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Provisions, income tax liabilities and other liabilities (Tables)
12 Months Ended
Dec. 31, 2023
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)202320222021
Provisions5,262 5,822 6,430 
Other non-current liabilities(a)
2,340 519 291 
Total7,602 6,341 6,721 
(a)    Includes derivative financial instruments: €164 million as of December 31, 2023, €232 million as of December 31, 2022, €6 million as of December 31, 2021.
The figure as of December 31, 2023 includes €1,960 million for the liability in respect of royalties payable to Sobi on net sales of BEYFORTUS (nirsevimab) in the United States (see Note C.2.). Given the method used to calculate royalties payable, an increase or decrease in sales forecasts would lead to a proportionate change in the amount of the liability. The nominal value of payments estimated to be due within more than one year but less than five years is €1,112 million; the nominal value of payments estimated to be due after more than five years is €2,860 million.
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.)
Provisions
for other
long-term
benefits
Restructuring
provisions
(D.19.2.)
Other
provisions
(D.19.3.)
Total
Balance at January 1, 20213,276 
(b)
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 
Changes in scope of consolidation— — — — — 
Increases in provisions141 
(a)
185 315 311 952 
Provisions utilized(162)
(a)
(107)(25)(114)(408)
Reversals of unutilized provisions(21)
(a)
(190)(159)(388)(758)
Transfers(1)— (361)(210)(572)
Net interest related to employee benefits, and unwinding of discount70 23 24 120 
Currency translation differences(23)(17)— (25)(65)
Actuarial gains and losses on defined-benefit plans
171 — — — 171 
Balance at December 31, 20232,214 718 554 1,776 5,262 
(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:
202320222021
FranceGermanyUSUKFranceGermanyUSUKFranceGermanyUSUK
Discount rate(a)(b)
2.95% to 3.15%
2.95% to 3.15%
4.75%
4.50%
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%
General inflation rate(c)
2.20%
2.20%
— 
3.05%
2.50%
2.50%
— 
3.25%
1.95%
1.95%
— 
3.30%
Pension benefit
indexation
2.20%
2.20%
— 
2.90%
2.50%
2.50%
— 
3.00%
1.95%
1.95%
— 
3.15%
Healthcare cost
inflation rate(d)
— — 
4.00%
to
9.75%
— — — 
3.29%
to
6.56%
— — — 
3.50% to 4.50%
— 
Retirement age
62
to 67
63
55
to 70
60
to 65
62
to 67
63
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.
MP2021 White Collar
SAPS
S3
TGH/
TGF
05
Heubeck
RT
2018 G
RP2012 Proj.
G. Scale
MP2020 White Collar
SAPS
S3
(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:
202320222021
(years)FranceGermanyUSUKFranceGermanyUSUKFranceGermanyUSUK
Weighted average duration101211131012111312161517
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 %+56 +170 +78 +42 
General inflation rate+0.50 %+40 +220 — +43 
Pension benefit indexation+0.50 %+41 +216 — +20 
Healthcare cost inflation rate+0.50 %+5 — +5 +43 
Mortality table+1 year+38 +53 +25 +19 
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)202320222021
(a)
Measurement of the obligation:
Beginning of period8,651 12,175 12,456 
Current service cost140 193 227 
Interest cost346 206 148 
Actuarial losses/(gains) due to changes in demographic assumptions(34)(219)(162)
Actuarial losses/(gains) due to changes in financial assumptions157 (3,006)(210)
Actuarial losses/(gains) due to experience adjustments256 177 (120)
Plan amendments, curtailments or settlements not specified in the terms of the plan(b)
(36)(229)(4)
Plan settlements specified in the terms of the plan(40)(84)(66)
Benefits paid(483)(463)(503)
Changes in scope of consolidation and transfers(14)(114)(8)
Currency translation differences(13)15 417 
Obligation at end of period8,930 8,651 12,175 
Fair value of plan assets:
Beginning of period6,899 9,651 9,358 
