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Provisions, income tax liabilities and other liabilities (Tables)
12 Months Ended
Dec. 31, 2022
Subclassifications of assets, liabilities and equities [abstract]  
Summary of Non Current Provisions and Other Non-current Liabilities
The line item Non current provisions and other non-current liabilities comprises the following:
(€ million)202220212020
(a)
Provisions5,822 6,430 6,998 
Other non-current liabilities(b)
519 291 317 
Total6,341 6,721 7,315 
(a) Includes the impact of the April 2021 IFRIC agenda decision on the allocation of benefits to service periods (IAS 19, Employee Benefits), as described in Note A.2.1. to the consolidated financial statements for the year ended December 31, 2021.
(b) Includes derivative financial instruments: €232 million as of December 31, 2022, €6 million as of December 31, 2021, €92 million as of December 31, 2020.
Summary of Movements in Non-current Provisions
The table below sets forth movements in non-current provisions for the reporting periods presented:
(€ million)Provisions for
pensions and
other post-employment
benefits
(D.19.1.)
(b)
Provisions
for other
long-term
benefits
Restructuring
provisions
(D.19.2.)
Other
provisions
(D.19.3.)
Total
Balance at January 1, 20203,599 855 600 2,071 7,125 
Changes in scope of consolidation(3)— — 
Increases in provisions256 
(a)
169 688 369 1,482 
Provisions utilized(566)
(a)
(109)(5)(113)(793)
Reversals of unutilized provisions(226)
(a)
(5)(42)(245)(518)
Transfers12 — (369)(64)(421)
Net interest related to employee benefits, and unwinding of discount55 66 
Currency translation differences(117)(33)(5)(59)(214)
Actuarial gains and losses on defined-benefit plans
266 — — — 266 
Balance at December 31, 20203,276 879 868 1,975 6,998 
Changes in scope of consolidation(2)— — 37 35 
Increases in provisions247 
(a)
156 67 261 731 
Provisions utilized(222)
(a)
(122)(8)(107)(459)
Reversals of unutilized provisions(13)
(a)
(7)(35)(145)(200)
Transfers(13)(3)(370)(39)(425)
Net interest related to employee benefits, and unwinding of discount42 — 53 
Currency translation differences80 30 33 145 
Actuarial gains and losses on defined-benefit plans
(448)— — — (448)
Balance at December 31, 20212,947 935 524 2,024 6,430 
Changes in scope of consolidation(96)(28)— (76)(200)
Increases in provisions193 
(a)
40 521 531 1,285 
Provisions utilized(275)
(a)
(119)(12)(122)(528)
Reversals of unutilized provisions(66)
(a)
(20)(11)(191)(288)
Transfers10 (265)(23)(274)
Net interest related to employee benefits, and unwinding of discount43 12 64 
Currency translation differences63 28 (1)23 113 
Actuarial gains and losses on defined-benefit plans
(780)— — — (780)
Balance at December 31, 20222,039 844 761 2,178 5,822 
(a) In the case of “Provisions for pensions and other post-employment benefits”, the “Increases in provisions” line corresponds to rights vesting in employees during the period, and past service cost; the “Provisions utilized” line corresponds to contributions paid into pension funds and to beneficiaries; and the “Reversals of unutilized provisions” line corresponds to plan curtailments, settlements and amendments.
(b) Includes the impact of the April 2021 IFRIC agenda decision on the allocation of benefits to service periods, as described in Note A.2.1. to the consolidated financial statements for the year ended December 31, 2021.
Summary of Financial and Demographic Assumptions
Those calculations were based on the following financial and demographic assumptions:
202220212020
FranceGermanyUSUKFranceGermanyUSUKFranceGermanyUSUK
Discount rate(a)/(b)
3.55% to 3.75%
3.55% to 3.75%
4.90%
4.75%
0.10% to 1.10%
0.10% to 1.10%
2.70%
1.90%
0.00%
or
0.55%
0.00%
or
0.55%
2.40%
1.35%
General inflation rate(c)
2.50%
2.50%
3.25%
1.95%
1.95%
3.30%
1.45%
1.45%
2.95%
Pension benefit
indexation
2.50%
2.50%
3.00%
1.95%
1.95%
3.15%
1.45%
1.45%
2.85%
Healthcare cost
inflation rate(d)
3.29%
to
6.56%
3.50%
to
4.50%
3.50% to 4.50%
Retirement age
62
to 67
63
55
to 70
60
to 65
62
to 67
62
55
to 70
60
to 65
62
to 67
62
55
to 70
60
to 65
Mortality table
TGH/
TGF
05
Heubeck
RT
2018 G
RP2012 Proj.
