Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | COCA-COLA EUROPEAN PARTNERS plc |
Entity Central Index Key | 0001650107 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 474,920,066 |
Consolidated Income Statement
Consolidated Income Statement - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit or loss [abstract] | |||
Revenue | € 11,518 | € 11,062 | € 9,133 |
Cost of sales | (7,060) | (6,772) | (5,584) |
Gross profit | 4,458 | 4,290 | 3,549 |
Selling and distribution expenses | (2,178) | (2,124) | (1,615) |
Administrative expenses | (980) | (906) | (1,083) |
Operating profit | 1,300 | 1,260 | 851 |
Finance income | 47 | 48 | 31 |
Finance costs | (140) | (148) | (154) |
Total finance costs, net | (93) | (100) | (123) |
Non-operating items | (2) | (1) | (9) |
Profit before taxes | 1,205 | 1,159 | 719 |
Taxes | (296) | (471) | (170) |
Profit after taxes | € 909 | € 688 | € 549 |
Basic earnings per share (in EUR per share) | € 1.88 | € 1.42 | € 1.45 |
Diluted earnings per share (in EUR per share) | € 1.86 | € 1.41 | € 1.42 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of comprehensive income [abstract] | |||
Profit after taxes | € 909 | € 688 | € 549 |
Foreign currency translations: | |||
Pretax activity, net | (35) | (111) | (186) |
Tax effect | 0 | 0 | 0 |
Foreign currency translation, net of tax | (35) | (111) | (186) |
Net investment hedges: | |||
Pretax activity, net | 0 | 0 | (66) |
Tax effect | 0 | 27 | 22 |
Net investment hedges, net of tax | 0 | 27 | (44) |
Cash flow hedges: | |||
Pretax activity, net | (17) | 0 | (11) |
Tax effect | 3 | 0 | 2 |
Cash flow hedges, net of tax | (14) | 0 | (9) |
Total items that may be subsequently reclassified to the income statement: | (49) | (84) | (239) |
Pension plan remeasurements: | |||
Pretax activity, net | 2 | 91 | (65) |
Tax effect | 0 | (18) | 14 |
Pension plan remeasurements, net of tax | 2 | 73 | (51) |
Total items that will not be subsequently reclassified to the income statement | 2 | 73 | (51) |
Other comprehensive loss for the period, net of tax | (47) | (11) | (290) |
Comprehensive income for the period | € 862 | € 677 | € 259 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Non-current: | ||
Intangible assets | € 8,384 | € 8,384 |
Goodwill | 2,518 | 2,520 |
Property, plant and equipment | 3,888 | 3,837 |
Non-current derivative assets | 2 | 2 |
Deferred tax assets | 37 | 56 |
Total non-current assets | 396 | 81 |
Total non-current assets | 15,225 | 14,880 |
Current: | ||
Current derivative assets | 13 | 20 |
Current tax assets | 21 | 25 |
Inventories | 693 | 650 |
Amounts receivable from related parties | 107 | 75 |
Trade accounts receivable | 1,655 | 1,732 |
Other current assets | 193 | 452 |
Cash and cash equivalents | 309 | 360 |
Total current assets | 2,991 | 3,314 |
Total assets | 18,216 | 18,194 |
Non-current: | ||
Borrowings, less current portion | 5,127 | 5,474 |
Employee benefit liabilities | 142 | 162 |
Non-current provisions | 119 | 48 |
Non-current derivative liabilities | 51 | 93 |
Deferred tax liabilities | 2,157 | 2,237 |
Other non-current liabilities | 264 | 208 |
Total non-current liabilities | 7,860 | 8,222 |
Current: | ||
Current portion of borrowings | 491 | 274 |
Current portion of employee benefit liabilities | 19 | 21 |
Current provisions | 133 | 194 |
Current derivative liabilities | 20 | 1 |
Current tax liabilities | 110 | 86 |
Amounts payable to related parties | 191 | 178 |
Trade and other payables | 2,828 | 2,533 |
Total current liabilities | 3,792 | 3,287 |
Total liabilities | 11,652 | 11,509 |
EQUITY | ||
Share capital | 5 | 5 |
Share premium | 152 | 127 |
Merger reserves | 287 | 287 |
Other reserves | (552) | (503) |
Retained earnings | 6,672 | 6,769 |
Total equity | 6,564 | 6,685 |
Total equity and liabilities | € 18,216 | € 18,194 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Profit before taxes | € 1,205 | € 1,159 | € 719 |
Adjustments to reconcile profit before tax to net cash flows from operating activities: | |||
Depreciation | 461 | 443 | 333 |
Amortisation of intangible assets | 51 | 47 | 39 |
Share-based payment expense | 17 | 14 | 42 |
Finance costs, net | 93 | 100 | 123 |
Income taxes paid | (263) | (247) | (187) |
Changes in assets and liabilities, net of acquisition amounts: | |||
Decrease/(increase) in trade and other receivables | 72 | 108 | 87 |
Decrease/(increase) in inventories | (45) | 16 | 61 |
Increase/(decrease) in trade and other payables | 297 | 142 | 155 |
Increase/(decrease) in provisions | 9 | (67) | 37 |
Change in other operating assets and liabilities | (91) | (92) | (165) |
Net cash flows from operating activities | 1,806 | 1,623 | 1,244 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (525) | (484) | (459) |
Purchases of capitalised software | (75) | (36) | (38) |
Proceeds from sales of property, plant and equipment | 4 | 32 | 12 |
Settlement of net investment hedges | 0 | 0 | (8) |
Cash from acquisition of bottling operations | 0 | 0 | 110 |
Net cash flows used in investing activities | (596) | (488) | (383) |
Changes from financing cash flows | |||
Proceeds from borrowings, net of issuance costs | 398 | 350 | 3,174 |
Repayments on third-party borrowings | (444) | (1,180) | (241) |
Changes in short-term borrowings | (131) | 250 | (183) |
Interest paid, net | (81) | (94) | (110) |
Dividends paid | (513) | (489) | (204) |
Exercise of employee share options | 25 | 13 | 18 |
Repurchases of share-based payments | 0 | 0 | (27) |
Repayment of loan with TCCC assumed in acquisition | 0 | 0 | (73) |
Return of capital to CCE shareholders | 0 | 0 | (2,963) |
Share repurchases under share repurchase programmes | (502) | 0 | 0 |
Other financing activities, net | (11) | (2) | (17) |
Net cash flows used in financing activities | (1,259) | (1,152) | (626) |
Net change in cash and cash equivalents | (49) | (17) | 235 |
Net effect of currency exchange rate changes on cash and cash equivalents | (2) | (9) | (5) |
Cash and cash equivalents at beginning of period | 360 | 386 | 156 |
Cash and cash equivalents at end of period | € 309 | € 360 | € 386 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity Statement - EUR (€) € in Millions | Total | Pre-Merger Share-based Compensation | Post-Merger Share-based Compensation | Share capital | Share capitalPre-Merger Share-based Compensation | Share capitalPost-Merger Share-based Compensation | Share premium | Share premiumPre-Merger Share-based Compensation | Share premiumPost-Merger Share-based Compensation | Merger reserves | Other reserves | Treasury shares | Treasury sharesPre-Merger Share-based Compensation | Treasury sharesPost-Merger Share-based Compensation | Retained earnings | Retained earningsPre-Merger Share-based Compensation | Retained earningsPost-Merger Share-based Compensation |
Equity attributable to owners of parent at Dec. 31, 2015 | € 871 | € 3 | € 2,729 | € 0 | € (180) | € (3,307) | € 1,626 | ||||||||||
Profit after taxes | 549 | 549 | |||||||||||||||
Other comprehensive income/(expense) | (290) | (239) | (51) | ||||||||||||||
Comprehensive income for the period | 259 | (239) | 498 | ||||||||||||||
Increase (decrease) through share-based payment transactions related to merger | € 9 | € 9 | € 9 | € 9 | € (6) | € 0 | € 6 | € 0 | |||||||||
Cancellation of CCE shares | 0 | (3) | (2,738) | (572) | 3,313 | ||||||||||||
Issuance of CCEP shares in consideration for CCIP and CCEG | 8,469 | 3 | 8,466 | ||||||||||||||
Group reconstruction transaction | 0 | 2 | 7,605 | (7,607) | |||||||||||||
Return of capital to CCE shareholders | (2,963) | (2,963) | |||||||||||||||
Capital reduction | 0 | (7,500) | 7,500 | ||||||||||||||
Reclassifications of share-based payments | (22) | (22) | |||||||||||||||
Equity-settled share-based payment expense | 29 | € 0 | € 0 | 29 | |||||||||||||
Share-based payment tax effects | 5 | 5 | |||||||||||||||
Dividends | (205) | (205) | |||||||||||||||
Equity attributable to owners of parent at Dec. 31, 2016 | 6,461 | 5 | 114 | 287 | (419) | 0 | 6,474 | ||||||||||
Profit after taxes | 688 | 688 | |||||||||||||||
Other comprehensive income/(expense) | (11) | (84) | 73 | ||||||||||||||
Comprehensive income for the period | 677 | (84) | 761 | ||||||||||||||
Issuance of CCEP shares in consideration for CCIP and CCEG | 8,500 | ||||||||||||||||
Issue of shares during the year | 13 | 13 | |||||||||||||||
Equity-settled share-based payment expense | 11 | 0 | 11 | ||||||||||||||
Share-based payment tax effects | 14 | 14 | |||||||||||||||
Dividends | (491) | (491) | |||||||||||||||
Equity attributable to owners of parent at Dec. 31, 2017 | 6,685 | 5 | 127 | 287 | (503) | 0 | 6,769 | ||||||||||
Profit after taxes | 909 | 909 | |||||||||||||||
Other comprehensive income/(expense) | (47) | (49) | 2 | ||||||||||||||
Comprehensive income for the period | 862 | (49) | 911 | ||||||||||||||
Issue of shares during the year | 25 | 25 | |||||||||||||||
Equity-settled share-based payment expense | 16 | 0 | 16 | ||||||||||||||
Share-based payment tax effects | (7) | (7) | |||||||||||||||
Dividends | (515) | (515) | |||||||||||||||
Own shares purchased under share buyback programme | (502) | (0.1) | 0.1 | (502) | |||||||||||||
Equity attributable to owners of parent at Dec. 31, 2018 | € 6,564 | € 5 | € 152 | € 287 | € (552) | € 0 | € 6,672 |
GENERAL INFORMATION AND BASIS O
GENERAL INFORMATION AND BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2018 | |
Corporate Information And Statement of IFRS Compliance [Abstract] | |
GENERAL INFORMATION AND BASIS OF PREPARATION | GENERAL INFORMATION AND BASIS OF PREPARATION Coca-Cola European Partners plc (the Company or Parent Company) was created through the Merger on 28 May 2016 of the businesses of Coca-Cola Enterprises, Inc. (CCE), Coca-Cola Iberian Partners, S.A. (CCIP) and Coca-Cola Erfrischungsgetränke GmbH (CCEG) (the Merger). The Company and its subsidiaries (together CCEP, or the Group) are a leading consumer goods group in Europe, making, selling and distributing an extensive range of ready to drink beverages. CCEP is a public company limited by shares, incorporated under the laws of England and Wales with the registered number in England of 09717350. The Group’s shares are listed and traded on Euronext Amsterdam, the New York Stock Exchange, Euronext London and the continuous market of the Spanish Stock Exchanges. The consolidated financial statements of the Group for the year ended 31 December 2018 were approved and signed by Damian Gammell, Chief Executive Officer on 14 March 2019 having been duly authorised to do so by the Board of Directors. Basis of preparation Upon the consummation of the Merger, the historical consolidated financial statements of CCE became CCEP’s historical financial statements as CCE was deemed to be the predecessor to CCEP. Therefore, the financial results from 1 January 2016 to 27 May 2016 refer to CCE and its consolidated subsidiaries, and the periods subsequent to 28 May 2016 refer to the consolidated financial results of CCEP. Additionally, these consolidated financial statements reflect the following: • They have been prepared in accordance with IFRS as issued by the International Accounting Standards Board, IFRS as adopted by the European Union and in accordance with the provisions of the Companies Act 2006. There are no differences between IFRS as adopted by the European Union and IFRS as issued by the International Accounting Standards Board (IASB) that have an impact for the years presented. • They have been prepared under the historical cost convention, except for certain items measured at fair value. Those accounting policies have been applied consistently in all periods, except for the adoption of new standards and amendments as of 1 January 2018, as described below under Accounting Policies. • They are presented in euros, which is also the Parent Company’s functional currency and all values are rounded to the nearest € million except where otherwise indicated. Basis of consolidation The consolidated financial statements comprise the financial statements of the Group and its subsidiaries. All subsidiaries have accounting years ended 31 December and apply consistent accounting policies for the purpose of the consolidated financial statements. Subsidiary undertakings are consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through the Group’s power to direct the activities of the entity. All intercompany accounts and transactions are eliminated on consolidation. Foreign currency The individual financial statements of each subsidiary are presented in the currency of the primary economic environment in which the subsidiary operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each subsidiary are expressed in euros. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are remeasured to the functional currency of the entity at the rate of exchange in effect at the statement of financial position date with the resulting gain or loss recorded in the consolidated income statement . The consolidated income statement includes non-operating items which are primarily made up of remeasurement gains and losses related to currency exchange rate fluctuations on financing transactions denominated in a currency other than the subsidiary’s functional currency. Non-operating items are shown on a net basis and reflect the impact of any derivative instruments utilised to hedge the foreign currency movements of the underlying financing transactions. The assets and liabilities of the Group's foreign operations are translated from local currencies to the euro reporting currency at currency exchange rates in effect at the end of each reporting period. Revenues and expenses are translated at average monthly currency exchange rates, with average rates being a reasonable approximation of the rates prevailing on the transaction dates. Gains and losses from translation are included in other comprehensive income. On disposal of a foreign operation, accumulated exchange differences are recognised as a component of the gain or loss on disposal. Reporting periods In these consolidated financial statements, the Group is reporting the financial results for the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 . Sales of the Group’s products are seasonal, with the second and third quarters accounting for higher unit sales of the Group’s products than the first and fourth quarters. The seasonality of the Group’s sales volume, combined with the accounting for fixed costs such as depreciation, amortisation, rent and interest expense, impacts the Group’s reported results for the first and second halves of the year. Additionally, year over year shifts in holidays, selling days and weather patterns can impact the Group’s results on an annual or half-yearly basis. The following table summarises the number of selling days by quarter for the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 (based on a standard five-day selling week): First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2018 65 65 65 66 261 2017 65 65 65 65 260 2016 66 65 65 65 261 Accounting policies The accounting policies applied by the Group are included in the relevant notes herein. Effective 1 January 2018, the Group implemented the following new accounting policies, following changes in the related accounting standards. Refer to Note 23 for accounting standards issued but not yet effective. IFRS 15 - Revenue recognition and deductions from revenue (IFRS 15) The Group derives its revenues by making, selling and distributing ready to drink beverages. The revenue from the sale of our products is recognised at the point in time at which control passes to a customer, typically when products are delivered to a customer. A receivable is recognised by the Group at the point in time at which the right to consideration becomes unconditional. Therefore, the adoption of IFRS 15 on 1 January 2018 did not have an impact on the manner in which the Group recognised revenue. The Group also examined the terms of the various promotional programmes under which rebates, refunds, price concessions or similar items can be earned by customers for attaining agreed upon sales levels or for participating in specific marketing programmes. Those promotional programmes do not give rise to a separate performance obligation. Where the consideration the Group is entitled to varies because of such programmes, it is deemed to be variable consideration. The related accruals are recognised as a deduction from revenue and are not considered distinct from the sale of products to the customer. Variable consideration is only included to the extent that it is highly probable that the inclusion will not result in a significant revenue reversal in the future normal commercial terms. Therefore, the variable consideration and classification requirements of IFRS 15 did not have any impact in the Group’s consolidated financial statements. Financing elements are not deemed present in our contracts with customers as the sales are made with credit terms not exceeding normal commercial terms. Taxes on sugared soft drinks, excise taxes and taxes on packaging are recorded on a gross basis (i.e. included in revenue) where the Group is the principal in the arrangement. Value added taxes are recorded on a net basis (i.e. excluded from revenue). The Group assesses these taxes and duties on a jurisdiction by jurisdiction basis to conclude on the appropriate accounting treatment. IFRS 9 - Financial Instruments (IFRS 9) IFRS 9 has been developed by the International Accounting Standards Board (IASB) to replace IAS 39 Financial Instruments: Recognition and Measurement (IAS 39). IFRS 9 is effective for annual periods beginning on or after 1 January 2018 and was applied prospectively. Classification and measurement As part of the IFRS 9 transition, there was no material change in the measurement or classification of assets or liabilities in the Group’s consolidated financial statements. Impairment of financial assets The expected credit loss model required under IFRS 9 primarily impacts the Group’s trade receivables. The simplified approach permitted under IFRS 9 was applied across the Group to measure expected credit losses using a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. This approach is substantially similar to the reserving methodology applied under IAS 39 and the impact was insignificant. Hedge accounting The hedge principles under IFRS 9 align more closely with the Group’s financial risk management as described in Note 22. Therefore more hedge relationships during 2018 were eligible for hedge accounting upon the adoption of IFRS 9. Other amendments and interpretations The Group has also adopted the Amendments to IFRS 2, “Classification and Measurement of Share-based Payment Transactions” which did not have an impact on the consolidated financial statements. Significant judgements and estimates The preparation of these consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgements made in applying the Group’s accounting policies were applied consistently across the annual periods. The significant judgements and key sources of estimation uncertainty that have a significant effect on the amounts recognised in these financial statements are outlined below: Deductions from revenue and sales incentives The Group participates in various promotional programmes with customers designed to increase the sale of products. Among the programmes are arrangements under which rebates, refunds, price concessions or similar items can be earned by customers for attaining agreed upon sales levels, or for participating in specific marketing programmes. Those promotional programmes do not give rise to a separate performance obligation. Where the consideration the Group is entitled to varies because of such programmes, the amount payable is deemed to be variable consideration. Management makes estimates on an ongoing basis for each individual promotion to assess the value of the variable consideration. The related accruals are recognised as a deduction from revenue and are not considered distinct from the sale of products to the customer. Refer to Note 12 for further details. Income tax The Group is subject to income taxes in numerous jurisdictions and there are many transactions for which the ultimate tax determination cannot be assessed with certainty in the ordinary course of business. The Group recognises a provision for situations that might arise in the foreseeable future based on assessment of the probabilities as to whether additional taxes will be due. In addition, the Group is involved in various legal proceedings and tax matters. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made, management provides for its best estimate of the liability. Where the final outcome on these matters is different from the amounts that were initially recorded, such differences will impact the tax provision in the period in which such determination is made. These estimates are subject to potential change over time as new facts emerge and each circumstance progresses. The evaluation of deferred tax assets recoverability requires judgements to be made regarding the availability of future taxable income in the jurisdiction giving rise to the deferred tax asset. Refer to Note 18 for further details regarding income taxes. Intangible assets and goodwill The Group has assigned indefinite lives to its bottling agreements with The Coca-Cola Company (TCCC). This judgement has been made after evaluating the contractual provisions of the bottling agreements, the Group’s mutually beneficial relationship with TCCC and the history of renewals for bottling agreements. The Group has allocated the goodwill associated with the Merger to the appropriate cash-generating units (CGU). This judgement was based on estimated synergy benefits expected to be realised for each CGU. Determining whether goodwill and intangible assets with indefinite lives are impaired requires an estimation of the value in use or the fair value less costs to sell of the cash-generating units (CGU) to which the goodwill or intangible asset has been allocated. The value in use calculation requires management’s judgement in estimating the future cash flows expected to arise from the CGU. Refer to Note 4 for further details about the judgement regarding the lives of bottling agreements, as well as the sensitivity analysis of the assumptions used in the impairment analysis of goodwill and intangible assets with indefinite lives. Restructuring The Group holds provisions related to its ongoing restructuring programmes. These provisions are predominantly made up of severance costs. While a detailed plan is in place for the respective events, the amount and timing of outflows is subject to estimation uncertainty. Estimates are made by management based on the information available at the statement of financial position date. Actual outflows may not occur as anticipated and estimates may prove to be incorrect, leading to further charges or releases of provisions as circumstances dictate. Refer to Note 15 and Note 20 for further details regarding restructuring provisions. Defined benefit plans The determination of pension benefit costs and obligations are estimated based on assumptions determined with the assistance of external actuarial advice. The key assumptions impacting the valuations are the discount rate, salary rate of inflation and mortality rates. Refer to Note 13 for further details about the Group’s defined benefit pension plan costs and obligations. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Operating Segments [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Description of segment and principal activities The Group evaluates its segmental reporting under IFRS 8, “Operating Segments”. The Group derives its revenues through a single business activity, which is making, selling and distributing ready-to-drink beverages. The Group operates solely in developed markets in Western Europe and has a homogenous product portfolio across its geographic territories. Based on the governance structure of the Group, including decision making authority and oversight, the Group has determined that the Board is its Chief Operating Decision Maker (CODM). The Board, as the CODM, allocates resources and evaluates performance at a consolidated level and, therefore, the Group has one operating segment. No single customer accounted for more than 10% of the Group’s revenue during the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 . Revenue by geography The following table summarises revenue from external customers by geography, which is based on the origin of the sale: Year ended 31 December 2018 31 December 2017 31 December 2016 Revenue: € million € million € million Spain/Portugal/Andorra (A) 2,670 2,706 1,721 Germany 2,335 2,218 1,335 Great Britain 2,280 2,026 2,076 France/Monaco 1,775 1,803 1,791 Belgium/Luxembourg 983 919 909 Netherlands 580 526 505 Norway 439 416 408 Sweden 365 353 350 Iceland 91 95 38 Total 11,518 11,062 9,133 (A) Spain/Portugal/Andorra is also referred to as Iberia. Assets by geography Assets are allocated based on operations and physical location. The following table summarises non-current assets, other than financial instruments and deferred tax assets by geography: 31 December 2018 31 December 2017 € million € million Spain/Portugal/Andorra (A) 6,873 6,561 Germany 3,160 3,176 Great Britain 2,441 2,395 France/Monaco 890 876 Belgium/Luxembourg 637 612 Netherlands 440 429 Sweden 404 421 Norway 259 267 Iceland 37 41 Other unallocated 45 44 Total 15,186 14,822 (A) Spain/Portugal/Andorra is also referred to as Iberia. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is calculated by dividing profit after taxes by the weighted average number of shares in issue and outstanding during the period. Diluted earnings per share is calculated in a similar manner, but includes the effect of dilutive securities, principally share options, restricted stock units and performance share units. Share-based payment awards that are contingently issuable upon the achievement of specified market and/or performance conditions are included in the diluted earnings per share calculation based on the number of shares that would be issuable if the end of the period was the end of the contingency period. The following table summarises basic and diluted earnings per share calculations for the years presented: Year ended 31 December 2018 31 December 2017 31 December 2016 Profit after taxes attributable to equity shareholders (€ million) 909 688 549 Basic weighted average number of shares in issue (A) (million) 484 484 380 Effect of dilutive potential shares (B) (million) 4 5 5 Diluted weighted average number of shares in issue (A) (million) 488 489 385 Basic earnings per share (€) 1.88 1.42 1.45 Diluted earnings per share (€) 1.86 1.41 1.42 (A) The increase of the basic and diluted weighted average number of shares in issue in 2017 is due to the Merger transaction and further described in Note 14 . As at 31 December 2018 and at 31 December 2017 , the Group had 474,920,066 shares and 484,586,428 shares, respectively in issue and outstanding. (B) For the year ended 31 December 2018 , there were no outstanding options to purchase shares excluded from the diluted earnings per share calculation. For the years ended 31 December 2017 and 31 December 2016 , outstanding options to purchase 1.2 million shares and 1.2 million shares, respectively, were excluded from the diluted earnings per share calculation because the effect of including these options in the computation would have been anti-dilutive. The dilutive impact of the remaining options outstanding and unvested restricted stock units was included in the effect of dilutive securities. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible assets with indefinite lives Intangible assets with indefinite lives acquired through business combination transactions are measured at fair value at the date of acquisition. These assets are not subject to amortisation but are tested for impairment at least annually at the CGU level or more frequently if facts and circumstances arise that would indicate an impairment may exist. In addition to the annual impairment test, the assessment of indefinite lives is also reviewed annually. Franchise intangible assets The Group’s bottling agreements contain performance requirements and convey the rights to distribute and sell products within specified territories. The Group’s agreements with TCCC for each of its territories have terms of 10 years and expire on 28 May 2026 , with each containing the right for the Group to request a 10 year renewal. While these agreements contain no automatic right of renewal beyond that date, the Group believes that its interdependent relationship with TCCC and the substantial cost and disruption to TCCC that would be caused by non-renewal ensure that these agreements will continue to be renewed and, therefore, are essentially perpetual. The Group has never had a bottling agreement with TCCC terminated due to non-performance of the terms of the agreement or due to a decision by TCCC to terminate an agreement at the expiration of a term. After evaluating the contractual provisions of bottling agreements, the Group’s mutually beneficial relationship with TCCC and history of renewals, indefinite lives have been assigned to all of the Group’s franchise intangible assets. Goodwill Goodwill is initially measured as the excess of the total consideration transferred over the amount recognised for net identifiable assets acquired and liabilities assumed in a business combination. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the gain is recognised in the consolidated income statement as a bargain purchase. Goodwill is not subject to amortisation. It is tested annually for impairment at the CGU level or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill acquired in a business combination is, from the acquisition date, allocated to the CGU that is expected to benefit from the synergies of the combination irrespective of whether a CGU is part of the business combination. Intangible assets with finite lives Intangible assets with finite lives are measured at cost of acquisition or production and are amortised using the straight-line method over their respective estimated useful lives. Finite lived intangible assets are assessed for impairment whenever there is an indication that they may be impaired. The amortisation period and method are reviewed annually. Internally generated software The Group capitalises certain development costs associated with internally developed software, including external direct costs of materials and services and payroll costs for employees devoting time to a software project and any such software acquired as part of a business combination. Development expenditure is recognised as an intangible asset only after its technical feasibility and commercial viability can be demonstrated. When capitalised software is not integral to related hardware it is treated as an intangible asset; otherwise it is included within property, plant and equipment. The estimated useful life of capitalised software is 5 years. Amortisation expense for capitalised software is included within administrative expenses and was €43 million , €38 million and €33 million for the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 , respectively. Customer relationships The Group acquired certain customer relationships in connection with the acquisitions of the Norway and Sweden bottling operations from TCCC in 2010 and the Merger with CCIP and CCEG in 2016. These customer relationships were recorded at their fair values on the date of acquisition, and they are amortised over an estimated economic life of 20 years. The fair values were determined using a “with and without” valuation technique, which compares the revenues with all assets of the business in place, to a “without” scenario, which assumes the customer relationship asset and related revenues do not exist and must be rebuilt over time. Amortisation expense for these assets is included within administrative expenses and was €8 million , €9 million and €6 million for the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 , respectively. Balances and movements in intangible assets and goodwill The following table summarises the movements in the carrying amounts of intangible assets and goodwill for the periods presented: Franchise intangible Software Customer relationships Assets under construction Total intangibles Goodwill Cost: € million € million € million € million € million € million As at 31 December 2016 8,003 277 193 3 8,476 2,427 Additions — 26 — 10 36 — Disposals — (5 ) — — (5 ) — Currency translation adjustments (73 ) (14 ) (1 ) — (88 ) (5 ) Acquisition accounting adjustments (A) 179 (17 ) (30 ) (3 ) 129 98 As at 31 December 2017 8,109 267 162 10 8,548 2,520 Additions — 32 — 43 75 — Disposals — (4 ) — — (4 ) — Transfers and reclassifications — 1 — (1 ) — — Currency translation adjustments (25 ) 4 — — (21 ) (2 ) As at 31 December 2018 8,084 300 162 52 8,598 2,518 Accumulated amortisation: As at 31 December 2016 — (121 ) (11 ) — (132 ) — Amortisation expense — (38 ) (9 ) — (47 ) — Disposals — 5 — — 5 — Currency translation adjustments — 9 1 — 10 — As at 31 December 2017 — (145 ) (19 ) — (164 ) — Amortisation expense — (43 ) (8 ) — (51 ) — Disposals — 3 — — 3 — Currency translation adjustments — (2 ) — — (2 ) — As at 31 December 2018 — (187 ) (27 ) — (214 ) — Net book value: As at 31 December 2016 8,003 156 182 3 8,344 2,427 As at 31 December 2017 8,109 122 143 10 8,384 2,520 As at 31 December 2018 8,084 113 135 52 8,384 2,518 (A) The fair values of the assets and liabilities acquired as part of the Merger were provisional as at 31 December 2016 due to the complexity of the acquired businesses. During 2017, the Group finalised the valuation process and adjustments were recorded based on new information obtained about facts and circumstances that existed at the date of Merger. Management concluded that the changes in the fair values from the provisional amounts disclosed in the 2016 consolidated financial statements were not material to the Group’s 2016 consolidated financial statements taken as whole. Impairment testing Each CGU is tested for impairment at least annually in the fourth quarter or whenever there is an indication of impairment. The recoverable amount of each CGU is determined through a value in use calculation. To determine value in use for a CGU, estimated future cash flows are discounted to their present values using a pre-tax discount rate reflective of the current market conditions and risks specific to each CGU. If the carrying value of a CGU exceeds its recoverable amount, the carrying value of the CGU is reduced to its recoverable amount and impairment charges are recognised immediately within the consolidated income statement . Impairment charges other than those related to goodwill may be reversed in future periods if a subsequent test indicates that the recoverable amount has increased. Such recoveries may not exceed a CGU’s original carrying value less any depreciation that would have been recognised if no impairment charges were previously recorded. The Group’s CGUs are based on geography and generally represent the individual territories in which the Group operates. For purposes of allocating intangibles, each franchise intangible is allocated to the geographic region to which the agreement relates and goodwill is allocated to each of the CGUs expected to benefit from a business combination, irrespective of whether other assets and liabilities of the acquired businesses are assigned to the CGUs. The following table identifies the carrying value of goodwill and indefinite-lived intangible assets attributable to each significant CGU of the Group. In addition to the significant CGUs of the Group, as at 31 December 2018 the Group had other CGUs with total franchise intangible assets of €1,103 million and goodwill of €295 million , which includes €218 million related to goodwill allocated from the Merger. 31 December 2018 31 December 2017 Franchise intangible Goodwill Franchise intangible Goodwill Cash-generating unit € million € million € million € million Iberia 4,289 1,275 4,289 1,275 Great Britain 1,632 200 1,647 200 Germany 1,060 748 1,060 748 The recoverable amounts of each CGU were determined through a value in use calculation, which uses cash flow projections for a five year period. The key assumptions used in projecting these cash flows were as follows: • Discou nt rate: A weighted average cost of capital was applied specific to each CGU as a hurdle rate to discount cash flows. The discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The table below identifies the pre-tax discount rate attributable to each significant CGU. • Growth rate: Cash flows were projected for five years based on the Group’s three year business plans approved by the Board. Cash flows for the fourth year were projected using compound annual growth rates over the preceding three years, and cash flows for a fifth year and beyond the five year period were projected using a terminal growth rate of 2% . • Gross and operating margins: Gross and operating margins are based on the business plans approved by the Board. Key assumptions are made within these plans about volume, pricing, discounts and costs based on historical data, current strategy and expected market trends. 31 December 2018 31 December 2017 Pre-tax discount rate Cash-generating unit % % Iberia 10 11 Great Britain 10 10 Germany 9 10 The Group did not record any impairment charges as a result of the tests conducted in 2018 and 2017 . The Group’s Great Britain CGU has substantial headroom when comparing the estimated value in use calculation of the CGU versus the CGU’s carrying value. For the Group’s Germany and Iberia CGUs, the headroom in the 2018 impairment analysis was approximately 60% and 20% of carrying value, respectively, which is representative of the fact that the net assets of Germany and Iberia were recently subject to acquisition accounting and fair valued based upon operating plans and macroeconomic conditions present at the time of the Merger. As a result, should operating results or macroeconomic conditions deteriorate versus those utilised to fair value the assets, an impairment of the acquired assets could result in the future. The calculation of value in use is most sensitive to the discount rate and terminal growth rate assumptions. For the Iberia CGU, the Group estimates that a 1.0% increase in the discount rate, or a reduction in terminal growth rates of 1.5% , would eliminate existing headroom. The Group estimates that for the Germany CGU, an approximate 2.5% increase in the discount rate, or a 3.5% reduction in terminal growth rates, would eliminate existing headroom. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is recorded at cost, net of accumulated depreciation and accumulated impairment losses, where cost is the amount of cash or cash equivalents paid to acquire an asset at the time of its acquisition or construction. Major property additions, replacements and improvements are capitalised, while maintenance and repairs that do not extend the useful life of an asset or add new functionality are expensed as incurred. Land is not depreciated, as it is considered to have an indefinite life. For all property, plant and equipment, other than land, depreciation is recorded using the straight-line method over the respective estimated useful lives as follows: Useful life (years) Category Low High Building and improvements 10 40 Machinery, equipment and containers 3 20 Cold-drink equipment 5 13 Vehicle fleet 3 12 Furniture and office equipment 4 10 Gains or losses arising on the disposal or retirement of an asset are determined as the difference between the carrying amount of the asset and any proceeds from its sale. Leasehold improvements are amortised using the straight-line method over the shorter of the remaining lease term or the estimated useful life of the improvement. The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, an impairment test is performed to estimate the potential loss of value that may reduce the recoverable amount of the asset to below its carrying amount. Any impairment loss is recognised within the consolidated income statement by the amount which the carrying amount exceeds the recoverable amount. Useful lives and residual amounts are reviewed annually and adjustments are made prospectively as required. For property, plant and equipment, the Group assesses annually whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, a previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised and only up to the recoverable amount or the original carrying amount net of depreciation that would have been incurred had no impairment losses been recognised. The following table summarises the movement in net book value for property, plant and equipment for the periods presented: Land Building and improvements Machinery, equipment and containers Cold drink equipment Vehicle fleet Furniture and office equipment Assets under construction Total € million € million € million € million € million € million € million € million Cost: As at 31 December 2016 324 1,512 2,350 1,186 124 165 125 5,786 Additions 1 38 155 168 8 18 129 517 Disposals (3 ) (8 ) (116 ) (82 ) (2 ) (13 ) — (224 ) Transfers and reclassifications — 5 68 (1 ) 1 1 (74 ) — Currency translation adjustments (5 ) (16 ) (24 ) (20 ) (1 ) (6 ) — (72 ) Acquisition accounting adjustments and reclassifications (A) (5 ) (78 ) (5 ) (48 ) (12 ) 12 — (136 ) As at 31 December 2017 312 1,453 2,428 1,203 118 177 180 5,871 Additions 9 30 129 104 12 14 242 540 Disposals (3 ) (10 ) (73 ) (87 ) (1 ) (12 ) — (186 ) Transfers and reclassifications — 22 57 1 — 3 (83 ) — Currency translation adjustments (1 ) (7 ) (8 ) (7 ) — 1 — (22 ) As at 31 December 2018 317 1,488 2,533 1,214 129 183 339 6,203 Accumulated depreciation: As at 31 December 2016 — (363 ) (690 ) (598 ) (49 ) (93 ) — (1,793 ) Depreciation expense — (64 ) (223 ) (119 ) (17 ) (20 ) — (443 ) Disposals — 3 85 75 2 12 — 177 Currency translation adjustments — 6 12 13 1 6 — 38 Acquisition accounting adjustments and reclassifications (A) — 6 (4 ) (3 ) (4 ) (8 ) — (13 ) As at 31 December 2017 — (412 ) (820 ) (632 ) (67 ) (103 ) — (2,034 ) Depreciation expense — (60 ) (232 ) (127 ) (18 ) (24 ) — (461 ) Disposals — 2 70 85 1 12 — 170 Currency translation adjustments — 3 4 4 — (1 ) — 10 As at 31 December 2018 — (467 ) (978 ) (670 ) (84 ) (116 ) — (2,315 ) Net book value: As at 31 December 2016 324 1,149 1,660 588 75 72 125 3,993 As at 31 December 2017 312 1,041 1,608 571 51 74 180 3,837 As at 31 December 2018 317 1,021 1,555 544 45 67 339 3,888 (A) The fair values of the assets and liabilities acquired as part of the Merger were provisional as at 31 December 2016 due to the complexity of the acquired businesses. During 2017, the Group finalised the valuation process and adjustments were recorded based on new information obtained about facts and circumstances that existed at the date of Merger. Management concluded that the changes in the fair values from the provisional amounts disclosed in the 2016 consolidated financial statements were not material to the Group’s 2016 consolidated financial statements taken as whole. In addition, certain reclassifications between cost and accumulated depreciation were made. Finance leases included in property, plant and equipment primarily relate to buildings, machinery and equipment, vehicle fleet assets and office equipment. The net book value of buildings held under finance leases was € 18 million and € 20 million as at 31 December 2018 and 31 December 2017 , respectively. The net book value of machinery and equipment held under finance leases was €6 million and €8 million as at 31 December 2018 and 31 December 2017 , respectively. The net book value of vehicle fleet held under finance leases was €39 million and €43 million as at 31 December 2018 and 31 December 2017 , respectively. The net book value of furniture and office equipment held under finance leases was €3 million and €7 million as at 31 December 2018 and 31 December 2017 , respectively. Depreciation expense on assets held under finance leases was €16 million , €25 million and €13 million for the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 , respectively. Assets held under finance leases have been pledged as security in relation to the liabilities under the finance leases. Some lease agreements include renewal or purchase options or escalation clauses. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventories [Abstract] | |
