSK\u2019s centrally managed cash reserves amounted to \u00a33.1 billion
\n
at 31 December 2022, all available within three months. This
\n
includes \u00a32.2 billion of cash managed by the Group for ViiV
\n
Healthcare, a 78.3% owned subsidiary. The Group has invested
\n
centrally managed liquid assets in bank deposits, Aaa/AAA rated
\n
US Treasury and Treasury repo only money market funds and
\n
Aaa/AAA rated liquidity funds.
\n
Wholesale and retail credit risk
\n
Outside the US, no customer accounts for more than 5% of the
\n
Group\u2019s trade receivables balance.
\n
In the US, in line with other pharmaceutical companies, the Group
\n
sells its products through a small number of wholesalers in
\n
addition to hospitals, pharmacies, physicians and other groups.
\n
Sales to the three largest wholesalers amounted to approximately
\n
79% (2021: 75%) of the sales of the US Commercial Operations
\n
business in 2022.
\n
At 31 December 2022, the Group had trade receivables due
\n
from these three wholesalers totalling \u00a33,001 million or 55% of
\n
total trade receivables (2021: \u00a32,430 million or 39%). The Group
\n
is exposed to a concentration of credit risk in respect of these
\n
wholesalers such that, if one or more of them encounters \ufb01nancial
\n
dif\ufb01culty, it could materially and adversely affect the Group\u2019s
\n
\ufb01nancial results.
\n
This concentration of trade receivables is re\ufb02ective of standard
\n
market practice in the US pharmaceuticals sector where a
\n
signi\ufb01cant portion of sales are made to these three wholesalers,
\n
as disclosed in Note 6. GSK\u2019s assessment is that there is limited
\n
credit risk associated with these customers.
\n
The Group\u2019s credit risk monitoring activities relating to these
\n
wholesalers include a review of their quarterly \ufb01nancial
\n
information and Standard & Poor\u2019s credit ratings, development of
\n
GSK internal risk ratings, and establishment and periodic review
\n
of credit limits.
\n
All new customers are subject to a credit vetting process and
\n
existing customers will be subject to a review at least annually.
\n
The vetting process and subsequent reviews involve obtaining
\n
information including the customer\u2019s status as a government or
\n
private sector entity, audited \ufb01nancial statements, credit bureau
\n
reports, debt rating agency (eg Moody\u2019s, Standard & Poor\u2019s)
\n
reports, payment performance history (from trade references,
\n
industry credit groups) and bank references.
\n
\n
\n\n
Trade receivables consist of amounts due from a large number
\n
of customers, spread across diverse industries and
\n
geographical areas. Ongoing credit evaluation is performed
\n
on the \ufb01nancial condition of accounts receivable and, where
\n
appropriate, credit insurance is purchased or factoring
\n
arrangements put in place.
\n
The amount of information obtained is proportional to the level
\n
of exposure being considered. The information is evaluated
\n
quantitatively (i.e. credit score) and qualitatively (i.e. judgement) in
\n
conjunction with the customer\u2019s credit requirements to determine
\n
a credit limit.
\n
Trade receivables are grouped into customer segments that have
\n
similar loss patterns to assess credit risk while other receivables
\n
and other \ufb01nancial assets are assessed individually. Historical and
\n
forward-looking information is considered to determine the
\n
appropriate expected credit loss allowance.
\n
The Group believes there is no further credit risk provision required
\n
in excess of the allowance for expected credit losses (see Note 26,
\n
\u2018Trade and other receivables\u2019).
\n
Credit enhancements
\n
The Group uses credit enhancements including factoring
\n
and credit insurance to minimise the credit risk of the trade
\n
receivables in the Group. At 31 December 2022, \u00a3332 million
\n
(2021: \u00a3315 million) of trade receivables were insured in order to
\n
protect the receivables from loss due to credit risks such as
\n
default, insolvency and bankruptcy.
\n
Each Group entity assesses the credit risk of its private
\n
customers to determine if credit insurance is required.
\n
Factoring arrangements are managed locally by entities and
\n
are used to mitigate risk arising from large credit risk
\n
concentrations. All factoring arrangements are non-recourse.
\n
Fair value of \ufb01nancial assets and liabilities
\n
excluding lease liabilities
\n
The table on page 249 presents the carrying amounts and the
\n
fair values of the Group\u2019s \ufb01nancial assets and liabilities
\n
excluding lease liabilities at 31 December 2022 and
\n
31 December 2021.
\n
The fair values of the \ufb01nancial assets and liabilities are
\n
included at the price that would be received to sell an asset or
\n
paid to transfer a liability in an orderly transaction between
\n
market participants at the measurement date.
\n
The following methods and assumptions are used to measure
\n
the fair values of signi\ufb01cant \ufb01nancial instruments carried at fair
\n
value on the balance sheet:
\n
\u2013
Other investments \u2013 equity investments traded in an active
\n
market determined by reference to the relevant stock
\n
exchange quoted bid price; other equity investments
\n
determined by reference to the current market value of
\n
similar instruments, recent \ufb01nancing rounds or the
\n
discounted cash \ufb02ows of the underlying net assets
\n
\u2013
Trade receivables carried at fair value \u2013 based on invoiced
\n
amount
\n
\u2013
Interest rate swaps, foreign exchange forward contracts,
\n
swaps and options \u2013 based on the present value of
\n
contractual cash \ufb02ows or option valuation models using
\n
market sourced data (exchange rates or interest rates) at the
\n
balance sheet date
\n
\u2013
Cash and cash equivalents carried at fair value \u2013 based on
\n
net asset value of the funds
\n
\u2013
Contingent consideration for business acquisitions and
\n
divestments \u2013 based on present values of expected future
\n
cash \ufb02ows.
\n
The following methods and assumptions are used to estimate
\n
the fair values of signi\ufb01cant \ufb01nancial instruments which are not
\n
measured at fair value on the balance sheet:
\n
\u2013
Receivables and payables, including put options, carried at
\n
amortised cost \u2013 approximates to the carrying amount
\n
\u2013
Liquid investments \u2013 approximates to the carrying amount
\n
\u2013
Cash and cash equivalents carried at amortised cost \u2013
\n
approximates to the carrying amount
\n
\u2013
Long-term loans \u2013 based on quoted market prices (a level 1
\n
fair value measurement) in the case of European and US
\n
Medium Term Notes; approximates to the carrying amount
\n
in the case of\u2008other \ufb01xed rate borrowings and \ufb02oating rate
\n
bank loans
\n
\u2013
Short-term loans, overdrafts and commercial paper \u2013
\n
approximates to the carrying amount because of the short
\n
maturity of these instruments.
\n
\n
\n
\n
\n\n
2022
2021
\n
Notes
\n
Carrying
\n
value
\n
\u00a3m
\n
Fair
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Fair
\n
value
\n
\u00a3m
\n
Financial assets measured at amortised cost:
\n
Other non-current assets
b
21
21
21
21
\n
Trade and other receivables
b
3,789
3,789
4,830
4,830
\n
Liquid investments
67
67
61
61
\n
Cash and cash equivalents
1,324
1,324
2,825
2,825
\n
Financial assets measured at fair value through other comprehensive
\n
income (FVTOCI):
\n
Other investments designated at FVTOCI
a
1,153
1,153
1,927
1,927
\n
Trade and other receivables
a,b
2,327
2,327
1,943
1,943
\n
Financial assets mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Current equity investments and Other investments
a
4,401
4,401
199
199
\n
Other non-current assets
a,b
13
13
23
23
\n
Trade and other receivables
a,b
50
50
59
59
\n
Held for trading derivatives that are not in a designated and
\n
effective hedging relationship
a,d,e
165
165
83
83
\n
Cash and cash equivalents
a
2,399
2,399
1,449
1,449
\n
Derivatives designated and effective as hedging instruments (fair value movements
\n
through Other comprehensive income)
a,d,e
25
25
123
123
\n
Total \ufb01nancial assets
15,734
15,734
13,543
13,543
\n
Financial liabilities measured at amortised cost:
\n
Borrowings excluding obligations under lease liabilities:
\n
\u2013
bonds in a designated hedging relationship
d
(6,322)
(6,035)
(4,982)
(5,311)
\n
\u2013
other bonds
(12,017)
(11,930)
(17,373)
(20,746)
\n
\u2013
bank loans and overdrafts
(447)
(447)
(550)
(550)
\n
\u2013
commercial paper in a designated hedging relationship
(443)
(443)
(252)
(252)
\n
\u2013
other commercial paper
(748)
(748)
\u2013
\u2013
\n
\u2013
other borrowings
(2)
(2)
(1)
(1)
\n
Total borrowings excluding lease liabilities
f
(19,979)
(19,605)
(23,158)
(26,860)
\n
Trade and other payables
c
(14,065)
(14,065)
(15,431)
(15,431)
\n
Other provisions
d
(63)
(63)
(113)
(113)
\n
Other non-current liabilities
c
(84)
(84)
(52)
(52)
\n
Financial liabilities mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Contingent consideration liabilities
a,c
(7,068)
(7,068)
(6,076)
(6,076)
\n
Held for trading derivatives that are not in a designated and
\n
effective hedging relationship
a,d,e
(77)
(77)
(171)
(171)
\n
Derivatives designated and effective as hedging instruments (fair value movements
\n
through Other comprehensive income)
a,d,e
(106)
(106)
(57)
(57)
\n
Total \ufb01nancial liabilities excluding lease liabilities
(41,442)
(41,068)
(45,058)
(48,760)
\n
Net \ufb01nancial assets and \ufb01nancial liabilities excluding lease liabilities
(25,708)
(25,334)
(31,515)
(35,217)
\n
The valuation methodology used to measure fair value in the above table is described and categorised on page 248.
\n
Trade and other receivables, Other non-current assets, Trade and other payables, Other provisions, Contingent consideration
\n
liabilities and Other non-current liabilities are reconciled to the relevant Notes on pages 251 to 252.
\n
\n
\n
\n\n
Fair value of investments in GSK shares
\n
At 31 December 2022, the Employee Share Ownership Plan (ESOP) Trusts held GSK shares with a carrying value of \u00a3354 million
\n
(2021: \u00a328 million) and a market value of \u00a3861 million (2021: \u00a3373 million) based on quoted market price. The shares are held by the
\n
ESOP Trusts to satisfy future exercises of options and awards under employee incentive schemes. In 2022, the carrying value,
\n
which is the lower of cost or expected proceeds, of these shares has been recognised as a deduction from other reserves.
\n
At 31 December 2022, GSK held Treasury shares at a cost of \u00a33,797 million (2021: \u00a34,969 million) which has been deducted from
\n
retained earnings.
\n
(a) Financial instruments held at fair value
\n
The following tables categorise the Group\u2019s \ufb01nancial assets and liabilities held at fair value by the valuation methodology applied
\n
in determining their fair value. Where possible, quoted prices in active markets are used (Level 1). Where such prices are not
\n
available, the asset or liability is classi\ufb01ed as Level 2, provided all signi\ufb01cant inputs to the valuation model used are based on
\n
observable market data. If one or more of the signi\ufb01cant inputs to the valuation model is not based on observable market data,
\n
the instrument is classi\ufb01ed as Level 3. Other investments classi\ufb01ed as Level 3 in the tables below comprise equity investments in
\n
unlisted entities with which the Group has entered into research collaborations and investments which provide access to
\n
biotechnology developments of potential interest.
\n
At 31 December 2022
\n
Level 1
\n
\u00a3m
\n
Level 2
\n
\u00a3m
\n
Level 3
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Financial assets at fair value
\n
Financial assets measured at fair value through other comprehensive income (FVTOCI):
\n
Other investments designated at FVTOCI
823
\u2013
330
1,153
\n
Trade and other receivables
\u2013
2,327
\u2013
2,327
\n
Financial assets mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Current equity investments and Other investments
4,087
\u2013
314
4,401
\n
Other non-current assets
\u2013
\u2013
13
13
\n
Trade and other receivables
\u2013
50
\u2013
50
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
165
\u2013
165
\n
Cash and cash equivalents
2,399
\u2013
\u2013
2,399
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
25
\u2013
25
\n
7,309
2,567
657
10,533
\n
Financial liabilities at fair value
\n
Financial liabilities mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Contingent consideration liabilities
\u2013
\u2013
(7,068)
(7,068)
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
(77)
\u2013
(77)
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
(106)
\u2013
(106)
\n
\u2013
(183)
(7,068)
(7,251)
\n
At 31 December 2021
\n
Level 1
\n
\u00a3m
\n
Level 2
\n
\u00a3m
\n
Level 3
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Financial assets at fair value
\n
Financial assets measured at fair value through other comprehensive income (FVTOCI):
\n
Other investments designated at FVTOCI
1,736
\u2013
191
1,927
\n
Trade and other receivables
\u2013
1,943
\u2013
1,943
\n
Financial assets mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Other investments
\u2013
\u2013
199
199
\n
Other non-current assets
\u2013
\u2013
23
23
\n
Trade and other receivables
\u2013
59
\u2013
59
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
77
6
83
\n
Cash and cash equivalents
1,449
\u2013
\u2013
1,449
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
123
\u2013
123
\n
3,185
2,202
419
5,806
\n
Financial liabilities at fair value
\n
Financial liabilities mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Contingent consideration liabilities
\u2013
\u2013
(6,076)
(6,076)
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
(171)
\u2013
(171)
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
(57)
\u2013
(57)
\n
\u2013
(228)
(6,076)
(6,304)
\n
\n
\n
\n
\n\n
Movements in the year for \ufb01nancial instruments measured using Level 3 valuation methods are presented below:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
At 1 January
(5,657)
(5,064)
\n
Exchange adjustments
46
4
\n
Net losses recognised in the income statement
(1,627)
(1,024)
\n
Net gains recognised in other comprehensive income
91
185
\n
Contingent consideration related to business acquisitions in the period
(482)
\u2013
\n
Settlement of contingent consideration liabilities
1,137
856
\n
Additions
97
99
\n
Disposals and settlements
(16)
(19)
\n
Transfers from Level 3
\u2013
(694)
\n
At 31 December
(6,411)
(5,657)
\n
Of the total net losses of \u00a31,627 million (2021: \u00a31,024 million) attributable to Level 3 \ufb01nancial instruments which were recognised in
\n
the income statement, \u00a31,623 million (2021: \u00a31,024 million) were in respect of \ufb01nancial instruments which were held at the end of
\n
the year and were reported in Other operating income/expense. Charges of \u00a31,431 million (2021: \u00a31,026 million) arose from
\n
remeasurement of the contingent consideration payable for the acquisition of the former Shionogi-ViiV Healthcare joint venture
\n
and \u00a3231 million (2021: \u00a332 million) arose from remeasurement of the contingent consideration payable for the acquisition of the
\n
Novartis Vaccines business. The acquisition of Af\ufb01nivax in 2022 resulted in the additon of \u00a3482 million of contingent consideration
\n
to Level 3 \ufb01nancial liabilities, with a further \u00a317 million remeasurement charge arising for the period between acquisition and 31
\n
December 2022. There were no transfers into or out of Level 3 \ufb01nancial instruments in the year (2021 \u2013 transfers related to equity
\n
instruments which transferred to a Level 1 valuation methodology as a result of listing on a recognised stock exchange during the
\n
year). Movements arising on the translation of overseas net assets for consolidation into the Group accounts are recorded as
\n
Exchange adjustments. Net gains and losses include the impact of other exchange movements.
\n
Financial liabilities measured using Level 3 valuation methods at 31 December included \u00a35,890 million (2021: \u00a35,559 million) in
\n
respect of contingent consideration payable for the acquisition in 2012 of the former Shionogi-ViiV Healthcare joint venture. This
\n
consideration is expected to be paid over a number of years and will vary in line with the future performance of speci\ufb01ed products
\n
and movements in certain foreign currencies. A further \u00a3673 million (2021: \u00a3479 million) is in respect of contingent consideration for
\n
the acquisition in 2015 of the Novartis Vaccines business. This consideration is expected to be paid over a number of years and will
\n
vary in line with the future performance of speci\ufb01ed products, the achievement of certain milestone targets and movements in
\n
certain foreign currencies. As a result of the Group\u2019s acquisition of Af\ufb01nivax in 2022, contingent consideration payable of \u00a3501
\n
million is recognised at 31 December 2022. This consideration is expected to be paid over a number of years and will vary in line
\n
with the achievement of certain development milestones and movements in the USD/GBP exchange rate. Sensitivity analysis on
\n
these balances is provided in Note 33, \u2018Contingent consideration liabilities\u2019.
\n
(b) Trade and other receivables and Other non-current assets in scope of IFRS 9
\n
The following table reconciles \ufb01nancial instruments within Trade and other receivables and Other non-current assets which fall
\n
within the scope of IFRS 9 to the relevant balance sheet amounts. The \ufb01nancial assets are predominantly non-interest earning.
\n
Non-\ufb01nancial instruments include tax receivables, pension surplus balances and prepayments, which are outside the scope of
\n
IFRS 9.
\n
2022
2021
\n
At
\n
FVTPL
\n
\u00a3m
\n
At
\n
FVTOCI
\n
\u00a3m
\n
Amortised
\n
cost
\n
\u00a3m
\n
Financial
\n
instruments
\n
\u00a3m
\n
Non-
\n
\ufb01nancial
\n
instruments
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At
\n
FVTPL
\n
\u00a3m
\n
At
\n
FVTOCI
\n
\u00a3m
\n
Amortised
\n
cost
\n
\u00a3m
\n
Financial
\n
instruments
\n
\u00a3m
\n
Non-
\n
\ufb01nancial
\n
instruments
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Trade and other receivables
\n
(Note 26)
50
2,327
3,789
6,166
887
7,053
59
1,943
4,830
6,832
1,028
7,860
\n
Other non-current assets
\n
(Note 24)
13
\u2013
21
34
1,160
1,194
23
\u2013
21
44
1,632
1,676
\n
63
2,327
3,810
6,200
2,047
8,247
82
1,943
4,851
6,876
2,660
9,536
\n
Trade and other receivables include trade receivables of \u00a35,452 million (2021: \u00a36,246 million). The Group has portfolios in each of the
\n
three business models under IFRS 9: \u00a350 million (2021: \u00a359 million), measured at FVTPL, is held to sell the contractual cash \ufb02ows as
\n
the receivables will be sold under a factoring arrangement, \u00a32,327 million (2021: \u00a31,943 million), measured at FVTOCI, is held to either
\n
collect or sell the contractual cash \ufb02ows as the receivables may be sold under a factoring agreement, and \u00a33,075 million (2021:
\n
\u00a34,244 million), measured at amortised cost, is held to collect the contractual cash \ufb02ows and there is no factoring agreement in
\n
place.
\n
\n
\n
\n\n
(c) Trade and other payables, Other provisions, Contingent consideration liabilities and Other non-
\n
current liabilities in scope of IFRS 9
\n
The following table reconciles \ufb01nancial instruments within Trade and other payables, Other provisions, Contingent consideration
\n
liabilities and Other non-current liabilities which fall within the scope of IFRS 9 to the relevant balance sheet amounts. The
\n
\ufb01nancial liabilities are predominantly non-interest bearing. Non-\ufb01nancial instruments include payments on account, tax and
\n
social security payables and provisions which do not arise from contractual obligations to deliver cash or another \ufb01nancial asset,
\n
which are outside the scope of IFRS 9.
\n
2022
2021
\n
At FVTPL
\n
\u00a3m
\n
Amortised
\n
cost
\n
\u00a3m
\n
Financial
\n
instruments
\n
\u00a3m
\n
Non-
\n
\ufb01nancial
\n
instruments
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At FVTPL
\n
\u00a3m
\n
Amortised
\n
cost
\n
\u00a3m
\n
Financial
\n
instruments
\n
\u00a3m
\n
Non-
\n
\ufb01nancial
\n
instruments
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Trade and other payables
\n
(Note 29)
\u2013
(14,065)
(14,065)
(2,198)
(16,263)
\u2013
(15,431)
(15,431)
(2,123)
(17,554)
\n
Other provisions
\n
(Note 32)
\u2013
(63)
(63)
(1,121)
(1,184)
\u2013
(113)
(113)
(1,358)
(1,471)
\n
Contingent consideration
\n
liabilities (Note 33)
(7,068)
\u2013
(7,068)
\u2013
(7,068)
(6,076)
\u2013
(6,076)
\u2013
(6,076)
\n
Other non-current
\n
liabilities
(Note 34)
\u2013
(84)
(84)
(815)
(899)
\u2013
(52)
(52)
(869)
(921)
\n
(7,068)
(14,212)
(21,280)
(4,134)
(25,414)
(6,076)
(15,596)
(21,672)
(4,350)
(26,022)
\n
(d) Derivative \ufb01nancial instruments and hedging programmes
\n
Derivatives are only used for economic hedging purposes and not as speculative investments and are classi\ufb01ed as \u2018held for
\n
trading\u2019, other than designated and effective hedging instruments, and are presented as current assets or liabilities if they are
\n
expected to be settled within 12 months after the end of the reporting period, otherwise they are classi\ufb01ed as non-current. The
\n
Group has the following derivative \ufb01nancial instruments:
\n
2022
\n
Fair value
\n
2021
\n
Fair value
\n
Assets
\n
\u00a3m
\n
Liabilities
\n
\u00a3m
\n
Assets
\n
\u00a3m
\n
Liabilities
\n
\u00a3m
\n
Non-current
\n
Cash \ufb02ow hedges \u2013 Interest rate swap contracts
\n
(principal amount \u2013 \u00a3nil (2021: \u00a31,996 million))
\u2013
\u2013
12
(1)
\n
Current
\n
Cash \ufb02ow hedges \u2013 Foreign exchange contracts
\n
(principal amount \u2013 \u00a3167 million (2021: \u00a3160 million))
5
\u2013
\u2013
(3)
\n
Net investment hedges \u2013 Foreign exchange contracts
\n
(principal amount \u2013 \u00a37,197 million (2021: \u00a35,469 million))
20
(106)
111
(53)
\n
Derivatives designated and effective as hedging instruments
25
(106)
123
(57)
\n
Non-current
\n
Embedded and other derivatives
\u2013
\u2013
6
\u2013
\n
Current
\n
Foreign exchange contracts
\n
(principal amount \u2013 \u00a35,908 million (2021: \u00a39,728 million))
163
(76)
77
(169)
\n
Embedded and other derivatives
2
(1)
\u2013
(2)
\n
Derivatives classi\ufb01ed as held for trading
165
(77)
83
(171)
\n
Total derivative instruments
190
(183)
206
(228)
\n
\n
\n
\n
\n\n
Fair value hedges
\n
At 31 December 2022 and 31 December 2021, the Group had no designated fair value hedges.
\n
Net investment hedges
\n
At 31 December 2022, certain foreign exchange contracts were designated as net investment hedges in respect of the foreign
\n
currency translation risk arising on consolidation of the Group\u2019s net investment in its European (Euro), Singaporean (SGD),
\n
Canadian (CAD) and Japanese (JPY) foreign operations as shown in the table above.
\n
The carrying value of bonds on page 249 included \u00a36,322 million (2021: \u00a34,982 million) that were designated as hedging
\n
instruments in net investment hedges.
\n
Cash \ufb02ow hedges
\n
During 2021 and 2022, the Group entered into forward foreign exchange contracts which have been designated as cash \ufb02ow
\n
hedges. These were entered into to hedge the foreign exchange exposure arising on cash \ufb02ows from Euro denominated coupon
\n
payments relating to notes issued under the Group\u2019s European Medium Term Note programme, and to hedge foreign currency
\n
payments due on collaboration or licensing arrangements.
