The "Other current liabilities" item at the end of each related period is analysed in the following table:
Customer advances
Clients payments on account represent the amounts paid by the clients as contribution to works of allotments and connection, current as of the year end.
Amounts due to parent company for tax consolidation system
In the year ended on 31 December 2008, payment of tax deposits for Euro 7.967 thousands as compared with the payables for direct taxes matured during the year equal to Euro 5.975 thousands, has led to the total extinction of the item.
Amounts due to social security bodies
The amount due to social security institutions mainly relates to charges for the year that were paid at the start of the following year.
Amounts due to employees
The amounts due to employees for untaken vacation, deferred remuneration and bonuses earned relate to the vacation accumulated by 31 December 2008 but not yet taken at the reference date.
Accrued expenses and deferred income
Accrued liabilities are mainly referred to fees matured on state owned property concessions.
Amounts due to A.S.M. S.p.A.
The change of the debt to Asm Rovigo S.p.A. is due to the payment of the payable for the purchase of the quotes of the companies Asm Distribuzione Gas S.r.l. and Asm Servizi Energetici e Tecnologici S.r.l.. In 2008, therefore, Euro 8.887 thousands have been paid for the transfer of own shares.
Amounts due to Acegas-APS S.p.A.
(tho us ands of E uro ) 3 1/ 12/ 2 00 8 3 1/ 12 / 2 0 07
Customer adv ances 5.373 6.880
Amounts due to parent company for tax consolidation system 0 0
Amounts due to social security institutions 574 566
Amounts due to employees 1.433 1.600
VAT payables 0 0
Amounts due to revenues for w itholding tax at source 364 430
Annual deferred income 97 31
Annual accrued ex pences 1.526 1.089
Amounts due to A.S.M . S.p.A. 0 8.887
Amounts due to Acegas-APS S.p.A. 0 1.325
Amounts due to E digas Due srl e Edigas Distribuzione partners' 700 0
Other payables 479 247
The change of the debt, foe Euro 1.325 thousands, is due to the complete fulfilment of the residual payable to Acegas- APS S.p.A., for the regulation of the price for the purchase of shares of company Estenergy S.p.A., because of conditional contract clause subscribed by Ascopiave S.p.A..
Amounts due to members of Edigas Due S.r.l. ed Edigas Distribuzione Gas S.r.l.
The first registration of the debt due to former shareholders Edigas Due S.r.l and Edigas Distribuzione Gas S.r.l., equal to Euro 700 Thousands, is the result of agreements for the acquisition of the companies themselves, which find correspondence in the first registration of a credit of the same amount between Current activities.
Other payables
The residual value of other payables equal to Euro 479 thousands is due to payables to welfare institutes for personnel contributions estimated as of 31 December 2008.
Benefits based on financial instruments
The group acknowledges additional benefits to the President of Ascopiave S.p.A., to the President and vice president of Ascotrade S.p.A. and to some employees holding important positions within the Group, through payment plans based on financial instruments.
In particular, the plans adopted by the Group include the allocation of rights including acknowledgement in favour of the beneficiaries of an extraordinary payment linked to the reaching of pre-set objectives, and the financial regulation of which is based on the trend of the share title (so-called phantom stock option).
The cost reported for additional benefits during the year is shown in the following table:
During 2007, Ascopiave's Board of Directors allocated the first tranche of phantom stock options under the Plan approved by the Shareholders' meeting of 25 June 2007.
The adoption of the Plan is aimed at providing incentive to loyalty of Group directors and employees holding more important positions, and who are therefore more directly responsible for company results.
The Presidents of the Board of Directors of Ascopiave S.p.A. and Ascotrade S.p.A., the Vice President of Ascotrade S.p.A. and the chosen employees of Ascopiave S.p.A. and Ascotrade have been selected as beneficiaries of the incentive Plan - at the sole judgement of the Board of Directors of Ascopiave, on proposal by the Emoluments Committee - amongst the subjects charged with the strategically relevant roles within, respectively, Ascopiave and Ascotrade, with a view to creating value. All managers and directors are included in the list of employees to benefit from the plan.
