92
19.- PROVISIONS FOR RISKS AND CHARGES
The breakdown of “Provisions for risks and charges” at 31 December 2014 and 2013, together with the main movements recognised in those years
were as follows:
€Thousand
Balance at
31/12/2012
Additions
Applications/
Reductions
Transfers
Balance at
31/12/2013
Provisions for contingencies and extraordinary costs:
Onerous contracts
26,344
12,732
-
(11,835)
27,241
Provisions for pensions and similar obligations
23,321
58
(5,428)
-
17,951
Other claims
14,126
5,741
(726)
2,402
21,543
63,791
18,531
(6,154)
(9,433)
66,735
Provisions for contingencies and current expenses:
Onerous contracts
33,477
-
(21,504)
9,433
21,406
Restructuring provisions
19,981
5,275
(20,392)
-
4,864
53,458
5,275
(41,896)
9,433
26,270
Total
117,249
23,806
(48,050)
-
93,005
€Thousand
Balance at
31/12/2013
Additions
Applications/
Reductions
Transfers
(Note 9)
Balance at
31/12/2014
Provisions for contingencies and extraordinary costs:
Onerous contracts
27,241
14,809
(4,950)
(10,114)
26,986
Provisions for pensions and similar obligations
17,951
209
(4,131)
(232)
13,797
Other claims
21,543
3,390
(7,607)
(1,179)
16,147
66,735
18,408
(16,688)
(11,525)
56,930
Provisions for contingencies and current expenses:
Onerous contracts
21,406
-
(21,406)
10,114
10,114
Restructuring provisions
4,864
4,740
(4,883)
-
4,721
26,270
4,740
(26,289)
10,114
14,835
Total
93,005
23,148
(42,977)
(1,411)
71,765
Onerous contracts
The Group has classified a number of hotel lease agreements, to which it is committed between 2014 and 2041 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 the year include €3,456 thousand corresponding to the increase in the provision for onerous contracts (see note 25.6), while the
applications include the application of €282 thousand corresponding to a hotel no longer managed by the Group.
Provision 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, and the T.F.R. (Trattamento di fine rapporto), an amount paid to all workers in Italy at the moment they leave the company for any
reason. This is another remuneration element, whose payment is deferred and annually allocated 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 2014, the liabilities entered against this item were of €13,797 thousand (€17,951 thousand at 31 December 2013).
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
