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9 Reserves for risks and charges<br />
(in millions of euros) At 6/30/2000 At 12/31/1999 Change<br />
Income tax reserves 1,140 710 430<br />
Warranty reserve 1,138 959 179<br />
Various liabilities and risk reserves and Reserve for pensions 3,842 2,704 1,138<br />
Insurance policy liabilities and accruals 11,602 10,293 1,309<br />
Total Reserves for risks and charges 17,722 14,666 3,056<br />
Reserves for risks and charges increased by 3,056 million euros, mainly due to the consolidation of the Case Group (1,668<br />
million euros), and the increase in the insurance policy liabilities and accruals of the insurance companies (1,309 million euros)<br />
due to Toro Assicurazioni’s higher business levels.<br />
10 Payables<br />
At 6/30/2000 At 12/31/1999<br />
(in millions of euros) Trade Financial Other Total Trade Financial Other Total<br />
Total Payables 11,578 31,257 9,920 52,755 11,070 24,829 8,894 44,793<br />
The overall difference from the amount at December 31, 1999 (7,962 million euros) is due to increases in Financial payables<br />
(+6,428 million euros), which include bonds, borrowings from banks, other financial payables and notes payable, and in Trade<br />
payables (+508 million euros) and Other payables (+1,026 million euros).<br />
The increase in Financial payables is mainly due to the change in the scope of consolidation owing to the entry of the Case<br />
Group, fluctuations in exchange rates and financing of the higher receivables portfolio of the financial companies.<br />
Other payables include advances received totaling 6,547 million euros at June 30, 2000 (5,813 million euros at December 31,<br />
1999), 4,774 million euros of which are attributable to contract work in progress (4,217 million euros at December 31, 1999).<br />
Payables due beyond five years amounted to 2,511 million euros at June 30, 2000 (1,652 million euros at the end of 1999).<br />
At June 30, 2000, payables amounting to 103 million euros were secured by mortgages and other guarantees on property, plant<br />
and equipment, as against 248 million euros at December 31, 1999.<br />
11 Accrued expenses and deferred income<br />
(in millions of euros) At 6/30/2000 At 12/31/1999<br />
Commercial accrued expenses and deferred income 1,376 1,308<br />
Financial accrued expenses and deferred income 2,437 2,201<br />
Total Accrued expenses and deferred income 3,813 3,509<br />
Financial accrued expenses include interest expenses on financial payables for the part attributable to the first six months of 2000.<br />
Financial deferred income includes deferred interest income on the receivables portfolio of the financial services companies.<br />
12 Memorandum accounts<br />
Guarantees granted<br />
At June 30, 2000, the Group had provided guarantees totaling 4,659 million euros (5,557 million euros at December 31, 1999),<br />
most of which are to guarantee the successful completion of contracts and projects in progress.<br />
Consolidated Financial Statements and Notes at June 30, 2000<br />
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