accounted investments' profit after tax.
| | |
| Whilst management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect the obligations and expenses recognised in future accounting periods. The assets and liabilities of defined benefit pension schemes may exhibit significant period-on-period volatility attributable primarily to changes in bond yields and longevity. In addition to future service contributions, significant cash contributions may be required to remediate past service deficits. | |
The net surplus or deficit arising on each of the Group\u2019s defined benefit
pension schemes, are shown either within non-current assets or non-
current liabilities in the Consolidated Balance Sheet. The deferred tax
impact of pension scheme surpluses and deficits is disclosed separately
within deferred tax assets or liabilities as appropriate.
Remeasurements, comprising actuarial gains and losses, the return on plan
assets (excluding net interest) and changes in the effect of the asset ceiling (if
any, excluding net interest), are recognised immediately in the Consolidated
Balance Sheet with a corresponding debit or credit to retained earnings through
other comprehensive income in the period in which they occur. Remeasurements
are not reclassified to profit or loss in subsequent periods.
The defined benefit pension asset or liability in the Consolidated Balance Sheet
comprises the total for each plan of the present value of the defined benefit
obligation less the fair value of plan assets out of which the obligations are to be
settled directly. Plan assets are assets that are held by a long-term employee
benefit fund or qualifying insurance policies. Fair value is based on market price
information and, in the case of published quoted securities, it is the published bid
price. The value of any defined benefit asset is limited to the present value of any
economic benefits available in the form of refunds from the plan and reductions
in the future contributions to the plan.
Defined benefit pension surpluses are recognised as assets to the extent that
they are considered recoverable, which is generally by way of a refund or lower
future employer contributions. Where there is no unconditional right to a refund
or reduction in future contributions, we restrict the assets of the scheme by
applying the asset ceiling test, which limits the net defined benefit surplus to the
present value of available refunds and reductions in future contributions to the
plan.
The Group\u2019s obligation in respect of post-employment healthcare and life
assurance benefits represents the amount of future benefit that employees have
earned in return for service in the current and prior periods. The obligation is
computed on the basis of the projected unit credit method and is discounted to
present value using a discount rate equating to the market yield at the balance
sheet date on high-quality corporate bonds of a currency and term consistent
with the currency and estimated term of the post employment obligations.
Provisions for liabilities \u2013 Note 26
A provision is recognised when the Group has a present obligation (either legal or
constructive) as a result of a past event, it is probable that a transfer of economic
benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation.
| | |
| Significant judgement: Judgement is required in determining whether the Group has a present obligation and whether it is probable that an outflow of economic benefits will be required to settle this obligation. This judgement is applied to information available at the time of determining the liability including but not limited to judgements around interpretations of legislation, regulations, case law and insurance contracts depending on the nature of the provision.\u00a0 | |
Where the Group anticipates that a provision will be reimbursed, the
reimbursement is recognised as a separate asset only when it is virtually certain
that the reimbursement will arise. Provisions are measured at the present value of
the expenditures expected to be required to settle the obligation.
The increase in the provision due to the passage of time is recognised as an
interest expense.
Contingent liabilities arising on business combinations are recognised as
provisions if the contingent liability can be reliably measured at its acquisition
date fair value. Provisions are not recognised for future operating losses.
Management is not aware of any potential changes to key assumptions that have
a significant risk of causing a material adjustment to the carrying value of
provisions within the next financial year; however, due to the nature of some of
our provisions, estimates may depend on the outcome of future events and need
to be revised as circumstances change in future accounting periods. Refer to
note 26 for the expected timing of outflows by provisions category.
Environmental and remediation provisions
The measurement of environmental and remediation provisions is based on an
evaluation of currently available facts with respect to each individual site and
considers factors such as existing technology, currently enacted laws and
regulations and prior experience in remediation of sites. Inherent uncertainties
exist in such evaluations primarily due to unknown conditions, changing
governmental regulations and legal standards regarding liability, the protracted
length of the clean-up periods and evolving technologies.
The environmental and remediation liabilities provided for in the Consolidated
Financial Statements reflect the judgement applied by management in respect of
information available at the time of determining the liability and are adjusted
periodically as remediation efforts progress or as additional technical or legal
information becomes available.
The impact of climate change and policy risks and uncertainties as set out on
page 142 on environmental and remediation provisions has been considered,
specifically the impact on timing and extent of costs and cash outflows. Changes
to legislation, including those relating to climate change, are factored into the
assessment of provisions when the legislation is virtually certain to be enacted.
The Group\u2019s carbon emissions reduction targets is also considered in these
judgements. The measurement of our provisions is based on reasonable and
supportable assumptions that represent management\u2019s current best estimate of
the range of economic conditions that will exist in the foreseeable future. These
assumptions do not have a significant risk of resulting in a material adjustment to
the carrying value of these provisions within the next financial year and therefore
do not represent a major source of estimation uncertainty.
Due to the inherent uncertainties described above, many of which are not under
management\u2019s control, actual costs and cash outflows could differ if
management used different assumptions or if different conditions occur in future
accounting periods.
Legal contingencies
The status of each significant claim and legal proceeding in which the Group is
involved is reviewed by management on a periodic basis and the Group\u2019s
potential financial exposure is assessed. If the potential loss from any claim or
legal proceeding is considered probable, and the amount can be reliably
estimated, a liability is recognised for the estimated loss.
Because of the uncertainties inherent in such matters, the related provisions are
based on the best information available at the time; the issues taken into account
by management and factored into the assessment of legal contingencies include,
as applicable, the status of settlement negotiations, interpretations of contractual
obligations, prior experience with similar contingencies/claims, and advice
obtained from legal counsel and other third parties. As additional information
becomes available on pending claims, the potential liability is reassessed and
revisions are made to the amounts accrued where appropriate. Such revisions in
the judgements and estimates of the potential liabilities could have an impact on
the results of operations and financial position of the Group in future accounting
periods.
Insurance provisions
Insurance provisions are subject to actuarial valuation and are based on actuarial
triangulations which are extrapolated from historical claims experience. These
provisions include claims which are classified as \u201cincurred but not reported\u201d, the
status of which are reviewed periodically by management, in conjunction with
appropriately qualified advisors. Changes in actuarial methodologies and
assumptions, along with the receipt of new information, could have an impact on
the financial position of the Group through recognition of additional, or release of,
provisions in future accounting periods.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzNzM_e8a40609-0d5d-4e70-8e31-b1465bab5950": {
"value": "
Impairment of goodwill and property, plant and equipment \u2013
Notes 13 and 14
Goodwill
In the year in which a business combination is effected and where some or all of
the goodwill allocated to a particular cash-generating unit (CGU) arose in respect
of that combination, the CGU is tested for impairment prior to the end of the
relevant annual period.
Goodwill is subject to impairment testing on an annual basis and at any time
during the year if an indicator of impairment is considered to exist.
Where the carrying value exceeds the estimated recoverable amount (being the
greater of fair value less costs of disposal and value-in-use), an impairment loss is
recognised by writing down goodwill to its recoverable amount.
| | |
| | |
| Major sources of estimation uncertainty: Projected EBITDA (as defined)* margin, long-term growth and pre-tax discount rates The impairment testing process requires management to make significant judgements and estimates regarding the future cash flows expected to be generated by CGUs to which goodwill has been allocated. In assessing value-in-use net cash flow forecasts are extrapolated using long-term growth rates to determine the basis for an annuity-based terminal value. These net cash flow forecasts reflect volume, price and cost (including the cost of carbon where applicable) assumptions in addition to other cash flow movements. EBITDA (as defined)* margin is deemed an appropriate measure for assessing the estimation uncertainty associated with price and cost assumptions. Future cash flows, including the terminal value, are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted. The estimates of future cash flows exclude cash inflows or outflows attributable to financing activities and income tax. Management periodically evaluates and updates the estimates based on the conditions which influence these variables. The assumptions and conditions for determining impairments of goodwill reflect management\u2019s best assumptions and estimates, but these items involve inherent uncertainties described above, many of which are not under management\u2019s control. As a result, the accounting for such items could result in different estimates or amounts if management used different assumptions or if different conditions occur in future accounting periods. A detailed discussion of the impairment methodology applied, key assumptions used and related sensitivity analyses by the Group in the context of goodwill is provided in note 14 to the Consolidated Financial Statements. | |
The recoverable amount of goodwill is determined by reference to the CGU to
which the goodwill has been allocated. Impairment losses arising in respect of
goodwill are not reversed once recognised.
Goodwill relating to associates and joint ventures is included in the carrying
amount of the investment and is neither amortised nor individually tested for
impairment. Where indicators of impairment of an investment arise in accordance
with the requirements of IAS 36 Impairment of Assets, the carrying amount is
tested for impairment by comparing its recoverable amount with its carrying
amount.
Property, plant and equipment
The carrying values of items of property, plant and equipment are reviewed for
indicators of impairment at each reporting date and are subject to impairment
testing when events or changes in circumstances indicate that the carrying
values may not be recoverable.
Property, plant and equipment assets are reviewed for potential impairment by
applying a series of external and internal indicators specific to the assets under
consideration. These indicators encompass macroeconomic issues including the
inherent cyclicality of the building materials sector, actual obsolescence or
physical damage, a deterioration in forecast performance in the internal reporting
cycle and restructuring and rationalisation programmes. Consideration is also
given to climate change and policy risks and uncertainties as set out on page
142, as well as to the actions required to deliver the Group\u2019s carbon emissions
reduction targets when reviewing assets for potential impairment. A detailed
discussion on this consideration is provided in note 13 to the Consolidated
Financial Statements.
Where the carrying value exceeds the estimated recoverable amount (being the
greater of fair value less costs of disposal and value-in-use), an impairment loss is
recognised by writing down the assets to their recoverable amount. For an asset
that does not generate largely independent cash inflows, the recoverable amount
is determined by reference to the CGU to which the asset belongs.
In assessing value-in-use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the CGU for
which the future cash flow estimates have not been adjusted. The estimates of
future cash flows exclude cash inflows or outflows attributable to financing
activities and income tax.
",
"dimensions": {
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"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzNzQ_9a3271c8-a883-47bb-8e32-abde206a3d15": {
"value": "
Goodwill
In the year in which a business combination is effected and where some or all of
the goodwill allocated to a particular cash-generating unit (CGU) arose in respect
of that combination, the CGU is tested for impairment prior to the end of the
relevant annual period.
Goodwill is subject to impairment testing on an annual basis and at any time
during the year if an indicator of impairment is considered to exist.
Where the carrying value exceeds the estimated recoverable amount (being the
greater of fair value less costs of disposal and value-in-use), an impairment loss is
recognised by writing down goodwill to its recoverable amount.
| | |
| | |
| Major sources of estimation uncertainty: Projected EBITDA (as defined)* margin, long-term growth and pre-tax discount rates The impairment testing process requires management to make significant judgements and estimates regarding the future cash flows expected to be generated by CGUs to which goodwill has been allocated. In assessing value-in-use net cash flow forecasts are extrapolated using long-term growth rates to determine the basis for an annuity-based terminal value. These net cash flow forecasts reflect volume, price and cost (including the cost of carbon where applicable) assumptions in addition to other cash flow movements. EBITDA (as defined)* margin is deemed an appropriate measure for assessing the estimation uncertainty associated with price and cost assumptions. Future cash flows, including the terminal value, are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted. The estimates of future cash flows exclude cash inflows or outflows attributable to financing activities and income tax. Management periodically evaluates and updates the estimates based on the conditions which influence these variables. The assumptions and conditions for determining impairments of goodwill reflect management\u2019s best assumptions and estimates, but these items involve inherent uncertainties described above, many of which are not under management\u2019s control. As a result, the accounting for such items could result in different estimates or amounts if management used different assumptions or if different conditions occur in future accounting periods. A detailed discussion of the impairment methodology applied, key assumptions used and related sensitivity analyses by the Group in the context of goodwill is provided in note 14 to the Consolidated Financial Statements. | |
The recoverable amount of goodwill is determined by reference to the CGU to
which the goodwill has been allocated. Impairment losses arising in respect of
goodwill are not reversed once recognised.
Goodwill relating to associates and joint ventures is included in the carrying
amount of the investment and is neither amortised nor individually tested for
impairment. Where indicators of impairment of an investment arise in accordance
with the requirements of IAS 36 Impairment of Assets, the carrying amount is
tested for impairment by comparing its recoverable amount with its carrying
amount.
Goodwill \u2013 Note 14
Goodwill arising on a business combination is initially measured at cost, being the
excess of the cost of an acquisition over the fair value of the net identifiable
assets and liabilities assumed at the date of acquisition and relates to the future
economic benefits arising from assets which are not capable of being individually
identified and separately recognised. Following initial recognition, goodwill is
measured at cost less any accumulated impairment losses. If the cost of the
acquisition is lower than the fair value of the net assets of the subsidiary
acquired, the identification and measurement of the related assets and liabilities
and contingent liabilities are revisited and the cost is reassessed with any
remaining balance recognised immediately in the Consolidated Income
Statement.
The carrying amount of goodwill in respect of associates and joint ventures is
included in investments accounted for using the equity method (i.e. within
financial assets) in the Consolidated Balance Sheet.
Where a subsidiary is disposed of or terminated through closure, the carrying
value of any goodwill of that subsidiary is included in the determination of the net
profit or loss on disposal/termination.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzNzU_74d62914-0e9f-4eb8-8313-717be7ca9e70": {
"value": "
Property, plant and equipment assets are reviewed for potential impairment by
applying a series of external and internal indicators specific to the assets under
consideration. These indicators encompass macroeconomic issues including the
inherent cyclicality of the building materials sector, actual obsolescence or
physical damage, a deterioration in forecast performance in the internal reporting
cycle and restructuring and rationalisation programmes. Consideration is also
given to climate change and policy risks and uncertainties as set out on page
142, as well as to the actions required to deliver the Group\u2019s carbon emissions
reduction targets when reviewing assets for potential impairment. A detailed
discussion on this consideration is provided in note 13 to the Consolidated
Financial Statements.
Where the carrying value exceeds the estimated recoverable amount (being the
greater of fair value less costs of disposal and value-in-use), an impairment loss is
recognised by writing down the assets to their recoverable amount. For an asset
that does not generate largely independent cash inflows, the recoverable amount
is determined by reference to the CGU to which the asset belongs.
In assessing value-in-use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the CGU for
which the future cash flow estimates have not been adjusted. The estimates of
future cash flows exclude cash inflows or outflows attributable to financing
activities and income tax.
Property, plant and equipment \u2013 Note 13
The carrying value of property, plant and equipment (excluding leased right-of-
use assets) of $17,663\u00a0million at 31\u00a0December 2022 represents 39% of total
assets at that date. Property, plant and equipment are stated at cost less any
accumulated depreciation and any accumulated impairments except for certain
items that had been revalued to fair value prior to the date of transition to IFRS (1
January 2004).
Repair and maintenance expenditure is included in an asset\u2019s carrying amount or
recognised as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Group and the
cost of the item can be measured reliably. All other repair and maintenance
expenditure is charged to the Consolidated Income Statement during the
financial period in which it is incurred.
Borrowing costs incurred in the construction of major assets which take a
substantial period of time to complete are capitalised in the financial period in
which they are incurred.
In the application of the Group\u2019s accounting policy, judgement is exercised by
management in the determination of residual values and useful lives.
Depreciation methods, useful lives and residual values are reviewed at each
financial year-end. Changes in the expected useful life or the expected pattern of
consumption of future economic benefits embodied in the asset are accounted
for by changing the depreciation period or method as appropriate on a
prospective basis.
Amongst other factors, consideration is given to climate change and policy risks
and uncertainties as set out on page 142 when determining the useful lives of
assets. The determination of useful lives also considers the Group\u2019s carbon
emissions reduction targets. Capital expenditure will continue to be required for
ongoing projects and the useful lives of future capital expenditure may differ from
current assumptions, however there were no significant changes in the estimates
of useful lives during the current financial year.
Future developments in technology may also result in a risk of obsolescence for
the Group\u2019s current portfolio of plant and machinery assets, however the
expected timeframe for these developments is not currently anticipated to impact
their remaining useful lives as the majority of the Group\u2019s plant and machinery
assets will be fully depreciated within ten years.
Depreciation and depletion is calculated to write off the book value of each item
of property, plant and equipment over its useful economic life on a straight-line
basis at the following rates:
Land and buildings
The book value of mineral-bearing land, less an estimate of its residual value, is
depleted over the period of the mineral extraction in the proportion which
production for the year bears to the latest estimates of proven and probable
mineral reserves. Land, other than mineral-bearing land, is not depreciated. In
general, buildings are depreciated at 2.5% per annum (p.a.).
Plant and machinery
These are depreciated at rates ranging from 3.3% p.a. to 20% p.a. depending on
the type of asset. Plant and machinery includes transport vehicles which are, on
average, depreciated at 20% p.a.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzNzY_612cbdd9-33ad-4016-9da3-ecc262f1ce68": {
"value": "
Retirement benefit obligations \u2013 Note 28
Costs arising in respect of the Group\u2019s defined contribution pension schemes are
charged to the Consolidated Income Statement in the period in which they are
incurred. The Group has no legal or constructive obligation to pay further
contributions in the event that the fund does not hold sufficient assets to meet its
benefit commitments.
The liabilities and costs associated with the Group\u2019s defined benefit pension
schemes (both funded and unfunded) are assessed on the basis of the projected
unit credit method by professionally qualified actuaries and are arrived at using
actuarial assumptions based on market expectations at the balance sheet date.
| | |
| Major sources of estimation uncertainty: Discount rates The assumptions underlying the actuarial valuations (including discount rates, rates of increase in future compensation levels, mortality rates and healthcare cost trends), from which the amounts recognised in the Consolidated Financial Statements are determined, are updated annually based on current economic conditions and for any relevant changes to the terms and conditions of the pension and post-retirement plans. These assumptions can be affected by (i) for the discount rates, changes in the rates of return on high-quality corporate bonds; (ii) for future compensation levels, future labour market conditions and (iii) for healthcare cost trend rates, the rate of medical cost inflation in the relevant regions. The weighted average actuarial assumptions used and sensitivity analysis in relation to the significant assumptions employed in the determination of pension and other post-retirement liabilities are contained in note 28 to the Consolidated Financial Statements. The assumptions that are the most significant to the measurement of retirement benefit obligations are the discount rates. The discount rates employed in determining the present value of the schemes\u2019 liabilities are determined by reference to market yields at the balance sheet date on high-quality corporate bonds of a currency and term consistent with the currency and term of the associated post-employment benefit obligations. | |
* EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Group's share of equity
accounted investments' profit after tax.
| | |
| Whilst management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect the obligations and expenses recognised in future accounting periods. The assets and liabilities of defined benefit pension schemes may exhibit significant period-on-period volatility attributable primarily to changes in bond yields and longevity. In addition to future service contributions, significant cash contributions may be required to remediate past service deficits. | |
The net surplus or deficit arising on each of the Group\u2019s defined benefit
pension schemes, are shown either within non-current assets or non-
current liabilities in the Consolidated Balance Sheet. The deferred tax
impact of pension scheme surpluses and deficits is disclosed separately
within deferred tax assets or liabilities as appropriate.
Remeasurements, comprising actuarial gains and losses, the return on plan
assets (excluding net interest) and changes in the effect of the asset ceiling (if
any, excluding net interest), are recognised immediately in the Consolidated
Balance Sheet with a corresponding debit or credit to retained earnings through
other comprehensive income in the period in which they occur. Remeasurements
are not reclassified to profit or loss in subsequent periods.
The defined benefit pension asset or liability in the Consolidated Balance Sheet
comprises the total for each plan of the present value of the defined benefit
obligation less the fair value of plan assets out of which the obligations are to be
settled directly. Plan assets are assets that are held by a long-term employee
benefit fund or qualifying insurance policies. Fair value is based on market price
information and, in the case of published quoted securities, it is the published bid
price. The value of any defined benefit asset is limited to the present value of any
economic benefits available in the form of refunds from the plan and reductions
in the future contributions to the plan.
Defined benefit pension surpluses are recognised as assets to the extent that
they are considered recoverable, which is generally by way of a refund or lower
future employer contributions. Where there is no unconditional right to a refund
or reduction in future contributions, we restrict the assets of the scheme by
applying the asset ceiling test, which limits the net defined benefit surplus to the
present value of available refunds and reductions in future contributions to the
plan.
The Group\u2019s obligation in respect of post-employment healthcare and life
assurance benefits represents the amount of future benefit that employees have
earned in return for service in the current and prior periods. The obligation is
computed on the basis of the projected unit credit method and is discounted to
present value using a discount rate equating to the market yield at the balance
sheet date on high-quality corporate bonds of a currency and term consistent
with the currency and estimated term of the post employment obligations.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
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"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzNzc_0b192925-af11-46e9-888b-cb156a5174c5": {
"value": "
Provisions for liabilities \u2013 Note 26
A provision is recognised when the Group has a present obligation (either legal or
constructive) as a result of a past event, it is probable that a transfer of economic
benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation.
| | |
| Significant judgement: Judgement is required in determining whether the Group has a present obligation and whether it is probable that an outflow of economic benefits will be required to settle this obligation. This judgement is applied to information available at the time of determining the liability including but not limited to judgements around interpretations of legislation, regulations, case law and insurance contracts depending on the nature of the provision.\u00a0 | |
Where the Group anticipates that a provision will be reimbursed, the
reimbursement is recognised as a separate asset only when it is virtually certain
that the reimbursement will arise. Provisions are measured at the present value of
the expenditures expected to be required to settle the obligation.
The increase in the provision due to the passage of time is recognised as an
interest expense.
Contingent liabilities arising on business combinations are recognised as
provisions if the contingent liability can be reliably measured at its acquisition
date fair value. Provisions are not recognised for future operating losses.
Management is not aware of any potential changes to key assumptions that have
a significant risk of causing a material adjustment to the carrying value of
provisions within the next financial year; however, due to the nature of some of
our provisions, estimates may depend on the outcome of future events and need
to be revised as circumstances change in future accounting periods. Refer to
note 26 for the expected timing of outflows by provisions category.
Environmental and remediation provisions
The measurement of environmental and remediation provisions is based on an
evaluation of currently available facts with respect to each individual site and
considers factors such as existing technology, currently enacted laws and
regulations and prior experience in remediation of sites. Inherent uncertainties
exist in such evaluations primarily due to unknown conditions, changing
governmental regulations and legal standards regarding liability, the protracted
length of the clean-up periods and evolving technologies.
The environmental and remediation liabilities provided for in the Consolidated
Financial Statements reflect the judgement applied by management in respect of
information available at the time of determining the liability and are adjusted
periodically as remediation efforts progress or as additional technical or legal
information becomes available.
The impact of climate change and policy risks and uncertainties as set out on
page 142 on environmental and remediation provisions has been considered,
specifically the impact on timing and extent of costs and cash outflows. Changes
to legislation, including those relating to climate change, are factored into the
assessment of provisions when the legislation is virtually certain to be enacted.
The Group\u2019s carbon emissions reduction targets is also considered in these
judgements. The measurement of our provisions is based on reasonable and
supportable assumptions that represent management\u2019s current best estimate of
the range of economic conditions that will exist in the foreseeable future. These
assumptions do not have a significant risk of resulting in a material adjustment to
the carrying value of these provisions within the next financial year and therefore
do not represent a major source of estimation uncertainty.
Due to the inherent uncertainties described above, many of which are not under
management\u2019s control, actual costs and cash outflows could differ if
management used different assumptions or if different conditions occur in future
accounting periods.
Legal contingencies
The status of each significant claim and legal proceeding in which the Group is
involved is reviewed by management on a periodic basis and the Group\u2019s
potential financial exposure is assessed. If the potential loss from any claim or
legal proceeding is considered probable, and the amount can be reliably
estimated, a liability is recognised for the estimated loss.
Because of the uncertainties inherent in such matters, the related provisions are
based on the best information available at the time; the issues taken into account
by management and factored into the assessment of legal contingencies include,
as applicable, the status of settlement negotiations, interpretations of contractual
obligations, prior experience with similar contingencies/claims, and advice
obtained from legal counsel and other third parties. As additional information
becomes available on pending claims, the potential liability is reassessed and
revisions are made to the amounts accrued where appropriate. Such revisions in
the judgements and estimates of the potential liabilities could have an impact on
the results of operations and financial position of the Group in future accounting
periods.