\n
The Group manages its cash \ufb02ow interest rate risk by using \ufb02oating-to-\ufb01xed interest rate swaps. In addition, the Group carries a
\n
balance in reserves that arose from pre-hedging \ufb02uctuations in long-term interest rates when pricing bonds issued in prior years
\n
and in the current year. The balance is reclassi\ufb01ed to \ufb01nance costs over the life of these bonds.
\n
Foreign exchange risk
\n
In the current year, the Group has designated certain foreign exchange forward contracts and swaps as cash \ufb02ow and net
\n
investment hedges. Foreign exchange derivative \ufb01nancial assets and liabilities are presented in the line \u2018Derivative \ufb01nancial
\n
instruments\u2019 (either as assets or liabilities) on the Consolidated balance sheet. The following tables detail the foreign exchange
\n
forward contracts and swaps outstanding at the end of the reporting period, as well as information on the related hedged items.
\n
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness
\n
assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Group enters
\n
into hedge relationships where the critical terms of the hedging instrument match exactly with the terms of the hedged item, and
\n
so a qualitative assessment of effectiveness is performed. If changes in circumstances affect the terms of the hedged item such
\n
that the critical terms no longer match exactly with the critical terms of the hedging instrument, the Group uses the hypothetical
\n
derivative method to assess effectiveness.
\n
The main source of hedge ineffectiveness in these hedging relationships is the effect of the counterparty and the Group\u2019s own
\n
credit risk on the fair value of the foreign exchange forward contracts and swaps, which is not re\ufb02ected in the fair value of the
\n
hedged item attributable to changes in foreign exchange rates and ineffectiveness on rolling the cash \ufb02ow hedges of the
\n
divestments mentioned above. No other sources of ineffectiveness emerged from these hedging relationships. No ineffectiveness
\n
was recorded from cash \ufb02ow hedges in 2022 (2021: \u00a3nil). No ineffectiveness was recorded from net investment hedges (2021: \u00a3nil).
\n
2022
\n
Hedging instruments
\n
Average
\n
exchange rate
\n
Foreign
\n
currency
\n
Notional
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Periodic
\n
change in
\n
value for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Cash \ufb02ow hedges
\n
Foreign exchange contracts
\n
Buy foreign currency:
\n
Less than 3 months
1.23
USD
100
2
2
\n
3 to 6 months
1.16
EUR
50
2
2
\n
Over 6 months
1.15
EUR
24
1
1
\n
Sell foreign currency
\n
Less than 3 months
1.14
EUR
(7)
\u2013
\u2013
\n
167
5
5
\n
\n
\n
\n\n
2022
\n
Hedging instruments
\n
Average
\n
exchange rate
\n
Foreign
\n
currency
\n
Notional
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Periodic
\n
change in
\n
value for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Net investment hedges
\n
Foreign exchange contracts
\n
Sell foreign currency:
\n
Less than 3 months
1.14
EUR
6,559
(103)
(317)
\n
160.90
JPY
194
(3)
(9)
\n
Over 6 months
1.57
CAD
270
18
15
\n
1.59
SGD
174
2
1
\n
Borrowings
\n
Less than 3 months
EUR
293
(293)
(4)
\n
3 to 6 months
EUR
150
(150)
(3)
\n
Over 6 months
EUR
6,341
(6,322)
(300)
\n
13,981
(6,851)
(617)
\n
2022
\n
Hedged items
\n
Periodic change in value
\n
for calculating hedge
\n
ineffectiveness
\n
\u00a3m
\n
Cumulative balance in cash
\n
\ufb02ow hedge reserve/foreign
\n
currency translation reserve
\n
for continuing hedges
\n
\u00a3m
\n
Balance in cash \ufb02ow hedge
\n
reserve arising from hedging
\n
relationships for which hedge
\n
accounting is no longer
\n
applied
\n
\u00a3m
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows from a highly probable forecast transaction
(2)
2
\u2013
\n
Variability in cash \ufb02ows from foreign exchange exposure arising on
\n
Euro denominated coupon payments relating to debt issued
(3)
2
\u2013
\n
Net investment hedges
\n
Net investment in foreign operations
617
(1,120)
\u2013
\n
2021
\n
Hedging instruments
\n
Average
\n
exchange rate
\n
Foreign
\n
currency
\n
Notional
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Periodic
\n
change in
\n
value for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Cash \ufb02ow hedges
\n
Foreign exchange contracts
\n
Buy foreign currency:
\n
Less than 3 months
1.32
USD
89
(2)
\u2013
\n
3 to 6 months
1.17
EUR
48
(1)
(1)
\n
Over 6 months
1.17
EUR
23
\u2013
\u2013
\n
160
(3)
(1)
\n
2021
\n
Hedging instruments
\n
Average
\n
exchange rate
\n
Foreign
\n
currency
\n
Notional
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Periodic
\n
change in
\n
value for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Net investment hedges
\n
Foreign exchange contracts
\n
Sell foreign currency:
\n
Less than 3 months
1.18
EUR
5,348
58
578
\n
SGD
\u2013
\u2013
55
\n
155.19
JPY
121
\u2013
15
\n
Borrowings
\n
Less than 3 months
EUR
252
(252)
11
\n
Over 6 months
EUR
4,998
(4,982)
459
\n
10,719
(5,176)
1,118
\n
\n
\n
\n
\n\n
2021
\n
Hedged items
\n
Periodic change in value
\n
for calculating hedge
\n
ineffectiveness
\n
\u00a3m
\n
Cumulative balance in cash
\n
\ufb02ow hedge reserve/foreign
\n
currency translation reserve
\n
for continuing hedges
\n
\u00a3m
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows from foreign exchange exposure arising on
\n
Euro denominated coupon payments relating to debt issued
\n
1
(1)
\n
Net investment hedges
\n
Net investment in foreign operations
(1,117)
(873)
\n
\u00a33 million (2021: \u00a319 million) of balances in the cash \ufb02ow hedge reserve arise from hedging relationships for which hedge
\n
accounting is no longer applied.
\n
The following table details the effectiveness of the hedging relationships and the amounts reclassi\ufb01ed from the hedging reserve to
\n
pro\ufb01t or loss:
\n
2022
\n
Amount reclassi\ufb01ed to pro\ufb01t or loss
Amount reclassi\ufb01ed to balance sheet
\n
Hedging
\n
gains/(losses)
\n
recognised in
\n
reserves
\n
\u00a3m
\n
Amount
\n
of hedge
\n
ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or
\n
loss in
\n
which hedge
\n
ineffectiveness
\n
is included
\n
Hedged
\n
future cash
\n
\ufb02ows
\n
no longer
\n
expected to
\n
occur
\n
\u00a3m
\n
Due to
\n
hedged item
\n
affecting
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item in
\n
pro\ufb01t or loss
\n
in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Due to hedged
\n
item affecting
\n
balance sheet
\n
\u00a3m
\n
Line item
\n
in balance
\n
sheet in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows from
\n
a highly probable forecast
\n
transaction
\n
(5)
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
\u2013
8
Intangible
\n
assets
\n
Variability in cash \ufb02ows from
\n
foreign exchange exposure
\n
arising on Euro denominated
\n
coupon payments relating to
\n
debt issued
\n
4
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
(2)
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
\n
Net investment hedges
\n
Net investment in foreign
\n
operations
\n
(617)
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
194 Discontinued
\n
operations
\n
(1)
\n
\u2013
\u2013
\n
2021
\n
Amount reclassi\ufb01ed to pro\ufb01t or loss
Amount reclassi\ufb01ed to balance sheet
\n
Hedging
\n
gains/(losses)
\n
recognised in
\n
reserves
\n
\u00a3m
\n
Amount
\n
of hedge
\n
ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or
\n
loss in
\n
which hedge
\n
ineffectiveness
\n
is included
\n
Hedged
\n
future cash
\n
\ufb02ows
\n
no longer
\n
expected to
\n
occur
\n
\u00a3m
\n
Due to
\n
hedged item
\n
affecting
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item in
\n
pro\ufb01t or loss
\n
in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Due to hedged
\n
item affecting
\n
balance sheet
\n
\u00a3m
\n
Line item
\n
in balance
\n
sheet in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows from
\n
a highly probable forecast
\n
transaction
\n
7
\u2013
Other
\n
operating
\n
income/
\n
(expense)
\n
\u2013
(7)
Other
\n
operating
\n
income/
\n
(expense)
\n
\u2013
\u2013
\n
Variability in cash \ufb02ows from
\n
foreign exchange exposure
\n
arising on Euro denominated
\n
coupon payments relating to
\n
debt issued
\n
(1)
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
\n
Net investment hedges
\n
Net investment in foreign
\n
operations
\n
1,117
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
(7)
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
\n
(1)
Reclassi\ufb01ed to the Consolidated income statement on the demerger of the Consumer Healthcare business.
\n
\n
\n
\n\n
Interest rate risk
\n
The Group manages its cash \ufb02ow interest rate risk by using \ufb02oating-to-\ufb01xed interest rate swaps, where at quarterly intervals the
\n
difference between \ufb01xed contract rates and \ufb02oating rate interest amounts calculated by reference to the agreed notional
\n
principal amounts are exchanged.
\n
There are none of these swaps outstanding at 31 December 2022. At 31 December 2021, the interest rate risk on an element of
\n
future debt issuance had been managed by entering into forward starting interest rate swaps, effectively to lock in the interest
\n
rates on the debt in advance. These were closed out at the time of issuing the debt, and the resulting gain or loss held in the Cash
\n
\ufb02ow hedge reserve and reclassi\ufb01ed to income statement as the interest payments on the debt impacted the income statement
\n
until the debt was derecognised on demerger of the Consumer Healthcare business in July 2022.
\n
Forward starting interest rate swaps
\n
The forward starting interest rate contracts, exchanging \ufb02oating interest for \ufb01xed interest, were designated as cash \ufb02ow hedges
\n
to hedge the interest variability of the interest cash \ufb02ows associated with the future \ufb01xed rate debt.
\n
Interest rate swaps
\n
The following tables provide information regarding interest rate swap and forward starting interest rate swap contracts
\n
outstanding and the related hedged items at 31 December 2021. There were no such swaps at 31 December 2022. Interest rate
\n
swap contract assets and liabilities are presented in the line \u2018Derivative \ufb01nancial instruments\u2019 (either as assets or liabilities) on the
\n
Consolidated balance sheet.
\n
\u00a324 million (2021: \u00a311 million) of balances in the cash \ufb02ow hedge reserve arise from hedge relationships for which hedge
\n
accounting is no longer applied.
\n
2021
\n
Hedging instruments
\n
Average
\n
contracted
\n
\ufb01xed rate
\n
%
\n
Notional
\n
principal
\n
value
\n
\u00a3m
\n
Change in
\n
fair value for
\n
recognising
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Fair value
\n
assets/
\n
(liabilities)
\n
\u00a3m
\n
5-10 years
1.1038
668
4
4
\n
10-30 years
1.3385
935
3
3
\n
More than 30 years
1.4515
393
4
4
\n
2021
\n
Hedged items
\n
Change in
\n
value used for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Balance in
\n
cash \ufb02ow
\n
hedge reserve
\n
for continuing
\n
hedges
\n
after tax
\n
\u00a3m
\n
Pre-hedging of long-term interest rate
(11)
(8)
\n
\n
\n
\n
\n\n
The following table details the effectiveness of the hedging relationships and the amounts reclassi\ufb01ed from the hedging reserve to pro\ufb01t
\n
or loss:
\n
2022
\n
Amount reclassi\ufb01ed to pro\ufb01t or loss
\n
Hedging
\n
gains/(losses)
\n
recognised in
\n
reserves
\n
\u00a3m
\n
Amount
\n
of hedge
\n
ineffectiveness
\n
recognised
\n
in pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or
\n
loss in
\n
which hedge
\n
ineffectiveness
\n
is included
\n
Due to
\n
hedged future
\n
cash \ufb02ows
\n
no longer
\n
expected to
\n
occur
\n
\u00a3m
\n
Due to
\n
hedged item
\n
affecting
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or loss
\n
in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Cash \ufb02ow hedges
\n
Pre-hedging of long-term interest rates:
\n
Matured in the past
(23)
\u2013
\n
Finance
\n
income or
\n
expense
\n
\u2013
3
\n
Finance
\n
income or
\n
expense
\n
2021
\n
Amount reclassi\ufb01ed to pro\ufb01t or loss
\n
Hedging
\n
gains/(losses)
\n
recognised in
\n
reserves
\n
\u00a3m
\n
Amount
\n
of hedge
\n
ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or
\n
loss in
\n
which hedge
\n
ineffectiveness
\n
is included
\n
Due to
\n
hedged future
\n
cash \ufb02ows
\n
no longer
\n
expected to
\n
occur
\n
\u00a3m
\n
Due to
\n
hedged item
\n
affecting
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or loss
\n
in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows
(11)
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
17
Finance
\n
income or
\n
expense
\n
Pre-hedging of long-term interest rates:
\n
Matured in the past
\u2013
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
2
Finance
\n
income or
\n
expense
\n
5-10 years
4
\u2013
\u2013
\u2013
\n
10-30 years
3
\u2013
\u2013
\u2013
\n
>30 years
4
\u2013
\u2013
\u2013
\n
(e) Offsetting of \ufb01nancial assets and liabilities
\n
Financial assets and liabilities are offset and the net amount reported in the balance sheet where there is a legally enforceable
\n
right to offset the recognised amounts, and there is an intention to settle on a net basis or realise the asset and settle the liability
\n
simultaneously. There are also arrangements that do not meet the criteria for offsetting but still allow for the related amounts to
\n
be offset in certain circumstances, such as bankruptcy or the termination of a contract.
\n
The following tables set out the \ufb01nancial assets and liabilities that are offset, or subject to enforceable master netting
\n
arrangements and other similar agreements but not offset, as at 31 December 2022 and 31 December 2021. The column \u2018Net
\n
amount\u2019 shows the impact on the Group\u2019s balance sheet if all offset rights were exercised.
\n
At 31 December 2022
\n
Gross
\n
\ufb01nancial
\n
assets/
\n
(liabilities)
\n
\u00a3m
\n
Gross
\n
\ufb01nancial
\n
(liabilities)/
\n
assets set off
\n
\u00a3m
\n
Net \ufb01nancial
\n
assets/
\n
(liabilities) per
\n
balance sheet
\n
\u00a3m
\n
Related
\n
amounts not
\n
set off in the
\n
balance sheet
\n
\u00a3m
\n
Net
\n
\u00a3m
\n
Financial assets
\n
Trade and other receivables
6,166
\u2013
6,166
\u2013
6,166
\n
Derivative \ufb01nancial instruments
190
\u2013
190
(163)
27
\n
Financial liabilities
\n
Trade and other payables
(14,065)
\u2013
(14,065)
\u2013
(14,065)
\n
Derivative \ufb01nancial instruments
(183)
\u2013
(183)
163
(20)
\n
\n
\n
\n\n
At 31 December 2021
\n
Gross
\n
\ufb01nancial
\n
assets/
\n
(liabilities)
\n
\u00a3m
\n
Financial
\n
(liabilities)/
\n
assets
\n
offset
\n
\u00a3m
\n
Net \ufb01nancial
\n
assets/
\n
(liabilities)
\n
\u00a3m
\n
Related
\n
amounts not
\n
offset
\n
\u00a3m
\n
Net
\n
balance
\n
\u00a3m
\n
Financial assets
\n
Trade and other receivables
6,851
(19)
6,832
(3)
6,829
\n
Derivative \ufb01nancial instruments
206
\u2013
206
(192)
14
\n
Financial liabilities
\n
Trade and other payables
(15,450)
19
(15,431)
3
(15,428)
\n
Derivative \ufb01nancial instruments
(228)
\u2013
(228)
192
(36)
\n
Amounts which do not meet the criteria for offsetting on the balance sheet but could be settled net in certain circumstances
\n
principally relate to derivative transactions under ISDA (International Swaps and Derivatives Association) agreements where each
\n
party has the option to settle amounts on a net basis in the event of default of the other party. As there is presently not a legally
\n
enforceable right of offset, these amounts have not been offset in the balance sheet, but have been presented separately in the
\n
table above.
\n
(f) Debt interest rate repricing table
\n
The following table sets out the exposure of the Group to interest rates on debt, including commercial paper. The maturity analysis
\n
of \ufb01xed rate debt is stated by contractual maturity and of \ufb02oating rate debt by interest rate repricing dates. For the purpose of this
\n
table, debt is de\ufb01ned as all classes of borrowings other than lease liabilities.
\n
2022
2021
\n
Total
\n
debt
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Floating and \ufb01xed rate debt less than one year
(3,785)
(3,398)
\n
Between one and two years
(1,714)
(4,030)
\n
Between two and three years
(1,490)
(1,576)
\n
Between three and four years
(1,505)
(1,365)
\n
Between four and \ufb01ve years
(748)
(1,425)
\n
Between \ufb01ve and ten years
(4,736)
(4,411)
\n
Greater than ten years
(6,001)
(6,953)
\n
Total
(19,979)
(23,158)
\n
Original issuance pro\ufb01le:
\n
Fixed rate interest
(18,355)
(22,355)
\n
Floating rate interest
(1,624)
(803)
\n
(19,979)
(23,158)
\n
\n
\n
\n
\n\n
(g) Sensitivity analysis
\n
The tables below illustrate the estimated impact on the income statement and equity as a result of hypothetical market
\n
movements in foreign exchange and interest rates in relation to the Group\u2019s \ufb01nancial instruments. The range of variables chosen
\n
for the sensitivity analysis re\ufb02ects management\u2019s view of changes which are reasonably possible over a one-year period.
\n
Foreign exchange sensitivity
\n
The Group operates internationally and is primarily exposed to foreign exchange risk in relation to Sterling against movements in
\n
US Dollar, Euro and Japanese Yen. Foreign exchange risk arises from the translation of \ufb01nancial assets and liabilities which are not
\n
in the functional currency of the entity that holds them. Based on the Group\u2019s net \ufb01nancial assets and liabilities as at 31 December,
\n
a weakening and strengthening of Sterling against these currencies, with all other variables held constant, is illustrated in the
\n
tables below. The tables exclude \ufb01nancial instruments that expose the Group to foreign exchange risk where this risk is fully
\n
hedged with another \ufb01nancial instrument.
\n
2022
2021
\n
Income statement impact of non-functional currency foreign exchange exposures
\n
Increase/(decrease) in
\n
income
\n
\u00a3m
\n
Increase/(decrease) in
\n
income
\n
\u00a3m
\n
10 cent appreciation of the US Dollar
99
5
\n
15 cent appreciation of the US Dollar
155
8
\n
10 cent appreciation of the Euro
(7)
(26)
\n
15 cent appreciation of the Euro
(12)
(41)
\n
10 yen appreciation of the Yen
\u2013
\u2013
\n
15 yen appreciation of the Yen
(1)
\u2013
\n
2022
2021
\n
Income statement impact of non-functional currency foreign exchange exposures
\n
Increase/(decrease) in
\n
income
\n
\u00a3m
\n
Increase/(decrease) in
\n
income
\n
\u00a3m
\n
10 cent depreciation of the US Dollar
(84)
(4)
\n
15 cent depreciation of the US Dollar
(121)
(6)
\n
10 cent depreciation of the Euro
6
22
\n
15 cent depreciation of the Euro
9
32
\n
10 yen depreciation of the Yen
\u2013
\u2013
\n
15 yen depreciation of the Yen
\u2013
\u2013
\n
The equity impact, shown below, for foreign exchange sensitivity relates to derivative and non-derivative \ufb01nancial instruments
\n
hedging the Group\u2019s net investments in its European (Euro) foreign operations and cash \ufb02ow hedges of its foreign exchange
\n
exposure arising on Euro denominated coupon payments relating to notes issued under the Group\u2019s European Medium Term
\n
Note programme.
\n
2022
2021
\n
Equity impact of non-functional currency foreign exchange exposures
\n
Increase/(decrease)
\n
in equity
\n
\u00a3m
\n
Increase/(decrease)
\n
in equity
\n
\u00a3m
\n
10 cent appreciation of the Euro
(1,290)
(964)
\n
15 cent appreciation in Euro
(2,034)
(1,515)
\n
2022
2021
\n
Equity impact of non-functional currency foreign exchange exposures
\n
Increase/(decrease)
\n
in equity
\n
\u00a3m
\n
Increase/(decrease)
\n
in equity
\n
\u00a3m
\n
10 cent depreciation of the Euro
1,080
814
\n
15 cent depreciation of the Euro
1,557
1,176
\n
\n
\n
\n\n
The tables below present the Group\u2019s sensitivity to a weakening and strengthening of Sterling against the relevant currency based
\n
on the composition of net debt as shown in Note 30 adjusted for the effects of foreign exchange derivatives that are not part of
\n
net debt but affect future foreign currency cash \ufb02ows.
\n
2022
2021
\n
Impact of foreign exchange movements on net debt
\n
(Increase)/decrease
\n
in net debt
\n
\u00a3m
\n
(Increase)/decrease
\n
in net debt
\n
\u00a3m
\n
10 cent appreciation of the US Dollar
(999)
(767)
\n
15
cent appreciation of the US Dollar
(1,570)
(1,199)
\n
10 cent appreciation of the Euro
11
444
\n
15 cent appreciation of the Euro
17
698
\n
10 yen appreciation of the Yen
13
17
\n
15 yen appreciation of the Yen
20
26
\n
2022
2021
\n
Impact of foreign exchange movements on net debt
\n
(Increase)/decrease
\n
in net debt
\n
\u00a3m
\n
(Increase)/decrease
\n
in net debt
\n
\u00a3m
\n
10 cent depreciation of the US Dollar
846
661
\n
15 cent depreciation of the US Dollar
1,222
959
\n
10 cent depreciation of the Euro
(9)
(375)
\n
15 cent depreciation of the Euro
(13)
(542)
\n
10 yen depreciation of the Yen
(12)
(15)
\n
15 yen depreciation of the Yen
(17)
(21)
\n
Interest rate sensitivity
\n
The Group is exposed to interest rate risk on its outstanding borrowings and investments where any changes in interest rates will
\n
affect future cash \ufb02ows or the fair values of \ufb01nancial instruments.
\n
The majority of debt is issued at \ufb01xed interest rates and changes in the \ufb02oating rates of interest do not signi\ufb01cantly affect the
\n
Group\u2019s net interest charge, although the majority of cash and liquid investments earn \ufb02oating rates of interest.
\n
The table below hypothetically shows the Group\u2019s sensitivity to changes in interest rates in relation to Sterling, US Dollar and Euro
\n
\ufb02oating rate \ufb01nancial assets and liabilities. A 1% (100 basis points) movement in USD interest rates would cause an increase of \u00a3nil
\n
to equity (2021: \u00a3197 million). A 1.5% (150 basis points) movement in USD interest rates would cause an increase of \u00a3nil to equity
\n
(2021: \u00a3297 million). A 1% (100 basis points) or 1.5% (150 basis points) movement in EUR or Sterling interest rates is not deemed to
\n
have a material effect on equity.
