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Notes to the Consolidated Financial Statements
7. Working capital
7.1 Inventories
7.2 T rade and other receivables
O Heineken N.V. Report of the Report of the Financial Sustainability Other
Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
Inventories include raw and packaging materials, work in progress, spare parts, goods
finished products.
In millions of
Raw materials
Work in progress
Finished products 460 488
Goods for resale 331 339
Non-returnable packaging 241 283
Other inventories and spare parts 377 448
1,958 2,213
During 2020, inventories were written down by €20 million to net realisable value (2019: €7 million).
Accounting policies
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based
on weighted average cost, and includes expenditure incurred in acquiring the inventories, production
or conversion costs and other costs incurred in bringing them to their existing location and condition.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs
of completion and selling expenses.
Trade and other receivables arise during the course of ordinary activities, for example from the sale of
inventory, from proceeds for contract brewing or from royalty fees.
2,807 4,123
Trade and other receivables contain a net impairment loss of €141 million (2019: 65 million) from contracts
with customers, which is included in expenses for raw materials, consumables and services. The increase in
impairment losses compared to last year is primarily due to the impact of the COVID-19 pandemic.
The ageing of trade and other receivables (excluding prepayments) as at 31 December 2020 is as follows:
In millions of
2020
Past due
Total
Not past due
0-30 days
31-120 days
>120 days
Gross
2,928
1,872
245
262
549
Allowance
(504)
(79)
(19)
(76)
(330)
2,424
1,793
226
186
219
In millions of
2019
Past due
Total
Not past due
0-30 days
31-120 days
>120 days
Gross
4,172
2,814
455
313
590
Allowance
(434)
(44)
(10)
(57)
(323)
3,738
2,770
445
256
267
for resale and
2020
321
228
2019
403
252
In millions of
2020
2019
Trade receivables
1,768
2,913
Other receivables
636
813
Trade receivables due from associates and joint ventures
20
12
Prepayments
383
385
