Annual Report 2005/06 THE WORLD OF SOUND - Sonova

Among various other items, other provisions also include a provision for the expected costs for settling pending disputes andclaims, which have arisen in the normal course of Phonak’s business. The main claim relates to a patent dispute. The timing of cashoutflows is uncertain since it will largely depend upon the outcome of administrative and legal proceedings.23. Short-term debts1,000 CHFCurrent maturities of mortgagesCurrent maturities of long-term debtsTotalNotes2531.3.200612,25312,25331.3.20057,18623,60330,789Unused borrowing facilities69,11850,288The book value of short-term debts approximates to fair value.At March 31, 2005, current maturities of long-term debts mainly related to bank loans with an average interest rate of 1.1%. Duringthe financial year 2005/06 these bank loans have been repaid (refer to Note 26).24. Other short-term liabilities1,000 CHFOther payablesAccrued expensesDeferred incomeTotal31.3.200617,97667,8246,14891,94831.3.200512,11367,5756,24885,936Other payables include amounts to be remitted in respect of sales taxes, value added taxes, social security payments, employees’income taxes deducted at source and customer prepayments. Accrued expenses include, among other items, salaries, social expenses,vacation pay, bonus and incentive compensation and accruals for outstanding invoices. Accrued expenses for vacation pay relate toboth unconsumed holiday days as well as to payments for holidays required by law in certain countries.Prior-year figures are adjusted to reflect the reclassification of vacation pay and bonus and incentive compensation from provisionsto accrued expenses (refer to Note 22).72 Consolidated Financial Statements