Notes 31-35

31. Off-balance sheet commitments

In millions of EUR Total Less than
1 year		 1–5
years		 More than
5 years		 Total
2007
Guarantees to banks for loans (by third parties) 408 181 165 62 387
Other guarantees 89 20 13 56 78
Guarantees 497 201 178 118 465
 
Lease & operational lease commitments 378 66 195 117 242
Property, plant & equipment ordered 56 56 – – 49
Raw materials purchase contracts 1,318 216 393 709 604
Other off-balance sheet obligations 2,325 384 1,306 635 410
Off-balance sheet obligations 4,077 722 1,894 1,461 1,305
 
Undrawn committed bank facilities 1,640 56 1,584 – 2,014

Heineken leases buildings, cars and equipment.

Guarantees to banks for loans relate to loans to customers, which are given by external parties in the ordinary course of business of Heineken.

During the year ended 31 December 2008 €177 million (2007: €140 million) was recognised as an expense in the income statement in respect of operating leases and rent.

Other off-balance sheet obligations mainly include distribution, rental, service and sponsorship contracts.

Committed bank facilities are credit facilities on which a commitment fee is paid as compensation for the bank’s requirement to reserve capital. For the details of these committed bank facilities refer to note 24. The bank is legally obliged to provide the facility under the terms and conditions of the agreement.

The off-balance sheet obligations relating to own-use commodities are not included in the above information.