Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Asbestos (Tables)

v3.4.0.3
Asbestos (Tables)
12 Months Ended
Mar. 31, 2016
Text Block [Abstract]  
Asbestos Adjustments

The asbestos adjustments included in the consolidated statements of operations and comprehensive income comprise the following:

 

    Years Ended 31 March  
 (Millions of US dollars)   2016     2015     2014  

 Change in estimates:

     

Change in actuarial estimate - asbestos liability

  $ 2.4         $ (129.0)        $ (340.3)     

Change in actuarial estimate - insurance receivable

    4.5           16.6           31.2      

Change in estimate - AICF claims-handling costs

    1.2           1.1           0.9      
 

 

 

   

 

 

   

 

 

 

Subtotal - Change in estimates

    8.1           (111.3)          (308.2)     

 Recovery of Insurance Receivables

    -           -           15.2      

 (Loss) gain on foreign currency exchange

    (2.6)              144.7                 97.2      
 

 

 

   

 

 

   

 

 

 

 Total Asbestos Adjustments

  $       5.5         $ 33.4         $ (195.8)     
 

 

 

   

 

 

   

 

 

 
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 2016:

 

     Year Ended 31 March 2016  
 (Billions of US and Australian dollars, respectively)    US$        A$      

 Central Estimate - Discounted and Inflated

     1.458         1.904   

 Central Estimate - Undiscounted but Inflated

     1.858         2.427   

 Central Estimate - Undiscounted and Uninflated

     1.098         1.434   
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:

 

          For the Years Ended 31 March  
     2016     2015     2014     2013     2012  
         

Number of open claims at beginning of period

    494        466        462        592        564   

Number of new claims

    577        665        608        542        456   

Number of closed claims

    645        637        604        672        428   

Number of open claims at end of period

    426        494        466        462        592   

Average settlement amount per settled claim

    A$ 248,138        A$ 254,209        A$ 253,185        A$ 231,313        A$ 218,610   

Average settlement amount per case closed

    A$ 218,900        A$ 217,495        A$ 212,944        A$ 200,561        A$ 198,179   

Average settlement amount per settled claim

    US$ 182,763        US$ 222,619        US$ 236,268        US$ 238,615        US$ 228,361   

Average settlement amount per case closed

    US$ 161,229        US$ 190,468        US$ 198,716        US$ 206,892        US$ 207,019   
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.”

 

     31 March  
 (Millions of US dollars)    2016      2015  

Asbestos liability – current

     $ (125.9)           $ (131.6)     

Asbestos liability – non-current

     (1,176.3)           (1,290.0)     
  

 

 

    

 

 

 

Asbestos liability – Total

     (1,302.2)           (1,421.6)     

Insurance receivable – current

     16.7            16.7      

Insurance receivable – non-current

     149.0            161.9      
  

 

 

    

 

 

 

Insurance receivable – Total

     165.7            178.6      

Workers’ compensation asset – current

     4.1            4.5      

Workers’ compensation asset – non-current

     46.8            45.5      

Workers’ compensation liability – current

     (4.1)           (4.5)     

Workers’ compensation liability – non-current

     (46.8)           (45.5)     
  

 

 

    

 

 

 

Workers’ compensation – Total

     -               -         

Loan facility

     (50.7)           (13.6)     

Other net liabilities

     (1.0)           (1.5)     

Restricted cash and cash equivalents and restricted short-term investment assets of AICF

     17.0            22.0      
  

 

 

    

 

 

 

Net AFFA liability

     $         (1,171.2)           $         (1,236.1)     
  

 

 

    

 

 

 

Deferred income taxes – current

     -               15.9      

Deferred income taxes – non-current

     384.9            389.3      
  

 

 

    

 

 

 

Deferred income taxes – Total

     384.9            405.2      

Income tax payable

     19.6            19.2      
  

 

 

    

 

 

 

Net Unfunded AFFA liability, net of tax

     $ (766.7)           $ (811.7)     
  

 

 

    

 

 

 
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 2016:

 

(Millions of US dollars)

  Asbestos
Liability
    Insurance
Receivables
    Deferred Tax
Assets
    Other Loan
Facilities
    Restricted
Cash and
Investments
    Other
Assets and
Liabilities1
    Net Unfunded
AFFA Liability,
net of tax
 

Opening Balance - 31 March 2015

  $ (1,421.6   $ 178.6      $ 405.2      $ (13.6   $ 22.0      $ 17.7      $ (811.7

Asbestos claims paid2

          113.9              (113.9       -       

Payment received in accordance with AFFA

            62.8                62.8   

AICF claims-handling costs incurred (paid)

    1.2              (1.2       -       

AICF operating costs paid - non claims-handling

            (1.7       (1.7

Change in actuarial estimate

    2.4                4.5                6.9   

Change in claims handling cost estimate

    1.2                  1.2   

Insurance recoveries

      (17.2         17.2          -       

Movement in Income Tax Payable

        (18.9         (0.6     (19.5

Funds received from NSW under loan agreement

          (60.5     60.5          -       

Funds repaid to NSW under loan agreement

             27.3        (27.3       -       

Other movements

        (1.7     -            (0.7     0.3        (2.1

Effect of foreign exchange

    0.7        (0.2             0.3        (3.9     (0.7     1.2        (2.6
 

 

 

 

Closing Balance - 31 March 2016

  $ (1,302.2   $ 165.7      $ 384.9      $ (50.7   $ 17.0      $     18.6      $ (766.7
 

 

 

 

 

 

1 Other assets and liabilities include an offset to income tax payable of US$19.6 million and US$19.2 million at 31 March 2016 and 2015, respectively. The remaining balance includes the other assets and liabilities of AICF, with a net liability of US$1.0 million and US$1.5 million at 31 March 2016 and 2015, respectively.

 

2 Claims paid of US$113.9 million reflects A$154.7 million converted at the average exchange rate for the period based on the assumption that these transactions occurred evenly throughout the period.