EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

Actuarial gains and losses on obligations amount to €5,130 million for 2019, including: €4,151 million in France as a result of: ■ the €5,515 million change in the discount rate, ■ the €(926) million change in the inflation rate, ■ €(285) million due to the proposed law on social security system funding ■ for 2020, €(183) million due to an update of the wage law; ■ €873 million in the United Kingdom, essentially associated with changes in the ■ discount and inflation rates (see note 34.3.6).

Actuarial gains and losses on fund assets amount to €(2,668) million for 2019. They mainly result from a €(998) million change in the United Kingdom and a €(1,647) million change in France due to a very good performance on the equity markets. Actuarial gains and losses on obligations amounted 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 due to an update of the official mortality table, and €(491) million due to an update of the wage law; €(518) million in the United Kingdom, essentially associated with changes in the ■ discount and inflation rates.

34.1.2

Post-employment and other long-term employee benefit expenses

2019

2018

(in millions of euros)

Current service cost

(821)

(1,018)

Past service cost

3

(19)

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

(205)

20

(1,023)

(1,017)

Interest expense (discount effect)

(931)

(875)

Return on fund assets

523

475

Net interest expense included in financial result

(408)

(400)

EMPLOYEE BENEFIT EXPENSES RECORDED IN THE INCOME STATEMENT

(1,431)

(1,417)

Actuarial gains and losses – post-employment benefits

(5,130)

3,898 (746)

Actuarial gains and losses on fund assets

2,668

Translation adjustments Actuarial gains and losses

46

(8)

(2,462) (2,416)

3,152 3,144

GAINS AND LOSSES ON EMPLOYEE BENEFITS RECORDED DIRECTLY IN EQUITY

34.1.3

Net employee benefit liability by geographical area

United Kingdom

France  (1)

Other

Total

(in millions of euros)

Obligations at 31/12/2018 Net expense for 2019 Actuarial gains and losses Employees’ contributions to funds

29,201

8,248

1,030

38,479

1,436 4,151

473 873

45

1,954 5,130

106

-

11

1

12

Benefits paid

(1,478)

(369)

(281)

(2,128)

Translation adjustment

- - -

454

1

455

Changes in scope of consolidation

- -

-

-

Other movements

(3)

(3)

OBLIGATIONS AT 31/12/2019

33,310 (12,581) 20,729

9,690

899

43,899 (23,661) 20,238

Fair value of fund assets

(10,712) (1,022)

(368)

NET EMPLOYEE BENEFIT LIABILITYAT 31/12/2019

531

Including: Provisions for employee benefits Non-current financial assets  (2)

20,729

224

531

21,484 (1,246)

(1,246)

France comprises the two operating segments “France – Generation and Supply” and “France – Regulated activities” (see note 34.2). (1) At 31 December 2019, EDF Energy recognised surplus funding on its EEGSG and BEGG pension schemes (see note 34.3.1). (2)

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EDF | Universal registration document 2019

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