SCH2017_DRF_EN_Livre.indb

5

Consolidated financial statements at December 31, 2017 Notes to the consolidated financial statements

Plans changes occurred in France and in United States. Actuarial gains and losses have been fully recognized in other reserves except for long-term benefits for active employees, notably long service awards in France, for which all actuarial gains and losses are recognized in the income statement. Actuarial gains and losses stem from changes in actuarial assumptions (primarily discount rates).

At December 31, 2017, actuarial gains relative to the effects of experience on healthcare costs, life insurance and other post- employment benefits total EUR43 million for the Group compared to EUR35 million of gains at December 31, 2016.

Dec. 31, 2017

Dec. 31, 2016

3. Funded status Projected benefit obligation Deferred items: Unrecognized past service cost

(277)

(452)

-

-

PROVISION RECOGNIZED IN BALANCE SHEET

(277)

(452)

Provisions for contingencies and charges

NOTE 23

Economic risks

Customer risks

Products risks

Environmental risks

Restruc- turing Other risks Provisions

Dec. 31, 2015

850

129

459

348

143

630

2,559

Long-term portion

591

106

175

335

16

436

1,659

Additions

186

14

130

5 1

124

142

601

Discounting effect

-

-

-

-

-

1

Utilizations

(118)

(26)

(119)

(21)

(111)

(111) (131)

(506) (170)

Reversals of unused provisions

(5) 22

(8)

(22)

(2)

(2)

Translation adjustments Changes in the scope of consolidation and other

2

6

9

1

13

53

(28) 907

(8)

(2)

-

9

(2)

(31)

Dec. 31, 2016

103

452

340

164

541

2,507

Long-term portion

710

87

164

330

18

341

1,650

Additions

82

19

145

10

125

126

507

Discounting effect

-

-

-

-

-

-

-

Utilizations

(79) (24) (64)

(11) (12) (11)

(98) (15) (29)

(18)

(121)

(151)

(478)

Reversals of unused provisions

(7)

(3) (7)

(19) (53)

(80)

Translation adjustments Changes in the scope of consolidation and other

(34)

(198)

(1)

6

(10) 445

(1)

(4)

25

15

DEC. 31, 2017

821

94

290

154

469

2,273

Long-term portion

615

64

153

276

8

315

1,431

(a) Economic risks These provisions cover, in particular, tax risks arising from audits performed by local tax authorities and financial risks arising primarily on guarantees given to third parties in relation to certain assets and liabilities.

(b) Customer risks Provisions for customer risks mainly integrate the provisions for losses at completion for some of long term contracts, for EUR94 million.

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