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Note 16. Provisions
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements |
Statutory Financial Statements
15.3. 50 bonus share plan
On July 16, 2012, Vivendi implemented a plan to allocate 50 bonus shares
to each employee of all of the Group’s French entities. On July 17, 2014,
727,118 shares were issued to the beneficiaries of this plan who were
still employed by the Group on that date.
Note 16.
Provisions
Summary table
Nature of provisions
(in millions of euros)
Opening
balance
Charge
Reversal
Utilization
Closing
balance
Foreign exchange losses
0.3
(0.3)
0.0
Employee benefits
20.3
12.8
(13.8)
(0.5)
18.8
Other provisions
1,725.0
190.2
(44.7)
(24.4)
1,846.1
Total - Provisions
1,745.6
203.0
(58.5)
(25.2)
1,864.9
Charges and reversals:
p
p
operating
17.8
(13.8)
(0.5)
p
p
financial
(0.7)
p
p
exceptional
185.2
(44.7)
(24.0)
As of December 31, 2014, “other provisions” amounted to €1,846.1 million
and included:
p
p
a provision in relation to the Liberty Media Corporation litigation for
€944.8 million (see Note 25, Litigation);
p
p
a provision in relation to the securities class action in the United
States for €100 million (see Note 25, Litigation);
p
p
an aggregate provision for €641 million to cover two tax refund
requests (see Note 5, Income Taxes and Note 9, Current Assets):
–– €409 million related to the tax savings of the Consolidated Global
Profit Tax System for the fiscal year ended December 31, 2011,
including moratorium interest, and
–– €231 million related to using effects of the taxes due, under the
French Tax Group System for the year ended December 31, 2012,
including interest.
As of December 31, 2014, the provision for employee benefits amounted
to €18.8 million, compared to €20.3 million in 2013 (see Note 1.9,
Accounting Rules and Methods; Employee benefit plans), taking into
account the departure of several executives.
Related obligations are valued using the following assumptions: (i) a
3.0% to 4.0% wage increase rate; (ii) a 2.0% discount rate for the
general statutory scheme and “Article 39” schemes; (iii) 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 2.7%.
As of December 31, 2014, plan assets (comprised of bonds (up to 78%)
and shares (up to 15%)) and unrecognized actuarial losses amounted to
€30.5 million and € 51.3 million, respectively.
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Annual Report 2014