Notes to the Consolidated Financial Statements (continued)
11 Financing and capital structure
11.1 Net finance income and expense
Interest income
Interest expenses
11.2 Cash and cash equivalents
O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
Interest expenses are mainly related to interest charges over the outstanding bonds, commercial paper
and bank loans (refer to note 11.3). Other net finance income and expenses comprises dividend income,
fair value changes of financial assets and liabilities measured at fair value, transactional foreign exchange
gains and losses (on net basis), unwinding of discount on provisions and interest on the net defined
benefit obligation.
In millions of
Note
2019
2018*
75
71
(529)
(492)
Dividend income from fair value through OCI investments
10
16
Net change in fair value of derivatives
(14)
71
Net foreign exchange gain/floss)1
(25)
(102)
Unwinding discount on provisions
9.2
(19)
(17)
Interest on the net defined benefit obligation
9.1
(26)
(31)
Other
15
(1)
Other net finance income/(expenses)
(59)
(64)
Net finance income/(expenses)
(513)
(485)
Restated for IAS 37. Refer to note 4 for further details.
1 Transactional foreign exchange effects of working capital and foreign currency denominated loans, the latter being offset by net change in fair value
of derivatives.
Interest expenses include the interest component of lease liabilities of €55 million (2018: N/A).
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019
Other Information
Accounting policies
Interest income and expenses are recognised as they accrue, using the effective interest method.
Dividend income is recognised in the income statement on the date that HEINEKEN's right to receive
payment is established, which is the ex-dividend date in the case of quoted securities.
Cash and cash equivalents comprise cash balances and call deposits. In general bank overdrafts 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.
In millions of
Note
2019
2018
Cash and cash equivalents
1,821
2,903
Bank overdrafts
11.3
(1,134)
(655)
Cash and cash equivalents in the statement of cash flows
687
2,248
