SAPPI LTD (SAP) 6-K

Note 22•Other non-current liabilities
The following is a summary of the Company’s other non-current liabilities as of 31 December:
2007 2006 2005
Non-current government grant 6,407 - -
Employee costs 7,144 8,307 8,636
Accrued non-current purchases 1,440 - -
Accruals for compensation of rights to use - - 207
Waste water expenses 1,118 5,833 3,602
16,109 14,140 12,445
Note 23•Accounts payable and other current liabilities
The following is a summary of the Company’s accounts payable and other current liabilities as of 31 December:
2007 2006 2005
Accounts payable 86,389 65,996 57,132
Related parties payable 21,693 17,220 20,571
Taxes and contributions (payroll) 2,236 2,430 3,434
Vat payable 689 1,923 2,134
Accrued personnel costs 15,488 16,478 14,434
Accrued insurances 9 627 2,603
Accrued purchases 8,717 8,712 14,056
Accrued freight costs 525 415 771
Accrued interest expenses 303 106 71
Provision for discounts 26,391 22,995 14,828
Other items 2,773 4,249 5,825
165,213 141,151 135,859
Note 24•Debt and interest expense
The Company had bank debt outstanding at 31 December 2007, 2006 and 2005 of EUR 121, EUR 242 and EUR 364, respectively. As discussed in Note 19,
finance lease liabilities from parties other than banks amounted to EUR 57,003, EUR 67,107 and EUR 78,758 for the years ended 31 December 2007, 2006
and 2005, respectively. As described in Notes 2 and 3, M-real also uses a centralised approach to cash management and financing its operations. The
Company has related party interest bearing liabilities due to M-real and Metsä Finance. Interest expense for the years ended 31 December 2007, 2006 and
2005 totaled EUR 5,054, EUR 9,867 and EUR 8,412, respectively, and has been reflected in the combined income statements as a component of other
financial expense (see Note 9).
During the year ended 31 December 2007, M-real converted EUR 166,819 of the Company’s related party interest bearing liabilities to invested equity.
During the same period M-real contributed an additional EUR 15,000 and the Company paid a dividend to M-real in the amount of EUR 45,000.
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