E_mg_GB_03_vorne-29_3_04

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12) Deferred Income
Deferred income consists of the following:
12/31/2003 12/31/2002
u ’000 t ’000
Sale-and-leaseback arrangements 30,029 34,267
Deferred option premiums 4,143 7,692
Other deferrals 3,294 8,637
Total 37,466 50,596
Gains from sale-and-leaseback arrangements were deferred and recognized by way of a reduction
of related rental expense. As of December 31, 2003, a22.721 million (prior year: a38.413 million) of
deferred income is to be recognized after more than one year.
13) Commitments and Contingencies
Commitments and contingencies not shown on the balance sheet at December 31, 2003 were as follows:
Continued operations
12/31/2003 12/31/2002
u ’000 t ’000
Liabilities on guarantees 27,981 38,685
Liabilities on warranties 42,830 47,879
Liabilities from providing collateral for third-party liabilities 3,579 3,656
Liabilities on notes 366 200
Discontinued operations
74,756 90,420
Liabilities on guarantees 9,972 8,267
Liabilities on warranties -
Liabilities from providing collateral for third-party liabilities - -
Liabilities on notes - -
9,972 8,267
Total 84,728 98,687
Liabilities on guarantees mainly consisted of advance payment guarantees, performance bonds,
guarantees for warranty obligations and guarantees for bank loans provided on behalf of related
companies. Liabilities on guarantees for continued operations largely relate to GEA, Lurgi Lentjes,
and Zimmer. The liabilities on guarantees for discontinued operations all relate to solvadis.
Liabilities on warranties during the year under review related largely to divested companies. They
also relate to security for pension commitments and warranties on customer contracts. There is also
loan collateral for related companies.
The likely maturity of contingent liabilities arising from guarantees and warranties is up to five years.
There are also contingencies with maturity periods that depend on the performance of contractually
agreed obligations or the occurrence of certain events. These contingent liabilities are largely to
customers, banks and employees of former subsidiaries. mg is faced with claims under its guarantees
if the debtor is unable to meet its contractual obligations.