Airbus 2015 Annual Report Download - page 223

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 41 l
Notes to the IFRSConsolidatedFinancialStatements
2.
2.5 Operational Assets andLiabilities
22. Provisions, Contingent Assets andContingentLiabilities
Provisions — The determination of provisions, for example for contract losses, warranty costs, restructuring measures and legal
proceedings is based on best available estimates.
In general, as the contractual and technical parameters to be considered for provisions in the aerospace sector are rather complex,
uncertainty exists with regard to the timing and amounts of expenses to be taken into account.
The majority of the Company’s other provisions are generally expected to result in cash outflows during the next 1 to 12years.
(In € million) 2015 2014
Provision for pensions (Note29) 7,615 8,250
Other provisions (Note22) 7,4 6 5 7,862
Total 15,080 16,112
Thereof non-current portion 9,871 10,400
Thereof current portion 5,209 5,712
31December
Movements in other provisions during the year were as follows:
(In € million)
Balance at
1January
2015 Exchange differences
Increase
from
passage
of time Additions
Reclassification/
Change in
consolidated
group Used Released
Balance at
31December
2015
Contract losses 900 1 0 630 (554) (303) (318) 356
Outstanding costs 2,369 32 01,553 (14) (1,330) (179) 2,431
sks(1) Aircraft financing ri 687 106 42 22 0 (206) (33) 618
Obligation from services
and maintenance
agreements 598 28 11 134 0(171) 0600
Warranties 438 2 2 77 (7) (95) (32) 385
Personnel-related
provisions(2) 1,255 2 5 550 (42) (483) (142) 1,145
Litigation and claims(3) 144 5 0 87 2(63) (45) 130
Asset retirement 130 0 2 1 28 0 0 161
Other risks and charges 1,341 16 1731 (168) (151) (131) 1,639
Total 7, 862 192 63 3,785 (755) (2,802) (880) 7,465
(1) See Note25 “Sales financing transactions”.
(2) See Note28 “Personnel-related provisions”.
(3) See Note36 “Litigation and claims”.
In 2015, provision for contract losses mainly includes A350XWB programme (€ 136million) and several Airbus Defence and Space
programmes (€ 133million). The additions to the contract losses provision include the net charge of € 290million for the A400M
programme before netting with work in progress. “Reclassification/Change in consolidated Group” mainly relates to offsetting
of A400M programme contract provisions to respective inventories (see Note10 “Revenues, costs of sales and gross margin”).
The majority of the addition to provisions for outstanding costs relates to Airbus Defence and Space (€ 1,008million) and corresponds
among others to the Boarder Security business, to the Eurofighter programme and to diverse tasks to complete on construction
contracts, as well as to Airbus Helicopters (€ 490million), mainly for the NH90 and Tiger programmes.
Contingent assets and contingent liabilities — AirbusGroup
is exposed to technical and commercial contingent obligations
due to the nature of its businesses. To mitigate this exposure,
AirbusGroup has subscribed a Global Aviation Insurance
Programme (“GAP”). When the Company has obtained insurance
coverage from third parties for these risks, any reimbursement
is recognised separately only when it is virtually certain to
be received. Information required under IAS37 “Provisions,
contingent liabilities and contingent assets” is not disclosed if the
Group concludes that disclosure can be expected to prejudice
Financial Statements 2015
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Annual Report 2015 Financial Statements 2015
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