136 / 364
4.1 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 14. Other non-current provisions and liabilities and legal and arbitration proceedings
DANONE
REGISTRATION DOCUMENT 2015
136
NOTE 14. OTHER NON-CURRENT PROVISIONS AND LIABILITIES
AND LEGAL AND ARBITRATION PROCEEDINGS
Note 14.1. Accounting principles
Other non-current provisions and liabilities consist mainly of:
•
provisions;
•
investment subsidies.
Other non-current provisions and liabilities also include the short-
termportion due in less than one year since it is deemed immaterial.
Provisions are recognized when the Group has a present obligation
to a third party and it is certain or probable that this obligation will
result in a net outflow of resources for the Group. The timing or
amount of the net outflow may be uncertain, but the amount must
be estimated in a reliable manner. A provision is reversed when it
no longer appears probable that the corresponding payment or an
outflow of resources will occur (provision not utilized).
Note 14.2. Carrying amount and change during the period
As of
December 31,
2014
Changes during the period
As of
December 31,
2015
(in € millions)
Increase
Reversal
Reversal
(not utilized)
Translation
differences
Other
Restructuring provisions
71
51
(26)
(6)
−
−
90
Other provisions for risks
and charges
652
264
(79)
(87)
(15)
(5)
730
Investment subsidies
14
1
−
−
−
−
14
Total
(a)
737
316
(105)
(93)
(15)
(6)
834
(a) The portion due in less than one year totaled €64 million as of December 31, 2015 (€45 million as of December 31, 2014).
Changes to Other non-current provisions and liabilities for 2015
were as follows:
•
increases result primarily from lawsuits against the Company
and its subsidiaries in the normal course of business;
•
reversals occur when corresponding payments are made or
when the risk is considered extinguished. Unused reversals
relate mainly to reassessments and situations where some
risks, notably tax risks, cease to exist;
•
other changes correspond primarily to reclassifications and
changes in scope.
As of December 31, 2015, Other provisions for risks and charges
consist mainly of provisions for legal, financial and tax risks as well
as provisions for multi-year variable compensation granted to some
employees, with these provisions established in the context of the
Group's normal course of business.
Also as of this date, the Group believes that it is not subject to risks
that could, individually, have a material impact on its financial
situation or profitability.
Note 14.3. Legal and arbitration proceedings
In general, the Company and its subsidiaries are parties to legal
proceedings arising in the normal course of business, in particular
by competition authorities in certain countries. Provisions are reco-
gnized when an outflow of resources is probable and the amount
can be reliably estimated.
Proceedings related to the false alarm given
by Fonterra on certain ingredients supplied
to the Group in Asia in 2013
See Note 6.2 of the Notes to the consolidated financial statements.
Proceedings related to the decision of the Spanish
National Authority for Markets and Competition
See Note 6.5 of the Notes to the consolidated financial statements.
Other proceedings
To the best of the Group's knowledge, no other governmental, court
or arbitration proceedings are currently ongoing that are likely to
have, or have had in the past 12 months, a material impact on the
Group's financial position or profitability.