Report of the Report of the
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Financial
statements
Other information
The exceptional items in income tax expense include the tax impact on amortisation of acquisition-related intangible assets of
EUR87 million (2012: EUR53 million), the tax impact on other exceptional items included in EBIT and finance costs of EUR21 million
(2012: EUR2 million) and the remeasurement of a deferred tax position due to a tax rate change amounting to EUR76 million
(2012: nil).
EBIT and EBIT (beia) are not financial measures calculated in accordance with IFRS. The presentation of these financial measures
may not be comparable to similarly titled measures reported by other companies due to differences in the ways the measures
are calculated.
28. Employee benefits
In millions of EUR
2013
2012*
Present value of unfunded defined benefit obligations
306
253
Present value of funded defined benefit obligations
7,368
7,591
Total present value of defined benefit obligations
7,677
7,877
Fair value of defined benefit plan assets
(6,553)
(6,701)
Present value of net obligations
1,121
1,773
Asset ceiling items
2
1
Recognised liability for defined benefit obligations
1,123
1,777
Other long-term employee benefits
79
131
1,202
1,575
*Restated for the revised IAS 19.
HEINEKEN makes contributions to defined benefit plans that provide pension benefits for employees upon retirement in a number
of countries. The defined benefit plans in the Netherlands and the UK combined cover 87.5 per cent of the total defined benefit
plan assets (2012:87.7 per cent), 82.5 per cent of the present value of the defined benefit obligations (2012: 82.1 percent*) and
53.0 percent of the present value of net obligations (2012: 58.5 percent*) as at 31 December 2013.
HEINEKEN provides employees in the Netherlands with an average pay pension plan, whereby indexation of accrued benefits is
conditional on the funded status of the pension fund. HEINEKEN's UK plan (Scottish Newcastle pension plan) was closed for future
accrual in July 2010 and the liabilities thus relate to past service before plan closure.
In 2013, HEINEKEN's cash contribution to the Dutch pension plan was at the maximum contribution level agreed with the Board of
the Pension Fund. The same level will be paid in 2017.
For the UK plan, based on the triennial review finalised in early 2013, HEINEKEN has agreed a 10-year funding plan including base
company contributions of GBP21 million per year, with a further company contribution of between GBP15 million and GBP70 million
per year, contingent on the funding level of the pension fund. As at 31 December 2013 the IAS 19 (revised) present value of the net
obligations of the Scottish Newcastle pension plan represents a GBP305 million (EUR357 million) deficit. No additional liability has
to be recognised as the net present value of the minimum funding requirement does not exceed the net obligation.
Other countries where HEINEKEN offers a defined benefit plan to employees are: Austria, Belgium, Greece, Ireland (closed for the
majority of employees in 2012), Mexico, Nigeria (closed for the majority of employees in 2007), Portugal, Spain and Switzerland.
The vast majority of benefit payments are from pension funds that are held in trusts (or equivalent); however, there is a small portion
where HEINEKEN meets the benefit payment obligation as it falls due. Plan assets held in trusts are governed by Trustee Boards
composed of HEINEKEN representatives and independent and/or member representation, in accordance with local regulations and
practice in each country. The relationship and division of responsibility between HEINEKEN and the Trustee Board (or equivalent)
including investment decisions and contribution schedules is carried out in accordance with the plan's regulations.
Heineken N.V. Annual Report 2013
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