MP2021 White Collar
SAPS
S3
TGH/
TGF
05
Heubeck
RT
2018 G
RP2012 Proj.
MP2020 White Collar
SAPS
S3
TGH/
TGF
05
Heubeck
RT
2018 G
RP2012 Proj.
G. Scale
MP2019 White Collar
SAPS
S2
(a)    The discount rates used were based on market rates for high quality corporate bonds with a duration close to that of the expected benefit payments under the plans. The benchmarks used to determine discount rates were the same for all periods presented.
(b)    The rate depends on the duration of the plan (0 to 7 years, 7 to 10 years, or more than 10 years).
(c)    Inflation for the euro zone is determined using a multi-criterion method.
(d)    No post-employment healthcare benefits are provided in France since 2020, Germany and UK.
Summary of Weighted Average Duration of Obligation for Pensions and Other Long-term Benefits in Principal Countries
The table below shows the duration of Sanofi’s obligations in the principal countries:
202220212020
(years)FranceGermanyUSUKFranceGermanyUSUKFranceGermanyUSUK
Weighted average duration101211131216151713161618
Summary of Sensitivity for Pensions and Other Post-employment Benefits to Changes in Key Actuarial Assumptions
The table below shows the sensitivity of Sanofi’s obligations for pensions and other post-employment benefits to changes in key actuarial assumptions:
(€ million)Pensions and other post-employment benefits,
by principal country
Measurement of defined-benefit obligationChange in
assumption
FranceGermanyUSUK
Discount rate-0.50 %+72 +162 +75 +136 
General inflation rate+0.50 %+47 +306 — +75 
Pension benefit indexation+0.50 %+51 +200 — +53 
Healthcare cost inflation rate+0.50 %— +2 +6 — 
Mortality table+1 year+61 +51 +19 +74 
Reconciliation of Net Obligation in Respect of Sanofi's Pension and Other Post-Employment Benefit Plans
The table below reconciles the net obligation in respect of Sanofi’s pension and other post-employment benefit plans with the amounts recognized in the consolidated financial statements:
Pensions and other post-employment benefits
(€ million)202220212020
(a)
Measurement of the obligation:
Beginning of period12,175 12,456 13,094 
Current service cost193 227 221 
Interest cost206 148 192 
Actuarial losses/(gains) due to changes in demographic assumptions(219)(162)52 
Actuarial losses/(gains) due to changes in financial assumptions(3,006)(210)936 
Actuarial losses/(gains) due to experience adjustments177 (120)(26)
Plan amendments, curtailments or settlements not specified in the terms of the plan(b)
(229)(4)(938)
Plan settlements specified in the terms of the plan(84)(66)(75)
Benefits paid(463)(503)(545)
Changes in scope of consolidation and transfers(114)(8)(12)
Currency translation differences15 417 (443)
Obligation at end of period8,651 12,175 12,456 
Fair value of plan assets:
Beginning of period9,651 9,358 9,651 
Interest income on plan assets163 106 138 
Difference between actual return and interest income on plan assets(2,398)207 696 
Administration costs(6)(7)(14)
Plan settlements specified in the terms of the plan(84)(66)(75)
Plan settlements not specified in the terms of the plan(161)(9)(739)
Contributions from plan members
Employer’s contributions238 176 490 
Benefits paid(426)(458)(469)
Changes in scope of consolidation and transfers(32)(6)— 
Currency translation differences(52)344 (326)
Fair value of plan assets at end of period6,899 9,651 9,358 
Net amount shown in the balance sheet:
Net obligation1,752 2,524 3,098 
Effect of asset ceiling18 15 
Net amount shown in the balance sheet at end of period1,770 2,539 3,099 
Amounts recognized in the balance sheet:
Pre-funded obligations (see Note D.7.)(c)
(269)(408)(177)
Obligations provided for2,039 2,947 3,276 
Net amount recognized at end of period1,770 2,539 3,099 
Benefit cost for the period:
Current service cost193 227 221 
(Gains)/losses related to plan amendments, curtailments or settlements not specified in the terms of the plan(b)
(68)(199)
Net interest (income)/cost43 42 55 
Contributions from plan members(6)(6)(7)
Administration costs and taxes paid during the period14 
Expense recognized directly in profit or loss168 276 84 
Remeasurement of net defined-benefit (asset)/liability (actuarial gains and losses)(d)
(650)(685)266 
Expense/(gain) for the period(482)(409)350 
(a)    These amounts include the impact of applying the April 2021 IFRIC agenda decision on the attribution of benefits to periods of service.
