96 REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
Thousands of euros
Balance at
31/12/2013
Additions
Applications/
Reductions
Transfers
Balance at
31/12/2014
Provisions for contingenciesand 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 2015 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.
Resources for the year include an amount of 2,609 thousand euros relating to the updating of the provision for onerous contracts (see Note 24.6)
and a negative exchange rate effect amounting to 25.6 thousand euros. Applications for the year include 9,967 thousand euros in automatic
reversion due to the evolution of the maturity of the contracts and 9,046 thousand euros that correspond to the lower provisions required by the
improved performance of the hotels with onerous contracts.
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 2015, the liabilities entered against this item were of 14,202 thousand euros (13,797 thousand euros at 31 December 2014).
The breakdown of the main assumptions used to calculate actuarial liabilities is as follows:
2015
2014
The Netherlands
Italy
The Netherlands
Italy
Discount rates
2.70%
0.15%
2.10%
0.18%
Expected annual rate of salary rise
2.50%
1.90%
2.50%
1.90%
Expected return from assets allocated to the plan
2.70%
2.18%
2.10%
2.50%
Restructuring provision
The restructuring provision corresponds to the restructuring plan approved by the Group in connection with the reorganisation of the Group in
previous years. At the end of 2015, the Group’s provisions amounted to 1,002 thousand euros.
