25 – Other Financial Obligations

The figures listed below are stated at nominal value:

Other financial obligations (Million €)

 


December 31, 2018

December 31, 2017

Bills of exchange

 

7

9

Guarantees

 

75

11

Warranties

 

50

49

Collateral granted on behalf of third-party liabilities

 

1

1

Initiated investment projects

 

7,094

4,109

of which purchase commitments

 

1,249

1,045

for the purchase of intangible assets

 

19

16

Payment and loan commitments and other financial obligations

 

68

19

BASF provides unlimited guarantees, particularly to the Danish government as well as the state-owned company Nordsøfonden, as a precondition for the exploration for and production of hydrocarbons in the Danish concession area by the joint venture Wintershall Noordzee B.V., Rijswijk, Netherlands, which is allocated to the disposal group. BASF’s 100% contingent liability under these guarantees is partially countered by the joint venture partner’s 50% guarantees in favor of BASF. Drawing on these guarantees was not foreseeable as of December 31, 2018.

Assets used under long-term leases

Assets used under long-term leases primarily concerned buildings, vehicles and transportation equipment.

Obligations arising from long-term leases (excluding finance leases) (Million €)

2019


403

2020

 

272

2021

 

197

2022

 

140

2023

 

111

2024 and maturities beyond this year

 

359

Total

 

1,482

As of December 31, 2018, the companies allocated to the disposal group accounted for €144 million.

Obligations arising from purchase contracts

Obligations arising from purchase contracts resulted primarily from long-term purchase obligations for raw materials. Firm purchase obligations as of December 31, 2018, were as follows:

Obligations arising from purchase contracts (Million €)

2019


8,393

2020

 

5,412

2021

 

4,424

2022

 

3,937

2023

 

2,891

2024 and maturities beyond this year

 

5,023

Total

 

30,080

As of December 31, 2018, the companies allocated to the disposal group accounted for €5,406 million.

Further possible obligations arising from agreements existing as of December 31, 2018 are shown under Note 2.4, Acquisitions and divestitures.