Boskalis jaarverslagen 2011

28. Commitments and contingent liabilities

Operational lease obligations
The operational lease obligations relate primarily to the operational lease of a trailing suction hopper dredger (at year-end 2010), cars and offices. Additional clauses are not taken into account presuming that these are not unconditional.

Non-redeemable operating lease contracts are recognized at nominal amounts and are due as follows:

    2011   2010
Within one year   27,152   22,563
Between one and five years   32,592   33,663
After more than five years   5,741   7,068
    65,485   63,294

The guarantee commitments as at December 31, 2011 amount to € 960 million (2010: € 812 million) and can be specified as follows:

    2011   2010
Guarantees provided by third parties with respect to:        
Associated companies   10,000   8,000
Contracts and joint ventures   948,000   804,000
Lease obligations and other financial obligations   2,000  
    960,000   812,000

For the above guarantees outstanding as at December 31, 2011, counter-guarantees have been provided to financial institutions for approximately € 958 million (2010: approximately € 804 million). Nineteen key Group companies are jointly and severally liable in respect of credit facilities and guarantees provided to several Group companies. In respect of these credit facilities, it has been agreed to limit the provision of further securities on existing property, plant and equipment.

Group companies are jointly and severally liable for the non-consolidated part of the liabilities of their joint ventures: in total € 150 million (2010: € 189 million). Group companies are also jointly and severally liable for performance obligations for contracts with third parties in project-driven construction consortiums. In addition, certain recourse obligations exist in respect of project financiers and guarantees of deployment relating to equipment. Where deemed necessary, provisions have been made.

Capital commitments
At year-end 2011, capital commitments amount to € 193 million (year-end 2010: € 93 million).

Some legal proceedings and investigations have been instituted against (entities of) Royal Boskalis Westminster N.V. Where deemed necessary and if a reliable estimate of the future cash flows can be made, provisions have been made. Dutch companies were part of a fiscal unity. The companies are therefore liable for the tax obligations of the fiscal unity as a whole.


Added to My report add to My report Source: Annual report 2011, page 107