119 Notes to the Consolidated Financial Statements (continued) Level 2 Level 3 - 31. Off-balance sheet commitments - - - Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information During the period ended 31 December 2016 there were no significant transfers between the three levels of the fair value hierarchy, except within the available-for-sale investments. Within this category the investment in Saigon Alcohol Beer and Beverages Corporation ('SABECO', Vietnam) has been transferred from Level 2 to Level 1 due to the fact that SABECO shares are no longer traded over-the-counter, but have become listed on the Ho Chi Minh Stock Exchange in December 2016. The transferred amount as per 31 December 2016 is EUR 249 million. The fair value adjustment of EUR 144 million during the year is recognised in other comprehensive income and presented within equity in the fair value reserve. 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. Details of the determination of level 3 fair value measurements as at 31 December 2016 are set out below: In millions of EUR 2016 2015 Available-for-sale investments based on level 3 Balance as at 1 January 84 68 Fair value adjustments recognised in other comprehensive income (2) 16 Disposals - - Transfers 3 Balance as at 31 December 85 84 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. In millions of EUR Total 2016 Lessthan 1 year 1-5 years More than 5 years Total 2015* Operational lease commitments 1,460 231 552 677 1,114 Property, plant and equipment ordered 128 120 8 293 Raw materials purchase contracts 5,287 1,569 2,455 1,263 5,989 Marketing and merchandising commitments 391 177 209 5 370 Other off-balance sheet obligations 1,542 687 509 346 1,766 Off-balance sheet obligations 8,808 2,784 3,733 2,291 9,532 Undrawn committed bank facilities 2,747 2,747 2,930 Revised.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 120