EDF / 2019 Universal registration document

6. Financial statements Financial statements

This approach can be complemented by estimating the impact of a change in the discount rate on the discounted value. In application of Article 11 of the decree of 23 February 2007, the following table reports these details for the main components of provisions for the back-end of the nuclear cycle, decommissioning of nuclear plants and last cores for EDF:

Amounts in provisions at present value

Sensitivity to discount rate

Balance sheet provision

Pre-tax net income

31/12/2019

0.20% -0.20%

0.20% -0.20%

(in millions of euros)

BACK-END NUCLEAR CYCLE EXPENSES spent fuel management ■

10,823

(228)

249

196 (215)

waste removal and conditioning ■

805

(25)

27

16

(17)

long-term radioactive waste management ■

10,531

(659)

750

554 (636)

DECOMMISSIONING AND LAST CORE EXPENSES decommissioning of nuclear power plants in operation ■ decommissioning of shut-down nuclear power plants ■

13,244

(506) (139)

529 150

7

(7)

3,693 2,624

139 (150)

last cores ■

(88)

94

-

-

TOTAL

41,720

(1,645)

1,799

912 (1,025)

Other provisions for decommissioning Note 29

Other provisions for decommissioning principally concern fossil-fired power plants. The costs of decommissioning fossil-fired power plants are calculated using regularly updated studies based on estimated future costs, measured by reference to the charges recorded on past operations and the most recent estimates for plants still in operation.

The provision recorded at 31 December 2019 reflects the most recent known cost estimates and includes rehabilitation costs for generation sites.

Provisions for employee benefits Note 30

Changes in provisions for employee benefits were as follows:

Increases

Decreases

31/12/2019

31/12/2018

Operating  (1) (4)

Financial

Operating  (2) (4)

Financial  (3)

(in millions of euros)

Provisions for post-employment benefits Provisions for long-term benefits PROVISIONS FOR EMPLOYEE BENEFITS

10,304

534 140

592

(748)

(271)

10,411

936

21

(78)

-

1,019

11,240

674

613

(826)

(271)

11,430

Including a past service cost of €409 million, amortisation of actuarial losses amounting to €255 million, and unvested benefits of €10 million. (1) Including €(802) million for employers’ contributions and €(23) million for actuarial gains. (2) For the expected return on fund assets. (3) See notes 6 and 11.2. (4)

DETAILS OF CHANGES IN THE PROVISIONS:

Unrecognised past service cost

Unrecognised actuarial gains and losses

Obligations net of fund assets

Provision in the balance sheet

Obligations

Fund assets

(in millions of euros)

BALANCE AT 31/12/2018

26,897

(10,913)

15,984

(39)

(4,705)

11,240

Net expense for 2019

1,023

(271)

752

10

231

993

Unrecognised actuarial gains and losses

3,887

(1,596)

2,291

- - -

(2,291)

- -

Contributions to funds

-

-

-

- -

Benefits paid

(1,268) 30,539

465

(803)

(803)

BALANCE AT 31/12/2019

(12,315)

18,224

(29)

(6,765)

11,430

439

EDF | Universal registration document 2019