The Plan concerns free, non-transferable inter vivos phantom stock options, each of which allocates the Beneficiary the right to receive, under the terms and conditions specified by the Plan Regulations, a gross amount (Capital Gain) equal to the difference between the market value of the share at the time of exercise of such option (the Normal Value) and the market value of the share at the time of allocation of the option (the Initial Value). As such, Beneficiaries can gain advantage of any increase in the share title, without this affecting operations on the share capital and the issue of shares
(in thousands of Euro) 2008 2007
Costs derivanting by transations with paym ents based on
shares, regolated with cash on hand 62 0
____________________________________________________________________________________________ for the specific purpose of the Plan.
The Options are allocated in two tranches, respectively the ‘Options of the First Tranche’ for a maximum number of 2,333,340 Options, and the ‘Options of the Second Tranche’ for a maximum number of 2,333,340 Options. The Options of the First Tranche serve mainly as incentives, in that the exercise of these options by the Beneficiary is subject to the reaching of certain results in terms of EBITDA 2007 and 2008 targets of Ascopiave and Ascotrade (respectively for the Ascopiave Beneficiaries and Ascotrade Beneficiaries). With regards to the Options of the First Tranche, the performance objectives have been pre-set separately for Ascopiave and Ascotrade. As such, the Ascopiave Beneficiaries may exercise their options following the reaching by Ascopiave of the performance objectives assigned it, and Ascotrade Beneficiaries may exercise their options following the reaching by Ascotrade of the performance objectives assigned it. These options will become Exercisable Options as from 30 June 2009. The Options of the Second Tranche have, instead, a loyalty function, as their exercise is marked by the simple completion of terms specified in the Regulations and maintenance of the Working Relationship or Administrative Relationship. The Options of the Second Tranche allocated to each Beneficiary will mature, by effect of the expiry of the terms and maintenance of the Working or Administrative Relationship, thereby becoming Exercisable Options:
- 10% of the Options of the Second Tranche, as of 30 June 2009; - 15% of the Options of the Second Tranche, as of 30 June 2010; - 20% of the Options of the Second Tranche, as of 30 June 2011; - 25% of the Options of the Second Tranche, as of 30 June 2012; - 30% of the Options of the Second Tranche, as of 30 June 2013.
The last terms for the exercise of the Options of the First Tranche and the Options of the Second Tranche, is 30 June 2014. Once these terms have expired, the Options not yet exercised, will not be able to be exercised.
The fair value of these instruments are measured using a Black and Schole model, and taking into account the terms and conditions on the basis of which the rights are allocated. The cost of these instruments, reported on the income statement under labour costs, and the related payables, are reported throughout the period of maturation. Until such time as the payable is not extinguished, the fair value is recalculated at each year end and on the date of effective outlay, reporting all change to the fair value on the income statement.
The following table shows the number (no.) and the average weighted prices of the year (PMPE) of the phantom stock options during the year, and their changes:
(1) These options have been extinguished, in that they can no longer be exercised following termination of the working relationship and/or other reasons (e.g. renunciation by the relevant party).
(2) These are options no more allotable, because EBTDA 2007 objectives were not achieved by Ascopiave S.p.A..
(3) These are options of the First Tranche not allocated as of 31 December 2007, and therefore can no longer be allocated, in accordance with the Regulations.
(4) These are options of the Second Tranche not allocated as of 31 December 2008, and therefore can no longer be allocated, in accordance with the Regulations.
As of 31 December 2008 the so-called First Tranche Options assigned to Ascopiave S.p.A. Beneficiaries result not allotable because EBTDA 2007 objectives were not achieved.
During 2008 the Boards of Directors, following the suggestion of the Committee for remuneration, proceeded with the assignment of total 2.333.000 Second Tranche Options to Chairmen of the Boards of Directors of Ascopiave S.p.A. and Ascotrade S.p.A., and also to Ascopiave and Ascotrade executives.
First tranche options
2008 (n.)
Circulating as of 01/01/2008 2.180.000 1,909
Alloted during the year - -
Cancelled 1 Unusable2
Exertised during the year 1.660.000 1,908
Overdue during the year - -
In circulation as of 31 December 2008 520.000 1,911
Not ass ignable as of 31 december 2008 - First tranche options 3
18.340
Second tranche options
2008 (n.)
Circulating as of 01/01/2008 -
Alloted during the year 2.333.000 1,315
Cancelled 1 - -
Exertised during the year - -
Overdue during the year - -
In circulation as of 31 December 2008 2.333.000 1,315
Not ass ignable as of 31 december 2008 - Second Tranche options 4
340
2008 (PMPE)
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