Notes to the Consolidated Financial Statements (continued)
6.6 Amortisation, depreciation and impairments
Introduction Report of the Executive Board Report of the Supervisory Board
Ownership of the vested LTIP 2016-2018 shares will transfer to the Executive Board members shortly
after publication of the annual results in 2019 and to senior management on 1 April 2019. The number
of outstanding share rights and the movement over the year under the LTIP of senior management and
Executive Board are as follows:
Number of share
Number of share
Outstanding as at 1 January
Granted during the year
Forfeited during the year
Vested previous year
Outstanding as at 31 December
Share price as at 31 December
As HEINEKEN will withhold the payroll tax related to vesting on behalf of the individual employees,
the number of Heineken N.V. shares to be received will be an after-tax number. The share rights are not
dividend-bearing during the performance period.
Other share-based compensation plans
Under the extraordinary share plans for senior management there were no shares granted in 2018 and
8,383 (gross) shares were vested in 2018. These extraordinary grants only have a service condition and vest
between one and five years. The expenses relating to these additional grants are recognised in profit or loss
during the vesting period. Expenses recognised in 2018 are €0.4 million (2017: €1.0 million).
Matching shares granted to the Executive Board are disclosed in note 13.3.
The total share-based compensation expenses that are recognised in 2018 amount to €48 million
(2017: €55 million).
In millions of
Share rights granted in 2015
Share rights granted in 2016
Share rights granted in 2017
Share rights granted in 2018
Total expense recognised in personnel expenses
Heineken N.V. Annual Report 2018
The grant date fair value is calculated by adjusting the share price at grant date for estimated foregone
dividends during the performance period, as the participants are not entitled to receive dividends during
that period. The foregone dividends are estimated by applying HEINEKEN's dividend policy on the latest
forecasts of net profit (beia).
At each balance sheet date, HEINEKEN uses its latest forecasts to calculate the expected realisation on
the performance targets per plan. The number of shares are adjusted to the new target realisation and
HEINEKEN increases/decreases the total plan cost. The cumulative effect is recorded in the profit or loss,
with a corresponding adjustment to equity.
Expenses related to employees that voluntarily leave HEINEKEN are reversed as they will not receive any
shares from the LTIP The expense calculation includes the estimated future forfeiture. HEINEKEN uses
historical information to estimate this forfeiture rate.
HEINEKEN's share-based compensation plans are equity-settled share rights granted to the Executive
Board and senior management.
The grant date fair value is calculated by deducting expected foregone dividends from the grant date
during the performance period share price. The costs of the share plans are adjusted for expected
performance and forfeiture and spread evenly over the service period.
Share-based compensation expenses are recorded in the profit or loss, with a corresponding adjustment
In millions of
Property, plant and equipment
Recycling of currency translation differences
In 2017 HEINEKEN recycled the negative currency translation reserves relating to disposed subsidiaries to
the consolidated income statement.
Refer to note 8.1 for the accounting policy on impairments and amortisation and note 8.2 for the policy