8 Other current and non-current assets

Other current assets, which amount to €39 million (€52 million at 31 December 2016) and other non-current assets of €143 million (€138 million at 31 December 2016) break down as follows:

Other regulated activities (€89 million; €106 million at 31 December 2016) relate to the natural gas transportation service and refer to the shortfall in amounts invoiced compared with the restriction imposed by the regulator, of which the current portion accounts for €25 million (€37 million at 31 December 2016) and the non-current portion accounts for €64 million (€69 million at 31 December 2016).

The market value of derivatives outstanding at 30 June 2017 is as follows:

The assets arising from the market-value measurement of cash flow hedging derivatives (€1 million) refer to an Interest Rate Swap agreement, entered into in the first half of 2017. The I.R.S. agreement is used to hedge against interest rate fluctuations following a long-term bond issue worth €300 million. The five-year loan, due on 21 February 2022 pays a floating-rate related to the 3 month Euribor + 60 b.p.s. The IRS has converted the floating-rate liability into an equivalent fixed-rate liability benchmarked at 0.0408%.

The main characteristics of the derivative in question are summarised in the table below:

On 30 June 2017, there is also a Cross Currency Swap (CCS), entered into in 2013. The CCS is used to hedge against fluctuations in the exchange rate of a ¥10 billion long-term bond issue. The six-year bond has a maturity of 25 October 2019 and a half-yearly coupon with an annual fixed rate of 1.115%. The CCS has converted the fixed-rate, foreign-currency liability into an equivalent liability in Euro with a fixed annual rate of 2.717%.

The main characteristics of the derivative in question are summarised in the table below:

The reduction in assets rising from the market value measurement of hedging derivatives (-€23 million compared with those at 31 December 2016) is essentially due to the early extinguishment of an Interest Rate Swap (IRS) hedging contract relating to a €500 million bond loan issued on 22 October 2014 due on 21 April 2023.

The item “Other assets” (€92 million; €60 million at 31 December 2016) essentially comprises:

• assets in the transportation segment (€51 million), mainly recognised for lower quantities of fuel gas allocated by users in previous years pursuant to Resolution ARG/gas 184/09 compared with the quantities actually used in those years, adjusted in future years by increasing the quantity to be allocated by the users;
• prepayments (€23 million, including €11 million current portion and €12 million non-current portion) relating mainly to Upfront fees and the substitute tax on revolving credit lines³² (€18 million);
• security deposits (€12 million), relating mainly to the natural gas transportation segment.