Notes to the Consolidated Financial Statements (continued)
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11.3 Borrowings
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O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
The following table presents recognised 'Cash and cash equivalents' and 'Bank overdrafts', and the impact of
the netting of gross amounts. The 'Net amount' below refers to the impact on HEINEKEN's balance sheet if
all amounts subject to legal offset rights are netted.
2019
In millions of
Gross
amounts
Gross amounts
offset in the
statement
of financial
position
Net amounts
presented in
the statement
of financial
position
Amounts
subject to
legal offset
rights
Net
amount
Assets
Cash and cash equivalents
1,821
1,821
(600)
1,221
Liabilities
Bank overdrafts
(1,134)
(1,134)
600
(534)
2018
Assets
Cash and cash equivalents 3,241 (338) 2,903 (260) 2,643
Liabilities
Bank overdrafts (993) 338 (655) 260 (395)
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, €342 million (2018: €330 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.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019^ 9
Other Information
HEINEKEN mainly uses bonds, commercial paper and bank loans to ensure sufficient financing to support
its operations. Net interest-bearing debt is the key metric for HEINEKEN to measure its indebtedness.
2019
2018
In millions of
Note
Non-current
Current
Total
Non-current
Current
Total
Unsecured bond issues
11,774
1,014
12,788
12,179
971
13,150
Lease liabilities
1,003
255
1,258
Bank loans
462
22
484
309
17
326
Other interest-bearing
liabilities
127
568
695
140
37
177
Deposits from third parties1
693
693
678
678
Bank overdrafts
1,134
1,134
655
655
Total borrowings
13,366
3,686
17,052
12,628
2,358
14,986
Market value of cross-
currency interest rate swaps
11.5
28
(2)
Cash and cash equivalents
11.2
(1,821)
(2,903)
Net interest-bearing
debt position
15,259
12,081
1 Mainly employee deposits.
As at 31 December 2019, €103 million of the €484 million of bank loans is secured (2018: €97 million).
As at 31 December 2019 other interest-bearing liabilities includes €532 million of commercial paper
(2018: nil).
