SECTION 1 -

New Services: Pro forma Financial Statements and Notes
December, 31, 2009
Net provision expense ‐ corresponding to increases in provisions less reversals of utilized and unutilized provisions set up in prior
periods ‐ is reported under the following income statement captions:
(in € millions)
Dec.
2007
EBIT (1) (2) 0
Net financial expense -
Dec.
2008
Dec.
2009
0 0
Restructuring costs and impairment losses 10 (4) 41
Income tax expense (13) (22) -
TOTAL (4) (28) 41
Provisions for pensions and other post‐employment benefits
A. Description of the plans
Group employees receive various short‐term benefits (paid vacation, paid sick leave and profit‐shares) and long‐term benefits
(long‐service awards, long‐term disability benefits, loyalty bonuses and seniority bonuses), as well as various post‐employment
benefits provided under defined contribution and defined benefit plans (length‐of‐service awards payable on retirement, pension
benefits).
Short‐term benefit obligations are recognized in the balance sheets of the Group entities concerned.
Post‐employment benefits are provided under either defined contribution or defined benefit plans.
Defined contribution plans
Obligations under these plans are funded by periodic contributions to external organizations that are responsible for the
administrative and financial management of the plans. The external organization is responsible for all benefit payments and the
Group has no liability beyond the payment of contributions. Examples of defined contribution plans include the government‐
sponsored basic pension and supplementary pension (ARRCO/AGIRC) schemes in France and defined contribution pension
schemes in other countries.
Contributions to these plans are recognized in the period to which they relate.
Defined benefit plans
Benefit obligations under the Group's defined benefit plans are generally funded by plan assets, with any unfunded portion
recognized as a liability at the balance sheet date.
The defined benefit obligation (DBO) is determined by the projected unit credit method, based on actuarial assumptions
concerning future salary levels, retirement age, mortality rates, staff turnover rates and the discount rate. These assumptions
take into account the macro‐economic situation and other specific circumstances in each host country.
Actuarial gains and losses arising from changes in actuarial assumptions and experience adjustments are recognized immediately
in equity, in accordance with Group accounting policy.
At New Services, the main post‐employment defined benefit plans concern:
- Length‐of‐service awards in France:
o These are lump‐sum payments made to employees on retirement. They are determined by reference to the
employee's years of service and final salary.
o The calculation is based on parameters defined by Corporate Finance and Human Resources in November of each
year.
o The related obligation is covered by a provision.
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