101
Notes to the Consolidated Financial Statements (continued)
-
-
-
-
-
-
Financing headroom
Incurrence covenant
26. Employee benefits
-
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
In millionsof
Category
Currency
Nominal
interest
rate%
Repayment
Carrying
amount
2017
Face
value
2017
Carrying
amount
2016
Face value
2016
Secured bank loans
bank facilities
ETB
9.5
2017
20
20
Secured bank loans
bank facilities
XOF
7.0
2026
83
83
57
56
Secured bank loans
various
various
various
various
26
26
17
20
Other interest-bearing liabilities
2008 US private placement
USD
2.8
2017
85
85
Other interest-bearing liabilities
2008 US private placement
GBP
7.2
2018
36
36
37
37
Other interest-bearing liabilities
2010 US private placement
USD
4.6
2018
605
605
688
688
Other interest-bearing liabilities
2008 US private placement
USD
6.3
2018
325
325
369
370
Other interest-bearing liabilities
facilities from JVs
EUR
various
various
4
4
4
4
Other interest-bearing liabilities
bank facilities
BRL
4.9-8.5
2020-2026
85
85
Other interest-bearing liabilities
various
various
various
various
101
101
76
76
Deposits from third parties
n.a.
various
various
various
649
649
622
622
14,113
14,207
12,901
12,972
The committed financing headroom at Group level was approximately €4.0 billion as at 31 December 201 7 and consisted of the undrawn
revolving credit facility and centrally available cash, minus the amount of commercial paper in issue at Group level.
HEINEKEN has an incurrence covenant in some of its financing facilities. This incurrence covenant is calculated by dividing net debt (excluding the
market value of cross-currency interest rate swaps) by EBITDA (beia) (both based on proportional consolidation of joint ventures and including
acquisitions made in 2017 on a pro-forma basis). As at 31 December 201 7 this ratio was 2.4 (2016: 2.3). If the ratio would be beyond a level of
3.5, the incurrence covenant would prevent HEINEKEN from conducting further significant debt financed acquisitions.
In millionsof
2017
2016
Present value of unfunded defined benefit obligations
296
305
Present value of funded defined benefit obligations
8,792
8,865
Total present value of defined benefit obligations
9,088
9,170
Fairvalue of defined benefit plan assets
(7,908)
(7,815)
Present value of net obligations
1,180
1,355
Asset ceiling items
19
3
Defined benefit plans included under non-current assets
10
Recognised liability for defined benefit obligations
1,209
1,358
Other long-term employee benefits
80
62
1,289
1,420
HEINEKEN makes contributions to defined benefit plans that provide pension benefits to (former) employees upon retirement in a number of countries.
The defined benefit plans in The Netherlands and the UK represent the majority of the total defined benefit plan assets and the present value of the
defined benefit obligations. Referto the table below for share of the these plans in the total present value of the net obligations of the Company.
In millionsof
2017
UK
2016
UK
2017
NL
2016
NL
2017
Other
2016
Other
2017
Total
2016
Total
Total present value of defined benefit obligations
4,002
4,167
3,729
3,544
1,357
1,459
9,088
9,170
Fairvalue of defined benefit plan assets
(3,449)
(3,488)
(3,546)
(3,392)
(913)
(935)
(7,908)
(7,815)
Present value of net obligations
553
679
183
152
444
524
1,180
1,355
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 2017, HEINEKEN's cash
contribution to the Dutch pension plan was at the maximum level. The same level is expected to be paid in 2018.