\n
2022
2021
\n
Income statement impact of interest rate movements
\n
Increase/(decrease)
\n
in income
\n
\u00a3m
\n
Increase/(decrease)
\n
in income
\n
\u00a3m
\n
1% (100 basis points) increase in Sterling interest rates
36
(25)
\n
1.5% (150 basis points) increase in Sterling interest rates
55
(38)
\n
1% (100 basis points) increase in US Dollar interest rates
(34)
11
\n
1.5% (150 basis points) increase in US Dollar interest rates
(51)
17
\n
1% (100 basis points) increase in Euro interest rates
(13)
3
\n
1.5% (150 basis points) increase in Euro interest rates
(19)
5
\n
\n
\n
\n
\n\n
(h) Contractual cash \ufb02ows for non-derivative \ufb01nancial liabilities and derivative instruments
\n
The following tables provide an analysis of the anticipated contractual cash \ufb02ows including interest payable for the Group\u2019s
\n
non-derivative \ufb01nancial liabilities on an undiscounted basis. For the purpose of this table, debt is de\ufb01ned as all classes of
\n
borrowings except for lease liabilities. Interest is calculated based on debt held at 31 December without taking account of future
\n
issuance. Floating rate interest is estimated using the prevailing interest rate at the balance sheet date. Cash \ufb02ows in foreign
\n
currencies are translated using spot rates at 31 December.
\n
At 31 December 2022
\n
Debt
\n
\u00a3m
\n
Interest
\n
on debt
\n
\u00a3m
\n
Lease
\n
liabilities
\n
\u00a3m
\n
Finance
\n
charge
\n
on lease
\n
liabilities
\n
\u00a3m
\n
Trade payables
\n
and other
\n
liabilities not
\n
in net debt
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Due in less than one year
(3,786)
(594)
(167)
(25)
(15,362)
(19,934)
\n
Between one and two years
(1,717)
(570)
(201)
(22)
(1,097)
(3,607)
\n
Between two and three years
(1,496)
(531)
(127)
(19)
(1,034)
(3,207)
\n
Between three and four years
(1,508)
(489)
(97)
(15)
(1,277)
(3,386)
\n
Between four and \ufb01ve years
(751)
(472)
(80)
(13)
(1,008)
(2,324)
\n
Between \ufb01ve and ten years
(4,765)
(1,810)
(201)
(41)
(2,641)
(9,458)
\n
Greater than ten years
(6,063)
(1,856)
(135)
(11)
(1,134)
(9,199)
\n
Gross contractual cash \ufb02ows
(20,086)
(6,322)
(1,008)
(146)
(23,553)
(51,115)
\n
At 31 December 2021
\n
Debt
\n
\u00a3m
\n
Interest
\n
on debt
\n
\u00a3m
\n
Lease
\n
liabilities
\n
\u00a3m
\n
Finance
\n
charge
\n
on lease
\n
liabilities
\n
\u00a3m
\n
Trade payables
\n
and other
\n
liabilities not
\n
in net debt
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Due in less than one year
(3,399)
(686)
(203)
(25)
(16,432)
(20,745)
\n
Between one and two years
(4,042)
(620)
(185)
(22)
(935)
(5,804)
\n
Between two and three years
(1,582)
(574)
(120)
(19)
(893)
(3,188)
\n
Between three and four years
(1,372)
(538)
(93)
(16)
(919)
(2,938)
\n
Between four and \ufb01ve years
(1,428)
(500)
(73)
(14)
(924)
(2,939)
\n
Between \ufb01ve and ten years
(4,440)
(2,046)
(205)
(44)
(2,703)
(9,438)
\n
Greater than ten years
(7,033)
(2,639)
(136)
(13)
(1,571)
(11,392)
\n
Gross contractual cash \ufb02ows
(23,296)
(7,603)
(1,015)
(153)
(24,377)
(56,444)
\n
The table below provides an analysis of the anticipated contractual cash \ufb02ows for the Group\u2019s derivative instruments excluding
\n
equity options which do not give rise to cash \ufb02ows, and other embedded derivatives, which are not material, using undiscounted
\n
cash \ufb02ows. Cash \ufb02ows in foreign currencies are translated using spot rates at 31 December. The gross cash \ufb02ows of foreign
\n
exchange contracts are presented for the purpose of this table although, in practice, the Group uses standard settlement
\n
arrangements to reduce its liquidity requirements on these instruments.
\n
2022
2021
\n
Gross cash in\ufb02ows
Gross cash out\ufb02ows
Gross cash in\ufb02ows
Gross cash out\ufb02ows
\n
Forward
\n
starting
\n
interest rate
\n
swaps
\n
\u00a3m
\n
Foreign
\n
exchange
\n
forward
\n
contracts
\n
and swaps
\n
\u00a3m
\n
Forward
\n
starting
\n
interest rate
\n
swaps
\n
\u00a3m
\n
Foreign
\n
exchange
\n
forward
\n
contracts
\n
and swaps
\n
\u00a3m
\n
Forward
\n
starting
\n
interest rate
\n
swaps
\n
\u00a3m
\n
Foreign
\n
exchange
\n
forward
\n
contracts
\n
and swaps
\n
\u00a3m
\n
Forward
\n
starting
\n
interest rate
\n
swaps
\n
\u00a3m
\n
Foreign
\n
exchange
\n
forward
\n
contracts
\n
and swaps
\n
\u00a3m
\n
Less than one year
\u2013
24,418
\u2013
(24,410)
\u2013
41,252
(13)
(41,290)
\n
Between one and two years
\u2013
\u2013
\u2013
\u2013
12
\u2013
(26)
\u2013
\n
Between two and three years
\u2013
\u2013
\u2013
\u2013
24
\u2013
(26)
\u2013
\n
Between three and four years
\u2013
\u2013
\u2013
\u2013
28
\u2013
(26)
\u2013
\n
Between four and \ufb01ve years
\u2013
\u2013
\u2013
\u2013
28
\u2013
(26)
\u2013
\n
Greater than \ufb01ve years
\u2013
\u2013
\u2013
\u2013
259
\u2013
(220)
\u2013
\n
Gross contractual cash \ufb02ows
\u2013
24,418
\u2013
(24,410)
351
41,252
(337)
(41,290)",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f33888": {
"value": "The objective of GSK\u2019s Treasury activities is to minimise the
post-tax net cost of \ufb01nancial operations and reduce its
\n
volatility to bene\ufb01t earnings and cash \ufb02ows. GSK uses a variety
\n
of \ufb01nancial instruments to \ufb01nance its operations and derivative
\n
\ufb01nancial instruments to manage market risks from these
\n
operations. Derivatives principally comprise foreign exchange
\n
forward contracts and swaps which are used to swap
\n
borrowings and liquid assets into currencies required for Group
\n
purposes as well as interest rate swaps which are used to
\n
manage exposure to \ufb01nancial risks from changes in interest
\n
rates. These \ufb01nancial instruments reduce the uncertainty of
\n
foreign currency transactions and interest payments.
\n
Derivatives are used exclusively for hedging purposes in
\n
relation to underlying business activities and not as trading or
\n
speculative instruments.
\n
Capital management
\n
GSK\u2019s \ufb01nancial strategy supports the Group\u2019s strategic priorities
\n
and is regularly reviewed by the Board. GSK manages the
\n
capital structure of the Group through an appropriate mix of
\n
debt and equity.
\n
The capital structure of the Group consists of net debt of
\n
\u00a317.2 billion (see Note 30, \u2018Net debt\u2019) and total equity, including
\n
items related to non-controlling interests, of \u00a310.1 billion (see
\n
\u2018Consolidated statement of changes in equity\u2019 on page 184).
\n
Total capital, including that provided by non-controlling
\n
interests, is \u00a327.3 billion.
\n
The Group continues to manage its \ufb01nancial policies to a credit
\n
pro\ufb01le that particularly targets short-term credit ratings of A-1
\n
and P-1 while maintaining single A long-term ratings consistent
\n
with those targets. The Group\u2019s long-term credit rating with
\n
Standard & Poor\u2019s is A (stable outlook) and with Moody\u2019s
\n
Investor Services (\u2018Moody\u2019s\u2019) it is A2 (stable outlook). The
\n
Group\u2019s short-term credit ratings are A-1 and P-1 with Standard
\n
& Poor\u2019s and Moody\u2019s respectively.
\n
Liquidity risk management
\n
GSK\u2019s policy is to borrow centrally in order to meet anticipated
\n
funding requirements. The strategy is to diversify liquidity
\n
sources using a range of facilities and to maintain broad
\n
access to \ufb01nancial markets. Each day, we sweep cash to or
\n
from a number of global subsidiaries and central Treasury
\n
accounts for liquidity management purposes. GSK utilises both
\n
physical and notional cash pool arrangements as appropriate
\n
by location and currency. For notional cash pools, liquidity is
\n
drawn against foreign currency balances to provide both local
\n
funding and central liquidity as required and with balances
\n
actively managed and maintained to appropriate levels. As
\n
balances in notional pooling arrangements are not settled
\n
across currencies, gross cash and overdraft balances are
\n
reported.
\n
At 31 December 2022, GSK had \u00a34 billion of borrowings
\n
repayable within one year and held \u00a33.8 billion of cash and
\n
cash equivalents and liquid investments of which \u00a33.1 billion
\n
was held centrally.
\n
GSK has access to short-term \ufb01nance under a $10 billion
\n
(\u00a38.3 billion) US commercial paper programme; $900 million
\n
(\u00a3748 million) was in issue at 31 December 2022 (2021: $nil).
\n
GSK has access to short-term \ufb01nance under a \u00a35 billion Euro
\n
commercial paper programme; \u20ac500 million (\u00a3443 million)
\n
was in issue at 31 December 2022 (2021: \u20ac300 million (\u00a3252
\n
million)). In February 2022 GSK cancelled the \u00a31.9 billion three
\n
year and $2.5 billion (\u00a32.1 billion) 364 day committed facilities
\n
and replaced them with new revolving credit facilities of
\n
equivalent size with maturities of September 2025 and
\n
September 2023 respectively. Post separation of the Consumer
\n
Healthcare business these facilities were reduced to
\n
\u00a31.6 billion and $2.2 billion (\u00a31.8 billion) respectively.
\n
These committed facilities were undrawn at 31 December
\n
2022. GSK considers this level of committed facilities to be
\n
adequate, given current liquidity requirements.
\n
GSK has a \u00a320.0 billion Euro Medium Term Note programme
\n
and at 31 December 2022, \u00a310.3 billion of notes were in issue
\n
under this programme. The Group also had $9.7 billion
\n
(\u00a38.1 billion) of notes in issue at 31 December 2022 under a US
\n
shelf registration. GSK is currently in the process of renewing its
\n
US shelf registration statement in order to maintain access to
\n
the US debt markets. GSK\u2019s borrowings mature at dates
\n
between 2023 and 2045.
\n
The put option owned by P\ufb01zer in ViiV Healthcare is
\n
exercisable. In reviewing liquidity requirements GSK considers
\n
that suf\ufb01cient \ufb01nancing options are available should the put
\n
option be exercised.
\n
Market risk
\n
Interest rate risk management
\n
GSK\u2019s objective is to minimise the effective net interest cost and
\n
to balance the mix of debt at \ufb01xed and \ufb02oating rates over time.
\n
The Group\u2019s main interest rate risk arises from borrowings and
\n
investments with \ufb02oating rates and re\ufb01nancing of maturing
\n
\ufb01xed rate debt where any changes in interest rates will affect
\n
future cash \ufb02ows or the fair values of \ufb01nancial instruments. The
\n
policy on interest rate risk management limits the net amount
\n
of \ufb02oating rate debt to a speci\ufb01c cap, reviewed and agreed no
\n
less than annually by the Board.
\n
The majority of debt is issued at \ufb01xed interest rates and
\n
changes in the \ufb02oating rates of interest do not signi\ufb01cantly
\n
affect the Group\u2019s net interest charge. Short-term borrowings
\n
including bank facilities are exposed to the risk of future
\n
changes in market interest rates as are the majority of cash
\n
and liquid investments.
\n
\n
\n
\n\n
Foreign exchange risk management
\n
The Group\u2019s objective is to minimise the exposure of overseas
\n
operating subsidiaries to transaction risk by matching local
\n
currency income with local currency costs where possible.
\n
Foreign currency transaction exposures arising on external
\n
and internal trade \ufb02ows are selectively hedged. GSK\u2019s internal
\n
trading transactions are matched centrally and inter-company
\n
payment terms are managed to reduce foreign currency risk.
\n
Where possible, GSK manages the cash surpluses or borrowing
\n
requirements of subsidiary companies centrally using forward
\n
contracts to hedge future repayments back into the originating
\n
currency.
\n
In order to reduce foreign currency translation exposure, the
\n
Group seeks to denominate borrowings in the currencies of our
\n
principal assets and cash \ufb02ows. These are primarily
\n
denominated in US Dollars, Euros and Sterling. Borrowings can
\n
be swapped into other currencies as required.
\n
Borrowings denominated in, or swapped into, foreign
\n
currencies that match investments in overseas Group assets
\n
may be treated as a hedge against the relevant assets.
\n
Forward contracts in major currencies are also used to reduce
\n
exposure to the Group\u2019s investment in overseas assets (see \u2018Net
\n
investment hedges\u2019 section of this note for further details).
\n
Credit risk
\n
Credit risk is the risk that a counterparty will default on its
\n
contractual obligations resulting in \ufb01nancial loss to the Group
\n
and arises on cash and cash equivalents and favourable
\n
derivative \ufb01nancial instruments held with banks and \ufb01nancial
\n
institutions as well as credit exposures to wholesale and retail
\n
customers, including outstanding receivables.
\n
The Group considers its maximum credit risk at 31 December
\n
2022 to be \u00a310,180 million (31 December 2021: \u00a311,417 million)
\n
which is the total of the Group\u2019s \ufb01nancial assets with the
\n
exception of \u2019Other investments\u2019 (comprising equity
\n
investments) which bear equity risk rather than credit risk. See
\n
page 249 for details on the Group\u2019s total \ufb01nancial assets. At 31
\n
December 2022, GSK\u2019s greatest concentration of credit risk
\n
was \u00a31.1 billion with a wholesaler in the US (2021: \u00a30.9 billion
\n
with a wholesaler in the US). See page 247 for further
\n
information on the Group\u2019s credit risk exposure in respect of the
\n
three largest US wholesaler customers.
\n
There has been no change in the estimation techniques or
\n
signi\ufb01cant assumptions made during the current reporting
\n
period in assessing the loss allowance for \ufb01nancial assets at
\n
amortised cost or at FVTOCI since the adoption of IFRS 9 at
\n
the start of the 2018 reporting period.
\n
Treasury-related credit risk
\n
GSK sets global counterparty limits for each of GSK\u2019s banking
\n
and investment counterparties based on long-term credit
\n
ratings from Moody\u2019s and Standard & Poor\u2019s. Usage of these
\n
limits is actively monitored.
\n
GSK actively manages its exposure to credit risk, reducing
\n
surplus cash balances wherever possible. This is part of GSK\u2019s
\n
strategy to regionalise cash management and to concentrate
\n
cash centrally as much as possible. The table below sets out
\n
the credit exposure to counterparties by rating for liquid
\n
investments, cash and cash equivalents and derivatives.
\n
The gross asset position on each derivative contract is
\n
considered for the purpose of this table, although, under ISDA
\n
agreements, the amount at risk is the net position with each
\n
counterparty. Table (e) on page 257 sets out the Group\u2019s
\n
\ufb01nancial assets and liabilities on an offset basis.
\n
\n
\n
\n
\n\n
At 31 December 2022, \u00a360 million (2021: \u00a354 million) of cash is categorised as held with unrated or sub-investment grade rated
\n
counterparties (lower than BBB-/Baa3) of which \u00a3nil (2021: \u00a37 million) is cash in transit. The remaining exposure is concentrated in
\n
overseas banks used for local cash management or investment purposes, including: \u00a323 million in Nigeria held with United Bank for
\n
Africa, Zenith Bank, Access Bank and Stanbic IBTC Bank; \u00a314 million with Halk Bank in the UK; \u00a36 million with Produbanco in Ecuador;
\n
\u00a32 million with J Trust Royal Bank in Cambodia; \u00a32 million with Banco Do Brasil in Brazil; \u00a31 million with Banco de Honduras in Honduras;
\n
and \u00a31 million with BAC San Jos\u00e9 in Costa Rica. Of the \u00a349 million of bank balances and deposits held with BBB/Baa rated
\n
counterparties, \u00a31.4 million was held with BBB-/Baa3 rated counterparties, including balances or deposits of \u00a31 million with State Bank
\n
of India in India. These banks are used for local investment purposes.
\n
GSK measures expected credit losses over cash and cash equivalents as a function of individual counterparty credit ratings and
\n
associated 12 month default rates. Expected credit losses over cash and cash equivalents and third-party \ufb01nancial derivatives are
\n
deemed to be immaterial and no such loss has been experienced during 2022.
\n
Credit ratings are assigned by Standard & Poor\u2019s and Moody\u2019s respectively. Where the opinions of the two rating agencies differ, GSK
\n
assigns the lower rating of the two to the counterparty. Where local rating agency or Fitch data is the only source available, the
\n
ratings are converted to global ratings equivalent to those of Standard & Poor\u2019s or Moody\u2019s using published conversion tables. These
\n
credit ratings form the basis of the assessment of the expected credit loss on Treasury-related balances held at amortised cost being
\n
bank balances and deposits and Government securities.
\n
2022
\n
AAA/Aaa
\n
\u00a3m
\n
AA/Aa
\n
\u00a3m
\n
A/A
\n
\u00a3m
\n
BBB/Baa
\n
\u00a3m
\n
BB+/Ba1
\n
and below
\n
/unrated
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Bank balances and deposits
\u2013
\u2013
1,215
49
60
1,324
\n
US Treasury and Treasury repo only money market funds
146
\u2013
\u2013
\u2013
\u2013
146
\n
Liquidity funds
2,253
\u2013
\u2013
\u2013
\u2013
2,253
\n
Government securities
\u2013
67
\u2013
\u2013
\u2013
67
\n
Third party \ufb01nancial derivatives
\u2013
\u2013
188
\u2013
\u2013
188
\n
Total
2,399
67
1,403
49
60
3,978
\n
2021
\n
AAA/Aaa
\n
\u00a3m
\n
AA/Aa
\n
\u00a3m
\n
A/A
\n
\u00a3m
\n
BBB/Baa
\n
\u00a3m
\n
BB+/Ba1
\n
and below
\n
/unrated
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Bank balances and deposits
\u2013
7
2,687
77
54
2,825
\n
US Treasury and Treasury repo only money market funds
54
\u2013
\u2013
\u2013
\u2013
54
\n
Liquidity funds
1,395
\u2013
\u2013
\u2013
\u2013
1,395
\n
Government securities
\u2013
60
\u2013
1
\u2013
61
\n
Third party \ufb01nancial derivatives
\u2013
\u2013
200
\u2013
\u2013
200
\n
Total
1,449
67
2,887
78
54
4,535
\n
\n
GSK\u2019s centrally managed cash reserves amounted to \u00a33.1 billion
\n
at 31 December 2022, all available within three months. This
\n
includes \u00a32.2 billion of cash managed by the Group for ViiV
\n
Healthcare, a 78.3% owned subsidiary. The Group has invested
\n
centrally managed liquid assets in bank deposits, Aaa/AAA rated
\n
US Treasury and Treasury repo only money market funds and
\n
Aaa/AAA rated liquidity funds.
\n
Wholesale and retail credit risk
\n
Outside the US, no customer accounts for more than 5% of the
\n
Group\u2019s trade receivables balance.
\n
In the US, in line with other pharmaceutical companies, the Group
\n
sells its products through a small number of wholesalers in
\n
addition to hospitals, pharmacies, physicians and other groups.
\n
Sales to the three largest wholesalers amounted to approximately
\n
79% (2021: 75%) of the sales of the US Commercial Operations
\n
business in 2022.
\n
At 31 December 2022, the Group had trade receivables due
\n
from these three wholesalers totalling \u00a33,001 million or 55% of
\n
total trade receivables (2021: \u00a32,430 million or 39%). The Group
\n
is exposed to a concentration of credit risk in respect of these
\n
wholesalers such that, if one or more of them encounters \ufb01nancial
\n
dif\ufb01culty, it could materially and adversely affect the Group\u2019s
\n
\ufb01nancial results.
\n
This concentration of trade receivables is re\ufb02ective of standard
\n
market practice in the US pharmaceuticals sector where a
\n
signi\ufb01cant portion of sales are made to these three wholesalers,
\n
as disclosed in Note 6. GSK\u2019s assessment is that there is limited
\n
credit risk associated with these customers.
\n
The Group\u2019s credit risk monitoring activities relating to these
\n
wholesalers include a review of their quarterly \ufb01nancial
\n
information and Standard & Poor\u2019s credit ratings, development of
\n
GSK internal risk ratings, and establishment and periodic review
\n
of credit limits.
\n
All new customers are subject to a credit vetting process and
\n
existing customers will be subject to a review at least annually.
\n
The vetting process and subsequent reviews involve obtaining
\n
information including the customer\u2019s status as a government or
\n
private sector entity, audited \ufb01nancial statements, credit bureau
\n
reports, debt rating agency (eg Moody\u2019s, Standard & Poor\u2019s)
\n
reports, payment performance history (from trade references,
\n
industry credit groups) and bank references.
\n
\n
\n\n
Trade receivables consist of amounts due from a large number
\n
of customers, spread across diverse industries and
\n
geographical areas. Ongoing credit evaluation is performed
\n
on the \ufb01nancial condition of accounts receivable and, where
\n
appropriate, credit insurance is purchased or factoring
\n
arrangements put in place.
\n
The amount of information obtained is proportional to the level
\n
of exposure being considered. The information is evaluated
\n
quantitatively (i.e. credit score) and qualitatively (i.e. judgement) in
\n
conjunction with the customer\u2019s credit requirements to determine
\n
a credit limit.
\n
Trade receivables are grouped into customer segments that have
\n
similar loss patterns to assess credit risk while other receivables
\n
and other \ufb01nancial assets are assessed individually. Historical and
\n
forward-looking information is considered to determine the
\n
appropriate expected credit loss allowance.
\n
The Group believes there is no further credit risk provision required
\n
in excess of the allowance for expected credit losses (see Note 26,
\n
\u2018Trade and other receivables\u2019).
\n
Credit enhancements
\n
The Group uses credit enhancements including factoring
\n
and credit insurance to minimise the credit risk of the trade
\n
receivables in the Group. At 31 December 2022, \u00a3332 million
\n
(2021: \u00a3315 million) of trade receivables were insured in order to
\n
protect the receivables from loss due to credit risks such as
\n
default, insolvency and bankruptcy.
\n
Each Group entity assesses the credit risk of its private
\n
customers to determine if credit insurance is required.
\n
Factoring arrangements are managed locally by entities and
\n
are used to mitigate risk arising from large credit risk
\nconcentrations. All factoring arrangements are non-recourse.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f33905": {
"value": "Capital management
GSK\u2019s \ufb01nancial strategy supports the Group\u2019s strategic priorities
\n
and is regularly reviewed by the Board. GSK manages the
\n
capital structure of the Group through an appropriate mix of
\n
debt and equity.
\n
The capital structure of the Group consists of net debt of
\n
\u00a317.2 billion (see Note 30, \u2018Net debt\u2019) and total equity, including
\n
items related to non-controlling interests, of \u00a310.1 billion (see
\n
\u2018Consolidated statement of changes in equity\u2019 on page 184).
