FINANCIAL AND ACCOUNTING INFORMATION The variation in provisions is detailed in the table below: OTHER LITIGATION & WARRANTY VACANT TOTAL (in millions of euros) RESTRUCTURING (1) TAX LITIGATION CLAIMS (2) PROPERTIES(3) PROVISIONS As of January 1, 2016 16.8 2.8 23.9 13.5 57.0 Increase 29.6 3.3 12.1 4.8 49.8 Use (18.1) (3.1) (6.9) (6.3) (34.5) Release (0.5) 0.7 (0.4) (0.6) (0.8) Currency translation adjustment (0.0) 0.0 0.2 (0.5) (0.4) Other changes (0.0) 2.2 (1.5) – 0.7 As of December 31, 2016 27.7 5.8 27.4 10.9 71.8 Increase 13.8 – 5.2 2.3 21.2 Use (23.0) (4.9) (7.6) (3.8) (39.4) Release (1.5) – (0.6) (0.1) (2.2) Currency translation adjustment (0.8) – (0.2) (0.4) (1.3) Other changes 0.1 (0.2) (3.8) – (3.9) As of December 31, 2017 16.2 0.6 20.5 8.9 46.2 Provisions mainly comprise: (1)Provisions for reorganization and business transformation programs to adapt the Group’s structure to current trading conditions. These restructuring plans resulted in the closure of branches, optimization of distribution centers and back office reorganization. Provisions for restructuring activities undertaken at December 31, 2017, mainly concerned Europe for €8.4 million (€12.8 million 5 in 2016), North America for €5.0 million (€4.6 million in 2016), Asia-Pacific for €1.7 million (€1.8 million in 2016) and Corporate Holdings for €1.1 million (€8.5 million in 2016). (2) Other litigations and warranty claims amounted to €20.5 million (€27.4 million in 2016), of which €9.8 million relating to litigation with French social security authorities (€9.5 million in 2016), €3.8 million to employee claims (€3.5 million in 2016) and €2.3 million to trade disputes (€3.3 million in 2016). (3) Provisions for vacant properties include lease commitments and restoration costs incurred mainly in the United Kingdom for €4.1 million (€4.5 million in 2016), the United States for €0.8 million (€1.4 million in 2016), Canada for €0.6 million (€1.1 million in 2016) and France for €1.6 million (€1.2 million in 2016). 21. Post-employment and long-term benefits Statutory funding objectives are agreed between the Trustee board and the company. In that respect, the 21.1 Defined benefit plans description Trustee board carries out a full valuation of the Scheme The Group provides employee benefits underat least every three years, after which a recovery plan various arrangements, including defined benefit of contributions is agreed with the company to restore and defined contribution plans.The specificany funding deficit. The most recent full valuation was conditions of these plans vary according to the performed on April 5, 2017 and was rolled forward up rules applying in each country concerned. These to December 31, 2017 for accounting purposes. The plans include pensions, lump-sum payments on Trustee board is also responsible for determining the retirement, jubilees, early retirement benefits, and investment strategy of the plan. health care and life insurance benefits in favor of In Switzerland, Rexelprovides a second pi l lar former employees, including retired employees. pension plan for their employees.Assets are The most significant funded defined benefit pension managed through a pension fund “Pension Kasse”, plans sponsored by the Group are in Canada, in the the Elektro Material Pension Plan. The plan runs United Kingdom and in Switzerland. Related funds under a contribution-based pension plan agreement are managed through independent vehicles. with guaranteed return,thus qual ifying as a defined benefit plan. The Pension Board “Conseil In the United Kingdom, Rexel operates deferred final de Fondation” is responsible to set up adequate salary defined benefits through the Rexel UK Pension company’s and employee’s contribution and asset Scheme fund. All sections under this plan are closed al location strategy that seeks to meet at least to new entrants with effect of April 5, 2002. Accrued guaranteed return. A ful l valuation of this plan is benefits and pensions are subject to indexation. performed each year. REXEL 2017 – REGISTRATION DOCUMENT 247