registration document France Telecom 2009 - Orange.com

financial information concerning the issuer’s assets and liabilities, financial position and profits and losses
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS OF FRANCE TELECOM S.A.
4.3 Operating provision reversals
(in millions of euros)
Year ended
Dec. 31, 2009 Dec. 31, 2008
Reversal of provisions for inventories 12 8
Reversal of provisions for trade receivables 5 24
Reversal of provisions for early retirement (civil servant employees) 442 611
Reversal of provisions for early retirement (contractual) 42 50
Other reversals 274 174
TOTAL 775 867
4.4 Taxes other than income tax
(in millions of euros)
Year ended
Dec. 31, 2009 Dec. 31, 2008
Business tax (679) (664)
Other (304) (201)
TOTAL (983) (865)
4.5 Labour expenses
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(in millions of euros)
Year ended
Dec. 31, 2009 Dec. 31, 2008
Average number of employees (1) (2) (full-time equivalent) (unaudited) 90,492 93,333
Wages and other labour expenses (6,305) (6,569)
o/w
■ Wages and salaries (4,054) (4,297)
■ Social security charges (3) (1,749) (1,818)
■ Other labour expenses (502) (454)
Remuneration in shares (free share award program) (4) (21)
TOTAL (6,326) (6,569)
(1) Of whom 71% were French civil service staff, from 72% at December 31, 2008.
(2) Broken down as follows:
- senior management and management 39% versus 38% at December 31, 2008;
- employees, technicians and supervisors 61% versus 62% at December 31, 2008.
(3) The charge for defi ned contribution pension post-retirement benefi t programs was 868 million euros and comprised mainly the fl at-rate contribution to the pension plan for civil servant
employees of France Telecom S.A.
(4) In accordance with CRC regulation 2008-15 of December 4, 2008, the impact on 2009 accounts of free share award programs (including provisions and reversals) is recognized as a
labour expense.
The employer’s fl at-rate contribution to the pension plan for
civil servant employees was increased from 36.20% in 2008 to
36.65% in 2009.
Labour expenses shown in the income statement include
payments relating to the early retirement plan, which are
covered through a reversal of operating provisions (484 million
euros at December 31, 2009 including 442 million euros for
civil servants, versus 661 million euros at December 31, 2008
including 611 million euros for civil servants).
Other labour expenses mainly include:
■ payments to the Works Committee for an amount of (113)
million euros ((101) million euros at December 31, 2008);
■ a provision for employee incentive bonuses for an amount of
(188) million euros ((157) million euros at December 31, 2008).
The incentive bonus agreement for 2009 to 2011 allows for
the payment of bonuses based on the achievement of annual
operating performance indicators in the fi xed and multi-service
(67%) and mobile (33%) segments. However, payments made
when the performance indicator is exceeded are conditional on
achieving target levels for the Service Quality Indicator.
2009 REGISTRATION DOCUMENT / FRANCE TELECOM
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