VÝROČNÍ ZPRÁVA ANNUAL REPORT - Philip Morris

ANNUAL REPORT 2008 | CONSOLIDATED FINANCIAL RESULTS
Termination benefits recognised in 2008 include a provision for redundancy payments of CZK 22 million recognised as at December 31, 2008 (Note 18).
The Group is legally required to make contributions to government health, pension and unemployment schemes. During 2008 and 2007, the Group paid
contributions at a rate of 35% of gross salaries and is not required to make any contributions in excess of this statutory rate.
The Group has a voluntary pension plan for employees under which the Group makes contributions on behalf of the Group’s employees to approved pension
plan providers, under defined contribution schemes.
Principles of employment and remuneration are covered by the collective agreement. Audit of the observancy of labor law regulations in the Company takes
place during the collective labor agreement negotiations.
18. PROVISIONS
In 2008, management of the Company approved a plan related to the restructuring of sales and distribution and to the transfer of certain procurement and
information services activities to the regional shared service centres in Madrid and Krakow. The estimated restructuring expense representing termination
payments to those made redundant were CZK 22 million as at December 31, 2008. The estimate was based on the number of employees identified in the plans
and the Collective Labour Agreement valid in 2008, which specified the amount to be paid to those affected.
As at the December 31, 2007, there were no provisions recognised.
19. OTHER OPERATING INCOME
(in CZK million) 2008 2007
Exchange rate gains 271 121
Gains on sale of material 10 6
Gains on sale of PP&E 40 12
Other 3 7
Total 324 146
20. OTHER OPERATING EXPENSE
(in CZK million) 2008 2007
Exchange rate loss 255 106
Bank charges 22 18
Other taxes & fees 5 3
Loss on sale of materials - 2
Other 6 7
Total 288 136
21. NET PROFITS AND LOSSES FROM FINANCIAL INSTRUMENTS
2008 Cash
(in CZK million) Receivables equivalents Payables Total
Operating income
Foreign exchange gain 139 83 49 271
Interest income - 86 - 86
Operating expense
Foreign exchange losses (106) (77) (72) (255)
Net gain / (loss) 33 92 (23) 102
2008 Cash
(in CZK million) Receivables equivalents Payables Total
Financial expense
Interest expense - (152) - (152)
Net loss - (152) - (152)
2007
(in CZK million) Receivables Cash Payables Total
Operating income
Foreign exchange gain 25 21 75 121
Interest income - 102 - 102
Operating expense
Foreign exchange losses (70) (11) (25) (106)
Net gain / (loss) (45) 112 50 117
47