Asbestos (Tables)
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12 Months Ended |
Mar. 31, 2018 |
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| Text Block [Abstract] |
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| Asbestos Adjustments |
The Asbestos adjustments included in the consolidated statements of operations and comprehensive income comprise the following:
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Years Ended 31 March |
(Millions of US dollars) |
2018 |
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2017 |
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2016 |
Change in estimates: |
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Change in actuarial estimate - asbestos liability |
$ |
(152.1 |
) |
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$ |
44.7 |
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$ |
2.4 |
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Change in actuarial estimate - insurance receivable |
1.2 |
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(8.2 |
) |
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4.5 |
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Change in estimate - AICF claims-handling costs |
(0.5 |
) |
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2.1 |
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1.2 |
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Subtotal - Change in estimates |
(151.4 |
) |
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38.6 |
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8.1 |
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(Loss) gain on foreign currency exchange |
(3.9 |
) |
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1.8 |
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(2.6 |
) |
Asbestos research and education contribution |
(1.1 |
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— |
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— |
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Total Asbestos Adjustments |
$ |
(156.4 |
) |
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$ |
40.4 |
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$ |
5.5 |
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| Central Estimates, Net of Insurance Recoveries |
The following table sets forth the central estimates, net of insurance recoveries, calculated by KPMGA as of 31 March 2018:
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Year Ended 31 March 2018 |
(Millions of US and Australian dollars, respectively) |
US$ |
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A$ |
Central Estimate – Discounted and Inflated |
1,423.1 |
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1,852.9 |
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Central Estimate – Undiscounted but Inflated |
1,828.6 |
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2,380.9 |
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Central Estimate – Undiscounted and Uninflated |
1,108.2 |
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1,442.9 |
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| Numbers of Open Claims, New Claims and Closed Claims and Average Settlement Per Settled Claim and Case Closed |
The following table shows the activity related to the numbers of open claims, new claims and closed claims during each of the past five years and the average settlement per settled claim and case closed:
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For the Years Ended 31 March |
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2018 |
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2017 |
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2016 |
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2015 |
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2014 |
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Number of open claims at beginning of period |
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352 |
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426 |
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494 |
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466 |
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462 |
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Number of new claims |
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562 |
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557 |
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577 |
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665 |
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608 |
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Number of closed claims |
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578 |
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631 |
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645 |
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637 |
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604 |
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Number of open claims at end of period |
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336 |
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352 |
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426 |
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494 |
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466 |
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Average settlement amount per settled claim |
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A$253,431 |
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A$223,535 |
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A$248,138 |
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A$254,209 |
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A$253,185 |
Average settlement amount per case closed |
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A$217,038 |
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A$167,563 |
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A$218,900 |
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A$217,495 |
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A$212,944 |
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Average settlement amount per settled claim |
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US$196,093 |
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US$168,300 |
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US$182,763 |
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US$222,619 |
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US$236,268 |
Average settlement amount per case closed |
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US$167,934 |
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US$126,158 |
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US$161,229 |
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US$190,468 |
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US$198,716 |
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| Asbestos-Related Assets and Liabilities |
These amounts are detailed in the table below, and the net total of these asbestos-related assets and liabilities is referred to by the Company as the “Net AFFA Liability.”
