93
Notes to the Consolidated Financial Statements (continued)
17. Other investments and receivables
Sensitivity analysis - equity price risk
18. Deferred tax assets and liabilities
Recognised deferred tax assets and liabilities
-
-
-
-
Tax losses carried forward
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€
Note
2017
2016
Non-current other investments and receivables
Available-for-sale investments
30
481
427
Non-current derivatives
30
36
254
Loans to customers
30
54
58
Loans to joint ventures and associates
30
3
18
Long-term prepayments
346
145
Other receivables
30
193
175
1,113
1,077
The increase in long-term prepayments is mainly related to deposits paid for existing legal proceedings which were inherited as part of the Brasil
Kirin acquisition (refer to note 6).
The other receivables mainly originate from the acquisition of the beer operations of FEMSA and represent a receivable on the Brazilian authorities
on which interest is calculated in accordance with Brazilian legislation. Collection of this receivable is expected to be beyond a period of five years.
A part of the aforementioned receivable qualifies for indemnification towards FEMSA.
HEINEKEN has interests in several entities where it has less than significant influence. These are classified as available-for-sale investments and
valued based on their share price when publicly listed. For investments that are not listed fair values are established using multiples. Debt securities
(which are interest-bearing) with a carrying amount of €15 million (2016: €15 million) are included in available-for-sale investments.
As at 31 December 2017, an amount of €396 million (2016: €342 million) of available-for-sale investments and investments held for trading is listed on
stock exchanges. An increase or decrease of 1 in the share price at the reporting date would not result in a material impact on HEINEKEN's financial position.
Deferred tax assets and liabilities are attributable to the following items:
Assets Liabilities Net
In millionsof€
2017
2016
2017
2016
2017
2016
Property, plant and equipment
72
71
(521)
(547)
(449)
(476)
Intangible assets
41
56
(1,333)
(1,402)
(1,292)
(1,346)
Investments
54
126
(6)
(5)
48
121
Inventories
31
27
(9)
(1)
22
26
Loans and borrowings
32
2
(28)
(32)
4
(30)
Employee benefits
300
346
(6)
(6)
294
340
Provisions
131
125
(30)
(45)
101
80
Other items
467
413
(382)
(180)
85
233
Tax losses carried forward
460
391
460
391
Tax assets/(liabilities)
1,588
1,557
(2,315)
(2,218)
(727)
(661)
Set-off oftax
(820)
(546)
820
546
Net tax assets/(liabilities)
768
1,011
(1,495)
(1,672)
(727)
(661)
Of the total net deferred tax assets of €768 million as at 31 December 2017 (2016: €1,011 million), €253 million (2016: €405 million) is recognised
in respect of subsidiaries in various countries where there have been tax losses in the current or preceding period. Management's projections support
the assumption that it is probable that the results of future operations will generate sufficient taxable income to utilise these deferred tax assets.
This judgement is performed annually and based on budgets and business plans for the coming years, including planned commercial initiatives.
No deferred tax liability has been recognised in respect of undistributed earnings of subsidiaries, joint ventures and associates, with a net impact of
€75 million (2016: €58 million). This because HEINEKEN is able to control the timing of the reversal of the temporary differences, and it is probable
that such differences will not reverse in the foreseeable future.
HEINEKEN has tax losses carried forward of €3,593 million as at 31 December 2017 (2016: €2,370 million), out ofwhich €137 million (2016: €145 million)
expires in the following five years. €434 million (2016: €338 million) will expire after five years and €3,023 million (2016: €1,887 million) can be carried forward
indefinitely Deferred tax assets have not been recognised in respect of tax losses carried forward of €1,619 million (2016: €637 million) as it is not probable
thattaxable profit will be available to offset these losses. The increase in the amount of tax losses carried forward relates mainly to the acquisition of Brasil Kirin.
