Financial Information - Uralita

FINANCIAL INFORMATION ANNUAL REPORT 2006
Cross Currency Swap
Interest Rate Swap
NOTIONAL
FINAL
TYPE ARRANGED MATURITY (*)
Sale of dollars / Purchase of euro
Purchase at floating rates (euro)
Sale at fixed rates (dollar)
Sale at floating rates (euro)
Purchase at protected fixed rate (euro)
$152,000
thousand 2011 / 2014
€123,484
thousand 2011 / 2014
(*) Partial maturities and interest settlement period matched with those of the hedged debt.
These instruments were acquired in accordance
with the Group’s policies for entering into
financial derivatives and are designated as
hedges. They are recognized in the
accompanying annual accounts as follows:
• The cross currency swap provides a fair value
hedge of the liability recognized for the “2004
bond placement", which therefore is
measured at the locked in exchange rate.
• The interest rate swap provides a cash flow
hedge derived from the financial cost of the
“2004 bond placement". Its market value at
31 December 2006 is recognized as
“Hedging instruments” between the noncurrent
liabilities in the accompanying
balance sheet, recognized with a balancing
entry under “Valuation adjustments” in the
Group’s equity (net of the related tax effect)
(see Note 11.4).
14.OTHER FINANCIAL LIABILITIES
“Trade payables” mainly include amounts owed
on commercial purchases and related costs. The
average payment period in the purchase of
goods and services is approximately 81 days.
15.DEFERRED INCOME
The detail of the movement in this heading at 31
December 2006 and 2005 is the following:
165