Provisions for liabilities and charges are set up to cover probable outflows for the benefit of third parties without any equivalent consideration being received by the Group in return. They mainly relate to restructuring costs, industrial, environmental and commercial risks relating to operations such as breach of contract, product returns, and employee-related risks.
These provisions are estimated on the basis of the most likely assumptions or by using statistical methods, depending on the nature of the risks.
Provisions for liabilities and charges are recorded either as Non-current liabilities or as Current liabilities, depending on their type. Provisions for liabilities or disputes which must be settled within 12 months of the closing date, and those linked to the normal operating cycle (such as product returns), are recorded as Current liabilities. Other provisions for liabilities and charges are recorded as Non-current liabilities.
| € millions | 31.12.2022 | 31.12.2021 | 31.12.2020 |
|---|---|---|---|
| Provisions for liabilities and charges | Provisions for liabilities and charges31.12.202267.7 | Provisions for liabilities and charges31.12.202163.8 | Provisions for liabilities and charges31.12.202056.8 |
| Non-current provisions(1) | Non-current provisions (1)31.12.202267.7 |
Non-current provisions (1)31.12.202163.8 |
Non-current provisions (1)31.12.202056.8 |
| Current provisions for liabilities and charges | Current provisions for liabilities and charges31.12.20221,205.6 | Current provisions for liabilities and charges31.12.20211,223.3 | Current provisions for liabilities and charges31.12.20201,224.8 |
| Provisions for restructuring | Provisions for restructuring 31.12.2022146.1 |
Provisions for restructuring 31.12.2021182.5 |
Provisions for restructuring 31.12.2020235.1 |
| Provisions for product returns | Provisions for product returns 31.12.2022395.3 |
Provisions for product returns 31.12.2021405.9 |
Provisions for product returns 31.12.2020352.4 |
| Other current provisions(1) | Other current provisions (1)31.12.2022664.2 |
Other current provisions (1)31.12.2021634.9 |
Other current provisions (1)31.12.2020637.3 |
| TOTAL | TOTAL31.12.20221,273.3 | TOTAL31.12.20211,287.1 | TOTAL31.12.20201,281.6 |
(1) This item notably includes provisions for tax risks and litigation excluding corporate income tax, industrial, environmental and commercial risks relating to operations (breach of contract), personnel costs, investments accounted for under the equity method when the Group’s share in the net asset is negative, as well as risks relating to nvestigations carried out by competition authorities of which France for €189.5 million (note 12.2.2.a and b).
The change in this caption in 2022 can be analysed as follows:
| € millions | 31.12.2020 | 31.12.2021 | Charges(2) | Reversals (used)(2) | Reversals (not used)(2) | Other(1) | 31.12.2022 |
|---|---|---|---|---|---|---|---|
| Provisions for restructuring | Provisions for restructuring 31.12.2020235.1 |
Provisions for restructuring 31.12.2021182.5 |
Provisions for restructuring Charges(2)81.0 |
Provisions for restructuring Reversals (used)(2)-92.9 |
Provisions for restructuring Reversals (not used)(2)-32.3 |
Provisions for restructuring Other(1)7.8 |
Provisions for restructuring 31.12.2022146.1 |
| Provisions for product returns | Provisions for product returns 31.12.2020352.4 |
Provisions for product returns 31.12.2021405.9 |
Provisions for product returns Charges(2)468.5 |
Provisions for product returns Reversals (used)(2)-408.8 |
Provisions for product returns Reversals (not used)(2)-81.5 |
Provisions for product returns Other(1)11.1 |
Provisions for product returns 31.12.2022395.3 |
| Other provisions for liabilities and charges | Other provisions for liabilities and charges 31.12.2020694.1 |
Other provisions for liabilities and charges 31.12.2021698.7 |
Other provisions for liabilities and charges Charges(2)233.7 |
Other provisions for liabilities and charges Reversals (used)(2)-125.9 |
Other provisions for liabilities and charges Reversals (not used)(2)-86.1 |
Other provisions for liabilities and charges Other(1)11.6 |
Other provisions for liabilities and charges 31.12.2022732.0 |
| TOTAL | TOTAL31.12.20201,281.6 | TOTAL31.12.20211,287.1 | TOTALCharges(2)783.2 | TOTALReversals (used)(2)-627.6 | TOTALReversals (not used)(2)-199.8 | TOTALOther(1)30.5 | TOTAL31.12.20221,273.3 |
| € millions | Charges | Reversals (used) | Reversals (not used) |
|---|---|---|---|
| Operating profit | Operating profit Charges681.1 |
Operating profit Reversals (used)-506.6 |
Operating profit Reversals (not used)-171.0 |
| Other income and expenses | Other income and expenses Charges102.1 |
Other income and expenses Reversals (used)-121.0 |
Other income and expenses Reversals (not used)-28.8 |
| Net financial income | Net financial income Charges— |
Net financial income Reversals (used)— |
Net financial income Reversals (not used)— |
