PERNOD RICARD - Universal Registration Document 2019-2020

6. CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Breakdown of provisions 1. The breakdown of provision at the balance sheet date is as follows:

30.06.2019 Restated

30.06.2020

€ million

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

559

605

Other non-current provisions for risks and charges

269

310

Current provisions Provisions for restructuring

44

101

Other current provisions for risks and charges

105

121

TOTAL

978

1,138

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

Movements in the year

30.06.2019 Restated Allowances

Unused reversals

Translation adjustments

First-time consolidation

Other movements 30.06.2020

Used

€ million

Provisions for restructuring

44

107

37

12

(1)

-

0

101

Other current provisions

105

35

10

13

(2)

-

6

121

Other non-current provisions

269

141

8

65

(31)

-

3

310

TOTAL PROVISIONS

418

284

55

90

(34)

-

9

533

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 . At 30 June 2020, the provisions recorded by the Group for all litigation and risks in which it is involved amounted to €431 million, excluding uncertain tax positions recognised in current tax liabilities. 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 (other than corporate income 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.

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