Contractual obligations, contingent liabilities and commitments
We have contractual obligations, some of which are required to be recorded as liabilities in our Consolidated financial statements, including long- and short-term debt. Other contractual arrangements, such as operating lease commitments and purchase obligations, are not generally required to be recognized as liabilities on our consolidated balance sheet, but are required to be disclosed.
The following table summarizes our contractual obligations as of December 31, 2014 aggregated by type of contractual obligation:
|Total||Less than 1 year||1-3 years||3-5 years||More than 5 years|
|Purchase commitments to suppliers||69,720||69,720||–||–||–|
|Capital expenditure commitments||3,198||3,198||–||–||–|
|Unrecognized tax benefits||1,875||1,875||–||–||–|
|Total contractual obligations||101,910||80,932||8,883||6,582||5,513|
For a further discussion of our contractual obligations see Notes 13, 17, 18 and 20 to our Consolidated financial statements, which are incorporated herein by reference.
We outsource a substantial portion of the manufacturing of our Front-end operations to certain suppliers. As our products are technologically complex, the lead times for purchases from our suppliers can vary and can be as long as nine months. Generally contractual commitments are made for multiple modules or systems in order to reduce our purchase prices per module or system. For the majority of our purchase commitments, we have flexible delivery schedules depending on the market conditions, which allow us, to a certain extent, to delay delivery beyond originally planned delivery schedules.