\n
Total capital, including that provided by non-controlling
\n
interests, is \u00a327.3 billion.
\n
The Group continues to manage its \ufb01nancial policies to a credit
\n
pro\ufb01le that particularly targets short-term credit ratings of A-1
\n
and P-1 while maintaining single A long-term ratings consistent
\n
with those targets. The Group\u2019s long-term credit rating with
\n
Standard & Poor\u2019s is A (stable outlook) and with Moody\u2019s
\n
Investor Services (\u2018Moody\u2019s\u2019) it is A2 (stable outlook). The
\n
Group\u2019s short-term credit ratings are A-1 and P-1 with Standard
\n& Poor\u2019s and Moody\u2019s respectively.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f33927": {
"value": "Liquidity risk management
GSK\u2019s policy is to borrow centrally in order to meet anticipated
\n
funding requirements. The strategy is to diversify liquidity
\n
sources using a range of facilities and to maintain broad
\n
access to \ufb01nancial markets. Each day, we sweep cash to or
\n
from a number of global subsidiaries and central Treasury
\n
accounts for liquidity management purposes. GSK utilises both
\n
physical and notional cash pool arrangements as appropriate
\n
by location and currency. For notional cash pools, liquidity is
\n
drawn against foreign currency balances to provide both local
\n
funding and central liquidity as required and with balances
\n
actively managed and maintained to appropriate levels. As
\n
balances in notional pooling arrangements are not settled
\n
across currencies, gross cash and overdraft balances are
\n
reported.
\n
At 31 December 2022, GSK had \u00a34 billion of borrowings
\n
repayable within one year and held \u00a33.8 billion of cash and
\n
cash equivalents and liquid investments of which \u00a33.1 billion
\n
was held centrally.
\n
GSK has access to short-term \ufb01nance under a $10 billion
\n
(\u00a38.3 billion) US commercial paper programme; $900 million
\n
(\u00a3748 million) was in issue at 31 December 2022 (2021: $nil).
\n
GSK has access to short-term \ufb01nance under a \u00a35 billion Euro
\n
commercial paper programme; \u20ac500 million (\u00a3443 million)
\n
was in issue at 31 December 2022 (2021: \u20ac300 million (\u00a3252
\n
million)). In February 2022 GSK cancelled the \u00a31.9 billion three
\n
year and $2.5 billion (\u00a32.1 billion) 364 day committed facilities
\n
and replaced them with new revolving credit facilities of
\n
equivalent size with maturities of September 2025 and
\n
September 2023 respectively. Post separation of the Consumer
\n
Healthcare business these facilities were reduced to
\n
\u00a31.6 billion and $2.2 billion (\u00a31.8 billion) respectively.
\n
These committed facilities were undrawn at 31 December
\n
2022. GSK considers this level of committed facilities to be
\n
adequate, given current liquidity requirements.
\n
GSK has a \u00a320.0 billion Euro Medium Term Note programme
\n
and at 31 December 2022, \u00a310.3 billion of notes were in issue
\n
under this programme. The Group also had $9.7 billion
\n
(\u00a38.1 billion) of notes in issue at 31 December 2022 under a US
\n
shelf registration. GSK is currently in the process of renewing its
\n
US shelf registration statement in order to maintain access to
\n
the US debt markets. GSK\u2019s borrowings mature at dates
\n
between 2023 and 2045.
\n
The put option owned by P\ufb01zer in ViiV Healthcare is
\n
exercisable. In reviewing liquidity requirements GSK considers
\n
that suf\ufb01cient \ufb01nancing options are available should the put
\noption be exercised.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f33977": {
"value": "Market risk
Interest rate risk management
\n
GSK\u2019s objective is to minimise the effective net interest cost and
\n
to balance the mix of debt at \ufb01xed and \ufb02oating rates over time.
\n
The Group\u2019s main interest rate risk arises from borrowings and
\n
investments with \ufb02oating rates and re\ufb01nancing of maturing
\n
\ufb01xed rate debt where any changes in interest rates will affect
\n
future cash \ufb02ows or the fair values of \ufb01nancial instruments. The
\n
policy on interest rate risk management limits the net amount
\n
of \ufb02oating rate debt to a speci\ufb01c cap, reviewed and agreed no
\n
less than annually by the Board.
\n
The majority of debt is issued at \ufb01xed interest rates and
\n
changes in the \ufb02oating rates of interest do not signi\ufb01cantly
\n
affect the Group\u2019s net interest charge. Short-term borrowings
\n
including bank facilities are exposed to the risk of future
\n
changes in market interest rates as are the majority of cash
\n
and liquid investments.
\n
\n
\n
\n\n
Foreign exchange risk management
\n
The Group\u2019s objective is to minimise the exposure of overseas
\n
operating subsidiaries to transaction risk by matching local
\n
currency income with local currency costs where possible.
\n
Foreign currency transaction exposures arising on external
\n
and internal trade \ufb02ows are selectively hedged. GSK\u2019s internal
\n
trading transactions are matched centrally and inter-company
\n
payment terms are managed to reduce foreign currency risk.
\n
Where possible, GSK manages the cash surpluses or borrowing
\n
requirements of subsidiary companies centrally using forward
\n
contracts to hedge future repayments back into the originating
\n
currency.
\n
In order to reduce foreign currency translation exposure, the
\n
Group seeks to denominate borrowings in the currencies of our
\n
principal assets and cash \ufb02ows. These are primarily
\n
denominated in US Dollars, Euros and Sterling. Borrowings can
\n
be swapped into other currencies as required.
\n
Borrowings denominated in, or swapped into, foreign
\n
currencies that match investments in overseas Group assets
\n
may be treated as a hedge against the relevant assets.
\n
Forward contracts in major currencies are also used to reduce
\n
exposure to the Group\u2019s investment in overseas assets (see \u2018Net
\ninvestment hedges\u2019 section of this note for further details).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f34049": {
"value": "Credit risk
Credit risk is the risk that a counterparty will default on its
\n
contractual obligations resulting in \ufb01nancial loss to the Group
\n
and arises on cash and cash equivalents and favourable
\n
derivative \ufb01nancial instruments held with banks and \ufb01nancial
\n
institutions as well as credit exposures to wholesale and retail
\n
customers, including outstanding receivables.
\n
The Group considers its maximum credit risk at 31 December
\n
2022 to be \u00a310,180 million (31 December 2021: \u00a311,417 million)
\n
which is the total of the Group\u2019s \ufb01nancial assets with the
\n
exception of \u2019Other investments\u2019 (comprising equity
\n
investments) which bear equity risk rather than credit risk. See
\n
page 249 for details on the Group\u2019s total \ufb01nancial assets. At 31
\n
December 2022, GSK\u2019s greatest concentration of credit risk
\n
was \u00a31.1 billion with a wholesaler in the US (2021: \u00a30.9 billion
\n
with a wholesaler in the US). See page 247 for further
\n
information on the Group\u2019s credit risk exposure in respect of the
\n
three largest US wholesaler customers.
\n
There has been no change in the estimation techniques or
\n
signi\ufb01cant assumptions made during the current reporting
\n
period in assessing the loss allowance for \ufb01nancial assets at
\n
amortised cost or at FVTOCI since the adoption of IFRS 9 at
\n
the start of the 2018 reporting period.
\n
Treasury-related credit risk
\n
GSK sets global counterparty limits for each of GSK\u2019s banking
\n
and investment counterparties based on long-term credit
\n
ratings from Moody\u2019s and Standard & Poor\u2019s. Usage of these
\n
limits is actively monitored.
\n
GSK actively manages its exposure to credit risk, reducing
\n
surplus cash balances wherever possible. This is part of GSK\u2019s
\n
strategy to regionalise cash management and to concentrate
\n
cash centrally as much as possible. The table below sets out
\n
the credit exposure to counterparties by rating for liquid
\n
investments, cash and cash equivalents and derivatives.
\n
The gross asset position on each derivative contract is
\n
considered for the purpose of this table, although, under ISDA
\n
agreements, the amount at risk is the net position with each
\n
counterparty. Table (e) on page 257 sets out the Group\u2019s
\n
\ufb01nancial assets and liabilities on an offset basis.
\n
\n
\n
\n
\n\n
At 31 December 2022, \u00a360 million (2021: \u00a354 million) of cash is categorised as held with unrated or sub-investment grade rated
\n
counterparties (lower than BBB-/Baa3) of which \u00a3nil (2021: \u00a37 million) is cash in transit. The remaining exposure is concentrated in
\n
overseas banks used for local cash management or investment purposes, including: \u00a323 million in Nigeria held with United Bank for
\n
Africa, Zenith Bank, Access Bank and Stanbic IBTC Bank; \u00a314 million with Halk Bank in the UK; \u00a36 million with Produbanco in Ecuador;
\n
\u00a32 million with J Trust Royal Bank in Cambodia; \u00a32 million with Banco Do Brasil in Brazil; \u00a31 million with Banco de Honduras in Honduras;
\n
and \u00a31 million with BAC San Jos\u00e9 in Costa Rica. Of the \u00a349 million of bank balances and deposits held with BBB/Baa rated
\n
counterparties, \u00a31.4 million was held with BBB-/Baa3 rated counterparties, including balances or deposits of \u00a31 million with State Bank
\n
of India in India. These banks are used for local investment purposes.
\n
GSK measures expected credit losses over cash and cash equivalents as a function of individual counterparty credit ratings and
\n
associated 12 month default rates. Expected credit losses over cash and cash equivalents and third-party \ufb01nancial derivatives are
\n
deemed to be immaterial and no such loss has been experienced during 2022.
\n
Credit ratings are assigned by Standard & Poor\u2019s and Moody\u2019s respectively. Where the opinions of the two rating agencies differ, GSK
\n
assigns the lower rating of the two to the counterparty. Where local rating agency or Fitch data is the only source available, the
\n
ratings are converted to global ratings equivalent to those of Standard & Poor\u2019s or Moody\u2019s using published conversion tables. These
\n
credit ratings form the basis of the assessment of the expected credit loss on Treasury-related balances held at amortised cost being
\n
bank balances and deposits and Government securities.
\n
2022
\n
AAA/Aaa
\n
\u00a3m
\n
AA/Aa
\n
\u00a3m
\n
A/A
\n
\u00a3m
\n
BBB/Baa
\n
\u00a3m
\n
BB+/Ba1
\n
and below
\n
/unrated
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Bank balances and deposits
\u2013
\u2013
1,215
49
60
1,324
\n
US Treasury and Treasury repo only money market funds
146
\u2013
\u2013
\u2013
\u2013
146
\n
Liquidity funds
2,253
\u2013
\u2013
\u2013
\u2013
2,253
\n
Government securities
\u2013
67
\u2013
\u2013
\u2013
67
\n
Third party \ufb01nancial derivatives
\u2013
\u2013
188
\u2013
\u2013
188
\n
Total
2,399
67
1,403
49
60
3,978
\n
2021
\n
AAA/Aaa
\n
\u00a3m
\n
AA/Aa
\n
\u00a3m
\n
A/A
\n
\u00a3m
\n
BBB/Baa
\n
\u00a3m
\n
BB+/Ba1
\n
and below
\n
/unrated
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Bank balances and deposits
\u2013
7
2,687
77
54
2,825
\n
US Treasury and Treasury repo only money market funds
54
\u2013
\u2013
\u2013
\u2013
54
\n
Liquidity funds
1,395
\u2013
\u2013
\u2013
\u2013
1,395
\n
Government securities
\u2013
60
\u2013
1
\u2013
61
\n
Third party \ufb01nancial derivatives
\u2013
\u2013
200
\u2013
\u2013
200
\n
Total
1,449
67
2,887
78
54
4,535
\n
\n
GSK\u2019s centrally managed cash reserves amounted to \u00a33.1 billion
\n
at 31 December 2022, all available within three months. This
\n
includes \u00a32.2 billion of cash managed by the Group for ViiV
\n
Healthcare, a 78.3% owned subsidiary. The Group has invested
\n
centrally managed liquid assets in bank deposits, Aaa/AAA rated
\n
US Treasury and Treasury repo only money market funds and
\n
Aaa/AAA rated liquidity funds.
\n
Wholesale and retail credit risk
\n
Outside the US, no customer accounts for more than 5% of the
\n
Group\u2019s trade receivables balance.
\n
In the US, in line with other pharmaceutical companies, the Group
\n
sells its products through a small number of wholesalers in
\n
addition to hospitals, pharmacies, physicians and other groups.
\n
Sales to the three largest wholesalers amounted to approximately
\n
79% (2021: 75%) of the sales of the US Commercial Operations
\n
business in 2022.
\n
At 31 December 2022, the Group had trade receivables due
\n
from these three wholesalers totalling \u00a33,001 million or 55% of
\n
total trade receivables (2021: \u00a32,430 million or 39%). The Group
\n
is exposed to a concentration of credit risk in respect of these
\n
wholesalers such that, if one or more of them encounters \ufb01nancial
\n
dif\ufb01culty, it could materially and adversely affect the Group\u2019s
\n
\ufb01nancial results.
\n
This concentration of trade receivables is re\ufb02ective of standard
\n
market practice in the US pharmaceuticals sector where a
\n
signi\ufb01cant portion of sales are made to these three wholesalers,
\n
as disclosed in Note 6. GSK\u2019s assessment is that there is limited
\n
credit risk associated with these customers.
\n
The Group\u2019s credit risk monitoring activities relating to these
\n
wholesalers include a review of their quarterly \ufb01nancial
\n
information and Standard & Poor\u2019s credit ratings, development of
\n
GSK internal risk ratings, and establishment and periodic review
\n
of credit limits.
\n
All new customers are subject to a credit vetting process and
\n
existing customers will be subject to a review at least annually.
\n
The vetting process and subsequent reviews involve obtaining
\n
information including the customer\u2019s status as a government or
\n
private sector entity, audited \ufb01nancial statements, credit bureau
\n
reports, debt rating agency (eg Moody\u2019s, Standard & Poor\u2019s)
\n
reports, payment performance history (from trade references,
\n
industry credit groups) and bank references.
\n
\n
\n\n
Trade receivables consist of amounts due from a large number
\n
of customers, spread across diverse industries and
\n
geographical areas. Ongoing credit evaluation is performed
\n
on the \ufb01nancial condition of accounts receivable and, where
\n
appropriate, credit insurance is purchased or factoring
\n
arrangements put in place.
\n
The amount of information obtained is proportional to the level
\n
of exposure being considered. The information is evaluated
\n
quantitatively (i.e. credit score) and qualitatively (i.e. judgement) in
\n
conjunction with the customer\u2019s credit requirements to determine
\n
a credit limit.
\n
Trade receivables are grouped into customer segments that have
\n
similar loss patterns to assess credit risk while other receivables
\n
and other \ufb01nancial assets are assessed individually. Historical and
\n
forward-looking information is considered to determine the
\n
appropriate expected credit loss allowance.
\n
The Group believes there is no further credit risk provision required
\n
in excess of the allowance for expected credit losses (see Note 26,
\n
\u2018Trade and other receivables\u2019).
\n
Credit enhancements
\n
The Group uses credit enhancements including factoring
\n
and credit insurance to minimise the credit risk of the trade
\n
receivables in the Group. At 31 December 2022, \u00a3332 million
\n
(2021: \u00a3315 million) of trade receivables were insured in order to
\n
protect the receivables from loss due to credit risks such as
\n
default, insolvency and bankruptcy.
\n
Each Group entity assesses the credit risk of its private
\n
customers to determine if credit insurance is required.
\n
Factoring arrangements are managed locally by entities and
\n
are used to mitigate risk arising from large credit risk
\nconcentrations. All factoring arrangements are non-recourse.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f34360": {
"value": "Fair value of \ufb01nancial assets and liabilities
excluding lease liabilities
\n
The table on page 249 presents the carrying amounts and the
\n
fair values of the Group\u2019s \ufb01nancial assets and liabilities
\n
excluding lease liabilities at 31 December 2022 and
\n
31 December 2021.
\n
The fair values of the \ufb01nancial assets and liabilities are
\n
included at the price that would be received to sell an asset or
\n
paid to transfer a liability in an orderly transaction between
\n
market participants at the measurement date.
\n
The following methods and assumptions are used to measure
\n
the fair values of signi\ufb01cant \ufb01nancial instruments carried at fair
\n
value on the balance sheet:
\n
\u2013
Other investments \u2013 equity investments traded in an active
\n
market determined by reference to the relevant stock
\n
exchange quoted bid price; other equity investments
\n
determined by reference to the current market value of
\n
similar instruments, recent \ufb01nancing rounds or the
\n
discounted cash \ufb02ows of the underlying net assets
\n
\u2013
Trade receivables carried at fair value \u2013 based on invoiced
\n
amount
\n
\u2013
Interest rate swaps, foreign exchange forward contracts,
\n
swaps and options \u2013 based on the present value of
\n
contractual cash \ufb02ows or option valuation models using
\n
market sourced data (exchange rates or interest rates) at the
\n
balance sheet date
\n
\u2013
Cash and cash equivalents carried at fair value \u2013 based on
\n
net asset value of the funds
\n
\u2013
Contingent consideration for business acquisitions and
\n
divestments \u2013 based on present values of expected future
\n
cash \ufb02ows.
\n
The following methods and assumptions are used to estimate
\n
the fair values of signi\ufb01cant \ufb01nancial instruments which are not
\n
measured at fair value on the balance sheet:
\n
\u2013
Receivables and payables, including put options, carried at
\n
amortised cost \u2013 approximates to the carrying amount
\n
\u2013
Liquid investments \u2013 approximates to the carrying amount
\n
\u2013
Cash and cash equivalents carried at amortised cost \u2013
\n
approximates to the carrying amount
\n
\u2013
Long-term loans \u2013 based on quoted market prices (a level 1
\n
fair value measurement) in the case of European and US
\n
Medium Term Notes; approximates to the carrying amount
\n
in the case of\u2008other \ufb01xed rate borrowings and \ufb02oating rate
\n
bank loans
\n
\u2013
Short-term loans, overdrafts and commercial paper \u2013
\n
approximates to the carrying amount because of the short
\n
maturity of these instruments.
\n
\n
\n
\n
\n\n
2022
2021
\n
Notes
\n
Carrying
\n
value
\n
\u00a3m
\n
Fair
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Fair
\n
value
\n
\u00a3m
\n
Financial assets measured at amortised cost:
\n
Other non-current assets
b
21
21
21
21
\n
Trade and other receivables
b
3,789
3,789
4,830
4,830
\n
Liquid investments
67
67
61
61
\n
Cash and cash equivalents
1,324
1,324
2,825
2,825
\n
Financial assets measured at fair value through other comprehensive
\n
income (FVTOCI):
\n
Other investments designated at FVTOCI
a
1,153
1,153
1,927
1,927
\n
Trade and other receivables
a,b
2,327
2,327
1,943
1,943
\n
Financial assets mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Current equity investments and Other investments
a
4,401
4,401
199
199
\n
Other non-current assets
a,b
13
13
23
23
\n
Trade and other receivables
a,b
50
50
59
59
\n
Held for trading derivatives that are not in a designated and
\n
effective hedging relationship
a,d,e
165
165
83
83
\n
Cash and cash equivalents
a
2,399
2,399
1,449
1,449
\n
Derivatives designated and effective as hedging instruments (fair value movements
\n
through Other comprehensive income)
a,d,e
25
25
123
123
\n
Total \ufb01nancial assets
15,734
15,734
13,543
13,543
\n
Financial liabilities measured at amortised cost:
\n
Borrowings excluding obligations under lease liabilities:
\n
\u2013
bonds in a designated hedging relationship
d
(6,322)
(6,035)
(4,982)
(5,311)
\n
\u2013
other bonds
(12,017)
(11,930)
(17,373)
(20,746)
\n
\u2013
bank loans and overdrafts
(447)
(447)
(550)
(550)
\n
\u2013
commercial paper in a designated hedging relationship
(443)
(443)
(252)
(252)
\n
\u2013
other commercial paper
(748)
(748)
\u2013
\u2013
\n
\u2013
other borrowings
(2)
(2)
(1)
(1)
\n
Total borrowings excluding lease liabilities
f
(19,979)
(19,605)
(23,158)
(26,860)
\n
Trade and other payables
c
(14,065)
(14,065)
(15,431)
(15,431)
\n
Other provisions
d
(63)
(63)
(113)
(113)
\n
Other non-current liabilities
c
(84)
(84)
(52)
(52)
\n
Financial liabilities mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Contingent consideration liabilities
a,c
(7,068)
(7,068)
(6,076)
(6,076)
\n
Held for trading derivatives that are not in a designated and
\n
effective hedging relationship
a,d,e
(77)
(77)
(171)
(171)
\n
Derivatives designated and effective as hedging instruments (fair value movements
\n
through Other comprehensive income)
a,d,e
(106)
(106)
(57)
(57)
\n
Total \ufb01nancial liabilities excluding lease liabilities
(41,442)
(41,068)
(45,058)
(48,760)
\n
Net \ufb01nancial assets and \ufb01nancial liabilities excluding lease liabilities
(25,708)
(25,334)
(31,515)
(35,217)
\n
The valuation methodology used to measure fair value in the above table is described and categorised on page 248.
\n
Trade and other receivables, Other non-current assets, Trade and other payables, Other provisions, Contingent consideration
\n
liabilities and Other non-current liabilities are reconciled to the relevant Notes on pages 251 to 252.
\n
\n
\n
\n\n
Fair value of investments in GSK shares
\n
At 31 December 2022, the Employee Share Ownership Plan (ESOP) Trusts held GSK shares with a carrying value of \u00a3354 million
\n
(2021: \u00a328 million) and a market value of \u00a3861 million (2021: \u00a3373 million) based on quoted market price. The shares are held by the
\n
ESOP Trusts to satisfy future exercises of options and awards under employee incentive schemes. In 2022, the carrying value,
\n
which is the lower of cost or expected proceeds, of these shares has been recognised as a deduction from other reserves.
\n
At 31 December 2022, GSK held Treasury shares at a cost of \u00a33,797 million (2021: \u00a34,969 million) which has been deducted from
\n
retained earnings.
\n
(a) Financial instruments held at fair value
\n
The following tables categorise the Group\u2019s \ufb01nancial assets and liabilities held at fair value by the valuation methodology applied
\n
in determining their fair value. Where possible, quoted prices in active markets are used (Level 1). Where such prices are not
\n
available, the asset or liability is classi\ufb01ed as Level 2, provided all signi\ufb01cant inputs to the valuation model used are based on
\n
observable market data. If one or more of the signi\ufb01cant inputs to the valuation model is not based on observable market data,
\n
the instrument is classi\ufb01ed as Level 3. Other investments classi\ufb01ed as Level 3 in the tables below comprise equity investments in
\n
unlisted entities with which the Group has entered into research collaborations and investments which provide access to
\n
biotechnology developments of potential interest.
