KAMADA LTD | CIK:0001567529 | 3

  • Filed: 3/6/2018
  • Entity registrant name: KAMADA LTD (CIK: 0001567529)
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  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1567529/000117891318000767/0001178913-18-000767-index.htm
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    • ifrs-full:DisclosureOfEmployeeBenefitsExplanatory

    Note 16: -
    Employee Benefit Liabilities, NET

    Employee benefits consist of short-term benefits and post-employment benefits.

    a.
    Post-employment benefits:

    According to the labor laws and Severance Pay Law in Israel, the Company is required to pay compensation to an employee upon dismissal or retirement or to make current contributions in defined contribution plans pursuant to Section 14 to the Severance Pay Law, as specified below. The Company's liability is accounted for as a post-employment benefit only for employees not under Section 14. The computation of the Company's employee benefit liability is made in accordance with a valid employment contract or a collective employees agreement based on the employee's salary and employment term which establish the entitlement to receive the compensation.

    The post-employment employee benefits are normally financed by contributions classified as defined benefit plans, as detailed below:

    1.
    Defined contribution deposit:

    The Company’s agreements with part of its employees are in accordance with section 14 of the Israeli Severance Pay Law. Payments in accordance with Section 14 release the Company from any future severance liabilities in respect of those employees.  The expenses for the defined benefit deposit  in 2017, 2016 and 2015 were $ 884 thousands, $ 669 thousands and $702 thousands,  respectively.

    2.
    Defined benefit plans:

    The Company accounts for the payment of compensation, as a defined benefit plan for which an employee benefit liability is recognized and for which the Company deposits amounts in a long-term employee benefit fund and in qualifying insurance policies.

    3.
    Expenses recognized in comprehensive income (loss):

       
    Year Ended
    December 31,
    		  
       
    2017
    		    
    2016
    		    
    2015
    		  
       
    In thousands
    		 
                       
    Current service cost
    		  
    $
    356
    		    
    $
    359
    		    
    $
    391
    		  
    Interest expenses, net
    		    
    23
    		      
    20
    		      
    18
    		  
    Current service cost (income) due to the transfer of real yield from the compensation component to the royalties' component in executive insurance policies before 2004
    		    
    (7
    )
    		    
    5
    		      
    (10
    )
    Total employee benefit expenses
    		  
    $
    372
    		    
    $
    384
    		    
    $
    399
    		  
                             
    Actual (negative) return on plan assets
    		  
    $
    119
    		    
    $
    22
    		    
    $
    (12
    )
     
    The expenses are presented in the Statement of Comprehensive income (loss) as follows

       
    Year Ended
    December 31,
    		  
       
    2017
    		    
    2016
    		    
    2015
    		  
       
    In thousands
    		 
                       
    Cost of revenues
    		  
    $
    211
    		    
    $
    228
    		    
    $
    209
    		  
    Research and development
    		    
    57
    		      
    62
    		      
    90
    		  
    Selling and marketing
    		    
    16
    		      
    13
    		      
    18
    		  
    General and administrative
    		    
    88
    		      
    81
    		      
    82
    		  
                             
       
    $
    372
    		    
    $
    384
    		    
    $
    399
    		  

    4.
    The plan assets (liabilities), net:
     
       
    December 31,
    		  
       
    2017
    		    
    2016
    		  
       
    In thousands
    		 
                 
    Defined benefit obligation
    		  
    $
    5,907
    		    
    $
    5,235
    		  
    Fair value of plan assets
    		    
    4,763
    		      
    4,513
    		  
    Total liabilities, net
    		  
    $
    1,144
    		    
    $
    722
    		  

    5.
    Changes in the present value of defined benefit obligation

       
    2017
    		    
    2016
    		  
       
    In thousands
    		 
                 
    Balance at January 1,
    		  
    $
    5,235
    		    
    $
    5,425
    		  
                     
    Interest costs
    		    
    151
    		      
    141
    		  
    Current service cost
    		    
    356
    		      
    359
    		  
    Benefits paid
    		    
    (641
    )
    		    
    (650
    )
    Demographic assumptions
    		    
    (28
    )
    		    
    (17
    )
    Financial assumptions
    		    
    254
    		      
    *
    		  
    Past Experience
    		    
    6
    		      
    (104
    )
    Currency Exchange
    		    
    574
    		      
    81
    		  
    Balance at December 31,
    		  
    $
    5,907
    		    
    $
    5,235
    		  
     
    * Represent an amount of less than 1 thousands

    6.
    Plan assets

    a)
    Plan assets

    Plan assets comprise assets held by a long-term employee benefit funds and qualifying insurance policies.
     
    b)
    Changes in the fair value of plan assets

       
    2017
    		    
    2016
    		  
       
    In thousands
    		 
                 
    Balance at January 1,
    		  
    $
    4,513
    		    
    $
    4,638
    		  
                     
    Expected return
    		    
    127
    		      
    121
    		  
    Contributions by employer
    		    
    227
    		      
    311
    		  
    Benefits paid
    		    
    (586
    )
    		    
    (522
    )
    Demographic assumptions
    		    
    1
    		      
    1
    		  
    Financial assumptions
    		    
    1
    		      
    -
    		  
    Past Experience
    		    
    (11
    )
    		    
    (100
    )
    Current service cost due to the transfer of real yield from the compensation component to the royalties component in executive insurance policies before 2004
    		    
    7
    		      
    (5
    )
    Currency exchange
    		    
    484
    		      
    69
    		  
                     
    Balance at December 31,
    		  
    $
    4,763
    		    
    $
    4,513
    		  

    7.
    The principal assumptions underlying the defined benefit plan

       
    2017
    		    
    2016
    		    
    2015
    		  
       
    %
    		  
                       
    Discount rate of the plan liability
    		    
    2.27
    		      
    3.72
    		      
    2.6
    		  
                             
    Future salary increases
    		    
    4
    		      
    4
    		      
    4
    		  
     
    The sensitivity analyses below have been determined based on reasonably possible changes of the principal assumptions underlying the defined benefit plan as mentioned above, occurring at the end of the reporting period.

    If the discount rate would be one percent higher (lower), the defined benefit obligation would decrease (increase) by $309 thousands ($380 thousands) if all other assumptions were held constant.

    If the expected salary growth would increase (decrease) by 1% the defined benefit obligation would increase (decrease) by $362 thousands ($298 thousands).