EDF / 2018 Reference document

FINANCIAL STATEMENTS Operating assets and liabilities, equity

PROVISIONS FOR EMPLOYEE BENEFITS NOTE 31 EDF GROUP 31.1

31/12/2018

31/12/2017

(in millions of euros)

Provisions for employee benefits – current portion Provisions for employee benefits – non-current portion

998

1,106

17,627 18,625

20,630 21,736

PROVISIONS FOR EMPLOYEE BENEFITS

31.1.1

Breakdown of the change in the net liability

Obligations

Fund assets

Net Liability

(in millions of euros)

Balance at 31/12/2017 (1) Net expense for 2018 Actuarial gains and losses

42,721

(21,895)

20,826

1,892

(475)

1,417

(3,898)

746

(3,152)

Employer’s contributions to funds Employees’ contributions to funds

-

(331)

(331)

15

(15)

-

Benefits paid

(2,194)

1,131

(1,063)

Translation adjustment

(53)

61

8

6.

Changes in scope of consolidation

-

-

-

Other movements

(4)

(13)

(17)

BALANCE AT 31/12/2018

38,479

(20,791)

17,688

Including: Provisions for employee benefits

18,625

Non-current financial assets (937) The net liability at 31 December 2017 comprised €21,736 million for the provisions for employee benefits and €(910) million of non-current financial assets, giving (1) a net liability amount of €20,826 million.

Actuarial gains and losses on obligations amount to €(3,898) million for 2018, including €(3,323) million in France as a result of the €(2,174) million change in the discount rate, €(462) million for updating the mortality table, and €(491) million for updating the wage law; and €(518) million in the United Kingdom, essentially associated with changes in the discount and inflation rates (see note 31.3.6).

Actuarial gains and losses on fund assets amount to €746 million for 2018. They mainly result from a €463 million change in the United Kingdom and a €259 million change in France due to the poor performance on the equity markets. Actuarial gains and losses on obligations amount to €(400) million for 2017, essentially comprising €194 million in the United Kingdom associated with changes in the discount and inflation rates and €(598) million in France, mainly attributable to experience adjustments.

31.1.2

Post-employment and other long-term employee benefit expenses

2018

2017

(in millions of euros) Current service cost

(1,018)

(1,010)

Past service cost

(19)

-

Actuarial gains and losses – long-term benefits Net expenses recorded as operating expenses

20

(67)

(1,017)

(1,077)

Interest expense (discount effect)

(875)

(884)

Return on fund assets

475

470

Net interest expense included in financial result

(400)

(414)

EMPLOYEE BENEFIT EXPENSES RECORDED IN THE INCOME STATEMENT

(1,417)

(1,491)

Actuarial gains and losses – post-employment benefits

3,898 (746) 3,152

400 721

Actuarial gains and losses on fund assets

Actuarial gains and losses Translation adjustments

1,121

(8)

(17)

3,144

1,104

GAINS AND LOSSES ON EMPLOYEE BENEFITS RECORDED DIRECTLY IN EQUITY

389

EDF I Reference Document 2018