Tiscali 2003 Annual Report Download - page 84

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At 31 December 2003 the following contracts were in force:
• interest rate swap agreement entered into with Banca Intesa S.p.A. on 31 July 2003, with a notional value of EUR 162.5 million;
• interest rate swap agreement entered into with Banca IMI S.p.A. on 19 June 2000 with a notional value of EUR 87.5 million.
These agreements relate solely to the EUR 250 million bond maturing in July 2005. All such agreements to date have been taken
out as part of the Company’s interest rate risk hedging strategy, and expire on the same date as the underlying bond loan.
Under the terms of the agreements, each quarter Tiscali agrees to swap with its counterparties the difference between interest
amounts accrued on a nominal benchmark at an agreed fixed or variable interest rate.
Payables to banks
“Payables to banks” include an overdraft and medium-/long-term financing for the construction of the new Sa Illetta headquar-
ters in Cagliari.
Short-term bank debt totalled EUR 37.9 million, of which EUR 1.5 million refers to loan repayments for the headquarters in
Cagliari due in 2004.
Long-term bank debt relates to the loan granted by Banca CIS (Cagliari) for the new Company headquarters in Cagliari. The total
amount of the loan is EUR 35 million, of which EUR 1.5 million is due by the end of 2004, EUR 12.2 million falls due from one
to five years and the remaining EUR 21.3 million falls due after five years. This loan is backed by a EUR 70 million guarantee in
respect of the property.
Payables due to other lenders
“Payables to other lenders” include payables to leasing companies for capitalised financial leasing agreements. These payables
total EUR 43.5 million, of which EUR 28.4 million are due after one year. The agreements chiefly relate to networks, servers and
other equipment used directly in the production process. The decrease of around EUR 18.5 million compared with 2002 is attri-
butable to the instalments paid during the year.
Payables to suppliers
“Payables to suppliers” mainly refer to the provision of content and telephone and traffic data services. This item rose by around
EUR 4 million in 2003, mainly because of higher revenues, which led to an increase in variable direct costs. Average payment
terms in the fourth quarter fell from 154 days in 2002 to 141 days in 2003.
Payables to non-consolidated subsidiaries and affiliate companies
This includes payables to companies that have not been consolidated either because they are being wound up or because their
effect on the accounts is insignificant.
Taxes payable
Taxes payable break down as follows
TAXES PAYABLE 31.12.2003 31.12.2002 CHANGE
Corporate income tax and other taxes 3,876 15,261 (11,385)
VAT payables to the Treasury 17,773 10,363 7,410
Payables to the Treasury for advance withholding tax 413 1,264 (851)
Payables to the Treasury for employee withholding tax 6,993 5,446 1,547
Other taxes payable - 41 (41)
Total 29,055 32,375 (3,320)