(b)    For 2020, this line mainly comprises a reduction in post-employment benefit liabilities following the announcement of voluntary redundancy programs, primarily in Europe.
(c)    For 2022, this line includes €99 million of assets in the United Kingdom (versus €220 million for 2021); those amounts are not subject to any asset ceiling, in accordance with IFRIC 14.
(d)    Amounts recognized in Other comprehensive income (see Note D.15.7.).
Net Liability in Respect of Pension Plans and Other Post-employment Benefits by Geographical Region
The tables below show Sanofi’s net liability in respect of pension plans and other post-employment benefits by geographical region:
(€ million)Pensions and other post-employment benefits by geographical region
December 31, 2022FranceGermanyUSUKOtherTotal
Measurement of obligation1,324 2,730 1,546 2,080 971 8,651 
Fair value of plan assets697 2,317 860 2,175 850 6,899 
Effect of asset ceiling— — — — (18)(18)
Net amount shown in the balance sheet at end of period627 413 686 (95)139 1,770 
(€ million)Pensions and other post-employment benefits by geographical region
December 31, 2021FranceGermanyUSUKOtherTotal
Measurement of obligation1,657 3,576 2,099 3,414 1,429 12,175 
Fair value of plan assets838 2,808 1,127 3,629 1,249 9,651 
Effect of asset ceiling— — — — (15)(15)
Net amount shown in the balance sheet at end of period819 768 972 (215)195 2,539 
(€ million)Pensions and other post-employment benefits by geographical region
December 31, 2020FranceGermanyUSUKOtherTotal
Measurement of obligation1,778 3,580 2,091 3,561 1,446 12,456 
Fair value of plan assets906 2,661 1,077 3,536 1,178 9,358 
Effect of asset ceiling— — — — (1)(1)
Net amount shown in the balance sheet at end of period872 919 1,014 25 269 3,099 
Fair Value of Plans Assets relating to Pension Plans and Other Post-employment Plans
The table below shows the fair value of plan assets relating to Sanofi’s pension and other post-employment plans, split by asset category:
202220212020
Securities quoted in an active market84.4 %86.9 %94.8 %
Cash and cash equivalents0.7 %0.7 %3.5 %
Equity instruments21.7 %25.0 %24.8 %
Bonds and similar instruments52.4 %53.8 %59.9 %
Real estate4.0 %4.0 %3.4 %
Derivatives0.1 %— %— %
Commodities0.9 %1.0 %0.9 %
Other4.6 %2.4 %2.3 %
Other securities15.6 %13.1 %5.2 %
Hedge funds— %— %0.4 %
Insurance policies15.6 %13.1 %4.8 %
Total100.0 %100.0 %100.0 %
Service Cost for Pension and Other post-employment Benefit Plans, by Geographical Region
The tables below show the service cost for Sanofi’s pension and other post-employment benefit plans, by geographical region:
(€ million)Pensions and other post-employment benefits by geographical region
Service cost for 2022FranceGermanyUSUKOtherTotal
Current service cost61 44 50 — 38 193 
(Gains)/losses related to plan amendments, curtailments or settlements not specified in the terms of the plan(60)(6)(5)(68)
Net interest cost/(income) including administration costs and taxes paid during the period10 30 (7)49 
Contributions from plan members— — — — (6)(6)
Expense/(gain) recognized directly in profit or loss11 53 81 (13)36 168 
Remeasurement of net defined-benefit (asset)/ liability (actuarial gains and losses)(156)(204)(382)130 (38)(650)
Expense/(gain) for the period(145)(151)(301)117 (2)(482)
(€ million)Pensions and other post-employment benefits by geographical region
Service cost for 2021FranceGermanyUSUKOtherTotal
Current service cost72 47 57 — 51 227 
(Gains)/losses related to plan amendments, curtailments or settlements not specified in the terms of the plan— — — 
Net interest cost/(income) including administration costs and taxes paid during the period27 49 
