Airbus - Financial Statements 2022

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

As of 31 December 2022, provisions for pensions decreased by €-3.6 billion. It mainly reflects the increase of the discount rates in Germany, France, Canada and the UK of €7.8 billion, resulting from market volatility related mainly to the Ukraine crisis. It is partly offset by deteriorated performance of the asset market values for €2.7 billion and increased inflation assumptions particularly in Germany and France for €0.5 billion. As a consequence of the increased discount rates a non ‑ current asset of €0.6 billion has been accounted for to reflect the surplus in two pension funds in the UK, the Airbus

Section of the participation in BAE Systems Pension Scheme and the Company UK Pension Scheme (see “– Note 27: Other Assets and Other Liabilities”). Furthermore, due to the re ‑ measurement of past service cost in the retirement obligation, a gain of €0.4 billion was recognised in the first quarter 2022. Other provisions decreased mainly due to the decrease in provisions for onerous contracts due to the utilisation and net presentation of the A400M programme losses against inventories, the reduction in the A220 programme and the release of compliance ‑ related provisions.

Movements in other provisions during the year were as follows:

Increase from passage of

Reclassification / Change in consolidated group

Balance at 31 December 2022

Balance at 1 January 2022

Exchange differences

time Additions

Used Released

(In € million)

Onerous contracts

2,249

56

0

300

211

(945)

(63)

1,808

Outstanding costs

1,376

3

0

376

0

(283)

(98)

1,374

(1)

Aircraft financing risks

17

1

0

0

0

(11)

(2)

5

Obligation from services and maintenance agreements

491

1

8

11

0

(53)

(74)

384

Warranties

372

5

(3)

99

12

(53)

(35)

397

Personnel ‑ related provisions (2)

769

1

2

421

(25)

(364)

(61)

743

Litigation and claims (3)

728

2

0

156

(9)

(29)

(517)

331

Asset retirement

151

0

5

9

0

0

(18)

147

Other risks and charges

2,056

(4)

(6)

812

(8)

(395)

(130)

2,325

Total

8,209

65

6

2,184

181

(2,133)

(998)

7,514

(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 2022 mainly include the utilisation and net presentation of the A400M programme losses against inventories and the reduction in the A220 programme. Personnel ‑ related provisions include restructuring provisions and other personnel charges. For more details, see “– Note 31: Personnel ‑ Related Provisions”. Provisions for litigation and claims decreased mainly due to the release of compliance ‑ related provisions for an amount of €0.3 billion. 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 13: 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.

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