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159
FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
2011
Balance at
31/12/10
Charge
for the
Year
Amount
used
Amounts
Reversed
Transfer
Balance at
31/12/11
Provision for contingencies and
charges
31,978 7,809 (5,416)
(3,316)
(1,749)
29,306
2010
Balance at
31/12/09
Charge for
theYear
Amount
used
Amounts
Reversed
Transfer
Balance at
31/12/10
Provision for contingencies and
charges
21,320
4,366 (2,024)
(5,867)
14,183
31,978
At 31 December 2011 and 2010, provisions for liabilities and charges relate to pending lawsuits and appeals between
the Group and third par ties. Provisions recognised in the year relate to new lawsuits facing the Group, while reversals
relate to litigation that has been resolved. Reversals in 2010 include the lawsuit with the tax authorities on assessments
raised on 24 July 2009, which were provisioned in 2009 and amounted to EUR 3,543 thousand, and appealed by the
Group before the Central Tax Cour t. This cour t ruled par tially in favour of the company, requiring it to pay a total of
EUR 345 thousand.The unused amount of the provision was reversed.
17. OTHER NON-CURRENT LIABILITIES
The breakdown of other non-current liabilities is as follows:
Balance at 31/12/11
Balance at 31/12/10
Loans to related companies
-
72,721
Advances received on loans
94
378
Bank borrowings
-
-
Other payables
189
754
Total
283
73,853
•
Loans to related companies
This includes the loan granted by Mediaset Investment, S,R,L,A, to Mediacinco Car tera, S.L. in 2007, which has a single
and final maturity date i.e., 30 June 2012.This loan was granted to finance the acquisition of a 25% ownership interest in
Edam Acquisition Holding I Cooperative U.A. It bears interest at Euribor plus 100 basis points.
At 31 December 2010, an amount of EUR 47.5 million of the original loan had been conver ted into par ticipating loans.
The new loans have the same maturity as the original loan and interest payments are linked to the borrower’s business
performance. EUR 27.5 million of the loan was conver ted to par ticipating loans in June 2009 and EUR 20 million on 30
June 2010.
In 2011, the total amount of the par ticipating loans were contributed in a capital increase carried out by subsidiary
Mediaset Investment, S.R.L.A.