Page 119 - enav_27052016

ENAV Group Consolidated Financial Statements

An arbitration court has been entrusted with settling this dispute, as per the terms
of the contract, in order to establish the amounts receivable and amounts payable
between the parties. The arbitration should be completed by 2016. and consequently
the provision has been reclassified under current liabilities.
At 31 December 2015, the estimated costs associated with pending disputes, where
there is a risk of a possible adverse outcome has been assessed by the Group’s
lawyers - to amount to 1.2 million. It is noted further that with regard to another
dispute assessed as being possible by the Company’s lawyers, judgement is pending
and the concluding statements and responses have been filed. The case is especially
complex and involved, and the legal questions under discussion leave ample margin
for the Court’s discretion. Nevertheless, the plaintiff’s preliminary motions have not
been accepted, which leads one to presume a negative outcome for the demands by
applicant (who has the burden of proof). The Company has filed a counter-claim for
an indeterminate amount.
The item “provisions for other risks” increased in the period by € 1,792 thousand
following a provision made to cover certain amounts capitalised to property, plant
and equipment under construction, referring to works that may no longer be usable
in the future.

19. Tfr and other employee benefits

The TFR and other employee benefits amounts to € 58,068 thousand and comprises
the liability for employees’ termination indemnity (Trattamento di Fine Rapporto),
governed by Article 2120 of the Italian Civil Code, which represents the estimate of
the amount payable to employees of the ENAV Group on an actuarial basis, upon the
termination of their employment.
Changes during the year in the liability for the TFR and other employee benefits were
as follows:

Liability for employee benefits at the beginning of the year 31.12.2015 31.12.2014
Interest cost 60.049 53.655
Actuarial (gains)/losses on defined benefits 1.022 1.689
Advances. settlements and other changes (1.324) 6.994
Liability for employee benefits at the end of the year (1.679) (2.289)
58.068 60.049

The TFR provision was utilised for € 1,679 thousand following the payment made to
staff leaving during the period, advances paid to employees that applied for such and,
to a lesser extent, to the direct monthly payment of TFR as an integrative portion
of remuneration (QU.I.R.) starting from March 2015 in accordance with the 2015
Stability Law, in respect of staff that exercised the option.

118 ENAV - Annual financial report 2015