211 348
211
have filed actions in the High Court in London against certain
cable manufacturers, including certain Prysmian Group
companies, to obtain compensation for damages allegedly
suffered as a result of the alleged anti-competitive practices
condemned by the European Commission in the decision
adopted in April 2014.
The above events have led to the recognition in the 2014
income statement of a net release of Euro 31 million, classi-
fied as non-recurring items.
As at 31 December 2014, the amount of the provision is
approximately Euro 170 million.
Despite the uncertainty of the outcome of the investigations
underway and potential legal action by customers as a result
of the decision adopted by the European Commission, the
amount of this provision is considered to represent the
best estimate of the liability based on the information now
available.
15.
EMPLOYEE BENEFIT OBLIGATIONS
The Group provides a number of post-employment benefits
through programmes that include defined benefit plans and
defined contribution plans.
The defined contribution plans require the Group to pay, under
legal or contractual obligations, contributions into public or
private insurance institutions. The Group fulfils its obliga-
tions through payment of the contributions. At the financial
reporting date, any amounts accrued but not yet paid to the
above institutions are recorded in “Other payables”, while the
related costs, accrued on the basis of the service rendered by
employees, are recognised in “Personnel costs”.
The defined benefit plans mainly refer to Pension plans,
Employee indemnity liability (for Italian companies), Medical
benefit plans and other benefits such as seniority bonuses.
The liabilities arising from these plans, net of any assets
serving such plans, are recognised in Employee benefit obliga-
tions and are measured using actuarial techniques.
Employee benefit obligations are analysed as follows:
31 December 2014
31 December 2013 (*)
Pension plans
275
230
Employee indemnity liability (Italian TFR)
24
22
Medical benefit plans
25
23
Termination and other benefits
36
33
Incentive plans
-
-
Total
360
308
(*) The previously published prior year consolidated financial statements have been restated following the adoption of IFRS 10 and IFRS 11. Further details can
be found in Section C. Restatement of comparative figures.
Pension plan amendments in 2014
During 2014, the liabilities accrued after 1996 relating to the
pension plan managed by Stichting Pensioenfonds Draka
Holding, to which three Dutch legal entities were party, were
transferred to Pensioenfonds van de Metalektro - PME, an
industry-wide multi-employer plan. Liabilities accrued before
1996 have remained with the employer companies and are
fully funded, meaning that the full value of this liability is
covered by the value of assets.
This transaction has resulted in the recognition in the 2014
income statement of the asset ceiling, deemed to be un-
recoverable, in accordance with the accounting treatment
prescribed by IFRIC 14. The related loss of Euro 8 million has
been classified as a non-recurring item.
PENSION PLANS
Pension plans relate to defined benefit pension schemes that
can be “Funded” and “Unfunded”.
Pension plan liabilities are generally calculated according
to employee length of service with the company and the
remuneration paid in the period preceding cessation of em-
ployment.
(in millions of Euro)