Changes in provisions for employee benefits were as follows:
Increases | Decreases | |||||
|---|---|---|---|---|---|---|
| (in millions of euros) | 31/12/2019 | Operating (1) (2) | Financial (3) | Operating (2) (4) | Financial (5) | 31/12/2020 |
| Provisions for post-employment benefits | Provisions for post-employment benefits
10,411 | Provisions for post-employment benefits Increases 695 | Provisions for post-employment benefits Decreases 382 | Provisions for post-employment benefits
(715) | (212) | 10,561 |
| Provisions for long-term benefits | Provisions for long-term benefits
1,019 | Provisions for long-term benefits Increases 103 | Provisions for long-term benefits Decreases 13 | Provisions for long-term benefits
(80) | - | 1,055 |
| PROVISIONS FOR EMPLOYEE BENEFITS | PROVISIONS FOR EMPLOYEE BENEFITS 11,430 | PROVISIONS FOR EMPLOYEE BENEFITS Increases 798 | PROVISIONS FOR EMPLOYEE BENEFITS Decreases 395 | PROVISIONS FOR EMPLOYEE BENEFITS (795) | (212) | 11,616 |
(1) Including a past service cost of €485 million, amortisation of actuarial losses amounting to €303 million, and unvested benefits of €10 million.
(2) See notes 6 and 11.2.
(3) See note 13.
(4) Including €(771) million for employers’ contributions and €(24) million for actuarial gains.
(5) For the expected return on fund assets.
| (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 31/12/2019 | BALANCE AT 31/12/2019Obligations30,539 | BALANCE AT 31/12/2019Fund assets(12,315) | BALANCE AT 31/12/2019 Obligations 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 |
| Net expense for 2020 | Net expense for 2020 Obligations880 | Net expense for 2020 Fund assets(212) | Net expense for 2020 Obligations net of fund assets668 | Net expense for 2020 Unrecognised past service cost10 | Net expense for 2020 Unrecognised actuarial gains and losses279 | Net expense for 2020 Provision in the balance sheet957 |
| Unrecognised actuarial gains and losses | Unrecognised actuarial gains and losses Obligations2,229 | Unrecognised actuarial gains and losses Fund assets(1,136) | Unrecognised actuarial gains and losses Obligations net of fund assets1,093 | Unrecognised actuarial gains and losses Unrecognised past service cost- | Unrecognised actuarial gains and losses Unrecognised actuarial gains and losses(1,093) | 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(1,230) | Benefits paid Fund assets459 | Benefits paid Obligations net of fund assets(771) | Benefits paid Unrecognised past service cost- | Benefits paid Unrecognised actuarial gains and losses- | Benefits paid Provision in the balance sheet(771) |
| BALANCE AT 31/12/2020 | BALANCE AT 31/12/2020Obligations32,418 | BALANCE AT 31/12/2020Fund assets(13,203) | BALANCE AT 31/12/2020 Obligations net of fund assets19,214 | BALANCE AT 31/12/2020Unrecognised past service cost(19) | BALANCE AT 31/12/2020Unrecognised actuarial gains and losses(7,579) | BALANCE AT 31/12/2020Provision in the balance sheet11,616 |
The actuarial gains and losses on obligations generated over 2020 amount to €2,229 million, and mainly reflect changes in the discount rate and inflation rate (€1,903 million),and €326 million of losses due to experience adjustments.
(in millions of euros) | 31/12/2020 | 31/12/2019 |
|---|---|---|
Current service cost (1) | Current service cost (1) 31/12/2020 485 | Current service cost (1) 31/12/2019 409 |
Charges d’intérêts (actualisation)(2) | Charges d’intérêts (actualisation)(2) 31/12/2020 395 | Charges d’intérêts (actualisation)(2) 31/12/2019 614 |
Interest expenses (discount effect)(2) | Interest expenses (discount effect)(2) 31/12/2020 (212) | Interest expenses (discount effect)(2) 31/12/2019 (271) |
Amortisation of unrecognised actuarial gains and losses – post-employment benefits | Amortisation of unrecognised actuarial gains and losses – post-employment benefits 31/12/2020 185 | Amortisation of unrecognised actuarial gains and losses – post-employment benefits 31/12/2019 99 |
Change in actuarial gains and losses – long-term benefits | Change in actuarial gains and losses – long-term benefits 31/12/2020 94 | Change in actuarial gains and losses – long-term benefits 31/12/2019 132 |
Effect of plan curtailment or settlement | Effect of plan curtailment or settlement 31/12/2020 - | Effect of plan curtailment or settlement 31/12/2019 - |
Past service cost – vested benefits | Past service cost – vested benefits 31/12/2020 - | Past service cost – vested benefits 31/12/2019 - |
Past service cost – unvested benefits | Past service cost – unvested benefits 31/12/2020 10 | Past service cost – unvested benefits 31/12/2019 10 |
NET CHARGES RELATED TO POST-EMPLOYMENT BENEFITS AND LONG-TERM BENEFITS | NET CHARGES RELATED TO POST-EMPLOYMENT BENEFITS AND LONG-TERM BENEFITS 31/12/2020 957 | NET CHARGES RELATED TO POST-EMPLOYMENT BENEFITS AND LONG-TERM BENEFITS 31/12/2019 993 |
including: | including: 31/12/2020
| including: 31/12/2019
|
Operating expenses(3) | Operating expenses(3) 31/12/2020 774 | Operating expenses(3) 31/12/2019 651 |
Financial expenses | Financial expenses 31/12/2020 183 | Financial expenses 31/12/2019 342 |
(1) The higher past service cost compared to 2019 essentially results from changes in actuarial assumptions at 31 December 2019, principally the decrease in the discount rate (-1.0%).
(2) The interest expenses (discount effect) of €395 million are €219 million lower in 2020 than 2019, as a result of the decrease in the discount rate between 1 January 2019 (2.3%) and 1 January 2020 (1.3%).
(3) In 2020, this amount corresponds to operating increases of €798 million net of reversals for actuarial gains and losses (€24 million).