Insurance provisions
Insurance provisions are subject to actuarial valuation and are based on actuarial
triangulations which are extrapolated from historical claims experience. These
provisions include claims which are classified as \u201cincurred but not reported\u201d, the
status of which are reviewed periodically by management, in conjunction with
appropriately qualified advisors. Changes in actuarial methodologies and
assumptions, along with the receipt of new information, could have an impact on
the financial position of the Group through recognition of additional, or release of,
provisions in future accounting periods.
Accounting Policies continued",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzNzg_b3640b3c-f4ff-467e-96d1-6b9d2b01685c": {
"value": "
Environmental and remediation provisions
The measurement of environmental and remediation provisions is based on an
evaluation of currently available facts with respect to each individual site and
considers factors such as existing technology, currently enacted laws and
regulations and prior experience in remediation of sites. Inherent uncertainties
exist in such evaluations primarily due to unknown conditions, changing
governmental regulations and legal standards regarding liability, the protracted
length of the clean-up periods and evolving technologies.
The environmental and remediation liabilities provided for in the Consolidated
Financial Statements reflect the judgement applied by management in respect of
information available at the time of determining the liability and are adjusted
periodically as remediation efforts progress or as additional technical or legal
information becomes available.
The impact of climate change and policy risks and uncertainties as set out on
page 142 on environmental and remediation provisions has been considered,
specifically the impact on timing and extent of costs and cash outflows. Changes
to legislation, including those relating to climate change, are factored into the
assessment of provisions when the legislation is virtually certain to be enacted.
The Group\u2019s carbon emissions reduction targets is also considered in these
judgements. The measurement of our provisions is based on reasonable and
supportable assumptions that represent management\u2019s current best estimate of
the range of economic conditions that will exist in the foreseeable future. These
assumptions do not have a significant risk of resulting in a material adjustment to
the carrying value of these provisions within the next financial year and therefore
do not represent a major source of estimation uncertainty.
Due to the inherent uncertainties described above, many of which are not under
management\u2019s control, actual costs and cash outflows could differ if
management used different assumptions or if different conditions occur in future
accounting periods.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDecommissioningRestorationAndRehabilitationProvisionsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzNzk_4d4b6c67-49de-4bc2-8a6b-08bb79b7cd75": {
"value": "
Basis of consolidation
The Consolidated Financial Statements include the financial statements of the
Parent Company and all subsidiaries drawn up to 31 December each year, and
the Group\u2019s share of the results of joint ventures and associates which are
accounted for using the equity method. The financial year-ends of the Group\u2019s
subsidiaries, joint ventures and associates are coterminous.
Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group controls
an entity when the Group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its
power over the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are deconsolidated from the date that
control ceases. A change in the ownership interest of a subsidiary without a
change in control is accounted for as an equity transaction.
When the Group holds less than the majority of voting rights, other facts and
circumstances including contractual arrangements that give the Group power
over the investee may result in the Group controlling the investee. The Group
reassesses whether it controls an investee if, and when, facts and circumstances
indicate that there are changes to the elements evidencing control.
Non-controlling interests represent the portion of the equity of a subsidiary not
attributable either directly or indirectly to the Parent Company and are presented
separately in the Consolidated Income Statement and within equity in the
Consolidated Balance Sheet, distinguished from Parent Company shareholders\u2019
equity. Acquisitions of non-controlling interests are accounted for as transactions
with equity holders in their capacity as equity holders and therefore no goodwill is
recognised as a result of such transactions. On an acquisition by acquisition
basis, the Group recognises any non-controlling interest in the acquiree either at
fair value or at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s
net assets.
Investments in associates and joint ventures \u2013 Note 15
An associate is an entity over which the Group has significant influence.
Significant influence is the power to participate in the financial and operating
policy decisions of an entity, but is not control or joint control over those policies.
A joint venture is a type of joint arrangement whereby the parties that have joint
control of the arrangement have rights to the net assets of the joint venture. Joint
control is the contractually agreed sharing of control of the arrangement, which
exists only when decisions about the relevant activities require unanimous
consent of the parties sharing control.
The Group\u2019s investments in its associates and joint ventures are accounted for
using the equity method from the date significant influence/joint control is
deemed to arise until the date on which significant influence/joint control ceases
to exist or when the interest becomes classified as an asset held for sale.
The Consolidated Income Statement reflects the Group\u2019s share of result after tax
of the related associates and joint ventures. Investments in associates and joint
ventures are carried in the Consolidated Balance Sheet at cost adjusted in
respect of post-acquisition changes in the Group\u2019s share of net assets, less any
impairment in value. Loans advanced to associates or joint ventures form part of
the net investment in the associate or joint venture held in the Consolidated
Balance Sheet. The Group applies IFRS 9 Financial Instruments, including the
impairment requirements, to these loans as the equity method does not apply. If
necessary, impairment losses on the carrying amount of an investment are
reported within the Group\u2019s share of equity accounted investments\u2019 results in the
Consolidated Income Statement. If the Group\u2019s share of losses exceeds the
carrying amount of an associate or joint venture, the carrying amount is reduced
to nil and recognition of further losses is discontinued except to the extent that
the Group has incurred obligations in respect of the associate or joint venture.
Joint operations
A joint operation is a type of joint arrangement whereby the parties that have joint
control of the arrangement have rights to the assets and obligations for the
liabilities, relating to the arrangement.
The Group\u2019s investments in its joint operations are accounted for by recognising
its assets and its liabilities, including its share of any assets or liabilities held
jointly; its share of the revenue from the sale of the output by the joint operation;
and its expenses, including its share of any expenses incurred jointly.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzODA_78c769b9-60b5-4feb-bbb8-fe7037ddadd0": {
"value": "
Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group controls
an entity when the Group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its
power over the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are deconsolidated from the date that
control ceases. A change in the ownership interest of a subsidiary without a
change in control is accounted for as an equity transaction.
When the Group holds less than the majority of voting rights, other facts and
circumstances including contractual arrangements that give the Group power
over the investee may result in the Group controlling the investee. The Group
reassesses whether it controls an investee if, and when, facts and circumstances
indicate that there are changes to the elements evidencing control.
Non-controlling interests represent the portion of the equity of a subsidiary not
attributable either directly or indirectly to the Parent Company and are presented
separately in the Consolidated Income Statement and within equity in the
Consolidated Balance Sheet, distinguished from Parent Company shareholders\u2019
equity. Acquisitions of non-controlling interests are accounted for as transactions
with equity holders in their capacity as equity holders and therefore no goodwill is
recognised as a result of such transactions. On an acquisition by acquisition
basis, the Group recognises any non-controlling interest in the acquiree either at
fair value or at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s
net assets.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzODE_46073562-010c-470e-b0d4-bd1a5074c593": {
"value": "
Investments in associates and joint ventures \u2013 Note 15
An associate is an entity over which the Group has significant influence.
Significant influence is the power to participate in the financial and operating
policy decisions of an entity, but is not control or joint control over those policies.
A joint venture is a type of joint arrangement whereby the parties that have joint
control of the arrangement have rights to the net assets of the joint venture. Joint
control is the contractually agreed sharing of control of the arrangement, which
exists only when decisions about the relevant activities require unanimous
consent of the parties sharing control.
The Group\u2019s investments in its associates and joint ventures are accounted for
using the equity method from the date significant influence/joint control is
deemed to arise until the date on which significant influence/joint control ceases
to exist or when the interest becomes classified as an asset held for sale.
The Consolidated Income Statement reflects the Group\u2019s share of result after tax
of the related associates and joint ventures. Investments in associates and joint
ventures are carried in the Consolidated Balance Sheet at cost adjusted in
respect of post-acquisition changes in the Group\u2019s share of net assets, less any
impairment in value. Loans advanced to associates or joint ventures form part of
the net investment in the associate or joint venture held in the Consolidated
Balance Sheet. The Group applies IFRS 9 Financial Instruments, including the
impairment requirements, to these loans as the equity method does not apply. If
necessary, impairment losses on the carrying amount of an investment are
reported within the Group\u2019s share of equity accounted investments\u2019 results in the
Consolidated Income Statement. If the Group\u2019s share of losses exceeds the
carrying amount of an associate or joint venture, the carrying amount is reduced
to nil and recognition of further losses is discontinued except to the extent that
the Group has incurred obligations in respect of the associate or joint venture.
Joint operations
A joint operation is a type of joint arrangement whereby the parties that have joint
control of the arrangement have rights to the assets and obligations for the
liabilities, relating to the arrangement.
The Group\u2019s investments in its joint operations are accounted for by recognising
its assets and its liabilities, including its share of any assets or liabilities held
jointly; its share of the revenue from the sale of the output by the joint operation;
and its expenses, including its share of any expenses incurred jointly.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzODI_1d9fc061-90dd-4927-b6fc-7e185420442e": {
"value": "
Investments in associates and joint ventures \u2013 Note 15
An associate is an entity over which the Group has significant influence.
Significant influence is the power to participate in the financial and operating
policy decisions of an entity, but is not control or joint control over those policies.
A joint venture is a type of joint arrangement whereby the parties that have joint
control of the arrangement have rights to the net assets of the joint venture. Joint
control is the contractually agreed sharing of control of the arrangement, which
exists only when decisions about the relevant activities require unanimous
consent of the parties sharing control.
The Group\u2019s investments in its associates and joint ventures are accounted for
using the equity method from the date significant influence/joint control is
deemed to arise until the date on which significant influence/joint control ceases
to exist or when the interest becomes classified as an asset held for sale.
The Consolidated Income Statement reflects the Group\u2019s share of result after tax
of the related associates and joint ventures. Investments in associates and joint
ventures are carried in the Consolidated Balance Sheet at cost adjusted in
respect of post-acquisition changes in the Group\u2019s share of net assets, less any
impairment in value. Loans advanced to associates or joint ventures form part of
the net investment in the associate or joint venture held in the Consolidated
Balance Sheet. The Group applies IFRS 9 Financial Instruments, including the
impairment requirements, to these loans as the equity method does not apply. If
necessary, impairment losses on the carrying amount of an investment are
reported within the Group\u2019s share of equity accounted investments\u2019 results in the
Consolidated Income Statement. If the Group\u2019s share of losses exceeds the
carrying amount of an associate or joint venture, the carrying amount is reduced
to nil and recognition of further losses is discontinued except to the extent that
the Group has incurred obligations in respect of the associate or joint venture.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzODM_a37d9377-bcd0-4d10-83fb-7d0f70884020": {
"value": "
Joint operations
A joint operation is a type of joint arrangement whereby the parties that have joint
control of the arrangement have rights to the assets and obligations for the
liabilities, relating to the arrangement.
The Group\u2019s investments in its joint operations are accounted for by recognising
its assets and its liabilities, including its share of any assets or liabilities held
jointly; its share of the revenue from the sale of the output by the joint operation;
and its expenses, including its share of any expenses incurred jointly.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzODQ_c2467924-811e-4d69-9cf8-07f6f7e78059": {
"value": "
Revenue recognition \u2013 Note 1
The Group recognises revenue in the amount of the price expected to be
received for goods and services supplied at a point in time or over time, as
contractual performance obligations are fulfilled and control of goods and
services passes to the customer. It excludes trade discounts and value-added
tax/sales tax.
Revenue derived from sale of goods (sources other than construction
contracts)
The Group manufactures and supplies a diverse range of building materials and
products. Whilst there are a number of different activities across the Group;
recognition of revenue from the sale of goods is similar; being at the point in time
when control is deemed to pass to the customer upon leaving a CRH premises
or upon delivery to a customer depending on the terms of the sale. Contracts do
not contain multiple performance obligations (as defined by IFRS 15 Revenue
from Contracts with Customers).
Across the Group, goods are often sold with discounts or rebates based on
cumulative sales over a period. This variable consideration is only recognised
when it is highly probable that it will not be subsequently reversed and is
recognised using the most likely amount or expected value methods, depending
on the individual contract terms. In the application of appropriate revenue
recognition, judgement is exercised by management in the determination of the
likelihood and quantum of such items based on experience and historical trading
patterns.
The Group is deemed to be a principal to an arrangement when it controls a
promised good or service before transferring them to a customer and
accordingly recognises revenue on a gross basis. Where the Group is
determined to be an agent to a transaction, based on the principle of control, the
net amount retained after the deduction of any costs to the principal is
recognised as revenue. Within the non-construction contract businesses no
element of financing is deemed present as transactions are all made with
average credit terms (usually 90 days), consistent with market practice.
Revenue derived from construction contracts
The Group enters into a number of construction contracts, to complete large
construction projects. Contracts usually commence and complete within one
year and are generally fixed price, but may be subject to indexation and/or
escalation clauses that can either increase or decrease the final transaction price.
The Group typically recognises revenue within its construction contract
businesses over time, as it performs its obligations. Management believe this
best reflects the transfer of control to the customer by providing a faithful
depiction of primarily the enhancement of a customer controlled asset or the
construction of an asset with no alternative use.
The percentage-of-completion method is used to recognise revenue when the
outcome of a contract can be estimated reliably. The percentage-of-completion
is calculated using an input method and based on the proportion of contract
costs incurred at the balance sheet date relative to the total estimated costs of
the contract. In all of our construction contract arrangements the Group has an
enforceable right to payment for work and performance obligations completed to
date.
Some of the Group\u2019s construction contracts may contain forms of variable
consideration that can either increase or decrease the transaction price. Variable
consideration is estimated based on the most likely amount or expected value
methods (depending on the contract terms) and the transaction price is adjusted
to the extent it is highly probable that a significant reversal of revenue recognised
will not occur.
In some instances revenue is recognised in the period subsequent to the
contracted work being completed when there is final certainty over the remaining
element of variable consideration.
Recognition of contract assets and liabilities
In our construction contract businesses, amounts are billed as work progresses
in accordance with pre-agreed contractual terms. When a performance
obligation is satisfied but a customer has not yet been billed this is recognised as
a contract asset (unbilled revenue) and included within Trade and Other
Receivables (note 17). Retentions (representing the percentage of consideration
due which is retained by the customer until certain contractual activities are
completed) are also a common feature of construction contracts and are
recognised as a contract asset within Trade and Other Receivables when we
have a right to consideration in exchange for the completion of the contract.
Retentions are consistent with industry norms and the purpose of these is not to
provide a form of financing. Apart from retentions, the Group does not have any
construction contracts where the period between the transfer of the promised
goods to the customer and payment by the customer exceeds one year. As a
consequence, the Group applies the practical expedient in IFRS 15 and does not
adjust any of its transaction prices for the time value of money.
When consideration is received in advance of work being performed, or we have
billed an amount to a customer that is in excess of revenue recognised on the
contract; this is recognised as a contract liability within Trade and Other Payables
(note 18); and the revenue is generally recognised in the subsequent period when
the right to recognise revenue has been determined. As a result, advance
payments received for construction contract arrangements are not considered a
significant form of financing.
Cumulative costs incurred, net of amounts transferred to cost of sales, after
deducting onerous provisions, provisions for contingencies and payments on
account not matched with revenue, are included as construction contract
balances in inventories (note 16). Cost includes all expenditure directly related to
specific projects and an allocation of fixed and variable overheads incurred in the
Group\u2019s contract activities based on normal operating capacity. The Group\u2019s
contracts generally are for a duration of less than one year and therefore the
Group does not capitalise incremental contract costs; instead expensing as
incurred, as permitted by the practical expedient under IFRS 15.
Onerous contracts and warranties
When a contract is identified as being onerous (i.e. its unavoidable cost exceeds
the economic benefit of the contract), a provision is created; being the lower of
costs to complete the contract and the cost of exiting the contract. The Group
recognises a provision for assurance-type (standard) warranties offered across
the Group under its terms and conditions in accordance with IAS 37 Provisions,
Contingent Liabilities and Contingent Assets. The Group provides assurance-
type warranties for general repairs and does not typically provide service-type
(extended) warranties.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzODU_3a5d3ccf-ba48-494d-8f3c-2699edf3ac48": {
"value": "
Revenue derived from construction contracts
The Group enters into a number of construction contracts, to complete large
construction projects. Contracts usually commence and complete within one
year and are generally fixed price, but may be subject to indexation and/or
escalation clauses that can either increase or decrease the final transaction price.
The Group typically recognises revenue within its construction contract
businesses over time, as it performs its obligations. Management believe this
best reflects the transfer of control to the customer by providing a faithful
depiction of primarily the enhancement of a customer controlled asset or the
construction of an asset with no alternative use.
The percentage-of-completion method is used to recognise revenue when the
outcome of a contract can be estimated reliably. The percentage-of-completion
is calculated using an input method and based on the proportion of contract
costs incurred at the balance sheet date relative to the total estimated costs of
the contract. In all of our construction contract arrangements the Group has an
enforceable right to payment for work and performance obligations completed to
date.
Some of the Group\u2019s construction contracts may contain forms of variable
consideration that can either increase or decrease the transaction price. Variable
consideration is estimated based on the most likely amount or expected value
methods (depending on the contract terms) and the transaction price is adjusted
to the extent it is highly probable that a significant reversal of revenue recognised
will not occur.
In some instances revenue is recognised in the period subsequent to the
contracted work being completed when there is final certainty over the remaining
element of variable consideration.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForConstructionInProgressExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzODY_bbf64b2e-c403-4d32-ae90-a8b39b7efeb0": {
"value": "
Segment reporting \u2013 Note 2
Operating segments are reported in a manner consistent with the internal
organisational and management structure and the internal reporting information
provided to the Chief Operating Decision Maker who is responsible for allocating
resources and assessing performance of the operating segments.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTkyNDE0NTM1NzAxMDA_565e601b-08b6-45f3-b8c2-2b38871c1701": {
"value": "
Assets and liabilities held for sale \u2013 Note 3\u00a0
Non-current assets and disposal groups classified as held for sale are measured
at the lower of carrying amount and fair value less costs to sell.
Non-current assets and disposal groups are classified as held for sale if their
carrying amounts will be recovered through a sale transaction rather than
through continuing use. This condition is regarded as met only when the sale is
highly probable and the asset or disposal group is available for immediate sale in
its present condition subject only to terms that are usual and customary for sales
of such assets. Management must be committed to the sale, which should be
expected to qualify for recognition as a completed sale within 12 months from
the date of classification as held for sale.
Property, plant and equipment and intangible assets are not depreciated or
amortised once classified as held for sale. The Group ceases to use the equity
method of accounting from the date on which an interest in a joint venture or
associate becomes held for sale. Non-current assets classified as held for sale
and liabilities directly associated with those assets are presented separately as
current items in the Consolidated Balance Sheet.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzODc_accf6e55-f001-4f6f-8116-378a8f1809cf": {
"value": "
Discontinued operations \u2013 Note 3
Discontinued operations are reported when a component of the Group, that
represents a separate major line of business or geographical area of operation,
has been disposed of, or when a sale is highly probable; its operations and cash
flows can be clearly distinguished, operationally and for financial reporting
purposes, from the rest of the Group and is classified as held for sale or has
been disposed of. The Group classifies a non-current asset or disposal group as
held for sale if its carrying value will be recovered through a sales transaction or
distribution to shareholders rather than continuing use.
In the Consolidated Income Statement, discontinued operations are excluded
from the results of continuing operations and are presented as a single amount
as profit or loss after tax from discontinued operations. Corresponding notes to
the Consolidated Income Statement exclude amounts for discontinued
operations, unless stated otherwise.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzODg_86bed1b6-0f48-497c-b8bb-100f0937f3e4": {
"value": "
Share-based payments \u2013 Note 8
The Group operates a number of equity-settled share-based payment plans.
Details of these plans, together with the nature of the underlying market and non-
market performance and other vesting conditions are outlined in note 8. The
Group has no material exposure in respect of cash-settled share-based payment
transactions and share-based payment transactions with cash alternatives.
Awards under Performance Share Plans
20% of the awards under the 2014 Performance Share Plan are subject to a TSR
(and hence market-based) vesting condition measured against a tailored sector
peer group (2020 and 2021: 25%). Accordingly, the fair value assigned to the
related equity instruments at the grant date is derived using a Monte Carlo
simulation technique to model the market-based performance conditions; and is
adjusted to reflect the anticipated likelihood as at the grant date of achieving the
vesting condition. Awards are treated as vesting irrespective of whether or not
the market condition is satisfied, provided that all other performance and/or
service conditions are satisfied.
The remaining awards granted under the 2014 Performance Share Plan are
subject to non-market-based vesting conditions; 45% are subject to a
cumulative cash flow target (2020 and 2021: 50%) and 20% are subject to a
RONA metric (2020 and 2021: 25%). In 2022 a new sustainability and diversity
scorecard metric of 15% was introduced for awards made in 2022 (a non-
market-based vesting condition). The fair value of the awards is calculated as the
market price of the shares at the date of grant. No expense is recognised for
awards that do not ultimately vest. At the balance sheet date the estimate of the
level of vesting is reviewed and any adjustment necessary is recognised in the
Consolidated Income Statement.
If awards which vest under the 2014 Performance Share Plan are allotted to an
Employee Benefit Trust, an increase in nominal share capital and share premium
are recognised accordingly on allotment.
Savings-related Share Option Scheme
The fair values assigned to options under the Savings-related Share Option
Scheme are derived in accordance with the trinomial valuation methodology on
the basis that the services to be rendered by employees as consideration for the
granting of share options will be received over the vesting period, which is
assessed as at the grant date.
The cost is recognised, together with a corresponding increase in equity, over
the period in which the performance and/or service conditions are fulfilled. The
cumulative expense recognised at each reporting date until the vesting date
reflects the extent to which the vesting period has expired and the Group\u2019s best
estimate of the number of equity instruments that will ultimately vest. The
Consolidated Income Statement expense/credit for a period represents the
movement in cumulative expense recognised at the beginning and end of that
period. The cumulative charge to the Consolidated Income Statement is reversed
only where an employee in receipt of share options leaves service prior to
completion of the expected vesting period and those options forfeit in
consequence.
Where an award is cancelled, it is treated as if it is vested on the date of
cancellation, and any expense not yet recognised for the award is recognised
immediately. This includes any award where non-vesting conditions within the
control of either the Company or the employee are not met. All cancellations of
awards are treated equally.
Accounting Policies continued
The proceeds received net of any directly attributable transaction costs are
credited to share capital (nominal value) and share premium when the options
are exercised.
The dilutive effect of outstanding options is reflected as additional share dilution
in the determination of diluted earnings per share.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzOTA_0ad2c3be-20f7-47f7-b967-d438dc333b4b": {
"value": "
Taxation \u2013 current and deferred \u2013 Notes 10 and 27
Current tax represents the expected tax payable (or recoverable) on the taxable
profit for the year using tax rates enacted for the period. Where items are
accounted for outside of profit or loss, the related income tax is recognised either
in other comprehensive income or directly in equity as appropriate.
Deferred tax is recognised using the liability method on temporary differences
arising at the balance sheet date between the tax bases of assets and liabilities
and their carrying amounts in the Consolidated Financial Statements. However,
deferred tax liabilities are not recognised if they arise from the initial recognition of
goodwill. In addition, deferred income tax is not accounted for if it arises from
initial recognition of an asset or liability in a transaction other than a business
combination that, at the time of the transaction, affects neither accounting nor
taxable profit or loss. For the most part, no provision has been made for
temporary differences applicable to investments in subsidiaries and joint ventures
as the Group is in a position to control the timing of reversal of the temporary
differences and it is probable that the temporary differences will not reverse in the
foreseeable future. However, a temporary difference has been recognised to the
extent that specific assets have been identified for sale or where there is a
specific intention to unwind the temporary difference in the foreseeable future.
Due to the absence of control in the context of associates (significant influence
only), deferred tax liabilities are recognised where appropriate in respect of
CRH\u2019s investments in these entities on the basis that the exercise of significant
influence would not necessarily prevent earnings being remitted by other
shareholders in the undertaking.
Deferred tax is determined using tax rates (and laws) that have been enacted or
substantively enacted by the balance sheet date and are expected to apply when
the related deferred income tax asset is realised or the deferred income tax
liability is settled. Deferred tax assets and liabilities are not subject to discounting.
