Note 9, 10, 11
Financial statements - Notes to the parent company financial statements
9 OTHER NON-CURRENT LIABILITIES
-
10 CURRENT LIABILITIES
-
-
-
11 DERIVATIVES
January 1, 1
January 2,
2006 1
2005
Hedging derivatives intercompany
140
298
Hedging derivatives external
175
133
Other derivatives intercompany
97
86
Other derivatives external
3
Total other non-current liabilities
412
520
January 1, 1
2006 1
January 2,
2005
Current portion ot loans
190
Short-term borrowings trom subsidiaries
25
110
Payables to subsidiaries
21
67
Payables to joint ventures and associates
10
7
Deterred gains
7
Taxes payable
4
25
Interest
44
41
Dividend cumulative preterred financing shares
44
44
Hedging derivatives intercompany
461
Hedging derivatives external
31
4
Other current liabilities
66
90
Total current liabilities
245
1,046
The current liabilities are liabilities that mature within one year.
The Company regularly enters into derivative contracts with banks to hedge foreign currency and interest exposures ot the
Company or its subsidiaries. Derivative contracts that are entered into to hedge exposures ot subsidiaries are generally mirrored
with intercompany derivative contracts with the subsidiaries that are exposed to the hedged risks on substantially identical
terms as the external derivative contracts. In these parent company tinancial statements the external derivative contracts and
the intercompany derivative contracts are presented separately in the balance sheet. In situations where the external derivative
contract qualities tor hedge accounting treatment in the consolidated tinancial statement, the external derivative contract and
the intercompany derivative contract are presented as 'Hedging derivatives external' and 'Hedging derivatives intercompany',
respectively, in these parent company tinancial statements. In situations where the external derivative contract does not quality
tor hedge accounting treatment in the consolidated tinancial statements, the external derivative contract and the intercompany
derivative contract are presented as 'Other derivatives external' and 'Other derivatives intercompany', respectively, in these
parent company tinancial statements. Fair value movements ot external derivative contracts that were entered into to hedge the
exposures ot subsidiaries are in the statement ot operations recorded directly in income, where they ettectively ottset the tair
value movements ot the mirroring intercompany derivatives, that are also recorded directly in income. The Company has one
cash tlow hedge to hedge the interest rate and currency exposure on the JPY 33,000 notes and a tair value hedge with a
notional amount ot EUR 600 to hedge part ot the tair value risk on the EUR 1,500 notes. In relation to the cash tlow hedge
on the JPY 33,000 notes the Company recorded a tair value loss ot EUR 51 in the cash tlow hedge reserve in 2005 and
recognized a loss ot EUR 18 in the statements ot operations trom the cash tlow hedge reserve. Details ot these derivative
contracts and the Company's risk management strategies are included in Note 34 to the consolidated tinancial statements
and in the tables presented below.
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