INVENTORIES | INVENTORIES Inventories are valued at the lower of cost or net realisable value and cost is determined using the first-in, first-out (FIFO) method. Inventories consist of raw materials, supplies (primarily including concentrate, other ingredients and packaging) and finished goods, which also include direct labour, indirect production and overhead costs. Cost includes all costs incurred to bring inventories to their present location and condition. Spare parts are recorded as assets at the time of purchase and are expensed as utilised. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to complete and sell the inventory. The following table summarises the inventory outstanding in the consolidated statement of financial position as at the dates presented: 31 December 2018 31 December 2017 € million € million Finished goods 378 324 Raw materials and supplies 234 223 Spare parts 81 103 Total inventories 693 650 Write downs of inventories to net realisable value totalled €23 million and €25 million during the years ended 31 December 2018 and 31 December 2017 , respectively, which were included within cost of sales. None of the write downs were subsequently reversed. |
TRADE ACCOUNTS RECEIVABLE
TRADE ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2018 | |
Trade and other receivables [abstract] | |
TRADE ACCOUNTS RECEIVABLE | TRADE ACCOUNTS RECEIVABLE The Group sells its products to retailers, wholesalers and other customers and extends credit, generally without requiring collateral, based on an evaluation of the customer’s financial condition. While the Group has a concentration of credit risk in the retail sector, this risk is mitigated due to the diverse nature of the customers the Group serves, including, but not limited to, their type, geographic location, size and beverage channel. Collections of receivables are dependent on each individual customer’s financial condition and sales adjustments granted after the statement of financial position date. Trade accounts receivable are initially recognised at fair value and subsequently measured at amortised cost less provision for impairment. Typically, accounts receivable have terms of 30 to 60 days and do not bear interest. With the adoption of IFRS 9 on 1 January 2018, the Group adopted an expected credit loss reserve methodology which had an insignificant effect on the Group’s consolidated financial statements. Refer to Note 1 for further details on the adoption of IFRS 9. Balances are considered for impairment on an individual basis rather than by reference to the extent that they become overdue. The Group considers factors such as delinquency in payment, financial difficulties, payment history of the debtor as well as certain forward-looking macroeconomic indicators. The carrying amount of trade accounts receivable is reduced through the use of an allowance account and the amount of the loss is recognised in the consolidated income statement . Credit insurance on a portion of the accounts receivable balance is also carried. Refer to Note 22 for further details on credit risk management. The following table summarises the trade accounts receivable outstanding in the consolidated statement of financial position as at the dates presented: 31 December 2018 31 December 2017 € million € million Trade accounts receivable, gross 1,671 1,746 Allowance for doubtful accounts (16 ) (14 ) Total trade accounts receivable 1,655 1,732 The following table summarises the aging of trade accounts receivable, net of allowance for doubtful accounts in the consolidated statement of financial position as at the dates presented: 31 December 2018 31 December 2017 € million € million Not past due 1,483 1,561 Past due 1 - 30 days 112 93 Past due 31 - 60 days 8 44 Past due 61 - 90 days 11 8 Past due 91 - 120 days 11 10 Past due 121+ days 30 16 Total 1,655 1,732 The following table summarises the change in the allowance for doubtful accounts for the periods presented: Allowance for doubtful accounts € million As at 31 December 2016 (14 ) Provision for impairment recognised during the year (4 ) Receivables written off during the year as uncollectible 4 As at 31 December 2017 (14 ) Provision for impairment recognised during the year (4 ) Receivables written off during the year as uncollectible 2 As at 31 December 2018 (16 ) |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash and short-term, highly liquid investments with maturity dates of less than three months when acquired that are readily convertible to cash and which are subject to an insignificant risk of changes in value. Counterparties and instruments used to hold the Group’s cash and cash equivalents are continually assessed, with a focus on preservation of capital and liquidity. Bank overdrafts are classified as current portion of borrowings in the consolidated statement of financial position . The following table summarises the cash and cash equivalents outstanding in the consolidated statement of financial position as at the dates presented: 31 December 2018 31 December 2017 € million € million Cash at banks and on hand 279 304 Short-term deposits and securities 30 56 Total cash and cash equivalents 309 360 Cash and cash equivalents are held in the following currencies as at the dates presented: 31 December 2018 31 December 2017 € million € million Euro 185 248 US dollar 6 27 British pound 33 30 Norwegian krone 26 34 Swedish krona 44 8 Other 15 13 Total cash and cash equivalents 309 360 There are no material restrictions on the Group’s cash and cash equivalents. |
FAIR VALUES
FAIR VALUES | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurement [Abstract] | |
FAIR VALUES | FAIR VALUES Fair value measurements All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy. This is described, as one of the following, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than quoted prices included in Level 1. The Group values assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The fair values of the Group’s cash and cash equivalents, trade accounts receivable, amounts receivable from related parties, trade and other payables and amounts payable to related parties approximate their carrying amounts due to their short-term nature. The fair values of the Group’s borrowings are estimated based on borrowings with similar maturities and credit quality and current market interest rates. These are categorised within Level 2 of the fair value hierarchy as the Group uses certain pricing models and quoted prices for similar liabilities in active markets in assessing their fair values. Refer to Note 11 for further details regarding the Group’s borrowings. The following table summarises the book value and fair value of the Group’s borrowings as at the dates presented: 31 December 2018 31 December 2017 € million € million Fair value of borrowings 5,739 5,953 Book value of borrowings (Note 11) 5,618 5,748 The Group’s derivative assets and liabilities are carried at fair value, which is determined using a variety of valuation techniques, depending on the specific characteristics of the hedging instrument, taking into account credit risk. The fair value of its derivative contracts (including forwards, options, cross currency swaps and interest rate swaps) are determined using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions and, therefore, the derivative contracts have been classified as Level 2. Inputs used in these standard valuation models include the applicable spot, forward and discount rates. The standard valuation model for the option contracts also includes implied volatility, which is specific to individual options and is based on rates quoted from a widely used third party resource. Refer to Note 10 for further details about the Group’s derivatives. The following table summarises the fair value of the assets and liabilities as at the dates presented: 31 December 2018 31 December 2017 € million € million Assets at fair value: Derivatives (Note 10) 15 22 Liabilities at fair value: Derivatives (Note 10) 71 94 For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each reporting period. There have been no transfers between levels during the periods presented. |
HEDGING ACTIVITIES
HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
HEDGING ACTIVITIES | HEDGING ACTIVITIES Derivative financial instruments The Group utilises derivative financial instruments to mitigate its exposure to certain market risks associated with its ongoing operations. The primary risks that it seeks to manage through the use of derivative financial instruments include currency exchange risk, commodity price risk and interest rate risk. All derivative financial instrument assets and liabilities are recorded at fair value on the consolidated statement of financial position . The Group does not use derivative financial instruments for trading or speculative purposes and all hedge ratios are on a 1:1 basis. At the inception of a hedge transaction the Group documents the relationship between the hedging instrument and the hedged item, as well as its risk management objective and strategy for undertaking the hedge transaction. This process includes linking the derivative financial instrument designated as a hedging instrument to the specific asset, liability, firm commitment or forecasted transaction. Further information on the Group’s risk management strategy and objective can be found in Note 22 . Both at the hedge inception and on an ongoing basis, the Group assesses and documents whether the derivative financial instrument used in the hedging transaction is highly effective in maintaining the risk management objective. Where critical terms match, the Group uses a qualitative assessment to ensure initial and ongoing effectiveness criteria. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the forecasted transaction occurs. If the hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is transferred to the income statement. While certain derivative financial instruments are designated as hedging instruments, the Group also enters into derivative financial instruments that are designed to hedge a risk but are not designated as hedging instruments (referred to as an economic hedge or a non-designated hedge). The decision regarding whether or not to designate a hedge for hedge accounting is made by management considering the size, purpose and tenure of the hedge, as well as the anticipated ability to achieve and maintain the Group’s risk management objective. Refer to N ote 1 for further details on the adoption of IFRS 9. The Group is exposed to counterparty credit risk on all of its derivative financial instruments. It has established and maintained strict counterparty credit guidelines and enters into hedges only with financial institutions that are investment grade or better. It continuously monitors counterparty credit risk and utilises numerous counterparties to minimise its exposure to potential defaults. It does not require collateral under these agreements. The following table summarises the fair value of the assets and liabilities related to derivative financial instruments and the respective line items in which they were recorded in the consolidated statement of financial position as at the dates presented. All derivative instruments are classified as Level 2 within the fair value hierarchy. Discussion of the Group’s other financial assets and liabilities is contained elsewhere in these financial statements. Refer to Note 7 for trade accounts receivable, Note 12 for trade and other payables, Note 11 for borrowings and Note 17 for amounts receivable and payable with related parties. 31 December 2018 31 December 2017 Hedging instrument Location – statement of financial position € million € million Assets: Derivatives designated as hedging instruments: Foreign currency contracts Non-current derivative assets 1 1 Foreign currency contracts Current derivative assets 9 12 Commodity Contracts Current derivative assets 3 — Total 13 13 Derivatives not designated as hedging instruments: Commodity contracts Non-current derivative assets 1 1 Commodity contracts Current derivative assets 1 8 Total 2 9 Total Assets 15 22 Liabilities: Derivatives designated as hedging instruments: Foreign currency contracts Non-current derivative liabilities 49 93 Commodity Contracts Non-current derivative liabilities 1 — Foreign currency contracts Current derivative liabilities 1 — Commodity contracts Current derivative liabilities 17 — Total 68 93 Derivatives not designated as hedging instruments: Commodity contracts Non-current derivative liabilities 1 — Commodity contracts Current derivative liabilities 2 1 Total 3 1 Total Liabilities 71 94 Cash flow hedges The Group uses cash flow hedges to mitigate its exposure to changes in cash flows attributable to currency fluctuations and commodity price fluctuations associated with certain forecasted transactions, including purchases of raw materials, finished goods and services denominated in non-functional currencies, the receipt of interest and principal on intercompany loans denominated in non-functional currencies and the payment of interest and principal on debt issuances in non-functional currencies. Effective changes in the fair value of these cash flow hedging instruments are recognised as a component of other reserves on the consolidated statement of financial position . The effective changes are then recognised within the line item on the consolidated income statement that is consistent with the nature of the underlying hedged item in the period that the forecasted purchases or payments impact earnings. Any changes in the fair value of these cash flow hedges that are the result of ineffectiveness are recognised immediately in the line item on the consolidated income statement that is consistent with the nature of the underlying hedged item. Historically, the Group has not experienced, nor does it expect to experience material hedge ineffectiveness with the value of the hedged instrument equalling that of the hedged item. The net notional amount of outstanding currency related cash flow hedges was €1.3 billion as at 31 December 2018 and €1.2 billion as at 31 December 2017 . The net notional amount of outstanding commodity related cash flow hedges was €0.2 billion as at 31 December 2018 and nil as at 31 December 2017 . Outstanding cash flow hedges as at 31 December 2018 are expected to settle and affect profit or loss between 2019 and 2021 . The following table summarises the Group’s outstanding cash flow hedges by risk category as at the dates presented (all contracts denominated in a foreign currency have been converted into euros using the respective year end spot rate): Notional maturity profile Total Less than one year 1 to 3 years 3 to 5 years Cash flow hedges € million € million € million € million Foreign currency 1,221 236 22 963 As at 31 December 2016 1,221 236 22 963 Foreign currency 1,214 196 526 492 As at 31 December 2017 1,214 196 526 492 Foreign currency 1,255 227 1,028 — Commodity 237 212 25 — As at 31 December 2018 1,492 439 1,053 — The Group recognised within other comprehensive income €33 million net gains , €116 million net losses and €44 million net gains for the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 respectively, related to changes in the fair values of outstanding cash flow hedges. The amount of ineffectiveness associated with these cash flow hedges was not material during any year presented within these financial statements. The following table summarises the net of tax effect for cash flow hedges that settled for the periods presented within the consolidated income statement : Amount of gain (loss) reclassified from the hedging reserve into profit 31 December 2018 31 December 2017 31 December 2016 Cash flow hedging instruments Location – income statement € million € million € million Foreign currency contracts Cost of sales 4 7 5 Foreign currency contracts Selling and distribution expenses — — (1 ) Foreign currency contracts (A) Non-operating items 43 (123 ) 49 Total 47 (116 ) 53 (A) The gain/(loss) recognised on these currency contracts is offset by the gain/(loss) recognised on the remeasurement of the underlying debt instruments; therefore, there is a minimal consolidated net effect in non-operating items on the consolidated income statement . Non-designated hedges The Group periodically enters into derivative instruments that are designed to hedge various risks but are not designated as hedging instruments. These hedged risks include those related to commodity price fluctuations associated with forecasted purchases of aluminium, sugar, components of PET (plastic) and vehicle fuel. At times, it also enters into other short-term non-designated hedges to mitigate its exposure to changes in cash flows attributable to currency fluctuations associated with short-term intercompany loans and certain cash equivalents denominated in non-functional currencies. Changes in the fair value of outstanding non-designated hedges are recognised each reporting period in the line item on the consolidated income statement that is consistent with the nature of the hedged risk. The notional amount of outstanding non-designated commodity hedges was €31 million and €132 million as at 31 December 2018 and 31 December 2017 , respectively. Outstanding commodity hedges as at 31 December 2018 are expected to settle and affect profit or loss between 2019 and 2020 . The notional amount of outstanding non-designated short-term foreign currency contracts associated with intercompany loans was €57 million and €59 million as at 31 December 2018 and 31 December 2017 , respectively. Outstanding non-designated foreign currency hedges as at 31 December 2018 are expected to settle and affect profit or loss during 2019 . The following table summarises the gains (losses) recognised from non-designated derivative financial instruments in the consolidated income statement for the years presented: 31 December 2018 31 December 2017 31 December 2016 Non-designated hedging instruments Location – income statement € million € million € million Commodity contracts Cost of sales 1 20 8 Commodity contracts Selling and distribution expenses — (2 ) 10 Foreign currency contracts (A) Non-operating items (4 ) 13 17 Total (3 ) 31 35 (A) The gain (loss) recognised on these currency contracts is offset by the gain (loss) recognised on the remeasurement of the underlying hedged items; therefore, there is a minimal consolidated net effect in non-operating items on the consolidated income statement . Net investment hedges Prior to the Merger, the Group entered into foreign currency forwards, options and foreign currency denominated borrowings designated as net investment hedges of its foreign subsidiaries. Changes in the fair value of these hedges resulting from currency exchange rate changes are recognised as a component of other reserves on the consolidated statement of financial position to offset the change in the carrying value of the net investment being hedged. Any changes in the fair value of these hedges that are the result of ineffectiveness are recognised immediately in operating profit on the consolidated income statement . All outstanding net investment hedges were settled prior to the Merger. Although the Group had no net investment hedges in place as at 31 December 2018 or 31 December 2017, it continues to monitor its exposure to currency exchange rates and may enter into future net investment hedges as a result of volatility in the functional currencies of certain of its subsidiaries. The Group recognised within other comprehensive income €44 million in net losses for the year 31 December 2016 related to net investment hedges. As a result of US tax law changes, in 2017, the Group recognised a deferred tax benefit of €27 million in other reserves related to the deferred gain on net investment hedges. |
BORROWINGS AND FINANCE LEASES
BORROWINGS AND FINANCE LEASES | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
BORROWINGS AND FINANCE LEASES | BORROWINGS AND FINANCE LEASES Borrowings Borrowings are initially recognised at fair value, net of issuance costs incurred. After initial recognition, borrowings are subsequently measured at amortised cost using the effective interest rate method. Amortisation of transaction costs, premiums and discounts is recognised as part of finance costs within the consolidated income statement . Finance leases Finance leases are recognised when the Group leases property, plant and equipment and has substantially all the risks and rewards of ownership. Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased asset or the present value of the minimum lease payments. Lease payments are apportioned between the finance costs and the reduction of the remaining liability. The finance costs are allocated to each period so as to achieve a constant rate of interest on the remaining balance of the liability. Property, plant and equipment acquired in connection with a finance lease is depreciated over the shorter of the useful life of the asset or the lease term. The Group’s interests in assets acquired under finance leases are included in property, plant and equipment and primarily relate to buildings, machinery and equipment, vehicle fleet assets and office equipment. Amortisation of finance lease assets is included in depreciation expense and recorded in the consolidated income statement in the line item consistent with the nature of the leased item. Borrowings outstanding The following table summarises the carrying value of the Group’s borrowings as at the dates presented: 31 December 2018 31 December 2017 € million € million Non-current: €350 million 2.00% Notes 2019 (A) — 348 US$525 million 3.50% Notes 2020 456 436 US$250 million 3.25% Notes 2021 216 206 US$300 million 4.50% Notes 2021 261 249 €350 million Floating Rate Note 2021 (B) 350 351 €700 million 0.75% Notes 2022 (C) 697 697 €350 million 2.63% Notes 2023 348 348 €500 million 1.13% Notes 2024 (C) 495 495 €350 million 2.38% Notes 2025 346 347 €250 million 2.75% Notes 2026 248 248 €500 million 1.75% Notes 2028 (C) 493 492 €400 million 1.50% Notes 2027 (D) 395 — €500 million 1.88% Notes 2030 495 496 Term loan 2018-2021 (E) 274 698 Finance lease obligations (F) 53 63 Total non-current borrowings 5,127 5,474 Current: €350 million 2.00% Notes 2019 (A) 349 — EUR commercial paper (G) 120 250 Finance lease obligations (F) 22 24 Total current borrowings 491 274 (A) In December 2018, the €350 million 2.0% Notes due 2019 were reclassified from non-current to current borrowings. (B) In November 2017, the Group issued €350 million floating-rate notes due 2021. (C) To finance the return of capital to CCE shareholders in connection with the Merger, the Group issued €2.2 billion Eurobond notes due between November 2017 and May 2028 . In December 2017, €500 million floating-rate notes matured and were paid in full. (D) In November 2018, the Group issued €400 million , 1.50% interest rate notes due 2027. (E) To finance the return of capital to CCE shareholders in connection with the Merger, the Group obtained a €1.0 billion , floating rate bank term loan with annual payments due each May beginning in 2018 until 2021 . In September 2017, €200 million of the term loan due in 2018 and €100 million of the term loan due in 2021 were repaid prior to maturity. In July 2018, €100 million due in 2019 were repaid prior to maturity. In September 2018, €100 million due in 2019 and €50 million due in 2020 were repaid prior to maturity. In November 2018, €100 million due in 2020 were repaid prior to maturity. In December 2018, €75 million due in 2020 were repaid prior to maturity. As at 31 December 2018, €275 million of the term loan remains outstanding with annual repayments due between 2020 and 2021. (F) These amounts represent the present values of the Group’s minimum finance lease obligations. (G) As of 31 December 2018, the Group had €120 million of euro denominated commercial paper outstanding, due January 2019. Borrowings are stated net of unamortised financing fees of €24 million and €19 million , as at 31 December 2018 and 31 December 2017 , respectively. Credit facilities The Group has amounts available for borrowing under a €1.5 billion multicurrency credit facility with a syndicate of ten banks. This credit facility matures in 2023 and is for general corporate purposes and supporting the Group’s working capital needs. Based on information currently available, there is no indication that the financial institutions participating in this facility would be unable to fulfil their commitments to the Group as at the date of this report. The Group’s current credit facility contains no financial covenants that would impact its liquidity or access to capital. As at 31 December 2018 , the Group had no amounts drawn under this credit facility. Finance lease maturities The following table summarises the maturity of the Group’s finance lease obligations as at the dates presented: 31 December 2018 31 December 2017 Finance lease maturities € million € million Within one year 22 24 After one year but not more than five years 39 46 More than five years 22 26 Total minimum lease payments 83 96 Amounts representing interest (A) (8 ) (9 ) Present value of minimum lease payments 75 87 (A) Amounts representing interest related to finance lease commitments are not significant for any of the individual time periods presented above. Cash flows from financing activities The following table provides a reconciliation of movements of liabilities to cash flows arising from financing activities: Current portion of borrowings Borrowings, less current portion Total € million € million € million As at 31 December 2016 875 5,562 6,437 Changes from financing cash flows Proceeds from third party borrowings, net of issuance costs — — 350 350 Changes in short-term borrowings 250 — 250 Repayments on third party borrowings (850 ) — (310 ) (1,160 ) Repayments on third party borrowings; finance leases (1 ) (19 ) (20 ) Capitalised discount/premium — 2 2 Other non-cash changes Amortisation of discount, premium and issue costs — 8 8 Finance lease additions and other — 5 5 Currency translation — (124 ) (124 ) Total changes (601 ) (88 ) (689 ) As at 31 December 2017 274 5,474 5,748 Changes from financing cash flows Proceeds from third party borrowings, net of issuance costs — — 398 398 Changes in short-term borrowings (131 ) — (131 ) Repayments on third party borrowings — — (426 ) (426 ) Repayments on third party borrowings; finance leases (18 ) — (18 ) Capitalised discount/premium — — (2 ) (2 ) Other financing activities — (8 ) (8 ) Other non-cash changes Amortisation of discount, premium and issue costs — 8 8 Finance lease additions and other 1 5 6 Currency translation 1 42 43 Reclassifications 364 (364 ) — Total changes 217 (347 ) (130 ) As at 31 December 2018 491 5,127 5,618 Cash flows from financing activities includes €34 million , €36 million and €17 million of cash received related to income on a cross currency swap for the years 2018, 2017 and 2016, respectively. |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE AND OTHER PAYABLES | TRADE AND OTHER PAYABLES Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year, which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method. Trade payables are non-interest bearing and are normally settled between 30 to 60 days. The Group participates in various programmes and arrangements with customers designed to increase the sale of our products. The costs of these programmes are recorded as deductions from revenue. Among the programmes are arrangements under which allowances can be earned by customers for attaining agreed upon sales levels or for participating in specific marketing programmes. When these allowances are paid in arrears, the Group accrues the estimated amount to be paid based upon historical customer experience, the programme’s contractual terms, expected customer performance and/or estimated sales volume. The costs of these off-invoice arrangements totalled €3.0 billion , €2.9 billion and €2.5 billion for 2018 , 2017 and 2016 , respectively. The increase in 2017 versus 2016 is due to the inclusion of Germany and Iberia for the full year as a result of the Merger. The following table summarises trade and other payables as at the dates presented: 31 December 2018 31 December 2017 € million € million Trade accounts payable 1,105 1,057 Accrued customer marketing costs 753 648 Accrued deposits 282 266 Accrued compensation and benefits 269 249 Accrued taxes 273 167 Other accrued expenses 146 146 Total trade and other payables 2,828 2,533 |
POST-EMPLOYMENT BENEFITS
POST-EMPLOYMENT BENEFITS | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefits [Abstract] | |
POST-EMPLOYMENT BENEFITS | POST-EMPLOYMENT BENEFITS The cost of providing benefits is determined using the projected unit credit method with actuarial valuations being carried out at the end of each annual reporting period. All remeasurements of the defined benefit obligation, such as actuarial gains and losses and return on plan assets, are recognised directly in other comprehensive income. Remeasurements recognised in other comprehensive income are reflected immediately in retained earnings and are not reclassified to profit or loss. Service costs are presented within cost of sales, selling and distribution expenses and administrative expenses in the consolidated income statement . Past service costs are recognised immediately within cost of sales, selling and distribution expenses and administrative expenses in the consolidated income statement . The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. Net interest cost is presented within finance costs or finance income, as applicable, in the consolidated income statement . The defined benefit obligation recognised in the consolidated statement of financial position represents the present value of the estimated future cash outflows using interest rates of high quality corporate or government bonds, depending on whether or not there is a deep market for corporate bonds in the relevant country, which have terms to maturity approximating the terms of the related liability. For termination benefits the Group recognises termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of those benefits and (b) when the Group recognises costs for a restructuring that is within the scope of IAS 37, “Provisions, Contingent Liabilities and Contingent Assets” and involves the payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Termination benefits are payable whenever an employee’s employment is terminated before the normal retirement date or whenever an employee accepts voluntary redundancy in exchange for those benefits. The following table summarises non-current employee benefit liabilities as at the dates presented: 31 December 2018 31 December 2017 € million € million Retirement benefit obligation 89 95 Other employee benefit liabilities 53 67 Total non-current employee benefit liabilities 142 162 Defined benefit plans The Group sponsors a number of defined benefit pension plans in Belgium, France, Germany, Great Britain, Luxembourg and Norway, of which the Great Britain plan (GB Scheme) and Germany plans (Pension Plan 1 and Pension Plan 2) are the most significant. The GB Scheme’s defined benefit obligation includes benefits for current employees, former employees and current pensioners. The level of benefits provided (funded final salary pension) depends on the member’s length of service and salary at retirement age. Part of the pension may be exchanged for a tax free cash lump sum. The GB Scheme was closed to new members with effect from 1 October 2005 and is administered by a separate board of trustees, which is legally separate from the Group. The board of trustees are composed of representatives of both the employer and employees. The trustees are required by law to act in the interest of all relevant beneficiaries and are responsible for the investment policy with regard to the assets plus the day to day administration of the benefits. A full actuarial valuation of the GB Scheme occurs on a triennial basis by a qualified external actuary. The latest triennial valuation was carried out as at 5 April 2016 and has been updated to 31 December 2018 . The Group’s contributions are determined on the basis of the triennial valuations. Germany’s defined benefit pension plans are open to existing members but closed to new entrants. The defined benefit obligation includes benefits for current employees, former employees and current pensioners. Pension Plan 1 has elements of a final salary pension for past service and a career average formula for new accruals. It is funded through a support fund administered by an insurance company. Pension Plan 2 is administered by the Group with the plan being covered by a Contractual Trust Arrangement (CTA) and a single reinsurance contract. The Company is responsible for paying obligations. There is no external board of trustees. The insurer shares some responsibility for plan assets, investment policy and administration. The latest annual valuation for these plans was performed as at 31 December 2017 and has been updated to 31 December 2018 . Risks The Group’s defined benefit pension schemes expose the Group to a number of risks, including: • Asset volatility - the plan liabilities are calculated using a discount rate set with reference to corporate bond yields; if assets underperform this yield, a deficit would occur. Some of our plans hold a significant proportion of growth assets (equities and property) which, though expected to outperform corporate bonds in the long term, create volatility and risk in the short term. The allocation to growth assets is monitored to ensure it remains appropriate given each scheme’s long-term objectives. • Changes in bond yields - a decrease in corporate bond yields will increase the defined benefit liability, although this will be partially offset by an increase in the value of the plan’s bond holdings. • Inflation risk - a significant proportion of our benefit obligations are linked to inflation and higher inflation will lead to higher liabilities (although, in most cases, caps on the level of inflationary increases are in place to protect against extreme inflation). The majority of the assets are either unaffected by or only loosely correlated with inflation, meaning that an increase in inflation will also increase the deficit. • Life expectancy - the majority of our plans have an obligation to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the defined benefit liabilities. Benefit costs The following table summarises the expense related to pension plans recognised in the consolidated income statement for the years presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Service cost 52 53 49 Past service cost — (3 ) — Net interest cost (income) 1 3 2 Administrative expenses 2 2 2 Total cost 55 55 53 Other comprehensive income The following table summarises the changes in other comprehensive income related to our pension plans for the years presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Actuarial (gain)/loss on defined benefit obligation arising during the period (120 ) 30 248 Return on plan assets (greater)/less than discount rate 118 (121 ) (183 ) Net charge to other comprehensive income (2 ) (91 ) 65 Benefit obligation and fair value of plan assets The following table summarises the changes in the pension plan benefit obligation and the fair value of plan assets for the periods presented: 31 December 2018 31 December 2017 € million € million Reconciliation of benefit obligation: Benefit obligation at beginning of plan year 1,969 1,947 Service cost 52 53 Past service cost — (3 ) Interest costs on defined benefit obligation 42 43 Plan participants contribution 47 45 Actuarial loss/(gain) - experience (5 ) 5 Actuarial loss/(gain) - demographic assumptions (35 ) — Actuarial loss/(gain) - financial assumptions (80 ) 25 Benefit payments (110 ) (90 ) Administrative expenses 2 2 Currency translation adjustments (10 ) (50 ) Settlements — (8 ) Benefit obligation at end of plan year 1,872 1,969 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of plan year 1,898 1,779 Interest income on plan assets 41 40 Return on plan assets greater/(less) than discount rate (118 ) 121 Plan participants contributions 47 45 Employer contributions 56 58 Benefit payments (110 ) (90 ) Currency translation adjustment (10 ) (48 ) Settlements — (7 ) Fair value of plan assets at end of plan year 1,804 1,898 Timing of benefit payments The weighted average duration of the defined benefit plan obligation as at 31 December 2018 is 21 years, out of which the GB Scheme represents 23 years and Germany plans represent 15 years. Retirement benefit status The following table summarises the retirement benefit status of pension plans as at the dates presented: 31 December 2018 31 December 2017 € million € million Net benefit status: Present value of obligation (1,872 ) (1,969 ) Fair value of assets 1,804 1,898 Net benefit status: (68 ) (71 ) Retirement benefit surplus 21 24 Retirement benefit obligation (89 ) (95 ) The GB scheme and Germany plans approximately represented 70.5% and 18.5% of the present value of the obligation and 73.0% and 19.0% of the fair value of assets as at 31 December 2018, respectively. The surplus for 2018 and 2017, which is primarily related to Germany Pension Plan 2, is recognised on the balance sheet on the basis that the Group is entitled to a refund of any remaining assets once all members have left the plan. Refer to Note 21. Actuarial assumptions The following tables summarise the weighted average actuarial assumptions used to determine the benefit obligations of pension plans as at the dates presented: 31 December 2018 31 December 2017 Financial assumptions % % Discount rate 2.5 2.3 Rate of compensation increase 3.1 3.1 Rate of price inflation 2.9 2.9 Demographic assumptions (weighted average) (A) 31 December 2018 31 December 2017 Retiring at the end of the reporting period Male 21.3 21.4 Female 23.9 24.3 Retiring 15 years after the end of the reporting period Male 22.3 22.7 Female 25.0 25.6 (A) These assumptions translate into an average life expectancy in years, post retirement, for an employee retiring at age 65 . The following table summarises the sensitivity of the defined benefit obligation to changes in the weighted average principal assumptions for the periods presented: Change in assumption Impact on defined benefit obligation (%) Increase in assumption Decrease in assumption Principal assumptions 2018 2017 2018 2017 Discount rate 0.5 % (8.6 ) (9.1 ) 9.8 10.6 Rate of compensation increase 0.5 % 2.4 2.6 (2.2 ) (2.4 ) Rate of price inflation 0.5 % 8.1 8.9 (6.6 ) (7.8 ) Mortality rates 1 year 2.9 2.5 (3.0 ) (2.4 ) The sensitivity analyses have been determined based on a method that extrapolates the impact on the defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analyses are based on a change in a significant assumption, keeping all other assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another. Pension plan assets The Group has established formal investment policies for the assets associated with the pension plans. Policy objectives include (1) maximising long-term return at acceptable risk levels; (2) diversifying among asset classes, if appropriate, and among investment managers; and (3) establishing relevant risk parameters within each asset class. Investment policies reflect the unique circumstances of the respective plans and include requirements designed to mitigate risk, including quality and diversification standards. Asset allocation targets are based on periodic asset liability and/or risk budgeting study results, which help determine the appropriate investment strategies for acceptable risk levels. The investment policies permit variances from the targets within certain parameters. The following tables summarise pension plan assets measured at fair value as at the dates presented: Total 31 December 2018 Investments quoted in active markets Unquoted investments € million € million € million Equity securities: (A) US equities 201 201 — Non-US equities 626 626 — Fixed-income securities: (B) Corporate bonds and notes 67 43 24 Government bonds 384 384 — Cash and other short-term investments (C) 7 7 — Other investments: Real estate funds (D) 293 27 266 Insurance contracts (E) 226 — 226 1,804 1,288 516 Total 31 December 2017 Investments quoted in active markets Unquoted investments € million € million € million Equity securities: (A) US equities 226 226 — Non-US equities 749 693 56 Fixed-income securities: (B) Corporate bonds and notes 60 34 26 Government bonds 409 387 22 Cash and other short-term investments (C) 10 5 5 Other investments: Real estate funds (D) 226 14 212 Insurance contracts (E) 218 — 218 1,898 1,359 539 (A) Equity securities are comprised of the following investment types: (1) ordinary shares; (2) preference shares; and (3) common trust funds and collective funds. Investments in ordinary and preference shares are valued using quoted market prices multiplied by the number of shares owned. Investments in common trust funds and collective funds are valued at the net asset value per share, which is calculated based on the underlying quoted investments market price, multiplied by the number of shares held as of the measurement date. (B) Investments other than those held in common trust funds and collective funds are valued utilising a market approach. The value of such assets is primarily sourced from broker quotes in active markets. Bonds are held mainly in the currency of the geography of the plan. (C) Cash and other short-term investments are valued at € 1.00 /unit, which approximates fair value. Amounts are generally invested in cash, actively managed common trust funds or interest bearing accounts. (D) Real estate funds, mainly related to the GB Scheme, are valued at the net asset value per share. For quoted funds, the calculation is based on the underlying quoted investments market price, multiplied by the number of shares held as of the measurement date. For unquoted funds, this is calculated using the most recent partnership financial reports, adjusted, as appropriate, for any lag between the date of the financial reports and the measurement date (as of 31 December 2018 , it is not probable that these investments will be sold at an amount other than net asset value). (E) Insurance contracts exactly match the amount and timing of certain benefits, therefore the fair value of these insurance policies is deemed to be the present value of the related obligations. The significant majority of these are reinsurance contracts relating to benefit arrangements in Germany. Contributions Contributions to pension plans totalled €56 million , €58 million and €78 million during the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 , respectively. During 2016, in order to improve the funded status of the plan, the Group and the board of trustees of the GB Scheme agreed to additional future funding levels in the total amount of approximately £13 million for each year until 2024, subject to the triennial valuation. The Group expects to make contributions of €54 million for the full year ending 31 December 2019 in line with the agreed funding plan. Other employee benefit liabilities In Germany, the Group also has an early retirement programme designed to create an incentive for employees, within a certain age group, to transition from (full or part time) employment into retirement before their legal retirement age. Furthermore, the Group also sponsors deferred compensation plans in other territories. The current portion of these liabilities totalled €19 million and €21 million as at 31 December 2018 and 31 December 2017 , respectively and is included within the current portion of employee benefit liabilities on the consolidated statement of financial position . The non-current portion of these liabilities totalled €53 million and €67 million as at 31 December 2018 and 31 December 2017 and is included within employee benefit liabilities on the consolidated statement of financial position . Defined contribution plans The Group sponsors qualified defined contribution plans covering substantially all of our employees in Iceland, the Netherlands, Norway, Spain and certain employees in Great Britain. Contributions payable for the period are charged to the consolidated income statement as an operating expense for defined contribution plans. Contributions to these plans totalled €27 million , €25 million and €24 million during the year ended 31 December 2018 , 31 December 2017 and 31 December 2016 , respectively. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