Deferred tax assets are recognised in respect of all deductible temporary
differences, carry-forward of unused tax credits and unused tax losses to the
extent that it is probable that taxable profits will be available against which the
temporary differences can be utilised. The carrying amounts of deferred tax
assets are subject to review at each balance sheet date and are reduced to the
extent that future taxable profits are considered to be inadequate to allow all or
part of any deferred tax asset to be utilised.\u00a0
The Group\u2019s income tax charge is based on reported profit and enacted
statutory tax rates, which reflect various allowances and reliefs available to the
Group in the multiple tax jurisdictions in which it operates. The determination of
the Group\u2019s provision for income tax requires certain judgements and estimates
in relation to matters where the ultimate tax outcome may not be certain. The
recognition or non-recognition of deferred tax assets as appropriate also requires
judgement as it involves an assessment of the future recoverability of those
assets. In addition, the Group is subject to tax audits which can involve complex
issues that could require extended periods to conclude, the resolution of which is
often not within the control of the Group. Although management believes that the
estimates included in the Consolidated Financial Statements and its tax return
positions are reasonable, there is no certainty that the final outcome of these
matters will not be different than that which is reflected in the Group\u2019s historical
income tax provisions and accruals. Whilst it is possible, the Group does not
currently anticipate that any such differences could have a material impact on the
income tax provision and profit for the period in which such a determination is
made nor does it expect any significant impact on its financial position within the
next 12 months. This is based on the Group\u2019s knowledge and experience, as
well as the profile of the individual components which have been reflected in the
current tax liability, the status of the tax audits, enquiries and negotiations in
progress at each year-end, previous claims and any factors specific to the
relevant tax environments.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzOTA_614f6532-0040-4c4d-887c-dc1da1fc696c": {
"value": "
Taxation \u2013 current and deferred \u2013 Notes 10 and 27
Current tax represents the expected tax payable (or recoverable) on the taxable
profit for the year using tax rates enacted for the period. Where items are
accounted for outside of profit or loss, the related income tax is recognised either
in other comprehensive income or directly in equity as appropriate.
Deferred tax is recognised using the liability method on temporary differences
arising at the balance sheet date between the tax bases of assets and liabilities
and their carrying amounts in the Consolidated Financial Statements. However,
deferred tax liabilities are not recognised if they arise from the initial recognition of
goodwill. In addition, deferred income tax is not accounted for if it arises from
initial recognition of an asset or liability in a transaction other than a business
combination that, at the time of the transaction, affects neither accounting nor
taxable profit or loss. For the most part, no provision has been made for
temporary differences applicable to investments in subsidiaries and joint ventures
as the Group is in a position to control the timing of reversal of the temporary
differences and it is probable that the temporary differences will not reverse in the
foreseeable future. However, a temporary difference has been recognised to the
extent that specific assets have been identified for sale or where there is a
specific intention to unwind the temporary difference in the foreseeable future.
Due to the absence of control in the context of associates (significant influence
only), deferred tax liabilities are recognised where appropriate in respect of
CRH\u2019s investments in these entities on the basis that the exercise of significant
influence would not necessarily prevent earnings being remitted by other
shareholders in the undertaking.
Deferred tax is determined using tax rates (and laws) that have been enacted or
substantively enacted by the balance sheet date and are expected to apply when
the related deferred income tax asset is realised or the deferred income tax
liability is settled. Deferred tax assets and liabilities are not subject to discounting.
Deferred tax assets are recognised in respect of all deductible temporary
differences, carry-forward of unused tax credits and unused tax losses to the
extent that it is probable that taxable profits will be available against which the
temporary differences can be utilised. The carrying amounts of deferred tax
assets are subject to review at each balance sheet date and are reduced to the
extent that future taxable profits are considered to be inadequate to allow all or
part of any deferred tax asset to be utilised.\u00a0
The Group\u2019s income tax charge is based on reported profit and enacted
statutory tax rates, which reflect various allowances and reliefs available to the
Group in the multiple tax jurisdictions in which it operates. The determination of
the Group\u2019s provision for income tax requires certain judgements and estimates
in relation to matters where the ultimate tax outcome may not be certain. The
recognition or non-recognition of deferred tax assets as appropriate also requires
judgement as it involves an assessment of the future recoverability of those
assets. In addition, the Group is subject to tax audits which can involve complex
issues that could require extended periods to conclude, the resolution of which is
often not within the control of the Group. Although management believes that the
estimates included in the Consolidated Financial Statements and its tax return
positions are reasonable, there is no certainty that the final outcome of these
matters will not be different than that which is reflected in the Group\u2019s historical
income tax provisions and accruals. Whilst it is possible, the Group does not
currently anticipate that any such differences could have a material impact on the
income tax provision and profit for the period in which such a determination is
made nor does it expect any significant impact on its financial position within the
next 12 months. This is based on the Group\u2019s knowledge and experience, as
well as the profile of the individual components which have been reflected in the
current tax liability, the status of the tax audits, enquiries and negotiations in
progress at each year-end, previous claims and any factors specific to the
relevant tax environments.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzOTI_591cc748-a215-442b-bf9a-3ef980817640": {
"value": "
Business combinations \u2013 Note 30
The Group applies the acquisition method in accounting for business
combinations. The cost of an acquisition is measured as the aggregate of the
consideration transferred (excluding amounts relating to the settlement of pre-
existing relationships), the amount of any non-controlling interest in the acquiree
and, in a business combination achieved in stages, the acquisition date fair value
of the acquirer\u2019s previously-held equity interest in the acquiree. Transaction costs
that the Group incurs in connection with a business combination are expensed
as incurred.
To the extent that settlement of all or any part of consideration for a business
combination is deferred, the fair value of the deferred component is determined
through discounting the amounts payable to their present value at the date of
exchange. The discount component is unwound as an interest charge in the
Consolidated Income Statement over the life of the obligation. Any contingent
consideration is recognised at fair value at the acquisition date and included in
the cost of the acquisition. The fair value of contingent consideration at
acquisition date is arrived at through discounting the expected payment to
present value. In general, in order for contingent consideration to become
payable, pre-defined profit and/or profit/net asset ratios must be exceeded.
Subsequent changes to the fair value of the contingent consideration will be
recognised in profit or loss unless the contingent consideration is classified as
equity, in which case it is not remeasured and settlement is accounted for within
equity.
The assets and liabilities arising on business combination activity are measured at
their acquisition-date fair values. Contingent liabilities assumed in business
combination activity are recognised as of the acquisition date, where such
contingent liabilities are present obligations arising from past events and their fair
value can be measured reliably. In the case of a business combination achieved
in stages, the acquisition date fair value of the acquirer\u2019s previously-held equity
interest in the acquiree is remeasured to fair value as at the acquisition date
through profit or loss. When the initial accounting for a business combination is
determined provisionally, any adjustments to the provisional values allocated to
the consideration, identifiable assets or liabilities (and contingent liabilities, if
relevant) are made within the measurement period, a period of no more than one
year from the acquisition date.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzOTQ_a1a79a7c-e57a-435b-a63e-2507e1566117": {
"value": "
Intangible assets (other than goodwill) arising on business
combinations \u2013 Note 14
An intangible asset is capitalised separately from goodwill as part of a business
combination at cost (fair value at date of acquisition).
Subsequent to initial recognition, intangible assets are carried at cost less any
accumulated amortisation and any accumulated impairment losses. The carrying
values of definite-lived intangible assets (the Group does not currently have any
indefinite-lived intangible assets other than goodwill) are reviewed for indicators
of impairment at each reporting date and are subject to impairment testing when
events or changes in circumstances indicate that the carrying values may not be
recoverable.
Intangible assets are amortised on a straight-line basis. In general, based on the
current composition of definite-lived intangible assets, the useful lives for
customer-related intangible assets range from five to twenty years and the useful
lives for marketing related intangible assets range from ten to thirty years.
Amortisation periods, useful lives, expected patterns of consumption and residual
values are reviewed at each financial year-end. Changes in the expected useful
life or the expected pattern of consumption of future economic benefits
embodied in the asset are accounted for by changing the amortisation period or
method as appropriate on a prospective basis.
",
"dimensions": {
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"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzOTU_29bb382d-bcd8-477e-a18e-83a411bf727c": {
"value": "
Leases \u2013 Notes 13 and 20
The Group enters into leases for a range of assets, principally relating to
property. These property leases have varying terms, renewal rights and
escalation clauses, including periodic rent reviews linked with a consumer price
index and/or other indices. The Group also leases plant and machinery, vehicles
and equipment. The terms and conditions of these leases do not impose
significant financial restrictions on the Group.
A contract contains a lease if it is enforceable and conveys the right to control the
use of a specified asset for a period of time in exchange for consideration, which
is assessed at inception. A right-of-use asset and lease liability are recognised at
the commencement date for contracts containing a lease, with the exception of
leases with a term of 12 months or less which do not contain a purchase option,
leases where the underlying asset is of low value and leases with associated
payments that vary directly in line with usage or sales. The commencement date
is the date at which the asset is made available for use by the Group.
The lease liability is initially measured at the present value of the future lease
payments, discounted using the incremental borrowing rate or the interest rate
implicit in the lease, if this is readily determinable, over the remaining lease term.
Lease payments include fixed payments less any lease incentives receivable,
variable payments that are dependent on a rate or index known at the
commencement date, amounts expected to be paid under residual value
guarantees and any payments for an optional renewal period and purchase and
termination option payments, if the Group is reasonably certain to exercise those
options. The lease term is the non-cancellable period of the lease adjusted for
any renewal or termination options which are reasonably certain to be exercised.
Variable lease payments that do not depend on an index or a rate and rentals
relating to low value or short-term leases are recognised as an expense in the
period in which they are incurred. Management applies judgement in determining
whether it is reasonably certain that a renewal, termination or purchase option
will be exercised.
Incremental borrowing rates are calculated using a portfolio approach, based on
the risk profile of the entity holding the lease and the term and currency of the
lease.
After initial recognition, the lease liability is measured at amortised cost using the
effective interest method. It is remeasured when there is a change in future lease
payments or when the Group changes its assessment of whether it is reasonably
certain to exercise an option within the contract. A corresponding adjustment is
made to the carrying amount of the right-of-use asset.
The right-of-use asset is initially measured at cost, which comprises the lease
liability adjusted for any payments made at or before the commencement date,
initial direct costs incurred, lease incentives received and an estimate of the cost
to dismantle or restore the underlying asset or the site on which it is located at
the end of the lease term. The right-of-use asset is depreciated over the lease
term or, where a purchase option is reasonably certain to be exercised, over the
useful economic life of the asset in line with depreciation rates for owned
property, plant and equipment. The right-of-use asset is tested periodically for
impairment if an impairment indicator is considered to exist.
Non-lease components in a contract such as maintenance and other service
charges are separated from lease payments and are expensed as incurred.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzOTY_8df400b3-ceec-4033-bbec-669d3410d9ce": {
"value": "
Inventories \u2013 Note 16
Inventories are stated at the lower of cost and net realisable value. Cost is based
on the first-in/first-out principle (and weighted average, where appropriate) and
includes all expenditure incurred in acquiring the inventories and bringing them to
their present location and condition. Raw materials are valued on the basis of
purchase cost on a first-in/first-out basis. In the case of finished goods and work-
in-progress, cost includes direct materials, direct labour and attributable
overheads based on normal operating capacity and excludes borrowing costs.
Net realisable value is the estimated proceeds of sale less all further costs to
completion, and less all costs to be incurred in marketing, selling and distribution.
Estimates of net realisable value are based on the most reliable evidence
available at the time the estimates are made, taking into consideration
fluctuations of price or cost directly relating to events occurring after the end of
the period, the likelihood of short-term changes in buyer preferences, product
obsolescence or perishability (all of which are generally low given the nature of
the Group\u2019s products) and the purpose for which the inventory is held.
Climate change and policy risks and uncertainties as set out on page 142 may
also result in additional costs, changes to selling prices or product obsolescence
impacting the valuation of inventories in future years. However, due to the short
inventory turnover cycle there were no material write-downs of inventories
required in this regard during the current financial year.
Materials and other supplies held for use in the production of inventories are not
written down below cost if the finished goods, in which they will be incorporated,
are expected to be sold at or above cost.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzOTc_64f63b01-b403-4112-9079-4be61b7da9a0": {
"value": "
Trade and other receivables \u2013 Note 17
The classification of financial assets depends on the Group\u2019s business model for
managing the financial assets and the contractual terms of the cash flows.
The Group\u2019s principal financial assets are its trade and other receivables
(including contract assets). Trade and other receivables are recognised when the
Group becomes a party to the contract and has a legal right to receive cash.
Trade receivables (including contract assets) are carried at original invoice
amount, which is equivalent to amortised cost, less an expected credit loss
provision.
The Group assesses on a forward looking basis the expected credit losses
associated with trade and other receivables at each balance sheet date. The
expected credit loss is estimated as the difference between the asset\u2019s carrying
amount and the present value of the future cash flows the Group expects to
receive. Where the present value of such cash flows is lower than the carrying
value, the carrying value of the asset is adjusted, with the impairment gain or loss
recognised in the Consolidated Income Statement.
Further detail on the Group's methodology for providing for expected credit
losses is provided in note 17.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjYzOTg_a9bfc1c8-ed84-443e-ba19-c5849cd57c00": {
"value": "
Cash and cash equivalents \u2013 Note 23
Cash and cash equivalents comprise cash balances held for the purpose of
meeting short-term cash commitments and investments which are readily
convertible to a known amount of cash and are subject to an insignificant risk of
change in value. Cash and cash equivalents are classified as financial assets
measured at amortised cost or, in the case of certain money market deposits,
fair value through profit or loss.
Bank overdrafts are included within current interest-bearing loans and
borrowings in the Consolidated Balance Sheet. Where the overdrafts are
repayable on demand and form an integral part of cash management, they are
netted against cash and cash equivalents for the purposes of the Consolidated
Statement of Cash Flows.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
Interest-bearing loans and borrowings \u2013 Note 24
All loans and borrowings are initially recorded at the fair value of the
consideration received net of directly attributable transaction costs. The
computation of amortised cost includes any issue costs and any discount or
premium materialising on settlement. Subsequent to initial recognition, current
and non-current interest-bearing loans and borrowings are, in general, measured
at amortised cost employing the effective interest methodology. Fixed rate loans
and borrowings, which have been hedged to floating rates (using interest rate
swaps), are measured at amortised cost adjusted for changes in value
attributable to the hedged risks arising from changes in underlying market
interest rates.
Borrowing costs arising on financial instruments are recognised as an expense in
the period in which they are incurred (unless capitalised as part of the cost of
property, plant and equipment).
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
Derivative financial instruments and hedging practices \u2013
Note 25
In order to manage interest rate, foreign currency and commodity risks and to
realise the desired currency profile of borrowings, the Group employs derivative
financial instruments (principally interest rate swaps, currency forwards and
currency swaps). Derivative financial instruments are recognised initially at fair
value on the date on which a derivative contract is entered into and are
subsequently remeasured at fair value. The carrying value of derivatives is fair
value based on discounted future cash flows and adjusted for counterparty risk.
Future floating rate cash flows are estimated based on future interest rates (from
observable yield curves at the end of the reporting period). Fixed and floating rate
cash flows are discounted at future interest rates and translated at period-end
foreign exchange rates. Short dated forward foreign exchange contracts are
used to hedge the forward foreign exchange risk on currency exposures. The
forward price elements to these contracts are excluded from the hedge.
At the inception of a derivative transaction, the Group documents the relationship
between the hedged item and the hedging instrument together with its risk
management objective and the strategy underlying the proposed transaction.
The Group also documents its assessment, both at the inception of the hedging
relationship and subsequently on an ongoing basis, of the effectiveness of the
hedging instrument in offsetting movements in the fair values or cash flows of the
hedged items. Where derivatives do not fulfil the criteria for hedge accounting,
changes in fair values are reported in the Consolidated Income Statement and
Consolidated Balance Sheet.
Fair value and cash flow hedges
The Group uses fair value hedges and cash flow hedges in its treasury activities.
For the purposes of hedge accounting, hedges are classified either as fair value
hedges (which entail hedging the exposure to movements in the fair value of a
recognised asset or liability or an unrecognised firm commitment that could affect
profit or loss) or cash flow hedges (which hedge exposure to fluctuations in future
cash flows derived from a particular risk associated with a recognised asset or
liability, or a highly probable forecast transaction that could affect profit or loss).
Where the conditions for hedge accounting are satisfied and the hedging
instrument concerned is classified as a fair value hedge, any gain or loss
stemming from the remeasurement of the hedging instrument to fair value is
reported in the Consolidated Income Statement. In addition, any gain or loss on
the hedged item which is attributable to the hedged risk is adjusted against the
carrying amount of the hedged item and reflected in the Consolidated Income
Statement. Where the adjustment is to the carrying amount of a hedged interest-
bearing financial instrument, the adjustment is amortised to the Consolidated
Income Statement with the objective of achieving full amortisation by maturity.
Where a derivative financial instrument is designated as a hedge of the variability
in cash flows of a recognised asset or liability or a highly probable forecast
transaction that could affect profit or loss, the effective part of any gain or loss on
the derivative financial instrument is recognised as other comprehensive income,
net of the income tax effect, with the ineffective portion being reported in the
Consolidated Income Statement. The associated gains or losses that had
previously been recognised as other comprehensive income are transferred to
the Consolidated Income Statement contemporaneously with the materialisation
of the hedged transaction.
Hedge accounting is discontinued when the hedging instrument expires or is
sold, terminated or exercised or no longer qualifies for hedge accounting. At that
point in time, any cumulative gain or loss on the hedging instrument recognised
as other comprehensive income remains there until the forecast transaction
occurs. If a hedged transaction is no longer anticipated to occur, the net
cumulative gain or loss previously recognised as other comprehensive income is
transferred to the Consolidated Income Statement in the period.
Net investment hedges
Where foreign currency swaps provide a hedge against a net investment in a
foreign operation, and the hedge is deemed to be effective, foreign exchange
differences are taken directly to a foreign currency translation reserve. The
ineffective portion of any gain or loss on the hedging instrument is recognised
immediately in the Consolidated Income Statement. Cumulative gains and losses
remain in equity until disposal of the net investment in the foreign operation at
which point the related differences are transferred to the Consolidated Income
Statement as part of the overall gain or loss on sale.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
In order to manage interest rate, foreign currency and commodity risks and to
realise the desired currency profile of borrowings, the Group employs derivative
financial instruments (principally interest rate swaps, currency forwards and
currency swaps). Derivative financial instruments are recognised initially at fair
value on the date on which a derivative contract is entered into and are
subsequently remeasured at fair value. The carrying value of derivatives is fair
value based on discounted future cash flows and adjusted for counterparty risk.
Future floating rate cash flows are estimated based on future interest rates (from
observable yield curves at the end of the reporting period). Fixed and floating rate
cash flows are discounted at future interest rates and translated at period-end
foreign exchange rates. Short dated forward foreign exchange contracts are
used to hedge the forward foreign exchange risk on currency exposures. The
forward price elements to these contracts are excluded from the hedge.
At the inception of a derivative transaction, the Group documents the relationship
between the hedged item and the hedging instrument together with its risk
management objective and the strategy underlying the proposed transaction.
The Group also documents its assessment, both at the inception of the hedging
relationship and subsequently on an ongoing basis, of the effectiveness of the
hedging instrument in offsetting movements in the fair values or cash flows of the
hedged items. Where derivatives do not fulfil the criteria for hedge accounting,
changes in fair values are reported in the Consolidated Income Statement and
Consolidated Balance Sheet.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
Fair value and cash flow hedges
The Group uses fair value hedges and cash flow hedges in its treasury activities.
For the purposes of hedge accounting, hedges are classified either as fair value
hedges (which entail hedging the exposure to movements in the fair value of a
recognised asset or liability or an unrecognised firm commitment that could affect
profit or loss) or cash flow hedges (which hedge exposure to fluctuations in future
cash flows derived from a particular risk associated with a recognised asset or
liability, or a highly probable forecast transaction that could affect profit or loss).
Where the conditions for hedge accounting are satisfied and the hedging
instrument concerned is classified as a fair value hedge, any gain or loss
stemming from the remeasurement of the hedging instrument to fair value is
reported in the Consolidated Income Statement. In addition, any gain or loss on
the hedged item which is attributable to the hedged risk is adjusted against the
carrying amount of the hedged item and reflected in the Consolidated Income
Statement. Where the adjustment is to the carrying amount of a hedged interest-
bearing financial instrument, the adjustment is amortised to the Consolidated
Income Statement with the objective of achieving full amortisation by maturity.
Where a derivative financial instrument is designated as a hedge of the variability
in cash flows of a recognised asset or liability or a highly probable forecast
transaction that could affect profit or loss, the effective part of any gain or loss on
the derivative financial instrument is recognised as other comprehensive income,
net of the income tax effect, with the ineffective portion being reported in the
Consolidated Income Statement. The associated gains or losses that had
previously been recognised as other comprehensive income are transferred to
the Consolidated Income Statement contemporaneously with the materialisation
of the hedged transaction.
Hedge accounting is discontinued when the hedging instrument expires or is
sold, terminated or exercised or no longer qualifies for hedge accounting. At that
point in time, any cumulative gain or loss on the hedging instrument recognised
as other comprehensive income remains there until the forecast transaction
occurs. If a hedged transaction is no longer anticipated to occur, the net
cumulative gain or loss previously recognised as other comprehensive income is
transferred to the Consolidated Income Statement in the period.
Net investment hedges
Where foreign currency swaps provide a hedge against a net investment in a
foreign operation, and the hedge is deemed to be effective, foreign exchange
differences are taken directly to a foreign currency translation reserve. The
ineffective portion of any gain or loss on the hedging instrument is recognised
immediately in the Consolidated Income Statement. Cumulative gains and losses
remain in equity until disposal of the net investment in the foreign operation at
which point the related differences are transferred to the Consolidated Income
Statement as part of the overall gain or loss on sale.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
Share capital and dividends \u2013 Notes 29 and 11
Treasury Shares and own shares
Ordinary Shares acquired by the Parent Company through the share buyback
programme (Treasury Shares) or purchased by the Employee Benefit Trust on
behalf of the Parent Company under the terms of the Performance Share Plans
and the Restricted Share Plan (own shares) are deducted from equity and
presented on the face of the Consolidated Balance Sheet. No gain or loss is
recognised in profit or loss on the purchase, sale, issue or cancellation of the
Parent Company\u2019s Ordinary Shares. A financial liability is recorded if a contractual
obligation to repurchase shares exists at the balance sheet date.
Dividends
Dividends on Ordinary Shares are recognised as a liability in the Consolidated
Financial Statements in the period in which they are declared by the Parent
Company and approved by shareholders in respect of final dividends.
Other Reserves
Other Reserves primarily comprise reserves relating to the Group\u2019s share-based
payments expense.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
Dividends
Dividends on Ordinary Shares are recognised as a liability in the Consolidated
Financial Statements in the period in which they are declared by the Parent
Company and approved by shareholders in respect of final dividends.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTYzNy9mcmFnOmI1YjBlMTIyMTdhMDQ1ZTg5ZDRlMTc5YTc1YzY5ZDRiL3RleHRyZWdpb246YjViMGUxMjIxN2EwNDVlODlkNGUxNzlhNzVjNjlkNGJfMTk3OTEyMDkzNjY0MDU_35c1078e-bd53-4880-a55b-ab930ed04019": {
"value": "
Foreign currency translation
Items included in the financial statements of each of the Group\u2019s entities are
measured using the currency of the primary economic environment in which the
entity operates (the functional currency). The Consolidated Financial Statements
are presented in US Dollar, which is the presentation currency of the Group. The
functional currency of the Parent Company is euro.
Transactions in foreign currencies are recorded at the rate of exchange in effect
at the date of the transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the rate of exchange in effect at the balance
sheet date. All currency translation differences are taken to the Consolidated
Income Statement with the exception of all monetary items that provide an
effective hedge for a net investment in a foreign operation. These are recognised
in other comprehensive income until the disposal of the net investment, at which
time they are recognised in the Consolidated Income Statement.
Results and cash flows of subsidiaries, joint ventures and associates with non-
US Dollar functional currencies have been translated into US Dollar at average
exchange rates for the year, and the related balance sheets have been translated
at the rates of exchange in effect at the balance sheet date. Adjustments arising
on translation of the results and net assets of non-US Dollar subsidiaries, joint
ventures, associates and joint operations are recognised in a separate translation
reserve within equity, net of differences on related currency borrowings. All other
translation differences are taken to the Consolidated Income Statement. Goodwill
and fair value adjustments arising on acquisition of a foreign operation are
regarded as assets and liabilities of the foreign operation and are translated
accordingly.
Accounting Policies continued
The principal exchange rates used for the translation of results, cash flows and balance sheets into US Dollar were as follows:
unique offering of materials, products and value-added services helps to deliver a
more resilient and sustainable built environment.