\n
At 31 December 2022
\n
Level 1
\n
\u00a3m
\n
Level 2
\n
\u00a3m
\n
Level 3
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Financial assets at fair value
\n
Financial assets measured at fair value through other comprehensive income (FVTOCI):
\n
Other investments designated at FVTOCI
823
\u2013
330
1,153
\n
Trade and other receivables
\u2013
2,327
\u2013
2,327
\n
Financial assets mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Current equity investments and Other investments
4,087
\u2013
314
4,401
\n
Other non-current assets
\u2013
\u2013
13
13
\n
Trade and other receivables
\u2013
50
\u2013
50
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
165
\u2013
165
\n
Cash and cash equivalents
2,399
\u2013
\u2013
2,399
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
25
\u2013
25
\n
7,309
2,567
657
10,533
\n
Financial liabilities at fair value
\n
Financial liabilities mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Contingent consideration liabilities
\u2013
\u2013
(7,068)
(7,068)
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
(77)
\u2013
(77)
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
(106)
\u2013
(106)
\n
\u2013
(183)
(7,068)
(7,251)
\n
At 31 December 2021
\n
Level 1
\n
\u00a3m
\n
Level 2
\n
\u00a3m
\n
Level 3
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Financial assets at fair value
\n
Financial assets measured at fair value through other comprehensive income (FVTOCI):
\n
Other investments designated at FVTOCI
1,736
\u2013
191
1,927
\n
Trade and other receivables
\u2013
1,943
\u2013
1,943
\n
Financial assets mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Other investments
\u2013
\u2013
199
199
\n
Other non-current assets
\u2013
\u2013
23
23
\n
Trade and other receivables
\u2013
59
\u2013
59
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
77
6
83
\n
Cash and cash equivalents
1,449
\u2013
\u2013
1,449
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
123
\u2013
123
\n
3,185
2,202
419
5,806
\n
Financial liabilities at fair value
\n
Financial liabilities mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Contingent consideration liabilities
\u2013
\u2013
(6,076)
(6,076)
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
(171)
\u2013
(171)
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
(57)
\u2013
(57)
\n
\u2013
(228)
(6,076)
(6,304)
\n
\n
\n
\n
\n\n
Movements in the year for \ufb01nancial instruments measured using Level 3 valuation methods are presented below:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
At 1 January
(5,657)
(5,064)
\n
Exchange adjustments
46
4
\n
Net losses recognised in the income statement
(1,627)
(1,024)
\n
Net gains recognised in other comprehensive income
91
185
\n
Contingent consideration related to business acquisitions in the period
(482)
\u2013
\n
Settlement of contingent consideration liabilities
1,137
856
\n
Additions
97
99
\n
Disposals and settlements
(16)
(19)
\n
Transfers from Level 3
\u2013
(694)
\n
At 31 December
(6,411)
(5,657)
\n
Of the total net losses of \u00a31,627 million (2021: \u00a31,024 million) attributable to Level 3 \ufb01nancial instruments which were recognised in
\n
the income statement, \u00a31,623 million (2021: \u00a31,024 million) were in respect of \ufb01nancial instruments which were held at the end of
\n
the year and were reported in Other operating income/expense. Charges of \u00a31,431 million (2021: \u00a31,026 million) arose from
\n
remeasurement of the contingent consideration payable for the acquisition of the former Shionogi-ViiV Healthcare joint venture
\n
and \u00a3231 million (2021: \u00a332 million) arose from remeasurement of the contingent consideration payable for the acquisition of the
\n
Novartis Vaccines business. The acquisition of Af\ufb01nivax in 2022 resulted in the additon of \u00a3482 million of contingent consideration
\n
to Level 3 \ufb01nancial liabilities, with a further \u00a317 million remeasurement charge arising for the period between acquisition and 31
\n
December 2022. There were no transfers into or out of Level 3 \ufb01nancial instruments in the year (2021 \u2013 transfers related to equity
\n
instruments which transferred to a Level 1 valuation methodology as a result of listing on a recognised stock exchange during the
\n
year). Movements arising on the translation of overseas net assets for consolidation into the Group accounts are recorded as
\n
Exchange adjustments. Net gains and losses include the impact of other exchange movements.
\n
Financial liabilities measured using Level 3 valuation methods at 31 December included \u00a35,890 million (2021: \u00a35,559 million) in
\n
respect of contingent consideration payable for the acquisition in 2012 of the former Shionogi-ViiV Healthcare joint venture. This
\n
consideration is expected to be paid over a number of years and will vary in line with the future performance of speci\ufb01ed products
\n
and movements in certain foreign currencies. A further \u00a3673 million (2021: \u00a3479 million) is in respect of contingent consideration for
\n
the acquisition in 2015 of the Novartis Vaccines business. This consideration is expected to be paid over a number of years and will
\n
vary in line with the future performance of speci\ufb01ed products, the achievement of certain milestone targets and movements in
\n
certain foreign currencies. As a result of the Group\u2019s acquisition of Af\ufb01nivax in 2022, contingent consideration payable of \u00a3501
\n
million is recognised at 31 December 2022. This consideration is expected to be paid over a number of years and will vary in line
\n
with the achievement of certain development milestones and movements in the USD/GBP exchange rate. Sensitivity analysis on
\n
these balances is provided in Note 33, \u2018Contingent consideration liabilities\u2019.
\n
(b) Trade and other receivables and Other non-current assets in scope of IFRS 9
\n
The following table reconciles \ufb01nancial instruments within Trade and other receivables and Other non-current assets which fall
\n
within the scope of IFRS 9 to the relevant balance sheet amounts. The \ufb01nancial assets are predominantly non-interest earning.
\n
Non-\ufb01nancial instruments include tax receivables, pension surplus balances and prepayments, which are outside the scope of
\n
IFRS 9.
\n
2022
2021
\n
At
\n
FVTPL
\n
\u00a3m
\n
At
\n
FVTOCI
\n
\u00a3m
\n
Amortised
\n
cost
\n
\u00a3m
\n
Financial
\n
instruments
\n
\u00a3m
\n
Non-
\n
\ufb01nancial
\n
instruments
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At
\n
FVTPL
\n
\u00a3m
\n
At
\n
FVTOCI
\n
\u00a3m
\n
Amortised
\n
cost
\n
\u00a3m
\n
Financial
\n
instruments
\n
\u00a3m
\n
Non-
\n
\ufb01nancial
\n
instruments
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Trade and other receivables
\n
(Note 26)
50
2,327
3,789
6,166
887
7,053
59
1,943
4,830
6,832
1,028
7,860
\n
Other non-current assets
\n
(Note 24)
13
\u2013
21
34
1,160
1,194
23
\u2013
21
44
1,632
1,676
\n
63
2,327
3,810
6,200
2,047
8,247
82
1,943
4,851
6,876
2,660
9,536
\n
Trade and other receivables include trade receivables of \u00a35,452 million (2021: \u00a36,246 million). The Group has portfolios in each of the
\n
three business models under IFRS 9: \u00a350 million (2021: \u00a359 million), measured at FVTPL, is held to sell the contractual cash \ufb02ows as
\n
the receivables will be sold under a factoring arrangement, \u00a32,327 million (2021: \u00a31,943 million), measured at FVTOCI, is held to either
\n
collect or sell the contractual cash \ufb02ows as the receivables may be sold under a factoring agreement, and \u00a33,075 million (2021:
\n
\u00a34,244 million), measured at amortised cost, is held to collect the contractual cash \ufb02ows and there is no factoring agreement in
\n
place.
\n
\n
\n
\n\n
(c) Trade and other payables, Other provisions, Contingent consideration liabilities and Other non-
\n
current liabilities in scope of IFRS 9
\n
The following table reconciles \ufb01nancial instruments within Trade and other payables, Other provisions, Contingent consideration
\n
liabilities and Other non-current liabilities which fall within the scope of IFRS 9 to the relevant balance sheet amounts. The
\n
\ufb01nancial liabilities are predominantly non-interest bearing. Non-\ufb01nancial instruments include payments on account, tax and
\n
social security payables and provisions which do not arise from contractual obligations to deliver cash or another \ufb01nancial asset,
\n
which are outside the scope of IFRS 9.
\n
2022
2021
\n
At FVTPL
\n
\u00a3m
\n
Amortised
\n
cost
\n
\u00a3m
\n
Financial
\n
instruments
\n
\u00a3m
\n
Non-
\n
\ufb01nancial
\n
instruments
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At FVTPL
\n
\u00a3m
\n
Amortised
\n
cost
\n
\u00a3m
\n
Financial
\n
instruments
\n
\u00a3m
\n
Non-
\n
\ufb01nancial
\n
instruments
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Trade and other payables
\n
(Note 29)
\u2013
(14,065)
(14,065)
(2,198)
(16,263)
\u2013
(15,431)
(15,431)
(2,123)
(17,554)
\n
Other provisions
\n
(Note 32)
\u2013
(63)
(63)
(1,121)
(1,184)
\u2013
(113)
(113)
(1,358)
(1,471)
\n
Contingent consideration
\n
liabilities (Note 33)
(7,068)
\u2013
(7,068)
\u2013
(7,068)
(6,076)
\u2013
(6,076)
\u2013
(6,076)
\n
Other non-current
\n
liabilities
(Note 34)
\u2013
(84)
(84)
(815)
(899)
\u2013
(52)
(52)
(869)
(921)
\n
(7,068)
(14,212)
(21,280)
(4,134)
(25,414)
(6,076)
(15,596)
(21,672)
(4,350)
(26,022)
\n
(d) Derivative \ufb01nancial instruments and hedging programmes
\n
Derivatives are only used for economic hedging purposes and not as speculative investments and are classi\ufb01ed as \u2018held for
\n
trading\u2019, other than designated and effective hedging instruments, and are presented as current assets or liabilities if they are
\n
expected to be settled within 12 months after the end of the reporting period, otherwise they are classi\ufb01ed as non-current. The
\n
Group has the following derivative \ufb01nancial instruments:
\n
2022
\n
Fair value
\n
2021
\n
Fair value
\n
Assets
\n
\u00a3m
\n
Liabilities
\n
\u00a3m
\n
Assets
\n
\u00a3m
\n
Liabilities
\n
\u00a3m
\n
Non-current
\n
Cash \ufb02ow hedges \u2013 Interest rate swap contracts
\n
(principal amount \u2013 \u00a3nil (2021: \u00a31,996 million))
\u2013
\u2013
12
(1)
\n
Current
\n
Cash \ufb02ow hedges \u2013 Foreign exchange contracts
\n
(principal amount \u2013 \u00a3167 million (2021: \u00a3160 million))
5
\u2013
\u2013
(3)
\n
Net investment hedges \u2013 Foreign exchange contracts
\n
(principal amount \u2013 \u00a37,197 million (2021: \u00a35,469 million))
20
(106)
111
(53)
\n
Derivatives designated and effective as hedging instruments
25
(106)
123
(57)
\n
Non-current
\n
Embedded and other derivatives
\u2013
\u2013
6
\u2013
\n
Current
\n
Foreign exchange contracts
\n
(principal amount \u2013 \u00a35,908 million (2021: \u00a39,728 million))
163
(76)
77
(169)
\n
Embedded and other derivatives
2
(1)
\u2013
(2)
\n
Derivatives classi\ufb01ed as held for trading
165
(77)
83
(171)
\n
Total derivative instruments
190
(183)
206
(228)
\n
\n
\n
\n
\n\n
Fair value hedges
\nAt 31 December 2022 and 31 December 2021, the Group had no designated fair value hedges.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f34361": {
"value": "Fair value of \ufb01nancial assets and liabilities
excluding lease liabilities
\n
The table on page 249 presents the carrying amounts and the
\n
fair values of the Group\u2019s \ufb01nancial assets and liabilities
\n
excluding lease liabilities at 31 December 2022 and
\n
31 December 2021.
\n
The fair values of the \ufb01nancial assets and liabilities are
\n
included at the price that would be received to sell an asset or
\n
paid to transfer a liability in an orderly transaction between
\n
market participants at the measurement date.
\n
The following methods and assumptions are used to measure
\n
the fair values of signi\ufb01cant \ufb01nancial instruments carried at fair
\n
value on the balance sheet:
\n
\u2013
Other investments \u2013 equity investments traded in an active
\n
market determined by reference to the relevant stock
\n
exchange quoted bid price; other equity investments
\n
determined by reference to the current market value of
\n
similar instruments, recent \ufb01nancing rounds or the
\n
discounted cash \ufb02ows of the underlying net assets
\n
\u2013
Trade receivables carried at fair value \u2013 based on invoiced
\n
amount
\n
\u2013
Interest rate swaps, foreign exchange forward contracts,
\n
swaps and options \u2013 based on the present value of
\n
contractual cash \ufb02ows or option valuation models using
\n
market sourced data (exchange rates or interest rates) at the
\n
balance sheet date
\n
\u2013
Cash and cash equivalents carried at fair value \u2013 based on
\n
net asset value of the funds
\n
\u2013
Contingent consideration for business acquisitions and
\n
divestments \u2013 based on present values of expected future
\n
cash \ufb02ows.
\n
The following methods and assumptions are used to estimate
\n
the fair values of signi\ufb01cant \ufb01nancial instruments which are not
\n
measured at fair value on the balance sheet:
\n
\u2013
Receivables and payables, including put options, carried at
\n
amortised cost \u2013 approximates to the carrying amount
\n
\u2013
Liquid investments \u2013 approximates to the carrying amount
\n
\u2013
Cash and cash equivalents carried at amortised cost \u2013
\n
approximates to the carrying amount
\n
\u2013
Long-term loans \u2013 based on quoted market prices (a level 1
\n
fair value measurement) in the case of European and US
\n
Medium Term Notes; approximates to the carrying amount
\n
in the case of\u2008other \ufb01xed rate borrowings and \ufb02oating rate
\n
bank loans
\n
\u2013
Short-term loans, overdrafts and commercial paper \u2013
\n
approximates to the carrying amount because of the short
\n
maturity of these instruments.
\n
\n
\n
\n
\n\n
2022
2021
\n
Notes
\n
Carrying
\n
value
\n
\u00a3m
\n
Fair
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Fair
\n
value
\n
\u00a3m
\n
Financial assets measured at amortised cost:
\n
Other non-current assets
b
21
21
21
21
\n
Trade and other receivables
b
3,789
3,789
4,830
4,830
\n
Liquid investments
67
67
61
61
\n
Cash and cash equivalents
1,324
1,324
2,825
2,825
\n
Financial assets measured at fair value through other comprehensive
\n
income (FVTOCI):
\n
Other investments designated at FVTOCI
a
1,153
1,153
1,927
1,927
\n
Trade and other receivables
a,b
2,327
2,327
1,943
1,943
\n
Financial assets mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Current equity investments and Other investments
a
4,401
4,401
199
199
\n
Other non-current assets
a,b
13
13
23
23
\n
Trade and other receivables
a,b
50
50
59
59
\n
Held for trading derivatives that are not in a designated and
\n
effective hedging relationship
a,d,e
165
165
83
83
\n
Cash and cash equivalents
a
2,399
2,399
1,449
1,449
\n
Derivatives designated and effective as hedging instruments (fair value movements
\n
through Other comprehensive income)
a,d,e
25
25
123
123
\n
Total \ufb01nancial assets
15,734
15,734
13,543
13,543
\n
Financial liabilities measured at amortised cost:
\n
Borrowings excluding obligations under lease liabilities:
\n
\u2013
bonds in a designated hedging relationship
d
(6,322)
(6,035)
(4,982)
(5,311)
\n
\u2013
other bonds
(12,017)
(11,930)
(17,373)
(20,746)
\n
\u2013
bank loans and overdrafts
(447)
(447)
(550)
(550)
\n
\u2013
commercial paper in a designated hedging relationship
(443)
(443)
(252)
(252)
\n
\u2013
other commercial paper
(748)
(748)
\u2013
\u2013
\n
\u2013
other borrowings
(2)
(2)
(1)
(1)
\n
Total borrowings excluding lease liabilities
f
(19,979)
(19,605)
(23,158)
(26,860)
\n
Trade and other payables
c
(14,065)
(14,065)
(15,431)
(15,431)
\n
Other provisions
d
(63)
(63)
(113)
(113)
\n
Other non-current liabilities
c
(84)
(84)
(52)
(52)
\n
Financial liabilities mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Contingent consideration liabilities
a,c
(7,068)
(7,068)
(6,076)
(6,076)
\n
Held for trading derivatives that are not in a designated and
\n
effective hedging relationship
a,d,e
(77)
(77)
(171)
(171)
\n
Derivatives designated and effective as hedging instruments (fair value movements
\n
through Other comprehensive income)
a,d,e
(106)
(106)
(57)
(57)
\n
Total \ufb01nancial liabilities excluding lease liabilities
(41,442)
(41,068)
(45,058)
(48,760)
\n
Net \ufb01nancial assets and \ufb01nancial liabilities excluding lease liabilities
(25,708)
(25,334)
(31,515)
(35,217)
\n
The valuation methodology used to measure fair value in the above table is described and categorised on page 248.
\n
Trade and other receivables, Other non-current assets, Trade and other payables, Other provisions, Contingent consideration
\n
liabilities and Other non-current liabilities are reconciled to the relevant Notes on pages 251 to 252.
\n
\n
\n
\n\n
Fair value of investments in GSK shares
\n
At 31 December 2022, the Employee Share Ownership Plan (ESOP) Trusts held GSK shares with a carrying value of \u00a3354 million
\n
(2021: \u00a328 million) and a market value of \u00a3861 million (2021: \u00a3373 million) based on quoted market price. The shares are held by the
\n
ESOP Trusts to satisfy future exercises of options and awards under employee incentive schemes. In 2022, the carrying value,
\n
which is the lower of cost or expected proceeds, of these shares has been recognised as a deduction from other reserves.
\n
At 31 December 2022, GSK held Treasury shares at a cost of \u00a33,797 million (2021: \u00a34,969 million) which has been deducted from
\n
retained earnings.
\n
(a) Financial instruments held at fair value
\n
The following tables categorise the Group\u2019s \ufb01nancial assets and liabilities held at fair value by the valuation methodology applied
\n
in determining their fair value. Where possible, quoted prices in active markets are used (Level 1). Where such prices are not
\n
available, the asset or liability is classi\ufb01ed as Level 2, provided all signi\ufb01cant inputs to the valuation model used are based on
\n
observable market data. If one or more of the signi\ufb01cant inputs to the valuation model is not based on observable market data,
\n
the instrument is classi\ufb01ed as Level 3. Other investments classi\ufb01ed as Level 3 in the tables below comprise equity investments in
\n
unlisted entities with which the Group has entered into research collaborations and investments which provide access to
\n
biotechnology developments of potential interest.
\n
At 31 December 2022
\n
Level 1
\n
\u00a3m
\n
Level 2
\n
\u00a3m
\n
Level 3
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Financial assets at fair value
\n
Financial assets measured at fair value through other comprehensive income (FVTOCI):
\n
Other investments designated at FVTOCI
823
\u2013
330
1,153
\n
Trade and other receivables
\u2013
2,327
\u2013
2,327
\n
Financial assets mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Current equity investments and Other investments
4,087
\u2013
314
4,401
\n
Other non-current assets
\u2013
\u2013
13
13
\n
Trade and other receivables
\u2013
50
\u2013
50
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
165
\u2013
165
\n
Cash and cash equivalents
2,399
\u2013
\u2013
2,399
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
25
\u2013
25
\n
7,309
2,567
657
10,533
\n
Financial liabilities at fair value
\n
Financial liabilities mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Contingent consideration liabilities
\u2013
\u2013
(7,068)
(7,068)
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
(77)
\u2013
(77)
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
(106)
\u2013
(106)
\n
\u2013
(183)
(7,068)
(7,251)
\n
At 31 December 2021
\n
Level 1
\n
\u00a3m
\n
Level 2
\n
\u00a3m
\n
Level 3
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Financial assets at fair value
\n
Financial assets measured at fair value through other comprehensive income (FVTOCI):
\n
Other investments designated at FVTOCI
1,736
\u2013
191
1,927
\n
Trade and other receivables
\u2013
1,943
\u2013
1,943
\n
Financial assets mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Other investments
\u2013
\u2013
199
199
\n
Other non-current assets
\u2013
\u2013
23
23
\n
Trade and other receivables
\u2013
59
\u2013
59
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
77
6
83
\n
Cash and cash equivalents
1,449
\u2013
\u2013
1,449
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
123
\u2013
123
\n
3,185
2,202
419
5,806
\n
Financial liabilities at fair value
\n
Financial liabilities mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Contingent consideration liabilities
\u2013
\u2013
(6,076)
(6,076)
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
(171)
\u2013
(171)
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
(57)
\u2013
(57)
\n
\u2013
(228)
(6,076)
(6,304)
\n
\n
\n
\n
\n\n
Movements in the year for \ufb01nancial instruments measured using Level 3 valuation methods are presented below:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
At 1 January
(5,657)
(5,064)
\n
Exchange adjustments
46
4
\n
Net losses recognised in the income statement
(1,627)
(1,024)
\n
Net gains recognised in other comprehensive income
91
185
\n
Contingent consideration related to business acquisitions in the period
(482)
\u2013
\n
Settlement of contingent consideration liabilities
1,137
856
\n
Additions
97
99
\n
Disposals and settlements
(16)
(19)
\n
Transfers from Level 3
\u2013
(694)
\n
At 31 December
(6,411)
(5,657)
\n
Of the total net losses of \u00a31,627 million (2021: \u00a31,024 million) attributable to Level 3 \ufb01nancial instruments which were recognised in
\n
the income statement, \u00a31,623 million (2021: \u00a31,024 million) were in respect of \ufb01nancial instruments which were held at the end of
\n
the year and were reported in Other operating income/expense. Charges of \u00a31,431 million (2021: \u00a31,026 million) arose from
\n
remeasurement of the contingent consideration payable for the acquisition of the former Shionogi-ViiV Healthcare joint venture
\n
and \u00a3231 million (2021: \u00a332 million) arose from remeasurement of the contingent consideration payable for the acquisition of the
\n
Novartis Vaccines business. The acquisition of Af\ufb01nivax in 2022 resulted in the additon of \u00a3482 million of contingent consideration
\n
to Level 3 \ufb01nancial liabilities, with a further \u00a317 million remeasurement charge arising for the period between acquisition and 31
\n
December 2022. There were no transfers into or out of Level 3 \ufb01nancial instruments in the year (2021 \u2013 transfers related to equity
\n
instruments which transferred to a Level 1 valuation methodology as a result of listing on a recognised stock exchange during the
\n
year). Movements arising on the translation of overseas net assets for consolidation into the Group accounts are recorded as
\n
Exchange adjustments. Net gains and losses include the impact of other exchange movements.
\n
Financial liabilities measured using Level 3 valuation methods at 31 December included \u00a35,890 million (2021: \u00a35,559 million) in
\n
respect of contingent consideration payable for the acquisition in 2012 of the former Shionogi-ViiV Healthcare joint venture. This
\n
consideration is expected to be paid over a number of years and will vary in line with the future performance of speci\ufb01ed products
\n
and movements in certain foreign currencies. A further \u00a3673 million (2021: \u00a3479 million) is in respect of contingent consideration for
\n
the acquisition in 2015 of the Novartis Vaccines business. This consideration is expected to be paid over a number of years and will
\n
vary in line with the future performance of speci\ufb01ed products, the achievement of certain milestone targets and movements in
\n
certain foreign currencies. As a result of the Group\u2019s acquisition of Af\ufb01nivax in 2022, contingent consideration payable of \u00a3501
\n
million is recognised at 31 December 2022. This consideration is expected to be paid over a number of years and will vary in line
\n
with the achievement of certain development milestones and movements in the USD/GBP exchange rate. Sensitivity analysis on
\nthese balances is provided in Note 33, \u2018Contingent consideration liabilities\u2019.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f34362": {
"value": "Fair value of \ufb01nancial assets and liabilities
excluding lease liabilities
\n
The table on page 249 presents the carrying amounts and the
\n
fair values of the Group\u2019s \ufb01nancial assets and liabilities
\n
excluding lease liabilities at 31 December 2022 and
\n
31 December 2021.
\n
The fair values of the \ufb01nancial assets and liabilities are
\n
included at the price that would be received to sell an asset or
\n
paid to transfer a liability in an orderly transaction between
\n
market participants at the measurement date.
