115 / 140
33
Interest rate hedges
In May 2015 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 in August 2019 and the hedged amount is EUR
121,500 thousand with a fixed interest rate of 0.94%. At 31 December 2015, the fair value of the
swaps amounted to EUR 2,592 thousand and was recognised as a financial liability.
11.- Inventories
The detail of “Inventories” in the balance sheets at 31 December 2015 and 2014 is as follows:
Thousands of euros
Programme rights, net-
Rights on outside productions
336,601
280,497
In-house productions and programmes in process
25,170
18,782
Sports broadcasting rights
14,568
3,214
Inventory write-downs - outside productions
(35,545)
(37,800)
340,794
264,693
Consumables and other inventories-
Dubbings, soundtracks and titles
2,356
2,454
Other materials
1,023
1,026
3,379
3,480
Advances to suppliers
5,832
17,712
350,005
285,885
“Advances to Suppliers” in the accompanying balance sheets as at 31 December 2015 and 2014
includes basically advances paid in connection with outside production commitments and live
broadcasting.
The changes in the write-downs relating to “Inventories” in the accompanying balance sheets were
as follows (in thousands of euros):
Balance at
01/01/15
Additions
Transfers
Disposals or
reductions
Balance at
31/12/15
Inventory
write-downs
(37,800)
-
-
2,255
(35,545)
Balance at
01/01/14
Additions
Transfers
Disposals or
reductions
Balance at
31/12/14
Inventory
write-downs
(33,754)
(6,347)
529
1,772
(37,800)
The write-downs arose since it was decided that certain titles would not be marketable and it was
not likely that they would form part of the Company’s programme schedule. In addition, in 2014 in
relation to the impact of the shutdown of three channels (see Note 1), an adjustment of EUR 3
million was made to the value of certain audiovisual rights, as it was no longer possible to
broadcast the channels. These write-downs were recognised under "Programme Amortisation and
Other” in the accompanying statement of profit or loss.
At 31 December 2015, the Company had commitments, mainly for the purchase of audiovisual
property rights and programme production, amounting to EUR 299,204 thousand (31 December
2014: EUR 279,146 thousand). In addition, the Company has purchase commitments to
distributors, the definitive amount and price of which will be determined once the programmes are
produced and, in certain cases, by establishing the acquisition price on the basis of box-office
takings. In 2015 the best estimate of these commitments amounted to EUR 120,913 thousand
(2014: EUR 94,312 thousand).
It is estimated that in 2016 inventoriable in-house productions will be amortised in full and
approximately EUR 170,000 thousand of programme rights on outside productions (see Note 4.7).