BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

IFRS CONSOLIDATED FINANCIAL STATEMENTS OF BPCE SA GROUP AS AT DECEMBER 31, 2019

COST OF DEFINED-BENEFIT PENSION PLANS AND OTHER LONG-TERM EMPLOYEE BENEFITS 8.2.3 Expenses for defined-benefit pension plans and other long-term employee benefits The various components of the expense recognized for defined-benefit plans and other long-term employee benefits are included under “Payroll costs”.

Post-employment defined-benefit plans

Other long-term employee benefits

Fiscal year 2019

Fiscal year 2018

in millions of euros

Service cost

(10)

(28)

(38)

(106)

Net interest cost

(6)

(1) (7)

(7) (1)

(7)

Other (o/w asset ceiling) Expense for the period

6

2

(10)

(36)

(46)

(111)

Benefits paid

18 20 38 28

51

69 20 89 43

81 13 94

Plan participant contributions

Change in provisions due to contributions

51 15

TOTAL

(17)

Gains and losses on defined-benefit plans recorded directly in other comprehensive income

Supplementary pension benefits and other

End-of-career awards

Fiscal year 2019

Fiscal year 2018

in millions of euros

Revaluation adjustments at start of period Revaluation adjustments over the period

171

(5) 23

166 114

216 (61)

91 (4)

Adjustments to asset ceiling

(4)

11

REVALUATION ADJUSTMENTS AT END OF PERIOD

258

18

276

166

8.3

SHARE-BASED PAYMENTS

Accounting principles Share-based payments are those based on shares issued by the Group, regardless of whether the transactions are settled in the form of equity or cash indexed to the share price. The cost to the Group is calculated on the basis of the fair value at the grant date of the share purchase or subscription options granted by certain subsidiaries. The total cost of the plan is determined by multiplying the unit value of the option by the estimated number of options that will have vested at the end of the vesting period, taking account of the likelihood that the beneficiaries will still be employed by the Group, and of any non-market performance conditions that may affect the plan. The cost to the Group is recognized in income from the date the employees are notified of the plan, without waiting for the vesting conditions, if any, to be satisfied (for example, in the case of a subsequent approval process), or for the beneficiaries to exercise their options. The corresponding adjustment for the expense recorded under equity-settled plans is an increase in equity. The Group recognizes a liability for cash-settled plans. The related cost is taken to income over the vesting period and a corresponding fair value adjustment is booked to a liability account.

Regarding the plans approved at February 6, 2019, as the allocations had not been formally completed on the balance sheet date, the cost assessment was based on the best possible estimate of the inputs on the balance sheet date, both in terms of the share value and dividend assumptions. Natixis subsidiaries may also establish their own share-based payment plans. The impacts of these plans, taken individually, are not material at the Natixis consolidated level. The features of these plans are thus not detailed in the section below.

The main plans settled in the form of shares are presented below.

SHARE-BASED EMPLOYEE RETENTION AND PERFORMANCE RECOGNITION PLANS Each year since 2010, a share-based payment plan has been awarded to certain categories of Natixis group staff, in compliance with regulations.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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