Notes to the Consolidated Financial Statements (continued)
12.2 Deferred tax assets and liabilities
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Movement in deferred tax balances during the year
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O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following items:
Assets Liabilities Net
In millions of
2019
2018*
2019
2018*
2019
2018*
P,P&E
98
92
(803)
(560)
(705)
(468)
Intangible assets
29
29
(1,358)
(1,360)
(1,329)
(1,331)
Investments
41
44
(5)
(5)
36
39
Inventories
47
40
(12)
(12)
35
28
Borrowings
308
11
308
11
Post-retirement obligations
278
231
(4)
(6)
274
225
Provisions
302
310
(28)
(27)
274
283
Other items
138
163
(216)
(162)
(78)
1
Tax losses carried forward
410
407
410
407
Tax assets/(liabilities)
1,651
1,327
(2,426)
(2,132)
(775)
(805)
Set-off of tax
(1,004)
(701)
1,004
701
Net tax assets/(liabilities)
647
626
(1,422)
(1,431)
(775)
(805)
Restated for IAS 37 and to reflect the correct breakdown per category. Refer to note 4 for further details on IAS 37.
Of the total net deferred tax assets of €647 million as at 31 December 2019 (2018: €626 million),
€101 million (2018: €225 million) is recognised in respect of subsidiaries in various countries where there
have been 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 an impact of €82 million (2018: €80 million). This is 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.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019110
Other Information
Tax losses carried forward
HEINEKEN has tax losses carried forward of €4,024 million as at 31 December 2019 (2018: €3,494 million),
out of which €382 million (2018: €356 million) expires in the following five years. €191 million
(2018: €228 million) will expire after five years and €3,451 million (2018: €2,911 million) can be carried
forward indefinitely. Deferred tax assets have not been recognised in respect of tax losses carried forward
of €2,163 million (2018: €1,664 million) as it is not probable that taxable profit will be available to offset
these losses. Out of this €2,163 million (2018: €1,664 million), €173 million (2018: €103 million) expires
in the following five years. €16 million (2018: €40 million) will expire after five years and €1,974 million
(2018: €1,521 million) can be carried forward indefinitely.
In millions of
2019
Changes in Effect of
Balance accounting movements
1 January policy Changes in in foreign
2019* (IFRS 16) consolidation exchange
Recognised Recognised
in income in equity Transfers
Balance
31
December
2019
P,P&E
(468)
(226)
(1)
(16)
11
(5)
(705)
Intangible assets
(1,331)
(19)
(37)
49
9
(1,329)
Investments
39
2
(5)
36
Inventories
28
1
4
2
35
Borrowings
11
291
11
(15)
10
308
Post-retirement
obligations
225
6
(15)
58
274
Provisions
283
(5)
(2)
(2)
274
Other items
1
(65)
(40)
(7)
10
23
(78)
Tax losses carried
forward
407
2
9
(7)
(1)
410
Net tax assets/
(liabilities)
(805)
(18)
(69)
13
68
36
(775)
Restated for IAS 37 and to reflect the correct breakdown per category. Refer to note 4 for further details on IAS 37.
