RUBIS_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS 9

2017 consolidated financial statements and notes

4.12 EMPLOYEE BENEFITS

ACCOUNTING POLICIES The Group’s employees are entitled to: • defined-contribution pension plans applicable under general law in the relevant countries; • supplementary pension benefits and retirement allowances (French, Swiss, Turkish and Bermudan companies and entities located in Barbados, Guyana and the Bahamas and certain Malagasy entities recently acquired); • a closed supplementary pension plan (FSCI pension funds, Channel Islands); • post-employment health plans (Bermudan and South African companies). The Group’s only obligations under defined-contribution plans are premiumpayments; the expense corresponding to premiumpayments is recorded in the results for the year. Under defined-benefit plans, pension commitments and related obligations are valued according to the actuarial projected unit credit method based on final salary. The calculations include actuarial assumptions, mainly pertaining to mortality, personnel turnover rates, final salary forecasts and the discount rate. These assumptions take into account the economic conditions of each country or each Group entity. The rate is determined in relation to high-quality corporate bonds in the region in question. These valuations are performed twice a year. Actuarial gains and losses on defined-benefit post-employment benefit plans resulting from changing actuarial assumptions or experience-related adjustments (differences between previous actuarial assumptions and actual recorded staffing events) are recognized in full under other comprehensive income for the period in which they are incurred. The same applies to any adjustments resulting from the limiting of hedging assets in the case of over-financed plans. These items are never subsequently recycled into profit and loss. In accordance with the IFRIC 14 interpretation, net assets resulting from over-financing of the FSCI’s defined-benefit pension plans are not recognized in the Group’s accounts, as the Group does not have an unconditional right to receive this surplus. The employees of Vitogaz France, Rubis Énergie, Frangaz, ViTOCorse, Rubis Antilles Guyane, SARA, SRPP, Rubis Energy Bermuda, Vitogaz Switzerland and Rubis Terminal Petrol are also entitled to seniority bonuses related to the awarding of long-service medals, which fall into the category of long-term benefits, as defined in IAS 19. The amount of the bonuses likely to be awarded has been valued via the method used to value post-employment defined-benefit plans, except for actuarial gains and losses recognized in the income statement for the period during which they are incurred. Employees of SARA are entitled to progressive pre-retirement plans, early retirement, and retirement leave. The total amount of the commitments corresponding to pre-retirement allowances and early retirement has been assessed using the method described above.

The employee benefits granted by the Group are broken down by type in the table below.

12/31/2016

12/31/2017

(in thousands of euros)

Provision for pensions

33,893

34,598 11,084

Provision for health and mutual insurance coverage

9,562 2,302

Provision for long-service awards

2,020

TOTAL

45,757

47,702

The change in provisions for employee benefits breaks down as follows:

2016

2017

(in thousands of euros)

PROVISIONS AS OF JANUARY 1

47,702

44,227

Newly consolidated/de-consolidated companies

943

4,188 2,174 2,950

Interest expense for the period Service cost for the period

1,844 5,359

2017 Registration Document I RUBIS 216

Expected return on fund assets for the period

(1,760) (7,055)

(5,425) (4,675)

Benefits paid for the period

Actuarial losses/(gains) and limitation of assets

139

3,497

Foreign exchange differences PROVISIONS AS OF DECEMBER 31

(1,415) 45,757

765

47,702