Page 120 - ENAV eng_Relazione_Finanziaria_Annuale_2014

118 ENAV – 2014 Financial Statements

16. Provisions for risks and charges

Provisions for risks and charges total ¤12,585 thousand, of which the
current portion amounts to ¤4,693 thousand, and underwent the following
changes during the year:

31.12.2013 Increases Decreases 31.12.2014

Provision for risks from 5,044 41 (1,917) 3,168
personnel litigation
4,449 1,768 0 6,217
Provision for risks from
other disputes 3,200 0 0 3,200
12,693 1,809 (1,917) 12,585
Provisions for other risks

Total provisions

The provision for risks from personnel litigation, of which the current
portion amounts to ¤2,493 thousand, decreased by ¤1,636 thousand over
the year, of which ¤1,053 thousand relates to the termination of disputes
following settlements or cases in which the courts found against the
Company and ¤864 thousand to releases to income in situations where
the provisions were considered to be in excess with respect to the risk
of the litigation pending for the Group. At 31 December 2014, the total
amount of judicial claims relating to pending disputes where the risk of
loss has been assessed by the Group’s counsel as “possible” amounts to
¤8.3 million.

The provision for risks from other disputes, of which the current portion
amounts to ¤2,200 thousand, increased by ¤1,768 thousand over the
year, part of which relating to disputes over price revisions connected with
tendered contracts following changes in the orientation of case law on the
subject, which extended the applicability of price revision mechanisms to
contracts falling within the “special sectors” sphere, and ¤900 thousand
to the contingent liabilities arising from the termination of the agreement
for the supply of meteo systems for modernizing the Palermo airport
system and regarding the lack of availability of certain materials forming
part of this agreement. As contractually provided, an arbitration panel was
appointed the previous year to settle the dispute, meaning to establish
the amounts receivable and amounts payable between the parties, and
the panel’s work is currently at a preliminary stage. At 31 December 2014,
the Group’s counsel has estimated the costs relating to pending disputes
where the risk of loss is “possible” to be ¤1.2 million. In addition, the Group
is involved in another dispute, currently at a preliminary stage, that has
been assessed as “possible” by the Company’s lawyers but for which
outside counsel are unable to estimate the amount of any loss, given the
stage of proceedings. Through its legal counsel the Group is taking all the
action required to safeguard its interests, including by way of counterclaim.