Aéroports de Paris - 2019 Universal registration document

FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND CONSOLIDATED FINANCIAL STATEMENTS 18 GROUPE ADP CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2019

NOTE 8 OTHER PROVISIONS AND OTHER NON-CURRENT LIABILITIES 8.1 Other provisions

Other provisions set up by Groupe ADP concern essentially commercial and social litigation, as well as country and environmental risks. A provision is recognized as soon as a liability of uncertain timing or amount occurs. A provision is recognized when the three following conditions are satisfied:

¯ the Group has a present legal or constructive obligation resulting from a past event; ¯ it is probable that future outflows of resources embodying economic benefits will be necessary to settle the obligation; ¯ the amount of the obligation can be estimated reliably.

Other provisions evolved as follows:

Litigation and claims

Other provisions

Litigation and claims

Other provisions

2019

2018

(in millions of euros)

Provisions as at 1 January

14

41 22

55 23

14

75 18

89 23

Increases

1 1 - -

5 5

® Additions

4 8

5 8

6 7 4

11 7 4

® Increase due to changes in consolidation scope

- -

® Other changes

10

10

Decreases

(4)

(22) (12) (10)

(26) (13)

(5)

(52) (16) (36)

(57) (17) (40)

® Provisions used

(1)

(1)

® Provisions reversed Provisions at closing Of which ® Non-current portion

(3)

(13)

(4)

11

41

52

14

41

55

11

36

47

14

25

39

® Current portion

-

5

5

-

16

16

Provisions for disputes relate to various supplier, employee and commercial issues.

Other provisions include in particular provisions for customer and supplier risks. Information on contingent liabilities is disclosed in note 16.

8.2 Other non-current liabilities

Items presented as other non-current liabilities include: ¯ investment subsidies. In compliance with the option offered by IAS 20, these subsidies are recorded as liabilities and are transferred to the income statement as the associated assets are amortized; ¯ concession rent payable for concessions operated by TAV Airports; ¯ revenues from contracts accounted as deferred income; ¯ debt related to the minority put option.

In compliance with IAS 32, this debt is initially measured at the present value of the option exercise price. The counterpart of this debt is a decrease in the carrying value of the minority interets. The difference between the present value of the option exercise price and the carrying value is recorded in shareholder’s equity – Group share under other reserves. Subsequently, this debt is revalued by an offsetting entry in the income statement at the end of each period.

230

AÉROPORTS DE PARIS ® UNIVERSAL REGISTRATION DOCUMENT 2019