Catom Annual Report 2019 EN

A subsidiary of Catom B.V. has a conditional indexation obligation of a percentage of the wage bill for a career average scheme that was replaced by a defined contribution scheme.

At year-end 2019 the group had no pension liabilities other than the annual contributions that are payable to the pension administrators.

2.12.3. Deferred tax receivables and liabilities Deferred tax assets and liabilities are recognised for temporary differences between the book value of assets and liabilities for tax purposes and their book value for financial reporting purposes. The calculation of deferred tax assets and liabilities is based on the tax rates applying at the reporting date, or the tax rates applying in future years insofar as these rates have been substantially enacted at the reporting date. Deferred taxes are stated at present value using a discount rate that is based on the net interest rate. The net interest rate is defined as the rate applying to the legal entity for long-term loans after deduction of tax based on the effective tax rate. 2.12.4. Provision for long-service awards A provision is recognised for long-service awards, equal to the present value of the expected payments in connection with such awards during employment, applying a discount rate of 4%. The amount of the provision takes into account the likelihood that the employees involved will remain with the company.

2.12.5. Provision for clean-up operations This provision relates to environmental obligations and risks. It is stated at nominal value.

2.12.6. Other provisions Other provisions are stated at the nominal amount of the expenditures expected to be required to settle the liabilities for which these provisions have been recognised. 2.13. Liabilities Upon initial recognition, liabilities are stated at fair value. Transaction costs directly attributable to the acquisition of liabilities are included in the initial recognition.

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