Note 12: Non-Current Provisions
December 31, | ||||||||||||
2015 | 2016 | 2017 | ||||||||||
(thousands of euros) | ||||||||||||
Pension retirement obligations |
490 | 853 | 1,260 | |||||||||
|
|
|
|
|
|
|||||||
Total |
490 | 853 | 1,260 | |||||||||
|
|
|
|
|
|
Commitments for Compensation Payable to Employees Upon Their Retirement
thousands of Euros |
||||
As of January 1, 2015 |
(531 | ) | ||
Costs of services rendered (operating expense) |
(116 | ) | ||
Interest expense (finance expense) |
(9 | ) | ||
Benefit paid |
||||
Actuarial gains |
166 | |||
|
|
|||
As of December 31, 2015 |
(490 | ) | ||
|
|
|||
Costs of services rendered (operating expense) |
(104 | ) | ||
Interest expense (finance expense) |
(10 | ) | ||
Benefit paid |
— | |||
Actuarial losses |
(249 | ) | ||
|
|
|||
As of December 31, 2016 |
(853 | ) | ||
|
|
|||
Costs of services rendered (operating expense) |
(219 | ) | ||
Interest expense (finance expense) |
(11 | ) | ||
Benefit paid |
— | |||
Actuarial losses |
(177 | ) | ||
|
|
|||
As of December 31, 2017 |
(1,260 | ) | ||
|
|
As part of the estimation of the retirement commitments, the following assumptions were used for all categories of employees:
December 31, | ||||||||||||
2015 | 2016 | 2017 | ||||||||||
% social security contributions |
50.0 | % | 50.0 | % | 50.0 | % | ||||||
Salary increases |
2.0 | % | 2.0 | % | 2.0 | % | ||||||
Discount rate |
2.08 | % | 1.31 | % | 1.30 | % |
Assumptions for the years ended December 31, 2015 and 2016:
• | Retirement age: 65 years old; |
• | Terms of retirement: voluntary retirement; |
• | Life table: INSEE 2010; |
• | Collective agreement: Convention Collective Nationale de l’Industrie Pharmaceutique (National Collective Agreement in the Pharmaceutical Industry); |
• | Turn-over of the personnel declining with age. |
Assumptions for the years ended December 31, 2017:
• | Retirement age: 65 years old; |
• | Terms of retirement: voluntary retirement; |
• | Life table: TGH05-TGF05; |
• | Collective agreement: Convention Collective Nationale de l’Industrie Pharmaceutique (National Collective Agreement in the Pharmaceutical Industry); |
• | Turn-over of the personnel declining with age. |
The discount rates come from the corporate AA zero coupon yield curve.
No employee has retired during the last three fiscal years presented.