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Financial Instruments
 6 Months Ended
Jun. 30, 2021
Text Block [Abstract]  
Financial Instruments
7    FINANCIAL INSTRUMENTS
The Group’s Treasury function aims to protect the Group’s financial investments, while maximising returns. The fair value of financial assets is the same as the carrying amount for 2021 and 2020. The Group’s cash resources and other financial assets are shown below.
 
     30 June 2021      31 December 2020      30 June 2020  
€ million
    Current      Non-
current		      Total      Current      Non-
current		      Total      Current      Non-
current		      Total  
Cash and cash equivalents
                                                                                 
Cash at bank and in hand
      2,625        —        2,625        2,764        —        2,764        2,672        —        2,672  
Short-term deposits
(a)
      1,411        —        1,411        2,764        —        2,764        2,176        —        2,176  
Other cash equivalents
      146        —        146        20        —        20        7        —        7  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
    
 
4,182
 
   
 
—
 
   
 
4,182
 
   
 
5,548
 
   
 
—
 
   
 
5,548
 
   
 
4,855
 
   
 
—
 
   
 
4,855
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Other financial assets
                                                                                 
Financial assets at amortised cost
(b)
      514        148        662        468        138        606        774        129        903  
Financial assets at fair value through other comprehensive income
(c)
      9        413        422        9        361        370        —        304        304  
Financial assets at fair value through profit or loss:
                                                                                 
Derivatives that relate to financial liabilities
      40        32        72        59        21        80        69        96        165  
Other
(d)
      322        367        689        272        356        628        257        286        543  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
    
 
885
 
   
 
960
 
   
 
1,845
 
   
 
808
 
   
 
876
 
   
 
1,684
 
   
 
1,100
 
   
 
815
 
   
 
1,915
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total financial assets
(e)
   
 
5,067
 
   
 
960
 
   
 
6,027
 
   
 
6,356
 
   
 
876
 
   
 
7,232
 
   
 
5,955
 
   
 
815
 
   
 
6,770
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
(a)
Short-term deposits typically have maturity of up to
3
months.
(b)
Current financial assets at amortised cost include short term deposits with banks with maturities longer than three months excluding deposits which are part of a recognised cash management process and loans to joint venture entities.
Non-current
financial assets at amortised cost include judicial deposits of €
107
 million (31 December 2020: €
101
 million, 30 June 2020: €
94
million).
(c)
Included within
non-current
financial assets at fair value through other comprehensive income are equity investments of €
408
 million (31 December 2020: €
356
 million, 30 June 2020: €
284
million).
(d)
Current other financial assets at fair value through profit or loss include
A-
or higher rated money and capital market instruments. Included within
non-current
financial assets at fair value through profit or loss are assets in a trust to fund benefit obligations in the US, an option over
non-controlling
interest in a subsidiary in Hong Kong and investments in a number of companies and financial institutions in North America, North Asia, South Asia and Europe.
(e)
Financial assets exclude trade and other current receivables.
The Group is exposed to the risks of changes in fair value of its financial assets and liabilities. The following tables summarise the fair values and carrying amounts of financial instruments and the fair value calculations by category.
 
     Fair value     Carrying amount  
€ million
    As at 30
June
2021		     As at 31
December
2020		     As at 30
June
2020		     As at 30
June
2021		     As at 31
December
2020		     As at 30
June
2020		  
Financial assets
                                                 
Cash and cash equivalents
      4,182       5,548       4,855       4,182       5,548       4,855  
Financial assets at amortised cost
      662       606       903       662       606       903  
Financial assets at fair value through other comprehensive income
      422       370       304       422       370       304  
Financial assets at fair value through profit and loss:
                                                 
Derivatives
      72       80       165       72       80       165  
Other
      689       628       543       689       628       543  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
    
 
6,027
 
  
 
7,232
 
  
 
6,770
 
  
 
6,027
 
  
 
7,232
 
  
 
6,770
 
Financial liabilities
                                                 
Bank loans and overdrafts
      (593 )      (411 )      (851 )      (593 )      (411 )      (851 ) 
Bonds and other loans
      (26,587 )      (26,936 )      (28,206 )      (24,683 )      (24,585 )      (25,837 ) 
Lease liabilities
      (1,694 )      (1,771 )      (1,849 )      (1,694 )      (1,771 )      (1,849 ) 
Derivatives
      (224 )      (315 )      (76 )      (224 )      (315 )      (76 ) 
Other financial liabilities
      (348 )      (223 )      (192 )      (348 )      (223 )      (192 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
    
 
(29,446
) 
  
 
(29,656
) 
  
 
(31,174
) 
  
 
(27,542
) 
  
 
(27,305
) 
  
 
(28,805
) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
     Level 1      Level 2     Level 3     Level 1      Level 2     Level 3     Level 1      Level 2     Level 3  
€ million
    As at 30 June 2021     As at 31 December 2020     As at 30 June 2020  
Assets at fair value
                                                                            
Financial assets at fair value through other comprehensive income
      7        3       412       5        3       362       5        4       295  
Financial assets at fair value through profit or loss:
                                                                            
Derivatives
(a)
      —        187       —       —        158       —       —        268       —  
Other
      323        —       366       300        —       328       260        —       283  
Liabilities at fair value
                                                                            
Derivatives
(b)
      —        (311 )      —       —        (418 )      —       —        (187 )      —  
Contingent Consideration
      —        —       (159 )      —        —       (140 )      —        —       (155 ) 
 
(a)
 
Includes €
115
 million (31 December 2020: €
78
 million, 30 June 2020: €
103
million) derivatives, reported within trade receivables, that hedge trading activities.
(b)
 
Includes
€(87) million (31 December 2020: € (103) million, 30 June 2020: €(111) million) derivatives,
 reported within trade payables, that hedge trading activities.
There were no significant changes in classification of fair value of financial assets and financial liabilities since 31 December 2020. There were also no significant movements between the fair value hierarchy classifications since 31 December 2020.
The fair value of trade receivables and payables is considered to be equal to the carrying amount of these items due to their short-term nature.
Calculation of fair values
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used in the year ended 31 December 2020.