• Edison 2003-2010 bonds, par value 700 million euros. These bonds, which have no provisions for a step up/step down mechanism, accrue interest at a fixed rate of 5.125%.
  • Edison 2004-2011 bonds, par value 500 million euros, issued in July 2004 with a variable coupon rate set quarterly at 60 basis points above the three-month Euribor. These bonds have no provisions for interest rate indexing tied to changes in credit rating.
  • ETS 2003-2009 bonds, par value 195 million euros, issued on August 1, 2003 as a single class of asset-backed securities with limited recourse on the receivables purchased by ETS, a securitization company. These bonds bear a variable coupon rate, currently set at 2.515%. Interest is paid quarterly.
16. Long-term Borrowings and Other Financial Liabilities
This account totaled 1,822 million euros (1,821 million euros at December 31, 2004), including 1,072 million euros owed by Edipower Spa. Its main components are 1,757 million euros in bank borrowings, 30 million euros owed to leasing companies, 10 million euros payable to other lenders and 25 million euros payable to subsidiaries in liquidation. At December 31, 2005, available and unused lines of credit totaled about 1,500 million euros.
17. Other Liabilities
Other liabilities of 242 million euros include the liability that arises from the put-and-call option for the purchase of a 10% interest in Edipower (235 million euros) and interest-bearing deposits provided by customers in connection with contracts for the supply of natural gas.
Breakdown of Indebtedness by Maturity
The table below provides a breakdown of indebtedness due after one year:
(in millions of euros) 12/31/07 12/31/08 12/31/09 12/31/10 After 5 years Total
Bonds 1,441 - 197 701 499 2,838
Borrowings and other financial liab.:
- Bank debt 162 1,213 72 52 258 1,757
- Due to other lenders 9 12 11 2 31 65
Other liabilities 242 - - - - 242
Total 1,854 1,225 280 755 788 4,902
18. Current Liabilities
  12/31/05 12/31/04 Change
Short-term borrowings 655 805 (150)
Trade payables 1,275 857 418
Due to customers for contract work - 311 (311)
Current taxes payable 16 114 (98)
Other liabilities 438 691 (253)
Total current liabilities 2,384 2,778 (394)
The main current liability accounts are reviewed below:
  • Short-term borrowings include 618 million euros due to banks for principal and accrued interest and 37 million euros due to other lenders, 12 million euros of which are owed to leasing companies. The bank debt includes 66 million euros generated by measuring at fair value interest rate and foreign exchange derivatives.
  • Due to other lenders of 1,275 million euros are mainly obligations of the Group's core businesses, including 789 million euros owed by the electric power operations and 450 million euros payable by the hydrocarbons operations.
  • Due to customers for contract work, had a zero balance at December 31, 2005 due to the sale of the engineering operations.
  • Current taxes payable represent the liability for income taxes payable, less estimated payments made.
  • The main components of other liabilities of 438 million euros include the following: the liability related to the purchase of a 20% interest in Finel Spa (152 million euros), amounts owed to joint holders of permits and concessions for the production of hydrocarbons (72 million euros), payables owed for miscellaneous consulting and other services (52 million euros), excise and other taxes payable (39 million euros), amounts payable to government and local entities (27 million euros), commodity related liabilities stemming from the measurement of derivatives at fair value (9 million euros), amounts payable to the GRTN and the Single Buyer in connection with the valuation of derivatives (9 million euros), amounts payable to employees (22 million euros) and amounts owed to pension and social security institutions (15 million euros).
Disclosure of Derivative Positions on the Liability Side
of the Balance Sheet
The table below provides a breakdown of the liabilities recognized on the balance sheet upon measurement at fair value of derivative positions outstanding at the end of 2005, as required by IAS 39.
(in millions of euros) 12/31/05
Foreign exchange transactions 2
Interest rate transactions 64
Commodity transactions 9
Fair value recognized under current liabilities 75
of which:
- included among "Other liabilities" 9
- included among "Current financial liabilities" 66
The portion of these liabilities that represents cash flow hedges is offset by a reserve included in shareholders' equity.s