Financial Instruments Fair Value Risk (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Fair Values of Financial Assets and Financial Liabilities

The Group is exposed to the risks of changes in fair value of its financial assets and liabilities. The following table summarises the fair values and carrying amounts of financial instruments.


	€ million			€ million			€ million			€ million
							Carrying			Carrying
	Fair value			Fair value			amount			amount
Fair values of financial assets and financial liabilities	2018			2017			2018			2017
Financial assets
Cash and cash equivalents		3,230			3,317			3,230			3,317
Held-to-maturity investments^(a)		—			163			—			163
Loans and receivables^(a)		—			463			—			463
Available-for-sale financial assets^(a)		—			564			—			564
Amortised cost^(a)		629			—			629			—
Financial assets at fair value through other comprehensive income^(a)		329			—			329			—
Financial assets at fair value through profit or loss:
Derivatives		194			116			194			116
Other		364			139			364			139

		4,746			4,762			4,746			4,762
Financial liabilities
Bank loans and overdrafts		(816	)		(995	)		(814	)		(992	)
Bonds and other loans		(23,691	)		(23,368	)		(23,391	)		(22,709	)
Finance lease creditors		(141	)		(147	)		(128	)		(131	)
Derivatives		(402	)		(421	)		(402	)		(421	)
Other financial liabilities		(150	)		(177	)		(150	)		(177	)

		(25,200	)		(25,108	)		(24,885	)		(24,430	)

^(a)	Classification has changed following adoption of IFRS 9. See page 117 and note 1 for further details.

Summary of Assets and Liabilities Carried at Fair Value, Classification of Fair Value Calculations by Category

For assets and liabilities which are carried at fair value, the classification of fair value calculations by category is summarised below:


			€ million		€ million		€ million			€ million			€ million			€ million			€ million			€ million
																			Total fair			Total fair
			Level 1		Level 1		Level 2			Level 2			Level 3			Level 3			value			value
	Notes		2018		2017		2018			2017			2018			2017			2018			2017
Assets at fair value
Financial assets at fair value through other comprehensive income		17A		160		—		5			—			164			—			329			—
Available-for-sale financial assets		17A		—		215		—			7			—			342			—			564
Financial assets at fair value through profit or loss:
Derivatives^(a)		16C		—		—		276			173			—			—			276			173
Other		17A		145		137		—			—			219			2			364			139
Liabilities at fair value
Derivatives^(b)		16C		—		—		(542	)		(534	)		—			—			(542	)		(534	)
Contingent consideration		14		—		—		—			—			(142	)		(445	)		(142	)		(445	)

^(a)	Includes €82 million (2017: €57 million) derivatives, reported within trade receivables, that hedge trading activities.

^(b)	Includes €(140) million (2017: €(113) million) derivatives, reported within trade payables, that hedge trading activities.

Summary of Reconciliation of Movements in Level 3 Valuations


	€ million			€ million
Reconciliation of movements in Level 3 valuations	2018			2017
1 January		(101	)		(106	)
Gains and losses recognised in profit and loss		272			26
Gains and losses recognised in other comprehensive income		(9	)		2
Purchases and new issues		4			(89	)
Sales and settlements		75			(17	)
Transfers into Level 3		—			83

31 December		241			(101	)