The Best Beer Company in a Better World - Anheuser-Busch InBev

Million euro
Carrying
amount
Contractual
cash flows
Less than
1 year
2007
Financial Report Annual Report 2008 | 109
1-2 years 2-5 years
More than
5 years
Non-derivative financial liabilities
Secured bank loans 371 (435) (113) (305) (17) -
Unsecured bank loans 4 119 (4 583) (1 253) (599) (1 927) (804)
Unsecured bond issues 1 953 (2 752) (353) (828) (1 072) (499)
Unsecured other loans 161 (184) (25) (33) (82) (44)
Finance lease liabilities 15 (18) (4) (2) (12) -
Secured bank facilities 4 (4) (4) - - -
Bank overdraft 80 (80) (80) - - -
Trade & other payables 4 244 (4 247) (3 929) (284) (4) (30)
Derivative financial liabilities
10 947 (12 303) (5 761) (2 051) (3 114) (1 377)
Interest rate derivatives (34) 14 2 2 22 (12)
Foreign exchange derivatives (128) 72 2 13 57
Interest rate and foreign exchange derivatives 400 (669) (264) (64) (157) (184)
Commodity derivatives 8 (8) (8) - - -
Other derivatives (1) 1 1 - - -
(245) (590) (267) (49) (78) (196)
Of which : directly related to cash flow hedges (142) 113 (2) 22 86 7
(H) Capital management
AB InBev is continuously optimizing its capital structure targeting to maximize shareholder value while keeping the desired financial
flexibility to execute the strategic projects. Besides the statutory minimum equity funding requirements that apply to our subsidiaries in
the different countries, AB InBev is not subject to any externally imposed capital requirements. When analyzing our capital structure we use
the same debt/equity classifications as applied in our IFRS reporting.
(I) Fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length
transaction. In conformity with IAS 39 all derivatives are recognized at fair value in the balance sheet.
The fair value of derivative financial instruments is either the quoted market price or is calculated using pricing models taking into account
current market rates. These pricing models also take into account the current creditworthiness of the counterparties.
The fair value of these instruments generally reflects the estimated amount that AB InBev would receive on the settlement of favorable
contracts or be required to pay to terminate unfavorable contracts at the balance sheet date, and thereby takes into account any unrealized
gains or losses on open contracts.