2011 Annual Report - Italcementi Group

2011 Annual Report
Presentation 4
General information 15
Annual Report Consolidated Annual Report Directors’ report 28
Extraordinary session Italcementi S.p.A. Annual Report Consolidated financial statements 63
30. Finance income (costs), exchange-rate differences and derivatives
Finance costs net of finance income and exchange-rate differences and derivatives were as follows:
2011 2010
(in thousands of euro) Income Costs Income Costs
Interest income 27,883 27,508
Interest expense (110,475) (133,836)
Sub total 27,883 (110,475) 27,508 (133,836)
Net interest in respect of net financial position (82,592) (106,328)
Dividends and other income from equity investments 26,036 29,831
Other finance income 20,283 8,458
Capitalized finance costs 670 8,370
Other finance costs (49,047) (34,638)
Total finance income (costs) 74,202 (158,852) 65,797 (160,104)
Gains/(losses) on interest-rate derivatives (6,852) (3,945)
Gains/(losses) on exchange-rate derivatives (11,072) 1,140
Net exchange-rate differences 479 7,302
Exchange-rate differences and derivatives - (17,445) 4,497 -
Total finance income (costs),
exchange-rate differences and derivatives (102,095) (89,810)
Net finance costs not considering exchange-rate differences and derivatives, amounted to 84.7 million euro
(94.3 million euro in 2010, of which 21.4 million euro relating to the buyback of the US Private Placements”
notes).
Net interest in respect of the net financial position included, in 2011, net income of 2.8 million euro on the
partial repurchase of bonds and, in 2010, net costs of 15.9 million euro as the share of the cost for the
repurchase of the above-mentioned notes.
Excluding these components, net interest in respect of net debt decreased to 85.4 million euro, from 90.4
million euro in 2010.
31. Impairment on financial assets
The caption reflects an amount of 7,524 thousand euro for the reversal of the impairment loss recognized on
the Calcestruzzi group at December 31, 2010, in the fair value reserve, which was taken to income after the
consolidation of the Calcestruzzi group as from January 1, 2011.
32. Income tax expense
Income tax expense for the period was 68,811 thousand euro, as follows:
(in thousands of euro) 2011 2010 Change
Current tax 97,638 110,285 (12,647)
Deferred tax (33,735) (45,703) 11,968
Prior-year tax and net non-recurring tax items 4,908 (3,973) 8,882
Total 68,811 60,608 8,203
In Italy, the IRES, income tax rate, applied by the parent on estimated taxable income for the year was 27.5%,
as in 2010. Taxes for Group companies in other countries are calculated using local tax rates.
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