This approach can be complemented by estimating the impact of a change in the discount rate on the discounted value.
In application of Article 11 of the decree of 23 February 2007, the following table reports these details for the main components of provisions for the back-end of the nuclear cycle, decommissioning of nuclear plants and last cores for EDF:
| Amounts in provisions at present value | Sensitivity to discount rate | ||||
|---|---|---|---|---|---|
| Balance sheet provision | Pre-tax net income | ||||
| (in millions of euros) | 31/12/2019 | 0.20% | -0.20% | 0.20% | -0.20% |
| BACK-END NUCLEAR CYCLE EXPENSES | |||||
spent fuel management | spent fuel management Amounts in provisions at present value10,823 | spent fuel management Sensitivity to discount rate(228) | 249 | 196 | (215) |
waste removal and conditioning | waste removal and conditioning Amounts in provisions at present value805 | waste removal and conditioning Sensitivity to discount rate(25) | 27 | 16 | (17) |
long-term radioactive waste management | long-term radioactive waste management Amounts in provisions at present value10,531 | long-term radioactive waste management Sensitivity to discount rate(659) | 750 | 554 | (636) |
| DECOMMISSIONING AND LAST CORE EXPENSES | |||||
decommissioning of nuclear power plants in operation | decommissioning of nuclear power plants in operation Amounts in provisions at present value13,244 | decommissioning of nuclear power plants in operation Sensitivity to discount rate(506) | 529 | 7 | (7) |
decommissioning of shut-down nuclear power plants | decommissioning of shut-down nuclear power plants Amounts in provisions at present value3,693 | decommissioning of shut-down nuclear power plants Sensitivity to discount rate(139) | 150 | 139 | (150) |
last cores | last cores Amounts in provisions at present value2,624 | last cores Sensitivity to discount rate(88) | 94 | - | - |
| TOTAL | TOTALAmounts in provisions at present value41,720 | TOTALSensitivity to discount rate(1,645) | 1,799 | 912 | (1,025) |
Other provisions for decommissioning principally concern fossil-fired power plants.
The costs of decommissioning fossil-fired power plants are calculated using regularly updated studies based on estimated future costs, measured by reference to the charges recorded on past operations and the most recent estimates for plants still in operation.
The provision recorded at 31 December 2019 reflects the most recent known cost estimates and includes rehabilitation costs for generation sites.
Changes in provisions for employee benefits were as follows:
| Increases | Decreases | |||||
|---|---|---|---|---|---|---|
| (in millions of euros) | 31/12/2018 | Operating | Financial | Operating | Financial | 31/12/2019 |
| Provisions for post-employment benefits | Provisions for post-employment benefits 10,304 | Provisions for post-employment benefits Increases534 | Provisions for post-employment benefits Decreases592 | Provisions for post-employment benefits (748) | (271) | 10,411 |
| Provisions for long-term benefits | Provisions for long-term benefits 936 | Provisions for long-term benefits Increases140 | Provisions for long-term benefits Decreases21 | Provisions for long-term benefits (78) | - | 1,019 |
| PROVISIONS FOR EMPLOYEE BENEFITS | PROVISIONS FOR EMPLOYEE BENEFITS 11,240 | PROVISIONS FOR EMPLOYEE BENEFITSIncreases674 | PROVISIONS FOR EMPLOYEE BENEFITSDecreases613 | PROVISIONS FOR EMPLOYEE BENEFITS (826) | (271) | 11,430 |
(1) Including a past service cost of €409 million, amortisation of actuarial losses amounting to €255 million, and unvested benefits of €10 million.
(2) Including €(802) million for employers’ contributions and €(23) million for actuarial gains.
(3) For the expected return on fund assets.
(4) See notes 6 and 11.2.
DETAILS OF CHANGES IN THE PROVISIONS:
| (in millions of euros) | Obligations | Fund assets | Obligations net of fund assets | Unrecognised Past service cost | Unrecognised Actuarial gains and losses | Provision in the balance sheet |
|---|---|---|---|---|---|---|
| BALANCE AT 31/12/2018 | BALANCE AT 31/12/2018Obligations26,897 | BALANCE AT 31/12/2018Fund assets(10,913) | BALANCE AT 31/12/2018Obligations net of fund assets15,984 | BALANCE AT 31/12/2018Unrecognised Past service cost(39) | BALANCE AT 31/12/2018Unrecognised Actuarial gains and losses(4,705) | BALANCE AT 31/12/2018Provision in the balance sheet11,240 |
| Net expense for 2019 | Net expense for 2019 Obligations1,023 | Net expense for 2019 Fund assets(271) | Net expense for 2019 Obligations net of fund assets752 | Net expense for 2019 Unrecognised Past service cost10 | Net expense for 2019 Unrecognised Actuarial gains and losses231 | Net expense for 2019 Provision in the balance sheet993 |
| Unrecognised actuarial gains and losses | Unrecognised actuarial gains and losses Obligations3,887 | Unrecognised actuarial gains and losses Fund assets(1,596) | Unrecognised actuarial gains and losses Obligations net of fund assets2,291 | Unrecognised actuarial gains and losses Unrecognised Past service cost- | Unrecognised actuarial gains and losses Unrecognised Actuarial gains and losses(2,291) | Unrecognised actuarial gains and losses Provision in the balance sheet- |
| Contributions to funds | Contributions to funds Obligations- | Contributions to funds Fund assets- | Contributions to funds Obligations net of fund assets- | Contributions to funds Unrecognised Past service cost- | Contributions to funds Unrecognised Actuarial gains and losses- | Contributions to funds Provision in the balance sheet- |
| Benefits paid | Benefits paid Obligations(1,268) | Benefits paid Fund assets465 | Benefits paid Obligations net of fund assets(803) | Benefits paid Unrecognised Past service cost- | Benefits paid Unrecognised Actuarial gains and losses- | Benefits paid Provision in the balance sheet(803) |
| BALANCE AT 31/12/2019 | BALANCE AT 31/12/2019Obligations30,539 | BALANCE AT 31/12/2019Fund assets(12,315) | BALANCE AT 31/12/2019Obligations net of fund assets18,224 | BALANCE AT 31/12/2019Unrecognised Past service cost(29) | BALANCE AT 31/12/2019Unrecognised Actuarial gains and losses(6,765) | BALANCE AT 31/12/2019Provision in the balance sheet11,430 |
