Financial Statements 2021

2. Notes to the IFRS Consolidated Financial Statements / 2.5 Operational Assets and Liabilities

(2020: €24 million). At 31 December 2021, €16,564 million of work in progress and €4,428 million of finished goods and parts for resale were carried at net realisable value. Inventories recognised as an expense during the period amount to €32,388 million (2020: €32,985 million).

Inventories of €28,538 million (2020: €30,401 million) decreased by € -1,863 million. This is driven by Airbus (€ -1,944 million), and mainly reflects the delivery of the last A380 aircraft and the reduction in the widebodies inventory. In 2021, wr i te-downs of inventor ies in the amount of € -655 million (2020: € -950 million) are recognised in cost of sales, whereas reversal of write-downs amounts to €459 million

24. Provisions, Contingent Assets and Contingent Liabilities

Provisions — The determination of provisions, e.g. for onerous contracts, programme-related provisions, warranty costs, restructuring measures and legal proceedings is based on best estimates.

In general, in the aerospace sector, the contractual and technical parameters considered for provision calculations are complex. Hence uncertainty exists with regard to the timing and amounts of expenses to be taken into account.

31 December

2021

2020

(In € million)

Provisions for pensions

7,072

9,980

8,209

10,563

Other provisions

Total

15,281

20,543

thereof non-current portion

10,771

14,298 (1)

thereof current portion

4,510

6,245 (1)

(1) Previous year allocation between non-current and current provisions has been restated.

As of 31 December 2021, provisions for pensions decreased mainly due to the change in financial assumptions of €1,453 million reflecting the further strengthening of interest rates and increased inflation assumptions in Germany, France, Canada and the UK and the increase in plan assets of €1,341 million. Other provisions decreased mainly due to the restructuring provision recorded in 2020 in response to the COVID-19 pandemic and a decrease in provisions for onerous contracts due to the delivery of the last A380 aircraft, the utilisation and net presentation of the A400M programme losses against inventories and the reduction in the A220 programme.

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Airbus / Financial Statements 2021