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Trade receivables at 31 December 2012 mainly refer to charges
made by Prysmian S.p.A. to its subsidiaries for Corporate
services, for patent and know-how user licences, for advisory
costs incurred in relation to the Credit Agreement 2010 and for
the charge made to Prysmian Financial Services Ireland Ltd.
for services rendered in connection with the securitization of
receivables.
The significant increase in trade receivables since 31 December
2011 is mainly due to charges, billable in full at 31 December
2012, for Corporate services following a corresponding increase
in costs, and for royalties for the use of patent licences
following the extension of charges to former Draka Group
companies.
The book value of trade receivables approximates their fair
value.
Trade receivables are all due within the next year and do not
include any significant past due balances.
Tax receivables of Euro 2,010 thousand mainly refer to:
• tax credits for withholdings paid abroad (Euro 8,812
thousand);
• credits for excess payments on account of IRES - Italian
corporate income tax (Euro 11,082 thousand) and IRAP -
Italian regional business tax (Euro 338 thousand);
• provision for IRES for 2012 (Euro 19,356 thousand);
• VAT credits (Euro 651 thousand);
• remaining tax credit (Euro 406 thousand) for research and
development under art. 1, par. 280-283, of Law 296 dated 27
December 2006, as per the authorisation received from the
tax office on 15 June 2009.
Financial receivables mostly comprise the credit balance of
Euro 197,440 thousand on the current account with Prysmian
Treasury S.r.l., the Group’s cash management company.
“Prepaid finance costs” mostly relate to:
• Euro 4,654 thousand for the Company’s portion of the costs
incurred for the revolving credit facilities under the Forward
Start Credit Agreement signed on 21 January 2010 (now
termed Credit Agreement, see Note 8 for more details), that
the Company will amortise over the term of the agreement,
ie. from 2012 to 2014, meaning that Euro 2,327 thousand is
classified as non-current and Euro 2,327 thousand as current;
• Euro 3,184 thousand in costs incurred to renegotiate the
Credit Agreement 2010 following acquisition of the Draka
Group, that the Company will amortise over the term of
the agreement, ie. until 2014. The portion of these costs
classified as non-current is Euro 1,592 thousand, while the
current portion is Euro 1,592 thousand.
At 31 December 2012, “Other” mainly comprises:
• Euro 15,034 thousand in receivables from Group companies
for the chargeback of the compensation-related component
of stock option plans involving Prysmian S.p.A. shares
whose beneficiaries are managers employed by other Group
companies;
• Euro 37,296 thousand in receivables from Italian Group
companies for the transfer of IRES (Italian corporate income
tax) under the group tax filing (art. 117 et seq of the Italian
Income Tax Code);
• Euro 5,457 thousand in bank fees incurred upon entering the
Credit Agreement 2010, recharged to Group companies and
not yet collected.
The book value of financial receivables and other current
receivables approximates their fair value.
