ANNUAL REPORT - HSE

(12) Provisions and long-term
accrued costs and deferred
revenue
€ 118,046,869
Provisions include the provisions created and used in
conformity with disability organisations legislation,
provisions for obligations under sales agreements,
provisions for closing down the Škale Pit and the remaining
coalmining sites in Velenje, and provisions for
pending claims arising from lawsuits.
Provisions for termination and jubilee benefits
were created based on an actuarial calculation as at
31/12/2008 for all group companies in Slovenia.
The actuarial calculation was based on the following:
• number of employees within group companies as
at 31/10/2008 (sex, age, years of services average
net and gross salary in the period August to October
2008),
• method for calculating termination and jubilee benefits
in a group company,
• 4.5% increase in average salary,
• staff turnover by age category.
Long-term accrued cost and deferred revenue items
include provisions for government grants received
for the acquisition of fixed assets, which were used in
2008 to cover the accounted for depreciation. This category
also includes provisions set aside in connection
with CO 2
emission coupons obtained and in connection
with exempted contributions for the disabled.
Changes in provisions and long-term accrued costs and deferred revenue
in €
AS AT INCREASE USE, AS AT CREATION USE
ITEM 31/12/2007 (CREATION) RELEASE 31/12/2008 PLANNED PLANNED
Long-term provisions
for termination and 11,587,925 2,326,613 -1,835,289 12,079,249 0 0
jubilee benefits
Other long-term
provisions
70,728,491 19,707,911 -17,202,611 73,233,791 13,366,500 2,726,838
Long-term accrued
costs and deferred 12,831,800 26,539,111 -6,637,082 32,733,829 60,000 5,440,824
revenue
Total 95,148,216 48,573,635 -25,674,982 118,046,869 13,426,500 8,167,662
ANNUAL REPORT HSE | FINANCIAL REPORT OF THE HSE GROUP
(13) Long-term liabilities
€ 292,685,262
Long-term liabilities of group companies mainly relate
to long-term bank loans.
Long-term loans are secured with bills of exchange,
acceptance orders, guarantees, receivables or warranties
issued by the Republic of Slovenia.
The loans were taken out with Slovene and foreign
banks, with interest rates ranging from 2.8 to 6.6%,
depending on the type of loan, maturity period and occasion
of borrowing. They also include loans which fall
due in a period of more than five years, but not later
than in 2032.
Long-term loans are disclosed in greater detail in the
annual reports of individual group companies.
Interest rate swaps have been entered into for some
of the Group’s long-term loans to lower the risk of
increases in variable interest rates. Due to a drop in
interest rates, their fair values have been recorded as
part of other long-term financial liabilities and revaluation
deficit.
All long-term loan liabilities are being settled within
contractual deadlines.
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