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.