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31 March |
(Millions of US dollars) |
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2018 |
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2017 |
Asbestos liability – current |
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$ |
(114.1 |
) |
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$ |
(116.4 |
) |
Asbestos liability – non-current |
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(1,101.0 |
) |
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(1,043.3 |
) |
Asbestos liability – Total |
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(1,215.1 |
) |
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(1,159.7 |
) |
Insurance receivable – current |
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5.1 |
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5.7 |
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Insurance receivable – non-current |
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52.8 |
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58.1 |
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Insurance receivable – Total |
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57.9 |
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63.8 |
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Workers’ compensation asset – current |
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2.1 |
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2.9 |
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Workers’ compensation asset – non-current |
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28.8 |
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40.4 |
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Workers’ compensation liability – current |
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(2.1 |
) |
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(2.9 |
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Workers’ compensation liability – non-current |
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(28.8 |
) |
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(40.4 |
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Workers’ compensation – Total |
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— |
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— |
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Loan facility |
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— |
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(52.4 |
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Other net liabilities |
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(2.2 |
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(1.6 |
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Restricted cash and cash equivalents of AICF |
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26.6 |
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108.9 |
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Restricted short-term investments of AICF |
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38.4 |
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— |
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Net Unfunded AFFA liability |
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$ |
(1,094.4 |
) |
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$ |
(1,041.0 |
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Deferred income taxes – non-current |
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382.9 |
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356.6 |
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Income tax payable |
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21.1 |
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16.8 |
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Net Unfunded AFFA liability, net of tax |
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$ |
(690.4 |
) |
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$ |
(667.6 |
) |
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| Summary of Net Unfunded AFFA Liability, Net of Tax |
The following is a detailed rollforward of the Net Unfunded AFFA liability, net of tax, for the year ended 31 March 2018:
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(Millions of US dollars) |
Asbestos
Liability
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Insurance
Receivables
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Other
Loan Facilities
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Restricted
Cash and Investments
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Other
Assets
and Liabilities
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Net Unfunded AFFA Liability |
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Deferred Tax
Assets
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Income
Tax
Payable
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Net Unfunded AFFA Liability, net of tax |
Opening Balance - 31 March 2017 |
$ |
(1,159.7 |
) |
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$ |
63.8 |
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$ |
(52.4 |
) |
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$ |
108.9 |
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$ |
(1.6 |
) |
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$ |
(1,041.0 |
) |
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$ |
356.6 |
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$ |
16.8 |
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$ |
(667.6 |
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Asbestos claims paid1
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103.1 |
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— |
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— |
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(103.1 |
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— |
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— |
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— |
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— |
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— |
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Payment received in accordance with AFFA2
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— |
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— |
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— |
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102.2 |
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— |
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102.2 |
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— |
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— |
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102.2 |
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AICF claims-handling costs incurred (paid) |
1.2 |
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— |
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— |
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(1.2 |
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— |
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— |
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— |
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— |
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— |
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AICF operating costs paid - non claims-handling |
— |
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— |
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— |
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(1.9 |
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— |
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(1.9 |
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— |
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— |
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(1.9 |
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Change in actuarial estimate |
(152.1 |
) |
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(3.3 |
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— |
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— |
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— |
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(155.4 |
) |
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— |
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— |
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(155.4 |
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Change in claims handling cost estimate |
(0.5 |
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— |
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— |
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— |
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— |
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(0.5 |
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— |
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— |
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(0.5 |
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Impact on deferred income tax due to change in actuarial estimate |
— |
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— |
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— |
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— |
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— |
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— |
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47.0 |
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— |
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47.0 |
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Insurance recoveries |
— |
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(2.8 |
) |
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— |
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7.3 |
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— |
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4.5 |
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— |
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— |
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4.5 |
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Movement in income tax payable |
— |
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— |
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— |
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— |
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— |
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— |
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(21.3 |
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4.8 |
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(16.5 |
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Funds repaid to NSW under loan agreement |
— |
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— |
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51.9 |
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(51.9 |
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— |
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— |
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— |
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— |
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— |
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Other movements |
— |
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— |
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0.1 |
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3.7 |
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(0.6 |
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3.2 |
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— |
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(0.1 |
) |
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3.1 |
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Effect of foreign exchange |
(7.1 |
) |
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0.2 |
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0.4 |
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1.0 |
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— |
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(5.5 |
) |
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0.6 |
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(0.4 |
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(5.3 |
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Closing Balance - 31 March 2018 |
$ |
(1,215.1 |
) |
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$ |
57.9 |
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$ |
— |
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$ |
65.0 |
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$ |
(2.2 |
) |
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$ |
(1,094.4 |
) |
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$ |
382.9 |
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$ |
21.1 |
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$ |
(690.4 |
) |
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| AICF Contributions |
The following table summarizes the AICF contributions during the fiscal years 2018, 2017 and 2016:
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Payment Date |
Payment Amount A$ Millions |
Payment Amount US$ Millions |
Operating Cash flow US$ Millions |
Free Cash Flow US$ Millions |
3 July 2017 |
135.1 |
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102.2 |
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292.1 |
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292.1 |
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1 July 2016 |
120.7 |
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91.1 |
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260.4 |
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260.4 |
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1 July 2015 |
81.1 |
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62.8 |
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179.5 |
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179.5 |
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