|
(in millions of euros) |
2017 | 2016 | 2015 | |
|
Expense from universal service |
(43) | (47) | (30) | |
|
Allowances and losses on trade receivables - telecom activities |
(251) | (275) | (279) | |
|
Litigations |
(278) | (86) | (506) | |
|
Cost of bank credit risk |
(6) | (2) |
- |
|
|
Other expense |
(152) | (133) | (254) | |
|
Total |
(730) | (543) | (1,069) | |
Impairment and losses on trade receivables of telecom activities are detailed in Note 4.3.
The cost of credit risk exclusively applies to Orange Bank and includes impairment charges and reversals on fixed-income securities, loans and receivables to customers as well as impairment charges and reversals relating to guarantee commitments given, losses on receivables and recovery of amortized debts.
Litigation-related expenses that were the subject of provisions or immediate payments in 2017 mainly include the reassessment of the risk related to various disputes and in 2015 corresponded mainly to the fine of 350 million euros relating to a dispute concerning competition on the Enterprise market, as well as the effects of the asset portfolio restructuring.
|
(in millions of euros) |
2017 | 2016 | 2015 |
|
Provision for litigations in the opening balance |
537 | 528 | 491 |
|
Additions with impact on income statement |
354 | 24 | 478 |
|
Reversals with impact on income statement |
(34) | (7) | (56) |
|
Discounting with impact on income statement |
2 | 4 | 4 |
|
Utilizations without impact on income statement(1) |
(37) | (13) | (402) |
|
Changes in consolidation scope |
- |
(6) | 1 |
|
Translation adjustment |
7 | (5) |
- |
|
Reclassifications and other items |
(50) | 12 | 12 |
|
Reclassification to assets held for sale |
- |
- |
- |
|
Provision for litigations in the closing balance |
779 | 537 | 528 |
|
o/w non-current provision |
53 | 69 | 85 |
|
o/w current provision |
726 | 468 | 443 |
|
(1) Included, in 2015, amend for the Enterprise Market litigation for 350 million euros reclassified in debts to be paid, and paid in 2016. |
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Payments related to some litigation are directly recorded in other operating expenses.
The Group’s significant litigations are described in Note 16.
|
Litigation In the ordinary course of business, the Group is involved in a number of legal and arbitration proceedings and administrative actions described in Note 16. The costs which may result from these proceedings are accrued at the reporting date when the Group has a present obligation towards a third party resulting from a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of that liability can be quantified or estimated within a reasonable range. The amount of provision recorded is based on a case-by-case assessment of the risk level, and events arising during the course of legal proceedings may require a reassessment of this risk. Where appropriate, litigation cases may be analyzed as contingent liabilities, which correspond to: ■ probable obligations arising from past events that are not recognized because their existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the Company’s control; or ■ present obligations arising from past events that are not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or because the amount of the obligation cannot be measured with sufficient reliability. |