EQUITY | EQUITY Share capital As at 31 December 2018 , the Company has issued and fully paid 474,920,066 ordinary shares with a nominal value of €0.01 per share. Shares in issue have one voting right each and no restrictions related to dividends or return of capital. Number of shares Share Capital millions € million As at 1 January 2016 227 3 Shares utilised for share-based payments prior to Merger 1 — Cancellation of CCE shares (228 ) (3 ) Issuance of CCEP shares in consideration for CCIP and CCEG 254 3 Group reconstruction transaction 228 2 Issuances of shares post-Merger 1 — As at 31 December 2016 483 5 Issuance of shares 2 — As at 31 December 2017 485 5 Issuance of shares 3 — Cancellation of shares (13 ) — As at 31 December 2018 475 5 Immediately prior to the Merger on 28 May 2016 , there were 228,244,244 shares of US$0.01 par value of CCE shares issued and fully paid, which included net issuances of 908,456 related to share-based payment awards from 1 January 2016 through 27 May 2016 . In connection with the Merger, all CCE shares were cancelled and replaced with shares of the Company. Additionally, the Company issued 166,128,987 shares to Olive Partners and 87,950,640 shares to European Refreshments (ER), Coca-Cola GmbH and Vivaqa Beteiligungs GmbH & Co. KG as consideration to acquire their bottling operations. Subsequent to the Merger, those of the 87,950,640 shares held by Coca-Cola GmbH and Vivaqa Beteiligungs GmbH & Co. KG were transferred to ER. Furthermore in 2016, the Group issued an additional 752,525 shares related to share-based payment awards post-Merger. The share capital increased in 2017 from the issue of 1,510,032 shares following the exercise of share-based payment awards. In connection with the share buyback programme that commenced in 2018, 12,429,600 shares were cancelled. Also in 2018 , 2,763,238 shares were issued related to share-based payment awards. As at 31 December 2018 , 2017 and 2016 , the number of shares issued and fully paid was 474,920,066 , 484,586,428 and 483,076,396 respectively. Share premium Under the Companies Act 2006, the amount reflected in share premium for a group reconstruction is equal to the total consideration transferred in excess of nominal value for the accounting acquirer. As all shares of CCE were cancelled and replaced with shares in the Company, €7.6 billion was recorded to the share premium account representing the excess over nominal value of €0.01 for the 228,244,244 shares issued to CCE shareholders on 28 May 2016 based on the adjusted closing price of CCE shares of €33.33 at the time of the Merger. As CCE was deemed to be the accounting acquirer, its net assets remain at book value, therefore, the Group recorded a corresponding reduction to merger reserves for this amount. Furthermore, on 22 June 2016, the Company received approval from the UK High Court of Justice to convert €7.5 billion of its undistributable profits into distributable profits. This resulted in a reduction to the share premium account of €7.5 billion and a corresponding increase to retained earnings. The share premium account increased by cash received for the exercise of options after the Merger by €25 million for 31 December 2018 , €13 million for 31 December 2017 and €9 million for 31 December 2016 , respectively. Merger reserves The consideration transferred to acquire CCIP and CCEG qualified for merger relief under the UK Companies Act of 2006. As such, the excess consideration transferred over nominal value was required to be excluded from the share premium account and recorded to merger reserves. The cumulative balance of €8.5 billion includes the consideration transferred in excess of nominal value of €0.01 for CCIP and CCEG of €5.5 billion and €2.9 billion , respectively. Return of capital to CCE shareholders The return of capital to CCE shareholders in connection with the Merger was in the form of a cash payment of €3.0 billion , with a corresponding reduction in retained earnings. Treasury shares As part of the Merger agreement, the 128,993,430 remaining shares held in treasury on the acquisition date, with a total cost of €3.3 billion , were cancelled in 2016. Share buyback programme On 12 September 2018, the Company announced a share buyback programme of up to € 1.5 billion . The maximum number of shares authorised for repurchase at the Company’s 2018 Annual General Meeting was 48,507,819 . The Company entered into agreements to purchase € 500 million of its own shares as part of this share buyback programme through to 31 December 2018 . For the year ended 31 December 2018 , 12,429,600 shares were repurchased by the Company and cancelled. The total cost of the repurchased shares of € 502 million , including € 2 million of directly attributable tax costs, was deducted from retained earnings. As a result of the cancellation, € 0.1 million was transferred from share capital to a capital redemption reserve (disclosed within other reserves), representing the nominal value of the shares cancelled. Other reserves The following table outlines the balances in other reserves (net of tax) as at the dates presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Cash flow hedge reserve (26 ) (12 ) (12 ) Net investment hedge reserve 197 197 170 Foreign currency translation adjustment reserve (723 ) (688 ) (577 ) Total other reserves (552 ) (503 ) (419 ) Movements, including the tax effects, in these accounts through 31 December 2018 are included within the consolidated statement of comprehensive income . Dividends Dividends are recorded within the Group’s consolidated financial statements in the period in which they are paid. 31 December 2018 31 December 2017 31 December 2016 € million € million € million Quarter 1 dividend for 2018: €0.26 per share (2017: €0.17 per share, 2016: $0.30 per share) 126 82 61 Quarter 2 dividend for 2018: €0.26 per share (2017: two payments for €0.21 per share, 2016: $0.30 per share) 126 204 61 Quarter 3 dividend for 2018: €0.26 per share (2017: €0.21 per share, 2016: none) 127 102 — Quarter 4 dividend for 2018: €0.28 per share (2017: €0.21 per share, 2016: €0.17 per share) 134 101 82 Total dividend on ordinary shares paid 513 489 204 Additionally, € 2 million , € 2 million and € 1 million were accrued as dividends in relation to restricted stock units and performance share units in 2018 , 2017 and 2016 , respectively. |
TOTAL OPERATING COSTS
TOTAL OPERATING COSTS | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
TOTAL OPERATING COSTS | TOTAL OPERATING COSTS The following table outlines the significant cost items by nature within operating costs for the years presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Cost of inventory recognised as an expense 4,901 5,021 4,194 Write-down of inventories (Note 6) 23 25 28 Employee costs (A) 1,768 1,719 1,411 Distribution costs 637 595 514 Depreciation of property, plant and equipment, excluding restructuring 446 426 321 Amortisation of intangible assets (Note 4) 51 47 39 Out of period mark-to-market effects on undesignated derivatives 8 (6 ) (35 ) Merger related costs — 4 126 Restructuring charges, including accelerated depreciation (B) 274 235 286 31 December 2018 31 December 2017 31 December 2016 (A) Employee Costs € million € million € million Wages and salaries 1,360 1,317 1,059 Social security costs 290 290 234 Pension and other employee benefits 118 112 118 Total staff costs 1,768 1,719 1,411 Directors’ remuneration information is disclosed in the Directors’ Remuneration Report. The average number of persons employed by the Group (including Directors) for the periods presented were as follows: 2018 2017 2016 No. in thousands No. in thousands No. in thousands Commercial 7.7 7.7 6.1 Supply chain 13.1 13.5 10.8 Support functions 2.7 2.3 2.2 Total average staff employed 23.5 23.5 19.1 The average number of persons employed by the Group reflects only CCE employees from 1 January to 27 May 2016. From 28 May through to 31 December 2016, and for the full years 2017 and 2018, the average number reflects CCEP employees. 31 December 2018 31 December 2017 31 December 2016 (B) Restructuring € million € million € million Increase in provision for restructuring programmes (Note 20) 236 186 260 Amount of provision reversed unused (Note 20) (23 ) (22 ) (6 ) Accelerated depreciation and non-cash costs 22 33 24 Other cash costs (A) 39 38 8 Total 274 235 286 (A) Other cash costs primarily relate to professional fees, which includes consultancy costs, legal fees, and other costs associated with restructuring. Restructuring costs charged in arriving at operating profit for the years presented include restructuring costs arising under the following programmes and initiatives: Supply chain site closure in Iberia In 2016, as required by a Supreme Court ruling, CCIP created a new logistics centre (COIL) in Fuenlabrada, Spain and re-employed many of the workers who had been subject to a 2014 collective dismissal process at the same location. Following subsequent discussions with employee representatives, in November 2018 a COIL shutdown agreement was signed which effected the closure of the facility. For the year ended 31 December 2018, the Group recorded a related restructuring expense of € 112 million , primarily related to severance costs. No further expenses are expected to be recognised. Supply chain site closure in GB In January 2018, as part of productivity initiatives in Great Britain, the Group announced proposals to close its manufacturing site in Milton Keynes and distribution centre in Northampton during the course of 2019. Through the year ended 31 December 2018, the Group recorded expense of € 31 million , primarily related to severance costs and accelerated depreciation. Total costs of this programme are expected to be € 40 million , and this programme will be substantially completed by 31 December 2019. Commercial restructuring initiatives In 2018, commercial restructuring initiatives were announced in Iberia relating to the route to market and in Germany relating to the full service vending business. Through the year ended 31 December 2018, the Group recorded expense of € 15 million and € 11 million in Iberia and Germany respectively, primarily related to severance costs. Total costs of these programmes are expected to be € 38 million and € 30 million and these programmes will be substantially completed by 31 December 2019 and 31 December 2020, respectively. CCEP integration and synergy programme In 2016, the Group announced several restructuring proposals to facilitate and enable the integration of CCE, CCIP and CCEG following the Merger. Restructuring activities include those related to supply chain improvements such as network optimisation, productivity initiatives, continued facility rationalisation in Germany and end to end supply chain organisational design. Restructuring plans also include transferring Germany transactional related activities to the Company’s shared service centre in Bulgaria and other central function initiatives. The Group also initiated the relocation of Atlanta based headquarters roles to Europe. In 2017, the Group announced additional restructuring proposals, including the optimisation of manufacturing, warehouse and labour productivity, cold drink operational practices and facilities, further facility rationalisation in Germany and supply chain organisational design improvements such as route to market. These proposals also include the transfer of additional activities to the Group’s shared service centre in Bulgaria and other central function initiatives. During the years ended 31 December 2018 and 31 December 2017, the Group recorded total expenses related to this programme of € 50 million and € 215 million , respectively. The programme was substantially completed during 2018 and total expenditure over the life of the programme was approximately € 450 million . Germany restructuring programme and Iberia inflight initiatives At the time of the Merger, the Group assumed ongoing restructuring initiatives in both Germany and Iberia. In Germany, these initiatives principally related to improving the efficiency and effectiveness of the supply chain organisation. On 1 March 2016, CCEG announced its intent to close two production sites, six distribution sites and to phase out a refillable PET production line. In addition, CCEG announced its intent to restructure parts of its finance, human resources, marketing and sales departments. At the Merger date, there was approximately € 228 million of restructuring provisions recorded in the opening balance sheet of Germany related to this and other programmes. Subsequent to the Merger, and through the years ended 31 December 2018 and 31 December 2017, the Group recorded additional expense of € 3 million and € 23 million primarily related to severance costs. This programme was substantially completed by 31 December 2017. Auditor’s remuneration Audit and other fees charged in the income statement concerning the statutory auditor of the consolidated financial statements , Ernst & Young LLP, were as follows: 31 December 2018 31 December 2017 31 December 2016 € thousand € thousand € thousand Audit of parent company and consolidated financial statements (A) 2,401 2,383 4,932 Audit of the company’s subsidiaries 3,719 4,167 3,800 Total audit 6,120 6,550 8,732 Audit related assurance services (B) 976 1,187 1,512 Other assurance services 101 115 138 Total audit and audit-related assurance services 7,197 7,852 10,382 Taxation advisory services (C) — — 508 All other services (D) 1,180 90 3 Total non-audit or non-audit-related assurance services 1,180 90 511 Total audit and all other fees 8,377 7,942 10,893 (A) Fees in respect of the audit of the accounts of CCEP plc (and its predecessor CCE, Inc.), including the Group's consolidated financial statements . (B) Includes professional fees for interim reviews, reporting on internal financial controls, services related to the transaction entered into with CCE, TCCC, CCIP and CCEG, IFRS advisory services, issuance of comfort letters for debt issuances, certain accounting consultations and other attest engagements. (C) Includes fees for tax advisory services related to tax advice provided in conjunction with the Merger transaction and its related US tax implications and tax advisory services, including transfer pricing and VAT advisory work, in the Company’s subsidiaries. (D) Represents fees for all other allowable services. |
FINANCE COSTS
FINANCE COSTS | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
FINANCE COSTS | FINANCE COSTS Finance costs are recognised directly within the income statement in the period in which they are incurred, with the exception of general and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Borrowing costs are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised within the consolidated income statement in the period in which they are incurred based upon the effective interest rate method. Interest income is recognised using the effective interest rate method. The following table summarises net finance costs for the years presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Interest income (A) 47 48 31 Interest expense on external debt (A) (134 ) (141 ) (145 ) Other finance costs (B) (6 ) (7 ) (9 ) Total finance costs (140 ) (148 ) (154 ) Total finance costs, net (93 ) (100 ) (123 ) (A) Includes interest income and expense amounts, as applicable, on cross currency swaps used to hedge USD debt. Interest swap income amounts to €34 million , €36 million and €23 million for 2018 , 2017 and 2016 , respectively. Refer to Note 10 for further details. (B) Other finance costs principally include amortisation of the discount on external debt and interest expense on finance leases. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS For the purpose of these consolidated financial statements, transactions with related parties mainly comprise transactions between subsidiaries of the Group and the related parties of the Group. Transactions with TCCC TCCC exhibits significant influence over the Group, as defined by IAS 24, “Related Party Disclosures”. As at 31 December 2018 , 18.5% of the total outstanding shares in the Group were owned by European Refreshments, a wholly owned subsidiary of TCCC. The Group is a key bottler of TCCC products and has entered into bottling agreements with TCCC to make, sell and distribute products of TCCC within the Group’s territories. The Group purchases concentrate from TCCC and also receives marketing funding to help promote the sale of TCCC products. Bottling agreements with TCCC for each of the Group’s territories extend through 28 May 2026 , with terms of 10 years, with each containing the right for the Group to request a 10 year renewal. Additionally, two of the Group’s 17 Directors are nominated by TCCC. The Group and TCCC engage in a variety of marketing programmes to promote the sale of TCCC products in territories in which the Group operates. The Group and TCCC operate under an incidence based concentrate pricing model and funding programme, the terms of which are tied to the terms of our bottling agreements. TCCC makes discretionary marketing contributions under shared marketing agreements to CCEP’s operating subsidiaries. Amounts to be paid to the Group by TCCC under the programmes are generally determined annually and are periodically reassessed as the programmes progress. Under the bottling agreements, TCCC is under no obligation to participate in the programmes or continue past levels of funding in the future. The amounts paid and terms of similar programmes with other franchises may differ. Marketing support funding programmes granted to the Group provide financial support principally based on product sales or upon the completion of stated requirements and are intended to offset a portion of the costs of the programmes. Payments from TCCC for marketing programmes to promote the sale of products are classified as a reduction in cost of sales, unless the presumption that the payment is a reduction in the price of the franchisors’ products can be overcome. Payments for marketing programmes are recognised as product is sold. The following table summarises the transactions with TCCC that directly impacted the consolidated income statement for the years presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Amounts affecting revenue (A) 59 61 44 Amounts affecting cost of sales (B) (2,860 ) (2,829 ) (2,227 ) Amounts affecting operating expenses (C) (18 ) (1 ) 1 Total net amount affecting the consolidated income statement (2,819 ) (2,769 ) (2,182 ) (A) Amounts principally relate to fountain syrup and packaged product sales. (B) Amounts principally relate to the purchase of concentrate, syrup, mineral water and juice, as well as funding for marketing programmes. (C) Amounts principally relate to certain costs associated with new product development initiatives. The following table summarises the transactions with TCCC that impacted the consolidated statement of financial position for the periods presented: 31 December 2018 31 December 2017 € million € million Amounts due from TCCC 101 71 Amounts payable to TCCC 166 162 Repayment of acquired loan At the time of the Merger, the Group assumed a non-interest bearing loan with Atlantic Industries, a subsidiary of TCCC, for the amount of € 73 million . This loan was fully repaid prior to 31 December 2016. Terms and conditions of transactions with TCCC Outstanding balances on transactions with TCCC are unsecured, interest free and generally settled in cash. There have been no guarantees provided or received for any TCCC receivables or payables. Receivables from TCCC are considered to be recoverable and no expense was incurred as a result of outstanding receivables due from TCCC for the year ended 31 December 2018 , 31 December 2017 and 31 December 2016 . Transactions with Cobega companies Cobega S.A. (Cobega) exhibits significant influence over the Group, as defined by IAS 24, “Related Party Disclosures”. As a result of the consummation of the Merger, Cobega, who previously owned 56% of CCIP, indirectly owned 19.5% of the total outstanding shares in the Group as at 31 December 2018 through its ownership interest in Olive Partners. Additionally, five of the Group’s 17 Directors, including the Chairman, are nominated by Olive Partners, three of whom are affiliated with Cobega. The principal transactions with Cobega are for the purchase of juice concentrate and mineral water. The following table summarises the transactions with Cobega that directly impacted the consolidated income statement for the years presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Amounts affecting revenue (A) 3 3 5 Amounts affecting cost of sales (B) (85 ) (80 ) (43 ) Amounts affecting operating expenses (C) (14 ) (16 ) (9 ) Total net amount affecting the consolidated income statement (96 ) (93 ) (47 ) (A) Amounts principally relate to packaged product sales. (B) Amounts principally relate to the purchase of concentrate, mineral water and packaging materials. (C) Amounts principally relate to certain costs associated with maintenance and repair services and rent. The following table summarises the transactions with Cobega that impacted the consolidated statement of financial position for the periods presented: 31 December 2018 31 December 2017 € million € million Amounts due from Cobega 6 4 Amounts payable to Cobega 25 16 There are no significant transactions with other related parties in the periods presented. Transactions with key management personnel Key management personnel are the members of the Board of Directors and the members of the Executive Leadership Team. The following table summarises the total remuneration paid or accrued during the reporting period related to key management personnel: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Salaries and other short-term employee benefits (A) 23 18 20 Post-employment benefits 1 1 1 Share-based payments 9 8 20 Termination benefits — — 10 Total 33 27 51 (A) Short-term employee benefits includes wages, salaries and social security contributions, paid annual leave and paid sick leave, paid bonuses and non-monetary benefits (such as medical care and cars). The Group did not have any loans with key management personnel and was not party to any other transactions with the key management personnel during the periods presented. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax [Abstract] | |
INCOME TAXES | INCOME TAXES Current income tax Current income tax for the period includes amounts expected to be payable on taxable income in the period together with any adjustments to taxes payable in respect of previous periods, and is determined based on the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities. Deferred tax Deferred tax is determined by identifying the temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax for the period includes origination and reversal of temporary differences, remeasurements of deferred tax balances and adjustments in respect of prior periods. Deferred tax liabilities are recognised for all taxable temporary differences, except: • when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or • in respect of taxable temporary differences associated with investments in subsidiaries, branches and associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled by the Group and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised, except: • when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or • in respect of deductible temporary differences associated with investments in subsidiaries, branches and associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Income tax is recognised in the consolidated income statement . Income tax is recognised in other comprehensive income or directly in equity to the extent that it relates to items recognised in other comprehensive income or in equity. 2018 , 2017 and 2016 results The following table summarises the major components of income tax expense for the periods presented. 31 December 2018 31 December 2017 31 December 2016 € million € million € million Current income tax: Current income tax charge 315 294 242 Adjustment in respect of current income tax from prior periods 4 — 24 Total current tax 319 294 266 Deferred tax: Relating to the origination and reversal of temporary differences 21 196 (56 ) Adjustment in respect of deferred income tax from prior periods (6 ) (3 ) 3 Relating to changes in tax rates or the imposition of new taxes (38 ) (16 ) (43 ) Total deferred tax (23 ) 177 (96 ) Income tax charge per the income statement 296 471 170 The following table summarises the taxes on items recognised in other comprehensive income and directly within equity for the periods presented. 31 December 2018 31 December 2017 31 December 2016 € million € million € million Taxes charged (credited) to OCI: Deferred tax on net gain/loss on revaluation of cash flow hedges (3 ) — (2 ) Deferred tax on net gain/loss on net investment hedges (41 ) (27 ) (22 ) Current tax on net gain/loss on net investment hedges 41 — — Deferred tax on net gain/loss on pension plan remeasurements — 18 (14 ) Total taxes charged (credited) to OCI (3 ) (9 ) (38 ) Taxes charged (credited) to equity: Deferred tax charge (credit): share based compensation 12 (12 ) (5 ) Current tax charge (credit): share based compensation (5 ) (2 ) — Total taxes charged (credited) to equity 7 (14 ) (5 ) The effective tax rate was 24.6% , 40.6% and 23.6% for the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 , respectively. The parent company of the Group is a UK company. Accordingly, the following tables provide reconciliations of the Group’s income tax expense at the UK statutory tax rate to the actual income tax expense for the periods presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Accounting profit before tax from continuing operations 1,205 1,159 719 Tax expense at the UK statutory rate 229 223 144 Taxation of foreign operations, net (A) 81 86 (11 ) Non-deductible expense items for tax purposes (B) 30 7 13 Non-deductible transaction costs — — 10 Rate and law change benefit, net (C)(D)(E)(F)(G)(H)(I) (38 ) (16 ) (43 ) Deferred taxes not recognised (J) (4 ) 174 30 Adjustment in respect of prior periods (K) (2 ) (3 ) 27 Total provision for income taxes 296 471 170 (A) This reflects the impact, net of income tax contingencies, of having operations outside the UK, which are taxed at rates other than the statutory UK rate of 19% (2017: 19.25% , 2016: 20% ), with the benefit of some income being fully or partially exempt from income taxes due to various operating and financing activities. In 2017, the amount also includes a net €125 million charge related to the deemed repatriation of profits to the US under the Tax Cuts and Jobs Act of 2017 (the US Tax Act). (B) In 2018, includes a €24 million charge from a change in tax basis in the year as a result of the simplification of our debt and capital structure following the US Tax Act. (C) In 2018, the Basque territory enacted a law change which reduced the rate of tax from 28% in prior years, to 26% in 2018 and 24% from 2019. Additionally the rules relating to the use of tax credits changed. The Group recognised a deferred tax benefit of €23 million to reflect the impact of this change. (D) In December 2018, the Netherlands enacted an incremental corporate income tax rate reduction from 25% , ultimately reaching 20.5% , effective 1 January 2021. As a result, the Group recognised a deferred tax benefit of €9 million to reflect the impact of this change. (E) In June 2018, Sweden enacted an incremental corporate income tax rate reduction from 22% , ultimately reaching 20.6% , effective 1 January 2021. As a result, the Group recognised a deferred tax benefit of €5 million to reflect the impact of this change. (F) In December 2017, the US enacted a corporate income tax rate reduction from 35% to 21% effective 1 January 2018. In 2017, the Group recognised a deferred tax expense of €16 million to reflect the impact of this change. (G) During the second half of 2016, France enacted a corporate income tax rate reduction from 33.33% to 28% effective for tax years beginning on or after 1 January 2018. As a result, the Group recognised a deferred tax benefit of €28 million during the second half of 2016 to reflect the impact of this change. In December 2017, France enacted a further incremental corporate income tax rate reduction, ultimately reaching 25% effective 1 January 2022. In 2017, the Group recognised a deferred tax benefit of €11 million to reflect the impact of this change. (H) In December 2017, Belgium enacted an incremental corporate income tax rate reduction from 34% , ultimately reaching 25% , effective 1 January 2020. As a result, the Group recognised a deferred tax benefit of €20 million to reflect the impact of this change. (I) During the second half of 2016, the UK enacted a corporate income tax rate reduction of 1% effective 1 April 2020. As a result, the Group recognised a deferred tax benefit of €14 million during the second half of 2016 to reflect the impact of this change. (J) In 2017, deferred taxes not recognised include a €178 million charge related to the reduction of foreign tax credits as a result of the US Tax Act. (K) In 2018, the adjustment in respect of prior periods includes a charge of €11 million to true up the estimated impact of changes to the US tax system enacted under the US Tax Act. Deferred income taxes The following table summarises the movements in the carrying amounts of deferred tax liabilities and assets by significant component during the period presented: Franchise and other intangible assets Property, plant and equipment Financial assets and liabilities Tax losses Employee and retiree benefit accruals Tax credits Other, net Total, net € million € million € million € million € million € million € million € million 31 December 2016 1,980 318 80 (72 ) (124 ) (258 ) 50 1,974 Amount charged/(credited) to income statement (excluding effect of tax rate changes) 2 (21 ) (12 ) 45 20 165 (6 ) 193 Effect of tax rate changes on income statement (33 ) (13 ) 3 8 14 — 5 (16 ) Amounts charged/(credited) directly to OCI (excluding effect of tax rate changes) — — — — 17 — — 17 Effect of tax rate changes on OCI — — (27 ) — 1 — — (26 ) Amount charged/(credited) to equity (excluding effect of tax rate changes) — — — — (20 ) — — (20 ) Effect of tax rate changes on equity — — — — 8 — — 8 Acquired through business combinations 63 (45 ) — — (2 ) 46 (7 ) 55 Balance sheet reclassifications (2 ) 2 — — — — — — Effect of movements in foreign exchange (13 ) (4 ) (13 ) 5 3 19 (1 ) (4 ) As at 31 December 2017 1,997 237 31 (14 ) (83 ) (28 ) 41 2,181 Amount charged/(credited) to income statement (excluding effect of tax rate changes) (3 ) (23 ) 28 10 (9 ) 11 1 15 Effect of tax rate changes on income statement (40 ) (1 ) — — — 4 (1 ) (38 ) Amounts charged/(credited) directly to OCI — — (44 ) — — — — (44 ) Amount charged/(credited) to equity — — — — 11 1 — 12 Effect of movements in foreign exchange (5 ) (1 ) — — — — — (6 ) As at 31 December 2018 1,949 212 15 (4 ) (81 ) (12 ) 41 2,120 The total net deferred tax liability of €2,120 million at 31 December 2018 is presented in the consolidated statement of financial position as deferred tax assets of €37 million and deferred tax liabilities of €2,157 million . Other net deferred tax liabilities as at 31 December 2018 include a €44 million liability arising on assets capitalised under IFRS but expensed for tax, and a € 22 million liability related to purchase accounting on earlier transactions in an acquired entity. Unrecognised tax items The utilisation of tax losses and temporary differences carried forward, for which no deferred tax asset is currently recognised, is subject to the resolution of tax authority enquiries and the achievement of positive income in periods which are beyond the Group’s current business plan, and therefore this utilisation is uncertain. In respect of unused tax losses and other attributes carried forward, deferred tax assets of €544 million , €569 million and € 356 million have not been recognised as at 31 December 2018 , 31 December 2017 and 31 December 2016 , respectively. As at 31 December 2018 , the net recognised tax losses carried forward totalled €4 million . Of these, €3 million expire between 2026 and 2028 . As at 31 December 2018 , the Group recognised tax credits carried forward totalled €12 million , which expire between 2043 and 2048 . As at 31 December 2018 , there are no taxable temporary differences associated with investments in subsidiaries. Tax provisions The Group is routinely under audit by taxing authorities in the ordinary course of business. Due to their nature, such proceedings and tax matters involve inherent uncertainties including, but not limited to, court rulings, settlements between affected parties and/or governmental actions. The probability of outcome is assessed and accrued as a liability and/or disclosed, as appropriate. The Group maintains provisions for uncertainty relating to these tax matters that it believes appropriately reflect its risk, the carrying amount of which as at 31 December 2018 is included within other non-current liabilities on the consolidated statement of financial position . The Group reviews the adequacy of these provisions at the end of each reporting period and adjusts them based on changing facts and circumstances. Due to the uncertainty associated with tax matters, it is possible that at some future date, liabilities resulting from audits or litigation could vary significantly from the Group’s provisions. The Group has received tax assessments in certain jurisdictions for potential tax related to the Group’s purchases of concentrate. The value of the Group’s concentrate purchases is significant, and therefore, the tax assessments are substantial. The Group strongly believes the application of tax has no technical merit based on applicable tax law, and its tax position would be sustained. Accordingly, the Group has not recorded a tax liability for these assessments, and is vigorously defending its position against these assessments. US Tax Cuts and Jobs Act The US Tax Cuts and Jobs Act was enacted on 22 December 2017 and represented a significant change to the US tax code. Whilst the Group is a UK listed and tax resident entity, it has a number of subsidiaries outside the UK including a US incorporated holding company that is wholly owned by Coca-Cola European Partners plc. Based on the applicable provisions of the US Tax Act, the Group recorded a non-recurring provisional book tax expense totalling €320 million during the fourth quarter of 2017. In 2018, the Group finalised its calculation of the impact of the enactment and recorded a further €11 million of non-recurring book tax expense. Further regulations clarifying the continuing impact of the new regime on the Group were issued in late December 2018 and have yet to be finalised by the US government which could ultimately have an impact on the consolidated financial statements. The total expense of € 331 million is comprised of the following items: • A deemed repatriation book tax charge of € 156 million , net of foreign tax credits. As part of the transition from a worldwide taxation to a territorial taxation system, the US Tax Act imposed a one-off transition tax on unrepatriated earnings of US entities with investments in foreign entities. For the Group, this impact represented a book tax expense and will not result in additional cash taxes. • A € 167 million reduction in deferred tax assets recognised due to the repeal of the foreign tax credit system. The Group has determined that its foreign tax credits brought forward will not be fully utilised going forward and as such has reduced its deferred tax assets accordingly. • An € 8 million net reduction in deferred tax liabilities as a result of the reduction in the US corporate income tax rate from 35% to 21% with effect from 1 January 2018. Based on the backward tracing requirements of IAS 12, the Group recognised a deferred tax benefit of €27 million in other comprehensive income, an € 11 million unfavourable adjustment to equity, and a deferred tax book expense of € 8 million . |
SHARE-BASED PAYMENTS PLANS
SHARE-BASED PAYMENTS PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Share-Based Payment Arrangements [Abstract] | |
SHARE-BASED PAYMENTS PLANS | SHARE-BASED PAYMENT PLANS The Group has established share-based payment plans that provide for the granting of share options and restricted stock units, some with performance and/or market conditions, to certain executive and management level employees. These awards are designed to align the interests of its employees with the interests of its shareholders. The Group recognises compensation expense equal to the grant date fair value for all share-based payment awards that are expected to vest. Expense is generally recorded on a straight line basis over the requisite service period for each separately vesting portion of the award. During the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 , compensation expense related to our share-based payment plans totalled €17 million , €14 million and €42 million , respectively. Share options Share options (1) are granted with exercise prices equal to or greater than the fair value of the Group’s stock on the date of grant (2) generally vest in three annual tranches over a period of 36 months and (3) expire 10 years from the date of grant. Generally, when options are exercised, new shares will be issued rather than issuing treasury shares, if available. At the time of the Merger, 7,462,690 options to purchase CCE shares were converted to 9,900,496 options to purchase Company shares. The number of options, exercise price and grant date fair value were converted to ensure no change in the option holders’ intrinsic values or total cost to exercise. There were no changes made to any option’s vesting schedule and no additional compensation expense was recognised as a result of this conversion. No options were granted during the year ended 31 December 2018 , 31 December 2017 and 31 December 2016 . All options outstanding as at 31 December 2018 , 31 December 2017 and 31 December 2016 were valued and had exercise prices in US dollars. The following table summarises our share option activity for the periods presented: 2018 2017 2016 Shares Average exercise price Shares Average exercise price Shares Average exercise price thousands US$ thousands US$ thousands US$ Outstanding at beginning of year 8,579 23.58 9,435 23.03 8,136 29.17 Granted — — — — — — Exercised (2,037 ) 14.16 (842 ) 17.48 (1,347 ) 14.61 Forfeited, expired or cancelled — — (14 ) 24.61 (12 ) 32.22 Adjustment for option conversion n/a n/a n/a n/a 2,658 37.05 Outstanding at end of year 6,542 26.51 8,579 23.58 9,435 23.03 Options exercisable at end of year 6,542 26.51 8,417 23.28 8,701 21.77 The weighted average share prices during the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 were US$41.91 , US$39.24 and US$42.12 , respectively. The following table summarises the weighted average remaining life of options outstanding for the periods presented: 2018 2017 2016 Range of exercise prices Options outstanding Weighted average remaining life Options Weighted average remaining life Options Weighted US$ thousands years thousands years thousands years 5.00 to 15.00 713 0.84 1,987 1.37 2,532 2.09 15.01 to 25.00 2,459 2.94 2,882 3.98 3,060 5.01 25.01 to 40.00 3,370 5.84 3,710 6.85 3,843 7.83 6,542 4.21 8,579 4.62 9,435 5.37 Restricted Stock Units (RSUs) and Performance Share Units (PSUs) RSU awards entitle the participant to accrue dividends, which are paid in cash only if the RSUs vest. They do not give voting rights. Upon vesting, the participant is granted one share for each RSU. They generally vest subject to continued employment for a period of at least 36 months . Unvested RSUs are restricted as to disposition and subject to forfeiture. There were 0.3 million , 0.4 million and 0.4 million unvested RSUs outstanding with a weighted average grant date fair value of US$39.51 , US$44.05 and US$45.76 as at 31 December 2018 , 31 December 2017 and 31 December 2016 , respectively. PSU awards entitle the participant to the same benefits as RSUs. They vest subject to continued employment for a period of at least 36 months and the attainment of certain market conditions and/or performance targets. There were 1.2 million , 1.3 million and 1.4 million of unvested PSUs with weighted average grant date fair values of US$42.66 , US$44.19 and US$45.81 outstanding as at 31 December 2018 , 31 December 2017 and 31 December 2016 , respectively. The PSUs granted in 2014 were subject to a market condition that adjusted the number of PSUs otherwise earned based on the following year’s EPS results. Specifically, the percentage of the target PSUs earned based on EPS growth was adjusted upward based on Total Shareholder Return (TSR) performance, as compared to the TSR of the companies in the S&P 500 over the performance period. The 2014 performance share units were paid out during 2018 at 175% of the target award. The 2015 PSUs contained only performance and service conditions and will pay out at 100% of the target award in 2019. In 2016, there was no award of PSUs. The 2017 and 2018 PSUs vest after three years and are subject to two equally weighted performance conditions: compound annual growth rate of earnings per share, and return on invested capital (ROIC), both measured over a three year period. Key assumptions for grant date fair value The following table summarises the weighted average grant date fair values per unit: Restricted Stock Units 2018 2017 Grant date fair value - service conditions (US$) 41.62 38.95 Grant date fair value - service and performance conditions (US$) 41.76 37.78 Conversions of share-based payments Upon completion of the Merger, each unvested restricted stock unit of CCE shares was converted into a cash payment of US$14.50 and one restricted stock unit of Company shares. The cash payment and restricted stock unit both vest concurrently and under the same schedule as the original CCE restricted stock unit. These awards do not contain a net settlement feature for employee taxes; therefore, the liability of €21 million for tax withholdings on unvested restricted stock units as at the Merger was reclassified into equity. Further, the Group determined that the total fair value of the cash payment and the new restricted stock unit immediately after the Merger equalled the fair value of the original restricted stock unit immediately prior to the Merger; thus no incremental expense was recognised. As at 31 December 2016 , the total accrued portion of the cash payment reclassified from equity and included within accrued compensation was €16 million . Additionally, CCE had a pre-existing deferred share-based payment plan that was terminated in connection with the Merger. This resulted in the plan being converted and reclassified from an equity-settled plan to a cash-settled plan and shortly after the Merger approximately €27 million was distributed to the plan participants. |
