22 – Liabilities

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Financial indebtedness (million €)
			Carrying amounts based on effective interest method
	Nominal volume (million, currency of issue)	Effective interestrate	2011	2010
1 Interest rate swaps were concluded in July 2011 to hedge against interest rate risks for the 3.75% Euro Bond of BASF SE. Fair value hedge accounting is applied in this context, resulting in an adjustment of the carrying amount of the bond by €8 million.
4% Euro Bond 2006/2011 of BASF SE	1,000	4.05 %	–	1,000
3.375% Euro Bond 2005/2012 of BASF SE	1,400	3.42 %	1,400	1,399
3.75% Euro Bond 2009/2012 of BASF SE	1,350	3.97 %	1,3561	1,345
4.5% Euro Bond 2006/2016 of BASF SE	500	4.62 %	498	497
4.25% Euro Bond 2009/2016 of BASF SE	200	4.40 %	199	199
5.875% GBP Bond 2009/2017 of BASF SE	400	6.04 %	475	461
4.625% Euro Bond 2009/2017 of BASF SE	300	4.69 %	299	299
3.25% CHF Bond 2008/2011 of BASF Finance Europe N.V.	300	3.39 %	–	240
6% Euro Bond 2008/2013 of BASF Finance Europe N.V.	1,250	6.15 %	1,247	1,245
5% Euro Bond 2007/2014 of BASF Finance Europe N.V.	1,000	5.09 %	998	997
5% Euro Bond 2007/2014 of BASF Finance Europe N.V.	250	4.83 %	251	251
3.625% CHF Bond 2008/2015 of BASF Finance Europe N.V.	200	3.77 %	164	159
5.125% Euro Bond 2009/2015 of BASF Finance Europe N.V.	1,500	5.30 %	1,492	1,489
5.125% Euro Bond 2009/2015 of BASF Finance Europe N.V.	500	4.38 %	511	515
4.5% Euro Medium Term Note 2009/2016 of BASF Finance Europe N.V.	150	4.56 %	150	150
3.25% CHF Bond 2006/2012 of Ciba Spezialitätenchemie Finanz AG	225	3.32 %	184	177
4.875% Euro Bond 2003/2018 of Ciba Spec. Chem. Finance Luxemb. S.A.	477	4.88 %	409	401
USD commercial paper			–	1,384
Other bonds			667	696
Bonds and other liabilities to the capital markets			10,300	12,904
Liabilities to credit institutions			2,704	2,135
			13,004	15,039

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Breakdown of financial indebtedness by currency (million €)
	2011	2010
Euro	10,411	10,980
U.S. dollar	752	2,177
British pound	560	543
Chinese renminbi	557	391
Swiss franc	347	576
Brazilian real	144	205
South Korean won	51	–
Turkish lira	40	18
South African rand	39	28
Argentinean peso	26	30
Other	77	91
	13,004	15,039

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Maturities of financial indebtedness (million €)
	2011	2010
Following year 1	3,985	3,369
Following year 2	1,513	3,112
Following year 3	1,964	2,100
Following year 4	2,234	1,321
Following year 5	1,541	2,539
Following year 6 and thereafter	1,767	2,598
	13,004	15,039

Bonds and other liabilities to the capital markets

Other bonds consist primarily of industrial revenue and pollution control bonds of the BASF Corporation group that are used to finance investments in the United States. The weighted-average interest rate of these bonds was 2.2% in 2011 (2010: 2.2%). The weighted-average effective interest rate amounted to 2.2% in 2011 and 2010 and their average residual term amounted to 211 months as of December 31, 2011, and 222 months as of December 31, 2010.

Liabilities to credit institutions

In order to finance investments in natural gas infrastructure, €643 million was borrowed at an interest rate of 3.5% by WINGAS GmbH & Co. KG. The weighted-average interest rate on loans was 4.4% in 2011 (2010: 3.6%).

BASF SE had committed and unused credit lines with variable interest rates of €4,739 million as of December 31, 2011, and €4,490 million as of December 31, 2010.

Other liabilities

The increase in other liabilities in 2011 related, among other things, to negative fair values of derivatives concluded to hedge against currency fluctuations and rising raw material prices.

Other liabilities included the non-consolidated proportionate amount of liabilities to companies accounted for using the proportional consolidation method of €259 million in 2011, and €195 million in 2010, thereof miscellaneous liabilities of €96 million in 2011, and €57 million in 2010. Further miscellaneous liabilities relating to participations accounted for using the equity or cost method amounted to €258 million in 2011, and €261 million in 2010. Precious metal derivatives that were contained in miscellaneous liabilities amounting to €74 million in 2010 were reclassified into derivatives with negative market values. The previous year’s figures have been adjusted accordingly.

For more information on financial risks and derivative financial instruments, see Note 25
For more information on finance lease payables, see Note 26

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Other liabilities (million €)
	2011			2010
	Short-term	Long-term		Short-term	Long-term
Liabilities on bills	46	4		73	2
Non-trade liabilities to partners in jointly controlled entities	221	431		314	433
Derivative instruments with negative fair values	582	176		443	7
Liabilities arising from finance leases	10	50		10	49
Accrued interest on bonds and other loans	202	1		247	–
Miscellaneous liabilities	786	90		450	70
Other liabilities which qualify as financial instruments	1,847	752		1,537	561
Advances received on orders	272	–		283	–
Liabilities related to social security	152	23		166	26
Employee liabilities	299	159		328	94
Deferred income	128	173		154	203
Miscellaneous liabilities	338	35		334	17
Other liabilities which qualify as non-financial instruments	1,189	390		1,265	340
Total	3,036	1,142		2,802	901

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Secured liabilities (million €)
	2011	2010
Liabilities to credit institutions	3	14
Miscellaneous liabilities	20	26
	23	40