Annual Report 2010 (PDF, 5.2MB) - Panalpina Annual Report 2012

Consolidated and Annual Financial Statements 2010
128
2009 (in thousand CHF)
Employee
benefits and
others
Outstanding
vacation
entitlement
Claims
Restructuring
Total
Balance on 1 January 31,172 24,941 35,564 0 91,677
Translation differences 1 736 (26) 0 711
Addition 79,021 25,252 12,062 10,645 126,980
Reversal of unused amount (10,293) (11,926) (4,840) (2,753) (29,812)
Charged in income statement 68,728 13,326 7,222 7,892 97,168
Utilization (54,616) (17,926) (9,777) (3,866) (86,185)
Balance on 31 December 45,285 21,077 32,983 4,026 103,371
Apart from outstanding vacation entitlement and the current portions of provisions as disclosed in note 26, provisions and other liabilities
include personnel profit participation and related social security costs and payroll taxes as well as compliance consultancy fees. During
the period under review, CHF 30.7 million of personnel profit participation (2009: CHF 15.3 million) was paid out. For the current year
additional personnel profit participation of CHF 51.2 million (2009: CHF 40.9 million) including related social security costs and payroll
taxes was recognized.
As disclosed in notes 3 and 26, claim provisions include the current portion of certain claims brought forward against the Group by customers
and forwarding agents. In addition, a short-term provision in the amount of CHF 31.0 million was recorded to cover the fines,
legal penalties and compliance consultancy fees relating to the settlement of the US Foreign Corrupt Practices Act (FCPA) and the US as
well as the New Zealand antitrust investigations.
During the period under review, the management reassessed the cash outflow of claims and came to the conclusion that based on past
utilization the duration until claims can be settled increased substantially. The reclassification to long-term claim provisions of CHF 15.7 million
reflects this change. The balance as of 31 December is expected to be utilized within one year.
Restructuring provisions arise from planned programs that materially change the scope of business undertaken by the Group or the manner
in which business is conducted. Such provisions include only the costs necessarily entailed by the restructuring which are not associated
with the recurring activities of the Group. The restructuring provisions newly added in 2009 concern headcount reductions in all functions
mainly in operations and marketing and sales in various countries. In 2010, additionally recognized restructuring provisions related to
adjustments of the previous year estimations. During the period under review, no additional restructuring plan was approved. The timings
of these cash outflows are expected to occur within one year.
29 Related parties
Key management personnel compensation
Key management personnel consist of the Board of Directors and the Executive Board. The members of the Board of Directors receive
a fixed annual compensation and participate in certain equity compensation plans (see note 8). In 2010, there were 6 (2009: 7) members
of the Board of Directors.
The compensation of the Executive Board consists of a fixed portion and a variable portion, which depends on the course of business
and the individual manager’s performance. In addition, members of the Executive Board receive indirect benefits and are able to participate
in certain equity compensation plans (see note 8). In 2010, there were 5 (2009: 7) members of the Executive Board.
Panalpina Annual Report 2010