PROVISIONS, CONTINGENCIES AND C
PROVISIONS, CONTINGENCIES AND COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
PROVISIONS, CONTINGENCIES AND COMMITMENTS | PROVISIONS, CONTINGENCIES AND COMMITMENTS Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When some or all of a provision is expected to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the consolidated income statement , net of any reimbursement. Asset retirement obligations are estimated at the inception of a lease or contract, for which a liability is recognised. A corresponding asset is also created and depreciated. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Provisions The following table summarises the movement in each class of provision for the periods presented: Restructuring provision Decommissioning provision Other provisions (A) Total € million € million € million € million As at 31 December 2016 289 12 9 310 Charged/(credited) to profit or loss: Additional provisions recognised 186 1 9 196 Unused amounts reversed (22 ) — (3 ) (25 ) Utilised during the period (238 ) (1 ) (2 ) (241 ) Translation 1 1 — 2 As at 31 December 2017 216 13 13 242 Charged/(credited) to profit or loss: Additional provisions recognised 236 4 2 242 Unused amounts reversed (23 ) — — (23 ) Utilised during the period (206 ) (1 ) (2 ) (209 ) As at 31 December 2018 223 16 13 252 Non-current 99 16 4 119 Current 124 — 9 133 As at 31 December 2018 223 16 13 252 (A) Other provisions primarily relate to property tax assessment provisions and legal reserves and are not considered material to these financial statements. Restructuring provision Restructuring provisions are recognised only when the Group has a constructive obligation, which is when a detailed formal plan identifies the business or part of the business concerned, the location and number of employees affected, a detailed estimate of the associated costs and an appropriate timeline and the employees affected have been notified of the plan’s main features. These provisions are expected to be resolved by the time the related programme is substantively complete. Refer to Note 15 for further details regarding our restructuring programmes, including expected completion date, total costs incurred and expected costs to be incurred. Decommissioning provisions Decommissioning liabilities relate to contractual or legal obligations to pay for asset retirement costs. The liabilities represent both the reinstatement obligations when the Group is contractually obligated to pay for the cost of retiring leased buildings and the costs for collection, treatment, reuse, recovery and environmentally sound disposal of cold drink equipment. Specific to cold drink equipment obligations, the Group is subject to, and operates in accordance with, the EU Directive on Waste Electrical and Electronic Equipment (WEEE). Under the WEEE, companies that put electrical and electronic equipment (such as cold drink equipment) on the EU market are responsible for the costs of collection, treatment, recovery and disposal of their own products. Where applicable, the WEEE provision estimate is calculated utilising assumptions including disposal cost per unit, average equipment age and the inflation rate, to determine the appropriate accrual amount. The period over which the decommissioning liabilities on leased buildings and cold drink equipment will be settled ranges from 1 to 10 years and 3 to 13 years, respectively. Contingencies Legal proceedings and tax matters The Group is involved in various legal proceedings and tax matters and is routinely under audit by taxing authorities in the ordinary course of business. Due to their nature, such legal proceedings and tax matters involve inherent uncertainties including, but not limited to, court rulings, settlements between affected parties and/or governmental actions. The probability of loss for such contingencies is assessed and accrued as a liability and/or disclosed, as appropriate. Guarantees In connection with ongoing litigation in certain territories, guarantees of approximately €295 million have been issued to the authorities. The Group was required to issue these guarantees to satisfy potential obligations arising from such litigation. In addition, we have approximately €80 million of guarantees issued to third parties through the normal course of business. The guarantees have various terms, and the amounts represents the maximum potential future payments that we could be required to make under the guarantees. No significant additional liabilities in the accompanying consolidated financial statements are expected to arise from guarantees issued. Commitments Commitments beyond 31 December 2018 are disclosed herein but not accrued for within the consolidated statement of financial position . Purchase agreements Total purchase commitments were €0.7 billion as at 31 December 2018 . This amount represents non-cancellable purchase agreements with various suppliers that are enforceable and legally binding, and that specify a fixed or minimum quantity that we must purchase. All purchases made under these agreements have standard quality and performance criteria. In addition to these amounts, the Group has outstanding capital expenditure purchase orders of approximately €148 million as at 31 December 2018 . The Group also has other purchase orders raised in the ordinary course of business which are settled in a reasonably short period of time. Operating lease commitments The Group leases land, office and warehouse space, computer hardware, machinery and equipment and vehicles under non-cancellable operating lease agreements expiring at various dates through to 2028 . Some lease agreements contain standard renewal provisions that allow for renewal at rates equivalent to fair market value at the end of the lease term. Under lease agreements that contain escalating rent provisions, lease expense is recorded on a straight-line basis over the lease term. Under lease agreements that contain rent holidays, rent expense is recorded on a straight-line basis over the entire lease term, including the period covered by the rent holiday. Rent expense under non-cancellable operating lease agreements totalled €119 million , €120 million and €92 million during the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 , respectively. The following table summarises the future maturity of the Group’s operating lease obligations as at the dates presented: 31 December 2018 31 December 2017 Operating lease maturities € million € million Within one year 94 90 After one year but not more than five years 169 163 More than five years 37 37 Total minimum lease payments 300 290 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER ASSETS | OTHER ASSETS The following table summarises the Group’s other current assets as at the dates presented: 31 December 2018 31 December 2017 Other current assets € million € million Prepayments 47 45 VAT receivables 17 273 Miscellaneous receivables 114 124 Assets held for sale 15 10 Total other current assets 193 452 The following table summarises the Group’s other non-current assets as at the dates presented: 31 December 2018 31 December 2017 Other non-current assets € million € million VAT receivables 318 — Retirement benefit surplus 21 24 Other 57 57 Total other non-current assets 396 81 VAT receivables As at 31 December 2018 and 31 December 2017 , the Group had a value added tax (VAT) receivable recorded of € 318 million and € 235 million respectively, relating to a dispute that began in 2014 between the Spanish Tax Authorities and the Regional Tax Authorities of Bizkaia (Basque Region) as to the responsibility for refunding the VAT to CCEP. Under relevant tax laws in Spain, conflicts between jurisdictions are ruled by a special Arbitration Board and the refund of the VAT is mandated following the resolution of the issue at the Arbitration Board. However, to date, the Arbitration Board has not ruled on the issue and Spanish legislation offers limited mechanisms for a taxpayer to force the expedition of matters before the Arbitration Board. Under the laws of the European Union, there must be neutrality of treatment between a supplier and the recipient of a transaction, i.e. provided VAT has been correctly charged and paid, and the recipient is entitled to deduct the input VAT, the excess VAT must be refunded. As such, we believe it is a certainty that the amount due plus interest will be refunded to CCEP once the Arbitration Board rules. However, in light of the continued delay in the resolution of the matter, the VAT receivable has been reclassified to other non-current assets as at 31 December 2018 . |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
FINANCIAL RISK MANAGEMENT | FINANCIAL RISK MANAGEMENT Financial risk factors, objectives and policies The Group’s activities expose it to several financial risks including market risk, credit risk and liquidity risk. Financial risk activities are governed by appropriate policies and procedures to minimise the uncertainties these risks create on the Group’s future cash flows. Such policies are developed and approved by the Group’s Treasury and Commodities Risk Committee, through the authority provided to it by the Board. Market risk Market risk represents the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market prices and includes interest rate risk, currency risk and other price risk such as commodity price risk. Market risk affects outstanding borrowings, as well as derivative financial instruments. Interest rates The Group is subject to interest rate risk for its outstanding borrowings. To manage interest rate risk, the Group maintains a significant proportion of its borrowings at fixed rates. Approximately 87% and 77% of the Group’s interest bearing borrowings was comprised of fixed rate borrowings at 31 December 2018 and 31 December 2017 , respectively. The Group has not entered into any interest rate swap agreements or other such instruments to hedge its interest rate risk during the periods presented. If interest rates on the Group’s floating rate debt were adjusted by 1% for the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 , the Group’s finance costs and pre-tax equity would change on an annual basis by approximately €6 million , €12 million and €15 million , respectively. This amount is determined by calculating the effect of a hypothetical interest rate change on the Group’s floating rate debt. This estimate does not include the effects of other actions to mitigate this risk or changes in the Group’s financial structure. Currency exchange rates The Group’s exposure to the risk of changes in currency exchange rates relates primarily to its operating activities denominated in currencies other than the functional currency, euro. To manage currency exchange risk arising from future commercial transactions and recognised monetary assets and liabilities, foreign currency forward and option contracts with external third parties are utilised. Typically, up to 80% of anticipated cash flow exposures in each major foreign currency for the next calendar year are hedged using a combination of forward and option contracts with third parties. The Group is also exposed to the risk of changes in currency exchange rates between US dollar and euro relating to its US denominated borrowings. The following table demonstrates the sensitivity of the Group’s profit before income taxes and pre-tax equity as a result of changes in the value of outstanding debt instruments due to reasonable movements in the US dollar against the euro, with all other variables held constant. Movements in foreign currencies related to the Group’s other financial instruments do not have a material impact on profit before income taxes or pre-tax equity. Change in currency rate € strengthens against US$ € weakens against US$ Effect on profit before tax and pre-tax equity % € million € million Year ended 31 December 2018 10 85 (93 ) Year ended 31 December 2017 10 81 (89 ) Year ended 31 December 2016 10 92 (101 ) Commodity price risk The competitive marketplace in which the Group operates may limit its ability to recover increased costs through higher prices. As such, the Group is subject to market risk with respect to commodity price fluctuations, principally related to its purchases of aluminium, PET (plastic), steel, sugar and vehicle fuel. When possible, exposure to this risk is managed primarily through the use of supplier pricing agreements, which enable the Group to establish the purchase price for certain commodities. Certain suppliers restrict the Group’s ability to hedge prices through supplier agreements. As a result, commodity hedging programmes are entered into and generally designated as hedging instruments. Refer to Note 10 Hedging Activities for more information. Typically, up to 80% of the anticipated commodity transaction exposures for the next calendar year are hedged using a combination of forward and option contracts executed with third parties. The Group estimates that a 10% change in the market price of these commodities over the current market prices would affect operating profit during the next 12 months by approximately €37 million . This does not take into account the effects of derivative instruments used to manage exposure to this risk or pricing agreements in place. Credit risk The Group is exposed to counterparty credit risk on all of its derivative financial instruments. Strict counterparty credit guidelines are maintained and only financial institutions that are investment grade or better are acceptable counterparties. Counterparty credit risk is continuously monitored and numerous counterparties are utilised to minimise exposure to potential defaults. Collateral is not required under these agreements. The maximum credit risk exposure for each derivative financial instrument is the carrying amount of the derivative. Credit is extended in the form of payment terms for trade to customers of the Group, consisting of retailers, wholesalers and other customers, generally without requiring collateral, based on an evaluation of the customer’s financial condition. While the Group has a concentration of credit risk in the retail sector, this risk is mitigated due to the diverse nature of the customers the Group serves, including, but not limited to, their type, geographic location, size and beverage channel. Collections of receivables are dependent on each individual customer’s financial condition and sales adjustments granted. Trade accounts receivable are carried at net realisable value. Typically, accounts receivable have terms of 30 to 60 days and do not bear interest. Exposure to losses on receivables is monitored, and allowances for potential losses or adjustments are maintained. Allowances are determined by: (1) evaluating the aging of receivables; (2) analysing the history of adjustments; and (3) reviewing high risk customers. Past due receivable balances are written off when the Group’s efforts have been unsuccessful in collecting the amount due. Credit insurance on a portion of the accounts receivable balance is also carried. Liquidity risk Liquidity risk is actively managed to ensure that the Group has sufficient funds to satisfy its commitments. The Group’s sources of capital include, but are not limited to, cash flows from operations, public and private issuances of debt and equity securities and bank borrowings. The Group believes its operating cash flow, cash on hand and available short-term and long-term capital resources are sufficient to fund its working capital requirements, scheduled borrowing payments, interest payments, capital expenditures, benefit plan contributions, income tax obligations and dividends to its shareholders. Counterparties and instruments used to hold cash and cash equivalents are continuously assessed, with a focus on preservation of capital and liquidity. Based on information currently available, the Group does not believe it is at significant risk of default by its counterparties. The Group has amounts available for borrowing under a €1.5 billion multi-currency credit facility with a syndicate of 10 banks. This credit facility matures in 2023 and is for general corporate purposes, including serving as a backstop to its commercial paper programme and supporting the Group’s working capital needs. Based on information currently available, the Group has no indication that the financial institutions participating in this facility would be unable to fulfil their commitments as at the date of these financial statements. The current credit facility contains no financial covenants that would impact the Group’s liquidity or access to capital. As at 31 December 2018 , the Group had no amounts drawn under this credit facility. The table below analyses the Group’s non-derivative financial liabilities and net settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Derivative financial liabilities are included in the analysis if their contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows: Total Less than 1 year 1 to 3 years 3 to 5 years More than 5 years Financial liabilities € million € million € million € million € million 31 December 2018 Trade accounts payable 2,327 2,327 — — — Amounts payable to related parties 191 191 — — — Borrowings 5,626 491 1,584 1,057 2,494 Derivatives 71 20 51 — — Total financial liabilities 8,215 3,029 1,635 1,057 2,494 31 December 2017 Trade accounts payable 2,282 2,282 — — — Amounts payable to related parties 178 178 — — — Borrowings 5,792 274 1,320 1,722 2,476 Derivatives 94 1 93 — — Total financial liabilities 8,346 2,735 1,413 1,722 2,476 Capital management The primary objective of the Group’s capital management is to ensure a strong credit rating and appropriate capital ratios are maintained in order to support the Group’s business and maximise shareholder value. The Group’s credit ratings are periodically reviewed by rating agencies. Currently, the Group’s long-term ratings from Moody’s and Standard & Poor’s (S&P), are A3 and BBB+, respectively. The ratings outlook from Moody’s and S&P are stable. Changes in the operating results, cash flows or financial position could impact the ratings assigned by the various rating agencies. The credit rating can be materially influenced by a number of factors including, but not limited to, acquisitions, investment decisions, capital management activities of TCCC and/or changes in the credit rating of TCCC. Should the credit ratings be adjusted downward, the Group may incur higher costs to borrow, which could have a material impact on the financial condition and results of operations. The capital structure is managed and, as appropriate, adjustments are made in light of changes in economic conditions and the Group’s financial policy. The Group monitors its operating performance in the context of targeted financial leverage by comparing the ratio of net debt with Adjusted EBITDA. Net debt is calculated as being the net of cash and cash equivalents and currency adjusted borrowings. Adjusted EBITDA is calculated as EBITDA and adjusting for items impacting comparability. Refer to Note 9 for the presentation of fair values for each class of financial assets and financial liabilities and Note 10 for an outline of how the Group utilises derivative financial instruments to mitigate its exposure to certain market risks associated with its ongoing operations. Refer to the Strategic Report included within this Integrated Report for disclosure of strategic, commercial and operational risk relevant to the Group. |
GROUP COMPANIES
GROUP COMPANIES | 12 Months Ended |
Dec. 31, 2018 | |
Interest In Other Entities [Abstract] | |
GROUP COMPANIES | GROUP COMPANIES In accordance with section 409 of the Companies Act 2006, a full list of the Company’s subsidiaries, partnerships, associates, joint ventures and joint arrangements as at 31 December 2018 is disclosed below, along with, the country of incorporation, the registered address and the effective percentage of equity owned at that date. Unless otherwise stated, each entity has a share capital comprising a single class of ordinary shares and is wholly owned and indirectly held by Coca-Cola European Partners plc. Name Country of incorporation % equity interest Registered address Agua De La Vega Del Codorno, S.L.U. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) Aguas De Santolin, S.L.U. Spain 100% C/ Real, s/n 09246, Quintanaurria (Burgos) Aguas Del Maestrazgo, S.L.U. Spain 100% C/ Monasterio de las huelgas, 7, Pol.ind.Alcalde Caballero, 50014 (Zaragoza) Aguas Del Toscal, S.A.U. Spain 100% Ctra. de la Pasadilla, km. 3- 35250, ingenio (Gran Canaria) Aguas Vilas Del Turbon, S.L.U. Spain 100% C/ Monasterio de las huelgas, 7, Pol.ind.Alcalde Caballero, 50014 (Zaragoza) Amalgamated Beverages Great Britain Limited United Kingdom 100% (D) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ BBH Investment Ireland Limited Ireland 100% 6th Floor, 2 Grand Canal Square (Dublin 2) Bebidas Gaseosas Del Noroeste, S.L.U. Spain 100% Avda.Alcalde Alfonso Molina, s/n- 15007 (A Coruña) Beganet, S.L.U. Spain 100% Avda Paisos Catalans, 32 – 08950 (Esplugues de Llobregat) BH Holdings Lux Commandite SCS Luxembourg 100% (B) 2, Rue des Joncs, L-1818, Howald BH Holdings Luxembourg SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald BH Luxembourg SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald BH SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald Birtingahúsið ehf. Iceland 34.5% Laugavegur 174, 105, (Reykjavík) BL Bottling Holdings UK Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Bottling Great Britain Limited United Kingdom 100% (D) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Bottling Holdings (Luxembourg) SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald Bottling Holdings (Netherlands) B.V. Netherlands 100% Watermanweg 30, 3067 GG (Rotterdam) Bottling Holdings Europe Limited United Kingdom 100% (D)(E) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Bottling Holding France SAS France 100% 9, chemin de Bretagne, 92784 (Issy-les-Moulineaux) CC Digital GmbH Germany 50% Stralauer Allee 4, 10245 (Berlin) CC Erfrischungsgetränke Oldenburg Verwaltungs GmbH Germany 100% Sandkruger, Straße 234, 26133 (Oldenburg) CC Iberian Partners Gestion S.L. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) CC Verpackungsgesellschaft mit beschraenkter Haftung Germany 100% Schieferstraße 20 06126 Halle (Saale) CCEP Group Services Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ CCEP Holdings Norge AS Norway 100% Robsrudskogen 5, 1470 (Lørenskog) CCEP Holdings Sverige AB Sweden 100% Dryckesvägen 2 C, 136 87 (Haninge) CCEP Holdings UK Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ CCEP Ventures Europe Limited United Kingdom 100% (A) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ CCEP Ventures UK Limited United Kingdom 100% (A) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ CCIP Soporte, S.L.U. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) Classic Brand (Europe) Designated Activity Company Ireland 100% 4th Floor, 25-28 Adelaide Road, D02 RY98 (Dublin 2) Cobega Embotellador, S.L.U. Spain 100% Avda Paisos Catalans, 32 – 08950 (Esplugues de Llobregat) Coca-Cola European Partners Belgium SPRL Belgium 100% Chaussée de Mons 1424, 1070 (Brussels) Coca-Cola European Partners Deutschland GmbH Germany 100% (F) Stralauer Allee 4, 10245 (Berlin) Coca-Cola European Partners France SAS France 100% (G) 9, chemin de Bretagne, 92784 (Issy-les-Moulineaux) Coca-Cola European Partners Great Britain Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Coca-Cola European Partners Holdings Great Britain Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Coca-Cola European Partners Holdings US, Inc. United States 100% (A)(D) Corporation Trust Center, 1209 Orange Street, Wilmington 19801 (Delaware) Coca-Cola European Partners Iberia, S.L.U. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) Coca-Cola European Partners Ísland ehf. Iceland 100% Studlahals 1, 110 (Reykjavik) Coca-Cola European Partners Luxembourg SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald Coca-Cola European Partners Nederland B.V. Netherlands 100% Watermanweg 30, 3067 GG (Rotterdam) Coca-Cola European Partners Norge AS Norway 100% Robsrudskogen 5, 1470 (Lørenskog) Coca-Cola European Partners Pension Scheme Trustees Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Coca-Cola European Partners Portugal Unipessoal, LDA Portugal 100% Quinta da Salmoura - Cabanas, 2929- 509, Azeitão (Setúbal) Name Country of incorporation % equity interest Registered address Coca-Cola European Partners Services Bulgaria EOOD Bulgaria 100% 48, Sitnyakovo Blvd, Serdika Center, Office Building, floor 5, 1505 (Sofia) Coca-Cola European Partners Services Europe Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Coca-Cola European Partners Services SPRL Belgium 100% (C) Chaussée de Mons 1424, 1070 (Brussels) Coca-Cola European Partners Sverige AB Sweden 100% Dryckesvägen 2 C, 136 87 (Haninge) Coca-Cola European Partners US II, LLC United States 100% Corporation Trust Center, 1209 Orange Street, Wilmington 19801 (Delaware) Coca-Cola European Partners US, LLC United States 100% Corporation Trust Center, 1209 Orange Street, Wilmington 19801 (Delaware) Coca-Cola Immobilier SCI France 100% (G) 9, chemin de Bretagne, 92784 (Issy-les-Moulineaux) Coca-Cola Production SAS France 100% Zone d’entreprises de Bergues, Commune de Socx, 59380 (Bergues) Compañía Asturiana De Bebidas Gaseosas, S.L.U. Spain 100% C/ Nava, 18- 3ª (Granda) Siero - 33006 (Oviedo) Compañía Castellana De Bebidas Gaseosas, S.L. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) Compañía Levantina De Bebidas Gaseosas, S.L.U. Spain 100% Av. Real Monasterio de Sta. María de Poblet, 36, 46930 (Quart de Poblet) Compañía Norteña De Bebidas Gaseosas, S.L.U. Spain 100% C/ Ibaizábal, 57 – 48960 Galdakao (Bizkaia) Compañía Para La Comunicación De Bebidas Sin Alcohol, S.L.U. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) Conversia IT, S.L.U. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) Developed System Logistics, S.L.U. Spain 100% Av. Henry Ford, 25, Manzana 19, Complejo Pq. Ind. Juan Carlos I , 46220 Picassent (Valencia) GBH Investment Ireland Limited Ireland 100% 6th Floor, 2 Grand Canal Square (Dublin 2) GBH Luxembourg SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald GH Luxembourg SCS Luxembourg 100% (B) 2, Rue des Joncs, L-1818, Howald GR Bottling Holdings UK Limited United Kingdom 100% (A) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Herdt Verwaltungsgesellschaft mit beschränkter Haftung i.L Germany 100% Karl-Herdt-Weg 100, 63075 (Offenbach) Infineo Recyclage SAS France 49% (H) Sainte Marie la Blanche – 21200 (Dijon) Instelling voor Bedrijfspensioenvoorziening Coca-Cola European Partners Belgium/Coca-Cola European Partners Services – Bedienden-Arbeiders OFP Belgium 100% Bergensesteenweg 1424 – 1070 (Brussels) Instelling voor Bedrijfspensioenvoorziening Coca-Cola European Partners Belgium/Coca-Cola European Partners Services – Kaderleden OFP Belgium 100% Bergensesteenweg 1424 – 1070 (Brussels) Iparbal, 99 S.L. Spain 100% C/ Ibaizábal, 57 – 48960 Galdakao (Bizkaia) IPARSOFT, 2004 S.L. Spain 100% C/ Ibaizábal, 57 – 48960 Galdakao (Bizkaia) Kollex GmbH Germany 33.3% Torstraße 155, 10115 (Berlin) Lusobega, S.L. Spain 100% C/ Ibaizábal, 57 – 48960 Galdakao (Bizkaia) Madrid Ecoplatform, S.L.U. Spain 100% C/Pedro Lara, 8 Pq. Tecnológico de Leganes- 28919 (Leganes) Peña Umbria, S.L.U. Spain 100% Av. Real Monasterio de Sta. María de Poblet,36 – 46930 (Quart de Poblet) Refecon Águas S.A. Portugal 100% Quinta da Salmoura - Cabanas-2929- 509 Azeitão (Setúbal) Refrescos Envasados Del Sur, S.L.U. Spain 100% Autovía del Sur A-IV, km.528- 41309 La Rinconada (Sevilla) Refrige Sgps, S.A. Portugal 100% Quinta da Salmoura- Cabanas, 2929-509 (Azeitão) Roalba, S.L.U. Spain 100% C/ Ibaizábal, 57 – 48960 Galdakao (Bizkaia) Solares y Edificios Norteños, S.L.U. Spain 100% C/ Ibaizábal, 57 – 48960 Galdakao (Bizkaia) Svenska Brettbolaget AB Sweden 19.6% Greg Turegatan 9, 114 46, (Stockholm) WB Investment Ireland 2 Limited Ireland 100% 6th Floor, 2 Grand Canal Square (Dublin 2) WB Investment Ireland Limited Ireland 100% 6th Floor, 2 Grand Canal Square (Dublin 2) WBH Holdings Luxembourg SCS Luxembourg 100% 2, Rue des Joncs, L-1818, Howald WBH Luxembourg SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald WIH UK Limited United Kingdom 100% (A) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Wir sind Coca-Cola Gesellschaft mit beschränkter Haftung Germany 100% Stralauer Allee 4, 10245 (Berlin) (A) 100% equity interest directly held by CCEP plc (B) Class A and B ordinary shares (C) Class A, B and C ordinary shares (D) Including preference shares issued to the Group (E) 38.3% equity interest directly held by CCEP plc ( 100% of A ordinary shares in issue) (F) 10% equity interest directly held by CCEP (G) Group shareholding of 99.99% or greater (H) Class A and B shares. The Group holds 49% of Class B shares |
GENERAL INFORMATION AND BASIS_2
GENERAL INFORMATION AND BASIS OF PREPARATION (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Corporate Information And Statement of IFRS Compliance [Abstract] | |
Trade accounts receivable | Trade accounts receivable are initially recognised at fair value and subsequently measured at amortised cost less provision for impairment. Typically, accounts receivable have terms of 30 to 60 days and do not bear interest. With the adoption of IFRS 9 on 1 January 2018, the Group adopted an expected credit loss reserve methodology which had an insignificant effect on the Group’s consolidated financial statements. Refer to Note 1 for further details on the adoption of IFRS 9. Balances are considered for impairment on an individual basis rather than by reference to the extent that they become overdue. The Group considers factors such as delinquency in payment, financial difficulties, payment history of the debtor as well as certain forward-looking macroeconomic indicators. The carrying amount of trade accounts receivable is reduced through the use of an allowance account and the amount of the loss is recognised in the consolidated income statement . Credit insurance on a portion of the accounts receivable balance is also carried. |
Property, plant and equipment | Property, plant and equipment is recorded at cost, net of accumulated depreciation and accumulated impairment losses, where cost is the amount of cash or cash equivalents paid to acquire an asset at the time of its acquisition or construction. Major property additions, replacements and improvements are capitalised, while maintenance and repairs that do not extend the useful life of an asset or add new functionality are expensed as incurred. Land is not depreciated, as it is considered to have an indefinite life. |
Intangible assets and goodwill | Intangible assets with indefinite lives Intangible assets with indefinite lives acquired through business combination transactions are measured at fair value at the date of acquisition. These assets are not subject to amortisation but are tested for impairment at least annually at the CGU level or more frequently if facts and circumstances arise that would indicate an impairment may exist. In addition to the annual impairment test, the assessment of indefinite lives is also reviewed annually. Franchise intangible assets The Group’s bottling agreements contain performance requirements and convey the rights to distribute and sell products within specified territories. The Group’s agreements with TCCC for each of its territories have terms of 10 years and expire on 28 May 2026 , with each containing the right for the Group to request a 10 year renewal. While these agreements contain no automatic right of renewal beyond that date, the Group believes that its interdependent relationship with TCCC and the substantial cost and disruption to TCCC that would be caused by non-renewal ensure that these agreements will continue to be renewed and, therefore, are essentially perpetual. The Group has never had a bottling agreement with TCCC terminated due to non-performance of the terms of the agreement or due to a decision by TCCC to terminate an agreement at the expiration of a term. After evaluating the contractual provisions of bottling agreements, the Group’s mutually beneficial relationship with TCCC and history of renewals, indefinite lives have been assigned to all of the Group’s franchise intangible assets. Goodwill Goodwill is initially measured as the excess of the total consideration transferred over the amount recognised for net identifiable assets acquired and liabilities assumed in a business combination. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the gain is recognised in the consolidated income statement as a bargain purchase. Goodwill is not subject to amortisation. It is tested annually for impairment at the CGU level or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill acquired in a business combination is, from the acquisition date, allocated to the CGU that is expected to benefit from the synergies of the combination irrespective of whether a CGU is part of the business combination. Intangible assets with finite lives Intangible assets with finite lives are measured at cost of acquisition or production and are amortised using the straight-line method over their respective estimated useful lives. Finite lived intangible assets are assessed for impairment whenever there is an indication that they may be impaired. The amortisation period and method are reviewed annually. Internally generated software The Group capitalises certain development costs associated with internally developed software, including external direct costs of materials and services and payroll costs for employees devoting time to a software project and any such software acquired as part of a business combination. Development expenditure is recognised as an intangible asset only after its technical feasibility and commercial viability can be demonstrated. When capitalised software is not integral to related hardware it is treated as an intangible asset; otherwise it is included within property, plant and equipment. The estimated useful life of capitalised software is 5 years. Amortisation expense for capitalised software is included within administrative expenses and was €43 million , €38 million and €33 million for the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 , respectively. Customer relationships The Group acquired certain customer relationships in connection with the acquisitions of the Norway and Sweden bottling operations from TCCC in 2010 and the Merger with CCIP and CCEG in 2016. These customer relationships were recorded at their fair values on the date of acquisition, and they are amortised over an estimated economic life of 20 years. The fair values were determined using a “with and without” valuation technique, which compares the revenues with all assets of the business in place, to a “without” scenario, which assumes the customer relationship asset and related revenues do not exist and must be rebuilt over time. |
Trade and other payables | Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year, which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method. Trade payables are non-interest bearing and are normally settled between 30 to 60 days. |
Fair values | Fair value measurements All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy. This is described, as one of the following, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than quoted prices included in Level 1. The Group values assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The fair values of the Group’s cash and cash equivalents, trade accounts receivable, amounts receivable from related parties, trade and other payables and amounts payable to related parties approximate their carrying amounts due to their short-term nature. The fair values of the Group’s borrowings are estimated based on borrowings with similar maturities and credit quality and current market interest rates. These are categorised within Level 2 of the fair value hierarchy as the Group uses certain pricing models and quoted prices for similar liabilities in active markets in assessing their fair values. |
Basis of preparation | Basis of preparation Upon the consummation of the Merger, the historical consolidated financial statements of CCE became CCEP’s historical financial statements as CCE was deemed to be the predecessor to CCEP. Therefore, the financial results from 1 January 2016 to 27 May 2016 refer to CCE and its consolidated subsidiaries, and the periods subsequent to 28 May 2016 refer to the consolidated financial results of CCEP. Additionally, these consolidated financial statements reflect the following: • They have been prepared in accordance with IFRS as issued by the International Accounting Standards Board, IFRS as adopted by the European Union and in accordance with the provisions of the Companies Act 2006. There are no differences between IFRS as adopted by the European Union and IFRS as issued by the International Accounting Standards Board (IASB) that have an impact for the years presented. • They have been prepared under the historical cost convention, except for certain items measured at fair value. Those accounting policies have been applied consistently in all periods, except for the adoption of new standards and amendments as of 1 January 2018, as described below under Accounting Policies. • They are presented in euros, which is also the Parent Company’s functional currency and all values are rounded to the nearest € million except where otherwise indicated. |
Basis of consolidation | Basis of consolidation The consolidated financial statements comprise the financial statements of the Group and its subsidiaries. All subsidiaries have accounting years ended 31 December and apply consistent accounting policies for the purpose of the consolidated financial statements. Subsidiary undertakings are consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through the Group’s power to direct the activities of the entity. All intercompany accounts and transactions are eliminated on consolidation. |
Foreign currency | Foreign currency The individual financial statements of each subsidiary are presented in the currency of the primary economic environment in which the subsidiary operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each subsidiary are expressed in euros. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are remeasured to the functional currency of the entity at the rate of exchange in effect at the statement of financial position date with the resulting gain or loss recorded in the consolidated income statement . The consolidated income statement includes non-operating items which are primarily made up of remeasurement gains and losses related to currency exchange rate fluctuations on financing transactions denominated in a currency other than the subsidiary’s functional currency. Non-operating items are shown on a net basis and reflect the impact of any derivative instruments utilised to hedge the foreign currency movements of the underlying financing transactions. The assets and liabilities of the Group's foreign operations are translated from local currencies to the euro reporting currency at currency exchange rates in effect at the end of each reporting period. Revenues and expenses are translated at average monthly currency exchange rates, with average rates being a reasonable approximation of the rates prevailing on the transaction dates. Gains and losses from translation are included in other comprehensive income. On disposal of a foreign operation, accumulated exchange differences are recognised as a component of the gain or loss on disposal. |