\n
The following methods and assumptions are used to measure
\n
the fair values of signi\ufb01cant \ufb01nancial instruments carried at fair
\n
value on the balance sheet:
\n
\u2013
Other investments \u2013 equity investments traded in an active
\n
market determined by reference to the relevant stock
\n
exchange quoted bid price; other equity investments
\n
determined by reference to the current market value of
\n
similar instruments, recent \ufb01nancing rounds or the
\n
discounted cash \ufb02ows of the underlying net assets
\n
\u2013
Trade receivables carried at fair value \u2013 based on invoiced
\n
amount
\n
\u2013
Interest rate swaps, foreign exchange forward contracts,
\n
swaps and options \u2013 based on the present value of
\n
contractual cash \ufb02ows or option valuation models using
\n
market sourced data (exchange rates or interest rates) at the
\n
balance sheet date
\n
\u2013
Cash and cash equivalents carried at fair value \u2013 based on
\n
net asset value of the funds
\n
\u2013
Contingent consideration for business acquisitions and
\n
divestments \u2013 based on present values of expected future
\n
cash \ufb02ows.
\n
The following methods and assumptions are used to estimate
\n
the fair values of signi\ufb01cant \ufb01nancial instruments which are not
\n
measured at fair value on the balance sheet:
\n
\u2013
Receivables and payables, including put options, carried at
\n
amortised cost \u2013 approximates to the carrying amount
\n
\u2013
Liquid investments \u2013 approximates to the carrying amount
\n
\u2013
Cash and cash equivalents carried at amortised cost \u2013
\n
approximates to the carrying amount
\n
\u2013
Long-term loans \u2013 based on quoted market prices (a level 1
\n
fair value measurement) in the case of European and US
\n
Medium Term Notes; approximates to the carrying amount
\n
in the case of\u2008other \ufb01xed rate borrowings and \ufb02oating rate
\n
bank loans
\n
\u2013
Short-term loans, overdrafts and commercial paper \u2013
\n
approximates to the carrying amount because of the short
\n
maturity of these instruments.
\n
\n
\n
\n
\n\n
2022
2021
\n
Notes
\n
Carrying
\n
value
\n
\u00a3m
\n
Fair
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Fair
\n
value
\n
\u00a3m
\n
Financial assets measured at amortised cost:
\n
Other non-current assets
b
21
21
21
21
\n
Trade and other receivables
b
3,789
3,789
4,830
4,830
\n
Liquid investments
67
67
61
61
\n
Cash and cash equivalents
1,324
1,324
2,825
2,825
\n
Financial assets measured at fair value through other comprehensive
\n
income (FVTOCI):
\n
Other investments designated at FVTOCI
a
1,153
1,153
1,927
1,927
\n
Trade and other receivables
a,b
2,327
2,327
1,943
1,943
\n
Financial assets mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Current equity investments and Other investments
a
4,401
4,401
199
199
\n
Other non-current assets
a,b
13
13
23
23
\n
Trade and other receivables
a,b
50
50
59
59
\n
Held for trading derivatives that are not in a designated and
\n
effective hedging relationship
a,d,e
165
165
83
83
\n
Cash and cash equivalents
a
2,399
2,399
1,449
1,449
\n
Derivatives designated and effective as hedging instruments (fair value movements
\n
through Other comprehensive income)
a,d,e
25
25
123
123
\n
Total \ufb01nancial assets
15,734
15,734
13,543
13,543
\n
Financial liabilities measured at amortised cost:
\n
Borrowings excluding obligations under lease liabilities:
\n
\u2013
bonds in a designated hedging relationship
d
(6,322)
(6,035)
(4,982)
(5,311)
\n
\u2013
other bonds
(12,017)
(11,930)
(17,373)
(20,746)
\n
\u2013
bank loans and overdrafts
(447)
(447)
(550)
(550)
\n
\u2013
commercial paper in a designated hedging relationship
(443)
(443)
(252)
(252)
\n
\u2013
other commercial paper
(748)
(748)
\u2013
\u2013
\n
\u2013
other borrowings
(2)
(2)
(1)
(1)
\n
Total borrowings excluding lease liabilities
f
(19,979)
(19,605)
(23,158)
(26,860)
\n
Trade and other payables
c
(14,065)
(14,065)
(15,431)
(15,431)
\n
Other provisions
d
(63)
(63)
(113)
(113)
\n
Other non-current liabilities
c
(84)
(84)
(52)
(52)
\n
Financial liabilities mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Contingent consideration liabilities
a,c
(7,068)
(7,068)
(6,076)
(6,076)
\n
Held for trading derivatives that are not in a designated and
\n
effective hedging relationship
a,d,e
(77)
(77)
(171)
(171)
\n
Derivatives designated and effective as hedging instruments (fair value movements
\n
through Other comprehensive income)
a,d,e
(106)
(106)
(57)
(57)
\n
Total \ufb01nancial liabilities excluding lease liabilities
(41,442)
(41,068)
(45,058)
(48,760)
\n
Net \ufb01nancial assets and \ufb01nancial liabilities excluding lease liabilities
(25,708)
(25,334)
(31,515)
(35,217)
\n
The valuation methodology used to measure fair value in the above table is described and categorised on page 248.
\n
Trade and other receivables, Other non-current assets, Trade and other payables, Other provisions, Contingent consideration
\n
liabilities and Other non-current liabilities are reconciled to the relevant Notes on pages 251 to 252.
\n
\n
\n
\n\n
Fair value of investments in GSK shares
\n
At 31 December 2022, the Employee Share Ownership Plan (ESOP) Trusts held GSK shares with a carrying value of \u00a3354 million
\n
(2021: \u00a328 million) and a market value of \u00a3861 million (2021: \u00a3373 million) based on quoted market price. The shares are held by the
\n
ESOP Trusts to satisfy future exercises of options and awards under employee incentive schemes. In 2022, the carrying value,
\n
which is the lower of cost or expected proceeds, of these shares has been recognised as a deduction from other reserves.
\n
At 31 December 2022, GSK held Treasury shares at a cost of \u00a33,797 million (2021: \u00a34,969 million) which has been deducted from
\n
retained earnings.
\n
(a) Financial instruments held at fair value
\n
The following tables categorise the Group\u2019s \ufb01nancial assets and liabilities held at fair value by the valuation methodology applied
\n
in determining their fair value. Where possible, quoted prices in active markets are used (Level 1). Where such prices are not
\n
available, the asset or liability is classi\ufb01ed as Level 2, provided all signi\ufb01cant inputs to the valuation model used are based on
\n
observable market data. If one or more of the signi\ufb01cant inputs to the valuation model is not based on observable market data,
\n
the instrument is classi\ufb01ed as Level 3. Other investments classi\ufb01ed as Level 3 in the tables below comprise equity investments in
\n
unlisted entities with which the Group has entered into research collaborations and investments which provide access to
\n
biotechnology developments of potential interest.
\n
At 31 December 2022
\n
Level 1
\n
\u00a3m
\n
Level 2
\n
\u00a3m
\n
Level 3
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Financial assets at fair value
\n
Financial assets measured at fair value through other comprehensive income (FVTOCI):
\n
Other investments designated at FVTOCI
823
\u2013
330
1,153
\n
Trade and other receivables
\u2013
2,327
\u2013
2,327
\n
Financial assets mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Current equity investments and Other investments
4,087
\u2013
314
4,401
\n
Other non-current assets
\u2013
\u2013
13
13
\n
Trade and other receivables
\u2013
50
\u2013
50
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
165
\u2013
165
\n
Cash and cash equivalents
2,399
\u2013
\u2013
2,399
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
25
\u2013
25
\n
7,309
2,567
657
10,533
\n
Financial liabilities at fair value
\n
Financial liabilities mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Contingent consideration liabilities
\u2013
\u2013
(7,068)
(7,068)
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
(77)
\u2013
(77)
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
(106)
\u2013
(106)
\n
\u2013
(183)
(7,068)
(7,251)
\n
At 31 December 2021
\n
Level 1
\n
\u00a3m
\n
Level 2
\n
\u00a3m
\n
Level 3
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Financial assets at fair value
\n
Financial assets measured at fair value through other comprehensive income (FVTOCI):
\n
Other investments designated at FVTOCI
1,736
\u2013
191
1,927
\n
Trade and other receivables
\u2013
1,943
\u2013
1,943
\n
Financial assets mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Other investments
\u2013
\u2013
199
199
\n
Other non-current assets
\u2013
\u2013
23
23
\n
Trade and other receivables
\u2013
59
\u2013
59
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
77
6
83
\n
Cash and cash equivalents
1,449
\u2013
\u2013
1,449
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
123
\u2013
123
\n
3,185
2,202
419
5,806
\n
Financial liabilities at fair value
\n
Financial liabilities mandatorily measured at fair value through pro\ufb01t or loss (FVTPL):
\n
Contingent consideration liabilities
\u2013
\u2013
(6,076)
(6,076)
\n
Held for trading derivatives that are not in a designated and effective hedging relationship
\u2013
(171)
\u2013
(171)
\n
Derivatives designated and effective as hedging instruments (fair value movements through OCI)
\u2013
(57)
\u2013
(57)
\n
\u2013
(228)
(6,076)
(6,304)
\n
\n
\n
\n
\n\n
Movements in the year for \ufb01nancial instruments measured using Level 3 valuation methods are presented below:
\n
2022
\n
\u00a3m
\n
2021
\n
\u00a3m
\n
At 1 January
(5,657)
(5,064)
\n
Exchange adjustments
46
4
\n
Net losses recognised in the income statement
(1,627)
(1,024)
\n
Net gains recognised in other comprehensive income
91
185
\n
Contingent consideration related to business acquisitions in the period
(482)
\u2013
\n
Settlement of contingent consideration liabilities
1,137
856
\n
Additions
97
99
\n
Disposals and settlements
(16)
(19)
\n
Transfers from Level 3
\u2013
(694)
\n
At 31 December
(6,411)
(5,657)
\n
Of the total net losses of \u00a31,627 million (2021: \u00a31,024 million) attributable to Level 3 \ufb01nancial instruments which were recognised in
\n
the income statement, \u00a31,623 million (2021: \u00a31,024 million) were in respect of \ufb01nancial instruments which were held at the end of
\n
the year and were reported in Other operating income/expense. Charges of \u00a31,431 million (2021: \u00a31,026 million) arose from
\n
remeasurement of the contingent consideration payable for the acquisition of the former Shionogi-ViiV Healthcare joint venture
\n
and \u00a3231 million (2021: \u00a332 million) arose from remeasurement of the contingent consideration payable for the acquisition of the
\n
Novartis Vaccines business. The acquisition of Af\ufb01nivax in 2022 resulted in the additon of \u00a3482 million of contingent consideration
\n
to Level 3 \ufb01nancial liabilities, with a further \u00a317 million remeasurement charge arising for the period between acquisition and 31
\n
December 2022. There were no transfers into or out of Level 3 \ufb01nancial instruments in the year (2021 \u2013 transfers related to equity
\n
instruments which transferred to a Level 1 valuation methodology as a result of listing on a recognised stock exchange during the
\n
year). Movements arising on the translation of overseas net assets for consolidation into the Group accounts are recorded as
\n
Exchange adjustments. Net gains and losses include the impact of other exchange movements.
\n
Financial liabilities measured using Level 3 valuation methods at 31 December included \u00a35,890 million (2021: \u00a35,559 million) in
\n
respect of contingent consideration payable for the acquisition in 2012 of the former Shionogi-ViiV Healthcare joint venture. This
\n
consideration is expected to be paid over a number of years and will vary in line with the future performance of speci\ufb01ed products
\n
and movements in certain foreign currencies. A further \u00a3673 million (2021: \u00a3479 million) is in respect of contingent consideration for
\n
the acquisition in 2015 of the Novartis Vaccines business. This consideration is expected to be paid over a number of years and will
\n
vary in line with the future performance of speci\ufb01ed products, the achievement of certain milestone targets and movements in
\n
certain foreign currencies. As a result of the Group\u2019s acquisition of Af\ufb01nivax in 2022, contingent consideration payable of \u00a3501
\n
million is recognised at 31 December 2022. This consideration is expected to be paid over a number of years and will vary in line
\n
with the achievement of certain development milestones and movements in the USD/GBP exchange rate. Sensitivity analysis on
\n
these balances is provided in Note 33, \u2018Contingent consideration liabilities\u2019.
\n
(b) Trade and other receivables and Other non-current assets in scope of IFRS 9
\n
The following table reconciles \ufb01nancial instruments within Trade and other receivables and Other non-current assets which fall
\n
within the scope of IFRS 9 to the relevant balance sheet amounts. The \ufb01nancial assets are predominantly non-interest earning.
\n
Non-\ufb01nancial instruments include tax receivables, pension surplus balances and prepayments, which are outside the scope of
\n
IFRS 9.
\n
2022
2021
\n
At
\n
FVTPL
\n
\u00a3m
\n
At
\n
FVTOCI
\n
\u00a3m
\n
Amortised
\n
cost
\n
\u00a3m
\n
Financial
\n
instruments
\n
\u00a3m
\n
Non-
\n
\ufb01nancial
\n
instruments
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At
\n
FVTPL
\n
\u00a3m
\n
At
\n
FVTOCI
\n
\u00a3m
\n
Amortised
\n
cost
\n
\u00a3m
\n
Financial
\n
instruments
\n
\u00a3m
\n
Non-
\n
\ufb01nancial
\n
instruments
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Trade and other receivables
\n
(Note 26)
50
2,327
3,789
6,166
887
7,053
59
1,943
4,830
6,832
1,028
7,860
\n
Other non-current assets
\n
(Note 24)
13
\u2013
21
34
1,160
1,194
23
\u2013
21
44
1,632
1,676
\n
63
2,327
3,810
6,200
2,047
8,247
82
1,943
4,851
6,876
2,660
9,536
\n
Trade and other receivables include trade receivables of \u00a35,452 million (2021: \u00a36,246 million). The Group has portfolios in each of the
\n
three business models under IFRS 9: \u00a350 million (2021: \u00a359 million), measured at FVTPL, is held to sell the contractual cash \ufb02ows as
\n
the receivables will be sold under a factoring arrangement, \u00a32,327 million (2021: \u00a31,943 million), measured at FVTOCI, is held to either
\n
collect or sell the contractual cash \ufb02ows as the receivables may be sold under a factoring agreement, and \u00a33,075 million (2021:
\n
\u00a34,244 million), measured at amortised cost, is held to collect the contractual cash \ufb02ows and there is no factoring agreement in
\n
place.
\n
\n
\n
\n\n
(c) Trade and other payables, Other provisions, Contingent consideration liabilities and Other non-
\n
current liabilities in scope of IFRS 9
\n
The following table reconciles \ufb01nancial instruments within Trade and other payables, Other provisions, Contingent consideration
\n
liabilities and Other non-current liabilities which fall within the scope of IFRS 9 to the relevant balance sheet amounts. The
\n
\ufb01nancial liabilities are predominantly non-interest bearing. Non-\ufb01nancial instruments include payments on account, tax and
\n
social security payables and provisions which do not arise from contractual obligations to deliver cash or another \ufb01nancial asset,
\n
which are outside the scope of IFRS 9.
\n
2022
2021
\n
At FVTPL
\n
\u00a3m
\n
Amortised
\n
cost
\n
\u00a3m
\n
Financial
\n
instruments
\n
\u00a3m
\n
Non-
\n
\ufb01nancial
\n
instruments
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
At FVTPL
\n
\u00a3m
\n
Amortised
\n
cost
\n
\u00a3m
\n
Financial
\n
instruments
\n
\u00a3m
\n
Non-
\n
\ufb01nancial
\n
instruments
\n
\u00a3m
\n
Total
\n
\u00a3m
\n
Trade and other payables
\n
(Note 29)
\u2013
(14,065)
(14,065)
(2,198)
(16,263)
\u2013
(15,431)
(15,431)
(2,123)
(17,554)
\n
Other provisions
\n
(Note 32)
\u2013
(63)
(63)
(1,121)
(1,184)
\u2013
(113)
(113)
(1,358)
(1,471)
\n
Contingent consideration
\n
liabilities (Note 33)
(7,068)
\u2013
(7,068)
\u2013
(7,068)
(6,076)
\u2013
(6,076)
\u2013
(6,076)
\n
Other non-current
\n
liabilities
(Note 34)
\u2013
(84)
(84)
(815)
(899)
\u2013
(52)
(52)
(869)
(921)
\n
(7,068)
(14,212)
(21,280)
(4,134)
(25,414)
(6,076)
(15,596)
(21,672)
(4,350)
(26,022)
\n
(d) Derivative \ufb01nancial instruments and hedging programmes
\n
Derivatives are only used for economic hedging purposes and not as speculative investments and are classi\ufb01ed as \u2018held for
\n
trading\u2019, other than designated and effective hedging instruments, and are presented as current assets or liabilities if they are
\n
expected to be settled within 12 months after the end of the reporting period, otherwise they are classi\ufb01ed as non-current. The
\n
Group has the following derivative \ufb01nancial instruments:
\n
2022
\n
Fair value
\n
2021
\n
Fair value
\n
Assets
\n
\u00a3m
\n
Liabilities
\n
\u00a3m
\n
Assets
\n
\u00a3m
\n
Liabilities
\n
\u00a3m
\n
Non-current
\n
Cash \ufb02ow hedges \u2013 Interest rate swap contracts
\n
(principal amount \u2013 \u00a3nil (2021: \u00a31,996 million))
\u2013
\u2013
12
(1)
\n
Current
\n
Cash \ufb02ow hedges \u2013 Foreign exchange contracts
\n
(principal amount \u2013 \u00a3167 million (2021: \u00a3160 million))
5
\u2013
\u2013
(3)
\n
Net investment hedges \u2013 Foreign exchange contracts
\n
(principal amount \u2013 \u00a37,197 million (2021: \u00a35,469 million))
20
(106)
111
(53)
\n
Derivatives designated and effective as hedging instruments
25
(106)
123
(57)
\n
Non-current
\n
Embedded and other derivatives
\u2013
\u2013
6
\u2013
\n
Current
\n
Foreign exchange contracts
\n
(principal amount \u2013 \u00a35,908 million (2021: \u00a39,728 million))
163
(76)
77
(169)
\n
Embedded and other derivatives
2
(1)
\u2013
(2)
\n
Derivatives classi\ufb01ed as held for trading
165
(77)
83
(171)
\n
Total derivative instruments
190
(183)
206
(228)
\n
\n
\n
\n
\n\n
Fair value hedges
\n
At 31 December 2022 and 31 December 2021, the Group had no designated fair value hedges.
\n
Net investment hedges
\n
At 31 December 2022, certain foreign exchange contracts were designated as net investment hedges in respect of the foreign
\n
currency translation risk arising on consolidation of the Group\u2019s net investment in its European (Euro), Singaporean (SGD),
\n
Canadian (CAD) and Japanese (JPY) foreign operations as shown in the table above.
\n
The carrying value of bonds on page 249 included \u00a36,322 million (2021: \u00a34,982 million) that were designated as hedging
\n
instruments in net investment hedges.
\n
Cash \ufb02ow hedges
\n
During 2021 and 2022, the Group entered into forward foreign exchange contracts which have been designated as cash \ufb02ow
\n
hedges. These were entered into to hedge the foreign exchange exposure arising on cash \ufb02ows from Euro denominated coupon
\n
payments relating to notes issued under the Group\u2019s European Medium Term Note programme, and to hedge foreign currency
\n
payments due on collaboration or licensing arrangements.
\n
The Group manages its cash \ufb02ow interest rate risk by using \ufb02oating-to-\ufb01xed interest rate swaps. In addition, the Group carries a
\n
balance in reserves that arose from pre-hedging \ufb02uctuations in long-term interest rates when pricing bonds issued in prior years
\n
and in the current year. The balance is reclassi\ufb01ed to \ufb01nance costs over the life of these bonds.
\n
Foreign exchange risk
\n
In the current year, the Group has designated certain foreign exchange forward contracts and swaps as cash \ufb02ow and net
\n
investment hedges. Foreign exchange derivative \ufb01nancial assets and liabilities are presented in the line \u2018Derivative \ufb01nancial
\n
instruments\u2019 (either as assets or liabilities) on the Consolidated balance sheet. The following tables detail the foreign exchange
\n
forward contracts and swaps outstanding at the end of the reporting period, as well as information on the related hedged items.
\n
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness
\n
assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Group enters
\n
into hedge relationships where the critical terms of the hedging instrument match exactly with the terms of the hedged item, and
\n
so a qualitative assessment of effectiveness is performed. If changes in circumstances affect the terms of the hedged item such
\n
that the critical terms no longer match exactly with the critical terms of the hedging instrument, the Group uses the hypothetical
\n
derivative method to assess effectiveness.
\n
The main source of hedge ineffectiveness in these hedging relationships is the effect of the counterparty and the Group\u2019s own
\n
credit risk on the fair value of the foreign exchange forward contracts and swaps, which is not re\ufb02ected in the fair value of the
\n
hedged item attributable to changes in foreign exchange rates and ineffectiveness on rolling the cash \ufb02ow hedges of the
\n
divestments mentioned above. No other sources of ineffectiveness emerged from these hedging relationships. No ineffectiveness
\n
was recorded from cash \ufb02ow hedges in 2022 (2021: \u00a3nil). No ineffectiveness was recorded from net investment hedges (2021: \u00a3nil).
