PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Breakdown of balance sheet amounts 1. The breakdown of provisions for risks and charges in the balance sheet is as follows:

30.06.2018

30.06.2017

€ million

Non-current provisions Provisions for pensions and other long-term employee benefits

649 453

526 448

Other non-current provisions for risks and charges

Current provisions Provisions for restructuring

46

43

Other current provisions for risks and charges

113

100

TOTAL

1,261

1,117

Changes in provisions (other than provisions for pensions and other long-term employee benefits) 2.

Movements in the year

Foreign currency gains and losses

Reversals (used)

Reversals (not used)

Scope changes

Other movements 30.06.2018

30.06.2017 Allowances

€ million

Provisions for restructuring Other current provisions Other non-current provisions

46

31 21 81

(31) (18) (14) (63)

(2)

0 1 1 2

- - - -

(1) (3)

43

113 453 612

(13) (44) (59)

100 448 591

(30) (34)

TOTAL PROVISIONS

132

Some Group companies are involved in disputes as part of their normal business activities. They are also subject to tax audits, some of which may lead to tax reassessment. The main disputes are described in Note 6.5 – Disputes . On 30 June 2018, the amount of provisions booked by the Group in respect of all disputes or risks in which it is involved amounted to €548 million. The Group does not provide details (with exceptions), as it believes the disclosure of the amount of any provision booked in consideration of each pending dispute would be likely to cause serious harm to the Group.

The change in “Other current and non-current provisions” during the period is explained as follows: allowances stem mainly from proceedings brought against the ● Company and its affiliates, as part of the normal course of business and the emergence of new risks, including tax risks; reversals are made at the time of corresponding payments or where ● the risk is considered to be nil. Unused reversals primarily concern the re-evaluation or the statute of limitation of certain risks, including tax risks; other movements primarily reflect reclassifications and changes in ● the scope of consolidation.

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018