BMW 2015 Annual Report Download - page 147

147 GROUP FINANCIAL STATEMENTS
in € million 31. 12. 2015 31. 12. 2014
Guarantees 93 33
Performance guarantees – 4
Other 213 84
Contingent liabilities 306 121
in € million 31. 12. 2015 31. 12. 2014
due within one year 371 299
due between one and five years 1,003 888
due later than five years 816 603
Other financial obligations 2,190 1,790
BMW Group
Notes to the Group Financial Statements
Other Disclosures
41
Contingent liabilities and other financial commitments
Contingent liabilities
No provisions were recognised for the following contingent liabilities (stated at estimated amounts), since an out-
flow of resources is not considered to be probable:
Contingent liabilities relate entirely to third parties.
Other contingent liabilities comprise mainly legal dis-
putes as well as risks relating to taxes and customs duties.
The BMW Group determines its best estimate of contin-
gent liabilities on the basis of the information available
at the date of preparation of the Group Financial State-
ments.
This assessment may change over time and is
adjusted regularly on the basis of new information and
circumstances. A part of these risks is insured where
this makes business sense.
In accordance with IAS 37, the BMW Group does not
disclose information relating to legal disputes and
risks relating to taxes and customs duties, if such dis-
closures could be expected to prejudice seriously the
position of the BMW Group or if disclosure is not
practicable.
From today’s perspective, the BMW Group does not
expect any pending proceedings to have a significant
adverse impact on the result of operations, financial
position and net assets of the Group.
Other financial commitments
In addition to liabilities, provisions and contingent lia-
bilities, the BMW Group also has other financial com-
mitments, primarily under lease contracts for land,
buildings, plant and machinery, tools, office and other
facilities. These contracts run for periods of one to
49 years. Some of them contain extension and purchase
options as well as price adjustment clauses, based on
index-linked or graduated rentals, including adjust-
ments for inflation. In 2015 an amount of € 315 million
(2014: € 350 million) was recognised as expense in con-
junction with operating leases. All of these amounts re-
late to minimum lease payments.
The total of future minimum lease payments under non-
cancellable and other operating leases can be analysed
by maturity as follows:
Other financial commitments include € 14 million (2014:
€ 7 million) in respect of obligations to non-consolidated
subsidiaries. No back-to-back operating leases were in
place at the end of the reporting period (2014: € 1 million).
Purchase commitments amounted to € 2,217 million
(2014: € 2,247 million) for property, plant and equipment
and € 757 million (2014: € 750 million) for intangible
assets.