Contributions from plan members— — — — (6)(6)
Expense/(gain) recognized directly in profit or loss80 52 84 6 54 276 
Remeasurement of net defined-benefit (asset)/ liability (actuarial gains and losses)(106)(113)(157)(236)(73)(685)
Expense/(gain) for the period(26)(61)(73)(230)(19)(409)
(€ million)Pensions and other post-employment benefits by geographical region
Service cost for 2020FranceGermanyUSUKOtherTotal
Current service cost65 49 51 — 56 221 
(Gains)/losses related to plan amendments, curtailments or settlements not specified in the terms of the plan(87)10 (123)— (199)
Net interest cost/(income) including administration costs and taxes paid during the period13 34 10 69 
Contributions from plan members— — — — (7)(7)
Expense/(gain) recognized directly in profit or loss(15)72 (38)5 60 84 
Remeasurement of net defined-benefit (asset)/liability (actuarial gains and losses)23 121 22 115 (15)266 
Expense/(gain) for the period8 193 (16)120 45 350 
Remeasurement of Net Defined-benefit (Asset)/Liability (Actuarial Gains and Losses)
An analysis of the “Remeasurement of net defined-benefit (asset)/liability (actuarial gains and losses)” line in the preceding tables is set forth below:
(€ million)202220212020
FranceGermanyUSUKFranceGermanyUSUKFranceGermanyUSUK
Actuarial gains/(losses) arising during the period
156 205 382 (131)106 113 156 237 (23)(121)(22)(115)
Comprising:
Gains/(losses)
on experience adjustments(a)
(120)(620)(287)(1,328)60 182 23 35 28 76 214 341 
Gains/(losses)
on demographic assumptions
— — 129 54 — — 51 125 — (42)(14)
Gains/(losses)
on financial assumptions
276 825 540 1,143 46 (69)82 77 (60)(197)(194)(442)
(a) Experience adjustments are mainly due to the effect of trends in the financial markets on plan assets.
Summary of Net Pre-tax Actuarial Loss
The net pre-tax actuarial loss (excluding investments accounted for using the equity method) recognized directly in equity is presented below:
(€ million)202220212020
Net pre-tax actuarial loss(2,090)(2,738)(3,423)
Summary of Present Value of Pension and Other Post Employement Benefits
The present value of Sanofi’s obligations in respect of pension and other post-employment benefit plans at the end of each reporting period is shown below:
(€ million)202220212020
Present value of wholly or partially funded obligations in respect of pension and other post-employment benefit plans7,463 10,416 10,734 
Present value of unfunded obligations1,188 1,759 1,722 
Total8,651 12,175 12,456 
Total Expense for Pensions and Other Post-employment Benefits Allocated between Income Statement Line Items
The total expense for pensions and other post-employment benefits (€168 million in 2022) is allocated between income statement line items as follows:
(€ million)202220212020
Cost of sales55 77 77 
Research and development expenses52 65 63 
Selling and general expenses81 87 88 
Other operating (income)/expenses, net(2)(1)(140)
Restructuring costs(61)(59)
Financial expenses43 42 55 
Total168 276 84 
Estimated Amounts of Employer's Contributions to Plan Assets
The estimated amounts of employer’s contributions to plan assets in 2023 are as follows:
(€ million)FranceGermanyUSUKOtherTotal
Employer’s contributions in 2023 (estimate):
2023— — — 34 38 
Expected Timing of Benefit Payments under Pension and Other Post-employment Benefit Plans
The table below shows the expected timing of benefit payments under pension and other post-employment benefit plans for future years:
(€ million)FranceGermanyUSUKOtherTotal
Estimated future benefit payments
202399 195 118 125 59 596 
202467 203 106 129 53 558 
202572 209 107 134 53 575 
202675 212 110 138 57 592 
202794 219 100 142 59 614 
