Chrysler 2011 Annual Report Download - page 308

307
Fiat S.p.A. - Statutory
Financial Statements
at 31 December 2011
20. Provisions for employee benefits and other non-current provisions
At 31 December 2011, this item totaled €137,364 thousand, an increase of €117,292 thousand over 31 December 2010, and consisted of the following:
(€ thousand)
31 December
2010 Accruals Utilizations
Other
changes
31 December
2011
Provisions for employee benefits and similar 19,051 1,279 (7,339) 1,840 14,831
Provisions for stock option and stock grant plans - 6,728 (3,483) 118,359 121,604
Other non-current provisions 1,021 - (92) - 929
Total provisions for employee benefits and
other non-current provisions 20,072 8,007 (10,914) 120,199 137,364
Provisions for employee benefits and similar provisions
The Company provides post-employment benefits to employees, either directly or through contributions to independently administered funds.
Those benefits are generally based on individual compensation and length of service. Existing obligations relate to both active employees and retirees and
include both defined contribution and defined benefit plans.
In relation to defined contribution plans, the Company pays contributions to publicly or privately-administered pension institutions on the basis of legal and
contractual obligations, as well as on a voluntary basis. Once those contributions have been made, the Company has no further obligation. Liabilities for
contributions due but unpaid at the balance sheet date are included under other debt (see Note 26). The cost for the period is based on services rendered
by the employee for the period and recognized under personnel costs (see Note 5).
For defined benefit plans, the liability 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 also grants certain other deferred benefits to employees, which are generally paid when the employee has completed a pre-determined
length of service. Measurement of the related obligation reflects the probability of payment and the period over which the benefit will be paid. Provisions
for those obligations are calculated on an actuarial basis using the Projected Unit Credit Method. The corridor approach is not applied for actuarial gains
and losses related to such obligations.
Changes in provisions for employee benefits during the year were as follows:
(€ thousand)
31 December
2010 Accruals Utilizations
Other
changes
31 December
2011
Post-employment benefits:
- Leaving entitlement (TFR) 5,578 103 (1,274) 420 4,827
- Other 12,513 1,121 (5,896) 1,344 9,082
Total post-employment benefits 18,091 1,224 (7,170) 1,764 13,909
Other long-term employee benefits 960 55 (169) 76 922
Total provisions for employee benefits and similar provisions 19,051 1,279 (7,339) 1,840 14,831