For the year ended December 31, 2013, the Altice VII Group had a negative net equity position of EUR 261.2 million, thus resulting in a negative gearing ratio.
December 31, 2013
December 31, 2012 (in millions of euros)
Net Debt ... 3,865.6 1,771.5 Cash and cash equivalents ... (61.3) (129.7) Total equity ... (261.2) 285.7 Gearing ... (1,456%) 575%
19.5 Fair value of financial assets and liabilities
19.5.1 Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis
Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation technique(s) and inputs used).
Financial assets/ Financial
liabilities Fair value as at
Fair value hierarchy Valuation technique(s) and key input (s) Significant unobservable differences Relationship of unobservable differences 31/12/2013 31/12/2012 Foreign currency forward contracts (see
notes17.8) (104.9) (52.6) Level 2 Zero curve
N/A N/A
N/A N/A
Interest rate swaps (see
note 17.8) (37.9) (9.8) Level 2 Zero curve
N/A N/A
N/A N/A
AFS N/A N/A
- Wananchi
(1) 31.9 - Level 3
Internal approach using business plans
N/A N/A
- Partner and
Co. 8.4 6.1 Level 1
Quoted price in an
active market N/A N/A
(1) In April 2012, the Group made an investment in the East-African cable operator Wananchi, to gain a foothold in the strategic and fast developing African cable and telecom market. To date the Group has invested a total of EUR 34.9 million ($ 48.4million, of which EUR 31.9 million in equity and EUR 3.0 as a convertible note, as of the year ended December 31, 2013) in this venture, alongside other industry peers, and has acquired a total stake of 17.5% in Wananchi. Given the specific geo-economic context of the zone that Wananchi operates in, the high growth rate, infrastructure development needs and volatilities associated with the region, the Board of Managers considers that the carrying amount of its investment reflects the fair value of the investment as of December 31, 2013.
19.5.2 Reconciliation of Level 3 fair value measurements
Available for sale
(unlisted shares) Others Total 31 December 2013
Opening balance 0.0 – 0.0
Total gains or losses:
– in profit or loss 0.0 – 0.0
– in other comprehensive income –
Purchases (*) 31.9 31.9
Issues – – –
Disposals/settlements - – -
Transfers in level 3 - - -
Transfers out of level 3 - - -
Closing balance 31.9 – 31.9
There were no available for sale instruments classified as level 3 for the year ended December 31, 2012.
(*) As at December 31, 2012 and during the year 2013, the Group invested into convertible bonds issued by Wanachi. Such bonds have been converted during the year in exchange for shares of Wananchi.
20-Trade and other payables
December 31, 2013
December 31, 2012 (in millions of euros) Trade payables ... 392.2 314.2 Corporate and social security contributions ... 29.8 24.5 Other payables ... 94.3 46.3 Amounts due to related parties ... 0.1 0.2
Deposit and guarantee received 0.4 -
Total current payables... 516.6 385.2 Trade payables-acquisition of assets ... 13.0 5.9 Other payables ... 16.0 32.9 Total non-current payables ... 29.0 38.8 The increase in trade payables can mainly be attributed to the acquisitions of Outremer, ONI and integration of MCS and SportV in the scope of consolidation of the Group in 2013.
The increase in income tax payables can be attributed to an improvement in the profit before tax at HOT and a concomitant increase in the income tax rate in Israel from 25.0% to 26.5% as compared to FY2012.
21-Deferred revenues
December 31, 2013
December 31, 2012 (in millions of euros) Current deferred revenue ... 55.9 34.1 Non-current deferred revenue ... 10.6 10.8 Total deferred revenues... 66.5 44.9 Current deferred revenues refer to revenues recognized from customers billed in advance of the monthly cut-off. Non- current deferred revenues result from multi-year contracts with business customers.
The increase in deferred revenues for the year ended December 31, 2013 was mainly due to an increase in price of certain products for the year ended December 31, 2013 and the subsequent billing and revenue collection of these subscriptions before the year end.
22-Classification and fair value of financial assets and liabilities
On December 31, 2013 and 2012, the principles for measuring financial instruments and their market value break down as follows: December 31, 2013 Fair Value Book value Amortized cost Fair value through profit/loss Assets available for sale (in millions of euros)
Current assets
Cash and cash equivalents ... 61.3 61.3 - -
Restricted cash ... 1,242.7 1,242.7 - -
Trade receivables ... 194.0 194.0 - -
Other receivables ... 37.1 37.1 - -
Non-current assets - -
Restricted cash ... 1.8 1.8 - -
Loans and receivables ... 3.0 3.0
Available for Sale ... 40.3 - - 40.3
Long term trade receivables ... 5.5 5.5 - -
Other long-term trade
receivables ... 22.8 22.8 - -
1,608.5 1,568.3 0.0 40.3
Book value Amortized cost Fair value Current liabilities
Credit from banking
corporations and debentures ..
