Notes to the Consolidated Financial Statements (continued) - - Accounting estimates Accounting policies 6.6 Amortisation, depreciation and impairments - Accounting policies O Q, 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 rights 2018 Number of share rights 2017 Outstanding as at 1 January 2,266,642 1,873,347 Granted during the year 444,556 510,006 Forfeited during the year (124,039) (55,103) Vested previous year (699,032) (802,381) Performance adjustment 159,753 740,773 Outstanding as at 31 December 2,047,880 2,266,642 Share price as at 31 December 77.20 86.93 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. Personnel expenses The total share-based compensation expenses that are recognised in 2018 amount to €48 million (2017: €55 million). In millions of Note 2018 2017 Share rights granted in 2015 18 Share rights granted in 2016 17 17 Share rights granted in 2017 18 20 Share rights granted in 2018 13 Total expense recognised in personnel expenses 6.4 48 55 Financial Statements Sustainability Review Heineken N.V. Annual Report 2018 Other Information 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 to equity In millions of Note 2018 2017 Property, plant and equipment 8.2 1,288 1,153 Intangible assets 8.1 405 369 Recycling of currency translation differences 65 1,693 1,587 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 on depreciation.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 78