Page 343 - 2012 Annual Report

343
VIVENDI l 2012 l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS 4
4
IV - VIVENDI SA 2012 STATUTORY FINANCIAL STATEMENTS
3. NOTES TO THE 2012 STATUTORY FINANCIAL STATEMENTS
Note 15 Provisions
Note 15. Provisions
As of December 31, 2012, the provision for real estate contingencies and
losses amounted to €40.8 million and covered various risks related to past
commitments given by SIG 35 (Vivendi’s former real estate division holding
company).
As of December 31, 2012, “other provisions” amounted to €1,656.9 million
and included:
✱ a provision in relation to the Liberty Media Corporation for
€944.8 million (see Major Events and Note 24, Litigation);
✱ a provision in relation to the securities class action in the United
States for €100 million (see Note 24, Litigation);
✱ an aggregate provision for €574.6 million to cover tax refund requests
that could be challenged (please refer to Note 4, Net Exceptional
Items, Note 5, Income Taxes and Note 9, Current Assets):
– €366.2 million related to the tax savings of the Consolidated Global
Profit Tax System for the fiscal year ended December 31, 2011,
– €208.4 million related to using effects of the taxes due, under the
French Tax Group System for the year ended December 31, 2012,
✱ and a provision valued at €24.8 million in relation to rights which are
in the process of being acquired by employees and Corporate Officers
of Vivendi and its subsidiaries in respect of the allotment of free
performance shares with an acquisition period ending in 2013. These
plans were covered through the acquisition of treasury shares (please
refer to Note 8, Treasury Shares and to Note 14, Stock Option Plans
and Performance Share Plans).
As of December 31, 2012, the provision for employee benefits amounted to
€14.4 million, compared to €26.9 million in 2011 (see Note 1, Accounting
Rules and Methods; Employee benefit plans). Vivendi recorded a reversal
of €12.4 million mainly due to a contribution of €15.0 million paid in 2012
to cover plans (recorded in the income statement under “Insurance”,
please refer to Note 2, Operating Earnings/(Loss)).
Related obligations are valued using the following assumptions: a 3.50%
to 4.00% wage increase rate; a 3.25% discount rate for the general
statutory scheme and “Article 39” schemes; and an assumed retirement
age of between 60 and 65 years.
Supplemental pension obligations, other than retirement termination
payments, are partially funded by external insurance policies, the updated
value of which is deducted from the actuarial obligation. The expected
rate of return on plan assets is 4.00%.
14.3. 50 BONUS SHARE PLAN
On July 16, 2012, Vivendi implemented a plan to allocate 50 bonus shares
to each employee at all the Group’s French entities. These shares will be
issued at the end of a two-year period, i.e., on July 17, 2014, without any
performance condition subject to the employee being actively employed
at this date.
As of December 31, 2012, 696,700 shares were granted to beneficiaries
actively employed at this date. The fair value of each bonus share granted
was €12.40.
SUMMARY TABLE
Nature of provisions (in millions of euros)
Opening
balance Charge Reversal Utilization
Closing
balance
Provision for real estate contingencies and losses 46.6 - (5.7) (0.1) 40.8
Foreign exchange losses 3.3 1.1 - (1.6) 2.8
Employee benefits 26.9 - - (12.5) 14.4
Other provisions 155.7 1,539.8 (7.2) (31.4) 1,656.9
TOTAL - PROVISIONS 232.5 1,540.9 (12.9) (45.6) 1,714.9
Charges and reversals:
- operating 3.0 - (12.6)
- financial 1.4 - (1.6)
- exceptional 1,536.5 (12.9) (31.4)