Compagnie des Alpes - 2017 Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

6.10

PROVISIONS (NON-CURRENT AND CURRENT)

Non-current provisions Non-current provisions comprise the following items:

Income

Translation adjustments

Change in scope of consolidation Other

30/09/2017

30/09/2016

Increases

Reversals

Post-employment benefits

45,994

3,793

-2,431

-447

46,909

Other non-current contingencies

7,907

631

-428

-11

143

8,242

TOTAL

53,901

4,424

-2,859

-11

-304

55,151

Provisions for post-employment benefits The amount of provisions for post-employment benefits represents the Group’s obligations for the vested rights of employees, net of provisions for payments to insurance funds. These provisions are calculated including social security charges on the basis of an average retirement age of 62. The discount rate used was 1.45% at 30 September 2017, compared with 0.8% at 30 September 2016.

Provisions for “Other non-current contingencies” notably covered provisions for site renovation (representing €2.8 million). They also include the provisions set aside in connection with long-service awards (representing €1.4 million) and depreciation charges (representing €1.9 million).

The balance sheet amounts are determined as follows:

30/09/2017

30/09/2016

(in thousands of euros)

Present value of financed obligations

54,904 -7,995 46,909

53,337 -7,343 45,994

Fair value of plan assets

LIABILITY RECOGNISED IN THE BALANCE SHEET

The amount of provisions for post-employment benefits represents the Group’s obligations for the vested rights of employees, net of provisions for payments to insurance funds. The table below shows the amounts recognised in the income statement:

30/09/2017

30/09/2016

(in thousands of euros)

Current service cost

3,444

2,917

Financial cost

453 -59

935

Expected return on plan assets Reduction/discontinue operations

-135 -934

-

TOTAL AMOUNT INCLUDED IN EMPLOYEE BENEFITS EXPENSE

3,838

2,783

Expenses for the year include: z entitlements for an additional year of service; z interest earned; z expected return on pension fund assets. The changes during the fiscal year for defined-benefit pension plans are detailed below:

30/09/2017

30/09/2016

(in thousands of euros)

Current service cost

-3,444

-2,917

Financial cost

-453

-935

Expected return on plan assets

59

135

Actuarial gains and losses

447 976

-6,458

Benefits net of those redeemed from the funds

960 934

Reduction/discontinue operations

-

Other

1,500 -915

1,421

TOTAL

-6,860

Actuarial gains and losses for the fiscal year mainly result from changes in the discount rate (1.45% compared to 0.8% at 30 September 2016). The expected return on assets is the same as the discount rate.

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Compagnie des Alpes I 2017 Registration Document