2028 to 2032
505 1,135 499 784 323 3,246 
Timing of Future Payments in Respect of Unfunded Pension and Other Post-employment Benefit Plans
The table below shows estimates as of December 31, 2022 for the timing of future payments in respect of unfunded pension and other post-employment benefit plans:
TotalPayments due by period
(€ million)Less than 1 year1 to
3 years
3 to
5 years
More than
5 years
Estimated payments1,188 74 116 139 859 
Movements in Restructuring Provisions Classified in Non-current and Current Liabilities
The table below shows movements in restructuring provisions classified in non-current and current liabilities:
(€ million)202220212020
Balance, beginning of period1,118 1,499 1,390 
Of which:
Classified in non-current liabilities
524 868 600 
Classified in current liabilities
594 631 790 
Change in provisions recognized in profit or loss for the period636 183 767 
Provisions utilized(a)
(522)(571)(663)
Transfers— 20 
Unwinding of discount— 
Currency translation differences(4)(16)
Balance, end of period1,233 1,118 1,499 
Of which:
Classified in non-current liabilities
761 524 868 
Classified in current liabilities
472 594 631 
(a) Provisions utilized mainly correspond to payments related to employees affected by separation programs.
Timing of Future Termination Benefit Payments
The timing of future termination benefit payments is as follows:
December 31, 2022TotalBenefit payments by period
(€ million)Less than
1 year
1 to
3 years
3 to
5 years
More than
5 years
Employee termination benefits
France
804 185 412 207 — 
Other countries
235 189 36 
Total1,039 374 448 215 2 
December 31, 2021Benefit payments by period
(€ million)TotalLess than
1 year
1 to
3 years
3 to
5 years
More than
5 years
Employee termination benefits
France
614 269 288 53 
Other countries
329 207 106 14 
Total943 476 394 67 6 
December 31, 2020Benefit payments by period
(€ million)TotalLess than
1 year
1 to
3 years
3 to
5 years
More than
5 years
Employee termination benefits
France
889 295 457 124 13 
Other countries
371 195 149 18 
Total1,260 490 606 142 22 
Summary of Other Provisions
Other provisions include provisions for risks and litigation relating to environmental, tax, commercial and product liability matters.
(€ million)202220212020
Environmental risks526 650 713 
Product liability risks, litigation and other1,652 1,374 1,262 
Total2,178 2,024 1,975 
Current Provisions and Other Current Liabilities
Current provisions and other current liabilities comprise the following:
(€ million)202220212020
Taxes payable, other than corporate income taxes420 428 347 
Employee-related liabilities2,158 2,126 2,042 
Restructuring provisions (see Note D.19.2.)472 594 631 
Interest rate derivatives (see Note D.20.)— — 
Currency derivatives (see Note D.20.)94 62 205 
Equity derivatives (see Note D.20.)— 16 — 
Amounts payable for acquisitions of non-current assets714 559 467 
Customer contract liabilities(a)
264 319 252 
Other current liabilities(b)
7,899 7,112 6,188 
Total12,021 11,217 10,132 
(a) See Note A.5., “Agreements relating to the recombinant COVID-19 vaccine candidate developed by Sanofi in collaboration with GSK”. The year-on-year change in this item includes revenue of €85 million recognized in profit or loss during 2022 that was included in the customer contract liabilities balance as of December 31, 2022.
(b) “Other current liabilities” mainly comprises provisions for customer rebates and returns; provisions for discounts and rebates granted to healthcare authorities and governmental programs (see Note D.23.); and the liability payable at each reporting date under the Monoclonal Antibody Alliance with Regeneron.