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