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Financial statements

PARENT COMPANY FINANCIAL STATEMENTS AND NOTES

NOTE 7 MOVEMENTS IN PROVISIONS

Decrease

Surplus Utilized At Dec. 31, (in millions of euros) At Jan. 1, 2012 Increase provisions provisions 2012

Untaxed provisions

Excess tax depreciation 4 3 (1) -6

TOTAL UNTAXED PROVISIONS 4 3 (1) -6

Provisions for contingencies

Claims and litigation 2 -(1) -1

Foreign exchange losses 1 -(1) --

Other (1) 18 31 (4) -45

TOTAL PROVISIONS FOR CONTINGENCIES 21 31 (6) -46

Provisions for charges (2)

Pensions and other post-retirement benefit obligations 30 19 (1) (1) 47

Taxes 11 9 (1) 19

Other 10 4 -(4)10

TOTAL PROVISIONS FOR CHARGES 51 32 (2) (5) 76

TOTAL PROVISIONS 76 66 (9) (5) 128

Provisions for impairment in value (3)

Intangible assets 17 15 (15) -17

Property and equipment 1 1 (1) -1

Investments* 2,464 742 (139) -3,067

Trade receivables 12 3 (1) -14

Other receivables* 47 10 (8) -49

TOTAL PROVISIONS FOR IMPAIRMENT IN VALUE 2,541 771 (164) -3,148

TOTAL 2,617 837 (173) (5) 3,276

Income statement impact of movements in provisions Increase Decrease

Operating income and expenses 26 (10)

Financial income and expenses 784 (62)

Non-recurring income and expenses 27 (106)

Movements with no income-statement impact -

TOTAL 837 (178)

* Recorded in accordance with the accounting policy described in note 1c.

(1) Other provisions for contingencies mainly comprised €42 million in provisions for risks related to subsidiaries. These provisions are set aside after taking into account provisions for shares in and loans and advances to subsidiaries and affiliates. Movements in this item primarily reflect i) additions to provisions for subsidiaries in an amount of €31 million and ii) reversals of provisions for subsidiaries amounting to €3 million.

(2) At the year-end, total provisions for charges included €47 million in provisions for pensions and other post-retirement benefit obligations, €19 million in provisions for taxes, and €6 million in provisions for future rental payments and charges. Additions to and reversals of provisions for pensions and other post-retirement benefit obligations amounted to €19 million and €2 million respectively. A total of â‚¬9 million was added to provisions for taxes, including €8 million following a tax audit relating to the years 2007 to 2009. Movements in other provisions for charges corresponded to €4 million in additions (primarily for restructuring provisions) and €4 million in reversals (of which €2 million from restructuring provisions and €2 million from provisions for future rental payments and charges).