Carrefour - 2017 Registration Document

CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 Notes to the Consolidated Financial Statements 2017 REGISTRATION DOCUMENT | CARREFOUR 5. 254 Provisions and contingent liabilities Note 9 Accounting principles In accordance with IAS 37 – Provisions, Contingent Liabilities and Contingent Assets, a provision is recorded when, at the period-end, the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount of the provision is estimated based on the nature of the obligation and the most probable assumptions. Provisions are discounted when the effect of the time value of money is material. Contingent liabilities, which are not recognised in the statement of financial position, are defined as: possible obligations that arise from past events and whose ● existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or present obligations that arise from past events but are not ● recognised because (i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or (ii) the amount of the obligation cannot be measured with sufficient reliability. Changes in provisions 9.1 (in millions of euros) December 31, 2016 Translation adjustment Increases Discounting adjustment Reversals of surplus provisions Utilisations Other December 31, 2017 Post-employment benefit obligations (1) 1,279 (2) 97 (38) (39) (42) 0 1,256 Claims and litigation 1,312 (119) 448 - (210) (150) (1) 1,280 Tax reassessments 885 (84) 285 - (106) (27) 7 960 Disputes with current and former employees 243 (22) 109 - (63) (93) (8) 166 Legal disputes 184 (14) 54 - (41) (30) 1 154 Restructuring 98 (2) 76 - (10) (54) (0) 108 Other (2) 375 (0) 66 - (26) (56) 1 359 TOTAL PROVISIONS 3,064 (123) 687 (38) (285) (302) (0) 3,003 See Note 10. (1) Other provisions primarily concern technical risks associated mainly with the insurance business and onerous contracts. (2) Group companies are involved in a certain number of claims and legal proceedings in the normal course of business. They are also subject to tax audits that may result in reassessments. The main claims and legal proceedings are described below. In each case, the risk is assessed by Group management and their advisors. At December 31, 2017, the claims and legal proceedings in which the Group was involved were covered by provisions totalling 1,280 million euros (December 31, 2016: 1,312 million euros). No details are provided because the Group considers that disclosure of the amount set aside in each case could be seriously detrimental to its interests.