Function currency | Foreign currency The individual financial statements of each subsidiary are presented in the currency of the primary economic environment in which the subsidiary operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each subsidiary are expressed in euros. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are remeasured to the functional currency of the entity at the rate of exchange in effect at the statement of financial position date with the resulting gain or loss recorded in the consolidated income statement . The consolidated income statement includes non-operating items which are primarily made up of remeasurement gains and losses related to currency exchange rate fluctuations on financing transactions denominated in a currency other than the subsidiary’s functional currency. Non-operating items are shown on a net basis and reflect the impact of any derivative instruments utilised to hedge the foreign currency movements of the underlying financing transactions. The assets and liabilities of the Group's foreign operations are translated from local currencies to the euro reporting currency at currency exchange rates in effect at the end of each reporting period. Revenues and expenses are translated at average monthly currency exchange rates, with average rates being a reasonable approximation of the rates prevailing on the transaction dates. Gains and losses from translation are included in other comprehensive income. On disposal of a foreign operation, accumulated exchange differences are recognised as a component of the gain or loss on disposal. |
Reporting periods | Reporting periods In these consolidated financial statements, the Group is reporting the financial results for the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 . Sales of the Group’s products are seasonal, with the second and third quarters accounting for higher unit sales of the Group’s products than the first and fourth quarters. The seasonality of the Group’s sales volume, combined with the accounting for fixed costs such as depreciation, amortisation, rent and interest expense, impacts the Group’s reported results for the first and second halves of the year. Additionally, year over year shifts in holidays, selling days and weather patterns can impact the Group’s results on an annual or half-yearly basis. |
Significant judgements and estimates | Significant judgements and estimates The preparation of these consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgements made in applying the Group’s accounting policies were applied consistently across the annual periods. The significant judgements and key sources of estimation uncertainty that have a significant effect on the amounts recognised in these financial statements are outlined below: Deductions from revenue and sales incentives The Group participates in various promotional programmes with customers designed to increase the sale of products. Among the programmes are arrangements under which rebates, refunds, price concessions or similar items can be earned by customers for attaining agreed upon sales levels, or for participating in specific marketing programmes. Those promotional programmes do not give rise to a separate performance obligation. Where the consideration the Group is entitled to varies because of such programmes, the amount payable is deemed to be variable consideration. Management makes estimates on an ongoing basis for each individual promotion to assess the value of the variable consideration. The related accruals are recognised as a deduction from revenue and are not considered distinct from the sale of products to the customer. Refer to Note 12 for further details. Income tax The Group is subject to income taxes in numerous jurisdictions and there are many transactions for which the ultimate tax determination cannot be assessed with certainty in the ordinary course of business. The Group recognises a provision for situations that might arise in the foreseeable future based on assessment of the probabilities as to whether additional taxes will be due. In addition, the Group is involved in various legal proceedings and tax matters. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made, management provides for its best estimate of the liability. Where the final outcome on these matters is different from the amounts that were initially recorded, such differences will impact the tax provision in the period in which such determination is made. These estimates are subject to potential change over time as new facts emerge and each circumstance progresses. The evaluation of deferred tax assets recoverability requires judgements to be made regarding the availability of future taxable income in the jurisdiction giving rise to the deferred tax asset. Refer to Note 18 for further details regarding income taxes. Intangible assets and goodwill The Group has assigned indefinite lives to its bottling agreements with The Coca-Cola Company (TCCC). This judgement has been made after evaluating the contractual provisions of the bottling agreements, the Group’s mutually beneficial relationship with TCCC and the history of renewals for bottling agreements. The Group has allocated the goodwill associated with the Merger to the appropriate cash-generating units (CGU). This judgement was based on estimated synergy benefits expected to be realised for each CGU. Determining whether goodwill and intangible assets with indefinite lives are impaired requires an estimation of the value in use or the fair value less costs to sell of the cash-generating units (CGU) to which the goodwill or intangible asset has been allocated. The value in use calculation requires management’s judgement in estimating the future cash flows expected to arise from the CGU. Refer to Note 4 for further details about the judgement regarding the lives of bottling agreements, as well as the sensitivity analysis of the assumptions used in the impairment analysis of goodwill and intangible assets with indefinite lives. Restructuring The Group holds provisions related to its ongoing restructuring programmes. These provisions are predominantly made up of severance costs. While a detailed plan is in place for the respective events, the amount and timing of outflows is subject to estimation uncertainty. Estimates are made by management based on the information available at the statement of financial position date. Actual outflows may not occur as anticipated and estimates may prove to be incorrect, leading to further charges or releases of provisions as circumstances dictate. Refer to Note 15 and Note 20 for further details regarding restructuring provisions. Defined benefit plans The determination of pension benefit costs and obligations are estimated based on assumptions determined with the assistance of external actuarial advice. The key assumptions impacting the valuations are the discount rate, salary rate of inflation and mortality rates. Refer to Note 13 for further details about the Group’s defined benefit pension plan costs and obligations. |
Earnings per share | Basic earnings per share is calculated by dividing profit after taxes by the weighted average number of shares in issue and outstanding during the period. Diluted earnings per share is calculated in a similar manner, but includes the effect of dilutive securities, principally share options, restricted stock units and performance share units. Share-based payment awards that are contingently issuable upon the achievement of specified market and/or performance conditions are included in the diluted earnings per share calculation based on the number of shares that would be issuable if the end of the period was the end of the contingency period. |
Intangible assets and goodwill | Inventories are valued at the lower of cost or net realisable value and cost is determined using the first-in, first-out (FIFO) method. Inventories consist of raw materials, supplies (primarily including concentrate, other ingredients and packaging) and finished goods, which also include direct labour, indirect production and overhead costs. Cost includes all costs incurred to bring inventories to their present location and condition. Spare parts are recorded as assets at the time of purchase and are expensed as utilised. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to complete and sell the inventory. |
New accounting standards | IFRS 15 - Revenue recognition and deductions from revenue (IFRS 15) The Group derives its revenues by making, selling and distributing ready to drink beverages. The revenue from the sale of our products is recognised at the point in time at which control passes to a customer, typically when products are delivered to a customer. A receivable is recognised by the Group at the point in time at which the right to consideration becomes unconditional. Therefore, the adoption of IFRS 15 on 1 January 2018 did not have an impact on the manner in which the Group recognised revenue. The Group also examined the terms of the various promotional programmes under which rebates, refunds, price concessions or similar items can be earned by customers for attaining agreed upon sales levels or for participating in specific marketing programmes. Those promotional programmes do not give rise to a separate performance obligation. Where the consideration the Group is entitled to varies because of such programmes, it is deemed to be variable consideration. The related accruals are recognised as a deduction from revenue and are not considered distinct from the sale of products to the customer. Variable consideration is only included to the extent that it is highly probable that the inclusion will not result in a significant revenue reversal in the future normal commercial terms. Therefore, the variable consideration and classification requirements of IFRS 15 did not have any impact in the Group’s consolidated financial statements. Financing elements are not deemed present in our contracts with customers as the sales are made with credit terms not exceeding normal commercial terms. Taxes on sugared soft drinks, excise taxes and taxes on packaging are recorded on a gross basis (i.e. included in revenue) where the Group is the principal in the arrangement. Value added taxes are recorded on a net basis (i.e. excluded from revenue). The Group assesses these taxes and duties on a jurisdiction by jurisdiction basis to conclude on the appropriate accounting treatment. IFRS 9 - Financial Instruments (IFRS 9) IFRS 9 has been developed by the International Accounting Standards Board (IASB) to replace IAS 39 Financial Instruments: Recognition and Measurement (IAS 39). IFRS 9 is effective for annual periods beginning on or after 1 January 2018 and was applied prospectively. Classification and measurement As part of the IFRS 9 transition, there was no material change in the measurement or classification of assets or liabilities in the Group’s consolidated financial statements. Impairment of financial assets The expected credit loss model required under IFRS 9 primarily impacts the Group’s trade receivables. The simplified approach permitted under IFRS 9 was applied across the Group to measure expected credit losses using a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. This approach is substantially similar to the reserving methodology applied under IAS 39 and the impact was insignificant. Hedge accounting The hedge principles under IFRS 9 align more closely with the Group’s financial risk management as described in Note 22. Therefore more hedge relationships during 2018 were eligible for hedge accounting upon the adoption of IFRS 9. Other amendments and interpretations The Group has also adopted the Amendments to IFRS 2, “Classification and Measurement of Share-based Payment Transactions” which did not have an impact on the consolidated financial statements. |
GENERAL INFORMATION AND BASIS_3
GENERAL INFORMATION AND BASIS OF PREPARATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Corporate Information And Statement of IFRS Compliance [Abstract] | |
Number of selling days by quarter | The following table summarises the number of selling days by quarter for the years ended 31 December 2018 , 31 December 2017 and 31 December 2016 (based on a standard five-day selling week): First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2018 65 65 65 66 261 2017 65 65 65 65 260 2016 66 65 65 65 261 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Operating Segments [Abstract] | |
Disclosure of geographical segments | The following table summarises non-current assets, other than financial instruments and deferred tax assets by geography: 31 December 2018 31 December 2017 € million € million Spain/Portugal/Andorra (A) 6,873 6,561 Germany 3,160 3,176 Great Britain 2,441 2,395 France/Monaco 890 876 Belgium/Luxembourg 637 612 Netherlands 440 429 Sweden 404 421 Norway 259 267 Iceland 37 41 Other unallocated 45 44 Total 15,186 14,822 (A) Spain/Portugal/Andorra is also referred to as Iberia. The following table summarises revenue from external customers by geography, which is based on the origin of the sale: Year ended 31 December 2018 31 December 2017 31 December 2016 Revenue: € million € million € million Spain/Portugal/Andorra (A) 2,670 2,706 1,721 Germany 2,335 2,218 1,335 Great Britain 2,280 2,026 2,076 France/Monaco 1,775 1,803 1,791 Belgium/Luxembourg 983 919 909 Netherlands 580 526 505 Norway 439 416 408 Sweden 365 353 350 Iceland 91 95 38 Total 11,518 11,062 9,133 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [abstract] | |
Earnings per share | The following table summarises basic and diluted earnings per share calculations for the years presented: Year ended 31 December 2018 31 December 2017 31 December 2016 Profit after taxes attributable to equity shareholders (€ million) 909 688 549 Basic weighted average number of shares in issue (A) (million) 484 484 380 Effect of dilutive potential shares (B) (million) 4 5 5 Diluted weighted average number of shares in issue (A) (million) 488 489 385 Basic earnings per share (€) 1.88 1.42 1.45 Diluted earnings per share (€) 1.86 1.41 1.42 (A) The increase of the basic and diluted weighted average number of shares in issue in 2017 is due to the Merger transaction and further described in Note 14 . As at 31 December 2018 and at 31 December 2017 , the Group had 474,920,066 shares and 484,586,428 shares, respectively in issue and outstanding. (B) For the year ended 31 December 2018 , there were no outstanding options to purchase shares excluded from the diluted earnings per share calculation. For the years ended 31 December 2017 and 31 December 2016 , outstanding options to purchase 1.2 million shares and 1.2 million shares, respectively, were excluded from the diluted earnings per share calculation because the effect of including these options in the computation would have been anti-dilutive. The dilutive impact of the remaining options outstanding and unvested restricted stock units was included in the effect of dilutive securities. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Summary of carrying amounts of intangible assets and goodwill | The following table summarises the movements in the carrying amounts of intangible assets and goodwill for the periods presented: Franchise intangible Software Customer relationships Assets under construction Total intangibles Goodwill Cost: € million € million € million € million € million € million As at 31 December 2016 8,003 277 193 3 8,476 2,427 Additions — 26 — 10 36 — Disposals — (5 ) — — (5 ) — Currency translation adjustments (73 ) (14 ) (1 ) — (88 ) (5 ) Acquisition accounting adjustments (A) 179 (17 ) (30 ) (3 ) 129 98 As at 31 December 2017 8,109 267 162 10 8,548 2,520 Additions — 32 — 43 75 — Disposals — (4 ) — — (4 ) — Transfers and reclassifications — 1 — (1 ) — — Currency translation adjustments (25 ) 4 — — (21 ) (2 ) As at 31 December 2018 8,084 300 162 52 8,598 2,518 Accumulated amortisation: As at 31 December 2016 — (121 ) (11 ) — (132 ) — Amortisation expense — (38 ) (9 ) — (47 ) — Disposals — 5 — — 5 — Currency translation adjustments — 9 1 — 10 — As at 31 December 2017 — (145 ) (19 ) — (164 ) — Amortisation expense — (43 ) (8 ) — (51 ) — Disposals — 3 — — 3 — Currency translation adjustments — (2 ) — — (2 ) — As at 31 December 2018 — (187 ) (27 ) — (214 ) — Net book value: As at 31 December 2016 8,003 156 182 3 8,344 2,427 As at 31 December 2017 8,109 122 143 10 8,384 2,520 As at 31 December 2018 8,084 113 135 52 8,384 2,518 (A) The fair values of the assets and liabilities acquired as part of the Merger were provisional as at 31 December 2016 due to the complexity of the acquired businesses. During 2017, the Group finalised the valuation process and adjustments were recorded based on new information obtained about facts and circumstances that existed at the date of Merger. Management concluded that the changes in the fair values from the provisional amounts disclosed in the 2016 consolidated financial statements were not material to the Group’s 2016 consolidated financial statements taken as whole. |
Disclosure of information for cash-generating units | 31 December 2018 31 December 2017 Franchise intangible Goodwill Franchise intangible Goodwill Cash-generating unit € million € million € million € million Iberia 4,289 1,275 4,289 1,275 Great Britain 1,632 200 1,647 200 Germany 1,060 748 1,060 748 31 December 2018 31 December 2017 Pre-tax discount rate Cash-generating unit % % Iberia 10 11 Great Britain 10 10 Germany 9 10 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | For all property, plant and equipment, other than land, depreciation is recorded using the straight-line method over the respective estimated useful lives as follows: Useful life (years) Category Low High Building and improvements 10 40 Machinery, equipment and containers 3 20 Cold-drink equipment 5 13 Vehicle fleet 3 12 Furniture and office equipment 4 10 The following table summarises the movement in net book value for property, plant and equipment for the periods presented: Land Building and improvements Machinery, equipment and containers Cold drink equipment Vehicle fleet Furniture and office equipment Assets under construction Total € million € million € million € million € million € million € million € million Cost: As at 31 December 2016 324 1,512 2,350 1,186 124 165 125 5,786 Additions 1 38 155 168 8 18 129 517 Disposals (3 ) (8 ) (116 ) (82 ) (2 ) (13 ) — (224 ) Transfers and reclassifications — 5 68 (1 ) 1 1 (74 ) — Currency translation adjustments (5 ) (16 ) (24 ) (20 ) (1 ) (6 ) — (72 ) Acquisition accounting adjustments and reclassifications (A) (5 ) (78 ) (5 ) (48 ) (12 ) 12 — (136 ) As at 31 December 2017 312 1,453 2,428 1,203 118 177 180 5,871 Additions 9 30 129 104 12 14 242 540 Disposals (3 ) (10 ) (73 ) (87 ) (1 ) (12 ) — (186 ) Transfers and reclassifications — 22 57 1 — 3 (83 ) — Currency translation adjustments (1 ) (7 ) (8 ) (7 ) — 1 — (22 ) As at 31 December 2018 317 1,488 2,533 1,214 129 183 339 6,203 Accumulated depreciation: As at 31 December 2016 — (363 ) (690 ) (598 ) (49 ) (93 ) — (1,793 ) Depreciation expense — (64 ) (223 ) (119 ) (17 ) (20 ) — (443 ) Disposals — 3 85 75 2 12 — 177 Currency translation adjustments — 6 12 13 1 6 — 38 Acquisition accounting adjustments and reclassifications (A) — 6 (4 ) (3 ) (4 ) (8 ) — (13 ) As at 31 December 2017 — (412 ) (820 ) (632 ) (67 ) (103 ) — (2,034 ) Depreciation expense — (60 ) (232 ) (127 ) (18 ) (24 ) — (461 ) Disposals — 2 70 85 1 12 — 170 Currency translation adjustments — 3 4 4 — (1 ) — 10 As at 31 December 2018 — (467 ) (978 ) (670 ) (84 ) (116 ) — (2,315 ) Net book value: As at 31 December 2016 324 1,149 1,660 588 75 72 125 3,993 As at 31 December 2017 312 1,041 1,608 571 51 74 180 3,837 As at 31 December 2018 317 1,021 1,555 544 45 67 339 3,888 (A) The fair values of the assets and liabilities acquired as part of the Merger were provisional as at 31 December 2016 due to the complexity of the acquired businesses. During 2017, the Group finalised the valuation process and adjustments were recorded based on new information obtained about facts and circumstances that existed at the date of Merger. Management concluded that the changes in the fair values from the provisional amounts disclosed in the 2016 consolidated financial statements were not material to the Group’s 2016 consolidated financial statements taken as whole. In addition, certain reclassifications between cost and accumulated depreciation were made. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventories [Abstract] | |
Schedule of detailed information about inventories | The following table summarises the inventory outstanding in the consolidated statement of financial position as at the dates presented: 31 December 2018 31 December 2017 € million € million Finished goods 378 324 Raw materials and supplies 234 223 Spare parts 81 103 Total inventories 693 650 |
TRADE ACCOUNTS RECEIVABLE (Tabl
TRADE ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade and other receivables [abstract] | |
Trade and other receivables | The following table summarises the trade accounts receivable outstanding in the consolidated statement of financial position as at the dates presented: 31 December 2018 31 December 2017 € million € million Trade accounts receivable, gross 1,671 1,746 Allowance for doubtful accounts (16 ) (14 ) Total trade accounts receivable 1,655 1,732 |
Disclosure of financial assets that are either past due or impaired | The following table summarises the aging of trade accounts receivable, net of allowance for doubtful accounts in the consolidated statement of financial position as at the dates presented: 31 December 2018 31 December 2017 € million € million Not past due 1,483 1,561 Past due 1 - 30 days 112 93 Past due 31 - 60 days 8 44 Past due 61 - 90 days 11 8 Past due 91 - 120 days 11 10 Past due 121+ days 30 16 Total 1,655 1,732 |
Disclosure of allowance for doubtful accounts | The following table summarises the change in the allowance for doubtful accounts for the periods presented: Allowance for doubtful accounts € million As at 31 December 2016 (14 ) Provision for impairment recognised during the year (4 ) Receivables written off during the year as uncollectible 4 As at 31 December 2017 (14 ) Provision for impairment recognised during the year (4 ) Receivables written off during the year as uncollectible 2 As at 31 December 2018 (16 ) |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Cash and Cash Equivalents | The following table summarises the cash and cash equivalents outstanding in the consolidated statement of financial position as at the dates presented: 31 December 2018 31 December 2017 € million € million Cash at banks and on hand 279 304 Short-term deposits and securities 30 56 Total cash and cash equivalents 309 360 Cash and cash equivalents are held in the following currencies as at the dates presented: 31 December 2018 31 December 2017 € million € million Euro 185 248 US dollar 6 27 British pound 33 30 Norwegian krone 26 34 Swedish krona 44 8 Other 15 13 Total cash and cash equivalents 309 360 |
FAIR VALUES (Tables)
FAIR VALUES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurement [Abstract] | |
Disclosure of borrowings | The following table summarises the book value and fair value of the Group’s borrowings as at the dates presented: 31 December 2018 31 December 2017 € million € million Fair value of borrowings 5,739 5,953 Book value of borrowings (Note 11) 5,618 5,748 |
Disclosure of fair value measurement of liabilities | The following table summarises the fair value of the assets and liabilities as at the dates presented: 31 December 2018 31 December 2017 € million € million Assets at fair value: Derivatives (Note 10) 15 22 Liabilities at fair value: Derivatives (Note 10) 71 94 |
HEDGING ACTIVITIES (Tables)
HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about hedging assets | The following table summarises the fair value of the assets and liabilities related to derivative financial instruments and the respective line items in which they were recorded in the consolidated statement of financial position as at the dates presented. All derivative instruments are classified as Level 2 within the fair value hierarchy. Discussion of the Group’s other financial assets and liabilities is contained elsewhere in these financial statements. Refer to Note 7 for trade accounts receivable, Note 12 for trade and other payables, Note 11 for borrowings and Note 17 for amounts receivable and payable with related parties. 31 December 2018 31 December 2017 Hedging instrument Location – statement of financial position € million € million Assets: Derivatives designated as hedging instruments: Foreign currency contracts Non-current derivative assets 1 1 Foreign currency contracts Current derivative assets 9 12 Commodity Contracts Current derivative assets 3 — Total 13 13 Derivatives not designated as hedging instruments: Commodity contracts Non-current derivative assets 1 1 Commodity contracts Current derivative assets 1 8 Total 2 9 Total Assets 15 22 Liabilities: Derivatives designated as hedging instruments: Foreign currency contracts Non-current derivative liabilities 49 93 Commodity Contracts Non-current derivative liabilities 1 — Foreign currency contracts Current derivative liabilities 1 — Commodity contracts Current derivative liabilities 17 — Total 68 93 Derivatives not designated as hedging instruments: Commodity contracts Non-current derivative liabilities 1 — Commodity contracts Current derivative liabilities 2 1 Total 3 1 Total Liabilities 71 94 |
Disclosure of detailed information about hedging liabilities | The following table summarises the fair value of the assets and liabilities related to derivative financial instruments and the respective line items in which they were recorded in the consolidated statement of financial position as at the dates presented. All derivative instruments are classified as Level 2 within the fair value hierarchy. Discussion of the Group’s other financial assets and liabilities is contained elsewhere in these financial statements. Refer to Note 7 for trade accounts receivable, Note 12 for trade and other payables, Note 11 for borrowings and Note 17 for amounts receivable and payable with related parties. 31 December 2018 31 December 2017 Hedging instrument Location – statement of financial position € million € million Assets: Derivatives designated as hedging instruments: Foreign currency contracts Non-current derivative assets 1 1 Foreign currency contracts Current derivative assets 9 12 Commodity Contracts Current derivative assets 3 — Total 13 13 Derivatives not designated as hedging instruments: Commodity contracts Non-current derivative assets 1 1 Commodity contracts Current derivative assets 1 8 Total 2 9 Total Assets 15 22 Liabilities: Derivatives designated as hedging instruments: Foreign currency contracts Non-current derivative liabilities 49 93 Commodity Contracts Non-current derivative liabilities 1 — Foreign currency contracts Current derivative liabilities 1 — Commodity contracts Current derivative liabilities 17 — Total 68 93 Derivatives not designated as hedging instruments: Commodity contracts Non-current derivative liabilities 1 — Commodity contracts Current derivative liabilities 2 1 Total 3 1 Total Liabilities 71 94 |
Disclosure of detailed information about hedging instruments | The following table summarises the Group’s outstanding cash flow hedges by risk category as at the dates presented (all contracts denominated in a foreign currency have been converted into euros using the respective year end spot rate): Notional maturity profile Total Less than one year 1 to 3 years 3 to 5 years Cash flow hedges € million € million € million € million Foreign currency 1,221 236 22 963 As at 31 December 2016 1,221 236 22 963 Foreign currency 1,214 196 526 492 As at 31 December 2017 1,214 196 526 492 Foreign currency 1,255 227 1,028 — Commodity 237 212 25 — As at 31 December 2018 1,492 439 1,053 — |
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting | The following table summarises the net of tax effect for cash flow hedges that settled for the periods presented within the consolidated income statement : Amount of gain (loss) reclassified from the hedging reserve into profit 31 December 2018 31 December 2017 31 December 2016 Cash flow hedging instruments Location – income statement € million € million € million Foreign currency contracts Cost of sales 4 7 5 Foreign currency contracts Selling and distribution expenses — — (1 ) Foreign currency contracts (A) Non-operating items 43 (123 ) 49 Total 47 (116 ) 53 (A) The gain/(loss) recognised on these currency contracts is offset by the gain/(loss) recognised on the remeasurement of the underlying debt instruments; therefore, there is a minimal consolidated net effect in non-operating items on the consolidated income statement . |
Disclosure of gains (losses) recognized from non-designated derivative financial instruments | The following table summarises the gains (losses) recognised from non-designated derivative financial instruments in the consolidated income statement for the years presented: 31 December 2018 31 December 2017 31 December 2016 Non-designated hedging instruments Location – income statement € million € million € million Commodity contracts Cost of sales 1 20 8 Commodity contracts Selling and distribution expenses — (2 ) 10 Foreign currency contracts (A) Non-operating items (4 ) 13 17 Total (3 ) 31 35 (A) The gain (loss) recognised on these currency contracts is offset by the gain (loss) recognised on the remeasurement of the underlying hedged items; therefore, there is a minimal consolidated net effect in non-operating items on the consolidated income statement |
BORROWINGS AND FINANCE LEASES (
BORROWINGS AND FINANCE LEASES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Disclosure of borrowings | The following table summarises the carrying value of the Group’s borrowings as at the dates presented: 31 December 2018 31 December 2017 € million € million Non-current: €350 million 2.00% Notes 2019 (A) — 348 US$525 million 3.50% Notes 2020 456 436 US$250 million 3.25% Notes 2021 216 206 US$300 million 4.50% Notes 2021 261 249 €350 million Floating Rate Note 2021 (B) 350 351 €700 million 0.75% Notes 2022 (C) 697 697 €350 million 2.63% Notes 2023 348 348 €500 million 1.13% Notes 2024 (C) 495 495 €350 million 2.38% Notes 2025 346 347 €250 million 2.75% Notes 2026 248 248 €500 million 1.75% Notes 2028 (C) 493 492 €400 million 1.50% Notes 2027 (D) 395 — €500 million 1.88% Notes 2030 495 496 Term loan 2018-2021 (E) 274 698 Finance lease obligations (F) 53 63 Total non-current borrowings 5,127 5,474 Current: €350 million 2.00% Notes 2019 (A) 349 — EUR commercial paper (G) 120 250 Finance lease obligations (F) 22 24 Total current borrowings 491 274 (A) In December 2018, the €350 million 2.0% Notes due 2019 were reclassified from non-current to current borrowings. (B) In November 2017, the Group issued €350 million floating-rate notes due 2021. (C) To finance the return of capital to CCE shareholders in connection with the Merger, the Group issued €2.2 billion Eurobond notes due between November 2017 and May 2028 . In December 2017, €500 million floating-rate notes matured and were paid in full. (D) In November 2018, the Group issued €400 million , 1.50% interest rate notes due 2027. (E) To finance the return of capital to CCE shareholders in connection with the Merger, the Group obtained a €1.0 billion , floating rate bank term loan with annual payments due each May beginning in 2018 until 2021 . In September 2017, €200 million of the term loan due in 2018 and €100 million of the term loan due in 2021 were repaid prior to maturity. In July 2018, €100 million due in 2019 were repaid prior to maturity. In September 2018, €100 million due in 2019 and €50 million due in 2020 were repaid prior to maturity. In November 2018, €100 million due in 2020 were repaid prior to maturity. In December 2018, €75 million due in 2020 were repaid prior to maturity. As at 31 December 2018, €275 million of the term loan remains outstanding with annual repayments due between 2020 and 2021. (F) These amounts represent the present values of the Group’s minimum finance lease obligations. (G) As of 31 December 2018, the Group had €120 million of euro denominated commercial paper outstanding, due January 2019. |
Disclosure of future maturity of finance lease obligations | The following table summarises the maturity of the Group’s finance lease obligations as at the dates presented: 31 December 2018 31 December 2017 Finance lease maturities € million € million Within one year 22 24 After one year but not more than five years 39 46 More than five years 22 26 Total minimum lease payments 83 96 Amounts representing interest (A) (8 ) (9 ) Present value of minimum lease payments 75 87 (A) Amounts representing interest related to finance lease commitments are not significant for any of the individual time periods presented above. |
Disclosure of reconciliation of liabilities arising from financing activities | The following table provides a reconciliation of movements of liabilities to cash flows arising from financing activities: Current portion of borrowings Borrowings, less current portion Total € million € million € million As at 31 December 2016 875 5,562 6,437 Changes from financing cash flows Proceeds from third party borrowings, net of issuance costs — — 350 350 Changes in short-term borrowings 250 — 250 Repayments on third party borrowings (850 ) — (310 ) (1,160 ) Repayments on third party borrowings; finance leases (1 ) (19 ) (20 ) Capitalised discount/premium — 2 2 Other non-cash changes Amortisation of discount, premium and issue costs — 8 8 Finance lease additions and other — 5 5 Currency translation — (124 ) (124 ) Total changes (601 ) (88 ) (689 ) As at 31 December 2017 274 5,474 5,748 Changes from financing cash flows Proceeds from third party borrowings, net of issuance costs — — 398 398 Changes in short-term borrowings (131 ) — (131 ) Repayments on third party borrowings — — (426 ) (426 ) Repayments on third party borrowings; finance leases (18 ) — (18 ) Capitalised discount/premium — — (2 ) (2 ) Other financing activities — (8 ) (8 ) Other non-cash changes Amortisation of discount, premium and issue costs — 8 8 Finance lease additions and other 1 5 6 Currency translation 1 42 43 Reclassifications 364 (364 ) — Total changes 217 (347 ) (130 ) As at 31 December 2018 491 5,127 5,618 |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade and other payables | The following table summarises trade and other payables as at the dates presented: 31 December 2018 31 December 2017 € million € million Trade accounts payable 1,105 1,057 Accrued customer marketing costs 753 648 Accrued deposits 282 266 Accrued compensation and benefits 269 249 Accrued taxes 273 167 Other accrued expenses 146 146 Total trade and other payables 2,828 2,533 |
POST-EMPLOYMENT BENEFITS (Table
POST-EMPLOYMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefits [Abstract] | |
Disclosure of net employee benefit liability | The following table summarises non-current employee benefit liabilities as at the dates presented: 31 December 2018 31 December 2017 € million € million Retirement benefit obligation 89 95 Other employee benefit liabilities 53 67 Total non-current employee benefit liabilities 142 162 |
Disclosure of expense recognized in consolidated income statement | The following table summarises the expense related to pension plans recognised in the consolidated income statement for the years presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Service cost 52 53 49 Past service cost — (3 ) — Net interest cost (income) 1 3 2 Administrative expenses 2 2 2 Total cost 55 55 53 |
Disclosure of changes in other comprehensive income | The following table summarises the changes in other comprehensive income related to our pension plans for the years presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Actuarial (gain)/loss on defined benefit obligation arising during the period (120 ) 30 248 Return on plan assets (greater)/less than discount rate 118 (121 ) (183 ) Net charge to other comprehensive income (2 ) (91 ) 65 |
Disclosure of net defined benefit obligation | The following table summarises the changes in the pension plan benefit obligation and the fair value of plan assets for the periods presented: 31 December 2018 31 December 2017 € million € million Reconciliation of benefit obligation: Benefit obligation at beginning of plan year 1,969 1,947 Service cost 52 53 Past service cost — (3 ) Interest costs on defined benefit obligation 42 43 Plan participants contribution 47 45 Actuarial loss/(gain) - experience (5 ) 5 Actuarial loss/(gain) - demographic assumptions (35 ) — Actuarial loss/(gain) - financial assumptions (80 ) 25 Benefit payments (110 ) (90 ) Administrative expenses 2 2 Currency translation adjustments (10 ) (50 ) Settlements — (8 ) Benefit obligation at end of plan year 1,872 1,969 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of plan year 1,898 1,779 Interest income on plan assets 41 40 Return on plan assets greater/(less) than discount rate (118 ) 121 Plan participants contributions 47 45 Employer contributions 56 58 Benefit payments (110 ) (90 ) Currency translation adjustment (10 ) (48 ) Settlements — (7 ) Fair value of plan assets at end of plan year 1,804 1,898 |
Disclosure of fair value of plan assets | The following tables summarise pension plan assets measured at fair value as at the dates presented: Total 31 December 2018 Investments quoted in active markets Unquoted investments € million € million € million Equity securities: (A) US equities 201 201 — Non-US equities 626 626 — Fixed-income securities: (B) Corporate bonds and notes 67 43 24 Government bonds 384 384 — Cash and other short-term investments (C) 7 7 — Other investments: Real estate funds (D) 293 27 266 Insurance contracts (E) 226 — 226 1,804 1,288 516 Total 31 December 2017 Investments quoted in active markets Unquoted investments € million € million € million Equity securities: (A) US equities 226 226 — Non-US equities 749 693 56 Fixed-income securities: (B) Corporate bonds and notes 60 34 26 Government bonds 409 387 22 Cash and other short-term investments (C) 10 5 5 Other investments: Real estate funds (D) 226 14 212 Insurance contracts (E) 218 — 218 1,898 1,359 539 (A) Equity securities are comprised of the following investment types: (1) ordinary shares; (2) preference shares; and (3) common trust funds and collective funds. Investments in ordinary and preference shares are valued using quoted market prices multiplied by the number of shares owned. Investments in common trust funds and collective funds are valued at the net asset value per share, which is calculated based on the underlying quoted investments market price, multiplied by the number of shares held as of the measurement date. (B) Investments other than those held in common trust funds and collective funds are valued utilising a market approach. The value of such assets is primarily sourced from broker quotes in active markets. Bonds are held mainly in the currency of the geography of the plan. (C) Cash and other short-term investments are valued at € 1.00 /unit, which approximates fair value. Amounts are generally invested in cash, actively managed common trust funds or interest bearing accounts. (D) Real estate funds, mainly related to the GB Scheme, are valued at the net asset value per share. For quoted funds, the calculation is based on the underlying quoted investments market price, multiplied by the number of shares held as of the measurement date. For unquoted funds, this is calculated using the most recent partnership financial reports, adjusted, as appropriate, for any lag between the date of the financial reports and the measurement date (as of 31 December 2018 , it is not probable that these investments will be sold at an amount other than net asset value). (E) Insurance contracts exactly match the amount and timing of certain benefits, therefore the fair value of these insurance policies is deemed to be the present value of the related obligations. The significant majority of these are reinsurance contracts relating to benefit arrangements in Germany. |
Disclosure of defined benefit plans | The following table summarises the retirement benefit status of pension plans as at the dates presented: 31 December 2018 31 December 2017 € million € million Net benefit status: Present value of obligation (1,872 ) (1,969 ) Fair value of assets 1,804 1,898 Net benefit status: (68 ) (71 ) Retirement benefit surplus 21 24 Retirement benefit obligation (89 ) (95 ) The following tables summarise the weighted average actuarial assumptions used to determine the benefit obligations of pension plans as at the dates presented: 31 December 2018 31 December 2017 Financial assumptions % % Discount rate 2.5 2.3 Rate of compensation increase 3.1 3.1 Rate of price inflation 2.9 2.9 Demographic assumptions (weighted average) (A) 31 December 2018 31 December 2017 Retiring at the end of the reporting period Male 21.3 21.4 Female 23.9 24.3 Retiring 15 years after the end of the reporting period Male 22.3 22.7 Female 25.0 25.6 (A) These assumptions translate into an average life expectancy in years, post retirement, for an employee retiring at age 65 . |
Disclosure of sensitivity analysis for actuarial assumptions | The following table summarises the sensitivity of the defined benefit obligation to changes in the weighted average principal assumptions for the periods presented: Change in assumption Impact on defined benefit obligation (%) Increase in assumption Decrease in assumption Principal assumptions 2018 2017 2018 2017 Discount rate 0.5 % (8.6 ) (9.1 ) 9.8 10.6 Rate of compensation increase 0.5 % 2.4 2.6 (2.2 ) (2.4 ) Rate of price inflation 0.5 % 8.1 8.9 (6.6 ) (7.8 ) Mortality rates 1 year 2.9 2.5 (3.0 ) (2.4 ) |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Disclosure of shares and share capital outstanding | |
Disclosure of other reserves within equity | The following table outlines the balances in other reserves (net of tax) as at the dates presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Cash flow hedge reserve (26 ) (12 ) (12 ) Net investment hedge reserve 197 197 170 Foreign currency translation adjustment reserve (723 ) (688 ) (577 ) Total other reserves (552 ) (503 ) (419 ) |
TOTAL OPERATING COSTS (Tables)
