Groupe Renault - 2019 Universal Registration Document

04

CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS

CHANGE IN PROVISIONS NOTE 20

Provisions for litigation and risks concerning other taxes

Provisions for insurance activities  (1)

Provisions for commitments given and other

Restructuring provisions

Warranty provisions

Total 2,563 1,173 (980) (210)

(€ million)

At December 31, 2018  (2)

437 259

1,001

240

480

405 124 (93)

Increases

628

78

84

Reversals of provisions for application Reversals of unused balance of provisions

(224)

(591)

(31) (47)

(41)

(22)

(31)

- - -

(110)

Changes in scope of consolidation

- -

-

28

-

28

Translation adjustments and other changes

9

(40) 228

(21) 305

(52)

At December 31, 2019  (3)

450

1,016

523

2,522

Technical reserves established by the Sales Financing segment’s insurance companies. (1) The figures for 2018 include a reclassification of provisions for uncertain tax liabilities, in application of an IFRIC decision of September 2019. These provisions are presented (2) in specific lines instead of in other provisions as previously (note 2-A3). 2018 figures also include a €(57) million adjustment due to correction of an error concerning operations in the Americas region, with a corresponding entry in provisions. Short-term portion of provisions: €1,064 million; long-term portion of provisions: €1,458 million. (3)

All known litigation in which Renault or Group companies are involved is examined at each closing. After seeking the opinion of legal advisors, any provisions deemed necessary are set aside to cover the estimated risk. During 2019, the Group recorded no provisions in connection with significant new litigation. Information on contingent liabilities is provided in note 28-A2. Increases to restructuring provisions essentially comprise the effect of workforce adjustment measures in the Europe region (note 6-A).

At December 31, 2019, “Other provisions” include €84 million of provisions established in application of environmental regulations (€99 million at December 31, 2018). These include provisions to cover expenses relating to end-of-life vehicles and used batteries, the costs of a plan to improve nitrogen oxide (NO x ) emissions by diesel vehicles amounting to €8 million (note 28-A2), and environmental compliance costs for industrial land in the Europe region and for industrial sites in the Americas and Eurasia Regions.

OTHER CURRENT AND NON-CURRENT LIABILITIES NOTE 21

December 31, 2019

December 31, 2018

Non-current

Current

Total Non-current

Current

Total

(€ million)

Current taxes due

2

223

225 195

-

289

289 162

Provisions for uncertain tax liabilities* Tax liabilities (excluding current taxes due)

187

8

140

22

30 22

1,235 1,415 6,415 1,722

1,265 1,437 6,663 3,154

45 21

1,176 1,451 5,723 1,573

1,221 1,472 5,892 2,910

Social liabilities Other liabilities Deferred income

248

169

1,432

1,337

Derivatives on operating transactions of the Automotive segments

-

14

14

-

5

5

Total other liabilities

1,732 1,921

10,801 11,032

12,533 12,953

1,572 1,712

9,928

11,500

TOTAL 11,951 The figures for 2018 include a reclassification of provisions for uncertain tax liabilities, in application of an IFRIC decision of September 2019. These provisions are presented * in specific lines instead of in other provisions as previously (note 2-A3). Other liabilities mainly correspond to amounts payable under sales incentive programs (€2.455 million at December 31, 2019 and €2,442 million at December 31, 2018) and deferred income recorded in connection with sales contracts including a buyback commitment (€675 million at December 31, 2019 and €408 million at December 31, 2018). 10,239

392 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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