CONSOLIDATED FINANCIAL STATEMENTS >
EXPLANATORY NOTES
196
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
Despite the uncertainty of the outcome of the investigations
underway in the various jurisdictions, the amount of this
provision is considered to represent the best estimate of the
liability based on the information now available. It should be
noted, however, that the Commission’s decision is not final but
must be submitted to two more levels of review.
b) a net increase of approximately Euro 7 million for contractual
risks;
c) a net increase of approximately Euro 2 million for employment
disputes.
• utilisations of Euro 21 million mostly refer to employment
disputes, legal costs relating to antitrust investigations (Euro
2 million) and risks relating to contractual penalties and
guarantees.
Provisions for other risks and charges report a net decrease of
Euro 22 million, of which Euro 12 million for onerous contracts
relating to Prysmian PowerLink Services Ltd and Euro 6 million
in relation to the ending of a dispute with an agent of a Brazilian
subsidiary.
Provisions for environmental risks report a net decrease of Euro
5 million, largely due to the release of Euro 5 million by some of
the American subsidiaries.
Provisions for tax inspections report a net increase of Euro 4
million, mostly comprising Euro 9 million in new provisions and
Euro 4 million in releases, reflecting developments in the status
of unsettled tax assessments involving certain Group companies.
15.
EMPLOYEE BENEFIT OBLIGATIONS
Employee benefit obligations are analysed as follows:
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 obligations
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
obligations and are measured using actuarial techniques.
Employee benefit obligations also include liabilities relating to
long-term incentive plans for Group employees; more details
can be found in Note 21. Personnel costs.
(in millions of Euro)
31 December 2013
31 December 2012
Pension plans
230
241
Employee indemnity liability (Italian TFR)
22
25
Medical benefit plans
23
28
Termination and other benefits
33
29
Incentive plans
-
21
Total
308
344