TOTAL OPERATING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Disclosure of detailed information about expenses | The following table outlines the significant cost items by nature within operating costs for the years presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Cost of inventory recognised as an expense 4,901 5,021 4,194 Write-down of inventories (Note 6) 23 25 28 Employee costs (A) 1,768 1,719 1,411 Distribution costs 637 595 514 Depreciation of property, plant and equipment, excluding restructuring 446 426 321 Amortisation of intangible assets (Note 4) 51 47 39 Out of period mark-to-market effects on undesignated derivatives 8 (6 ) (35 ) Merger related costs — 4 126 Restructuring charges, including accelerated depreciation (B) 274 235 286 31 December 2018 31 December 2017 31 December 2016 (A) Employee Costs € million € million € million Wages and salaries 1,360 1,317 1,059 Social security costs 290 290 234 Pension and other employee benefits 118 112 118 Total staff costs 1,768 1,719 1,411 Directors’ remuneration information is disclosed in the Directors’ Remuneration Report. The average number of persons employed by the Group (including Directors) for the periods presented were as follows: 2018 2017 2016 No. in thousands No. in thousands No. in thousands Commercial 7.7 7.7 6.1 Supply chain 13.1 13.5 10.8 Support functions 2.7 2.3 2.2 Total average staff employed 23.5 23.5 19.1 The average number of persons employed by the Group reflects only CCE employees from 1 January to 27 May 2016. From 28 May through to 31 December 2016, and for the full years 2017 and 2018, the average number reflects CCEP employees. 31 December 2018 31 December 2017 31 December 2016 (B) Restructuring € million € million € million Increase in provision for restructuring programmes (Note 20) 236 186 260 Amount of provision reversed unused (Note 20) (23 ) (22 ) (6 ) Accelerated depreciation and non-cash costs 22 33 24 Other cash costs (A) 39 38 8 Total 274 235 286 Audit and other fees charged in the income statement concerning the statutory auditor of the consolidated financial statements , Ernst & Young LLP, were as follows: 31 December 2018 31 December 2017 31 December 2016 € thousand € thousand € thousand Audit of parent company and consolidated financial statements (A) 2,401 2,383 4,932 Audit of the company’s subsidiaries 3,719 4,167 3,800 Total audit 6,120 6,550 8,732 Audit related assurance services (B) 976 1,187 1,512 Other assurance services 101 115 138 Total audit and audit-related assurance services 7,197 7,852 10,382 Taxation advisory services (C) — — 508 All other services (D) 1,180 90 3 Total non-audit or non-audit-related assurance services 1,180 90 511 Total audit and all other fees 8,377 7,942 10,893 (A) Fees in respect of the audit of the accounts of CCEP plc (and its predecessor CCE, Inc.), including the Group's consolidated financial statements . (B) Includes professional fees for interim reviews, reporting on internal financial controls, services related to the transaction entered into with CCE, TCCC, CCIP and CCEG, IFRS advisory services, issuance of comfort letters for debt issuances, certain accounting consultations and other attest engagements. (C) Includes fees for tax advisory services related to tax advice provided in conjunction with the Merger transaction and its related US tax implications and tax advisory services, including transfer pricing and VAT advisory work, in the Company’s subsidiaries. (D) |
FINANCE COSTS (Tables)
FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Disclosure Of Detailed Information About Financial Income Cost | The following table summarises net finance costs for the years presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Interest income (A) 47 48 31 Interest expense on external debt (A) (134 ) (141 ) (145 ) Other finance costs (B) (6 ) (7 ) (9 ) Total finance costs (140 ) (148 ) (154 ) Total finance costs, net (93 ) (100 ) (123 ) (A) Includes interest income and expense amounts, as applicable, on cross currency swaps used to hedge USD debt. Interest swap income amounts to €34 million , €36 million and €23 million for 2018 , 2017 and 2016 , respectively. Refer to Note 10 for further details. (B) Other finance costs principally include amortisation of the discount on external debt and interest expense on finance leases. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | The following table summarises the transactions with TCCC that directly impacted the consolidated income statement for the years presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Amounts affecting revenue (A) 59 61 44 Amounts affecting cost of sales (B) (2,860 ) (2,829 ) (2,227 ) Amounts affecting operating expenses (C) (18 ) (1 ) 1 Total net amount affecting the consolidated income statement (2,819 ) (2,769 ) (2,182 ) (A) Amounts principally relate to fountain syrup and packaged product sales. (B) Amounts principally relate to the purchase of concentrate, syrup, mineral water and juice, as well as funding for marketing programmes. (C) Amounts principally relate to certain costs associated with new product development initiatives. The following table summarises the transactions with TCCC that impacted the consolidated statement of financial position for the periods presented: 31 December 2018 31 December 2017 € million € million Amounts due from TCCC 101 71 Amounts payable to TCCC 166 162 The following table summarises the total remuneration paid or accrued during the reporting period related to key management personnel: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Salaries and other short-term employee benefits (A) 23 18 20 Post-employment benefits 1 1 1 Share-based payments 9 8 20 Termination benefits — — 10 Total 33 27 51 (A) Short-term employee benefits includes wages, salaries and social security contributions, paid annual leave and paid sick leave, paid bonuses and non-monetary benefits (such as medical care and cars). The Group did not have any loans with key management personnel and was not party to any other transactions with the key management personnel during the periods presented. The following table summarises the transactions with Cobega that directly impacted the consolidated income statement for the years presented: 31 December 2018 31 December 2017 31 December 2016 € million € million € million Amounts affecting revenue (A) 3 3 5 Amounts affecting cost of sales (B) (85 ) (80 ) (43 ) Amounts affecting operating expenses (C) (14 ) (16 ) (9 ) Total net amount affecting the consolidated income statement (96 ) (93 ) (47 ) (A) Amounts principally relate to packaged product sales. (B) Amounts principally relate to the purchase of concentrate, mineral water and packaging materials. (C) Amounts principally relate to certain costs associated with maintenance and repair services and rent. The following table summarises the transactions with Cobega that impacted the consolidated statement of financial position for the periods presented: 31 December 2018 31 December 2017 € million € million Amounts due from Cobega 6 4 Amounts payable to Cobega 25 16 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax [Abstract] | |
Disclosure of income expense | The following table summarises the major components of income tax expense for the periods presented. 31 December 2018 31 December 2017 31 December 2016 € million € million € million Current income tax: Current income tax charge 315 294 242 Adjustment in respect of current income tax from prior periods 4 — 24 Total current tax 319 294 266 Deferred tax: Relating to the origination and reversal of temporary differences 21 196 (56 ) Adjustment in respect of deferred income tax from prior periods (6 ) (3 ) 3 Relating to changes in tax rates or the imposition of new taxes (38 ) (16 ) (43 ) Total deferred tax (23 ) 177 (96 ) Income tax charge per the income statement 296 471 170 |
Disclosure of income tax relating to components of other comprehensive income | The following table summarises the taxes on items recognised in other comprehensive income and directly within equity for the periods presented. 31 December 2018 31 December 2017 31 December 2016 € million € million € million Taxes charged (credited) to OCI: Deferred tax on net gain/loss on revaluation of cash flow hedges (3 ) — (2 ) Deferred tax on net gain/loss on net investment hedges (41 ) (27 ) (22 ) Current tax on net gain/loss on net investment hedges 41 — — Deferred tax on net gain/loss on pension plan remeasurements — 18 (14 ) Total taxes charged (credited) to OCI (3 ) (9 ) (38 ) Taxes charged (credited) to equity: Deferred tax charge (credit): share based compensation 12 (12 ) (5 ) Current tax charge (credit): share based compensation (5 ) (2 ) — Total taxes charged (credited) to equity 7 (14 ) (5 ) |
Disclosure of effective income tax rate reconciliation | 31 December 2018 31 December 2017 31 December 2016 € million € million € million Accounting profit before tax from continuing operations 1,205 1,159 719 Tax expense at the UK statutory rate 229 223 144 Taxation of foreign operations, net (A) 81 86 (11 ) Non-deductible expense items for tax purposes (B) 30 7 13 Non-deductible transaction costs — — 10 Rate and law change benefit, net (C)(D)(E)(F)(G)(H)(I) (38 ) (16 ) (43 ) Deferred taxes not recognised (J) (4 ) 174 30 Adjustment in respect of prior periods (K) (2 ) (3 ) 27 Total provision for income taxes 296 471 170 (A) This reflects the impact, net of income tax contingencies, of having operations outside the UK, which are taxed at rates other than the statutory UK rate of 19% (2017: 19.25% , 2016: 20% ), with the benefit of some income being fully or partially exempt from income taxes due to various operating and financing activities. In 2017, the amount also includes a net €125 million charge related to the deemed repatriation of profits to the US under the Tax Cuts and Jobs Act of 2017 (the US Tax Act). (B) In 2018, includes a €24 million charge from a change in tax basis in the year as a result of the simplification of our debt and capital structure following the US Tax Act. (C) In 2018, the Basque territory enacted a law change which reduced the rate of tax from 28% in prior years, to 26% in 2018 and 24% from 2019. Additionally the rules relating to the use of tax credits changed. The Group recognised a deferred tax benefit of €23 million to reflect the impact of this change. (D) In December 2018, the Netherlands enacted an incremental corporate income tax rate reduction from 25% , ultimately reaching 20.5% , effective 1 January 2021. As a result, the Group recognised a deferred tax benefit of €9 million to reflect the impact of this change. (E) In June 2018, Sweden enacted an incremental corporate income tax rate reduction from 22% , ultimately reaching 20.6% , effective 1 January 2021. As a result, the Group recognised a deferred tax benefit of €5 million to reflect the impact of this change. (F) In December 2017, the US enacted a corporate income tax rate reduction from 35% to 21% effective 1 January 2018. In 2017, the Group recognised a deferred tax expense of €16 million to reflect the impact of this change. (G) During the second half of 2016, France enacted a corporate income tax rate reduction from 33.33% to 28% effective for tax years beginning on or after 1 January 2018. As a result, the Group recognised a deferred tax benefit of €28 million during the second half of 2016 to reflect the impact of this change. In December 2017, France enacted a further incremental corporate income tax rate reduction, ultimately reaching 25% effective 1 January 2022. In 2017, the Group recognised a deferred tax benefit of €11 million to reflect the impact of this change. (H) In December 2017, Belgium enacted an incremental corporate income tax rate reduction from 34% , ultimately reaching 25% , effective 1 January 2020. As a result, the Group recognised a deferred tax benefit of €20 million to reflect the impact of this change. (I) During the second half of 2016, the UK enacted a corporate income tax rate reduction of 1% effective 1 April 2020. As a result, the Group recognised a deferred tax benefit of €14 million during the second half of 2016 to reflect the impact of this change. (J) In 2017, deferred taxes not recognised include a €178 million charge related to the reduction of foreign tax credits as a result of the US Tax Act. (K) In 2018, the adjustment in respect of prior periods includes a charge of €11 million to true up the estimated impact of changes to the US tax system enacted under the US Tax Act. |
Disclosure of deferred tax liabilities and assets | The following table summarises the movements in the carrying amounts of deferred tax liabilities and assets by significant component during the period presented: Franchise and other intangible assets Property, plant and equipment Financial assets and liabilities Tax losses Employee and retiree benefit accruals Tax credits Other, net Total, net € million € million € million € million € million € million € million € million 31 December 2016 1,980 318 80 (72 ) (124 ) (258 ) 50 1,974 Amount charged/(credited) to income statement (excluding effect of tax rate changes) 2 (21 ) (12 ) 45 20 165 (6 ) 193 Effect of tax rate changes on income statement (33 ) (13 ) 3 8 14 — 5 (16 ) Amounts charged/(credited) directly to OCI (excluding effect of tax rate changes) — — — — 17 — — 17 Effect of tax rate changes on OCI — — (27 ) — 1 — — (26 ) Amount charged/(credited) to equity (excluding effect of tax rate changes) — — — — (20 ) — — (20 ) Effect of tax rate changes on equity — — — — 8 — — 8 Acquired through business combinations 63 (45 ) — — (2 ) 46 (7 ) 55 Balance sheet reclassifications (2 ) 2 — — — — — — Effect of movements in foreign exchange (13 ) (4 ) (13 ) 5 3 19 (1 ) (4 ) As at 31 December 2017 1,997 237 31 (14 ) (83 ) (28 ) 41 2,181 Amount charged/(credited) to income statement (excluding effect of tax rate changes) (3 ) (23 ) 28 10 (9 ) 11 1 15 Effect of tax rate changes on income statement (40 ) (1 ) — — — 4 (1 ) (38 ) Amounts charged/(credited) directly to OCI — — (44 ) — — — — (44 ) Amount charged/(credited) to equity — — — — 11 1 — 12 Effect of movements in foreign exchange (5 ) (1 ) — — — — — (6 ) As at 31 December 2018 1,949 212 15 (4 ) (81 ) (12 ) 41 2,120 |
SHARE-BASED PAYMENTS PLANS (Tab
SHARE-BASED PAYMENTS PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-Based Payment Arrangements [Abstract] | |
Disclosure of share option activity | The following table summarises our share option activity for the periods presented: 2018 2017 2016 Shares Average exercise price Shares Average exercise price Shares Average exercise price thousands US$ thousands US$ thousands US$ Outstanding at beginning of year 8,579 23.58 9,435 23.03 8,136 29.17 Granted — — — — — — Exercised (2,037 ) 14.16 (842 ) 17.48 (1,347 ) 14.61 Forfeited, expired or cancelled — — (14 ) 24.61 (12 ) 32.22 Adjustment for option conversion n/a n/a n/a n/a 2,658 37.05 Outstanding at end of year 6,542 26.51 8,579 23.58 9,435 23.03 Options exercisable at end of year 6,542 26.51 8,417 23.28 8,701 21.77 |
Disclosure of range of exercise prices of outstanding share options | The following table summarises the weighted average remaining life of options outstanding for the periods presented: 2018 2017 2016 Range of exercise prices Options outstanding Weighted average remaining life Options Weighted average remaining life Options Weighted US$ thousands years thousands years thousands years 5.00 to 15.00 713 0.84 1,987 1.37 2,532 2.09 15.01 to 25.00 2,459 2.94 2,882 3.98 3,060 5.01 25.01 to 40.00 3,370 5.84 3,710 6.85 3,843 7.83 6,542 4.21 8,579 4.62 9,435 5.37 |
Disclosure of weighted average grant-date fair value of units granted | The following table summarises the weighted average grant date fair values per unit: Restricted Stock Units 2018 2017 Grant date fair value - service conditions (US$) 41.62 38.95 Grant date fair value - service and performance conditions (US$) 41.76 37.78 |
PROVISIONS, CONTINGENCIES AND_2
PROVISIONS, CONTINGENCIES AND COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of provisions | The following table summarises the movement in each class of provision for the periods presented: Restructuring provision Decommissioning provision Other provisions (A) Total € million € million € million € million As at 31 December 2016 289 12 9 310 Charged/(credited) to profit or loss: Additional provisions recognised 186 1 9 196 Unused amounts reversed (22 ) — (3 ) (25 ) Utilised during the period (238 ) (1 ) (2 ) (241 ) Translation 1 1 — 2 As at 31 December 2017 216 13 13 242 Charged/(credited) to profit or loss: Additional provisions recognised 236 4 2 242 Unused amounts reversed (23 ) — — (23 ) Utilised during the period (206 ) (1 ) (2 ) (209 ) As at 31 December 2018 223 16 13 252 Non-current 99 16 4 119 Current 124 — 9 133 As at 31 December 2018 223 16 13 252 (A) Other provisions primarily relate to property tax assessment provisions and legal reserves and are not considered material to these financial statements. |
Disclosure of maturity analysis of operating lease payments | The following table summarises the future maturity of the Group’s operating lease obligations as at the dates presented: 31 December 2018 31 December 2017 Operating lease maturities € million € million Within one year 94 90 After one year but not more than five years 169 163 More than five years 37 37 Total minimum lease payments 300 290 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of other current assets | The following table summarises the Group’s other current assets as at the dates presented: 31 December 2018 31 December 2017 Other current assets € million € million Prepayments 47 45 VAT receivables 17 273 Miscellaneous receivables 114 124 Assets held for sale 15 10 Total other current assets 193 452 |
Summary of other non-current assets | The following table summarises the Group’s other non-current assets as at the dates presented: 31 December 2018 31 December 2017 Other non-current assets € million € million VAT receivables 318 — Retirement benefit surplus 21 24 Other 57 57 Total other non-current assets 396 81 |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Sensitivity analysis for types of market risk | The following table demonstrates the sensitivity of the Group’s profit before income taxes and pre-tax equity as a result of changes in the value of outstanding debt instruments due to reasonable movements in the US dollar against the euro, with all other variables held constant. Movements in foreign currencies related to the Group’s other financial instruments do not have a material impact on profit before income taxes or pre-tax equity. Change in currency rate € strengthens against US$ € weakens against US$ Effect on profit before tax and pre-tax equity % € million € million Year ended 31 December 2018 10 85 (93 ) Year ended 31 December 2017 10 81 (89 ) Year ended 31 December 2016 10 92 (101 ) |
Disclosure of maturity analysis for non-derivative financial liabilities | The amounts disclosed in the table are the contractual undiscounted cash flows: Total Less than 1 year 1 to 3 years 3 to 5 years More than 5 years Financial liabilities € million € million € million € million € million 31 December 2018 Trade accounts payable 2,327 2,327 — — — Amounts payable to related parties 191 191 — — — Borrowings 5,626 491 1,584 1,057 2,494 Derivatives 71 20 51 — — Total financial liabilities 8,215 3,029 1,635 1,057 2,494 31 December 2017 Trade accounts payable 2,282 2,282 — — — Amounts payable to related parties 178 178 — — — Borrowings 5,792 274 1,320 1,722 2,476 Derivatives 94 1 93 — — Total financial liabilities 8,346 2,735 1,413 1,722 2,476 |
Disclosure of maturity analysis for derivative financial liabilities | The amounts disclosed in the table are the contractual undiscounted cash flows: Total Less than 1 year 1 to 3 years 3 to 5 years More than 5 years Financial liabilities € million € million € million € million € million 31 December 2018 Trade accounts payable 2,327 2,327 — — — Amounts payable to related parties 191 191 — — — Borrowings 5,626 491 1,584 1,057 2,494 Derivatives 71 20 51 — — Total financial liabilities 8,215 3,029 1,635 1,057 2,494 31 December 2017 Trade accounts payable 2,282 2,282 — — — Amounts payable to related parties 178 178 — — — Borrowings 5,792 274 1,320 1,722 2,476 Derivatives 94 1 93 — — Total financial liabilities 8,346 2,735 1,413 1,722 2,476 |
GROUP COMPANIES (Tables)
GROUP COMPANIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interest In Other Entities [Abstract] | |
Disclosure of composition of group | Name Country of incorporation % equity interest Registered address Agua De La Vega Del Codorno, S.L.U. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) Aguas De Santolin, S.L.U. Spain 100% C/ Real, s/n 09246, Quintanaurria (Burgos) Aguas Del Maestrazgo, S.L.U. Spain 100% C/ Monasterio de las huelgas, 7, Pol.ind.Alcalde Caballero, 50014 (Zaragoza) Aguas Del Toscal, S.A.U. Spain 100% Ctra. de la Pasadilla, km. 3- 35250, ingenio (Gran Canaria) Aguas Vilas Del Turbon, S.L.U. Spain 100% C/ Monasterio de las huelgas, 7, Pol.ind.Alcalde Caballero, 50014 (Zaragoza) Amalgamated Beverages Great Britain Limited United Kingdom 100% (D) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ BBH Investment Ireland Limited Ireland 100% 6th Floor, 2 Grand Canal Square (Dublin 2) Bebidas Gaseosas Del Noroeste, S.L.U. Spain 100% Avda.Alcalde Alfonso Molina, s/n- 15007 (A Coruña) Beganet, S.L.U. Spain 100% Avda Paisos Catalans, 32 – 08950 (Esplugues de Llobregat) BH Holdings Lux Commandite SCS Luxembourg 100% (B) 2, Rue des Joncs, L-1818, Howald BH Holdings Luxembourg SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald BH Luxembourg SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald BH SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald Birtingahúsið ehf. Iceland 34.5% Laugavegur 174, 105, (Reykjavík) BL Bottling Holdings UK Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Bottling Great Britain Limited United Kingdom 100% (D) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Bottling Holdings (Luxembourg) SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald Bottling Holdings (Netherlands) B.V. Netherlands 100% Watermanweg 30, 3067 GG (Rotterdam) Bottling Holdings Europe Limited United Kingdom 100% (D)(E) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Bottling Holding France SAS France 100% 9, chemin de Bretagne, 92784 (Issy-les-Moulineaux) CC Digital GmbH Germany 50% Stralauer Allee 4, 10245 (Berlin) CC Erfrischungsgetränke Oldenburg Verwaltungs GmbH Germany 100% Sandkruger, Straße 234, 26133 (Oldenburg) CC Iberian Partners Gestion S.L. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) CC Verpackungsgesellschaft mit beschraenkter Haftung Germany 100% Schieferstraße 20 06126 Halle (Saale) CCEP Group Services Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ CCEP Holdings Norge AS Norway 100% Robsrudskogen 5, 1470 (Lørenskog) CCEP Holdings Sverige AB Sweden 100% Dryckesvägen 2 C, 136 87 (Haninge) CCEP Holdings UK Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ CCEP Ventures Europe Limited United Kingdom 100% (A) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ CCEP Ventures UK Limited United Kingdom 100% (A) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ CCIP Soporte, S.L.U. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) Classic Brand (Europe) Designated Activity Company Ireland 100% 4th Floor, 25-28 Adelaide Road, D02 RY98 (Dublin 2) Cobega Embotellador, S.L.U. Spain 100% Avda Paisos Catalans, 32 – 08950 (Esplugues de Llobregat) Coca-Cola European Partners Belgium SPRL Belgium 100% Chaussée de Mons 1424, 1070 (Brussels) Coca-Cola European Partners Deutschland GmbH Germany 100% (F) Stralauer Allee 4, 10245 (Berlin) Coca-Cola European Partners France SAS France 100% (G) 9, chemin de Bretagne, 92784 (Issy-les-Moulineaux) Coca-Cola European Partners Great Britain Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Coca-Cola European Partners Holdings Great Britain Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Coca-Cola European Partners Holdings US, Inc. United States 100% (A)(D) Corporation Trust Center, 1209 Orange Street, Wilmington 19801 (Delaware) Coca-Cola European Partners Iberia, S.L.U. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) Coca-Cola European Partners Ísland ehf. Iceland 100% Studlahals 1, 110 (Reykjavik) Coca-Cola European Partners Luxembourg SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald Coca-Cola European Partners Nederland B.V. Netherlands 100% Watermanweg 30, 3067 GG (Rotterdam) Coca-Cola European Partners Norge AS Norway 100% Robsrudskogen 5, 1470 (Lørenskog) Coca-Cola European Partners Pension Scheme Trustees Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Coca-Cola European Partners Portugal Unipessoal, LDA Portugal 100% Quinta da Salmoura - Cabanas, 2929- 509, Azeitão (Setúbal) Name Country of incorporation % equity interest Registered address Coca-Cola European Partners Services Bulgaria EOOD Bulgaria 100% 48, Sitnyakovo Blvd, Serdika Center, Office Building, floor 5, 1505 (Sofia) Coca-Cola European Partners Services Europe Limited United Kingdom 100% Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Coca-Cola European Partners Services SPRL Belgium 100% (C) Chaussée de Mons 1424, 1070 (Brussels) Coca-Cola European Partners Sverige AB Sweden 100% Dryckesvägen 2 C, 136 87 (Haninge) Coca-Cola European Partners US II, LLC United States 100% Corporation Trust Center, 1209 Orange Street, Wilmington 19801 (Delaware) Coca-Cola European Partners US, LLC United States 100% Corporation Trust Center, 1209 Orange Street, Wilmington 19801 (Delaware) Coca-Cola Immobilier SCI France 100% (G) 9, chemin de Bretagne, 92784 (Issy-les-Moulineaux) Coca-Cola Production SAS France 100% Zone d’entreprises de Bergues, Commune de Socx, 59380 (Bergues) Compañía Asturiana De Bebidas Gaseosas, S.L.U. Spain 100% C/ Nava, 18- 3ª (Granda) Siero - 33006 (Oviedo) Compañía Castellana De Bebidas Gaseosas, S.L. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) Compañía Levantina De Bebidas Gaseosas, S.L.U. Spain 100% Av. Real Monasterio de Sta. María de Poblet, 36, 46930 (Quart de Poblet) Compañía Norteña De Bebidas Gaseosas, S.L.U. Spain 100% C/ Ibaizábal, 57 – 48960 Galdakao (Bizkaia) Compañía Para La Comunicación De Bebidas Sin Alcohol, S.L.U. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) Conversia IT, S.L.U. Spain 100% C/ Ribera del loira, 20-22, 2ª Planta - 28042 (Madrid) Developed System Logistics, S.L.U. Spain 100% Av. Henry Ford, 25, Manzana 19, Complejo Pq. Ind. Juan Carlos I , 46220 Picassent (Valencia) GBH Investment Ireland Limited Ireland 100% 6th Floor, 2 Grand Canal Square (Dublin 2) GBH Luxembourg SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald GH Luxembourg SCS Luxembourg 100% (B) 2, Rue des Joncs, L-1818, Howald GR Bottling Holdings UK Limited United Kingdom 100% (A) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Herdt Verwaltungsgesellschaft mit beschränkter Haftung i.L Germany 100% Karl-Herdt-Weg 100, 63075 (Offenbach) Infineo Recyclage SAS France 49% (H) Sainte Marie la Blanche – 21200 (Dijon) Instelling voor Bedrijfspensioenvoorziening Coca-Cola European Partners Belgium/Coca-Cola European Partners Services – Bedienden-Arbeiders OFP Belgium 100% Bergensesteenweg 1424 – 1070 (Brussels) Instelling voor Bedrijfspensioenvoorziening Coca-Cola European Partners Belgium/Coca-Cola European Partners Services – Kaderleden OFP Belgium 100% Bergensesteenweg 1424 – 1070 (Brussels) Iparbal, 99 S.L. Spain 100% C/ Ibaizábal, 57 – 48960 Galdakao (Bizkaia) IPARSOFT, 2004 S.L. Spain 100% C/ Ibaizábal, 57 – 48960 Galdakao (Bizkaia) Kollex GmbH Germany 33.3% Torstraße 155, 10115 (Berlin) Lusobega, S.L. Spain 100% C/ Ibaizábal, 57 – 48960 Galdakao (Bizkaia) Madrid Ecoplatform, S.L.U. Spain 100% C/Pedro Lara, 8 Pq. Tecnológico de Leganes- 28919 (Leganes) Peña Umbria, S.L.U. Spain 100% Av. Real Monasterio de Sta. María de Poblet,36 – 46930 (Quart de Poblet) Refecon Águas S.A. Portugal 100% Quinta da Salmoura - Cabanas-2929- 509 Azeitão (Setúbal) Refrescos Envasados Del Sur, S.L.U. Spain 100% Autovía del Sur A-IV, km.528- 41309 La Rinconada (Sevilla) Refrige Sgps, S.A. Portugal 100% Quinta da Salmoura- Cabanas, 2929-509 (Azeitão) Roalba, S.L.U. Spain 100% C/ Ibaizábal, 57 – 48960 Galdakao (Bizkaia) Solares y Edificios Norteños, S.L.U. Spain 100% C/ Ibaizábal, 57 – 48960 Galdakao (Bizkaia) Svenska Brettbolaget AB Sweden 19.6% Greg Turegatan 9, 114 46, (Stockholm) WB Investment Ireland 2 Limited Ireland 100% 6th Floor, 2 Grand Canal Square (Dublin 2) WB Investment Ireland Limited Ireland 100% 6th Floor, 2 Grand Canal Square (Dublin 2) WBH Holdings Luxembourg SCS Luxembourg 100% 2, Rue des Joncs, L-1818, Howald WBH Luxembourg SARL Luxembourg 100% 2, Rue des Joncs, L-1818, Howald WIH UK Limited United Kingdom 100% (A) Pemberton House, Bakers Road, Uxbridge, UB8 1EZ Wir sind Coca-Cola Gesellschaft mit beschränkter Haftung Germany 100% Stralauer Allee 4, 10245 (Berlin) (A) 100% equity interest directly held by CCEP plc (B) Class A and B ordinary shares (C) Class A, B and C ordinary shares (D) Including preference shares issued to the Group (E) |
GENERAL INFORMATION AND BASIS_4
GENERAL INFORMATION AND BASIS OF PREPARATION (Details) - day | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 31, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Corporate Information And Statement of IFRS Compliance [Abstract] | |||||||||||||||
Number of selling days in period | 66 | 65 | 65 | 65 | 65 | 65 | 65 | 65 | 65 | 65 | 65 | 66 | 261 | 260 | 261 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) € in Millions | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | May 28, 2016$ / shares |
Disclosure of detailed information about business combination [line items] | |||
Goodwill | € | € 2,518 | € 2,520 | |
CCE | |||
Disclosure of detailed information about business combination [line items] | |||
Cash paid per acquiree share (in USD per share) | $ / shares | $ 14.50 |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Number of Share and Total Consideration Transferred (Details) | May 28, 2016€ / shares |
Disclosure of detailed information about business combination [line items] | |
Par value per share (in euro per share) | € 33.33 |
BUSINESS COMBINATIONS - Summa_2
BUSINESS COMBINATIONS - Summary of the Final Fair Value Acquisition Accounts Adjustments (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | ||
Goodwill | € 2,518 | € 2,520 |
SEGMENT INFORMATION - Segment
SEGMENT INFORMATION - Segment Revenue and Assets by Geography (Details) € in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016EUR (€) | Dec. 31, 2018EUR (€)segment | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Disclosure of geographical areas [line items] | ||||
Number of operating segments | segment | 1 | |||
Revenue | € 11,518 | € 11,062 | € 9,133 | |
Non-current assets other than financial instruments and deferred tax assets | 15,186 | 14,822 | ||
Spain/Portugal/Andorra | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 2,670 | 2,706 | 1,721 | |
Non-current assets other than financial instruments and deferred tax assets | 6,873 | 6,561 | ||
Germany | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 2,335 | 2,218 | 1,335 | |
Non-current assets other than financial instruments and deferred tax assets | 3,160 | 3,176 | ||
Great Britain | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 2,280 | 2,026 | 2,076 | |
Non-current assets other than financial instruments and deferred tax assets | 2,441 | 2,395 | ||
France/Monaco | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 1,775 | 1,803 | 1,791 | |
Non-current assets other than financial instruments and deferred tax assets | 890 | 876 | ||
Belgium/Luxembourg | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 983 | 919 | 909 | |
Non-current assets other than financial instruments and deferred tax assets | 637 | 612 | ||
Netherlands | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 580 | 526 | 505 | |
Non-current assets other than financial instruments and deferred tax assets | 440 | 429 | ||
Sweden | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 365 | 353 | 350 | |
Non-current assets other than financial instruments and deferred tax assets | 404 | 421 | ||
Norway | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 439 | 416 | € 408 | |
Non-current assets other than financial instruments and deferred tax assets | 259 | 267 | ||
Iceland | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | € 38 | 91 | 95 | |
Non-current assets other than financial instruments and deferred tax assets | 37 | 41 | ||
Other unallocated | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets other than financial instruments and deferred tax assets | € 45 | € 44 |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Basic and Diluted Earnings Per Ordinary Share (Details) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [abstract] | |||
Profit after taxes attributable to equity shareholders (€ million) | € 909 | € 688 | € 549 |
Basic weighted average number of ordinary shares in issue (million) (in shares) | 484,000,000 | 484,000,000 | 380,000,000 |
Effect of dilutive potential ordinary shares (million) (in shares) | 4,000,000 | 5,000,000 | 5,000,000 |
Diluted weighted average number of ordinary shares in issue (million) (in shares) | 488,000,000 | 489,000,000 | 385,000,000 |
Basic earnings per share (in EUR per share) | € 1.88 | € 1.42 | € 1.45 |
Diluted earnings per share (in EUR per share) | € 1.86 | € 1.41 | € 1.42 |
Number of shares issued and fully paid (in shares) | 474,920,066 | 484,586,428 | 483,076,396 |
Antidilutive options excluded from diluted earnings per share share (in shares) | 0 | 1,200,000 | 1,200,000 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Summary of the Carrying Amounts of Intangible Assets and Goodwill (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total intangibles | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | € 8,384 | € 8,344 | |
Balance at end of period | 8,384 | 8,384 | € 8,344 |
Total intangibles | Cost | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 8,548 | 8,476 | |
Additions | 75 | 36 | |
Disposals | 4 | (5) | |
Currency translation adjustments | (21) | (88) | |
Transfers and reclassifications | 0 | 129 | |
Balance at end of period | 8,598 | 8,548 | 8,476 |
Total intangibles | Accumulated amortisation | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | (164) | (132) | |
Amortisation expense | 51 | 47 | |
Disposals | (3) | (5) | |
Currency translation adjustments | (2) | 10 | |
Balance at end of period | (214) | (164) | (132) |
Franchise intangible | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 8,109 | 8,003 | |
Balance at end of period | 8,084 | 8,109 | 8,003 |
Franchise intangible | Cost | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 8,109 | 8,003 | |
Additions | 0 | 0 | |
Disposals | 0 | 0 | |
Currency translation adjustments | (25) | (73) | |
Transfers and reclassifications | 0 | 179 | |
Balance at end of period | 8,084 | 8,109 | 8,003 |
Franchise intangible | Accumulated amortisation | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 0 | 0 | |
Amortisation expense | 0 | 0 | |
Disposals | 0 | 0 | |
Currency translation adjustments | 0 | 0 | |
Balance at end of period | 0 | 0 | 0 |
Software | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 122 | 156 | |
Balance at end of period | 113 | 122 | 156 |
Software | Cost | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 267 | 277 | |
Additions | 32 | 26 | |
Disposals | (4) | (5) | |
Currency translation adjustments | 4 | (14) | |
Transfers and reclassifications | 1 | (17) | |
Balance at end of period | 300 | 267 | 277 |
Software | Accumulated amortisation | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | (145) | (121) | |
Amortisation expense | (43) | (38) | (33) |
Disposals | 3 | 5 | |
Currency translation adjustments | (2) | 9 | |
Balance at end of period | (187) | (145) | (121) |
Customer relationships | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 143 | 182 | |
Balance at end of period | 135 | 143 | 182 |
Customer relationships | Cost | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 162 | 193 | |
Additions | 0 | 0 | |
Disposals | 0 | 0 | |
Currency translation adjustments | 0 | (1) | |
Transfers and reclassifications | 0 | (30) | |
Balance at end of period | 162 | 162 | 193 |
Customer relationships | Accumulated amortisation | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | (19) | (11) | |
Amortisation expense | (8) | (9) | (6) |
Disposals | 0 | 0 | |
Currency translation adjustments | 0 | 1 | |
Balance at end of period | (27) | (19) | (11) |
Assets under construction | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 10 | 3 | |
Balance at end of period | 52 | 10 | 3 |
Assets under construction | Cost | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 10 | 3 | |
Additions | 43 | 10 | |
Disposals | 0 | 0 | |
Currency translation adjustments | 0 | 0 | |
Transfers and reclassifications | (1) | (3) | |
Balance at end of period | 52 | 10 | 3 |
Assets under construction | Accumulated amortisation | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 0 | 0 | |
Amortisation expense | 0 | 0 | |
Disposals | 0 | 0 | |
Currency translation adjustments | 0 | 0 | |
Balance at end of period | 0 | 0 | 0 |
Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 2,520 | 2,427 | |
Balance at end of period | 2,518 | 2,520 | 2,427 |
Goodwill | Cost | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 2,520 | 2,427 | |
Disposals | 0 | 0 | |
Currency translation adjustments | (2) | (5) | |
Transfers and reclassifications | 0 | 98 | |
Balance at end of period | 2,518 | 2,520 | 2,427 |
Goodwill | Accumulated amortisation | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Balance at beginning of period | 0 | 0 | |
Amortisation expense | 0 | 0 | |
Disposals | 0 | 0 | |
Currency translation adjustments | 0 | 0 | |
Balance at end of period | € 0 | € 0 | € 0 |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Software | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful lives of intangible assets other than goodwill | 5 years | ||
Intangible assets and goodwill | € 113 | € 122 | € 156 |
Customer relationships | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Useful lives of intangible assets other than goodwill | 20 years | ||
Intangible assets and goodwill | € 135 | 143 | 182 |
Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 2,518 | € 2,520 | 2,427 |
Nonsignificant cash-generating units | Franchise intangible | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 1,103 | ||
Nonsignificant cash-generating units | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 295 | ||
Nonsignificant cash-generating units | CCE, CCIP And CCEG | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | € 218 | ||
Germany CGU | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Headroom percentage | 60.00% | ||
Percent by which value assigned to discount rate must change in order to result in an impairment | 2.50% | ||
Percent by which value assigned to terminal growth rate must change in order to result in impairment | 3.50% | ||
Iberia CGU | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Headroom percentage | 20.00% | ||
Percent by which value assigned to discount rate must change in order to result in an impairment | 1.00% | ||
Percent by which value assigned to terminal growth rate must change in order to result in impairment | 1.50% | ||
High | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Terminal growth rate (or less) | 2.00% | ||
Franchise intangible | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Agreement term | 10 years | ||
Renewal term | 10 years | ||
Accumulated amortisation | Software | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Amortisation expense | € 43 | € 38 | 33 |
Intangible assets and goodwill | (187) | (145) | (121) |
Accumulated amortisation | Customer relationships | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Amortisation expense | 8 | 9 | 6 |
Intangible assets and goodwill | (27) | (19) | (11) |
Accumulated amortisation | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Amortisation expense | 0 | 0 | |
Intangible assets and goodwill | € 0 | € 0 | € 0 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Summary of Intangible Assets and Goodwill Attributable to Significant Cash-Generating Units (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Franchise intangible | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | € 8,084 | € 8,109 | € 8,003 |
Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 2,518 | 2,520 | € 2,427 |
Iberia | Franchise intangible | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 4,289 | 4,289 | |
Iberia | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 1,275 | 1,275 | |
Great Britain | Franchise intangible | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 1,632 | 1,647 | |
Great Britain | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 200 | 200 | |
Germany | Franchise intangible | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 1,060 | 1,060 | |
Germany | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | € 748 | € 748 |
INTANGIBLE ASSETS AND GOODWIL_5
INTANGIBLE ASSETS AND GOODWILL - Summary of Pre-tax Discount Rates Attributable to Significant Cash-Generating Units (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Iberia | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate applied to cash flow projections | 10.00% | 11.00% |
Great Britain | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate applied to cash flow projections | 10.00% | 10.00% |
Germany | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate applied to cash flow projections | 9.00% | 10.00% |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Summary of Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Low | Building and improvements | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 10 years |
Low | Machinery, equipment and containers | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 3 years |
Low | Cold-drink equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 5 years |
Low | Vehicle fleet | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 3 years |
Low | Furniture and office equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 4 years |
High | Building and improvements | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 40 years |
High | Machinery, equipment and containers | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 20 years |
High | Cold-drink equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 13 years |
High | Vehicle fleet | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 12 years |
High | Furniture and office equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives (years) | 10 years |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Summary of Movement (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | € 3,837 | € 3,993 |
Property, plant and equipment end of period | 3,888 | 3,837 |
Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 5,871 | 5,786 |
Additions | 540 | 517 |
Currency translation adjustments | (186) | (224) |
Acquisition accounting adjustments and reclassifications(A) | 0 | 0 |
Currency translation adjustments | (22) | (72) |
Acquisition accounting adjustments and reclassifications | (136) | |
Property, plant and equipment end of period | 6,203 | 5,871 |
Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | (2,034) | (1,793) |
Depreciation expense | (461) | (443) |
Currency translation adjustments | 170 | 177 |
Currency translation adjustments | 10 | 38 |
Acquisition accounting adjustments and reclassifications | (13) | |
Property, plant and equipment end of period | (2,315) | (2,034) |
Land | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 312 | 324 |
Property, plant and equipment end of period | 317 | 312 |
Land | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 312 | 324 |
Additions | 9 | 1 |
Currency translation adjustments | (3) | (3) |
Acquisition accounting adjustments and reclassifications(A) | 0 | 0 |
