PDF, 1.2 MB - Pfleiderer AG

2. Other financial obligations
3. Litigation and claims
4. Related party transactions
consolidated financial statements notes pfleiderer ag 111
The Group has concluded lease agreements on property, plant and equipment which do not
qualify as capital leases, but are carried as operating leases under US GAAP. Additionally, the
Group has entered into contracts for the maintenance of property, plant and equipment and
for a diverse range of services. Expenses charged in the Statement of Income under rental and
leasing agreements came to 30,398 thousand euros (2001: 25,366 thousand euros).
The following tables shows future (non-discounted) minimum lease payments arising from
contracts which cannot be cancelled and have an initial or residual term of more than one year
as of December 31, 2002:
‘000 euros
2003 28,459
2004 22,175
2005 19,448
2006 28,392
2007 4,826
After 2007 30,997
Total 134,297
The Group carried out sale and lease back transaction in fiscal 2001 in which co-generation
and production plants were sold and then leased back under an operating lease. The total
volume of these transactions was 65,509 thousand euros.
As of December 31, 2002 the Company has commitments from orders amounting to
57,952 thousand euros.
The Company occasionally is involved in litigation during the course of its business. The Company
is not aware of any events which could have a significant negative effect on its earnings,
liquidity or financial position.
Pfleiderer Unternehmensverwaltung GmbH & Co. KG has a substantial investment in Pfleiderer
AG (affiliate company) and is thus a related party to the Group. Business relations existed
in the previous fiscal year and the reporting year with this company and its affiliate Pfleiderer
Leasing GmbH & Co. KG, Delitzsch. The extent of business relations in 2002 is summarized
as follows:
‘000 euros
Interest income 1,365
Interest expenses 991
Income from allocation of costs 218
Expenses from allocation of costs 27
Rental expenses 1,182
Dividend payment 6,012