Chrysler 2010 Annual Report Download - page 347

FIAT S.P.A.
STATUTORY
FINANCIAL
STATEMENTS AT
31 DECEMBER
2010
NOTES
346
The provisions for employee benefits and similar may be summarized as follows:
Employee severance indemnity
The employee severance indemnity represents the obligation to employees under Italian law (amended by Law 296/06) that has accrued up to 31 December
2006 and that will be settled when the employee leaves the company. In certain circumstances, a portion of the accrued liability may be given to an employee
during his working life as an advance. This is an unfunded defined benefit plan, under which the benefits are almost fully accrued, with the sole exception
of future revaluations.
Other
The item other includes post-employment benefits accrued by employees, former employees and the Chief Executive Officer following additional or individual
labor agreements. These schemes are unfunded.
Other long-term employee benefits
This item mainly includes benefits which are due to employees who reach a specified seniority.
Post-employment benefits at 31 December 2010 and 2009 are made up as follows:
Employee severance indemnity Other Total
31 31 31 31 31 31
December December December December December December
(€ thousand) 2010 2009 2010 2009 2010 2009
Present value of unfunded defined
benefit plan obligations 4,993 6,280 11,736 17,486 16,729 23,766
Unrecognized actuarial gains/(losses) 585 708 777 (1,182) 1,362 (474)
Net liability 5,578 6,988 12,513 16,304 18,091 23,292
The amounts recognized in the income statement for post-employment benefits are as follows:
Employee severance indemnity Other Total
(€ thousand) 2010 2009 2010 2009 2010 2009
Service cost:
Current service cost - - 919 1,084 919 1,084
Net actuarial (gains)/losses
recognized during the year (9) - - 88 (9) 88
Total service cost (9) - 919 1,172 910 1,172
Interest costs 191 341 326 743 517 1,084
Total cost/(return) for
post-employment benefits 182 341 1,245 1,915 1,427 2,256
The items current service cost and net actuarial (gains) losses recognized during the year are recorded in the income statement item personnel costs (see
Note 5) if relating to employees and in other operating costs (see Note 6) if relating to the Chief Executive Officer.
Interest costs are recognized under financial income/(expense) in the income statement (see Note 7).