Notes to the Consolidated Financial Statements (continued)
6.2 Other income
-
6.3 Raw materials, consumables and services
6.4 Personnel expenses
O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
Other income includes the gain from sale of P,P&E and intangible assets. It also includes gains from the sale
of subsidiaries, joint ventures and associates. These transactions do not arise from contracts with customers
and are therefore presented separately from revenue.
In millions of
2019
2018
Gain on sale of property, plant and equipment
20
31
Gain on sale of intangible assets
2
Gain on sale of subsidiaries, joint ventures and associates
75
42
95
75
In 2019, other income mainly relates to the preliminary gain on sale of HEINEKEN's operating entities in
China and Hong Kong (refer to note 10.2).
Accounting policies
Other income is recognised in profit or loss when control over the sold asset is transferred to the buyer.
The amount recognised as other income equals the proceeds obtained from the buyer minus the carrying
value of the sold asset.
In millions of
2019
2018*
Raw materials
2,068
1,897
Non-returnable packaging
4,058
3,624
Goods for resale
1,501
1,533
Inventory movements
(75)
(43)
Marketing and selling expenses
2,632
2,494
Transport expenses
1,325
1,266
Energy and water
572
529
Repair and maintenance
519
527
Other expenses
1,992
2,174
14,592
14,001
Restated for IAS 37. Refer to note 4 for further details.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019 l7!
Other Information
Other expenses mainly include consulting expenses of €219 million (2018: €192 million), telecom
and office automation of €272 million (2018: €239 million), warehousing expenses of €195 million
(2018: €187 million), travel expenses of €150 million (2018: €158 million) and other taxes of €75 million
(2018: €56 million). As a result of the implementation of IFRS 16, other expenses include expenses for
short-term leases of €73 million and low value leases of €39 million, compared to €375 million reported in
2018 for operating lease expenses. The majority of the operating lease expenses are now reported under
amortisation, depreciation and impairments and interest expenses (refer to notes 6.6 and 11.1).
Accounting policies
Expenses are recognised based on accrual accounting. This means that expenses are recognised when the
product is received or the service is provided regardless of when cash outflow takes place.
The average number of full-time equivalent (FTE) employees, excluding contractors, in 2019 was 85,853
(2018: 85,610 FTE), divided per region as follows:
Average number of FTE per region
29,045 28,345
32,694 33,081
14,375 13,974
9,739 10,210
Europe
2019 2018
Africa, Middle East
Eastern Europe
The decrease in Asia Pacific is mainly due to the sale of operating entities in China and Hong-Kong.
Within Europe 4,120 FTE are based in the Netherlands (2018: 4,027 FTE).
HEINEKEN employees are granted with compensations such as salaries and wages, pensions (refer to
note 9.1) and share-based payments (refer to note 6.5). Other personnel expenses include expenses for
contractors of €183 million (2018: €168 million) and restructuring costs of €84 million (2018: €111 million).
Restructuring provisions are disclosed in note 9.2.
