Onerous agreements
The Group has classified a number of hotel lease agreements, to which it is committed between 2013 and 2030 and on which the Group makes a loss, as onerous.
Cancellation of these agreements could force the Group to make full payment of rent for the outstanding years of the lease or compensation, where applicable.
The provisions for 2013 include EUR 4,019 thousand corresponding to the increase in the provision for onerous contracts. Further, the applications include the
application of EUR 6,149 thousand corresponding to the hotels no longer managed by the Group.
Provisions for pensions and similar obligations
The “Provisions for pensions and similar obligations” account includes the pension fund of a certain number of employees of the Netherlands business unit, in addition
to T.F.R. (Trattamento di fine rapporto), or amount paid to all workers in Italy at the moment they leave the company for any reason whatsoever. This is another
remuneration element, subject to deferred payment and allocated annually in proportion to fixed and variable remuneration both in kind and in cash, which is valued on
a regular basis. The annual amount to be reserved is equivalent to the remuneration amount divided by 13.5. The annual cumulative fund is reviewed at a fixed interest
rate of 1.5% plus 75% of the increase in the consumer price index (CPI).
At the end of 2013, the liabilities entered against this itemwere of €17,951 thousand (€23,321 thousand at 31 December 2012).
The breakdown of the main hypotheses used to calculate actuarial liabilities is as follows:
2013
2012
Discount rates
5.75%
5.75%
Expected annual rate of salary rise
2.50%
2.50%
Expected return from assets allocated to the plan
4.75%-5.75%
4.75%-5.75%
No plan reductions or settlements came about in 2013. Any actuarial gains and losses generated were not material in any case (Note 4.19).
Restructuring provision
The de-recognition of restructuring provisions is attributable to the restructuring plan that the Group passed as regards reorganisation in Italy and Spain that took place
during 2013 and is expected to end in 2014. At the end of 2013, the Group’s provisions amounted to €4,864 thousand.
22.-
TAX NOTE
Balances with Public Administrations
The debit balances with Public Administrations item at 31 December 2013 and 2012 is as follows:
Thousand euros
2013
2012
Deferred tax assets
Tax credits
140,048
140,810
Tax assets due to asset impairment
38,735
40,591
Tax withholdings of workforce
1,437
1,137
Derivative financial instruments
-
10,932
Other prepaid taxes
18,562
17,469
198,782
210,939
Thousand euros
2013
2012
Short term taxes receivable
Corporation Tax
4,746
5,119
Value Added Tax
29,196
24,941
Other tax receivables
5,750
7,906
Total
39,692
37,966
The balances of the “Deferred tax assets” itemmainly correspond to the tax withholdings that arose as a consequence of the depreciation of certain assets, and from the
activation of negative tax bases.
The movements of the “Deferred tax assets” item in 2013 and 2012 are as follows:
REPORT ONTHE CONSOLIDATED FINANCIAL STATEMENTS
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