Annual report (20-F) - Ono

14. Other long term liabilities
Euro thousand
2004 2003
Deferred income 20,598 36,864
Equity value certificates 25,462 25,462
Non-cash deferred tax liabilities (1) 56,393 72,429
Other — 883
Total 102,453 135,638
(1) Offset by the related non-cash deferred tax assets in note 9. See also note 18.
(a)
Deferred income
Deferred income as of December 31, 2004 mainly comprises the unrealized gains on exchange rate
translation associated to the multi borrower credit facilities (see note 11).
(b)
Equity value certificates (EVCs)
Together with the issue of the 2009 Notes and the 2011 Notes, ONO Finance, PLC issued EVCs, which
are guaranteed by Cableuropa, S.A.U. The EVCs entitle their holders to receive cash under certain
circumstances.
15. Provisions for commitments and contingencies
Balance at
12.31.2003 Additions
Euro thousand
Amounts
used
Balance at
12.31.2004
Provision for discontinuing operations
in Portugal 6,962 — (3,334) 3,628
Other provisions for liabilities and
charges 4,387 2,100 (902) 5,585
11,349 2,100 (4,236) 9,213
(a)
Provision for discontinued operations in Portugal
In 2002 the Group had accounted for a provision to cover losses and contingencies derived from the
decision of discontinuing operations in Portugal, amounting to euro 10.9 million. As of December 31,
2004 the provision amounts to euro 3.6 million.
(b)
Other provisions for liabilities and charges
Fidelity plan
In 2003 the Group launched an Incentive plan aimed to attract and retain certain key employees and
directors. The eligible employees have the right, subject to certain conditions, to receive an extraordinary
cash bonus after three years since granted. The accrued provision as of December 31, 2004 and 2003
amounts to euro 4.2 and 2.1 million, respectively.
Share-based compensation plan (Phantom Plan)
The Phantom Plan provides certain eligible employees and directors with the right, subject to vesting, to
receive the difference between the fair value of certain number of shares of Cableuropa, S.A.U. or, in
some instances, of Grupo Corporativo ONO, S.A. (in both cases estimated by their respective Board of
Directors) and their exercise price.
F-23