Page 207 - ENAV eng_Relazione_Finanziaria_Annuale_2014

Notes to the Financial Statements of ENAV SpA 205

17. Tfr and other employee benefits

This item, totaling ¤40,202 thousand, consists of the liability for the Italian
employees’ leaving entitlement (TFR) which is governed by article 2120
of the Italian civil code, and represents the estimate of ENAV’s obligation
determined using actuarial techniques for the amounts to be paid to its
employees on termination of the employment relationship.

Changes during the year in the liability for the TFR and other employee
benefits were as follows:

Liability for employee 31.12.2014 31.12.2013
benefits at the beginning 35,239 38,445
of the year 1,117 1,034
5,239 (1,533)
Interest cost (1,393) (2,707)

Actuarial (gains)/losses 40,202 35,239
on defined benefits

Advances. settlements
and other changes

Liability for employee
benefits at the end
of the year

The utilization of the provision of ¤1,393 thousand consists of balances
paid to leavers during the year and advances made to personnel making a
request for such.

The difference between the previous balance on this account calculated
on the basis of the previous assumptions and the balance recalculated at
period end on the basis of the updated assumptions represents actuarial
gains (losses). This calculation led to actuarial losses of ¤5,239 thousand
in 2014 compared to actuarial profits of ¤1,533 thousand in 2013.

The main assumptions used to calculate the actuarial estimate of the TFR
liability at 31 December 2014 and 2013 were as follows:

Discount rate 31.12.2014 31.12.2013
Inflation rate
Employee turnover rate 1.49% 3.17%
Advance rate 1.50% 1.75%
4.00% 4.00%
2.50% 2.50%