Financial Statements continued Notes to the consolidated financial statements continued 28. Provisions In millions of EUR Restructuring Other Total Balance at 1 January 2006 236 137 373 Provisions made during the year 105 30 135 Provisions used during the year (79) (26) (105) Provisions reversed during the year (10) (26) (36) Effect of movements in exchange rates - (3) (3) Balance at 31 December 2006 252 112 364 Non-current part 167 75 242 Current part 85 37 122 252 112 364 Restructuring The provision for restructuring of €252 million relates to restructuring programmes in the Netherlands, France, Spain and Italy. During the year, €102 million restructuring expenses relating to Fit2Fight have been recognised of which main part has not been used as at 31 December 2006. Other provisions Other provisions include amongst others provisions formed for onerous contracts, surety provided and for litigations and claims. 29. Trade and other payables In millions of EUR2006 2005 Trade payables due to associates and joint ventures 9 7 Other trade payables 1,030 1,042 Returnable packaging deposits 340 334 Taxation and social security contributions 301 281 Dividend 29 31 Interest 34 41 Derivatives 10 62 Other payables 140 127 Accruals and deferred income603 526 2,496 2,451 30. Financial instruments Exposure to credit, interest rate, foreign currency and commodity risks arise in the normal course of Fleineken's business. Derivative financial instruments are used to hedge exposure to fluctuations in interest rates and exchange rates. Fleineken applies hedge accounting in order to manage volatility in the income statement. Fledging policy Derivatives, such as interest rate swaps, forward rate agreements, caps and floors, are used to minimise the effects of interest rate fluctuations in the income statement. In addition, forward exchange contracts and options are used to limit the effects of currency and commodity price fluctuations in the income statement. Transactions are entered into with a limited number of counter parties with strong credit ratings. Foreign currency, commodity and interest rate hedging operations are governed by an internal policy and rules approved and monitored by the Executive Board. 1 f\d Heineken N.V. 1UU Annual Report 2006

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2006 | | pagina 109