The Group has three operating segments (as identified under IFRS 8 Operating
Segments) generating revenue through the following activities:
Our Americas Materials businesses provide solutions for the construction and
RMI of public infrastructure, homes and commercial buildings across North
America. Our businesses in the US and Canada utilise an extensive network of
reserve backed quarry locations, to provide asphalt paving services and to
produce and supply a range of materials including cement, aggregates,
readymixed concrete and asphalt. This segment also includes the Group\u2019s
cement operations in Brazil, which was divested in April 2021.
Our Building Products segment manufactures, supplies and delivers high quality,
value-added innovative products and solutions to shape and enhance the built
environment for modern communities. This includes Architectural Products,
Infrastructure Products and Construction Accessories. This is a global business
operating in attractive construction markets in major economies in North
America, Europe and Asia. The divestment of our Building Envelope business,
formerly part of the Building Products segment, was completed in April 2022. As
a result, it has been classified as discontinued operations in the current year; its
performance in this year and comparative years is therefore part of discontinued
operations.
Our Europe Materials businesses provides solutions for the construction of
public infrastructure, homes and commercial buildings to customers in
construction markets across 19 countries in Europe and 2 countries in Asia. An
extensive network of quarry and production locations adjacent to attractive local
construction markets produce cement, lime, aggregates, asphalt, readymixed
concrete and concrete products, as well as providing paving and construction
services.
A. Disaggregated revenue
In the following tables, revenue is disaggregated by primary geographic market
and by principal activities and products. Due to the diversified nature of the
Group, the basis on which management reviews its businesses varies across the
Group. Geography is the primary basis for the Americas Materials and Europe
Materials businesses; while activities and products are used for the Building
Products businesses.
Revenue from external customers (as defined in IFRS 8) attributable to the
country of domicile and all foreign countries of operation greater than 10% are
included below. Further operating segment disclosures are set out in note 2.
| | | | | | | | | | | | | | |
| |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Primary geographic markets | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Republic of Ireland (country of domicile) | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total Group from continuing operations | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
United Kingdom - Building Envelope | | | | | | | | | | | | | | |
Rest of Europe (i) - Building Envelope | | | | | | | | | | | | | | |
United States - Building Envelope | | | | | | | | | | | | | | |
Rest of World (ii) - Building Envelope | | | | | | | | | | | | | | |
Total Group from discontinued operations | | | | | | | | | | | | | | |
(iii)\u00a0 Americas Materials and Europe Materials both operate vertically integrated businesses, which are founded in resource-backed cement and aggregates assets and
which support the manufacture and supply of aggregates, asphalt, cement, readymixed and precast concrete and landscaping products. Accordingly, for the
purpose of disaggregation of revenue we have included certain products together, as this is how management reviews and evaluates this business line.
There are no material dependencies or concentrations of individual customers
which would warrant disclosure under IFRS 8. The individual entities within the
Group have a large number of customers spread across various activities, end-
uses and geographies.
Revenue derived through the supply of services and intersegment revenue are
not material to the Group. The transfer pricing policy implemented by the Group
between operating segments and across its constituent entities is described in
note 32. In addition, due to the nature of building materials, which have a low
value-to-weight ratio, the Group\u2019s revenue streams include a low level of cross-
border transactions.
B. Contract balances
For information on the Group\u2019s construction contract balances, including
movements during the year, refer to notes 16, 17 and 18. Movements in our net
contract balances are not considered significant and are primarily driven by the
timing of billing work-in-progress within our construction contract businesses.
C. Unsatisfied long-term construction contracts and other performance
obligations
Revenue yet to be recognised from long-term construction contracts, primarily
within our Americas Materials and Europe Materials businesses, amounted to
$3,742 million at 31\u00a0December 2022 (2021: $3,177 million; 2020: $2,604 million).
The Group has applied the practical expedient set out in IFRS 15 Revenue from
Contracts with Customers whereby revenue yet to be recognised on contracts
that had an original expected duration of less than one year is not disclosed. The
majority of open contracts at 31\u00a0December 2022 will close and revenue will be
recognised within 12 months of the balance sheet date.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl85NTk5L2ZyYWc6OGIwNzgxMTAxN2NkNDJkODlhM2RmODZiMjlhZjYxZTcvdGV4dHJlZ2lvbjo4YjA3ODExMDE3Y2Q0MmQ4OWEzZGY4NmIyOWFmNjFlN18xOTI0MTQ1MzQ5NDI0OA_e2cef63f-6f61-49e8-a2fb-c988e32c5ca6": {
"value": "
B. Contract balances
For information on the Group\u2019s construction contract balances, including
movements during the year, refer to notes 16, 17 and 18. Movements in our net
contract balances are not considered significant and are primarily driven by the
timing of billing work-in-progress within our construction contract businesses.
C. Unsatisfied long-term construction contracts and other performance
obligations
Revenue yet to be recognised from long-term construction contracts, primarily
within our Americas Materials and Europe Materials businesses, amounted to
$3,742 million at 31\u00a0December 2022 (2021: $3,177 million; 2020: $2,604 million).
The Group has applied the practical expedient set out in IFRS 15 Revenue from
Contracts with Customers whereby revenue yet to be recognised on contracts
that had an original expected duration of less than one year is not disclosed. The
majority of open contracts at 31\u00a0December 2022 will close and revenue will be
recognised within 12 months of the balance sheet date.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xNTEvZnJhZzpiZjY3ZGQwYWIzOTY0MjhmYjdmNWYzZjIyMDM5YTg5YS90ZXh0cmVnaW9uOmJmNjdkZDBhYjM5NjQyOGZiN2Y1ZjNmMjIwMzlhODlhXzE5MjQxNDUzNTQ2ODQ3_3773666d-2185-4bef-b782-3ba20a2c3267": {
"value": "
2. Segment Information
As outlined in note 1, the Group has three operating segments. The segments
reflect the Group\u2019s organisational structure in 2022 and the nature of the financial
information reported to and assessed by the Group Chief Executive, Chief
Financial Officer and Chief Operating Officer, who are together determined to fulfil
the role of Chief Operating Decision Maker (as defined in IFRS 8).
Effective 1 January 2022, following the appointment of the Chief Operating
Officer and a resultant change in the reporting line of the \u201csegment managers\u201d as
outlined in IFRS 8, the Group has determined that the Group Chief Executive,
Chief Financial Officer and Chief Operating Officer (formerly the Group Chief
Executive and Chief Financial Officer) together fulfil the role of Chief Operating
Decision Maker (as defined in IFRS 8). This did not result in any change to the
Group\u2019s operating segments. No operating segments have been aggregated to
form these reportable segments.
Effective 1 January 2023 the Group restructured into two Divisions, CRH
Americas and CRH Europe. During the first quarter of 2023, the Group's
reportable segments increased from three to the following four segments:
Americas Materials Solutions, Americas Building Solutions, Europe Materials
Solutions and Europe Building Solutions. This realignment reflects the way
resources are allocated and performance is assessed by the Chief Operating
Decision Maker.
In the Group's financial reporting for 2023 comparative information for 2021 and
2022 will be restated to reflect the changes in reportable segments. Segmental
information presented in these financial statements is based on the segment
structure as at 31 December 2022 being Americas Materials, Building Products
and Europe Materials.
The change in segment reporting post year end does not have a financial impact
on the Group's Consolidated Financial Statements.
The principal factors employed in the identification of the three segments
reflected in this note include:
\u2022the Group\u2019s organisational structure in 2022 (during 2022 each divisional
President fulfilled the role of \u201csegment manager\u201d as outlined in IFRS 8);
\u2022the nature of the reporting lines to the Chief Operating Decision Maker (as
defined in IFRS 8);
\u2022the structure of internal reporting documentation such as management
accounts and budgets; and
\u2022the degree of homogeneity of products and services within each of the
segments from which revenue is derived
The Chief Operating Decision Maker monitors the operating results of segments
separately in order to allocate resources between segments and to assess
performance. Segment performance is evaluated using EBITDA (as defined)*.
Given that net finance costs and income tax are managed on a centralised basis,
these items are not allocated between operating segments for the purposes of
the information presented to the Chief Operating Decision Maker and are
accordingly omitted from the detailed segmental analysis below. There are no
asymmetrical allocations to reporting segments which would require disclosure.
A. Operating segments disclosures\u2014Consolidated Income Statement data
| | | | | | | |
| |
| | | |
| | | | | | | |
| | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total Group from continuing operations | | | | | | | |
| | | | | | | |
Building Products - Building Envelope | | | | | | | |
Total Group from discontinued operations | | | | | | | |
| | | | | | | |
| | | | | | | |
Depreciation, amortisation and impairment (i) | | | | | | | |
| | | | | | | |
(Loss)/profit on disposals (ii) | | | | | | | |
Finance costs less income | | | | | | | |
| | | | | | | |
Share of equity accounted investments\u2019 profit/(loss) (iii) | | | | | | | |
Profit before tax from continuing operations | | | | | | | |
accounted investments' profit after tax.
2. Segment Information continued
B. Operating segments disclosures - Consolidated Balance Sheet data
| | | | | |
| |
| | | | | |
| \u00a0 \u00a0 \u00a0 Total assets | | \u00a0 \u00a0 \u00a0 Total liabilities |
| | | | | |
| | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Reconciliation to total assets as reported in the Consolidated Balance Sheet: | | | | | |
Investments accounted for using the equity method | | | | | |
| | | | | |
Derivative financial instruments (current and non-current) | | | | | |
Income tax assets (current and deferred) | | | | | |
Cash and cash equivalents | | | | | |
Total assets as reported in the Consolidated Balance Sheet | | | | | |
| | | | | |
Reconciliation to total liabilities as reported in the Consolidated Balance Sheet: | | | | | |
Interest-bearing loans and borrowings (current and non-current) | | | | | |
Derivative financial instruments (current and non-current) | | | | | |
Income tax liabilities (current and deferred) | | | | | |
Total liabilities as reported in the Consolidated Balance Sheet | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xNTEvZnJhZzpiZjY3ZGQwYWIzOTY0MjhmYjdmNWYzZjIyMDM5YTg5YS90ZXh0cmVnaW9uOmJmNjdkZDBhYjM5NjQyOGZiN2Y1ZjNmMjIwMzlhODlhXzE5MjQxNDUzNTQ2ODQ4_81a971cb-f065-4a83-8bee-9c88832e8cc9": {
"value": "
3. Assets Held for Sale and Discontinued Operations
A. Profit on disposal of discontinued operations
In April 2022, the Group completed the divestment of its Building Envelope business, formerly part of our Building Products segment. With the exception of our Building
Envelope business, no other businesses divested during 2022 are considered to be either separate major lines of business or geographical areas of operation and
therefore do not constitute discontinued operations as defined in IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations.
No businesses met the IFRS 5 held for sale criteria at 31 December 2022.
The table below sets out the proceeds and related profit recognised on divestment which were included in profit after tax for the financial year from discontinued
operations.
| |
| |
| |
Assets/(liabilities) disposed of at net carrying amount: | |
| |
- cash and cash equivalents | |
- inventories, receivables, payables and provisions | |
| |
- interest-bearing loans and borrowings | |
| |
- retirement benefit obligations | |
| |
Reclassification of currency translation effects on disposal | |
| |
Proceeds from disposal (net of disposal costs) | |
Profit on disposal from discontinued operations | |
Net cash inflow arising on disposal | |
Proceeds from disposal from discontinued operations | |
Less: cash and cash equivalents disposed | |
| |
(i)\u00a0 \u00a0 The depreciation and amortisation charge for discontinued operations amounted to $26 million and $10 million respectively (2021: $78 million and $28 million;
2020: $74 million and $26 million).
(ii)\u00a0 2022 attributable income tax expense includes $347 million relating to the profit on disposal of discontinued operations.\u00a0
(iii)\u00a0 Includes the corporation tax paid on the sale of discontinued operations.\u00a0
(iv)\u00a0 Includes the proceeds from the disposal of discontinued operations.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xNTEvZnJhZzpiZjY3ZGQwYWIzOTY0MjhmYjdmNWYzZjIyMDM5YTg5YS90ZXh0cmVnaW9uOmJmNjdkZDBhYjM5NjQyOGZiN2Y1ZjNmMjIwMzlhODlhXzE5MjQxNDUzNTQ2ODQ5_99920569-50d6-49bf-bf87-0fc3f57af75a": {
"value": "
A. Profit on disposal of discontinued operations
In April 2022, the Group completed the divestment of its Building Envelope business, formerly part of our Building Products segment. With the exception of our Building
Envelope business, no other businesses divested during 2022 are considered to be either separate major lines of business or geographical areas of operation and
therefore do not constitute discontinued operations as defined in IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations.
No businesses met the IFRS 5 held for sale criteria at 31 December 2022.
The table below sets out the proceeds and related profit recognised on divestment which were included in profit after tax for the financial year from discontinued
operations.
| |
| |
| |
Assets/(liabilities) disposed of at net carrying amount: | |
| |
- cash and cash equivalents | |
- inventories, receivables, payables and provisions | |
| |
- interest-bearing loans and borrowings | |
| |
- retirement benefit obligations | |
| |
Reclassification of currency translation effects on disposal | |
| |
Proceeds from disposal (net of disposal costs) | |
Profit on disposal from discontinued operations | |
Net cash inflow arising on disposal | |
Proceeds from disposal from discontinued operations | |
Less: cash and cash equivalents disposed | |
| |
(i)\u00a0 \u00a0 The depreciation and amortisation charge for discontinued operations amounted to $26 million and $10 million respectively (2021: $78 million and $28 million;
2020: $74 million and $26 million).
(ii)\u00a0 2022 attributable income tax expense includes $347 million relating to the profit on disposal of discontinued operations.\u00a0
(iii)\u00a0 Includes the corporation tax paid on the sale of discontinued operations.\u00a0
(iv)\u00a0 Includes the proceeds from the disposal of discontinued operations.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNzM2L2ZyYWc6ZmM1NzE1YjFjOGNjNGVmMTk5YTgzNjA1YTg3YWFkZWUvdGV4dHJlZ2lvbjpmYzU3MTViMWM4Y2M0ZWYxOTlhODM2MDVhODdhYWRlZV8xOTI0MTQ1MzQ5MzM4NA_55adcd5e-fb83-48ec-9c92-62dd2bef663f": {
"value": "
4. Cost Analysis
Continuing operations
| | | |
| | | |
| | |
| | | |
Raw materials and goods for resale | | | |
Employment costs (note 7) | | | |
| | | |
| | | |
Depreciation, amortisation and impairment (i) | | | |
| | | |
Other production expenses (primarily sub-contractor costs) | | | |
| | | |
| | | |
| | | |
Selling and distribution costs | | | |
| | | |
| | | |
(ii)\u00a0 Total impairment charges for the year ended 31\u00a0December 2022 amounted to $nil million (2021: $nil million, 2020: $827 million, including a charge of
$154 million related to equity accounted investments).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCostOfSalesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNzM2L2ZyYWc6ZmM1NzE1YjFjOGNjNGVmMTk5YTgzNjA1YTg3YWFkZWUvdGV4dHJlZ2lvbjpmYzU3MTViMWM4Y2M0ZWYxOTlhODM2MDVhODdhYWRlZV8xOTI0MTQ1MzQ5MzM4NA_dc11a3a0-4c2b-4a64-8bbd-4c0147864b75": {
"value": "
4. Cost Analysis
Continuing operations
| | | |
| | | |
| | |
| | | |
Raw materials and goods for resale | | | |
Employment costs (note 7) | | | |
| | | |
| | | |
Depreciation, amortisation and impairment (i) | | | |
| | | |
Other production expenses (primarily sub-contractor costs) | | | |
| | | |
| | | |
| | | |
Selling and distribution costs | | | |
| | | |
| | | |
(ii)\u00a0 Total impairment charges for the year ended 31\u00a0December 2022 amounted to $nil million (2021: $nil million, 2020: $827 million, including a charge of
$154 million related to equity accounted investments).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNzM2L2ZyYWc6ZmM1NzE1YjFjOGNjNGVmMTk5YTgzNjA1YTg3YWFkZWUvdGV4dHJlZ2lvbjpmYzU3MTViMWM4Y2M0ZWYxOTlhODM2MDVhODdhYWRlZV8xOTI0MTQ1MzQ5MzM4Ng_89c2ea91-3f85-4816-b9b1-f77f3744ac23": {
"value": "
(i)\u00a0 Depreciation, amortisation and impairment analysis
| | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Depreciation and depletion (note 13, 20) | | | | | | | | | | | |
Amortisation of intangible assets (note 14) | | | | | | | | | | | |
Impairment of property, plant and equipment (note 13, 20) (ii) | | | | | | | | | | | |
Impairment of intangible assets (note 14) (ii) | | | | | | | | | | | |
| | | | | | | | | | | |
(ii)\u00a0 Total impairment charges for the year ended 31\u00a0December 2022 amounted to $nil million (2021: $nil million, 2020: $827 million, including a charge of
$154 million related to equity accounted investments).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNzUzL2ZyYWc6YjE3ODc5OTg0MDVmNDU4ZDlkZGZiYmQ3ZWFiYTY2ODgvdGV4dHJlZ2lvbjpiMTc4Nzk5ODQwNWY0NThkOWRkZmJiZDdlYWJhNjY4OF8xOTI0MTQ1MzQ5NDkyMg_d3994d27-6248-4494-a154-c63ec09344f9": {
"value": "
5. Auditor\u2019s Remuneration
Continuing operations
In accordance with statutory requirements in Ireland, fees for professional services provided by the Group\u2019s independent auditor in respect of each of the following
categories were:
| | | | | | | | | | | |
| | | | | |
| | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Other audit-related assurance fees (ii) | | | | | | | | | | | |
Tax advisory services (ii) | | | | | | | | | | | |
| | | | | | | | | | | |
(i)\u00a0 Audit of the Group accounts includes the audit of internal control over financial reporting and parent and subsidiary statutory audit fees, but excludes $2 million
(2021: $3 million; 2020: $3 million) paid to auditors other than Deloitte.
(ii)\u00a0 In accordance with the Companies Act 2014, audit fees including discontinued operations, amounted to $22 million (2021: $21 million; 2020: $18 million). Other
audit-related assurance fees, including discontinued operations, amounted to $1 million (2021: $1 million; 2020: $nil million) and tax advisory services, including
discontinued operations, amounted to $nil million (2021: $nil million; 2020: $nil million).
There were no other fees for services provided by the Group\u2019s independent auditor (2021: $nil million; 2020: $nil million).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xNzIvZnJhZzpiZWI5NmI0YTA0NDY0YzE2YmRiODA4ZDJkYzYwNjNiOC90ZXh0cmVnaW9uOmJlYjk2YjRhMDQ0NjRjMTZiZGI4MDhkMmRjNjA2M2I4XzE5MjQxNDUzNDg3MTg5_4a3e8a90-8ae0-4275-b788-a2eb461539aa": {
"value": "
6. Business and Non-Current Asset Disposals
| | | | | | | | | | | |
| | | Disposal of other non- current assets | | |
| | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | |
Assets/(liabilities) disposed of at net carrying amount: | | | | | | | | | | | |
| | | | | | | | | | | |
- cash and cash equivalents | | | | | | | | | | | |
- inventories, receivables, payables and provisions | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
- retirement benefit obligations | | | | | | | | | | | |
- non-controlling interests | | | | | | | | | | | |
| | | | | | | | | | | |
Reclassification of currency translation effects on disposal | | | | | | | | | | | |
| | | | | | | | | | | |
Proceeds from disposals (net of disposal costs) | | | | | | | | | | | |
(Loss)/profit on disposals from continuing operations | | | | | | | | | | | |
| | | | | | | | | | | |
Profit/(loss) on disposals from discontinued operations (note 3) | | | | | | | | | | | |
Net cash inflow arising on disposal | | | | | | | | | | | |
| | | | | | | | | | | |
Proceeds from disposals from continuing operations | | | | | | | | | | | |
Less: cash and cash equivalents disposed | | | | | | | | | | | |
Less: deferred proceeds arising on disposal (note 19) | | | | | | | | | | | |
Net cash inflow arising on disposal from continuing operations | | | | | | | | | | | |
| | | | | | | | | | | |
Net cash inflow arising on disposal from discontinued operations | | | | | | | | | | | |
Total Group net cash inflow arising on disposal | | | | | | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xNzgvZnJhZzpmY2M1Y2FmNjY3MTE0ODg5YTkyYWUzOTAxYTZkMTAyYS90ZXh0cmVnaW9uOmZjYzVjYWY2NjcxMTQ4ODlhOTJhZTM5MDFhNmQxMDJhXzE5MjQxNDUzNDg4NDQ0_8c8991a5-a8e4-49bc-9e74-d104be07818a": {
"value": "
7. Employment
Continuing operations
The average number of employees is as follows:
In accordance with the Companies Act 2014, the average number of employees, including discontinued operations, was 77,520 (2021: 77,446; 2020: 77,099).
Employment costs charged in the Consolidated Income Statement for continuing operations are analysed as follows:
| | | |
| | | |
| | | |
| | | |
| | | |
Redundancy, healthcare and other employment benefit costs | | | |
Share-based payment expense (note 8) | | | |
Total retirement benefits expense (note 28) | | | |
| | | |
| | | |
Total charge analysed between: | | | |
| | | |
| | | |
Finance costs (net) - applicable to retirement benefit obligations (note 9) | | | |
| | | |
28. Retirement Benefit Obligations
The Group operates either defined benefit or defined contribution pension
schemes in all of its principal operating areas. The disclosures included below
relate to all pension schemes in the Group.
The Group operates defined benefit pension schemes in Belgium, Canada,
France, Germany, Italy, the Netherlands, the Philippines, the Republic of Ireland,
Romania, Serbia, Slovakia, Switzerland, the UK and the US. The Group also
operated a defined benefit pension scheme in Brazil which was divested in April
2021. The Group has a mixture of funded and unfunded defined benefit pension
schemes. The net surplus of the funded schemes is $221 million (2021: $54
million). Unfunded obligations (including jubilee, post-retirement healthcare
obligations and long-term service commitments) comprise of a number of
schemes in Canada, France, Germany, Italy, the Netherlands, the Philippines,
Romania, Serbia, Slovakia, Switzerland and the US, totalling a net liability of $237
million (2021: $363 million).
Funded defined benefit schemes in the Republic of Ireland, Switzerland and the
UK are administered by separate funds that are legally distinct from the Group
under the jurisdiction of Trustees. The Trustees are required by law to act in the
best interests of the scheme participants and are responsible for the definition of
investment strategy and for scheme administration. Other schemes are also
administered in line with the local regulatory environment. The level of benefits
available to most members depends on length of service and either their average
salary over their period of employment or their salary in the final years leading up
to retirement. For Switzerland, the level of benefits depends on salary, level of
savings contributions, the interest rate on old age accounts (which cannot be
negative) and the annuity conversion factor on retirement. The Group\u2019s pension
schemes in Switzerland are contribution-based schemes with guarantees to
provide further contributions in the event that the plan assets are insufficient to
meet the benefit obligations.
Defined benefit pension schemes - principal risks
Through its defined benefit pension and jubilee schemes, long-term service
commitments and post-retirement healthcare plans, the Group is exposed to a
number of risks, the most significant of which are detailed below:
Asset volatility: Under IAS 19 Employee Benefits, the assets of the Group\u2019s
defined benefit pension schemes are reported at fair value (using bid prices,
where relevant). The majority of the schemes\u2019 assets comprise equities, bonds
and property, all of which may fluctuate significantly in value from period to
period including from fluctuations arising in respect of climate change and
associated risks and uncertainties. Given that liabilities are discounted to present
value based on bond yields and that bond prices are inversely related to yields,
an increase in the liability discount rate (which would reduce liabilities) would
reduce bond values, though not necessarily by an equal magnitude.
Given the maturity of certain of the Group\u2019s funded defined benefit pension
schemes, de-risking frameworks have been introduced to mitigate deficit volatility
and enable better matching of investment returns with the cash outflows related
to benefit obligations. These frameworks entail the usage of asset-liability
matching techniques, whereby triggers are set for the conversion of equity
holdings into bonds of similar average duration to the relevant liabilities.
Discount rates: The discount rates employed in determining the present value of
the schemes\u2019 liabilities are determined by reference to market yields at the
balance sheet date on high-quality corporate bonds of a currency and term
consistent with the currency and term of the associated post-employment benefit
obligations. Changes in discount rates impact the quantum of liabilities as
discussed above.
Inflation risk: A significant amount of the Group\u2019s pension obligations are linked
to inflation; higher inflation will lead to higher liabilities (although in most cases,
caps on the level of inflationary increases are in place to protect the schemes
against extreme inflation).
