117
Notes to the Consolidated Financial Statements (continued)
Cash flow hedges
-
-
-
-
-
-
-
-
-
Commodity derivatives
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Commodity derivatives
-
-
-
-
-
Net investment hedges
Heineken NV.
Report of the
Report of the
Financial
Sustainability
Other
Annual Report 2016
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
The following table indicates the carrying amount of derivatives and the periods in which all the cash flows associated with derivatives that are cash
flow hedges are expected to occur:
2016
In millions of EUR
Carrying
amount
Expected cash
flows
Less than
1 year
1-2 years
2-5 years
More than
5 years
Interest rate swaps
Assets ------
Liabilities ------
Cross-currency interest rate swaps
Assets
242
1,167
55
1,112
Liabilities
(885)
(38)
(847)
Forward exchange contracts
Assets
33
1,302
1,144
158
Liabilities
(56)
(1,335)
(1,169)
(166)
Assets
24
24
12
7
5
Liabilities
(13)
(13)
(8)
(5)
230
260
(4)
259
5
2015
In millions of EUR
Carrying
amount
Expected cash
flows
Less than
1 year
1-2 years
2-5 years
More than
5 years
Interest rate swaps
Assets ------
Liabilities
(1)
(2)
(2)
Cross-currency interest rate swaps
Assets
215
1,220
90
53
1,077
Liabilities
(953)
(68)
(38)
(847)
Forward exchange contracts
Assets
37
1,437
1,289
148
Liabilities
(39)
(1,453)
(1,301)
(152)
Assets
1
1
1
Liabilities
(71)
(70)
(42)
(20)
(8)
142
180
(33)
(9)
222
The periods in which the cash flows associated with forward exchange contracts that are cash flow hedges are expected to impact profit or loss
is typically one or two months earlier than the occurrence of the cash flows as in the above table.
HEINEKEN has entered into several cross-currency interest rate swaps which have been designated as cash flow hedges to hedge the foreign
exchange rate risk on the principal amount and future interest payments of its US dollar borrowings. The borrowings and the cross-currency interest
rate swaps have the same critical terms.
HEINEKEN hedges its investments in certain subsidiaries by entering into local currency denominated borrowings, which mitigate the foreign
currency translation risk arising from the subsidiaries net assets. These borrowings are designated as a net investment hedge. The fair value of these
borrowings at 31 December 2016 was EUR 506 million (2015: EUR 536 million), and no ineffectiveness was recognised in profit and loss in 2016
(2015: nil).