Provisions for pensions and similar obligations
The item “Provision for pensions and similar obligations” includes the pension fund of certain employees of the Netherlands business unit, as well as 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 year-end 2012, the liabilities booked under this item amounted to €13,522
thousand (€15,470 thousand at 31 December 2011).
The projected unit credit method is used to calculate the obligations associated with this pension plan.
The breakdown of the main hypotheses used to calculate actuarial liabilities is as follows:
2012
2011
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 reductions or settlements related to the plan occurred in 2012. Any actuarial gains and losses generated were not significant (see Note 4.19).
Restructuring provision
The allowances booked during 2012 under the item “Restructuring provision” include the short-term provision of €19.981 million to cover the restructuring
plan that the Group approved for reorganisation purposes, and which is being carried out both in Spain and Italy (see Note 4.19).
22.
TAX NOTE
The breakdown of deferred taxes, by country and item, at 31 December 2012 is as follows:
€ Thousand
Tax credits
Prepaid Taxes
Total Assets
Liabilities
Spain
134,984
50,103
185,087
68,712
Italy
5,090
6,743
11,833
113,901
Germany
-
3,947
3,947
1,152
Others
736
9,581
10,317
50,174
Total
140,810
70,374
211,184
233,939
Balances with Public Administrations
The composition of the debit balances with Public Administrations at 31 December 2012 and 2011 is as follows:
€ Thousand
2012
2011
Deferred tax assets
Tax credits
140,810
83,124
Tax assets due to asset impairment
40,591
28,407
Tax withholdings of personnel
1,137
1,220
Derivative financial instruments
10,932
11,845
Other prepaid taxes
17,714
10,340
211,184
134,936
€ Thousand
2012
2011
Short-term taxes receivable
Corporate Income Tax
5,270
4,355
Value Added Tax
24,955
31,117
Other tax receivables
7,755
8,491
Total
37,980
43,963
REPORT ON THE CONSOLIDATED
FINANCIAL STATEMENTS
95