\n
2022
\n
Hedging instruments
\n
Average
\n
exchange rate
\n
Foreign
\n
currency
\n
Notional
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Periodic
\n
change in
\n
value for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Cash \ufb02ow hedges
\n
Foreign exchange contracts
\n
Buy foreign currency:
\n
Less than 3 months
1.23
USD
100
2
2
\n
3 to 6 months
1.16
EUR
50
2
2
\n
Over 6 months
1.15
EUR
24
1
1
\n
Sell foreign currency
\n
Less than 3 months
1.14
EUR
(7)
\u2013
\u2013
\n
167
5
5
\n
\n
\n
\n\n
2022
\n
Hedging instruments
\n
Average
\n
exchange rate
\n
Foreign
\n
currency
\n
Notional
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Periodic
\n
change in
\n
value for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Net investment hedges
\n
Foreign exchange contracts
\n
Sell foreign currency:
\n
Less than 3 months
1.14
EUR
6,559
(103)
(317)
\n
160.90
JPY
194
(3)
(9)
\n
Over 6 months
1.57
CAD
270
18
15
\n
1.59
SGD
174
2
1
\n
Borrowings
\n
Less than 3 months
EUR
293
(293)
(4)
\n
3 to 6 months
EUR
150
(150)
(3)
\n
Over 6 months
EUR
6,341
(6,322)
(300)
\n
13,981
(6,851)
(617)
\n
2022
\n
Hedged items
\n
Periodic change in value
\n
for calculating hedge
\n
ineffectiveness
\n
\u00a3m
\n
Cumulative balance in cash
\n
\ufb02ow hedge reserve/foreign
\n
currency translation reserve
\n
for continuing hedges
\n
\u00a3m
\n
Balance in cash \ufb02ow hedge
\n
reserve arising from hedging
\n
relationships for which hedge
\n
accounting is no longer
\n
applied
\n
\u00a3m
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows from a highly probable forecast transaction
(2)
2
\u2013
\n
Variability in cash \ufb02ows from foreign exchange exposure arising on
\n
Euro denominated coupon payments relating to debt issued
(3)
2
\u2013
\n
Net investment hedges
\n
Net investment in foreign operations
617
(1,120)
\u2013
\n
2021
\n
Hedging instruments
\n
Average
\n
exchange rate
\n
Foreign
\n
currency
\n
Notional
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Periodic
\n
change in
\n
value for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Cash \ufb02ow hedges
\n
Foreign exchange contracts
\n
Buy foreign currency:
\n
Less than 3 months
1.32
USD
89
(2)
\u2013
\n
3 to 6 months
1.17
EUR
48
(1)
(1)
\n
Over 6 months
1.17
EUR
23
\u2013
\u2013
\n
160
(3)
(1)
\n
2021
\n
Hedging instruments
\n
Average
\n
exchange rate
\n
Foreign
\n
currency
\n
Notional
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Periodic
\n
change in
\n
value for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Net investment hedges
\n
Foreign exchange contracts
\n
Sell foreign currency:
\n
Less than 3 months
1.18
EUR
5,348
58
578
\n
SGD
\u2013
\u2013
55
\n
155.19
JPY
121
\u2013
15
\n
Borrowings
\n
Less than 3 months
EUR
252
(252)
11
\n
Over 6 months
EUR
4,998
(4,982)
459
\n
10,719
(5,176)
1,118
\n
\n
\n
\n
\n\n
2021
\n
Hedged items
\n
Periodic change in value
\n
for calculating hedge
\n
ineffectiveness
\n
\u00a3m
\n
Cumulative balance in cash
\n
\ufb02ow hedge reserve/foreign
\n
currency translation reserve
\n
for continuing hedges
\n
\u00a3m
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows from foreign exchange exposure arising on
\n
Euro denominated coupon payments relating to debt issued
\n
1
(1)
\n
Net investment hedges
\n
Net investment in foreign operations
(1,117)
(873)
\n
\u00a33 million (2021: \u00a319 million) of balances in the cash \ufb02ow hedge reserve arise from hedging relationships for which hedge
\n
accounting is no longer applied.
\n
The following table details the effectiveness of the hedging relationships and the amounts reclassi\ufb01ed from the hedging reserve to
\n
pro\ufb01t or loss:
\n
2022
\n
Amount reclassi\ufb01ed to pro\ufb01t or loss
Amount reclassi\ufb01ed to balance sheet
\n
Hedging
\n
gains/(losses)
\n
recognised in
\n
reserves
\n
\u00a3m
\n
Amount
\n
of hedge
\n
ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or
\n
loss in
\n
which hedge
\n
ineffectiveness
\n
is included
\n
Hedged
\n
future cash
\n
\ufb02ows
\n
no longer
\n
expected to
\n
occur
\n
\u00a3m
\n
Due to
\n
hedged item
\n
affecting
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item in
\n
pro\ufb01t or loss
\n
in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Due to hedged
\n
item affecting
\n
balance sheet
\n
\u00a3m
\n
Line item
\n
in balance
\n
sheet in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows from
\n
a highly probable forecast
\n
transaction
\n
(5)
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
\u2013
8
Intangible
\n
assets
\n
Variability in cash \ufb02ows from
\n
foreign exchange exposure
\n
arising on Euro denominated
\n
coupon payments relating to
\n
debt issued
\n
4
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
(2)
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
\n
Net investment hedges
\n
Net investment in foreign
\n
operations
\n
(617)
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
194 Discontinued
\n
operations
\n
(1)
\n
\u2013
\u2013
\n
2021
\n
Amount reclassi\ufb01ed to pro\ufb01t or loss
Amount reclassi\ufb01ed to balance sheet
\n
Hedging
\n
gains/(losses)
\n
recognised in
\n
reserves
\n
\u00a3m
\n
Amount
\n
of hedge
\n
ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or
\n
loss in
\n
which hedge
\n
ineffectiveness
\n
is included
\n
Hedged
\n
future cash
\n
\ufb02ows
\n
no longer
\n
expected to
\n
occur
\n
\u00a3m
\n
Due to
\n
hedged item
\n
affecting
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item in
\n
pro\ufb01t or loss
\n
in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Due to hedged
\n
item affecting
\n
balance sheet
\n
\u00a3m
\n
Line item
\n
in balance
\n
sheet in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows from
\n
a highly probable forecast
\n
transaction
\n
7
\u2013
Other
\n
operating
\n
income/
\n
(expense)
\n
\u2013
(7)
Other
\n
operating
\n
income/
\n
(expense)
\n
\u2013
\u2013
\n
Variability in cash \ufb02ows from
\n
foreign exchange exposure
\n
arising on Euro denominated
\n
coupon payments relating to
\n
debt issued
\n
(1)
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
\n
Net investment hedges
\n
Net investment in foreign
\n
operations
\n
1,117
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
(7)
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
\n
(1)
Reclassi\ufb01ed to the Consolidated income statement on the demerger of the Consumer Healthcare business.
\n
\n
\n
\n\n
Interest rate risk
\n
The Group manages its cash \ufb02ow interest rate risk by using \ufb02oating-to-\ufb01xed interest rate swaps, where at quarterly intervals the
\n
difference between \ufb01xed contract rates and \ufb02oating rate interest amounts calculated by reference to the agreed notional
\n
principal amounts are exchanged.
\n
There are none of these swaps outstanding at 31 December 2022. At 31 December 2021, the interest rate risk on an element of
\n
future debt issuance had been managed by entering into forward starting interest rate swaps, effectively to lock in the interest
\n
rates on the debt in advance. These were closed out at the time of issuing the debt, and the resulting gain or loss held in the Cash
\n
\ufb02ow hedge reserve and reclassi\ufb01ed to income statement as the interest payments on the debt impacted the income statement
\n
until the debt was derecognised on demerger of the Consumer Healthcare business in July 2022.
\n
Forward starting interest rate swaps
\n
The forward starting interest rate contracts, exchanging \ufb02oating interest for \ufb01xed interest, were designated as cash \ufb02ow hedges
\n
to hedge the interest variability of the interest cash \ufb02ows associated with the future \ufb01xed rate debt.
\n
Interest rate swaps
\n
The following tables provide information regarding interest rate swap and forward starting interest rate swap contracts
\n
outstanding and the related hedged items at 31 December 2021. There were no such swaps at 31 December 2022. Interest rate
\n
swap contract assets and liabilities are presented in the line \u2018Derivative \ufb01nancial instruments\u2019 (either as assets or liabilities) on the
\n
Consolidated balance sheet.
\n
\u00a324 million (2021: \u00a311 million) of balances in the cash \ufb02ow hedge reserve arise from hedge relationships for which hedge
\n
accounting is no longer applied.
\n
2021
\n
Hedging instruments
\n
Average
\n
contracted
\n
\ufb01xed rate
\n
%
\n
Notional
\n
principal
\n
value
\n
\u00a3m
\n
Change in
\n
fair value for
\n
recognising
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Fair value
\n
assets/
\n
(liabilities)
\n
\u00a3m
\n
5-10 years
1.1038
668
4
4
\n
10-30 years
1.3385
935
3
3
\n
More than 30 years
1.4515
393
4
4
\n
2021
\n
Hedged items
\n
Change in
\n
value used for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Balance in
\n
cash \ufb02ow
\n
hedge reserve
\n
for continuing
\n
hedges
\n
after tax
\n
\u00a3m
\n
Pre-hedging of long-term interest rate
(11)
(8)
\n
\n
\n
\n
\n\n
The following table details the effectiveness of the hedging relationships and the amounts reclassi\ufb01ed from the hedging reserve to pro\ufb01t
\n
or loss:
\n
2022
\n
Amount reclassi\ufb01ed to pro\ufb01t or loss
\n
Hedging
\n
gains/(losses)
\n
recognised in
\n
reserves
\n
\u00a3m
\n
Amount
\n
of hedge
\n
ineffectiveness
\n
recognised
\n
in pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or
\n
loss in
\n
which hedge
\n
ineffectiveness
\n
is included
\n
Due to
\n
hedged future
\n
cash \ufb02ows
\n
no longer
\n
expected to
\n
occur
\n
\u00a3m
\n
Due to
\n
hedged item
\n
affecting
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or loss
\n
in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Cash \ufb02ow hedges
\n
Pre-hedging of long-term interest rates:
\n
Matured in the past
(23)
\u2013
\n
Finance
\n
income or
\n
expense
\n
\u2013
3
\n
Finance
\n
income or
\n
expense
\n
2021
\n
Amount reclassi\ufb01ed to pro\ufb01t or loss
\n
Hedging
\n
gains/(losses)
\n
recognised in
\n
reserves
\n
\u00a3m
\n
Amount
\n
of hedge
\n
ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or
\n
loss in
\n
which hedge
\n
ineffectiveness
\n
is included
\n
Due to
\n
hedged future
\n
cash \ufb02ows
\n
no longer
\n
expected to
\n
occur
\n
\u00a3m
\n
Due to
\n
hedged item
\n
affecting
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or loss
\n
in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows
(11)
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
17
Finance
\n
income or
\n
expense
\n
Pre-hedging of long-term interest rates:
\n
Matured in the past
\u2013
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
2
Finance
\n
income or
\n
expense
\n
5-10 years
4
\u2013
\u2013
\u2013
\n
10-30 years
3
\u2013
\u2013
\u2013
\n
>30 years
4
\u2013
\u2013
\u2013
\n
(e) Offsetting of \ufb01nancial assets and liabilities
\n
Financial assets and liabilities are offset and the net amount reported in the balance sheet where there is a legally enforceable
\n
right to offset the recognised amounts, and there is an intention to settle on a net basis or realise the asset and settle the liability
\n
simultaneously. There are also arrangements that do not meet the criteria for offsetting but still allow for the related amounts to
\n
be offset in certain circumstances, such as bankruptcy or the termination of a contract.
\n
The following tables set out the \ufb01nancial assets and liabilities that are offset, or subject to enforceable master netting
\n
arrangements and other similar agreements but not offset, as at 31 December 2022 and 31 December 2021. The column \u2018Net
\n
amount\u2019 shows the impact on the Group\u2019s balance sheet if all offset rights were exercised.
\n
At 31 December 2022
\n
Gross
\n
\ufb01nancial
\n
assets/
\n
(liabilities)
\n
\u00a3m
\n
Gross
\n
\ufb01nancial
\n
(liabilities)/
\n
assets set off
\n
\u00a3m
\n
Net \ufb01nancial
\n
assets/
\n
(liabilities) per
\n
balance sheet
\n
\u00a3m
\n
Related
\n
amounts not
\n
set off in the
\n
balance sheet
\n
\u00a3m
\n
Net
\n
\u00a3m
\n
Financial assets
\n
Trade and other receivables
6,166
\u2013
6,166
\u2013
6,166
\n
Derivative \ufb01nancial instruments
190
\u2013
190
(163)
27
\n
Financial liabilities
\n
Trade and other payables
(14,065)
\u2013
(14,065)
\u2013
(14,065)
\n
Derivative \ufb01nancial instruments
(183)
\u2013
(183)
163
(20)
\n
\n
\n
\n\n
At 31 December 2021
\n
Gross
\n
\ufb01nancial
\n
assets/
\n
(liabilities)
\n
\u00a3m
\n
Financial
\n
(liabilities)/
\n
assets
\n
offset
\n
\u00a3m
\n
Net \ufb01nancial
\n
assets/
\n
(liabilities)
\n
\u00a3m
\n
Related
\n
amounts not
\n
offset
\n
\u00a3m
\n
Net
\n
balance
\n
\u00a3m
\n
Financial assets
\n
Trade and other receivables
6,851
(19)
6,832
(3)
6,829
\n
Derivative \ufb01nancial instruments
206
\u2013
206
(192)
14
\n
Financial liabilities
\n
Trade and other payables
(15,450)
19
(15,431)
3
(15,428)
\n
Derivative \ufb01nancial instruments
(228)
\u2013
(228)
192
(36)
\n
Amounts which do not meet the criteria for offsetting on the balance sheet but could be settled net in certain circumstances
\n
principally relate to derivative transactions under ISDA (International Swaps and Derivatives Association) agreements where each
\n
party has the option to settle amounts on a net basis in the event of default of the other party. As there is presently not a legally
\n
enforceable right of offset, these amounts have not been offset in the balance sheet, but have been presented separately in the
\ntable above.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f34685": {
"value": "At 31 December 2022, the Employee Share Ownership Plan (ESOP) Trusts held GSK shares with a carrying value of \u00a3354 million
(2021: \u00a328 million) and a market value of \u00a3861 million (2021: \u00a3373 million) based on quoted market price. The shares are held by the
\n
ESOP Trusts to satisfy future exercises of options and awards under employee incentive schemes. In 2022, the carrying value,
\n
which is the lower of cost or expected proceeds, of these shares has been recognised as a deduction from other reserves.
\n
At 31 December 2022, GSK held Treasury shares at a cost of \u00a33,797 million (2021: \u00a34,969 million) which has been deducted from
\nretained earnings.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f35165": {
"value": "(d) Derivative \ufb01nancial instruments and hedging programmes
Derivatives are only used for economic hedging purposes and not as speculative investments and are classi\ufb01ed as \u2018held for
\n
trading\u2019, other than designated and effective hedging instruments, and are presented as current assets or liabilities if they are
\n
expected to be settled within 12 months after the end of the reporting period, otherwise they are classi\ufb01ed as non-current. The
\n
Group has the following derivative \ufb01nancial instruments:
\n
2022
\n
Fair value
\n
2021
\n
Fair value
\n
Assets
\n
\u00a3m
\n
Liabilities
\n
\u00a3m
\n
Assets
\n
\u00a3m
\n
Liabilities
\n
\u00a3m
\n
Non-current
\n
Cash \ufb02ow hedges \u2013 Interest rate swap contracts
\n
(principal amount \u2013 \u00a3nil (2021: \u00a31,996 million))
\u2013
\u2013
12
(1)
\n
Current
\n
Cash \ufb02ow hedges \u2013 Foreign exchange contracts
\n
(principal amount \u2013 \u00a3167 million (2021: \u00a3160 million))
5
\u2013
\u2013
(3)
\n
Net investment hedges \u2013 Foreign exchange contracts
\n
(principal amount \u2013 \u00a37,197 million (2021: \u00a35,469 million))
20
(106)
111
(53)
\n
Derivatives designated and effective as hedging instruments
25
(106)
123
(57)
\n
Non-current
\n
Embedded and other derivatives
\u2013
\u2013
6
\u2013
\n
Current
\n
Foreign exchange contracts
\n
(principal amount \u2013 \u00a35,908 million (2021: \u00a39,728 million))
163
(76)
77
(169)
\n
Embedded and other derivatives
2
(1)
\u2013
(2)
\n
Derivatives classi\ufb01ed as held for trading
165
(77)
83
(171)
\n
Total derivative instruments
190
(183)
206
(228)
\n
\n
\n
\n
\n\n
Fair value hedges
\n
At 31 December 2022 and 31 December 2021, the Group had no designated fair value hedges.
\n
Net investment hedges
\n
At 31 December 2022, certain foreign exchange contracts were designated as net investment hedges in respect of the foreign
\n
currency translation risk arising on consolidation of the Group\u2019s net investment in its European (Euro), Singaporean (SGD),
\n
Canadian (CAD) and Japanese (JPY) foreign operations as shown in the table above.
\n
The carrying value of bonds on page 249 included \u00a36,322 million (2021: \u00a34,982 million) that were designated as hedging
\n
instruments in net investment hedges.
\n
Cash \ufb02ow hedges
\n
During 2021 and 2022, the Group entered into forward foreign exchange contracts which have been designated as cash \ufb02ow
\n
hedges. These were entered into to hedge the foreign exchange exposure arising on cash \ufb02ows from Euro denominated coupon
\n
payments relating to notes issued under the Group\u2019s European Medium Term Note programme, and to hedge foreign currency
\n
payments due on collaboration or licensing arrangements.
\n
The Group manages its cash \ufb02ow interest rate risk by using \ufb02oating-to-\ufb01xed interest rate swaps. In addition, the Group carries a
\n
balance in reserves that arose from pre-hedging \ufb02uctuations in long-term interest rates when pricing bonds issued in prior years
\n
and in the current year. The balance is reclassi\ufb01ed to \ufb01nance costs over the life of these bonds.
\n
Foreign exchange risk
\n
In the current year, the Group has designated certain foreign exchange forward contracts and swaps as cash \ufb02ow and net
\n
investment hedges. Foreign exchange derivative \ufb01nancial assets and liabilities are presented in the line \u2018Derivative \ufb01nancial
\n
instruments\u2019 (either as assets or liabilities) on the Consolidated balance sheet. The following tables detail the foreign exchange
\n
forward contracts and swaps outstanding at the end of the reporting period, as well as information on the related hedged items.
\n
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness
\n
assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Group enters
\n
into hedge relationships where the critical terms of the hedging instrument match exactly with the terms of the hedged item, and
\n
so a qualitative assessment of effectiveness is performed. If changes in circumstances affect the terms of the hedged item such
\n
that the critical terms no longer match exactly with the critical terms of the hedging instrument, the Group uses the hypothetical
\n
derivative method to assess effectiveness.
\n
The main source of hedge ineffectiveness in these hedging relationships is the effect of the counterparty and the Group\u2019s own
\n
credit risk on the fair value of the foreign exchange forward contracts and swaps, which is not re\ufb02ected in the fair value of the
\n
hedged item attributable to changes in foreign exchange rates and ineffectiveness on rolling the cash \ufb02ow hedges of the
\n
divestments mentioned above. No other sources of ineffectiveness emerged from these hedging relationships. No ineffectiveness
\n
was recorded from cash \ufb02ow hedges in 2022 (2021: \u00a3nil). No ineffectiveness was recorded from net investment hedges (2021: \u00a3nil).
\n
2022
\n
Hedging instruments
\n
Average
\n
exchange rate
\n
Foreign
\n
currency
\n
Notional
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Periodic
\n
change in
\n
value for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Cash \ufb02ow hedges
\n
Foreign exchange contracts
\n
Buy foreign currency:
\n
Less than 3 months
1.23
USD
100
2
2
\n
3 to 6 months
1.16
EUR
50
2
2
\n
Over 6 months
1.15
EUR
24
1
1
\n
Sell foreign currency
\n
Less than 3 months
1.14
EUR
(7)
\u2013
\u2013
\n
167
5
5
\n
\n
\n
\n\n
2022
\n
Hedging instruments
\n
Average
\n
exchange rate
\n
Foreign
\n
currency
\n
Notional
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Periodic
\n
change in
\n
value for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Net investment hedges
\n
Foreign exchange contracts
\n
Sell foreign currency:
\n
Less than 3 months
1.14
EUR
6,559
(103)
(317)
\n
160.90
JPY
194
(3)
(9)
\n
Over 6 months
1.57
CAD
270
18
15
\n
1.59
SGD
174
2
1
\n
Borrowings
\n
Less than 3 months
EUR
293
(293)
(4)
\n
3 to 6 months
EUR
150
(150)
(3)
\n
Over 6 months
EUR
6,341
(6,322)
(300)
\n
13,981
(6,851)
(617)
\n
2022
\n
Hedged items
\n
Periodic change in value
\n
for calculating hedge
\n
ineffectiveness
\n
\u00a3m
\n
Cumulative balance in cash
\n
\ufb02ow hedge reserve/foreign
\n
currency translation reserve
\n
for continuing hedges
\n
\u00a3m
\n
Balance in cash \ufb02ow hedge
\n
reserve arising from hedging
\n
relationships for which hedge
\n
accounting is no longer
\n
applied
\n
\u00a3m
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows from a highly probable forecast transaction
(2)
2
\u2013
\n
Variability in cash \ufb02ows from foreign exchange exposure arising on
\n
Euro denominated coupon payments relating to debt issued
(3)
2
\u2013
\n
Net investment hedges
\n
Net investment in foreign operations
617
(1,120)
\u2013
\n
2021
\n
Hedging instruments
\n
Average
\n
exchange rate
\n
Foreign
\n
currency
\n
Notional
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Periodic
\n
change in
\n
value for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Cash \ufb02ow hedges
\n
Foreign exchange contracts
\n
Buy foreign currency:
\n
Less than 3 months
1.32
USD
89
(2)
\u2013
\n
3 to 6 months
1.17
EUR
48
(1)
(1)
\n
Over 6 months
1.17
EUR
23
\u2013
\u2013
\n
160
(3)
(1)
\n
2021
\n
Hedging instruments
\n
Average
\n
exchange rate
\n
Foreign
\n
currency
\n
Notional
\n
value
\n
\u00a3m
\n
Carrying
\n
value
\n
\u00a3m
\n
Periodic
\n
change in
\n
value for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Net investment hedges
\n
Foreign exchange contracts
\n
Sell foreign currency:
\n
Less than 3 months
1.18
EUR
5,348
58
578
\n
SGD
\u2013
\u2013
55
\n
155.19
JPY
121
\u2013
15
\n
Borrowings
\n
Less than 3 months
EUR
252
(252)
11
\n
Over 6 months
EUR
4,998
(4,982)
459
\n
10,719
(5,176)
1,118
\n
\n
\n
\n
\n\n
2021
\n
Hedged items
\n
Periodic change in value
\n
for calculating hedge
\n
ineffectiveness
\n
\u00a3m
\n
Cumulative balance in cash
\n
\ufb02ow hedge reserve/foreign
\n
currency translation reserve
\n
for continuing hedges
\n
\u00a3m
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows from foreign exchange exposure arising on
\n
Euro denominated coupon payments relating to debt issued
\n
1
(1)
\n
Net investment hedges
\n
Net investment in foreign operations
(1,117)
(873)
\n
\u00a33 million (2021: \u00a319 million) of balances in the cash \ufb02ow hedge reserve arise from hedging relationships for which hedge
\n
accounting is no longer applied.
