Notes to the Consolidated Financial Statements continued
Reportofthe Reportofthe Financial Other
Contents Overview Executive Board Supervisory Board Statements Information
27. Non-GAAP measures continued
The 2015 exceptional items included in EBIT contain the amortisation of acquisition-related intangibles for EUR321 million (2014:EUR291 million), the
disposal gain for EMPAQUE of EUR379 million, restructuring expenses of EUR105 million (2014: EUR111 million) and the impairment of intangible assets
and P, P&Eof EUR78 million (2014: EUR21 million). Additional exceptional items included in EBIT are the write down of assets and recording of provisions
in DRCand Rwanda for an amount of EUR79 million and the combined loss on the Previously Held Equity Interests of GAB. DHN and Sedibeng of
EUR19 million.
The revaluation of the existing stake in D&G of EUR18 million resulted in an exceptional item in finance costs. The exceptional items in income tax
expense include the tax impact on amortisation of acquisition-related intangible assets of EUR75 million (2014: EUR72 million) and the tax impact
on other exceptional items included in EBIT and finance costs of EUR58 million (2014: EUR6 million). These items are partly offset by exceptional
income tax items with a negative impact amounting to EUR9 million (2014: EUR26 million negative impact).
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
2015
Present value of unfunded defined benefit obligations
329
358
Present value of funded defined benefit obligations
8,544
8,551
Total present value of defined benefit obligations
8,873
8,909
Fair value of defined benefit plan assets
(7,661)
(7,547)
Present value of net obligations
1,212
1,362
Asset ceiling items
4
2
Recognised liability for defined benefit obligations
1,216
1,364
Other long-term employee benefits
73
79
1,289
1,443
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 88.4 per cent of the total defined benefit plan assets (2014:88.6 per cent). 83.9 per
cent of the present value of the defined benefit obligations (2014:83.0 percent) and 55.2 per cent of the present value of net obligations (2014:52.1 per
cent) as at 31 December 2015.
HEINEKEN provides employees in the Netherlands with an average pay pension plan based on earnings up to the legal tax limit. Indexation of accrued
benefits is conditional on the funded status of the pension fund. HEINEKEN pays contributions to the fund up to a maximum level agreed with the Board
of the pension fund and has no obligation to make additional contributions in case of a funding deficit. In 2015. H EIN EKEN's cash contribution to the
Dutch pension plan was at the maximum level. The same level is expected to be paid in 2016.
HEINEKEN's UK plan (Scottish Newcastle pension plan 'SNPP') was closed to future accrual in 2010 and the liabilities thus relate to past service before
plan closure. 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 GBP40 million per year, contingent on the funding level of the
pension fund. As at 31 December 2015, the IAS 19 present value of the net obligations of SNPP represents a GBP369 million (EUR502 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. The next
triennial review will take place in 2016.
Other countries where HEINEKEN offers a defined benefit plan to (former) employees include: Austria (closed in 2007 to new entrants). Belgium. Greece
(closed in 2014 to new entrants). Ireland (closed in 2012 to all future accrual). Jamaica, Mexico (plan changed to hybrid defined contribution for majority
of employees in 2014), Nigeria (closed to new entrants in 2007), Portugal, Spain (closed to management in 2010) 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 H EIN EKEN
meets the benefit payment obligation as it falls due. Plan assets held in trusts are governed by Trustee Boards composed of HEIN EKEN 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 are carried out in
accordance with the plan's regulations.
108 Helneken N.V. Annual Report 2015