APC 2015 Annual Report Download - page 230

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC228
CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER31,2015
5NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Dec.31, 2015 Dec.31, 2014
3. Funded status
Projected benefi t obligation (480) (512)
Deferred items:
Unrecognized past service cost --
PROVISION RECOGNIZED IN BALANCE SHEET (480) (512)
Note23 Provisions
Economic
risks Customer risks Products risks Environmental risks Restructuring Other risks Provisions
Dec.31, 2013* 668 98 430 61 135 318 1,710
Long-term portion 439 43 131 45 9 160 827
Additions 65 20 110 10 83 133 421
Discounting effect - - - 2 - - 2
Utilizations (38) (15) (102) (20) (94) (153) (422)
Reversals of unused
provisions (52) (5) (37) (7) (8) (20) (129)
Translation adjustments 12 2 10 29 2 39 94
Changes in the scope
ofconsolidation and other 56 (13) 35 233 9 230 550
Dec.31, 2014 711 87 446 308 127 547 2,226
Long-term portion 450 60 149 283 19 288 1,249
Additions 171 11 132 9 133 96 552
Discounting effect - - - - - - -
Utilizations (65) (26) (111) (17) (97) (144) (460)
Reversals of unused
provisions (94) (1) (29) (3) (19) (19) (165)
Translation adjustments 23 11 15 29 1 42 121
Changes in the scope
ofconsolidation and
other 104 47 6 22 (2) 108 285
Dec.31, 2015 850 129 459 348 143 630 2,559
Long-term portion 591 106 175 335 16 436 1,659
* The 2013 fi gures were restated from the change in consolidation method disclosed in note1.
(a) Economic risks
These provisions cover, in particular, tax risks arising from audits
performed by local tax authorities and fi nancial risks arising primarily
on guarantees given to third parties in relation to certain assets
andliabilities.
(b) Customer risks
These provisions are primarily established to cover risks arising from
products sold to third parties. This risk consists of claims based on
alleged product defects and product liability.
Provisions for customer risks also integrate the provisions for losses
at completion for some of long term contracts, for EUR129million.
(c) Product risks
These provisions comprise:
•statistical provisions for warranties: the Group funds provisions
on a statistical basis for the residual cost of Schneider Electric
product warranties not covered by insurance;
•provisions for disputes over defective products;
•provisions to cover disputes related to recalls of clearly identifi ed
products.
(d) Environmental risks
These provisions are primarily funded to cover cleanup costs.