Engineering

3.6 Consolidated financial statements Notes to the consolidated financial statements
3.6 Consolidated financial statements Notes to the consolidated financial statements
violations. It is not yet possible at the reporting date to estimate the
amount of any fine. As well as a fine by the Federal Cartel Office, it
must be expected that customers may file claims for damages.
Concrete claims for damages have not yet been filed.
In addition ThyssenKrupp is involved in pending and threatened
litigation in connection with the purchase and sale of certain
companies, which may lead to partial repayment of purchase price or
to the payment of damages. In addition, damage claims may be
payable to contractual partners, customers, consortium partners and
subcontractors under performance contracts. Some of these claims
have proven unfounded, have been ended by settlement or expired
under the statute of limitations. A number of these proceedings are still
pending. However, at present ThyssenKrupp does not expect pending
lawsuits not explained separately in this section to have a major
negative impact on the financial position.
Commitments and other contingencies
The Group is the lessee to property, plant and equipment classified as
operating leases. Rental expense amounting to €329 million
(2009/2010: €312 million) resulting from rental contracts, long-term
leases and leasing contracts classified as operating leases was
incurred in fiscal 2010/2011. It comprises as follows:
million €
Year ended
Sept. 30,
2010
Year ended
Sept. 30,
2011
Minimum rental payments 310 329
Contingent rental payments 2 0
less income from sublease agreements 0 0
Total 312 329
The future minimum rental payments, excluding accrued interest from
such non-cancellable contracts that have an initial or remaining term of
more than one year as of the balance sheet date are (at face amounts):
million €
Sept. 30,
2010
Sept. 30,
2011
Not later than one year 228 226
Between one and five years 523 526
Later than five years 315 234
Total 1,066 986
The future minimum rental income from non-cancelable sublease
contracts amounting to €2 million (2009/2010: €2 million) is not
included in the total of future minimum rental payments.
The commitment to enter into investment projects amounts to €922
million (2010: €1,276 million) as of September 30, 2011 and relates
mainly to property, plant and equipment of the Steel Europe, Steel
Americas, Stainless Global and Components Technology business
areas.
Payment commitments and obligations to make further contributions to
corporations and cooperative associations exist in the total amount of
€3 million (2010: €3 million). In addition, other financial commitments
exist in the amount of €5,033 million (2010: €3,931 million), primarily
from the commitments to purchase coking coal, coal and lime under
long term supply contracts and obligations under ship-charter
contracts in the Steel Europe and Steel Americas business areas as
well as purchasing commitments resulting from the Group’s electricity
and gas supply contracts. In addition, in the Steel Europe and Steel
Americas business areas long term iron ore and iron ore pellets supply
contracts exist which will result in purchasing commitments over a
period of up to 13 years. Due to the high volatility of iron ore prices, the
measurement of the complete purchasing commitments is based on
the iron ore price as of the current balance sheet date resulting in
purchasing commitments of €28,425 million in total.
Based on the risk bearing ability of the Group or the Group companies,
there exist adequate deductibles in the various classes of insurance.
One or more damages at these units could noticeably impact the
Group’s net assets, financial position and results of operations.
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