19) Provisions and other non-current liabilities

In 2014, litigation reserves mainly include a provision of $1,040 million of which $861 million is in the Upstream, notably in Angola and Nigeria.

In 2014, other non-current provisions mainly include:

  • Provisions related to sales of activities in the Refining & Chemicals and Marketing & Services segments for $241 million as of December 31, 2014;
  • Provisions for financial risks related to non-consolidated and equity consolidated affiliates for $228 million as of December 31, 2014; and
  • The contingency reserve regarding guarantees granted in relation to solar panels of SunPower for $155 million as of December 31, 2014.

In 2014, other non-current liabilities mainly include debts (whose maturity is more than one year) related to fixed assets acquisitions. This heading is mainly composed of a $32 million debt related to the acquisition of an interest in the liquids-rich area of the Utica shale play.

In 2013, litigation reserves mainly included a provision of $862 million of which $698 million is in the Upstream, notably in Angola and Nigeria. 

In 2013, other non-current provisions mainly included:

  • Provisions related to restructuring activities in the Refining & Chemicals and Marketing & Services segments for $275 million as of December 31, 2013;
  • Provisions for financial risks related to non-consolidated and equity consolidated affiliates for $238 million as of December 31, 2013; and
  • The contingency reserve regarding guarantees granted in relation to solar panels of SunPower for $149 million as of December 31, 2013. 

In 2013, other non-current liabilities mainly included debts (whose maturity is more than one year) related to fixed assets acquisitions. This heading was mainly composed of a $127 million debt related to the acquisition of an interest in the liquids-rich area of the Utica shale play.

In 2012, litigation reserves mainly included a provision of $398 million in relation to a transaction in progress with the United States Securities and Exchange Commission (SEC) and the Department of Justice (DoJ) in the United States (see Note 32) "Other risks and contingent liabilities" to the Consolidated Financial Statements). It also included a provision covering risks concerning antitrust investigations related to Arkema for an amount of $22 million as of December 31, 2012.

In 2012, other non-current provisions mainly included:

  • Provisions related to restructuring activities in the Refining & Chemicals and Marketing & Services segments for $259 million as of December 31, 2012;
  • Provisions for financial risks related to non-consolidated and equity consolidated affiliates for $193 million as of December 31, 2012; and
  • The contingency reserve regarding to guarantees granted in relation to solar panels of SunPower for $117 million as of December 31, 2012.

In 2012, other non-current liabilities mainly included debts (whose maturity is more than one year) related to fixed assets acquisitions. This heading was mainly composed of a $973 million debt related to the acquisition of an interest in the liquids-rich area of the Utica shale play.

Other risks and commitments that give rise to contingent liabilities are described in  Note 32) "Other risks and contingent liabilities" to the Consolidated Financial Statements.

Changes in provisions and other non-current liabilities

Changes in provisions and other non-current liabilities are as follows:

Table : Changes in provisions and other non-current liabilities

Allowances

In 2014, allowances for the period ($1,463 million) mainly includes:

  • Asset retirement obligations for $543 million (accretion);
  • Environmental contingencies for $69 million in the Marketing & Services and Refining & Chemicals segments;
  • Provisions related to restructuring of activities for $38 million. 

In 2013, allowances for the period ($1,738 million) mainly included:

  • Asset retirement obligations for $584 million (accretion);
  • Environmental contingencies for $475 million in the Marketing & Services and Refining & Chemicals segments, of which $361 million is related to the Carling site in France;
  • Provisions related to restructuring of activities for $155 million.

In 2012, allowances of the period ($1,564 million) mainly included:

  • Asset retirement obligations for $520 million (accretion);
  • Environmental contingencies for $95 million in the Marketing & Services and Refining & Chemicals segments; 
  • Provisions related to restructuring of activities for $95 million. A provision of $398 million in relation to a transaction in progress with the United States Securities and Exchange Commission (SEC) and the Department of Justice (DoJ) in the United States (see Note 32) "Other risks and contingent liabilities" to the Consolidated Financial Statements). 

Reversals

In 2014, reversals of the period ($1,029 million) are mainly related to the following incurred expenses:

  • Provisions for asset retirement obligations for $440 million;
  • Environmental contingencies written back for $98 million;
  • Provisions for restructuring and social plans written back for $80 million.

In 2013, reversals of the period ($1,347 million) were mainly related to the following incurred expenses:

  • A provision of $398 million in relation to a transaction in progress with the United States Securities and Exchange Commission (SEC) and the Department of Justice (DoJ) in the United States (see Note 32) "Other risks and contingent liabilities" to the Consolidated Financial Statements);
  • Provisions for asset retirement obligations for $381 million;
  • Environmental contingencies written back for $99 million;
  • Provisions for restructuring and social plans written back for $100 million.

In 2012, reversals of the period ($1,140 million) were mainly related to the following incurred expenses:

  • Provisions for asset retirement obligations for $403 million;
  • Environmental contingencies written back for $140 million;
  • The contingency reserve related to the Buncefield depot explosion (civil liability), written back for $104 million; and
  • Provisions for restructuring and social plans written back for $142 million.

Changes in the asset retirement obligation

Changes in the asset retirement obligation are as follows:

Table : Changes in the asset retirement obligation

In 2014 the heading “Revision in estimates” includes additional provisions in respect of asset restitution costs.

In 2013 the heading “Revision in estimates” included additional provisions in respect of asset restitution costs and the impact of the revision of the discount rate.

In 2012 the heading “Other” included a $495 million increase in provisions to cover the costs of abandonment of wells in the Elgin-Franklin field (Great Britain) that will not return to production, and a $235 million increase in provisions for the restoration of the Lacq site in France on which activities are going to be stopped. These amounts are partially offset by sales of assets notably in Great Britain and Norway that have been reclassified in accordance with IFRS 5 “Non-current assets held for sale and discontinued operations”.