Page 51 - MEDIASET ESPAÑA / 2012. Financial Statements, Management and Corporate Governance Report

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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT. 2012
Other financial instruments
Mediaset España Comunicación, S.A. together with Sogecable (now PrisaTV) and Prisa had signed in 2010 an agreement
whereby GestevisiónTelecinco has the option to obtain recognition of certain rights in its favor related to the manage-
ment of the subgroup Digital+ (DTS Distribuidora Televisión Digital, S.A. and subsidiaries).
The price of granting the option was 5,000 thousand euros, paid by Telecinco to Prisa TV.
Mediaset España Comunicación may exercise these rights within three months from the first anniversary of the
completion of the purchase of Digital+. Execution of the rights of the Option Contract and payment of the exercise
price were contingent upon the suspensive condition that the required authorization had been obtained from the anti-
trust authorities.
Execution of the option bore an additional premium of 5,000 thousand euros.
On August 3, 2012, the Company chose not to exercise the option, and therefore the suspensive condition was voided,
and the transaction went through; it derecognized the corresponding financial asset. The option strike price paid was
recognized as an expense on the income statement.
b) Derivatives
The Company uses derivatives to hedge its risks against foreign-currency fluctuations on the purchase of audiovisual
property rights made in the year. It also hedges against foreign currency risk on commercial transactions with customers,
and these transactions were recognized in the Company’s balance sheet of financial position. As required by the
corresponding measurement and recognition policy, these derivatives are classified as “held for trading.”
At year-end 2012, derivative financial instruments were recognized under “Financial liabilities” (Note 8.2 b.3).
The breakdown of the notional values of the derivatives outstanding in the Company at December 31, 2011 was
as follows:
ASSETS
Notional value/
MaturityWithin 1
year
USD Amount
Fair value
Dollars Year-end rate ( /$)
rate ( /$)
Unmatured foreign-currency purchases:
Purchases of dollars against euros 32,649 44,877 1.2939 2,112
Sales of dollars against euros - - - -
Net balance 32,649 44,877 1.2939 2,112
Foreign currency hedges on rights contracts are measured as the difference between the present value of the foreign
currency hedge at the forward rate for the contract and the value of the foreign exchange hedge at the year-end
exchange rate.