DSM Annual Report 2008 - Contingent liabilities and other financial obligations

23) Contingent liabilities and other financial obligations

	2008	2007

Operating leases and rents	70	34
Guarantee obligations on behalf of associates and third parties	65	58
Outstanding orders for projects under construction	16	15
Other	25	9

Total	176	116

Most of the outstanding orders for projects under construction will be completed in 2009. Property, plant and equipment under operating leases primarily concern catalysts, buildings and various equipment items.

The commitments for operating leases and rents are spread as follows:

2009	6
2010	13
2011	11
2012 and 2013	12
After 2013	28

Total	70

Litigation

The investigations into possible restrictive and/or concerted practices involving a number of EPDM producers, including DSM, which had been launched at the end of 2002 by the European Commission, the United States Department of Justice and the Canadian Competition Bureau, were closed mid 2006 without charges of any kind being brought against DSM or its affiliates. Several civil actions in the United States and Canada are still ongoing.

Claims have been received on account of the delivery by DSM Food Specialties of an allegedly defective intermediate product. No health risks are involved. Discussions are being held with most claimants aimed at an amicable solution whilst in one case litigation has been initiated. Possible liability is covered by insurance.

DSM has a process in place to monitor legal claims periodically and systematically.

Previous - 22) Current liabilities

Next - 24) Financial derivatives

Notes