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Contents
Overview
Report of the
Executive Board
Report of the
Supervisory Board
Financial
statements
Other
information
31 December 2013 Level 1 Level 2 Level 3
Available-for-sale investments
120
68
59
Non-current derivative assets
67
Current derivative assets
45
Investments held for trading
11
131 180 59
Non-current derivative liabilities - (47)
Loans and borrowings (8,951) (2,461)
Current derivative liabilities - (149)
(8,951) (2,657)
There were no transfers between level 1 and level 2 of the fair value hierarchy during the period ended 31 December 2014.
Level 2
HEINEKEN determines level 2 fair values for over-the-counter securities based on broker quotes. The fair values of simple over-the-counter
derivative financial instruments are determined by using valuation techniques. These valuation techniques maximise the use of observable
market data where available.
The fair value of derivatives is calculated as the present value of the estimated future cash flows based on observable interest yield curves,
basis spread and foreign exchange rates. These calculations are tested for reasonableness by comparing the outcome of the internal valuation
with the valuation received from the counterparty. Fair values reflect the credit risk of the instrument and include adjustments to take into
account the credit risk of HEINEKEN and counterparty when appropriate.
Level 3
Details of the determination of level 3 fair value measurements as at 31 December 2014 are set out below:
In millions of EUR 2014 2013
Available-for-sale investments based on level 3
Balance as at 1 January
59
134
Fair value adjustments recognised in other comprehensive income
10
16
Disposals
(1)
(1)
Transfers
(90)
Balance as at 31 December 68 59
The fair values for the level 3 available-for-sale investments are based on the financial performance of the investments and the market multiples
of comparable equity securities.
123
Heineken N.V. Annual Report 2014