Currency translation adjustments | (1) | (5) |
Acquisition accounting adjustments and reclassifications | (5) | |
Property, plant and equipment end of period | 317 | 312 |
Land | Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 0 | 0 |
Depreciation expense | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Acquisition accounting adjustments and reclassifications | 0 | |
Property, plant and equipment end of period | 0 | 0 |
Building and improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 1,041 | 1,149 |
Property, plant and equipment end of period | 1,021 | 1,041 |
Building and improvements | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 1,453 | 1,512 |
Additions | 30 | 38 |
Currency translation adjustments | (10) | (8) |
Acquisition accounting adjustments and reclassifications(A) | 22 | 5 |
Currency translation adjustments | (7) | (16) |
Acquisition accounting adjustments and reclassifications | (78) | |
Property, plant and equipment end of period | 1,488 | 1,453 |
Building and improvements | Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | (412) | (363) |
Depreciation expense | (60) | (64) |
Currency translation adjustments | 2 | 3 |
Currency translation adjustments | 3 | 6 |
Acquisition accounting adjustments and reclassifications | 6 | |
Property, plant and equipment end of period | (467) | (412) |
Machinery, equipment and containers | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 1,608 | 1,660 |
Property, plant and equipment end of period | 1,555 | 1,608 |
Machinery, equipment and containers | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 2,428 | 2,350 |
Additions | 129 | 155 |
Currency translation adjustments | (73) | (116) |
Acquisition accounting adjustments and reclassifications(A) | 57 | 68 |
Currency translation adjustments | (8) | (24) |
Acquisition accounting adjustments and reclassifications | (5) | |
Property, plant and equipment end of period | 2,533 | 2,428 |
Machinery, equipment and containers | Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | (820) | (690) |
Depreciation expense | (232) | (223) |
Currency translation adjustments | 70 | 85 |
Currency translation adjustments | 4 | 12 |
Acquisition accounting adjustments and reclassifications | (4) | |
Property, plant and equipment end of period | (978) | (820) |
Cold-drink equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 571 | 588 |
Property, plant and equipment end of period | 544 | 571 |
Cold-drink equipment | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 1,203 | 1,186 |
Additions | 104 | 168 |
Currency translation adjustments | (87) | (82) |
Acquisition accounting adjustments and reclassifications(A) | 1 | (1) |
Currency translation adjustments | (7) | (20) |
Acquisition accounting adjustments and reclassifications | (48) | |
Property, plant and equipment end of period | 1,214 | 1,203 |
Cold-drink equipment | Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | (632) | (598) |
Depreciation expense | (127) | (119) |
Currency translation adjustments | 85 | 75 |
Currency translation adjustments | 4 | 13 |
Acquisition accounting adjustments and reclassifications | (3) | |
Property, plant and equipment end of period | (670) | (632) |
Vehicle fleet | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 51 | 75 |
Property, plant and equipment end of period | 45 | 51 |
Vehicle fleet | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 118 | 124 |
Additions | 12 | 8 |
Currency translation adjustments | (1) | (2) |
Acquisition accounting adjustments and reclassifications(A) | 0 | 1 |
Currency translation adjustments | 0 | (1) |
Acquisition accounting adjustments and reclassifications | (12) | |
Property, plant and equipment end of period | 129 | 118 |
Vehicle fleet | Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | (67) | (49) |
Depreciation expense | (18) | (17) |
Currency translation adjustments | 1 | 2 |
Currency translation adjustments | 0 | 1 |
Acquisition accounting adjustments and reclassifications | (4) | |
Property, plant and equipment end of period | (84) | (67) |
Furniture and office equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 74 | 72 |
Property, plant and equipment end of period | 67 | 74 |
Furniture and office equipment | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 177 | 165 |
Additions | 14 | 18 |
Currency translation adjustments | (12) | (13) |
Acquisition accounting adjustments and reclassifications(A) | 3 | 1 |
Currency translation adjustments | 1 | (6) |
Acquisition accounting adjustments and reclassifications | 12 | |
Property, plant and equipment end of period | 183 | 177 |
Furniture and office equipment | Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | (103) | (93) |
Depreciation expense | (24) | (20) |
Currency translation adjustments | 12 | 12 |
Currency translation adjustments | (1) | 6 |
Acquisition accounting adjustments and reclassifications | (8) | |
Property, plant and equipment end of period | (116) | (103) |
Assets under construction | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 180 | 125 |
Property, plant and equipment end of period | 339 | 180 |
Assets under construction | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 180 | 125 |
Additions | 242 | 129 |
Currency translation adjustments | 0 | 0 |
Acquisition accounting adjustments and reclassifications(A) | (83) | (74) |
Currency translation adjustments | 0 | 0 |
Acquisition accounting adjustments and reclassifications | 0 | |
Property, plant and equipment end of period | 339 | 180 |
Assets under construction | Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment beginning of period | 0 | 0 |
Depreciation expense | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Acquisition accounting adjustments and reclassifications | 0 | |
Property, plant and equipment end of period | € 0 | € 0 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | € 461 | € 443 | |
Buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Recognised finance lease as assets | 18 | 20 | |
Machinery, equipment and containers | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Recognised finance lease as assets | 6 | 8 | |
Machinery, equipment and containers | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | 232 | 223 | |
Vehicle fleet | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Recognised finance lease as assets | 39 | 43 | |
Vehicle fleet | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | 18 | 17 | |
Furniture and office equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Recognised finance lease as assets | 3 | 7 | |
Furniture and office equipment | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | 24 | 20 | |
Finance lease | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | € 16 | € 25 | € 13 |
INVENTORIES (Details)
INVENTORIES (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Inventories [Abstract] | |||
Finished goods | € 378 | € 324 | |
Raw materials and supplies | 234 | 223 | |
Spare parts | 81 | 103 | |
Total inventories | 693 | 650 | |
Write-down of inventories | € 23 | € 25 | € 28 |
TRADE ACCOUNTS RECEIVABLE - Sum
TRADE ACCOUNTS RECEIVABLE - Summary of Trade Accounts Receivable Outstanding (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Trade Receivables [Line Items] | ||
Total trade accounts receivable | € 1,655 | € 1,732 |
Trade accounts receivable, gross | ||
Disclosure Of Trade Receivables [Line Items] | ||
Total trade accounts receivable | 1,671 | 1,746 |
Allowance for doubtful accounts | ||
Disclosure Of Trade Receivables [Line Items] | ||
Total trade accounts receivable | € 16 | € 14 |
TRADE ACCOUNTS RECEIVABLE - S_2
TRADE ACCOUNTS RECEIVABLE - Summary of Aging of Trade Accounts Receivable, Net of Allowance for Doubtful Accounts (Details) - Trade receivables - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | € 1,655 | € 1,732 |
Not past due | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,483 | 1,561 |
Past due 1 - 30 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 112 | 93 |
Past due 31 - 60 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 8 | 44 |
Past due 61 - 90 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 11 | 8 |
Past due 91 - 120 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 11 | 10 |
Past due 121 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | € 30 | € 16 |
TRADE ACCOUNTS RECEIVABLE - S_3
TRADE ACCOUNTS RECEIVABLE - Summary of Allowance For Doubtful Accounts (Details) - Trade receivables - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in allowance account for credit losses of financial assets [abstract] | ||
Balance at beginning of period | € (14) | € (14) |
Provision for impairment recognised during the year | (4) | (4) |
Receivables written off during the year as uncollectible | 2 | 4 |
Balance at end of period | € (16) | € (14) |
CASH AND CASH EQUIVALENTS - Sum
CASH AND CASH EQUIVALENTS - Summary of Cash and Cash Equivalents Outstanding (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Subclassifications of assets, liabilities and equities [abstract] | ||||
Cash at banks and on hand | € 279 | € 304 | ||
Short-term deposits and securities | 30 | 56 | ||
Total cash and cash equivalents | € 309 | € 360 | € 386 | € 156 |
CASH AND CASH EQUIVALENTS - Cas
CASH AND CASH EQUIVALENTS - Cash and Cash Equivalents by Currency (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of Cash and Cash Equivalents by Currency [Line Items] | ||||
Cash and cash equivalents | € 309 | € 360 | € 386 | € 156 |
Euro | ||||
Disclosure of Cash and Cash Equivalents by Currency [Line Items] | ||||
Cash and cash equivalents | 185 | 248 | ||
US dollar | ||||
Disclosure of Cash and Cash Equivalents by Currency [Line Items] | ||||
Cash and cash equivalents | 6 | 27 | ||
British pound | ||||
Disclosure of Cash and Cash Equivalents by Currency [Line Items] | ||||
Cash and cash equivalents | 33 | 30 | ||
Norwegian krone | ||||
Disclosure of Cash and Cash Equivalents by Currency [Line Items] | ||||
Cash and cash equivalents | 26 | 34 | ||
Swedish krona | ||||
Disclosure of Cash and Cash Equivalents by Currency [Line Items] | ||||
Cash and cash equivalents | 44 | 8 | ||
Other | ||||
Disclosure of Cash and Cash Equivalents by Currency [Line Items] | ||||
Cash and cash equivalents | € 15 | € 13 |
FAIR VALUES - Summary of Disclo
FAIR VALUES - Summary of Disclosure of Borrowings (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Fair Value Measurement [Line Items] | ||
Borrowings | € 5,618 | € 5,748 |
Level 2 | Fair value | ||
Disclosure Of Fair Value Measurement [Line Items] | ||
Borrowings | € 5,739 | € 5,953 |
FAIR VALUES - Summary of the Fa
FAIR VALUES - Summary of the Fair Value of Assets and Liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets at fair value | € 18,216 | € 18,194 |
Liabilities at fair value | 11,652 | 11,509 |
Recurring | Level 2 | Derivatives | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets at fair value | 15 | 22 |
Derivatives | Recurring | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities at fair value | € 71 | € 94 |
HEDGING ACTIVITIES - Fair Value
HEDGING ACTIVITIES - Fair Value of Assets and Liabilities Related to Derivative Financial Instruments (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Derivatives designated as hedging instruments | € 13 | € 13 |
Derivatives not designated as hedging instruments | 2 | 9 |
Total Assets | 15 | 22 |
Liabilities: | ||
Derivatives designated as hedging instruments | 68 | 93 |
Derivatives not designated as hedging instruments | 3 | 1 |
Total Liabilities | 71 | 94 |
Commodity contracts | Non-current derivative assets | ||
Assets: | ||
Derivatives not designated as hedging instruments | 1 | 1 |
Commodity contracts | Current derivative assets | ||
Assets: | ||
Derivatives not designated as hedging instruments | 1 | 8 |
Commodity contracts | Non-current derivative liabilities | ||
Liabilities: | ||
Derivatives not designated as hedging instruments | 1 | 0 |
Commodity contracts | Current derivative liabilities | ||
Liabilities: | ||
Derivatives not designated as hedging instruments | 2 | 1 |
Commodity contracts | Current derivative assets | ||
Assets: | ||
Derivatives designated as hedging instruments | 3 | 0 |
Commodity contracts | Non-current derivative liabilities | ||
Liabilities: | ||
Derivatives designated as hedging instruments | 1 | 0 |
Commodity contracts | Current derivative liabilities | ||
Liabilities: | ||
Derivatives designated as hedging instruments | 17 | 0 |
Foreign currency contracts | Non-current derivative assets | ||
Assets: | ||
Derivatives designated as hedging instruments | 1 | 1 |
Foreign currency contracts | Current derivative assets | ||
Assets: | ||
Derivatives designated as hedging instruments | 9 | 12 |
Foreign currency contracts | Non-current derivative liabilities | ||
Liabilities: | ||
Derivatives designated as hedging instruments | 49 | 93 |
Foreign currency contracts | Current derivative liabilities | ||
Liabilities: | ||
Derivatives designated as hedging instruments | € 1 | € 0 |
HEDGING ACTIVITIES - Narrative
HEDGING ACTIVITIES - Narrative (Details) - EUR (€) € in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Disclosure of detailed information about hedges [line items] | ||||
Notional amount | € 1,492 | € 1,214 | € 1,221 | € 1,492 |
Gains (losses) recognized in other comprehensive income from cash flow hedges | 33 | (116) | 44 | |
Gains (losses) recognized in other comprehensive income from net investment hedges | 0 | 27 | € (44) | |
Commodity contracts | ||||
Disclosure of detailed information about hedges [line items] | ||||
Notional amount of non-designated hedging instrument | 31 | 132 | 31 | |
Foreign currency contracts | ||||
Disclosure of detailed information about hedges [line items] | ||||
Notional amount of non-designated hedging instrument | 57 | 59 | 57 | |
IRS | ||||
Disclosure of detailed information about hedges [line items] | ||||
Deferred tax benefit recognized in other reserves related to US tax law changes | 27 | |||
Commodity contracts | Cash flow hedges | ||||
Disclosure of detailed information about hedges [line items] | ||||
Notional amount | 200 | 200 | ||
Foreign currency contracts | Cash flow hedges | ||||
Disclosure of detailed information about hedges [line items] | ||||
Notional amount | € 1,300 | € 1,200 | € 1,300 |
HEDGING ACTIVITIES - Schedule o
HEDGING ACTIVITIES - Schedule of Net Tax Effect of Cash Flow Hedges (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Reclassification adjustments on cash flow hedges, net of tax | € 47 | € (116) | € 53 |
Cost of sales | Foreign currency contracts | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Reclassification adjustments on cash flow hedges, net of tax | 4 | 7 | 5 |
Selling and distribution expenses | Foreign currency contracts | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Reclassification adjustments on cash flow hedges, net of tax | 0 | 0 | (1) |
Non-operating items | Foreign currency contracts | |||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | |||
Reclassification adjustments on cash flow hedges, net of tax | € 43 | € (123) | € 49 |
HEDGING ACTIVITIES - Schedule_2
HEDGING ACTIVITIES - Schedule of Non-Hedge Designated Derivatives (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | |||
Gains (losses) on change in fair value of derivatives | € (3) | € 31 | € 35 |
Cost of sales | Commodity contracts | |||
Disclosure of detailed information about financial instruments [line items] | |||
Gains (losses) on change in fair value of derivatives | 1 | 20 | 8 |
Selling and distribution expenses | Commodity contracts | |||
Disclosure of detailed information about financial instruments [line items] | |||
Gains (losses) on change in fair value of derivatives | 0 | (2) | 10 |
Non-operating items | Foreign currency contracts | |||
Disclosure of detailed information about financial instruments [line items] | |||
Gains (losses) on change in fair value of derivatives | € (4) | € 13 | € 17 |
HEDGING ACTIVITIES - Schedule_3
HEDGING ACTIVITIES - Schedule of Notational Maturity Profile (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about hedging instruments [line items] | |||
Notional amount | € 1,492 | € 1,214 | € 1,221 |
Foreign currency | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Notional amount | 1,255 | 1,214 | 1,221 |
Commodity | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Notional amount | 237 | ||
Less than 1 year | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Notional amount | 439 | 196 | 236 |
Less than 1 year | Foreign currency | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Notional amount | 227 | 196 | 236 |
Less than 1 year | Commodity | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Notional amount | 212 | ||
1 to 3 years | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Notional amount | 1,053 | 526 | 22 |
1 to 3 years | Foreign currency | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Notional amount | 1,028 | 526 | 22 |
1 to 3 years | Commodity | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Notional amount | 25 | ||
3 to 5 years | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Notional amount | 0 | 492 | 963 |
3 to 5 years | Foreign currency | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Notional amount | 0 | € 492 | € 963 |
3 to 5 years | Commodity | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Notional amount | € 0 |
BORROWINGS AND FINANCE LEASES
BORROWINGS AND FINANCE LEASES - Disclosure of Carrying Value of Borrowings (Details) - EUR (€) | 1 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Nov. 30, 2018 | Sep. 28, 2018 | Jul. 31, 2018 | Sep. 29, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2017 | May 28, 2016 | |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | € 5,127,000,000 | € 5,127,000,000 | € 5,474,000,000 | |||||||
Current portion of borrowings | 491,000,000 | 491,000,000 | 274,000,000 | |||||||
Notional amount | 1,492,000,000 | 1,492,000,000 | 1,214,000,000 | € 1,221,000,000 | ||||||
Repayments of non-current borrowings | 444,000,000 | 1,180,000,000 | € 241,000,000 | |||||||
€350 million 2.00% Notes 2019 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | 0 | 0 | 348,000,000 | |||||||
Current portion of borrowings | € 349,000,000 | € 349,000,000 | 0 | |||||||
Borrowings, interest rate | 2.00% | 2.00% | ||||||||
Notional amount | € 350,000,000 | € 350,000,000 | ||||||||
US$525 million 3.50% Notes 2020 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | € 456,000,000 | € 456,000,000 | 436,000,000 | |||||||
Borrowings, interest rate | 3.50% | 3.50% | ||||||||
Notional amount | € 525,000,000 | € 525,000,000 | ||||||||
US$250 million 3.25% Notes 2021 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | € 216,000,000 | € 216,000,000 | 206,000,000 | |||||||
Borrowings, interest rate | 3.25% | 3.25% | ||||||||
Notional amount | € 250,000,000 | € 250,000,000 | ||||||||
US$300 million 4.50% Notes 2021 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | € 261,000,000 | € 261,000,000 | 249,000,000 | |||||||
Borrowings, interest rate | 4.50% | 4.50% | ||||||||
Notional amount | € 300,000,000 | € 300,000,000 | ||||||||
€350 million Floating Rate Note 2021 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | 350,000,000 | 350,000,000 | 351,000,000 | |||||||
Notional amount | 350,000,000 | € 400,000,000 | 350,000,000 | € 350,000,000 | ||||||
€700 million 0.75% Notes 2022 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | € 697,000,000 | € 697,000,000 | 697,000,000 | |||||||
Borrowings, interest rate | 0.75% | 0.75% | ||||||||
Notional amount | € 700,000,000 | € 700,000,000 | ||||||||
€350 million 2.63% Notes 2023 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | € 348,000,000 | € 348,000,000 | 348,000,000 | |||||||
Borrowings, interest rate | 2.63% | 2.63% | ||||||||
Notional amount | € 350,000,000 | € 350,000,000 | ||||||||
€500 million 1.13% Notes 2024 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | € 495,000,000 | € 495,000,000 | 495,000,000 | |||||||
Borrowings, interest rate | 1.13% | 1.13% | ||||||||
Notional amount | € 500,000,000 | € 500,000,000 | ||||||||
€350 million 2.38% Notes 2025 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | € 346,000,000 | € 346,000,000 | 347,000,000 | |||||||
Borrowings, interest rate | 2.38% | 2.38% | ||||||||
Notional amount | € 350,000,000 | € 350,000,000 | ||||||||
€250 million 2.75% Notes 2026 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | € 248,000,000 | € 248,000,000 | 248,000,000 | |||||||
Borrowings, interest rate | 2.75% | 2.75% | ||||||||
Notional amount | € 250,000,000 | € 250,000,000 | ||||||||
€500 million 1.75% Notes 2028 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | € 493,000,000 | € 493,000,000 | 492,000,000 | |||||||
Borrowings, interest rate | 1.75% | 1.75% | ||||||||
Notional amount | € 500,000,000 | € 500,000,000 | ||||||||
€400 million 1.50% Notes 2027 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | € 395,000,000 | € 395,000,000 | 0 | |||||||
Borrowings, interest rate | 1.50% | 1.50% | 1.50% | |||||||
Notional amount | € 400,000,000 | € 400,000,000 | ||||||||
€500 million 1.88% Notes 2030 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | € 495,000,000 | € 495,000,000 | 496,000,000 | |||||||
Borrowings, interest rate | 1.88% | 1.88% | ||||||||
Notional amount | € 500,000,000 | € 500,000,000 | ||||||||
Term Loan Due 2018-2021 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | 274,000,000 | 274,000,000 | 698,000,000 | |||||||
Notional amount | 275,000,000 | 275,000,000 | € 1,000,000,000 | |||||||
Non-current finance lease obligations | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, less current portion | 53,000,000 | 53,000,000 | 63,000,000 | |||||||
€500 million Floating Rate Note 2017 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Notional amount | 500,000,000 | 500,000,000 | ||||||||
EUR commercial paper | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Current portion of borrowings | 120,000,000 | 120,000,000 | 250,000,000 | |||||||
Current finance lease obligations | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Current portion of borrowings | 22,000,000 | € 22,000,000 | € 24,000,000 | |||||||
Eurobond Notes | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Notional amount | € 2,200,000,000 | |||||||||
Term Loan Due 2018 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Repayments of non-current borrowings | € 200,000,000 | |||||||||
Term Loan Due 2021 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Repayments of non-current borrowings | € 100,000,000 | |||||||||
Term Loan Due 2019 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Repayments of non-current borrowings | € 100,000,000 | € 100,000,000 | ||||||||
Term Loan Due 2020 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Repayments of non-current borrowings | € 75,000,000 | € 100,000,000 | € 50,000,000 |
BORROWINGS AND FINANCE LEASES -
BORROWINGS AND FINANCE LEASES - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2018EUR (€)banks | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, unamortised financing fees | € 24,000,000 | € 19,000,000 | |
Borrowings | 5,618,000,000 | 5,748,000,000 | |
Cash received from income on the cross currency swap | 34,000,000 | € 36,000,000 | € 17,000,000 |
Multi-currency Credit Facility | |||
Disclosure of detailed information about borrowings [line items] | |||
Credit facility | € 1,500,000,000 | ||
Number of credit facility banks | banks | 10 | ||
Borrowings | € 0 |
BORROWINGS AND FINANCE LEASES_2
BORROWINGS AND FINANCE LEASES - Future Maturities of Finance Leases (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of finance lease and operating lease by lessee [line items] | ||
Total minimum lease payments | € 83 | € 96 |
Amounts representing interest | (8) | (9) |
Present value of minimum lease payments | 75 | 87 |
Within one year | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Total minimum lease payments | 22 | 24 |
After one year but not more than five years | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Total minimum lease payments | 39 | 46 |
More than five years | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Total minimum lease payments | € 22 | € 26 |
BORROWINGS AND FINANCE LEASES_3
BORROWINGS AND FINANCE LEASES - Reconciliation of Movements of Liabilities to Cash Flows Arising from Financing Activities (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | |
Changes from financing cash flows | ||||
Other financing activities, net | € (11) | € (2) | € (17) | |
Current portion of borrowings | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Beginning balance | 274 | 875 | ||
Changes from financing cash flows | ||||
Proceeds from debt | (131) | 250 | ||
Repayments on third party borrowings | 0 | (850) | ||
Repayments on third party borrowings; finance leases | (18) | (1) | ||
Capitalised discount/premium | 0 | 0 | ||
Other financing activities, net | 0 | |||
Other non-cash changes | ||||
Amortisation of discount, premium and issue costs | 0 | 0 | ||
Finance lease additions and other | 1 | 0 | ||
Currency translation | 1 | 0 | ||
Reclassifications | 364 | |||
Total changes | 217 | (601) | ||
Ending balance | 491 | 274 | 875 | |
Borrowings, less current portion | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Beginning balance | 5,474 | 5,562 | ||
Changes from financing cash flows | ||||
Proceeds from debt | 398 | 350 | ||
Repayments on third party borrowings | (426) | (310) | ||
Repayments on third party borrowings; finance leases | 0 | (19) | ||
Capitalised discount/premium | (2) | 2 | ||
Other financing activities, net | (8) | |||
Other non-cash changes | ||||
Amortisation of discount, premium and issue costs | 8 | 8 | ||
Finance lease additions and other | 5 | 5 | ||
Currency translation | 42 | (124) | ||
Reclassifications | (364) | |||
Total changes | (347) | (88) | ||
Ending balance | 5,127 | 5,474 | 5,562 | |
Total | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Beginning balance | 5,748 | 6,437 | ||
Changes from financing cash flows | ||||
Repayments on third party borrowings | (426) | (1,160) | ||
Repayments on third party borrowings; finance leases | (18) | (20) | ||
Capitalised discount/premium | (2) | $ 2 | ||
Other financing activities, net | (8) | |||
Other non-cash changes | ||||
Amortisation of discount, premium and issue costs | 8 | 8 | ||
Finance lease additions and other | 6 | 5 | ||
Currency translation | 43 | (124) | ||
Reclassifications | 0 | |||
Total changes | (130) | (689) | ||
Ending balance | € 5,618 | € 5,748 | € 6,437 |
TRADE AND OTHER PAYABLES - Summ
TRADE AND OTHER PAYABLES - Summary of Trade and Other Payables (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Trade And Other Payables [Line Items] | |||
Marketing costs | € 3,000 | € 2,900 | € 2,500 |
Trade and other current payables [abstract] | |||
Trade accounts payable | 1,105 | 1,057 | |
Accrued customer marketing costs | 753 | 648 | |
Accrued deposits | 282 | 266 | |
Accrued compensation and benefits | 269 | 249 | |
Accrued taxes | 273 | 167 | |
Other accrued expenses | 146 | 146 | |
Trade and other current payables | € 2,828 | € 2,533 | |
Low | |||
Trade And Other Payables [Line Items] | |||
Trade payables settlement period | 30 days | ||
High | |||
Trade And Other Payables [Line Items] | |||
Trade payables settlement period | 60 days |
POST-EMPLOYMENT BENEFITS - Non
POST-EMPLOYMENT BENEFITS - Non-current Employee Benefit Liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Benefits [Abstract] | ||
Retirement benefit obligation | € 89 | € 95 |
Other employee benefit liabilities | 53 | 67 |
Total non-current employee benefit liabilities | € 142 | € 162 |
POST-EMPLOYMENT BENEFITS - Bene
POST-EMPLOYMENT BENEFITS - Benefit Costs (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefits [Abstract] | |||
Service cost | € 52 | € 53 | € 49 |
Past service cost | 0 | (3) | 0 |
Net interest cost (income) | 1 | 3 | 2 |
Administrative expenses | 2 | 2 | 2 |
Total cost | € 55 | € 55 | € 53 |
POST-EMPLOYMENT BENEFITS - Oth
POST-EMPLOYMENT BENEFITS - Other Comprehensive Income (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefits [Abstract] | |||
Actuarial (gain)/loss on defined benefit obligation arising during the period | € (120) | € 30 | € 248 |
Return on plan assets (greater)/less than discount rate | 118 | (121) | (183) |
Pretax activity, net | € (2) | € (91) | € 65 |
POST-EMPLOYMENT BENEFITS - Be_2
POST-EMPLOYMENT BENEFITS - Benefit Obligation and Fair Value of Plan Assets (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Service cost | € 52 | € 53 | € 49 |
Past service cost | 0 | (3) | 0 |
Interest costs (income) on defined benefit obligation | 1 | 3 | 2 |
Return on plan assets (greater)/less than discount rate | 118 | (121) | (183) |
Administrative expenses | 2 | 2 | 2 |
Benefit obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net benefit obligation (asset) | 1,969 | 1,947 | |
Service cost | 52 | 53 | |
Past service cost | 0 | (3) | |
Interest costs (income) on defined benefit obligation | 42 | 43 | |
Plan participants contribution | (47) | (45) | |
Actuarial loss/(gain) - experience | (5) | 5 | |
Actuarial loss/(gain) - demographic assumptions | (35) | 0 | |
Actuarial loss/(gain) - financial assumptions | (80) | 25 | |
Benefit payments | (110) | (90) | |
Administrative expenses | 2 | 2 | |
Currency translation adjustment | (10) | (50) | |
Settlements | 0 | 8 | |
Net benefit obligation (asset) | 1,872 | 1,969 | 1,947 |
Plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net benefit obligation (asset) | 1,898 | 1,779 | |
Interest costs (income) on defined benefit obligation | (41) | (40) | |
Return on plan assets (greater)/less than discount rate | (118) | 121 | |
Plan participants contribution | 47 | 45 | |
Employer contributions | 56 | 58 | |
Benefit payments | (110) | (90) | |
Currency translation adjustment | 10 | 48 | |
Settlements | 0 | (7) | |
Net benefit obligation (asset) | € 1,804 | € 1,898 | € 1,779 |
POST-EMPLOYMENT BENEFITS - Reti
POST-EMPLOYMENT BENEFITS - Retirement Benefit Status (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Benefits [Abstract] | ||
Present value of obligation | € (1,872) | € (1,969) |
Fair value of assets | 1,804 | 1,898 |
Net benefit status: | (68) | (71) |
Retirement benefit surplus | 21 | 24 |
Retirement benefit obligation | € (89) | € (95) |
POST-EMPLOYMENT BENEFITS - Actu
POST-EMPLOYMENT BENEFITS - Actuarial Assumptions, Financial Assumptions (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Benefits [Abstract] | ||
Actuarial assumption of discount rates | 2.50% | 2.30% |
Actuarial assumption of expected rates of salary increases | 3.10% | 3.10% |
Actuarial assumption of expected rates of inflation | 2.90% | 2.90% |
POST-EMPLOYMENT BENEFITS - Ac_2
POST-EMPLOYMENT BENEFITS - Actuarial Assumptions, Demographic Assumptions (Details) - year | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits [Abstract] | ||
Retiring at the end of the reporting period, male | 21.3 | 21.4 |
Retiring at the end of the reporting period, female | 23.9 | 24.3 |
Retiring 15 years after the end of the reporting period, male | 22.3 | 22.7 |
Retiring 15 years after the end of the reporting period, female | 25 | 25.6 |
Retirement age | 65 years |
POST-EMPLOYMENT BENEFITS - Defi
POST-EMPLOYMENT BENEFITS - Defined Benefit Obligation Sensitivity (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Discount rate | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in assumption | 0.50% | |
Change in assumption | 0.50% | |
Impact on defined benefit obligation %, Increase in assumption | (8.60%) | (9.10%) |
Impact on defined benefit obligation %, Decrease in assumption | 9.80% | 10.60% |
Rate of compensation increase | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in assumption | 0.50% | |
Change in assumption | 0.50% | |
Impact on defined benefit obligation %, Increase in assumption | 2.40% | 2.60% |
Impact on defined benefit obligation %, Decrease in assumption | (2.20%) | (2.40%) |
Rate of price inflation | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in assumption | 0.50% | |
Change in assumption | 0.50% | |
Impact on defined benefit obligation %, Increase in assumption | 8.10% | 8.90% |
Impact on defined benefit obligation %, Decrease in assumption | (6.60%) | (7.80%) |
Mortality rates | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in assumption, period | 1 year | |
Change in assumption, period | 1 year | |
Impact on defined benefit obligation %, Increase in assumption | 2.90% | 2.50% |
Impact on defined benefit obligation %, Decrease in assumption | (3.00%) | (2.40%) |
POST-EMPLOYMENT BENEFITS - Pens
POST-EMPLOYMENT BENEFITS - Pension Plan Assets (Details) - EUR (€) € / shares in Units, € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed-income securities: | ||
Short-term Investments | € 7 | € 10 |
Other investments: | ||
Real estate funds | 293 | 226 |
Insurance contracts | 226 | 218 |
Plan assets, at fair value | € 1,804 | 1,898 |
Short-term investments, fair value per unit (in euro per unit) | € 1 | |
Investments quoted in active markets | ||
Fixed-income securities: | ||
Short-term Investments | € 7 | 5 |
Other investments: | ||
Real estate funds | 27 | 14 |
Insurance contracts | 0 | 0 |
Plan assets, at fair value | 1,288 | 1,359 |
Unquoted investments | ||
Fixed-income securities: | ||
Short-term Investments | 0 | 5 |
Other investments: | ||
Real estate funds | 266 | 212 |
Insurance contracts | 226 | 218 |
Plan assets, at fair value | 516 | 539 |
Corporate bonds and notes | ||
Fixed-income securities: | ||
Fixed-income securities | 67 | 60 |
Corporate bonds and notes | Investments quoted in active markets | ||
Fixed-income securities: | ||
Fixed-income securities | 43 | 34 |
Corporate bonds and notes | Unquoted investments | ||
Fixed-income securities: | ||
Fixed-income securities | 24 | 26 |
Government bonds | ||
Fixed-income securities: | ||
Fixed-income securities | 384 | 409 |
Government bonds | Investments quoted in active markets | ||
Fixed-income securities: | ||
Fixed-income securities | 384 | 387 |
Government bonds | Unquoted investments | ||
Fixed-income securities: | ||
Fixed-income securities | 0 | 22 |
US | ||
Equity securities: | ||
Equity securities | 201 | 226 |
US | Investments quoted in active markets | ||
Equity securities: | ||
Equity securities | 201 | 226 |
US | Unquoted investments | ||
Equity securities: | ||
Equity securities | 0 | 0 |
Non-US equities | ||
Equity securities: | ||
Equity securities | 626 | 749 |
Non-US equities | Investments quoted in active markets | ||
Equity securities: | ||
Equity securities | 626 | 693 |
Non-US equities | Unquoted investments | ||
Equity securities: | ||
Equity securities | € 0 | € 56 |
POST-EMPLOYMENT BENEFITS - Narr
POST-EMPLOYMENT BENEFITS - Narrative (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2018EUR (€)year | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Disclosure of defined benefit plans [line items] | |||
Contributions to pension plan | € 56 | € 58 | € 78 |
Estimate of contributions expected to be paid to plan for next annual reporting period | 54 | ||
Current provision for other employee benefit liabilities | 19 | 21 | |
Non-current provision for other employee benefit liabilities | 53 | 67 | |
Contributions to defined contribution plan | € 27 | € 25 | 24 |
Weighted average | |||
Disclosure of defined benefit plans [line items] | |||
Duration of defined benefit obligation | year | 21 | ||
Great Britain | |||
Disclosure of defined benefit plans [line items] | |||
Present value of obligation, percentage | 70.50% | ||
Fair value of assets, percentage | 73.00% | ||
Additional future funding levels to plan | € 13 | ||
Great Britain | Weighted average | |||
Disclosure of defined benefit plans [line items] | |||
Duration of defined benefit obligation | year | 23 | ||
Germany | |||
Disclosure of defined benefit plans [line items] | |||
Present value of obligation, percentage | 18.50% | ||
Fair value of assets, percentage | 19.00% | ||
Germany | Weighted average | |||
Disclosure of defined benefit plans [line items] | |||
Duration of defined benefit obligation | year | 15 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) | Jun. 22, 2016EUR (€) | May 28, 2016EUR (€)€ / sharesshares | Dec. 31, 2018EUR (€)€ / sharesshares | Sep. 28, 2018EUR (€) | Jun. 29, 2018EUR (€) | Mar. 30, 2018EUR (€) | Dec. 31, 2017EUR (€)shares | Sep. 29, 2017EUR (€) | Jun. 30, 2017EUR (€) | Mar. 31, 2017EUR (€) | Dec. 31, 2016EUR (€)shares | Jul. 01, 2016EUR (€) | Apr. 01, 2016EUR (€) | Dec. 31, 2018EUR (€)€ / sharesshares | May 27, 2016shares | Dec. 31, 2016shares | Sep. 30, 2016EUR (€) | Dec. 31, 2018EUR (€)€ / sharesshares | Dec. 31, 2017EUR (€)shares | Dec. 31, 2016EUR (€)shares | Sep. 12, 2018EUR (€)shares | May 28, 2016$ / sharesshares |
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||
Number of shares issued and fully paid (in shares) | shares | 474,920,066 | 484,586,428 | 483,076,396 | 474,920,066 | 483,076,396 | 474,920,066 | 484,586,428 | 483,076,396 | ||||||||||||||
Agreements to purchase shares under share buyback programme | € (500,000,000) | € (502,000,000) | ||||||||||||||||||||
Group reconstruction transaction | € 0 | |||||||||||||||||||||
Capital reduction | 0 | |||||||||||||||||||||
Issue of shares during the year | 25,000,000 | € 13,000,000 | ||||||||||||||||||||
Equity-settled share-based payment expense | 16,000,000 | 11,000,000 | 29,000,000 | |||||||||||||||||||
Share price (in euro per share) | € / shares | € 33.33 | |||||||||||||||||||||
Consideration transferred for merger reserves in excess of nominal value | 8,469,000,000 | |||||||||||||||||||||
Return of capital | € 3,000,000,000 | |||||||||||||||||||||
Total dividend on ordinary shares paid | € 134,000,000 | € 127,000,000 | € 126,000,000 | € 126,000,000 | € 101,000,000 | € 102,000,000 | € 204,000,000 | € 82,000,000 | € 82,000,000 | € 61,000,000 | € 61,000,000 | € 0 | 513,000,000 | 489,000,000 | 204,000,000 | |||||||
Treasury shares cancelled (in shares) | shares | 128,993,430 | |||||||||||||||||||||
Cancellation of treasury shares | € 3,300,000,000 | |||||||||||||||||||||
Authorised share buyback programme | € 1,500,000,000 | |||||||||||||||||||||
Authorised share buyback programme (in shares) | shares | 48,507,819 | |||||||||||||||||||||
Restricted Stock Units and Performance Share Units | ||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||
Total dividend on ordinary shares paid | € 2,000,000 | € 2,000,000 | € 1,000,000 | |||||||||||||||||||
Share capital | ||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||
Number of shares issued for business acquisition (in shares) | shares | 254,000,000 | |||||||||||||||||||||
Number of shares issued related to share-based payments awards (in shares) | shares | 908,456 | 752,525 | 2,763,238 | 1,510,032 | ||||||||||||||||||
Number of shares cancelled (in shares) | shares | (12,429,600) | |||||||||||||||||||||
Agreements to purchase shares under share buyback programme | € (100,000) | |||||||||||||||||||||
Group reconstruction transaction | € 2,000,000 | |||||||||||||||||||||
Shares issued related to restructuring transaction (in shares) | shares | 228,000,000 | |||||||||||||||||||||
Equity-settled share-based payment expense | 0 | € 0 | ||||||||||||||||||||
Consideration transferred for merger reserves in excess of nominal value | € 3,000,000 | |||||||||||||||||||||
Share capital | CCEG | ||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||
Number of shares issued for business acquisition (in shares) | shares | 87,950,640 | |||||||||||||||||||||
Share capital | CCIP | ||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||
Number of shares issued for business acquisition (in shares) | shares | 166,128,987 | |||||||||||||||||||||
Share premium | ||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||
Group reconstruction transaction | € 7,600,000,000 | 7,605,000,000 | ||||||||||||||||||||
Shares issued related to restructuring transaction (in shares) | shares | 228,244,244 | |||||||||||||||||||||
Capital reduction | € (7,500,000,000) | (7,500,000,000) | ||||||||||||||||||||
Issue of shares during the year | 25,000,000 | 13,000,000 | ||||||||||||||||||||
Retained earnings | ||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||
Agreements to purchase shares under share buyback programme | (502,000,000) | |||||||||||||||||||||
Agreements to purchase shares under share buyback programs, tax | (2,000,000) | |||||||||||||||||||||
Capital reduction | € 7,500,000,000 | 7,500,000,000 | ||||||||||||||||||||
Equity-settled share-based payment expense | 16,000,000 | 11,000,000 | 29,000,000 | |||||||||||||||||||
Merger reserves | ||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||
Group reconstruction transaction | (7,607,000,000) | |||||||||||||||||||||
Consideration transferred for merger reserves in excess of nominal value | 8,500,000,000 | € 8,466,000,000 | ||||||||||||||||||||
Merger reserves | CCEG | ||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||
Consideration transferred for merger reserves in excess of nominal value | 2,900,000,000 | |||||||||||||||||||||
Merger reserves | CCIP | ||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||
Consideration transferred for merger reserves in excess of nominal value | € 5,500,000,000 | |||||||||||||||||||||
Other reserves | ||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||
Agreements to purchase shares under share buyback programme | € 100,000 | |||||||||||||||||||||
Ordinary shares | ||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||
Par value per share (in dollars/euros per share) | (per share) | € 0.01 | € 0.01 | € 0.01 | $ 0.01 | ||||||||||||||||||
Number of shares issued and fully paid (in shares) | shares | 228,244,244 | 228,244,244 |
EQUITY - Rollforward of Shares
EQUITY - Rollforward of Shares and Share Capital (Details) - EUR (€) € in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
May 27, 2016 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of classes of share capital [line items] | |||||
Equity attributable to owners of parent | € 871 | € 6,685 | € 6,461 | € 871 | |
Equity-settled share-based payment expense | 16 | 11 | 29 | ||
Cancellation of CCE shares | 0 | ||||
Issuance of CCEP shares in consideration for CCIP and CCEG | 8,469 | ||||
Group reconstruction transaction | 0 | ||||
Equity attributable to owners of parent | € 6,461 | 6,564 | € 6,685 | € 6,461 | |
Share capital | |||||
Disclosure of classes of share capital [line items] | |||||
Purchase of treasury shares | € 0 | ||||
Beginning balance (in shares) | 227,000,000 | 485,000,000 | 483,000,000 | 227,000,000 | |
Equity attributable to owners of parent | € 3 | € 5 | € 5 | € 3 | |
Shares utilised for share-based payments (in shares) | 908,456 | 752,525 | 2,763,238 | 1,510,032 | |
Equity-settled share-based payment expense | € 0 | € 0 | |||
Cancellation of CCE shares (in shares) | (228,000,000) | ||||
Cancellation of CCE shares | € (3) | ||||
Issuance of CCEP shares in consideration for CCIP and CCEG (in shares) | 254,000,000 | ||||
Issuance of CCEP shares in consideration for CCIP and CCEG | € 3 | ||||
Group reconstruction transaction (in shares) | 228,000,000 | ||||
