KGHM POLSKA MIEDŹ S.A.
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KGHM POLSKA MIEDŹ S.A. GROUP

Annual consolidated financial statements

  At
 31 December 2011

31 December 2010

restated

Trade and other non-current payables    
Trade payables 8 024 11 732
Put option liabilities for employee shares 74 437 68 872
Other financial liabilities 13 718 11 562
Total financial liabilities (scope of IFRS 7) 96 179 92 166
Deferred income 32 864 27 568
Other non-financial liabilities 706 126
Total non-financial liabilities 33 570 27 694
Total trade and other non-current payables 129 749 119 860

Trade and other current payables

   
Trade payables 989 030 890 300
Payables due to unsettled derivatives* 17 073 49 690
Other financial liabilities 29 587 20 956
Total financial liabilities (scope of IFRS 7) 1 035 690 960 946
Other financial liabilities ( IAS 19 – Employee benefits) 181 316 168 419
Total financial liabilities 1 217 006 1 129 365
Liabilities due to taxes and social security 316 741 307 039
Other non-financial liabilities 53 747 46 006
Special funds 138 307 112 054
Deferred income 35 732 22 132
Accruals 420 560 377 981
Total non-financial liabilities 965 087 865 212
Total trade and other current payables 2 182 093 1 994 577
Total trade and other non-current and current payables 2 311 842 2 114 437

* Payables due to unsettled derivatives represent the derivatives whose date of settlement falls on 4 January 2012 for the balance as at 31 December 2011 and 5 January 2011 for the balance as at 31 December 2010.

Accruals consist mainly of one-off bonus paid after the approval of the annual financial statements and other employee benefits resulting from the collective labour agreements in the amount of PLN 305 389 thousand (PLN 294 930 thousand as at 31 December 2010) and costs due to unused annual leave in the amount of PLN 22 308 thousand (PLN 19 395 thousand as at 31 December 2010).

Put option liabilities for employee shares in the amount of PLN 74 437 thousand presented as non-current payables (as at 31 December 2010, PLN 68 872 thousand) represent liabilities due to an irrevocable purchase offer submitted by Group companies as part of a sales agreement by the State Treasury of shares of WPEC w Legnicy S.A., „Uzdrowisko Cieplice” Sp. z o.o., ZUK S.A., Uzdrowisko Połczyn S.A., Uzdrowisko “Świeradów-Czerniawa” Sp. z o.o., CENTROZŁOM WROCŁAW S.A., all other shares held by the State Treasury and not acquired by the entitled employees of these companies and shares acquired by employees (shares acquired from the State Treasury during the privatisation of these companies). The liabilities were valued at the best estimate of the discounted amount payable, based on contractual provisions respecting the purchase price of these shares; the purchase price is similar to the fair value of these shares. The put option liabilities for employee shares are discounted by applying a discount rate at the level of 5.8% assuming a 5-year period of realisation. The put option liabilities for employee shares are recognised with debit entry in retained earnings in „Valuation of the put option for employee shares”.

Details on measurement of put option liabilities for employee shares are presented in the table below:

Companies whose employees were offered shares of companies free of charge by the State Treasury under the Privatisation Act Number of employee sharesShare price
(PLN))
Amount of liability
at
 31 December 201131 December 2010
restated
WPEC S.A. w Legnicy 1 770 000 20.00 29 891 28 576
„Uzdrowisko Cieplice” Sp. z o.o. 13 110 256.50 2 684 2 573
Zespół Uzdrowisk Kłodzkich S.A 379 500 40.06 12 133 11 632
Uzdrowisko Połczyn S.A. 179 550 16.51 2 366 2 268
Uzdrowisko „Świeradów-Czerniawa” Sp. z o.o. 1 881 1 560.30 2 514 -
CENTROZŁOM WROCŁAW S.A. 1 650 000 18.87 24 849 23 823
Put option liabilities for employee shares     74 437 68 872
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