VINCI - 2005 annual report

24. PROVISIONS
During the period, changes in provisions reported under balance sheet liabilities were as follows:
CONSOLIDATED FINANCIAL STATEMENTS
(in € millions) 31/12/2004 Expenses Translation Used Other Changes in Change in 31/12/2005
differences reversals consolidation the part at
not used scope and less than
miscellaneous one year of
non-current
provisions
Non-current provisions
Financial liabilities 47.9 19.3 0.6 (13.6) (7.2) (5.8) 41.2
Major repairs 45.2 21.1 0.8 (20.0) 0.0 1.4 48.5
Other non-current liabilities 329.9 109.9 0.5 (84.5) (24.1) (15.5) 316.2
Discounting of non-current provisions (10.2) 2.2 (0.0) 1.7 0.0 1.0 (5.3)
Reclassification of the part at less than
one year of non-current provisions (247.4) (257.4) (257.4)
Total 165.4 152.5 1.9 (116.4) (31.2) (18.9) (257.4) 143.3
Current provisions
After-sales service 253.8 82.5 1.0 (52.2) (8.0) 1.8 278.9
Losses on completion and construction
project liabilities 320.4 250.0 2.3 (219.9) (21.8) 7.4 338.4
Litigation 297.8 87.4 0.8 (54.4) (18.9) (15.1) 297.6
Restructuring 65.1 16.5 0.3 (31.4) (2.9) (5.8) 41.8
Other current liabilities 215.6 93.7 1.9 (74.9) (8.5) 25.5 253.3
Discounting of current provisions (17.2) (2.4) (0.1) (0.6) 0.0 (1.5) (21.9)
Reclassification of the part at less
than one year of non-current provisions 247.4 257.4 257.4
Total 1,382.8 527.6 6.2 (433.4) (60.0) 12.2 257.4 1,445.4
Provisions (current and non-current) 1,548.2 680.1 8.1 (549.9) (91.2) (6.7) 0.0 1,588.7
The types of provisions are defined in Note B.3.1 “Measurement rules and
methods”.
Current provisions, which are directly linked to each business line’s own
operating cycle, amount to €1,445 million (including the part at less than
one year of non-current provisions), against €1,383 million at 31 December
2004. The 5.2% increase year-on-year relates mainly to provisions and
disputes in respect of construction contracts.
Non-current provisions (those not directly linked to the operating cycle)
include in particular provisions for disputes. They amount to €143 million
at 31 December 2005 (for the part exceeding one year) against €165
million at 31 December 2004.
Provisions for major repairs are made in respect of contractual obligations
to return assets operated under concessions to good condition. These are
calculated at the end of each period on the basis of a work programme
covering several years, which is reviewed annually to take account of
planned expenditure, and concern principally Cofiroute.
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