2020 Annual Financial Report

Chapter 6 : 2020 Consolidated financial statements

Note 21 Provisions for liabilities and charges

(in millions of euros)

Restructuring provision

Vacant property provisions

Pensions and other long-term benefits

Provision for risksand litigations

Other provisions

Total

January 1, 2019

January 1, 2019

Restructuring provision

47

January 1, 2019

Vacant property provisions

32

January 1, 2019

Pensions and other long-term benefits

276

January 1, 2019

Provision for risksand litigations

79

January 1, 2019

Other provisions

75

January 1, 2019

Total

509

Increases

Increases

Restructuring provision

34

Increases

Vacant property provisions

61

Increases

Pensions and other long-term benefits

27

Increases

Provision for risksand litigations

30

Increases

Other provisions

30

Increases

Total

182

Releases with usage

Releases with usage

Restructuring provision

(45)

Releases with usage

Vacant property provisions

(51)

Releases with usage

Pensions and other long-term benefits

(23)

Releases with usage

Provision for risksand litigations

(9)

Releases with usage

Other provisions

(5)

Releases with usage

Total

(133)

Other releases

Other releases

Restructuring provision

(3)

Other releases

Vacant property provisions

-

Other releases

Pensions and other long-term benefits

-

Other releases

Provision for risksand litigations

(4)

Other releases

Other provisions

(2)

Other releases

Total

(9)

Changes to consolidation scope

Changes to consolidation scope

Restructuring provision

-

Changes to consolidation scope

Vacant property provisions

1

Changes to consolidation scope

Pensions and other long-term benefits

1

Changes to consolidation scope

Provision for risksand litigations

4

Changes to consolidation scope

Other provisions

1

Changes to consolidation scope

Total

7

Actuarial losses (gains)

Actuarial losses (gains)

Restructuring provision

-

Actuarial losses (gains)

Vacant property provisions

-

Actuarial losses (gains)

Pensions and other long-term benefits

29

Actuarial losses (gains)

Provision for risksand litigations

-

Actuarial losses (gains)

Other provisions

-

Actuarial losses (gains)

Total

29

Translation adjustments and other

Translation adjustments and other

Restructuring provision

2

Translation adjustments and other

Vacant property provisions

1

Translation adjustments and other

Pensions and other long-term benefits

1

Translation adjustments and other

Provision for risksand litigations

3

Translation adjustments and other

Other provisions

4

Translation adjustments and other

Total

11

December 31, 2019

December 31, 2019

Restructuring provision

35

December 31, 2019

Vacant property provisions

44

December 31, 2019

Pensions and other long-term benefits

311

December 31, 2019

Provision for risksand litigations

103

December 31, 2019

Other provisions

103

December 31, 2019

Total

596

Increases

Increases

Restructuring provision

86

Increases

Vacant property provisions

60

Increases

Pensions and other long-term benefits

26

Increases

Provision for risksand litigations

21

Increases

Other provisions

25

Increases

Total

218

Releases with usage

Releases with usage

Restructuring provision

(38)

Releases with usage

Vacant property provisions

(21)

Releases with usage

Pensions and other long-term benefits

(26)

Releases with usage

Provision for risksand litigations

(2)

Releases with usage

Other provisions

(25)

Releases with usage

Total

(112)

Other releases

Other releases

Restructuring provision

(2)

Other releases

Vacant property provisions

-

Other releases

Pensions and other long-term benefits

-

Other releases

Provision for risksand litigations

(1)

Other releases

Other provisions

-

Other releases

Total

(3)

Changes to consolidation scope

Changes to consolidation scope

Restructuring provision

-

Changes to consolidation scope

Vacant property provisions

-

Changes to consolidation scope

Pensions and other long-term benefits

1

Changes to consolidation scope

Provision for risksand litigations

-

Changes to consolidation scope

Other provisions

-

Changes to consolidation scope

Total

1

Actuarial losses (gains)

Actuarial losses (gains)

Restructuring provision

-

Actuarial losses (gains)

Vacant property provisions

-

Actuarial losses (gains)

Pensions and other long-term benefits

20

Actuarial losses (gains)

Provision for risksand litigations

-

Actuarial losses (gains)

Other provisions

-

Actuarial losses (gains)

Total

20

Translation adjustments and other

Translation adjustments and other

Restructuring provision

(3)

Translation adjustments and other

Vacant property provisions

12

Translation adjustments and other

Pensions and other long-term benefits

(14)

Translation adjustments and other

Provision for risksand litigations

(6)

Translation adjustments and other

Other provisions

(7)

Translation adjustments and other

Total

(18)

December 31, 2020

December 31, 2020

Restructuring provision

78

December 31, 2020

Vacant property provisions

95

December 31, 2020

Pensions and other long-term benefits

318

December 31, 2020

Provision for risksand litigations

115

December 31, 2020

Other provisions

96

December 31, 2020

Total

702

Of which short-term

Of which short-term

Restructuring provision

70

Of which short-term

Vacant property provisions

51

Of which short-term

Pensions and other long-term benefits

28

Of which short-term

Provision for risksand litigations

55

Of which short-term

Other provisions

30

Of which short-term

Total

234

Of which long-term

Of which long-term

Restructuring provision

8

Of which long-term

Vacant property provisions

44

Of which long-term

Pensions and other long-term benefits

290

Of which long-term

Provision for risksand litigations

60

Of which long-term

Other provisions

66

Of which long-term

Total

468

Restructuring provisions

These include an estimate of the closure or restructuring costs of certain activities resulting from plans that were announced but not yet executed at the end of 2020 (mainly severance pay). The plans are detailed by project and by type, and are approved in advance by senior management. They are managed centrally to ensure that the provision is applied based on the actual costs incurred and to justify the remaining balance at the year-end on the basis of the outstanding cost to be incurred.

Vacant property provisions

If a property is vacant and is not intended to be used in the main activity, a provision is made including rental charges, taxes and any other costs. This provision does not include lease payments, which are recognized as an impairment of right-of-use assets relating to leases following the application of IFRS 16 since January 1, 2018.

Provisions for risks and litigation

Provisions for risks and litigation (euro 115 million) include a short-term component (euro 55 million) and a long-term component (euro 60 million). They relate to litigation of any type with third parties, including commercial and tax litigation but excluding risks relating to uncertain tax positions.

Pensions and other long-term benefits

The obligations for employee benefits (see Note 22) include:

  • defined benefit pension plans;
  • post-employment health benefits;
  • long-term benefits such as deferred compensation and long-service rewards.