(i) | | Other liabilities – Non-current |
| | | Year ended December 31, | |
| | | 2017 | | | 2016 | |
| Post-employment benefits | | | 125,012 | | | | 125,161 | |
| Other-long term benefits | | | 68,244 | | | | 66,714 | |
| Miscellaneous | | | 24,040 | | | | 21,742 | |
| | | | 217,296 | | | | 213,617 | |
Post-employment benefits
| | | Year ended December 31, | |
| | | 2017 | | | 2016 | |
| Values at the beginning of the year | | | 96,229 | | | | 107,601 | |
| Translation differences | | | 2,893 | | | | (2,204 | ) |
| Current service cost | | | 7,851 | | | | 4,625 | |
| Interest cost | | | 5,462 | | | | 6,371 | |
| Curtailments and settlements | | | 21 | | | | 24 | |
| Remeasurements (*) | | | 10,907 | | | | (4,501 | ) |
| Benefits paid from the plan | | | (22,107 | ) | | | (13,921 | ) |
| Other | | | 633 | | | | (1,766 | ) |
| At the end of the year | | | 101,889 | | | | 96,229 | |
(*) For
2017
a loss of
$0.08
million is attributable to demographic assumptions and a loss of
$10.6
million to financial assumptions. For
2016
a loss of
$0.6
and a gain of
$5.1
million is attributable to demographic and financial assumptions, respectively.
The principal actuarial assumptions used were as follows:
| | |
| | | |
Discount rate | | |
Rate of compensation increase | | |
As of
December 31, 2017,
an increase / (decrease) of
in the discount rate assumption of the main plans would have generated a (decrease) / increase on the defined benefit obligation of
$8.2
million and
$7.2
million respectively, and an increase / (decrease) of
in the rate of compensation assumption of the main plans would have generated an increase / (decrease) impact on the defined benefit obligation of
$4.0
million and
$4.2
million respectively. The above sensitivity analyses are based on a change in discount rate and rate of compensation while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions
may
be correlated.
The amounts recognized in the statement of financial position for the current annual period and the previous annual period are as follows:
| | | Year ended December 31, | |
| | | 2017 | | | 2016 | |
| Present value of funded obligations | | | 165,486 | | | | 159,612 | |
| Fair value of plan assets | | | (145,692 | ) | | | (132,913 | ) |
| Liability (*) | | | 19,794 | | | | 26,699 | |
(*) In
2017
and
2016,
$3.3
million and
$2.2
million corresponding to an overfunded plan were reclassified within other non-current assets, respectively.
The movement in the present value of funded obligations is as follows:
| | | Year ended December 31, | |
| | | 2017 | | | 2016 | |
| At the beginning of the year | | | 159,612 | | | | 153,974 | |
| Translation differences | | | 7,300 | | | | 384 | |
| Current service cost | | | 592 | | | | 162 | |
| Interest cost | | | 6,034 | | | | 6,403 | |
| Remeasurements (*) | | | 3,602 | | | | 7,753 | |
| Benefits paid | | | (11,654 | ) | | | (9,064 | ) |
| At the end of the year | | | 165,486 | | | | 159,612 | |
(*) For
2017
a gain of
$0.4
million is attributable to demographic assumptions and a loss of
$4.1
million to financial assumptions. For
2016
a gain of
$0.9
and a loss of
$8.7
million is attributable to demographic and financial assumptions, respectively.
The movement in the fair value of plan assets is as follows:
| | | Year ended December 31, | |
| | | 2017 | | | 2016 | |
| At the beginning of the year | | | (132,913 | ) | | | (128,321 | ) |
| Translation differences | | | (6,802 | ) | | | 365 | |
| Return on plan assets | | | (5,849 | ) | | | (7,022 | ) |
| Remeasurements | | | (5,874 | ) | | | (3,022 | ) |
| Contributions paid to the plan | | | (6,230 | ) | | | (4,374 | ) |
| Benefits paid from the plan | | | 11,654 | | | | 9,064 | |
| Other | | | 323 | | | | 397 | |
| At the end of the year | | | (145,692 | ) | | | (132,913 | ) |
The major categories of plan assets as a percentage of total plan assets are as follows:
| | | Year ended December 31, | |
| | | 2017 | | | 2016 | |
| Equity instruments | | | 53.4 | % | | | 52.4 | % |
| Debt instruments | | | 42.9 | % | | | 43.9 | % |
| Others | | | 3.7 | % | | | 3.7 | % |
The principal actuarial assumptions used were as follows:
| | | Year ended December 31, | |
| | | 2017 | | | 2016 | |
| Discount rate | | | 4 | % | | | 4 | % |
| Rate of compensation increase | | | | | | | | |
The expected return on plan assets is determined by considering the expected returns available on the assets underlying the current investment policy. Expected return on plan assets is determined based on long-term, prospective rates of return as of the end of the reporting period.
As of
December 31, 2017,
an increase / (decrease) of
in the discount rate assumption of the main plans would have generated a (decrease) / increase on the defined benefit obligation of
$17.0
million and
$20.9
million respectively, and an increase / (decrease) of
in the compensation rate assumption of the main plans would have generated an increase / (decrease) on the defined benefit obligation of
$2.2
million and
$1.8
million respectively. The above sensitivity analyses are based on a change in discount rate and rate of compensation while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions
may
be correlated.
The employer contributions expected to be paid for the year
2018
amount approximately to
$3.5
million.
The methods and types of assumptions used in preparing the sensitivity analysis did
not
change compared to the previous period.
(ii) | | Other liabilities – current |
| | | Year ended December 31, | |
| | | 2017 | | | 2016 | |
| Payroll and social security payable | | | 141,886 | | | | 125,991 | |
| Liabilities with related parties | | | 51 | | | | 135 | |
| Derivative financial instruments | | | 39,799 | | | | 42,635 | |
| Miscellaneous | | | 15,768 | | | | 15,126 | |
| | | | 197,504 | | | | 183,887 | |
