Pharmaceuticals Sector - Solvay

82
Solvay Global Annual Report 2005
(29) Provisions
EUR million Employee
benefi ts
Health,
safety and
environment
Litigation Other Total
At January 1, 2005 1 201 420 129 199 1 949
Additions* 208 21 408 59 696
Reversals -63 -4 -18 -22 -107
Uses -155 -19 -47 -34 -255
Currency translation differences 22 8 13 10 53
Acquisitions and changes in
consolidation scope
13 1 46 110 170
Disposals -2 -2
Others 15 -1 1 15
At December 31, 2005 1 239 427 530 323 2 519
Of which short-term provisions 65 39 38 67 209
* Of which interest cost 45 7 52
Provisions for post-employment benefi ts
Provisions for employee benefi ts were EUR 1 239 million in 2005 (EUR 1 201 million in 2004). These provisions have
been set up primarily to cover post-employment benefi ts granted by most Group companies in line with local rules
and customs.
Provisions for post-employment benefi ts amounted to EUR 1 009 million in 2005 (EUR 1 010 million in 2004) before
deducting the EUR 53 million capitalized (2004: EUR 22 million) pension asset. These provisions are set up on the
basis of the IFRS valuation rules defi ned in item 5 of the present report and refl ect the estimated compensation at
the time of retirement.
The balance consists of provisions for termination benefi ts (EUR 171 million, EUR 134 million in 2004), provisions
for other long-term benefi ts (EUR 48 million, EUR 47 million in 2004) and provisions for benefi ts not valued in
accordance with IAS 19 (EUR 11 million, 10 million in 2004).
The largest pension plans are in Belgium, France, Germany, the Netherlands, the United Kingdom and the
United States. Certain companies provide post-employment health or life insurance cover to their employees and
related benefi ciaries. This cover is either fi nanced under insurance contracts or is covered by provisions for postemployment
benefi ts.
Total Group post-employment benefi t obligations by country
Netherlands
in% at end
2005
24%
Germany 23%
Belgium 18%
USA 17%
UK 7%
France 6%
Other countries 5%