126
Financial statements Notes to the consolidated financial statements
32. Financial risk management and financial instruments
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
non-controlling 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:
In millions of EUR
Carrying amount
2010
Fair value
2010
Carrying amount
2009
Fair value
Loans
455
455
329
Indemnification receivable
145
145
Other long-term receivables
174
174
Held-to-maturity investments
4
4
4
Available-for-sale investments
190
190
219
219
Advances to customers
449
449
319
319
Investments held for trading
17
17
15
15
Trade and other receivables, excluding derivatives
2,263
2,263
2,261
2,261
Cash and cash equivalents
610
610
520
52C
Interest rate swaps used for hedge accounting:
Assets
121
121
17
17
Liabilities
(244)
(244)
(438)
(438)
Forward exchange contracts used for hedge accounting:
Assets
11
11
48
48
Liabilities
(18)
(18)
(26)
(26)
Other derivatives used for hedge accounting:
Assets
26
26
Liabilities
(33)
(33)
Other derivatives not used for hedge accounting, net
(75)
(75)
Bank loans
(3,665)
(3,734)
(3,311)
(3,36:
Unsecured bond issues
(2,482)
(2,739)
(2,945)
(3,058
Finance lease liabilities
(95)
(95)
(108)
Other interest-bearing liabilities
(1,927)
(2,260)
(1,342
(1,423)
Non-interest-bearing liabilities
(55)
(55)
(93)
Non-current derivatives
(291)
(291)
(370)
Deposits from third parties
(425)
(425)
(377)
(37
Trade and other payables excluding dividend, interest and
derivatives
(4,049)
(4,049)
(3,444)
(3,444
(132)
(132)
(156)
Basis for determining fair values
The significant methods and assumptions used in estimating the fair values of financial instruments reflected in the table above
are discussed in note 4.
Fair value hierarchy
IFRS 7 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:
