Notes to the Consolidated Financial Statements (continued)
-
-
Accounting estimates
Accounting policies
6.6 Amortisation, depreciation and impairments
Accounting policies
O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
The number of outstanding share rights and the movement over the year under the LTIP of the Executive
Board and senior management are as follows:
Number of share
rights 2019
Number of share
rights 2018
Outstanding as at 1 January
2,047,880
2,266,642
Granted during the year
531,949
444,556
Forfeited during the year
(157,276)
(124,039)
Vested previous year
(617,012)
(699,032)
Performance adjustment
(59,523)
159,753
Outstanding as at 31 December
1,746,018
2,047,880
Share price as at 31 December
94.92
77.20
At vesting, HEINEKEN deducts a number of shares to cover payroll taxes and mandatory withholdings on
behalf of the individual employees. Therefore, the number of Heineken N.V. shares to be received by LTIP
participants is a net (after tax) number. Ownership of the vested LTIP 201 7-2019 shares will transfer to the
Executive Board members shortly after publication of the annual results in 2020 and to senior management
on 1 April 2020.
Other share-based compensation plans
Under the extraordinary share plans for senior management 2,500 shares were granted in 2019 and
7,025 (gross) shares were vested in 2019. 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 2019 are €0.2 million (2018: €0.4 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 2019 amount to €31 million
(2018: €48 million).
In millions of
Note
2019
2018
Share rights granted in 2016
17
Share rights granted in 2017
13
18
Share rights granted in 2018
8
13
Share rights granted in 2019
10
Total expense recognised in personnel expenses
6.4
31
48
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019
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
2019
2018
Property, plant and equipment
8.2
1,540
1,288
Intangible assets
8.1
419
405
1,959
1,693
As a result of the implementation of IFRS 16, Property, plant and equipment as presented in the table above
includes the depreciation and impairment of ROU assets of €238 million (2018: nil).
Refer to note 8.1 for the accounting policy on impairments and amortisation and note 8.2 for the policy
on depreciation.
