35
The derivatives were measured by estimating the present value of the future cash flows that will
arise under the terms and conditions arranged by the parties in the derivative contract. The cash
price is taken to be the reference exchange rates of the European Central Bank on 31 December
2013, the swap points (offer/bid) and the interest rates prevailing at themeasurement date.
The foreign currency derivatives have been arranged in such a way that they are fully effective at
each reference date and, accordingly, are recognised in full in equity, until the inventories are
recognised.
The sensitivity analysis indicates that positive or negative changes of 10% in spot EUR/USD
exchange rates would give rise to changes of approximately EUR 14million in the fair value of the
foreign currency derivatives (2012: EUR 9million). Increases in the value of the euro (depreciation
of the US dollar) would increase negative values while decreases in the value of the euro would
increase positive values.
Interest rate hedges
In August 2013 the Company arranged interest rate derivatives (IRSs) in order to fix the financial
cost arising from the floating interest rates applicable to each of the tranches of syndicated
financing arranged at that date.
These IRSs expire on August 2017 and the hedged amount is EUR 111,209 thousand with a fixed
interest rate of 1.01%. At 31 December 2013, the fair value thereof amounted to EUR 5 thousand.
12.- Non-current assets classified as held for sale
In 2013 the Company sold the investment in Unipublic, S.A. that was classified at 31 December
2012 under "Non-Current Assets Classified as Held for Sale". This transaction did not have any
impact on the income statement for 2013.
13.- Inventories
The detail of “Inventories” in the balance sheets at 31 December 2013 and 2012 is as follows:
Thousands of euros
2013
2012
Programme rights, net-
Rights on outside productions
254,144
189,363
In-house productions and programmes in process
36,455
43,876
Sports broadcasting rights
3,460
3,214
Inventory write-downs - outside productions
(33,754)
(19,516)
260,305
216,937
Consumables and other inventories-
Dubbings, soundtracks and titles
2,076
1,991
Other materials
940
930
3,016
2,921
Advances to suppliers
29,181
29,293
Total
292,502
249,151
“Advances to Suppliers” in the accompanying balance sheets at 31 December 2013 and 2012
includes basically advances paid in connectionwith outside production commitments.
