Page 206 - ENAV eng_Relazione_Finanziaria_Annuale_2014

204 ENAV – 2014 Financial Statements

16. Provisions for risks and charges

Provisions for risks and charges total ¤8,376 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 4,242 0 (1,283) 2,959
personnel litigation
1,349 868 0 2,217
Provision for risks from
other disputes 3,200 00 3,200
8,791 868 (1,283) 8,376
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 ¤1,283 thousand over
the year, of which ¤700 thousand relates to the termination of disputes
following settlements or cases in which the courts found against the
Company and ¤583 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 Company. At 31 December 2014, the total
amount of judicial claims relating to pending disputes where the risk of
loss has been assessed by the Company’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 ¤868 thousand over the year,
relating to disputes over price revisions connected with tendered contracts
following changes in the orientation of case law on the subject, which
more specifically extended the applicability of price revision mechanisms
to contracts falling within the “special sectors” sphere. At 31 December
2014, the Company’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 Company 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 Company is
taking all the action required to safeguard its interests, including by way of
counterclaim.

Provisions for other risks remain unchanged compared to 31 December
2013 and relate to the liability that could emerge with respect to the
rescission of the agreement for the modernization of the flight assistance
systems at Parma airport, from which ENAV withdrew in early 2013.