Longevity risk: In the majority of cases, the Group\u2019s defined benefit pension
schemes provide benefits for life with spousal and dependent child reversionary
provisions; increases in life expectancy (decreases in mortality assumptions) will
therefore give rise to higher liabilities.
Aggregation
For the purposes of the disclosures which follow; the schemes in Belgium,
France, Germany, Italy, the Netherlands, the Republic of Ireland and Slovakia
have been aggregated into a \u201cEurozone\u201d category on the basis of common
currency and financial assumptions; schemes in Brazil (which was divested in
April 2021), the Philippines, Romania, Serbia and the UK have been aggregated
into an \u201cOther\u201d category.
Financial assumptions \u2014 scheme liabilities
The major long-term assumptions used by the Group\u2019s actuaries in the computation of scheme liabilities and post-retirement healthcare obligations are as follows:
The mortality assumptions employed in determining the present value of scheme liabilities under IAS 19 represent actuarial guidelines in the relevant jurisdictions, taking
account of mortality experience and industry circumstances. For schemes in the Republic of Ireland and the UK, the mortality assumptions used are in accordance with
the underlying funding valuations. For the Group\u2019s most material schemes, the future life expectations factored into the relevant valuations, based on retirement at 65
years of age for current and future retirees, are as follows:
The above data allows for future improvements in life expectancy.
Impact on Consolidated Income Statement
The total retirement benefit expense from continuing operations in the Consolidated Income Statement is as follows:
| | | |
| | | |
| | | |
Total defined contribution expense (i) | | | |
Total defined benefit expense (i) | | | |
Total expense in Consolidated Income Statement | | | |
(i)The total defined contribution and defined benefit expense excludes $6 million and $nil million respectively (2021: $12 million and $1 million respectively;
2020: $10 million and $1 million respectively), relating to discontinued operations.
At 31\u00a0December 2022, $104 million (2021: $92 million) was included in trade and other payables in respect of defined contribution pension liabilities.
| | | |
Analysis of defined benefit expense | |
| | | |
Charged in arriving at Group profit before finance costs: | | | |
| | | |
| | | |
Past service (credit)/cost net | | | |
| | | |
| | | |
Included in finance income and finance costs respectively: | | | |
Interest income on scheme assets | | | |
Interest cost on scheme liabilities | | | |
| | | |
| | | |
Net expense to Consolidated Income Statement | | | |
The composition of the net expense to the Consolidated Income Statement is as follows: | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
28. Retirement Benefit Obligations continued
| | |
| | |
Reconciliation of scheme assets (bid value) | | |
| | |
| | |
Interest income on scheme assets | | |
Remeasurement adjustments | | |
- return on scheme assets excluding interest income | | |
Employer contributions paid | | |
Contributions paid by plan participants | | |
Benefit and settlement payments | | |
| | |
| | |
Fair value of plan assets | | |
Remeasurement adjustments | | |
- impact of asset ceiling | | |
| | |
The composition of scheme assets is as follows: | | |
| | |
| | |
| | |
| | |
| | |
Reconciliation of actuarial value of liabilities | | |
| | |
| | |
| | |
| | |
| | |
Interest cost on scheme liabilities | | |
| | |
Remeasurement adjustments | | |
| | |
- actuarial gain from changes in financial assumptions | | |
- actuarial (loss)/gain from changes in demographic assumptions | | |
Contributions paid by plan participants | | |
Benefit and settlement payments | | |
| | |
| | |
The composition of the actuarial value of liabilities is as follows: | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Related deferred income tax asset | | |
Net pension asset/(liability) | | |
The composition of the net pension asset/(liability) is as follows: | | |
| | |
| | |
| | |
| | |
| | |
(i)\u00a0 Reconciliation to Consolidated Balance Sheet | | |
Retirement benefit assets | | |
Retirement benefit obligations | | |
| | |
The above sensitivity analysis is derived through changing the individual assumption while holding all other assumptions constant.
| | |
| | |
| | |
Investments quoted in active markets | | |
| | |
| | |
| | |
Cash and cash equivalents | | |
| | |
| | |
| | |
| | |
| | |
| | |
Cash and cash equivalents | | |
Assets held by insurance company | | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
The average number of employees is as follows:
In accordance with the Companies Act 2014, the average number of employees, including discontinued operations, was 77,520 (2021: 77,446; 2020: 77,099).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
8. Share-based Payment Expense
Continuing operations
| | | |
| | | |
| | | |
Performance Share Plans expense | | | |
| | | |
Total share-based payment expense (i) | | | |
(i)The total share-based payment expense excludes $1 million (2021: $2 million; 2020: $3 million) relating to discontinued operations.
Share-based payment expense relates primarily to awards granted under the 2014 Performance Share Plan and the Group\u2019s Savings-related Share Option Schemes.
The expense is reflected in operating costs in the Consolidated Income Statement.
2014 Performance Share Plan
Details of the awards made under the 2014 Performance Share Plan are summarised below. An expense of $97 million was recognised in 2022 (2021: $106 million;
2020: $90 million).
Details of awards granted under the 2014 Performance Share Plan
| | | | |
| | | |
| Share price at date of award | Period to earliest release date | | Net outstanding at 31 December 2022 |
| | | | |
| | | | |
| | | | |
(i)Numbers represent the initial awards including those granted to employees of Building Envelope in 2021 and 2020. The Remuneration Committee has determined
that dividend equivalents will accrue on awards under the 2014 Performance Share Plan. Subject to satisfaction of the applicable performance criteria, such
dividend equivalents will be released to participants in the form of additional shares on vesting.
20% of each award made is subject to TSR performance measured against a
tailored peer group; 20% is subject to a RONA metric; 15% is subject to a new
sustainability and diversity scorecard metric introduced in 2022; with the
remaining 45% subject to a cumulative cashflow metric (2021 and 2020: 25% of
each award made is subject to TSR performance measured against a tailored
peer group; 25% is subject to a RONA metric; with the remaining 50% subject to
a cumulative cashflow metric). Performance for the awards will be assessed over
a three-year period.
The fair values assigned to the portion of awards which are subject to TSR
performance against peers was \u20ac19.04 (2021: \u20ac22.23; 2020: \u20ac18.52).
The fair value of these awards was calculated using a TSR pricing model taking
account of peer group TSR, volatilities and correlations together with the
following assumptions:
| | | |
| | | |
Risk-free interest rate (%) | | | |
| | | |
(i)The weighted average share price at the date of exercise of these options was \u20ac35.03 (2021: \u20ac42.10; 2020: \u20ac31.70).
(ii)All options granted have a life of ten years. All outstanding options are denominated in euro and have an exercise price of \u20ac16.19 (2021: \u20ac16.19; 2020: \u20ac16.19).
| | | | |
| | | | |
Weighted average remaining contractual life for the share options outstanding at 31 December (years) | | | | |
(i)The weighted average share price at the date of exercise of these options was \u20ac34.99 (2021: \u20ac42.53; 2020: \u20ac31.70).
(ii)Pursuant to the 2010 and 2021 Savings-related Share Option Schemes operated by the Group, employees were granted options over 571,528 of CRH plc\u2019s
Ordinary Shares in October 2022 (2021: 455,068 share options in October 2021; 2020: nil). This figure comprises options over 476,454 (2021: 346,237; 2020: nil)
shares and 95,074 (2021: 108,831; 2020: nil) shares which are normally exercisable within a period of six months after the third or the fifth anniversary of the
contract, whichever is applicable. The exercise price at which the options are granted under the scheme represents a discount of 15% to the market price on the
date of invitation of each savings contract.
8. Share-based Payment Expense continued
Continuing operations
| | | |
| | | |
Weighted average remaining contractual life for the share options outstanding at 31 December (years) | | | |
euro-denominated options outstanding at end of year (number) | | | |
Range of exercise prices (\u20ac) | | | |
Pound Sterling-denominated options outstanding at end of year (number) | | | |
Range of exercise prices (Stg\u00a3) | | | |
The weighted fair values assigned to options issued under the Savings-related Share Option Schemes, which were computed in accordance with the trinomial valuation
methodology, were as follows:
| | |
| | |
Granted in 2022 (October) | | |
Granted in 2021 (October) | | |
The weighted fair values assigned to options issued under the Savings-related Share Option Schemes, which were computed in accordance with the trinomial valuation
methodology, were as follows:
| | |
| | |
Granted in 2022 (October) | | |
Granted in 2021 (October) | | |
The following table reconciles the applicable Republic of Ireland statutory tax rate to the effective tax rate (current and deferred) of the Group:
| | | |
| |
Irish corporation tax rate | | | |
Higher tax rates on overseas earnings | | | |
| | | |
- arising from 2020 impairment | | | |
- other items (primarily comprising items not chargeable to tax/expenses not deductible for tax) | | | |
| | | |
(i)The customer-related intangible assets relate predominantly to non-contractual customer relationships.
(ii)Marketing-related, customer-related and contract-based intangible assets of $174 million, $594 million and $41 million respectively arose on the acquisition of
Barrette Outdoor Living (Barrette) in July 2022. These primarily related to brand names, patents and non-contractual customer relationships.
(iii)The amortisation charge includes $10 million (2021: $28 million; 2020: $26 million) in respect of discontinued operations, which primarily relates to customer-related
intangible assets.
Annual goodwill testing
Cash-generating units
Goodwill acquired through business combination activity has been allocated to
CGUs that are expected to benefit from synergies in that combination. The CGUs
represent the lowest level within the Group at which the associated goodwill is
monitored for internal management purposes, and are not larger than the
operating segments determined in accordance with IFRS 8. A total of 22
(2021:22) CGUs have been identified and these are analysed between the three
business segments below. All businesses within the various CGUs exhibit similar
and/or consistent profit margin and asset intensity characteristics. Assets,
liabilities, deferred tax and goodwill have been assigned to the CGUs on a
reasonable and consistent basis.
| | | | | |
| Number of cash-generating units | | |
| | | | | |
| | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Impairment testing methodology and results
Goodwill is subject to impairment testing on an annual basis. The recoverable
amount of 22 CGUs is determined based on a value-in-use (VIU) computation.
The cash flow forecasts are primarily based on a five-year strategic plan
document formally approved by the Board of Directors and specifically exclude
the impact of future development activity and capital expenditure that would
enhance the assets' performance. To align with the Group\u2019s acquisition
modelling methodology, these cash flows are extrapolated out for an additional
five years, using externally sourced growth rates, to determine the basis for an
annuity-based terminal value. The methodology allows, in very limited
circumstances, to adjust cash flows past the strategic plan horizon, where
deemed appropriate.
No adjustments were made to years 6-10 cash flows for the purpose of the 2022
impairment testing.
As in prior years, the terminal value is based on a 20-year annuity, with the
exception of certain long-lived cement assets, where an assumption of a 30-year\u00a0
annuity has been used. Projected cash flows beyond the initial evaluation period
have been extrapolated using real growth rates ranging from 1.9% in the
Americas, 0.8% to 3.0% in Europe and 3.0% in Asia. Such real growth rates do
not exceed the long-term average growth rates for the countries in which each
CGU operates. The VIU represents the present value of the future cash flows,
including the terminal value, discounted at a rate appropriate to each CGU. The
real pre-tax discount rate used for purposes of impairment testing on Ukraine
CGU was 16.9%. Excluding Ukraine, the real pre-tax discount rates used range
from 6.0% to 9.5% (2021: 6.5% to 8.6%). These rates are in line with the
Group\u2019s estimated weighted average cost of capital, arrived at using the Capital
Asset Pricing Model. The 2022 annual goodwill impairment testing process has
resulted in no intangible asset impairments (2021: $nil million).
Climate risk and impairment testing
The impact of climate change risks including the risks identified as part of the
TCFD disclosures on pages 56 to 59, with a particular focus on carbon costs,
has been considered as part of the impairment testing process through net cash
flow estimations and the duration of discounted cash flow models. In addition,
the capital expenditure required to meet our carbon emissions reduction targets
was also incorporated into our net cash flows.
Our Cement and Lime businesses represent our largest contributor to CO2
emissions and consequently have the largest exposure to carbon costs. The net
cash flows included in VIU assessments, reflect carbon costs that are reasonably
estimated to be incurred over the assessment period, based on current
Emissions Trading Schemes (ETS) in place at the date of testing and known
changes to regulations over the strategic plan horizon. The internal carbon prices
applied in VIU assessments reflect the most recent carbon credits purchased by
the Group along with the latest International Energy Agency (IEA) carbon price
projections for the applicable regions where the Group operates.
The purchase of carbon allowances is managed by a central unit which buys
forward to secure supply and de-risk the cost bases ahead of time. This helps
provide the Group with near-term certainty on carbon prices and associated
costs.
While none of the significant CGUs identified on page 212 currently has a
material exposure to carbon costs and as such carbon costs are not deemed a
key assumption, the Directors are aware of the ever-changing risks attached to
climate change and will regularly assess these risks against judgements and
estimates made in future VIU assessments.
While no adjustments in relation to carbon costs were made to years 6-10 cash
flows for the purposes of impairment testing, on the basis of assumed cost
recovery through pricing, CRH completed a scenario analysis that was aligned to
the Paris Agreement to assess the potential impacts of higher carbon costs past
the strategic plan period. Key variables included carbon prices based upon the
IEA Net Zero scenario (which assumes $140 per tonne in 2030 increasing to
$250 per tonne in 2050) and higher costs arising from the EU\u2019s introduction of
the Carbon Border Adjustment Mechanism. The impact of increasing carbon
prices and declining free allowances (where applicable) was analysed across our
material Cement and Lime CGUs in combination with forecast levels of cost
recovery through pricing. The analysis concluded there was no material impact
on any of the CGUs reviewed primarily due to the levels of headroom in these
CGUs and an assumption of cost recovery through pricing. The Group continues
to monitor the emergence of CO2 regulatory pronouncements which will be
factored into strategic plans once enacted.
Key sources of estimation uncertainty
The cash flows have been arrived at by taking into account the Group\u2019s strong
financial position, its established history of earnings and cash flow generation and
the nature of the building materials industry. However, expected future cash
flows are inherently uncertain and are therefore liable to material change over
time. The key assumptions employed in arriving at the estimates of future cash
flows factored into impairment testing are subjective and include projected
EBITDA (as defined)* margins, long-term growth and discount rates used and the
duration of the discounted cash flow model.
While carbon costs are considered a climate-related risk under our TCFD
disclosures, they are not considered a major source of estimation uncertainty on
their own for 2022. The impact of this risk from an impairment perspective is
reflected through EBITDA (as defined)* margin which as set out on page 182 is a
major source of estimation uncertainty.
* EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Group\u2019s share of equity
accounted investments\u2019 profit after tax.
14. Intangible Assets continued
Significant goodwill amounts
The goodwill allocated to the Americas Cement, AMAT South (Americas Materials segment) and the Building Products (Building Products segment) CGUs account for
between 11% and 32% of the total carrying amount shown on page 210.
The goodwill allocated to each of the remaining CGUs is less than 10% of the total carrying value in all other cases. The additional disclosures required for the three
CGUs with significant goodwill are as follows:
| | | | | | | | |
| | | | | |
| | | | | | | |
Goodwill allocated to the cash-generating unit at balance sheet date | | | | | | | | |
Discount rate applied to the cash flow projections (real pre-tax) | | | | | | | | |
Average EBITDA (as defined)* margin over the initial 5-year period | | | | | | | | |
Value-in-use (present value of future cash flows) | | | | | | | | |
Excess of value-in-use over carrying amount | | | | | | | | |
| | | | | | | | |
The key assumptions and methodology used in respect of these three CGUs are
consistent with those described above. The values applied to each of the key
estimates and assumptions are specific to the individual CGUs and were derived
from a combination of internal and external factors based on historical experience
and took into account the cash flows specifically associated with these
businesses. The cash flows and annuity-based terminal value were projected in
line with the methodology disclosed above.
The Americas Cement, AMAT South and Building Products CGUs are not
included in the \u2018Sensitivity analysis\u2019 section below. Given the magnitude of the
excess of VIU over carrying amount, and our belief that the key assumptions are
reasonable, management believes that it is not reasonably possible that there
would be a change in the key assumptions such that the carrying amount would
exceed the VIU.
Consequently no further disclosures relating to sensitivity of the value-in-use
computations for the Americas Cement, AMAT South or Building Products CGUs
are considered to be warranted.
Sensitivity analysis
A qualitative and quantitative assessment has been performed and results in
additional sensitivity disclosures for two of the total 22 CGUs. The key
assumptions, methodology used and values applied to each of the key
assumptions for these CGUs are in line with those outlined above (a 30-year
annuity period has been used). The two CGUs have aggregate goodwill of $665
million at the date of testing. The table below identifies the amounts by which
each of the following assumptions may either decline or increase to arrive at a
zero excess of the present value of future cash flows over the book value of net
assets in the two CGUs selected for sensitivity analysis disclosures:
| |
| two cash-generating units |
Reduction in EBITDA (as defined)* margin | 2.6 and 3.8 percentage points |
Reduction in long-term growth rate | 2.7 and 3.2 percentage points |
Increase in pre-tax discount rate | 2.0 and 2.1 percentage points |
modelling methodology, these cash flows are extrapolated out for an additional
five years, using externally sourced growth rates, to determine the basis for an
annuity-based terminal value. The methodology allows, in very limited
circumstances, to adjust cash flows past the strategic plan horizon, where
deemed appropriate.
No adjustments were made to years 6-10 cash flows for the purpose of the 2022
impairment testing.
As in prior years, the terminal value is based on a 20-year annuity, with the
exception of certain long-lived cement assets, where an assumption of a 30-year\u00a0
annuity has been used. Projected cash flows beyond the initial evaluation period
have been extrapolated using real growth rates ranging from 1.9% in the
Americas, 0.8% to 3.0% in Europe and 3.0% in Asia. Such real growth rates do
not exceed the long-term average growth rates for the countries in which each
CGU operates. The VIU represents the present value of the future cash flows,
including the terminal value, discounted at a rate appropriate to each CGU. The
real pre-tax discount rate used for purposes of impairment testing on Ukraine
CGU was 16.9%. Excluding Ukraine, the real pre-tax discount rates used range
from 6.0% to 9.5% (2021: 6.5% to 8.6%). These rates are in line with the
Group\u2019s estimated weighted average cost of capital, arrived at using the Capital
Asset Pricing Model. The 2022 annual goodwill impairment testing process has
resulted in no intangible asset impairments (2021: $nil million).
",
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"value": "Key sources of estimation uncertaintyThe cash flows have been arrived at by taking into account the Group\u2019s strong financial position, its established history of earnings and cash flow generation and the nature of the building materials industry. However, expected future cash flows are inherently uncertain and are therefore liable to material change over time. The key assumptions employed in arriving at the estimates of future cash flows factored into impairment testing are subjective and include projected EBITDA (as defined)* margins, long-term growth and discount rates used and the duration of the discounted cash flow model.While carbon costs are considered a climate-related risk under our TCFD disclosures, they are not considered a major source of estimation uncertainty on their own for 2022. The impact of this risk from an impairment perspective is reflected through EBITDA (as defined)* margin which as set out on page 182 is a major source of estimation uncertainty.",
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"value": "
Significant goodwill amounts
The goodwill allocated to the Americas Cement, AMAT South (Americas Materials segment) and the Building Products (Building Products segment) CGUs account for
between 11% and 32% of the total carrying amount shown on page 210.
The goodwill allocated to each of the remaining CGUs is less than 10% of the total carrying value in all other cases. The additional disclosures required for the three
CGUs with significant goodwill are as follows:
| | | | | | | | |
| | | | | |
| | | | | | | |
Goodwill allocated to the cash-generating unit at balance sheet date | | | | | | | | |
Discount rate applied to the cash flow projections (real pre-tax) | | | | | | | | |
Average EBITDA (as defined)* margin over the initial 5-year period | | | | | | | | |
Value-in-use (present value of future cash flows) | | | | | | | | |
Excess of value-in-use over carrying amount | | | | | | | | |
| | | | | | | | |
The key assumptions and methodology used in respect of these three CGUs are
consistent with those described above. The values applied to each of the key
estimates and assumptions are specific to the individual CGUs and were derived
from a combination of internal and external factors based on historical experience
and took into account the cash flows specifically associated with these
businesses. The cash flows and annuity-based terminal value were projected in
line with the methodology disclosed above.
The Americas Cement, AMAT South and Building Products CGUs are not
included in the \u2018Sensitivity analysis\u2019 section below. Given the magnitude of the
excess of VIU over carrying amount, and our belief that the key assumptions are
reasonable, management believes that it is not reasonably possible that there
would be a change in the key assumptions such that the carrying amount would
exceed the VIU.
Consequently no further disclosures relating to sensitivity of the value-in-use
computations for the Americas Cement, AMAT South or Building Products CGUs
are considered to be warranted.
Sensitivity analysis
A qualitative and quantitative assessment has been performed and results in
additional sensitivity disclosures for two of the total 22 CGUs. The key
assumptions, methodology used and values applied to each of the key
assumptions for these CGUs are in line with those outlined above (a 30-year
annuity period has been used). The two CGUs have aggregate goodwill of $665
million at the date of testing. The table below identifies the amounts by which
each of the following assumptions may either decline or increase to arrive at a
zero excess of the present value of future cash flows over the book value of net
assets in the two CGUs selected for sensitivity analysis disclosures:
| |
| two cash-generating units |
Reduction in EBITDA (as defined)* margin | 2.6 and 3.8 percentage points |
Reduction in long-term growth rate | 2.7 and 3.2 percentage points |
Increase in pre-tax discount rate | 2.0 and 2.1 percentage points |
(i)The Group\u2019s share of joint ventures and associates profit/(loss) after tax is equity accounted and is presented as a single line item in the Consolidated Income
Statement. It is analysed as follows; profit after tax from joint ventures: $8 million (2021: $11 million; 2020: $22 million), loss after tax from associates: $8 million
(2021: profit after tax of $44 million; 2020: loss after tax of $140 million).
A listing of the principal equity accounted investments is contained on page 293.
",
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"concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory",
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"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"value": "
15. Financial Assets
| | | | |
| Investments accounted for using the equity method (i.e. joint ventures and associates) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Arising on acquisition (note 30) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
The equivalent disclosure for the prior year is as follows: | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Share of profit after tax | | | | |
| | | | |
| | | | |
(i)The Group\u2019s share of joint ventures and associates profit/(loss) after tax is equity accounted and is presented as a single line item in the Consolidated Income
Statement. It is analysed as follows; profit after tax from joint ventures: $8 million (2021: $11 million; 2020: $22 million), loss after tax from associates: $8 million
(2021: profit after tax of $44 million; 2020: loss after tax of $140 million).
A listing of the principal equity accounted investments is contained on page 293.
",
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"value": "
16. Inventories
| | |
| | |
| | |
| | |
| | |
| | |
Total inventories at the lower of cost and net realisable value | | |
(i)Work-in-progress includes $4 million (2021: $9 million) in respect of the cumulative costs incurred, net of amounts transferred to cost of sales under percentage-of-
completion accounting, for construction contracts in progress at the balance sheet date.
An analysis of the Group\u2019s cost of sales expense is provided in note 4 to the financial statements.
Write-downs of inventories recognised as an expense within cost of sales amounted to $17 million (2021: $2 million; 2020: $9 million).
