AIRBUS - 2020 Financial Statement

2. Notes to the IFRS Consolidated Financial Statements / 2.5 Operational Assets and Liabilities

Movements in other provisions during the year were as follows:

Increase from passage of time Additions

Reclassification / Change in consolidated

Balance at 31 December 2020

Balance at 1 January 2020

Exchange differences

group Used Released

(In € million)

Onerous contracts

3,955

(124)

0

547

(266)

(1,058)

(28)

3,026

Outstanding costs

1,214

(6)

0

434

3 (281)

(44)

1,320

Aircraft financing risks (1)

5

0

0

0

0

0

2

7

Obligation from services and maintenance agreements

571

10

3

36

0

(57)

(10)

553

Warranties

323

(5)

(1)

82

(4)

(54)

(16)

325

Personnel-related provisions (2)

983

(3)

1

1,507

(11)

(483)

(89)

1,905

Litigation and claims (3)

911

(3)

0

255

0

(93)

(176)

894

Asset retirement

203

(2)

1

1

0

0

(18)

185

Other risks and charges

2,396

(11)

(2)

898

(70)

(753)

(110)

2,348

Total

10,561

(144)

2 3,760

(348) (2,779)

(489)

10,563

(1) See “– Note 28: Sales Financing Transactions”. (2) See “– Note 31: Personnel-Related Provisions”. (3) See “– Note 39: Litigation and Claims”.

Provisions for onerous contracts in 2020 mainly include the utilisation and net presentation of the A380, A400M and A220 programme losses against inventories. Personnel-related provisions include restructuring provisions and other personnel charges. For more details, see “– Note 31: Personnel-Related Provisions”. Contingent assets and contingent liabilities —The Company is exposed to technical and commercial contingent obligations due to the nature of its businesses. To mitigate this exposure, the Company has subscribed a Global Aviation Insurance Programme (“GAP”). Information required under IAS 37

“Provisions, Contingent Assets and Contingent Liabilities” is not disclosed if the Company concludes that disclosure can be expected to prejudice seriously its position in a dispute with other parties. For other contingent liabilities, see “– Note 39: Litigation and Claims” and “– Note 12: Revenue and Gross Margin” (mainly A400M programme). Other commitments include contractual guarantees and performance bonds to certain customers as well as commitments for future capital expenditures and amounts which may be payable to commercial intermediaries if future sales materialise.

26. Other Financial Assets and Other Financial Liabilities

Other Financial Assets

31 December

2020

2019

(In € million)

Positive fair values of derivative financial instruments (1)

3,451

996

Others

32

37

3,483

1,033

Total non-current other financial assets

1,158

1,148

Receivables from related companies

973

444

Positive fair values of derivative financial instruments (1)

301

468

Others

Total current other financial assets

2,432

2,060

Total

5,915

3,093

(1) See “– Note 38: Financial Instruments”.

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Airbus / Financial Statements 2020