QIAGEN N.V. Annual Report 2001

. Purchase Commitments
At December 31, 2001, the Company had commitments with several vendors to purchase certain products during
2002, 2003 and 2004 totaling approximately $9.0 million, $4.8 million and $7.5 million, respectively.
c. Commitments
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QIAGEN Sciences, Inc. (Sciences) had contractually committed to approximately $51.5 million related to the
construction of an approximately 200,000 square foot facility located in Germantown, Maryland. During 2001, most
of the costs related to this commitment were incurred. The total project cost is estimated to cost approximately
$55.3 million. At December 31, 2001, construction and overhead costs of approximately $52.8 million had been
incurred with estimated costs to complete of approximately $2.5 million. The new facility construction is expected to
be completed in 2002, with manufacturing activities initiated in the second quarter of 2002.
During October 2000, the Company began construction of two new facilities in Germany with estimated completion
during the third quarter of 2002. The estimated cost for these facilities is approximately EUR 54.0 million (approximately
$48.1 million at December 31, 2001) of which EUR 39.5 million (approximately $35.2 million) has been incurred.
In October 1998, the Company announced that it had signed a five-year supply agreement with Abbott Laboratories
(Abbott). According to the agreement, the Company will supply Abbott with various proprietary nucleic acid sample
purification and preparation products. Under the terms of this agreement, Abbott has committed to certain purchases
of the Company’s products over the term of the contract. The Company has committed to certain expansions of its
production capacity and product quality and has received payments for such achievements.
d. Contingencies
The Company is a party to legal proceedings incidental to its business. Certain claims, suits or complaints arising out
of the normal course of business have been filed or were pending against the Company. Although it is not possible to
predict the outcome of such litigation, based on the facts known to the Company and after consultation with legal counsel,
management believes that such litigation will not have a material effect on its financial position or results of operations.
During the normal course of business, the Company is subject to audit by taxing authorities for varying periods in
various tax jurisdictions. Such matters may involve substantial amounts, and if these were to be ultimately resolved
unfavorably to the full amount of their maximum potential exposure, an event not currently anticipated, it is possible
that such an event could have a material effect on the Company’s cash position and results of operations.
16. EMPLOYEE BENEFITS
In September 1992, QIAGEN, Inc. (Valencia) adopted the QIAGEN, Inc. Employees 401(k) Savings Plan (the Plan).
The purpose of the Plan is to provide retirement benefits to all eligible employees, which include employees of
QIAGEN, Inc., QIAGEN Sciences, Inc. and QIAGEN Genomics, Inc. Matching contributions and profit sharing
contributions may be made to the Plan at the discretion of the Board of Directors. In 2001, 2000 and 1999, total
matching contributions to the Plan were approximately $701,000, $600,000 and $226,000, respectively.
Operon adopted a defined contribution plan effective January 1, 1994, benefiting substantially all Operon employees.
Operon may make matching contributions at the discretion of the Board of Directors. In 2001, 2000 and 1999
matching contributions to the plan totaled approximately $144,000, $108,000 and $74,000, respectively.
As of December 31, 2001, QIAGEN GmbH has deferred compensation plans for one officer and one employee.
The present value of the future compensation obligation of $200,000, $171,000 and $173,000 has been accrued
in the accompanying consolidated financial statements at December 31, 2001, 2000 and 1999, respectively.
During 1999, QIAGEN KK established a retirement plan for one officer. The employee is entitled to a lump
sum distribution based on a formula tied to years of service. As such an amount of $215,000, $187,000 and
$145,000 has been accrued in the accompanying consolidated financial statements at December 31, 2001, 2000
and 1999, respectively.