ANNUAL REPORT 2004 - ELMOS Semiconductor AG

GROUP STATUS REPORT FINANCIAL STATEMENTS GROUP STRUCTURE GLOSSARY
Financial statements
ÿ Notes
Auditor’s certificate
On December 22, 1997 the company sold its main commercial building (including land
and building improvements) for a total purchase price of 23,008,135 Euro. Concurrent
with the sale, the company leased the property back for a period of nine years, re-
garding building improvements, and 22.5 years, regarding building and land. Under
the lease terms, the company is committed to making combined annual lease pay-
ments of 1,942,772 Euro (1,121,180 Euro for building improvements and 821,592 Euro for
building and land) through 2006 and 1,917,207 Euro (for building and land) through
2020. Since the company has the option to repurchase the property from 2018, the
transaction has been recorded as a financing transaction rather than a sale, and the
building and building improvements continue to be recognized in the consolidated
financial statements at hand. The financing amount is entered as lease financing un-
der long-term obligations.
On July 7, 2000 the company sold a building extension (including building improve-
ments) for a total purchase price of 6,287,853 Euro. Concurrent with the sale, the com-
pany leased the property back for a period of 7.5 years, regarding building improve-
ments, and 22.5 years, regarding the building. Under the lease terms, the company is
committed to making combined annual lease payments of 1,074,788 Euro through
2007 and 60,872 Euro (for the building) through 2022. Since the company has the
option to repurchase the property from 2020, the transaction has been recorded as a
financing transaction rather than a sale, and the building and building improvements
continue to be recognized in the consolidated financial statements at hand. The fi-
nancing amount is entered as lease financing under long-term obligations.
On November 8, 2001 the company sold another of its commercial buildings and the
adjacent multi-story parking lot (including land and building improvements) for a
total purchase price of 11,643,000 Euro. Concurrent with the sale, the company leased
the property back for a period of 20 years. Under the lease terms, the company is
committed to making annual degressively falling lease payments, starting with the
amount of 1,016,125 Euro, through 2021. In the fourth quarter of 2003 the story-addi-
tion onto the administration building was completed. Total investment amounted to
3,419,000 Euro. Leasing installments to be paid come to annual 279,000 Euro through
2021. Since the company has the option to repurchase the property (building, parking
lot and story-addition) from 2021, the transaction has been recorded as a financing
transaction rather than a sale, and the buildings and building improvements conti-
nue to be recognized in the consolidated financial statements at hand. The financing
amount is entered as lease financing under long-term obligations.
elmos annual report 2004
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