PERNOD-RICARD - URD 2020-21

____ 6. CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Other current assets Note 4.6

Other current assets are broken down as follows:

30.06.2021

30.06.2020

€ million

Advances and down payments

40

39

Tax accounts receivable, excluding income tax

195

258

Prepaid expenses

66

88

Other receivables

22

28

TOTAL

323

413

Provisions Note 4.7

The cost of restructuring measures is fully provisioned in the financial year, and is recognised in profit and loss under “Other operating income and expenses” when it is material and results from a Group obligation to third parties arising from a decision made by the competent corporate body that has been announced to the third parties concerned before the closing date. This cost mainly involves redundancy payments, early retirement payments, costs of notice periods not served, training costs of departing individuals and costs of site closure. Scrapping of property, plant and equipment, impairment of inventories and other assets, as well as other costs (moving costs, training of transferred individuals, etc.) directly related to the restructuring measures are also recognised in restructuring costs. The amounts provided for correspond to forecast future payments to be made in connection with restructuring plans, discounted to present value when the payment schedule is such that the effect of the time value of money is significant.

In accordance with IAS 37 (Provisions, contingent liabilities and contingent assets), provisions for risks and contingencies are recognised to cover probable outflows of resources that can be estimated and that result from present obligations relating to past events. In the case where a potential obligation resulting from past events exists, but where the occurrence of the outflow of resources is not probable or where the amount cannot be reliably estimated, a contingent liability is disclosed among the Group’s commitments. The amounts provided for are measured by taking account of the most probable assumptions or using statistical methods, depending on the nature of the obligations. Provisions notably include: provisions for restructuring; provisions for pensions and other long-term employee benefits; provisions for litigation (tax other than corporate income tax, legal, employee-related). Litigation is kept under regular review, on a case-by-case basis, by the Legal Department of each affiliate or region or by the Group’s Legal Department, drawing on the help of external legal consultants in the most significant or complex cases. A provision is recorded when it becomes probable that a present obligation arising from a past event will require an outflow of resources whose amount can be reliably estimated. The amount of the provision is the best estimate of the outflow of resources required to settle this obligation.

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

30.06.2020

30.06.2021

€ million

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

605

477

Other non-current provisions for risks and charges

310

253

Current provisions Provisions for restructuring

101

50

Other current provisions for risks and charges

121

113

TOTAL

1,138

893

210

PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021