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PROVISIONS
12 Months Ended
Dec. 31, 2024
Provisions [Abstract]  
PROVISIONS NOTE 18 - PROVISIONS
At December 31,
2024
2023
(in millions of U.S. dollar)
Current
Non current
Current
Non current
Close down and environmental remediation costs
13
79
11
84
Restructuring costs
3
1
Legal claims and other costs
9
11
10
14
Total provisions
25
91
21
98
Close down, environmental and remediation costs
The Group records provisions for the estimated present value of the costs of its environmental clean-up obligations and
close down and restoration efforts based on the net present value of estimated future costs of the dismantling and demolition of
infrastructure and the removal of residual material of disturbed areas.
These provisions are expected to be settled over the next 40 years depending on the nature of the disturbance and the
technical remediation plans.
Legal claims and other costs
At December 31,
(in millions of U.S. dollar)
2024
2023
Litigation
11
15
Disease claims (A)
9
9
Total provisions for legal claims and other costs
20
24
(A)Since the early 1990s, certain activities of the Group’s businesses have been subject to claims and lawsuits in France relating to
occupational diseases resulting from alleged asbestos exposure, such as mesothelioma and asbestosis. It is not uncommon for the
investigation and resolution of such claims to go on over many years as the latency period for developing such diseases is typically
between 25 and 40 years. For any such claim, it is up to the social security authorities in each jurisdiction to determine if a claim
qualifies as an occupational illness claim. If so determined, the Group must settle the case or defend its position in court. At December
31, 2024, six cases in which gross negligence is alleged (“faute inexcusable”) are outstanding (seven at December 31, 2023), the
average amount per claim being around $0.4 million. The average settlement amount per claim over the past five years was less than
$0.5 million. It is not anticipated that the resolution of such litigation and proceedings will have a material effect on the future results
from continuing operations, financial position, or cash flows of the Group.
Contingencies
The Group is involved, and may become involved, in various lawsuits, claims and proceedings relating to customer
claims, product liability, employee and retiree benefit matters and other commercial matters. The Group records provisions for
pending litigation matters when it determines that it is probable that an outflow of resources will be required to settle the
obligation, and such amounts can be reasonably estimated. In some proceedings, the issues raised are or can be highly complex
and subject to significant uncertainties and amounts claimed are and can be substantial. As a result, the probability of loss and
an estimation of damages are and can be difficult to ascertain.
Concentration of risk
As of December 31, 2024, approximately 50% of U.S. employees were covered by collective bargaining agreements.
These agreements are negotiated on site, regionally or on a national level, and are of different durations.
For the year ended December 31, 2024, no extension to our current collective bargaining agreement and no new collective
bargaining agreements were negotiated or ratified.