128
Financial statements Notes to the consolidated financial statements
33. Off-balance sheet commitments
During the year ended 31 December 2010 EUR224 million (2009: EUR184 million) was recognised as an expense in profit or loss
in respect of operating leases and rent.
Other off-balance sheet obligations mainly include distribution, rental, service and sponsorship contracts.
Committed bank facilities are credit facilities on which a commitment fee is paid as compensation for the bank's requirement
to reserve capital. For the details of these committed bank facilities see note 25. The bank is legally obliged to provide the facility
under the terms and conditions of the agreement.
34. Contingencies
Netherlands
Eleineken is involved in an antitrust case initiated by the European Commission for alleged violations of the European Union competitio:
laws. By decision of 18 April 2007 the European Commission stated that Eleineken and other brewers operating in the Netherlands,
restricted competition in the Dutch market during the period 1996 -1999. This decision follows an investigation by the European
Commission that commenced in March 2000. Eleineken fully cooperated with the authorities in this investigation. As a result of
its decision, the European Commission imposed a fine on Heineken of EUR219 million in April 2007.
On 4 July 2007 Eleineken filed an appeal with the European Court of First Instance against the decision of the European Commission
as Heineken disagrees with the findings of the European Commission. Pending appeal, Heineken was obliged to pay the fine to the
European Commission. This fine was paid in 2007 and was treated as an expense in the 2007 Annual Report. A final decision by the
European Court of First Instance is expected in 2011.
Carlsberg
During 2010, the existing contingency between Heineken and Carlsberg was settled. The consideration paid (purchase price) for the
acquisition of Scottish Newcastle was finalised. The impact on goodwill was immaterial.
Brazil
As part of the acquisition of the beer operations of FEMSA, Heineken also inherited existing legal proceedings with labour unions, ta
authorities and other parties of its, now wholly-owned, subsidiary Cervejarias Kaiser (Heineken Brasil). The proceedings have arisen
in the ordinary course of business and are common to the current economic and legal environment of Brazil. The proceedings have
partly been provided for, see note 30. The contingent amount being claimed against Heineken Brasil resulting from such proceedings
as at 31 December 2010 is EUR1.267 million. Such contingencies were classified by legal counsel as less than probable but more
than remote of being settled against Heineken Brasil. However, Heineken believes that the ultimate resolution of such legal
proceedings will not have a material adverse effect on its consolidated financial position or result of operations. Heineken does
not expect any significant liability to arise from these contingencies. A significant part of the aforementioned contingencies
(EUR364 million) are tax related and qualify for indemnification by FEMSA, see note 6.
As is customary in Brazil, Heineken Brasil has been requested by the tax authorities to collateralise tax contingencies currently
in litigation amounting to EUR218 million by either pledging fixed assets or entering into available lines of credit which cover
such contingencies.
Guarantees
Less than More than
ons of FT HTotal 2010t year1-5 years5 yearsTotal 2009
Guarantees to banks for loans (to third parties)
384
213
111
60
Other guarantees
271
68
9
194
177
Guarantees
655
281
120
254
548
Guarantees to banks for loans relate to loans to customers, which are given by external parties in the ordinary course of business
of Heineken. Heineken provides guarantees to the banks to cover the risk related to these loans.