Interest income on plan assets276 163 106 
Difference between actual return and interest income on plan assets197 (2,398)207 
Administration costs(7)(6)(7)
Plan settlements specified in the terms of the plan(40)(84)(66)
Plan settlements not specified in the terms of the plan(17)(161)(9)
Contributions from plan members
Employer’s contributions122 238 176 
Benefits paid(446)(426)(458)
Changes in scope of consolidation and transfers(8)(32)(6)
Currency translation differences11 (52)344 
Fair value of plan assets at end of period6,993 6,899 9,651 
Net amount shown in the balance sheet:
Net obligation1,937 1,752 2,524 
Effect of asset ceiling18 15 
Net amount shown in the balance sheet at end of period1,943 1,770 2,539 
Amounts recognized in the balance sheet:
Pre-funded obligations (see Note D.7.)(b)
(271)(269)(408)
Obligations provided for2,214 2,039 2,947 
Net amount recognized at end of period1,943 1,770 2,539 
Benefit cost for the period:
Current service cost140 193 227 
(Gains)/losses related to plan amendments, curtailments or settlements not specified in the terms of the plan
(22)(68)
Net interest (income)/cost71 43 42 
Contributions from plan members(6)(6)(6)
Administration costs and taxes paid during the period
Expense recognized directly in profit or loss190 168 276 
Remeasurement of net defined-benefit (asset)/liability (actuarial gains and losses)(c)
171 (650)(685)
Expense/(gain) for the period361 (482)(409)
(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 2023, this line includes €66 million of assets in the United Kingdom (versus €99 million for 2022 and €220 million for 2021); those amounts are not subject to any asset ceiling, in accordance with IFRIC 14.
(c)    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, 2023FranceGermanyUSUKOtherTotal
Measurement of obligation1,322 2,911 1,528 2,174 995 8,930 
Fair value of plan assets675 2,401 825 2,235 857 6,993 
Effect of asset ceiling— — — — (6)(6)
Net amount shown in the balance sheet at end of period647 510 703 (61)144 1,943 
(€ 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 
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:
202320222021
Securities quoted in an active market84.9 %84.4 %86.9 %
Cash and cash equivalents0.8 %0.7 %0.7 %
Equity instruments22.3 %21.7 %25.0 %
Bonds and similar instruments54.3 %52.4 %53.8 %
Real estate3.4 %4.0 %4.0 %
Derivatives— %0.1 %— %
Commodities0.9 %0.9 %1.0 %
Other3.2 %4.6 %2.4 %
Other securities15.1 %15.6 %13.1 %
Hedge funds— %— %— %
Insurance policies15.1 %15.6 %13.1 %
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 2023FranceGermanyUSUKOtherTotal
Current service cost50 30 20 — 40 140 
(Gains)/losses related to plan amendments, curtailments or settlements not specified in the terms of the plan(20)— — (3)(22)
Net interest cost/(income) including administration costs and taxes paid during the period22 15 35 (5)11 78 
Contributions from plan members— — — — (6)(6)
Expense/(gain) recognized directly in profit or loss52 45 56 (5)42 190 
Remeasurement of net defined-benefit (asset)/ liability (actuarial gains and losses)98 26 44 — 171 
Expense/(gain) for the period55 143 82 39 42 361 
(€ 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)
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)202320222021
FranceGermanyUSUKFranceGermanyUSUKFranceGermanyUSUK
Actuarial gains/(losses) arising during the period
(3)(98)(25)(44)156 205 382 (131)106 113 156 237 
Comprising:
Gains/(losses)
on experience adjustments(a)
16 (54)(7)(12)(120)(620)(287)(1,328)60 182 23 35 
Gains/(losses)
on demographic assumptions
— — 18 11 — — 129 54 — — 51 125 
Gains/(losses)
on financial assumptions
(19)(44)(36)(43)276 825 540 1,143 46 (69)82 77 
(a)    Experience adjustments are mainly due to the effect on plan assets of trends in the financial markets.
