113
Notes to the Consolidated Financial Statements (continued)
Balance as at 1 January
Liquidity risk
Contractual maturities
-
-
-
-
-
-
-
-
Heineken NV.
Report of the
Report of the
Financial
Sustainability
Other
Annual Report 2016
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
The movement in the allowance for impairment in respect of loans to customers during the year was as follows:
In millions of EUR
2016
2015
121
135
Changes in consolidation
-
1
Impairment loss recognised
1
-
Allowance used - -
Allowance released
(8)
(14)
Effect of movements in exchange rates
(3)
(1)
Balance as at 31 December
111
121
Impairment losses recognised for trade and other receivables (excluding current derivatives) and loans to customers are part of the other non-cash
items in the consolidated statement of cash flows.
The income statement impact of EUR 7 million gain (2015: EUR 14 million gain) in respect of loans to customers and EUR 57 million expense
(2015: EUR 61 million expense) in respect of trade and other receivables (excluding current derivatives) were included in expenses for raw materials,
consumables and services.
The allowance accounts in respect of trade and other receivables and held-to-maturity investments are used to record impairment losses, unless
HEINEKEN is satisfied that no recovery of the amount owing is possible; at that point, the amount considered irrecoverable is written off against
the financial asset.
Liquidity risk is the risk that HEINEKEN will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled
by delivering cash or another financial asset. HEINEKEN's approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to HEINEKEN's reputation.
HEINEKEN has a clear focus on ensuring sufficient access to capital markets to finance long-term growth and to refinance maturing debt
obligations. Financing strategies, including the diversification of funding sources are under continuous evaluation (information about borrowing
facilities is presented in Note 25). In addition, HEINEKEN seeks to align the maturity profile of its long-term debts with its forecasted cash flow
generation. Strong cost and cash management and controls over investment proposals are in place to ensure effective and efficient allocation
of financial resources.
The following are the contractual maturities of non-derivative financial liabilities and derivative financial assets and liabilities, including
interest payments:
2016
Carrying
Contractual
Less than
More than
In millions of EUR
amount
cash flows
1 year
1-2 years
2-5 years
5 years
Financial liabilities
Interest-bearing liabilities
(14,570)
(16,792)
(4,006)
(1,703)
(4,895)
(6,188)
Trade and other payables (excluding interest payable,
dividends and derivatives and including non-current part) (5,994) (5,994) (5,963) (16) (2) (13)
Derivative financial assets and (liabilities)
Interest rate swaps used for hedge accounting (net)
242
283
17
266
Forward exchange contracts used for hedge accounting (net)
(23)
(32)
(24)
(8)
Commodity derivatives used for hedge accounting (net)
11
11
4
2
5
Derivatives not used for hedge accounting (net)
(13)
(14)
(14)
(20,347)
(22,538)
(9,986)
(1,459)
(4,892)
(6,201)