57.6 57.6 -
Loans from related parties ... - - -
Trade payables ... 383.4 383.4 - Others payables ... 246.0 246.0 - Other current liabilities ... 15.9 15.9 -
Non-current liabilities... -
Loans from banking
corporations and debentures .. 3,520.5 3,520.5 - Other financial liabilities ... 271.6 129.3 142.3
Other non-current liabilities ... 39.6 39.6 -
December 31, 2012
Book value Amortized cost
Fair value through profit/loss Assets available for sale Current assets
Cash and cash equivalents ... 129.7 129.7 - -
Trade receivables ... 150.8 150.8 - -
Other receivables ... 37.9 37.9 - -
Non-current assets
Restricted cash ... 9.6 9.6 - -
Investments in financial assets
available for sale ... - - - -
Available for Sale ... 6.1 - - 6.1
Long term trade receivables ... 18.7 18.7 - -
Other long-term trade
receivables ... 24.6 24.6 - -
377.4 371.3 - 6.1
Book value Amortized cost Fair value Current liabilities
Credit from banking
corporations and debentures .. 113.2 113.2 -
Trade payables ... 311.3 311.3 - Others payables ... 118.8 118.8 - Short-term loans from related
parties ... 2.7 2.7 - Non-current liabilities...
Loans from banking
corporations and debentures .. 1,365.7 1,365.7 - Long-term loans from related
parties ... 109.0 109.0 - Other financial liabilities ... 174.5 112.0 62.5
Other non-current liabilities ... 49.5 49.5 -
23-Taxes on income
23.1 Income tax (expense)/benefit
December 31, 2013
December 31, 2012 (in millions of euros)
Current income tax ... (38.0) 4.2 Deferred taxes on deductible temporary differences ... 30.6 21.8 TOTAL ... (7.4) 26.0
December 31, 2013
December 31, 2012 (in millions of euros)
Current tax assets ... 14.6 5.5 Current tax liabilities ... (57.1) (10.7) TOTAL ... (42.5) (5.2)
23.2 Deferred tax assets and liabilities
December
31, 2012 Reclassifications
Business
combination From equity
From profit and loss
December 31, 2013 (in millions of euros)
Other... 0.4 0.2 - - - 0/4
IAS 19R ...
Employee Benefits ... - (0.2) - 0.7 0.3 0.8
IAS 36, Depreciable
fixed assets ... (0.6) 0.6 - - - -
IAS 38, Intangible assets ... - - 1.3 - 0.1 1.4
IAS 39, Financial Instruments 19.0 - - (1.5) 26.2 43.7
Compensation DTA/DTL .. - (6.6) - - - (6.6)
Other... 0.4 0.4 - 4.9 2.1 7.7
December 31, 2012 Reclassi- fication Business combination From equity From profit and loss December 31, 2013 (in millions of euros)
Customer relationships... 51.3 (.3) 15.1 - (4.1) 62.0 Brand ... 16.7 .3 13.7 - - 30.8 Other Intangible assets ... 21.3 14.1 2.0 2.3 17.6 57.3 Reevaluation of Tangible assets ... 30.1 (8.8) .2 .0 (4.1) 17.4 IAS 23, Borrowing Costs ... 3.1 - - - - 3.1 IAS 36, Depreciable fixed assets ... (8.8) (4.9) - (.4) 32.0 17.8 Present value of YFPECS financial
instrument ... 9.3 - - - .4 9.7 Present value of IFL financial instrument ... - - - 1.1 - 1.1 Capitalisation of transaction costs ... - - - - 7.8 7.8 Temporary differences ... 22.3 (22.3) - - - - Other ... 3.1 22.5 - 6.6 (49.4) (17.2) Compensation DTA/DTL ... - (6.6) - - - (6.6) Total deferred taxes liabilities ... 148.4 (6.0) 31.0 9.6 .2 183.3
December 31, 2011
Business
combination From equity From profit and loss
December 31, 2012 (in millions of euros)
Other ... 0.2 - - 0.2 0.4
IAS 16, Property, Plant
and Equipment ... 0.1 - - 0.3 0.4
IAS 36, Depreciable fixed
assets ... - - (0.6) - (0.6)
IAS 38, Intangible assets ... - - - - -
IAS 39, Financial
Instruments ... - - - 19.0 19.0
Total deferred taxes
assets ... 0.3 - (0.6) 19.5 19.3 December 31, 2011 Business combination From equity
From profit and loss
December 31, 2012 (in millions of euros)
Customer relationships ... 52.0 3.6 - (2.8) 51.3 Brand ... 9.3 7.4 - - 16.7 Other Intangible assets ... 23.9 - (4.7) 2.1 21.3 Reevaluation of Tangible assets... 11.0 23.2 - (4.1) 30.1 IAS 23, Borrowing Costs ... 3.6 - - (0.4) 3.1 IAS 36, Depreciable fixed assets ... (11.1) - (1.4) 3.6 (8.8)
Present value of YFPECS financial instrument 9.0 - - 0.2 9.3
Temporary differences ... 22.8 - - (0.5) 22.3 Other ... 3.1 - 0.1 (0.1) 3.1 Total deferred taxes liabilities... 123.7 32.7 (6.0) (2.0) 148.4