Universal Registration Document 2022

Changes in provisions for employee benefits were as follows:

		Increases		Decreases
(in millions of euros)	31/12/2021	Operating ⁽¹⁾⁽⁴⁾	Financial ⁽³⁾	Operating ⁽²⁾⁽⁴⁾	Financial ₍₅₎	31/12/2022
Provisions for post-employment benefits	10,794	788	405	(600)	(220)	11,167
Provisions for long-term benefits	1,073	47	14	(209)	-	925
PROVISIONS FOR EMPLOYEE BENEFITS	11,867	835	419	(809)	(220)	12,092

(1) Including a past service cost of €574 million, amortisation of actuarial losses amounting to €259 million, and unvested benefits of €2 million.

(2) Including €(658) million for employers’ contributions and €(151) million for actuarial gains.

(3) See note 11.

(4) See note 5.

(5) For the expected return on fund assets.

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 31/12/2021	Balance at 31/12/2021Obligations32,225	Balance at 31/12/2021Fund assets(13,148)	Balance at 31/12/2021Obligations net of fund assets19,076	Balance at 31/12/2021Unrecognised past service cost(11)	Balance at 31/12/2021Unrecognised actuarial gains and losses(7,198)	Balance at 31/12/2021Provision in the balance sheet11,867
Net expense for 2022	Net expense for 2022 Obligations 993	Net expense for 2022 Fund assets (220)	Net expense for 2022 Obligations net of fund assets 773	Net expense for 2022 Unrecognised past service cost 2	Net expense for 2022 Unrecognised actuarial gains and losses 108	Net expense for 2022 Provision in the balance sheet 883
Change in unrecognised actuarial gains and losses	Change in unrecognised actuarial gains and losses Obligations (8,414)	Change in unrecognised actuarial gains and losses Fund assets 3,733	Change in unrecognised actuarial gains and losses Obligations net of fund assets (4,681)	Change in unrecognised actuarial gains and losses Unrecognised past service cost -	Change in unrecognised actuarial gains and losses Unrecognised actuarial gains and losses 4,681	Change in 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 (1,090)	Benefits paid Fund assets 432	Benefits paid Obligations net of fund assets (658)	Benefits paid Unrecognised past service cost -	Benefits paid Unrecognised actuarial gains and losses -	Benefits paid Provision in the balance sheet (658)
BALANCE AT 31/12/2022	BALANCE AT 31/12/2022Obligations23,713	BALANCE AT 31/12/2022Fund assets(9,203)	BALANCE AT 31/12/2022Obligations net of fund assets14,510	BALANCE AT 31/12/2022Unrecognised past service cost(9)	BALANCE AT 31/12/2022Unrecognised actuarial gains and losses(2,409)	BALANCE AT 31/12/2022Provision in the balance sheet12,092

Actuarial gains and losses on obligations amount to €(8,414) million for 2022, reflecting:

the €(15,192) million change in the discount rate;
the €4,517 million change in the inflation rate;
the €(95) million change in demographic assumptions;
the €1,632 million impact of pay rise measures decided in 2022 for application from 2023;
the €724 million change in experience adjustments, principally due to changes in assumptions about the social security ceiling and revaluation of CNAV and AGIRC-ARRCO pensions, and the impact of pay rise measures applied during 2022.

Actuarial gains and losses on fund assets totalled €3,733 million for 2022, in an environment of falling bond and equity markets.

Post-employment and long-term employee benefit expenses:

(in millions of euros)	31/12/2022	31/12/2021
Past service cost	Past service cost 31/12/2022 574	Past service cost 31/12/2021 581
Interest expense (discount effect) ⁽¹⁾	Interest expense (discount effect) ⁽¹⁾ 31/12/2022 419	Interest expense (discount effect) ⁽¹⁾31/12/2021 292
Expected return on fund assets	Expected return on fund assets 31/12/2022 (220)	Expected return on fund assets 31/12/2021 (166)
Amortisation of unrecognised actuarial gains and losses - post-employment benefits	Amortisation of unrecognised actuarial gains and losses - post-employment benefits 31/12/2022 197	Amortisation of unrecognised actuarial gains and losses - post-employment benefits 31/12/2021 221
Change in actuarial gains and losses - long-term benefits	Change in actuarial gains and losses - long-term benefits 31/12/2022 (89)	Change in actuarial gains and losses - long-term benefits 31/12/2021 81
Effect of plan curtailment or settlement	Effect of plan curtailment or settlement 31/12/2022 -	Effect of plan curtailment or settlement 31/12/2021 -
Past service cost - vested benefits	Past service cost - vested benefits 31/12/2022 -	Past service cost - vested benefits 31/12/2021 -
Past service cost - unvested benefits	Past service cost - unvested benefits 31/12/2022 2	Past service cost - unvested benefits 31/12/2021 8
NET EXPENSES FOR POST-EMPLOYMENT BENEFITS AND LONG-TERM BENEFITS	NET EXPENSES FOR POST-EMPLOYMENT BENEFITS AND LONG-TERM BENEFITS 31/12/2022 883	NET EXPENSES FOR POST-EMPLOYMENT BENEFITS AND LONG-TERM BENEFITS31/12/20211,017
including:	including: 31/12/2022	including: 31/12/2021
Operating expenses ⁽²⁾	Operating expenses ⁽²⁾ 31/12/2022 684	Operating expenses ⁽²⁾31/12/2021 891
Financial expenses	Financial expenses 31/12/2022 199	Financial expenses 31/12/2021 126

(1) The interest expenses (discount effect) of €419 million are €127 million higher than at 31 December 2021, as a result of the increase in the discount rate between 1 January 2021 (1.3%) and 1 January 2022 (3.9%).

(2) In 2022, this amount corresponds to increases of €835 million to operating provisions, net of reversals for actuarial gains and losses (€151 million).

Universal Registration Document 2022

Introduction