Notes to the Consolidated Financial Statements continued
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Reportofthe Reportofthe Financial Other
Contents Overview Executive Board Supervisory Board Statements Information
14. Property, plant and equipment continued
Land and
Plant and
Other
Under
In millions of EUR
Note
buildings
equipment
fixed assets
construction
Total
Depreciation and impairment losses
Balance as at 1 January 2014
(1,789)
(3,827)
(3,090)
(8,706)
Changes in consolidation
4
11
3
18
Depreciation charge for the year
11
(154)
(415)
(511)
(1,080)
Impairment losses
11
(5)
(3)
(8)
Transfer to/(from) assets classified as held for sale
2
42
(8)
36
Disposals
30
79
210
319
Effect of movements in exchange rates
6
14
(19)
Balance as at 31 December 2014
(1,906)
(4,099)
(3,415)
(9,420)
Balance as at 1 January 2015
(1,906)
(4,099)
(3,415)
(9,420)
Changes in consolidation
(35)
(51)
(61)
(147)
Depreciation charge for the year
11
(157)
(424)
(570)
(1,151)
Impairment losses
11
(18)
(36)
(17)
(71)
Transfer to/(from) assets classified as held for sale
14
5
19
Disposals
29
136
332
497
Effect of movements in exchange rates
(15)
22
32
39
Balance as at 31 December 2015
(2,088)
(4,452)
(3,694)
(10,234)
Carrying amount
As at 1 January 2014
3,145
3,078
1,526
705
8,454
As at 31 December 2014
3,083
3,206
1,636
793
8,718
As at 1 January 2015
3,083
3,206
1,636
793
8,718
As at 31 December 2015
3,392
3,658
1,714
788
9,552
Impairment losses
In 2015, a total impairment loss of EUR71 million (201 A: EUR8 million) was charged to profit or loss.
Due to difficult market circumstances, impairments of property, plant equipment were recorded in Belgium (EUR26 million), Laos (EUR15 million) and
Tunisia (EUR33 million). These impairments have been recorded on the line 'Amortisation, depreciation and impairments' in the Income Statement. In
determining the recoverable amount of these assets the applied discount rates are 9.4 per cent for Belgium, based on a fair value less cost to sell valuation,
and 16.5 per cent for Laos and 12.2 per cent for Tunisia, based on value in use valuations. In the fair value less cost to sell valuation external beer market
development and inflation assumptions were used in line with the goodwill impairment testing process.
Financial lease assets
HEINEKEN leases P, P&Eunderanumberof finance lease agreements. At 31 December 2015, the net carrying amount of leased P, P& E was EUR15
million (2014: EUR15 million).
Security to authorities
Certain P,P&EamountingtoEUR80million (2014:EUR91 million) has been pledged to the authorities in a number of countries as security for the
payment of taxes, particularly import and excise duties on beers, non-alcoholic beverages and spirits. This mainly relates to the Netherlands and Brazil.
94 Heineken N.V. Annual Report 2015