19. Movement in Inventories, Receivables, Payables and Provisions
| | | | | |
| | | | | |
| Trade and other receivables | Trade and\u00a0 other payables | Provisions for liabilities | |
| | | | |
| | | | | |
| | | | | |
Arising on acquisition (note 30) | | | | | |
| | | | | |
Deferred and contingent acquisition consideration: | | | | | |
- arising on acquisitions during year (note 30) | | | | | |
| | | | | |
Deferred divestment consideration: | | | | | |
| | | | | |
Interest accruals and discount unwinding | | | | | |
Additions to leased mineral reserves | | | | | |
Increase/(decrease) in inventories, receivables, payables and provisions | | | | | |
| | | | | |
| | | | | |
The equivalent disclosure for the prior years is as follows: | | | | | |
| | | | | |
| | | | | |
| | | | | |
Arising on acquisition (note 30) | | | | | |
| | | | | |
Deferred and contingent acquisition consideration: | | | | | |
- arising on acquisitions during year (note 30) | | | | | |
| | | | | |
Deferred divestment consideration: | | | | | |
- arising on disposals during year | | | | | |
| | | | | |
Shares to be acquired by CRH plc (Treasury Shares) (note 29) | | | | | |
Interest accruals and discount unwinding | | | | | |
| | | | | |
Additions to leased mineral reserves | | | | | |
Increase/(decrease) in inventories, receivables, payables and provisions | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Arising on acquisition (note 30) | | | | | |
| | | | | |
Deferred and contingent acquisition consideration: | | | | | |
- arising on acquisitions during year (note 30) | | | | | |
| | | | | |
Deferred divestment consideration: | | | | | |
- arising on disposals during year | | | | | |
| | | | | |
Interest accruals and discount unwinding | | | | | |
| | | | | |
Additions to leased mineral reserves | | | | | |
(Decrease)/increase in inventories, receivables, payables and provisions | | | | | |
| | | | | |
(i)Includes unbilled revenue and retentions held by customers in respect of construction contracts at the balance sheet date amounting to $402 million and $204
million respectively (2021: $361 million and $204 million respectively). The movements in these balances during the year was as follows:
| | | | | |
| \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Unbilled revenue | | \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Retentions |
| | | | | |
| | | | |
| | | | | |
| | | | | |
Additional contract balances recognised | | | | | |
| | | | | |
| | | | | |
Written off during the year | | | | | |
| | | | | |
| | | | | |
Trade receivables, construction contract assets and deferred divestment consideration, which is included in other receivables, are measured at amortised cost (less any
expected credit loss allowance) as the Group\u2019s business model is to \u201chold to collect\u201d contractual cash flows, and the cash flows arising from trade and other receivables
are solely payments of principal and interest. The carrying amount of trade receivables, construction contract assets and deferred divestment consideration closely
approximate their fair value.
Valuation and qualifying accounts (expected credit loss allowance)
The movements in the expected credit loss allowance for receivables during the financial year were as follows:
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Arising on acquisition (note 30) | | | |
Net remeasurement of expected credit loss allowance | | | |
| | | |
| | | | | | | |
(i)\u00a0 Analysis of Building Products segment by geographic location: | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Trade receivables and construction contract assets are in general receivable within 90 days of the balance sheet date.
19. Movement in Inventories, Receivables, Payables and Provisions
| | | | | |
| | | | | |
| Trade and other receivables | Trade and\u00a0 other payables | Provisions for liabilities | |
| | | | |
| | | | | |
| | | | | |
Arising on acquisition (note 30) | | | | | |
| | | | | |
Deferred and contingent acquisition consideration: | | | | | |
- arising on acquisitions during year (note 30) | | | | | |
| | | | | |
Deferred divestment consideration: | | | | | |
| | | | | |
Interest accruals and discount unwinding | | | | | |
Additions to leased mineral reserves | | | | | |
Increase/(decrease) in inventories, receivables, payables and provisions | | | | | |
| | | | | |
| | | | | |
The equivalent disclosure for the prior years is as follows: | | | | | |
| | | | | |
| | | | | |
| | | | | |
Arising on acquisition (note 30) | | | | | |
| | | | | |
Deferred and contingent acquisition consideration: | | | | | |
- arising on acquisitions during year (note 30) | | | | | |
| | | | | |
Deferred divestment consideration: | | | | | |
- arising on disposals during year | | | | | |
| | | | | |
Shares to be acquired by CRH plc (Treasury Shares) (note 29) | | | | | |
Interest accruals and discount unwinding | | | | | |
| | | | | |
Additions to leased mineral reserves | | | | | |
Increase/(decrease) in inventories, receivables, payables and provisions | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Arising on acquisition (note 30) | | | | | |
| | | | | |
Deferred and contingent acquisition consideration: | | | | | |
- arising on acquisitions during year (note 30) | | | | | |
| | | | | |
Deferred divestment consideration: | | | | | |
- arising on disposals during year | | | | | |
| | | | | |
Interest accruals and discount unwinding | | | | | |
| | | | | |
Additions to leased mineral reserves | | | | | |
(Decrease)/increase in inventories, receivables, payables and provisions | | | | | |
| | | | | |
| | | | | | | |
(i)\u00a0 Analysis of Building Products segment by geographic location: | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
The carrying amounts of trade payables, construction contract-related payables and other payables approximate their fair value largely due to the short-term
maturities and nature of these instruments.
(ii)The fair value of total contingent consideration is $293 million (2021: $317 million) (Level 3 in the fair value hierarchy), and deferred consideration is $36 million
(2021: $44 million). On an undiscounted basis, the corresponding future payments relating to contingent consideration, for which the Group may be liable, ranges
from $296 million to $448 million. This is based on a range of estimated potential outcomes of the expected payment amounts primarily dependent on underlying
performance metrics as set out in the relevant agreements. The fair value of contingent consideration is arrived at through discounting the expected payment to
present value. Based on a reasonable possible change in assumptions, the fair value ranges from $231 million to $351 million on a discounted basis. The
movement in deferred and contingent consideration during the financial year was as follows:
| | |
| | |
| | |
| | |
| | |
Arising on acquisitions and investments during year (note 30) | | |
| | |
| | |
| | |
| | |
| | |
(i)The depreciation charge includes $11 million (2021: $34 million; 2020: $33 million) relating to discontinued operations.
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Addition of right-of-use assets | | | | |
Arising on acquisition (note 30) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
The equivalent disclosure for the prior year is as follows: | | | | |
| | | | |
| | | | |
| | | | |
Addition of right-of-use assets | | | | |
Arising on acquisition (note 30) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
20. Leases continued
The Group avails of the exemption from capitalising lease costs for short-term leases and low-value assets where the relevant criteria are met. Variable lease payments
directly linked to sales or usage are also expensed as incurred. The following lease costs have been charged to the Consolidated Income Statement as incurred:
| | |
| | |
| | |
| | |
Lease of low-value assets | | |
Variable lease payments not included in the lease liability | | |
| | |
Total cash outflow for lease payments | | |
Lease commitments for short-term leases are similar to the portfolio of short-term leases for which the costs, as above, were expensed to the Consolidated Income
Statement. The effect of excluding future cash outflows arising from variable lease payments, termination options, residual value guarantees and leases not yet
commenced from lease liabilities was not material for the Group. The potential undiscounted future cash outflows arising from the exercise of renewal options that are
not expected to be exercised (and are therefore not included in the lease term) are as follows:
| | |
| | |
| |
| |
| |
| | |
Between one and two years | | |
Between two and three years | | |
Between three and four years | | |
Between four and five years | | |
| | |
| | |
(ii) For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents and bank overdrafts in notional cash pooling arrangements are presented net.
21. Analysis of Net Debt continued
The following table shows the effective interest rates on period-end fixed and gross debt:
| | | | | | | |
| As at 31\u00a0December 2022 | | As at 31\u00a0December 2021 |
| | | Weighted average fixed period | | | | Weighted average fixed period |
| | | | | | | |
Interest-bearing loans and borrowings nominal - fixed rate (i) | | | | | | | |
Derivative financial instruments - fixed rate | | | | | | | |
Net fixed rate debt including derivatives | | | | | | | |
Interest-bearing loans and borrowings nominal - floating rate (ii) | | | | | | | |
Cumulative fair value hedge adjustment (i) | | | | | | | |
Derivative financial instruments - floating rate (i) | | | | | | | |
Derivative financial instruments (net) - fair value | | | | | | | |
Gross debt including derivative financial instruments, excluding lease liabilities | | | | | | | |
Lease liabilities - fixed rate | | | | | | | |
Gross debt including derivative financial instruments, including lease liabilities | | | | | | | |
Cash and cash equivalents - floating rate (note 23) | | | | | | | |
| | | | | | | |
The Group believes that its financial resources (operating cash together with cash and cash equivalents of $5.9 billion and undrawn committed loan facilities of $3.7
billion) is sufficient to cover the Group\u2019s cash requirements.
At 31\u00a0December 2022, US Dollar and euro denominated cash and cash equivalents represented 39% (2021: 39%) and 39% (2021: 41%) of total cash and cash
equivalents respectively.
Significant borrowings
The main sources of Group debt funding are public bond markets in Europe and North America. The following external bonds were outstanding as at 31\u00a0December
2022:
| | | | |
| | | | Hedged to floating rate (millions) |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
(i)The $300\u00a0million bond was issued in September 2003, and at the time of issuance the bond was partially swapped to floating interest rates. In August 2009 and
December 2010, $87\u00a0million of the issued notes were acquired by CRH plc as part of liability management exercises undertaken and the interest rate hedge was
closed out. At 31\u00a0December 2022, the remaining fair value hedge adjustment on the hedged item on the Consolidated Balance Sheet was $33 million (2021: $35
million).
24. Interest-bearing Loans and Borrowings
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Interest-bearing loans and borrowings | | |
The Group believes that its financial resources (operating cash together with cash and cash equivalents of $5.9 billion and undrawn committed loan facilities of $3.7
billion) is sufficient to cover the Group\u2019s cash requirements.
At 31\u00a0December 2022, US Dollar and euro denominated cash and cash equivalents represented 39% (2021: 39%) and 39% (2021: 41%) of total cash and cash
equivalents respectively.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory",
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"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
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"value": "
22. Capital and Financial Risk Management
Capital management
Overall summary
The primary objectives of CRH\u2019s capital management strategy are to ensure that
the Group maintains a strong credit rating to support its business and to create
shareholder value by managing the debt and equity balance and the cost of
capital. The Group is committed to optimising the use of its balance sheet within
the confines of the overall objective to maintain an investment grade credit rating.
The capital structure of the Group, which comprises net debt and capital and
reserves attributable to the Company\u2019s equity holders, may be summarised as
follows:
| | |
| | |
| | |
Capital and reserves attributable to the Company\u2019s equity holders | | |
| | |
| | |
The Board periodically reviews the capital structure of the Group, including the
cost of capital and the risks associated with each class of capital. The Group
manages and, if necessary, adjusts its capital structure taking account of
underlying economic conditions; any material adjustments to the Group\u2019s capital
structure in terms of the relative proportions of debt and equity are approved by
the Board. In order to maintain or adjust the capital structure, the Group may
issue new shares, dispose of assets, amend investment plans, alter dividend
policy or return capital to shareholders.
Dividend cover for the year ended 31\u00a0December 2022 amounted to 4x; on a
continuing basis 2.8x (2021: 2.7x; on a continuing basis 2.5x; 2020: 1.2x; on a
continuing basis 1.1x).
No changes were made in the objectives or policies during 2022.
Financial risk management objectives and policies
The Group uses financial instruments throughout its businesses: interest-bearing
loans and borrowings, cash and cash equivalents and leases are used to finance
the Group\u2019s operations; trade receivables and trade payables arise directly from
operations; and derivatives, principally interest rate and currency swaps and
currency forwards, are used to manage interest rate risks and currency
exposures and to achieve the desired profile of borrowings.
In accordance with the UK Financial Conduct Authority\u2019s announcement on 5
March 2021, LIBOR benchmark rates were discontinued after 31\u00a0December
2022 except for certain US Dollar settings which will be discontinued after 30
June 2023. Those rates that were discontinued were replaced by alternative risk-
free rates (ARR) as part of the inter-bank offer rate (IBOR) reform.
The Group prepared an action plan, encompassing treasury, legal, accounting
and IT functions, to enable a smooth transition to the alternative benchmark
rates. The review identified a range of contracts that reference IBORs, including
credit facilities, derivative instruments, money market deposits, lease
agreements, and supply contract agreements. Action plans were developed for
each of these arrangements to ensure a smooth transition to ARR. None of the
changes had an impact on the Group\u2019s financing or interest rate hedging
strategies, nor did they have a material financial impact.
At 31\u00a0December 2022, the notional value of hedging instruments that reference
3-month US LIBOR is $1.4\u00a0billion. Whilst the Secured Overnight Financing Rate
(SOFR) benchmark rate has been widely adopted by market participants and
effectively replaced US LIBOR in new contracts since 31\u00a0December 2022, a
number of US LIBOR settings, including 3-month and 6-month US LIBOR, will
continue to be published until 30 June 2023. Accordingly, absent any agreement
with counterparties to transition to an ARR before this date, the Group\u2019s existing
USD denominated interest rate swaps with maturity dates beyond 30 June 2023
will only transition to ARR once US LIBOR publication ceases. As at
31\u00a0December 2022, the Group has not transitioned any of its existing USD
denominated interest rate swaps to ARRs. The Group\u2019s other interest rate swaps
reference EURIBOR rates and thus are not impacted by the IBOR reforms.
The Group does not trade in financial instruments nor does it enter into any
leveraged derivative transactions.
The Group\u2019s corporate treasury function provides services to the business units,
coordinates access to domestic and international financial markets, and monitors
and manages the financial risks relating to the operations of the Group. The
Group Treasurer reports to the Head of Group Finance and the activities of the
corporate treasury function are subject to regular internal audit. Systems and
processes are in place to monitor and control the Group\u2019s liquidity risks. The
Group\u2019s net debt position forms part of the monthly documentation presented to
the Board.
The Group\u2019s hedging activity is based on observable economic relationships,
when there is confidence that such relationships will continue for the foreseeable
future. Matching critical terms such as notional amount, tenor, timing and
currency, the Group establishes relationships between a hedged item and
hedging instrument where directional response to changes in fair value, driven by
underlying economic conditions, are opposing and proportional in equal measure
being an economic relationship under IFRS 9. Hedging ratios of 1:1 are used
throughout all hedging activity as the hedged item and hedging instrument are of
the same type and currency. The hedges employed mitigate identified risks and
have consistently demonstrated close economic relationships. Ineffectiveness
between the hedged item and hedging instrument are immaterial in the overall
context of the Group.
The main risks attaching to the Group\u2019s financial instruments are interest rate
risk, foreign currency risk, credit risk, liquidity risk and commodity price risk. The
Board reviews and agrees policies for the prudent management of each of these
risks as documented below.
Interest rate risk
The Group\u2019s exposure to market risk for changes in interest rates stems
predominantly from its long-term debt obligations. Interest cost is managed using
a mix of fixed and floating rate debt. With the objective of managing this mix in a
cost-efficient manner, the Group enters into interest rate swaps, under which the
Group contracts to exchange, at predetermined intervals, the difference between
fixed and variable interest amounts calculated by reference to a pre-agreed
notional principal. Such contracts enable the Group to mitigate the risk of
changing interest rates on the fair value of issued fixed rate debt and the cash
flow exposures of issued floating rate debt.
These swaps are designated under IFRS 9 to hedge underlying debt obligations
and qualify for hedge accounting treatment.
The Group applies hedge accounting where there is an economic relationship
between the hedged item and the hedging instrument. The existence of an
economic relationship is determined initially by comparing the critical terms of the
hedging instrument and those of the hedged item and it is prospectively
assessed using linear regression analysis. The Group issues fixed rate debt and
may enter into interest rate swaps with critical terms that match those of the debt
and on a 1:1 hedge ratio basis. The hedge ratio is determined by comparing the
notional amount of the derivative with the notional amount of the debt. The
hedge relationship is designated for the full term and notional value of the debt.
22. Capital and Financial Risk Management continued
Whilst interest rate increases observed in the markets in which the Group
operates were in the range of 2%-4.5% during 2022, the following table
demonstrates the impact on profit before tax as a result of incremental changes
of 1%\u00a0in the interest rates applicable to floating rate net debt, which operate in a
linear manner, with all other variables held constant. These impacts are
calculated based on the closing balance sheet floating rate net debt for a full year
and assume that all floating interest rates change by the same amount.
| | |
Percentage change in cost of borrowings (i) | | |
Impact on profit before tax | | |
| | |
| | |
(i)\u00a0 \u00a0 Sensitivity analysis for exchange rates has been presented for continuing
operations only.
Financial instruments include deposits, money market funds, commercial paper,
bank loans, medium-term notes and other fixed term debt, interest rate swaps,
commodity swaps and foreign exchange contracts. They exclude trade
receivables and trade payables on the basis that they are denominated in the
currency of the underlying operations. The Group minimises the impact of
movements in foreign exchange rates on the Group\u2019s income statement through
matching where possible, foreign currency monetary assets and liabilities or the
use of derivative contracts at an entity level.
Credit/counterparty risk
In addition to cash at bank and in hand, the Group holds significant cash
balances which are invested on a short-term basis and are classified as cash
equivalents (see note 23). These deposits, investments and other financial
instruments (principally certain derivatives and loans and receivables included
within financial assets) give rise to credit risk on amounts due from counterparty
financial institutions (stemming from their insolvency or a downgrade in their
credit ratings). Credit risk is managed by limiting the aggregate amount and
duration of exposure to any one counterparty primarily depending on its credit
rating and by regular review of these ratings and internal treasury policies.
Acceptable credit ratings for deposits and other financial instruments are higher
investment-grade ratings\u2014in general, counterparties have ratings of A3/A-/A- or
higher from at least two of Moody\u2019s/ Standard & Poor\u2019s/Fitch ratings agencies.
The maximum exposure arising in the event of default on the part of the
counterparty (including insolvency) is the carrying value of the relevant financial
instrument.
Credit rating of counterparty (Moody\u2019s/Standard & Poor\u2019s/Fitch)
Money market liquidity funds are managed by external third-party fund
managers to maintain Aaa/AAA long-term ratings and P1/A1 short-term ratings
from Moody\u2019s/Standard & Poor\u2019s. The Group limits its investment in each fund
to a prescribed maximum amount or 5% of the fund\u2019s assets under
management, whichever is the lower. The Group has a number of managed
investment funds that hold fixed income euro securities with an average credit
quality of Aaa/AAA. As at 31\u00a0December 2022, 95% (2021: 65%) of cash and
cash equivalents was held with higher investment grade bank counterparties,
and 5% (2021: 35%) with the money market funds.
Credit risk arising in the context of the Group\u2019s operations is not significant with
the total loss allowance at the balance sheet date amounting to 3.1% of gross
trade receivables and construction contract assets (2021: 3.2%). Information in
relation to the Group\u2019s credit risk management of trade receivables is provided in
note 17. Amounts receivable from related parties (notes 17 and 32) are
immaterial. Factoring arrangements and supplier financing arrangements are
employed in certain of the Group\u2019s operations where deemed to be of benefit by
operational management and are deemed immaterial.
In its worldwide insurance programme, the Group carries appropriate levels of
insurance for typical business risks (including product liability) with various leading
insurance companies. However, in the event of the failure of one or more of its
insurance counterparties, the Group could be impacted by losses where
recovery from such counterparties is not possible.
Liquidity risk
The principal liquidity risks faced by the Group stem from the maturation of debt
obligations and derivative transactions. A downgrade of CRH\u2019s credit ratings may
give rise to increases in funding costs in respect of future debt and may impair
the Group\u2019s ability to raise funds on acceptable terms. The Group\u2019s corporate
treasury function ensures that sufficient resources are available to meet such
liabilities as they fall due through a combination of cash and cash equivalents,
cash flows and undrawn committed bank facilities. Flexibility in funding sources is
achieved through a variety of means including (i) maintaining cash and cash
equivalents only with a diverse group of highly-rated counterparties; (ii) limiting
the annual maturity of such balances; (iii) borrowing the bulk of the Group\u2019s debt
requirements under committed bank lines or other term financing; and (iv) having
surplus committed lines of credit.
The undrawn committed facilities available to the Group as at the balance sheet
date are quantified in note 24; these facilities span a wide number of highly-rated
financial institutions thus minimising any potential exposure arising from
concentrations in borrowing sources. The repayment schedule (analysed by
maturity date) applicable to the Group\u2019s outstanding interest-bearing loans and
borrowings as at the balance sheet date is also presented in note 24.
The Group\u2019s \u20ac1.5\u00a0billion Euro Commercial Paper Programme and $2.0\u00a0billion
US Dollar Commercial Paper Programme means we have framework
programmes in place in the money markets that allow the Group to issue in the
relevant markets within a short period of time.
Commodity price risk
The principal commodity price risks are identified in a variety of highly probable
and active commodity contracts where a significant part of the price to be paid
relies on a reference to specific floating price indices (usually US Dollar) for a
specific period. Programmes are in place to hedge the quantities and qualities of
commodity products, including fuel oil and related products, electricity and
carbon credits. The aim of the programmes is to neutralise the variability in the
Consolidated Income Statement as a result of changes in associated commodity
indices over a timeframe of approximately two years (2021: four years). A hedge
ratio of 1:1 is established. Fixed price swap contracts in the entity\u2019s operating
currency are used to hedge the same specific floating index risk and currency
risk where it is determined that those risks are better managed at a fixed price
rather than being exposed to uncontrollable price fluctuations due to the floating
price index element of the contract. Sources of ineffectiveness can relate to
timing of cash flows and counterparty credit risk adjustments. The derivative
contracts qualify for cash flow hedge accounting under IFRS 9 and the fair values
by maturity are set out in note 25.
The notional and fair values in respect of derivative contracts as at 31\u00a0December
2022 and 31\u00a0December 2021 were as follows:
Profile of commodity products
| | | | | |
| As at 31\u00a0December 2022 | | As at 31\u00a0December 2021 |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Fuel oil and related products | | | | | |
| | | | | |
The Board periodically reviews the capital structure of the Group, including the
cost of capital and the risks associated with each class of capital. The Group
manages and, if necessary, adjusts its capital structure taking account of
underlying economic conditions; any material adjustments to the Group\u2019s capital
structure in terms of the relative proportions of debt and equity are approved by
the Board. In order to maintain or adjust the capital structure, the Group may
issue new shares, dispose of assets, amend investment plans, alter dividend
policy or return capital to shareholders.
Dividend cover for the year ended 31\u00a0December 2022 amounted to 4x; on a
continuing basis 2.8x (2021: 2.7x; on a continuing basis 2.5x; 2020: 1.2x; on a
continuing basis 1.1x).
No changes were made in the objectives or policies during 2022.
Financial risk management objectives and policies
The Group uses financial instruments throughout its businesses: interest-bearing
loans and borrowings, cash and cash equivalents and leases are used to finance
the Group\u2019s operations; trade receivables and trade payables arise directly from
operations; and derivatives, principally interest rate and currency swaps and
currency forwards, are used to manage interest rate risks and currency
exposures and to achieve the desired profile of borrowings.
In accordance with the UK Financial Conduct Authority\u2019s announcement on 5
March 2021, LIBOR benchmark rates were discontinued after 31\u00a0December
2022 except for certain US Dollar settings which will be discontinued after 30
June 2023. Those rates that were discontinued were replaced by alternative risk-
free rates (ARR) as part of the inter-bank offer rate (IBOR) reform.
The Group prepared an action plan, encompassing treasury, legal, accounting
and IT functions, to enable a smooth transition to the alternative benchmark
rates. The review identified a range of contracts that reference IBORs, including
credit facilities, derivative instruments, money market deposits, lease
agreements, and supply contract agreements. Action plans were developed for
each of these arrangements to ensure a smooth transition to ARR. None of the
changes had an impact on the Group\u2019s financing or interest rate hedging
strategies, nor did they have a material financial impact.
At 31\u00a0December 2022, the notional value of hedging instruments that reference
3-month US LIBOR is $1.4\u00a0billion. Whilst the Secured Overnight Financing Rate
(SOFR) benchmark rate has been widely adopted by market participants and
effectively replaced US LIBOR in new contracts since 31\u00a0December 2022, a
number of US LIBOR settings, including 3-month and 6-month US LIBOR, will
continue to be published until 30 June 2023. Accordingly, absent any agreement
with counterparties to transition to an ARR before this date, the Group\u2019s existing
USD denominated interest rate swaps with maturity dates beyond 30 June 2023
will only transition to ARR once US LIBOR publication ceases. As at
31\u00a0December 2022, the Group has not transitioned any of its existing USD
denominated interest rate swaps to ARRs. The Group\u2019s other interest rate swaps
reference EURIBOR rates and thus are not impacted by the IBOR reforms.
The Group does not trade in financial instruments nor does it enter into any
leveraged derivative transactions.
The Group\u2019s corporate treasury function provides services to the business units,
coordinates access to domestic and international financial markets, and monitors
and manages the financial risks relating to the operations of the Group. The
Group Treasurer reports to the Head of Group Finance and the activities of the
corporate treasury function are subject to regular internal audit. Systems and
processes are in place to monitor and control the Group\u2019s liquidity risks. The
Group\u2019s net debt position forms part of the monthly documentation presented to
the Board.
The Group\u2019s hedging activity is based on observable economic relationships,
when there is confidence that such relationships will continue for the foreseeable
future. Matching critical terms such as notional amount, tenor, timing and
currency, the Group establishes relationships between a hedged item and
hedging instrument where directional response to changes in fair value, driven by
underlying economic conditions, are opposing and proportional in equal measure
being an economic relationship under IFRS 9. Hedging ratios of 1:1 are used
throughout all hedging activity as the hedged item and hedging instrument are of
the same type and currency. The hedges employed mitigate identified risks and
have consistently demonstrated close economic relationships. Ineffectiveness
between the hedged item and hedging instrument are immaterial in the overall
context of the Group.
