Annual report 2008 - Altarea Cogedim

14.8. Other components of profit before tax
n Breakdown
(in € thousand) 12/31/2008 12/31/20087 *
Change in fair value and gain/loss on the sale of financial instruments (110,395) 2,099
Gain (loss) on sale of participating interests (157) 31
Share of earnings of equity-method associates (26,290) 6,921
Dividends 0 (0)
Discounting of payables and receivables (3,519) (5,866)
OTHER COMPONENTS OF PROFIT BEFORE TAX (140,361) 3,185
* Cogedim: contribution over 6 months
The change in the value of financial instruments represented a net cost of €110.4 million in 2007 compared with a net gain
of €2.1 million in 2007.
The change in fair value of financial instruments corresponds to the change in fair value of the interest-rate hedging instruments
(swaps, collars and caps) used by the Group. It represented a net cost of €124.4 million at 31 December 2008. The change
recorded by comparison with 2007 resulted from the use of new hedging instruments in 2007 and 2008, as well as the
reduction in interest rates observed during the fourth quarter of 2008.
Disposals of financial instruments by the Group’s holding companies led to an after-tax gain of €14.0 million before tax.
In 2008, the discounting of receivables and payables represented an expense of €3.5 million.
This loss resulted principally from the impact of the Group’s buyback of Cogedim’s future acquisition debt, offset partly by
the discounting effect obtained in return for this early repayment.
The Group’s share of earnings of equity-method associates represented a charge of €26.3 million.
This expense was principally attributable to the loss of €28.7 million recognised on the shareholding in Russia held by the
Group. See note 13.6.
Aside from this expense, the principal impact recorded on the share of earnings of equity-method associates was the
contribution from Semmaris (owned shopping centre business).
15. Income taxes
n Income tax payable
(in € thousand) Current Non-current
12/31/2008 12/31/2007 12/31/2008 12/31/2007
Income tax due 1,488 6,307 403 633
SIIC regime tax payable 237 5,151 403 633
Non-SIIC regime tax due 1,251 1,156 - -
NET CURRENT TAX LIABILITY 1,488 6,307 403 633
* Cogedim: contribution over 6 months
The Group’s tax liability under the SIIC tax regime consisted mainly of the outstanding balance of the exit tax levied upon exit
from the ordinary tax regime and payable over four years. The last instalment payable of the tax recognised in 2005 (when
the Group elected to adopt SIIC status) was paid on 15 December 2008 and amounted to €4,786 thousand. An additional
exit tax liability of €844 thousand was recognised in 2007 upon the decision by newly acquired companies to adopt SIIC
tax status.
157