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184 2014 Registration Document
Consolidated Financial Statements Year ended December 31, 2014
5
Notes to the Consolidated statements
28.2
STOCK GRANTS
No new stock grants were made in 2014 and no stock grants were outstanding at December 31, 2014.
Note 29
Provisions
(in € millions)
December 31,
2013
Translation
adjustment
Increases
Discounting
adjustment
Reversals
of surplus
provisions Utilizations
Other
December 31,
2014
Post-employment
benefit obligations –
Note 30
1,272
1
118
196
(114)
(61)
14
1,426
Claims and litigation
1,814
7
523
0
(337)
(448)
11
1,570
Tax
reassessments
(1)
1,075
4
256
0
(158)
(279)
(6)
892
Disputes with
current and former
employees
423
3
197
0
(146)
(96)
5
385
Legal disputes
316
1
70
0
(33)
(73)
11
292
Restructuring
120
2
46
0
(17)
(28)
18
140
Other
(2)
413
0
74
0
(37)
(32)
27
444
TOTAL
3,618
11
760
196
(505)
(569)
69
3,581
(1) Provisions for tax claims decreased by a net €183 million in 2014, reflecting revised estimates of the potential cost associated with certain tax risks,
and the reversal of certain provisions following payments in settlement of several old tax disputes.
(2) Other provisions primarily concern technical risks associated mainly with the insurance business, store closure costs and onerous contracts.
Group companies are involved in a certain number of claims and legal
proceedings in the normal course of business. They are also subject to
tax audits that may result in reassessments. The main claims and legal
proceedings are described in Note 31. In each case, the risk is assessed
by Group management and their advisors.
A provision is recorded when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of
resources will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.
At December 31, 2014, the claims and legal proceedings in which the
Group was involved were covered by provisions totaling €1,570 million
(December 31, 2013: €1,814 million). No details are provided because
the Group considers that disclosure of the amount set aside in each
case could be seriously detrimental to its interests.
Note 30
Post-employment benefit obligations
The cost of defined benefit plans is determined at each period-end by the projected unit credit method. The calculation is performed using an
actuarial method that takes into account in particular future salary levels and retirement ages.
30.1
DESCRIPTION OF THE MAIN DEFINED BENEFIT PLANS
The main defined benefit plans concern supplementary pension benefits
paid annually in some countries to retired employees of the Group,
and length-of-service awards provided for in collective bargaining
agreements that are paid to employees upon retirement. The plans,
which are presented below, mainly concern France, Belgium and Italy.