Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Long-term Finance Lease Commitments


	€ million		€ million		€ million		€ million		€ million		€ million
	Future						Future
	minimum						minimum
	lease		Finance		Present		lease		Finance		Present
	payments		Cost		value		payments		cost		value
Long-term finance lease commitments	2018		2018		2018		2017		2017		2017
Buildings^(a)		174		57		117		195		75		120
Plant and machinery		13		2		11		11		—		11

		187		59		128		206		75		131
The commitments fall due as follows:
Within 1 year		20		7		13		20		9		11
Later than 1 year but not later than 5 years		71		20		51		68		23		45
Later than 5 years		96		32		64		118		43		75

		187		59		128		206		75		131

^(a)	All leased land is classified as operating leases.

Summary of Net Book Value of Property Plant and Equipment Under Lease Agreement

The table below shows the net book value of property, plant and equipment under a number of finance lease agreements.


	€ million			€ million			€ million
				Plant and
Net book value	Buildings			equipment			Total
Cost		216			106			322
Accumulated depreciation		(94	)		(95	)		(189	)

31 December 2018		122			11			133

Cost		206			125			331
Accumulated depreciation		(84	)		(108	)		(192	)

31 December 2017		122			17			139

Summary of Operating Lease and Other Commitments


	€ million		€ million
Long-term operating lease commitments	2018		2017
Land and buildings		1,803		1,885
Plant and machinery		661		569

		2,464		2,454

€million

€million

€million

€million

Operating

Operating

Other

Other

leases

leases

commitments

commitments

Operating lease and other commitments fall due as follows:

2018

2017

2018

2017

Within 1 year

481

418

1,099

1,274

Later than 1 year but not later than 5 years

1,259

1,250

780

935

Later than 5 years

724

786

2,464

2,454

1,910

2,240

Summary of Contingent Liabilities

A summary of our contingent liabilities is shown in the table below:


	€ million		€ million
	2018		2017
Corporate reorganisation – IPI, PIS and COFINS taxes and penalties^(a)		2,032		2,092
Inputs for PIS and COFINS taxes		52		16
Goodwill amortisation		177		121
Other tax assessments – approximately 600 cases		916		1,095

Total Brazil Tax		3,177		3,324
Brazil other		67		19
Contingent liabilities outside Brazil		414		324

Total contingent liabilities		3,658		3,667

^(a)

During 2004, and in common with many other businesses operating in Brazil, one of our Brazilian subsidiaries received a notice of infringement from the Federal Revenue Service in respect of indirect taxes. The notice alleges that a 2001 reorganisation of our local corporate structure was undertaken without valid business purpose. The 2001 reorganisation was comparable with restructurings done by many companies in Brazil. The original dispute was resolved in the courts in the Group’s favour. However, in 2013 a new assessment was raised in respect of a similar matter. Additionally, during the course of 2014 and again in 2017 and in 2018 other notices of infringement were issued based on the same grounds argued in the previous assessments. The total amount of the tax assessments in respect of this matter is €2,032 million (2017: €2,092 million). The judicial process in Brazil is likely to take a number of years to conclude.