O A Notes to the Consolidated Financial Statements (continued) statement 11.3 Borrowings - - Total borrowings Changes in borrowings Introduction Report of the Executive Board Report of the Supervisory Board In millions of Gross amounts Gross amounts offset in the of financial position Net amounts presented in the statement of financial position Amounts subject to legal off set rights Net amount Balance as at 31 December 2017 Assets Cash and cash equivalents Liabilities Bank overdrafts and commercial paper 2,442 (1,265) 2,442 (1,265) (1,062) 1,062 1,380 (203) HEINEKEN operates in a number of territories where there is limited availability of foreign currency resulting in restrictions on remittances. Mainly as a result of these restrictions, €330 million (2017: €208 million) of cash included in cash and cash equivalents is restricted for use by the Company, yet available for use in the relevant subsidiary's day-to-day operations. Accounting policies Cash and cash equivalents are initially recognised at fair value and subsequently at amortised cost. HEINEKEN has cash pooling arrangements with legally enforceable rights to offset cash and overdraft balances. Where there is an intention to settle on a net basis, cash and overdraft balances relating to the cash pooling arrangements are reported on a net basis in the statement of financial position. Heineken N.V. Annual Report 2018 Financial Statements Sustainability Review Other Information HEINEKEN mainly uses bonds and bank loans to ensure sufficient financing to support its operations. Net interest-bearing debt is the key metric for HEINEKEN to measure its indebtness. Note 2018 2017 In millions of Non-current Current Total Non-current Current Total Unsecured bond issues 12,179 971 13,150 11,789 159 11,948 Unsecured bank loans 215 13 228 109 142 251 Secured bank loans 94 4 98 105 4 109 Other interest-bearing liabilities 140 37 177 163 993 1,156 Deposits from third parties1 678 678 649 649 Bank overdrafts and commercial paper 655 655 1,265 1,265 12,628 2,358 14,986 12,166 3,212 15,378 Market value of cross-currency interest rate swaps 11.5 (2) (57) Cash and cash equivalents 11.2 (2,903) (2,442) Net interest-bearing debt position 12,081 12,879 1Mainly employee deposits. Cash flows from financing activities are mainly generated by bonds, bank loans and other interest-bearing liabilities presented above. Additionally, HEINEKEN also uses derivatives for its financing, which can be assets and liabilities. The below table shows the reconciliation of the liabilities and assets arising from financing activities to the cash flow from financing activities. Bank overdrafts and commercial paper form an integral part of HEINEKEN's cash management and are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. For more information on derivatives refer to note 11.6.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 97