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)202320222021
Net pre-tax actuarial loss(2,259)(2,090)(2,738)
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)202320222021
Present value of wholly or partially funded obligations in respect of pension and other post-employment benefit plans7,693 7,463 10,416 
Present value of unfunded obligations1,237 1,188 1,759 
Total8,930 8,651 12,175 
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 (€190 million in 2023) is allocated between income statement line items as follows:
(€ million)202320222021
Cost of sales34 55 77 
Research and development expenses28 52 65 
Selling and general expenses61 81 87 
Other operating (income)/expenses, net(2)(1)
Restructuring costs(9)(61)
Financial expenses71 43 42 
Total190 168 276 
Estimated Amounts of Employer's Contributions to Plan Assets
The estimated amounts of employer’s contributions to plan assets in 2024 are as follows:
(€ million)FranceGermanyUSUKOtherTotal
Employer’s contributions in 2024 (estimate):
2024— — — 46 40 86 
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
2024103 198 102 116 60 579 
202568 212 91 120 54 545 
202660 218 95 123 60 556 
202779 221 98 127 59 584 
202893 229 101 131 62 616 
2029 to 2033
438 1,190 526 716 343 3,213 
Timing of Future Payments in Respect of Unfunded Pension and Other Post-employment Benefit Plans
The table below shows estimates as of December 31, 2023 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 payments1,238 86 117 144 891 
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)202320222021
Balance, beginning of period1,233 1,118 1,499 
Of which:
Classified in non-current liabilities
761 524 868 
Classified in current liabilities
472 594 631 
Change in provisions recognized in profit or loss for the period435 636 183 
Provisions utilized(a)
(561)(522)(571)
Transfers— 
Unwinding of discount31 — 
Currency translation differences(9)(4)
Balance, end of period1,132 1,233 1,118 
Of which:
Classified in non-current liabilities
554 761 524 
Classified in current liabilities
578 472 594 
(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, 2023TotalBenefit payments by period
(€ million)Less than
1 year
1 to
3 years
3 to
5 years
More than
5 years
Employee termination benefits
France
611 215 315 79 
Other countries
357 302 47 
Total968 517 362 86 3 
December 31, 2022Benefit payments by period
(€ million)TotalLess 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 
Summary of Other Provisions
Other provisions include provisions for risks and litigation relating to environmental, tax, commercial and product liability matters.
(€ million)202320222021
Environmental risks493 526 650 
Product liability risks, litigation and other1,283 1,652 1,374 
Total1,776 2,178 2,024 
Current Provisions and Other Current Liabilities
Current provisions and other current liabilities comprise the following:
(€ million)202320222021
Taxes payable, other than corporate income taxes395 420 428 
Employee-related liabilities2,106 2,158 2,126 
Restructuring provisions (see Note D.19.2.)578 472 594 
Interest rate derivatives (see Note D.20.)— 
Currency derivatives (see Note D.20.)126 94 62 
Equity derivatives (see Note D.20.)— — 16 
Amounts payable for acquisitions of non-current assets945 714 559 
Customer contract liabilities(a)
— 269 321 
Other current liabilities(b)(c)
9,590 7,894 7,110 
Total13,741 12,021 11,217 
(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 between 2022 and 2023 includes revenue of €269 million recognized in profit or loss during 2023 previously included in Customer contract liabilities as of December 31, 2022, compared with revenue of €85 million recognized in profit or loss during 2022 previously included in Customer contract liabilities as of December 31, 2021 . No such revenue was recognized in 2021.
(b)    “Other current liabilities” mainly comprises provisions and liabilities 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.
(c)    As of December 31, 2023 includes €131 million (nominal value: €137 million) for the current liability relating to royalties payable to Sobi on net sales of BEYFORTUS (nirsevimab) in the United States (see Note C.2.)