117
Notes to the Consolidated Financial Statements (continued)
Level 3
-
-
-
31. Off-balance sheet commitments
Report of the
Executive Board
Report of the
Supervisory Board
Financial
Statements
Sustainability
Review
Other
Information
Heineken N.V. Annual Report 2017
Details of the determination of level 3 fair value measurements as at 31 December 201 7 are set out below:
In millionsof€
2017
2016
Available-for-sale investments based on level 3
Balance as at 1 January
85
84
Fair value adjustments recognised in other comprehensive income
2
(2)
Disposals
1
Transfer between levels
3
Transferto associate
(4)
Balance as at 31 December
84
85
The fair values forthe level 3 available-for-sale investments are based on the financial performance of the investments and the market multiples of
comparable equity securities.
Lessthan
More than
In millionsof€
Total 2017
1 year
1-5 years
5 years
2016
Operational lease commitments
1,704
269
645
790
1,460
Property, plant and equipment ordered
329
285
26
18
128
Raw materials purchase contracts
6,153
2,433
2,580
1,140
5,287
Marketing and merchandising commitments
647
242
401
4
391
Other off-balance sheet obligations
2,092
304
716
1,072
1,542
Off-balance sheet obligations
10,925
3,533
4,368
3,024
8,808
Undrawn committed bank facilities 3,929 59 3,870 - 2,747
HEINEKEN leases offices, warehouses, pubs, cars and other equipment in the ordinary course of business.
Raw material contracts include long-term purchase contracts with suppliers in which prices are fixed or will be agreed based upon predefined price
formulas. These contracts mainly relate to malt, bottles and cans. The raw materials purchase commitments relate to purchase contracts with
EMPAQUE which has become athird party supplier after the disposal in 2015.
During the year ended 31 December 2017, €364 million (2016: €302 million) was recognised as an expense in profit or loss in respect of operating
leases and rent.
Other off-balance sheet obligations include energy, distribution and service contracts.
Committed bank facilities are credit facilities on which a commitment fee is paid as compensation forthe bank's requirement to reserve capital.
The bank is legally obliged to provide the facility underthe terms and conditions of the agreement.