Group reconstruction transaction | € 2 | ||||
Number of shares cancelled (in shares) | (12,429,600) | ||||
Equity attributable to owners of parent | € 5 | € 5 | € 5 | € 5 | |
Ending balance (in shares) | 483,000,000 | 475,000,000 | 485,000,000 | 483,000,000 | |
Pre-Merger Share-based Compensation | Share capital | |||||
Disclosure of classes of share capital [line items] | |||||
Shares utilised for share-based payments (in shares) | 1,000,000 | ||||
Equity-settled share-based payment expense | € 0 | ||||
Post-Merger Share-based Compensation | Share capital | |||||
Disclosure of classes of share capital [line items] | |||||
Shares utilised for share-based payments (in shares) | 1,000,000 | ||||
Equity-settled share-based payment expense | € 0 |
EQUITY - Other Reserves (Detail
EQUITY - Other Reserves (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share Capital, Reserves And Other Equity Interest [Abstract] | |||
Cash flow hedge reserve | € (26) | € (12) | € (12) |
Net investment hedge reserve | 197 | 197 | 170 |
Foreign currency translation adjustment reserve | (723) | (688) | (577) |
Total other reserves | € (552) | € (503) | € (419) |
EQUITY - Dividends (Details)
EQUITY - Dividends (Details) € / shares in Units, € in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018EUR (€)€ / shares | Sep. 28, 2018EUR (€)€ / shares | Jun. 29, 2018EUR (€)€ / shares | Mar. 30, 2018EUR (€)€ / shares | Dec. 31, 2017EUR (€)€ / shares | Sep. 29, 2017EUR (€)€ / shares | Jun. 30, 2017EUR (€)dividend_payment€ / shares | Mar. 31, 2017EUR (€)€ / shares | Dec. 31, 2016EUR (€)€ / shares | Sep. 30, 2016€ / shares | Jul. 01, 2016EUR (€)€ / shares | Apr. 01, 2016EUR (€)€ / shares | Sep. 30, 2016EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Share Capital, Reserves And Other Equity Interest [Abstract] | ||||||||||||||||
Total dividend on ordinary shares paid | € | € 134 | € 127 | € 126 | € 126 | € 101 | € 102 | € 204 | € 82 | € 82 | € 61 | € 61 | € 0 | € 513 | € 489 | € 204 | |
Dividend rate (in euros per share) | € / shares | € 0.28 | € 0.26 | € 0.26 | € 0.26 | € 0.21 | € 0.21 | € 0.21 | € 0.17 | € 0.17 | € 0 | € 0.30 | € 0.30 | ||||
Number of dividend payments | dividend_payment | 2 |
TOTAL OPERATING COSTS - Signif
TOTAL OPERATING COSTS - Significant Cost Items by Nature (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Analysis of income and expense [abstract] | |||
Cost of inventory recognised as an expense | € 4,901 | € 5,021 | € 4,194 |
Write-down of inventories (Note 6) | 23 | 25 | 28 |
Employee costs | 1,768 | 1,719 | 1,411 |
Distribution costs | 637 | 595 | 514 |
Depreciation of property, plant and equipment, excluding restructuring | 446 | 426 | 321 |
Amortisation of intangible assets (Note 4) | 51 | 47 | 39 |
Out of period mark-to-market effects on undesignated derivatives | 8 | (6) | (35) |
Merger related costs | 0 | 4 | 126 |
Restructuring charges including accelerated depreciation | € 274 | € 235 | € 286 |
TOTAL OPERATING COSTS - Employe
TOTAL OPERATING COSTS - Employee Costs (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Analysis of income and expense [abstract] | |||
Wages and salaries | € 1,360 | € 1,317 | € 1,059 |
Social security costs | 290 | 290 | 234 |
Pension and other employee benefits | 118 | 112 | 118 |
Total staff costs | € 1,768 | € 1,719 | € 1,411 |
TOTAL OPERATING COSTS - Average
TOTAL OPERATING COSTS - Average Number of Employees (Details) - employee | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commercial | |||
Disclosure of products and services [line items] | |||
Total average staff employed | 7,700 | 7,700 | 6,100 |
Supply chain | |||
Disclosure of products and services [line items] | |||
Total average staff employed | 13,100 | 13,500 | 10,800 |
Support functions | |||
Disclosure of products and services [line items] | |||
Total average staff employed | 2,700 | 2,300 | 2,200 |
TOTAL OPERATING COSTS - Restruc
TOTAL OPERATING COSTS - Restructuring Costs (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Analysis of income and expense [abstract] | |||
Increase in provision for restructuring programmes (Note 20) | € 236 | € 186 | € 260 |
Amount of provision reversed unused (Note 20) | (23) | (22) | (6) |
Accelerated depreciation and non-cash costs | 22 | 33 | 24 |
Other cash costs(A) | 39 | 38 | 8 |
Total | € 274 | € 235 | € 286 |
TOTAL OPERATING COSTS - Narrati
TOTAL OPERATING COSTS - Narrative (Details) - EUR (€) € in Millions | 1 Months Ended | 12 Months Ended | 24 Months Ended | 36 Months Ended | ||||
Nov. 30, 2018 | Jan. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | May 28, 2016 | |
Disclosure of other provisions [line items] | ||||||||
Restructuring expenses | € 236 | € 186 | € 260 | |||||
Supply Chain Site Closure in Iberia | ||||||||
Disclosure of other provisions [line items] | ||||||||
Restructuring expenses | € 112 | |||||||
Supply Chain Site Closure in Great Britain | ||||||||
Disclosure of other provisions [line items] | ||||||||
Restructuring expenses | € 31 | |||||||
Expected restructuring charges including accelerated depreciation | € 40 | |||||||
CCEP Integration and Synergy Progamme | ||||||||
Disclosure of other provisions [line items] | ||||||||
Restructuring expenses | 50 | 215 | € 450 | |||||
Germany Restructuring Programme and Iberia Inflight Initiatives | ||||||||
Disclosure of other provisions [line items] | ||||||||
Restructuring expenses | 3 | € 23 | ||||||
Other provisions | € 228 | |||||||
Iberia | Commercial Initiative | ||||||||
Disclosure of other provisions [line items] | ||||||||
Restructuring expenses | 15 | |||||||
Expected restructuring charges including accelerated depreciation | 38 | |||||||
Germany | Commercial Initiative | ||||||||
Disclosure of other provisions [line items] | ||||||||
Restructuring expenses | 11 | |||||||
Expected restructuring charges including accelerated depreciation | € 30 |
TOTAL OPERATING COSTS - Auditor
TOTAL OPERATING COSTS - Auditor Remuneration (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Analysis of income and expense [abstract] | |||
Audit of parent company and consolidated financial statements | € 2,401 | € 2,383 | € 4,932 |
Audit of the company’s subsidiaries | 3,719 | 4,167 | 3,800 |
Total audit | 6,120 | 6,550 | 8,732 |
Audit related assurance services | 976 | 1,187 | 1,512 |
Other assurance services | 101 | 115 | 138 |
Total audit and audit-related assurance services | 7,197 | 7,852 | 10,382 |
Taxation advisory services | 0 | 0 | 508 |
All other services | 1,180 | 90 | 3 |
Total non-audit or non-audit-related assurance services | 1,180 | 90 | 511 |
Total audit and all other fees | € 8,377 | € 7,942 | € 10,893 |
FINANCE COSTS - Summary of Net
FINANCE COSTS - Summary of Net Finance Costs (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Analysis of income and expense [abstract] | |||
Interest income | € 47 | € 48 | € 31 |
Interest expense on external debt | (134) | (141) | (145) |
Other finance cost | (6) | (7) | (9) |
Total finance costs | (140) | (148) | (154) |
Total finance costs, net | (93) | (100) | (123) |
Interest rate swap | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest income | € 34 | € 36 | € 23 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - director | 12 Months Ended | |
Dec. 31, 2018 | May 28, 2016 | |
Disclosure of transactions between related parties [line items] | ||
Number of members of board of directors | 17 | |
TCCC | Entities with joint control or significant influence over entity | ||
Disclosure of transactions between related parties [line items] | ||
Percentage ownership | 18.50% | |
Number of members of board of directors | 2 | |
Cobega Companies | Entities with joint control or significant influence over entity | ||
Disclosure of transactions between related parties [line items] | ||
Percentage ownership | 19.50% | |
Number of members of board of directors | 3 | |
Cobega Companies | Entities with joint control or significant influence over entity | CCIP | ||
Disclosure of transactions between related parties [line items] | ||
Percentage ownership | 56.00% | |
CCIP | Entities with joint control or significant influence over entity | ||
Disclosure of transactions between related parties [line items] | ||
Number of members of board of directors | 5 | |
Franchise intangible | ||
Disclosure of transactions between related parties [line items] | ||
Agreement term | 10 years | |
Renewal term | 10 years | |
Franchise intangible | TCCC | Entities with joint control or significant influence over entity | ||
Disclosure of transactions between related parties [line items] | ||
Agreement term | 10 years | |
Renewal term | 10 years |
RELATED PARTY TRANSACTIONS - T
RELATED PARTY TRANSACTIONS - Transactions with TCCC (Details) - TCCC - Entities with joint control or significant influence over entity - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Amounts affecting revenue | € 59 | € 61 | € 44 |
Amounts affecting cost of sales | (2,860) | (2,829) | (2,227) |
Amounts affecting operating expenses | (18) | (1) | 1 |
Total net amount affecting the consolidated income statement | (2,819) | (2,769) | € (2,182) |
Amounts due from | 101 | 71 | |
Amounts payable | € 166 | € 162 |
RELATED PARTY TRANSACTIONS - Tr
RELATED PARTY TRANSACTIONS - Transactions with Cobega Companies (Details) - Cobega Companies - Entities with joint control or significant influence over entity - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Amounts affecting revenue | € 3 | € 3 | € 5 |
Amounts affecting cost of sales | (85) | (80) | (43) |
Amounts affecting operating expenses | (14) | (16) | (9) |
Total net amount affecting the consolidated income statement | (96) | (93) | € (47) |
Amounts due from | 6 | 4 | |
Amounts payable | € 25 | € 16 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Transactions with Key Personnel (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party [Abstract] | |||
Salaries and other short-term employee benefits(A) | € 23 | € 18 | € 20 |
Post-employment benefits | 1 | 1 | 1 |
Share-based payments | 9 | 8 | 20 |
Termination benefits | 0 | 0 | 10 |
Total | € 33 | € 27 | € 51 |
INCOME TAXES - Components of I
INCOME TAXES - Components of Income Tax (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax: | |||
Current income tax charge | € 315 | € 294 | € 242 |
Adjustment in respect of current income tax from prior periods | 4 | 0 | 24 |
Total current tax | 319 | 294 | 266 |
Deferred tax: | |||
Relating to the origination and reversal of temporary differences | 21 | 196 | (56) |
Adjustment in respect of deferred income tax from prior periods | (6) | (3) | 3 |
Relating to changes in tax rates or the imposition of new taxes | (38) | (16) | (43) |
Total deferred tax | (23) | 177 | (96) |
Income tax charge per the income statement | € 296 | € 471 | € 170 |
INCOME TAXES - Taxes on Items R
INCOME TAXES - Taxes on Items Recognised in Other Comprehensive Income and Directly in Equity (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Taxes charged (credited) to OCI: | |||
Deferred tax on net gain/loss on revaluation of cash flow hedges | € (3) | € 0 | € (2) |
Deferred tax on net gain/loss on net investment hedges | (41) | (27) | (22) |
Current tax on net gain/loss on net investment hedges | 41 | 0 | 0 |
Deferred tax on net gain/loss on pension plan remeasurements | 0 | 18 | (14) |
Total taxes charged (credited) to OCI | (3) | (9) | (38) |
Taxes charged (credited) to equity: | |||
Deferred tax charge (credit): share based compensation | 12 | (12) | (5) |
Current tax charge (credit): share based compensation | (5) | (2) | 0 |
Total taxes charged (credited) to equity | € 7 | € (14) | € (5) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - EUR (€) € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Income Tax [Abstract] | ||||||
Effective tax rate | 24.60% | 40.60% | 23.60% | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Deferred tax liability (asset) | € 2,181 | € 2,181 | € 2,120 | € 2,181 | € 1,974 | € 2,120 |
Deferred tax assets | 56 | 56 | 37 | 56 | 37 | |
Deferred tax liabilities | 2,237 | 2,237 | 2,157 | 2,237 | 2,157 | |
Unrecognised deferred tax assets | 569 | 569 | 544 | 569 | 356 | 544 |
Operating loss carryforward | 4 | 4 | ||||
Temporary differences associated with investments in subsidiaries for which a deferred tax liability has not been recognized | 0 | 0 | ||||
Reduction in deferred taxes not recognised related to tax cuts and jobs act | (4) | 174 | 30 | |||
Effect of tax rate changes on equity | 8 | |||||
Deferred tax book expense | (38) | (16) | € (43) | |||
Capitalized Assets Expensed For Tax Related Temporary Differences | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Deferred tax liability (asset) | 44 | 44 | ||||
Purchase Accounting Related Temporary Differences | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Deferred tax liability (asset) | 22 | 22 | 22 | |||
2036 | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Operating loss carryforward | 3 | 3 | ||||
Between 2021 and 2026 | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Tax credit carryforward | 12 | 12 | € 12 | |||
IRS | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Book tax expense related to US tax cuts and jobs act | 320 | 11 | 331 | |||
Reduction in deferred taxes not recognised related to tax cuts and jobs act | 178 | 167 | ||||
Income tax charge related to the deemed repatriation of profits under the tax cuts and jobs act | € 125 | € 11 | 156 | |||
Net reduction in deferred tax liability | 8 | |||||
Deferred tax benefit recognized in other reserves related to US tax law changes | 27 | |||||
Effect of tax rate changes on equity | 11 | |||||
Deferred tax book expense | € 16 | € 8 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax Provision (Details) - EUR (€) € in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Disclosure of geographical areas [line items] | |||||||
Accounting profit before tax from continuing operations | € 1,205 | € 1,159 | € 719 | ||||
Tax expense at the statutory rate | 229 | 223 | 144 | ||||
Taxation of foreign operations, net | 81 | 86 | (11) | ||||
Non-deductible expense items for tax purposes | 30 | 7 | 13 | ||||
Non-deductible transaction costs | 0 | 0 | 10 | ||||
Tax effect from change in tax rate | (38) | (16) | (43) | ||||
Deferred taxes not recognised | (4) | 174 | 30 | ||||
Adjustment in respect of current income tax from prior periods | (2) | (3) | 27 | ||||
Income tax charge per the income statement | € 296 | € 471 | € 170 | ||||
Statutory UK rate | 19.00% | 19.25% | 20.00% | ||||
United States | |||||||
Disclosure of geographical areas [line items] | |||||||
Deferred tax benefit recognized in other reserves related to US tax law changes | € (27) | ||||||
Non-deductible expense items for tax purposes | € 24 | ||||||
Tax effect from change in tax rate | € 16 | 8 | |||||
Deferred taxes not recognised | € 178 | 167 | |||||
Income tax charge related to the deemed repatriation of profits under the tax cuts and jobs act | € 125 | 11 | € 156 | ||||
Basque Territory | |||||||
Disclosure of geographical areas [line items] | |||||||
Tax effect from change in tax rate | 23 | ||||||
Netherlands | |||||||
Disclosure of geographical areas [line items] | |||||||
Tax effect from change in tax rate | 9 | ||||||
Sweden | |||||||
Disclosure of geographical areas [line items] | |||||||
Tax effect from change in tax rate | € 5 | ||||||
France | |||||||
Disclosure of geographical areas [line items] | |||||||
Tax effect from change in tax rate | € 28 | € 11 | |||||
Belgium | |||||||
Disclosure of geographical areas [line items] | |||||||
Tax effect from change in tax rate | € 20 | ||||||
United Kingdom | |||||||
Disclosure of geographical areas [line items] | |||||||
Tax effect from change in tax rate | € 14 |
INCOME TAXES - Rollforward of D
INCOME TAXES - Rollforward of Deferred Income Taxes (Details) - EUR (€) € in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Changes in deferred tax liability (asset) [abstract] | ||||
As at 31 December 2017 | € 2,181 | € 1,974 | € 1,974 | |
Amount charged/(credited) to income statement (excluding effect of tax rate changes) | 15 | 193 | ||
Effect of tax rate changes on income statement | (38) | (16) | € (43) | |
Amounts charged/(credited) directly to OCI | (44) | 17 | ||
Amount charged/(credited) to equity | (26) | |||
Amount charged/credited to equity (excluding effect of tax rate changes) | 12 | (20) | ||
Effect of tax rate changes on equity | 8 | |||
Acquired through business combinations | 55 | |||
Balance sheet reclassifications | 0 | |||
Effect of movements in foreign exchange | (6) | (4) | ||
As at 31 December 2018 | 2,120 | 2,181 | 1,974 | 2,120 |
Franchise and other intangible assets | ||||
Changes in deferred tax liability (asset) [abstract] | ||||
As at 31 December 2017 | 1,997 | 1,980 | 1,980 | |
Amount charged/(credited) to income statement (excluding effect of tax rate changes) | (3) | 2 | ||
Effect of tax rate changes on income statement | (40) | (33) | ||
Amounts charged/(credited) directly to OCI | 0 | 0 | ||
Amount charged/(credited) to equity | 0 | |||
Amount charged/credited to equity (excluding effect of tax rate changes) | 0 | 0 | ||
Effect of tax rate changes on equity | 0 | |||
Acquired through business combinations | 63 | |||
Balance sheet reclassifications | (2) | |||
Effect of movements in foreign exchange | (5) | (13) | ||
As at 31 December 2018 | 1,949 | 1,997 | 1,980 | 1,949 |
Property, plant and equipment | ||||
Changes in deferred tax liability (asset) [abstract] | ||||
As at 31 December 2017 | 237 | 318 | 318 | |
Amount charged/(credited) to income statement (excluding effect of tax rate changes) | (23) | (21) | ||
Effect of tax rate changes on income statement | (1) | (13) | ||
Amounts charged/(credited) directly to OCI | 0 | 0 | ||
Amount charged/(credited) to equity | 0 | |||
Amount charged/credited to equity (excluding effect of tax rate changes) | 0 | 0 | ||
Effect of tax rate changes on equity | 0 | |||
Acquired through business combinations | (45) | |||
Balance sheet reclassifications | 2 | |||
Effect of movements in foreign exchange | (1) | (4) | ||
As at 31 December 2018 | 212 | 237 | 318 | 212 |
Financial assets and liabilities | ||||
Changes in deferred tax liability (asset) [abstract] | ||||
As at 31 December 2017 | 31 | 80 | 80 | |
Amount charged/(credited) to income statement (excluding effect of tax rate changes) | 28 | (12) | ||
Effect of tax rate changes on income statement | 0 | 3 | ||
Amounts charged/(credited) directly to OCI | (44) | 0 | ||
Amount charged/(credited) to equity | (27) | |||
Amount charged/credited to equity (excluding effect of tax rate changes) | 0 | |||
Effect of tax rate changes on equity | 0 | |||
Acquired through business combinations | 0 | |||
Balance sheet reclassifications | 0 | |||
Effect of movements in foreign exchange | 0 | (13) | ||
As at 31 December 2018 | 15 | 31 | 80 | 15 |
Net operating loss and other carryforwards | ||||
Changes in deferred tax liability (asset) [abstract] | ||||
As at 31 December 2017 | (14) | (72) | (72) | |
Amount charged/(credited) to income statement (excluding effect of tax rate changes) | 10 | 45 | ||
Effect of tax rate changes on income statement | 0 | 8 | ||
Amounts charged/(credited) directly to OCI | 0 | 0 | ||
Amount charged/(credited) to equity | 0 | |||
Amount charged/credited to equity (excluding effect of tax rate changes) | 0 | 0 | ||
Effect of tax rate changes on equity | 0 | |||
Acquired through business combinations | 0 | |||
Balance sheet reclassifications | 0 | |||
Effect of movements in foreign exchange | 0 | 5 | ||
As at 31 December 2018 | (4) | (14) | (72) | (4) |
Employee and retiree benefit accruals | ||||
Changes in deferred tax liability (asset) [abstract] | ||||
As at 31 December 2017 | (83) | (124) | (124) | |
Amount charged/(credited) to income statement (excluding effect of tax rate changes) | (9) | 20 | ||
Effect of tax rate changes on income statement | 0 | 14 | ||
Amounts charged/(credited) directly to OCI | 0 | 17 | ||
Amount charged/(credited) to equity | 1 | |||
Amount charged/credited to equity (excluding effect of tax rate changes) | 11 | (20) | ||
Effect of tax rate changes on equity | 8 | |||
Acquired through business combinations | (2) | |||
Balance sheet reclassifications | 0 | |||
Effect of movements in foreign exchange | 0 | 3 | ||
As at 31 December 2018 | (81) | (83) | (124) | (81) |
Tax credit carryforwards, net | ||||
Changes in deferred tax liability (asset) [abstract] | ||||
As at 31 December 2017 | (28) | (258) | (258) | |
Amount charged/(credited) to income statement (excluding effect of tax rate changes) | 11 | 165 | ||
Effect of tax rate changes on income statement | 4 | 0 | ||
Amounts charged/(credited) directly to OCI | 0 | 0 | ||
Amount charged/(credited) to equity | 0 | |||
Amount charged/credited to equity (excluding effect of tax rate changes) | 1 | 0 | ||
Effect of tax rate changes on equity | 0 | |||
Acquired through business combinations | 46 | |||
Balance sheet reclassifications | 0 | |||
Effect of movements in foreign exchange | 0 | 19 | ||
As at 31 December 2018 | (12) | (28) | (258) | (12) |
Other, net | ||||
Changes in deferred tax liability (asset) [abstract] | ||||
As at 31 December 2017 | 41 | 50 | 50 | |
Amount charged/(credited) to income statement (excluding effect of tax rate changes) | 1 | (6) | ||
Effect of tax rate changes on income statement | (1) | 5 | ||
Amounts charged/(credited) directly to OCI | 0 | 0 | ||
Amount charged/(credited) to equity | 0 | |||
Amount charged/credited to equity (excluding effect of tax rate changes) | 0 | 0 | ||
Effect of tax rate changes on equity | 0 | |||
Acquired through business combinations | (7) | |||
Balance sheet reclassifications | 0 | |||
Effect of movements in foreign exchange | 0 | (1) | ||
As at 31 December 2018 | € 41 | € 41 | € 50 | € 41 |
SHARE-BASED PAYMENTS PLANS - N
SHARE-BASED PAYMENTS PLANS - Narrative (Details) $ / shares in Units, € in Millions | Dec. 31, 2016EUR (€) | May 28, 2016EUR (€)shares | Dec. 31, 2018EUR (€)tranche | Dec. 31, 2018USD ($)sharestranche$ / shares | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($)shares$ / shares | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($)shares$ / shares | May 28, 2016$ / sharesshares |
Share-Based Payment Arrangements [Abstract] | |||||||||
Compensation expense related to share-based payment plans | € | € 17 | € 14 | € 42 | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Expiration period | 10 years | 10 years | |||||||
Weighted average share price (in USD per share) | $ | $ 41.91 | $ 39.24 | $ 42.12 | ||||||
Repurchases of share-based payments | € | € 0 | € 0 | € 27 | ||||||
Share Option | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Number of tranches for vesting | tranche | 3 | 3 | |||||||
Vesting period | 36 months | 36 months | |||||||
Restricted Share Units | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Number of other equity instruments outstanding in share-based payment arrangement | shares | 300,000 | 400,000 | 400,000 | ||||||
Vesting period | 36 months | 36 months | |||||||
Weighted average grant date fair value (in USD per share) | $ / shares | $ 39.51 | $ 44.05 | $ 45.76 | ||||||
Liability on tax witholdings on unvested restricted share units reclassified in to equity | € | € 21 | ||||||||
Accrued portion of cash payment reclassified from equity | € | € 16 | ||||||||
Repurchases of share-based payments | € | € 27 | ||||||||
Performance Share Units | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Number of other equity instruments outstanding in share-based payment arrangement | shares | 1,200,000 | 1,300,000 | 1,400,000 | ||||||
Weighted average grant date fair value (in USD per share) | $ / shares | $ 42.66 | $ 44.19 | $ 45.81 | ||||||
2014 Performance Share Units | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Payout rate as a percentage of target award | 175.00% | 175.00% | |||||||
2015 Performance Share Awards | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Payout rate as a percentage of target award | 100.00% | 100.00% | |||||||
CCE | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Number of options converted (in shares) | shares | 7,462,690 | ||||||||
Number of options granted as part of conversion (in shares) | shares | 9,900,496 | ||||||||
Cash paid per acquiree share (in USD per share) | $ / shares | $ 14.50 | ||||||||
CCE | Restricted Share Units | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Shares issued for each share of acquiree shares held (in shares) | shares | 1 |
SHARE-BASED PAYMENTS PLANS - Ac
SHARE-BASED PAYMENTS PLANS - Activity of Share Option Activity (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | |
Share-Based Payment Arrangements [Abstract] | |||
Beginning balance (in shares) | shares | 8,579,000 | 9,435,000 | 8,136,000 |
Granted (in shares) | shares | 0 | 0 | 0 |
Exercised (in shares) | shares | (2,037,000) | (842,000) | (1,347,000) |
Forfeited, expired or cancelled (in shares) | shares | 0 | (14,000) | (12,000) |
Adjustment for option conversion (in shares) | shares | 2,658,000 | ||
Ending balance (in shares) | shares | 6,542,000 | 8,579,000 | 9,435,000 |
Options exercisable (in shares) | shares | 6,542,000 | 8,417,000 | 8,701,000 |
Beginning balance (in USD per share) | $ | $ 23.58 | $ 23.03 | $ 29.17 |
Granted (in USD per share) | $ | 0 | 0 | 0 |
Exercised (in USD per share) | $ | 14.16 | 17.48 | 14.61 |
Forfeited, expired or cancelled (in USD per share) | $ | 0 | 24.61 | 32.22 |
Adjustment for option conversion (in USD per share) | $ | 37.05 | ||
Ending balance (in USD per share) | $ | 26.51 | 23.58 | 23.03 |
Options exercisable (in USD per share) | $ | $ 26.51 | $ 23.28 | $ 21.77 |
SHARE-BASED PAYMENTS PLANS - Ra
SHARE-BASED PAYMENTS PLANS - Range of Exercise Prices for Options Outstanding (Details) | Dec. 31, 2018USD ($)sharesyear | Dec. 31, 2017sharesyear | Dec. 31, 2016sharesyear | Dec. 31, 2015shares |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Options outstanding | shares | 6,542,000 | 8,579,000 | 9,435,000 | 8,136,000 |
Weighted average remaining life | year | 4.21 | 4.62 | 5.37 | |
5.00 to 15.00 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Options outstanding | shares | 713,000 | 1,987,000 | 2,532,000 | |
Weighted average remaining life | year | 0.84 | 1.37 | 2.09 | |
15.01 to 25.00 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Options outstanding | shares | 2,459,000 | 2,882,000 | 3,060,000 | |
Weighted average remaining life | year | 2.94 | 3.98 | 5.01 | |
25.01 to 40.00 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Options outstanding | shares | 3,370,000 | 3,710,000 | 3,843,000 | |
Weighted average remaining life | year | 5.84 | 6.85 | 7.83 | |
Low | 5.00 to 15.00 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price of options outstanding (in USD per share) | $ 5 | |||
Low | 15.01 to 25.00 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price of options outstanding (in USD per share) | 15.01 | |||
Low | 25.01 to 40.00 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price of options outstanding (in USD per share) | 25.01 | |||
High | 5.00 to 15.00 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price of options outstanding (in USD per share) | 15 | |||
High | 15.01 to 25.00 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price of options outstanding (in USD per share) | 25 | |||
High | 25.01 to 40.00 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price of options outstanding (in USD per share) | $ 40 |
SHARE-BASED PAYMENTS PLANS - Ke
SHARE-BASED PAYMENTS PLANS - Key Assumptions for Grant-Date Fair Value (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2016 |
Service, performance and market conditions | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date fair value, restricted share units (in USD per share) | $ 41.62 | $ 38.95 |
Service and performance conditions | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date fair value, restricted share units (in USD per share) | $ 41.76 | $ 37.78 |
PROVISIONS, CONTINGENCIES AND_3
PROVISIONS, CONTINGENCIES AND COMMITMENTS - Disclosure of Provisions (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | € 242 | € 310 |
Additional provisions recognised | 242 | 196 |
Unused amounts reversed | (23) | (25) |
Utilised during the period | (209) | (241) |
Translation | 2 | |
Ending balance | 252 | 242 |
Non-current | 119 | 48 |
Current | 133 | 194 |
Restructuring provision | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 216 | 289 |
Additional provisions recognised | 236 | 186 |
Unused amounts reversed | (23) | (22) |
Utilised during the period | (206) | (238) |
Translation | 1 | |
Ending balance | 223 | 216 |
Non-current | 99 | |
Current | 124 | |
Decommissioning provision | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 13 | 12 |
Additional provisions recognised | 4 | 1 |
Unused amounts reversed | 0 | 0 |
Utilised during the period | (1) | (1) |
Translation | 1 | |
Ending balance | 16 | 13 |
Non-current | 16 | |
Current | 0 | |
Other Provisions | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 13 | 9 |
Additional provisions recognised | 2 | 9 |
Unused amounts reversed | 0 | (3) |
Utilised during the period | (2) | (2) |
Translation | 0 | |
Ending balance | 13 | € 13 |
Non-current | 4 | |
Current | € 9 |
PROVISIONS, CONTINGENCIES AND_4
PROVISIONS, CONTINGENCIES AND COMMITMENTS - Narrative (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of other provisions [line items] | |||
Purchase commitments | € 700 | ||
Capital expenditure purchase orders | 148 | ||
Rent expense under non-cancellable operating lease agreements | € 119 | € 120 | € 92 |
Low | Leased Buildings | Decommissioning provision | |||
Disclosure of other provisions [line items] | |||
Settlement ranges for provisions | 1 year | ||
Low | Cold-drink equipment | Decommissioning provision | |||
Disclosure of other provisions [line items] | |||
Settlement ranges for provisions | 3 years | ||
High | Leased Buildings | Decommissioning provision | |||
Disclosure of other provisions [line items] | |||
Settlement ranges for provisions | 10 years | ||
High | Cold-drink equipment | Decommissioning provision | |||
Disclosure of other provisions [line items] | |||
Settlement ranges for provisions | 13 years | ||
Territorial Authority | Guarantees | |||
Disclosure of other provisions [line items] | |||
Guarantees issued to authorities | € 295 | ||
Third Parties, Other Than Territorial Authorities | Guarantees | |||
Disclosure of other provisions [line items] | |||
Guarantees issued to authorities | € 80 |
PROVISIONS, CONTINGENCIES AND_5
PROVISIONS, CONTINGENCIES AND COMMITMENTS - Operating Lease Maturities (Details) € in Millions, $ in Millions | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017EUR (€) |
Disclosure of finance lease and operating lease by lessee [line items] | |||
Total minimum lease payments | $ 300 | € 290 | |
Within one year | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Total minimum lease payments | € 94 | 90 | |
After one year but not more than five years | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Total minimum lease payments | 169 | 163 | |
More than five years | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Total minimum lease payments | € 37 | € 37 |
OTHER ASSETS - Other Current A
OTHER ASSETS - Other Current Assets (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Prepayments | € 47 | € 45 |
VAT receivables | 17 | 273 |
Miscellaneous receivables | 114 | 124 |
Assets held for sale | 15 | 10 |
Total other current assets | € 193 | € 452 |
OTHER ASSETS - Other Non-Curre
OTHER ASSETS - Other Non-Current Assets (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Subclassifications of assets, liabilities and equities [abstract] | ||
VAT receivables | € 318 | € 0 |
Retirement benefit surplus | 21 | 24 |
Other | 57 | 57 |
Total other non-current assets | € 396 | € 81 |
OTHER ASSETS - Narrative (Detai
OTHER ASSETS - Narrative (Details) - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Spanish Tax Authorities | ||
Disclosure of geographical areas [line items] | ||
Value added tax receivables | € 318 | € 235 |
FINANCIAL RISK MANAGEMENT - Nar
FINANCIAL RISK MANAGEMENT - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2018EUR (€)banks | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | |
Multi-currency Credit Facility | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Credit facility | € 1,500,000,000 | ||
Number of credit facility banks | banks | 10 | ||
Interest rate risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in rate | 1.00% | 1.00% | |
Currency exchange risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of anticipated commodity transaction exposures that are hedged | 80.00% | ||
Commodity | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in rate | 10.00% | ||
Percentage of anticipated commodity transaction exposures that are hedged | 80.00% | ||
Change in risk variable impact on equity | € 37,000,000 | ||
Credit risk | Low | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Accounts receivable term | 30 days | ||
Credit risk | High | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Accounts receivable term | 60 days | ||
Fixed interest rate | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of interest-bearing borrowings which were comprised of fixed-rate borrowings | 77.00% | ||
Fixed interest rate | Interest rate risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Percentage of interest-bearing borrowings which were comprised of fixed-rate borrowings | 87.00% | 77.00% | |
Floating interest rate | Interest rate risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in rate | 1.00% | ||
Annual change in finance costs and pre-tax equity | € 6,000,000 | € 12,000,000 | € 15,000,000 |
FINANCIAL RISK MANAGEMENT - Cur
FINANCIAL RISK MANAGEMENT - Currency Risk (Details) - Euro - Foreign currency - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in currency rate | 10.00% | 10.00% | 10.00% |
€ strengthens against US$ | € 85 | € 81 | € 92 |
€ weakens against US$ | € (93) | € (89) | € (101) |
FINANCIAL RISK MANAGEMENT - Liq
FINANCIAL RISK MANAGEMENT - Liquidity Risk (Details) - Liquidity risk - EUR (€) € in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Trade accounts payable | € 2,327 | € 2,282 |
Amounts payable to related parties | 191 | 178 |
Borrowings | 5,626 | 5,792 |
Derivatives | 71 | 94 |
Total financial liabilities | 8,215 | 8,346 |
Less than 1 year | ||
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Trade accounts payable | 2,327 | 2,282 |
Amounts payable to related parties | 191 | 178 |
Borrowings | 491 | 274 |
Derivatives | 20 | 1 |
Total financial liabilities | 3,029 | 2,735 |
1 to 3 years | ||
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Trade accounts payable | 0 | 0 |
Amounts payable to related parties | 0 | 0 |
Borrowings | 1,584 | 1,320 |
Derivatives | 51 | 93 |
Total financial liabilities | 1,635 | 1,413 |
3 to 5 years | ||
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Trade accounts payable | 0 | 0 |
Amounts payable to related parties | 0 | 0 |
Borrowings | 1,057 | 1,722 |
Derivatives | 0 | 0 |
Total financial liabilities | 1,057 | 1,722 |
More than 5 years | ||
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Trade accounts payable | 0 | 0 |
Amounts payable to related parties | 0 | 0 |
Borrowings | 2,494 | 2,476 |
Derivatives | 0 | 0 |
Total financial liabilities | € 2,494 | € 2,476 |
GROUP COMPANIES (Details)
GROUP COMPANIES (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Birtingahúsið ehf. | |
Disclosure of associates [line items] | |
% equity interest | 34.50% |
CC Digital GmbH | |
Disclosure of associates [line items] | |
% equity interest | 50.00% |
Infineo Recyclage SAS | |
Disclosure of associates [line items] | |
% equity interest | 49.00% |
Svenska Brettbolaget AB | |
Disclosure of associates [line items] | |
% equity interest | 19.60% |
Agua De La Vega Del Codorno, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Aguas De Santolin, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Aguas Del Maestrazgo, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Aguas Del Toscal, S.A.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Aguas Vilas Del Turbon, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Amalgamated Beverages Great Britain Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
BBH Investment Ireland Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Bebidas Gaseosas Del Noroeste, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Beganet, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
BH Holdings Lux Commandite SCS | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
BH Holdings Luxembourg SARL | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
BH Luxembourg SARL | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
BH SARL | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Bottling Great Britain Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Bottling Holdings (Luxembourg) SARL | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Bottling Holdings (Netherlands) B.V. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Bottling Holdings Europe Limited | |
Disclosure of associates [line items] | |
% equity interest | 99.99% |
% Equity interest directly held | 38.30% |
Bottling Holdings Europe Limited | Ordinary Share Class A | |
Disclosure of associates [line items] | |
% Equity interest directly held | 100.00% |
Bottling Holdings Europe Limited | Ordinary Share Class B | |
Disclosure of associates [line items] | |
% Equity interest directly held | 49.00% |
Bottling Holding France SAS | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
CC Erfrischungsgetränke Oldenburg Verwaltungs GmbH | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
CC Iberian Partners Gestion S.L. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
CC Verpackungsgesellschaft mit beschraenkter Haftung | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
CCEP Group Services Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
CCEP Holdings Norge AS | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
CCEP Holdings Sverige AB | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
CCEP Holdings UK Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
CCEP Ventures Europe Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
% Equity interest directly held | 100.00% |
CCEP Ventures UK Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
% Equity interest directly held | 100.00% |
CCIP Soporte, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Classic Brand (Europe) Designated Activity Company | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Cobega Embotellador, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Belgium SPRL | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Deutschland GmbH | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
% Equity interest directly held | 10.00% |
Coca-Cola European Partners France SAS | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Great Britain Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Holdings Great Britain Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Holdings US, Inc. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
% Equity interest directly held | 100.00% |
Coca-Cola European Partners Iberia, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Ísland ehf. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Luxembourg SARL | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Nederland B.V. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Norge AS | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Pension Scheme Trustees Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Portugal Unipessoal, LDA | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Services Bulgaria EOOD | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Services Europe Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Services SPRL | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners Sverige AB | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners US II, LLC | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola European Partners US, LLC | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola Immobilier SCI | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Coca-Cola Production SAS | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Compañía Asturiana De Bebidas Gaseosas, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Compañía Castellana De Bebidas Gaseosas, S.L. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Compañía Levantina De Bebidas Gaseosas, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Compañía Norteña De Bebidas Gaseosas, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Compañía Para La Comunicación De Bebidas Sin Alcohol, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Conversia IT, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Developed System Logistics, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
GBH Investment Ireland Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
GBH Luxembourg SARL | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
GH Luxembourg SCS | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
GR Bottling Holdings UK Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
% Equity interest directly held | 100.00% |
Herdt Verwaltungsgesellschaft mit beschränkter Haftung i.L | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Instelling voor Bedrijfspensioenvoorziening Coca-Cola European Partners Belgium/Coca-Cola European Partners Services – Bedienden-Arbeiders OFP | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Instelling voor Bedrijfspensioenvoorziening Coca-Cola European Partners Belgium/Coca-Cola European Partners Services – Kaderleden OFP | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Iparbal, 99 S.L. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
IPARSOFT, 2004 S.L. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Kollex GmbH | |
Disclosure of associates [line items] | |
% equity interest | 33.30% |
Lusobega, S.L. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Madrid Ecoplatform, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Peña Umbria, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Refecon Águas S.A. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Refrescos Envasados Del Sur, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Refrige Sgps, S.A. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Roalba, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
Solares y Edificios Norteños, S.L.U. | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
WB Investment Ireland 2 Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
WB Investment Ireland Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
WBH Holdings Luxembourg SCS | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
WBH Luxembourg SARL | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
WIH UK Limited | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |
% Equity interest directly held | 100.00% |
Wir sind Coca-Cola Gesellschaft mit beschränkter Haftung | |
Disclosure of associates [line items] | |
% equity interest | 100.00% |