+1 - Solvay

The table below shows the evolution of writedowns on trade and financial receivables and other non-current assets.
EUR Million 2006 2007
At 1 January -12 -20
Net change -8 3
At 31 December -20 -17
The management of credit risk is commented on in the “Risk Management” section (page 106).
(28) Provisions
EUR Million
Employee
benefits
Health,
safety and
environment
Litigation Other Total
At 31 December 2006 1 286 422 491 287 2 486
Additions* 175 24 20 49 268
Reversals -11 -2 -10 -10 -33
Uses -252 -22 -4 -84 -362
Currency translation differences -16 -5 -24 -8 -53
Acquisitions and changes
in consolidation scope
1 0 0 3 4
Disposals 0 0 0 0 0
Other 4 0 0 0 4
At 31 December 2007 1 187 417 473 237 2 314
Of which short-term provisions 68 40 20 101 229
* Of which interest cost 36 6
In total, provisions reduced by EUR 172 million (-7 %).
This evolution reflects principally 3 factors:
– reduction of EUR 139 million following the payment of termination benefits to persons leaving the Group, mainly
under the restructuring plans for the Pharmaceuticals Sector (EUR 103 million), partly offset by new allocations;
– EUR 50 million reduction in the provision for payment of a supplementary price to the former Laboratoires Fournier
shareholders linked to the absence of generics on the market in 2007;
– the weakness of the dollar against the euro at the end of 2007 produced negative currency translation differences
of EUR 53 million.
Provisions for post-employment benefits
Personnel expenses amounted to EUR 2 234 million in 2007 (EUR 2 136 million in 2006 – restated figure).
Provisions for employee benefits were EUR 1 187 million in 2007 (EUR 1 286 million in 2006).
These provisions have been set up primarily to cover post-employment benefits granted by most Group companies
in line, either with local rules and customs, or with established practices which generate constructive obligations.
Provisions for post-employment benefits amounted to EUR 956 million in 2007 (EUR 988 million in 2006) before
deducting the EUR 73 million capitalized (2006: EUR 56 million) pension asset.
These provisions are set up on the basis of the IFRS accounting principles defined in item 5 of the present report
and reflect the estimated compensation at the time of retirement.
Financial
Solvay Global Annual Report 2007
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