Current assets

[20] Inventories

Inventories are analyzed as follows:

The reduction in inventories is also attributable to the positive impact of actions taken under the reorganization plan in terms of production sources and supply chain efficiency.

The valuation of closing inventories at weighted average cost is not appreciably different from their value at current purchase cost.

Inventories are stated net of the write-down provision. Movements in the write-down provision are as follows:

[21] Trade receivables

Short-term and long-term trade receivables and the related provisions recognized for doubtful accounts, are as follows at December 31, 2009:

The total provision for doubtful accounts corresponds to 7.1% of trade receivables, staying in line with the prior year. Movements in this provision during the year are summarized below:

Trade receivables also include Euro 111 thousand in amounts due from the holding company Edizione S.r.l.

A total of Euro 4,697 thousand in receivables not yet due had been factored without recourse at December 31, 2009 (Euro 7,423 thousand at December 31, 2008).

[22] Tax receivable

This balance includes:

[23] Other receivables, accrued income and prepaid expenses

This balance includes:

Other receivables, which amount to Euro 44,054 thousand (Euro 68,078 thousand at December 31, 2008), mainly refer to advances given to various suppliers and employees, receivables from social security institutions as well as receivables for fixed asset disposals. Receivables from holding and related companies mainly include the receivables due from Edizione S.r.l. in relation to the group tax election for Italian companies.

Prepaid expenses for taxes and duties include Euro 2,497 thousand for the flat-rate tax that released from further tax the higher values arising on the business combination of My Market S.r.l. in June 2009. The prepaid tax will be released to the statement of income over the amortization/depreciation period of the associated assets, while the total amount of the tax itself will be paid in June 2010.

[24] Financial receivables

Other current financial receivables and assets include the accruals and deferrals relating to financing operations as well as the time value component of derivatives.

The positive differentials on forward exchange contracts include the exchange rate component accruing on derivatives that hedge economic, transaction and translation risks as detailed below:

The differentials arising from fair value hedges refer to exchange risk hedging instruments, the change in whose value is largely offset by the change in the underlying hedged item.

The differentials relating to cash flow hedges also refer to exchange rate risk management. The amounts recognized in the balance sheet represent the effect of hedging highly probable transactions such as future sales and purchases in currencies other than the Euro which will take place by the end of the following year. As a result, it is reasonable to believe that the related effect of hedging deferred in shareholders' equity in the "Fair value and hedging reserve" will be recognized in the statement of income in the next year.

Differentials from transactions hedging translation exchange risk include the balance sheet recognition of hedges outstanding at year end against net investments in foreign subsidiaries.

Details of the amounts reversed by the Group from reserves to the statement of income can be found in the "Consolidated statement of comprehensive income" included in the section containing the financial statements.

[25] Cash and banks

Checks refer to amounts received from customers in the last few days of the reporting year.

Average interest rates reflect market returns for the various currencies concerned.

[26] Assets held for sale

This balance reports, at the lower of net book value and fair value less costs to sell, the factory in Piedimonte that is no longer operating, and the factory in Piobesi Torinese which ceased manufacturing activity in the first half of 2009.

Movements in this balance over the year are as follows: