349
Annual Report -
2013
-
Vivendi
4
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements |
Statutory Financial Statements
Note 15. Provisions
14.3
50 bonus share plan
On July 16, 2012, Vivendi implemented a plan to allocate 50 bonus
shares to each employee of all the Group’s French subsidiaries.
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, 2013, 663,050 shares were granted to beneficiaries
actively employed at this date. The fair value of each bonus share
granted was €12.40.
Note 15.
Provisions
Summary table
Nature of provisions
(in millions of euros)
Opening
balance
Charge
Reversal
Utilization
Closing
balance
Provision for real estate contingencies and losses
40.8
-
(3.7)
-
37.1
Foreign exchange losses
2.8
1.3
-
(3.8)
0.3
Employee benefits
14.4
5.9
-
-
20.3
Other provisions
1,656.9
1,006.6
(950.5)
(25.1)
1,687.9
Total - Provisions
1,714.9
1,013.8
(954.2)
(28.9)
1,745.6
Charges and reversals:
operating
13.7
-
(7.7)
financial
1.7
-
(4.1)
exceptional
998.4
(954.2)
(17.1)
As of December 31, 2013, the provision for real estate contingencies
and losses amounted to €37.1 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, 2013, «other provisions» amounted to
€1,687.9 million and included:
a provision in relation to the Liberty Media Corporation for
€944.8 million (see 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 €586.5 million to cover two tax refund
requests which fiscal positions are or could be challenged (please
refer to 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,
–– €220.3 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 €43.8 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 2014 or before. These plans are 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, 2013, the provision for employee benefits amounted
to €20.3 million, compared to €14.4 million in 2012 (please see Note 1.9,
Accounting Rules and Methods; Employee benefit plans). The amount
of unrecognized actuarial losses amounted to €48.3 million as of
December 31, 2013. Related obligations are valued using the following
assumptions: a 3.00% to 4.00% wage increase rate; a 3.00% 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%.
