Registration document 2007 - Total.com
Registration document 2007 - Total.com
Registration document 2007 - Total.com
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9<br />
A) Contractual obligations<br />
Debt obligations<br />
“Non-current debt obligations” are included in the items “Noncurrent<br />
financial debt” and “Hedging instruments of non-current<br />
financial debt” of the balance sheet. It includes the non-current<br />
portion of issue swaps and swaps hedging debenture loans, and<br />
excludes non-current finance lease obligations of 371 M€.<br />
The current portion of non-current debt is included in the items<br />
“Current borrowings”, “Current financial assets” and “Other<br />
current financial liabilities” of the balance sheet. It includes the<br />
current portion of issue swaps and swaps hedging debenture<br />
loans and excludes the current portion of finance lease<br />
obligations of 29 M€.<br />
The information regarding contractual obligations linked to<br />
indebtedness is presented in the note 20 to the consolidated<br />
financial statements.<br />
Lease contracts<br />
The information regarding operating and finance leases is<br />
presented in the note 22 to the consolidated financial<br />
statements.<br />
Asset retirement obligations<br />
This item represents the discounted present value of Upstream<br />
asset retirement obligations, primarily asset removal costs at the<br />
<strong>com</strong>pletion date. The information regarding contractual<br />
obligations linked to asset retirement obligations is presented in<br />
the note 19 to the consolidated financial statements.<br />
Purchase obligations<br />
Purchase obligations are obligations under contractual<br />
agreements to purchase goods or services, including capital<br />
projects, that are enforceable and legally binding on the<br />
<strong>com</strong>pany, and that specify all significant terms, including the<br />
amount and the timing of the payments. These obligations<br />
include mainly: hydrocarbon unconditional purchase contracts<br />
(except where an active, highly-liquid market exists and which are<br />
expected to be re-sold shortly after purchase), reservation of<br />
transport capacities in pipelines, unconditional exploration works<br />
and development works in Upstream, and contracts for capital<br />
investment projects in Downstream.<br />
216<br />
Appendix 1 – Consolidated financial statements<br />
Notes to the consolidated financial statement<br />
TOTAL – <strong>Registration</strong> Document 2006<br />
B) Other <strong>com</strong>mitments given<br />
Guarantees given for excise taxes<br />
Guarantees given on customs duties, which amount to 1,807 M€<br />
as of December 31, 2006, mainly consist of guarantees given to<br />
other oil and gas <strong>com</strong>panies in order to <strong>com</strong>ply with French tax<br />
authorities’ requirements for oil and gas imports in France. A<br />
payment would be triggered by a failure of the guaranteed party<br />
with respect to the French tax authorities. The default of the<br />
guaranteed parties is however considered to be highly remote by<br />
the Group.<br />
Collateral given against borrowings<br />
The Group guarantees bank debt and finance lease obligations of<br />
certain unconsolidated affiliates. Expiration dates vary, and<br />
guarantees will terminate on payment and/or cancellation of the<br />
obligation. A payment would be triggered by failure of the<br />
guaranteed party to fulfill its obligation covered by the guarantee,<br />
and no assets are held as collateral for these guarantees. The<br />
amount of these guarantees total approximately 1,079 M€ as of<br />
December 31, 2006 for debt guarantees with maturities up to<br />
2019.<br />
Indemnities related to sales of businesses<br />
In the ordinary course of business, the Group executes contracts<br />
involving standard indemnities in the industry and<br />
indemnifications specific to a transaction such as sale of a<br />
business. These indemnifications might include claims against<br />
any of the following: environmental, tax and shareholder matters,<br />
intellectual property rights, governmental regulations and<br />
employment-related matters, dealer, supplier, and other<br />
<strong>com</strong>mercial contractual relationships. Performance under these<br />
indemnities would generally be triggered by a breach of terms of<br />
the contract or by a third party claim. The Group regularly<br />
evaluates the probability of having to incur costs associated with<br />
these indemnifications.<br />
Guarantees related to business sales consist mainly of<br />
guarantees given for the sale of the Inks division in 1999 and the<br />
sale of the Paints business in 2003.<br />
The guarantees related to antitrust investigations granted as part<br />
of the agreement relating to the spin-off of Arkema are described<br />
in note 30 to the consolidated financial statements.