106
Notes to the Consolidated Financial Statements (continued)
27. Share-based payments - Long-Term Variable Award (continued)
Personnel expenses
-
-
28. Provisions
-
-
-
Restructuring
Claims and litigation
Other provisions
Report of the
Report of the
1 Financial 1
Sustainability
Other
Introduction
Executive Board
Supervisory Board
1 Statements 1
Review
Information
Heineken N.V. Annual Report 2017
In millionsof
Note
2017
2016
Share rights granted in 2014
16
Share rights granted in 2015
18
12
Share rights granted in 2016
17
14
Share rights granted in 2017
20
Total expense recognised in personnel expenses
10
55
42
In millionsof
Restructuring
Onerous
contracts
Claims and
litigation
Other
Total
Balance as at 1 January 2017
99
50
149
158
456
Changes in consolidation
24
323
519
866
Provisions made during the year
70
33
50
68
221
Provisions used during the year
(45)
(17)
(35)
(12)
(109)
Provisions reversed during the year
(19)
(31)
(48)
(99)
(197)
Effect of movements in exchange rates
(1)
(3)
(48)
(51)
(103)
Unwinding of discounts
12
2
14
Balance as at 31 December 2017
104
56
403
585
1,148
Non-current
40
19
388
523
970
Current
64
37
15
62
178
The provision for restructuring of €104 million (2016: €99 million) mainly relates to restructuring programmes in Spain and the Netherlands.
For large restructurings, management assesses the timing of the costs to be incurred, which influences the classification as current or non-
current liabilities.
The provision for claims and litigation of €403 million mainly relates to the litigation inherited from the acquisition of Brasil Kirin, as well as the
beer operations of FEMSAin 2010 (refer to note 32). Management assesses provisions for claims and litigation on an ongoing basis. The outcome
depends on future events, which are by nature uncertain. In assessing the likely outcome of lawsuits and tax disputes etc., management bases its
assessment on internal and external legal assistance and established precedents.
Included are, among others, surety and guarantees provided of €42 million (2016: €35 million) and provisions for taxes of €498 million
(2016: €56 million). The increase mainly relates to the acquisition of Brasil Kirin (refer to note 4 and 6) as tax legislation in Brazil is highly complex
and subject to interpretation. The timing of the cash outflows for these provisions is uncertain.
