Capital management
There were no major changes in Heineken's approach to capital management during the year. The Executive
Board's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of business and acquisitions. Capital is herein defined as equity attributable
to equity holders of the Company (total equity minus minority interests).
Heineken is not subject to externally imposed capital requirements other than the legal reserves explained in
note 22. Shares are purchased to meet the requirements under the Long-Term Incentive Plan as further
explained in note 29.
Fair values
The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of
financial position, are as follows:
Carrying
Fair
Carrying
Fair
amount
value
amount
value
n millions of EUR
2009
2009
2008
2008
Loans
329
329
310
310
Held-to-maturity investments
4
4
10
10
\vailable-for-sale investments
219
219
221
221
Advances to customers
319
319
346
346
nvestments held for trading
15
15
14
14
rade and other receivables, excluding derivatives
jsed for hedge accounting
2,261
2,261
2,401
2,401
Tash and cash equivalents
520
520
698
698
nterest rate swaps used for hedge accounting:
Assets
17
17
89
89
Liabilities
(438)
(438)
(425)
(425)
orward exchange contracts used for hedge accounting:
Assets
48
48
102
102
Liabilities
(26)
(26)
(55)
(55)
tther derivatives, net
-
-
12
12
3ank loans
(3,311)
(3,362)
(7,315)
(7,401)
Jnsecured bond issues
(2,945)
(3,058)
(1,122)
(1,204)
inance lease liabilities
(108)
(108)
(95)
(95)
Dther interest-bearing liabilities
(1,342)
(1,423)
(670)
(679)
Jon-interest-bearing liabilities
(93)
(93)
(16)
(16)
Jon-current derivatives used for hedge accounting
(370)
(370)
(393)
(393)
)eposits from third parties and other interest-bearing liabilities
(377)
(377)
(348)
(348)
Tade and other payables excluding dividend,
iterest and derivatives used for hedge accounting
(3,444)
(3,444)
(3,579)
(3,579)
■ank overdrafts (156) (156) (94) (94)
3asis for determining fair values
The significant methods and assumptions used in estimating the fair values of financial instruments reflected in
he table above are discussed in note 4.
:air value hierarchy
ffective 1 January 2009, Heineken adopted the amendment to 1FRS 7 for financial instruments that are
measured in the statement of financial position at fair value (refer 3b). This requires disclosure of fair value
measurements by level of the following fair value measurement hierarchy:
Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).
Annual Report 2009 - Heineken N.V.