The main risks attaching to the Group\u2019s financial instruments are interest rate
risk, foreign currency risk, credit risk, liquidity risk and commodity price risk. The
Board reviews and agrees policies for the prudent management of each of these
risks as documented below.
Interest rate risk
The Group\u2019s exposure to market risk for changes in interest rates stems
predominantly from its long-term debt obligations. Interest cost is managed using
a mix of fixed and floating rate debt. With the objective of managing this mix in a
cost-efficient manner, the Group enters into interest rate swaps, under which the
Group contracts to exchange, at predetermined intervals, the difference between
fixed and variable interest amounts calculated by reference to a pre-agreed
notional principal. Such contracts enable the Group to mitigate the risk of
changing interest rates on the fair value of issued fixed rate debt and the cash
flow exposures of issued floating rate debt.
These swaps are designated under IFRS 9 to hedge underlying debt obligations
and qualify for hedge accounting treatment.
The Group applies hedge accounting where there is an economic relationship
between the hedged item and the hedging instrument. The existence of an
economic relationship is determined initially by comparing the critical terms of the
hedging instrument and those of the hedged item and it is prospectively
assessed using linear regression analysis. The Group issues fixed rate debt and
may enter into interest rate swaps with critical terms that match those of the debt
and on a 1:1 hedge ratio basis. The hedge ratio is determined by comparing the
notional amount of the derivative with the notional amount of the debt. The
hedge relationship is designated for the full term and notional value of the debt.
22. Capital and Financial Risk Management continued
Whilst interest rate increases observed in the markets in which the Group
operates were in the range of 2%-4.5% during 2022, the following table
demonstrates the impact on profit before tax as a result of incremental changes
of 1%\u00a0in the interest rates applicable to floating rate net debt, which operate in a
linear manner, with all other variables held constant. These impacts are
calculated based on the closing balance sheet floating rate net debt for a full year
and assume that all floating interest rates change by the same amount.
| | |
Percentage change in cost of borrowings (i) | | |
Impact on profit before tax | | |
| | |
| | |
(i)\u00a0 \u00a0 Sensitivity analysis for exchange rates has been presented for continuing
operations only.
Financial instruments include deposits, money market funds, commercial paper,
bank loans, medium-term notes and other fixed term debt, interest rate swaps,
commodity swaps and foreign exchange contracts. They exclude trade
receivables and trade payables on the basis that they are denominated in the
currency of the underlying operations. The Group minimises the impact of
movements in foreign exchange rates on the Group\u2019s income statement through
matching where possible, foreign currency monetary assets and liabilities or the
use of derivative contracts at an entity level.
Credit/counterparty risk
In addition to cash at bank and in hand, the Group holds significant cash
balances which are invested on a short-term basis and are classified as cash
equivalents (see note 23). These deposits, investments and other financial
instruments (principally certain derivatives and loans and receivables included
within financial assets) give rise to credit risk on amounts due from counterparty
financial institutions (stemming from their insolvency or a downgrade in their
credit ratings). Credit risk is managed by limiting the aggregate amount and
duration of exposure to any one counterparty primarily depending on its credit
rating and by regular review of these ratings and internal treasury policies.
Acceptable credit ratings for deposits and other financial instruments are higher
investment-grade ratings\u2014in general, counterparties have ratings of A3/A-/A- or
higher from at least two of Moody\u2019s/ Standard & Poor\u2019s/Fitch ratings agencies.
The maximum exposure arising in the event of default on the part of the
counterparty (including insolvency) is the carrying value of the relevant financial
instrument.
Credit rating of counterparty (Moody\u2019s/Standard & Poor\u2019s/Fitch)
Money market liquidity funds are managed by external third-party fund
managers to maintain Aaa/AAA long-term ratings and P1/A1 short-term ratings
from Moody\u2019s/Standard & Poor\u2019s. The Group limits its investment in each fund
to a prescribed maximum amount or 5% of the fund\u2019s assets under
management, whichever is the lower. The Group has a number of managed
investment funds that hold fixed income euro securities with an average credit
quality of Aaa/AAA. As at 31\u00a0December 2022, 95% (2021: 65%) of cash and
cash equivalents was held with higher investment grade bank counterparties,
and 5% (2021: 35%) with the money market funds.
Credit risk arising in the context of the Group\u2019s operations is not significant with
the total loss allowance at the balance sheet date amounting to 3.1% of gross
trade receivables and construction contract assets (2021: 3.2%). Information in
relation to the Group\u2019s credit risk management of trade receivables is provided in
note 17. Amounts receivable from related parties (notes 17 and 32) are
immaterial. Factoring arrangements and supplier financing arrangements are
employed in certain of the Group\u2019s operations where deemed to be of benefit by
operational management and are deemed immaterial.
In its worldwide insurance programme, the Group carries appropriate levels of
insurance for typical business risks (including product liability) with various leading
insurance companies. However, in the event of the failure of one or more of its
insurance counterparties, the Group could be impacted by losses where
recovery from such counterparties is not possible.
Liquidity risk
The principal liquidity risks faced by the Group stem from the maturation of debt
obligations and derivative transactions. A downgrade of CRH\u2019s credit ratings may
give rise to increases in funding costs in respect of future debt and may impair
the Group\u2019s ability to raise funds on acceptable terms. The Group\u2019s corporate
treasury function ensures that sufficient resources are available to meet such
liabilities as they fall due through a combination of cash and cash equivalents,
cash flows and undrawn committed bank facilities. Flexibility in funding sources is
achieved through a variety of means including (i) maintaining cash and cash
equivalents only with a diverse group of highly-rated counterparties; (ii) limiting
the annual maturity of such balances; (iii) borrowing the bulk of the Group\u2019s debt
requirements under committed bank lines or other term financing; and (iv) having
surplus committed lines of credit.
The undrawn committed facilities available to the Group as at the balance sheet
date are quantified in note 24; these facilities span a wide number of highly-rated
financial institutions thus minimising any potential exposure arising from
concentrations in borrowing sources. The repayment schedule (analysed by
maturity date) applicable to the Group\u2019s outstanding interest-bearing loans and
borrowings as at the balance sheet date is also presented in note 24.
The Group\u2019s \u20ac1.5\u00a0billion Euro Commercial Paper Programme and $2.0\u00a0billion
US Dollar Commercial Paper Programme means we have framework
programmes in place in the money markets that allow the Group to issue in the
relevant markets within a short period of time.
Commodity price risk
The principal commodity price risks are identified in a variety of highly probable
and active commodity contracts where a significant part of the price to be paid
relies on a reference to specific floating price indices (usually US Dollar) for a
specific period. Programmes are in place to hedge the quantities and qualities of
commodity products, including fuel oil and related products, electricity and
carbon credits. The aim of the programmes is to neutralise the variability in the
Consolidated Income Statement as a result of changes in associated commodity
indices over a timeframe of approximately two years (2021: four years). A hedge
ratio of 1:1 is established. Fixed price swap contracts in the entity\u2019s operating
currency are used to hedge the same specific floating index risk and currency
risk where it is determined that those risks are better managed at a fixed price
rather than being exposed to uncontrollable price fluctuations due to the floating
price index element of the contract. Sources of ineffectiveness can relate to
timing of cash flows and counterparty credit risk adjustments. The derivative
contracts qualify for cash flow hedge accounting under IFRS 9 and the fair values
by maturity are set out in note 25.
The notional and fair values in respect of derivative contracts as at 31\u00a0December
2022 and 31\u00a0December 2021 were as follows:
Profile of commodity products
| | | | | |
| As at 31\u00a0December 2022 | | As at 31\u00a0December 2021 |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Fuel oil and related products | | | | | |
| | | | | |
Money market liquidity funds are managed by external third-party fund
managers to maintain Aaa/AAA long-term ratings and P1/A1 short-term ratings
from Moody\u2019s/Standard & Poor\u2019s. The Group limits its investment in each fund
to a prescribed maximum amount or 5% of the fund\u2019s assets under
management, whichever is the lower. The Group has a number of managed
investment funds that hold fixed income euro securities with an average credit
quality of Aaa/AAA. As at 31\u00a0December 2022, 95% (2021: 65%) of cash and
cash equivalents was held with higher investment grade bank counterparties,
and 5% (2021: 35%) with the money market funds.
Credit risk arising in the context of the Group\u2019s operations is not significant with
the total loss allowance at the balance sheet date amounting to 3.1% of gross
trade receivables and construction contract assets (2021: 3.2%). Information in
relation to the Group\u2019s credit risk management of trade receivables is provided in
note 17. Amounts receivable from related parties (notes 17 and 32) are
immaterial. Factoring arrangements and supplier financing arrangements are
employed in certain of the Group\u2019s operations where deemed to be of benefit by
operational management and are deemed immaterial.
In its worldwide insurance programme, the Group carries appropriate levels of
insurance for typical business risks (including product liability) with various leading
insurance companies. However, in the event of the failure of one or more of its
insurance counterparties, the Group could be impacted by losses where
recovery from such counterparties is not possible.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
Liquidity risk
The principal liquidity risks faced by the Group stem from the maturation of debt
obligations and derivative transactions. A downgrade of CRH\u2019s credit ratings may
give rise to increases in funding costs in respect of future debt and may impair
the Group\u2019s ability to raise funds on acceptable terms. The Group\u2019s corporate
treasury function ensures that sufficient resources are available to meet such
liabilities as they fall due through a combination of cash and cash equivalents,
cash flows and undrawn committed bank facilities. Flexibility in funding sources is
achieved through a variety of means including (i) maintaining cash and cash
equivalents only with a diverse group of highly-rated counterparties; (ii) limiting
the annual maturity of such balances; (iii) borrowing the bulk of the Group\u2019s debt
requirements under committed bank lines or other term financing; and (iv) having
surplus committed lines of credit.
The undrawn committed facilities available to the Group as at the balance sheet
date are quantified in note 24; these facilities span a wide number of highly-rated
financial institutions thus minimising any potential exposure arising from
concentrations in borrowing sources. The repayment schedule (analysed by
maturity date) applicable to the Group\u2019s outstanding interest-bearing loans and
borrowings as at the balance sheet date is also presented in note 24.
The Group\u2019s \u20ac1.5\u00a0billion Euro Commercial Paper Programme and $2.0\u00a0billion
US Dollar Commercial Paper Programme means we have framework
programmes in place in the money markets that allow the Group to issue in the
relevant markets within a short period of time.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
23. Cash and Cash Equivalents
Cash and cash equivalents balances are spread across a wide number of highly-rated financial institutions. The credit risk attaching to these items is documented in
note 22. Cash and cash equivalents are included in the Consolidated Balance Sheet and are analysed as follows:
| | |
| | |
| | |
| | |
Investments (short-term deposits) | | |
| | |
Cash at bank earns/pays interest at floating rates based on daily deposit bank rates. Short-term deposits, which include bank and money market deposits, are made
for varying periods of between one day and three months depending on the immediate cash requirements of the Group, earning interest at the respective short-term
deposit rates.
Money market deposits are held at fair value through profit and loss and are Level 1 instruments. The fair values of money market deposits are calculated by multiplying
the net asset value per share by the investment held at the balance sheet date.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
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},
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"value": "
25. Derivative Financial Instruments
The fair values of derivative financial instruments are analysed by year of maturity and by accounting designation as follows:
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Within one year - current assets | | | | | |
| | | | | |
Between one and two years | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Within one year - current liabilities | | | | | |
| | | | | |
Between two and three years | | | | | |
| | | | | |
| | | | | |
| | | | | |
Total derivative liabilities | | | | | |
| | | | | |
Net (liability)/asset arising on derivative financial instruments | | | | | |
The equivalent disclosure for the prior year is as follows: | | | | | |
| | | | | |
| | | | | |
Within one year - current assets | | | | | |
| | | | | |
Between one and two years | | | | | |
Between three and four years | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Within one year - current liabilities | | | | | |
| | | | | |
Total derivative liabilities | | | | | |
| | | | | |
Net asset/(liability) arising on derivative financial instruments | | | | | |
At 31\u00a0December 2022 and 2021, the Group had no master netting or similar
arrangements, no collateral posting requirements, or enforceable right of set-off
agreements with any of its derivative counterparts.
Fair value hedges consist of interest rate swaps. These instruments hedge risks
arising from changes in asset/liability fair values due to interest rate movements.
Cash flow hedges consist of currency forwards, currency swaps, commodity
forwards and commodity swaps. These instruments hedge risks arising to future
cash flows from movements in foreign exchange rates and commodity prices.
Cash flow hedges are expected to affect profit and loss over the period to
maturity.
Net investment hedges comprise of currency forwards and currency swaps and
hedge changes in the value of net investments due to currency movements.
The profit/(loss) arising on fair value hedges, cash flow hedges, and related hedged items reflected in the Consolidated Income Statement is shown below:
| | | |
| | | |
| | | |
Fair value hedges and related hedged items | | | |
Movement in cumulative fair value of the hedge adjustment of hedge instruments | | | |
Movement in cumulative fair value of the hedge adjustment of hedged items | | | |
Components of other comprehensive income - cash flow hedges | | | |
Fair value gain/(loss) arising on hedging instruments: | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Assets measured at fair value | | | |
Fair value hedges - interest rate swaps | | | |
Cash flow hedges - currency forwards, currency swaps, commodity forwards and commodity swaps | | | |
Net investment hedges - currency forwards and currency swaps | | | |
Not designated as hedges (classified as held for trading) - currency forwards and currency swaps | | | |
| | | |
Liabilities measured at fair value | | | |
Fair value hedges - interest rate swaps | | | |
Cash flow hedges - currency forwards, currency swaps, commodity forwards and commodity swaps | | | |
Net investment hedges - currency forwards and currency swaps | | | |
Not designated as hedges (classified as held for trading) - currency forwards and currency swaps | | | |
| | | |
At 31\u00a0December 2022 and 2021 there were no derivatives valued using Level 1 or Level 3 fair value techniques. | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory",
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"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zMDEvZnJhZzoxM2U4MGIyMmVjMmI0YTM4YmQyODI5YzJiYjAxMjAyZC90ZXh0cmVnaW9uOjEzZTgwYjIyZWMyYjRhMzhiZDI4MjljMmJiMDEyMDJkXzE5MjQxNDUzNDg5Njk0_4071a1bc-ddf5-433c-ad8c-53673831e79d": {
"value": "
The fair values of derivative financial instruments are analysed by year of maturity and by accounting designation as follows:
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Within one year - current assets | | | | | |
| | | | | |
Between one and two years | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Within one year - current liabilities | | | | | |
| | | | | |
Between two and three years | | | | | |
| | | | | |
| | | | | |
| | | | | |
Total derivative liabilities | | | | | |
| | | | | |
Net (liability)/asset arising on derivative financial instruments | | | | | |
The equivalent disclosure for the prior year is as follows: | | | | | |
| | | | | |
| | | | | |
Within one year - current assets | | | | | |
| | | | | |
Between one and two years | | | | | |
Between three and four years | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Within one year - current liabilities | | | | | |
| | | | | |
Total derivative liabilities | | | | | |
| | | | | |
Net asset/(liability) arising on derivative financial instruments | | | | | |
At 31\u00a0December 2022 and 2021, the Group had no master netting or similar
arrangements, no collateral posting requirements, or enforceable right of set-off
agreements with any of its derivative counterparts.
Fair value hedges consist of interest rate swaps. These instruments hedge risks
arising from changes in asset/liability fair values due to interest rate movements.
Cash flow hedges consist of currency forwards, currency swaps, commodity
forwards and commodity swaps. These instruments hedge risks arising to future
cash flows from movements in foreign exchange rates and commodity prices.
Cash flow hedges are expected to affect profit and loss over the period to
maturity.
Net investment hedges comprise of currency forwards and currency swaps and
hedge changes in the value of net investments due to currency movements.
The profit/(loss) arising on fair value hedges, cash flow hedges, and related hedged items reflected in the Consolidated Income Statement is shown below:
| | | |
| | | |
| | | |
Fair value hedges and related hedged items | | | |
Movement in cumulative fair value of the hedge adjustment of hedge instruments | | | |
Movement in cumulative fair value of the hedge adjustment of hedged items | | | |
Components of other comprehensive income - cash flow hedges | | | |
Fair value gain/(loss) arising on hedging instruments: | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Assets measured at fair value | | | |
Fair value hedges - interest rate swaps | | | |
Cash flow hedges - currency forwards, currency swaps, commodity forwards and commodity swaps | | | |
Net investment hedges - currency forwards and currency swaps | | | |
Not designated as hedges (classified as held for trading) - currency forwards and currency swaps | | | |
| | | |
Liabilities measured at fair value | | | |
Fair value hedges - interest rate swaps | | | |
Cash flow hedges - currency forwards, currency swaps, commodity forwards and commodity swaps | | | |
Net investment hedges - currency forwards and currency swaps | | | |
Not designated as hedges (classified as held for trading) - currency forwards and currency swaps | | | |
| | | |
At 31\u00a0December 2022 and 2021 there were no derivatives valued using Level 1 or Level 3 fair value techniques. | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zMDEvZnJhZzoxM2U4MGIyMmVjMmI0YTM4YmQyODI5YzJiYjAxMjAyZC90ZXh0cmVnaW9uOjEzZTgwYjIyZWMyYjRhMzhiZDI4MjljMmJiMDEyMDJkXzE5MjQxNDUzNDg5Njk0_87d9d8aa-8086-4c73-98ba-843ddd9a4602": {
"value": "
The fair values of derivative financial instruments are analysed by year of maturity and by accounting designation as follows:
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Within one year - current assets | | | | | |
| | | | | |
Between one and two years | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Within one year - current liabilities | | | | | |
| | | | | |
Between two and three years | | | | | |
| | | | | |
| | | | | |
| | | | | |
Total derivative liabilities | | | | | |
| | | | | |
Net (liability)/asset arising on derivative financial instruments | | | | | |
The equivalent disclosure for the prior year is as follows: | | | | | |
| | | | | |
| | | | | |
Within one year - current assets | | | | | |
| | | | | |
Between one and two years | | | | | |
Between three and four years | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Within one year - current liabilities | | | | | |
| | | | | |
Total derivative liabilities | | | | | |
| | | | | |
Net asset/(liability) arising on derivative financial instruments | | | | | |
At 31\u00a0December 2022 and 2021, the Group had no master netting or similar
arrangements, no collateral posting requirements, or enforceable right of set-off
agreements with any of its derivative counterparts.
Fair value hedges consist of interest rate swaps. These instruments hedge risks
arising from changes in asset/liability fair values due to interest rate movements.
Cash flow hedges consist of currency forwards, currency swaps, commodity
forwards and commodity swaps. These instruments hedge risks arising to future
cash flows from movements in foreign exchange rates and commodity prices.
Cash flow hedges are expected to affect profit and loss over the period to
maturity.
Net investment hedges comprise of currency forwards and currency swaps and
hedge changes in the value of net investments due to currency movements.
The profit/(loss) arising on fair value hedges, cash flow hedges, and related hedged items reflected in the Consolidated Income Statement is shown below:
| | | |
| | | |
| | | |
Fair value hedges and related hedged items | | | |
Movement in cumulative fair value of the hedge adjustment of hedge instruments | | | |
Movement in cumulative fair value of the hedge adjustment of hedged items | | | |
Components of other comprehensive income - cash flow hedges | | | |
Fair value gain/(loss) arising on hedging instruments: | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Assets measured at fair value | | | |
Fair value hedges - interest rate swaps | | | |
Cash flow hedges - currency forwards, currency swaps, commodity forwards and commodity swaps | | | |
Net investment hedges - currency forwards and currency swaps | | | |
Not designated as hedges (classified as held for trading) - currency forwards and currency swaps | | | |
| | | |
Liabilities measured at fair value | | | |
Fair value hedges - interest rate swaps | | | |
Cash flow hedges - currency forwards, currency swaps, commodity forwards and commodity swaps | | | |
Net investment hedges - currency forwards and currency swaps | | | |
Not designated as hedges (classified as held for trading) - currency forwards and currency swaps | | | |
| | | |
At 31\u00a0December 2022 and 2021 there were no derivatives valued using Level 1 or Level 3 fair value techniques. | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zMTMvZnJhZzpiODMxMDZiNmIzMzc0ODkzYTRkNjUyMmRlNzc5ODZmNS90ZXh0cmVnaW9uOmI4MzEwNmI2YjMzNzQ4OTNhNGQ2NTIyZGU3Nzk4NmY1XzE5MjQxNDUzNDkwMTY1_db4a2103-de27-48d6-b90b-ba353994d611": {
"value": "
27. Deferred Income Tax
| | |
The deductible and taxable temporary differences in respect of which deferred tax has been recognised are as follows: |
| | |
| | |
Reported in balance sheet after offset | | |
| | |
| | |
Net deferred income tax liability | | |
Deferred income tax assets (deductible temporary differences) | | |
Deficits on Group retirement benefit schemes | | |
Revaluation of derivative financial instruments to fair value | | |
Tax loss carryforwards (primarily income tax losses) | | |
Share-based payment expense | | |
Provisions for liabilities, inventories, receivables and payables | | |
| | |
Other deductible temporary differences | | |
| | |
Deferred income tax assets have been recognised in respect of all deductible temporary differences, with the exception of some tax loss carryforwards. The amount of
tax losses where recovery is not probable and is therefore not recognised in the Consolidated Balance Sheet is $1.2 billion (2021: $1.2 billion). The vast majority either
do not expire based on current tax legislation or they expire post 2027 (2021: 2026). Of the losses not recognised in the Consolidated Balance Sheet, $0.1 billion
(2021: $0.1 billion) expire within five years, $0.2 billion (2021: $0.4 billion) expire post five years and the remainder of losses do not expire.
| | |
Deferred income tax liabilities (taxable temporary differences) | |
Taxable temporary differences principally attributable to accelerated tax depreciation and fair value adjustments arising on acquisition (i) | | |
Leased right-of-use assets | | |
Investment in subsidiaries | | |
Surpluses on Group retirement benefit schemes | | |
Revaluation of derivative financial instruments to fair value | | |
Rolled-over capital gains | | |
| | |
Investments in subsidiaries
The aggregate temporary differences in relation to investments in subsidiaries for which deferred tax liabilities have not been recognised is $14.5 billion (2021: $12.1
billion) given the Group is in a position to control the timing of reversal and management\u2019s intention not to unwind these temporary differences. Participation exemptions
and tax credits are available in the majority of jurisdictions in which the Group operates. A deferred tax liability has been recognised in respect of any temporary
differences relating to investments in subsidiaries expected to unwind in the foreseeable future.
| | |
Movement in net deferred income tax liability | |
| | |
| | |
Net (income)/expense for the year (ii) | | |
Arising on acquisition (note 30) | | |
| | |
Movement in deferred tax recognised in the Consolidated Statement of Comprehensive Income | | |
Movement in deferred tax recognised in the Consolidated Statement of Changes in Equity | | |
| | |
(i)Fair value adjustments arising on acquisition principally relate to property, plant and equipment.
(ii)The net (income)/expense includes income of $74 million (2021: expense of $5 million; 2020: expense of $3 million) relating to discontinued operations.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNDAvZnJhZzo2OGQzZDUyNjllMDg0NjNiOTlmOTgxMzEyN2E1Zjc3YS90ZXh0cmVnaW9uOjY4ZDNkNTI2OWUwODQ2M2I5OWY5ODEzMTI3YTVmNzdhXzE5MjQxNDUzNTA2MjQ1_09b75f5d-e336-45bc-8546-23996673fa15": {
"value": "
29. Share Capital and Reserves
| | | | |
| | | |
| Ordinary Shares of \u20ac0.32 each (i) | | Ordinary Shares of \u20ac0.32 each (i) | Income Shares of \u20ac0.02 each |
| | | | |
| | | | |
Cancellation of Income Shares (ii) | | | | |
| | | | |
| | | | |
Number of Shares at 1 January (millions) | | | | |
Cancellation of Income Shares (ii) | | | | |
Number of Shares at 31 December (millions) | | | | |
Allotted, called-up and fully paid | | | | |
| | | | |
Cancellation of Income Shares (ii) | | | | |
Cancellation of Treasury Shares (iii) | | | | |
| | | | |
The movement in the number of shares (expressed in millions) during the financial year was as follows: | | | |
| | | | |
Cancellation of Income Shares (ii) | | | | |
Cancellation of Treasury Shares (iii) | | | | |
| | | | |
Preference Shares
of \u20ac1.27 each
| | | | | |
| | | | | |
| | | | | |
At 1 January 2022 and 31\u00a0December 2022 | | | | | |
Allotted, called-up and fully paid | | | | | |
At 1 January 2022 and 31\u00a0December 2022 | | | | | |
There was no movement in the number of cumulative preference shares in either the current or the prior year.