\n
The following table details the effectiveness of the hedging relationships and the amounts reclassi\ufb01ed from the hedging reserve to
\n
pro\ufb01t or loss:
\n
2022
\n
Amount reclassi\ufb01ed to pro\ufb01t or loss
Amount reclassi\ufb01ed to balance sheet
\n
Hedging
\n
gains/(losses)
\n
recognised in
\n
reserves
\n
\u00a3m
\n
Amount
\n
of hedge
\n
ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or
\n
loss in
\n
which hedge
\n
ineffectiveness
\n
is included
\n
Hedged
\n
future cash
\n
\ufb02ows
\n
no longer
\n
expected to
\n
occur
\n
\u00a3m
\n
Due to
\n
hedged item
\n
affecting
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item in
\n
pro\ufb01t or loss
\n
in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Due to hedged
\n
item affecting
\n
balance sheet
\n
\u00a3m
\n
Line item
\n
in balance
\n
sheet in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows from
\n
a highly probable forecast
\n
transaction
\n
(5)
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
\u2013
8
Intangible
\n
assets
\n
Variability in cash \ufb02ows from
\n
foreign exchange exposure
\n
arising on Euro denominated
\n
coupon payments relating to
\n
debt issued
\n
4
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
(2)
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
\n
Net investment hedges
\n
Net investment in foreign
\n
operations
\n
(617)
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
194 Discontinued
\n
operations
\n
(1)
\n
\u2013
\u2013
\n
2021
\n
Amount reclassi\ufb01ed to pro\ufb01t or loss
Amount reclassi\ufb01ed to balance sheet
\n
Hedging
\n
gains/(losses)
\n
recognised in
\n
reserves
\n
\u00a3m
\n
Amount
\n
of hedge
\n
ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or
\n
loss in
\n
which hedge
\n
ineffectiveness
\n
is included
\n
Hedged
\n
future cash
\n
\ufb02ows
\n
no longer
\n
expected to
\n
occur
\n
\u00a3m
\n
Due to
\n
hedged item
\n
affecting
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item in
\n
pro\ufb01t or loss
\n
in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Due to hedged
\n
item affecting
\n
balance sheet
\n
\u00a3m
\n
Line item
\n
in balance
\n
sheet in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows from
\n
a highly probable forecast
\n
transaction
\n
7
\u2013
Other
\n
operating
\n
income/
\n
(expense)
\n
\u2013
(7)
Other
\n
operating
\n
income/
\n
(expense)
\n
\u2013
\u2013
\n
Variability in cash \ufb02ows from
\n
foreign exchange exposure
\n
arising on Euro denominated
\n
coupon payments relating to
\n
debt issued
\n
(1)
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
\n
Net investment hedges
\n
Net investment in foreign
\n
operations
\n
1,117
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
(7)
Finance
\n
income or
\n
expense
\n
\u2013
\u2013
\n
(1)
Reclassi\ufb01ed to the Consolidated income statement on the demerger of the Consumer Healthcare business.
\n
\n
\n
\n\n
Interest rate risk
\n
The Group manages its cash \ufb02ow interest rate risk by using \ufb02oating-to-\ufb01xed interest rate swaps, where at quarterly intervals the
\n
difference between \ufb01xed contract rates and \ufb02oating rate interest amounts calculated by reference to the agreed notional
\n
principal amounts are exchanged.
\n
There are none of these swaps outstanding at 31 December 2022. At 31 December 2021, the interest rate risk on an element of
\n
future debt issuance had been managed by entering into forward starting interest rate swaps, effectively to lock in the interest
\n
rates on the debt in advance. These were closed out at the time of issuing the debt, and the resulting gain or loss held in the Cash
\n
\ufb02ow hedge reserve and reclassi\ufb01ed to income statement as the interest payments on the debt impacted the income statement
\n
until the debt was derecognised on demerger of the Consumer Healthcare business in July 2022.
\n
Forward starting interest rate swaps
\n
The forward starting interest rate contracts, exchanging \ufb02oating interest for \ufb01xed interest, were designated as cash \ufb02ow hedges
\n
to hedge the interest variability of the interest cash \ufb02ows associated with the future \ufb01xed rate debt.
\n
Interest rate swaps
\n
The following tables provide information regarding interest rate swap and forward starting interest rate swap contracts
\n
outstanding and the related hedged items at 31 December 2021. There were no such swaps at 31 December 2022. Interest rate
\n
swap contract assets and liabilities are presented in the line \u2018Derivative \ufb01nancial instruments\u2019 (either as assets or liabilities) on the
\n
Consolidated balance sheet.
\n
\u00a324 million (2021: \u00a311 million) of balances in the cash \ufb02ow hedge reserve arise from hedge relationships for which hedge
\n
accounting is no longer applied.
\n
2021
\n
Hedging instruments
\n
Average
\n
contracted
\n
\ufb01xed rate
\n
%
\n
Notional
\n
principal
\n
value
\n
\u00a3m
\n
Change in
\n
fair value for
\n
recognising
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Fair value
\n
assets/
\n
(liabilities)
\n
\u00a3m
\n
5-10 years
1.1038
668
4
4
\n
10-30 years
1.3385
935
3
3
\n
More than 30 years
1.4515
393
4
4
\n
2021
\n
Hedged items
\n
Change in
\n
value used for
\n
calculating
\n
hedge
\n
ineffectiveness
\n
\u00a3m
\n
Balance in
\n
cash \ufb02ow
\n
hedge reserve
\n
for continuing
\n
hedges
\n
after tax
\n
\u00a3m
\n
Pre-hedging of long-term interest rate
(11)
(8)
\n
\n
\n
\n
\n\n
The following table details the effectiveness of the hedging relationships and the amounts reclassi\ufb01ed from the hedging reserve to pro\ufb01t
\n
or loss:
\n
2022
\n
Amount reclassi\ufb01ed to pro\ufb01t or loss
\n
Hedging
\n
gains/(losses)
\n
recognised in
\n
reserves
\n
\u00a3m
\n
Amount
\n
of hedge
\n
ineffectiveness
\n
recognised
\n
in pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or
\n
loss in
\n
which hedge
\n
ineffectiveness
\n
is included
\n
Due to
\n
hedged future
\n
cash \ufb02ows
\n
no longer
\n
expected to
\n
occur
\n
\u00a3m
\n
Due to
\n
hedged item
\n
affecting
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or loss
\n
in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Cash \ufb02ow hedges
\n
Pre-hedging of long-term interest rates:
\n
Matured in the past
(23)
\u2013
\n
Finance
\n
income or
\n
expense
\n
\u2013
3
\n
Finance
\n
income or
\n
expense
\n
2021
\n
Amount reclassi\ufb01ed to pro\ufb01t or loss
\n
Hedging
\n
gains/(losses)
\n
recognised in
\n
reserves
\n
\u00a3m
\n
Amount
\n
of hedge
\n
ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or
\n
loss in
\n
which hedge
\n
ineffectiveness
\n
is included
\n
Due to
\n
hedged future
\n
cash \ufb02ows
\n
no longer
\n
expected to
\n
occur
\n
\u00a3m
\n
Due to
\n
hedged item
\n
affecting
\n
pro\ufb01t or loss
\n
\u00a3m
\n
Line item
\n
in pro\ufb01t or loss
\n
in which
\n
reclassi\ufb01cation
\n
adjustment
\n
is included
\n
Cash \ufb02ow hedges
\n
Variability in cash \ufb02ows
(11)
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
17
Finance
\n
income or
\n
expense
\n
Pre-hedging of long-term interest rates:
\n
Matured in the past
\u2013
\u2013
Finance
\n
income or
\n
expense
\n
\u2013
2
Finance
\n
income or
\n
expense
\n
5-10 years
4
\u2013
\u2013
\u2013
\n
10-30 years
3
\u2013
\u2013
\u2013
\n
>30 years
4
\u2013
\u2013
\u2013",
"dimensions": {
"concept": "ifrs-full:DisclosureOfHedgeAccountingExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f35166": {
"value": "(d) Derivative \ufb01nancial instruments and hedging programmes
Derivatives are only used for economic hedging purposes and not as speculative investments and are classi\ufb01ed as \u2018held for
\n
trading\u2019, other than designated and effective hedging instruments, and are presented as current assets or liabilities if they are
\n
expected to be settled within 12 months after the end of the reporting period, otherwise they are classi\ufb01ed as non-current. The
\n
Group has the following derivative \ufb01nancial instruments:
\n
2022
\n
Fair value
\n
2021
\n
Fair value
\n
Assets
\n
\u00a3m
\n
Liabilities
\n
\u00a3m
\n
Assets
\n
\u00a3m
\n
Liabilities
\n
\u00a3m
\n
Non-current
\n
Cash \ufb02ow hedges \u2013 Interest rate swap contracts
\n
(principal amount \u2013 \u00a3nil (2021: \u00a31,996 million))
\u2013
\u2013
12
(1)
\n
Current
\n
Cash \ufb02ow hedges \u2013 Foreign exchange contracts
\n
(principal amount \u2013 \u00a3167 million (2021: \u00a3160 million))
5
\u2013
\u2013
(3)
\n
Net investment hedges \u2013 Foreign exchange contracts
\n
(principal amount \u2013 \u00a37,197 million (2021: \u00a35,469 million))
20
(106)
111
(53)
\n
Derivatives designated and effective as hedging instruments
25
(106)
123
(57)
\n
Non-current
\n
Embedded and other derivatives
\u2013
\u2013
6
\u2013
\n
Current
\n
Foreign exchange contracts
\n
(principal amount \u2013 \u00a35,908 million (2021: \u00a39,728 million))
163
(76)
77
(169)
\n
Embedded and other derivatives
2
(1)
\u2013
(2)
\n
Derivatives classi\ufb01ed as held for trading
165
(77)
83
(171)
\n
Total derivative instruments
190
(183)
206
(228)",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f36099": {
"value": "(e) Offsetting of \ufb01nancial assets and liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet where there is a legally enforceable
\n
right to offset the recognised amounts, and there is an intention to settle on a net basis or realise the asset and settle the liability
\n
simultaneously. There are also arrangements that do not meet the criteria for offsetting but still allow for the related amounts to
\nbe offset in certain circumstances, such as bankruptcy or the termination of a contract.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f36863": {
"value": "45. Employee share schemes
GSK operates several employee share schemes, including the Share Value Plan, whereby awards are granted to employees to
\n
acquire shares or ADS in GSK plc at no cost after a three-year vesting period and the Performance Share Plan, whereby awards
\n
are granted to employees to acquire shares or ADS in GSK plc at no cost, subject to\u202fthe achievement by the Group of speci\ufb01ed
\n
performance targets. The granting of these restricted share awards has replaced the granting of options to employees as the cost
\n
of the schemes more readily equates to the potential gain to be made by the employee. The Group also operates savings related
\n
share option schemes, whereby options are granted to employees to acquire shares in GSK plc at a discounted price.
\n
Grants of restricted share awards are normally exercisable at the end of the three-year vesting or performance period. Awards are
\n
normally granted to employees to acquire shares or ADS in GSK plc but in some circumstances may be settled in cash. Grants under
\n
savings-related share option schemes are normally exercisable after three years\u2019 saving. In accordance with UK practice, the majority of
\n
options under the savings-related share option schemes are granted at a price 20% below the market price ruling at the date of grant.
\n
Options under historical share option schemes were granted at the market price ruling at the date of grant.
\n
The value of the plans for participating employees has been maintained after the demerger of the Consumer Healthcare business
\n
through the effect of the share consolidation (see Note 37). The total charge for share-based incentive plans in 2022 was \u00a3314
\n
million (2021
\n
(1)
\n
: \u00a3345 million; 2020
\n
(1)
\n
: \u00a3330 million). Of this amount, \u00a3243 million (2021
\n
(1)
\n
: \u00a3258million; 2020
\n
(1)
\n
: \u00a3266 million) arose
\n
from the Share Value Plan. See Note 9, \u2018Employee Costs\u2019 for further details.
\n
(1)
The 2021 and 2020 comparatives have been restated to re\ufb02ect on a consistent basis from those previously published to re\ufb02ect the demerger of the Consumer Healthcare
\n
business. See Note 41.
\n
GSK share award schemes
\n
Share Value Plan
\n
Under the Share Value Plan, share awards are granted to certain employees at no cost. The awards vest after two and a half to
\n
three years and there are no performance criteria attached. The fair value of these awards is determined based on the closing
\n
share price on the day of grant, after deducting the expected future dividend yield of 3.2% (2021: 3.8%; 2020: 5.0%) over the
\n
duration of the award.
\n
Number of shares and ADS issuable
\n
Shares
\n
(1)
\n
Number (000)
\n
Weighted
\n
fair value
\n
ADS
\n
(1)
\n
Number (000)
\n
Weighted
\n
fair value
\n
At 1 January 2020
29,459
15,850
\n
Awards granted
11,115
\u00a313.58
6,633
$34.43
\n
Awards exercised
(10,284)
(5,353)
\n
Awards cancelled
(1,416)
(1,014)
\n
At 31 December 2020
28,874
16,116
\n
Awards granted
11,220
\u00a313.28
6,358
$36.68
\n
Awards exercised
(10,074)
(5,240)
\n
Awards cancelled
(1,776)
(1,705)
\n
At 31 December 2021
28,244
15,529
\n
Awards granted
10,987
\u00a313.00
6,133
$30.64
\n
Awards exercised
(9,538)
(4,919)
\n
Awards cancelled
(1,718)
(1,314)
\n
At 31 December 2022
27,975
15,429
\n
(1)
The 2021 and 2020 comparatives have been restated to re\ufb02ect the demerger of the Consumer Healthcare business and aid year on year volume comparability of awards
\n
granted to GSK employees.
\n
Performance Share Plan
\n
Under the Performance Share Plan, share awards are granted to Directors and senior executives at no cost. The percentage of
\n
each award that vests is based upon the performance of the Group over a de\ufb01ned measurement period with dividends reinvested
\n
during the same period. For awards granted from 2016 to 2019, the performance conditions are based on three equally weighted
\n
measures over a three-year performance period. These were adjusted free cash \ufb02ow, TSR and R&D new product performance.
\n
For awards granted from 2020, the performance conditions are based on four measures over a three-year performance period.
\n
These are adjusted free cash \ufb02ow (30%), TSR (30%), R&D new product performance (20%) and pipeline progress (20%). For
\n
awards granted from 2022, the performance conditions are based on \ufb01ve measures over a three-year performance period.
\n
These are TSR (30%), pipeline progress (20%), pro\ufb01t measure (20%), sale measure (20%) and ESG environment (10%).
\n
The fair value of the awards is determined based on the closing share price on the day of grant. For TSR performance elements,
\n
this is adjusted by the likelihood of that condition being met, as assessed at the time of grant.
\n
During 2022, awards for the continuing business were made of 4.0 million shares at a weighted fair value of \u00a313.36 and 1.0 million
\n
ADS at a weighted fair value of $35.88. At 31 December 2022, there were outstanding awards over 12.6 million shares and 2.8
\n
million ADS.
\n
\n
\n
\n
\n\n
Share options and savings-related options
\n
For the purposes of valuing savings-related options to arrive at the share-based payment charge, a Black-Scholes option pricing
\n
model has been used. The assumptions used in the model are as follows:
\n
2022 Grant
2021 Grant
2020 Grant
\n
Risk-free interest rate
3.37%
0.74%
(0.07)%
\n
Dividend yield
3.3%
3.8%
6.2%
\n
Volatility
36%
27%
27%
\n
Expected life
3 years
3 years
3 years
\n
Savings-related options grant price (including 20% discount)
\u00a311.39
\u00a312.07
\u00a310.34
\n
Options outstanding for the Share Save Plan
\n
Savings-related
\n
share option schemes
\n
Number
\n
000
\n
Weighted
\n
exercise
\n
price
\n
At 31 December 2022
5,803
\u00a311.38
\n
Range of exercise prices on options outstanding at year end
\u00a310.34
\u2013
\u00a314.15
\n
Weighted average market price on exercise during year
\u00a316.15
\n
Weighted average remaining contractual life
2.0 years
\n
Options over 1.2 million shares were granted during the year under the savings-related share option scheme at a weighted
\n
average fair value of \u00a34.34. At 31 December 2022, 5.3 million of the savings-related share options were not exercisable.
\n
There has been no change in the effective exercise price of any outstanding options during the year.
\n
Employee Share Ownership Plan Trusts
\n
The Group sponsors Employee Share Ownership Plan (ESOP) Trusts to acquire and hold shares in GSK plc to satisfy awards made
\n
under employee incentive plans and options granted under employee share option schemes. The trustees of the ESOP Trusts
\n
purchase shares with \ufb01nance provided by the Group by way of loans or contributions. The costs of running the ESOP Trusts are
\n
charged to the income statement. Shares held by the ESOP Trusts are deducted from other reserves and amortised down to the
\n
value of proceeds, if any, receivable from employees on exercise by a transfer to retained earnings. The trustees have waived their
\n
rights to dividends on the shares held by the ESOP Trusts.
\n
Shares held for share award schemes
2022
2021
\n
Number of shares (000)
59,814
23,065
\n
\u00a3m
\u00a3m
\n
Nominal value
19
6
\n
Carrying value
353
27
\n
Market value
860
371
\n
Shares held for share option schemes
2022
2021
\n
Number of shares (000)
65
139
\n
\u00a3m
\u00a3m
\n
Nominal value
\u2013
\u2013
\n
Carrying value
1
1
\n
Market value
1
2",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f37111": {
"value": "46. Principal Group companies
The following represent the principal subsidiaries and their countries of incorporation of the Group at 31 December 2022. The
\n
equity share capital of these entities is shown in the percentage columns. All companies are incorporated in their principal country
\n
of operation except where stated.
\n
England
\n
%
\n
Glaxo Group Limited
\n
Glaxo Operations UK Limited
\n
Glaxo Wellcome UK Limited
\n
GlaxoSmithKline Capital plc
\n
GlaxoSmithKline Export Limited
\n
GlaxoSmithKline Finance plc
\n
GlaxoSmithKline Holdings Limited
\n
(a)
\n
GlaxoSmithKline IHC Limited
\n
GlaxoSmithKline Intellectual Property (No.2) Limited
\n
GlaxoSmithKline Intellectual Property (No.3) Limited
\n
GlaxoSmithKline Intellectual Property (No.4) Limited
\n
GlaxoSmithKline Intellectual Property Development Limited
\n
GlaxoSmithKline Intellectual Property Limited
\n
GlaxoSmithKline Research & Development Limited
\n
GlaxoSmithKline Services Unlimited
\n
(a)
\n
GlaxoSmithKline UK Limited
\n
GlaxoSmithKline US Trading Limited
\n
Set\ufb01rst Limited
\n
SmithKline Beecham Limited
\n
ViiV Healthcare Finance Limited
\n
ViiV Healthcare UK (No.3) Limited
\n
Viiv Healthcare UK Limited
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
78.3
\n
78.3
\n
78.3
\n
Europe
\n
%
\n
GlaxoSmithKline AG (Switzerland)
\n
GlaxoSmithKline B.V. (Netherlands)
\n
GlaxoSmithKline Biologicals SA (Belgium)
\n
GlaxoSmithKline GmbH & Co. KG (Germany)
\n
GlaxoSmithKline Pharma GmbH (Austria)
\n
GlaxoSmithKline Pharmaceuticals SA (Belgium)
\n
GlaxoSmithKline S.A. (Spain)
\n
GlaxoSmithKline S.p.A. (Italy)
\n
GlaxoSmithKline Single Member A.E.B.E. (Greece)
\n
GlaxoSmithKline Trading Services Limited (Republic of Ireland)
\n
(b)
\n
GSK Capital B.V. (Netherlands)
\n
(b)
\n
GSK Services Sp z o.o. (Poland)
\n
GSK Vaccines GmbH (Germany)
\n
GSK Vaccines S.r.l. (Italy)
\n
JSC GlaxoSmithKline Trading (Russia)
\n
Laboratoire GlaxoSmithKline (France)
\n
Laboratorios ViiV Healthcare, S.L. (Spain)
\n
ViiV Healthcare GmbH (Germany)
\n
ViiV Healthcare S.r.l. (Italy)
\n
ViiV Healthcare SAS (France)
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
78.3
\n
78.3
\n
78.3
\n
78.3
\n
Scotland
\n
%
\n
GSK (No.1) Scottish Limited Partnership
\n
(c)
\n
GSK (No.2) Scottish Limited Partnership
\n
(c)
\n
GSK (No.3) Scottish Limited Partnership
\n
(d)
\n
US
\n
%
\n
Af\ufb01nivax, Inc
\n
Corixa Corporation
\n
GlaxoSmithKline Capital Inc.
\n
GlaxoSmithKline Holdings (Americas) Inc.
\n
GlaxoSmithKline LLC
\n
GSK Equity Investments, Limited
\n
Human Genome Sciences, Inc
\n
Stiefel Laboratories, Inc
\n
Tesaro, Inc.
\n
ViiV Healthcare Company
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
78.3
\n
Others
\n
%
\n
Glaxo Saudi Arabia Limited (Saudi Arabia)
\n
Glaxo Wellcome Manufacturing Pte Ltd (Singapore)
\n
GlaxoSmithKline (Thailand) Limited (Thailand)
\n
GlaxoSmithKline Australia Pty Ltd (Australia)
\n
GlaxoSmithKline Brasil Limitada (Brazil)
\n
GlaxoSmithKline Far East B.V. (Taiwan)
\n
GlaxoSmithKline Ilaclari Sanayi ve Ticaret A.S. (Turkey)
\n
GlaxoSmithKline Inc. (Canada)
\n
GlaxoSmithKline K.K. (Japan)
\n
GlaxoSmithKline Korea Limited (Republic of Korea)
\n
GlaxoSmithKline Limited (Hong Kong)
\n
GlaxoSmithKline Mexico S.A. de C.V. (Mexico)
\n
GlaxoSmithKline Pakistan Limited (Pakistan)
\n
GlaxoSmithKline Pharmaceuticals Limited (India)
\n
GSK Enterprise Management Co, Ltd (China)
\n
GSK Pharma Vietnam Company Limited (Vietnam)
\n
ID Biomedical Corporation of Quebec (Canada)
\n
ViiV Healthcare K.K (Japan)
\n
ViiV Healthcare ULC (Canada)
\n
75
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
100
\n
82.6
\n
75
\n
100
\n
100
\n
100
\n
78.3
\n
78.3
\n
(a)
Directly held wholly-owned subsidiary of GSK plc.
\n
(b)
Tax resident in UK.
\n
(c)
GSK GP 1 Limited is a subsidiary undertaking of GSK plc and Berkeley Square Pension Trustee Company Limited and is the general partner of GSK (No.1) Scottish Limited
\n
Partnership and GSK (No.2) Scottish Limited Partnership. GSK GP 1 Limited\u2019s share capital is 99% indirectly owned by GSK plc and 1% owned by Berkeley Square Pension
\n
Trustee Company Limited.
\n
(d)
GSK GP 2 Limited is a subsidiary undertaking of GSK plc and is the general partner of GSK (No.3) Scottish Limited Partnership. GSK GP 2 Limited\u2019s share capital is 100%
\n
indirectly owned by GSK plc.
\n
The subsidiaries and associates listed above principally affect the \ufb01gures in the Group\u2019s \ufb01nancial statements. Each of
\n
GlaxoSmithKline Capital Inc., GlaxoSmithKline Capital plc, GlaxoSmithKline Finance plc, GSK Captial BV and GlaxoSmithKline
\n
LLC, is a wholly-owned \ufb01nance subsidiary of the company, and the company has fully and unconditionally guaranteed the
\n
securities issued by each of GlaxoSmithKline Capital Inc., GlaxoSmithKline Capital plc, GlaxoSmithKline Finance plc, GSK Capital
\n
BV and GlaxoSmithKline LLC.
\n
See pages 307 to 314 for a complete list of subsidiary undertakings, associates and joint ventures, which form part of these \ufb01nancial
\nstatements.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f37720": {
"value": "
48. Post balance sheet events
\n
There is no material post balance sheet event that requires an adjustment or a disclosure within the \ufb01nancial statements.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f44269": {
"value": "980 Great West Road, Brentford, Middlesex, TW8 9GS, England",
"dimensions": {
"concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f46206": {
"value": "public limited company",
"dimensions": {
"concept": "ifrs-full:LegalFormOfEntity",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f46211": {
"value": "Effective 15 May 2022 GlaxoSmithKline plc changed its name to GSK plc.",
"dimensions": {
"concept": "ifrs-full:ExplanationOfChangeInNameOfReportingEntityOrOtherMeansOfIdentificationFromEndOfPrecedingReportingPeriod",
"language": "en",
"entity": "scheme:5493000HZTVUYLO1D793",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}