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

Financial Report Annual Report 2008 | 111
Non-derivative financial liabilities
The fair value of non-derivate financial liabilities is calculated based on commonly-used valuation techniques (i.e. net present value of future
principal and interest cash flows discounted at market rate). These are based on market inputs from reliable financial information providers.
Fair values determined by reference to prices provided by reliable financial information providers are periodically checked for consistency
against other pricing sources.
(J) Significance of financial instruments for financial performance
The note at hand discloses the different elements composing AB InBev’s position towards financial risk and instruments. The effect of
AB InBev’s financial risk management on performance mainly materializes in the items of income, expense, gains or losses recognized in the
income statement or in the gains and losses directly recognized in equity (see note 11 Finance costs and income).
31. Operating leases
Leases as lessee
Non-cancelable operating leases are payable as follows :
Million euro 2008 2007
Less than one year 156 151
Between one and five years 575 533
More than five years 893 825
1 624 1 509
At 31 December 2008, 157m euro was recognized as an expense in the income statement in respect of operating leases as lessee (2007 : 132m euro).
The company leases a number of warehouses, factory facilities and other commercial buildings under operating leases. The leases typically
run for an initial period of five to ten years, with an option to renew the lease after that date. Lease payments are increased annually to reflect
market rentals. None of the leases include contingent rentals.
Subleases
AB InBev has sublet some of the leased properties. Non-cancelable operating subleases are receivable as follows :
Million euro 2008 2007
Less than one year 85 82
Between one and five years 265 319
More than five years 142 158
492 559
At 31 December 2008, 100m euro was recognized as an income in the income statement in respect of subleases (2007 : 77m euro).
Leases as lessor
The company leases out part of its property under operating leases. Non-cancelable operating leases are receivable as follows :
Million euro 2008 2007
Less than one year 8 14
Between one and five years 26 47
More than five years 11 22
45 83
At 31 December 2008, 13m euro was recognized as an income in the income statement in respect of operating leases as lessor (2007 : 47m euro).