g)@
Notes to the Consolidated Financial Statements
8.5 Other non-current assets
9. Provisions and contingent liabilities
9.1 Post-retirement obligations
Q Heineken N.V. Report of the Report of the Financial Sustainability Other
s Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
Other non-current assets mainly consist of Fair Value through Other Comprehensive Income (FVOCI)
investments, prepayments and other receivables with a duration longer than 12 months.
In millions of
Note
2020
2019
Fair value through OCI investments
117
408
Non-current derivatives
11.6
21
2
Loans to joint ventures and associates
30
38
Long-term prepayments
375
439
Other receivables
341
368
Other non-current assets
884
1,255
The FVOCI investments primarily consist of equity securities. HEINEKEN designates these investments as
FVOCI as these are not held for trading purposes. As at 31 December 2019, the main FVOCI equity investment
was €241 million in the Saigon Alcohol Beer and Beverages Corporation ('SABECO', Vietnam), of which the
majority was sold during 2020.
The other receivables include lease receivables of €160 million (2019: €167 million). Including the short-term
portion of lease receivables, the average outstanding term of the lease receivables is 5.3 years (2019: 4.6 years).
The remainder of other receivables mainly originate from the acquisition of the beer operations of FEMSA
and represent a receivable on the Brazilian authorities on which interest is calculated in accordance with
Brazilian legislation. Collection of this receivable is expected to be beyond a period of five years. A part of the
aforementioned receivables qualify for indemnification towards FEMSA and is provided for.
Sensitivity analysis - equity securities
An increase or decrease of 1% in the share price of the equity securities at the reporting date would not have a
material impact.
Accounting estimates
HEINEKEN determines on each reporting date the impairment of other receivables using an expected credit
loss model, which estimates the credit losses over 12 months. Only in case a significant increase in credit
risk occurs (e.g. more than 30 days overdue, change in credit rating, payment delays in other receivables
from the customer) the credit losses over the lifetime of the asset are incurred. Individually significant other
receivables are tested for impairment on an individual basis. The remaining financial assets are assessed
collectively in groups that share similar credit risk characteristics. For more information on HEINEKEN's
credit risk exposure refer to 11.5.
Accounting policies
Fair value through OCI investments
HEINEKEN's investments in equity securities are classified as FVOCI. These investments are interests in
entities where HEINEKEN has less than significant influence. This is generally the case by ownership of
less than 20% of the voting rights. Upon the sale of these equity securities the accumulated fair value- and
currency translation changes are transferred to retained earnings.
FVOCI investments are measured at fair value (refer to note 13.1). The fair value changes are recognised in OCI
and presented within equity in the fair value reserve. Dividend income is recognised in profit or loss.
Non-current derivatives
Refer to the accounting policies on derivative financial instruments in note 11.6.
Other
The remaining non-current assets as presented in the previous table are initially measured at fair value and
subsequently at amortised cost minus any impairment losses.
HEINEKEN makes contributions to pension plans that provide pension benefits to (former) employees upon
retirement, both via defined benefit as well as defined contribution plans. Other long-term employee benefits
include long-term bonus plans, termination benefits, medical plans and jubilee benefits. Refer to note 6.4 for
the contribution to defined contribution plans. This note relates to HEINEKEN's defined benefit pension
plans. Refer to the table below for the present value of the defined benefit plans as at 31 December.
In millions of
2020
2019
Present value of unfunded defined benefit obligations
203
307
Present value of funded defined benefit obligations
9,387
9,210
Total present value of defined benefit obligations
9,590
9,517
Fair value of defined benefit plan assets
(8,757)
(8,451)
Present value of net obligations
833
1,066
Asset ceiling items
48
53
Defined benefit plans included under non-current assets
5
7
Recognised liability for defined benefit obligations
886
1,126
Other long-term employee benefits
52
63
938
1,189
