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5.21 Provisions
Analysis of provisions
Description As at Additions Utilisations Releases As at
1 Jan 2010 31 Dec 2010
Compensation for employees 773,219 0 0 773,219 0
food service facilities
Claims on airport charges 9,985,234 0 0 1,048,711 8,936,523
Restoration expenses 8,398,910 2,558,662 35,484 11,630 10,910,459
Other 800,780 84,995 17,191 36,355 832,229
To be settled over 1 year 19,958,143 2,643,657 52,675 1,869,914 20,679,211
Total provisions 19,958,143 2,643,657 52,675 1,869,914 20,679,211
The provision for compensation for employee food service facilities was related to Company’s contractual obligation
to compensate the contractor of employee food service facilities at the end of the term of the existing agreement. The
cost of the compensation concerned the fixed investment of the contractor and had been valued by an independent
estimator. Following the renewal of the contract without compensating the contractor, the provision was fully released
in 2010.
The provision for claims on airport charges relates to the interim legal measures taken by airport users in the First Instance
Court with respect to the legality of the pricing of certain airport charges. Despite the initial favourable outcome by the
First Instance Court, management believes that there are risks and uncertainties associated with this matter that warrant
continuing provisioning until a final legal resolution is reached. The recorded provision represents management’s best
estimate of the Company’s exposure. The timing of the eventual settlement of this risk is uncertain and substantially
depends on the timing and progress of the legal proceedings.
The provision for restoration expenses relates to the future expenses that result from the Company’s contractual
obligations to maintain or to restore the infrastructure to a specified condition before it is handed over to the Greek
State at the end of the service arrangement. It is expected that an aggregate amount of €40m will be spent on major
restoration activities commencing in year 2017 through to 2023 based on management’s current best estimates.
5.22 Income & deferred tax liabilities
Income tax liabilities
The amount reflects the income tax payable on the dividends declared for distribution, although the Company is in a tax
loss position, in accordance with paragraph 1 of article 99 of law 2238/1994.
At the balance sheet date the recognition of the income tax liability amounting to €23.684.211 (2009 €56.000.000) was
determined by applying the following formula:
Dividends declared for distribution * Income Tax Rate / (1- Income Tax Rate)
Also, at 31/12/2010 an amount of €26.326.312 (2009: €13.993.705) has been recognized as income tax liability due to
special tax contribution imposed by Law 3833/2010 (2009: Law 3808/2009) on the profits generated by legal entities in
year 2009.
Deferred tax assets & liabilities
The analysis of deferred tax assets and deferred tax liabilities is as follows:
Financial Statements as at 31 December 2010 (Amounts in Euros unless otherwise stated) Page 42 of 51
Analysis of provisions
Description As at Additions Utilisations Releases As at
1 Jan 2010 31 Dec 2010
Compensation for employees 773,219 0 0 773,219 0
food service facilities
Claims on airport charges 9,985,234 0 0 1,048,711 8,936,523
Restoration expenses 8,398,910 2,558,662 35,484 11,630 10,910,459
Other 800,780 84,995 17,191 36,355 832,229
To be settled over 1 year 19,958,143 2,643,657 52,675 1,869,914 20,679,211
Total provisions 19,958,143 2,643,657 52,675 1,869,914 20,679,211
The provision for compensation for employee food service facilities was related to Company’s contractual obligation
to compensate the contractor of employee food service facilities at the end of the term of the existing agreement. The
cost of the compensation concerned the fixed investment of the contractor and had been valued by an independent
estimator. Following the renewal of the contract without compensating the contractor, the provision was fully released
in 2010.
The provision for claims on airport charges relates to the interim legal measures taken by airport users in the First Instance
Court with respect to the legality of the pricing of certain airport charges. Despite the initial favourable outcome by the
First Instance Court, management believes that there are risks and uncertainties associated with this matter that warrant
continuing provisioning until a final legal resolution is reached. The recorded provision represents management’s best
estimate of the Company’s exposure. The timing of the eventual settlement of this risk is uncertain and substantially
depends on the timing and progress of the legal proceedings.
The provision for restoration expenses relates to the future expenses that result from the Company’s contractual
obligations to maintain or to restore the infrastructure to a specified condition before it is handed over to the Greek
State at the end of the service arrangement. It is expected that an aggregate amount of €40m will be spent on major
restoration activities commencing in year 2017 through to 2023 based on management’s current best estimates.
5.22 Income & deferred tax liabilities
Income tax liabilities
The amount reflects the income tax payable on the dividends declared for distribution, although the Company is in a tax
loss position, in accordance with paragraph 1 of article 99 of law 2238/1994.
At the balance sheet date the recognition of the income tax liability amounting to €23.684.211 (2009 €56.000.000) was
determined by applying the following formula:
Dividends declared for distribution * Income Tax Rate / (1- Income Tax Rate)
Also, at 31/12/2010 an amount of €26.326.312 (2009: €13.993.705) has been recognized as income tax liability due to
special tax contribution imposed by Law 3833/2010 (2009: Law 3808/2009) on the profits generated by legal entities in
year 2009.
Deferred tax assets & liabilities
The analysis of deferred tax assets and deferred tax liabilities is as follows:
Financial Statements as at 31 December 2010 (Amounts in Euros unless otherwise stated) Page 42 of 51