The holders of the 5% Cumulative Preference Shares are entitled to a fixed cumulative preference dividend at a rate of 5% per annum and priority in a winding-up to
repayment of capital, but have no further right to participate in profits or assets and are not entitled to be present or vote at general meetings unless their dividend is in
arrears. Dividends on the 5% Cumulative Preference Shares are payable half-yearly on 15 April and 15 October in each year. The 5% Cumulative Preference Shares
represent 0.03% of the total issued share capital as at 31\u00a0December 2022 (2021: 0.03%).
The holders of the 7% \u2018A\u2019 Cumulative Preference Shares are entitled to a fixed cumulative preference dividend at a rate of 7% per annum, and subject to the rights of
the holders of the 5% Cumulative Preference Shares, priority in a winding-up to repayment of capital, but have no further right to participate in profits or assets and are
not entitled to be present or vote at general meetings unless their dividend is in arrears or unless the business of the meeting includes certain matters, which are
specified in the Articles of Association. Dividends on the 7% \u2018A\u2019 Cumulative Preference Shares are payable half-yearly on 5 April and 5 October in each year. The 7% \u2018A\u2019
Cumulative Preference Shares represent 0.45% of the total issued share capital as at 31\u00a0December 2022 (2021: 0.44%).
| | |
Treasury Shares/own shares | | |
| | |
| | |
Own Shares released by the Employee Benefit Trust under the 2014 Performance Share Plan | | |
Shares acquired by CRH plc (Treasury Shares) (i) | | |
Shares acquired by Employee Benefit Trust (own shares) | | |
Treasury Shares/own shares reissued (ii) | | |
Cancellation of Treasury Shares | | |
| | |
Notes (i) to (ii) are set out overleaf. | | |
At 31\u00a0December 2022 a financial liability of $281 million (2021: $281 million) was included in other payables in respect of the latest phase of the Programme which was
entered into with Bank of America. This phase will end no later than 30 March 2023. Subsequent to year end, the Board approved the Group\u2019s intention to increase its
share buyback programme through the repurchase of up to $3\u00a0billion of CRH shares over the next 12 months subject to market conditions prevailing at the time and on
the formal Shareholder approval of the share buyback authority at the AGM.
| | |
| | |
| | |
| | |
Reduction of share premium (iv) | | |
| | |
(iv)Pursuant to a special resolution approved by shareholders at the Annual General Meeting of the Company held on 29 April 2021 and the subsequent order of the
High Court of Ireland made on 3 June 2021, the capital of the Company was reduced by the entire amount standing to the credit of the Company\u2019s share premium
account as at 31 December 2020, with the reserve resulting from the reduction being treated as profits available for distribution as defined by Section 117 of the
Companies Act 2014. A copy of the aforementioned order of the High Court was filed with the Companies Registration Office in Ireland on 3 June 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNDAvZnJhZzo2OGQzZDUyNjllMDg0NjNiOTlmOTgxMzEyN2E1Zjc3YS90ZXh0cmVnaW9uOjY4ZDNkNTI2OWUwODQ2M2I5OWY5ODEzMTI3YTVmNzdhXzE5MjQxNDUzNTA2MjQ4_3eb26f77-c2fe-4fe9-aa24-094759ee9e87": {
"value": "
| | | | |
| | | |
| Ordinary Shares of \u20ac0.32 each (i) | | Ordinary Shares of \u20ac0.32 each (i) | Income Shares of \u20ac0.02 each |
| | | | |
| | | | |
Cancellation of Income Shares (ii) | | | | |
| | | | |
| | | | |
Number of Shares at 1 January (millions) | | | | |
Cancellation of Income Shares (ii) | | | | |
Number of Shares at 31 December (millions) | | | | |
Allotted, called-up and fully paid | | | | |
| | | | |
Cancellation of Income Shares (ii) | | | | |
Cancellation of Treasury Shares (iii) | | | | |
| | | | |
The movement in the number of shares (expressed in millions) during the financial year was as follows: | | | |
| | | | |
Cancellation of Income Shares (ii) | | | | |
Cancellation of Treasury Shares (iii) | | | | |
| | | | |
At 31\u00a0December 2022 a financial liability of $281 million (2021: $281 million) was included in other payables in respect of the latest phase of the Programme which was
entered into with Bank of America. This phase will end no later than 30 March 2023. Subsequent to year end, the Board approved the Group\u2019s intention to increase its
share buyback programme through the repurchase of up to $3\u00a0billion of CRH shares over the next 12 months subject to market conditions prevailing at the time and on
the formal Shareholder approval of the share buyback authority at the AGM.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNDkvZnJhZzpmNzVlZWM1ZWNkNDA0YTA3YmE1NWQ4MjNlZDYwMzFlOS90ZXh0cmVnaW9uOmY3NWVlYzVlY2Q0MDRhMDdiYTU1ZDgyM2VkNjAzMWU5XzE5MjQxNDUzNTA2NjMw_55b90312-92c0-41e9-80c6-c65085d8999b": {
"value": "
30. Business Combinations
The acquisitions completed during the year ended 31\u00a0December 2022 by reportable segment, together with the completion dates, are detailed below; these
transactions entailed the acquisition of an effective 100% stake except where indicated to the contrary:
Americas Materials:
Alabama: North Alabama Paving, Inc. (30 June);
Arkansas: Marion County Paving (18 March);
Colorado: Granby Sand & Gravel (31 March);
Florida: certain assets of Kudzue 3 Trucking, Inc. (11 March);
Kentucky: Hinkle Contracting, LLC (13 May);
Mississippi: Krystal Gravel, Inc. (23 December);
Texas: LD Construction Company and PTSS Investments, LLC (2 December) and Moore Brothers Construction Company (16 December);
Utah: Chapman Construction (16 December); and
West Virginia: Jefferson Asphalt Products Company (23 September).
Building Products:
Substantial Acquisition: on 8 July, CRH acquired Barrette Outdoor Living, Inc. (Barrette), North America's leading provider of residential fencing and railing solutions
headquartered in Middleburg Heights, Ohio, US. The assets acquired are all in the US and are expected to enhance our existing offering of sustainable outdoor living
solutions in North America.
Americas
California: Calstone Company (29 March);
Ohio: Normandy Industries, Inc. (21 October);
South Carolina: Sterling Sand, LLC (19 October);
Texas: certain assets of Rinker Materials (18 April); Soil Mender Products (25 July); and Inwesco, Inc. (12 December); and
West Virginia: Grant County Mulch, Inc. (19 December).
Other
Ireland: RS Sockets Ltd. (15 December); and
Poland: certain assets of Libet Company (2 September).
Europe Materials:
Croatia: Thermostone (1 April);
Denmark: Confac Holdings A/S (1 April) and Gunderup (1 December);
Finland: Terrawise Oy Stone Aggregates (31 May);
Poland: Mabau Group (75%, 21 March);
Romania: certain assets of SUT-ICIM and Irca SRL (23 February) and Simbeton SRL (29 July); and
Slovakia: certain assets of U.S. Steel Ko\u0161ice, s.r.o. (1 January) and certain assets of COLAS Slovakia, a.s. (10 January).
The identifiable net assets acquired, including adjustments to provisional fair values, were as follows:
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Property, plant and equipment | | | | | |
| | | | | |
Equity accounted investments | | | | | |
| | | | | |
| | | | | |
| | | | | |
Trade and other receivables (ii) | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
Provisions for liabilities | | | | | |
| | | | | |
Interest-bearing loans and borrowings | | | | | |
Current income tax liabilities | | | | | |
Deferred income tax liabilities | | | | | |
| | | | | |
| | | | | |
Total identifiable net assets at fair value | | | | | |
Goodwill arising on acquisition (iii) | | | | | |
| | | | | |
Consideration satisfied by: | | | | | |
| | | | | |
Deferred consideration (stated at net present cost) | | | | | |
| | | | | |
| | | | | |
Net cash outflow arising on acquisition | | | | | |
| | | | | |
Less: cash and cash equivalents acquired | | | | | |
Total outflow in the Consolidated Statement of Cash Flows | | | | | |
Notes (i) to (iii) are set out overleaf. | | | | | |
(iii)The principal factor contributing to the recognition of goodwill on acquisitions entered into by the Group is the realisation of cost savings and other synergies with
existing entities in the Group which do not qualify for separate recognition as intangible assets. $1,289 million of the goodwill recognised in respect of acquisitions
completed in 2022 is expected to be deductible for tax purposes (2021: $284 million; 2020: $148 million).
| | | |
Acquisition-related costs | | | |
| | | |
| | | |
| | | |
| | | |
The above acquisition-related costs, which exclude post-acquisition integration costs, have been included in operating costs in the Consolidated Income Statement
(note 4).
The following table analyses the 29 acquisitions completed in 2022 (2021: 20 acquisitions; 2020: 17 acquisitions) by reportable segment and provides details of the
goodwill and consideration figures arising in each of those segments:
| | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Group from continuing operations | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Building Products - Building Envelope | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Adjustments to provisional fair values of prior year acquisitions | | | | | | | | | | | |
| | | | | | | | | | | |
The post-acquisition impact of acquisitions completed during the year on the Group\u2019s profit for the financial year was as follows:
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
(Loss)/profit before tax for the financial year | | | | | |
The revenue and profit of the Group for the financial year determined in accordance with IFRS as though the acquisitions effected during the year had been at the
beginning of the year would have been as follows:
| | | |
| | CRH Group excluding 2022 acquisitions | Consolidated Group including acquisitions |
| | | |
| | | |
Profit before tax for the financial year | | | |
There have been no acquisitions completed subsequent to the balance sheet date which would be individually material to the Group, thereby requiring disclosure under
either IFRS 3 or IAS 10 Events after the Balance Sheet Date. Development updates, giving details of acquisitions which do not require separate disclosure on the
grounds of materiality, are published periodically.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zOTE0L2ZyYWc6MTNhYzVjNjU1Y2U3NGQ1MzhiMTcwYTlkZWJlMjE3MDgvdGV4dHJlZ2lvbjoxM2FjNWM2NTVjZTc0ZDUzOGIxNzBhOWRlYmUyMTcwOF8xOTI0MTQ1MzQ5MDE0OA_587cb693-8f47-4883-b416-dc03483b6ea7": {
"value": "
31. Non-controlling Interests
The total non-controlling interest at 31\u00a0December 2022 is $646 million (2021: $681 million) of which $444 million (2021: $498 million) relates to Republic Cement &
Building Materials (RCBM), Inc. and Republic Cement Land & Resources (RCLR), Inc. The non-controlling interests in respect of the Group\u2019s other subsidiaries are not
considered to be material.
| | | |
| | | Economic ownership interest held by non-controlling interest |
Republic Cement & Building Materials, Inc. | Manufacture, development and | | |
and Republic Cement Land & Resources, Inc. | sale of cement and building materials |
The following is summarised financial information for RCBM and RCLR prepared in accordance with IFRS 12 Disclosure of Interests in Other Entities. This information is
before intragroup eliminations with other Group companies.
| | |
| | |
Summarised financial information | | |
(Loss)/profit for the year | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cash flows from operating activities | | |
Loans extended by the Group to joint ventures and associates (see note 15) are included in financial assets. Amounts receivable from and payable to equity accounted
investments (arising from the aforementioned sales and purchases transactions) as at the balance sheet date are included as separate line items in notes 17 and 18 to
the Consolidated Financial Statements.
Terms and conditions of transactions with subsidiaries, joint ventures and associates
In general, the transfer pricing policy implemented by the Group across its subsidiaries is market-based. Sales to and purchases from joint ventures and associates are
conducted in the ordinary course of business and on terms equivalent to those that prevail in arms-length transactions. The outstanding balances included in
receivables and payables as at the balance sheet date in respect of transactions with joint ventures and associates are unsecured and settlement of these arise in cash.
No guarantees have been either requested or provided in relation to related party receivables and payables. Loans to joint ventures and associates (as disclosed in note
15) are extended on normal commercial terms in the ordinary course of business with interest accruing and, in general, paid to the Group at predetermined intervals.
Key management personnel
For the purposes of the disclosure requirements of IAS 24, the term \u201ckey management personnel\u201d (i.e. those persons having authority and responsibility for planning,
directing and controlling the activities of the Company) comprises of the Board of Directors and the Chief Operating Decision Maker (as defined in IFRS 8) which
manage the business and affairs of the Company.
| | | |
Key management remuneration amounted to: | | | |
| | | |
| | | |
| | | |
Share-based payments - calculated in accordance with the principles disclosed in note 8 | | | |
| | | |
Other than these compensation entitlements, there were no other transactions involving key management personnel.
Directors' emoluments and interests
Directors' emoluments (which are included in administrative expenses in note 4) and interests are presented in the Directors' Remuneration Report on pages 108 to
132.
Lease arrangements
CRH has a number of lease arrangements in place with related parties across the Group, which have been negotiated on an arms-length basis at market rates. We do
not consider these arrangements to be material either individually or collectively in the context of the 2022, 2021 and 2020 Consolidated Financial Statements.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNjQvZnJhZzowM2ZiODMwOWI1ZGE0YjI2OTdkNjk5YmQxN2RkNTlmNy90ZXh0cmVnaW9uOjAzZmI4MzA5YjVkYTRiMjY5N2Q2OTliZDE3ZGQ1OWY3XzE5MjQxNDUzNDk1NzQ1_6adb38df-b1a7-46dd-ad54-f74e4f29e6f1": {
"value": "
Subsidiaries, joint ventures and associates
The Consolidated Financial Statements include the financial statements of the Company (CRH plc, the ultimate parent) and its subsidiaries as well as its joint ventures
and associates accounted for by applying the equity method as outlined in the accounting policies on pages 181 to 190. The Group\u2019s principal subsidiaries, joint
ventures and associates are disclosed on pages 290 to 293.
Sales to and purchases from joint ventures and associates are as follows:
Loans extended by the Group to joint ventures and associates (see note 15) are included in financial assets. Amounts receivable from and payable to equity accounted
investments (arising from the aforementioned sales and purchases transactions) as at the balance sheet date are included as separate line items in notes 17 and 18 to
the Consolidated Financial Statements.
Terms and conditions of transactions with subsidiaries, joint ventures and associates
In general, the transfer pricing policy implemented by the Group across its subsidiaries is market-based. Sales to and purchases from joint ventures and associates are
conducted in the ordinary course of business and on terms equivalent to those that prevail in arms-length transactions. The outstanding balances included in
receivables and payables as at the balance sheet date in respect of transactions with joint ventures and associates are unsecured and settlement of these arise in cash.
No guarantees have been either requested or provided in relation to related party receivables and payables. Loans to joint ventures and associates (as disclosed in note
15) are extended on normal commercial terms in the ordinary course of business with interest accruing and, in general, paid to the Group at predetermined intervals.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNjQvZnJhZzowM2ZiODMwOWI1ZGE0YjI2OTdkNjk5YmQxN2RkNTlmNy90ZXh0cmVnaW9uOjAzZmI4MzA5YjVkYTRiMjY5N2Q2OTliZDE3ZGQ1OWY3XzE5MjQxNDUzNDk1NzQ1_7ed18c13-5fd3-40fa-9bbe-210e68c9b16a": {
"value": "
Subsidiaries, joint ventures and associates
The Consolidated Financial Statements include the financial statements of the Company (CRH plc, the ultimate parent) and its subsidiaries as well as its joint ventures
and associates accounted for by applying the equity method as outlined in the accounting policies on pages 181 to 190. The Group\u2019s principal subsidiaries, joint
ventures and associates are disclosed on pages 290 to 293.
Sales to and purchases from joint ventures and associates are as follows:
Loans extended by the Group to joint ventures and associates (see note 15) are included in financial assets. Amounts receivable from and payable to equity accounted
investments (arising from the aforementioned sales and purchases transactions) as at the balance sheet date are included as separate line items in notes 17 and 18 to
the Consolidated Financial Statements.
Terms and conditions of transactions with subsidiaries, joint ventures and associates
In general, the transfer pricing policy implemented by the Group across its subsidiaries is market-based. Sales to and purchases from joint ventures and associates are
conducted in the ordinary course of business and on terms equivalent to those that prevail in arms-length transactions. The outstanding balances included in
receivables and payables as at the balance sheet date in respect of transactions with joint ventures and associates are unsecured and settlement of these arise in cash.
No guarantees have been either requested or provided in relation to related party receivables and payables. Loans to joint ventures and associates (as disclosed in note
15) are extended on normal commercial terms in the ordinary course of business with interest accruing and, in general, paid to the Group at predetermined intervals.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfJointVenturesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNjQvZnJhZzowM2ZiODMwOWI1ZGE0YjI2OTdkNjk5YmQxN2RkNTlmNy90ZXh0cmVnaW9uOjAzZmI4MzA5YjVkYTRiMjY5N2Q2OTliZDE3ZGQ1OWY3XzE5MjQxNDUzNDk1NzQ1_bc3a25d5-a1ab-40a6-a620-862e0b67fad2": {
"value": "
Subsidiaries, joint ventures and associates
The Consolidated Financial Statements include the financial statements of the Company (CRH plc, the ultimate parent) and its subsidiaries as well as its joint ventures
and associates accounted for by applying the equity method as outlined in the accounting policies on pages 181 to 190. The Group\u2019s principal subsidiaries, joint
ventures and associates are disclosed on pages 290 to 293.
Sales to and purchases from joint ventures and associates are as follows:
Loans extended by the Group to joint ventures and associates (see note 15) are included in financial assets. Amounts receivable from and payable to equity accounted
investments (arising from the aforementioned sales and purchases transactions) as at the balance sheet date are included as separate line items in notes 17 and 18 to
the Consolidated Financial Statements.
Terms and conditions of transactions with subsidiaries, joint ventures and associates
In general, the transfer pricing policy implemented by the Group across its subsidiaries is market-based. Sales to and purchases from joint ventures and associates are
conducted in the ordinary course of business and on terms equivalent to those that prevail in arms-length transactions. The outstanding balances included in
receivables and payables as at the balance sheet date in respect of transactions with joint ventures and associates are unsecured and settlement of these arise in cash.
No guarantees have been either requested or provided in relation to related party receivables and payables. Loans to joint ventures and associates (as disclosed in note
15) are extended on normal commercial terms in the ordinary course of business with interest accruing and, in general, paid to the Group at predetermined intervals.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNjQvZnJhZzowM2ZiODMwOWI1ZGE0YjI2OTdkNjk5YmQxN2RkNTlmNy90ZXh0cmVnaW9uOjAzZmI4MzA5YjVkYTRiMjY5N2Q2OTliZDE3ZGQ1OWY3XzE5MjQxNDUzNDk1NzQz_9645ea8a-a9b4-41c4-863a-2bb19f46e6e2": {
"value": "CRH plc",
"dimensions": {
"concept": "ifrs-full:NameOfUltimateParentOfGroup",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNjQvZnJhZzowM2ZiODMwOWI1ZGE0YjI2OTdkNjk5YmQxN2RkNTlmNy90ZXh0cmVnaW9uOjAzZmI4MzA5YjVkYTRiMjY5N2Q2OTliZDE3ZGQ1OWY3XzE5MjQxNDUzNDk1NzQz_fe45c635-b509-4daa-ab92-98fd6a6d7adb": {
"value": "CRH plc",
"dimensions": {
"concept": "ifrs-full:NameOfParentEntity",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zNjQvZnJhZzowM2ZiODMwOWI1ZGE0YjI2OTdkNjk5YmQxN2RkNTlmNy90ZXh0cmVnaW9uOjAzZmI4MzA5YjVkYTRiMjY5N2Q2OTliZDE3ZGQ1OWY3XzE5MjQxNDUzNDk1NzQ2_acce0582-2457-45e5-957b-4becfa674b12": {
"value": "
Key management personnel
For the purposes of the disclosure requirements of IAS 24, the term \u201ckey management personnel\u201d (i.e. those persons having authority and responsibility for planning,
directing and controlling the activities of the Company) comprises of the Board of Directors and the Chief Operating Decision Maker (as defined in IFRS 8) which
manage the business and affairs of the Company.
| | | |
Key management remuneration amounted to: | | | |
| | | |
| | | |
| | | |
Share-based payments - calculated in accordance with the principles disclosed in note 8 | | | |
| | | |
Other than these compensation entitlements, there were no other transactions involving key management personnel.
Directors' emoluments and interests
Directors' emoluments (which are included in administrative expenses in note 4) and interests are presented in the Directors' Remuneration Report on pages 108 to
132.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8zOTM5L2ZyYWc6ZWQ3YjRlMGUwMWEwNGQ4MThiNjk5MjA3NzczNTBlYWQvdGV4dHJlZ2lvbjplZDdiNGUwZTAxYTA0ZDgxOGI2OTkyMDc3NzM1MGVhZF8xOTI0MTQ1MzQ4NzMzNw_3d538017-3bdb-4c0f-8d38-fd4152aa7851": {
"value": "
33. Board Approval
The Board of Directors approved and authorised for issue the financial statements on pages 176 to 247 in respect of the year ended 31\u00a0December 2022 on 1 March
2023.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTUwMS9mcmFnOjAxNjE5ZWNjMGZiODQ3YmZhYzM3OTY5YzNmNTkzYTdiL3RleHRyZWdpb246MDE2MTllY2MwZmI4NDdiZmFjMzc5NjljM2Y1OTNhN2JfMTkyNDE0NTM0ODk3OTQ_9cce63ed-805b-4b6b-8788-f07166348f35": {
"value": "The Company and its subsidiaries (together the \u2018Group\u2019) is the leading provider of building materials solutions that build, connect and improve our world. As the essential partner for road and critical utility infrastructure, commercial building projects and outdoor living solutions, CRH's unique offering of materials, products and value-added services helps to deliver a more resilient and sustainable built environment.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl8xMTUwMS9mcmFnOjAxNjE5ZWNjMGZiODQ3YmZhYzM3OTY5YzNmNTkzYTdiL3RleHRyZWdpb246MDE2MTllY2MwZmI4NDdiZmFjMzc5NjljM2Y1OTNhN2JfMTkyNDE0NTM0ODk3OTY_38a2f3a0-c0c1-4e36-838a-b3b37b9e8aaa": {
"value": "public limited company",
"dimensions": {
"concept": "ifrs-full:LegalFormOfEntity",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "Ireland",
"dimensions": {
"concept": "ifrs-full:DomicileOfEntity",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"dimensions": {
"concept": "ifrs-full:CountryOfIncorporation",
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"dimensions": {
"concept": "ifrs-full:PrincipalPlaceOfBusiness",
"language": "en",
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}
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"value": "42 Fitzwilliam Square, Dublin 2, Ireland.",
"dimensions": {
"concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity",
"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl80MDQ1L2ZyYWc6M2VmZDRkNWNjMjM5NDYzZmI1ZWI4NzEzNzA3Y2E2YTUvdGV4dHJlZ2lvbjozZWZkNGQ1Y2MyMzk0NjNmYjVlYjg3MTM3MDdjYTZhNV8xOTc5MTIwOTMwODE1MA_172b29fd-aa51-40f5-bb74-bd365d8ea16e": {
"value": "2022-12-31",
"dimensions": {
"concept": "ifrs-full:DateOfEndOfReportingPeriod2013",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjY0YTE4N2YxOGFiYzRhNWQ4N2FkMGNjODc0NWFlNjFmL3NlYzo2NGExODdmMThhYmM0YTVkODdhZDBjYzg3NDVhZTYxZl82NTIvZnJhZzpiMTdmNmVhZDkxOWI0MWY3OTQ0MTBjYzQzNjVmOWQ1Zi90YWJsZTpkYTZjYTExNTllYjc0MjA1OWYyZjY1YjczMzY1ZGVlNi90YWJsZXJhbmdlOmRhNmNhMTE1OWViNzQyMDU5ZjJmNjViNzMzNjVkZWU2XzAtMC0xLTEtOTkyOTQ_d1f4539d-7651-4df6-ab0c-a3b73084d4d1": {
"value": "CRH public limited company",
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"language": "en",
"entity": "scheme:549300MIDJNNTH068E74",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}