EDF_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Income Statement

PROVISIONS FOR EMPLOYEE BENEFITS NOTE 31 EDF GROUP 31.1

31/12/2017

31/12/2016

(in millions of euros)

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

1,106

1,100

20,630 21,736

21,234 22,334

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 31/12/2016 (1) Net expense for 2017 Actuarial gains and losses

42,683

(20,917)

21,766

1,961 (400)

(470) (721) (438)

1,491

(1,121)

Employer’s contributions to funds Employees’ contributions to funds

-

(438)

14

(14) 811 333

-

Benefits paid

(1,848)

(1,037)

Translation adjustment

(316)

17

6.

Changes in scope of consolidation (2)

630

(479)

151

Other movements

(3)

-

(3)

BALANCE AT 31/12/2017

42,721

(21,895)

20,826

Including: Provisions for employee benefits

21,736

Non-current financial assets (910) The net liability at 31 December 2016 comprised €22,334 million for the provisions for employee benefits and €(568) million of non-current financial assets, giving (1) a net liability amount of €21,766 million. Changes in the scope of consolidation at 31 December 2017 principally comprise pension commitment and other long-term employee benefits related to the (2) acquisition of Framatome, representing a net liability of €149 million.

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. Actuarial gains and losses on obligations amount to €2,041 million for 2016, essentially comprising €1,349 million in the United Kingdom associated with

changes in the discount and inflation rates (see note 31.3.6) and €643 million in France, mainly related to the effect of changes in financial assumptions: change in discount and inflation rate assumptions: €2,322 million; ■ changes concerning the valuation of employee benefits in kind in the form of ■ energy, particularly following the CSPE reform: €(1,742) million.

31.1.2

Post-employment and other long-term employee benefit expenses

2017

2016 (890)

(in millions of euros) Current service cost

(1,010)

Past service cost

-

38

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

(67)

(177)

(1,077)

(1,029) (1,048)

Interest expense (discount effect)

(884)

Return on fund assets

470

547

Net interest expense included in financial result

(414)

(501)

EMPLOYEE BENEFIT EXPENSES RECORDED IN THE INCOME STATEMENT

(1,491)

(1,530) (2,041)

Actuarial gains and losses – post-employment benefits

400 721

Actuarial gains and losses on fund assets

2,602

Actuarial gains and losses Translation adjustments

1,121

561

(17)

(5)

1,104

556

GAINS AND LOSSES ON EMPLOYEE BENEFITS RECORDED DIRECTLY IN EQUITY

367

EDF I Reference Document 2017