185000000 IT Holding Finance SA

IT HOLDING S.p.A. Notes to the consolidated financial statements for the year ended December 31, 2002
Interest expense includes bond interest of Euro 9,348 thousand, bank interest of Euro 10,263 thousand and other
financial charges of Euro 2,529 thousand. In the previous year, interest expense mainly included bank interest.
The increase is due to the rise in average indebtness, mainly due to the effects of the Ferré Group acquisition which
was partially financed through a bond issue of Euro 200 million in May 2002.
6. Income taxes
Recognised in the income statement 2002 2001
Increase
(Decrease)
(In thousands of Euros)
Current tax expense
Current year ................................................................................................................. 24,972 (3,858) 28,830
Under/(over) provided in prior years .......................................................................... — — —
Total ............................................................................................................................ 24,972 (3,858) 28,830
Deferred tax expense 2002 2001
Increase
(Decrease)
(In thousands of Euros)
Origination and reversal of temporary differences ...................................................... (25,740) 9,306 (35,046)
Benefit of tax losses recognised ................................................................................... 2,959 (3,103) 6,062
Subtotal ........................................................................................................................ (22,781) 6,203 (28,984)
Tax benefit on parent company’s dividend.................................................................. (4,182) (2,529) (1,653)
Total.............................................................................................................................. (26,963) 3,674 (30,637)
Total income tax expense in income statement ...................................................... (1,991) (184) (1,807)
Tax benefit on parent Company’s dividends represents the receivable that IT Holding, which is in a tax loss position,
has earned versus tax authorities on the dividends received during the year from Ittierre S.p.A.
The details and the movements of deferred tax assets and liabilities are in paragraph note 19, “Deferred tax assets and
liabilities”.
The reconciliation between the actual and theoretical tax rates for 2002 and 2001 is as follows:
2001
2002
(In thousands of Euros)
Loss before tax............................................................................................................. (2,679) (2,197)
Income tax using the domestic corporation tax rate ............................................. 38.25% (1,025) 40.25% (884)
Others........................................................................................................................... 36.06% (966) (31.86)% 700
Total income tax expense in income statement ...................................................... 74.31% (1,991) 8.39% (184)
7. Discontinuing operation
No discontinuing operations took place in 2002 and 2001.
8. Acquisition and disposal of subsidiaries
In 2002 the acquisition and disposal of subsidiaries are the following:
Acquisitions:
F- 105