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31. Contingencies and other financial commitments

Contingent liabilities relate to potential future events which, although regarded as improbable on the reporting date, cannot be ruled out and would create an obligation if they occurred.

Contingent liabilities resulted entirely from commitments given to third parties and comprised:

Contingent Liabilities	[Table 4.92]
	Dec. 31, 2008	Dec. 31, 2009
	€ million	€ million
Warranties	114	74
Miscellaneous	591	601
Total	705	675

The miscellaneous contingent liabilities included an unpaid portion of the effective initial fund of Bayer-Pensionskasse amounting to €490 million, which may result in further payments by Bayer AG in subsequent years.

In addition to provisions, other liabilities and contingent liabilities, there were also other financial commitments. These mainly related to leasing agreements and long-term rentals.

The non-discounted minimum future payments relating to operating leases totaled €606 million (2008: €685 million). The maturities of the respective payment obligations were as follows:

Operating Leases		[Table 4.93]
Maturing in	Dec. 31, 2008	Maturing in	Dec. 31, 2009
	€ million		€ million
2009	205	2010	166
2010	145	2011	132
2011	113	2012	99
2012	81	2013	72
2013	65	2014	59
2014 or later	76	2015 or later	78
Total	685	Total	606

Financial commitments resulting from orders already placed under purchase agreements related to planned or ongoing capital expenditure projects totaled €441 million (2008: €300 million).

In addition, the Group has entered into research agreements with a number of third parties under which Bayer has agreed to fund various research projects or has assumed other payment obligations based on the achievement of certain milestones or other specific conditions. The total amount of such funding and other commitments was €661 million (2008: €915 million). As of December 31, 2009, the remaining payments expected to be made to these parties, assuming the milestones are reached or the other agreed conditions are met in the respective years, were as follows:

Other Commitments		[Table 4.94]
Maturing in	Dec. 31, 2008	Maturing in	Dec. 31, 2009
	€ million		€ million
2009	127	2010	154
2010	93	2011	114
2011	110	2012	83
2012	133	2013	39
2013	71	2014	43
2014 or later	381	2015 or later	228
Total	915	Total	661