Chrysler 2008 Annual Report Download - page 302

20. Provisions for employee benefits and other non-current provisions
At 31 December 2008, provisions for employee benefits and other non-current provisions amounted to €26,418 thousand, an
increase of €5,116 thousand as compared to 31 December 2007 and was made up as follows:
At At
(€ thousands) 31 December 2007 Accruals Utilisations Other changes 31 December 2008
Provisions for employee benefits and similar 20,037 2,355 (1,621) 4,392 25,163
Other non-current provisions 1,265 – (10) – 1,255
Total Provisions for employee benefits and
other non-current provisions 21,302 2,355 (1,631) 4,392 26,418
Provisions for employee benefits and similar provisions
The company provides post-employment benefits for its employees, either directly or by contributing to independently
administered funds.
The benefits are generally based on the employees’ remuneration and years of service. The obligations relate both to active
employees and to retirees.
The company provides post-employment benefits under defined contribution and/or defined benefit plans.
In the case of defined contribution plans, the company pays contributions to publicly or privately administered pension insurance
plans on a mandatory, contractual or voluntary basis. Once the contributions have been paid the company has no further payment
obligations. Liabilities for contributions accrued but not yet paid at the balance sheet date are included in the item Other payables
(see Note 26). The company recognises the contribution cost for the year on the basis of the service rendered by the employee in
the item Personnel costs (see Note 5).
In the case of post-employment benefits the company’s obligation is determined on an actuarial basis, using the Projected Unit
Credit Method. Any resulting actuarial gains and losses are accounted for using the corridor approach.
Finally, the company grants certain other long-term benefits to its employees; these benefits include those generally paid when the
employee attains a specific seniority. In this case, the measurement of the obligation reflects the probability that payment will be
made and the period over which the payment is expected to be made. The amount of this obligation is calculated on an actuarial
basis using the Projected Unit Credit Method. The corridor approach is not used for the actuarial gains and losses arising from this
obligation.
Changes in provisions for employee benefits during the year are as follows:
At At
(€ thousands) 31 December 2007 Accruals Utilisations Other changes 31 December 2008
Post-employment benefits:
- Employee severance indemnity 6,164 309 (704) 1,250 7, 0 1 9
- Other 12,263 2,046 (462) 2,956 16,803
Total post-employment benefits 18,427 2,355 (1,166) 4,206 23,822
Other long-term employee benefits 1,610 – (455) 186 1,341
Total Provisions for employee benefits and similar provisions 20,037 2,355 (1,621) 4,392 25,163
Fiat S.p.A. Statutory Financial Statements at 31 December 2008 301