Financial Statements - Solvay

96
Solvay Global Annual Report 2008
Historical development of defi ned benefi t plans:
EUR Million 2005 2006 2007 2008
Defi ned benefi t obligation 2 471 2 491 2 355 2 232
Plan assets -1 232 -1 298 -1 341 -1 049
Defi cit / surplus (-) 1 239 1 193 1 013 1 183
Experience adjustments on plan liabilities not avail. -14 -12 6
Experience adjustments on plan assets not avail. -36 6 336
Of which historical development of post-employment medical plans:
EUR Million 2005 2006 2007 2008
Defi ned benefi t obligation 125 134 130 99
Experience adjustments on plan liabilities not avail. -3 2 0
Health, safety and environment (HSE) provisions
These provisions stand at EUR 433 million, compared with EUR 417 million at the end of 2007.
These are intended to cover the liabilities and charges of the following main areas:
- mines and drilling operations to the extent that legislation and/or operating permits in relation to quarries, mines and
drilling operations contain requirements to pay compensation to third parties. These provisions, based on local expert
advice, can be expected to be used over a 10-20 year horizon;
- provisions related to the cessation of mercury electrolysis activities: forecasted expenditure is staggered over time as
a function of the envisaged reutilization of the sites, national regulations on the management of contaminated soils and
the state of contamination of soils and groundwater. Most of these provisions can be expected to be used over
a 10-20 year time horizon;
- dikes, dump sites and land: the provisions relate mainly to soda plant dikes, old lime dikes and land and dump sites
linked to activities at certain industrial sites; these provisions have a horizon of 1 to 20 years;
- asbestos: an asbestos removal program is under way: provisions for asbestos removal work and occupational
diseases have a horizon of 1 to 15 years.
The estimated amounts are discounted as a function of the probable date of disbursement. As well as being updated
annually, provisions are adjusted every year to refl ect the increasing proximity of such disbursement.
Provisions for litigation
Provisions for litigation stand at EUR 441 million at the end of 2008 compared with EUR 473 million at the end of 2007.
The net reduction of EUR 32 million between 2007 and 2008 is due mainly to:
– net reduction of EUR 45 million (USD 67 million) of US and Canadian class actions with respect to alleged unfair
competition practices in the peroxides activities in the NAFTA region;
– increase of EUR 8 million due to the full consolidation of SolVin;
– reversal of 50 % of the peroxides fi ne for Solvay Solexis for EUR 15 million following an agreement with Edison.
The main provisions at the end of 2008 serve to cover:
– the fi nancial consequences of the EUR 193 million fi ne imposed by the European authorities for infringement
of competition rules in the peroxides area, against which the Solvay group has appealed, and in an ancillary manner
the remaining fi nancial exposure of litigations in process (class actions and individual suits) in the USA and of potential
customer recourse in Europe in the same area;